Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 27, 2013 | Nov. 05, 2013 | Mar. 29, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'TYCO INTERNATIONAL LTD | ' | ' |
Entity Central Index Key | '0000833444 | ' | ' |
Current Fiscal Year End Date | '--09-27 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 27-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 465,302,750 | ' |
Entity Public Float | ' | ' | $14,591,005,536 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Income Statement [Abstract] | ' | ' | ' | |||
Revenue from product sales | $5,953 | $5,845 | $5,990 | |||
Service revenue | 4,694 | 4,558 | 4,567 | |||
Net revenue | 10,647 | [1],[2],[3],[4] | 10,403 | [1],[2],[3],[4] | 10,557 | [1],[2],[3],[4] |
Cost of product sales | 4,087 | 3,977 | 4,193 | |||
Cost of services | 2,679 | 2,649 | 2,697 | |||
Selling, general and administrative expenses | 2,930 | 2,903 | 2,834 | |||
Separation costs (see Note 2) | 8 | 71 | 0 | |||
Restructuring, asset impairment and divestiture charges (gains), net (see Notes 3 and 4) | 134 | 118 | -149 | |||
Operating income | 809 | 685 | 982 | |||
Interest income | 17 | 19 | 27 | |||
Interest expense | -100 | -209 | -240 | |||
Other expense, net | -29 | -454 | -5 | |||
Income from continuing operations before income taxes | 697 | 41 | 764 | |||
Income tax expense | -125 | -348 | -134 | |||
Equity loss in earnings of unconsolidated subsidiaries | -48 | -26 | -12 | |||
Income (loss) from continuing operations | 524 | -333 | 618 | |||
Income from discontinued operations, net of income taxes | 9 | 804 | 1,102 | |||
Net income | 533 | 471 | 1,720 | |||
Less: noncontrolling interest in subsidiaries net (loss) income | -3 | -1 | 1 | |||
Net income attributable to Tyco common shareholders | 536 | 472 | 1,719 | |||
Amounts attributable to Tyco common shareholders: | ' | ' | ' | |||
Income (loss) from continuing operations | 527 | -332 | 617 | |||
Income from discontinued operations | 9 | 804 | 1,102 | |||
Net income attributable to Tyco common shareholders | $536 | $472 | $1,719 | |||
Basic earnings per share attributable to Tyco common shareholders: | ' | ' | ' | |||
Income (loss) from continuing operations (in dollars per share) | $1.14 | ($0.72) | $1.30 | |||
Income from discontinued operations (in dollars per share) | $0.01 | $1.74 | $2.33 | |||
Net income attributable to Tyco common shareholders (in dollars per share) | $1.15 | $1.02 | $3.63 | |||
Diluted earnings per share attributable to Tyco common shareholders: | ' | ' | ' | |||
Income (loss) from continuing operations (in dollars per share) | $1.12 | ($0.72) | $1.29 | |||
Income from discontinued operations (in dollars per share) | $0.02 | $1.74 | $2.30 | |||
Net income attributable to Tyco common shareholders (in dollars per share) | $1.14 | $1.02 | $3.59 | |||
Weighted average number of shares outstanding: | ' | ' | ' | |||
Basic (in shares) | 465 | 463 | 474 | |||
Diluted (in shares) | 472 | 463 | 479 | |||
[1] | Net revenue by operating segment excludes intercompany transactions. | |||||
[2] | The U.K. represents the largest portion of net revenue in the Europe, Middle East and Africa region with net revenue of $1,168 million, $1,162 million and $1,187 million for 2013, 2012 and 2011, respectively. | |||||
[3] | Net revenue is attributed to individual countries based on the reporting entity that records the transaction. | |||||
[4] | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $533 | $471 | $1,720 |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Foreign currency translation | -102 | 93 | -143 |
Defined benefit and post retirement plans | 81 | -163 | 33 |
Unrealized loss on marketable securities and derivative instruments | 0 | 0 | -4 |
Deconsolidation of variable interest entity due to adoption of an accounting standard | 0 | 0 | -11 |
Total other comprehensive loss, net of tax | -21 | -70 | -125 |
Comprehensive income | 512 | 401 | 1,595 |
Less: comprehensive loss attributable to noncontrolling interests | -3 | -1 | -10 |
Comprehensive income attributable to Tyco common shareholders | $515 | $402 | $1,605 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $563 | $844 |
Accounts receivable, less allowance for doubtful accounts of $83 and $62, respectively | 1,738 | 1,696 |
Inventories | 655 | 634 |
Prepaid expenses and other current assets | 857 | 884 |
Deferred income taxes | 254 | 295 |
Total current assets | 4,067 | 4,353 |
Property, plant and equipment, net | 1,677 | 1,670 |
Goodwill | 4,519 | 4,367 |
Intangible assets, net | 804 | 771 |
Other assets | 1,109 | 1,204 |
Total Assets | 12,176 | 12,365 |
Current Liabilities: | ' | ' |
Loans payable and current maturities of long-term debt | 20 | 10 |
Accounts payable | 899 | 897 |
Accrued and other current liabilities | 1,910 | 1,788 |
Deferred revenue | 402 | 402 |
Total current liabilities | 3,231 | 3,097 |
Long-term debt | 1,443 | 1,481 |
Deferred revenue | 400 | 424 |
Other liabilities | 1,969 | 2,341 |
Total Liabilities | 7,043 | 7,343 |
Commitments and Contingencies (see Note 13) | ' | ' |
Redeemable noncontrolling interest | 12 | 12 |
Tyco Shareholders' Equity: | ' | ' |
Common shares, CHF 0.50 and CHF 6.70 par value as of September 27, 2013 and September 28, 2012, respectively, 825,222,070 shares authorized, 486,363,050 shares issued as of September 27, 2013 and September 28, 2012 | 208 | 2,792 |
Common shares held in treasury, 22,902,706 and 24,174,397 shares, as of September 27, 2013 and September 28, 2012, respectively | -912 | -1,094 |
Contributed surplus | 3,754 | 1,763 |
Accumulated earnings | 3,035 | 2,499 |
Accumulated other comprehensive loss | -987 | -966 |
Total Tyco Shareholders' Equity | 5,098 | 4,994 |
Nonredeemable noncontrolling interest | 23 | 16 |
Total Equity | 5,121 | 5,010 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $12,176 | $12,365 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
Statement of Financial Position [Abstract] | ' | ' | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $83 | ' | $62 | ' |
Common shares, par value (in CHF per share) | ' | 0.5 | ' | 6.7 |
Common shares - shares authorized | 825,222,070 | 825,222,070 | 825,222,070 | 825,222,070 |
Common shares - shares issued | 486,363,050 | 486,363,050 | 486,363,050 | 486,363,050 |
Common shares held in treasury, shares | 22,902,706 | 22,902,706 | 24,174,397 | 24,174,397 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Total Tyco Shareholders' Equity | Common Shares at Par Value | Treasury Shares | Contributed Surplus | Accumulated (Deficit) Earnings | Accumulated Other Comprehensive Loss | Non-redeemable Non-controlling Interest |
In Millions, unless otherwise specified | ||||||||
Balance at Sep. 24, 2010 | $14,083 | $14,066 | $2,948 | ($976) | $12,121 | $295 | ($322) | $17 |
Balance (in shares) at Sep. 24, 2010 | ' | ' | 488 | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,720 | 1,719 | ' | ' | ' | 1,719 | ' | 1 |
Other comprehensive loss, net of tax | -125 | -114 | ' | ' | ' | ' | -114 | -11 |
Cancellation of treasury shares | ' | ' | -160 | 1,075 | -915 | ' | ' | ' |
Dividends declared (see Note 15) | -462 | -462 | 4 | ' | -466 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards | 124 | 124 | ' | 257 | -133 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards (in shares) | ' | ' | 7 | ' | ' | ' | ' | ' |
Repurchase of common shares | -1,300 | -1,300 | ' | -1,300 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -30 | ' | ' | ' | ' | ' |
Compensation expense | 110 | 110 | ' | ' | 110 | ' | ' | ' |
Other | 4 | 6 | ' | -7 | ' | 13 | ' | -2 |
Balance at Sep. 30, 2011 | 14,154 | 14,149 | 2,792 | -951 | 10,717 | 2,027 | -436 | 5 |
Balance (in shares) at Sep. 30, 2011 | ' | ' | 465 | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 471 | 472 | ' | ' | ' | 472 | ' | -1 |
Other comprehensive loss, net of tax | -70 | -70 | ' | ' | ' | ' | -70 | ' |
Dividends declared (see Note 15) | -368 | -368 | ' | ' | -368 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards | 226 | 226 | ' | 382 | -156 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards (in shares) | ' | ' | 9 | ' | ' | ' | ' | ' |
Repurchase of common shares | -500 | -500 | ' | -500 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -11 | ' | ' | ' | ' | ' |
Compensation expense | 140 | 140 | ' | ' | 140 | ' | ' | ' |
Noncontrolling interest related to acquisitions (See Note 5) | 13 | ' | ' | ' | ' | ' | ' | 13 |
Distribution of Tyco Flow Control and ADT | -9,030 | -9,030 | ' | ' | -8,570 | ' | -460 | ' |
Other | -26 | -25 | ' | -25 | ' | ' | ' | -1 |
Other (in shares) | ' | ' | -1 | ' | ' | ' | ' | ' |
Balance at Sep. 28, 2012 | 5,010 | 4,994 | 2,792 | -1,094 | 1,763 | 2,499 | -966 | 16 |
Balance (in shares) at Sep. 28, 2012 | ' | ' | 462 | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 533 | 536 | ' | ' | ' | 536 | ' | -3 |
Other comprehensive loss, net of tax | -21 | -21 | ' | ' | ' | ' | -21 | ' |
Reallocation of share capital to contributed surplus | ' | ' | -2,584 | ' | 2,584 | ' | ' | ' |
Dividends declared (see Note 15) | -298 | -298 | ' | ' | -298 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards | 153 | 153 | ' | 512 | -359 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards (in shares) | ' | ' | 12 | ' | ' | ' | ' | ' |
Repurchase of common shares | -300 | -300 | ' | -300 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -10 | ' | ' | ' | ' | ' |
Compensation expense | 63 | 63 | ' | ' | 63 | ' | ' | ' |
Noncontrolling interest related to acquisitions (See Note 5) | 10 | ' | ' | ' | ' | ' | ' | 10 |
Other | -29 | -29 | ' | -30 | 1 | ' | ' | ' |
Other (in shares) | ' | ' | -1 | ' | ' | ' | ' | ' |
Balance at Sep. 27, 2013 | $5,121 | $5,098 | $208 | ($912) | $3,754 | $3,035 | ($987) | $23 |
Balance (in shares) at Sep. 27, 2013 | ' | ' | 463 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net income attributable to Tyco common shareholders | $536 | $472 | $1,719 |
Noncontrolling interest in subsidiaries net (loss) income | -3 | -1 | 1 |
Income from discontinued operations, net of income taxes | -9 | -804 | -1,102 |
Income (loss) from continuing operations | 524 | -333 | 618 |
Adjustments to reconcile net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 427 | 418 | 421 |
Non-cash compensation expense | 63 | 113 | 89 |
Deferred income taxes | 8 | 373 | -10 |
Provision for losses on accounts receivable and inventory | 73 | 55 | 32 |
Loss on the retirement of debt | 0 | 453 | 0 |
Non-cash restructuring and asset impairment charges | 1 | 25 | 4 |
Loss (gain) on divestitures | 20 | 14 | -224 |
Loss on investments | 42 | 11 | 0 |
Other non-cash items | 98 | 61 | 79 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ' | ' | ' |
Accounts receivable, net | -87 | -128 | -47 |
Contracts in progress | -23 | -46 | -39 |
Inventories | -34 | -72 | -42 |
Prepaid expenses and other current assets | 52 | -86 | 16 |
Accounts payable | -15 | 59 | -33 |
Accrued and other liabilities | -213 | -80 | -216 |
Deferred revenue | -30 | -1 | -24 |
Income taxes, net | -38 | -172 | 23 |
Other | -27 | 37 | 14 |
Net cash provided by operating activities | 841 | 701 | 661 |
Net cash provided by discontinued operating activities | 9 | 1,885 | 1,767 |
Cash Flows From Investing Activities: | ' | ' | ' |
Capital expenditures | -377 | -406 | -371 |
Proceeds from disposal of assets | 5 | 8 | 6 |
Acquisition of businesses, net of cash acquired | -229 | -217 | -353 |
Acquisition of dealer generated customer accounts and bulk account purchases | -22 | -28 | -33 |
Divestiture of businesses, net of cash divested | 17 | -5 | 709 |
Sales and maturities of investments | 182 | 128 | 183 |
Purchases of investments | -227 | -87 | -157 |
Increase in restricted cash | -8 | -2 | -8 |
Other | 4 | 27 | -37 |
Net cash used in investing activities | -655 | -582 | -61 |
Net cash used in discontinued investing activities | 0 | -1,204 | -1,005 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from issuance of short-term debt | 475 | 2,008 | 805 |
Repayment of short-term debt | -505 | -2,009 | -1,337 |
Proceeds from issuance of long-term debt | 0 | 19 | 497 |
Repayment of long-term debt | 0 | -3,040 | -1 |
Proceeds from exercise of share options | 153 | 226 | 124 |
Dividends paid | -288 | -461 | -458 |
Repurchase of common shares by treasury | -300 | -500 | -1,300 |
Transfer from discontinued operations | 39 | 3,274 | 726 |
Other | -30 | -25 | 6 |
Net cash used in financing activities | -456 | -508 | -938 |
Net cash used in discontinued financing activities | -39 | -251 | -793 |
Effect of currency translation on cash | -11 | 4 | -4 |
Effect of currency translation on cash related to discontinued operations | 0 | 4 | -2 |
Net (decrease) increase in cash and cash equivalents | -311 | 49 | -375 |
Less: net (decrease) increase in cash and cash equivalents related to discontinued operations | -30 | 434 | -33 |
Decrease in cash and cash equivalents from deconsolidation of variable interest entity | 0 | 0 | -10 |
Cash and cash equivalents at beginning of period | 844 | 1,229 | 1,581 |
Cash and cash equivalents at end of period | 563 | 844 | 1,229 |
Supplementary Cash Flow Information: | ' | ' | ' |
Interest paid | 99 | 222 | 225 |
Income taxes paid, net of refunds | $155 | $147 | $121 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | |
Sep. 27, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation and Summary of Significant Accounting Policies | ' | |
Basis of Presentation and Summary of Significant Accounting Policies | ||
Basis of Presentation—The Consolidated Financial Statements include the consolidated accounts of Tyco International Ltd., a corporation organized under the laws of Switzerland, and its subsidiaries (Tyco and all its subsidiaries, hereinafter collectively referred to as the "Company" or "Tyco"). The financial statements have been prepared in United States dollars ("USD") and in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain information described under article 663-663h of the Swiss Code of Obligations has been presented in the Company's Swiss statutory financial statements for the year ended September 27, 2013. Unless otherwise indicated, references to 2013, 2012 and 2011 are to Tyco's fiscal years ending September 27, 2013, September 28, 2012 and September 30, 2011, respectively. | ||
Effective September 28, 2012, Tyco completed the spin-offs of The ADT Corporation ("ADT") and Pentair Ltd. (formerly known as Tyco Flow Control International Ltd. ("Tyco Flow Control")), formerly the North American residential security and flow control businesses of Tyco, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders. Immediately following the spin-off, Pentair, Inc. was merged with a subsidiary of Tyco Flow Control in a tax-free, all-stock merger (the "Merger"), with Pentair Ltd. ("Pentair") succeeding Pentair Inc. as an independent publicly traded company. The distribution was made on September 28, 2012, to Tyco shareholders of record on September 17, 2012. Each Tyco shareholder received 0.50 of a common share of ADT and approximately 0.24 of a common share of Pentair for each Tyco common share held on the record date. The distribution was structured to be tax-free to Tyco shareholders except to the extent of cash received in lieu of fractional shares. The distributions, the Merger and related transactions are collectively referred to herein as the "2012 Separation". As a result of the distribution, the operations of Tyco's former flow control and North American residential security businesses are classified as discontinued operations in all periods prior to the 2012 Separation. | ||
After giving effect to the 2012 Separation, the Company operates and reports financial and operating information in the following three segments: North America Installation & Services ("NA Installation & Services"), Rest of World Installation & Services ("ROW Installation & Services") and Global Products. The Company also provides general corporate services to its segments which is reported as a fourth, non-operating segment, Corporate and Other. | ||
Effective June 29, 2007, Tyco completed the spin-offs of Covidien and TE Connectivity, formerly the Healthcare and Electronics businesses of Tyco, respectively, into separate, publicly traded companies (the "2007 Separation") in the form of a tax-free distribution to Tyco shareholders. | ||
In reporting periods prior to the first quarter of fiscal 2013, certain costs of product sales were misclassified as costs of services. There was no impact to previously reported net revenue, operating income, income from continuing operations, net income, earnings per share or cash flow. The Company has evaluated and concluded that the identified amounts were not material to any of its previously filed annual or interim financial statements as the effects in prior periods were not material. Although not material, corrections have been made to the relevant periods presented in the financial statements included herein. These corrections resulted in reductions of Cost of services with corresponding increases to Cost of product sales of $679 million and $651 million for the years ended September 28, 2012 and September 30, 2011, respectively. | ||
Principles of Consolidation—Tyco conducts business through its operating subsidiaries. The Company consolidates companies in which it owns or controls more than fifty percent of the voting shares or has the ability to control through similar rights. Also, the Company consolidates variable interest entities ("VIE") in which the Company has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant. The VIEs which the Company consolidates, individually or in the aggregate, did not have a material impact on the Company's financial position, results of operations or cash flows. All intercompany transactions have been eliminated. The results of companies acquired or disposed of during the year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. | ||
The Company has a 52 or 53-week fiscal year that ends on the last Friday in September. Fiscal 2013 and 2012 were 52 week years which ended on September 27, 2013 and September 28, 2012, respectively. Fiscal 2011 was a 53-week year which ended on September 30, 2011. | ||
Use of Estimates—The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenues and expenses. Significant estimates in these Consolidated Financial Statements include restructuring charges, allowances for doubtful accounts receivable, estimates of future cash flows associated with asset impairments, useful lives for depreciation and amortization, loss contingencies (including legal, environmental and asbestos reserves), insurance reserves, net realizable value of inventories, fair values of financial instruments, estimated contract revenue and related costs, income taxes and tax valuation allowances, and pension and postretirement employee benefit liabilities and expenses. Actual results could differ materially from these estimates. | ||
Revenue Recognition—The Company recognizes revenue principally on four types of transactions—sales of products, security systems, monitoring and maintenance services, and contract sales, including the installation of fire and security systems and other construction-related projects. | ||
Revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass. This is generally when the products reach the free-on-board shipping point, the sales price is fixed and determinable and collection is reasonably assured. | ||
Provisions for certain rebates, sales incentives, trade promotions, product returns and discounts to customers are accounted for as reductions in determining net revenue in the same period the related sales are recorded. These provisions are based on terms of arrangements with direct, indirect and other market participants. Rebates are estimated based on sales terms, historical experience and trend analysis. | ||
Sales of security monitoring systems may have multiple elements, including equipment, installation, monitoring services and maintenance agreements. The Company assesses its revenue arrangements to determine the appropriate units of accounting. When ownership of the system is transferred to the customer, each deliverable provided under the arrangement is considered a separate unit of accounting. Revenues associated with sale of equipment and related installations are recognized once delivery, installation and customer acceptance is completed, while the revenue for monitoring and maintenance services are recognized as services are rendered. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence ("VSOE") if available, Third Party Evidence ("TPE") if VSOE is not available, or estimated selling price if neither VSOE or TPE is available. Revenue recognized for equipment and installation is limited to the lesser of their allocated amounts under the estimated selling price hierarchy or the non-contingent up-front consideration received at the time of installation, since collection of future amounts under the arrangement with the customer is contingent upon the delivery of monitoring and maintenance services. While the Company does not expect situations where VSOE is not available for sales of security systems and services, if such cases were to arise the Company would follow the selling price hierarchy to allocate arrangement consideration. For transactions in which the Company retains ownership of the subscriber system asset, fees for monitoring and maintenance services are recognized on a straight-line basis over the contract term. Non-refundable fees received in connection with the initiation of a monitoring contract, along with associated direct and incremental selling costs, are deferred and amortized over the estimated life of the customer relationship. | ||
Revenue from the sale of services is recognized as services are rendered. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered and the associated deferred revenue is included in current liabilities or long-term liabilities, as appropriate. | ||
Contract sales for the installation of fire protection systems, large security intruder systems and other construction-related projects are recorded primarily under the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related total cost of the project at completion. The extent of progress toward completion is generally measured based on the ratio of actual cost incurred to total estimated cost at completion. Revisions to cost estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. Estimated warranty costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting. | ||
The Company recorded retainage receivables of $48 million and $49 million as of September 27, 2013 and September 28, 2012, respectively, of which $41 million were unbilled during both periods. The retainage provisions consist primarily of fire protection contracts which become due upon contract completion and acceptance. The Company expects approximately $36 million to be collected during fiscal 2014, which are reflected within accounts receivable on the Consolidated Balance Sheet as of September 27, 2013. | ||
Research and Development—Research and development expenditures are expensed when incurred and are included in cost of product sales, which amounted to $174 million, $145 million and $129 million for 2013, 2012 and 2011, respectively, related to new product development. Research and development expenses include salaries, direct costs incurred and building and overhead expenses. | ||
Advertising—Advertising costs are expensed when incurred and are included in selling, general and administrative expenses, which amounted to $60 million, $39 million and $46 million for 2013, 2012 and 2011, respectively. | ||
Acquisition Costs—Costs incurred to acquire new businesses, new product lines or similar assets are expensed when incurred and are included in selling, general and administrative expenses. See Note 5. | ||
Translation of Foreign Currency—For the Company's non-U.S. subsidiaries that account in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using period-end exchange rates. Revenue and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss in Tyco's shareholders' equity. | ||
Gains and losses resulting from foreign currency transactions and the impact of foreign currency derivatives related to operating activities are reflected in selling, general and administrative expenses. Through April 2011, the Company declared its dividends in Swiss francs. Any foreign exchange gains or losses arising from such were reflected in other expense, net in the Company's Consolidated Statement of Operations. Beginning in May 2011, the Company began making dividend payments out of contributed surplus in U.S. dollars. | ||
Cash and Cash Equivalents—All highly liquid investments with original maturities of three months or less from the time of purchase are considered to be cash equivalents. | ||
Allowance for Doubtful Accounts—The allowance for doubtful accounts receivable reflects the best estimate of probable losses inherent in Tyco's receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. | ||
Inventories—Inventories are recorded at the lower of cost (primarily first-in, first-out) or market value. | ||
Property, Plant and Equipment, Net—Property, Plant and Equipment, net is recorded at cost less accumulated depreciation. Depreciation expense for 2013, 2012 and 2011 was $328 million, $316 million and $323 million, respectively. Maintenance and repair expenditures are charged to expense when incurred. Except for pooled subscriber systems, depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows: | ||
Buildings and related improvements | Up to 50 years | |
Leasehold improvements | Lesser of remaining term of the lease or economic useful life | |
Subscriber systems | Accelerated method up to 15 years | |
Other machinery, equipment and furniture and fixtures | Up to 21 years | |
See below for discussion of depreciation method and estimated useful lives related to subscriber systems. | ||
Subscriber System Assets, Dealer Intangibles and Related Deferred Revenue Accounts—The Company considers assets related to the acquisition of new customers in its electronic security business in three asset categories: internally generated residential subscriber systems outside of North America, internally generated commercial subscriber systems (collectively referred to as subscriber system assets) and customer accounts acquired through the ADT dealer program, primarily outside of North America (referred to as dealer intangibles). Subscriber system assets include installed property, plant and equipment for which Tyco retains ownership and deferred costs directly related to the customer acquisition and system installation. Subscriber system assets represent capitalized equipment (e.g. security control panels, touchpad, motion detectors, window sensors, and other equipment) and installation costs associated with electronic security monitoring arrangements under which the Company retains ownership of the security system assets in a customer's place of business or, outside of North America, residence. Installation costs represent costs incurred to prepare the asset for its intended use. The Company pays property taxes on the subscriber system assets and upon customer termination, may retrieve such assets. These assets embody a probable future economic benefit as they generate future monitoring revenue for the Company. | ||
Costs related to the subscriber system equipment and installation are categorized as property, plant and equipment rather than deferred costs. Deferred costs associated with subscriber system assets represent direct and incremental selling expenses (i.e. commissions) related to acquiring the customer. Commissions related to up-front consideration paid by customers in connection with the establishment of the monitoring arrangement are determined based on a percentage of the up-front fees and do not exceed deferred revenue. Such deferred costs are recorded as non-current assets and are included in the other assets line item within the Consolidated Balance Sheets. | ||
Subscriber system assets and any deferred revenue resulting from the customer acquisition are accounted for over the expected life of the subscriber. In certain geographical areas where the Company has a large number of customers that behave in a similar manner over time, the Company accounts for subscriber system assets and related deferred revenue using pools, with separate pools for the components of subscriber system assets and any related deferred revenue based on the same month and year of acquisition. The Company depreciates its pooled subscriber system assets and related deferred revenue using an accelerated method with lives up to 15 years. The accelerated method utilizes declining balance rates based on geographical area ranging from 135% to 360% for commercial subscriber pools and dealer intangibles and converts to a straight-line methodology when the resulting depreciation charge is greater than that from the accelerated method. The Company uses a straight-line method with a 14-year life for non-pooled subscriber system assets (primarily in Europe, Latin America and Asia) and related deferred revenue, with remaining balances written off upon customer termination. | ||
Certain contracts and related customer relationships result from purchasing residential security monitoring contracts from an external network of independent dealers who operate under the ADT dealer program, primarily outside of North America. Acquired contracts and related customer relationships are recorded at their contractually determined purchase price. | ||
During the first 6 months (12 months in certain circumstances) after the purchase of the customer contract, any cancellation of monitoring service, including those that result from customer payment delinquencies, results in a chargeback by the Company to the dealer for the full amount of the contract purchase price. The Company records the amount charged back to the dealer as a reduction of the previously recorded intangible asset. | ||
Intangible assets arising from the ADT dealer program described above are amortized in pools determined by the same month and year of contract acquisition on an accelerated basis over the period and pattern of economic benefit that is expected to be obtained from the customer relationship. | ||
The estimated useful life of dealer intangibles ranges from 12 to 15 years. The Company amortizes dealer intangible assets on an accelerated basis. | ||
Other Amortizable Intangible Assets, Net—Intangible assets primarily include contracts and related customer relationships (dealer accounts discussed above) and intellectual property. | ||
Other contracts and related customer relationships, as well as intellectual property consisting primarily of patents, trademarks, copyrights and unpatented technology, are amortized on a straight-line basis over 4 to 40 years. The Company evaluates the amortization methods and remaining useful lives of intangible assets on a periodic basis to determine whether events and circumstances warrant a revision to the amortization method or remaining useful lives. | ||
Long-Lived Asset Impairments—The Company reviews long-lived assets, including property, plant and equipment and amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the asset may not be fully recoverable. Tyco performs undiscounted operating cash flow analyses to determine if impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, Tyco groups assets and liabilities at the lowest level for which cash flows are separately identified. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. | ||
Goodwill and Indefinite-Lived Intangible Asset Impairments—Goodwill and indefinite-lived intangible assets are assessed for impairment annually and more frequently if triggering events occur (see Note 8). The Company performed its annual impairment tests for goodwill and indefinite-lived intangible assets on the first day of the fourth quarter of 2013. In performing these assessments, management relies on and considers a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable market transactions (to the extent available), other market data and the Company's overall market capitalization. There are inherent uncertainties related to these factors which require judgment in applying them to the analysis of goodwill and indefinite-lived intangible assets for impairment. | ||
When testing for goodwill impairment, the Company first compares the fair value of a reporting unit with its carrying amount. Fair value for the goodwill impairment test is determined utilizing a discounted cash flow analysis based on the Company's future budgets discounted using market participants' weighted-average cost of capital and market indicators of terminal year cash flows. Other valuation methods are used to corroborate the discounted cash flow method. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered potentially impaired and further tests are performed to measure the amount of impairment loss. In the second step of the goodwill impairment test, the Company compares the implied fair value of the reporting unit's goodwill with the carrying amount of the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess of the carrying amount of goodwill over its implied fair value. The implied fair value of goodwill is determined in the same manner that the amount of goodwill recognized in a business combination is determined. The Company allocates the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities represents the implied fair value of goodwill. | ||
Indefinite-lived intangible assets consisting primarily of trade names and franchise rights are tested for impairment using either a relief-from-royalty method or excess earnings method, respectively. | ||
Investments—The Company invests in debt and equity securities. Long-term investments in marketable equity securities that represent less than twenty percent ownership are marked to market at the end of each accounting period. Unrealized gains and losses are credited or charged to accumulated other comprehensive loss within Tyco shareholders' equity for available for sale securities unless an unrealized loss is deemed to be other than temporary, in which case such loss is charged to earnings. Management determines the proper classification of investments in debt obligations with fixed maturities and equity securities for which there is a readily determinable market value at the time of purchase and reevaluates such classifications as of each balance sheet date. Realized gains and losses on sales of investments are included in the Consolidated Statements of Operations. | ||
Other equity investments for which the Company does not have the ability to exercise significant influence and for which there is not a readily determinable market value are accounted for under the cost method of accounting. Each reporting period, the Company evaluates the carrying value of its investments accounted for under the cost method of accounting, such that they are recorded at the lower of cost or estimated net realizable value. For equity investments in which the Company exerts significant influence over operating and financial policies but does not control, the equity method of accounting is used. The Company's share of net income or losses of equity investments is included in the Consolidated Statements of Operations. | ||
Product Warranty—The Company records estimated product warranty costs at the time of sale. Products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Generally, product warranties are implicit in the sale; however, the customer may purchase an extended warranty. However, in most instances the warranty is either negotiated in the contract or sold as a separate component. The warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. | ||
Environmental Costs—The Company is subject to laws and regulations relating to protecting the environment. Tyco provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. | ||
Income Taxes—Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carryforwards, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, including consideration of tax planning strategies, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. | ||
Asbestos-Related Contingencies and Insurance Receivables—The Company and certain of its subsidiaries along with numerous other companies are named as defendants in personal injury lawsuits based on alleged exposure to asbestos-containing materials. The Company's estimate of the liability and corresponding insurance recovery for pending and future claims and defense costs is based on the Company's historical claim experience, and estimates of the number and resolution cost of potential future claims that may be filed. The Company's legal strategy for resolving claims also impacts these estimates. The Company considers various trends and developments in evaluating the period of time (the look-back period) over which historical claim and settlement experience is used to estimate and value claims reasonably projected to be made in the future during a defined period of time (the look-forward period). On a quarterly basis, the Company assesses the sufficiency of its estimated liability for pending and future claims and defense costs by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, the Company considers additional quantitative and qualitative factors such as changes in legislation, the legal environment, and the Company's defense strategy. The Company also evaluates the recoverability of its insurance receivable on a quarterly basis. The Company evaluates all of these factors and determines whether a change in the estimate of its liability for pending and future claims and defense costs or insurance receivable is warranted. | ||
In connection with the recognition of liabilities for asbestos-related matters, the Company records asbestos-related insurance recoveries that are probable. The Company's estimate of asbestos-related insurance recoveries represents estimated amounts due to the Company for previously paid and settled claims and the probable reimbursements relating to its estimated liability for pending and future claims. In determining the amount of insurance recoverable, the Company considers a number of factors, including available insurance, allocation methodologies, solvency and creditworthiness of the insurers. See Note 13. | ||
Insurable Liabilities—The Company records liabilities for its workers' compensation, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated by utilizing actuarial valuations based upon historical claims experience. Certain insurable liabilities, such as workers' compensation, are discounted using a risk-free rate of return when the pattern and timing of the future obligation is reliably determinable. The impact of the discount on the Consolidated Balance Sheets was to reduce the obligation by $14 million to $58 million as of September 27, 2013 and by $15 million to $58 million as of September 28, 2012. The Company records receivables from third party insurers when recovery has been determined to be probable. The Company maintains captive insurance companies to manage certain of its insurable liabilities. The captive insurance companies hold certain investment accounts for the purpose of providing collateral for the Company's insurable liabilities. See Note 12. | ||
Fair Value of Financial Instruments—Authoritative guidance for fair value measurements establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized as follows: | ||
• | Level 1—inputs are based upon quoted prices (unadjusted) in active markets for identical assets or liabilities which are accessible as of the measurement date. | |
• | Level 2—inputs are based upon quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-derived valuations for the asset or liability that are derived principally from or corroborated by market data for which the primary inputs are observable, including forward interest rates, yield curves, credit risk and exchange rates. | |
• | Level 3—inputs for the valuations are unobservable and are based on management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques such as option pricing models and discounted cash flow models. | |
Financial Instruments—The Company may use interest rate swaps, currency swaps, forward and option contracts and commodity swaps to manage risks generally associated with interest rate risk, foreign exchange risk and commodity prices. Derivatives used for hedging purposes are designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract are highly effective at offsetting the changes in the fair value of the underlying hedged item at inception of the hedge and are expected to remain highly effective over the life of the hedge contract. | ||
All derivative financial instruments are reported on the Consolidated Balance Sheets at fair value. Derivatives used to economically hedge foreign currency denominated balance sheet items related to operating activities are reported in selling, general and administrative expenses along with offsetting transaction gains and losses on the items being hedged. Derivatives used to economically hedge dividends declared in Swiss francs through April of 2011 were reported in the Company's Consolidated Statements of Operations as part of other expense, net along with offsetting transaction gains and losses on the items being hedged. Beginning in May of 2011, the Company no longer declared dividends in Swiss francs. Derivatives used to manage the exposure to changes in interest rates are reported in interest expense along with offsetting transaction gains and losses on the items being hedged. Gains and losses on net investment hedges are included in the cumulative translation adjustment component of accumulated other comprehensive loss to the extent they are effective. Gains and losses on derivatives designated as cash flow hedges are recorded in accumulated other comprehensive loss and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The Company classifies cash flows associated with the settlement of derivatives consistent with the nature of the transaction being hedged. The ineffective portion of all hedges, if any, is recognized currently in earnings as noted above. Instruments that do not qualify for hedge accounting are marked to market with changes recognized in current earnings. See Note 12. | ||
Redeemable Noncontrolling Interests—Noncontrolling interest with redemption features, such as put options, that are not solely within the Company's control are considered redeemable noncontrolling interests. The Company accretes changes in the redemption value through noncontrolling interest in subsidiaries net income attributable to the noncontrolling interest over the period from the date of issuance to the earliest redemption date. Redeemable noncontrolling interest is considered to be temporary equity and is therefore reported in the mezzanine section between liabilities and equity on the Company's Consolidated Balance Sheet at the greater of the initial carrying amount increased or decreased for the noncontrolling interest's share of net income or loss or its redemption value. | ||
Recently Adopted Accounting Pronouncements—In June 2011, the Financial Accounting Standards Board ("FASB") issued authoritative guidance for the presentation of comprehensive income. The guidance amended the reporting of Other Comprehensive Income ("OCI") by eliminating the option to present OCI as part of the Consolidated Statement of Shareholders' Equity. The amendment will not impact the accounting for OCI, but only its presentation in the Company's Consolidated Financial Statements. The guidance requires that items of net income and OCI be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements which include total net income and its components, consecutively followed by total OCI and its components to arrive at total comprehensive income. In December 2011, the FASB issued authoritative guidance to defer the effective date for those aspects of the guidance relating to the presentation of reclassification adjustments out of Accumulated other comprehensive income ("AOCI") by component. The guidance, other than as it relates to the presentation of reclassification adjustments, became effective for Tyco in the first quarter of fiscal 2013 and was applied retrospectively to prior periods. See Note 15. | ||
In September 2011, the FASB issued authoritative guidance which amends the process of testing goodwill for impairment. Additionally, in July 2012, the FASB issued authoritative guidance which similarly amended the process of testing indefinite-lived intangible assets for impairment. The guidance permits an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (defined as having a likelihood of more than fifty percent) that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount. If an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, performing the traditional two step goodwill impairment test is unnecessary. If an entity concludes otherwise, it would be required to perform the first step of the two step goodwill impairment test. If the carrying amount of the reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test. If an entity determines it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, then the entity is not required to take further action. If an entity concludes otherwise, it would be required to perform a quantitative impairment test by calculating the fair value of the asset and comparing it with its carrying amount. If the carrying amount of the asset exceeds its fair value, then the entity shall recognize an impairment loss in an amount equal to that excess. However, an entity has the option to bypass the qualitative assessment in any period and proceed directly to the quantitative assessment. The guidance became effective for Tyco for interim impairment testing beginning in the first quarter of fiscal 2013. | ||
Recently Issued Accounting Pronouncements—In January 2013, the FASB issued authoritative guidance clarifying the scope of disclosures about offsetting assets and liabilities. The guidance clarifies that the scope of the disclosures applies to derivatives accounted for in accordance with authoritative guidance for derivatives and hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that either offset or are subject to an enforceable master netting agreement or similar agreement. The guidance is applied retrospectively and will be effective for Tyco in the first fiscal quarter of fiscal 2014. The Company does not expect the guidance to have a significant impact on its disclosures. | ||
In February 2013, the FASB issued authoritative guidance for the reporting of amounts reclassified out of AOCI. The amendment will not change the current requirements for reporting net income or OCI in the financial statements. The guidance requires the presentation, either on the face of the statement where net income is presented or in the notes, of the significant reclassifications out of AOCI by the respective line items of net income if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, the amendment requires a cross-reference to other disclosures under U.S. GAAP that provide additional detail about those amounts. The guidance will be effective for Tyco in the first quarter of fiscal 2014. The Company does not expect the guidance to have a significant impact on its disclosures. | ||
In March 2013, the FASB issued authoritative guidance on the accounting for the cumulative translation adjustment ("CTA") when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. The guidance requires that the parent release any CTA into net income when the parent ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity which results in a substantially complete liquidation of the foreign entity; when the sale of an investment in a foreign entity results in the loss of a controlling financial interest; or where an acquirer obtains control of an acquiree in which it had an equity interest immediately before the acquisition date. The guidance does not change the requirement to release a pro rata portion of the CTA into net income upon a partial sale of an equity method investment that is a foreign entity. The guidance will be effective for Tyco in the first quarter of fiscal 2015, with early adoption permitted. The Company is currently assessing the timing of its adoption along with what impact, if any, the guidance will have upon adoption. | ||
In July 2013, the FASB issued authoritative guidance for the presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a NOL carryforward, a similar tax loss, or a tax credit carryforward. If the NOL carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction or the tax law of the jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with deferred tax assets. This guidance does not require any additional recurring disclosures and will be effective for Tyco the first fiscal quarter of fiscal 2015. The Company is currently assessing the impact, if any, the guidance will have upon adoption. |
2012_Separation_Transaction
2012 Separation Transaction | 12 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Extraordinary and Unusual Items [Abstract] | ' | |||||||||||||||||||||||
2012 Separation Transaction | ' | |||||||||||||||||||||||
2012 Separation Transaction | ||||||||||||||||||||||||
On September 28, 2012, the Company completed the spin-offs of ADT and Tyco Flow Control, formerly the North American residential security and flow control businesses of Tyco, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders. | ||||||||||||||||||||||||
In connection with activities taken to complete the 2012 Separation and to create the revised organizational structure of the Company, the Company incurred pre-tax charges ("Separation Charges") of $61 million and $839 million for the years ended September 27, 2013 and September 28, 2012, respectively. The amounts presented within discontinued operations are costs directly related to the 2012 Separation that are not expected to provide a future benefit to the Company. The components of the Separation Charges incurred within continuing operations and discontinued operations consisted of the following ($ in millions): | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | |||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||||||||||||||
Continuing | Discontinued | Total | Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | Operations | Operations | |||||||||||||||||||||
Loss on extinguishment of debt (See Note 10) | $ | — | $ | — | $ | — | $ | 453 | $ | — | $ | 453 | ||||||||||||
Professional fees | 5 | 1 | 6 | — | 191 | 191 | ||||||||||||||||||
Non-cash impairment charges | — | — | — | 23 | — | 23 | ||||||||||||||||||
Information technology related costs | 10 | — | 10 | — | 30 | 30 | ||||||||||||||||||
Employee compensation costs | 3 | 1 | 4 | 74 | 17 | 91 | ||||||||||||||||||
Marketing costs | 40 | — | 40 | 3 | 5 | 8 | ||||||||||||||||||
Interest expense | — | — | — | — | 3 | 3 | ||||||||||||||||||
Other costs | 11 | (10 | ) | 1 | 8 | 32 | 40 | |||||||||||||||||
Total Pre-Tax Separation Charges | 69 | (8 | ) | 61 | 561 | 278 | 839 | |||||||||||||||||
Tax-related separation charges | 22 | — | 22 | 266 | (2 | ) | 264 | |||||||||||||||||
Tax benefit on Pre-Tax Separation Charges | (13 | ) | — | (13 | ) | (5 | ) | (5 | ) | (10 | ) | |||||||||||||
Total Separation Charges, net of tax benefit | $ | 78 | $ | (8 | ) | $ | 70 | $ | 822 | $ | 271 | $ | 1,093 | |||||||||||
During fiscal 2011, the Company incurred $24 million of Separation Charges primarily related to professional fees, which have been presented in income from discontinued operations in the Consolidated Statement of Operations. | ||||||||||||||||||||||||
Separation Charges were classified in continuing operations within the Company's Consolidated Statement of Operations as follows ($ in millions): | ||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | $ | 61 | $ | 4 | ||||||||||||||||||||
Separation costs | 8 | 71 | ||||||||||||||||||||||
Restructuring, asset impairment and divestiture charges (gains), net | — | 33 | ||||||||||||||||||||||
Other expense, net | — | 453 | ||||||||||||||||||||||
Total | $ | 69 | $ | 561 | ||||||||||||||||||||
Divestitures
Divestitures | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Divestitures | ' | |||||||||||
3. Divestitures | ||||||||||||
The Company has continued to assess the strategic fit of its various businesses and has pursued the divestiture of certain businesses which do not align with its long-term strategy. | ||||||||||||
Fiscal 2013 | ||||||||||||
During the fourth quarter of fiscal 2013, the Company approved a plan to sell its armored guard business in New Zealand and its fire and security business in Fiji, both of which are in its ROW Installation & Services segment; however, as of September 27, 2013, the sale had not been completed. The assets and liabilities have not been presented separately as held-for-sale in the Consolidated Balance Sheets as the amounts were not material to the presentation of all periods. A pre-tax loss of approximately $13 million for the write-down to fair value, less cost to sell was recorded in Restructuring, asset impairment and divestiture charges (gains), net in the Company's Consolidated Statements of Operations for the year ended September 27, 2013. This business has not been presented in discontinued operations as the amounts were not material to the Consolidated Financial Statements. The Company expects to complete the transaction during the first quarter of fiscal 2014. | ||||||||||||
During the third quarter of fiscal 2013, the Company completed the sale of its North America guarding business in its NA Installation & Services segment for approximately $25 million of cash proceeds, net of $2 million of cash divested on sale. The pre-tax loss for the write-down to fair value, less cost to sell, was not material. This business was accounted for as held for sale during the second quarter of fiscal 2013 and presented as held for sale as of September 28, 2012; however, its results of operations have not been presented in discontinued operations as the amounts were not material to the Consolidated Financial Statements. As of September 28, 2012, total assets to be divested of $35 million are included in Prepaid expenses and other current assets and total liabilities to be divested of $8 million are included in Accrued and other current liabilities on the accompanying Consolidated Balance Sheet. The assets and liabilities have not been presented separately in the Consolidated Balance Sheets as the amounts were not material. | ||||||||||||
Fiscal 2012 | ||||||||||||
On September 28, 2012, Tyco completed the 2012 Separation and has presented its former North American residential security and flow control businesses as discontinued operations in all periods prior to the completion of the 2012 Separation. See Note 2 for additional information regarding the 2012 Separation. At the time of the 2012 Separation, the Company used available information to develop its best estimates for certain assets and liabilities related to the Separation. In limited instances, final determination of the balances will be made in subsequent periods, such as in the case of when final income tax returns are filed in certain jurisdictions where those returns include a combination of Tyco, ADT and/or Tyco Flow Control legal entities. During the year ended September 27, 2013, a net increase of $1 million was recorded within the Consolidated Statement of Shareholders' Equity as Other, primarily related to a cash true-up adjustment received from Pentair in the third quarter of fiscal 2013, offset by a cash true-up adjustment paid to ADT during the first quarter of fiscal 2013 and adjustments for the impact of filing final income tax returns. Any additional adjustments are not expected to be material. | ||||||||||||
During the year ended September 28, 2012, the Company sold its Fire Equipment de Mexico, S.A. business, which was part of the Company's Global Products segment. The sale was completed for approximately $1 million of cash consideration and a pre-tax loss of $3 million was recorded in income from discontinued operations, net of income taxes in the Company's Consolidated Statements of Operations. | ||||||||||||
Fiscal 2011 | ||||||||||||
On November 9, 2010, the Company announced that it entered into an investment agreement (the "Agreement") to sell a majority interest in its Electrical and Metal Products business to an affiliate of the private equity firm Clayton, Dubilier & Rice, LLC ("CD&R"). The Company formed a newly incorporated holding company, Atkore, to hold the Company's Electrical and Metal Products business. On December 22, 2010, the transaction closed and CD&R acquired shares of a newly-created class of cumulative convertible preferred stock of Atkore (the "Preferred Stock"). The Preferred Stock initially represented 51% of the outstanding capital stock (on an as-converted basis) of Atkore. In connection with the closing, the Company received cash proceeds of approximately $713 million and recorded a gain of $259 million, which included $33 million of cumulative translation gain, during the first quarter of fiscal 2011. During the year ended September 30, 2011, the Company recorded net working capital adjustments of $11 million that reduced the gain on disposal. The gain on disposal is recorded within Restructuring, asset impairment and divestiture charges (gains), net in the Company's Consolidated Statements of Operations. | ||||||||||||
In accordance with the terms and conditions of the Agreement, CD&R is entitled to a quarterly dividend which is payable in cash or in shares of Preferred Stock, at the discretion of Atkore. Since the closing of the transaction, Atkore has elected to pay CD&R's quarterly dividend in shares of Preferred Stock, which has diluted the Company's ownership in Atkore. As of September 27, 2013, the Company's ownership percentage was approximately 42%. Tyco's retained ownership interest in Atkore is accounted for under the equity method of accounting and is recorded in Other assets in the Company's Consolidated Balance Sheet. As of September 27, 2013 and September 28, 2012, such interest was $44 million and $92 million, respectively. The Company's proportionate share of Atkore's net loss is recorded within equity loss in earnings of unconsolidated subsidiaries in the Company's Consolidated Statement of Operations. The Company recorded equity losses of $48 million, $26 million and $12 million for the years ended September 27, 2013, September 28, 2012 and September 30, 2011, respectively. | ||||||||||||
Discontinued Operations | ||||||||||||
The components of income from discontinued operations, net of income taxes are as follows ($ in millions): | ||||||||||||
For the Years Ended | ||||||||||||
September 27, | September 28, | September 30, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Net revenue | $ | — | $ | 7,148 | $ | 6,752 | ||||||
Pre-tax income from discontinued operations | $ | — | $ | 1,208 | $ | 1,145 | ||||||
Pre-tax separation charges included within discontinued operations (See Note 2) | 8 | (278 | ) | (24 | ) | |||||||
Pre-tax gain on sale of discontinued operations | — | 4 | 170 | |||||||||
Income tax benefit (expense) | 1 | (130 | ) | (189 | ) | |||||||
Income from discontinued operations, net of income taxes | $ | 9 | $ | 804 | $ | 1,102 | ||||||
Other Matters | ||||||||||||
The Company has used available information to develop its best estimates for certain assets and liabilities related to the 2007 Separation. In limited instances, final determination of the balances will be made in subsequent periods. There were nil for both years ended September 27, 2013 and September 28, 2012, and $13 million for September 30, 2011 of adjustments recorded through Tyco shareholders' equity. Adjustments in the future for the impact of filing final income tax returns in certain jurisdictions where those returns include a combination of Tyco, Covidien and/or TE Connectivity legal entities and for certain amended income tax returns for the periods prior to the 2007 Separation may be recorded to either Tyco shareholders' equity or the Consolidated Statement of Operations depending on the specific item giving rise to the adjustment. | ||||||||||||
Additionally, the year ended September 28, 2012 included $21 million and both the years ended September 27, 2013 and September 30, 2011 included nil of income tax expense associated with pre-2007 Separation tax liabilities, which was recorded in income from discontinued operations, net of income taxes in the Company's Consolidated Statements of Operations. During the year ended September 28, 2012, the Company was reimbursed $8 million pursuant to a tax sharing agreement (the "2007 Tax Sharing Agreement") entered into in conjunction with the 2007 Separation, which has been recorded in income from discontinued operations, net of income taxes in the Company's Consolidated Statements of Operations. See Note 6. | ||||||||||||
Divestiture Charges (Gains), Net | ||||||||||||
During 2013, 2012 and 2011, the Company recorded net losses of $20 million and $14 million, and net gain of $224 million, respectively, in Restructuring, asset impairment and divestiture charges (gains), net in the Company's Consolidated Statements of Operations. The net loss for the year ended September 27, 2013 primarily resulted from the write-down to fair value, less cost to sell, of the armored guard business in New Zealand and the fire and security business in Fiji, both of which are in our ROW Installation & Services segment. The net loss for the year ended September 28, 2012 primarily resulted from an indemnification resulting from the divestiture of the Company's Electrical and Metal products business. The net gain for the year ended September 30, 2011 includes a gain of $248 million, net of working capital adjustments, recognized in conjunction with the sale of a majority interest in the Company's Electrical and Metal Products business, as discussed above. |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment Charges, Net | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring and Asset Impairment Charges, Net | ' | |||||||||||
Restructuring and Asset Impairment Charges, Net | ||||||||||||
During fiscal 2013, the Company identified and pursued opportunities for cost savings through restructuring activities and workforce reductions to improve operating efficiencies across the Company's businesses. The Company expects to incur restructuring and restructuring related charges in the range of $50 million to $75 million in fiscal 2014, which does not include repositioning charges as discussed below. | ||||||||||||
The Company recorded restructuring and asset impairment charges by action and Consolidated Statement of Operations classification as follows ($ in millions): | ||||||||||||
For the Years Ended | ||||||||||||
September 27, 2013 | September 28, 2012 | September 30, 2011 | ||||||||||
2013 actions | $ | 99 | $ | — | $ | — | ||||||
2012 actions | 3 | 94 | — | |||||||||
2011 and prior actions | 12 | 10 | 78 | |||||||||
Total restructuring and asset impairment charges, net | $ | 114 | $ | 104 | $ | 78 | ||||||
Charges reflected in cost of sales | — | — | 2 | |||||||||
Charges reflected in SG&A | — | — | 1 | |||||||||
Charges reflected in restructuring, asset impairments and divestiture charges (gains), net | $ | 114 | $ | 104 | $ | 75 | ||||||
2013 Actions | ||||||||||||
Restructuring and asset impairment charges, net, during the year ended September 27, 2013 related to the 2013 actions are as follows ($ in millions): | ||||||||||||
For the Year Ended | ||||||||||||
September 27, 2013 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | 34 | $ | 1 | $ | 35 | ||||||
ROW Installation & Services | 46 | 4 | 50 | |||||||||
Global Products | 9 | 2 | 11 | |||||||||
Corporate and Other | 3 | — | 3 | |||||||||
Total | $ | 92 | $ | 7 | $ | 99 | ||||||
The rollforward of the reserves from September 28, 2012 to September 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 28, 2012 | $ | — | ||||||||||
Charges | 102 | |||||||||||
Reversals | (4 | ) | ||||||||||
Utilization | (29 | ) | ||||||||||
Transfer | (1 | ) | ||||||||||
Balance as of September 27, 2013 | $ | 68 | ||||||||||
2012 Actions | ||||||||||||
Restructuring and asset impairment charges, net, during the years ended September 27, 2013 and September 28, 2012 related to the 2012 actions are as follows ($ in millions): | ||||||||||||
For the Year Ended | ||||||||||||
September 27, 2013 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
ROW Installation & Services | $ | 3 | $ | 1 | $ | 4 | ||||||
Global Products | (1 | ) | — | (1 | ) | |||||||
Total | $ | 2 | $ | 1 | $ | 3 | ||||||
For the Year Ended | ||||||||||||
September 28, 2012 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits(1) | Charges(2) | |||||||||||
NA Installation & Services | $ | 10 | $ | 34 | $ | 44 | ||||||
ROW Installation & Services | 22 | 5 | 27 | |||||||||
Global Products | 7 | 3 | 10 | |||||||||
Corporate and Other | 9 | 4 | 13 | |||||||||
Total | $ | 48 | $ | 46 | $ | 94 | ||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Includes $6 million of charges for the year ended September 28, 2012 related to the 2012 Separation recorded by Corporate and Other. | |||||||||||
(2) | Includes $20 million, $1 million and $2 million of asset impairment charges recorded by NA Installation & Services, ROW Installation & Services and Global Products, respectively, for the year ended September 28, 2012 related to the 2012 Separation. Includes $4 million of other restructuring charges recorded by Corporate and Other for the year ended September 28, 2012 related to the 2012 Separation. | |||||||||||
Restructuring and asset impairment charges, net, incurred cumulative to date from initiation of the 2012 actions are as follows ($ in millions): | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | 10 | $ | 34 | $ | 44 | ||||||
ROW Installation & Services | 25 | 6 | 31 | |||||||||
Global Products | 6 | 3 | 9 | |||||||||
Corporate and Other | 9 | 4 | 13 | |||||||||
Total | $ | 50 | $ | 47 | $ | 97 | ||||||
The rollforward of the reserves from September 28, 2012 to September 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 28, 2012 | $ | 38 | ||||||||||
Charges | 8 | |||||||||||
Reversals | (5 | ) | ||||||||||
Utilization | (25 | ) | ||||||||||
Currency translation | (1 | ) | ||||||||||
Balance as of September 27, 2013 | $ | 15 | ||||||||||
2011 and prior actions | ||||||||||||
The Company continues to maintain restructuring reserves related to actions initiated prior to fiscal 2012. The total amount of these reserves was $48 million and $65 million as of September 27, 2013 and September 28, 2012, respectively. The Company incurred $12 million, $10 million and $78 million of restructuring charges, net and utilized $30 million, $64 million and $90 million for the year ended September 27, 2013, September 28, 2012 and September 30, 2011, respectively, related to 2011 and prior actions. The aggregate remaining reserves primarily relate to facility exit costs for long-term non-cancelable lease obligations primarily within the Company's ROW Installation & Services segment. | ||||||||||||
Total Restructuring Reserves | ||||||||||||
As of September 27, 2013 and September 28, 2012 , restructuring reserves related to all actions were included in the Company's Consolidated Balance Sheets as follows ($ in millions): | ||||||||||||
As of | ||||||||||||
September 27, | September 28, | |||||||||||
2013 | 2012 | |||||||||||
Accrued and other current liabilities | $ | 113 | $ | 84 | ||||||||
Other liabilities | 18 | 19 | ||||||||||
Total | $ | 131 | $ | 103 | ||||||||
Repositioning | ||||||||||||
The Company has initiated certain global actions designed to reduce its cost structure and improve future profitability by streamlining operations and better aligning functions, which the Company refers to as repositioning actions. These actions may or may not lead to a future restructuring action. During the year ended September 27, 2013, the Company recorded repositioning charges of $20 million primarily related to professional fees which have been reflected in Selling, general and administrative expenses in the Consolidated Statement of Operations. There were no repositioning charges incurred during fiscal 2012 or 2011. |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 27, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
Acquisitions | |
During the year ended September 27, 2013, total consideration for acquisitions included in continuing operations was $257 million, which was comprised of $229 million cash paid, net of cash acquired of $9 million, and $28 million of consideration that is primarily contingent on the successful transfer of a business license in China to Tyco. Cash paid for acquisitions primarily related to the acquisition of Exacq Technologies ("Exacq") on July 26, 2013 by the Company's Global Products segment. Exacq is a developer of open architecture video management systems for security and surveillance applications. Cash paid for Exacq totaled approximately $148 million, net of cash acquired of $2 million. The balance of the acquisitions for the year ended September 27, 2013 were included within the Company's NA Installation & Services and ROW Installation & Services segments, none of which were material individually or in the aggregate. | |
During the year ended September 28, 2012, cash paid for acquisitions included in continuing operations totaled $217 million, net of cash acquired of $17 million, which primarily related to the acquisition of Visonic Ltd. ("Visonic") on December 6, 2011. Visonic is a global developer and manufacturer of electronic security systems and components. Cash paid for Visonic totaled approximately $94 million, net of cash acquired of $5 million by the Company's Global Products segment. The balance of the acquisitions for the year ended September 28, 2012, were included within the Company's NA and ROW Installation & Services and Global Products segments, none of which were material individually or in the aggregate. | |
The Company recorded redeemable noncontrolling interest of $12 million related to an acquisition in the second quarter of 2012. Net loss and adjustments related to changes in the redemption value were immaterial during the years ended September 27, 2013 and September 28, 2012. The Company's redeemable noncontrolling interest balance was $12 million as of both September 27, 2013 and September 28, 2012. | |
During the year ended September 30, 2011, cash paid for acquisitions included in continuing operations totaled $353 million, net of cash acquired of $3 million, which primarily related to the acquisitions of Oceania Capital Partners Limited's Signature Security Group ("Signature Security") and Chemguard Inc. ("Chemguard"). Signature Security is focused on providing electronic security to the small business and residential markets in Australia and New Zealand and was acquired on April 29, 2011. Cash paid for Signature Security totaled approximately $184 million, net of cash acquired of $2 million by the Company's ROW Installation & Services segment. On September 1, 2011, the Company's Global Products segment completed the acquisition of Chemguard for approximately $130 million in cash, net of cash acquired of $1 million. Chemguard is a provider of firefighting foam concentrates and equipment, foam systems, services and specialty chemicals. The balance of the acquisitions for the year ended September 30, 2011, were included within the Company's NA and ROW Installation & Services and Global Products segments, none of which were material individually or in the aggregate. | |
Acquisition and Integration Related Costs | |
Acquisition and integration costs are expensed as incurred. During the years ended September 27, 2013, September 28, 2012 and September 30, 2011, the Company incurred acquisition and integration costs of $4 million, $9 million, and $5 million, respectively. Such costs are recorded in Selling, general and administrative expenses in the Company's Consolidated Statements of Operations. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
Significant components of the income tax provision for 2013, 2012 and 2011 are as follows ($ in millions): | ||||||||||||||||
For the Years Ended | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
Current: | ||||||||||||||||
United States: | ||||||||||||||||
Federal | $ | 14 | $ | (4 | ) | $ | (4 | ) | ||||||||
State | 8 | 6 | (2 | ) | ||||||||||||
Non U.S. | 95 | 172 | 144 | |||||||||||||
Current income tax provision | $ | 117 | $ | 174 | $ | 138 | ||||||||||
Deferred: | ||||||||||||||||
United States: | ||||||||||||||||
Federal | $ | (12 | ) | $ | (10 | ) | $ | (17 | ) | |||||||
State | 5 | (2 | ) | (12 | ) | |||||||||||
Non U.S. | 15 | 186 | 25 | |||||||||||||
Deferred income tax provision | 8 | 174 | (4 | ) | ||||||||||||
$ | 125 | $ | 348 | $ | 134 | |||||||||||
Non-U.S. income from continuing operations before income taxes was $955 million, $198 million and $364 million for 2013, 2012 and 2011, respectively. | ||||||||||||||||
The reconciliation between U.S. federal income taxes at the statutory rate and the Company's provision for income taxes on continuing operations for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 is as follows ($ in millions): | ||||||||||||||||
For the Years Ended | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
Notional U.S. federal income tax expense at the statutory rate | $ | 245 | $ | 15 | $ | 267 | ||||||||||
Adjustments to reconcile to the income tax provision: | ||||||||||||||||
U.S. state income tax provision, net | (3 | ) | 6 | 10 | ||||||||||||
Non U.S. net earnings(1) | (211 | ) | 4 | (108 | ) | |||||||||||
Nondeductible charges | 79 | 61 | (18 | ) | ||||||||||||
Valuation allowance | 4 | 235 | (3 | ) | ||||||||||||
Other | 11 | 27 | (14 | ) | ||||||||||||
Provision for income taxes | $ | 125 | $ | 348 | $ | 134 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | Excludes nondeductible charges and other items which are broken out separately in the table. | |||||||||||||||
2012 Separation related charges associated with the early extinguishment of debt further increased a net operating loss carryforward in 2012, which the Company does not expect to realize in future periods. The valuation allowance on this loss carryforward is included in the Valuation allowance line of the table above. | ||||||||||||||||
Nondeductible charges during 2013 and 2012 are primarily related to separation costs incurred. Included in nondeductible charges during 2011 is an income tax benefit from favorable audit resolutions in multiple jurisdictions. | ||||||||||||||||
Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax asset as of September 27, 2013 and September 28, 2012 are as follows ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||
Deferred tax assets: | ||||||||||||||||
Accrued liabilities and reserves | $ | 289 | $ | 56 | ||||||||||||
Tax loss and credit carryforwards | 2,434 | 2,240 | ||||||||||||||
Postretirement benefits | 191 | 261 | ||||||||||||||
Deferred revenue | 114 | 138 | ||||||||||||||
Other | 102 | 380 | ||||||||||||||
3,130 | 3,075 | |||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Property, plant and equipment | (192 | ) | (177 | ) | ||||||||||||
Intangibles assets | (568 | ) | (500 | ) | ||||||||||||
Other | (167 | ) | (101 | ) | ||||||||||||
(927 | ) | (778 | ) | |||||||||||||
Net deferred tax asset before valuation allowance | 2,203 | 2,297 | ||||||||||||||
Valuation allowance | (1,950 | ) | (1,826 | ) | ||||||||||||
Net deferred tax asset | $ | 253 | $ | 471 | ||||||||||||
The valuation allowance for deferred tax assets of $2.0 billion and $1.8 billion as of September 27, 2013 and September 28, 2012, respectively, relates principally to the uncertainty of the utilization of certain deferred tax assets, primarily tax loss and credit carryforwards in various jurisdictions. Specifically, the valuation allowance as of September 27, 2013 and September 28, 2012 includes separation related charges associated with the early extinguishment of debt which further increased a net operating loss carryforward which the Company does not expect to realize in future periods. The valuation allowance was calculated and recorded when the Company determined that it was more-likely-than-not that all or a portion of our deferred tax assets would not be realized. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets on the Company's Consolidated Balance Sheets. | ||||||||||||||||
As of September 27, 2013, deferred tax assets of approximately $95 million relate to certain operating loss carryforwards resulting from the exercise of employee stock options and restricted stock vestings, the tax benefit of which, when recognized, will be accounted for as a credit to additional paid-in capital rather than a reduction of income tax provision. | ||||||||||||||||
As of September 27, 2013, the Company had $7,592 million of net operating loss carryforwards in certain non-U.S. jurisdictions. Of these, $6,959 million have no expiration, and the remaining $633 million will expire in future years through 2031. In the U.S., there were approximately $810 million of federal and $467 million of state net operating loss carryforwards as of September 27, 2013, which will expire in future years through 2033. | ||||||||||||||||
As of September 27, 2013 and September 28, 2012, the Company had unrecognized tax benefits of $257 million and $121 million, respectively, of which $236 million and $107 million, if recognized, would affect the effective tax rate. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The Company accrued interest and penalties related to the unrecognized tax benefits of $41 million and $38 million as of September 27, 2013 and September 28, 2012, respectively. The Company recognized $2 million, $3 million and $2 million of income tax expense for interest and penalties related to unrecognized tax benefits for the years ended September 27, 2013, September 28, 2012 and September 30, 2011, respectively. | ||||||||||||||||
A rollforward of unrecognized tax benefits as of September 27, 2013, September 28, 2012 and September 30, 2011 is as follows ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
Balance as of beginning of year | $ | 121 | $ | 145 | $ | 137 | ||||||||||
Additions based on tax positions related to the current year | 137 | 18 | 9 | |||||||||||||
Additions based on tax positions related to prior years | 7 | 7 | 31 | |||||||||||||
Reductions based on tax positions related to prior years | (6 | ) | (38 | ) | (28 | ) | ||||||||||
Reductions related to settlements | — | (1 | ) | (4 | ) | |||||||||||
Reductions related to lapse of the applicable statute of limitations | (2 | ) | (3 | ) | (6 | ) | ||||||||||
Foreign currency translation adjustments | — | (7 | ) | 6 | ||||||||||||
Balance as of end of year | $ | 257 | $ | 121 | $ | 145 | ||||||||||
Certain of Tyco's uncertain tax positions relate to tax years that remain subject to audit by the taxing authorities in the U.S. federal, state and local or foreign jurisdictions. Open tax years in significant jurisdictions are as follows: | ||||||||||||||||
Jurisdiction | Years | |||||||||||||||
Open To Audit | ||||||||||||||||
Australia | 2004-2012 | |||||||||||||||
Canada | 2002-2012 | |||||||||||||||
Germany | 2005-2012 | |||||||||||||||
South Korea | 2006-2012 | |||||||||||||||
Switzerland | 2003-2012 | |||||||||||||||
United Kingdom | 2011-2012 | |||||||||||||||
United States | 1997-2012 | |||||||||||||||
Based on the current status of its income tax audits, the Company believes that it is reasonably possible that between nil and $30 million in unrecognized tax benefits may be resolved in the next twelve months. | ||||||||||||||||
Tax Sharing Agreements and Other Income Tax Matters | ||||||||||||||||
In connection with the 2012 and 2007 Separations, the Company entered into the 2012 and 2007 Tax Sharing Agreements, respectively, that govern the respective rights, responsibilities, and obligations of Tyco, Pentair and ADT after the 2012 Separation and Tyco, Covidien and TE Connectivity after the 2007 Separation with respect to taxes. Specifically this includes ordinary course of business taxes and taxes, if any, incurred as a result of any failure of the distribution of all of the shares of Pentair, ADT, Covidien or TE Connectivity to qualify as a tax-free distribution for U.S. federal income tax purposes within the meaning of Section 355 of the Internal Revenue Code ("the Code") or certain internal transactions undertaken in anticipation of the spin-offs to qualify for tax-favored treatment under the Code. | ||||||||||||||||
Under the 2012 Tax Sharing Agreement Tyco, Pentair and ADT share (i) certain pre-Distribution income tax liabilities that arise from adjustments made by tax authorities to ADT's, Tyco Flow Control's and Tyco's income tax returns, and (ii) payments required to be made by Tyco with respect to the 2007 Tax Sharing Agreement, excluding approximately $175 million of pre-2012 Separation related tax liabilities that were anticipated to be paid prior to the 2012 Separation (collectively, "Shared Tax Liabilities"). Tyco will be responsible for the first $500 million of Shared Tax Liabilities. Pentair and ADT will share 42% and 58%, respectively, of the next $225 million of Shared Tax Liabilities. Tyco, Pentair and ADT will share 52.5% 20% and 27.5%, respectively, of Shared Tax Liabilities above $725 million. All costs and expenses associated with the management of these shared tax liabilities will generally be shared 20%, 27.5%, and 52.5% by Pentair, ADT and Tyco, respectively. In connection with the execution of the 2012 Tax Sharing Arrangement, Tyco established liabilities representing the fair market value of its obligations which was recorded in other liabilities in the Company's Consolidated Balance Sheet with an offset to Tyco shareholders' equity. | ||||||||||||||||
Under the 2007 Tax Sharing Agreement, Tyco shares responsibility for certain of its, Covidien's and TE Connectivity's income tax liabilities, which result in cash payments, based on a sharing formula for periods prior to and including June 29, 2007. More specifically, Tyco, Covidien and TE Connectivity share 27%, 42% and 31%, respectively, of shared income tax liabilities that arise from adjustments made by tax authorities to Tyco's, Covidien's and TE Connectivity's U.S. and certain non-U.S. income tax returns. The costs and expenses associated with the management of these shared tax liabilities are generally shared equally among the parties. In connection with the execution of the 2007 Tax Sharing Agreement, Tyco established a net receivable from Covidien and TE Connectivity representing the amount Tyco expected to receive for pre-2007 Separation uncertain tax positions, including amounts owed to the Internal Revenue Service ("IRS"). Tyco also established liabilities representing the fair market value of its share of Covidien's and TE Connectivity's estimated obligations, primarily to the IRS, for their pre-2007 Separation taxes covered by the 2007 Tax Sharing Agreement. During the year ended September 27, 2013, Tyco made a net cash payment of $16 million to Covidien and TE Connectivity related to the resolution of certain IRS audit and pre-Separation tax matters. | ||||||||||||||||
Tyco assesses the shared tax liabilities and related guaranteed liabilities related to both the 2012 and 2007 Tax Sharing Agreements at each reporting period. Tyco will provide payment to Pentair and ADT under the 2012 Tax Sharing Agreement and to Covidien and TE Connectivity under the 2007 Tax Sharing Agreement as the shared income tax liabilities are settled. Settlement is expected to occur as the tax, audit and legal processes are completed for the impacted years and cash payments are made. Due to the nature of the unresolved adjustments described in the next paragraph, the maximum amount of future payments under the 2012 and 2007 Tax Sharing Agreements is not known. Such cash payments, when they occur, will reduce the guarantor liability as such payments represent an equivalent reduction of risk. Tyco also assesses the sufficiency of the 2012 and 2007 Tax Sharing Agreements guarantee liabilities on a quarterly basis and will increase the liability when it is probable that cash payments expected to be made under the 2012 or 2007 Tax Sharing Agreements exceed the recorded balance. | ||||||||||||||||
Tyco and its subsidiaries' income tax returns are examined periodically by various tax authorities. In connection with these examinations, tax authorities, including the IRS, have raised issues and proposed tax adjustments, in particular with respect to years preceding the 2007 Separation. The issues and proposed adjustments related to such years are generally subject to the sharing provisions of the 2007 Tax Sharing Agreement and Tyco's liabilities under the 2007 Tax Sharing Agreement are further subject to the sharing provisions in the 2012 Tax Sharing Agreement. Tyco has previously disclosed that in connection with U.S. federal tax audits, the IRS has raised a number of issues and proposed tax adjustments for periods beginning with the 1997 tax year. Although Tyco has been able to resolve substantially all of the issues and adjustments proposed by the IRS for tax years through 2007, it has not been able to resolve matters related to the treatment of certain intercompany debt transactions during the period. As a result, on June 20, 2013, Tyco received Notices of Deficiency from the IRS asserting that several of Tyco's former U.S. subsidiaries owe additional taxes of $883.3 million plus penalties of $154 million based on audits of the 1997 through 2000 tax years of Tyco and its subsidiaries as they existed at that time. In addition, Tyco received Final Partnership Administrative Adjustments for certain U.S. partnerships owned by former U.S. subsidiaries with respect to which an additional tax deficiency of approximately $30 million is expected to be asserted. These amounts exclude interest and do not reflect the impact on subsequent periods if the IRS position described below is ultimately proved correct. | ||||||||||||||||
The IRS asserted in the Notices of Deficiency that substantially all of Tyco's intercompany debt originated during the 1997 - 2000 period should not be treated as debt for U.S. federal income tax purposes, and has disallowed interest and related deductions recognized on U.S. income tax returns totaling approximately $2.9 billion. Tyco strongly disagrees with the IRS position and had filed petitions with the U.S. Tax Court contesting the IRS proposed adjustments. Tyco believes that it has meritorious defenses for its tax filings, that the IRS positions with regard to these matters are inconsistent with the applicable tax laws and existing Treasury regulations, and that the previously reported taxes for the years in question are appropriate. | ||||||||||||||||
No payments with respect to these matters would be required until the dispute is definitively resolved, which, based on the experience of other companies, could take several years. Tyco believes that its income tax reserves and the liabilities recorded in the Consolidated Balance Sheet for the tax sharing agreements continue to be appropriate. However, the ultimate resolution of these matters, and the impact of that resolution, are uncertain and could have a material impact on Tyco's financial condition, results of operations and cash flows. In particular, if the IRS is successful in asserting its claim, it would have an adverse impact on interest deductions related to the same intercompany debt in subsequent time periods, totaling approximately $6.6 billion, which is also expected to be disallowed by the IRS. | ||||||||||||||||
As noted above, Tyco has assessed its obligations under the 2007 Tax Sharing Agreement to determine that its recorded liability is sufficient to cover the indemnifications made by it under such agreement. In the absence of observable transactions for identical or similar guarantees, Tyco determined the fair value of these guarantees and indemnifications utilizing expected present value measurement techniques. Significant assumptions utilized to determine fair value included determining a range of potential outcomes, assigning a probability weighting to each potential outcome and estimating the anticipated timing of resolution. The probability weighted outcomes were discounted using Tyco's incremental borrowing rate. However, the ultimate resolution of these matters is uncertain and could result in a material adverse impact to the Company's financial position, results of operations, cash flows, or the effective tax rate in future reporting periods. | ||||||||||||||||
In connection with the aforementioned audits, the IRS has assessed a civil fraud penalty of $21 million during the first quarter of fiscal 2013 against a prior subsidiary that was distributed to TE Connectivity in connection with the 2007 Separation. The penalties arise from actions of former executives taken in connection with intercompany transfers of stock of Simplex Technologies in 1998 and 1999. This is a pre-2007 Separation tax liability that is covered by the provisions of the 2007 Tax Sharing Agreement. | ||||||||||||||||
In addition to dealing with tax liabilities for periods prior to the respective Separations, the 2012 and 2007 Tax Sharing Agreements contain sharing provisions to address the contingencies that the 2012 or 2007 Separations, or internal transactions related thereto, may be deemed taxable by U.S. or non U.S. taxing authorities. In the event the 2012 Separation is determined to be taxable and such determination was the result of actions taken after the 2012 Separations by Tyco, ADT or Pentair, the party responsible for such failure would be responsible for all taxes imposed on each company as a result thereof. If such determination is not the result of actions taken by Tyco, ADT or Pentair after the 2012 Separation, then Tyco, ADT and Pentair would be responsible for any taxes imposed on any of the companies as a result of such determination in the same manner and in the same proportions as described above. Similar provisions exist in the 2007 Tax Sharing Agreement. If either of the 2007 or 2012 Separation, or internal transactions taken in anticipation thereof, were deemed taxable, the associated liability could be significant. Tyco is responsible for all of its own taxes that are not shared pursuant to the 2012 and 2007 Tax Sharing Agreements' sharing formulas. In addition, Pentair and ADT, and Covidien and TE Connectivity are responsible for their tax liabilities that are not subject to the 2012 or 2007 Tax Sharing Agreements' sharing formula, respectively. | ||||||||||||||||
Each of the 2012 and 2007 Tax Sharing Agreements provides that, if any party to such agreement were to default in its obligation to another party to pay its share of the distribution taxes that arise as a result of no party's fault, each non-defaulting party to the agreement would be required to pay, equally with any other non-defaulting party to the agreement, the amounts in default. In addition, if another party to the 2012 or 2007 Tax Sharing Agreements that is responsible for all or a portion of an income tax liability were to default in its payment of such liability to a taxing authority, Tyco could be liable under applicable tax law for such liabilities and required to make additional tax payments. Accordingly, under certain circumstances, Tyco may be obligated to pay amounts in excess of its agreed-upon share of its tax liabilities under either of the 2012 or 2007 Tax Sharing Agreements. | ||||||||||||||||
The receivables and liabilities related to the 2012 and 2007 Tax Sharing Agreements as of September 27, 2013 and September 28, 2012 are as follows ($ in millions): | ||||||||||||||||
2012 Tax Sharing Agreement | 2007 Tax Sharing Agreement | |||||||||||||||
As of | As of | As of | As of | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net receivable: | ||||||||||||||||
Prepaid expenses and other current assets | $ | — | $ | — | $ | — | $ | 9 | ||||||||
Other assets | — | — | 67 | 66 | ||||||||||||
— | — | 67 | 75 | |||||||||||||
Tax sharing agreement related liabilities | ||||||||||||||||
Accrued and other current liabilities | (33 | ) | — | (130 | ) | (14 | ) | |||||||||
Other liabilities | (36 | ) | (71 | ) | (254 | ) | (394 | ) | ||||||||
(69 | ) | (71 | ) | (384 | ) | (408 | ) | |||||||||
Net liability | $ | (69 | ) | $ | (71 | ) | $ | (317 | ) | $ | (333 | ) | ||||
The Company recorded income (loss) in conjunction with the 2012 and 2007 Tax Sharing Agreements for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 as follows ($ in millions): | ||||||||||||||||
For the Years Ended | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
(Expense)/income | ||||||||||||||||
2007 Tax Sharing Agreement | $ | — | $ | (4 | ) | $ | (7 | ) | ||||||||
2012 Tax Sharing Agreement | (32 | ) | — | NA | ||||||||||||
As a result of the 2012 separation, equity awards of certain employees were converted into the three companies. Pursuant to the terms of the 2012 Separation and Distribution Agreement, each of the three companies is responsible for issuing its own shares upon employee exercise of a stock option award or vesting of a restricted unit award. However, the 2012 Tax Sharing Agreement provides that any allowable compensation tax deduction for such awards is to be claimed by the employee's current employer. The 2012 Tax Sharing Agreement requires the employer claiming a tax deduction for shares issued by the other companies to pay a percentage of the allowable tax deduction to the company issuing the equity. | ||||||||||||||||
During 2013, Tyco incurred a charge of $38 million, to make payments to ADT and Pentair based on estimated allowable deductions for ADT and Pentair shares issued to Company employees, offset by income of $6 million to be received from ADT and Pentair for Company shares issued to their employees, resulting in a net impact of approximately $32 million which was recorded in Other expense, net within Tyco's Consolidated Statement of Operations. | ||||||||||||||||
Other Income Tax Matters | ||||||||||||||||
Except for earnings that are currently distributed, no additional material provision has been made for U.S. or non-U.S. income taxes on the undistributed earnings of subsidiaries or for deferred tax liabilities for temporary differences related to investments in subsidiaries, since the earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or Tyco has concluded that no additional tax liability will arise as a result of the distribution of such earnings. A liability could arise if amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investments in subsidiaries. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||||||||||||
The reconciliations between basic and diluted earnings per share attributable to Tyco common shareholders for 2013, 2012 and 2011 are as follows (in millions, except per share data): | |||||||||||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | |||||||||||||||||||||||||||||||
Income | Shares | Per | (Loss) | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||
Share | Share | Share | |||||||||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||||||
Basic earnings per share attributable to Tyco common shareholders: | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 527 | 465 | $ | 1.14 | $ | (332 | ) | 463 | $ | (0.72 | ) | $ | 617 | 474 | $ | 1.3 | ||||||||||||||||
Share options and restricted share awards | 7 | 5 | |||||||||||||||||||||||||||||||
Diluted earnings per share attributable to Tyco common shareholders: | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments | $ | 527 | 472 | $ | 1.12 | $ | (332 | ) | 463 | $ | (0.72 | ) | $ | 617 | 479 | $ | 1.29 | ||||||||||||||||
The computation of diluted earnings per share for 2013, 2012 and 2011excludes the effect of the potential exercise of share options to purchase approximately 4 million, 12 million and 10 million shares, respectively, and excludes restricted share awards of 1 million, 2 million and nil shares, respectively, because the effect would be anti-dilutive. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
There were no goodwill impairments as a result of performing the Company's 2013, 2012 and 2011 annual impairment tests. The changes in the carrying amount of goodwill by segment for 2013 and 2012 are as follows ($ in millions): | ||||||||||||||||
NA Installation | ROW | Global | Total | |||||||||||||
& Services | Installation | Products | ||||||||||||||
& Services | ||||||||||||||||
As of September 30, 2011 | ||||||||||||||||
Gross Goodwill | $ | 2,119 | $ | 2,241 | $ | 1,629 | $ | 5,989 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | 1,993 | 1,173 | 1,062 | 4,228 | ||||||||||||
Acquisitions/ Purchase Accounting Adjustments | — | 38 | 66 | 104 | ||||||||||||
Currency Translation | 8 | 26 | 1 | 35 | ||||||||||||
As of September 28, 2012 | ||||||||||||||||
Gross Goodwill | $ | 2,127 | $ | 2,305 | $ | 1,696 | $ | 6,128 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | 2,001 | 1,237 | 1,129 | 4,367 | ||||||||||||
Acquisitions/ Purchase Accounting Adjustments | 24 | 77 | 90 | 191 | ||||||||||||
Transfers | (39 | ) | — | 39 | — | |||||||||||
Currency Translation | (8 | ) | (30 | ) | (1 | ) | (39 | ) | ||||||||
As of September 27, 2013 | ||||||||||||||||
Gross Goodwill | $ | 2,104 | $ | 2,352 | $ | 1,824 | $ | 6,280 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | $ | 1,978 | $ | 1,284 | $ | 1,257 | $ | 4,519 | ||||||||
Intangible Assets | ||||||||||||||||
There were no indefinite-lived intangible asset impairments as a result of performing the Company's 2013, 2012 and 2011 annual impairment tests. | ||||||||||||||||
The following table sets forth the gross carrying amount and accumulated amortization of the Company's intangible assets as of September 27, 2013 and September 28, 2012 ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
Amortizable: | ||||||||||||||||
Contracts and related customer relationships | $ | 1,531 | $ | 1,199 | $ | 1,604 | $ | 1,245 | ||||||||
Intellectual property | 623 | 477 | 552 | 468 | ||||||||||||
Other | 40 | 13 | 36 | 9 | ||||||||||||
Total | $ | 2,194 | $ | 1,689 | $ | 2,192 | $ | 1,722 | ||||||||
Non-Amortizable: | ||||||||||||||||
Intellectual property | $ | 223 | $ | 224 | ||||||||||||
Franchise rights | 76 | 77 | ||||||||||||||
Total | $ | 299 | $ | 301 | ||||||||||||
Intangible asset amortization expense for 2013, 2012 and 2011 was $99 million, $102 million and $98 million, respectively. | ||||||||||||||||
The estimated aggregate amortization expense on intangible assets is expected to be approximately $92 million for 2014, $74 million for 2015, $67 million for 2016, $58 million for 2017 and $214 million for 2018 and thereafter. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 27, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company has amounts due related to loans and advances issued to employees in prior years under the Company's Key Employee Loan Program, relocation programs and other advances made to executives. Loans were provided to employees under the Company's Key Employee Loan Program, which is now discontinued, except for outstanding loans for the payment of taxes upon the vesting of shares granted under our Restricted Share Ownership Plans. During the fourth quarter of 2002, the Board of Directors and new senior management at that time adopted a policy under which no new loans are allowed to be granted to any officers of the Company and existing loans are not allowed to be extended or modified. There have been no loans made to any of the Company's current executives. The outstanding loans are not collateralized and bear interest, payable annually, at a rate based on the six-month LIBOR, calculated annually as the average of the rates in effect on the first day of each of the preceding 12 months. Loans are generally repayable in 10 years; however, earlier payments are required under certain circumstances, such as when an employee is terminated. In addition, the Company made mortgage loans to certain employees under employee relocation programs. These loans are generally payable in 15 years and are collateralized by the underlying property. The maximum amount outstanding under these programs was $21 million as of both September 27, 2013 and September 28, 2012. Loans receivable under these programs, as well as other unsecured advances outstanding, were $21 million as of both September 27, 2013 and September 28, 2012. The total outstanding loans receivable includes loans to L. Dennis Kozlowski, the Company's former chairman and chief executive officer (until June 2002). The amount outstanding under these loans, plus accrued interest, was $28 million as of both September 27, 2013 and September 28, 2012 and the rate of interest charged on such loans was 0.4% and 0.7% in 2013 and 2012, respectively. Interest income on these interest bearing loans was not material for all periods presented. Certain of the above loans totaling $1 million as of both September 27, 2013 and September 28, 2012 are non-interest bearing. | |
The Company filed civil complaints against Mr. Kozlowski, its former chief financial officer, Mark Swartz, and Frank E. Walsh, Jr., a former director for breach of fiduciary duty and other wrongful conduct. See Note 13. | |
During 2013, 2012 and 2011, the Company engaged in commercial transactions in the normal course of business with companies where the Company's Directors were employed and served as officers. Purchases from these companies during each year aggregated less than 1% of consolidated net revenue. |
Debt
Debt | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
Debt as of September 27, 2013 and September 28, 2012 is as follows ($ in millions): | ||||||||
As of | As of | |||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
3.375% public notes due 2015 | 258 | 257 | ||||||
3.75% public notes due 2018 | 67 | 67 | ||||||
8.5% public notes due 2019 | 364 | 364 | ||||||
7.0% public notes due 2019 | 246 | 247 | ||||||
6.875% public notes due 2021 | 466 | 466 | ||||||
4.625% public notes due 2023 | 42 | 42 | ||||||
Other(1)(2) | 20 | 48 | ||||||
Total debt | 1,463 | 1,491 | ||||||
Less: current portion | 20 | 10 | ||||||
Long-term debt | $ | 1,443 | $ | 1,481 | ||||
_______________________________________________________________________________ | ||||||||
(1) | $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of September 27, 2013. | |||||||
(2) | $10 million of the amount shown as other, comprises the current portion of the Company's total debt as of September 28, 2012. | |||||||
Fair Value | ||||||||
The carrying amount of Tyco's debt subject to the fair value disclosure requirements as of September 27, 2013 and September 28, 2012 was $1,443 million for both periods. The Company utilizes various valuation methodologies to determine the fair value of its debt, which is primarily dependent on the type of market in which the Company's debt is traded. When available, the Company uses quoted market prices to determine the fair value of its debt that is traded in active markets. As of September 27, 2013 and September 28, 2012, the fair value of the Company's debt which was actively traded was $1,676 million and $1,786 million, respectively. As of September 27, 2013 and September 28, 2012, the Company's debt that was subject to the fair value disclosure requirements was all actively traded and is classified as Level 1 in the fair value hierarchy. See Note 1 for further details on the fair value hierarchy. | ||||||||
Fiscal 2013 Debt Issuance/Repayment | ||||||||
There were no material debt issuances or repayments during 2013. | ||||||||
Fiscal 2012 Debt Issuance/Repayment | ||||||||
During the fourth quarter of 2012, in connection with the Separation, Tyco and its finance subsidiary, Tyco International Finance S.A. ("TIFSA"), redeemed various debt securities maturing from 2013 to 2023 issued by TIFSA and/or Tyco, in an aggregate principal amount of $2.6 billion as set forth below ($ in millions): | ||||||||
6.0% public notes due 2013 | $ | 656 | ||||||
4.125% public notes due 2014 | 500 | |||||||
3.375% public notes due 2015 | 242 | |||||||
3.750% public notes due 2018 | 183 | |||||||
8.5% public notes due 2019 | 386 | |||||||
7.0% public notes due 2019 | 180 | |||||||
6.875% public notes due 2021 | 245 | |||||||
4.625% public notes due 2023 | 208 | |||||||
Total amounts redeemed | $ | 2,600 | ||||||
In conjunction with the debt redemptions, the Company terminated associated interest rate swap contracts related to the 6.0% Notes due 2013 and 4.125% Notes due 2014. As a result of the debt redemptions, the Company recorded a loss on extinguishment of debt of $453 million which was recorded within Other expense, net in the Company's Consolidated Statement of Operations for the year ended September 28, 2012. The charge was comprised of the premium paid in the tender offers, write-off of the unamortized debt issuance costs and discount related to the extinguished notes, and a net gain recognized upon termination of the associated interest rate swap contracts. | ||||||||
Fiscal 2011 Debt Issuance/Repayment | ||||||||
On January 12, 2011, TIFSA issued $250 million aggregate principal amount of 3.75% Notes due on January 15, 2018 (the "2018 Notes") and $250 million aggregate principal amount of 4.625% Notes due on January 15, 2023 (the "2023 Notes"), which were fully and unconditionally guaranteed by the Company. TIFSA received total net proceeds of approximately $494 million after deducting debt issuance costs of approximately $1 million for the 2018 Notes and $2 million for the 2023 Notes, as well as debt discount of approximately $1 million for the 2018 Notes and $2 million for the 2023 Notes. The net proceeds of the aforementioned debt issuances, along with other available funds, were used to fund the repayment upon maturity of all of the Company's outstanding 6.75% Notes due February 2011 with a principal amount of $516 million. The 2018 Notes and the 2023 Notes are unsecured and rank equally with TIFSA's other unsecured and unsubordinated debt. | ||||||||
Prior to January 15, 2018 in the case of the 2018 Notes and prior to October 15, 2022 in the case of the 2023 Notes, TIFSA may redeem any of the notes at a redemption price equal to the greater of the principal amount of the notes of such series or a make-whole amount, plus in each case, accrued and unpaid interest. On or after October 15, 2022, TIFSA may redeem the 2023 Notes at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. The holders of both the 2018 Notes and the 2023 Notes have the right to require TIFSA to repurchase all or a portion of the notes at a purchase price equal to 101% of the principal amount of the notes repurchased, plus accrued and unpaid interest upon the occurrence of a change of control triggering event, which requires both a change of control and rating event, each as defined in the indenture governing the notes. The debt issuance costs will be amortized from the date of issuance to the maturity date of each series of the notes. Interest is payable semi-annually on January 15th and July 15th for both the 2018 Notes and 2023 Notes. | ||||||||
Commercial Paper | ||||||||
From time to time, TIFSA may issue commercial paper for general corporate purposes. The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $1 billion as of September 27, 2013. As of September 27, 2013 and September 28, 2012, TIFSA had no commercial paper outstanding. | ||||||||
Credit Facilities | ||||||||
On June 22, 2012, TIFSA, as the Borrower, and the Company as the Guarantor, entered into a Five-Year Senior Unsecured Credit Agreement, expiring June 22, 2017, and providing for revolving credit commitments in the aggregate amount of $1.0 billion (the "2012 Credit Agreement"). In connection with entering into the 2012 Credit Agreement, TIFSA and the Company terminated the existing Four-Year Senior Unsecured Credit Agreement, dated March 24, 2011, which provided for revolving credit commitments in the aggregate amount of $750 million. Additionally, the Company's Five-Year Senior Unsecured Credit Agreement, dated April 25, 2007 and as amended, terminated on September 28, 2012. | ||||||||
As a result of entering into the 2012 Credit Agreement and the terminations described above, the Company's committed revolving credit facility totaled $1.0 billion as of September 27, 2013. This revolving credit facility may be used for working capital, capital expenditures and general corporate purposes. As of September 27, 2013 and September 28, 2012, there were no amounts drawn under the Company's revolving credit facilities. Interest under the revolving credit facilities is variable and is calculated by reference to LIBOR or an alternate base rate. | ||||||||
Other Debt Information | ||||||||
The aggregate amounts of principal public debt maturing during the next five years and thereafter are as follows: nil in 2014, nil in 2015, $258 million in 2016, nil in 2017, $67 million in 2018 and $1,111 million thereafter. | ||||||||
As of September 27, 2013, the weighted-average interest rate on total debt was 6.5%. As of September 28, 2012, the weighted-average interest rate on total debt, excluding the impact of interest rate swaps, was 6.5%. There was no public short-term debt outstanding as of September 27, 2013 and September 28, 2012. As of September 28, 2012, the Company had terminated all interest rate swaps. The impact of the Company's interest rate swap agreements on reported interest expense prior to termination was a net decrease of $18 million and $22 million for the years ended September 28, 2012 and September 30, 2011, respectively. |
Guarantees
Guarantees | 12 Months Ended | |||
Sep. 27, 2013 | ||||
Guarantees [Abstract] | ' | |||
Guarantees | ' | |||
Guarantees | ||||
Certain of the Company's business segments have guaranteed the performance of third-parties and provided financial guarantees for uncompleted work and financial commitments. The terms of these guarantees vary with end dates ranging from the current fiscal year through the completion of such transactions. The guarantees would typically be triggered in the event of nonperformance and performance under the guarantees, if required, would not have a material effect on the Company's financial position, results of operations or cash flows. | ||||
There are certain guarantees or indemnifications extended among Tyco, Covidien, TE Connectivity, ADT and Pentair in accordance with the terms of the 2007 and 2012 Separation and Distribution Agreements and Tax Sharing Agreements. These guarantees primarily relate to certain contingent tax liabilities included in the Tax Sharing Agreements. See Note 6. | ||||
In addition, Tyco historically provided support in the form of financial and/or performance guarantees to various Covidien, TE Connectivity, ADT and Tyco Flow Control operating entities. In connection with both the 2012 and 2007 Separations, the Company worked with the guarantee counterparties to cancel or assign these guarantees to Covidien, TE Connectivity, ADT or Pentair, as appropriate. To the extent these guarantees were not assigned prior to the Separation dates, Tyco assumed primary liability on any remaining such support. The Company's obligations related to the 2012 Separation were $3 million, which were included in Other liabilities on the Company's Consolidated Balance Sheets as of both September 27, 2013 and September 28, 2012, with an offset to Tyco shareholders' equity on the 2012 Separation date. The Company's obligations related to the 2007 Separation were $3 million and $3 million, which were included in Other liabilities on the Company's Consolidated Balance Sheets as of September 27, 2013 and September 28, 2012, respectively, with an offset to Tyco shareholders' equity on the 2007 Separation date. | ||||
In disposing of assets or businesses, the Company often provides representations, warranties and/or indemnities to cover various risks including, for example, unknown damage to the assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities and unidentified tax liabilities and legal fees related to periods prior to disposition. The Company has no reason to believe that these uncertainties would have a material adverse effect on the Company's financial position, results of operations or cash flows. | ||||
In the normal course of business, the Company is liable for contract completion and product performance. In the opinion of management, such obligations will not significantly affect the Company's financial position, results of operations or cash flows. | ||||
As of September 27, 2013, the Company had total outstanding letters of credit and bank guarantees of approximately $424 million. | ||||
The Company records estimated product warranty costs at the time of sale. See Note 1. | ||||
The changes in the carrying amount of the Company's warranty accrual from September 28, 2012 to September 27, 2013 were as follows ($ in millions): | ||||
Balance as of September 28, 2012 | $ | 30 | ||
Warranties issued | 16 | |||
Changes in estimates | (4 | ) | ||
Settlements | (11 | ) | ||
Balance as of September 27, 2013 | $ | 31 | ||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | ' | |||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||
The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, debt and derivative financial instruments. The fair value of cash and cash equivalents, accounts receivable and accounts payable approximated book value as of September 27, 2013 and September 28, 2012. The fair value of derivative financial instruments was not material to any of the periods presented. See below for the fair value of investments and Note 10 for the fair value of debt. | ||||||||||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||||||
In the normal course of business, Tyco is exposed to market risk arising from changes in currency exchange rates, interest rates and commodity prices. The Company may use derivative financial instruments to manage exposures to foreign currency, commodity and interest rate risks. The Company's objective for utilizing derivative financial instruments is to manage these risks using the most effective methods to eliminate or reduce the impacts of these exposures. The Company does not use derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||||||||||||
For derivative instruments that are designated and qualified as hedging instruments for accounting purposes, the Company documented and linked the relationships between the hedging instruments and hedged items. The Company also assessed and documented at the hedge's inception whether the derivatives used in hedging transactions were effective in offsetting changes in fair values associated with the hedged items. These hedges did not result in any hedge ineffectiveness for the years ended September 27, 2013, September 28, 2012 and September 30, 2011. | ||||||||||||||||||||||||||||
All derivative financial instruments are reported on the Consolidated Balance Sheet at fair value with changes in the fair value of the derivative financial instruments recognized currently in the Company's Statement of Operations, with the exception of net investment hedges for which changes in fair value are reported in the cumulative translation component of accumulated other comprehensive loss to the extent the hedges are effective. The ineffective portion of the hedge, if any, is recognized in the Consolidated Statement of Operations. The derivative financial instruments and impact of such changes in the fair value of the derivative financial instruments was not material to the Consolidated Balance Sheets as of September 27, 2013 and September 28, 2012 or Consolidated Statements of Operations and Statement of Cash Flows for the years ended September 27, 2013, September 28, 2012 and September 30, 2011. | ||||||||||||||||||||||||||||
Foreign Currency Exposures | ||||||||||||||||||||||||||||
The Company manages foreign currency exchange rate risk through the use of derivative financial instruments comprised principally of forward contracts on foreign currency which are not designated as hedging instruments for accounting purposes. The objective of the derivative instruments is to minimize the income statement impact and potential variability in cash flows associated with intercompany loans, accounts receivable, accounts payable and forecasted transactions that are denominated in certain foreign currencies. As of September 27, 2013 and September 28, 2012, the total gross notional amount of the Company's foreign exchange contracts was $278 million and $225 million, respectively. | ||||||||||||||||||||||||||||
Effective March 17, 2009, Tyco changed its jurisdiction of incorporation from Bermuda to Switzerland. Tyco made the final dividend payment in the form of a reduction of capital in February 2011, denominated in Swiss francs (See Note 15). The Company paid dividends in U.S. dollars, based on the exchange rate in effect shortly before the payment date. Fluctuations in the value of the U.S. dollar compared to the Swiss franc between the date the dividend was approved and paid increased or decreased the U.S. dollar amount required to be paid. The Company managed the potential variability in cash flows associated with the dividend payments by entering into derivative financial instruments used as economic hedges of the underlying risk. Beginning in May 2011, the Company makes dividend payments out of contributed surplus in U.S. dollars which has eliminated the need to use currency hedges for dividend payments. | ||||||||||||||||||||||||||||
Counterparty Credit Risk | ||||||||||||||||||||||||||||
The use of derivative financial instruments exposes the Company to counterparty credit risk. If the counterparty fails to perform, the Company is exposed to losses if the derivative is in an asset position. When the fair value of a derivative instrument is an asset, the counterparty has to pay the Company to settle the contract. This exposes the Company to credit risk. However, when the fair value of a derivative instrument is a liability, the Company has to pay the counterparty to settle the contract and therefore there is no counterparty credit risk. Tyco has established policies and procedures to limit the potential for counterparty credit risk, including establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. As a matter of practice, the Company deals with major banks worldwide having strong investment grade long-term credit ratings from Standard & Poor's and Moody's. To further reduce the risk of loss, the Company generally enters into International Swaps and Derivatives Association master agreements with substantially all of its counterparties. Master netting agreements provide protection in bankruptcy in certain circumstances and, in some cases, enable receivables and payables with the same counterparty to be offset on the Consolidated Balance Sheets, providing for a more meaningful balance sheet presentation of credit exposure. The Company's derivative contracts do not contain any credit risk related contingent features and do not require collateral or other security to be furnished by the Company or the counterparties. | ||||||||||||||||||||||||||||
The Company's exposure to credit risk associated with its derivative instruments is measured on an individual counterparty basis, as well as by groups of counterparties that share similar attributes. As of September 27, 2013, the Company was exposed to industry concentration with financial institutions as well as risk of loss if an individual counterparty or issuer failed to perform its obligations under contractual terms. The maximum amount of loss that the Company would incur as of September 27, 2013 without giving consideration to the effects of legally enforceable master netting agreements was approximately $4 million. | ||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
Investments primarily include cash equivalents, U.S. government obligations, U.S. government agency securities and corporate debt securities. | ||||||||||||||||||||||||||||
When available, the Company uses quoted market prices to determine the fair value of investment securities. Such investments are included in Level 1. When quoted market prices are not readily available, pricing determinations are made based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information and benchmark securities. These investments are included in Level 2 and consist primarily of U.S. government agency securities and corporate debt securities. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the valuation. | ||||||||||||||||||||||||||||
The following tables present the cost and fair market value of the Company's available-for-sale investments which are primarily held by the Company's captive insurance companies by type of security and classification in the Company's Consolidated Balance Sheets as of September 27, 2013 and September 28, 2012. In addition, the following tables present the Company's assets and liabilities measured at fair value on a recurring basis as of September 27, 2013 and September 28, 2012, by level within the fair value hierarchy. | ||||||||||||||||||||||||||||
As of September 27, 2013 ($ in millions): | ||||||||||||||||||||||||||||
Fair Value | Consolidated | |||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Classification | ||||||||||||||||||||||||||||
Type of Security | Cost | Gross | Level 1 | Level 2 | Total | Prepaids | Other | |||||||||||||||||||||
Basis | Unrealized | and Other | Assets | |||||||||||||||||||||||||
Gain | Current | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Corporate debt securities | $ | 34 | $ | — | $ | — | $ | 34 | $ | 34 | $ | 11 | $ | 23 | ||||||||||||||
U.S. Government debt securities | 209 | — | 171 | 38 | 209 | 89 | 120 | |||||||||||||||||||||
$ | 243 | $ | — | $ | 171 | $ | 72 | $ | 243 | $ | 100 | $ | 143 | |||||||||||||||
As of September 28, 2012 ($ in millions): | ||||||||||||||||||||||||||||
Fair Value | Consolidated | |||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Classification | ||||||||||||||||||||||||||||
Type of Security | Cost | Gross | Level 1 | Level 2 | Total | Prepaids | Other | |||||||||||||||||||||
Basis | Unrealized | and Other | Assets | |||||||||||||||||||||||||
Gain | Current | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Corporate debt securities | $ | 33 | $ | 1 | $ | — | $ | 34 | $ | 34 | $ | 7 | $ | 27 | ||||||||||||||
U.S. Government debt securities | 167 | 2 | 86 | 83 | 169 | 63 | 106 | |||||||||||||||||||||
$ | 200 | $ | 3 | $ | 86 | $ | 117 | $ | 203 | $ | 70 | $ | 133 | |||||||||||||||
During 2013 and 2012, the Company did not have any significant transfers within the fair value hierarchy. | ||||||||||||||||||||||||||||
Investments with continuous unrealized losses for less than 12 months and 12 months or greater as of September 27, 2013 and September 28, 2012 were not material. The Company did not record any other-than-temporary impairments in the years ended 2013, 2012 and 2011. | ||||||||||||||||||||||||||||
The maturities of the Company's investments in debt securities as of September 27, 2013 are as follows ($ in millions): | ||||||||||||||||||||||||||||
Cost | Fair | |||||||||||||||||||||||||||
Basis | Value | |||||||||||||||||||||||||||
Due in one year or less | $ | 100 | $ | 100 | ||||||||||||||||||||||||
Due after one year through five years | 143 | 143 | ||||||||||||||||||||||||||
Total | $ | 243 | $ | 243 | ||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||||||
The fair values for the Company's derivative financial instruments are derived from market approach pricing models that take into account the contractual terms and features of each instrument, forward foreign currency rates for the Company's foreign exchange contracts and yield curves for the Company's interest rate swaps existing at the end of the period. Valuations are adjusted to reflect creditworthiness of the counterparty for assets and the creditworthiness of the Company for liabilities. Such adjustments are based on observable market evidence and are categorized as Level 2 exposures. Derivative financial instruments fair value details are not presented as the derivative financial instruments were not material to any of the periods presented. | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
The Company had $2.0 billion of intercompany loans designated as permanent in nature for both September 27, 2013 and September 28, 2012. For the years ended September 27, 2013 and September 28, 2012, and September 30, 2011 the Company recorded a cumulative translation gain of $3 million and $48 million and a cumulative translation loss of $2 million, respectively, through accumulated other comprehensive loss related to these loans. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Sep. 27, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
13. Commitments and Contingencies | ||||
The Company has facility, vehicle and equipment leases that expire at various dates beyond fiscal 2014. Rental expense under these leases was $293 million, $299 million and $270 million for 2013, 2012 and 2011, respectively. Following is a schedule of minimum lease payments for non-cancelable operating leases as of September 27, 2013 ($ in millions): | ||||
Operating | ||||
Leases | ||||
2014 | $ | 158 | ||
2015 | 128 | |||
2016 | 107 | |||
2017 | 75 | |||
2018 | 29 | |||
Thereafter | 40 | |||
$ | 537 | |||
The Company also has purchase obligations related to commitments to purchase certain goods and services. As of September 27, 2013, such obligations were as follows: $334 million in 2014, $64 million in 2015, $42 million in 2016, $21 million in 2017 and $20 million in 2019 and thereafter. | ||||
In the normal course of business, the Company is liable for contract completion and product performance. In the opinion of management, such obligations will not significantly affect the Company's financial position, results of operations or cash flows. | ||||
Legacy Matters Related to Former Management | ||||
The Company is a party to several lawsuits involving disputes with former management, including its former chief executive officer, Mr. L. Dennis Kozlowski, and its former chief financial officer, Mr. Mark Swartz. The Company filed civil complaints against Mr. Kozlowski and Mr. Swartz for breach of fiduciary duty and other wrongful conduct relating to alleged abuses of the Company's Key Employee Loan Program and relocation program, unauthorized bonuses, unauthorized payments, self-dealing transactions and other improper conduct. In connection with Tyco's affirmative actions against Mr. Kozlowski and Mr. Swartz, Mr. Kozlowski, through counterclaims, and Mr. Swartz, through a separate lawsuit, sought an aggregate of approximately $140 million allegedly due in connection with their compensation and retention arrangements and under the Employee Retirement Income Security Act ("ERISA"). A former director, Mr. Frank Walsh Jr. sought indemnification for legal and other expenses incurred by him in connection with the Company's affirmative action against him for breaches of fiduciary duties. | ||||
With respect to Mr. Kozlowski, on December 1, 2010, the U.S. District Court for the Southern District of New York ruled in favor of several of the Company's affirmative claims against him before trial, while dismissing all of Mr. Kozlowski's counterclaims for pay and benefits after 1995. Prior to the commencement of trial, the parties reached an agreement in principle to resolve the matter, with Mr. Kozlowski agreeing to release the Company from any claims to monetary amounts related to compensation, retention or other arrangements alleged to have existed between him and the Company. Although the parties have reached an agreement in principle, until the settlement agreement is signed, the Company will continue to maintain the amounts recorded in its Consolidated Balance Sheet, which reflect a net liability of approximately $91 million, for the amounts allegedly due under his compensation and retention arrangements and under ERISA. | ||||
With respect to Mr. Swartz, on March 3, 2011, the U.S. District Court for the Southern District of New York granted the Company's motion for summary judgment as to liability for its affirmative actions and further ruled that issues related to damages would need to be resolved at trial. During the second quarter of fiscal 2012, the Company reversed a $50 million liability related to Mr. Swartz's pay and benefits due to the expiration of the statute of limitations, which was recorded in Selling, general and administrative expenses in the Consolidated Statement of Operations. On May 15, 2012, Mr. Swartz filed a lawsuit against Tyco in New York state court claiming entitlement to monies under ERISA. The Company removed the case to the U.S. District Court for the Southern District of New York and filed a motion to dismiss Mr. Swartz's claims for multiple reasons, including that the statute of limitations had expired, at the latest, during the second quarter of fiscal 2012. A trial to determine the Company's damages from Mr. Swartz's breaches of fiduciary duty concluded on October 17, 2012. At the conclusion of the trial, the Court ruled that the Company was entitled to recover all monies earned by Mr. Swartz in connection with his employment by Tyco between September 1, 1995 and June 1, 2002. The Company filed a motion requesting the entry of monetary sum certain judgment in conformity with the Court's ruling regarding the time period of disgorgement. The motion also requested interest related to the monies Mr. Swartz was found to have unlawfully taken from the Company. In March 2013, the Court entered an order awarding the Company's request for interest. In connection with Mr. Swartz's affirmative claims against the Company, the Court dismissed all of Mr. Swartz's claims except one claim in which Mr. Swartz contends he is entitled to reimbursement from the Company for taxes he paid in connection with his 2002 Separation Agreement. In July 2013, the parties reached an agreement in principle to resolve the matter, with Mr. Swartz agreeing to release the Company from any claims to monetary amounts related to compensation, retention or other arrangements alleged to have existed between him and the Company. Although the parties have reached an agreement in principle, a final settlement agreement has not yet been executed. | ||||
With respect to Mr. Walsh, in June 2002, the Company filed a civil complaint against him for breach of fiduciary duty, inducing breaches of fiduciary duty and related wrongful conduct involving a $20 million payment by Tyco, $10 million of which was paid to Mr. Walsh with the balance paid to a charity of which Mr. Walsh is trustee. The payment was purportedly made for Mr. Walsh's assistance in arranging the Company's acquisition of The CIT Group, Inc. Separately, Mr. Walsh filed a New York state court claim against the Company asserting his entitlement to indemnification. In March 2013, Mr. Walsh and the Company entered into a settlement agreement resolving all claims they had against each other related to these lawsuits with no payments made by either party. | ||||
Environmental Matters | ||||
Tyco is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations and alternative cleanup methods. As of September 27, 2013, Tyco concluded that it was probable that it would incur remedial costs in the range of approximately $74 million to $162 million. As of September 27, 2013, Tyco concluded that the best estimate within this range is approximately $105 million, of which $82 million is included in Accrued and other current liabilities and Accounts payable and $23 million is included in Other liabilities in the Company's Consolidated Balance Sheet. | ||||
The majority of the liabilities described above relate to ongoing remediation efforts at a facility in the Company's Global Products segment located in Marinette, Wisconsin, which the Company acquired in 1990 in connection with its acquisition of, among other things, the Ansul product line. Prior to Tyco's acquisition, Ansul manufactured arsenic-based agricultural herbicides at the Marinette facility, which resulted in significant arsenic contamination of soil and groundwater on the Marinette site and in parts of the adjoining Menominee River. Ansul has been engaged in ongoing remediation efforts at the Marinette site since 1990, and in February 2009 entered into an Administrative Consent Order (the "Consent Order") with the U.S. Environmental Protection Agency to address the presence of arsenic at the Marinette site. Under this agreement, Ansul's principal obligations are to contain the arsenic contamination on the site, pump and treat on-site groundwater, dredge, treat and properly dispose of contaminated sediments in the adjoining river areas, and monitor contamination levels on an ongoing basis. Activities completed under the Consent Order since 2009 include the installation of a subsurface barrier wall around the facility to contain contaminated groundwater, the installation of a groundwater extraction and treatment system and the dredging and offsite disposal of treated river sediment. As a result of treatability studies concluded during the second quarter of fiscal 2013, the Company became aware that additional river sediment beyond what was originally planned would require treatment under the Consent Order for river sediment remediation. This caused the Company to increase its agreed upon remedial activities through the fall of 2013 in order to achieve compliance with the Consent Order. During the first quarter of fiscal 2014, the deadline for completing the remediation was extended through December 31, 2013, and the Company intends to complete the activities required under the Consent Order within the extended timeframe. As a result of the increased level of remediation required, the Company recorded approximately $100 million in Selling, general and administrative expenses in the Consolidated Statement of Operations during the first half of the year ended September 27, 2013. As of September 27, 2013, the Company concluded that its remaining remediation and monitoring costs related to the Marinette facility were in the range of approximately $62 million to $137 million. The Company's best estimate within that range is approximately $93 million, of which $79 million is included in Accrued and other current liabilities and Accounts payable and $14 million is included in Other liabilities in the Company's Consolidated Balance Sheet. The Company recorded $17 million and $11 million during the years ended September 28, 2012 and September 30, 2011, respectively, within Selling, general and administrative expenses in the Consolidated Statement of Operations. Since fiscal 2009, the year in which the Company received the Consent Order, the Company has incurred environmental remediation costs net of insurance recoveries of $132 million. Although the Company has recorded its best estimate of the costs that it will incur to remediate and monitor the arsenic contamination at the Marinette facility, it is possible that technological, regulatory or enforcement developments, the results of environmental studies or other factors could change the Company's expectations with respect to future charges and cash outlays, and such changes could be material to the Company's future results of operations, financial condition or cash flows. | ||||
Asbestos Matters | ||||
The Company and certain of its subsidiaries along with numerous other companies are named as defendants in personal injury lawsuits based on alleged exposure to asbestos containing materials. These cases typically involve product liability claims based primarily on allegations of manufacture, sale or distribution of industrial products that either contained asbestos or were attached to or used with asbestos containing components manufactured by third parties. Each case typically names between dozens to hundreds of corporate defendants. While the Company has observed an increase in the number of these lawsuits over the past several years, including lawsuits by plaintiffs with mesothelioma related claims, a large percentage of these suits have not presented viable legal claims and, as a result, have been dismissed by the courts. The Company's historical strategy has been to mount a vigorous defense aimed at having unsubstantiated suits dismissed, and, where appropriate, settling suits before trial. Although a large percentage of litigated suits have been dismissed, the Company cannot predict the extent to which it will be successful in resolving lawsuits in the future. In addition, the Company continues to assess its strategy for resolving asbestos claims. Due to the number of claims and limited amount of assets held by Yarway Corporation ("Yarway"), one of the Company's indirect subsidiaries, on April 22, 2013 Yarway filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. As a result of this filing, all asbestos claims against Yarway have been stayed pending confirmation of a plan of reorganization by the Bankruptcy Court. Yarway's goal is to negotiate, obtain approval of, and consummate a plan of reorganization that establishes an appropriately funded trust to provide for the fair and equitable payment of legitimate current and future Yarway asbestos claims, accompanied by appropriate injunctive relief permanently protecting Yarway and certain other protected parties from any further asbestos claims arising from products manufactured, sold, and/or distributed by Yarway. Upon confirmation of such plan of reorganization, the Company expects to deconsolidate Yarway. As a result of filing the voluntary petition during the year, the Company recorded an expected loss upon deconsolidation of $10 million related to the Yarway bankruptcy petition. Although the terms of Yarway's plan of reorganization are unknown at this time, the Company does not expect them to have a material adverse effect on the Company's results of operations, financial condition or liquidity. | ||||
As of September 27, 2013, the Company has determined that there were approximately 5,200 claims pending against it, its subsidiaries or entities for which the Company has assumed responsibility in connection with acquisitions and divestitures. This amount reflects the Company's current estimate of the number of viable claims made against such entities and includes adjustments for claims that are not actively being prosecuted, identify incorrect defendants, are duplicative of other actions or for which the Company is indemnified. | ||||
The Company's estimate of its liability and corresponding insurance recovery for pending and future claims and defense costs is based on the Company's historical claim experience, and estimates of the number and resolution cost of potential future claims that may be filed. The Company's legal strategy for resolving claims also impacts these estimates. The Company considers various trends and developments in evaluating the period of time (the look-back period) over which historical claim and settlement experience is used to estimate and value claims reasonably projected to be made in the future during a defined period of time (the look-forward period). On a quarterly basis, the Company assesses the sufficiency of its estimated liability for pending and future claims and defense costs by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, the Company considers additional quantitative and qualitative factors such as changes in legislation, the legal environment, and the Company's defense strategy. It also evaluates the recoverability of its insurance receivable on a quarterly basis. The Company evaluates all of these factors and determines whether a change in the estimate of its liability for pending and future claims and defense costs or insurance receivable is warranted. | ||||
During the third quarter of fiscal 2012, the Company determined that a look-back period of three years was more appropriate than a five year period because the Company had experienced a higher and more consistent level of claims activity and settlement costs in the past three years. The Company also revised its look-forward period from seven years to fifteen years, or 2027. The Company's decision to revise its look-forward period was primarily based on improvements in the consistency of observable data and the Company's more extensive experience with asbestos claims since the look-forward period was originally established in 2005. The revisions to the Company's look-forward and look-back periods were not applied to claims made against Yarway. Excluding these claims, the Company believed it could make a more reliable estimate of pending and future claims beyond seven years. The Company believed valuation of pending claims and future claims to be filed through 2027 produced a reasonable estimate of its asbestos liability, which it recorded in the consolidated financial statements on an undiscounted basis. The effect of the change in the Company's look-back and look-forward periods reduced income from continuing operations before income taxes and net income by approximately $90 million and $55 million, respectively. In addition, the effect of the change increased the Company's basic and diluted loss from continuing operations by $0.12 per share and decreased the Company's basic and diluted net income by $0.12 per share. | ||||
The Company's estimate of asbestos related insurance recoveries represents estimated amounts due to the Company for previously paid and settled claims and the probable reimbursements relating to its estimated liability for pending and future claims. In determining the amount of insurance recoverable, the Company considers a number of factors, including available insurance, allocation methodologies, and the solvency and creditworthiness of insurers. During the fourth quarter of fiscal 2012, the Company reached an agreement with one of its primary insurance carriers for asbestos related claims. Under the terms of the settlement, the Company agreed with the insurance carrier to accept a lump sum cash payment of $97 million in respect of certain policies, and has reached a coverage-in-place agreement with the insurance carrier with respect to certain claims. Upon receipt of the payments from the insurance carrier in the first quarter of fiscal 2013, the Company terminated a cost-sharing agreement that it had entered into with an entity that it had acquired a business from several decades ago and as a result, has access to all of the insurance policies and is responsible for all liabilities arising from asbestos claims made against the subsidiary that was acquired. | ||||
As of September 27, 2013, the Company's estimated net liability of $169 million was recorded within the Company's Consolidated Balance Sheet as a liability for pending and future claims and related defense costs of $321 million, and separately as an asset for insurance recoveries of $152 million. The Company believes that its asbestos related liabilities and insurance related assets as of September 27, 2013 are appropriate. Similarly, as of September 28, 2012, the Company's estimated net liability of $155 million was recorded within the Company's Consolidated Balance Sheet as a liability for pending and future claims and related defense costs of $401 million, and separately as an asset for insurance recoveries of $246 million. | ||||
The net liabilities reflected in the Company's Consolidated Balance Sheet represent the Company's best estimates of probable losses for the look-forward periods described above. It is reasonably possible that losses will be incurred for claims made subsequent to such look-forward periods. However, due to the inherent uncertainty and lack of reliable trend data in predicting losses beyond 2027, the Company is unable to reasonably estimate the amount of losses beyond such date. Accordingly, no accrual has been recorded for any costs which may be incurred for claims which may be made subsequent to 2027. With respect to claims made against Yarway, the Company is unable to reasonably estimate losses beyond what it has accrued because it is uncertain what the impact of Yarway's reorganization plan under Chapter 11 of the Bankruptcy Code will be on the Company. However, the Company does not expect the impact to be materially adverse to its financial condition, results of operations or liquidity. | ||||
The amounts recorded by the Company for asbestos-related liabilities and insurance-related assets are based on the Company's strategies for resolving its asbestos claims, currently available information, and a number of estimates and assumptions. Key variables and assumptions include the number and type of new claims that are filed each year, the average cost of resolution of claims, the resolution of coverage issues with insurance carriers, amount of insurance and the solvency risk with respect to the Company's insurance carriers. Many of these factors are closely linked, such that a change in one variable or assumption will impact one or more of the others, and no single variable or assumption predominately influences the determination of the Company's asbestos-related liabilities and insurance-related assets. Furthermore, predictions with respect to these variables are subject to greater uncertainty in the later portion of the projection period. Other factors that may affect the Company's liability and cash payments for asbestos-related matters include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms of state or federal tort legislation and the applicability of insurance policies among subsidiaries. As a result, actual liabilities or insurance recoveries could be significantly higher or lower than those recorded if assumptions used in the Company's calculations vary significantly from actual results. | ||||
Compliance Matters | ||||
As previously reported in the Company's periodic filings, in the fourth fiscal quarter of 2012, the Company settled with the Department of Justice ("DOJ") and the SEC charges related to alleged improper payments made by the Company's subsidiaries and agents in recent years, and agreed to pay approximately $26 million in fines, disgorgement and prejudgment interest to the DOJ and SEC, which the Company had previously reserved in the fourth quarter of fiscal 2011. The Company paid the DOJ approximately $13 million in the first quarter of fiscal 2013 and paid approximately $13 million to the SEC in the third quarter of fiscal 2013. | ||||
Covidien and TE Connectivity agreed, in connection with the 2007 Separation, to cooperate with the Company in its responses regarding these matters, and agreed that liabilities primarily related to the former Healthcare and Electronics businesses of the Company would be assigned to Covidien and TE Connectivity, respectively. As a result, Covidien and TE Connectivity have agreed to contribute approximately $5 million and immaterial amounts, respectively, toward the aforementioned $26 million. | ||||
Tax Litigation | ||||
Tyco and its subsidiaries' income tax returns are examined periodically by various tax authorities. In connection with these examinations, tax authorities, including the IRS, have raised issues and proposed tax adjustments, in particular with respect to years preceding the 2007 Separation. The issues and proposed adjustments related to such years are generally subject to the sharing provisions of a tax sharing agreement entered in 2007 with Covidien and TE Connectivity (the "2007 Tax Sharing Agreement") under which Tyco, Covidien and TE Connectivity share 27%, 42% and 31%, respectively, of shared income tax liabilities that arise from adjustments made by tax authorities to Tyco's, Covidien's and TE Connectivity's U.S. and certain non-U.S. income tax returns. The costs and expenses associated with the management of these shared tax liabilities are generally shared equally among the parties. Tyco has previously disclosed that in connection with U.S. federal tax audits, the IRS has raised a number of issues and proposed tax adjustments for periods beginning with the 1997 tax year. Although Tyco has been able to resolve substantially all of the issues and adjustments proposed by the IRS for tax years through 2007, it has not been able to resolve matters related to the treatment of certain intercompany debt transactions during the period. As a result, on June 20, 2013, Tyco received Notices of Deficiency from the IRS asserting that several of Tyco's former U.S. subsidiaries owe additional taxes of $883.3 million plus penalties of $154 million based on audits of the 1997 through 2000 tax years of Tyco and its subsidiaries as they existed at that time. In addition, Tyco received Final Partnership Administrative Adjustments for certain U.S. partnerships owned by former U.S. subsidiaries with respect to which an additional tax deficiency of approximately $30 million is expected to be asserted. These amounts exclude interest and do not reflect the impact on subsequent periods if the IRS position described below is ultimately proved correct. | ||||
The IRS asserted in the Notices of Deficiency that substantially all of Tyco's intercompany debt originated during the 1997 - 2000 period should not be treated as debt for U.S. federal income tax purposes, and has disallowed interest and related deductions recognized on U.S. income tax returns totaling approximately $2.9 billion. Tyco strongly disagrees with the IRS position and has filed petitions with the U.S. Tax Court contesting the IRS proposed adjustments. Tyco believes that it has meritorious defenses for its tax filings, that the IRS positions with regard to these matters are inconsistent with the applicable tax laws and existing Treasury regulations, and that the previously reported taxes for the years in question are appropriate. | ||||
No payments with respect to these matters would be required until the dispute is definitively resolved, which, based on the experience of other companies, could take several years. Tyco believes that its income tax reserves and the liabilities recorded in the Consolidated Balance Sheet for the tax sharing agreements continue to be appropriate. However, the ultimate resolution of these matters, and the impact of that resolution, are uncertain and could have a material impact on Tyco's financial condition, results of operations and cash flows. In particular, if the IRS is successful in asserting its claim, it would have an adverse impact on interest deductions related to the same intercompany debt in subsequent time periods, totaling approximately $6.6 billion, which is expected to be disallowed by the IRS. | ||||
See Note 6 for additional information related to income tax matters. | ||||
Other Matters | ||||
During the third quarter of fiscal 2013, an adverse judgment was entered by the United States District Court for the District of Colorado regarding an insurance claim made on behalf of Sonitrol Corporation, a former subsidiary of the Company, for insurance coverage for damages arising from a burglary and fire occurring at a warehouse monitored by Sonitrol in December 2002. The judgment reversed the District Court's prior finding that Sonitrol's actions were not the type of conduct that was uninsurable based on public policy grounds. As a result, the Company reversed an insurance receivable of $26.5 million within Selling, general and administrative expenses in the Consolidated Statement of Operations during the quarter ended June 28, 2013. The Company is appealing the District Court's ruling to the United States Circuit Court for the Tenth Circuit and will retry the underlying damages action against Sonitrol in Colorado state court. | ||||
In addition to the foregoing, the Company is subject to claims and suits, including from time to time, contractual disputes and product and general liability claims, incidental to present and former operations, acquisitions and dispositions. With respect to many of these claims, the Company either self-insures or maintains insurance through third-parties, with varying deductibles. While the ultimate outcome of these matters cannot be predicted with certainty, the Company believes that the resolution of any such proceedings, whether the underlying claims are covered by insurance or not, will not have a material adverse effect on the Company's financial condition, results of operations or cash flows beyond amounts recorded for such matters. |
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||
Retirement Plans | ||||||||||||||||||||||||
The Company sponsors a number of pension plans. The Company measures its pension plans as of its fiscal year end. The following disclosures exclude the impact of plans which are immaterial individually and in the aggregate. | ||||||||||||||||||||||||
Defined Benefit Pension Plans—The Company has a number of noncontributory and contributory defined benefit retirement plans covering certain of its U.S. and non-U.S. employees, designed in accordance with conditions and practices in the countries concerned. Net periodic pension benefit cost is based on periodic actuarial valuations which use the projected unit credit method of calculation and is charged to the Consolidated Statements of Operations on a systematic basis over the expected average remaining service lives of current participants. Contribution amounts are determined based on local regulations and the advice of professionally qualified actuaries in the countries concerned. The benefits under the defined benefit plans are based on various factors, such as years of service and compensation. | ||||||||||||||||||||||||
The net periodic benefit cost for material U.S. and non-U.S. defined benefit pension plans for 2013, 2012 and 2011 is as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 6 | $ | 5 | $ | 7 | $ | 19 | $ | 15 | $ | 16 | ||||||||||||
Interest cost | 33 | 35 | 38 | 51 | 54 | 58 | ||||||||||||||||||
Expected return on plan assets | (48 | ) | (42 | ) | (43 | ) | (67 | ) | (60 | ) | (59 | ) | ||||||||||||
Amortization of initial net (asset) | — | — | — | — | (1 | ) | — | |||||||||||||||||
Amortization of net actuarial loss | 14 | 13 | 9 | 12 | 8 | 10 | ||||||||||||||||||
Plan settlements, curtailments and special termination benefits | — | — | (2 | ) | — | — | (1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 5 | $ | 11 | $ | 9 | $ | 15 | $ | 16 | $ | 24 | ||||||||||||
Weighted-average assumptions used to determine net periodic pension cost during the year: | ||||||||||||||||||||||||
Discount rate | 3.6 | % | 4.5 | % | 5 | % | 4.2 | % | 5.2 | % | 5.1 | % | ||||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | 6.8 | % | 6.8 | % | 6.8 | % | ||||||||||||
Rate of compensation increase | NA | NA | 4 | % | 3.6 | % | 3.4 | % | 3.6 | % | ||||||||||||||
During fiscal 2011, the Company froze its last remaining active U.S. pension plan. For inactive plans the Company amortizes its actuarial gains and losses over the average remaining life expectancy of the pension plan participants. | ||||||||||||||||||||||||
The estimated net loss for material U.S. pension benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are expected to be $9 million. | ||||||||||||||||||||||||
The estimated net loss for material non-U.S. pension benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are expected to be $13 million. | ||||||||||||||||||||||||
The change in benefit obligations, plan assets and the amounts recognized on the Consolidated Balance Sheets for material U.S. and non-U.S. defined benefit plans as of September 27, 2013 and September 28, 2012 is as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||
Benefit obligations as of beginning of year | $ | 931 | $ | 819 | $ | 1,254 | $ | 1,064 | ||||||||||||||||
Service cost | 6 | 5 | 19 | 15 | ||||||||||||||||||||
Interest cost | 33 | 35 | 51 | 54 | ||||||||||||||||||||
Employee contributions | — | — | 2 | 2 | ||||||||||||||||||||
Actuarial (gain) loss | (132 | ) | 119 | 91 | 137 | |||||||||||||||||||
Transfers | — | — | 5 | 5 | ||||||||||||||||||||
Benefits and administrative expenses paid | (46 | ) | (47 | ) | (60 | ) | (53 | ) | ||||||||||||||||
Plan settlements, curtailments and special termination benefits | — | — | (2 | ) | — | |||||||||||||||||||
Currency translation | — | — | 7 | 30 | ||||||||||||||||||||
Benefit obligations as of end of year | $ | 792 | $ | 931 | $ | 1,367 | $ | 1,254 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets as of beginning of year | $ | 623 | $ | 529 | $ | 1,016 | $ | 877 | ||||||||||||||||
Actual return on plan assets | 66 | 105 | 114 | 103 | ||||||||||||||||||||
Employer contributions | 9 | 36 | 47 | 52 | ||||||||||||||||||||
Employee contributions | — | — | 2 | 2 | ||||||||||||||||||||
Acquisitions/divestitures | — | — | 1 | 6 | ||||||||||||||||||||
Benefits and administrative expenses paid | (46 | ) | (47 | ) | (60 | ) | (53 | ) | ||||||||||||||||
Plan settlements, curtailments and special termination benefits | — | — | (2 | ) | — | |||||||||||||||||||
Currency translation | — | — | 1 | 29 | ||||||||||||||||||||
Fair value of plan assets as of end of year | $ | 652 | $ | 623 | $ | 1,119 | $ | 1,016 | ||||||||||||||||
Funded status | $ | (140 | ) | $ | (308 | ) | $ | (248 | ) | $ | (238 | ) | ||||||||||||
Net amount recognized | $ | (140 | ) | $ | (308 | ) | $ | (248 | ) | $ | (238 | ) | ||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||
Current liabilities | $ | (3 | ) | $ | (3 | ) | $ | (13 | ) | $ | (13 | ) | ||||||||||||
Non-current liabilities | (137 | ) | (305 | ) | (235 | ) | (225 | ) | ||||||||||||||||
Net amount recognized | $ | (140 | ) | $ | (308 | ) | $ | (248 | ) | $ | (238 | ) | ||||||||||||
Amounts recognized in accumulated other comprehensive loss (before income taxes) consist of: | ||||||||||||||||||||||||
Transition asset | $ | — | $ | — | $ | 2 | $ | 3 | ||||||||||||||||
Net actuarial loss | (271 | ) | (435 | ) | (424 | ) | (390 | ) | ||||||||||||||||
Total loss recognized | $ | (271 | ) | $ | (435 | ) | $ | (422 | ) | $ | (387 | ) | ||||||||||||
Weighted-average assumptions used to determine pension benefit obligations at year end: | ||||||||||||||||||||||||
Discount rate | 4.9 | % | 3.6 | % | 4.2 | % | 4.2 | % | ||||||||||||||||
Rate of compensation increase | N/A | N/A | 3.6 | % | 3.6 | % | ||||||||||||||||||
The accumulated and aggregate benefit obligation and fair value of plan assets with accumulated benefit obligations in excess of plan assets as of September 27, 2013 and September 28, 2012 were as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
As of | As of | As of | As of | |||||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 792 | $ | 931 | $ | 1,345 | $ | 1,235 | ||||||||||||||||
Accumulated benefit obligation and fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | 792 | $ | 931 | $ | 1,324 | $ | 1,224 | ||||||||||||||||
Fair value of plan assets | 652 | 623 | 1,095 | 1,003 | ||||||||||||||||||||
Aggregate benefit obligation and fair value of plan assets for plans with benefit obligations in excess of plan assets: | ||||||||||||||||||||||||
Aggregate benefit obligation | $ | 792 | $ | 931 | $ | 1,356 | $ | 1,254 | ||||||||||||||||
Fair value of plan assets | 652 | 623 | 1,108 | 1,016 | ||||||||||||||||||||
In determining the expected return on plan assets, the Company considers the relative weighting of plan assets by asset class, historical performance of asset classes over long-term periods, asset class performance expectations as well as current and future economic conditions. | ||||||||||||||||||||||||
The Company's investment strategy for its pension plans is to manage the plans on a going-concern basis. Current investment policy is to maintain an adequate level of diversification while maximizing the return on assets, subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for participants as well as providing adequate liquidity to meet immediate and future benefit payment requirements. In addition, local regulations and local financial considerations are factors in determining the appropriate investment strategy in each country. For U.S. pension plans, this policy targets a 60% allocation to equity securities and a 40% allocation to debt securities. Various asset allocation strategies are in place for non-U.S. pension plans, with a weighted-average target allocation of 49% to equity securities, 47% to debt securities and 4% to other asset classes. | ||||||||||||||||||||||||
Pension plans have the following weighted-average asset allocations: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. | |||||||||||||||||||||||
Plans | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||
Equity securities | 63 | % | 59 | % | 52 | % | 50 | % | ||||||||||||||||
Debt securities | 35 | % | 39 | % | 48 | % | 50 | % | ||||||||||||||||
Cash and cash equivalents | 2 | % | 2 | % | — | — | ||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Although the Company does not buy or sell any of its own securities as a direct investment for its pension funds, due to external investment management in certain commingled funds, the plans may indirectly hold Tyco securities. The aggregate amount of the securities would not be considered material relative to the total fund assets. | ||||||||||||||||||||||||
The Company evaluates its defined benefit plans' asset portfolios for the existence of significant concentrations of risk. Types of investment concentration risks that are evaluated include, but are not limited to, concentrations in a single entity, industry, foreign country and individual fund manager. As of September 27, 2013, there were no significant concentrations of risk in the Company's defined benefit plan assets. | ||||||||||||||||||||||||
The Company's plan assets are accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value of assets and their placement within the fair value hierarchy levels. The Company's asset allocations by level within the fair value hierarchy as of September 27, 2013 and September 28, 2012 are presented in the table below for the Company's material defined benefit plans. | ||||||||||||||||||||||||
As of | ||||||||||||||||||||||||
September 27, 2013 | ||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | |||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. equity securities | $ | 187 | $ | 296 | $ | 483 | ||||||||||||||||||
Non-U.S. equity securities | 165 | 351 | 516 | |||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
Government and government agency securities | 34 | 292 | 326 | |||||||||||||||||||||
Corporate debt securities | — | 379 | 379 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 54 | 54 | |||||||||||||||||||||
Cash and cash equivalents | 13 | — | 13 | |||||||||||||||||||||
Total | $ | 399 | $ | 1,372 | $ | 1,771 | ||||||||||||||||||
As of | ||||||||||||||||||||||||
September 28, 2012 | ||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | |||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. equity securities | $ | 162 | $ | 268 | $ | 430 | ||||||||||||||||||
Non-U.S. equity securities | 101 | 336 | 437 | |||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
Government and government agency securities | 58 | 272 | 330 | |||||||||||||||||||||
Corporate debt securities | — | 384 | 384 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 39 | 39 | |||||||||||||||||||||
Cash and cash equivalents | 19 | — | 19 | |||||||||||||||||||||
Total | $ | 340 | $ | 1,299 | $ | 1,639 | ||||||||||||||||||
Equity securities consist primarily of publicly traded U.S. and non-U.S. equities. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded. Certain equity securities are held within commingled funds which are valued at the unitized net asset value ("NAV") or percentage of the net asset value as determined by the custodian of the fund. These values are based on the fair value of the underlying net assets owned by the fund. | ||||||||||||||||||||||||
Fixed income securities consist primarily of government and government agency securities, corporate debt securities, and mortgage and other asset-backed securities. When available, fixed income securities are valued at the closing price reported in the active market in which the individual security is traded. Government and government agency securities and corporate debt securities are valued using the most recent bid prices or occasionally the mean of the latest bid and ask prices when markets are less liquid. Asset-backed securities including mortgage backed securities are valued using broker/dealer quotes when available. When quotes are not available, fair value is determined utilizing a discounted cash flow approach, which incorporates other observable inputs such as cash flows, underlying security structure and market information including interest rates and bid evaluations of comparable securities. Certain fixed income securities are held within commingled funds which are valued unitizing NAV determined by the custodian of the fund. These values are based on the fair value of the underlying net assets owned by the fund. | ||||||||||||||||||||||||
Cash and cash equivalents consist primarily of short-term commercial paper, bonds and other cash or cash-like instruments including settlement proceeds due from brokers, stated at cost, which approximates fair value. | ||||||||||||||||||||||||
The following tables set forth a summary of pension plan assets valued using NAV or its equivalent as of September 27, 2013 and September 28, 2012 ($ in millions): | ||||||||||||||||||||||||
As of | ||||||||||||||||||||||||
September 27, 2013 | ||||||||||||||||||||||||
Investment ($ in millions) | Fair | Redemption | Redemption | |||||||||||||||||||||
Value | Frequency | Notice | ||||||||||||||||||||||
Period | ||||||||||||||||||||||||
U.S. equity securities | $ | 292 | Daily | 1 day, 5 days | ||||||||||||||||||||
Non-U.S. equity securities | 390 | Daily, Semi-monthly | 1 day, 2 days, 3 days | |||||||||||||||||||||
Government and government agency securities | 148 | Daily | 1 day, 2 days | |||||||||||||||||||||
Corporate debt securities | 121 | Daily | 1 day, 2 days | |||||||||||||||||||||
$ | 951 | |||||||||||||||||||||||
As of | ||||||||||||||||||||||||
September 28, 2012 | ||||||||||||||||||||||||
Investment ($ in millions) | Fair | Redemption | Redemption | |||||||||||||||||||||
Value | Frequency | Notice | ||||||||||||||||||||||
Period | ||||||||||||||||||||||||
U.S. equity securities | $ | 265 | Daily | 1 day | ||||||||||||||||||||
Non-U.S. equity securities | 329 | Daily, Semi-monthly | 1 day, 2 days, 3 days | |||||||||||||||||||||
Government and government agency securities | 119 | Daily | 1 day | |||||||||||||||||||||
Corporate debt securities | 136 | Daily | 1 day, 2 days | |||||||||||||||||||||
$ | 849 | |||||||||||||||||||||||
The strategy of the Company's investment managers with regard to the investments valued using NAV or its equivalent is to either match or exceed relevant benchmarks associated with the respective asset category. None of the investments valued using NAV or its equivalent contain any redemption restrictions or unfunded commitments. | ||||||||||||||||||||||||
During 2013, the Company contributed $9 million to its U.S. and $47 million to its non-U.S. pension plans, which represented the Company's minimum required contributions to its pension plans for fiscal year 2012. The Company did not make any voluntary contributions to its U.S. and non-U.S. plans during 2013. | ||||||||||||||||||||||||
The Company's funding policy is to make contributions in accordance with the laws and customs of the various countries in which it operates as well as to make discretionary voluntary contributions from time-to-time. The Company anticipates that it will contribute at least the minimum required to its pension plans in 2014 of $25 million for the U.S. plans and $35 million for non-U.S. plans. | ||||||||||||||||||||||||
Benefit payments, including those amounts to be paid out of corporate assets and reflecting future expected service as appropriate, are expected to be paid as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2014 | $ | 43 | $ | 55 | ||||||||||||||||||||
2015 | 44 | 54 | ||||||||||||||||||||||
2016 | 45 | 55 | ||||||||||||||||||||||
2017 | 45 | 56 | ||||||||||||||||||||||
2018 | 47 | 57 | ||||||||||||||||||||||
2019 - 2023 | 248 | 306 | ||||||||||||||||||||||
The Company also participates in a number of multi-employer defined benefit plans on behalf of certain employees. Pension expense related to multi-employer plans was not material for 2013, 2012 and 2011. | ||||||||||||||||||||||||
Executive Retirement Arrangements—Messrs. Kozlowski and Swartz participated in individual Executive Retirement Arrangements maintained by Tyco (the "ERA"). Under the ERA, Messrs. Kozlowski and Swartz would have fixed lifetime benefits commencing at their normal retirement age of 65. During the second quarter of fiscal 2012, the Company reversed the liability related to Mr. Swartz's pay and benefits due to the expiration of the statute of limitations, which was recorded in Selling, general and administrative expenses in the Company's Consolidated Statement of Operations. The Company's accrued benefit obligation for Mr. Kozlowski as of September 27, 2013 was $93 million. The Company's accrued benefit obligations for Messrs. Kozlowski and Swartz as of September 28, 2012 were $93 million and nil, respectively. Retirement benefits are available at earlier ages and alternative forms of benefits can be elected. Any such variations would be actuarially equivalent to the fixed lifetime benefit starting at age 65. Amounts owed to Mr. Kozlowski under the ERA are the subject of litigation brought by the Company against him. See Note 13. | ||||||||||||||||||||||||
Defined Contribution Retirement Plans—The Company maintains several defined contribution retirement plans, which include 401(k) matching programs, as well as qualified and nonqualified profit sharing and share bonus retirement plans. Expense for the defined contribution plans is computed as a percentage of participants' compensation and was $63 million, $58 million, and $54 million for 2013, 2012 and 2011, respectively. The Company maintained an unfunded Supplemental Executive Retirement Plan ("SERP") for fiscal years 2012 and 2011. This plan is nonqualified and restores the employer match that certain employees lose due to IRS limits on eligible compensation under the defined contribution plans. The expense related to the SERP was not material for 2012 and 2011. The SERP was merged with the other nonqualified deferred compensation plans, discussed in the next paragraph, as of September 28, 2012. | ||||||||||||||||||||||||
Deferred Compensation Plans—The Company has nonqualified deferred compensation plans, which permit eligible employees to defer a portion of their compensation. A record keeping account is set up for each participant and the participant chooses from a variety of measurement funds for the deemed investment of their accounts. The measurement funds correspond to a number of funds in the Company's 401(k) plans and the account balance fluctuates with the investment returns on those funds. Deferred compensation liabilities were $113 million and $103 million as of September 27, 2013 and September 28, 2012, respectively. Deferred compensation expense was not material for 2013, 2012 and 2011. | ||||||||||||||||||||||||
Postretirement Benefit Plans—The Company generally does not provide postretirement benefits other than pensions for its employees. However, certain acquired operations provide these benefits to employees who were eligible at the date of acquisition, and a small number of U.S. and Canadian operations provide ongoing eligibility for such benefits. | ||||||||||||||||||||||||
Net periodic postretirement benefit cost was not material for 2013, 2012 and 2011. The Company's Consolidated Balance Sheets include unfunded postretirement benefit obligations of $33 million and $40 million as of September 27, 2013 and September 28, 2012, respectively within other liabilities. The Company's Consolidated Balance Sheets include nil of postretirement benefit assets as of both September 27, 2013 and September 28, 2012. In addition, the Company recorded a net actuarial gain of $8 million and $4 million within accumulated other comprehensive loss as of September 27, 2013 and September 28, 2012, respectively. | ||||||||||||||||||||||||
The Company expects to make contributions to its postretirement benefit plans of $3 million in 2014. | ||||||||||||||||||||||||
Benefit payments, including those amounts to be paid out of corporate assets and reflecting future expected service as appropriate, are expected to be paid as follows ($ in millions): | ||||||||||||||||||||||||
2014 | $ | 3 | ||||||||||||||||||||||
2015 | 3 | |||||||||||||||||||||||
2016 | 3 | |||||||||||||||||||||||
2017 | 3 | |||||||||||||||||||||||
2018 | 3 | |||||||||||||||||||||||
2019-2023 | 12 | |||||||||||||||||||||||
Shareholders_Equity_and_Compre
Shareholders' Equity and Comprehensive Income | 12 Months Ended | ||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||
Shareholders' Equity and Comprehensive Income | ' | ||||||||||||||||||||
Shareholders' Equity and Comprehensive Income | |||||||||||||||||||||
Dividends | |||||||||||||||||||||
Prior to May 2011, the Company paid dividends in the form of a return of share capital from the Company's registered share capital. These payments were made free of Swiss withholding taxes. The Company now makes dividend payments from its contributed surplus equity position in its Swiss statutory accounts. These payments are also made free of Swiss withholding taxes. Unlike payments made in the form of a reduction to registered share capital, which are required to be denominated in Swiss francs and converted to U.S. dollars at the time of payment, payments from the contributed surplus account may effectively be denominated in U.S. dollars. | |||||||||||||||||||||
Under Swiss law, the authority to declare dividends is vested in the general meeting of shareholders. On March 6, 2013, the Company's shareholders approved a cash dividend of $0.64 per share, payable to shareholders in four quarterly installments of $0.16 in May 2013, August 2013, November 2013 and February 2014. As a result, during the quarter ended March 29, 2013, the Company recorded an accrued dividend of $296 million within Accrued and other current liabilities and a corresponding reduction to Contributed surplus on the Company's Consolidated Balance Sheet. The first installment of $0.16 was paid on May 22, 2013 to shareholders of record on April 26, 2013. The second installment of $0.16 was paid on August 21, 2013 to shareholders of record on July 26, 2013. The third installment of $0.16 was paid on November 14, 2013 to shareholders of record on October 25, 2013. | |||||||||||||||||||||
On March 7, 2012, the Company's shareholders approved a cash dividend of $0.50 per share, payable to shareholders in two quarterly installments of $0.25 on May 23, 2012 and August 22, 2012. On September 17, 2012, the Company's shareholders approved a cash dividend of $0.30 per share, payable to shareholders in two quarterly installments of $0.15 on November 15, 2012 and February 20, 2013. The $0.30 dividend reflects the impact of the 2012 Separation on the Company's dividend policy. As a result, the Company recorded an accrued dividend of $231 million as of March 7, 2012 and an additional accrued dividend of $139 million as of September 17, 2012 within Accrued and other current liabilities and a corresponding reduction to Contributed surplus. The first installment of $0.25 was paid on May 23, 2012 to shareholders on record on April 27, 2012. The second installment of $0.25 was paid on August 22, 2012 to shareholders on record on July 27, 2012. The first installment of $0.15 of the $0.30 dividend was paid on November 15, 2012 to shareholders of record on October 16, 2012. The second installment of $0.15 of the $0.30 dividend was paid on February 20, 2013 to shareholders of record on January 25, 2013. | |||||||||||||||||||||
On March 9, 2011, the Company's shareholders approved an annual dividend on the Company's common shares of $1.00 per share, which was paid from contributed surplus in four installments of $0.25 per share to shareholders on record on April 29, 2011, July 29, 2011, October 28, 2011 and January 27, 2012. As a result, the Company recorded an accrued dividend of $468 million as of March 9, 2011 within Accrued and other current liabilities and a corresponding reduction to Contributed surplus. | |||||||||||||||||||||
Common Stock | |||||||||||||||||||||
As of September 27, 2013, the Company's share capital amounted to CHF 243,181,525, or 486,363,050 registered common shares with a par value of CHF 0.50 per share. Until March 6, 2015, the Board of Directors may increase the Company's share capital by a maximum amount of CHF 121,500,000 by issuing a maximum of 243,000,000 shares. In addition, (i) the share capital of the Company may be increased by an amount not exceeding CHF 23,964,755 through the issue of a maximum of 47,929,510 shares through the exercise of conversion and/or option or warrant rights granted in connection with bonds, notes or similar instruments and (ii) the share capital of the Company may be increased by an amount not exceeding CHF 23,964,755 through the issue of a maximum of 47,929,510 shares to employees and other persons providing services to the Company. Although the Company states its par value in Swiss francs, it continues to use the U.S. dollar as its reporting currency for preparing its Consolidated Financial Statements. | |||||||||||||||||||||
On March 6, 2013, shareholders of the Company approved a reduction of the Company's registered share capital from CHF 3,258,632,435 to CHF 243,181,525 by reducing the par value of each share from CHF 6.70 to CHF 0.50 per share and correspondingly increasing the Company's contributed surplus by CHF 3,015,450,910. The reduction in registered share capital and corresponding increase in contributed surplus is intended to provide the Company with more flexibility in making distributions to shareholders. On May 13, 2013, the notice period required in accordance with Swiss law expired, and the amendment to the Company's Articles of Association was filed with the Swiss Commercial Register on May 15, 2013. As a result, the reduction in registered share capital and corresponding increase in contributed surplus, which did not result in any changes to total Shareholders' Equity, was recorded during the year ended September 27, 2013. | |||||||||||||||||||||
Share Repurchase Program | |||||||||||||||||||||
The Company's Board of Directors approved the $600 million 2013 share repurchase program, the $1.0 billion 2011 share repurchase program and the $1.0 billion 2010 share repurchase program in January 2013, April 2011 and September 2010, respectively. Share repurchases reduce the amount of common shares outstanding and decrease the dividends declared on the Consolidated Statement of Shareholders' Equity. Shares repurchased by the Company by fiscal year and share repurchase program are provided below: | |||||||||||||||||||||
2013 Share | 2011 Share | 2010 Share | |||||||||||||||||||
Repurchase Program | Repurchase Program | Repurchase Program | |||||||||||||||||||
Shares | Amounts | Shares | Amounts | Shares | Amounts | ||||||||||||||||
(in millions) | ($ in billions) | (in millions) | ($ in billions) | (in millions) | ($ in billions) | ||||||||||||||||
Approved Repurchase Amount | $ | 0.6 | $ | 1 | $ | 1 | |||||||||||||||
Repurchases | |||||||||||||||||||||
Fiscal 2013 | 3 | 0.1 | 7 | 0.2 | N/A | N/A | |||||||||||||||
Fiscal 2012 | N/A | N/A | 11 | 0.5 | N/A | N/A | |||||||||||||||
Fiscal 2011 | N/A | N/A | 6 | 0.3 | 24 | 1 | |||||||||||||||
Remaining Amount Available | $ | 0.5 | $ | — | $ | — | |||||||||||||||
Comprehensive Income | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Net income | $ | 533 | $ | 471 | $ | 1,720 | |||||||||||||||
Foreign currency translation | (87 | ) | 92 | 21 | |||||||||||||||||
Liquidation of foreign entities (1) | (9 | ) | 2 | (164 | ) | ||||||||||||||||
Income tax expense (2) | (6 | ) | (1 | ) | — | ||||||||||||||||
Foreign currency translation, net of tax | (102 | ) | 93 | (143 | ) | ||||||||||||||||
Net actuarial gains (losses) | 109 | (212 | ) | (30 | ) | ||||||||||||||||
Amortization reclassified into earnings | 26 | 22 | 21 | ||||||||||||||||||
Settlements/curtailments reclassified to earnings | — | — | (1 | ) | |||||||||||||||||
Foreign currency and other | — | (15 | ) | (2 | ) | ||||||||||||||||
Divestiture of business | — | — | 33 | ||||||||||||||||||
Income tax (expense) benefit | (54 | ) | 42 | 12 | |||||||||||||||||
Defined benefit and post retirement plans, net of tax | 81 | (163 | ) | 33 | |||||||||||||||||
Unrealized gain (loss) on marketable securities and derivative instruments | 2 | (1 | ) | (2 | ) | ||||||||||||||||
Income tax (expense) benefit | (2 | ) | 1 | (2 | ) | ||||||||||||||||
Unrealized loss on marketable securities and derivative instruments, net of tax | — | — | (4 | ) | |||||||||||||||||
Deconsolidation of variable interest entity due to adoption of an accounting standard | — | — | (11 | ) | |||||||||||||||||
Total other comprehensive loss, net of tax | (21 | ) | (70 | ) | (125 | ) | |||||||||||||||
Comprehensive income | 512 | 401 | 1,595 | ||||||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | (3 | ) | (1 | ) | (10 | ) | |||||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 515 | $ | 402 | $ | 1,605 | |||||||||||||||
-1 | During the years ended September 27, 2013, September 28, 2012 and September 30, 2011, $9 million of cumulative translation gains, $2 million of cumulative translation loss and $164 million of cumulative translation gains, respectively, were transferred from currency translation adjustments as a result of the sale of foreign entities. Of these amounts, nil, $2 million and $126 million, respectively, are included in income from discontinued operations. | ||||||||||||||||||||
-2 | Income tax on the net investment hedge was $6 million of an income tax expense for the year ended September 27, 2013, $1 million of an income tax expense for the year ended September 28, 2012 and nil for the year ended September 30, 2011. | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||
The components of accumulated other comprehensive loss are as follows ($ in millions): | |||||||||||||||||||||
Currency | Unrealized Gain | Retirement | Accumulated Other | ||||||||||||||||||
Translation | (Loss) on | Plans | Comprehensive Loss | ||||||||||||||||||
Adjustments | Marketable | ||||||||||||||||||||
Securities and | |||||||||||||||||||||
Derivative | |||||||||||||||||||||
Instruments | |||||||||||||||||||||
Balance as of September 24, 2010 | $ | 213 | $ | 4 | $ | (539 | ) | $ | (322 | ) | |||||||||||
Other comprehensive (loss) income, net of tax | (143 | ) | (4 | ) | 33 | (114 | ) | ||||||||||||||
Balance as of September 30, 2011 | 70 | — | (506 | ) | (436 | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | 93 | — | (163 | ) | (70 | ) | |||||||||||||||
Distribution of Tyco Flow Control and ADT | (582 | ) | — | 122 | (460 | ) | |||||||||||||||
Balance as of September 28, 2012 | (419 | ) | — | (547 | ) | (966 | ) | ||||||||||||||
Other comprehensive (loss) income, net of tax | (102 | ) | — | 81 | (21 | ) | |||||||||||||||
Balance as of September 27, 2013 | $ | (521 | ) | $ | — | $ | (466 | ) | $ | (987 | ) | ||||||||||
Share_Plans
Share Plans | 12 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share Plans | ' | ||||||||||||
Share Plans | |||||||||||||
Total share-based compensation cost recognized within continuing and discontinued operations during 2013, 2012 and 2011 consisted of the following ($ in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Selling, general and administrative expenses | $63 | $81 | $89 | ||||||||||
Separation costs | — | 28 | — | ||||||||||
Restructuring, asset impairments and divestiture charges (gains), net | — | 4 | — | ||||||||||
Total share-based compensation costs included in Continuing operations | 63 | 113 | 89 | ||||||||||
Discontinued operations | — | 27 | 21 | ||||||||||
Total share-based compensation costs | $63 | $140 | $110 | ||||||||||
The Company has recognized a related tax benefit associated with its share-based compensation arrangements during 2013, 2012 and 2011 of $20 million, $43 million and $31 million, of which nil, $8 million and $6 million is included in Discontinued operations, respectively. | |||||||||||||
In connection with the 2012 Separation, most employees' outstanding stock option awards were converted into options to acquire the stock of the employee's post-Separation employer in a manner designed to preserve the intrinsic value of such awards. However, for certain corporate employees and for all terminated employees, all or a portion of such employees' stock option awards were converted into options to acquire the stock of each of the Company, Pentair and ADT. The modifications made to the share options as a result of the 2012 Separation constituted a modification under the authoritative guidance for accounting for stock compensation, which requires a comparison of fair values of the stock option awards immediately before the 2012 Separation and the fair values immediately after the 2012 Separation. In certain instances, the fair value immediately after the 2012 Separation was higher. As a result, the modification resulted in incremental compensation cost of $1 million, the majority of which was recorded in Discontinued operations for the year ended September 28, 2012. Except for the changes described, the material terms of the stock option awards remained unchanged from the original grant. While the equity awards held by employees were converted as of September 28, 2012, the 2012 and 2011 grant date fair values, intrinsic values, vested values and black-scholes assumptions are on a pre-conversion basis. | |||||||||||||
Also in connection with the 2012 Separation, restricted stock units held by Tyco employees and deferred stock units held by Tyco directors were converted, in some cases, into restricted stock units in the Company, Pentair and ADT, and in other cases, solely into restricted stock units of the employee's post-Separation employer. All such modifications were designed in a manner to preserve the intrinsic value of such awards. Except for the changes described, the material terms of the restricted stock units and deferred stock units remained unchanged from the original grant. | |||||||||||||
On July 12, 2012, in connection with the 2012 Separation, the Board of Directors approved the conversion of all outstanding performance share units of the Company into restricted stock units based on performance achieved through June 29, 2012. Each performance share unit converted into a number of restricted stock units at a ratio determined by the Compensation Committee on August 2, 2012 based on its review and certification of performance results through June 29, 2012. Upon vesting of the resulting restricted stock units, each award will be settled in stock. All awards maintained their original vesting terms. The modifications made to the market-based condition of outstanding performance share units as a result of the 2012 Separation also constituted a modification similar to the modification described above. As a result, the modification resulted in incremental compensation cost of $8 million, of which $7 million was recorded in Separation costs and $1 million in Discontinued operations for the year ended September 28, 2012. In addition, incremental expense was recognized in the quarter related to the performance achieved through June 29, 2012. Such expense totaled $7 million, of which $6 million was recorded in Separation costs and $1 million in Discontinued operations for the year ended September 28, 2012. | |||||||||||||
On September 17, 2012, shareholders approved the Tyco International 2012 Stock and Incentive Plan (the "2012 Plan") which replaces the 2004 Tyco International Ltd. Stock and Incentive Plan (the "2004 Plan"). The 2012 Plan provides for the award of stock options, stock appreciation rights, annual performance bonuses, long term performance awards, restricted units, restricted shares, deferred stock units, promissory stock and other stock-based awards (collectively, "Awards"). Pursuant to the 2012 Plan, effective October 1, 2012, 50 million common shares are available for equity-based awards, subject to adjustments as provided under the terms of the 2012 Plan. No additional shares are available under the 2004 Plan. In addition, any common shares which have been awarded under the 2004 Plan but which are not issued, owing to expiration, forfeiture, cancellation, return to the Company or settlement in cash in lieu of common shares on or after January 1, 2004 and which are no longer available for any reason will also be available for issuance under the 2012 Plan. When common shares are issued pursuant to a grant of a full value award (for example, restricted stock units and performance share units), the total number of common shares remaining available for grant will be decreased by 3.32 shares. As of September 27, 2013, there were approximately 40 million shares available for grant under the 2012 Plan. | |||||||||||||
During 2004, the 2004 Plan effectively replaced the Tyco International Ltd. Long Term Incentive Plan, as amended as of May 12, 1999 (the "LTIP I Plan") and the Tyco International Ltd. Long Term Incentive Plan II (the "LTIP II Plan") for all awards effective on and after March 25, 2004. The 2004 Plan provided for the award of stock options, stock appreciation rights, annual performance bonuses, long term performance awards, restricted units, restricted shares, deferred stock units, promissory stock and other stock-based awards (collectively, "Awards"). As of September 27, 2013, an immaterial number of stock units remained outstanding which were granted under LTIP I and LTIP II prior to termination. | |||||||||||||
The 2004 Plan provided for a maximum of 40 million common shares to be issued as Awards, subject to adjustment as provided under the terms of the 2004 Plan. In addition, any common shares that have been approved by the Company's shareholders for issuance under the LTIP Plans but which have not been awarded there under as of January 1, 2004, reduced by the number of common shares related to Awards made under the LTIP Plans between January 1, 2004 and March 25, 2004, the date the 2004 Plan was approved by shareholders, (or which have been awarded but will not be issued, owing to expiration, forfeiture, cancellation, return to the Company or settlement in cash in lieu of common shares on or after January 1, 2004) and which are no longer available for any reason (including the termination of the LTIP Plans) were available for issuance under the 2004 Plan, and now are subsequently available for issuance under the 2012 Plan. When common shares are issued pursuant to a grant of a full value award, the total number of common shares remaining available for grant will be decreased by a margin of at least 1.8 per share issued. As of October 1, 2012, the 2012 Plan replaced the 2004 Plan and no further awards are permitted to be granted under the 2004 Plan. | |||||||||||||
Share Options—Options are granted to purchase common shares at prices that are equal to or greater than the closing market price of the common shares on the date the option is granted. Conditions of vesting are determined at the time of grant. Options are generally exercisable in equal annual installments over a period of four years and will generally expire 10 years after the date of grant. Historically, the Company's practice has been to settle stock option exercises through either newly issued shares or from shares held in treasury. | |||||||||||||
The grant-date fair value of each option grant is estimated using the Black-Scholes option pricing model. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility is calculated based on an analysis of historic and implied volatility measures for a set of peer companies. The average expected life is based on the contractual term of the option and expected employee exercise and post-vesting employment termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The compensation expense recognized is net of estimated forfeitures. Forfeitures are estimated based on voluntary termination behavior, as well as an analysis of actual share option forfeitures. The weighted-average assumptions used in the Black-Scholes option pricing model for 2013, 2012 and 2011 are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected stock price volatility | 35 | % | 36 | % | 33 | % | |||||||
Risk free interest rate | 0.87 | % | 1.46 | % | 1.3 | % | |||||||
Expected annual dividend per share | $ | 0.6 | $ | 1 | $ | 0.84 | |||||||
Expected life of options (years) | 5.8 | 5.8 | 5.2 | ||||||||||
The weighted-average grant-date fair values of options granted during 2013, 2012 and 2011 was $7.21, $12.56 and $9.22, respectively. The total intrinsic value of options exercised during 2013, 2012 and 2011 was $73 million, $85 million and $84 million, respectively. The related excess cash tax benefit classified as a financing cash inflow for 2013, 2012 and 2011 was not material. | |||||||||||||
A summary of the option activity as of September 27, 2013, and changes during the year then ended is presented below: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining | Value | |||||||||||
Contractual Term | ($ in millions) | ||||||||||||
(in years) | |||||||||||||
Outstanding as of September 28, 2012 | 21,670,340 | $ | 20.89 | ||||||||||
Granted | 4,214,430 | 27.27 | |||||||||||
Exercised | (7,306,955 | ) | 20.9 | ||||||||||
Expired | (640,895 | ) | 21.69 | ||||||||||
Forfeited | (137,731 | ) | 23.98 | ||||||||||
Outstanding as of September 27, 2013 | 17,799,189 | 22.34 | 6.2 | $ | 225 | ||||||||
Vested and unvested expected to vest as of September 27, 2013 | 16,924,966 | 22.19 | 6.09 | $ | 216 | ||||||||
Exercisable as of September 27, 2013 | 9,190,538 | 21.2 | 4.31 | $ | 126 | ||||||||
As of September 27, 2013, there was $32 million of total unrecognized compensation cost related to unvested options granted. The cost is expected to be recognized over a weighted-average period of 2.4 fiscal years. | |||||||||||||
Employee Stock Purchase Plans—Tyco Employee Stock Purchase Plan ("ESPP") was suspended indefinitely during the fourth quarter of 2009. As of September 27, 2013, there were approximately 3 million shares available for grant under the ESPP. | |||||||||||||
Restricted Share Awards—Restricted share awards, including restricted stock units and performance share units are granted subject to certain restrictions. Conditions of vesting are determined at the time of grant. Restrictions on the award generally lapse upon normal retirement, if more than twelve months from the grant date, death or disability of the employee. | |||||||||||||
The fair market value of restricted awards, both time vesting and those subject to specific performance criteria, are expensed over the period of vesting. Restricted stock units, which vest based solely upon passage of time generally vest over a period of four years. The fair value of restricted stock units is determined based on the closing market price of the Company's shares on the grant date. Performance share units, which are restricted share awards that vest dependent upon attainment of various levels of performance that equal or exceed targeted levels generally vest in their entirety three years from the grant date. The fair value of performance share units is determined based on the Monte Carlo valuation model. The compensation expense recognized for all restricted share awards is net of estimated forfeitures. | |||||||||||||
Recipients of restricted stock units have no voting rights and receive dividend equivalent units ("DEUs"). Recipients of performance share units have no voting rights and may receive DEUs depending on the terms of the grant. | |||||||||||||
A summary of the activity of the Company's restricted stock unit awards as of September 27, 2013 and changes during the year then ended is presented in the tables below: | |||||||||||||
Non-vested Restricted Stock Units | Shares | Weighted-Average | |||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested as of September 28, 2012 | 5,164,283 | $ | 20.24 | ||||||||||
Granted | 1,366,929 | 27.66 | |||||||||||
Vested | (2,118,908 | ) | 18.49 | ||||||||||
Forfeited | (443,177 | ) | 20.76 | ||||||||||
Non-vested as of September 27, 2013 | 3,969,127 | 22.63 | |||||||||||
The weighted-average grant-date fair value of restricted stock units granted during 2013, 2012 and 2011 was $27.66, $45.54 and $37.90, respectively. The total fair value of restricted stock units vested during 2013, 2012 and 2011 was $64 million, $90 million and $62 million, respectively. | |||||||||||||
As of September 27, 2013, there was $47 million of total unrecognized compensation cost related to all unvested restricted share awards. The cost is expected to be recognized over a weighted-average period of 2.1 fiscal years. | |||||||||||||
A summary of the activity of the Company's performance share unit awards as of September 27, 2013 and changes during the year then ended is presented in the table below: | |||||||||||||
Non-vested Performance Share Units | Shares | Weighted-Average | |||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested as of September 28, 2012 | — | $ | — | ||||||||||
Granted | 897,197 | 30.36 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | (41,355 | ) | 30.36 | ||||||||||
Non-vested as of September 27, 2013 | 855,842 | 30.36 | |||||||||||
The weighted-average grant-date fair value of performance share units granted during 2013, 2012 and 2011 was $30.36, $48.86 and $41.37, respectively. The total fair value of performance share units vested during 2013, 2012 and 2011 was nil, $25 million and nil. As of August 2, 2012, all performance share units were converted to restricted stock units; the outstanding shares at that time have been moved to the restricted stock units reporting table. | |||||||||||||
As of September 27, 2013, there was $15 million of total unrecognized compensation cost related to all unvested performance share awards. The cost is expected to be recognized over a weighted-average period of 2.0 fiscal years. | |||||||||||||
Deferred Stock Units—Deferred Stock Units ("DSUs") are notional units that are tied to the value of Tyco common shares with distribution deferred until termination of employment or service to the Company. Distribution, when made, will be in the form of actual shares on a one-for-one basis. Similar to restricted stock units that vest over time, the fair value of DSUs is determined based on the closing market price of the Company's shares on the grant date and is amortized to expense over the vesting period. Recipients of DSUs do not have the right to vote and do not receive cash dividends. However, they have the right to receive dividend equivalent units. Conditions of vesting are determined at the time of grant. Under the 2004 Plan, grants made to executives generally vested in equal annual installments over three years while DSUs granted to the Board of Directors were immediately vested. The Company had 1.1 million DSUs outstanding as of September 28, 2012, all of which are fully vested and 1.0 million of which were delivered six months following September 28, 2012. | |||||||||||||
There were no DSU awards granted during 2013, 2012 and 2011; however, participants continue to earn DEUs on their existing awards. The total fair value of DSUs including DEUs vested during 2013, 2012 and 2011 was nil, $1 million and $1 million, respectively. |
Consolidated_Segment_Data
Consolidated Segment Data | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Consolidated Segment Data | ' | |||||||||||
Consolidated Segment Data | ||||||||||||
Segment information is consistent with how management reviews the businesses, make investing and resource allocation decisions and assesses operating performance. | ||||||||||||
In connection with the 2012 Separation, the Company has realigned its management and segment reporting structure beginning in the fourth quarter of fiscal 2012. The Company operates and reports financial and operating information in the following three segments: | ||||||||||||
• | NA Installation & Services designs, sells, installs, services and monitors electronic security systems and fire detection and suppression systems for commercial, industrial, retail, institutional and governmental customers in North America. | |||||||||||
• | ROW Installation & Services designs, sells, installs, services and monitors electronic security systems and fire detection and suppression systems for commercial, industrial, retail, residential, small business, institutional and governmental customers in the Rest of World ("ROW") regions. | |||||||||||
• | Global Products designs, manufactures and sells fire protection, security and life safety products, including intrusion security, anti-theft devices, breathing apparatus and access control and video management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide, including products installed and serviced by our NA and ROW Installation & Services segments. | |||||||||||
The Company also provides general corporate services to its segments which will be reported as a fourth, non-operating segment, Corporate and Other. For the years ended September 30, 2011, Corporate and Other includes the Company's former Electrical and Metal Products business which was divested in the first quarter of fiscal 2011. | ||||||||||||
As a result of the 2012 Separation, net revenue, operating income, depreciation and amortization and capital expenditures for the year ended September 30, 2011 has been recast for the new segment structure. Selected information by segment is presented in the following tables ($ in millions): | ||||||||||||
2013(2) | 2012(2) | 2011(2) | ||||||||||
Net Revenue(1): | ||||||||||||
NA Installation & Services | $ | 3,891 | $ | 3,962 | $ | 4,022 | ||||||
ROW Installation & Services | 4,417 | 4,341 | 4,434 | |||||||||
Global Products | 2,339 | 2,100 | 1,754 | |||||||||
Corporate and Other | — | — | 347 | |||||||||
$ | 10,647 | $ | 10,403 | $ | 10,557 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Net revenue by operating segment excludes intercompany transactions. | |||||||||||
(2) | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Operating income (loss): | ||||||||||||
NA Installation & Services | $ | 388 | $ | 374 | $ | 425 | ||||||
ROW Installation & Services | 433 | 456 | 405 | |||||||||
Global Products | 307 | 353 | 295 | |||||||||
Corporate and Other(1) | (319 | ) | (498 | ) | (143 | ) | ||||||
$ | 809 | $ | 685 | $ | 982 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Operating income includes $7 million for the year ended September 30, 2011, related to the Company's former Electrical and Metals Products business of which a majority interest was sold during the first quarter of fiscal 2011. Operating income for the year ended September 30, 2011 also included a gain, net of working capital adjustments, of $248 million related to the same sale. See Note 3. | |||||||||||
Total assets by segment as of September 27, 2013, September 28, 2012 and September 30, 2011 are as follows ($ in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Total Assets: | ||||||||||||
NA Installation & Services | $ | 3,829 | $ | 3,989 | $ | 4,025 | ||||||
ROW Installation & Services | 3,928 | 3,884 | 3,633 | |||||||||
Global Products | 2,726 | 2,377 | 2,037 | |||||||||
Corporate and Other | 1,693 | 2,115 | 3,047 | |||||||||
Assets of discontinued operations | — | — | 13,960 | |||||||||
$ | 12,176 | $ | 12,365 | $ | 26,702 | |||||||
Depreciation and amortization and capital expenditures by segment for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 are as follows ($ in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation and amortization: | ||||||||||||
NA Installation & Services | $ | 139 | $ | 137 | $ | 143 | ||||||
ROW Installation & Services | 223 | 211 | 211 | |||||||||
Global Products | 58 | 63 | 49 | |||||||||
Corporate and Other | 7 | 7 | 18 | |||||||||
$ | 427 | $ | 418 | $ | 421 | |||||||
2013 | 2012 | 2011 | ||||||||||
Capital expenditures | ||||||||||||
NA Installation & Services | $ | 92 | $ | 107 | $ | 76 | ||||||
ROW Installation & Services | 217 | 211 | 210 | |||||||||
Global Products | 58 | 74 | 66 | |||||||||
Corporate and Other | 10 | 14 | 19 | |||||||||
$ | 377 | $ | 406 | $ | 371 | |||||||
Net revenue by geographic area for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 is as follows ($ in millions): | ||||||||||||
2013(4) | 2012(4) | 2011(4) | ||||||||||
Net Revenue(1): | ||||||||||||
North America(2) | $ | 5,343 | $ | 5,257 | $ | 5,386 | ||||||
Latin America | 480 | 441 | 459 | |||||||||
Europe, Middle East and Africa (3) | 2,758 | 2,766 | 2,896 | |||||||||
Asia-Pacific | 2,066 | 1,939 | 1,816 | |||||||||
$ | 10,647 | $ | 10,403 | $ | 10,557 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Net revenue is attributed to individual countries based on the reporting entity that records the transaction. | |||||||||||
(2) | Includes U.S. net revenue of $4,568 million, $4,478 million and $4,630 million for 2013, 2012 and 2011, respectively. | |||||||||||
(3) | The U.K. represents the largest portion of net revenue in the Europe, Middle East and Africa region with net revenue of $1,168 million, $1,162 million and $1,187 million for 2013, 2012 and 2011, respectively. | |||||||||||
(4) | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. | |||||||||||
Long-lived assets by geographic area as of September 27, 2013, September 28, 2012 and September 30, 2011 are as follows ($ in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Long-lived assets(1): | ||||||||||||
North America(2) | $ | 892 | $ | 925 | $ | 967 | ||||||
Latin America | 129 | 151 | 144 | |||||||||
Europe, Middle East and Africa | 340 | 359 | 367 | |||||||||
Asia-Pacific | 601 | 587 | 535 | |||||||||
Corporate and Other | 32 | 29 | 33 | |||||||||
$ | 1,994 | $ | 2,051 | $ | 2,046 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Long-lived assets are comprised primarily of subscriber system assets, net, property, plant and equipment, net, deferred subscriber acquisition costs, net and dealer intangibles. They exclude goodwill, other intangible assets and other assets. | |||||||||||
(2) | Includes U.S. long-lived assets of $828 million, $856 million and $895 million for 2013, 2012 and 2011, respectively. |
Supplementary_Consolidated_Bal
Supplementary Consolidated Balance Sheet Information | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Supplementary Consolidated Balance Sheet Information | ' | |||||||
Supplementary Consolidated Balance Sheet Information | ||||||||
Selected supplementary Consolidated Balance Sheet information as of September 27, 2013 and September 28, 2012 is as follows ($ in millions): | ||||||||
As of | As of | |||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
Contracts in process | $ | 384 | $ | 360 | ||||
Other | 473 | 524 | ||||||
Prepaid expenses and other current assets | $ | 857 | $ | 884 | ||||
Deferred tax asset-non current | $ | 279 | $ | 398 | ||||
Other | 830 | 806 | ||||||
Other assets | $ | 1,109 | $ | 1,204 | ||||
Accrued payroll and payroll related costs | $ | 327 | $ | 291 | ||||
Deferred income tax liability-current | 44 | 10 | ||||||
Income taxes payable-current | 42 | 126 | ||||||
Accrued dividends | 148 | 139 | ||||||
Other | 1,349 | 1,222 | ||||||
Accrued and other current liabilities | $ | 1,910 | $ | 1,788 | ||||
Long-term pension and postretirement liabilities | $ | 425 | $ | 593 | ||||
Deferred income tax liability-non-current | 236 | 211 | ||||||
Income taxes payable-non-current | 147 | 124 | ||||||
Other | 1,161 | 1,413 | ||||||
Other liabilities | $ | 1,969 | $ | 2,341 | ||||
Inventory
Inventory | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
Inventory | ||||||||
Inventories consisted of the following ($ in millions): | ||||||||
As of | As of | |||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
Purchased materials and manufactured parts | $ | 157 | $ | 135 | ||||
Work in process | 93 | 80 | ||||||
Finished goods | 405 | 419 | ||||||
Inventories | $ | 655 | $ | 634 | ||||
Inventories are recorded at the lower of cost (primarily first-in, first-out) or market value. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, Plant and Equipment | ' | ||||||
Property, Plant and Equipment | |||||||
Property, plant and equipment consisted of the following ($ in millions): | |||||||
As of | As of | ||||||
September 27, | September 28, | ||||||
2013 | 2012 | ||||||
Land | $ | 44 | 44 | ||||
Buildings | 388 | 358 | |||||
Subscriber systems | 2,971 | 3,063 | |||||
Machinery and equipment | 1,232 | 1,158 | |||||
Construction in progress | 67 | 102 | |||||
Accumulated depreciation | (3,025 | ) | (3,055 | ) | |||
Property, Plant and Equipment, net | $ | 1,677 | 1,670 | ||||
Tyco_International_Finance_SA
Tyco International Finance S.A. | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Tyco International Finance S.A. | ' | |||||||||||||||||||
Tyco International Finance S.A. | ||||||||||||||||||||
TIFSA, a 100% owned subsidiary of the Company, has public debt securities outstanding which are fully and unconditionally guaranteed by Tyco. See Note 10. The following tables present condensed consolidating financial information for Tyco, TIFSA and all other subsidiaries. Condensed financial information for Tyco and TIFSA on a stand-alone basis is presented using the equity method of accounting for subsidiaries. | ||||||||||||||||||||
During fiscal 2013, the Company transferred certain investments in subsidiaries from Tyco to TIFSA. There was no impact on the Company’s financial position, results of operations and cash flows as the transactions were entirely among wholly-owned subsidiaries of Tyco. The transactions, which increased TIFSA’s investment in subsidiaries, were among entities under common control and their effects have been reflected as of the beginning of the earliest period presented, which resulted in a net increase to TIFSA’s investment in subsidiaries of $3,063 million as of September 28, 2012. | ||||||||||||||||||||
As a result of the 2012 Separation, the Company undertook certain steps during fiscal 2012 to restructure the ownership of subsidiaries within Tyco. Specifically, the Company completed the transfer of certain investments from TIFSA to Tyco. Since the transactions were entirely among wholly-owned subsidiaries of Tyco, there was no impact on the Company's financial position, results of operations and cash flows. The transactions did, however, result in a decrease to TIFSA's investment in subsidiaries. Since these transactions were among entities under common control, their effects have been reflected as of the beginning of the earliest period presented, which resulted in a net decrease to TIFSA's investment in subsidiaries of $117 million as of September 30, 2011. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Year Ended September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 10,647 | $ | — | $ | 10,647 | ||||||||||
Cost of product sales and services | — | — | 6,766 | — | 6,766 | |||||||||||||||
Selling, general and administrative expenses | 11 | 1 | 2,918 | — | 2,930 | |||||||||||||||
Separation costs | 3 | — | 5 | — | 8 | |||||||||||||||
Restructuring, asset impairment and divestiture charges, net | — | — | 134 | — | 134 | |||||||||||||||
Operating (loss) income | (14 | ) | (1 | ) | 824 | — | 809 | |||||||||||||
Interest income | 2 | — | 15 | — | 17 | |||||||||||||||
Interest expense | (1 | ) | (95 | ) | (4 | ) | — | (100 | ) | |||||||||||
Other (expense) income, net | (31 | ) | — | 2 | — | (29 | ) | |||||||||||||
Equity in net (loss) income of subsidiaries | (12,666 | ) | 575 | — | 12,091 | — | ||||||||||||||
Intercompany interest and fees | 13,248 | 122 | (13,370 | ) | — | — | ||||||||||||||
Income (loss) from continuing operations before income taxes | 538 | 601 | (12,533 | ) | 12,091 | 697 | ||||||||||||||
Income tax expense | (2 | ) | (2 | ) | (121 | ) | — | (125 | ) | |||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (48 | ) | — | (48 | ) | |||||||||||||
Income (loss) from continuing operations | 536 | 599 | (12,702 | ) | 12,091 | 524 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 9 | — | 9 | |||||||||||||||
Net income (loss) | 536 | 599 | (12,693 | ) | 12,091 | 533 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net loss | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Net income (loss) attributable to Tyco common shareholders | $ | 536 | $ | 599 | $ | (12,690 | ) | $ | 12,091 | $ | 536 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Year Ended September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income (loss) | $ | 536 | $ | 599 | $ | (12,693 | ) | $ | 12,091 | $ | 533 | |||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||||||
Foreign currency translation | (102 | ) | — | (102 | ) | 102 | (102 | ) | ||||||||||||
Defined benefit and post retirement plans | 81 | — | 81 | (81 | ) | 81 | ||||||||||||||
Unrealized loss on marketable securities and derivate instruments | — | — | — | — | — | |||||||||||||||
Total other comprehensive loss, net of tax | (21 | ) | — | (21 | ) | 21 | (21 | ) | ||||||||||||
Comprehensive income (loss) | 515 | 599 | (12,714 | ) | 12,112 | 512 | ||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Comprehensive income (loss) attributable to Tyco common shareholders | $ | 515 | $ | 599 | $ | (12,711 | ) | $ | 12,112 | $ | 515 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Year Ended September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 10,403 | $ | — | $ | 10,403 | ||||||||||
Cost of product sales and services | — | — | 6,626 | — | 6,626 | |||||||||||||||
Selling, general and administrative expenses | 15 | 15 | 2,873 | — | 2,903 | |||||||||||||||
Separation costs | 3 | 1 | 67 | — | 71 | |||||||||||||||
Restructuring, asset impairment and divestiture charges, net | 1 | — | 117 | — | 118 | |||||||||||||||
Operating (loss) income | (19 | ) | (16 | ) | 720 | — | 685 | |||||||||||||
Interest income | — | — | 19 | — | 19 | |||||||||||||||
Interest expense | — | (204 | ) | (5 | ) | — | (209 | ) | ||||||||||||
Other (expense) income, net | (4 | ) | (453 | ) | 3 | — | (454 | ) | ||||||||||||
Equity in net income of subsidiaries | 913 | 1,065 | — | (1,978 | ) | — | ||||||||||||||
Intercompany interest and fees | (412 | ) | 282 | 225 | (95 | ) | — | |||||||||||||
Income from continuing operations before income taxes | 478 | 674 | 962 | (2,073 | ) | 41 | ||||||||||||||
Income tax expense | (2 | ) | (2 | ) | (344 | ) | — | (348 | ) | |||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Income (loss) from continuing operations | 476 | 672 | 592 | (2,073 | ) | (333 | ) | |||||||||||||
(Loss) income from discontinued operations, net of income taxes | (4 | ) | — | 713 | 95 | 804 | ||||||||||||||
Net income | 472 | 672 | 1,305 | (1,978 | ) | 471 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net loss | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Net income attributable to Tyco common shareholders | $ | 472 | $ | 672 | $ | 1,306 | $ | (1,978 | ) | $ | 472 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Year Ended September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 472 | $ | 672 | $ | 1,305 | $ | (1,978 | ) | $ | 471 | |||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||
Foreign currency translation | 93 | 11 | 82 | (93 | ) | 93 | ||||||||||||||
Defined benefit and post retirement plans | (163 | ) | — | (163 | ) | 163 | (163 | ) | ||||||||||||
Unrealized loss on marketable securities and derivate instruments | — | — | — | — | — | |||||||||||||||
Total other comprehensive (loss) income, net of tax | (70 | ) | 11 | (81 | ) | 70 | (70 | ) | ||||||||||||
Comprehensive income | 402 | 683 | 1,224 | (1,908 | ) | 401 | ||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 402 | $ | 683 | $ | 1,225 | $ | (1,908 | ) | $ | 402 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Year Ended September 30, 2011 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 10,557 | $ | — | $ | 10,557 | ||||||||||
Cost of product sales and services | — | — | 6,890 | — | 6,890 | |||||||||||||||
Selling, general and administrative expenses | 32 | 12 | 2,790 | — | 2,834 | |||||||||||||||
Restructuring, asset impairment and divestiture charges (gains), net | 3 | — | (152 | ) | — | (149 | ) | |||||||||||||
Operating (loss) income | (35 | ) | (12 | ) | 1,029 | — | 982 | |||||||||||||
Interest income | — | — | 27 | — | 27 | |||||||||||||||
Interest expense | — | (237 | ) | (3 | ) | — | (240 | ) | ||||||||||||
Other (expense) income, net | (7 | ) | — | 2 | — | (5 | ) | |||||||||||||
Equity in net income of subsidiaries | 2,863 | 2,809 | — | (5,672 | ) | — | ||||||||||||||
Intercompany interest and fees | (1,098 | ) | 337 | 900 | (139 | ) | — | |||||||||||||
Income from continuing operations before income taxes | 1,723 | 2,897 | 1,955 | (5,811 | ) | 764 | ||||||||||||||
Income tax expense | (4 | ) | (25 | ) | (105 | ) | — | (134 | ) | |||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (12 | ) | — | (12 | ) | |||||||||||||
Income from continuing operations | 1,719 | 2,872 | 1,838 | (5,811 | ) | 618 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 963 | 139 | 1,102 | |||||||||||||||
Net income | 1,719 | 2,872 | 2,801 | (5,672 | ) | 1,720 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net income | — | — | 1 | — | 1 | |||||||||||||||
Net income attributable to Tyco common shareholders | $ | 1,719 | $ | 2,872 | $ | 2,800 | $ | (5,672 | ) | $ | 1,719 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Year Ended September 30, 2011 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 1,719 | $ | 2,872 | $ | 2,801 | $ | (5,672 | ) | $ | 1,720 | |||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||||||
Foreign currency translation | (143 | ) | (21 | ) | (122 | ) | 143 | (143 | ) | |||||||||||
Defined benefit and post retirement plans | 33 | — | 33 | (33 | ) | 33 | ||||||||||||||
Unrealized loss on marketable securities and derivate instruments | (4 | ) | — | (4 | ) | 4 | (4 | ) | ||||||||||||
Deconsolidation of variable interest entity due to adoption of an accounting standard | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Total other comprehensive loss, net of tax | (114 | ) | (21 | ) | (104 | ) | 114 | (125 | ) | |||||||||||
Comprehensive income | 1,605 | 2,851 | 2,697 | (5,558 | ) | 1,595 | ||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 1,605 | $ | 2,851 | $ | 2,707 | $ | (5,558 | ) | $ | 1,605 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 563 | $ | — | $ | 563 | ||||||||||
Accounts receivable, net | — | — | 1,738 | — | 1,738 | |||||||||||||||
Inventories | — | — | 655 | — | 655 | |||||||||||||||
Intercompany receivables | 22 | 2,079 | 7,354 | (9,455 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 9 | — | 848 | — | 857 | |||||||||||||||
Deferred income taxes | — | — | 254 | — | 254 | |||||||||||||||
Total current assets | 31 | 2,079 | 11,412 | (9,455 | ) | 4,067 | ||||||||||||||
Property, plant and equipment, net | — | — | 1,677 | — | 1,677 | |||||||||||||||
Goodwill | — | — | 4,519 | — | 4,519 | |||||||||||||||
Intangible assets, net | — | — | 804 | — | 804 | |||||||||||||||
Investment in subsidiaries | 12,826 | 14,690 | — | (27,516 | ) | — | ||||||||||||||
Intercompany loans receivable | — | 1,141 | 5,310 | (6,451 | ) | — | ||||||||||||||
Other assets | 68 | 6 | 1,035 | — | 1,109 | |||||||||||||||
Total Assets | $ | 12,925 | $ | 17,916 | $ | 24,757 | $ | (43,422 | ) | $ | 12,176 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Loans payable and current maturities of long-term debt | $ | — | $ | — | $ | 20 | $ | — | $ | 20 | ||||||||||
Accounts payable | 1 | — | 898 | — | 899 | |||||||||||||||
Accrued and other current liabilities | 353 | 23 | 1,534 | — | 1,910 | |||||||||||||||
Deferred revenue | — | — | 402 | — | 402 | |||||||||||||||
Intercompany payables | 3,515 | 3,845 | 2,095 | (9,455 | ) | — | ||||||||||||||
Total current liabilities | 3,869 | 3,868 | 4,949 | (9,455 | ) | 3,231 | ||||||||||||||
Long-term debt | — | 1,443 | — | — | 1,443 | |||||||||||||||
Intercompany loans payable | 3,660 | 1,852 | 939 | (6,451 | ) | — | ||||||||||||||
Deferred revenue | — | — | 400 | — | 400 | |||||||||||||||
Other liabilities | 298 | — | 1,671 | — | 1,969 | |||||||||||||||
Total Liabilities | 7,827 | 7,163 | 7,959 | (15,906 | ) | 7,043 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 12 | — | 12 | |||||||||||||||
Tyco Shareholders' Equity: | ||||||||||||||||||||
Common shares | 208 | — | — | — | 208 | |||||||||||||||
Common shares held in treasury | — | — | (912 | ) | — | (912 | ) | |||||||||||||
Other shareholders' equity | 4,890 | 10,753 | 17,675 | (27,516 | ) | 5,802 | ||||||||||||||
Total Tyco Shareholders' Equity | 5,098 | 10,753 | 16,763 | (27,516 | ) | 5,098 | ||||||||||||||
Nonredeemable noncontrolling interest | — | — | 23 | — | 23 | |||||||||||||||
Total Equity | 5,098 | 10,753 | 16,786 | (27,516 | ) | 5,121 | ||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 12,925 | $ | 17,916 | $ | 24,757 | $ | (43,422 | ) | $ | 12,176 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 844 | $ | — | $ | 844 | ||||||||||
Accounts receivable, net | 7 | — | 1,689 | — | 1,696 | |||||||||||||||
Inventories | — | — | 634 | — | 634 | |||||||||||||||
Intercompany receivables | 1,220 | 1,890 | 10,361 | (13,471 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 14 | — | 870 | — | 884 | |||||||||||||||
Deferred income taxes | — | — | 295 | — | 295 | |||||||||||||||
Total current assets | 1,241 | 1,890 | 14,693 | (13,471 | ) | 4,353 | ||||||||||||||
Property, plant and equipment, net | — | — | 1,670 | — | 1,670 | |||||||||||||||
Goodwill | — | — | 4,367 | — | 4,367 | |||||||||||||||
Intangible assets, net | — | — | 771 | — | 771 | |||||||||||||||
Investment in subsidiaries | 25,666 | 15,337 | — | (41,003 | ) | — | ||||||||||||||
Intercompany loans receivable | 1,921 | 7,031 | 19,956 | (28,908 | ) | — | ||||||||||||||
Other assets | 67 | 260 | 877 | — | 1,204 | |||||||||||||||
Total Assets | $ | 28,895 | $ | 24,518 | $ | 42,334 | $ | (83,382 | ) | $ | 12,365 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Loans payable and current maturities of long-term debt | $ | — | $ | — | $ | 10 | $ | — | $ | 10 | ||||||||||
Accounts payable | — | — | 897 | — | 897 | |||||||||||||||
Accrued and other current liabilities | 187 | 23 | 1,578 | — | 1,788 | |||||||||||||||
Deferred revenue | — | — | 402 | — | 402 | |||||||||||||||
Intercompany payables | 3,571 | 6,793 | 3,107 | (13,471 | ) | — | ||||||||||||||
Total current liabilities | 3,758 | 6,816 | 5,994 | (13,471 | ) | 3,097 | ||||||||||||||
Long-term debt | — | 1,443 | 38 | — | 1,481 | |||||||||||||||
Intercompany loans payable | 19,672 | 3,055 | 6,181 | (28,908 | ) | — | ||||||||||||||
Deferred revenue | — | — | 424 | — | 424 | |||||||||||||||
Other liabilities | 471 | — | 1,870 | — | 2,341 | |||||||||||||||
Total Liabilities | 23,901 | 11,314 | 14,507 | (42,379 | ) | 7,343 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 12 | — | 12 | |||||||||||||||
Tyco Shareholders' Equity: | ||||||||||||||||||||
Common shares | 2,792 | — | — | — | 2,792 | |||||||||||||||
Common shares held in treasury | — | — | (1,094 | ) | — | (1,094 | ) | |||||||||||||
Other shareholders' equity | 2,202 | 13,204 | 28,893 | (41,003 | ) | 3,296 | ||||||||||||||
Total Tyco Shareholders' Equity | 4,994 | 13,204 | 27,799 | (41,003 | ) | 4,994 | ||||||||||||||
Nonredeemable noncontrolling interest | — | — | 16 | — | 16 | |||||||||||||||
Total Equity | 4,994 | 13,204 | 27,815 | (41,003 | ) | 5,010 | ||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 28,895 | $ | 24,518 | $ | 42,334 | $ | (83,382 | ) | $ | 12,365 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Year Ended September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (251 | ) | $ | 452 | $ | 640 | $ | — | $ | 841 | |||||||||
Net cash provided by discontinued operating activities | — | — | 9 | — | 9 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (377 | ) | — | (377 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 5 | — | 5 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (229 | ) | — | (229 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (22 | ) | — | (22 | ) | |||||||||||||
Divestiture of businesses, net of cash divested | — | — | 17 | — | 17 | |||||||||||||||
Intercompany dividend from subsidiary | — | 32 | — | (32 | ) | — | ||||||||||||||
Net increase in intercompany loans | — | (431 | ) | — | 431 | — | ||||||||||||||
Decrease in investment in subsidiaries | — | 8 | — | (8 | ) | — | ||||||||||||||
Net increase in investments | — | — | (45 | ) | — | (45 | ) | |||||||||||||
Increase in restricted cash | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Other | — | — | 4 | — | 4 | |||||||||||||||
Net cash used in investing activities | — | (391 | ) | (655 | ) | 391 | (655 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Net repayments of debt | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Proceeds from exercise of share options | — | — | 153 | — | 153 | |||||||||||||||
Dividends paid | (288 | ) | — | — | — | (288 | ) | |||||||||||||
Intercompany dividend to parent | — | — | (32 | ) | 32 | — | ||||||||||||||
Repurchase of common shares by treasury | — | — | (300 | ) | — | (300 | ) | |||||||||||||
Net intercompany loan borrowings (repayments) | 449 | — | (18 | ) | (431 | ) | — | |||||||||||||
Decrease in equity from parent | — | — | (8 | ) | 8 | — | ||||||||||||||
Transfer from (to) discontinued operations | 90 | (61 | ) | 10 | — | 39 | ||||||||||||||
Other | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 251 | (61 | ) | (255 | ) | (391 | ) | (456 | ) | |||||||||||
Net cash used in discontinued financing activities | — | — | (39 | ) | — | (39 | ) | |||||||||||||
Effect of currency translation on cash | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (311 | ) | — | (311 | ) | |||||||||||||
Less: net decrease in cash and cash equivalents related to discontinued operations | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | — | 844 | — | 844 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 563 | $ | — | $ | 563 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Year Ended September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (467 | ) | $ | 3,542 | $ | (2,374 | ) | $ | — | $ | 701 | ||||||||
Net cash provided by discontinued operating activities | — | — | 1,885 | — | 1,885 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (406 | ) | — | (406 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 8 | — | 8 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (217 | ) | — | (217 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (28 | ) | — | (28 | ) | |||||||||||||
Divestiture of businesses, net of cash divested | — | — | (5 | ) | — | (5 | ) | |||||||||||||
Intercompany dividend from subsidiary | — | 409 | — | (409 | ) | — | ||||||||||||||
Net increase in intercompany loans | — | (1,119 | ) | — | 1,119 | — | ||||||||||||||
(Increase) decrease in investment in subsidiaries | (495 | ) | 207 | 16 | 272 | — | ||||||||||||||
Net decrease in investments | — | — | 41 | — | 41 | |||||||||||||||
Increase in restricted cash | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Other | — | — | 27 | — | 27 | |||||||||||||||
Net cash used in investing activities | (495 | ) | (503 | ) | (566 | ) | 982 | (582 | ) | |||||||||||
Net cash used in discontinued investing activities | — | — | (1,215 | ) | 11 | (1,204 | ) | |||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Net (repayments) borrowings of debt | — | (3,039 | ) | 17 | — | (3,022 | ) | |||||||||||||
Proceeds from exercise of share options | — | — | 226 | — | 226 | |||||||||||||||
Dividends paid | (461 | ) | — | — | — | (461 | ) | |||||||||||||
Repurchase of common shares by treasury | — | — | (500 | ) | — | (500 | ) | |||||||||||||
Net intercompany loan borrowings (repayments) | 1,423 | — | (304 | ) | (1,119 | ) | — | |||||||||||||
Increase in equity from parent | — | — | 71 | (71 | ) | — | ||||||||||||||
Transfer from discontinued operations | — | — | 3,066 | 208 | 3,274 | |||||||||||||||
Other | — | — | (25 | ) | — | (25 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 962 | (3,039 | ) | 2,551 | (982 | ) | (508 | ) | ||||||||||||
Net cash used in discontinued financing activities | — | — | (448 | ) | 197 | (251 | ) | |||||||||||||
Effect of currency translation on cash | — | — | 4 | — | 4 | |||||||||||||||
Effect of currency translation on cash related to discontinued operations | — | — | 4 | — | 4 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | — | (159 | ) | 208 | 49 | ||||||||||||||
Less: net increase in cash and cash equivalents related to discontinued operations | — | — | 226 | 208 | 434 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,229 | — | 1,229 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 844 | $ | — | $ | 844 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Year Ended September 30, 2011 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (7,090 | ) | $ | 1,739 | $ | 6,012 | $ | — | $ | 661 | |||||||||
Net cash provided by discontinued operating activities | — | — | 1,767 | — | 1,767 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (371 | ) | — | (371 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 6 | — | 6 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (353 | ) | — | (353 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (33 | ) | — | (33 | ) | |||||||||||||
Divestiture of businesses, net of cash divested | 35 | — | 674 | — | 709 | |||||||||||||||
Intercompany dividend from subsidiary | 6,347 | 9 | — | (6,356 | ) | — | ||||||||||||||
Net increase in intercompany loans | — | (1,703 | ) | — | 1,703 | — | ||||||||||||||
Decrease (increase) in investment in subsidiaries | 4,773 | (9 | ) | (72 | ) | (4,692 | ) | — | ||||||||||||
Net decrease in investments | — | — | 26 | — | 26 | |||||||||||||||
Increase in restricted cash | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Other | — | (12 | ) | (25 | ) | — | (37 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 11,155 | (1,715 | ) | (156 | ) | (9,345 | ) | (61 | ) | |||||||||||
Net cash used in discontinued investing activities | — | — | (1,005 | ) | — | (1,005 | ) | |||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Net repayments of debt | — | (19 | ) | (17 | ) | — | (36 | ) | ||||||||||||
Proceeds from exercise of share options | — | — | 124 | — | 124 | |||||||||||||||
Dividends paid | (458 | ) | — | — | — | (458 | ) | |||||||||||||
Intercompany dividend to parent | — | — | (6,349 | ) | 6,349 | — | ||||||||||||||
Repurchase of common shares by treasury | (500 | ) | — | (800 | ) | — | (1,300 | ) | ||||||||||||
Net intercompany loan (repayments) borrowings | (3,126 | ) | — | 4,829 | (1,703 | ) | — | |||||||||||||
Decrease in equity from parent | — | — | (4,699 | ) | 4,699 | — | ||||||||||||||
Transfer from discontinued operations | — | — | 726 | — | 726 | |||||||||||||||
Other | 19 | (5 | ) | (8 | ) | — | 6 | |||||||||||||
Net cash used in financing activities | (4,065 | ) | (24 | ) | (6,194 | ) | 9,345 | (938 | ) | |||||||||||
Net cash used in discontinued financing activities | — | — | (793 | ) | — | (793 | ) | |||||||||||||
Effect of currency translation on cash | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Effect of currency translation on cash related to discontinued operations | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (375 | ) | — | (375 | ) | |||||||||||||
Less: net decrease in cash and cash equivalents related to discontinued operations | — | — | (33 | ) | — | (33 | ) | |||||||||||||
Decrease in cash and cash equivalents from deconsolidation of variable interest entity | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,581 | — | 1,581 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 1,229 | $ | — | $ | 1,229 | ||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Sep. 27, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On November 8, 2013, the Company acquired Westfire, Inc., a fire protection services company with operations in the United States, Chile and Peru. Westfire provides critical special-hazard suppression and detection applications in mining, telecommunications and other vertical markets and will be integrated with the NA Installation & Services and ROW Installation & Services segments. | |
On November 11, 2013, the Company's Board of Directors approved a cash dividend of $0.72 per common share, an $0.08 per common share increase, subject to shareholder approval at the annual general meeting in March 2014. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||||||||
TYCO INTERNATIONAL LTD. | ||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Description | Balance at | Additions | Acquisitions | Deductions(1) | Balance at | |||||||||||||||
Beginning | Charged to | (Divestitures) | End of | |||||||||||||||||
of Year | Income | and Other | Year | |||||||||||||||||
Accounts Receivable: | ||||||||||||||||||||
Year Ended September 30, 2011 | $ | 96 | $ | 24 | $ | (12 | ) | $ | (52 | ) | $ | 56 | ||||||||
Year Ended September 28, 2012 | 56 | 41 | 6 | (41 | ) | 62 | ||||||||||||||
Year Ended September 27, 2013 | 62 | 57 | 2 | (38 | ) | 83 | ||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||
(1) | Deductions represent uncollectible accounts written off, net of recoveries. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Sep. 27, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation—The Consolidated Financial Statements include the consolidated accounts of Tyco International Ltd., a corporation organized under the laws of Switzerland, and its subsidiaries (Tyco and all its subsidiaries, hereinafter collectively referred to as the "Company" or "Tyco"). The financial statements have been prepared in United States dollars ("USD") and in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain information described under article 663-663h of the Swiss Code of Obligations has been presented in the Company's Swiss statutory financial statements for the year ended September 27, 2013. Unless otherwise indicated, references to 2013, 2012 and 2011 are to Tyco's fiscal years ending September 27, 2013, September 28, 2012 and September 30, 2011, respectively. | ||
Effective September 28, 2012, Tyco completed the spin-offs of The ADT Corporation ("ADT") and Pentair Ltd. (formerly known as Tyco Flow Control International Ltd. ("Tyco Flow Control")), formerly the North American residential security and flow control businesses of Tyco, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders. Immediately following the spin-off, Pentair, Inc. was merged with a subsidiary of Tyco Flow Control in a tax-free, all-stock merger (the "Merger"), with Pentair Ltd. ("Pentair") succeeding Pentair Inc. as an independent publicly traded company. The distribution was made on September 28, 2012, to Tyco shareholders of record on September 17, 2012. Each Tyco shareholder received 0.50 of a common share of ADT and approximately 0.24 of a common share of Pentair for each Tyco common share held on the record date. The distribution was structured to be tax-free to Tyco shareholders except to the extent of cash received in lieu of fractional shares. The distributions, the Merger and related transactions are collectively referred to herein as the "2012 Separation". As a result of the distribution, the operations of Tyco's former flow control and North American residential security businesses are classified as discontinued operations in all periods prior to the 2012 Separation. | ||
After giving effect to the 2012 Separation, the Company operates and reports financial and operating information in the following three segments: North America Installation & Services ("NA Installation & Services"), Rest of World Installation & Services ("ROW Installation & Services") and Global Products. The Company also provides general corporate services to its segments which is reported as a fourth, non-operating segment, Corporate and Other. | ||
Effective June 29, 2007, Tyco completed the spin-offs of Covidien and TE Connectivity, formerly the Healthcare and Electronics businesses of Tyco, respectively, into separate, publicly traded companies (the "2007 Separation") in the form of a tax-free distribution to Tyco shareholders. | ||
In reporting periods prior to the first quarter of fiscal 2013, certain costs of product sales were misclassified as costs of services. There was no impact to previously reported net revenue, operating income, income from continuing operations, net income, earnings per share or cash flow. The Company has evaluated and concluded that the identified amounts were not material to any of its previously filed annual or interim financial statements as the effects in prior periods were not material. Although not material, corrections have been made to the relevant periods presented in the financial statements included herein. These corrections resulted in reductions of Cost of services with corresponding increases to Cost of product sales of $679 million and $651 million for the years ended September 28, 2012 and September 30, 2011, respectively. | ||
Principles of Consolidation | ' | |
Principles of Consolidation—Tyco conducts business through its operating subsidiaries. The Company consolidates companies in which it owns or controls more than fifty percent of the voting shares or has the ability to control through similar rights. Also, the Company consolidates variable interest entities ("VIE") in which the Company has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant. The VIEs which the Company consolidates, individually or in the aggregate, did not have a material impact on the Company's financial position, results of operations or cash flows. All intercompany transactions have been eliminated. The results of companies acquired or disposed of during the year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. | ||
The Company has a 52 or 53-week fiscal year that ends on the last Friday in September. Fiscal 2013 and 2012 were 52 week years which ended on September 27, 2013 and September 28, 2012, respectively. Fiscal 2011 was a 53-week year which ended on September 30, 2011. | ||
Use of Estimates | ' | |
Use of Estimates—The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenues and expenses. Significant estimates in these Consolidated Financial Statements include restructuring charges, allowances for doubtful accounts receivable, estimates of future cash flows associated with asset impairments, useful lives for depreciation and amortization, loss contingencies (including legal, environmental and asbestos reserves), insurance reserves, net realizable value of inventories, fair values of financial instruments, estimated contract revenue and related costs, income taxes and tax valuation allowances, and pension and postretirement employee benefit liabilities and expenses. Actual results could differ materially from these estimates. | ||
Revenue Recognition | ' | |
Revenue Recognition—The Company recognizes revenue principally on four types of transactions—sales of products, security systems, monitoring and maintenance services, and contract sales, including the installation of fire and security systems and other construction-related projects. | ||
Revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass. This is generally when the products reach the free-on-board shipping point, the sales price is fixed and determinable and collection is reasonably assured. | ||
Provisions for certain rebates, sales incentives, trade promotions, product returns and discounts to customers are accounted for as reductions in determining net revenue in the same period the related sales are recorded. These provisions are based on terms of arrangements with direct, indirect and other market participants. Rebates are estimated based on sales terms, historical experience and trend analysis. | ||
Sales of security monitoring systems may have multiple elements, including equipment, installation, monitoring services and maintenance agreements. The Company assesses its revenue arrangements to determine the appropriate units of accounting. When ownership of the system is transferred to the customer, each deliverable provided under the arrangement is considered a separate unit of accounting. Revenues associated with sale of equipment and related installations are recognized once delivery, installation and customer acceptance is completed, while the revenue for monitoring and maintenance services are recognized as services are rendered. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence ("VSOE") if available, Third Party Evidence ("TPE") if VSOE is not available, or estimated selling price if neither VSOE or TPE is available. Revenue recognized for equipment and installation is limited to the lesser of their allocated amounts under the estimated selling price hierarchy or the non-contingent up-front consideration received at the time of installation, since collection of future amounts under the arrangement with the customer is contingent upon the delivery of monitoring and maintenance services. While the Company does not expect situations where VSOE is not available for sales of security systems and services, if such cases were to arise the Company would follow the selling price hierarchy to allocate arrangement consideration. For transactions in which the Company retains ownership of the subscriber system asset, fees for monitoring and maintenance services are recognized on a straight-line basis over the contract term. Non-refundable fees received in connection with the initiation of a monitoring contract, along with associated direct and incremental selling costs, are deferred and amortized over the estimated life of the customer relationship. | ||
Revenue from the sale of services is recognized as services are rendered. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered and the associated deferred revenue is included in current liabilities or long-term liabilities, as appropriate. | ||
Contract sales for the installation of fire protection systems, large security intruder systems and other construction-related projects are recorded primarily under the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related total cost of the project at completion. The extent of progress toward completion is generally measured based on the ratio of actual cost incurred to total estimated cost at completion. Revisions to cost estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. Estimated warranty costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting. | ||
The Company recorded retainage receivables of $48 million and $49 million as of September 27, 2013 and September 28, 2012, respectively, of which $41 million were unbilled during both periods. The retainage provisions consist primarily of fire protection contracts which become due upon contract completion and acceptance. The Company expects approximately $36 million to be collected during fiscal 2014, which are reflected within accounts receivable on the Consolidated Balance Sheet as of September 27, 2013. | ||
Research and Development | ' | |
Research and Development—Research and development expenditures are expensed when incurred and are included in cost of product sales, which amounted to $174 million, $145 million and $129 million for 2013, 2012 and 2011, respectively, related to new product development. Research and development expenses include salaries, direct costs incurred and building and overhead expenses. | ||
Advertising | ' | |
Advertising—Advertising costs are expensed when incurred and are included in selling, general and administrative expenses, which amounted to $60 million, $39 million and $46 million for 2013, 2012 and 2011, respectively. | ||
Acquisition Costs | ' | |
Acquisition Costs—Costs incurred to acquire new businesses, new product lines or similar assets are expensed when incurred and are included in selling, general and administrative expenses. See Note 5. | ||
Translation of Foreign Currency | ' | |
Translation of Foreign Currency—For the Company's non-U.S. subsidiaries that account in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using period-end exchange rates. Revenue and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss in Tyco's shareholders' equity. | ||
Gains and losses resulting from foreign currency transactions and the impact of foreign currency derivatives related to operating activities are reflected in selling, general and administrative expenses. Through April 2011, the Company declared its dividends in Swiss francs. Any foreign exchange gains or losses arising from such were reflected in other expense, net in the Company's Consolidated Statement of Operations. Beginning in May 2011, the Company began making dividend payments out of contributed surplus in U.S. dollars. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents—All highly liquid investments with original maturities of three months or less from the time of purchase are considered to be cash equivalents. | ||
Allowance for Doubtful Accounts | ' | |
Allowance for Doubtful Accounts—The allowance for doubtful accounts receivable reflects the best estimate of probable losses inherent in Tyco's receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. | ||
Inventories | ' | |
Inventories—Inventories are recorded at the lower of cost (primarily first-in, first-out) or market value. | ||
Property, Plant and Equipment, Net | ' | |
Property, Plant and Equipment, Net—Property, Plant and Equipment, net is recorded at cost less accumulated depreciation. Depreciation expense for 2013, 2012 and 2011 was $328 million, $316 million and $323 million, respectively. Maintenance and repair expenditures are charged to expense when incurred. Except for pooled subscriber systems, depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows: | ||
Buildings and related improvements | Up to 50 years | |
Leasehold improvements | Lesser of remaining term of the lease or economic useful life | |
Subscriber systems | Accelerated method up to 15 years | |
Other machinery, equipment and furniture and fixtures | Up to 21 years | |
See below for discussion of depreciation method and estimated useful lives related to subscriber systems. | ||
Subscriber System Assets and Related Deferred Revenue Accounts | ' | |
Subscriber System Assets, Dealer Intangibles and Related Deferred Revenue Accounts—The Company considers assets related to the acquisition of new customers in its electronic security business in three asset categories: internally generated residential subscriber systems outside of North America, internally generated commercial subscriber systems (collectively referred to as subscriber system assets) and customer accounts acquired through the ADT dealer program, primarily outside of North America (referred to as dealer intangibles). Subscriber system assets include installed property, plant and equipment for which Tyco retains ownership and deferred costs directly related to the customer acquisition and system installation. Subscriber system assets represent capitalized equipment (e.g. security control panels, touchpad, motion detectors, window sensors, and other equipment) and installation costs associated with electronic security monitoring arrangements under which the Company retains ownership of the security system assets in a customer's place of business or, outside of North America, residence. Installation costs represent costs incurred to prepare the asset for its intended use. The Company pays property taxes on the subscriber system assets and upon customer termination, may retrieve such assets. These assets embody a probable future economic benefit as they generate future monitoring revenue for the Company. | ||
Costs related to the subscriber system equipment and installation are categorized as property, plant and equipment rather than deferred costs. Deferred costs associated with subscriber system assets represent direct and incremental selling expenses (i.e. commissions) related to acquiring the customer. Commissions related to up-front consideration paid by customers in connection with the establishment of the monitoring arrangement are determined based on a percentage of the up-front fees and do not exceed deferred revenue. Such deferred costs are recorded as non-current assets and are included in the other assets line item within the Consolidated Balance Sheets. | ||
Subscriber system assets and any deferred revenue resulting from the customer acquisition are accounted for over the expected life of the subscriber. In certain geographical areas where the Company has a large number of customers that behave in a similar manner over time, the Company accounts for subscriber system assets and related deferred revenue using pools, with separate pools for the components of subscriber system assets and any related deferred revenue based on the same month and year of acquisition. The Company depreciates its pooled subscriber system assets and related deferred revenue using an accelerated method with lives up to 15 years. The accelerated method utilizes declining balance rates based on geographical area ranging from 135% to 360% for commercial subscriber pools and dealer intangibles and converts to a straight-line methodology when the resulting depreciation charge is greater than that from the accelerated method. The Company uses a straight-line method with a 14-year life for non-pooled subscriber system assets (primarily in Europe, Latin America and Asia) and related deferred revenue, with remaining balances written off upon customer termination. | ||
Dealer and Other Amortizable Intangible Assets, Net | ' | |
Certain contracts and related customer relationships result from purchasing residential security monitoring contracts from an external network of independent dealers who operate under the ADT dealer program, primarily outside of North America. Acquired contracts and related customer relationships are recorded at their contractually determined purchase price. | ||
During the first 6 months (12 months in certain circumstances) after the purchase of the customer contract, any cancellation of monitoring service, including those that result from customer payment delinquencies, results in a chargeback by the Company to the dealer for the full amount of the contract purchase price. The Company records the amount charged back to the dealer as a reduction of the previously recorded intangible asset. | ||
Intangible assets arising from the ADT dealer program described above are amortized in pools determined by the same month and year of contract acquisition on an accelerated basis over the period and pattern of economic benefit that is expected to be obtained from the customer relationship. | ||
The estimated useful life of dealer intangibles ranges from 12 to 15 years. The Company amortizes dealer intangible assets on an accelerated basis. | ||
Other Amortizable Intangible Assets, Net—Intangible assets primarily include contracts and related customer relationships (dealer accounts discussed above) and intellectual property. | ||
Other contracts and related customer relationships, as well as intellectual property consisting primarily of patents, trademarks, copyrights and unpatented technology, are amortized on a straight-line basis over 4 to 40 years. The Company evaluates the amortization methods and remaining useful lives of intangible assets on a periodic basis to determine whether events and circumstances warrant a revision to the amortization method or remaining useful lives. | ||
Long-Lived Asset Impairments | ' | |
Long-Lived Asset Impairments—The Company reviews long-lived assets, including property, plant and equipment and amortizable intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the asset may not be fully recoverable. Tyco performs undiscounted operating cash flow analyses to determine if impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, Tyco groups assets and liabilities at the lowest level for which cash flows are separately identified. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. | ||
Goodwill and Indefinite Lived Intangible Asset Impairments | ' | |
Goodwill and Indefinite-Lived Intangible Asset Impairments—Goodwill and indefinite-lived intangible assets are assessed for impairment annually and more frequently if triggering events occur (see Note 8). The Company performed its annual impairment tests for goodwill and indefinite-lived intangible assets on the first day of the fourth quarter of 2013. In performing these assessments, management relies on and considers a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable market transactions (to the extent available), other market data and the Company's overall market capitalization. There are inherent uncertainties related to these factors which require judgment in applying them to the analysis of goodwill and indefinite-lived intangible assets for impairment. | ||
When testing for goodwill impairment, the Company first compares the fair value of a reporting unit with its carrying amount. Fair value for the goodwill impairment test is determined utilizing a discounted cash flow analysis based on the Company's future budgets discounted using market participants' weighted-average cost of capital and market indicators of terminal year cash flows. Other valuation methods are used to corroborate the discounted cash flow method. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered potentially impaired and further tests are performed to measure the amount of impairment loss. In the second step of the goodwill impairment test, the Company compares the implied fair value of the reporting unit's goodwill with the carrying amount of the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess of the carrying amount of goodwill over its implied fair value. The implied fair value of goodwill is determined in the same manner that the amount of goodwill recognized in a business combination is determined. The Company allocates the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities represents the implied fair value of goodwill. | ||
Indefinite-lived intangible assets consisting primarily of trade names and franchise rights are tested for impairment using either a relief-from-royalty method or excess earnings method, respectively. | ||
Investments | ' | |
Investments—The Company invests in debt and equity securities. Long-term investments in marketable equity securities that represent less than twenty percent ownership are marked to market at the end of each accounting period. Unrealized gains and losses are credited or charged to accumulated other comprehensive loss within Tyco shareholders' equity for available for sale securities unless an unrealized loss is deemed to be other than temporary, in which case such loss is charged to earnings. Management determines the proper classification of investments in debt obligations with fixed maturities and equity securities for which there is a readily determinable market value at the time of purchase and reevaluates such classifications as of each balance sheet date. Realized gains and losses on sales of investments are included in the Consolidated Statements of Operations. | ||
Other equity investments for which the Company does not have the ability to exercise significant influence and for which there is not a readily determinable market value are accounted for under the cost method of accounting. Each reporting period, the Company evaluates the carrying value of its investments accounted for under the cost method of accounting, such that they are recorded at the lower of cost or estimated net realizable value. For equity investments in which the Company exerts significant influence over operating and financial policies but does not control, the equity method of accounting is used. The Company's share of net income or losses of equity investments is included in the Consolidated Statements of Operations. | ||
Product Warranty | ' | |
Product Warranty—The Company records estimated product warranty costs at the time of sale. Products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Generally, product warranties are implicit in the sale; however, the customer may purchase an extended warranty. However, in most instances the warranty is either negotiated in the contract or sold as a separate component. The warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. | ||
Environmental Costs | ' | |
Environmental Costs—The Company is subject to laws and regulations relating to protecting the environment. Tyco provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. | ||
Income Taxes | ' | |
Income Taxes—Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carryforwards, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, including consideration of tax planning strategies, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. | ||
Asbestos - Related Contingencies and Insurance Receivables | ' | |
Asbestos-Related Contingencies and Insurance Receivables—The Company and certain of its subsidiaries along with numerous other companies are named as defendants in personal injury lawsuits based on alleged exposure to asbestos-containing materials. The Company's estimate of the liability and corresponding insurance recovery for pending and future claims and defense costs is based on the Company's historical claim experience, and estimates of the number and resolution cost of potential future claims that may be filed. The Company's legal strategy for resolving claims also impacts these estimates. The Company considers various trends and developments in evaluating the period of time (the look-back period) over which historical claim and settlement experience is used to estimate and value claims reasonably projected to be made in the future during a defined period of time (the look-forward period). On a quarterly basis, the Company assesses the sufficiency of its estimated liability for pending and future claims and defense costs by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, the Company considers additional quantitative and qualitative factors such as changes in legislation, the legal environment, and the Company's defense strategy. The Company also evaluates the recoverability of its insurance receivable on a quarterly basis. The Company evaluates all of these factors and determines whether a change in the estimate of its liability for pending and future claims and defense costs or insurance receivable is warranted. | ||
In connection with the recognition of liabilities for asbestos-related matters, the Company records asbestos-related insurance recoveries that are probable. The Company's estimate of asbestos-related insurance recoveries represents estimated amounts due to the Company for previously paid and settled claims and the probable reimbursements relating to its estimated liability for pending and future claims. In determining the amount of insurance recoverable, the Company considers a number of factors, including available insurance, allocation methodologies, solvency and creditworthiness of the insurers. See Note 13. | ||
Insurable Liabilities | ' | |
Insurable Liabilities—The Company records liabilities for its workers' compensation, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated by utilizing actuarial valuations based upon historical claims experience. Certain insurable liabilities, such as workers' compensation, are discounted using a risk-free rate of return when the pattern and timing of the future obligation is reliably determinable. The impact of the discount on the Consolidated Balance Sheets was to reduce the obligation by $14 million to $58 million as of September 27, 2013 and by $15 million to $58 million as of September 28, 2012. The Company records receivables from third party insurers when recovery has been determined to be probable. The Company maintains captive insurance companies to manage certain of its insurable liabilities. The captive insurance companies hold certain investment accounts for the purpose of providing collateral for the Company's insurable liabilities. See Note 12. | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments—Authoritative guidance for fair value measurements establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized as follows: | ||
• | Level 1—inputs are based upon quoted prices (unadjusted) in active markets for identical assets or liabilities which are accessible as of the measurement date. | |
• | Level 2—inputs are based upon quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-derived valuations for the asset or liability that are derived principally from or corroborated by market data for which the primary inputs are observable, including forward interest rates, yield curves, credit risk and exchange rates. | |
• | Level 3—inputs for the valuations are unobservable and are based on management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques such as option pricing models and discounted cash flow models. | |
Financial Instruments | ' | |
Financial Instruments—The Company may use interest rate swaps, currency swaps, forward and option contracts and commodity swaps to manage risks generally associated with interest rate risk, foreign exchange risk and commodity prices. Derivatives used for hedging purposes are designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract are highly effective at offsetting the changes in the fair value of the underlying hedged item at inception of the hedge and are expected to remain highly effective over the life of the hedge contract. | ||
All derivative financial instruments are reported on the Consolidated Balance Sheets at fair value. Derivatives used to economically hedge foreign currency denominated balance sheet items related to operating activities are reported in selling, general and administrative expenses along with offsetting transaction gains and losses on the items being hedged. Derivatives used to economically hedge dividends declared in Swiss francs through April of 2011 were reported in the Company's Consolidated Statements of Operations as part of other expense, net along with offsetting transaction gains and losses on the items being hedged. Beginning in May of 2011, the Company no longer declared dividends in Swiss francs. Derivatives used to manage the exposure to changes in interest rates are reported in interest expense along with offsetting transaction gains and losses on the items being hedged. Gains and losses on net investment hedges are included in the cumulative translation adjustment component of accumulated other comprehensive loss to the extent they are effective. Gains and losses on derivatives designated as cash flow hedges are recorded in accumulated other comprehensive loss and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The Company classifies cash flows associated with the settlement of derivatives consistent with the nature of the transaction being hedged. The ineffective portion of all hedges, if any, is recognized currently in earnings as noted above. Instruments that do not qualify for hedge accounting are marked to market with changes recognized in current earnings. | ||
Redeemable Noncontrolling Interests | ' | |
Redeemable Noncontrolling Interests—Noncontrolling interest with redemption features, such as put options, that are not solely within the Company's control are considered redeemable noncontrolling interests. The Company accretes changes in the redemption value through noncontrolling interest in subsidiaries net income attributable to the noncontrolling interest over the period from the date of issuance to the earliest redemption date. Redeemable noncontrolling interest is considered to be temporary equity and is therefore reported in the mezzanine section between liabilities and equity on the Company's Consolidated Balance Sheet at the greater of the initial carrying amount increased or decreased for the noncontrolling interest's share of net income or loss or its redemption value. | ||
Recently Adopted and Issued Accounting Pronouncements | ' | |
Recently Adopted Accounting Pronouncements—In June 2011, the Financial Accounting Standards Board ("FASB") issued authoritative guidance for the presentation of comprehensive income. The guidance amended the reporting of Other Comprehensive Income ("OCI") by eliminating the option to present OCI as part of the Consolidated Statement of Shareholders' Equity. The amendment will not impact the accounting for OCI, but only its presentation in the Company's Consolidated Financial Statements. The guidance requires that items of net income and OCI be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements which include total net income and its components, consecutively followed by total OCI and its components to arrive at total comprehensive income. In December 2011, the FASB issued authoritative guidance to defer the effective date for those aspects of the guidance relating to the presentation of reclassification adjustments out of Accumulated other comprehensive income ("AOCI") by component. The guidance, other than as it relates to the presentation of reclassification adjustments, became effective for Tyco in the first quarter of fiscal 2013 and was applied retrospectively to prior periods. See Note 15. | ||
In September 2011, the FASB issued authoritative guidance which amends the process of testing goodwill for impairment. Additionally, in July 2012, the FASB issued authoritative guidance which similarly amended the process of testing indefinite-lived intangible assets for impairment. The guidance permits an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (defined as having a likelihood of more than fifty percent) that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount. If an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, performing the traditional two step goodwill impairment test is unnecessary. If an entity concludes otherwise, it would be required to perform the first step of the two step goodwill impairment test. If the carrying amount of the reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test. If an entity determines it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, then the entity is not required to take further action. If an entity concludes otherwise, it would be required to perform a quantitative impairment test by calculating the fair value of the asset and comparing it with its carrying amount. If the carrying amount of the asset exceeds its fair value, then the entity shall recognize an impairment loss in an amount equal to that excess. However, an entity has the option to bypass the qualitative assessment in any period and proceed directly to the quantitative assessment. The guidance became effective for Tyco for interim impairment testing beginning in the first quarter of fiscal 2013. | ||
Recently Issued Accounting Pronouncements—In January 2013, the FASB issued authoritative guidance clarifying the scope of disclosures about offsetting assets and liabilities. The guidance clarifies that the scope of the disclosures applies to derivatives accounted for in accordance with authoritative guidance for derivatives and hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that either offset or are subject to an enforceable master netting agreement or similar agreement. The guidance is applied retrospectively and will be effective for Tyco in the first fiscal quarter of fiscal 2014. The Company does not expect the guidance to have a significant impact on its disclosures. | ||
In February 2013, the FASB issued authoritative guidance for the reporting of amounts reclassified out of AOCI. The amendment will not change the current requirements for reporting net income or OCI in the financial statements. The guidance requires the presentation, either on the face of the statement where net income is presented or in the notes, of the significant reclassifications out of AOCI by the respective line items of net income if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, the amendment requires a cross-reference to other disclosures under U.S. GAAP that provide additional detail about those amounts. The guidance will be effective for Tyco in the first quarter of fiscal 2014. The Company does not expect the guidance to have a significant impact on its disclosures. | ||
In March 2013, the FASB issued authoritative guidance on the accounting for the cumulative translation adjustment ("CTA") when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. The guidance requires that the parent release any CTA into net income when the parent ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity which results in a substantially complete liquidation of the foreign entity; when the sale of an investment in a foreign entity results in the loss of a controlling financial interest; or where an acquirer obtains control of an acquiree in which it had an equity interest immediately before the acquisition date. The guidance does not change the requirement to release a pro rata portion of the CTA into net income upon a partial sale of an equity method investment that is a foreign entity. The guidance will be effective for Tyco in the first quarter of fiscal 2015, with early adoption permitted. The Company is currently assessing the timing of its adoption along with what impact, if any, the guidance will have upon adoption. | ||
In July 2013, the FASB issued authoritative guidance for the presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a NOL carryforward, a similar tax loss, or a tax credit carryforward. If the NOL carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction or the tax law of the jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with deferred tax assets. This guidance does not require any additional recurring disclosures and will be effective for Tyco the first fiscal quarter of fiscal 2015. The Company is currently assessing the impact, if any, the guidance will have upon adoption. |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Sep. 27, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Estimated useful lives for property, plant and equipment (other than pooled subscriber systems) | ' | |
Except for pooled subscriber systems, depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows: | ||
Buildings and related improvements | Up to 50 years | |
Leasehold improvements | Lesser of remaining term of the lease or economic useful life | |
Subscriber systems | Accelerated method up to 15 years | |
Other machinery, equipment and furniture and fixtures | Up to 21 years |
2012_Separation_Transaction_Ta
2012 Separation Transaction (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Extraordinary and Unusual Items [Abstract] | ' | |||||||||||||||||||||||
Summary of components of Separation Charges incurred within continuing operations and discontinued operations | ' | |||||||||||||||||||||||
The components of the Separation Charges incurred within continuing operations and discontinued operations consisted of the following ($ in millions): | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | |||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||||||||||||||
Continuing | Discontinued | Total | Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | Operations | Operations | |||||||||||||||||||||
Loss on extinguishment of debt (See Note 10) | $ | — | $ | — | $ | — | $ | 453 | $ | — | $ | 453 | ||||||||||||
Professional fees | 5 | 1 | 6 | — | 191 | 191 | ||||||||||||||||||
Non-cash impairment charges | — | — | — | 23 | — | 23 | ||||||||||||||||||
Information technology related costs | 10 | — | 10 | — | 30 | 30 | ||||||||||||||||||
Employee compensation costs | 3 | 1 | 4 | 74 | 17 | 91 | ||||||||||||||||||
Marketing costs | 40 | — | 40 | 3 | 5 | 8 | ||||||||||||||||||
Interest expense | — | — | — | — | 3 | 3 | ||||||||||||||||||
Other costs | 11 | (10 | ) | 1 | 8 | 32 | 40 | |||||||||||||||||
Total Pre-Tax Separation Charges | 69 | (8 | ) | 61 | 561 | 278 | 839 | |||||||||||||||||
Tax-related separation charges | 22 | — | 22 | 266 | (2 | ) | 264 | |||||||||||||||||
Tax benefit on Pre-Tax Separation Charges | (13 | ) | — | (13 | ) | (5 | ) | (5 | ) | (10 | ) | |||||||||||||
Total Separation Charges, net of tax benefit | $ | 78 | $ | (8 | ) | $ | 70 | $ | 822 | $ | 271 | $ | 1,093 | |||||||||||
Summary of Separation Charges were classified in continuing operations within the entity's consolidated Statement of Operations | ' | |||||||||||||||||||||||
Separation Charges were classified in continuing operations within the Company's Consolidated Statement of Operations as follows ($ in millions): | ||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | |||||||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | $ | 61 | $ | 4 | ||||||||||||||||||||
Separation costs | 8 | 71 | ||||||||||||||||||||||
Restructuring, asset impairment and divestiture charges (gains), net | — | 33 | ||||||||||||||||||||||
Other expense, net | — | 453 | ||||||||||||||||||||||
Total | $ | 69 | $ | 561 | ||||||||||||||||||||
Divestitures_Tables
Divestitures (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Schedule of income statement information for discontinued operations and balance sheet information for pending divestitures | ' | |||||||||||
The components of income from discontinued operations, net of income taxes are as follows ($ in millions): | ||||||||||||
For the Years Ended | ||||||||||||
September 27, | September 28, | September 30, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Net revenue | $ | — | $ | 7,148 | $ | 6,752 | ||||||
Pre-tax income from discontinued operations | $ | — | $ | 1,208 | $ | 1,145 | ||||||
Pre-tax separation charges included within discontinued operations (See Note 2) | 8 | (278 | ) | (24 | ) | |||||||
Pre-tax gain on sale of discontinued operations | — | 4 | 170 | |||||||||
Income tax benefit (expense) | 1 | (130 | ) | (189 | ) | |||||||
Income from discontinued operations, net of income taxes | $ | 9 | $ | 804 | $ | 1,102 | ||||||
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment Charges, Net (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Restructuring and asset impairment charges, net | ' | |||||||||||
The Company recorded restructuring and asset impairment charges by action and Consolidated Statement of Operations classification as follows ($ in millions): | ||||||||||||
For the Years Ended | ||||||||||||
September 27, 2013 | September 28, 2012 | September 30, 2011 | ||||||||||
2013 actions | $ | 99 | $ | — | $ | — | ||||||
2012 actions | 3 | 94 | — | |||||||||
2011 and prior actions | 12 | 10 | 78 | |||||||||
Total restructuring and asset impairment charges, net | $ | 114 | $ | 104 | $ | 78 | ||||||
Charges reflected in cost of sales | — | — | 2 | |||||||||
Charges reflected in SG&A | — | — | 1 | |||||||||
Charges reflected in restructuring, asset impairments and divestiture charges (gains), net | $ | 114 | $ | 104 | $ | 75 | ||||||
Disclosure of the restructuring reserve by Balance Sheet classification | ' | |||||||||||
As of September 27, 2013 and September 28, 2012 , restructuring reserves related to all actions were included in the Company's Consolidated Balance Sheets as follows ($ in millions): | ||||||||||||
As of | ||||||||||||
September 27, | September 28, | |||||||||||
2013 | 2012 | |||||||||||
Accrued and other current liabilities | $ | 113 | $ | 84 | ||||||||
Other liabilities | 18 | 19 | ||||||||||
Total | $ | 131 | $ | 103 | ||||||||
2013 actions | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Restructuring and asset impairment charges, net | ' | |||||||||||
Restructuring and asset impairment charges, net, during the year ended September 27, 2013 related to the 2013 actions are as follows ($ in millions): | ||||||||||||
For the Year Ended | ||||||||||||
September 27, 2013 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | 34 | $ | 1 | $ | 35 | ||||||
ROW Installation & Services | 46 | 4 | 50 | |||||||||
Global Products | 9 | 2 | 11 | |||||||||
Corporate and Other | 3 | — | 3 | |||||||||
Total | $ | 92 | $ | 7 | $ | 99 | ||||||
Restructuring reserves roll forward | ' | |||||||||||
The rollforward of the reserves from September 28, 2012 to September 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 28, 2012 | $ | — | ||||||||||
Charges | 102 | |||||||||||
Reversals | (4 | ) | ||||||||||
Utilization | (29 | ) | ||||||||||
Transfer | (1 | ) | ||||||||||
Balance as of September 27, 2013 | $ | 68 | ||||||||||
2012 actions | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Restructuring and asset impairment charges, net | ' | |||||||||||
n millions): | ||||||||||||
For the Year Ended | ||||||||||||
September 27, 2013 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
ROW Installation & Services | $ | 3 | $ | 1 | $ | 4 | ||||||
Global Products | (1 | ) | — | (1 | ) | |||||||
Total | $ | 2 | $ | 1 | $ | 3 | ||||||
For the Year Ended | ||||||||||||
September 28, 2012 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits(1) | Charges(2) | |||||||||||
NA Installation & Services | $ | 10 | $ | 34 | $ | 44 | ||||||
ROW Installation & Services | 22 | 5 | 27 | |||||||||
Global Products | 7 | 3 | 10 | |||||||||
Corporate and Other | 9 | 4 | 13 | |||||||||
Total | $ | 48 | $ | 46 | $ | 94 | ||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Includes $6 million of charges for the year ended September 28, 2012 related to the 2012 Separation recorded by Corporate and Other. | |||||||||||
(2) | Includes $20 million, $1 million and $2 million of asset impairment charges recorded by NA Installation & Services, ROW Installation & Services and Global Products, respectively, for the year ended September 28, 2012 related to the 2012 Separation. Includes $4 million of other restructuring charges recorded by Corporate and Other for the year ended September 28, 2012 related to the 2012 Separation. | |||||||||||
Restructuring and asset impairment charges, net, incurred cumulative to date from initiation of the 2012 actions are as follows ($ i | ||||||||||||
2012 Actions | ||||||||||||
Restructuring and asset impairment charges, net, during the years ended September 27, 2013 and September 28, 2012 related to the 2012 actions are as follows ($ i | ||||||||||||
Restructuring reserves roll forward | ' | |||||||||||
The rollforward of the reserves from September 28, 2012 to September 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 28, 2012 | $ | 38 | ||||||||||
Charges | 8 | |||||||||||
Reversals | (5 | ) | ||||||||||
Utilization | (25 | ) | ||||||||||
Currency translation | (1 | ) | ||||||||||
Balance as of September 27, 2013 | $ | 15 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Significant components of the income tax provision | ' | |||||||||||||||
Significant components of the income tax provision for 2013, 2012 and 2011 are as follows ($ in millions): | ||||||||||||||||
For the Years Ended | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
Current: | ||||||||||||||||
United States: | ||||||||||||||||
Federal | $ | 14 | $ | (4 | ) | $ | (4 | ) | ||||||||
State | 8 | 6 | (2 | ) | ||||||||||||
Non U.S. | 95 | 172 | 144 | |||||||||||||
Current income tax provision | $ | 117 | $ | 174 | $ | 138 | ||||||||||
Deferred: | ||||||||||||||||
United States: | ||||||||||||||||
Federal | $ | (12 | ) | $ | (10 | ) | $ | (17 | ) | |||||||
State | 5 | (2 | ) | (12 | ) | |||||||||||
Non U.S. | 15 | 186 | 25 | |||||||||||||
Deferred income tax provision | 8 | 174 | (4 | ) | ||||||||||||
$ | 125 | $ | 348 | $ | 134 | |||||||||||
Reconciliation between U.S. federal income taxes at the statutory rate and provision for income taxes on continuing operations | ' | |||||||||||||||
The reconciliation between U.S. federal income taxes at the statutory rate and the Company's provision for income taxes on continuing operations for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 is as follows ($ in millions): | ||||||||||||||||
For the Years Ended | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
Notional U.S. federal income tax expense at the statutory rate | $ | 245 | $ | 15 | $ | 267 | ||||||||||
Adjustments to reconcile to the income tax provision: | ||||||||||||||||
U.S. state income tax provision, net | (3 | ) | 6 | 10 | ||||||||||||
Non U.S. net earnings(1) | (211 | ) | 4 | (108 | ) | |||||||||||
Nondeductible charges | 79 | 61 | (18 | ) | ||||||||||||
Valuation allowance | 4 | 235 | (3 | ) | ||||||||||||
Other | 11 | 27 | (14 | ) | ||||||||||||
Provision for income taxes | $ | 125 | $ | 348 | $ | 134 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(1) | Excludes nondeductible charges and other items which are broken out separately in the table. | |||||||||||||||
Components of the net deferred income tax asset | ' | |||||||||||||||
The components of the net deferred income tax asset as of September 27, 2013 and September 28, 2012 are as follows ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||
Deferred tax assets: | ||||||||||||||||
Accrued liabilities and reserves | $ | 289 | $ | 56 | ||||||||||||
Tax loss and credit carryforwards | 2,434 | 2,240 | ||||||||||||||
Postretirement benefits | 191 | 261 | ||||||||||||||
Deferred revenue | 114 | 138 | ||||||||||||||
Other | 102 | 380 | ||||||||||||||
3,130 | 3,075 | |||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Property, plant and equipment | (192 | ) | (177 | ) | ||||||||||||
Intangibles assets | (568 | ) | (500 | ) | ||||||||||||
Other | (167 | ) | (101 | ) | ||||||||||||
(927 | ) | (778 | ) | |||||||||||||
Net deferred tax asset before valuation allowance | 2,203 | 2,297 | ||||||||||||||
Valuation allowance | (1,950 | ) | (1,826 | ) | ||||||||||||
Net deferred tax asset | $ | 253 | $ | 471 | ||||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefit | ' | |||||||||||||||
A rollforward of unrecognized tax benefits as of September 27, 2013, September 28, 2012 and September 30, 2011 is as follows ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
Balance as of beginning of year | $ | 121 | $ | 145 | $ | 137 | ||||||||||
Additions based on tax positions related to the current year | 137 | 18 | 9 | |||||||||||||
Additions based on tax positions related to prior years | 7 | 7 | 31 | |||||||||||||
Reductions based on tax positions related to prior years | (6 | ) | (38 | ) | (28 | ) | ||||||||||
Reductions related to settlements | — | (1 | ) | (4 | ) | |||||||||||
Reductions related to lapse of the applicable statute of limitations | (2 | ) | (3 | ) | (6 | ) | ||||||||||
Foreign currency translation adjustments | — | (7 | ) | 6 | ||||||||||||
Balance as of end of year | $ | 257 | $ | 121 | $ | 145 | ||||||||||
Disclosure of income tax examinations | ' | |||||||||||||||
Open tax years in significant jurisdictions are as follows: | ||||||||||||||||
Jurisdiction | Years | |||||||||||||||
Open To Audit | ||||||||||||||||
Australia | 2004-2012 | |||||||||||||||
Canada | 2002-2012 | |||||||||||||||
Germany | 2005-2012 | |||||||||||||||
South Korea | 2006-2012 | |||||||||||||||
Switzerland | 2003-2012 | |||||||||||||||
United Kingdom | 2011-2012 | |||||||||||||||
United States | 1997-2012 | |||||||||||||||
Summary of net receivables and liabilities related to the 2012 and 2007 Tax Sharing Agreements | ' | |||||||||||||||
The receivables and liabilities related to the 2012 and 2007 Tax Sharing Agreements as of September 27, 2013 and September 28, 2012 are as follows ($ in millions): | ||||||||||||||||
2012 Tax Sharing Agreement | 2007 Tax Sharing Agreement | |||||||||||||||
As of | As of | As of | As of | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net receivable: | ||||||||||||||||
Prepaid expenses and other current assets | $ | — | $ | — | $ | — | $ | 9 | ||||||||
Other assets | — | — | 67 | 66 | ||||||||||||
— | — | 67 | 75 | |||||||||||||
Tax sharing agreement related liabilities | ||||||||||||||||
Accrued and other current liabilities | (33 | ) | — | (130 | ) | (14 | ) | |||||||||
Other liabilities | (36 | ) | (71 | ) | (254 | ) | (394 | ) | ||||||||
(69 | ) | (71 | ) | (384 | ) | (408 | ) | |||||||||
Net liability | $ | (69 | ) | $ | (71 | ) | $ | (317 | ) | $ | (333 | ) | ||||
Income (loss) in conjunction with Tax Sharing Agreements | ' | |||||||||||||||
The Company recorded income (loss) in conjunction with the 2012 and 2007 Tax Sharing Agreements for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 as follows ($ in millions): | ||||||||||||||||
For the Years Ended | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | ||||||||||||||
(Expense)/income | ||||||||||||||||
2007 Tax Sharing Agreement | $ | — | $ | (4 | ) | $ | (7 | ) | ||||||||
2012 Tax Sharing Agreement | (32 | ) | — | NA | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||||||||||
Basic and diluted earnings per share | ' | ||||||||||||||||||||||||||||||||
The reconciliations between basic and diluted earnings per share attributable to Tyco common shareholders for 2013, 2012 and 2011 are as follows (in millions, except per share data): | |||||||||||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||||||||||
27-Sep-13 | 28-Sep-12 | 30-Sep-11 | |||||||||||||||||||||||||||||||
Income | Shares | Per | (Loss) | Shares | Per | Income | Shares | Per | |||||||||||||||||||||||||
Share | Share | Share | |||||||||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||||||
Basic earnings per share attributable to Tyco common shareholders: | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 527 | 465 | $ | 1.14 | $ | (332 | ) | 463 | $ | (0.72 | ) | $ | 617 | 474 | $ | 1.3 | ||||||||||||||||
Share options and restricted share awards | 7 | 5 | |||||||||||||||||||||||||||||||
Diluted earnings per share attributable to Tyco common shareholders: | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments | $ | 527 | 472 | $ | 1.12 | $ | (332 | ) | 463 | $ | (0.72 | ) | $ | 617 | 479 | $ | 1.29 | ||||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Rollforward of goodwill by segment | ' | |||||||||||||||
The changes in the carrying amount of goodwill by segment for 2013 and 2012 are as follows ($ in millions): | ||||||||||||||||
NA Installation | ROW | Global | Total | |||||||||||||
& Services | Installation | Products | ||||||||||||||
& Services | ||||||||||||||||
As of September 30, 2011 | ||||||||||||||||
Gross Goodwill | $ | 2,119 | $ | 2,241 | $ | 1,629 | $ | 5,989 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | 1,993 | 1,173 | 1,062 | 4,228 | ||||||||||||
Acquisitions/ Purchase Accounting Adjustments | — | 38 | 66 | 104 | ||||||||||||
Currency Translation | 8 | 26 | 1 | 35 | ||||||||||||
As of September 28, 2012 | ||||||||||||||||
Gross Goodwill | $ | 2,127 | $ | 2,305 | $ | 1,696 | $ | 6,128 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | 2,001 | 1,237 | 1,129 | 4,367 | ||||||||||||
Acquisitions/ Purchase Accounting Adjustments | 24 | 77 | 90 | 191 | ||||||||||||
Transfers | (39 | ) | — | 39 | — | |||||||||||
Currency Translation | (8 | ) | (30 | ) | (1 | ) | (39 | ) | ||||||||
As of September 27, 2013 | ||||||||||||||||
Gross Goodwill | $ | 2,104 | $ | 2,352 | $ | 1,824 | $ | 6,280 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | $ | 1,978 | $ | 1,284 | $ | 1,257 | $ | 4,519 | ||||||||
Schedule of intangible assets | ' | |||||||||||||||
The following table sets forth the gross carrying amount and accumulated amortization of the Company's intangible assets as of September 27, 2013 and September 28, 2012 ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Sep-13 | 28-Sep-12 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
Amortizable: | ||||||||||||||||
Contracts and related customer relationships | $ | 1,531 | $ | 1,199 | $ | 1,604 | $ | 1,245 | ||||||||
Intellectual property | 623 | 477 | 552 | 468 | ||||||||||||
Other | 40 | 13 | 36 | 9 | ||||||||||||
Total | $ | 2,194 | $ | 1,689 | $ | 2,192 | $ | 1,722 | ||||||||
Non-Amortizable: | ||||||||||||||||
Intellectual property | $ | 223 | $ | 224 | ||||||||||||
Franchise rights | 76 | 77 | ||||||||||||||
Total | $ | 299 | $ | 301 | ||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Carrying value of debt | ' | |||||||
Debt as of September 27, 2013 and September 28, 2012 is as follows ($ in millions): | ||||||||
As of | As of | |||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
3.375% public notes due 2015 | 258 | 257 | ||||||
3.75% public notes due 2018 | 67 | 67 | ||||||
8.5% public notes due 2019 | 364 | 364 | ||||||
7.0% public notes due 2019 | 246 | 247 | ||||||
6.875% public notes due 2021 | 466 | 466 | ||||||
4.625% public notes due 2023 | 42 | 42 | ||||||
Other(1)(2) | 20 | 48 | ||||||
Total debt | 1,463 | 1,491 | ||||||
Less: current portion | 20 | 10 | ||||||
Long-term debt | $ | 1,443 | $ | 1,481 | ||||
_______________________________________________________________________________ | ||||||||
(1) | $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of September 27, 2013. | |||||||
(2) | $10 million of the amount shown as other, comprises the current portion of the Company's total debt as of September 28, 2012. | |||||||
Summary of outstanding aggregate principal redeemed | ' | |||||||
During the fourth quarter of 2012, in connection with the Separation, Tyco and its finance subsidiary, Tyco International Finance S.A. ("TIFSA"), redeemed various debt securities maturing from 2013 to 2023 issued by TIFSA and/or Tyco, in an aggregate principal amount of $2.6 billion as set forth below ($ in millions): | ||||||||
6.0% public notes due 2013 | $ | 656 | ||||||
4.125% public notes due 2014 | 500 | |||||||
3.375% public notes due 2015 | 242 | |||||||
3.750% public notes due 2018 | 183 | |||||||
8.5% public notes due 2019 | 386 | |||||||
7.0% public notes due 2019 | 180 | |||||||
6.875% public notes due 2021 | 245 | |||||||
4.625% public notes due 2023 | 208 | |||||||
Total amounts redeemed | $ | 2,600 | ||||||
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | |||
Sep. 27, 2013 | ||||
Guarantees [Abstract] | ' | |||
Product warranty accrual | ' | |||
The changes in the carrying amount of the Company's warranty accrual from September 28, 2012 to September 27, 2013 were as follows ($ in millions): | ||||
Balance as of September 28, 2012 | $ | 30 | ||
Warranties issued | 16 | |||
Changes in estimates | (4 | ) | ||
Settlements | (11 | ) | ||
Balance as of September 27, 2013 | $ | 31 | ||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | ' | |||||||||||||||||||||||||||
Cost and fair market value of investments by type of security and balance sheet classification | ' | |||||||||||||||||||||||||||
As of September 27, 2013 ($ in millions): | ||||||||||||||||||||||||||||
Fair Value | Consolidated | |||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Classification | ||||||||||||||||||||||||||||
Type of Security | Cost | Gross | Level 1 | Level 2 | Total | Prepaids | Other | |||||||||||||||||||||
Basis | Unrealized | and Other | Assets | |||||||||||||||||||||||||
Gain | Current | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Corporate debt securities | $ | 34 | $ | — | $ | — | $ | 34 | $ | 34 | $ | 11 | $ | 23 | ||||||||||||||
U.S. Government debt securities | 209 | — | 171 | 38 | 209 | 89 | 120 | |||||||||||||||||||||
$ | 243 | $ | — | $ | 171 | $ | 72 | $ | 243 | $ | 100 | $ | 143 | |||||||||||||||
As of September 28, 2012 ($ in millions): | ||||||||||||||||||||||||||||
Fair Value | Consolidated | |||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Classification | ||||||||||||||||||||||||||||
Type of Security | Cost | Gross | Level 1 | Level 2 | Total | Prepaids | Other | |||||||||||||||||||||
Basis | Unrealized | and Other | Assets | |||||||||||||||||||||||||
Gain | Current | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Corporate debt securities | $ | 33 | $ | 1 | $ | — | $ | 34 | $ | 34 | $ | 7 | $ | 27 | ||||||||||||||
U.S. Government debt securities | 167 | 2 | 86 | 83 | 169 | 63 | 106 | |||||||||||||||||||||
$ | 200 | $ | 3 | $ | 86 | $ | 117 | $ | 203 | $ | 70 | $ | 133 | |||||||||||||||
Schedule of debt securities by maturity date | ' | |||||||||||||||||||||||||||
The maturities of the Company's investments in debt securities as of September 27, 2013 are as follows ($ in millions): | ||||||||||||||||||||||||||||
Cost | Fair | |||||||||||||||||||||||||||
Basis | Value | |||||||||||||||||||||||||||
Due in one year or less | $ | 100 | $ | 100 | ||||||||||||||||||||||||
Due after one year through five years | 143 | 143 | ||||||||||||||||||||||||||
Total | $ | 243 | $ | 243 | ||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Sep. 27, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of minimum lease payments for non-cancelable operating leases | ' | |||
Following is a schedule of minimum lease payments for non-cancelable operating leases as of September 27, 2013 ($ in millions): | ||||
Operating | ||||
Leases | ||||
2014 | $ | 158 | ||
2015 | 128 | |||
2016 | 107 | |||
2017 | 75 | |||
2018 | 29 | |||
Thereafter | 40 | |||
$ | 537 | |||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||
Defined Benefit Pension Plans | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Changes in net periodic benefit cost for material U.S. and non-U.S. defined benefit pension plans | ' | |||||||||||||||||||||||
The net periodic benefit cost for material U.S. and non-U.S. defined benefit pension plans for 2013, 2012 and 2011 is as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 6 | $ | 5 | $ | 7 | $ | 19 | $ | 15 | $ | 16 | ||||||||||||
Interest cost | 33 | 35 | 38 | 51 | 54 | 58 | ||||||||||||||||||
Expected return on plan assets | (48 | ) | (42 | ) | (43 | ) | (67 | ) | (60 | ) | (59 | ) | ||||||||||||
Amortization of initial net (asset) | — | — | — | — | (1 | ) | — | |||||||||||||||||
Amortization of net actuarial loss | 14 | 13 | 9 | 12 | 8 | 10 | ||||||||||||||||||
Plan settlements, curtailments and special termination benefits | — | — | (2 | ) | — | — | (1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 5 | $ | 11 | $ | 9 | $ | 15 | $ | 16 | $ | 24 | ||||||||||||
Weighted-average assumptions used to determine net periodic pension cost during the year: | ||||||||||||||||||||||||
Discount rate | 3.6 | % | 4.5 | % | 5 | % | 4.2 | % | 5.2 | % | 5.1 | % | ||||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | 6.8 | % | 6.8 | % | 6.8 | % | ||||||||||||
Rate of compensation increase | NA | NA | 4 | % | 3.6 | % | 3.4 | % | 3.6 | % | ||||||||||||||
Changes in benefit obligations and plan assets | ' | |||||||||||||||||||||||
The change in benefit obligations, plan assets and the amounts recognized on the Consolidated Balance Sheets for material U.S. and non-U.S. defined benefit plans as of September 27, 2013 and September 28, 2012 is as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||
Benefit obligations as of beginning of year | $ | 931 | $ | 819 | $ | 1,254 | $ | 1,064 | ||||||||||||||||
Service cost | 6 | 5 | 19 | 15 | ||||||||||||||||||||
Interest cost | 33 | 35 | 51 | 54 | ||||||||||||||||||||
Employee contributions | — | — | 2 | 2 | ||||||||||||||||||||
Actuarial (gain) loss | (132 | ) | 119 | 91 | 137 | |||||||||||||||||||
Transfers | — | — | 5 | 5 | ||||||||||||||||||||
Benefits and administrative expenses paid | (46 | ) | (47 | ) | (60 | ) | (53 | ) | ||||||||||||||||
Plan settlements, curtailments and special termination benefits | — | — | (2 | ) | — | |||||||||||||||||||
Currency translation | — | — | 7 | 30 | ||||||||||||||||||||
Benefit obligations as of end of year | $ | 792 | $ | 931 | $ | 1,367 | $ | 1,254 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets as of beginning of year | $ | 623 | $ | 529 | $ | 1,016 | $ | 877 | ||||||||||||||||
Actual return on plan assets | 66 | 105 | 114 | 103 | ||||||||||||||||||||
Employer contributions | 9 | 36 | 47 | 52 | ||||||||||||||||||||
Employee contributions | — | — | 2 | 2 | ||||||||||||||||||||
Acquisitions/divestitures | — | — | 1 | 6 | ||||||||||||||||||||
Benefits and administrative expenses paid | (46 | ) | (47 | ) | (60 | ) | (53 | ) | ||||||||||||||||
Plan settlements, curtailments and special termination benefits | — | — | (2 | ) | — | |||||||||||||||||||
Currency translation | — | — | 1 | 29 | ||||||||||||||||||||
Fair value of plan assets as of end of year | $ | 652 | $ | 623 | $ | 1,119 | $ | 1,016 | ||||||||||||||||
Funded status | $ | (140 | ) | $ | (308 | ) | $ | (248 | ) | $ | (238 | ) | ||||||||||||
Net amount recognized | $ | (140 | ) | $ | (308 | ) | $ | (248 | ) | $ | (238 | ) | ||||||||||||
Amounts recognized in Consolidated Balance Sheets and accumulated other comprehensive (loss) income | ' | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||
Current liabilities | $ | (3 | ) | $ | (3 | ) | $ | (13 | ) | $ | (13 | ) | ||||||||||||
Non-current liabilities | (137 | ) | (305 | ) | (235 | ) | (225 | ) | ||||||||||||||||
Net amount recognized | $ | (140 | ) | $ | (308 | ) | $ | (248 | ) | $ | (238 | ) | ||||||||||||
Amounts recognized in accumulated other comprehensive loss (before income taxes) consist of: | ||||||||||||||||||||||||
Transition asset | $ | — | $ | — | $ | 2 | $ | 3 | ||||||||||||||||
Net actuarial loss | (271 | ) | (435 | ) | (424 | ) | (390 | ) | ||||||||||||||||
Total loss recognized | $ | (271 | ) | $ | (435 | ) | $ | (422 | ) | $ | (387 | ) | ||||||||||||
Weighted-average assumptions used to determine pension benefit obligations at year end: | ||||||||||||||||||||||||
Discount rate | 4.9 | % | 3.6 | % | 4.2 | % | 4.2 | % | ||||||||||||||||
Rate of compensation increase | N/A | N/A | 3.6 | % | 3.6 | % | ||||||||||||||||||
The accumulated and aggregate benefit obligation and fair value of plan assets with accumulated benefit obligations in excess of plan assets | ' | |||||||||||||||||||||||
The accumulated and aggregate benefit obligation and fair value of plan assets with accumulated benefit obligations in excess of plan assets as of September 27, 2013 and September 28, 2012 were as follows ($ in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
As of | As of | As of | As of | |||||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 792 | $ | 931 | $ | 1,345 | $ | 1,235 | ||||||||||||||||
Accumulated benefit obligation and fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | 792 | $ | 931 | $ | 1,324 | $ | 1,224 | ||||||||||||||||
Fair value of plan assets | 652 | 623 | 1,095 | 1,003 | ||||||||||||||||||||
Aggregate benefit obligation and fair value of plan assets for plans with benefit obligations in excess of plan assets: | ||||||||||||||||||||||||
Aggregate benefit obligation | $ | 792 | $ | 931 | $ | 1,356 | $ | 1,254 | ||||||||||||||||
Fair value of plan assets | 652 | 623 | 1,108 | 1,016 | ||||||||||||||||||||
Weighted average asset allocations | ' | |||||||||||||||||||||||
Pension plans have the following weighted-average asset allocations: | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. | |||||||||||||||||||||||
Plans | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||
Equity securities | 63 | % | 59 | % | 52 | % | 50 | % | ||||||||||||||||
Debt securities | 35 | % | 39 | % | 48 | % | 50 | % | ||||||||||||||||
Cash and cash equivalents | 2 | % | 2 | % | — | — | ||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Company's asset allocations by level within the fair value hierarchy | ' | |||||||||||||||||||||||
The Company's asset allocations by level within the fair value hierarchy as of September 27, 2013 and September 28, 2012 are presented in the table below for the Company's material defined benefit plans. | ||||||||||||||||||||||||
As of | ||||||||||||||||||||||||
September 27, 2013 | ||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | |||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. equity securities | $ | 187 | $ | 296 | $ | 483 | ||||||||||||||||||
Non-U.S. equity securities | 165 | 351 | 516 | |||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
Government and government agency securities | 34 | 292 | 326 | |||||||||||||||||||||
Corporate debt securities | — | 379 | 379 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 54 | 54 | |||||||||||||||||||||
Cash and cash equivalents | 13 | — | 13 | |||||||||||||||||||||
Total | $ | 399 | $ | 1,372 | $ | 1,771 | ||||||||||||||||||
As of | ||||||||||||||||||||||||
September 28, 2012 | ||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | |||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. equity securities | $ | 162 | $ | 268 | $ | 430 | ||||||||||||||||||
Non-U.S. equity securities | 101 | 336 | 437 | |||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||
Government and government agency securities | 58 | 272 | 330 | |||||||||||||||||||||
Corporate debt securities | — | 384 | 384 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 39 | 39 | |||||||||||||||||||||
Cash and cash equivalents | 19 | — | 19 | |||||||||||||||||||||
Total | $ | 340 | $ | 1,299 | $ | 1,639 | ||||||||||||||||||
Summary of pension plan assets valued using NAV or its equivalent | ' | |||||||||||||||||||||||
The following tables set forth a summary of pension plan assets valued using NAV or its equivalent as of September 27, 2013 and September 28, 2012 ($ in millions): | ||||||||||||||||||||||||
As of | ||||||||||||||||||||||||
September 27, 2013 | ||||||||||||||||||||||||
Investment ($ in millions) | Fair | Redemption | Redemption | |||||||||||||||||||||
Value | Frequency | Notice | ||||||||||||||||||||||
Period | ||||||||||||||||||||||||
U.S. equity securities | $ | 292 | Daily | 1 day, 5 days | ||||||||||||||||||||
Non-U.S. equity securities | 390 | Daily, Semi-monthly | 1 day, 2 days, 3 days | |||||||||||||||||||||
Government and government agency securities | 148 | Daily | 1 day, 2 days | |||||||||||||||||||||
Corporate debt securities | 121 | Daily | 1 day, 2 days | |||||||||||||||||||||
$ | 951 | |||||||||||||||||||||||
As of | ||||||||||||||||||||||||
September 28, 2012 | ||||||||||||||||||||||||
Investment ($ in millions) | Fair | Redemption | Redemption | |||||||||||||||||||||
Value | Frequency | Notice | ||||||||||||||||||||||
Period | ||||||||||||||||||||||||
U.S. equity securities | $ | 265 | Daily | 1 day | ||||||||||||||||||||
Non-U.S. equity securities | 329 | Daily, Semi-monthly | 1 day, 2 days, 3 days | |||||||||||||||||||||
Government and government agency securities | 119 | Daily | 1 day | |||||||||||||||||||||
Corporate debt securities | 136 | Daily | 1 day, 2 days | |||||||||||||||||||||
$ | 849 | |||||||||||||||||||||||
Estimated future benefit payments | ' | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
2014 | $ | 43 | $ | 55 | ||||||||||||||||||||
2015 | 44 | 54 | ||||||||||||||||||||||
2016 | 45 | 55 | ||||||||||||||||||||||
2017 | 45 | 56 | ||||||||||||||||||||||
2018 | 47 | 57 | ||||||||||||||||||||||
2019 - 2023 | 248 | 306 | ||||||||||||||||||||||
Postretirement Benefit Plans | ' | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||||
Estimated future benefit payments | ' | |||||||||||||||||||||||
Benefit payments, including those amounts to be paid out of corporate assets and reflecting future expected service as appropriate, are expected to be paid as follows ($ in millions): | ||||||||||||||||||||||||
2014 | $ | 3 | ||||||||||||||||||||||
2015 | 3 | |||||||||||||||||||||||
2016 | 3 | |||||||||||||||||||||||
2017 | 3 | |||||||||||||||||||||||
2018 | 3 | |||||||||||||||||||||||
2019-2023 | 12 | |||||||||||||||||||||||
Shareholders_Equity_and_Compre1
Shareholders' Equity and Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||
Schedule of repurchases made under each of the Company's repurchase programs | ' | ||||||||||||||||||||
Shares repurchased by the Company by fiscal year and share repurchase program are provided below: | |||||||||||||||||||||
2013 Share | 2011 Share | 2010 Share | |||||||||||||||||||
Repurchase Program | Repurchase Program | Repurchase Program | |||||||||||||||||||
Shares | Amounts | Shares | Amounts | Shares | Amounts | ||||||||||||||||
(in millions) | ($ in billions) | (in millions) | ($ in billions) | (in millions) | ($ in billions) | ||||||||||||||||
Approved Repurchase Amount | $ | 0.6 | $ | 1 | $ | 1 | |||||||||||||||
Repurchases | |||||||||||||||||||||
Fiscal 2013 | 3 | 0.1 | 7 | 0.2 | N/A | N/A | |||||||||||||||
Fiscal 2012 | N/A | N/A | 11 | 0.5 | N/A | N/A | |||||||||||||||
Fiscal 2011 | N/A | N/A | 6 | 0.3 | 24 | 1 | |||||||||||||||
Remaining Amount Available | $ | 0.5 | $ | — | $ | — | |||||||||||||||
Comprehensive income (loss) | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Net income | $ | 533 | $ | 471 | $ | 1,720 | |||||||||||||||
Foreign currency translation | (87 | ) | 92 | 21 | |||||||||||||||||
Liquidation of foreign entities (1) | (9 | ) | 2 | (164 | ) | ||||||||||||||||
Income tax expense (2) | (6 | ) | (1 | ) | — | ||||||||||||||||
Foreign currency translation, net of tax | (102 | ) | 93 | (143 | ) | ||||||||||||||||
Net actuarial gains (losses) | 109 | (212 | ) | (30 | ) | ||||||||||||||||
Amortization reclassified into earnings | 26 | 22 | 21 | ||||||||||||||||||
Settlements/curtailments reclassified to earnings | — | — | (1 | ) | |||||||||||||||||
Foreign currency and other | — | (15 | ) | (2 | ) | ||||||||||||||||
Divestiture of business | — | — | 33 | ||||||||||||||||||
Income tax (expense) benefit | (54 | ) | 42 | 12 | |||||||||||||||||
Defined benefit and post retirement plans, net of tax | 81 | (163 | ) | 33 | |||||||||||||||||
Unrealized gain (loss) on marketable securities and derivative instruments | 2 | (1 | ) | (2 | ) | ||||||||||||||||
Income tax (expense) benefit | (2 | ) | 1 | (2 | ) | ||||||||||||||||
Unrealized loss on marketable securities and derivative instruments, net of tax | — | — | (4 | ) | |||||||||||||||||
Deconsolidation of variable interest entity due to adoption of an accounting standard | — | — | (11 | ) | |||||||||||||||||
Total other comprehensive loss, net of tax | (21 | ) | (70 | ) | (125 | ) | |||||||||||||||
Comprehensive income | 512 | 401 | 1,595 | ||||||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | (3 | ) | (1 | ) | (10 | ) | |||||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 515 | $ | 402 | $ | 1,605 | |||||||||||||||
-1 | During the years ended September 27, 2013, September 28, 2012 and September 30, 2011, $9 million of cumulative translation gains, $2 million of cumulative translation loss and $164 million of cumulative translation gains, respectively, were transferred from currency translation adjustments as a result of the sale of foreign entities. Of these amounts, nil, $2 million and $126 million, respectively, are included in income from discontinued operations. | ||||||||||||||||||||
-2 | Income tax on the net investment hedge was $6 million of an income tax expense for the year ended September 27, 2013, $1 million of an income tax expense for the year ended September 28, 2012 and nil for the year ended September 30, 2011. | ||||||||||||||||||||
Components of accumulated other comprehensive loss | ' | ||||||||||||||||||||
The components of accumulated other comprehensive loss are as follows ($ in millions): | |||||||||||||||||||||
Currency | Unrealized Gain | Retirement | Accumulated Other | ||||||||||||||||||
Translation | (Loss) on | Plans | Comprehensive Loss | ||||||||||||||||||
Adjustments | Marketable | ||||||||||||||||||||
Securities and | |||||||||||||||||||||
Derivative | |||||||||||||||||||||
Instruments | |||||||||||||||||||||
Balance as of September 24, 2010 | $ | 213 | $ | 4 | $ | (539 | ) | $ | (322 | ) | |||||||||||
Other comprehensive (loss) income, net of tax | (143 | ) | (4 | ) | 33 | (114 | ) | ||||||||||||||
Balance as of September 30, 2011 | 70 | — | (506 | ) | (436 | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | 93 | — | (163 | ) | (70 | ) | |||||||||||||||
Distribution of Tyco Flow Control and ADT | (582 | ) | — | 122 | (460 | ) | |||||||||||||||
Balance as of September 28, 2012 | (419 | ) | — | (547 | ) | (966 | ) | ||||||||||||||
Other comprehensive (loss) income, net of tax | (102 | ) | — | 81 | (21 | ) | |||||||||||||||
Balance as of September 27, 2013 | $ | (521 | ) | $ | — | $ | (466 | ) | $ | (987 | ) | ||||||||||
Share_Plans_Tables
Share Plans (Tables) | 12 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of share-based compensation cost recognized | ' | ||||||||||||
Total share-based compensation cost recognized within continuing and discontinued operations during 2013, 2012 and 2011 consisted of the following ($ in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Selling, general and administrative expenses | $63 | $81 | $89 | ||||||||||
Separation costs | — | 28 | — | ||||||||||
Restructuring, asset impairments and divestiture charges (gains), net | — | 4 | — | ||||||||||
Total share-based compensation costs included in Continuing operations | 63 | 113 | 89 | ||||||||||
Discontinued operations | — | 27 | 21 | ||||||||||
Total share-based compensation costs | $63 | $140 | $110 | ||||||||||
Schedule of weighted average assumptions | ' | ||||||||||||
The weighted-average assumptions used in the Black-Scholes option pricing model for 2013, 2012 and 2011 are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected stock price volatility | 35 | % | 36 | % | 33 | % | |||||||
Risk free interest rate | 0.87 | % | 1.46 | % | 1.3 | % | |||||||
Expected annual dividend per share | $ | 0.6 | $ | 1 | $ | 0.84 | |||||||
Expected life of options (years) | 5.8 | 5.8 | 5.2 | ||||||||||
Schedule of share-based compensation arrangements, activity during the period | ' | ||||||||||||
A summary of the option activity as of September 27, 2013, and changes during the year then ended is presented below: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining | Value | |||||||||||
Contractual Term | ($ in millions) | ||||||||||||
(in years) | |||||||||||||
Outstanding as of September 28, 2012 | 21,670,340 | $ | 20.89 | ||||||||||
Granted | 4,214,430 | 27.27 | |||||||||||
Exercised | (7,306,955 | ) | 20.9 | ||||||||||
Expired | (640,895 | ) | 21.69 | ||||||||||
Forfeited | (137,731 | ) | 23.98 | ||||||||||
Outstanding as of September 27, 2013 | 17,799,189 | 22.34 | 6.2 | $ | 225 | ||||||||
Vested and unvested expected to vest as of September 27, 2013 | 16,924,966 | 22.19 | 6.09 | $ | 216 | ||||||||
Exercisable as of September 27, 2013 | 9,190,538 | 21.2 | 4.31 | $ | 126 | ||||||||
Schedule of share-based compensation arrangements, restricted stock unit awards and changes | ' | ||||||||||||
A summary of the activity of the Company's restricted stock unit awards as of September 27, 2013 and changes during the year then ended is presented in the tables below: | |||||||||||||
Non-vested Restricted Stock Units | Shares | Weighted-Average | |||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested as of September 28, 2012 | 5,164,283 | $ | 20.24 | ||||||||||
Granted | 1,366,929 | 27.66 | |||||||||||
Vested | (2,118,908 | ) | 18.49 | ||||||||||
Forfeited | (443,177 | ) | 20.76 | ||||||||||
Non-vested as of September 27, 2013 | 3,969,127 | 22.63 | |||||||||||
Schedule of share-based compensation arrangements, performance share unit awards and changes | ' | ||||||||||||
A summary of the activity of the Company's performance share unit awards as of September 27, 2013 and changes during the year then ended is presented in the table below: | |||||||||||||
Non-vested Performance Share Units | Shares | Weighted-Average | |||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested as of September 28, 2012 | — | $ | — | ||||||||||
Granted | 897,197 | 30.36 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | (41,355 | ) | 30.36 | ||||||||||
Non-vested as of September 27, 2013 | 855,842 | 30.36 | |||||||||||
Consolidated_Segment_Data_Tabl
Consolidated Segment Data (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Net revenue and Operating income (loss), by segment | ' | |||||||||||
Selected information by segment is presented in the following tables ($ in millions): | ||||||||||||
2013(2) | 2012(2) | 2011(2) | ||||||||||
Net Revenue(1): | ||||||||||||
NA Installation & Services | $ | 3,891 | $ | 3,962 | $ | 4,022 | ||||||
ROW Installation & Services | 4,417 | 4,341 | 4,434 | |||||||||
Global Products | 2,339 | 2,100 | 1,754 | |||||||||
Corporate and Other | — | — | 347 | |||||||||
$ | 10,647 | $ | 10,403 | $ | 10,557 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Net revenue by operating segment excludes intercompany transactions. | |||||||||||
(2) | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Operating income (loss): | ||||||||||||
NA Installation & Services | $ | 388 | $ | 374 | $ | 425 | ||||||
ROW Installation & Services | 433 | 456 | 405 | |||||||||
Global Products | 307 | 353 | 295 | |||||||||
Corporate and Other(1) | (319 | ) | (498 | ) | (143 | ) | ||||||
$ | 809 | $ | 685 | $ | 982 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Operating income includes $7 million for the year ended September 30, 2011, related to the Company's former Electrical and Metals Products business of which a majority interest was sold during the first quarter of fiscal 2011. Operating income for the year ended September 30, 2011 also included a gain, net of working capital adjustments, of $248 million related to the same sale. See Note 3. | |||||||||||
Total Assets, by segment | ' | |||||||||||
Total assets by segment as of September 27, 2013, September 28, 2012 and September 30, 2011 are as follows ($ in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Total Assets: | ||||||||||||
NA Installation & Services | $ | 3,829 | $ | 3,989 | $ | 4,025 | ||||||
ROW Installation & Services | 3,928 | 3,884 | 3,633 | |||||||||
Global Products | 2,726 | 2,377 | 2,037 | |||||||||
Corporate and Other | 1,693 | 2,115 | 3,047 | |||||||||
Assets of discontinued operations | — | — | 13,960 | |||||||||
$ | 12,176 | $ | 12,365 | $ | 26,702 | |||||||
Depreciation and Amortization and Capital expenditures, net by segment | ' | |||||||||||
Depreciation and amortization and capital expenditures by segment for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 are as follows ($ in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation and amortization: | ||||||||||||
NA Installation & Services | $ | 139 | $ | 137 | $ | 143 | ||||||
ROW Installation & Services | 223 | 211 | 211 | |||||||||
Global Products | 58 | 63 | 49 | |||||||||
Corporate and Other | 7 | 7 | 18 | |||||||||
$ | 427 | $ | 418 | $ | 421 | |||||||
2013 | 2012 | 2011 | ||||||||||
Capital expenditures | ||||||||||||
NA Installation & Services | $ | 92 | $ | 107 | $ | 76 | ||||||
ROW Installation & Services | 217 | 211 | 210 | |||||||||
Global Products | 58 | 74 | 66 | |||||||||
Corporate and Other | 10 | 14 | 19 | |||||||||
$ | 377 | $ | 406 | $ | 371 | |||||||
Net revenue, by geographic area | ' | |||||||||||
Net revenue by geographic area for the years ended September 27, 2013, September 28, 2012 and September 30, 2011 is as follows ($ in millions): | ||||||||||||
2013(4) | 2012(4) | 2011(4) | ||||||||||
Net Revenue(1): | ||||||||||||
North America(2) | $ | 5,343 | $ | 5,257 | $ | 5,386 | ||||||
Latin America | 480 | 441 | 459 | |||||||||
Europe, Middle East and Africa (3) | 2,758 | 2,766 | 2,896 | |||||||||
Asia-Pacific | 2,066 | 1,939 | 1,816 | |||||||||
$ | 10,647 | $ | 10,403 | $ | 10,557 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Net revenue is attributed to individual countries based on the reporting entity that records the transaction. | |||||||||||
(2) | Includes U.S. net revenue of $4,568 million, $4,478 million and $4,630 million for 2013, 2012 and 2011, respectively. | |||||||||||
(3) | The U.K. represents the largest portion of net revenue in the Europe, Middle East and Africa region with net revenue of $1,168 million, $1,162 million and $1,187 million for 2013, 2012 and 2011, respectively. | |||||||||||
(4) | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. | |||||||||||
Long-lived assets, by geographic area | ' | |||||||||||
Long-lived assets by geographic area as of September 27, 2013, September 28, 2012 and September 30, 2011 are as follows ($ in millions): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Long-lived assets(1): | ||||||||||||
North America(2) | $ | 892 | $ | 925 | $ | 967 | ||||||
Latin America | 129 | 151 | 144 | |||||||||
Europe, Middle East and Africa | 340 | 359 | 367 | |||||||||
Asia-Pacific | 601 | 587 | 535 | |||||||||
Corporate and Other | 32 | 29 | 33 | |||||||||
$ | 1,994 | $ | 2,051 | $ | 2,046 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) | Long-lived assets are comprised primarily of subscriber system assets, net, property, plant and equipment, net, deferred subscriber acquisition costs, net and dealer intangibles. They exclude goodwill, other intangible assets and other assets. | |||||||||||
(2) | Includes U.S. long-lived assets of $828 million, $856 million and $895 million for 2013, 2012 and 2011, respectively. |
Supplemental_Consolidations_Ba
Supplemental Consolidations Balance Sheet Information (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Selected supplementary Consolidated Balance Sheet information | ' | |||||||
Selected supplementary Consolidated Balance Sheet information as of September 27, 2013 and September 28, 2012 is as follows ($ in millions): | ||||||||
As of | As of | |||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
Contracts in process | $ | 384 | $ | 360 | ||||
Other | 473 | 524 | ||||||
Prepaid expenses and other current assets | $ | 857 | $ | 884 | ||||
Deferred tax asset-non current | $ | 279 | $ | 398 | ||||
Other | 830 | 806 | ||||||
Other assets | $ | 1,109 | $ | 1,204 | ||||
Accrued payroll and payroll related costs | $ | 327 | $ | 291 | ||||
Deferred income tax liability-current | 44 | 10 | ||||||
Income taxes payable-current | 42 | 126 | ||||||
Accrued dividends | 148 | 139 | ||||||
Other | 1,349 | 1,222 | ||||||
Accrued and other current liabilities | $ | 1,910 | $ | 1,788 | ||||
Long-term pension and postretirement liabilities | $ | 425 | $ | 593 | ||||
Deferred income tax liability-non-current | 236 | 211 | ||||||
Income taxes payable-non-current | 147 | 124 | ||||||
Other | 1,161 | 1,413 | ||||||
Other liabilities | $ | 1,969 | $ | 2,341 | ||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
Inventories consisted of the following ($ in millions): | ||||||||
As of | As of | |||||||
September 27, | September 28, | |||||||
2013 | 2012 | |||||||
Purchased materials and manufactured parts | $ | 157 | $ | 135 | ||||
Work in process | 93 | 80 | ||||||
Finished goods | 405 | 419 | ||||||
Inventories | $ | 655 | $ | 634 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, Plant and Equipment | ' | ||||||
Property, plant and equipment consisted of the following ($ in millions): | |||||||
As of | As of | ||||||
September 27, | September 28, | ||||||
2013 | 2012 | ||||||
Land | $ | 44 | 44 | ||||
Buildings | 388 | 358 | |||||
Subscriber systems | 2,971 | 3,063 | |||||
Machinery and equipment | 1,232 | 1,158 | |||||
Construction in progress | 67 | 102 | |||||
Accumulated depreciation | (3,025 | ) | (3,055 | ) | |||
Property, Plant and Equipment, net | $ | 1,677 | 1,670 | ||||
Tyco_International_Finance_SA_
Tyco International Finance S.A. (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Tyco International Finance S.A. Condensed Consolidating Financial Statements | ' | |||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 10,647 | $ | — | $ | 10,647 | ||||||||||
Cost of product sales and services | — | — | 6,766 | — | 6,766 | |||||||||||||||
Selling, general and administrative expenses | 11 | 1 | 2,918 | — | 2,930 | |||||||||||||||
Separation costs | 3 | — | 5 | — | 8 | |||||||||||||||
Restructuring, asset impairment and divestiture charges, net | — | — | 134 | — | 134 | |||||||||||||||
Operating (loss) income | (14 | ) | (1 | ) | 824 | — | 809 | |||||||||||||
Interest income | 2 | — | 15 | — | 17 | |||||||||||||||
Interest expense | (1 | ) | (95 | ) | (4 | ) | — | (100 | ) | |||||||||||
Other (expense) income, net | (31 | ) | — | 2 | — | (29 | ) | |||||||||||||
Equity in net (loss) income of subsidiaries | (12,666 | ) | 575 | — | 12,091 | — | ||||||||||||||
Intercompany interest and fees | 13,248 | 122 | (13,370 | ) | — | — | ||||||||||||||
Income (loss) from continuing operations before income taxes | 538 | 601 | (12,533 | ) | 12,091 | 697 | ||||||||||||||
Income tax expense | (2 | ) | (2 | ) | (121 | ) | — | (125 | ) | |||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (48 | ) | — | (48 | ) | |||||||||||||
Income (loss) from continuing operations | 536 | 599 | (12,702 | ) | 12,091 | 524 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 9 | — | 9 | |||||||||||||||
Net income (loss) | 536 | 599 | (12,693 | ) | 12,091 | 533 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net loss | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Net income (loss) attributable to Tyco common shareholders | $ | 536 | $ | 599 | $ | (12,690 | ) | $ | 12,091 | $ | 536 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Year Ended September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income (loss) | $ | 536 | $ | 599 | $ | (12,693 | ) | $ | 12,091 | $ | 533 | |||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||||||
Foreign currency translation | (102 | ) | — | (102 | ) | 102 | (102 | ) | ||||||||||||
Defined benefit and post retirement plans | 81 | — | 81 | (81 | ) | 81 | ||||||||||||||
Unrealized loss on marketable securities and derivate instruments | — | — | — | — | — | |||||||||||||||
Total other comprehensive loss, net of tax | (21 | ) | — | (21 | ) | 21 | (21 | ) | ||||||||||||
Comprehensive income (loss) | 515 | 599 | (12,714 | ) | 12,112 | 512 | ||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Comprehensive income (loss) attributable to Tyco common shareholders | $ | 515 | $ | 599 | $ | (12,711 | ) | $ | 12,112 | $ | 515 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Year Ended September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 10,403 | $ | — | $ | 10,403 | ||||||||||
Cost of product sales and services | — | — | 6,626 | — | 6,626 | |||||||||||||||
Selling, general and administrative expenses | 15 | 15 | 2,873 | — | 2,903 | |||||||||||||||
Separation costs | 3 | 1 | 67 | — | 71 | |||||||||||||||
Restructuring, asset impairment and divestiture charges, net | 1 | — | 117 | — | 118 | |||||||||||||||
Operating (loss) income | (19 | ) | (16 | ) | 720 | — | 685 | |||||||||||||
Interest income | — | — | 19 | — | 19 | |||||||||||||||
Interest expense | — | (204 | ) | (5 | ) | — | (209 | ) | ||||||||||||
Other (expense) income, net | (4 | ) | (453 | ) | 3 | — | (454 | ) | ||||||||||||
Equity in net income of subsidiaries | 913 | 1,065 | — | (1,978 | ) | — | ||||||||||||||
Intercompany interest and fees | (412 | ) | 282 | 225 | (95 | ) | — | |||||||||||||
Income from continuing operations before income taxes | 478 | 674 | 962 | (2,073 | ) | 41 | ||||||||||||||
Income tax expense | (2 | ) | (2 | ) | (344 | ) | — | (348 | ) | |||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Income (loss) from continuing operations | 476 | 672 | 592 | (2,073 | ) | (333 | ) | |||||||||||||
(Loss) income from discontinued operations, net of income taxes | (4 | ) | — | 713 | 95 | 804 | ||||||||||||||
Net income | 472 | 672 | 1,305 | (1,978 | ) | 471 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net loss | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Net income attributable to Tyco common shareholders | $ | 472 | $ | 672 | $ | 1,306 | $ | (1,978 | ) | $ | 472 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Year Ended September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 472 | $ | 672 | $ | 1,305 | $ | (1,978 | ) | $ | 471 | |||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||
Foreign currency translation | 93 | 11 | 82 | (93 | ) | 93 | ||||||||||||||
Defined benefit and post retirement plans | (163 | ) | — | (163 | ) | 163 | (163 | ) | ||||||||||||
Unrealized loss on marketable securities and derivate instruments | — | — | — | — | — | |||||||||||||||
Total other comprehensive (loss) income, net of tax | (70 | ) | 11 | (81 | ) | 70 | (70 | ) | ||||||||||||
Comprehensive income | 402 | 683 | 1,224 | (1,908 | ) | 401 | ||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 402 | $ | 683 | $ | 1,225 | $ | (1,908 | ) | $ | 402 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Year Ended September 30, 2011 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 10,557 | $ | — | $ | 10,557 | ||||||||||
Cost of product sales and services | — | — | 6,890 | — | 6,890 | |||||||||||||||
Selling, general and administrative expenses | 32 | 12 | 2,790 | — | 2,834 | |||||||||||||||
Restructuring, asset impairment and divestiture charges (gains), net | 3 | — | (152 | ) | — | (149 | ) | |||||||||||||
Operating (loss) income | (35 | ) | (12 | ) | 1,029 | — | 982 | |||||||||||||
Interest income | — | — | 27 | — | 27 | |||||||||||||||
Interest expense | — | (237 | ) | (3 | ) | — | (240 | ) | ||||||||||||
Other (expense) income, net | (7 | ) | — | 2 | — | (5 | ) | |||||||||||||
Equity in net income of subsidiaries | 2,863 | 2,809 | — | (5,672 | ) | — | ||||||||||||||
Intercompany interest and fees | (1,098 | ) | 337 | 900 | (139 | ) | — | |||||||||||||
Income from continuing operations before income taxes | 1,723 | 2,897 | 1,955 | (5,811 | ) | 764 | ||||||||||||||
Income tax expense | (4 | ) | (25 | ) | (105 | ) | — | (134 | ) | |||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (12 | ) | — | (12 | ) | |||||||||||||
Income from continuing operations | 1,719 | 2,872 | 1,838 | (5,811 | ) | 618 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 963 | 139 | 1,102 | |||||||||||||||
Net income | 1,719 | 2,872 | 2,801 | (5,672 | ) | 1,720 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net income | — | — | 1 | — | 1 | |||||||||||||||
Net income attributable to Tyco common shareholders | $ | 1,719 | $ | 2,872 | $ | 2,800 | $ | (5,672 | ) | $ | 1,719 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Year Ended September 30, 2011 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 1,719 | $ | 2,872 | $ | 2,801 | $ | (5,672 | ) | $ | 1,720 | |||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||||||
Foreign currency translation | (143 | ) | (21 | ) | (122 | ) | 143 | (143 | ) | |||||||||||
Defined benefit and post retirement plans | 33 | — | 33 | (33 | ) | 33 | ||||||||||||||
Unrealized loss on marketable securities and derivate instruments | (4 | ) | — | (4 | ) | 4 | (4 | ) | ||||||||||||
Deconsolidation of variable interest entity due to adoption of an accounting standard | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Total other comprehensive loss, net of tax | (114 | ) | (21 | ) | (104 | ) | 114 | (125 | ) | |||||||||||
Comprehensive income | 1,605 | 2,851 | 2,697 | (5,558 | ) | 1,595 | ||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 1,605 | $ | 2,851 | $ | 2,707 | $ | (5,558 | ) | $ | 1,605 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 563 | $ | — | $ | 563 | ||||||||||
Accounts receivable, net | — | — | 1,738 | — | 1,738 | |||||||||||||||
Inventories | — | — | 655 | — | 655 | |||||||||||||||
Intercompany receivables | 22 | 2,079 | 7,354 | (9,455 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 9 | — | 848 | — | 857 | |||||||||||||||
Deferred income taxes | — | — | 254 | — | 254 | |||||||||||||||
Total current assets | 31 | 2,079 | 11,412 | (9,455 | ) | 4,067 | ||||||||||||||
Property, plant and equipment, net | — | — | 1,677 | — | 1,677 | |||||||||||||||
Goodwill | — | — | 4,519 | — | 4,519 | |||||||||||||||
Intangible assets, net | — | — | 804 | — | 804 | |||||||||||||||
Investment in subsidiaries | 12,826 | 14,690 | — | (27,516 | ) | — | ||||||||||||||
Intercompany loans receivable | — | 1,141 | 5,310 | (6,451 | ) | — | ||||||||||||||
Other assets | 68 | 6 | 1,035 | — | 1,109 | |||||||||||||||
Total Assets | $ | 12,925 | $ | 17,916 | $ | 24,757 | $ | (43,422 | ) | $ | 12,176 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Loans payable and current maturities of long-term debt | $ | — | $ | — | $ | 20 | $ | — | $ | 20 | ||||||||||
Accounts payable | 1 | — | 898 | — | 899 | |||||||||||||||
Accrued and other current liabilities | 353 | 23 | 1,534 | — | 1,910 | |||||||||||||||
Deferred revenue | — | — | 402 | — | 402 | |||||||||||||||
Intercompany payables | 3,515 | 3,845 | 2,095 | (9,455 | ) | — | ||||||||||||||
Total current liabilities | 3,869 | 3,868 | 4,949 | (9,455 | ) | 3,231 | ||||||||||||||
Long-term debt | — | 1,443 | — | — | 1,443 | |||||||||||||||
Intercompany loans payable | 3,660 | 1,852 | 939 | (6,451 | ) | — | ||||||||||||||
Deferred revenue | — | — | 400 | — | 400 | |||||||||||||||
Other liabilities | 298 | — | 1,671 | — | 1,969 | |||||||||||||||
Total Liabilities | 7,827 | 7,163 | 7,959 | (15,906 | ) | 7,043 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 12 | — | 12 | |||||||||||||||
Tyco Shareholders' Equity: | ||||||||||||||||||||
Common shares | 208 | — | — | — | 208 | |||||||||||||||
Common shares held in treasury | — | — | (912 | ) | — | (912 | ) | |||||||||||||
Other shareholders' equity | 4,890 | 10,753 | 17,675 | (27,516 | ) | 5,802 | ||||||||||||||
Total Tyco Shareholders' Equity | 5,098 | 10,753 | 16,763 | (27,516 | ) | 5,098 | ||||||||||||||
Nonredeemable noncontrolling interest | — | — | 23 | — | 23 | |||||||||||||||
Total Equity | 5,098 | 10,753 | 16,786 | (27,516 | ) | 5,121 | ||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 12,925 | $ | 17,916 | $ | 24,757 | $ | (43,422 | ) | $ | 12,176 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 844 | $ | — | $ | 844 | ||||||||||
Accounts receivable, net | 7 | — | 1,689 | — | 1,696 | |||||||||||||||
Inventories | — | — | 634 | — | 634 | |||||||||||||||
Intercompany receivables | 1,220 | 1,890 | 10,361 | (13,471 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 14 | — | 870 | — | 884 | |||||||||||||||
Deferred income taxes | — | — | 295 | — | 295 | |||||||||||||||
Total current assets | 1,241 | 1,890 | 14,693 | (13,471 | ) | 4,353 | ||||||||||||||
Property, plant and equipment, net | — | — | 1,670 | — | 1,670 | |||||||||||||||
Goodwill | — | — | 4,367 | — | 4,367 | |||||||||||||||
Intangible assets, net | — | — | 771 | — | 771 | |||||||||||||||
Investment in subsidiaries | 25,666 | 15,337 | — | (41,003 | ) | — | ||||||||||||||
Intercompany loans receivable | 1,921 | 7,031 | 19,956 | (28,908 | ) | — | ||||||||||||||
Other assets | 67 | 260 | 877 | — | 1,204 | |||||||||||||||
Total Assets | $ | 28,895 | $ | 24,518 | $ | 42,334 | $ | (83,382 | ) | $ | 12,365 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Loans payable and current maturities of long-term debt | $ | — | $ | — | $ | 10 | $ | — | $ | 10 | ||||||||||
Accounts payable | — | — | 897 | — | 897 | |||||||||||||||
Accrued and other current liabilities | 187 | 23 | 1,578 | — | 1,788 | |||||||||||||||
Deferred revenue | — | — | 402 | — | 402 | |||||||||||||||
Intercompany payables | 3,571 | 6,793 | 3,107 | (13,471 | ) | — | ||||||||||||||
Total current liabilities | 3,758 | 6,816 | 5,994 | (13,471 | ) | 3,097 | ||||||||||||||
Long-term debt | — | 1,443 | 38 | — | 1,481 | |||||||||||||||
Intercompany loans payable | 19,672 | 3,055 | 6,181 | (28,908 | ) | — | ||||||||||||||
Deferred revenue | — | — | 424 | — | 424 | |||||||||||||||
Other liabilities | 471 | — | 1,870 | — | 2,341 | |||||||||||||||
Total Liabilities | 23,901 | 11,314 | 14,507 | (42,379 | ) | 7,343 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 12 | — | 12 | |||||||||||||||
Tyco Shareholders' Equity: | ||||||||||||||||||||
Common shares | 2,792 | — | — | — | 2,792 | |||||||||||||||
Common shares held in treasury | — | — | (1,094 | ) | — | (1,094 | ) | |||||||||||||
Other shareholders' equity | 2,202 | 13,204 | 28,893 | (41,003 | ) | 3,296 | ||||||||||||||
Total Tyco Shareholders' Equity | 4,994 | 13,204 | 27,799 | (41,003 | ) | 4,994 | ||||||||||||||
Nonredeemable noncontrolling interest | — | — | 16 | — | 16 | |||||||||||||||
Total Equity | 4,994 | 13,204 | 27,815 | (41,003 | ) | 5,010 | ||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 28,895 | $ | 24,518 | $ | 42,334 | $ | (83,382 | ) | $ | 12,365 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Year Ended September 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (251 | ) | $ | 452 | $ | 640 | $ | — | $ | 841 | |||||||||
Net cash provided by discontinued operating activities | — | — | 9 | — | 9 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (377 | ) | — | (377 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 5 | — | 5 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (229 | ) | — | (229 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (22 | ) | — | (22 | ) | |||||||||||||
Divestiture of businesses, net of cash divested | — | — | 17 | — | 17 | |||||||||||||||
Intercompany dividend from subsidiary | — | 32 | — | (32 | ) | — | ||||||||||||||
Net increase in intercompany loans | — | (431 | ) | — | 431 | — | ||||||||||||||
Decrease in investment in subsidiaries | — | 8 | — | (8 | ) | — | ||||||||||||||
Net increase in investments | — | — | (45 | ) | — | (45 | ) | |||||||||||||
Increase in restricted cash | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Other | — | — | 4 | — | 4 | |||||||||||||||
Net cash used in investing activities | — | (391 | ) | (655 | ) | 391 | (655 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Net repayments of debt | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Proceeds from exercise of share options | — | — | 153 | — | 153 | |||||||||||||||
Dividends paid | (288 | ) | — | — | — | (288 | ) | |||||||||||||
Intercompany dividend to parent | — | — | (32 | ) | 32 | — | ||||||||||||||
Repurchase of common shares by treasury | — | — | (300 | ) | — | (300 | ) | |||||||||||||
Net intercompany loan borrowings (repayments) | 449 | — | (18 | ) | (431 | ) | — | |||||||||||||
Decrease in equity from parent | — | — | (8 | ) | 8 | — | ||||||||||||||
Transfer from (to) discontinued operations | 90 | (61 | ) | 10 | — | 39 | ||||||||||||||
Other | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 251 | (61 | ) | (255 | ) | (391 | ) | (456 | ) | |||||||||||
Net cash used in discontinued financing activities | — | — | (39 | ) | — | (39 | ) | |||||||||||||
Effect of currency translation on cash | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (311 | ) | — | (311 | ) | |||||||||||||
Less: net decrease in cash and cash equivalents related to discontinued operations | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | — | 844 | — | 844 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 563 | $ | — | $ | 563 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Year Ended September 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (467 | ) | $ | 3,542 | $ | (2,374 | ) | $ | — | $ | 701 | ||||||||
Net cash provided by discontinued operating activities | — | — | 1,885 | — | 1,885 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (406 | ) | — | (406 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 8 | — | 8 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (217 | ) | — | (217 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (28 | ) | — | (28 | ) | |||||||||||||
Divestiture of businesses, net of cash divested | — | — | (5 | ) | — | (5 | ) | |||||||||||||
Intercompany dividend from subsidiary | — | 409 | — | (409 | ) | — | ||||||||||||||
Net increase in intercompany loans | — | (1,119 | ) | — | 1,119 | — | ||||||||||||||
(Increase) decrease in investment in subsidiaries | (495 | ) | 207 | 16 | 272 | — | ||||||||||||||
Net decrease in investments | — | — | 41 | — | 41 | |||||||||||||||
Increase in restricted cash | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Other | — | — | 27 | — | 27 | |||||||||||||||
Net cash used in investing activities | (495 | ) | (503 | ) | (566 | ) | 982 | (582 | ) | |||||||||||
Net cash used in discontinued investing activities | — | — | (1,215 | ) | 11 | (1,204 | ) | |||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Net (repayments) borrowings of debt | — | (3,039 | ) | 17 | — | (3,022 | ) | |||||||||||||
Proceeds from exercise of share options | — | — | 226 | — | 226 | |||||||||||||||
Dividends paid | (461 | ) | — | — | — | (461 | ) | |||||||||||||
Repurchase of common shares by treasury | — | — | (500 | ) | — | (500 | ) | |||||||||||||
Net intercompany loan borrowings (repayments) | 1,423 | — | (304 | ) | (1,119 | ) | — | |||||||||||||
Increase in equity from parent | — | — | 71 | (71 | ) | — | ||||||||||||||
Transfer from discontinued operations | — | — | 3,066 | 208 | 3,274 | |||||||||||||||
Other | — | — | (25 | ) | — | (25 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 962 | (3,039 | ) | 2,551 | (982 | ) | (508 | ) | ||||||||||||
Net cash used in discontinued financing activities | — | — | (448 | ) | 197 | (251 | ) | |||||||||||||
Effect of currency translation on cash | — | — | 4 | — | 4 | |||||||||||||||
Effect of currency translation on cash related to discontinued operations | — | — | 4 | — | 4 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | — | (159 | ) | 208 | 49 | ||||||||||||||
Less: net increase in cash and cash equivalents related to discontinued operations | — | — | 226 | 208 | 434 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,229 | — | 1,229 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 844 | $ | — | $ | 844 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Year Ended September 30, 2011 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (7,090 | ) | $ | 1,739 | $ | 6,012 | $ | — | $ | 661 | |||||||||
Net cash provided by discontinued operating activities | — | — | 1,767 | — | 1,767 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (371 | ) | — | (371 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 6 | — | 6 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (353 | ) | — | (353 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (33 | ) | — | (33 | ) | |||||||||||||
Divestiture of businesses, net of cash divested | 35 | — | 674 | — | 709 | |||||||||||||||
Intercompany dividend from subsidiary | 6,347 | 9 | — | (6,356 | ) | — | ||||||||||||||
Net increase in intercompany loans | — | (1,703 | ) | — | 1,703 | — | ||||||||||||||
Decrease (increase) in investment in subsidiaries | 4,773 | (9 | ) | (72 | ) | (4,692 | ) | — | ||||||||||||
Net decrease in investments | — | — | 26 | — | 26 | |||||||||||||||
Increase in restricted cash | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Other | — | (12 | ) | (25 | ) | — | (37 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 11,155 | (1,715 | ) | (156 | ) | (9,345 | ) | (61 | ) | |||||||||||
Net cash used in discontinued investing activities | — | — | (1,005 | ) | — | (1,005 | ) | |||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Net repayments of debt | — | (19 | ) | (17 | ) | — | (36 | ) | ||||||||||||
Proceeds from exercise of share options | — | — | 124 | — | 124 | |||||||||||||||
Dividends paid | (458 | ) | — | — | — | (458 | ) | |||||||||||||
Intercompany dividend to parent | — | — | (6,349 | ) | 6,349 | — | ||||||||||||||
Repurchase of common shares by treasury | (500 | ) | — | (800 | ) | — | (1,300 | ) | ||||||||||||
Net intercompany loan (repayments) borrowings | (3,126 | ) | — | 4,829 | (1,703 | ) | — | |||||||||||||
Decrease in equity from parent | — | — | (4,699 | ) | 4,699 | — | ||||||||||||||
Transfer from discontinued operations | — | — | 726 | — | 726 | |||||||||||||||
Other | 19 | (5 | ) | (8 | ) | — | 6 | |||||||||||||
Net cash used in financing activities | (4,065 | ) | (24 | ) | (6,194 | ) | 9,345 | (938 | ) | |||||||||||
Net cash used in discontinued financing activities | — | — | (793 | ) | — | (793 | ) | |||||||||||||
Effect of currency translation on cash | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Effect of currency translation on cash related to discontinued operations | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (375 | ) | — | (375 | ) | |||||||||||||
Less: net decrease in cash and cash equivalents related to discontinued operations | — | — | (33 | ) | — | (33 | ) | |||||||||||||
Decrease in cash and cash equivalents from deconsolidation of variable interest entity | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,581 | — | 1,581 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 1,229 | $ | — | $ | 1,229 | ||||||||||
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
transaction | |||
segment | |||
Basis of Presentation [Line Items] | ' | ' | ' |
Number of reporting segments | 3 | ' | ' |
Reclassification adjustment | ' | $679 | $651 |
Fiscal period duration | '364 days | '364 days | '371 days |
Number of types of transactions for which revenue is recognized | 4 | ' | ' |
Retainage receivables | 48 | 49 | ' |
Unbilled receivables | 41 | 41 | ' |
Retainage receivables and unbilled receivables expected to be collected during fiscal year | 36 | ' | ' |
Research and development expenditures included in cost of product sales related to new product development | 174 | 145 | 129 |
Advertising costs included in selling, general and administrative expenses | $60 | $39 | $46 |
Maximum maturity period of liquid investments considered as cash equivalents | '3 months | ' | ' |
ADT | ' | ' | ' |
Basis of Presentation [Line Items] | ' | ' | ' |
Number of common shares received under spin-off transaction | ' | 0.5 | ' |
Pentair | ' | ' | ' |
Basis of Presentation [Line Items] | ' | ' | ' |
Number of common shares received under spin-off transaction | ' | 0.24 | ' |
Basis_of_Presentation_and_Summ4
Basis of Presentation and Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
categories | |||
Property, Plant and Equipment: | ' | ' | ' |
Depreciation expense | $328 | $316 | $323 |
Number of asset categories related to the acquisition of new electronic security business customers | 3 | ' | ' |
Number of months after purchase in which cancellation of monitoring service results in a chargeback, low end of range | '6 months | ' | ' |
Number of months after purchase in which cancellation of monitoring service results in a chargeback, high end of range | '12 months | ' | ' |
Maximum ownership percentage for long-term investments in marketable equity securities marked to market at end of period | 20.00% | ' | ' |
Decrease in insurable liabilities due to change in risk-free rate of return discount. | 14 | 15 | ' |
Insurable liabilities | $58 | $58 | ' |
Dealer intangibles | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives under accelerated method, minimum | '12 years | ' | ' |
Estimated useful lives under accelerated method, maximum | '15 years | ' | ' |
Pooled subscriber systems and related deferred revenue | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives under accelerated method, maximum | '15 years | ' | ' |
Commercial subscriber pools | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Accelerated method declining balance rate, percentage, minimum | 135.00% | ' | ' |
Accelerated method declining balance rate, percentage, maximum | 360.00% | ' | ' |
Non-pooled subscriber system assets | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives | '14 years | ' | ' |
Minimum | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives of intangible assets | '4 years | ' | ' |
Maximum | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives of intangible assets | '40 years | ' | ' |
Maximum | Buildings and related improvements | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives | '50 years | ' | ' |
Maximum | Subscriber systems | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
Maximum | Other machinery, equipment and furniture and fixtures | ' | ' | ' |
Property, Plant and Equipment: | ' | ' | ' |
Estimated useful lives | '21 years | ' | ' |
2012_Separation_Transaction_De
2012 Separation Transaction (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
2012 Separation Transaction | ' | ' | ' |
Loss on extinguishment of debt | $0 | $453 | ' |
Professional fees | 6 | 191 | ' |
Non-cash impairment charges | 0 | 23 | ' |
Information technology related costs | 10 | 30 | ' |
Employee compensation costs | 4 | 91 | ' |
Marketing costs | 40 | 8 | ' |
Interest expense | 0 | 3 | ' |
Other costs | 1 | 40 | ' |
Total Pre-Tax Separation Charges | 61 | 839 | ' |
Tax-related separation charges | 22 | 264 | ' |
Tax benefit on Pre-Tax Separation Charges | -13 | -10 | ' |
Total Separation Charges, net of tax benefit | 70 | 1,093 | ' |
Separation charges classified in continuing operations | ' | ' | ' |
Other expense, net | 29 | 454 | 5 |
Continuing Operations | ' | ' | ' |
2012 Separation Transaction | ' | ' | ' |
Loss on extinguishment of debt | 0 | 453 | ' |
Professional fees | 5 | 0 | ' |
Non-cash impairment charges | 0 | 23 | ' |
Information technology related costs | 10 | 0 | ' |
Employee compensation costs | 3 | 74 | ' |
Marketing costs | 40 | 3 | ' |
Interest expense | 0 | 0 | ' |
Other costs | 11 | 8 | ' |
Total Pre-Tax Separation Charges | 69 | 561 | ' |
Tax-related separation charges | 22 | 266 | ' |
Tax benefit on Pre-Tax Separation Charges | -13 | -5 | ' |
Total Separation Charges, net of tax benefit | 78 | 822 | ' |
Separation charges classified in continuing operations | ' | ' | ' |
Selling, general and administrative expenses (SG&A) | 61 | 4 | ' |
Separation costs | 8 | 71 | ' |
Restructuring, asset impairment and divestiture charges (gains), net | 0 | 33 | ' |
Other expense, net | 0 | 453 | ' |
Discontinued Operations | ' | ' | ' |
2012 Separation Transaction | ' | ' | ' |
Loss on extinguishment of debt | 0 | 0 | ' |
Professional fees | 1 | 191 | 24 |
Non-cash impairment charges | 0 | 0 | ' |
Information technology related costs | 0 | 30 | ' |
Employee compensation costs | 1 | 17 | ' |
Marketing costs | 0 | 5 | ' |
Interest expense | 0 | 3 | ' |
Other costs | -10 | 32 | ' |
Total Pre-Tax Separation Charges | -8 | 278 | ' |
Tax-related separation charges | 0 | -2 | ' |
Tax benefit on Pre-Tax Separation Charges | 0 | -5 | ' |
Total Separation Charges, net of tax benefit | ($8) | $271 | ' |
Divestitures_Details
Divestitures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Jun. 28, 2013 | Sep. 28, 2012 | Dec. 24, 2010 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Dec. 22, 2010 | Sep. 30, 2011 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
North America Guarding Business | FEMSA | Atkore | Atkore | Atkore | Atkore | Atkore | Electrical and Metal Products | NA Installation & Services | 2012 Separation Agreement | 2007 Separation Agreement | 2007 Separation Agreement | 2007 Separation Agreement | |||||
North America Guarding Business | |||||||||||||||||
Divestitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss (gain) on write-down | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from divestiture of businesses | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash divested on sale | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets to be divested included in prepaid expenses and other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' |
Total liabilities to be divested included in accrued and other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' |
Increase (decrease) to shareholders' equity due to spin-off | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0 | 0 | 13 |
Net cash proceeds on sale of discontinued operations | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax income (loss) on sale of discontinued operations | ' | 0 | 4 | 170 | ' | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock sold as percentage of outstanding capital stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' |
Divestiture of businesses, net of cash divested | ' | 17 | -5 | 709 | ' | ' | 713 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gains (loss) on divestiture | ' | -20 | -14 | 224 | ' | ' | 259 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative translation gain on divestiture | ' | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital adjustment that reduced the gain on disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | 44 | 92 | ' | ' | ' | ' | ' | ' | ' | ' |
Company's share in net income (loss) of equity investments | ' | -48 | -26 | -12 | ' | ' | ' | -48 | -26 | -12 | ' | ' | ' | ' | ' | ' | ' |
Income tax expense associated with pre-2007 Separation tax liabilities | ' | 0 | 21 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement pursuant to tax sharing agreement | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on divestiture less settlement of working capital adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $248 | ' | ' | ' | ' | ' |
Divestitures_Details_2
Divestitures (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Net revenue, pre-tax income, pre-tax income on sale, income tax expense and income, net of tax from discontinued operations: | ' | ' | ' |
Net revenue | $0 | $7,148 | $6,752 |
Pre-tax income from discontinued operations | 0 | 1,208 | 1,145 |
Pre-tax separation charges included within discontinued operations (See Note 2) | 8 | -278 | -24 |
Pre-tax gain on sale of discontinued operations | 0 | 4 | 170 |
Income tax benefit (expense) | 1 | -130 | -189 |
Income from discontinued operations, net of income taxes | $9 | $804 | $1,102 |
Restructuring_and_Asset_Impair2
Restructuring and Asset Impairment Charges, Net (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and asset impairment charges, net | $114 | $104 | $78 | ' |
Charges reflected in restructuring, asset impairments and divestiture charges (gains), net | 114 | 104 | 75 | ' |
Charges reflected in cost of sales | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and asset impairment charges, net | 0 | 0 | 2 | ' |
Charges reflected in SG&A | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and asset impairment charges, net | 0 | 0 | 1 | ' |
2013 actions | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and asset impairment charges, net | 99 | 0 | 0 | ' |
2012 actions | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and asset impairment charges, net | 3 | 94 | 0 | 97 |
2011 and prior actions | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and asset impairment charges, net | 12 | 10 | 78 | ' |
Minimum | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Expected restructuring and related charges | 50 | ' | ' | ' |
Maximum | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Expected restructuring and related charges | $75 | ' | ' | ' |
Restructuring_and_Asset_Impair3
Restructuring and Asset Impairment Charges, Net (Details 2) (USD $) | 12 Months Ended | 24 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | $114 | $104 | $78 | ' | |
2013 actions | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 99 | 0 | 0 | ' | |
Restructuring charges | 102 | ' | ' | ' | |
2013 actions | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 92 | ' | ' | ' | |
2013 actions | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 7 | ' | ' | ' | |
2013 actions | NA Installation & Services | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 35 | ' | ' | ' | |
2013 actions | NA Installation & Services | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 34 | ' | ' | ' | |
2013 actions | NA Installation & Services | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 1 | ' | ' | ' | |
2013 actions | ROW Installation & Services | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 50 | ' | ' | ' | |
2013 actions | ROW Installation & Services | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 46 | ' | ' | ' | |
2013 actions | ROW Installation & Services | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 4 | ' | ' | ' | |
2013 actions | Global Products | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 11 | ' | ' | ' | |
2013 actions | Global Products | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 9 | ' | ' | ' | |
2013 actions | Global Products | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 2 | ' | ' | ' | |
2013 actions | Corporate and Other | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 3 | ' | ' | ' | |
2013 actions | Corporate and Other | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 3 | ' | ' | ' | |
2013 actions | Corporate and Other | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 0 | ' | ' | ' | |
2012 actions | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 3 | 94 | 0 | 97 | |
Restructuring charges | 8 | ' | ' | ' | |
2012 actions | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 2 | 48 | [1] | ' | 50 |
2012 actions | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 1 | 46 | [2] | ' | 47 |
2012 actions | NA Installation & Services | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | ' | 44 | ' | 44 | |
2012 actions | NA Installation & Services | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | ' | 10 | [1] | ' | 10 |
2012 actions | NA Installation & Services | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | ' | 34 | [2] | ' | 34 |
Asset impairment charges | ' | 20 | ' | ' | |
2012 actions | ROW Installation & Services | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 4 | 27 | ' | 31 | |
2012 actions | ROW Installation & Services | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 3 | 22 | [1] | ' | 25 |
2012 actions | ROW Installation & Services | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 1 | 5 | [2] | ' | 6 |
Asset impairment charges | ' | 1 | ' | ' | |
2012 actions | Global Products | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | -1 | 10 | ' | 9 | |
2012 actions | Global Products | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | -1 | 7 | [1] | ' | 6 |
2012 actions | Global Products | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | 0 | 3 | [2] | ' | 3 |
Asset impairment charges | ' | 2 | ' | ' | |
2012 actions | Corporate and Other | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | ' | 13 | ' | 13 | |
2012 actions | Corporate and Other | Employee Severance and Benefits | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | ' | 9 | [1] | ' | 9 |
Restructuring charges | ' | 6 | ' | ' | |
2012 actions | Corporate and Other | Facility Exit and Other Charges | ' | ' | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | |
Restructuring and asset impairment charges, net | ' | 4 | [2] | ' | 4 |
Restructuring charges | ' | $4 | ' | ' | |
[1] | Includes $6 million of charges for the year ended SeptemberB 28, 2012 related to the 2012B Separation recorded by Corporate and Other. | ||||
[2] | Includes $20 million, $1 million and $2 million of asset impairment charges recorded by NA InstallationB & Services, ROW InstallationB & Services and Global Products, respectively, for the year ended SeptemberB 28, 2012 related to the 2012B Separation. Includes $4 million of other restructuring charges recorded by Corporate and Other for the year ended SeptemberB 28, 2012 related to the 2012B Separation. |
Restructuring_and_Asset_Impair4
Restructuring and Asset Impairment Charges, Net (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Restructuring Reserves | ' | ' | ' |
Balance at the end of the period | $131 | $103 | ' |
2013 actions | ' | ' | ' |
Restructuring Reserves | ' | ' | ' |
Balance at the beginning of the period | 0 | ' | ' |
Charges | 102 | ' | ' |
Reversals | -4 | ' | ' |
Utilization | -29 | ' | ' |
Transfer | -1 | ' | ' |
Balance at the end of the period | 68 | ' | ' |
2012 actions | ' | ' | ' |
Restructuring Reserves | ' | ' | ' |
Balance at the beginning of the period | 38 | ' | ' |
Charges | 8 | ' | ' |
Reversals | -5 | ' | ' |
Utilization | -25 | ' | ' |
Currency translation | -1 | ' | ' |
Balance at the end of the period | 15 | ' | ' |
2011 and prior actions | ' | ' | ' |
Restructuring Reserves | ' | ' | ' |
Balance at the beginning of the period | 65 | ' | ' |
Charges | 12 | 10 | 78 |
Utilization | -30 | -64 | -90 |
Balance at the end of the period | $48 | $65 | ' |
Restructuring_and_Asset_Impair5
Restructuring and Asset Impairment Charges, Net (Details 4) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 |
In Millions, unless otherwise specified | Accrued and other current liabilities | Accrued and other current liabilities | Other liabilities | Other liabilities | Repositioning actions | ||
Selling, general and administrative expenses | |||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | $131 | $103 | $113 | $84 | $18 | $19 | ' |
Repositioning charges related to professional fees | ' | ' | ' | ' | ' | ' | $20 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Mar. 30, 2012 |
Business Acquisition Disclosures | ' | ' | ' | ' |
Business combination, consideration transferred | $257 | ' | ' | ' |
Acquisition of businesses, net of cash acquired | 229 | 217 | 353 | ' |
Cash balance acquired in the acquisition of a business | 9 | 17 | 3 | ' |
Business Acquisition, Purchase Price Allocation, Redeemable Noncontrolling Interest | ' | ' | ' | 12 |
Business combination, contingent consideration, liability | 28 | ' | ' | ' |
Redeemable noncontrolling interest | 12 | 12 | ' | ' |
Acquisition and integration costs | 4 | 9 | 5 | ' |
Exacq Technologies | ' | ' | ' | ' |
Business Acquisition Disclosures | ' | ' | ' | ' |
Acquisition of businesses, net of cash acquired | 148 | ' | ' | ' |
Cash balance acquired in the acquisition of a business | 2 | ' | ' | ' |
Visonic Ltd. | ' | ' | ' | ' |
Business Acquisition Disclosures | ' | ' | ' | ' |
Acquisition of businesses, net of cash acquired | ' | 94 | ' | ' |
Cash balance acquired in the acquisition of a business | ' | 5 | ' | ' |
Signature Security Group | ' | ' | ' | ' |
Business Acquisition Disclosures | ' | ' | ' | ' |
Acquisition of businesses, net of cash acquired | ' | ' | 184 | ' |
Cash balance acquired in the acquisition of a business | ' | ' | 2 | ' |
Chemguard Inc. | ' | ' | ' | ' |
Business Acquisition Disclosures | ' | ' | ' | ' |
Acquisition of businesses, net of cash acquired | ' | ' | 130 | ' |
Cash balance acquired in the acquisition of a business | ' | ' | $1 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' |
Federal | $14 | ($4) | ($4) |
State | 8 | 6 | -2 |
Non U.S. | 95 | 172 | 144 |
Current income tax provision | 117 | 174 | 138 |
Deferred: | ' | ' | ' |
Federal | -12 | -10 | -17 |
State | 5 | -2 | -12 |
Non U.S. | 15 | 186 | 25 |
Deferred income tax provision | 8 | 174 | -4 |
Total income tax provision | 125 | 348 | 134 |
Non-U.S. income from continuing operations before income taxes | 955 | 198 | 364 |
Deferred tax assets: | ' | ' | ' |
Accrued liabilities and reserves | 289 | 56 | ' |
Tax loss and credit carryforwards | 2,434 | 2,240 | ' |
Postretirement benefits | 191 | 261 | ' |
Deferred revenue | 114 | 138 | ' |
Other | 102 | 380 | ' |
Total deferred tax assets | 3,130 | 3,075 | ' |
Deferred tax liabilities: | ' | ' | ' |
Property, plant and equipment | -192 | -177 | ' |
Intangibles assets | -568 | -500 | ' |
Other | -167 | -101 | ' |
Total deferred tax liabilities | -927 | -778 | ' |
Net deferred tax asset before valuation allowance | 2,203 | 2,297 | ' |
Valuation allowance | -1,950 | -1,826 | ' |
Net deferred tax asset | $253 | $471 | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Valuation allowance | $1,950 | $1,826 | ' |
Deferred tax assets, operating loss carryforwards | 95 | ' | ' |
Unrecognized tax benefits that would affect the effective tax rate | 236 | 107 | ' |
Accrued interest and penalties related to the unrecognized tax benefits | 41 | 38 | ' |
Income tax expense for interest and penalties accrued related to unrecognized tax benefits | 2 | 3 | 2 |
Reconciliation of the beginning and ending amount of unrecognized tax benefit | ' | ' | ' |
Unrecognized tax benefit, balance at beginning of period | 121 | 145 | 137 |
Additions based on tax positions related to the current year | 137 | 18 | 9 |
Additions based on tax positions related to prior years | 7 | 7 | 31 |
Reductions based on tax positions related to prior years | -6 | -38 | -28 |
Reductions related to settlements | 0 | -1 | -4 |
Reductions related to lapse of the applicable statute of limitations | -2 | -3 | -6 |
Foreign currency translation adjustments | 0 | -7 | 6 |
Unrecognized tax benefit, balance at end of period | 257 | 121 | 145 |
Non-U.S. jurisdictions | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 7,592 | ' | ' |
Net operating loss carryforwards with no expiration | 6,959 | ' | ' |
Net operating loss carryforwards which will expire in future years | 633 | ' | ' |
U.S. jurisdictions | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 810 | ' | ' |
State jurisdictions | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Net operating loss carryforwards | $467 | ' | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Sep. 27, 2013 | Jun. 20, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
company | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2012 Tax Sharing Agreement | Tyco International | Tyco International | Covidien | TE Connectivity | TE Connectivity | Pentair and ADT | Pentair and ADT | ADT | ADT | Pentair | Pentair | Covidien and TE Connectivity | |
2007 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2012 Tax Sharing Agreement | ||||||||||||
Tax Sharing Agreements and Other Income Tax Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that may be resolved in the next twelve months, low end of range | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that may be resolved in the next twelve months, high end of range | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre - 2012 separation related tax liabilities | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liability threshold under Tax Sharing Agreement | ' | ' | ' | ' | ' | 725,000,000 | ' | ' | 500,000,000 | ' | ' | ' | ' | 225,000,000 | ' | ' | ' | ' | ' |
Tax liability share percentage | ' | ' | ' | ' | ' | ' | ' | 27.00% | 52.50% | 42.00% | 31.00% | ' | ' | ' | 58.00% | 27.50% | 42.00% | 20.00% | ' |
Net cash payment per tax sharing agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 |
Income tax examination, additional taxes owed | ' | 883,300,000 | 883,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, proposed tax penalties | ' | 154,000,000 | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of additional tax deficiency | ' | 30,000,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of disallowed interest and related deductions | ' | 2,900,000,000 | 2,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of estimated adverse impact on financial results | ' | 6,600,000,000 | 6,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
IRS penalties on intercompany stock transfers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | ' | ' | ' | ' | ' | ' | ' |
Net receivable: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | 0 | 9,000,000 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | 67,000,000 | 66,000,000 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net receivable | ' | ' | 67,000,000 | 75,000,000 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax sharing agreement related liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued and other current liabilities | ' | ' | -130,000,000 | -14,000,000 | ' | -33,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | ' | ' | -254,000,000 | -394,000,000 | ' | -36,000,000 | -71,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax sharing agreement related liabilities | ' | ' | -384,000,000 | -408,000,000 | ' | -69,000,000 | -71,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net liability | ' | ' | -317,000,000 | -333,000,000 | ' | -69,000,000 | -71,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Expense)/income | ' | ' | 0 | -4,000,000 | -7,000,000 | -32,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of companies responsible for issuing shares to employees | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges for estimated allowable deductions for ADT and Pentair shares issued to Company employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | ' | ' | ' | ' | ' | ' |
Income from estimated allowable deductions for ADT and Pentair shares issued to Company employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' |
Other (expense) income from estimated allowable deductions for ADT and Pentair shares issued to Company employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32,000,000 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Income Tax Disclosure [Abstract] | ' | ' | ' | |||
Notional U.S. federal income tax expense at the statutory rate | $245 | $15 | $267 | |||
U.S. state income tax provision, net | -3 | 6 | 10 | |||
Non U.S. net earnings | -211 | [1] | 4 | [1] | -108 | [1] |
Nondeductible charges | 79 | 61 | -18 | |||
Valuation allowance | 4 | 235 | -3 | |||
Other | 11 | 27 | -14 | |||
Total income tax provision | $125 | $348 | $134 | |||
[1] | Excludes nondeductible charges and other items which are broken out separately in the table. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Income | ' | ' | ' |
Income (loss) from continuing operations | $527 | ($332) | $617 |
Income (loss) from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments | $527 | ($332) | $617 |
Shares | ' | ' | ' |
Income (loss) from continuing operations (in shares) | 465 | 463 | 474 |
Share options and restricted share awards (in shares) | 7 | ' | 5 |
Income (loss) from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments (in shares) | 472 | 463 | 479 |
Per Share Amount | ' | ' | ' |
Income (loss) from continuing operations (in dollars per share) | $1.14 | ($0.72) | $1.30 |
Income (loss) from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments (in dollars per share) | $1.12 | ($0.72) | $1.29 |
Stock Options | ' | ' | ' |
Per Share Amount | ' | ' | ' |
Stock options and restricted stock excluded from the computation of earnings per share | 4 | 12 | 10 |
Restricted Stock | ' | ' | ' |
Per Share Amount | ' | ' | ' |
Stock options and restricted stock excluded from the computation of earnings per share | 1 | 0 | 2 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' |
Gross Goodwill, Beginning balance | $6,128 | $5,989 |
Impairments, Beginning balance | -1,761 | -1,761 |
Carrying Amount of Goodwill, Beginning balance | 4,367 | 4,228 |
Acquisitions/ Purchase Accounting Adjustments | 191 | 104 |
Transfers | 0 | ' |
Currency Translation | -39 | 35 |
Gross Goodwill, Ending balance | 6,280 | 6,128 |
Impairments, Ending balance | -1,761 | -1,761 |
Carrying Amount of Goodwill, Ending Balance | 4,519 | 4,367 |
NA Installation & Services | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' |
Gross Goodwill, Beginning balance | 2,127 | 2,119 |
Impairments, Beginning balance | -126 | -126 |
Carrying Amount of Goodwill, Beginning balance | 2,001 | 1,993 |
Acquisitions/ Purchase Accounting Adjustments | 24 | 0 |
Transfers | -39 | ' |
Currency Translation | -8 | 8 |
Gross Goodwill, Ending balance | 2,104 | 2,127 |
Impairments, Ending balance | -126 | -126 |
Carrying Amount of Goodwill, Ending Balance | 1,978 | 2,001 |
ROW Installation & Services | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' |
Gross Goodwill, Beginning balance | 2,305 | 2,241 |
Impairments, Beginning balance | -1,068 | -1,068 |
Carrying Amount of Goodwill, Beginning balance | 1,237 | 1,173 |
Acquisitions/ Purchase Accounting Adjustments | 77 | 38 |
Transfers | 0 | ' |
Currency Translation | -30 | 26 |
Gross Goodwill, Ending balance | 2,352 | 2,305 |
Impairments, Ending balance | -1,068 | -1,068 |
Carrying Amount of Goodwill, Ending Balance | 1,284 | 1,237 |
Global Products | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' |
Gross Goodwill, Beginning balance | 1,696 | 1,629 |
Impairments, Beginning balance | -567 | -567 |
Carrying Amount of Goodwill, Beginning balance | 1,129 | 1,062 |
Acquisitions/ Purchase Accounting Adjustments | 90 | 66 |
Transfers | 39 | ' |
Currency Translation | -1 | 1 |
Gross Goodwill, Ending balance | 1,824 | 1,696 |
Impairments, Ending balance | -567 | -567 |
Carrying Amount of Goodwill, Ending Balance | $1,257 | $1,129 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Intangible Assets, Excluding Goodwill [Line Items] | ' | ' | ' |
Gross Carrying Amount, Amortizable | $2,194 | $2,192 | ' |
Accumulated Amortization | 1,689 | 1,722 | ' |
Gross Carrying Amount, Non-Amortizable | 299 | 301 | ' |
Intangible asset amortization expense and estimated aggregate amortization expense ($ in millions): | ' | ' | ' |
Intangible asset amortization expense | 99 | 102 | 98 |
Estimated aggregate amortization expense, 2014 | 92 | ' | ' |
Estimated aggregate amortization expense, 2015 | 74 | ' | ' |
Estimated aggregate amortization expense, 2016 | 67 | ' | ' |
Estimated aggregate amortization expense, 2017 | 58 | ' | ' |
Estimated aggregate amortization expense, 2018 and thereafter | 214 | ' | ' |
Contracts and related customer relationships | ' | ' | ' |
Intangible Assets, Excluding Goodwill [Line Items] | ' | ' | ' |
Gross Carrying Amount, Amortizable | 1,531 | 1,604 | ' |
Accumulated Amortization | 1,199 | 1,245 | ' |
Intellectual property | ' | ' | ' |
Intangible Assets, Excluding Goodwill [Line Items] | ' | ' | ' |
Gross Carrying Amount, Amortizable | 623 | 552 | ' |
Accumulated Amortization | 477 | 468 | ' |
Gross Carrying Amount, Non-Amortizable | 223 | 224 | ' |
Other | ' | ' | ' |
Intangible Assets, Excluding Goodwill [Line Items] | ' | ' | ' |
Gross Carrying Amount, Amortizable | 40 | 36 | ' |
Accumulated Amortization | 13 | 9 | ' |
Franchise rights | ' | ' | ' |
Intangible Assets, Excluding Goodwill [Line Items] | ' | ' | ' |
Gross Carrying Amount, Non-Amortizable | $76 | $77 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Maximum employee loan amount outstanding | 21 | 21 | ' |
Loans receivable from related parties | 21 | 21 | ' |
Non interest bearing related party loans outstanding | 1 | 1 | ' |
Key Employee Loan Program | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Interest rate basis for employee loans | 'six-month LIBOR | ' | ' |
Number of months of six-month LIBOR rate used to calculate interest on employee loans | '12 months | ' | ' |
Repayment period for employee loans (in years) | '10 years | ' | ' |
Employee Relocation Programs | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Repayment period for employee loans (in years) | '15 years | ' | ' |
L. Dennis Kozlowski | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Loans receivable from related parties | 28 | 28 | ' |
Interest rate on loans with related party (as a percent) | 0.40% | 0.70% | ' |
Commercial Transactions with Entities Related to Directors | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchases from businesses as a percent of consolidated net revenue, maximum | 1.00% | 1.00% | 1.00% |
Debt_Details
Debt (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Jan. 12, 2011 | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | $1,463,000,000 | $1,491,000,000 | ' | ||
Less: current portion | 20,000,000 | 10,000,000 | ' | ||
Long-term debt | 1,443,000,000 | 1,481,000,000 | ' | ||
Fair value of debt which is actively traded | 1,676,000,000 | 1,786,000,000 | ' | ||
Carrying amount | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Debt instrument, fair value | 1,443,000,000 | 1,443,000,000 | ' | ||
3.375% public notes due 2015 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | 258,000,000 | 257,000,000 | ' | ||
Debt stated interest rate | 3.38% | 3.38% | ' | ||
3.75% public notes due 2018 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | 67,000,000 | 67,000,000 | ' | ||
Debt stated interest rate | 3.75% | 3.75% | 3.75% | ||
8.5% public notes due 2019 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | 364,000,000 | 364,000,000 | ' | ||
Debt stated interest rate | 8.50% | 8.50% | ' | ||
7.0% public notes due 2019 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | 246,000,000 | 247,000,000 | ' | ||
Debt stated interest rate | 7.00% | 7.00% | ' | ||
6.875% public notes due 2021 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | 466,000,000 | 466,000,000 | ' | ||
Debt stated interest rate | 6.88% | 6.88% | ' | ||
4.625% public notes due 2023 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | 42,000,000 | 42,000,000 | ' | ||
Debt stated interest rate | 4.63% | 4.63% | 4.63% | ||
Other | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Total debt | $20,000,000 | [1],[2] | $48,000,000 | [1],[2] | ' |
[1] | $10 million of the amount shown as other, comprises the current portion of the Company's total debt as of SeptemberB 28, 2012. | ||||
[2] | $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of SeptemberB 27, 2013. |
Debt_Details_2
Debt (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Jan. 31, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Jan. 12, 2011 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Jan. 31, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Jan. 12, 2011 | Sep. 28, 2012 | Jan. 31, 2011 | Sep. 27, 2013 | Feb. 28, 2011 | Sep. 27, 2013 | Jun. 22, 2012 | Mar. 24, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Tyco International Finance S.A. | Tyco International Finance S.A. | 6.0% public notes due 2013 | 6.0% public notes due 2013 | 6.0% public notes due 2013 | 4.125% public notes due 2014 | 4.125% public notes due 2014 | 4.125% public notes due 2014 | 3.375% public notes due 2015 | 3.375% public notes due 2015 | 3.375% public notes due 2015 | 3.75% public notes due 2018 | 3.75% public notes due 2018 | 3.75% public notes due 2018 | 3.75% public notes due 2018 | 3.75% public notes due 2018 | 8.5% public notes due 2019 | 8.5% public notes due 2019 | 8.5% public notes due 2019 | 7.0% public notes due 2019 | 7.0% public notes due 2019 | 7.0% public notes due 2019 | 6.875% public notes due 2021 | 6.875% public notes due 2021 | 6.875% public notes due 2021 | 4.625% public notes due 2023 | 4.625% public notes due 2023 | 4.625% public notes due 2023 | 4.625% public notes due 2023 | 4.625% public notes due 2023 | 3.75% public notes due 2018 and 4.625% public notes due 2023 | 3.75% public notes due 2018 and 4.625% public notes due 2023 | 6.75% public notes due 2011 | Commercial paper | Senior line of credit dated June 22, 2012 | Senior line of credit due 2011 | Public notes | Public notes | Carrying amount | Carrying amount | ||||
Tyco International Finance S.A. | Tyco International Finance S.A. | Tyco International Finance S.A. | Tyco International Finance S.A. | Tyco International Finance S.A. | Tyco International Finance S.A. | Tyco International Finance S.A. | Tyco International Finance S.A. | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,443,000,000 | $1,443,000,000 |
Total amounts redeemed | ' | ' | ' | 2,600,000,000 | ' | ' | ' | 656,000,000 | ' | ' | 500,000,000 | ' | ' | 242,000,000 | ' | ' | ' | ' | 183,000,000 | ' | ' | 386,000,000 | ' | ' | 180,000,000 | ' | ' | 245,000,000 | ' | ' | ' | ' | 208,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt stated interest rate | ' | ' | ' | ' | ' | 6.00% | 6.00% | 6.00% | 4.13% | 4.13% | 4.13% | 3.38% | 3.38% | 3.38% | ' | 3.75% | 3.75% | 3.75% | 3.75% | 8.50% | 8.50% | 8.50% | 7.00% | 7.00% | 7.00% | 6.88% | 6.88% | 6.88% | ' | 4.63% | 4.63% | 4.63% | 4.63% | ' | ' | 6.75% | ' | ' | ' | ' | ' | ' | ' |
Loss (gain) on the retirement of debt | 0 | 453,000,000 | 0 | ' | 453,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of long-term debt | 0 | 19,000,000 | 497,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 494,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt principal redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 516,000,000 | ' | ' | ' | ' | ' | ' | ' |
Available line of credit under revolving credit agreement | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,000,000,000 | 750,000,000 | ' | ' | ' | ' |
Line of credit facility, amount outstanding | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Revolving credit line, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '4 years | ' | ' | ' | ' |
Description of variable interest rate basis | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price, percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price upon control triggering event, percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in future periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in 2014 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in 2015 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in 2016 | 258,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in 2017 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in 2018 | 67,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturing in years after 2018 | 1,111,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Debt Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, weighted average interest rate | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, weighted average interest rate, excluding the impact of interest rate swaps | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans payable and current maturities of long-term debt | 20,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' |
Impact of the Company's interest rate swap agreements on reported interest expense | ' | ($18,000,000) | ($22,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantees_Details
Guarantees (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Guarantees disclosure | ' | ' |
Performance guarantee obligations for 2012 separation, fair value | $3 | $3 |
Performance guarantee obligations for 2007 separation, fair value | 3 | 3 |
Letters of credit and bank guarantees outstanding | 424 | ' |
Roll-forward of warranty accrual: | ' | ' |
Warranty accrual, balance at the beginning of the period | 30 | ' |
Warranties issued | 16 | ' |
Changes in estimates | -4 | ' |
Settlements | -11 | ' |
Warranty accrual, balance at the end of the period | $31 | ' |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Maximum amount of future exposure on credit risk derivatives | $4 | ' |
Foreign Exchange Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | $278 | $225 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Available-for-sale investments | ' | ' |
Cost Basis | $243 | $200 |
Gross Unrealized Gain | 0 | 3 |
Consolidated Balance Sheet Classification - Prepaids and Other Current Assets | 100 | 70 |
Consolidated Balance Sheet Classification - Other Assets | 143 | 133 |
Due in one year or less - Cost Basis | 100 | ' |
Due after one year through five years - Cost Basis | 143 | ' |
Level 1 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 171 | 86 |
Level 2 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 72 | 117 |
Total | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 243 | 203 |
Due in one year or less - Fair Value | 100 | ' |
Due after one year through five years - Fair Value | 143 | ' |
Corporate debt securities | ' | ' |
Available-for-sale investments | ' | ' |
Cost Basis | 34 | 33 |
Gross Unrealized Gain | 0 | 1 |
Consolidated Balance Sheet Classification - Prepaids and Other Current Assets | 11 | 7 |
Consolidated Balance Sheet Classification - Other Assets | 23 | 27 |
Corporate debt securities | Level 1 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 0 | 0 |
Corporate debt securities | Level 2 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 34 | 34 |
Corporate debt securities | Total | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 34 | 34 |
U.S. Government debt securities | ' | ' |
Available-for-sale investments | ' | ' |
Cost Basis | 209 | 167 |
Gross Unrealized Gain | 0 | 2 |
Consolidated Balance Sheet Classification - Prepaids and Other Current Assets | 89 | 63 |
Consolidated Balance Sheet Classification - Other Assets | 120 | 106 |
U.S. Government debt securities | Level 1 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 171 | 86 |
U.S. Government debt securities | Level 2 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | 38 | 83 |
U.S. Government debt securities | Total | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Fair Value | $209 | $169 |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (Intercompany, USD $) | 12 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |
Intercompany | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Intercompany loans designated as permanent | $2,000,000,000 | $2,000,000,000 | ' |
Cumulative gain/(loss) on intercompany loans designated as permanent | $3,000,000 | $48,000,000 | ($2,000,000) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Rental expenses | $293 | $299 | $270 |
Operating Leases | ' | ' | ' |
2014 | 158 | ' | ' |
2015 | 128 | ' | ' |
2016 | 107 | ' | ' |
2017 | 75 | ' | ' |
2018 | 29 | ' | ' |
Thereafter | 40 | ' | ' |
Total operating leases, minimum lease payments | 537 | ' | ' |
Purchase obligations | ' | ' | ' |
2014 | 334 | ' | ' |
2015 | 64 | ' | ' |
2016 | 42 | ' | ' |
2017 | 21 | ' | ' |
2019 and after | $20 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 48 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
Jun. 20, 2013 | Sep. 27, 2013 | Mar. 29, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 30, 2002 | Mar. 30, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 29, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Dec. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | |
2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Remedial Costs | Remediation and Monitoring Costs | Tyco International | Covidien | TE Connectivity | Frank E. Walsh, Jr. | Legacy Matters | Environmental Matters | Asbestos Matters | Asbestos Matters | Asbestos Matters | Asbestos Matters | Compliance Matters | Compliance Matters | Compliance Matters | Compliance Matters | Legacy Securities Matters | Other Matters | |
Other Liabilities | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | Former CFO | Remedial Costs | claim | Yarway Corporation | Covidien | Selling, General and Administrative Expenses | ||||||||||||||
Legacy Matters Related to Former Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claims against the company by former CEO and former CFO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $140,000,000 | ' |
Legacy matter liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,000,000 | ' |
Adjustment in loss reserve due to lapsing of time periods, recognized net gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined payments made by the entity which are subject of a civil complaint against a former director | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments made by the entity to a former director which are subject of a civil complaint | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental and Asbestos Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency remedial costs, minimum | ' | ' | ' | ' | ' | ' | 62,000,000 | ' | ' | ' | ' | ' | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency remedial costs, maximum | ' | ' | ' | ' | ' | ' | 137,000,000 | ' | ' | ' | ' | ' | 162,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Probable contingency loss | ' | ' | ' | ' | ' | ' | 93,000,000 | ' | ' | ' | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, accrued and other current liabilities | ' | ' | ' | ' | ' | ' | 79,000,000 | ' | ' | ' | ' | ' | 82,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, other liabilities | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | 23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation expense | ' | ' | 100,000,000 | 17,000,000 | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation expenses, net of recoveries | ' | ' | ' | ' | ' | 132,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 155,000,000 | ' | 169,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' |
Pending claims, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200 | ' | ' | ' | ' | ' | ' | ' |
Revised look back period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Look back period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Look forward period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' |
Revised look forward period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, impact on income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, impact on net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, impact on income (loss) from continuing operations before income taxes, per basic and diluted shares (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, impact on net income (loss), per basic and diluted shares (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, before insurance recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 401,000,000 | ' | 321,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, insurance recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 246,000,000 | ' | 152,000,000 | ' | ' | ' | ' | ' | ' | ' |
Compliance Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for fines, disgorgement and prejudgment interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | 5,000,000 | ' | ' |
Payments for Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 13,000,000 | ' | ' | ' | ' |
Tax Litigation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax liability share percentage | ' | ' | ' | ' | ' | ' | ' | 27.00% | 42.00% | 31.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, additional taxes owed | 883,300,000 | 883,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, proposed tax penalties | 154,000,000 | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of additional tax deficiency | 30,000,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of disallowed interest and related deductions | 2,900,000,000 | 2,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of estimated adverse impact on financial results | 6,600,000,000 | 6,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversed estimated recovery from third party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26,500,000 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
U.S. Pension Plans | ' | ' | ' |
Defined benefit plan, net period benefit cost: | ' | ' | ' |
Service cost | $6 | $5 | $7 |
Interest cost | 33 | 35 | 38 |
Expected return on plan assets | -48 | -42 | -43 |
Amortization of initial net (asset) | 0 | 0 | 0 |
Amortization of net actuarial loss | 14 | 13 | 9 |
Plan settlements, curtailments and special termination benefits | 0 | 0 | -2 |
Net periodic benefit cost | 5 | 11 | 9 |
Weighted-average assumptions used to determine net periodic pension cost during the year: | ' | ' | ' |
Discount rate | 3.60% | 4.50% | 5.00% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | ' | ' | 4.00% |
Amortization of net actuarial loss expected over the next fiscal year | 9 | ' | ' |
Non-U.S. Pension Plans | ' | ' | ' |
Defined benefit plan, net period benefit cost: | ' | ' | ' |
Service cost | 19 | 15 | 16 |
Interest cost | 51 | 54 | 58 |
Expected return on plan assets | -67 | -60 | -59 |
Amortization of initial net (asset) | 0 | -1 | 0 |
Amortization of net actuarial loss | 12 | 8 | 10 |
Plan settlements, curtailments and special termination benefits | 0 | 0 | -1 |
Net periodic benefit cost | 15 | 16 | 24 |
Weighted-average assumptions used to determine net periodic pension cost during the year: | ' | ' | ' |
Discount rate | 4.20% | 5.20% | 5.10% |
Expected return on plan assets | 6.80% | 6.80% | 6.80% |
Rate of compensation increase | 3.60% | 3.40% | 3.60% |
Amortization of net actuarial loss expected over the next fiscal year | $13 | ' | ' |
Retirement_Plans_Details_2
Retirement Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
U.S. Pension Plans | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Benefit obligations as of beginning of year | $931 | $819 | ' |
Service cost | 6 | 5 | 7 |
Interest cost | 33 | 35 | 38 |
Actuarial (gain) loss | -132 | 119 | ' |
Transfers | ' | 0 | ' |
Benefits and administrative expenses paid | -46 | -47 | ' |
Plan settlements, curtailments and special termination benefits | ' | 0 | ' |
Benefit obligations as of end of year | 792 | 931 | 819 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets as of beginning of year | 623 | 529 | ' |
Actual return on plan assets | 66 | 105 | ' |
Employer contributions | 9 | 36 | ' |
Acquisitions/divestitures | ' | 0 | ' |
Benefits and administrative expenses paid | -46 | -47 | ' |
Fair value of plan assets as of end of year | 652 | 623 | 529 |
Funded status | -140 | -308 | ' |
Net amount recognized | -140 | -308 | ' |
Non-U.S. Pension Plans | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Benefit obligations as of beginning of year | 1,254 | 1,064 | ' |
Service cost | 19 | 15 | 16 |
Interest cost | 51 | 54 | 58 |
Employee contributions | 2 | 2 | ' |
Actuarial (gain) loss | 91 | 137 | ' |
Transfers | 5 | 5 | ' |
Benefits and administrative expenses paid | -60 | -53 | ' |
Plan settlements, curtailments and special termination benefits | -2 | 0 | ' |
Currency translation | 7 | 30 | ' |
Benefit obligations as of end of year | 1,367 | 1,254 | 1,064 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets as of beginning of year | 1,016 | 877 | ' |
Actual return on plan assets | 114 | 103 | ' |
Employer contributions | 47 | 52 | ' |
Employee contributions | 2 | 2 | ' |
Acquisitions/divestitures | 1 | 6 | ' |
Benefits and administrative expenses paid | -60 | -53 | ' |
Currency translation | 1 | 29 | ' |
Fair value of plan assets as of end of year | 1,119 | 1,016 | 877 |
Funded status | -248 | -238 | ' |
Net amount recognized | ($248) | ($238) | ' |
Retirement_Plans_Details_3
Retirement Plans (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Amounts recognized in the Consolidated Balance Sheets consist of: | ' | ' |
Non-current liabilities | -425 | -593 |
U.S. Pension Plans | ' | ' |
Amounts recognized in the Consolidated Balance Sheets consist of: | ' | ' |
Current liabilities | -3 | -3 |
Non-current liabilities | -137 | -305 |
Net amount recognized | -140 | -308 |
Amounts recognized in accumulated other comprehensive loss (before income taxes) consist of: | ' | ' |
Transition asset | 0 | 0 |
Net actuarial loss | -271 | -435 |
Total loss recognized | -271 | -435 |
Weighted-average assumptions used to determine pension benefit obligations at year end: | ' | ' |
Discount rate | 4.90% | 3.60% |
Accumulated benefit obligation and fair value of plan assets | ' | ' |
Accumulated benefit obligation | 792 | 931 |
Accumulated benefit obligation and fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets: | ' | ' |
Accumulated benefit obligation | 792 | 931 |
Fair value of plan assets | 652 | 623 |
Aggregate benefit obligation and fair value of plan assets for plans with benefit obligations in excess of plan assets: | ' | ' |
Aggregate benefit obligation | 792 | 931 |
Fair value of plan assets | 652 | 623 |
Target weighted-average asset allocation | ' | ' |
Weighted-average asset allocation, equity securities | 100.00% | 100.00% |
Non-U.S. Pension Plans | ' | ' |
Amounts recognized in the Consolidated Balance Sheets consist of: | ' | ' |
Current liabilities | -13 | -13 |
Non-current liabilities | -235 | -225 |
Net amount recognized | -248 | -238 |
Amounts recognized in accumulated other comprehensive loss (before income taxes) consist of: | ' | ' |
Transition asset | 2 | 3 |
Net actuarial loss | -424 | -390 |
Total loss recognized | -422 | -387 |
Weighted-average assumptions used to determine pension benefit obligations at year end: | ' | ' |
Discount rate | 4.20% | 4.20% |
Rate of compensation increase | 3.60% | 3.60% |
Accumulated benefit obligation and fair value of plan assets | ' | ' |
Accumulated benefit obligation | 1,345 | 1,235 |
Accumulated benefit obligation and fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets: | ' | ' |
Accumulated benefit obligation | 1,324 | 1,224 |
Fair value of plan assets | 1,095 | 1,003 |
Aggregate benefit obligation and fair value of plan assets for plans with benefit obligations in excess of plan assets: | ' | ' |
Aggregate benefit obligation | 1,356 | 1,254 |
Fair value of plan assets | 1,108 | 1,016 |
Target weighted-average asset allocation | ' | ' |
Weighted-average asset allocation, equity securities | 100.00% | 100.00% |
Equity securities | U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Target asset allocation, equity securities | 60.00% | ' |
Weighted-average asset allocation, equity securities | 63.00% | 59.00% |
Equity securities | Non-U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Target asset allocation, equity securities | 49.00% | ' |
Weighted-average asset allocation, equity securities | 52.00% | 50.00% |
Debt securities | U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Target asset allocation, equity securities | 40.00% | ' |
Weighted-average asset allocation, equity securities | 35.00% | 39.00% |
Debt securities | Non-U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Target asset allocation, equity securities | 47.00% | ' |
Weighted-average asset allocation, equity securities | 48.00% | 50.00% |
Other asset classes | Non-U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Target asset allocation, equity securities | 4.00% | ' |
Cash and cash equivalents | U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Weighted-average asset allocation, equity securities | 2.00% | 2.00% |
Cash and cash equivalents | Non-U.S. Pension Plans | ' | ' |
Target weighted-average asset allocation | ' | ' |
Weighted-average asset allocation, equity securities | 0.00% | 0.00% |
Retirement_Plans_Details_4
Retirement Plans (Details 4) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Summary of pension plan assets valued using NAV or its equivalent: | ' | ' |
Fair Value | $951 | $849 |
U.S. equity securities | ' | ' |
Summary of pension plan assets valued using NAV or its equivalent: | ' | ' |
Fair Value | 292 | 265 |
Redemption Frequency | 'Daily | 'Daily |
Redemption Notice Period | '1B day, 5 days | '1B day |
Non-U.S. equity securities | ' | ' |
Summary of pension plan assets valued using NAV or its equivalent: | ' | ' |
Fair Value | 390 | 329 |
Redemption Frequency | 'Daily, Semi-monthly | 'Daily, Semi-monthly |
Redemption Notice Period | '1B day, 2B days, 3 days | '1B day, 2B days, 3 days |
Government and government agency securities | ' | ' |
Summary of pension plan assets valued using NAV or its equivalent: | ' | ' |
Fair Value | 148 | 119 |
Redemption Frequency | 'Daily | 'Daily |
Redemption Notice Period | '1B day, 2 days | '1B day |
Corporate debt securities | ' | ' |
Summary of pension plan assets valued using NAV or its equivalent: | ' | ' |
Fair Value | 121 | 136 |
Redemption Frequency | 'Daily | 'Daily |
Redemption Notice Period | '1B day, 2B days | '1B day, 2B days |
Level 1 | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 399 | 340 |
Level 1 | U.S. equity securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 187 | 162 |
Level 1 | Non-U.S. equity securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 165 | 101 |
Level 1 | Government and government agency securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 34 | 58 |
Level 1 | Cash and cash equivalents | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 13 | 19 |
Level 2 | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 1,372 | 1,299 |
Level 2 | U.S. equity securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 296 | 268 |
Level 2 | Non-U.S. equity securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 351 | 336 |
Level 2 | Government and government agency securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 292 | 272 |
Level 2 | Corporate debt securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 379 | 384 |
Level 2 | Mortgage and other asset-backed securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 54 | 39 |
Total | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 1,771 | 1,639 |
Total | U.S. equity securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 483 | 430 |
Total | Non-U.S. equity securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 516 | 437 |
Total | Government and government agency securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 326 | 330 |
Total | Corporate debt securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 379 | 384 |
Total | Mortgage and other asset-backed securities | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | 54 | 39 |
Total | Cash and cash equivalents | ' | ' |
Asset allocations by level within the fair value hierarchy | ' | ' |
Fair value of defined benefit plan assets | $13 | $19 |
Retirement_Plans_Details_5
Retirement Plans (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Expected future benefit payments | ' | ' | ' |
Fiscal 2014 | $3 | ' | ' |
Accrued benefit obligation for Messr. Kozlowski | 93 | 93 | ' |
Accrued benefit obligation for Messr. Swartz | ' | 0 | ' |
Defined Contribution Retirement Plans | ' | ' | ' |
Expense for the defined contribution plans | 63 | 58 | 54 |
Deferred Compensation Plans | ' | ' | ' |
Total deferred compensation liabilities | 113 | 103 | ' |
U.S. Pension Plans | ' | ' | ' |
Company contributions | ' | ' | ' |
Minimum required contributions to pension plans for fiscal year 2012 | 9 | ' | ' |
Minimum required contributions to pension plans for fiscal 2013 | 25 | ' | ' |
Expected future benefit payments | ' | ' | ' |
Fiscal 2014 | 43 | ' | ' |
Fiscal 2015 | 44 | ' | ' |
Fiscal 2016 | 45 | ' | ' |
Fiscal 2017 | 45 | ' | ' |
Fiscal 2018 | 47 | ' | ' |
Fiscal 2019-2023 | 248 | ' | ' |
Deferred Compensation Plans | ' | ' | ' |
Net amount recognized | -140 | -308 | ' |
Actuarial loss (gain) | 132 | -119 | ' |
Non-U.S. Pension Plans | ' | ' | ' |
Company contributions | ' | ' | ' |
Minimum required contributions to pension plans for fiscal year 2012 | 47 | ' | ' |
Minimum required contributions to pension plans for fiscal 2013 | 35 | ' | ' |
Expected future benefit payments | ' | ' | ' |
Fiscal 2014 | 55 | ' | ' |
Fiscal 2015 | 54 | ' | ' |
Fiscal 2016 | 55 | ' | ' |
Fiscal 2017 | 56 | ' | ' |
Fiscal 2018 | 57 | ' | ' |
Fiscal 2019-2023 | 306 | ' | ' |
Deferred Compensation Plans | ' | ' | ' |
Net amount recognized | -248 | -238 | ' |
Actuarial loss (gain) | -91 | -137 | ' |
Postretirement Benefit Plans | ' | ' | ' |
Expected future benefit payments | ' | ' | ' |
Fiscal 2014 | 3 | ' | ' |
Fiscal 2015 | 3 | ' | ' |
Fiscal 2016 | 3 | ' | ' |
Fiscal 2017 | 3 | ' | ' |
Fiscal 2018 | 3 | ' | ' |
Fiscal 2019-2023 | 12 | ' | ' |
Deferred Compensation Plans | ' | ' | ' |
Net amount recognized | 33 | 40 | ' |
Net amount of assets recognized | 0 | 0 | ' |
Actuarial loss (gain) | $8 | $4 | ' |
Shareholders_Equity_and_Compre2
Shareholders' Equity and Comprehensive Income (Narrative) (Details) | Sep. 27, 2013 | Sep. 27, 2013 | Aug. 21, 2013 | 22-May-13 | Mar. 29, 2013 | Mar. 06, 2013 | Mar. 06, 2013 | Feb. 20, 2013 | Nov. 15, 2012 | Sep. 28, 2012 | Sep. 17, 2012 | Aug. 22, 2012 | 23-May-12 | Mar. 07, 2012 | Mar. 09, 2011 | Nov. 14, 2013 |
USD ($) | CHF | USD ($) | USD ($) | USD ($) | USD ($) | CHF | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | |
installment | installment | installment | installment | USD ($) | ||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual dividend, approved, common stock (in dollars per share) | ' | ' | ' | ' | ' | $0.64 | ' | ' | ' | ' | $0.30 | ' | ' | $0.50 | $1 | ' |
Number of installments for payment of dividend | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | 2 | ' | ' | 2 | 4 | ' |
Dividend per share payable in installments (in dollars per share) | ' | ' | ' | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' |
Dividends payable | $148,000,000 | ' | ' | ' | $296,000,000 | ' | ' | ' | ' | $139,000,000 | $139,000,000 | ' | ' | $231,000,000 | $468,000,000 | ' |
Dividend Per Common Stock Payable in Two Installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | $0.25 | ' | ' |
First installment of dividend per common stock (in dollars per share) | ' | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' |
Second installment of dividend on common stock paid (in dollars per share) | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' |
Third Installment, Dividend Per Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 |
Dividend per share related to separation | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
First installment of dividend per common stock related to separation (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' |
Second installment of dividend per common stock related to separation (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, in CHF | ' | 243,181,525 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Capital Prior To Reduction In CHF | ' | ' | ' | ' | ' | ' | 3,258,632,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Capital After Reduction In CHF | ' | ' | ' | ' | ' | ' | 243,181,525 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Shares Par Value in CHF Per Share Prior to Reduction | ' | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Shares Par Value After Reduction In CHF Per Share | ' | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered common shares | 486,363,050 | 486,363,050 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered common shares, par value (in CHF per share) | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, potential maximum increase, value in CHF | ' | 121,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, potential maximum increase, shares | 243,000,000 | 243,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, potential maximum increase, value through conversion, options and warrants, in CHF | ' | 23,964,755 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, potential maximum increase, shares, through conversion, options and warrants | 47,929,510 | 47,929,510 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, potential maximum increase, value, through issuance to employees and other persons, in CHF | ' | 23,964,755 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, potential maximum increase, shares through issuance to employees and other persons | 47,929,510 | 47,929,510 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital, contributed surplus, in CHF | ' | ' | ' | ' | ' | ' | 3,015,450,910 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_and_Compre3
Shareholders' Equity and Comprehensive Income (Share Repurchase Program) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
Share data in Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Jan. 31, 2013 | Apr. 30, 2011 | Sep. 30, 2010 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 30, 2011 |
2013 share repurchase program | 2011 share repurchase program | 2010 share repurchase program | Fiscal 2013 | Fiscal 2013 | Fiscal 2012 | Fiscal 2011 | Fiscal 2011 | ||||
2013 share repurchase program | 2011 share repurchase program | 2011 share repurchase program | 2011 share repurchase program | 2010 share repurchase program | |||||||
Share Repurchase Program [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved Repurchase Amount (in shares) | ' | ' | ' | $600,000,000 | $1,000,000,000 | $1,000,000,000 | ' | ' | ' | ' | ' |
Repurchase of common shares held in treasury, shares | ' | ' | ' | ' | ' | ' | 3 | 7 | 11 | 6 | 24 |
Repurchase of common shares under share repurchase program | 300,000,000 | 500,000,000 | 1,300,000,000 | ' | ' | ' | 100,000,000 | 200,000,000 | 500,000,000 | 300,000,000 | 1,000,000,000 |
Remaining Amount Available (in shares) | ' | ' | ' | $500,000,000 | $0 | $0 | ' | ' | ' | ' | ' |
Shareholders_Equity_and_Compre4
Shareholders' Equity and Comprehensive Income (Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |||
Net income | $533 | $471 | $1,720 | |||
Foreign currency translation | -87 | 92 | 21 | |||
Liquidation of foreign entities (1) | -9 | [1] | 2 | [1] | -164 | [1] |
Income tax expense (2) | -6 | [2] | -1 | [2] | 0 | [2] |
Foreign currency translation, net of tax | -102 | 93 | -143 | |||
Net actuarial gains (losses) | 109 | -212 | -30 | |||
Amortization reclassified into earnings | 26 | 22 | 21 | |||
Settlements/curtailments reclassified to earnings | 0 | 0 | -1 | |||
Foreign currency and other | 0 | -15 | -2 | |||
Divestiture of business | 0 | 0 | 33 | |||
Income tax (expense) benefit | -54 | 42 | 12 | |||
Defined benefit and post retirement plans, net of tax | 81 | -163 | 33 | |||
Unrealized gain (loss) on marketable securities and derivative instruments | 2 | -1 | -2 | |||
Income tax (expense) benefit | -2 | 1 | -2 | |||
Unrealized loss on marketable securities and derivative instruments, net of tax | 0 | 0 | -4 | |||
Deconsolidation of variable interest entity due to adoption of an accounting standard | 0 | 0 | -11 | |||
Total other comprehensive loss, net of tax | -21 | -70 | -125 | |||
Comprehensive income | 512 | 401 | 1,595 | |||
Less: comprehensive loss attributable to noncontrolling interests | -3 | -1 | -10 | |||
Comprehensive income attributable to Tyco common shareholders | 515 | 402 | 1,605 | |||
Currency Translation Adjustments | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |||
Total other comprehensive loss, net of tax | -102 | 93 | -143 | |||
Amounts transferred from accumulated other comprehensive income (loss) currency translation | -9 | 2 | -164 | |||
Amounts transferred from accumulated other comprehensive income currency translation, included in (loss) income from discontinued operations | 0 | 2 | 126 | |||
Income tax expense on net investment hedge | $6 | $1 | $0 | |||
[1] | During the years ended SeptemberB 27, 2013, SeptemberB 28, 2012 and SeptemberB 30, 2011, $9 million of cumulative translation gains, $2 million of cumulative translation loss and $164 million of cumulative translation gains, respectively, were transferred from currency translation adjustments as a result of the sale of foreign entities. Of these amounts, nil, $2 million and $126 million, respectively, are included in income from discontinued operations. | |||||
[2] | Income tax on the net investment hedge was $6 million of an income tax expense for the year ended SeptemberB 27, 2013, $1 million of an income tax expense for the year ended SeptemberB 28, 2012 and nil for the year ended SeptemberB 30, 2011. |
Shareholders_Equity_and_Compre5
Shareholders' Equity and Comprehensive Income (Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Components of accumulated other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | ($966) | ' | ' |
Total other comprehensive loss, net of tax | -21 | -70 | -125 |
Balance at the end of the period | -987 | -966 | ' |
Currency Translation Adjustments | ' | ' | ' |
Components of accumulated other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | -419 | 70 | 213 |
Total other comprehensive loss, net of tax | -102 | 93 | -143 |
Distribution of Tyco Flow Control and ADT | ' | -582 | ' |
Balance at the end of the period | -521 | -419 | 70 |
Unrealized Gain (Loss) on Marketable Securities and Derivative Instruments | ' | ' | ' |
Components of accumulated other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | 0 | 0 | 4 |
Total other comprehensive loss, net of tax | 0 | 0 | -4 |
Distribution of Tyco Flow Control and ADT | ' | 0 | ' |
Balance at the end of the period | 0 | 0 | 0 |
Retirement Plans | ' | ' | ' |
Components of accumulated other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | -547 | -506 | -539 |
Total other comprehensive loss, net of tax | 81 | -163 | 33 |
Distribution of Tyco Flow Control and ADT | ' | 122 | ' |
Balance at the end of the period | -466 | -547 | -506 |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Components of accumulated other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | -966 | -436 | -322 |
Total other comprehensive loss, net of tax | -21 | -70 | -114 |
Distribution of Tyco Flow Control and ADT | ' | -460 | ' |
Balance at the end of the period | ($987) | ($966) | ($436) |
Share_Plans_Details
Share Plans (Details) (USD $) | 12 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 17, 2012 | |
Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses | Separation costs | Separation costs | Separation costs | Restructuring, asset impairments and divestiture charges (gains), net | Restructuring, asset impairments and divestiture charges (gains), net | Restructuring, asset impairments and divestiture charges (gains), net | Total share-based compensation costs included in Continuing operations | Total share-based compensation costs included in Continuing operations | Total share-based compensation costs included in Continuing operations | Discontinued operations | Discontinued operations | Discontinued operations | Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Share Options | Share Options | Tyco International Ltd. Stock and Incentive Plan (the "2004 Plan") | 2012 Plan | 2012 Plan | ||||
Separation costs | Discontinued operations | Separation costs | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total share based compensation cost recognized | $63 | $140 | $110 | $63 | $81 | $89 | $0 | $28 | $0 | $0 | $4 | $0 | $63 | $113 | $89 | $0 | $27 | $21 | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized related tax benefit associated with share-based compensation arrangement | 20,000,000 | 43,000,000 | 31,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 8,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Result of modification in incremental compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | 7,000,000 | 1,000,000 | ' | 1,000,000 | ' | ' | ' |
Result of modification in incremental expense for true-up | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 | $6,000,000 | $1,000,000 | ' | ' | ' | ' | ' |
Maximum common shares to be issued as awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | 50,000,000 |
Minimum Margin of decrease in total number of common shares remaining available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | 3.32 | ' |
Shares available for future grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Share_Plans_Details_2
Share Plans (Details 2) (Stock Options, USD $) | 12 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |
Stock Options | ' | ' | ' |
Schedule of weighted average assumptions | ' | ' | ' |
Expected stock price volatility | 35.00% | 36.00% | 33.00% |
Risk free interest rate | 0.87% | 1.46% | 1.30% |
Expected annual dividend per share | $0.60 | $1 | $0.84 |
Expected life of options (years) | '5 years 9 months 18 days | '5 years 9 months 18 days | '5 years 2 months 12 days |
Share_Plans_Details_3
Share Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average pre-conversion grant-date fair value (in dollars per share) | $7.21 | $12.56 | $9.22 |
Total intrinsic value of options exercised | $73 | $85 | $84 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ' | ' | ' |
Outstanding share options at beginning of period (in shares) | 21,670,340 | ' | ' |
Share options granted (in shares) | 4,214,430 | ' | ' |
Share options exercised (in shares) | -7,306,955 | ' | ' |
Share options expired (in shares) | -640,895 | ' | ' |
Share options forfeited (in shares) | -137,731 | ' | ' |
Pre-separation outstanding share options at end of period (in shares) | 17,799,189 | ' | ' |
Post-separation outstanding share options at end of period (in shares) | ' | 21,670,340 | ' |
Post-separation share options vested and unvested expected to vest at end of period (in shares) | 16,924,966 | ' | ' |
Post-separation share options exercisable at end of period (in shares) | 9,190,538 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' |
Share options outstanding, weighted-average exercise price at beginning of period (in dollars per share) | $20.89 | ' | ' |
Share options granted, weighted-average exercise price (in dollars per share) | $27.27 | ' | ' |
Share options exercised, weighted-average exercise price (in dollars per share) | $20.90 | ' | ' |
Share options expired, weighted-average exercise price (in dollars per share) | $21.69 | ' | ' |
Share options forfeited, weighted-average exercise price (in dollars per share) | $23.98 | ' | ' |
Pre-separation share options outstanding, weighted-average exercise price at end of period (in dollars per share) | $22.34 | ' | ' |
Post-separation share options outstanding, weighted-average exercise price at end of period (in dollars per share) | ' | $20.89 | ' |
Post-separation share options vested and unvested expected to vest at end of period, weighted-average exercise price (in dollars per share) | $22.19 | ' | ' |
Post-separation share options exercisable at end of period, weighted-average exercise price (in dollars per share) | $21.20 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Pre-separation share options outstanding, weighted-average remaining contractual term | '6 years 2 months 12 days | ' | ' |
Post-separation share options vested and unvested expected to vest, weighted-average remaining contractual term | '6 years 1 month 2 days | ' | ' |
Post-separation share options exercisable at end of period, weighted-average remaining contractual term | '4 years 3 months 22 days | ' | ' |
Pre-separation share options outstanding, aggregate intrinsic value | 225 | ' | ' |
Post-separation share options vested and unvested expected to vest, aggregate intrinsic value | 216 | ' | ' |
Post-separation share options exercisable at end of period, aggregate intrinsic value | 126 | ' | ' |
Share Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Total unrecognized compensation cost related to non-vested awards | $32 | ' | ' |
Weighted-average period for recognizing compensation cost related to non-vested options | '2 years 4 months 24 days | ' | ' |
Tyco Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Shares available for future grant | 3,000,000 | ' | ' |
Share_Plans_Details_4
Share Plans (Details 4) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 28, 2012 | Sep. 25, 2009 | Dec. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Restricted stock unit awards | Restricted stock unit awards | Restricted stock unit awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Deferred stock Units | Deferred stock Units | Deferred stock Units | Deferred stock Units and dividend equivalent units | Deferred stock Units and dividend equivalent units | Deferred stock Units and dividend equivalent units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share awards, vesting dependent on passage of time, vesting period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share awards, vesting dependent on performance, vesting period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested share awards at beginning of period (in shares) | 5,164,283 | ' | ' | 0 | ' | ' | ' | ' | 1,100,000 | ' | ' | ' |
Non-vested share awards granted (in shares) | 1,366,929 | ' | ' | 897,197 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' |
Non-vested share awards vested (in shares) | -2,118,908 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested share awards forfeited (in shares) | -443,177 | ' | ' | -41,355 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested share awards, Conversion of performance share units to restricted stock units (in shares) | ' | ' | ' | 855,842 | ' | ' | ' | ' | ' | ' | ' | ' |
Post-separation unvested share awards at end of period (in shares) | 3,969,127 | 5,164,283 | ' | ' | 0 | ' | ' | ' | 1,100,000 | ' | ' | ' |
Non-vested shares, weighted-average grant-date fair value at beginning of period (in dollars per share) | $20.24 | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares granted, weighted-average grant-date fair value (in dollars per share) | $27.66 | $45.54 | $37.90 | $30.36 | $48.86 | $41.37 | ' | ' | ' | ' | ' | ' |
Non-vested shares vested, weighted-average grant-date fair value (in dollars per share) | $18.49 | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares forfeited, weighted-average grant-date fair value (in dollars per share) | $20.76 | ' | ' | $30.36 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares, Conversion of performance share units to restricted units, weighted-average grant-date fair value (in dollars per share) | ' | ' | ' | $30.36 | ' | ' | ' | ' | ' | ' | ' | ' |
Post-separation un-vested shares, weighted-average grant-date fair value at end of period (in dollars per share) | $22.63 | $20.24 | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Total fair value of awards vested during the period | $64 | $90 | $62 | ' | $25 | ' | ' | ' | ' | $0 | $1 | $1 |
Total unrecognized compensation cost related to non-vested awards | $47 | ' | ' | $15 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period for recognizing compensation cost related to non-vested options | '2 years 1 month 6 days | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Segment_Data_Deta
Consolidated Segment Data (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
segment | ||||||
Selected information by segment | ' | ' | ' | |||
Number of operating segments | 3 | ' | ' | |||
Net revenue | $10,647 | [1],[2],[3],[4] | $10,403 | [1],[2],[3],[4] | $10,557 | [1],[2],[3],[4] |
Fiscal period duration | '364 days | '364 days | '371 days | |||
Operating income (loss) | 809 | 685 | 982 | |||
Total Assets | 12,176 | 12,365 | 26,702 | |||
Depreciation and amortization | 427 | 418 | 421 | |||
Capital expenditures | 377 | 406 | 371 | |||
Electrical and Metal Products Segment | ' | ' | ' | |||
Selected information by segment | ' | ' | ' | |||
Operating income (loss) | ' | ' | 7 | |||
Net gain on divestiture | ' | ' | 248 | |||
Operating Segments | NA Installation & Services | ' | ' | ' | |||
Selected information by segment | ' | ' | ' | |||
Net revenue | 3,891 | [1],[4] | 3,962 | [1],[4] | 4,022 | [1],[4] |
Operating income (loss) | 388 | 374 | 425 | |||
Total Assets | 3,829 | 3,989 | 4,025 | |||
Depreciation and amortization | 139 | 137 | 143 | |||
Capital expenditures | 92 | 107 | 76 | |||
Operating Segments | ROW Installation & Services | ' | ' | ' | |||
Selected information by segment | ' | ' | ' | |||
Net revenue | 4,417 | [1],[4] | 4,341 | [1],[4] | 4,434 | [1],[4] |
Operating income (loss) | 433 | 456 | 405 | |||
Total Assets | 3,928 | 3,884 | 3,633 | |||
Depreciation and amortization | 223 | 211 | 211 | |||
Capital expenditures | 217 | 211 | 210 | |||
Operating Segments | Global Products | ' | ' | ' | |||
Selected information by segment | ' | ' | ' | |||
Net revenue | 2,339 | [1],[4] | 2,100 | [1],[4] | 1,754 | [1],[4] |
Operating income (loss) | 307 | 353 | 295 | |||
Total Assets | 2,726 | 2,377 | 2,037 | |||
Depreciation and amortization | 58 | 63 | 49 | |||
Capital expenditures | 58 | 74 | 66 | |||
Operating Segments | Assets of discontinued operations | ' | ' | ' | |||
Selected information by segment | ' | ' | ' | |||
Total Assets | 0 | 0 | 13,960 | |||
Corporate and Other | ' | ' | ' | |||
Selected information by segment | ' | ' | ' | |||
Net revenue | 0 | [1],[4] | 0 | [1],[4] | 347 | [1],[4] |
Operating income (loss) | -319 | [5] | -498 | [5] | -143 | [5] |
Total Assets | 1,693 | 2,115 | 3,047 | |||
Depreciation and amortization | 7 | 7 | 18 | |||
Capital expenditures | $10 | $14 | $19 | |||
[1] | Net revenue by operating segment excludes intercompany transactions. | |||||
[2] | The U.K. represents the largest portion of net revenue in the Europe, Middle East and Africa region with net revenue of $1,168 million, $1,162 million and $1,187 million for 2013, 2012 and 2011, respectively. | |||||
[3] | Net revenue is attributed to individual countries based on the reporting entity that records the transaction. | |||||
[4] | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. | |||||
[5] | Operating income includes $7 million for the year ended SeptemberB 30, 2011, related to the Company's former Electrical and Metals Products business of which a majority interest was sold during the first quarter of fiscal 2011. Operating income for the year ended SeptemberB 30, 2011 also included a gain, net of working capital adjustments, of $248 million related to the same sale. See NoteB 3. |
Consolidated_Segment_Data_Deta1
Consolidated Segment Data (Details 2) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | $10,647 | [1],[2],[3],[4] | $10,403 | [1],[2],[3],[4] | $10,557 | [1],[2],[3],[4] |
Long-lived assets | 1,994 | [5] | 2,051 | [5] | 2,046 | [5] |
North America | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | 5,343 | [3],[4],[6] | 5,257 | [3],[4],[6] | 5,386 | [3],[4],[6] |
Long-lived assets | 892 | [5],[7] | 925 | [5],[7] | 967 | [5],[7] |
Latin America | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | 480 | [3],[4] | 441 | [3],[4] | 459 | [3],[4] |
Long-lived assets | 129 | [5] | 151 | [5] | 144 | [5] |
Europe, Middle East and Africa | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | 2,758 | [2],[3],[4] | 2,766 | [2],[3],[4] | 2,896 | [2],[3],[4] |
Long-lived assets | 340 | [5] | 359 | [5] | 367 | [5] |
Asia-Pacific | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | 2,066 | [3],[4] | 1,939 | [3],[4] | 1,816 | [3],[4] |
Long-lived assets | 601 | [5] | 587 | [5] | 535 | [5] |
Corporate and Other | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Long-lived assets | 32 | [5] | 29 | [5] | 33 | [5] |
United States | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | 4,568 | 4,478 | 4,630 | |||
Long-lived assets | 828 | 856 | 895 | |||
United Kingdom | ' | ' | ' | |||
Long-lived assets comprising property, plant and equipment and excluding goodwill, other intangible assets, deferred taxes and other shared assets | ' | ' | ' | |||
Net revenue | $1,168 | $1,162 | $1,187 | |||
[1] | Net revenue by operating segment excludes intercompany transactions. | |||||
[2] | The U.K. represents the largest portion of net revenue in the Europe, Middle East and Africa region with net revenue of $1,168 million, $1,162 million and $1,187 million for 2013, 2012 and 2011, respectively. | |||||
[3] | Net revenue is attributed to individual countries based on the reporting entity that records the transaction. | |||||
[4] | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. | |||||
[5] | Long-lived assets are comprised primarily of subscriber system assets, net, property, plant and equipment, net, deferred subscriber acquisition costs, net and dealer intangibles. They exclude goodwill, other intangible assets and other assets. | |||||
[6] | Includes U.S. net revenue of $4,568 million, $4,478 million and $4,630 million for 2013, 2012 and 2011, respectively. | |||||
[7] | Includes U.S. long-lived assets of $828 million, $856 million and $895 million for 2013, 2012 and 2011, respectively. |
Supplemental_Consolidations_Ba1
Supplemental Consolidations Balance Sheet Information (Details) (USD $) | Sep. 27, 2013 | Mar. 29, 2013 | Sep. 28, 2012 | Sep. 17, 2012 | Mar. 07, 2012 | Mar. 09, 2011 |
In Millions, unless otherwise specified | ||||||
Balance Sheet Related Disclosures [Abstract] | ' | ' | ' | ' | ' | ' |
Contracts in process | $384 | ' | $360 | ' | ' | ' |
Other | 473 | ' | 524 | ' | ' | ' |
Prepaid expenses and other current assets | 857 | ' | 884 | ' | ' | ' |
Deferred tax asset-non current | 279 | ' | 398 | ' | ' | ' |
Other | 830 | ' | 806 | ' | ' | ' |
Other assets | 1,109 | ' | 1,204 | ' | ' | ' |
Employee-related Liabilities, Current | 327 | ' | 291 | ' | ' | ' |
Deferred income tax liability-current | 44 | ' | 10 | ' | ' | ' |
Income taxes payable-current | 42 | ' | 126 | ' | ' | ' |
Dividends payable | 148 | 296 | 139 | 139 | 231 | 468 |
Other | 1,349 | ' | 1,222 | ' | ' | ' |
Accrued and other current liabilities | 1,910 | ' | 1,788 | ' | ' | ' |
Long-term pension and postretirement liabilities | 425 | ' | 593 | ' | ' | ' |
Deferred income tax liability-non-current | 236 | ' | 211 | ' | ' | ' |
Income taxes payable-non-current | 147 | ' | 124 | ' | ' | ' |
Other | 1,161 | ' | 1,413 | ' | ' | ' |
Other liabilities | $1,969 | ' | $2,341 | ' | ' | ' |
Inventory_Details
Inventory (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Inventories consisted of the following: | ' | ' |
Purchased materials and manufactured parts | $157 | $135 |
Work in process | 93 | 80 |
Finished goods | 405 | 419 |
Inventories | $655 | $634 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment: | ' | ' |
Accumulated depreciation | ($3,025) | ($3,055) |
Property, plant and equipment, net | 1,677 | 1,670 |
Land | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 44 | 44 |
Buildings | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 388 | 358 |
Subscriber systems | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 2,971 | 3,063 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 1,232 | 1,158 |
Construction in progress | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | $67 | $102 |
Tyco_International_Finance_SA_1
Tyco International Finance S.A. (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Increase (decrease) investment in subsidiaries restructuring | ' | $3,063 | ($117) | |||
Statements of Operations | ' | ' | ' | |||
Net revenue | 10,647 | [1],[2],[3],[4] | 10,403 | [1],[2],[3],[4] | 10,557 | [1],[2],[3],[4] |
Cost of product sales and services | 6,766 | 6,626 | 6,890 | |||
Selling, general and administrative expenses | 2,930 | 2,903 | 2,834 | |||
Separation costs | 8 | 71 | 0 | |||
Restructuring, asset impairment and divestiture charges, net | 134 | 118 | -149 | |||
Operating income | 809 | 685 | 982 | |||
Interest income | 17 | 19 | 27 | |||
Interest expense | -100 | -209 | -240 | |||
Other (expense) income, net | -29 | -454 | -5 | |||
Equity in net (loss) income of subsidiaries | 0 | 0 | 0 | |||
Intercompany interest and fees | 0 | 0 | 0 | |||
Income (loss) from continuing operations before income taxes | 697 | 41 | 764 | |||
Income tax (expense) benefit | -125 | -348 | -134 | |||
Equity loss in earnings of unconsolidated subsidiaries | -48 | -26 | -12 | |||
Income (loss) from continuing operations | 524 | -333 | 618 | |||
Income from discontinued operations, net of income taxes | 9 | 804 | 1,102 | |||
Net income | 533 | 471 | 1,720 | |||
Less: noncontrolling interest in subsidiaries net (loss) income | -3 | -1 | 1 | |||
Net income attributable to Tyco common shareholders | 536 | 472 | 1,719 | |||
Cash Flows From Operating Activities: | ' | ' | ' | |||
Net cash (used in) provided by operating activities | 841 | 701 | 661 | |||
Net cash provided by discontinued operating activities | 9 | 1,885 | 1,767 | |||
Cash Flows From Investing Activities: | ' | ' | ' | |||
Capital expenditures | -377 | -406 | -371 | |||
Proceeds from disposal of assets | 5 | 8 | 6 | |||
Acquisition of businesses, net of cash acquired | -229 | -217 | -353 | |||
Acquisition of dealer generated customer accounts and bulk account purchases | -22 | -28 | -33 | |||
Divestiture of businesses, net of cash divested | 17 | -5 | 709 | |||
Intercompany dividend from subsidiary | 0 | 0 | 0 | |||
Net increase in intercompany loans | 0 | 0 | 0 | |||
(Increase) decrease in investment in subsidiaries | 0 | 0 | 0 | |||
Net (increase) decrease in investments | -45 | 41 | 26 | |||
Increase in restricted cash | -8 | -2 | -8 | |||
Other | 4 | 27 | -37 | |||
Net cash used in investing activities | -655 | -582 | -61 | |||
Net cash used in discontinued investing activities | 0 | -1,204 | -1,005 | |||
Cash Flows From Financing Activities: | ' | ' | ' | |||
Net repayments of debt | -30 | -3,022 | -36 | |||
Proceeds from exercise of share options | 153 | 226 | 124 | |||
Dividends paid | -288 | -461 | -458 | |||
Intercompany dividend to parent | 0 | ' | 0 | |||
Repurchase of common shares by treasury | -300 | -500 | -1,300 | |||
Net intercompany loan borrowings (repayments) | 0 | 0 | 0 | |||
Increase in equity from parent | 0 | 0 | 0 | |||
Transfer from (to) discontinued operations | 39 | 3,274 | 726 | |||
Other | -30 | -25 | 6 | |||
Net cash used in financing activities | -456 | -508 | -938 | |||
Net cash used in discontinued financing activities | -39 | -251 | -793 | |||
Effect of currency translation on cash | -11 | 4 | -4 | |||
Effect of currency translation on cash related to discontinued operations | 0 | 4 | -2 | |||
Net (decrease) increase in cash and cash equivalents | -311 | 49 | -375 | |||
Net (increase) decrease in cash and cash equivalents related to discontinued operations | -30 | 434 | -33 | |||
Decrease in cash and cash equivalents from deconsolidation of variable interest entity | 0 | 0 | -10 | |||
Cash and cash equivalents at beginning of period | 844 | 1,229 | 1,581 | |||
Cash and cash equivalents at end of period | 563 | 844 | 1,229 | |||
Tyco International Ltd. | ' | ' | ' | |||
Statements of Operations | ' | ' | ' | |||
Selling, general and administrative expenses | 11 | 15 | 32 | |||
Separation costs | 3 | 3 | ' | |||
Restructuring, asset impairment and divestiture charges, net | 0 | 1 | 3 | |||
Operating income | -14 | -19 | -35 | |||
Interest income | 2 | ' | ' | |||
Interest expense | -1 | ' | ' | |||
Other (expense) income, net | -31 | -4 | -7 | |||
Equity in net (loss) income of subsidiaries | -12,666 | 913 | 2,863 | |||
Intercompany interest and fees | 13,248 | -412 | -1,098 | |||
Income (loss) from continuing operations before income taxes | 538 | 478 | 1,723 | |||
Income tax (expense) benefit | -2 | -2 | -4 | |||
Income (loss) from continuing operations | 536 | 476 | 1,719 | |||
Income from discontinued operations, net of income taxes | 0 | -4 | ' | |||
Net income | 536 | 472 | 1,719 | |||
Net income attributable to Tyco common shareholders | 536 | 472 | 1,719 | |||
Cash Flows From Operating Activities: | ' | ' | ' | |||
Net cash (used in) provided by operating activities | -251 | -467 | -7,090 | |||
Cash Flows From Investing Activities: | ' | ' | ' | |||
Divestiture of businesses, net of cash divested | ' | 0 | 35 | |||
Intercompany dividend from subsidiary | ' | 0 | 6,347 | |||
(Increase) decrease in investment in subsidiaries | 0 | -495 | 4,773 | |||
Net cash used in investing activities | 0 | -495 | 11,155 | |||
Cash Flows From Financing Activities: | ' | ' | ' | |||
Dividends paid | -288 | -461 | -458 | |||
Repurchase of common shares by treasury | ' | 0 | -500 | |||
Net intercompany loan borrowings (repayments) | 449 | 1,423 | -3,126 | |||
Transfer from (to) discontinued operations | 90 | ' | ' | |||
Other | ' | 0 | 19 | |||
Net cash used in financing activities | 251 | 962 | -4,065 | |||
Tyco International Finance S.A. | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Ownership percentage of subsidiary | 100.00% | ' | ' | |||
Statements of Operations | ' | ' | ' | |||
Selling, general and administrative expenses | 1 | 15 | 12 | |||
Separation costs | 0 | 1 | ' | |||
Operating income | -1 | -16 | -12 | |||
Interest expense | -95 | -204 | -237 | |||
Other (expense) income, net | 0 | -453 | 0 | |||
Equity in net (loss) income of subsidiaries | 575 | 1,065 | 2,809 | |||
Intercompany interest and fees | 122 | 282 | 337 | |||
Income (loss) from continuing operations before income taxes | 601 | 674 | 2,897 | |||
Income tax (expense) benefit | -2 | -2 | -25 | |||
Income (loss) from continuing operations | 599 | 672 | 2,872 | |||
Net income | 599 | 672 | 2,872 | |||
Net income attributable to Tyco common shareholders | 599 | 672 | 2,872 | |||
Cash Flows From Operating Activities: | ' | ' | ' | |||
Net cash (used in) provided by operating activities | 452 | 3,542 | 1,739 | |||
Cash Flows From Investing Activities: | ' | ' | ' | |||
Intercompany dividend from subsidiary | 32 | 409 | 9 | |||
Net increase in intercompany loans | -431 | -1,119 | -1,703 | |||
(Increase) decrease in investment in subsidiaries | 8 | 207 | -9 | |||
Other | ' | 0 | -12 | |||
Net cash used in investing activities | -391 | -503 | -1,715 | |||
Cash Flows From Financing Activities: | ' | ' | ' | |||
Net repayments of debt | 0 | -3,039 | -19 | |||
Transfer from (to) discontinued operations | -61 | ' | ' | |||
Other | ' | 0 | -5 | |||
Net cash used in financing activities | -61 | -3,039 | -24 | |||
Other Subsidiaries | ' | ' | ' | |||
Statements of Operations | ' | ' | ' | |||
Net revenue | 10,647 | 10,403 | 10,557 | |||
Cost of product sales and services | 6,766 | 6,626 | 6,890 | |||
Selling, general and administrative expenses | 2,918 | 2,873 | 2,790 | |||
Separation costs | 5 | 67 | ' | |||
Restructuring, asset impairment and divestiture charges, net | 134 | 117 | -152 | |||
Operating income | 824 | 720 | 1,029 | |||
Interest income | 15 | 19 | 27 | |||
Interest expense | -4 | -5 | -3 | |||
Other (expense) income, net | 2 | 3 | 2 | |||
Intercompany interest and fees | -13,370 | 225 | 900 | |||
Income (loss) from continuing operations before income taxes | -12,533 | 962 | 1,955 | |||
Income tax (expense) benefit | -121 | -344 | -105 | |||
Equity loss in earnings of unconsolidated subsidiaries | -48 | -26 | -12 | |||
Income (loss) from continuing operations | -12,702 | 592 | 1,838 | |||
Income from discontinued operations, net of income taxes | 9 | 713 | 963 | |||
Net income | -12,693 | 1,305 | 2,801 | |||
Less: noncontrolling interest in subsidiaries net (loss) income | -3 | -1 | 1 | |||
Net income attributable to Tyco common shareholders | -12,690 | 1,306 | 2,800 | |||
Cash Flows From Operating Activities: | ' | ' | ' | |||
Net cash (used in) provided by operating activities | 640 | -2,374 | 6,012 | |||
Net cash provided by discontinued operating activities | 9 | 1,885 | 1,767 | |||
Cash Flows From Investing Activities: | ' | ' | ' | |||
Capital expenditures | -377 | -406 | -371 | |||
Proceeds from disposal of assets | 5 | 8 | 6 | |||
Acquisition of businesses, net of cash acquired | -229 | -217 | -353 | |||
Acquisition of dealer generated customer accounts and bulk account purchases | -22 | -28 | -33 | |||
Divestiture of businesses, net of cash divested | 17 | -5 | 674 | |||
(Increase) decrease in investment in subsidiaries | 0 | 16 | -72 | |||
Net (increase) decrease in investments | -45 | 41 | 26 | |||
Increase in restricted cash | -8 | -2 | -8 | |||
Other | 4 | 27 | -25 | |||
Net cash used in investing activities | -655 | -566 | -156 | |||
Net cash used in discontinued investing activities | ' | -1,215 | -1,005 | |||
Cash Flows From Financing Activities: | ' | ' | ' | |||
Net repayments of debt | -30 | 17 | -17 | |||
Proceeds from exercise of share options | 153 | 226 | 124 | |||
Intercompany dividend to parent | -32 | ' | -6,349 | |||
Repurchase of common shares by treasury | -300 | -500 | -800 | |||
Net intercompany loan borrowings (repayments) | -18 | -304 | 4,829 | |||
Increase in equity from parent | -8 | 71 | -4,699 | |||
Transfer from (to) discontinued operations | 10 | 3,066 | 726 | |||
Other | -30 | -25 | -8 | |||
Net cash used in financing activities | -255 | 2,551 | -6,194 | |||
Net cash used in discontinued financing activities | -39 | -448 | -793 | |||
Effect of currency translation on cash | -11 | 4 | -4 | |||
Effect of currency translation on cash related to discontinued operations | ' | 4 | -2 | |||
Net (decrease) increase in cash and cash equivalents | -311 | -159 | -375 | |||
Net (increase) decrease in cash and cash equivalents related to discontinued operations | -30 | 226 | -33 | |||
Decrease in cash and cash equivalents from deconsolidation of variable interest entity | ' | ' | -10 | |||
Cash and cash equivalents at beginning of period | 844 | 1,229 | 1,581 | |||
Cash and cash equivalents at end of period | 563 | 844 | 1,229 | |||
Consolidating Adjustments | ' | ' | ' | |||
Statements of Operations | ' | ' | ' | |||
Equity in net (loss) income of subsidiaries | 12,091 | -1,978 | -5,672 | |||
Intercompany interest and fees | 0 | -95 | -139 | |||
Income (loss) from continuing operations before income taxes | 12,091 | -2,073 | -5,811 | |||
Income (loss) from continuing operations | 12,091 | -2,073 | -5,811 | |||
Income from discontinued operations, net of income taxes | 0 | 95 | 139 | |||
Net income | 12,091 | -1,978 | -5,672 | |||
Net income attributable to Tyco common shareholders | 12,091 | -1,978 | -5,672 | |||
Cash Flows From Investing Activities: | ' | ' | ' | |||
Intercompany dividend from subsidiary | -32 | -409 | -6,356 | |||
Net increase in intercompany loans | 431 | 1,119 | 1,703 | |||
(Increase) decrease in investment in subsidiaries | -8 | 272 | -4,692 | |||
Net cash used in investing activities | 391 | 982 | -9,345 | |||
Net cash used in discontinued investing activities | ' | 11 | ' | |||
Cash Flows From Financing Activities: | ' | ' | ' | |||
Intercompany dividend to parent | 32 | ' | 6,349 | |||
Net intercompany loan borrowings (repayments) | -431 | -1,119 | -1,703 | |||
Increase in equity from parent | 8 | -71 | 4,699 | |||
Transfer from (to) discontinued operations | 0 | 208 | ' | |||
Net cash used in financing activities | -391 | -982 | 9,345 | |||
Net cash used in discontinued financing activities | 0 | 197 | 0 | |||
Net (decrease) increase in cash and cash equivalents | 0 | 208 | ' | |||
Net (increase) decrease in cash and cash equivalents related to discontinued operations | $0 | $208 | ' | |||
[1] | Net revenue by operating segment excludes intercompany transactions. | |||||
[2] | The U.K. represents the largest portion of net revenue in the Europe, Middle East and Africa region with net revenue of $1,168 million, $1,162 million and $1,187 million for 2013, 2012 and 2011, respectively. | |||||
[3] | Net revenue is attributed to individual countries based on the reporting entity that records the transaction. | |||||
[4] | Fiscal 2011 was a 53-week year. Fiscal years 2013 and 2012 were 52-week years. |
Tyco_International_Finance_SA_2
Tyco International Finance S.A. (Details 2) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 24, 2010 |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $563,000,000 | $844,000,000 | $1,229,000,000 | $1,581,000,000 |
Accounts receivable, net | 1,738,000,000 | 1,696,000,000 | ' | ' |
Inventories | 655,000,000 | 634,000,000 | ' | ' |
Prepaid expenses and other current assets | 857,000,000 | 884,000,000 | ' | ' |
Deferred income taxes | 254,000,000 | 295,000,000 | ' | ' |
Total current assets | 4,067,000,000 | 4,353,000,000 | ' | ' |
Property, plant and equipment, net | 1,677,000,000 | 1,670,000,000 | ' | ' |
Goodwill | 4,519,000,000 | 4,367,000,000 | 4,228,000,000 | ' |
Intangible assets, net | 804,000,000 | 771,000,000 | ' | ' |
Other assets | 1,109,000,000 | 1,204,000,000 | ' | ' |
Total Assets | 12,176,000,000 | 12,365,000,000 | 26,702,000,000 | ' |
Current Liabilities: | ' | ' | ' | ' |
Loans payable and current maturities of long-term debt | 20,000,000 | 10,000,000 | ' | ' |
Accounts payable | 899,000,000 | 897,000,000 | ' | ' |
Accrued and other current liabilities | 1,910,000,000 | 1,788,000,000 | ' | ' |
Deferred revenue | 402,000,000 | 402,000,000 | ' | ' |
Total current liabilities | 3,231,000,000 | 3,097,000,000 | ' | ' |
Long-term debt | 1,443,000,000 | 1,481,000,000 | ' | ' |
Deferred revenue | 400,000,000 | 424,000,000 | ' | ' |
Other liabilities | 1,969,000,000 | 2,341,000,000 | ' | ' |
Total Liabilities | 7,043,000,000 | 7,343,000,000 | ' | ' |
Redeemable noncontrolling interest | 12,000,000 | 12,000,000 | ' | ' |
Redeemable noncontrolling interest of discontinued operations | ' | 12,000,000 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Common shares | 208,000,000 | 2,792,000,000 | ' | ' |
Common shares held in treasury | -912,000,000 | -1,094,000,000 | ' | ' |
Other shareholders' equity | 5,802,000,000 | 3,296,000,000 | ' | ' |
Total Tyco Shareholders' Equity | 5,098,000,000 | 4,994,000,000 | ' | ' |
Nonredeemable noncontrolling interest | 23,000,000 | 16,000,000 | ' | ' |
Total Equity | 5,121,000,000 | 5,010,000,000 | 14,154,000,000 | 14,083,000,000 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 12,176,000,000 | 12,365,000,000 | ' | ' |
Tyco International Ltd. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Accounts receivable, net | 0 | 7,000,000 | ' | ' |
Intercompany receivables | 22,000,000 | 1,220,000,000 | ' | ' |
Prepaid expenses and other current assets | 9,000,000 | 14,000,000 | ' | ' |
Total current assets | 31,000,000 | 1,241,000,000 | ' | ' |
Investment in subsidiaries | 12,826,000,000 | 25,666,000,000 | ' | ' |
Intercompany loans receivable | 0 | 1,921,000,000 | ' | ' |
Other assets | 68,000,000 | 67,000,000 | ' | ' |
Total Assets | 12,925,000,000 | 28,895,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 1,000,000 | ' | ' | ' |
Accrued and other current liabilities | 353,000,000 | 187,000,000 | ' | ' |
Intercompany payables | 3,515,000,000 | 3,571,000,000 | ' | ' |
Total current liabilities | 3,869,000,000 | 3,758,000,000 | ' | ' |
Intercompany loans payable | 3,660,000,000 | 19,672,000,000 | ' | ' |
Other liabilities | 298,000,000 | 471,000,000 | ' | ' |
Total Liabilities | 7,827,000,000 | 23,901,000,000 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Common shares | 208,000,000 | 2,792,000,000 | ' | ' |
Other shareholders' equity | 4,890,000,000 | 2,202,000,000 | ' | ' |
Total Tyco Shareholders' Equity | 5,098,000,000 | 4,994,000,000 | ' | ' |
Total Equity | 5,098,000,000 | 4,994,000,000 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 12,925,000,000 | 28,895,000,000 | ' | ' |
Tyco International Finance S.A. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Intercompany receivables | 2,079,000,000 | 1,890,000,000 | ' | ' |
Total current assets | 2,079,000,000 | 1,890,000,000 | ' | ' |
Investment in subsidiaries | 14,690,000,000 | 15,337,000,000 | ' | ' |
Intercompany loans receivable | 1,141,000,000 | 7,031,000,000 | ' | ' |
Other assets | 6,000,000 | 260,000,000 | ' | ' |
Total Assets | 17,916,000,000 | 24,518,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accrued and other current liabilities | 23,000,000 | 23,000,000 | ' | ' |
Intercompany payables | 3,845,000,000 | 6,793,000,000 | ' | ' |
Total current liabilities | 3,868,000,000 | 6,816,000,000 | ' | ' |
Long-term debt | 1,443,000,000 | 1,443,000,000 | ' | ' |
Intercompany loans payable | 1,852,000,000 | 3,055,000,000 | ' | ' |
Total Liabilities | 7,163,000,000 | 11,314,000,000 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Other shareholders' equity | 10,753,000,000 | 13,204,000,000 | ' | ' |
Total Tyco Shareholders' Equity | 10,753,000,000 | 13,204,000,000 | ' | ' |
Total Equity | 10,753,000,000 | 13,204,000,000 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 17,916,000,000 | 24,518,000,000 | ' | ' |
Other Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 563,000,000 | 844,000,000 | 1,229,000,000 | 1,581,000,000 |
Accounts receivable, net | 1,738,000,000 | 1,689,000,000 | ' | ' |
Inventories | 655,000,000 | 634,000,000 | ' | ' |
Intercompany receivables | 7,354,000,000 | 10,361,000,000 | ' | ' |
Prepaid expenses and other current assets | 848,000,000 | 870,000,000 | ' | ' |
Deferred income taxes | 254,000,000 | 295,000,000 | ' | ' |
Total current assets | 11,412,000,000 | 14,693,000,000 | ' | ' |
Property, plant and equipment, net | 1,677,000,000 | 1,670,000,000 | ' | ' |
Goodwill | 4,519,000,000 | 4,367,000,000 | ' | ' |
Intangible assets, net | 804,000,000 | 771,000,000 | ' | ' |
Intercompany loans receivable | 5,310,000,000 | 19,956,000,000 | ' | ' |
Other assets | 1,035,000,000 | 877,000,000 | ' | ' |
Total Assets | 24,757,000,000 | 42,334,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Loans payable and current maturities of long-term debt | 20,000,000 | 10,000,000 | ' | ' |
Accounts payable | 898,000,000 | 897,000,000 | ' | ' |
Accrued and other current liabilities | 1,534,000,000 | 1,578,000,000 | ' | ' |
Deferred revenue | 402,000,000 | 402,000,000 | ' | ' |
Intercompany payables | 2,095,000,000 | 3,107,000,000 | ' | ' |
Total current liabilities | 4,949,000,000 | 5,994,000,000 | ' | ' |
Long-term debt | 0 | 38,000,000 | ' | ' |
Intercompany loans payable | 939,000,000 | 6,181,000,000 | ' | ' |
Deferred revenue | 400,000,000 | 424,000,000 | ' | ' |
Other liabilities | 1,671,000,000 | 1,870,000,000 | ' | ' |
Total Liabilities | 7,959,000,000 | 14,507,000,000 | ' | ' |
Redeemable noncontrolling interest | 12,000,000 | ' | ' | ' |
Redeemable noncontrolling interest of discontinued operations | ' | 12,000,000 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Common shares held in treasury | -912,000,000 | -1,094,000,000 | ' | ' |
Other shareholders' equity | 17,675,000,000 | 28,893,000,000 | ' | ' |
Total Tyco Shareholders' Equity | 16,763,000,000 | 27,799,000,000 | ' | ' |
Nonredeemable noncontrolling interest | 23,000,000 | 16,000,000 | ' | ' |
Total Equity | 16,786,000,000 | 27,815,000,000 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 24,757,000,000 | 42,334,000,000 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Intercompany receivables | -9,455,000,000 | -13,471,000,000 | ' | ' |
Total current assets | -9,455,000,000 | -13,471,000,000 | ' | ' |
Investment in subsidiaries | -27,516,000,000 | -41,003,000,000 | ' | ' |
Intercompany loans receivable | -6,451,000,000 | -28,908,000,000 | ' | ' |
Total Assets | -43,422,000,000 | -83,382,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Intercompany payables | -9,455,000,000 | -13,471,000,000 | ' | ' |
Total current liabilities | -9,455,000,000 | -13,471,000,000 | ' | ' |
Intercompany loans payable | -6,451,000,000 | -28,908,000,000 | ' | ' |
Total Liabilities | -15,906,000,000 | -42,379,000,000 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Other shareholders' equity | -27,516,000,000 | -41,003,000,000 | ' | ' |
Total Tyco Shareholders' Equity | -27,516,000,000 | -41,003,000,000 | ' | ' |
Total Equity | -27,516,000,000 | -41,003,000,000 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | ($43,422,000,000) | ($83,382,000,000) | ' | ' |
Tyco_International_Finance_SA_3
Tyco International Finance S.A. (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income (loss) | $533 | $471 | $1,720 |
Foreign currency translation | -102 | 93 | -143 |
Defined benefit and post retirement plans | 81 | -163 | 33 |
Unrealized loss on marketable securities and derivative instruments | 0 | 0 | -4 |
Deconsolidation of variable interest entity due to adoption of an accounting standard | 0 | 0 | -11 |
Total other comprehensive loss, net of tax | -21 | -70 | -125 |
Comprehensive income | 512 | 401 | 1,595 |
Less: comprehensive loss attributable to noncontrolling interests | -3 | -1 | -10 |
Comprehensive income attributable to Tyco common shareholders | 515 | 402 | 1,605 |
Tyco International Ltd. | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income (loss) | 536 | 472 | 1,719 |
Foreign currency translation | -102 | 93 | -143 |
Defined benefit and post retirement plans | 81 | -163 | 33 |
Unrealized loss on marketable securities and derivative instruments | 0 | 0 | -4 |
Deconsolidation of variable interest entity due to adoption of an accounting standard | ' | ' | 0 |
Total other comprehensive loss, net of tax | -21 | -70 | -114 |
Comprehensive income | 515 | 402 | 1,605 |
Less: comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Tyco common shareholders | 515 | 402 | 1,605 |
Tyco International Finance S.A. | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income (loss) | 599 | 672 | 2,872 |
Foreign currency translation | 0 | 11 | -21 |
Defined benefit and post retirement plans | 0 | 0 | 0 |
Unrealized loss on marketable securities and derivative instruments | 0 | 0 | 0 |
Deconsolidation of variable interest entity due to adoption of an accounting standard | ' | ' | 0 |
Total other comprehensive loss, net of tax | 0 | 11 | -21 |
Comprehensive income | 599 | 683 | 2,851 |
Less: comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Tyco common shareholders | 599 | 683 | 2,851 |
Other Subsidiaries | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income (loss) | -12,693 | 1,305 | 2,801 |
Foreign currency translation | -102 | 82 | -122 |
Defined benefit and post retirement plans | 81 | -163 | 33 |
Unrealized loss on marketable securities and derivative instruments | 0 | 0 | -4 |
Deconsolidation of variable interest entity due to adoption of an accounting standard | ' | ' | -11 |
Total other comprehensive loss, net of tax | -21 | -81 | -104 |
Comprehensive income | -12,714 | 1,224 | 2,697 |
Less: comprehensive loss attributable to noncontrolling interests | -3 | -1 | -10 |
Comprehensive income attributable to Tyco common shareholders | -12,711 | 1,225 | 2,707 |
Consolidating Adjustments | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income (loss) | 12,091 | -1,978 | -5,672 |
Foreign currency translation | 102 | -93 | 143 |
Defined benefit and post retirement plans | -81 | 163 | -33 |
Unrealized loss on marketable securities and derivative instruments | 0 | 0 | 4 |
Deconsolidation of variable interest entity due to adoption of an accounting standard | ' | ' | 0 |
Total other comprehensive loss, net of tax | 21 | 70 | 114 |
Comprehensive income | 12,112 | -1,908 | -5,558 |
Less: comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income attributable to Tyco common shareholders | $12,112 | ($1,908) | ($5,558) |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Nov. 11, 2013 | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Common stock, dividends, per share, approved subject to shareholder approval (in dollars per share) | $0.72 |
Common stock, dividends, increase (decrease) per share (in dollars per share) | $0.08 |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (Accounts Receivable, USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |||
Accounts Receivable | ' | ' | ' | |||
Accounts Receivable: | ' | ' | ' | |||
Balance at Beginning of Year | $62 | $56 | $96 | |||
Additions Charged to Income | 57 | 41 | 24 | |||
Acquisitions (Divestitures) and Other | 2 | 6 | -12 | |||
Deductions | -38 | [1] | -41 | [1] | -52 | [1] |
Balance at End of Year | $83 | $62 | $56 | |||
[1] | Deductions represent uncollectible accounts written off, net of recoveries. |