Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 27, 2013 | Jan. 23, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'TYCO INTERNATIONAL LTD | ' |
Entity Central Index Key | '0000833444 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-26 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 460,308,460 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | ||
Revenue from product sales | $1,493 | $1,443 | ||
Service revenue | 1,154 | 1,157 | ||
Net revenue | 2,647 | [1] | 2,600 | [1] |
Cost of product sales | 1,023 | 1,004 | ||
Cost of services | 648 | 664 | ||
Selling, general and administrative expenses | 599 | 682 | ||
Separation costs (see Note 2) | 0 | 5 | ||
Restructuring and asset impairment charges, net (see Note 4) | 3 | 10 | ||
Operating income | 374 | 235 | ||
Interest income | 3 | 4 | ||
Interest expense | -24 | -24 | ||
Other expense, net | -1 | -9 | ||
Income from continuing operations before income taxes | 352 | 206 | ||
Income tax expense | -76 | -39 | ||
Equity loss in earnings of unconsolidated subsidiaries | -4 | -6 | ||
Income from continuing operations | 272 | 161 | ||
Income from discontinued operations, net of income taxes | 0 | 4 | ||
Net income | 272 | 165 | ||
Less: noncontrolling interest in subsidiaries net income | 2 | 2 | ||
Net income attributable to Tyco common shareholders | 270 | 163 | ||
Amounts attributable to Tyco common shareholders: | ' | ' | ||
Income from continuing operations | 270 | 159 | ||
Income from discontinued operations | 0 | 4 | ||
Net income attributable to Tyco common shareholders | $270 | $163 | ||
Basic earnings per share attributable to Tyco common shareholders: | ' | ' | ||
Income from continuing operations (in dollars per share) | $0.58 | $0.34 | ||
Income from discontinued operations (in dollars per share) | $0 | $0.01 | ||
Net income attributable to Tyco common shareholders (in dollars per share) | $0.58 | $0.35 | ||
Diluted earnings per share attributable to Tyco common shareholders: | ' | ' | ||
Income from continuing operations (in dollars per share) | $0.57 | $0.34 | ||
Income from discontinued operations (in dollars per share) | $0 | $0 | ||
Net income attributable to Tyco common shareholders (in dollars per share) | $0.57 | $0.34 | ||
Weighted average number of shares outstanding: | ' | ' | ||
Basic (in shares) | 464 | 466 | ||
Diluted (in shares) | 471 | 473 | ||
[1] | (1)Â Net revenue by operating segment excludes intercompany transactions. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Net income | $272 | $165 |
Other comprehensive (loss) income, net of tax | ' | ' |
Foreign currency translation | -37 | 11 |
Defined benefit and post retirement plans | 3 | 4 |
Unrealized gain on marketable securities and derivative instruments | 0 | 1 |
Total other comprehensive (loss) income, net of tax | -34 | 16 |
Comprehensive income | 238 | 181 |
Less: comprehensive income attributable to noncontrolling interests | 2 | 2 |
Comprehensive income attributable to Tyco common shareholders | $236 | $179 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Dec. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $479 | $563 |
Accounts receivable, less allowance for doubtful accounts of $81 and $83, respectively | 1,725 | 1,738 |
Inventories | 685 | 655 |
Prepaid expenses and other current assets | 864 | 857 |
Deferred income taxes | 254 | 254 |
Total Current Assets | 4,007 | 4,067 |
Property, plant and equipment, net | 1,678 | 1,677 |
Goodwill | 4,528 | 4,519 |
Intangible assets, net | 806 | 804 |
Other assets | 994 | 1,109 |
Total Assets | 12,013 | 12,176 |
Current Liabilities: | ' | ' |
Loans payable and current maturities of long-term debt | 180 | 20 |
Accounts payable | 838 | 899 |
Accrued and other current liabilities | 1,777 | 1,910 |
Deferred revenue | 368 | 402 |
Total Current Liabilities | 3,163 | 3,231 |
Long-term debt | 1,443 | 1,443 |
Deferred revenue | 392 | 400 |
Other liabilities | 1,849 | 1,969 |
Total Liabilities | 6,847 | 7,043 |
Commitments and Contingencies (see Note 11) | ' | ' |
Redeemable noncontrolling interest | 12 | 12 |
Tyco Shareholders' Equity: | ' | ' |
Common shares CHF 0.50 par value, 825,222,070 shares authorized, 486,363,050 shares issued as of both December 27, 2013 and September 27, 2013 | 208 | 208 |
Common shares held in treasury, 26,217,435 and 22,902,706 shares as of December 27, 2013 and September 27, 2013, respectively | -1,031 | -912 |
Contributed surplus | 3,669 | 3,754 |
Accumulated earnings | 3,305 | 3,035 |
Accumulated other comprehensive loss | -1,021 | -987 |
Total Tyco Shareholders' Equity | 5,130 | 5,098 |
Nonredeemable noncontrolling interest | 24 | 23 |
Total Equity | 5,154 | 5,121 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $12,013 | $12,176 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) | Dec. 27, 2013 | Dec. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
Accounts receivable, allowance for doubtful accounts | $76 | ' | $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 | 26,217,435 | 26,217,435 | 22,902,706 | 22,902,706 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Cash Flows From Operating Activities: | ' | ' |
Net income attributable to Tyco common shareholders | $270 | $163 |
Noncontrolling interest in subsidiaries net income | 2 | 2 |
Income from discontinued operations, net of income taxes | 0 | -4 |
Income from continuing operations | 272 | 161 |
Adjustments to reconcile net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 106 | 105 |
Non-cash compensation expense | 15 | 14 |
Deferred income taxes | 57 | 10 |
Provision for losses on accounts receivable and inventory | 11 | 18 |
Legacy legal matters reversal | -92 | 0 |
Other non-cash items | 16 | 6 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ' | ' |
Accounts receivable, net | 14 | -9 |
Contracts in progress | 13 | -2 |
Inventories | -32 | -29 |
Prepaid expenses and other current assets | -59 | 31 |
Accounts payable | -44 | -61 |
Accrued and other liabilities | -108 | -228 |
Deferred revenue | -41 | -47 |
Other | -5 | -8 |
Net cash provided by (used in) operating activities | 123 | -39 |
Net cash provided by discontinued operating activities | 0 | 4 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -92 | -90 |
Proceeds from disposal of assets | 4 | 3 |
Acquisition of businesses, net of cash acquired | -54 | -23 |
Acquisition of dealer generated customer accounts and bulk account purchases | -11 | -6 |
Sales and maturities of investments | 112 | 11 |
Purchases of investments | -32 | -91 |
Other | 6 | 8 |
Net cash used in investing activities | -67 | -188 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from issuance of short-term debt | 310 | 0 |
Repayment of short-term debt | -150 | 0 |
Proceeds from exercise of share options | 40 | 46 |
Dividends paid | -74 | -70 |
Repurchase of common shares by treasury | -250 | -50 |
Transfer to discontinued operations | 0 | -29 |
Other | -9 | -16 |
Net cash used in financing activities | -133 | -119 |
Net cash provided by discontinued financing activities | 0 | 29 |
Effect of currency translation on cash | -7 | 3 |
Net decrease in cash and cash equivalents | -84 | -310 |
Less: net increase in cash and cash equivalents related to discontinued operations | 0 | 33 |
Cash and cash equivalents at beginning of period | 563 | 844 |
Cash and cash equivalents at end of period | $479 | $501 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Total Tyco Shareholders' Equity | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings | Accumulated Other Comprehensive Loss | Nonredeemable Noncontrolling Interest |
In Millions, unless otherwise specified | ||||||||
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 | 165 | 163 | ' | ' | ' | 163 | ' | 2 |
Other comprehensive (loss) income, net of tax | 16 | 16 | ' | ' | ' | ' | 16 | ' |
Dividends declared | -1 | -1 | ' | ' | -1 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards | 46 | 46 | ' | 247 | -201 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards (in shares) | ' | ' | 6 | ' | ' | ' | ' | ' |
Repurchase of common shares | -50 | -50 | ' | -50 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -2 | ' | ' | ' | ' | ' |
Compensation expense | 14 | 14 | ' | ' | 14 | ' | ' | ' |
Other | -56 | -56 | ' | -16 | -40 | ' | ' | ' |
Other (in shares) | ' | ' | -1 | ' | ' | ' | ' | ' |
Balance at Dec. 28, 2012 | 5,144 | 5,126 | 2,792 | -913 | 1,535 | 2,662 | -950 | 18 |
Balance (in shares) at Dec. 28, 2012 | ' | ' | 465 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 272 | 270 | ' | ' | ' | 270 | ' | 2 |
Other comprehensive (loss) income, net of tax | -34 | -34 | ' | ' | ' | ' | -34 | ' |
Shares issued from treasury for vesting of share based equity awards | 40 | 40 | ' | 140 | -100 | ' | ' | ' |
Shares issued from treasury for vesting of share based equity awards (in shares) | ' | ' | 4 | ' | ' | ' | ' | ' |
Repurchase of common shares | -250 | -250 | ' | -250 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | -7 | ' | -7 | ' | ' | ' | ' | ' |
Compensation expense | 15 | 15 | ' | ' | 15 | ' | ' | ' |
Other | -10 | -9 | ' | -9 | ' | ' | ' | -1 |
Balance at Dec. 27, 2013 | $5,154 | $5,130 | $208 | ($1,031) | $3,669 | $3,305 | ($1,021) | $24 |
Balance (in shares) at Dec. 27, 2013 | ' | ' | 460 | ' | ' | ' | ' | ' |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 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 included herein are unaudited, but in the opinion of management, such financial statements include all adjustments, consisting of normal recurring adjustments, necessary to summarize fairly the Company's financial position, results of operations and cash flows for the interim period. The unaudited Consolidated Financial Statements include the consolidated results 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 unaudited Consolidated Financial Statements have been prepared in United States dollars ("USD") and in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The results reported in these unaudited Consolidated Financial Statements should not be taken as indicative of results that may be expected for the entire year. These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 27, 2013 (the "2013 Form 10-K"). | |
References to 2014 and 2013 are to Tyco's fiscal quarters ending December 27, 2013 and December 28, 2012, respectively, unless otherwise indicated. | |
The Company has a 52 or 53-week fiscal year that ends on the last Friday in September. Fiscal years 2014 and 2013 are both 52-week years. | |
Recently Adopted Accounting Pronouncements—In January 2013, the Financial Accounting Standards Board ("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 became effective for Tyco in the first quarter of fiscal 2014. The adoption of this guidance did not have a material impact on the Company's disclosures. | |
In February 2013, the FASB issued authoritative guidance for the reporting of amounts reclassified out of Accumulated other comprehensive income ("AOCI"). The amendment did not change the current requirements for reporting net income or Other comprehensive income ("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. generally accepted accounting principles ("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 became effective for Tyco in the first quarter of fiscal 2014 and additional disclosures are provided in Note 13. | |
Recently Issued Accounting Pronouncements—In March 2013, the FASB issued authoritative guidance to resolve diversity in practice 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 | 3 Months Ended | |||||||||||||||||||||||
Dec. 27, 2013 | ||||||||||||||||||||||||
Extraordinary and Unusual Items [Abstract] | ' | |||||||||||||||||||||||
2012 Separation Transaction | ' | |||||||||||||||||||||||
2012 Separation Transaction | ||||||||||||||||||||||||
On September 28, 2012, the Company 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. | ||||||||||||||||||||||||
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 $15 million and $14 million during the quarters ended December 27, 2013 and December 28, 2012, respectively. The amounts presented within discontinued operations are costs directly related to the 2012 Separation that are not expected to provide a future benefit to the Company. The components of the Separation Charges incurred within continuing operations and discontinued operations consisted of the following ($ in millions): | ||||||||||||||||||||||||
For the Quarter Ended | For the Quarter Ended | |||||||||||||||||||||||
December 27, 2013 | December 28, 2012 | |||||||||||||||||||||||
Continuing | Discontinued | Total | Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | Operations | Operations | |||||||||||||||||||||
Professional fees | $ | 1 | $ | — | $ | 1 | $ | — | $ | 3 | $ | 3 | ||||||||||||
Information technology related costs | 3 | — | 3 | 2 | 2 | 4 | ||||||||||||||||||
Employee compensation costs | — | — | — | — | 1 | 1 | ||||||||||||||||||
Marketing costs | 10 | — | 10 | 14 | — | 14 | ||||||||||||||||||
Other | 1 | — | 1 | 2 | (10 | ) | (8 | ) | ||||||||||||||||
Total pre-tax separation charges (gain) | 15 | — | 15 | 18 | (4 | ) | 14 | |||||||||||||||||
Tax-related separation charges | — | — | — | 4 | — | 4 | ||||||||||||||||||
Tax benefit on pre-tax separation charges | (6 | ) | — | (6 | ) | (5 | ) | — | (5 | ) | ||||||||||||||
Total separation charges (gain), net of tax | $ | 9 | $ | — | $ | 9 | $ | 17 | $ | (4 | ) | $ | 13 | |||||||||||
Pre-tax Separation Charges were classified in continuing operations within the Company's Consolidated Statement of Operations as follows ($ in millions): | ||||||||||||||||||||||||
For the Quarters Ended | ||||||||||||||||||||||||
December 27, 2013 | December 28, 2012 | |||||||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | $ | 15 | $ | 13 | ||||||||||||||||||||
Separation costs | — | 5 | ||||||||||||||||||||||
Total | $ | 15 | $ | 18 | ||||||||||||||||||||
Divestitures
Divestitures | 3 Months Ended |
Dec. 27, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Divestitures | ' |
Divestitures | |
The Company continually assesses the strategic fit of its various businesses and from time to time divests businesses which do not align with its long-term strategy. | |
Fiscal 2014 | |
During the quarter ended December 27, 2013, the Company completed the sale of its Armourguard business in New Zealand and its fire and security business in Fiji, both of which were in its ROW Installation & Services segment, for an immaterial amount. These businesses were accounted for as held for sale as of September 27, 2013, however, the assets and liabilities have not been presented separately in the Consolidated Balance Sheets, and these businesses have not been presented in discontinued operations in the Consolidated Statements of Operations for all periods presented because the amounts were not material. | |
Fiscal 2013 | |
On September 28, 2012, Tyco completed the 2012 Separation. See Note 2 for additional information. 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 transaction. 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 quarter ended December 28, 2012, $40 million was recorded within the Consolidated Statement of Shareholders' Equity as Other, primarily related to a cash true-up adjustment paid to ADT. During the quarter ended December 27, 2013, there were no adjustments recorded within the Consolidated Statement of Shareholders' Equity. Any additional adjustments are not expected to be material. | |
Divestiture Gains, Net | |
For the quarter ended December 27, 2013, the Company recorded a net gain of $3 million in Selling, general and administrative expenses in the Company's Consolidated Statements of Operations, primarily related to a favorable judgment received with respect to a former business which was divested. | |
For the quarter ended December 28, 2012, the Company recorded a net gain of $3 million in Selling, general and administrative expenses in the Company's Consolidated Statements of Operations, primarily related to the favorable settlement of an indemnification resulting from the divestiture of the Company's Electrical and Metal Products business. |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment Charges, Net | 3 Months Ended | |||||||||||
Dec. 27, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring and Asset Impairment Charges, Net | ' | |||||||||||
Restructuring and Asset Impairment Charges, Net | ||||||||||||
During the first quarter of fiscal 2014, 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 $75 million in fiscal 2014, which does not include repositioning charges as described below. | ||||||||||||
The Company recorded restructuring and asset impairment charges by action and Consolidated Statement of Operations classification as follows ($ in millions): | ||||||||||||
For the Quarters Ended | ||||||||||||
27-Dec-13 | 28-Dec-12 | |||||||||||
2014 actions | $ | 1 | $ | — | ||||||||
2013 actions | 1 | 5 | ||||||||||
2012 and prior actions | 1 | 5 | ||||||||||
Total | $ | 3 | $ | 10 | ||||||||
Charges reflected in restructuring and asset impairments, net | $ | 3 | $ | 10 | ||||||||
2014 Actions | ||||||||||||
Restructuring and asset impairment charges, net, during the quarter ended December 27, 2013 related to the 2014 actions are as follows ($ in millions): | ||||||||||||
For the Quarter Ended | ||||||||||||
December 27, 2013 | ||||||||||||
Employee | ||||||||||||
Severance and | ||||||||||||
Benefits | ||||||||||||
ROW Installation & Services | 1 | |||||||||||
Total | $ | 1 | ||||||||||
The rollforward of the reserves from September 27, 2013 to December 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 27, 2013 | $ | — | ||||||||||
Charges | 1 | |||||||||||
Balance as of December 27, 2013 | $ | 1 | ||||||||||
2013 Actions | ||||||||||||
Restructuring and asset impairment charges, net, during the quarter ended December 27, 2013 related to the 2013 actions are as follows ($ in millions): | ||||||||||||
For the Quarter Ended | ||||||||||||
December 27, 2013 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | (1 | ) | $ | 1 | $ | — | |||||
ROW Installation & Services | (3 | ) | — | (3 | ) | |||||||
Global Products | 4 | — | 4 | |||||||||
Total | $ | — | $ | 1 | $ | 1 | ||||||
For the Quarter Ended | ||||||||||||
December 28, 2012 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
ROW Installation & Services | $ | 2 | $ | 1 | $ | 3 | ||||||
Global Products | 1 | — | 1 | |||||||||
Corporate and Other | 1 | — | 1 | |||||||||
Total | $ | 4 | $ | 1 | $ | 5 | ||||||
Restructuring and asset impairment charges, net, incurred cumulative to date from initiation of the 2013 actions are as follows ($ in millions): | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | 33 | $ | 2 | $ | 35 | ||||||
ROW Installation & Services | 43 | 4 | 47 | |||||||||
Global Products | 13 | 2 | 15 | |||||||||
Corporate and Other | 3 | — | 3 | |||||||||
Total | $ | 92 | $ | 8 | $ | 100 | ||||||
The rollforward of the reserves from September 27, 2013 to December 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 27, 2013 | $ | 68 | ||||||||||
Charges | 6 | |||||||||||
Reversals | (5 | ) | ||||||||||
Utilization | (16 | ) | ||||||||||
Balance as of December 27, 2013 | $ | 53 | ||||||||||
2012 and prior actions | ||||||||||||
The Company continues to maintain restructuring reserves related to actions initiated prior to fiscal 2013. The total amount of these reserves was $56 million and $63 million as of December 27, 2013 and September 27, 2013, respectively. The Company incurred $1 million of restructuring charges, net and utilized $8 million for the quarter ended December 27, 2013. The Company incurred $5 million of restructuring charges, net for the quarter ended December 28, 2012 related to 2012 and prior actions. The aggregate remaining reserves primarily relate to facility exit costs for long-term non-cancelable lease obligations primarily within the Company's ROW Installation & Services segment. | ||||||||||||
Total Restructuring Reserves | ||||||||||||
As of December 27, 2013 and September 27, 2013, restructuring reserves related to all actions were included in the Company's Consolidated Balance Sheets as follows ($ in millions): | ||||||||||||
As of | ||||||||||||
27-Dec-13 | September 27, | |||||||||||
2013 | ||||||||||||
Accrued and other current liabilities | $ | 92 | $ | 113 | ||||||||
Other liabilities | 18 | 18 | ||||||||||
Total | $ | 110 | $ | 131 | ||||||||
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 quarter ended December 27, 2013, the Company recorded repositioning charges of $6 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 the quarter ended December 28, 2012. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 27, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
Acquisitions | |
During the quarter ended December 27, 2013, total consideration included in continuing operations was $57 million which was comprised of $54 million cash paid, net of $1 million cash acquired, and $2 million of contingent consideration which was entirely related to the acquisition of Westfire, Inc. ("Westfire") on November 8, 2013. Westfire, a fire protection services company with operations in the United States, Chile and Peru, 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. | |
During the quarter ended December 28, 2012, cash paid for acquisitions included in continuing operations totaled $23 million, which is related to an acquisition within the Company's NA Installation & Services segment. | |
Acquisition and Integration Related Costs | |
Acquisition and integration costs are expensed as incurred. The Company incurred acquisition and integration costs of $1 million for both the quarters ended December 27, 2013 and December 28, 2012. Such costs are recorded in Selling, general and administrative expenses in the Company's Consolidated Statements of Operations. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||||||||||
Dec. 27, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
Tyco did not have a significant change to its unrecognized tax benefits during the quarter ended December 27, 2013. | ||||||||||||||||
Many of Tyco's uncertain tax positions relate to tax years that remain subject to audit by the taxing authorities in U.S. federal, state and local or foreign jurisdictions. Open tax years in significant jurisdictions are as follows: | ||||||||||||||||
Jurisdiction | Years Open | |||||||||||||||
To Audit | ||||||||||||||||
Australia | 2004-2013 | |||||||||||||||
Canada | 2005-2013 | |||||||||||||||
Germany | 2005-2013 | |||||||||||||||
South Korea | 2006-2013 | |||||||||||||||
Switzerland | 2004-2013 | |||||||||||||||
United Kingdom | 2011-2013 | |||||||||||||||
United States | 1997-2013 | |||||||||||||||
Based on the current status of its income tax audits, Tyco believes that it is reasonably possible that between nil and $35 million in unrecognized tax benefits may be resolved in the next twelve months. | ||||||||||||||||
At each balance sheet date, the Company evaluates whether it is more likely than not that Tyco's deferred tax assets will be realized and if sufficient future taxable income will be available by assessing current period and projected operating results and other pertinent data. As of December 27, 2013, Tyco recorded deferred tax assets of approximately $173 million, which is comprised of $2.2 billion gross deferred tax assets net of $2.0 billion valuation allowances. | ||||||||||||||||
Tax Sharing Agreement and Other Income Tax Matters | ||||||||||||||||
In connection with the 2012 and 2007 Separations, Tyco 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 respective distributions to qualify tax-free 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. As of September 28, 2012, Tyco established liabilities representing the fair market value of its obligations under the 2012 Tax Sharing Arrangement which is recorded in other liabilities in Tyco'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. | ||||||||||||||||
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 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 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 December 27, 2013 and September 27, 2013, are as follows ($ in millions): | ||||||||||||||||
2012 Tax Sharing Agreement | 2007 Tax Sharing Agreement | |||||||||||||||
As of | As of | |||||||||||||||
27-Dec-13 | 27-Sep-13 | 27-Dec-13 | 27-Sep-13 | |||||||||||||
Net receivable: | ||||||||||||||||
Other assets | — | — | 68 | 67 | ||||||||||||
— | — | 68 | 67 | |||||||||||||
Tax sharing agreement related liabilities | ||||||||||||||||
Accrued and other current liabilities | (33 | ) | (33 | ) | (130 | ) | (130 | ) | ||||||||
Other liabilities | (36 | ) | (36 | ) | (254 | ) | (254 | ) | ||||||||
(69 | ) | (69 | ) | (384 | ) | (384 | ) | |||||||||
Net liability | $ | (69 | ) | $ | (69 | ) | $ | (316 | ) | $ | (317 | ) | ||||
Tyco recorded a loss in conjunction with the 2012 Tax Sharing Agreement within Other expense, net in the Consolidated Statements of Operations for the quarters ended December 27, 2013 and December 28, 2012 as follows ($ in millions): | ||||||||||||||||
For the Quarters Ended | ||||||||||||||||
27-Dec-13 | 28-Dec-12 | |||||||||||||||
Income (loss) | ||||||||||||||||
2012 Tax Sharing Agreement | $ | (2 | ) | $ | (10 | ) | ||||||||||
Pursuant to the terms of the 2012 Separation and Distribution Agreement, Tyco, ADT and Pentair are each responsible for issuing their 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 the quarter ended December 27, 2013, Tyco incurred a charge of $3 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 $1 million to be received from ADT and Pentair for Company shares issued to their employees, resulting in a net impact of approximately $2 million. | ||||||||||||||||
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 unrecognized 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 of. 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 | 3 Months Ended | |||||||||||||||||||||
Dec. 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 are as follows (in millions, except per share data): | ||||||||||||||||||||||
For the Quarter Ended | For the Quarter Ended | |||||||||||||||||||||
December 27, 2013 | December 28, 2012 | |||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | |||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic earnings per share attributable to Tyco common shareholders: | ||||||||||||||||||||||
Income from continuing operations | $ | 270 | 464 | $ | 0.58 | $ | 159 | 466 | $ | 0.34 | ||||||||||||
Share options and restricted share awards | 7 | 7 | ||||||||||||||||||||
Diluted earnings per share attributable to Tyco common shareholders: | ||||||||||||||||||||||
Income from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments | $ | 270 | 471 | $ | 0.57 | $ | 159 | 473 | $ | 0.34 | ||||||||||||
The computation of diluted earnings per share for the quarter ended December 27, 2013 excludes the effect of the potential exercise of share options to purchase approximately 2 million shares and excludes restricted stock units of approximately 1 million because the effect would be anti-dilutive. The computation of diluted earnings per share for the quarter ended December 28, 2012 excludes the effect of the potential exercise of share options to purchase approximately 7 million shares and excludes restricted stock units of 1 million because the effect would be anti-dilutive. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Dec. 27, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows ($ in millions): | ||||||||||||||||
NA Installation & | ROW | Global | Total | |||||||||||||
Services | Installation & | Products | ||||||||||||||
Services | ||||||||||||||||
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 | ||||||||||||
Acquisitions/Purchase Accounting Adjustments | 8 | 14 | — | 22 | ||||||||||||
Currency Translation | (6 | ) | (6 | ) | (1 | ) | (13 | ) | ||||||||
As of December 27, 2013 | ||||||||||||||||
Gross Goodwill | $ | 2,106 | $ | 2,360 | $ | 1,823 | $ | 6,289 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | $ | 1,980 | $ | 1,292 | $ | 1,256 | $ | 4,528 | ||||||||
The following table sets forth the gross carrying amount and accumulated amortization of the Company's intangible assets as of December 27, 2013 and September 27, 2013 ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Dec-13 | September 27, 2013 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Amortizable: | ||||||||||||||||
Contracts and related customer relationships | $ | 1,541 | $ | 1,203 | $ | 1,531 | $ | 1,199 | ||||||||
Intellectual property | 623 | 479 | 623 | 477 | ||||||||||||
Other | 41 | 15 | 40 | 13 | ||||||||||||
Total | $ | 2,205 | $ | 1,697 | $ | 2,194 | $ | 1,689 | ||||||||
Non-Amortizable: | ||||||||||||||||
Intellectual property | $ | 222 | $ | 223 | ||||||||||||
Franchise rights | 76 | 76 | ||||||||||||||
Total | $ | 298 | $ | 299 | ||||||||||||
Intangible asset amortization expense for both quarters ended December 27, 2013 and December 28, 2012 was $25 million. | ||||||||||||||||
The estimated aggregate amortization expense on intangible assets is expected to be approximately $71 million for the remainder of 2014, $77 million for 2015, $70 million for 2016, $61 million for 2017, $229 million for 2018 and thereafter. |
Debt
Debt | 3 Months Ended | |||||||
Dec. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
Debt as of December 27, 2013 and September 27, 2013 is as follows ($ in millions): | ||||||||
As of | ||||||||
December 27, | September 27, | |||||||
2013 | 2013 | |||||||
Commercial paper (1) | 160 | — | ||||||
3.375% public notes due 2015 | 258 | 258 | ||||||
3.75% public notes due 2018 | 67 | 67 | ||||||
8.5% public notes due 2019 | 364 | 364 | ||||||
7.0% public notes due 2019 | 246 | 246 | ||||||
6.875% public notes due 2021 | 466 | 466 | ||||||
4.625% public notes due 2023 | 42 | 42 | ||||||
Other(1)(2) | 20 | 20 | ||||||
Total debt | 1,623 | 1,463 | ||||||
Less current portion | 180 | 20 | ||||||
Long-term debt | $ | 1,443 | $ | 1,443 | ||||
_______________________________________________________________________________ | ||||||||
(1) | Commercial paper and $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of December 27, 2013. | |||||||
(2) | $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of September 27, 2013. | |||||||
Fair Value | ||||||||
The carrying amount of Tyco's debt subject to the fair value disclosure requirements as of December 27, 2013 and September 27, 2013 was $1,603 million and $1,443 million, respectively. The Company has determined the fair value of such debt to be $1,808 million and $1,676 million as of December 27, 2013 and September 27, 2013, respectively. 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 December 27, 2013 and September 27, 2013, the fair value of the Company's debt which was actively traded was $1,648 million and $1,676 million, respectively. As of December 27, 2013 and September 27, 2013, the Company's debt that was actively traded and subject to the fair value disclosure requirements is classified as Level 1 in the fair value hierarchy. Additionally, the Company believes the carrying amount of its commercial paper of $160 million as of December 27, 2013, approximates fair value based on the short-term nature of such debt. | ||||||||
Commercial paper | ||||||||
From time to time Tyco International Finance S.A. ("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 December 27, 2013. As of December 27, 2013, TIFSA had $160 million of commercial paper outstanding, which bore interest at a weighted-average rate of 0.31%. As of September 27, 2013, TIFSA had no commercial paper outstanding. | ||||||||
Credit Facilities | ||||||||
The Company's committed revolving credit facility totaled $1 billion as of December 27, 2013. This revolving credit facility may be used for working capital, capital expenditures and general corporate purposes. As of December 27, 2013 there were no amounts drawn under the Company's revolving credit facility, although the Company had dedicated $160 million of availability to backstop outstanding commercial paper. As of September 27, 2013 there were no amounts drawn under the Company's revolving credit facility. Interest under the revolving credit facility is variable and is calculated by reference to LIBOR or an alternate base rate. |
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||||||||||
Dec. 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 December 27, 2013 and September 27, 2013. 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 9 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, interest rate and commodity 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. As of and during the quarter ended December 27, 2013, the Company did not hold or enter into any commodity derivative instruments or interest rate swaps. | ||||||||||||||||||||
For derivative instruments that are designated and qualified as hedging instruments for accounting purposes, the Company documents and links the relationships between the hedging instruments and hedged items. The Company also assesses and documents at the hedge's inception whether the derivatives used in hedging transactions are effective in offsetting changes in fair values associated with the hedged items. For the quarters ended December 27, 2013 and December 28, 2012, the Company did not have any derivative instruments that were designated and qualified as hedging instrument for accounting purposes. | ||||||||||||||||||||
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. The fair value of these derivative financial instruments and impact of such changes in the fair value was not material to the Consolidated Balance Sheets as of December 27, 2013 and September 27, 2013 or Consolidated Statements of Operations and Statements of Cash Flows for the quarters ended December 27, 2013 and December 28, 2012. As of December 27, 2013 and September 27, 2013, the total gross notional amount of the Company's foreign exchange contracts was $322 million and $278 million, respectively. | ||||||||||||||||||||
Counterparty Credit Risk | ||||||||||||||||||||
The use of derivative financial instruments exposes the Company to 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. To further reduce the risk of loss, the Company generally enters into International Swaps and Derivatives Association master netting agreements with substantially all of its counterparties. 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. We do not anticipate any non-performance by any of our counterparties, and the concentration of risk with financial institutions does not present significant credit risk to the Company. | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Investments primarily include 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. | ||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
The following table presents the Company's hierarchy for its assets measured at fair value on a recurring basis as of December 27, 2013 and September 27, 2013: | ||||||||||||||||||||
Consolidated Balance Sheet | ||||||||||||||||||||
Classification | ||||||||||||||||||||
As of December 27, 2013 | Prepaids and | Other Assets | ||||||||||||||||||
Other Current | ||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | Assets | ||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||
Corporate debt securities | $ | — | $ | 27 | $ | 27 | $ | 8 | $ | 19 | ||||||||||
U.S. Government debt securities | 116 | 20 | 136 | 36 | 100 | |||||||||||||||
Total | $ | 116 | $ | 47 | $ | 163 | $ | 44 | $ | 119 | ||||||||||
Consolidated Balance Sheet | ||||||||||||||||||||
Classification | ||||||||||||||||||||
As of September 27, 2013 | Prepaids and | Other | ||||||||||||||||||
Other Current | Assets | |||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | Assets | ||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||
Corporate debt securities | $ | — | $ | 34 | $ | 34 | $ | 11 | $ | 23 | ||||||||||
U.S. Government debt securities | 171 | 38 | $ | 209 | 89 | 120 | ||||||||||||||
Total | $ | 171 | $ | 72 | $ | 243 | $ | 100 | $ | 143 | ||||||||||
During the quarter ended December 27, 2013, the Company did not have any significant transfers between levels within the fair value hierarchy. | ||||||||||||||||||||
Other | ||||||||||||||||||||
The Company recorded a $7 million loss on the sale of an investment during the quarter ended December 27, 2013. | ||||||||||||||||||||
Additionally, the Company had $2 billion of intercompany loans designated as permanent in nature as of both December 27, 2013 and September 27, 2013, respectively. For the quarters ended December 27, 2013 and December 28, 2012, the Company recorded $12 million and $22 million of cumulative translation gain, respectively, through accumulated other comprehensive loss related to these loans. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 27, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Legacy Matters Related to Former Management | |
The Company has been 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"). | |
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. In the first quarter of fiscal 2014, the parties signed an agreement resolving the matter, with Mr. Kozlowski agreeing to release the Company from any claims to monetary amounts related to compensation, retention or other arrangements, including the Key Employee Loan Program, alleged to have existed between him and the Company. As a result, in the first quarter of fiscal 2014, the Company reversed the net liability of approximately $92 million which was recorded in Selling, general and administrative expenses in the Consolidated Statement of Operations for the amounts allegedly due to him. Additionally, Tyco will be entitled to a portion of the proceeds, if any, from the future sale of certain assets owned by Mr. Kozlowski, the timing and amount of which is uncertain at this time. | |
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. | |
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 December 27, 2013, Tyco concluded that it was probable that it would incur remedial costs in the range of approximately $42 million to $110 million. As of December 27, 2013, Tyco concluded that the best estimate within this range is approximately $74 million, of which $51 million is included in Accrued and other current liabilities 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 of December 27, 2013, the Company concluded that its remaining remediation and monitoring costs related to the Marinette facility were in the range of approximately $31 million to $85 million. The Company's best estimate within that range is approximately $62 million, of which $48 million is included in Accrued and other current liabilities and $14 million is included in Other liabilities in the Company's Consolidated Balance Sheet. During the quarters ended December 27, 2013 and December 28, 2012, the Company recorded nil and $6 million in Selling, general and administrative expenses in the Consolidated Statement of Operations, respectively. 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 third quarter of fiscal 2013, 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 December 27, 2013, the Company has determined that there were approximately 5,300 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 over a look-back period of three years, and estimates of the number and resolution cost of potential future claims that may be filed in the look-forward period of fifteen years. 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, Tyco 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, Tyco considers additional quantitative and qualitative factors such as changes in legislation, the legal environment, and the Company's defense strategy. Tyco 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. | |
As of December 27, 2013, the Company's estimated net liability of $167 million was recorded within the Company's Consolidated Balance Sheet as a liability for pending and future claims and related defense costs of $319 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 December 27, 2013 are appropriate. Similarly, 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 net liabilities reflected in the Company's Consolidated Balance Sheet represent the Company's best estimates of probable losses for the look-forward period 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 period. 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. | |
Tax Matters | |
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 first quarter of fiscal 2014, Tyco settled a tax dispute with its former subsidiary, CIT Group, Inc. ("CIT"). Under the terms of the settlement agreement, Tyco received $60 million during the quarter ended December 27, 2013 which is subject to the terms and conditions of the 2007 Tax Sharing Agreement. As a result, the Company recorded a $16 million gain in Selling, general and administrative expenses in the Consolidated Statement of Operations and established payables of $25 million and $19 million due to Covidien and TE Connectivity, respectively, as of December 27, 2013. The Company expects to make payment to Covidien and TE Connectivity in the second quarter of fiscal 2014. | |
On December 18, 2013, the Supreme Court of the Republic of Korea issued a decision clarifying the definition of "ordinary wages," which in Korea form the basis for certain statutory entitlements due to workers upon the occurrence of specified events such as severance, disability and retirement. Although no lawsuit or claim has been asserted against the Company, the Company is currently assessing the impact, if any, the ruling as well as new guidelines related to the scope of ordinary wages issued by the Korean Ministry of Employment and Labor on January 23, 2014 may have on the Company. Although a risk of loss is reasonably possible, the Company is unable to reasonably estimate an amount or range of loss related to this matter at this time. Consequently, the Company has made no provision for the potential loss, if any. However, the Company does not believe the ultimate outcome of this matter will have a material adverse affect on its financial condition, results of operations or liquidity. | |
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 | 3 Months Ended | |||||||||||||||
Dec. 27, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Retirement Plans | ' | |||||||||||||||
Retirement Plans | ||||||||||||||||
Defined Benefit Pension Plans—The Company sponsors a number of pension plans. The following disclosures exclude the impact of plans which are immaterial individually and in the aggregate. The net periodic benefit cost for the Company's material U.S. and non-U.S. defined benefit pension plans is as follows ($ in millions): | ||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||
For the Quarters Ended | For the Quarters Ended | |||||||||||||||
December 27, 2013 | December 28, 2012 | December 27, 2013 | December 28, 2012 | |||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 5 | $ | 5 | ||||||||
Interest cost | 9 | 8 | 14 | 13 | ||||||||||||
Expected return on plan assets | (12 | ) | (12 | ) | (18 | ) | (16 | ) | ||||||||
Amortization of net actuarial loss | 2 | 4 | 3 | 2 | ||||||||||||
Net periodic benefit cost | $ | 1 | $ | 1 | $ | 4 | $ | 4 | ||||||||
The estimated net actuarial loss for U.S. pension benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the current fiscal year is expected to be $9 million. The estimated net actuarial loss for non-U.S. pension benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the current fiscal year is expected to be $13 million. Amortization of net periodic benefit cost from accumulated other comprehensive loss for non-U.S. pension benefit plans is recorded in Selling, general and administrative expenses, Cost of product sales, or Cost of services in the Consolidated Statements of Operations, depending on the employee job classification. | ||||||||||||||||
The Company's funding policy is to make contributions in accordance with the laws and customs of the various countries in which it operates and 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 fiscal year 2014 of $25 million for U.S. plans and $35 million for non-U.S. plans. During the quarter ended December 27, 2013, the Company made required contributions of $3 million to its U.S. pension plans and $11 million to its non-U.S. pension plans. | ||||||||||||||||
Postretirement Benefit Plans—Net periodic postretirement benefit cost was not material for both periods. |
Share_Plans
Share Plans | 3 Months Ended |
Dec. 27, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share Plans | ' |
Share Plans | |
During the quarter ended December 27, 2013, the Company issued its annual share-based compensation grants. The total number of awards issued was approximately 3.0 million, of which 1.9 million were stock options, 0.5 million were restricted unit awards and 0.6 million were performance share unit awards. The options and restricted stock units vest in equal annual installments over a period of 4 years, and the performance share unit awards vest after a period of 3 years based on the level of attainment of the applicable performance metrics, which are determined by the Compensation and Human Resources Committee of the Board. The weighted-average grant-date fair value of the stock options, restricted unit awards and performance share unit awards was $10.12, $37.15 and $39.01, respectively. The weighted-average assumptions used in the Black-Scholes option pricing model included an expected stock price volatility of 33%, a risk free interest rate of 1.63%, an expected annual dividend per share of $0.64 and an expected option life of 5.5 years. | |
During the quarter ended December 28, 2012, the Company issued its annual share-based compensation grants. The total number of awards issued was approximately 4.2 million, of which 2.6 million were stock options, 0.7 million were restricted unit awards and 0.9 million were performance share unit awards. The options and restricted stock units vest in equal annual installments over a period of 4 years, and the performance share unit awards vest after a period of 3 years based on the level of attainment of the applicable performance metrics, which are determined by the Compensation and Human Resources Committee of the Board. The weighted-average grant-date fair value of the stock options, restricted unit awards and performance share unit awards was $7.16, $27.14 and $30.36, respectively. The weighted-average assumptions used in the Black-Scholes option pricing model included an expected stock price volatility of 35%, a risk free interest rate of 0.86%, an expected annual dividend per share of $0.60 and an expected option life of 5.7 years. | |
In addition to the annual grant and in connection with the Separation, the Compensation and Human Resources Committee of the Board awarded as a one-time event Leadership Grants to selected employees in order to strengthen the alignment of the new senior management team with the shareholders of the post-Separation Company and to enhance employee retention. The total number of leadership awards issued was approximately 1.9 million, of which 1.5 million were stock options and 0.4 million were restricted unit awards. The options vest after a period of 3 years and restricted stock units vest in equal installments on the third and fourth anniversary of the grant date. The weighted-average grant-date fair value of the stock options and restricted unit awards was $7.20 and $27.14, respectively. The weighted-average assumptions used in the Black-Scholes option pricing model included an expected stock price volatility of 35%, a risk free interest rate of 0.87%, an expected annual dividend per share of $0.60 and an expected option life of 5.8 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. |
Equity_and_Comprehensive_Incom
Equity and Comprehensive Income | 3 Months Ended | |||||||||||
Dec. 27, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Equity and Comprehensive Income | ' | |||||||||||
Equity and Comprehensive Income | ||||||||||||
Dividends | ||||||||||||
Under Swiss law, the authority to declare dividends is vested in the general meeting of shareholders, and 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 third installment of $0.16 was paid on November 14, 2013 to shareholders of record on October 25, 2013. The fourth installment of $0.16 is to be paid on February 19, 2014 to shareholders of record on January 24, 2014. | ||||||||||||
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. | ||||||||||||
Share Repurchase Program | ||||||||||||
The Company's Board of Directors approved a $600 million share repurchase program ("2013 Share Repurchase Program") in January 2013. During the three months ended December 27, 2013, the Company repurchased approximately 7 million shares for approximately $250 million. As of December 27, 2013, approximately $250 million of share repurchase authority remained outstanding under the 2013 Share Repurchase Program. | ||||||||||||
Other Comprehensive (Loss) Income | ||||||||||||
Other Comprehensive (Loss) Income is comprised of the following: | ||||||||||||
($ in millions) | For the Quarters Ended | |||||||||||
December 27, | December 28, | |||||||||||
2013 | 2012 | |||||||||||
Foreign currency translation | (37 | ) | 28 | |||||||||
Liquidation of foreign entities (1) | — | (10 | ) | |||||||||
Income tax expense (2) | — | (7 | ) | |||||||||
Foreign currency translation, net of tax | (37 | ) | 11 | |||||||||
Amortization of net actuarial losses (3) | 5 | 6 | ||||||||||
Income tax expense | (2 | ) | (2 | ) | ||||||||
Defined benefit and post retirement plans, net of tax | 3 | 4 | ||||||||||
Unrealized loss on marketable securities and derivative instruments (4) | — | (1 | ) | |||||||||
Income tax benefit | — | 2 | ||||||||||
Unrealized gain on marketable securities and derivative instruments, net of tax | — | 1 | ||||||||||
Other comprehensive (loss) income, net of tax | (34 | ) | 16 | |||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | ||||||||||
Other comprehensive (loss) income attributable to Tyco common shareholders | $ | (34 | ) | $ | 16 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) During the quarter ended December 28, 2012, $10 million of cumulative translation gains were transferred from currency translation and included in income from discontinued operation in the Consolidated Statements of Operations as a result of the sale of foreign entities. | ||||||||||||
(2) Income tax expense on the net investment hedge was $7 million for the quarter ended December 28, 2012. | ||||||||||||
(3) Reclassified to Net Periodic Benefit Cost. See Note 12 Retirement Plans for additional information. | ||||||||||||
(4) Reclassified realized gain (loss) on marketable securities and derivative instruments to Other expense, net. | ||||||||||||
A summary of the changes in each component of accumulated other comprehensive loss, net of tax, for the quarter ended December 27, 2013 are as follows ($ in millions): | ||||||||||||
Currency | Retirement | Accumulated Other | ||||||||||
Translation | Plans | Comprehensive Loss | ||||||||||
Adjustments | ||||||||||||
Balance as of September 27, 2013 | $ | (521 | ) | $ | (466 | ) | $ | (987 | ) | |||
Other comprehensive loss before reclassifications, net of tax | (37 | ) | — | (37 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 3 | 3 | |||||||||
Other comprehensive (loss) income, net of tax | (37 | ) | 3 | (34 | ) | |||||||
Balance as of December 27, 2013 | $ | (558 | ) | $ | (463 | ) | $ | (1,021 | ) |
Consolidated_Segment_Data
Consolidated Segment Data | 3 Months Ended | |||||||
Dec. 27, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Consolidated Segment Data | ' | |||||||
Consolidated Segment Data | ||||||||
Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Selected information by segment is presented in the following tables ($ in millions): | ||||||||
For the Quarters Ended | ||||||||
December 27, 2013 | December 28, 2012 | |||||||
Net revenue(1): | ||||||||
NA Installation & Services | $ | 957 | $ | 976 | ||||
ROW Installation & Services | 1,125 | 1,090 | ||||||
Global Products | 565 | 534 | ||||||
$ | 2,647 | $ | 2,600 | |||||
_______________________________________________________________________________ | ||||||||
(1) | Net revenue by operating segment excludes intercompany transactions. | |||||||
For the Quarters Ended | ||||||||
December 27, 2013 | December 28, 2012 | |||||||
Operating income (loss): | ||||||||
NA Installation & Services | $ | 117 | $ | 108 | ||||
ROW Installation & Services | 125 | 114 | ||||||
Global Products | 86 | 74 | ||||||
Corporate and Other (1) | 46 | (61 | ) | |||||
$ | 374 | $ | 235 | |||||
_______________________________________________________________________________ | ||||||||
-1 | Operating income for the quarter ended December 27, 2013 includes $92 million of income related to the settlement of a legacy legal matter with former management and $16 million of income related to the CIT settlement. See Note 11. |
Inventory
Inventory | 3 Months Ended | |||||||
Dec. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
Inventory | ||||||||
Inventories consisted of the following ($ in millions): | ||||||||
As of | ||||||||
December 27, | September 27, | |||||||
2013 | 2013 | |||||||
Purchased materials and manufactured parts | $ | 167 | $ | 157 | ||||
Work in process | 91 | 93 | ||||||
Finished goods | 427 | 405 | ||||||
Inventories | $ | 685 | $ | 655 | ||||
Inventories are recorded at the lower of cost (primarily first-in, first-out) or market value. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||
Dec. 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 | ||||||||
December 27, | September 27, | |||||||
2013 | 2013 | |||||||
Land | $ | 44 | $ | 44 | ||||
Buildings | 397 | 388 | ||||||
Subscriber systems | 2,974 | 2,971 | ||||||
Machinery and equipment | 1,252 | 1,232 | ||||||
Construction in progress | 79 | 67 | ||||||
Accumulated depreciation | (3,068 | ) | (3,025 | ) | ||||
Property, Plant and Equipment, net | $ | 1,678 | $ | 1,677 | ||||
Guarantees
Guarantees | 3 Months Ended | |||
Dec. 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 we believe that 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 remained as the guarantor, but was typically indemnified by the former subsidiary. 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 December 27, 2013 and September 27, 2013, with an offset to Tyco's shareholders' equity on the 2012 Separation date. The Company's obligations related to the 2007 Separation were $3 million, which were included in Other liabilities on the Company's Consolidated Balance Sheets as of both December 27, 2013 and September 27, 2013, with an offset to Tyco's 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 contingencies, if realized, would have a material adverse effect on the Company's financial position, results of operations or cash flows. The Company has recorded liabilities for known indemnifications included as part of environmental liabilities. See Note 11. | ||||
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. | ||||
Balance as of September 27, 2013 | $ | 31 | ||
Warranties issued | 3 | |||
Changes in estimates | (2 | ) | ||
Settlements | (3 | ) | ||
Balance as of December 27, 2013 | $ | 29 | ||
Tyco_International_Finance_SA
Tyco International Finance S.A. | 3 Months Ended | |||||||||||||||||||
Dec. 27, 2013 | ||||||||||||||||||||
Tyco International Finance S.A. | ' | |||||||||||||||||||
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. 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 Equity in net income of subsidiaries of $5 million for the quarter ended December 28, 2012. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Quarter Ended December 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 2,647 | $ | — | $ | 2,647 | ||||||||||
Cost of product sales | — | — | 1,023 | — | 1,023 | |||||||||||||||
Cost of services | — | — | 648 | — | 648 | |||||||||||||||
Selling, general and administrative expenses | (13 | ) | 1 | 611 | — | 599 | ||||||||||||||
Restructuring and asset impairment charges, net | — | — | 3 | — | 3 | |||||||||||||||
Operating income (loss) | 13 | (1 | ) | 362 | — | 374 | ||||||||||||||
Interest income | — | — | 3 | — | 3 | |||||||||||||||
Interest expense | — | (24 | ) | — | — | (24 | ) | |||||||||||||
Other expense, net | (1 | ) | — | — | — | (1 | ) | |||||||||||||
Equity in net income of subsidiaries | 268 | 208 | — | (476 | ) | — | ||||||||||||||
Intercompany interest and fees | (10 | ) | 9 | 1 | — | — | ||||||||||||||
Income from continuing operations before income taxes | 270 | 192 | 366 | (476 | ) | 352 | ||||||||||||||
Income tax expense | — | — | (76 | ) | — | (76 | ) | |||||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Income from continuing operations | 270 | 192 | 286 | (476 | ) | 272 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | |||||||||||||||
Net income | 270 | 192 | 286 | (476 | ) | 272 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net income | — | — | 2 | — | 2 | |||||||||||||||
Net income attributable to Tyco common shareholders | $ | 270 | $ | 192 | $ | 284 | $ | (476 | ) | $ | 270 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Quarter Ended December 27, 2013 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 270 | $ | 192 | $ | 286 | $ | (476 | ) | $ | 272 | |||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||||||
Foreign currency translation | (37 | ) | — | (37 | ) | 37 | (37 | ) | ||||||||||||
Defined benefit and post retirement plans | 3 | — | 3 | (3 | ) | 3 | ||||||||||||||
Unrealized gain on marketable securities and derivative instruments | — | — | — | — | — | |||||||||||||||
Total other comprehensive loss, net of tax | (34 | ) | — | (34 | ) | 34 | (34 | ) | ||||||||||||
Comprehensive income | 236 | 192 | 252 | (442 | ) | 238 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 2 | — | 2 | |||||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 236 | $ | 192 | $ | 250 | $ | (442 | ) | $ | 236 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Quarter Ended December 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 2,600 | $ | — | $ | 2,600 | ||||||||||
Cost of product sales | — | — | 1,004 | — | 1,004 | |||||||||||||||
Cost of services | — | — | 664 | — | 664 | |||||||||||||||
Selling, general and administrative expenses | 5 | 1 | 676 | — | 682 | |||||||||||||||
Separation costs | 3 | — | 2 | — | 5 | |||||||||||||||
Restructuring and asset impairment charges, net | — | — | 10 | — | 10 | |||||||||||||||
Operating (loss) income | (8 | ) | (1 | ) | 244 | — | 235 | |||||||||||||
Interest income | — | — | 4 | — | 4 | |||||||||||||||
Interest expense | — | (24 | ) | — | — | (24 | ) | |||||||||||||
Other (expense) income, net | (10 | ) | — | 1 | — | (9 | ) | |||||||||||||
Equity in net income of subsidiaries | 203 | 73 | — | (276 | ) | — | ||||||||||||||
Intercompany interest and fees | (22 | ) | 49 | (27 | ) | — | — | |||||||||||||
Income from continuing operations before income taxes | 163 | 97 | 222 | (276 | ) | 206 | ||||||||||||||
Income tax expense | — | — | (39 | ) | — | (39 | ) | |||||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Income from continuing operations | 163 | 97 | 177 | (276 | ) | 161 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 4 | — | 4 | |||||||||||||||
Net income | 163 | 97 | 181 | (276 | ) | 165 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net income | — | — | 2 | — | 2 | |||||||||||||||
Net income attributable to Tyco common shareholders | $ | 163 | $ | 97 | $ | 179 | $ | (276 | ) | $ | 163 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Quarter Ended December 28, 2012 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 163 | $ | 97 | $ | 181 | $ | (276 | ) | $ | 165 | |||||||||
Other comprehensive income, net of tax | ||||||||||||||||||||
Foreign currency translation | 11 | — | 11 | (11 | ) | 11 | ||||||||||||||
Defined benefit and post retirement plans | 4 | — | 4 | (4 | ) | 4 | ||||||||||||||
Unrealized gain on marketable securities and derivative instruments | 1 | — | 1 | (1 | ) | 1 | ||||||||||||||
Total other comprehensive income, net of tax | 16 | — | 16 | (16 | ) | 16 | ||||||||||||||
Comprehensive income | 179 | 97 | 197 | (292 | ) | 181 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 2 | — | 2 | |||||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 179 | $ | 97 | $ | 195 | $ | (292 | ) | $ | 179 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of December 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 479 | $ | — | $ | 479 | ||||||||||
Accounts receivable, net | — | — | 1,725 | — | 1,725 | |||||||||||||||
Inventories | — | — | 685 | — | 685 | |||||||||||||||
Intercompany receivables | 23 | 2,114 | 7,316 | (9,453 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 9 | 1 | 854 | — | 864 | |||||||||||||||
Deferred income taxes | — | — | 254 | — | 254 | |||||||||||||||
Total current assets | 32 | 2,115 | 11,313 | (9,453 | ) | 4,007 | ||||||||||||||
Property, plant and equipment, net | — | — | 1,678 | — | 1,678 | |||||||||||||||
Goodwill | — | — | 4,528 | — | 4,528 | |||||||||||||||
Intangible assets, net | — | — | 806 | — | 806 | |||||||||||||||
Investment in subsidiaries | 12,855 | 14,894 | — | (27,749 | ) | — | ||||||||||||||
Intercompany loans receivable | — | 1,223 | 5,318 | (6,541 | ) | — | ||||||||||||||
Other assets | 70 | 5 | 919 | — | 994 | |||||||||||||||
Total Assets | $ | 12,957 | $ | 18,237 | $ | 24,562 | $ | (43,743 | ) | $ | 12,013 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Loans payable and current maturities of long-term debt | $ | — | $ | 160 | $ | 20 | $ | — | $ | 180 | ||||||||||
Accounts payable | — | — | 838 | — | 838 | |||||||||||||||
Accrued and other current liabilities | 323 | 33 | 1,421 | — | 1,777 | |||||||||||||||
Deferred revenue | — | — | 368 | — | 368 | |||||||||||||||
Intercompany payables | 3,516 | 3,810 | 2,127 | (9,453 | ) | — | ||||||||||||||
Total current liabilities | 3,839 | 4,003 | 4,774 | (9,453 | ) | 3,163 | ||||||||||||||
Long-term debt | — | 1,442 | 1 | — | 1,443 | |||||||||||||||
Intercompany loans payable | 3,688 | 1,860 | 993 | (6,541 | ) | — | ||||||||||||||
Deferred revenue | — | — | 392 | — | 392 | |||||||||||||||
Other liabilities | 300 | — | 1,549 | — | 1,849 | |||||||||||||||
Total Liabilities | 7,827 | 7,305 | 7,709 | (15,994 | ) | 6,847 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 12 | — | 12 | |||||||||||||||
Tyco Shareholders' Equity: | ||||||||||||||||||||
Common shares | 208 | — | — | — | 208 | |||||||||||||||
Common shares held in treasury | — | — | (1,031 | ) | — | (1,031 | ) | |||||||||||||
Other shareholders' equity | 4,922 | 10,932 | 17,848 | (27,749 | ) | 5,953 | ||||||||||||||
Total Tyco Shareholders' Equity | 5,130 | 10,932 | 16,817 | (27,749 | ) | 5,130 | ||||||||||||||
Nonredeemable noncontrolling interest | — | — | 24 | — | 24 | |||||||||||||||
Total Equity | 5,130 | 10,932 | 16,841 | (27,749 | ) | 5,154 | ||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 12,957 | $ | 18,237 | $ | 24,562 | $ | (43,743 | ) | $ | 12,013 | |||||||||
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 STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Quarter Ended December 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 46 | $ | (136 | ) | $ | 213 | $ | — | $ | 123 | |||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (92 | ) | — | (92 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 4 | — | 4 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (54 | ) | — | (54 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Net increase in intercompany loans | — | (15 | ) | — | 15 | — | ||||||||||||||
Increase in investment in subsidiaries | — | (9 | ) | — | 9 | — | ||||||||||||||
Sales and maturities of investments | — | — | 112 | — | 112 | |||||||||||||||
Purchases of investments | — | — | (32 | ) | — | (32 | ) | |||||||||||||
Other | — | — | 6 | — | 6 | |||||||||||||||
Net cash used in investing activities | — | (24 | ) | (67 | ) | 24 | (67 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of short-term debt | — | 310 | — | — | 310 | |||||||||||||||
Repayment of short-term debt | — | (150 | ) | — | — | (150 | ) | |||||||||||||
Proceeds from exercise of share options | — | — | 40 | — | 40 | |||||||||||||||
Dividends paid | (74 | ) | — | — | — | (74 | ) | |||||||||||||
Repurchase of common shares by treasury | — | — | (250 | ) | — | (250 | ) | |||||||||||||
Net intercompany loan borrowings (repayments) | 28 | — | (13 | ) | (15 | ) | — | |||||||||||||
Increase in equity from parent | — | — | 9 | (9 | ) | — | ||||||||||||||
Other | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (46 | ) | 160 | (223 | ) | (24 | ) | (133 | ) | |||||||||||
Effect of currency translation on cash | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (84 | ) | — | (84 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | — | 563 | — | 563 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 479 | $ | — | $ | 479 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Quarter Ended December 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 60 | $ | 42 | $ | (141 | ) | $ | — | $ | (39 | ) | ||||||||
Net cash provided by discontinued operating activities | — | — | 4 | — | 4 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (90 | ) | — | (90 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 3 | — | 3 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (23 | ) | — | (23 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Net increase in intercompany loans | — | (10 | ) | — | 10 | — | ||||||||||||||
Sales and maturities of investments | — | — | 11 | — | 11 | |||||||||||||||
Purchases of investments | — | — | (91 | ) | — | (91 | ) | |||||||||||||
Other | — | — | 8 | — | 8 | |||||||||||||||
Net cash used in investing activities | — | (10 | ) | (188 | ) | 10 | (188 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Proceeds from exercise of share options | — | — | 46 | — | 46 | |||||||||||||||
Dividends paid | (70 | ) | — | — | — | (70 | ) | |||||||||||||
Repurchase of common shares by treasury | — | — | (50 | ) | — | (50 | ) | |||||||||||||
Net intercompany loan borrowings | 10 | — | — | 10 | — | |||||||||||||||
Transfer (to) from discontinued operations | — | (32 | ) | 3 | — | (29 | ) | |||||||||||||
Other | — | — | (16 | ) | — | (16 | ) | |||||||||||||
Net cash used in financing activities | (60 | ) | (32 | ) | (17 | ) | (10 | ) | (119 | ) | ||||||||||
Net cash provided by discontinued financing activities | — | — | 29 | — | 29 | |||||||||||||||
Effect of currency translation on cash | — | — | 3 | — | 3 | |||||||||||||||
Net decrease in cash and cash equivalents | — | — | (310 | ) | — | (310 | ) | |||||||||||||
Less: net increase in cash and cash equivalents related to discontinued operations | — | — | 33 | — | 33 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 844 | — | 844 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 501 | $ | — | $ | 501 | ||||||||||
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 27, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation—The Consolidated Financial Statements included herein are unaudited, but in the opinion of management, such financial statements include all adjustments, consisting of normal recurring adjustments, necessary to summarize fairly the Company's financial position, results of operations and cash flows for the interim period. The unaudited Consolidated Financial Statements include the consolidated results 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 unaudited Consolidated Financial Statements have been prepared in United States dollars ("USD") and in accordance with the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The results reported in these unaudited Consolidated Financial Statements should not be taken as indicative of results that may be expected for the entire year. These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 27, 2013 (the "2013 Form 10-K"). | |
References to 2014 and 2013 are to Tyco's fiscal quarters ending December 27, 2013 and December 28, 2012, respectively, unless otherwise indicated. | |
The Company has a 52 or 53-week fiscal year that ends on the last Friday in September. Fiscal years 2014 and 2013 are both 52-week years. |
2012_Separation_Transaction_Ta
2012 Separation Transaction (Tables) | 3 Months Ended | |||||||||||||||||||||||
Dec. 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 Quarter Ended | For the Quarter Ended | |||||||||||||||||||||||
December 27, 2013 | December 28, 2012 | |||||||||||||||||||||||
Continuing | Discontinued | Total | Continuing | Discontinued | Total | |||||||||||||||||||
Operations | Operations | Operations | Operations | |||||||||||||||||||||
Professional fees | $ | 1 | $ | — | $ | 1 | $ | — | $ | 3 | $ | 3 | ||||||||||||
Information technology related costs | 3 | — | 3 | 2 | 2 | 4 | ||||||||||||||||||
Employee compensation costs | — | — | — | — | 1 | 1 | ||||||||||||||||||
Marketing costs | 10 | — | 10 | 14 | — | 14 | ||||||||||||||||||
Other | 1 | — | 1 | 2 | (10 | ) | (8 | ) | ||||||||||||||||
Total pre-tax separation charges (gain) | 15 | — | 15 | 18 | (4 | ) | 14 | |||||||||||||||||
Tax-related separation charges | — | — | — | 4 | — | 4 | ||||||||||||||||||
Tax benefit on pre-tax separation charges | (6 | ) | — | (6 | ) | (5 | ) | — | (5 | ) | ||||||||||||||
Total separation charges (gain), net of tax | $ | 9 | $ | — | $ | 9 | $ | 17 | $ | (4 | ) | $ | 13 | |||||||||||
Summary of Separation Charges were classified in continuing operations within the entity's consolidated Statement of Operations | ' | |||||||||||||||||||||||
Pre-tax Separation Charges were classified in continuing operations within the Company's Consolidated Statement of Operations as follows ($ in millions): | ||||||||||||||||||||||||
For the Quarters Ended | ||||||||||||||||||||||||
December 27, 2013 | December 28, 2012 | |||||||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | $ | 15 | $ | 13 | ||||||||||||||||||||
Separation costs | — | 5 | ||||||||||||||||||||||
Total | $ | 15 | $ | 18 | ||||||||||||||||||||
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment Charges, Net (Tables) | 3 Months Ended | |||||||||||
Dec. 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 Quarters Ended | ||||||||||||
27-Dec-13 | 28-Dec-12 | |||||||||||
2014 actions | $ | 1 | $ | — | ||||||||
2013 actions | 1 | 5 | ||||||||||
2012 and prior actions | 1 | 5 | ||||||||||
Total | $ | 3 | $ | 10 | ||||||||
Charges reflected in restructuring and asset impairments, net | $ | 3 | $ | 10 | ||||||||
Disclosure of the restructuring reserve by balance sheet classification | ' | |||||||||||
As of December 27, 2013 and September 27, 2013, restructuring reserves related to all actions were included in the Company's Consolidated Balance Sheets as follows ($ in millions): | ||||||||||||
As of | ||||||||||||
27-Dec-13 | September 27, | |||||||||||
2013 | ||||||||||||
Accrued and other current liabilities | $ | 92 | $ | 113 | ||||||||
Other liabilities | 18 | 18 | ||||||||||
Total | $ | 110 | $ | 131 | ||||||||
2014 Actions | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Restructuring and asset impairment charges, net | ' | |||||||||||
Restructuring and asset impairment charges, net, during the quarter ended December 27, 2013 related to the 2014 actions are as follows ($ in millions): | ||||||||||||
For the Quarter Ended | ||||||||||||
December 27, 2013 | ||||||||||||
Employee | ||||||||||||
Severance and | ||||||||||||
Benefits | ||||||||||||
ROW Installation & Services | 1 | |||||||||||
Total | $ | 1 | ||||||||||
Schedule of restructuring reserve by type of cost | ' | |||||||||||
The rollforward of the reserves from September 27, 2013 to December 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 27, 2013 | $ | — | ||||||||||
Charges | 1 | |||||||||||
Balance as of December 27, 2013 | $ | 1 | ||||||||||
2013 Actions | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Restructuring and asset impairment charges, net | ' | |||||||||||
Restructuring and asset impairment charges, net, during the quarter ended December 27, 2013 related to the 2013 actions are as follows ($ in millions): | ||||||||||||
For the Quarter Ended | ||||||||||||
December 27, 2013 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | (1 | ) | $ | 1 | $ | — | |||||
ROW Installation & Services | (3 | ) | — | (3 | ) | |||||||
Global Products | 4 | — | 4 | |||||||||
Total | $ | — | $ | 1 | $ | 1 | ||||||
For the Quarter Ended | ||||||||||||
December 28, 2012 | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
ROW Installation & Services | $ | 2 | $ | 1 | $ | 3 | ||||||
Global Products | 1 | — | 1 | |||||||||
Corporate and Other | 1 | — | 1 | |||||||||
Total | $ | 4 | $ | 1 | $ | 5 | ||||||
Restructuring and asset impairment charges, net, incurred cumulative to date from initiation of the 2013 actions are as follows ($ in millions): | ||||||||||||
Employee | Facility Exit | Total | ||||||||||
Severance and | and Other | |||||||||||
Benefits | Charges | |||||||||||
NA Installation & Services | $ | 33 | $ | 2 | $ | 35 | ||||||
ROW Installation & Services | 43 | 4 | 47 | |||||||||
Global Products | 13 | 2 | 15 | |||||||||
Corporate and Other | 3 | — | 3 | |||||||||
Total | $ | 92 | $ | 8 | $ | 100 | ||||||
Schedule of restructuring reserve by type of cost | ' | |||||||||||
The rollforward of the reserves from September 27, 2013 to December 27, 2013 is as follows ($ in millions): | ||||||||||||
Balance as of September 27, 2013 | $ | 68 | ||||||||||
Charges | 6 | |||||||||||
Reversals | (5 | ) | ||||||||||
Utilization | (16 | ) | ||||||||||
Balance as of December 27, 2013 | $ | 53 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||||||||||
Dec. 27, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Disclosure of income tax examinations | ' | |||||||||||||||
Open tax years in significant jurisdictions are as follows: | ||||||||||||||||
Jurisdiction | Years Open | |||||||||||||||
To Audit | ||||||||||||||||
Australia | 2004-2013 | |||||||||||||||
Canada | 2005-2013 | |||||||||||||||
Germany | 2005-2013 | |||||||||||||||
South Korea | 2006-2013 | |||||||||||||||
Switzerland | 2004-2013 | |||||||||||||||
United Kingdom | 2011-2013 | |||||||||||||||
United States | 1997-2013 | |||||||||||||||
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 December 27, 2013 and September 27, 2013, are as follows ($ in millions): | ||||||||||||||||
2012 Tax Sharing Agreement | 2007 Tax Sharing Agreement | |||||||||||||||
As of | As of | |||||||||||||||
27-Dec-13 | 27-Sep-13 | 27-Dec-13 | 27-Sep-13 | |||||||||||||
Net receivable: | ||||||||||||||||
Other assets | — | — | 68 | 67 | ||||||||||||
— | — | 68 | 67 | |||||||||||||
Tax sharing agreement related liabilities | ||||||||||||||||
Accrued and other current liabilities | (33 | ) | (33 | ) | (130 | ) | (130 | ) | ||||||||
Other liabilities | (36 | ) | (36 | ) | (254 | ) | (254 | ) | ||||||||
(69 | ) | (69 | ) | (384 | ) | (384 | ) | |||||||||
Net liability | $ | (69 | ) | $ | (69 | ) | $ | (316 | ) | $ | (317 | ) | ||||
Income (loss) in conjunction with Tax Sharing Agreements | ' | |||||||||||||||
Tyco recorded a loss in conjunction with the 2012 Tax Sharing Agreement within Other expense, net in the Consolidated Statements of Operations for the quarters ended December 27, 2013 and December 28, 2012 as follows ($ in millions): | ||||||||||||||||
For the Quarters Ended | ||||||||||||||||
27-Dec-13 | 28-Dec-12 | |||||||||||||||
Income (loss) | ||||||||||||||||
2012 Tax Sharing Agreement | $ | (2 | ) | $ | (10 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||||||||||||
Dec. 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 are as follows (in millions, except per share data): | ||||||||||||||||||||||
For the Quarter Ended | For the Quarter Ended | |||||||||||||||||||||
December 27, 2013 | December 28, 2012 | |||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | |||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic earnings per share attributable to Tyco common shareholders: | ||||||||||||||||||||||
Income from continuing operations | $ | 270 | 464 | $ | 0.58 | $ | 159 | 466 | $ | 0.34 | ||||||||||||
Share options and restricted share awards | 7 | 7 | ||||||||||||||||||||
Diluted earnings per share attributable to Tyco common shareholders: | ||||||||||||||||||||||
Income from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments | $ | 270 | 471 | $ | 0.57 | $ | 159 | 473 | $ | 0.34 | ||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Dec. 27, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Rollforward of goodwill by segment | ' | |||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows ($ in millions): | ||||||||||||||||
NA Installation & | ROW | Global | Total | |||||||||||||
Services | Installation & | Products | ||||||||||||||
Services | ||||||||||||||||
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 | ||||||||||||
Acquisitions/Purchase Accounting Adjustments | 8 | 14 | — | 22 | ||||||||||||
Currency Translation | (6 | ) | (6 | ) | (1 | ) | (13 | ) | ||||||||
As of December 27, 2013 | ||||||||||||||||
Gross Goodwill | $ | 2,106 | $ | 2,360 | $ | 1,823 | $ | 6,289 | ||||||||
Impairments | (126 | ) | (1,068 | ) | (567 | ) | (1,761 | ) | ||||||||
Carrying Amount of Goodwill | $ | 1,980 | $ | 1,292 | $ | 1,256 | $ | 4,528 | ||||||||
Schedule of intangible assets | ' | |||||||||||||||
The following table sets forth the gross carrying amount and accumulated amortization of the Company's intangible assets as of December 27, 2013 and September 27, 2013 ($ in millions): | ||||||||||||||||
As of | ||||||||||||||||
27-Dec-13 | September 27, 2013 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Amortizable: | ||||||||||||||||
Contracts and related customer relationships | $ | 1,541 | $ | 1,203 | $ | 1,531 | $ | 1,199 | ||||||||
Intellectual property | 623 | 479 | 623 | 477 | ||||||||||||
Other | 41 | 15 | 40 | 13 | ||||||||||||
Total | $ | 2,205 | $ | 1,697 | $ | 2,194 | $ | 1,689 | ||||||||
Non-Amortizable: | ||||||||||||||||
Intellectual property | $ | 222 | $ | 223 | ||||||||||||
Franchise rights | 76 | 76 | ||||||||||||||
Total | $ | 298 | $ | 299 | ||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Dec. 27, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Carrying value of debt | ' | |||||||
Debt as of December 27, 2013 and September 27, 2013 is as follows ($ in millions): | ||||||||
As of | ||||||||
December 27, | September 27, | |||||||
2013 | 2013 | |||||||
Commercial paper (1) | 160 | — | ||||||
3.375% public notes due 2015 | 258 | 258 | ||||||
3.75% public notes due 2018 | 67 | 67 | ||||||
8.5% public notes due 2019 | 364 | 364 | ||||||
7.0% public notes due 2019 | 246 | 246 | ||||||
6.875% public notes due 2021 | 466 | 466 | ||||||
4.625% public notes due 2023 | 42 | 42 | ||||||
Other(1)(2) | 20 | 20 | ||||||
Total debt | 1,623 | 1,463 | ||||||
Less current portion | 180 | 20 | ||||||
Long-term debt | $ | 1,443 | $ | 1,443 | ||||
_______________________________________________________________________________ | ||||||||
(1) | Commercial paper and $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of December 27, 2013. | |||||||
(2) | $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of September 27, 2013. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Dec. 27, 2013 | ||||||||||||||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | ' | |||||||||||||||||||
Assets measured at fair value on a recurring basis | ' | |||||||||||||||||||
The following table presents the Company's hierarchy for its assets measured at fair value on a recurring basis as of December 27, 2013 and September 27, 2013: | ||||||||||||||||||||
Consolidated Balance Sheet | ||||||||||||||||||||
Classification | ||||||||||||||||||||
As of December 27, 2013 | Prepaids and | Other Assets | ||||||||||||||||||
Other Current | ||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | Assets | ||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||
Corporate debt securities | $ | — | $ | 27 | $ | 27 | $ | 8 | $ | 19 | ||||||||||
U.S. Government debt securities | 116 | 20 | 136 | 36 | 100 | |||||||||||||||
Total | $ | 116 | $ | 47 | $ | 163 | $ | 44 | $ | 119 | ||||||||||
Consolidated Balance Sheet | ||||||||||||||||||||
Classification | ||||||||||||||||||||
As of September 27, 2013 | Prepaids and | Other | ||||||||||||||||||
Other Current | Assets | |||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Total | Assets | ||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||
Corporate debt securities | $ | — | $ | 34 | $ | 34 | $ | 11 | $ | 23 | ||||||||||
U.S. Government debt securities | 171 | 38 | $ | 209 | 89 | 120 | ||||||||||||||
Total | $ | 171 | $ | 72 | $ | 243 | $ | 100 | $ | 143 | ||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) (Defined Benefit Pension Plans) | 3 Months Ended | |||||||||||||||
Dec. 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 the Company's material U.S. and non-U.S. defined benefit pension plans is as follows ($ in millions): | ||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||
For the Quarters Ended | For the Quarters Ended | |||||||||||||||
December 27, 2013 | December 28, 2012 | December 27, 2013 | December 28, 2012 | |||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 5 | $ | 5 | ||||||||
Interest cost | 9 | 8 | 14 | 13 | ||||||||||||
Expected return on plan assets | (12 | ) | (12 | ) | (18 | ) | (16 | ) | ||||||||
Amortization of net actuarial loss | 2 | 4 | 3 | 2 | ||||||||||||
Net periodic benefit cost | $ | 1 | $ | 1 | $ | 4 | $ | 4 | ||||||||
Equity_and_Comprehensive_Incom1
Equity and Comprehensive Income (Tables) | 3 Months Ended | |||||||||||
Dec. 27, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Comprehensive Income (Loss) | ' | |||||||||||
Other Comprehensive (Loss) Income | ||||||||||||
Other Comprehensive (Loss) Income is comprised of the following: | ||||||||||||
($ in millions) | For the Quarters Ended | |||||||||||
December 27, | December 28, | |||||||||||
2013 | 2012 | |||||||||||
Foreign currency translation | (37 | ) | 28 | |||||||||
Liquidation of foreign entities (1) | — | (10 | ) | |||||||||
Income tax expense (2) | — | (7 | ) | |||||||||
Foreign currency translation, net of tax | (37 | ) | 11 | |||||||||
Amortization of net actuarial losses (3) | 5 | 6 | ||||||||||
Income tax expense | (2 | ) | (2 | ) | ||||||||
Defined benefit and post retirement plans, net of tax | 3 | 4 | ||||||||||
Unrealized loss on marketable securities and derivative instruments (4) | — | (1 | ) | |||||||||
Income tax benefit | — | 2 | ||||||||||
Unrealized gain on marketable securities and derivative instruments, net of tax | — | 1 | ||||||||||
Other comprehensive (loss) income, net of tax | (34 | ) | 16 | |||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | ||||||||||
Other comprehensive (loss) income attributable to Tyco common shareholders | $ | (34 | ) | $ | 16 | |||||||
_______________________________________________________________________________ | ||||||||||||
(1) During the quarter ended December 28, 2012, $10 million of cumulative translation gains were transferred from currency translation and included in income from discontinued operation in the Consolidated Statements of Operations as a result of the sale of foreign entities. | ||||||||||||
(2) Income tax expense on the net investment hedge was $7 million for the quarter ended December 28, 2012. | ||||||||||||
(3) Reclassified to Net Periodic Benefit Cost. See Note 12 Retirement Plans for additional information. | ||||||||||||
(4) Reclassified realized gain (loss) on marketable securities and derivative instruments to Other expense, net. | ||||||||||||
Components of accumulated other comprehensive (loss) income | ' | |||||||||||
A summary of the changes in each component of accumulated other comprehensive loss, net of tax, for the quarter ended December 27, 2013 are as follows ($ in millions): | ||||||||||||
Currency | Retirement | Accumulated Other | ||||||||||
Translation | Plans | Comprehensive Loss | ||||||||||
Adjustments | ||||||||||||
Balance as of September 27, 2013 | $ | (521 | ) | $ | (466 | ) | $ | (987 | ) | |||
Other comprehensive loss before reclassifications, net of tax | (37 | ) | — | (37 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 3 | 3 | |||||||||
Other comprehensive (loss) income, net of tax | (37 | ) | 3 | (34 | ) | |||||||
Balance as of December 27, 2013 | $ | (558 | ) | $ | (463 | ) | $ | (1,021 | ) | |||
Consolidated_Segment_Data_Tabl
Consolidated Segment Data (Tables) | 3 Months Ended | |||||||
Dec. 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): | ||||||||
For the Quarters Ended | ||||||||
December 27, 2013 | December 28, 2012 | |||||||
Net revenue(1): | ||||||||
NA Installation & Services | $ | 957 | $ | 976 | ||||
ROW Installation & Services | 1,125 | 1,090 | ||||||
Global Products | 565 | 534 | ||||||
$ | 2,647 | $ | 2,600 | |||||
_______________________________________________________________________________ | ||||||||
(1) | Net revenue by operating segment excludes intercompany transactions. | |||||||
For the Quarters Ended | ||||||||
December 27, 2013 | December 28, 2012 | |||||||
Operating income (loss): | ||||||||
NA Installation & Services | $ | 117 | $ | 108 | ||||
ROW Installation & Services | 125 | 114 | ||||||
Global Products | 86 | 74 | ||||||
Corporate and Other (1) | 46 | (61 | ) | |||||
$ | 374 | $ | 235 | |||||
_______________________________________________________________________________ | ||||||||
-1 | Operating income for the quarter ended December 27, 2013 includes $92 million of income related to the settlement of a legacy legal matter with former management and $16 million of income related to the CIT settlement. See Note 11. |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Dec. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
Inventories consisted of the following ($ in millions): | ||||||||
As of | ||||||||
December 27, | September 27, | |||||||
2013 | 2013 | |||||||
Purchased materials and manufactured parts | $ | 167 | $ | 157 | ||||
Work in process | 91 | 93 | ||||||
Finished goods | 427 | 405 | ||||||
Inventories | $ | 685 | $ | 655 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Dec. 27, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of property, plant and equipment | ' | |||||||
Property, plant and equipment consisted of the following ($ in millions): | ||||||||
As of | ||||||||
December 27, | September 27, | |||||||
2013 | 2013 | |||||||
Land | $ | 44 | $ | 44 | ||||
Buildings | 397 | 388 | ||||||
Subscriber systems | 2,974 | 2,971 | ||||||
Machinery and equipment | 1,252 | 1,232 | ||||||
Construction in progress | 79 | 67 | ||||||
Accumulated depreciation | (3,068 | ) | (3,025 | ) | ||||
Property, Plant and Equipment, net | $ | 1,678 | $ | 1,677 | ||||
Guarantees_Tables
Guarantees (Tables) | 3 Months Ended | |||
Dec. 27, 2013 | ||||
Guarantees [Abstract] | ' | |||
Product warranty accrual | ' | |||
In the opinion of management, such obligations will not significantly affect the Company's financial position, results of operations or cash flows. | ||||
Balance as of September 27, 2013 | $ | 31 | ||
Warranties issued | 3 | |||
Changes in estimates | (2 | ) | ||
Settlements | (3 | ) | ||
Balance as of December 27, 2013 | $ | 29 | ||
Tyco_International_Finance_SA_
Tyco International Finance S.A. (Tables) | 3 Months Ended | |||||||||||||||||||
Dec. 27, 2013 | ||||||||||||||||||||
Tyco International Finance S.A. | ' | |||||||||||||||||||
Tyco International Finance S.A. condensed consolidating financial statements | ' | |||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 2,647 | $ | — | $ | 2,647 | ||||||||||
Cost of product sales | — | — | 1,023 | — | 1,023 | |||||||||||||||
Cost of services | — | — | 648 | — | 648 | |||||||||||||||
Selling, general and administrative expenses | (13 | ) | 1 | 611 | — | 599 | ||||||||||||||
Restructuring and asset impairment charges, net | — | — | 3 | — | 3 | |||||||||||||||
Operating income (loss) | 13 | (1 | ) | 362 | — | 374 | ||||||||||||||
Interest income | — | — | 3 | — | 3 | |||||||||||||||
Interest expense | — | (24 | ) | — | — | (24 | ) | |||||||||||||
Other expense, net | (1 | ) | — | — | — | (1 | ) | |||||||||||||
Equity in net income of subsidiaries | 268 | 208 | — | (476 | ) | — | ||||||||||||||
Intercompany interest and fees | (10 | ) | 9 | 1 | — | — | ||||||||||||||
Income from continuing operations before income taxes | 270 | 192 | 366 | (476 | ) | 352 | ||||||||||||||
Income tax expense | — | — | (76 | ) | — | (76 | ) | |||||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Income from continuing operations | 270 | 192 | 286 | (476 | ) | 272 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | |||||||||||||||
Net income | 270 | 192 | 286 | (476 | ) | 272 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net income | — | — | 2 | — | 2 | |||||||||||||||
Net income attributable to Tyco common shareholders | $ | 270 | $ | 192 | $ | 284 | $ | (476 | ) | $ | 270 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Quarter Ended December 27, 2013 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 270 | $ | 192 | $ | 286 | $ | (476 | ) | $ | 272 | |||||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||||||||
Foreign currency translation | (37 | ) | — | (37 | ) | 37 | (37 | ) | ||||||||||||
Defined benefit and post retirement plans | 3 | — | 3 | (3 | ) | 3 | ||||||||||||||
Unrealized gain on marketable securities and derivative instruments | — | — | — | — | — | |||||||||||||||
Total other comprehensive loss, net of tax | (34 | ) | — | (34 | ) | 34 | (34 | ) | ||||||||||||
Comprehensive income | 236 | 192 | 252 | (442 | ) | 238 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 2 | — | 2 | |||||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 236 | $ | 192 | $ | 250 | $ | (442 | ) | $ | 236 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
For the Quarter Ended December 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 2,600 | $ | — | $ | 2,600 | ||||||||||
Cost of product sales | — | — | 1,004 | — | 1,004 | |||||||||||||||
Cost of services | — | — | 664 | — | 664 | |||||||||||||||
Selling, general and administrative expenses | 5 | 1 | 676 | — | 682 | |||||||||||||||
Separation costs | 3 | — | 2 | — | 5 | |||||||||||||||
Restructuring and asset impairment charges, net | — | — | 10 | — | 10 | |||||||||||||||
Operating (loss) income | (8 | ) | (1 | ) | 244 | — | 235 | |||||||||||||
Interest income | — | — | 4 | — | 4 | |||||||||||||||
Interest expense | — | (24 | ) | — | — | (24 | ) | |||||||||||||
Other (expense) income, net | (10 | ) | — | 1 | — | (9 | ) | |||||||||||||
Equity in net income of subsidiaries | 203 | 73 | — | (276 | ) | — | ||||||||||||||
Intercompany interest and fees | (22 | ) | 49 | (27 | ) | — | — | |||||||||||||
Income from continuing operations before income taxes | 163 | 97 | 222 | (276 | ) | 206 | ||||||||||||||
Income tax expense | — | — | (39 | ) | — | (39 | ) | |||||||||||||
Equity loss in earnings of unconsolidated subsidiaries | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Income from continuing operations | 163 | 97 | 177 | (276 | ) | 161 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 4 | — | 4 | |||||||||||||||
Net income | 163 | 97 | 181 | (276 | ) | 165 | ||||||||||||||
Less: noncontrolling interest in subsidiaries net income | — | — | 2 | — | 2 | |||||||||||||||
Net income attributable to Tyco common shareholders | $ | 163 | $ | 97 | $ | 179 | $ | (276 | ) | $ | 163 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Quarter Ended December 28, 2012 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Net income | $ | 163 | $ | 97 | $ | 181 | $ | (276 | ) | $ | 165 | |||||||||
Other comprehensive income, net of tax | ||||||||||||||||||||
Foreign currency translation | 11 | — | 11 | (11 | ) | 11 | ||||||||||||||
Defined benefit and post retirement plans | 4 | — | 4 | (4 | ) | 4 | ||||||||||||||
Unrealized gain on marketable securities and derivative instruments | 1 | — | 1 | (1 | ) | 1 | ||||||||||||||
Total other comprehensive income, net of tax | 16 | — | 16 | (16 | ) | 16 | ||||||||||||||
Comprehensive income | 179 | 97 | 197 | (292 | ) | 181 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 2 | — | 2 | |||||||||||||||
Comprehensive income attributable to Tyco common shareholders | $ | 179 | $ | 97 | $ | 195 | $ | (292 | ) | $ | 179 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of December 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 479 | $ | — | $ | 479 | ||||||||||
Accounts receivable, net | — | — | 1,725 | — | 1,725 | |||||||||||||||
Inventories | — | — | 685 | — | 685 | |||||||||||||||
Intercompany receivables | 23 | 2,114 | 7,316 | (9,453 | ) | — | ||||||||||||||
Prepaid expenses and other current assets | 9 | 1 | 854 | — | 864 | |||||||||||||||
Deferred income taxes | — | — | 254 | — | 254 | |||||||||||||||
Total current assets | 32 | 2,115 | 11,313 | (9,453 | ) | 4,007 | ||||||||||||||
Property, plant and equipment, net | — | — | 1,678 | — | 1,678 | |||||||||||||||
Goodwill | — | — | 4,528 | — | 4,528 | |||||||||||||||
Intangible assets, net | — | — | 806 | — | 806 | |||||||||||||||
Investment in subsidiaries | 12,855 | 14,894 | — | (27,749 | ) | — | ||||||||||||||
Intercompany loans receivable | — | 1,223 | 5,318 | (6,541 | ) | — | ||||||||||||||
Other assets | 70 | 5 | 919 | — | 994 | |||||||||||||||
Total Assets | $ | 12,957 | $ | 18,237 | $ | 24,562 | $ | (43,743 | ) | $ | 12,013 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Loans payable and current maturities of long-term debt | $ | — | $ | 160 | $ | 20 | $ | — | $ | 180 | ||||||||||
Accounts payable | — | — | 838 | — | 838 | |||||||||||||||
Accrued and other current liabilities | 323 | 33 | 1,421 | — | 1,777 | |||||||||||||||
Deferred revenue | — | — | 368 | — | 368 | |||||||||||||||
Intercompany payables | 3,516 | 3,810 | 2,127 | (9,453 | ) | — | ||||||||||||||
Total current liabilities | 3,839 | 4,003 | 4,774 | (9,453 | ) | 3,163 | ||||||||||||||
Long-term debt | — | 1,442 | 1 | — | 1,443 | |||||||||||||||
Intercompany loans payable | 3,688 | 1,860 | 993 | (6,541 | ) | — | ||||||||||||||
Deferred revenue | — | — | 392 | — | 392 | |||||||||||||||
Other liabilities | 300 | — | 1,549 | — | 1,849 | |||||||||||||||
Total Liabilities | 7,827 | 7,305 | 7,709 | (15,994 | ) | 6,847 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 12 | — | 12 | |||||||||||||||
Tyco Shareholders' Equity: | ||||||||||||||||||||
Common shares | 208 | — | — | — | 208 | |||||||||||||||
Common shares held in treasury | — | — | (1,031 | ) | — | (1,031 | ) | |||||||||||||
Other shareholders' equity | 4,922 | 10,932 | 17,848 | (27,749 | ) | 5,953 | ||||||||||||||
Total Tyco Shareholders' Equity | 5,130 | 10,932 | 16,817 | (27,749 | ) | 5,130 | ||||||||||||||
Nonredeemable noncontrolling interest | — | — | 24 | — | 24 | |||||||||||||||
Total Equity | 5,130 | 10,932 | 16,841 | (27,749 | ) | 5,154 | ||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 12,957 | $ | 18,237 | $ | 24,562 | $ | (43,743 | ) | $ | 12,013 | |||||||||
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 STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Quarter Ended December 27, 2013 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 46 | $ | (136 | ) | $ | 213 | $ | — | $ | 123 | |||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (92 | ) | — | (92 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 4 | — | 4 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (54 | ) | — | (54 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Net increase in intercompany loans | — | (15 | ) | — | 15 | — | ||||||||||||||
Increase in investment in subsidiaries | — | (9 | ) | — | 9 | — | ||||||||||||||
Sales and maturities of investments | — | — | 112 | — | 112 | |||||||||||||||
Purchases of investments | — | — | (32 | ) | — | (32 | ) | |||||||||||||
Other | — | — | 6 | — | 6 | |||||||||||||||
Net cash used in investing activities | — | (24 | ) | (67 | ) | 24 | (67 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of short-term debt | — | 310 | — | — | 310 | |||||||||||||||
Repayment of short-term debt | — | (150 | ) | — | — | (150 | ) | |||||||||||||
Proceeds from exercise of share options | — | — | 40 | — | 40 | |||||||||||||||
Dividends paid | (74 | ) | — | — | — | (74 | ) | |||||||||||||
Repurchase of common shares by treasury | — | — | (250 | ) | — | (250 | ) | |||||||||||||
Net intercompany loan borrowings (repayments) | 28 | — | (13 | ) | (15 | ) | — | |||||||||||||
Increase in equity from parent | — | — | 9 | (9 | ) | — | ||||||||||||||
Other | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (46 | ) | 160 | (223 | ) | (24 | ) | (133 | ) | |||||||||||
Effect of currency translation on cash | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (84 | ) | — | (84 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | — | 563 | — | 563 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 479 | $ | — | $ | 479 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
For the Quarter Ended December 28, 2012 | ||||||||||||||||||||
($ in millions) | ||||||||||||||||||||
Tyco | Tyco | Other | Consolidating | Total | ||||||||||||||||
International | International | Subsidiaries | Adjustments | |||||||||||||||||
Ltd. | Finance S.A. | |||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 60 | $ | 42 | $ | (141 | ) | $ | — | $ | (39 | ) | ||||||||
Net cash provided by discontinued operating activities | — | — | 4 | — | 4 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | — | (90 | ) | — | (90 | ) | |||||||||||||
Proceeds from disposal of assets | — | — | 3 | — | 3 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (23 | ) | — | (23 | ) | |||||||||||||
Acquisition of dealer generated customer accounts and bulk account purchases | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Net increase in intercompany loans | — | (10 | ) | — | 10 | — | ||||||||||||||
Sales and maturities of investments | — | — | 11 | — | 11 | |||||||||||||||
Purchases of investments | — | — | (91 | ) | — | (91 | ) | |||||||||||||
Other | — | — | 8 | — | 8 | |||||||||||||||
Net cash used in investing activities | — | (10 | ) | (188 | ) | 10 | (188 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Proceeds from exercise of share options | — | — | 46 | — | 46 | |||||||||||||||
Dividends paid | (70 | ) | — | — | — | (70 | ) | |||||||||||||
Repurchase of common shares by treasury | — | — | (50 | ) | — | (50 | ) | |||||||||||||
Net intercompany loan borrowings | 10 | — | — | 10 | — | |||||||||||||||
Transfer (to) from discontinued operations | — | (32 | ) | 3 | — | (29 | ) | |||||||||||||
Other | — | — | (16 | ) | — | (16 | ) | |||||||||||||
Net cash used in financing activities | (60 | ) | (32 | ) | (17 | ) | (10 | ) | (119 | ) | ||||||||||
Net cash provided by discontinued financing activities | — | — | 29 | — | 29 | |||||||||||||||
Effect of currency translation on cash | — | — | 3 | — | 3 | |||||||||||||||
Net decrease in cash and cash equivalents | — | — | (310 | ) | — | (310 | ) | |||||||||||||
Less: net increase in cash and cash equivalents related to discontinued operations | — | — | 33 | — | 33 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 844 | — | 844 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 501 | $ | — | $ | 501 | ||||||||||
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended |
Dec. 27, 2013 | Sep. 27, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Number of weeks in fiscal year | '364 days | '364 days |
2012_Separation_Transaction_De
2012 Separation Transaction (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Extraordinary and Unusual Items [Abstract] | ' | ' |
Separation transaction and merger costs | $15 | $14 |
2012_Separation_Transaction_De1
2012 Separation Transaction (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Extraordinary Item [Line Items] | ' | ' |
Professional fees | $1 | $3 |
Information technology related costs | 3 | 4 |
Employee compensation costs | 0 | 1 |
Marketing costs | 10 | 14 |
Other | 1 | -8 |
Total pre-tax separation charges (gain) | 15 | 14 |
Tax-related separation charges | 0 | 4 |
Tax benefit on pre-tax separation charges | -6 | -5 |
Total separation charges (gain), net of tax | 9 | 13 |
Continuing Operations | ' | ' |
Extraordinary Item [Line Items] | ' | ' |
Professional fees | 1 | 0 |
Information technology related costs | 3 | 2 |
Employee compensation costs | 0 | 0 |
Marketing costs | 10 | 14 |
Other | 1 | 2 |
Total pre-tax separation charges (gain) | 15 | 18 |
Tax-related separation charges | 0 | 4 |
Tax benefit on pre-tax separation charges | -6 | -5 |
Total separation charges (gain), net of tax | 9 | 17 |
Discontinued Operations | ' | ' |
Extraordinary Item [Line Items] | ' | ' |
Professional fees | 0 | 3 |
Information technology related costs | 0 | 2 |
Employee compensation costs | 0 | 1 |
Marketing costs | 0 | 0 |
Other | 0 | -10 |
Total pre-tax separation charges (gain) | 0 | -4 |
Tax-related separation charges | 0 | 0 |
Tax benefit on pre-tax separation charges | 0 | 0 |
Total separation charges (gain), net of tax | $0 | ($4) |
2012_Separation_Transaction_De2
2012 Separation Transaction (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Extraordinary Item [Line Items] | ' | ' |
Total pre-tax separation charges (gain) | $15 | $14 |
Continuing Operations | ' | ' |
Extraordinary Item [Line Items] | ' | ' |
Selling, general and administrative expenses (SG&A) | 15 | 13 |
Separation costs | 0 | 5 |
Total pre-tax separation charges (gain) | $15 | $18 |
Divestitures_Details
Divestitures (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Cash true-up adjustment | $0 | $40 |
Gain (loss) on divestitures | $3 | $3 |
Restructuring_and_Asset_Impair2
Restructuring and Asset Impairment Charges, Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | $3 | $10 |
Restructuring and asset impairment charges, total | 3 | 10 |
2014 Actions | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 0 |
2013 Actions | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 5 |
Restructuring and asset impairment charges, total | 100 | ' |
2013 Actions | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 1 |
Restructuring and asset impairment charges, total | 8 | ' |
2013 Actions | NA Installation & Services | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | ' |
Restructuring and asset impairment charges, total | 35 | ' |
2013 Actions | NA Installation & Services | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | ' |
Restructuring and asset impairment charges, total | 2 | ' |
2013 Actions | ROW Installation & Services | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | -3 | 3 |
Restructuring and asset impairment charges, total | 47 | ' |
2013 Actions | ROW Installation & Services | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | 1 |
Restructuring and asset impairment charges, total | 4 | ' |
2013 Actions | Global Products | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 4 | 1 |
Restructuring and asset impairment charges, total | 15 | ' |
2013 Actions | Global Products | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | 0 |
Restructuring and asset impairment charges, total | 2 | ' |
2012 and prior actions | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 5 |
Minimum [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and related charges, expected in fiscal 2014 | 50 | ' |
Maximum [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and related charges, expected in fiscal 2014 | $75 | ' |
Restructuring_and_Asset_Impair3
Restructuring and Asset Impairment Charges, Net (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | $3 | $10 |
Restructuring and asset impairment charges, total | 3 | 10 |
2014 Actions | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 0 |
2014 Actions | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | ' |
2014 Actions | ROW Installation & Services | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | ' |
2013 Actions | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 5 |
Restructuring and asset impairment charges, total | 100 | ' |
2013 Actions | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | 4 |
Restructuring and asset impairment charges, total | 92 | ' |
2013 Actions | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | 1 |
Restructuring and asset impairment charges, total | 8 | ' |
2013 Actions | NA Installation & Services | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | ' |
Restructuring and asset impairment charges, total | 35 | ' |
2013 Actions | NA Installation & Services | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | -1 | ' |
Restructuring and asset impairment charges, total | 33 | ' |
2013 Actions | NA Installation & Services | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 1 | ' |
Restructuring and asset impairment charges, total | 2 | ' |
2013 Actions | ROW Installation & Services | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | -3 | 3 |
Restructuring and asset impairment charges, total | 47 | ' |
2013 Actions | ROW Installation & Services | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | -3 | 2 |
Restructuring and asset impairment charges, total | 43 | ' |
2013 Actions | ROW Installation & Services | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | 1 |
Restructuring and asset impairment charges, total | 4 | ' |
2013 Actions | Global Products | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 4 | 1 |
Restructuring and asset impairment charges, total | 15 | ' |
2013 Actions | Global Products | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 4 | 1 |
Restructuring and asset impairment charges, total | 13 | ' |
2013 Actions | Global Products | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | 0 | 0 |
Restructuring and asset impairment charges, total | 2 | ' |
2013 Actions | Corporate and Other | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | ' | 1 |
Restructuring and asset impairment charges, total | 3 | ' |
2013 Actions | Corporate and Other | Employee Severance and Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | ' | 1 |
Restructuring and asset impairment charges, total | 3 | ' |
2013 Actions | Corporate and Other | Facility Exit and Other Charges | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | ' | 0 |
Restructuring and asset impairment charges, total | 0 | ' |
2012 and prior actions | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and asset impairment charges, net | $1 | $5 |
Restructuring_and_Asset_Impair4
Restructuring and Asset Impairment Charges, Net (Details 3) (USD $) | Dec. 27, 2013 | Sep. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 |
In Millions, unless otherwise specified | 2014 Actions | 2013 Actions | 2012 and prior actions | ||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $110 | $131 | $0 | $68 | $63 |
Charges | ' | ' | 1 | 6 | ' |
Reversals | ' | ' | ' | -5 | ' |
Utilization | ' | ' | ' | -16 | -8 |
Balance at the end of the period | $110 | $131 | $1 | $53 | $56 |
Restructuring_and_Asset_Impair5
Restructuring and Asset Impairment Charges, Net (Details 4) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | Sep. 27, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and asset impairment charges, net | $3 | $10 | ' |
Restructuring reserve | 110 | ' | 131 |
Accrued and Other Current Liabilities [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve | 92 | ' | 113 |
Other Liabilities [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve | 18 | ' | 18 |
2012 and prior actions | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and asset impairment charges, net | 1 | 5 | ' |
Utilization | 8 | ' | ' |
Restructuring reserve | 56 | ' | 63 |
Selling, general and administrative expenses | Repositioning actions | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Repositioning charges related to professional fees | $6 | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Business Acquisition [Line Items] | ' | ' |
Acquisition of businesses, net of cash acquired | $54 | $23 |
Acquisition and integration costs | 1 | 1 |
NA Installation & Services | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquisition of businesses, net of cash acquired | ' | 23 |
Westfire, Inc. | NA Installation & Services and ROW Installation & Services segments | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Consideration Transferred | 57 | ' |
Acquisition of businesses, net of cash acquired | 54 | ' |
Cash balance acquired in the acquisition of a business | 1 | ' |
Business Combination, Contingent Consideration, Liability | $2 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | Sep. 27, 2013 |
2012 Tax Sharing Agreement | ' | ' | ' |
Tax Sharing Agreement [Line Items] | ' | ' | ' |
Other assets | $0 | ' | $0 |
Net receivable | 0 | ' | 0 |
Accrued and other current liabilities | -33 | ' | -33 |
Other liabilities | -36 | ' | -36 |
Tax sharing agreement related liabilities | -69 | ' | -69 |
Net liability | -69 | ' | -69 |
(Expense) | -2 | -10 | ' |
2007 Tax Sharing Agreement | ' | ' | ' |
Tax Sharing Agreement [Line Items] | ' | ' | ' |
Other assets | 68 | ' | 67 |
Net receivable | 68 | ' | 67 |
Accrued and other current liabilities | -130 | ' | -130 |
Other liabilities | -254 | ' | -254 |
Tax sharing agreement related liabilities | -384 | ' | -384 |
Net liability | ($316) | ' | ($317) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 27, 2013 | Jun. 20, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 |
2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2012 Tax Sharing Agreement | Tyco International | Tyco International | Pentair | Pentair | ADT | ADT | Pentair and ADT | Covidien | TE Connectivity | ||
2007 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2012 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | |||||||
Tax Sharing Agreement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, net of valuation allowance | 173,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross deferred tax assets | 2,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowances | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | 20.00% | 58.00% | 27.50% | ' | 42.00% | 31.00% |
Income tax examination, additional taxes owed | ' | 883,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, proposed tax penalties | ' | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of additional tax deficiency | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of disallowed interest and related deductions | ' | 2,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of estimated adverse impact on financial results | ' | 6,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity awards obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Equity awards income received from participating entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Equity awards obligation, net | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed earnings of subsidiaries | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional tax liability | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Income | ' | ' |
Income from continuing operations | $270 | $159 |
Income from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments | $270 | $159 |
Shares | ' | ' |
Income from continuing operations (in shares) | 464 | 466 |
Share options and restricted share awards | 7 | 7 |
Income from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments (in shares) | 471 | 473 |
Per Share Amount | ' | ' |
Income from continuing operations (in dollars per share) | $0.58 | $0.34 |
Income from continuing operations attributable to Tyco common shareholders, giving effect to dilutive adjustments (in dollars per share) | $0.57 | $0.34 |
Stock Options | ' | ' |
Earnings Per Share | ' | ' |
Stock options and restricted stock excluded from the computation of earnings per share | 2 | 7 |
Restricted stock units | ' | ' |
Earnings Per Share | ' | ' |
Stock options and restricted stock excluded from the computation of earnings per share | 1 | 1 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | $4,519 | $4,367 | ' |
Impairments | -1,761 | -1,761 | -1,761 |
Acquisitions/Purchase Accounting Adjustments | 22 | 191 | ' |
Transfers | ' | 0 | ' |
Currency Translation | -13 | -39 | ' |
Goodwill balance at end of period | 4,528 | 4,519 | ' |
Gross Goodwill | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | ' | ' | 6,128 |
Goodwill balance at end of period | 6,289 | 6,280 | 6,128 |
NA Installation & Services | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | 1,978 | 2,001 | ' |
Impairments | -126 | -126 | -126 |
Acquisitions/Purchase Accounting Adjustments | 8 | 24 | ' |
Transfers | ' | -39 | ' |
Currency Translation | -6 | -8 | ' |
Goodwill balance at end of period | 1,980 | 1,978 | ' |
NA Installation & Services | Gross Goodwill | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | ' | ' | 2,127 |
Goodwill balance at end of period | 2,106 | 2,104 | 2,127 |
ROW Installation & Services | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | 1,284 | 1,237 | ' |
Impairments | -1,068 | -1,068 | -1,068 |
Acquisitions/Purchase Accounting Adjustments | 14 | 77 | ' |
Transfers | ' | 0 | ' |
Currency Translation | -6 | -30 | ' |
Goodwill balance at end of period | 1,292 | 1,284 | ' |
ROW Installation & Services | Gross Goodwill | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | ' | ' | 2,305 |
Goodwill balance at end of period | 2,360 | 2,352 | 2,305 |
Global Products | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | 1,257 | 1,129 | ' |
Impairments | -567 | -567 | -567 |
Acquisitions/Purchase Accounting Adjustments | 0 | 90 | ' |
Transfers | ' | 39 | ' |
Currency Translation | -1 | -1 | ' |
Goodwill balance at end of period | 1,256 | 1,257 | ' |
Global Products | Gross Goodwill | ' | ' | ' |
Changes in the carrying amount of goodwill, by segment ($ in millions): | ' | ' | ' |
Goodwill balance at beginning of period | ' | ' | 1,696 |
Goodwill balance at end of period | $1,823 | $1,824 | $1,696 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | Sep. 27, 2013 |
Gross carrying amount and accumulated amortization of intangible assets: | ' | ' | ' |
Gross Carrying Amount, Amortizable | $2,205 | ' | $2,194 |
Accumulated Amortization | 1,697 | ' | 1,689 |
Gross Carrying Amount, Non-Amortizable | 298 | ' | 299 |
Intangible asset amortization expense and estimated aggregate amortization expense ($ in millions): | ' | ' | ' |
Intangible asset amortization expense | 25 | 25 | ' |
Estimated aggregate amortization expense, remainder of 2014 | 71 | ' | ' |
Estimated aggregate amortization expense, 2015 | 77 | ' | ' |
Estimated aggregate amortization expense, 2016 | 70 | ' | ' |
Estimated aggregate amortization expense, 2017 | 61 | ' | ' |
Estimated aggregate amortization expense, 2018 and thereafter | 229 | ' | ' |
Contracts and related customer relationships | ' | ' | ' |
Gross carrying amount and accumulated amortization of intangible assets: | ' | ' | ' |
Gross Carrying Amount, Amortizable | 1,541 | ' | 1,531 |
Accumulated Amortization | 1,203 | ' | 1,199 |
Intellectual property | ' | ' | ' |
Gross carrying amount and accumulated amortization of intangible assets: | ' | ' | ' |
Gross Carrying Amount, Amortizable | 623 | ' | 623 |
Accumulated Amortization | 479 | ' | 477 |
Gross Carrying Amount, Non-Amortizable | 222 | ' | 223 |
Other | ' | ' | ' |
Gross carrying amount and accumulated amortization of intangible assets: | ' | ' | ' |
Gross Carrying Amount, Amortizable | 41 | ' | 40 |
Accumulated Amortization | 15 | ' | 13 |
Franchise rights | ' | ' | ' |
Gross carrying amount and accumulated amortization of intangible assets: | ' | ' | ' |
Gross Carrying Amount, Non-Amortizable | $76 | ' | $76 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |||
Dec. 27, 2013 | Sep. 27, 2013 | |||
Debt: | ' | ' | ||
Debt | $1,623,000,000 | $1,463,000,000 | ||
Less current portion | 180,000,000 | 20,000,000 | ||
Long-term debt | 1,443,000,000 | 1,443,000,000 | ||
Available line of credit under revolving credit agreement | 1,000,000,000 | ' | ||
Line Of Credit Facility Restricted Amount | 160,000,000 | ' | ||
Amounts drawn under revolving credit facilities | 0 | 0 | ||
Description of variable interest rate basis | 'LIBOR | ' | ||
Carrying amount | ' | ' | ||
Debt: | ' | ' | ||
Debt instrument, fair value | 1,603,000,000 | 1,443,000,000 | ||
Total | ' | ' | ||
Debt: | ' | ' | ||
Debt instrument, fair value | 1,808,000,000 | 1,676,000,000 | ||
Fair Value, Debt Subject to Fair Value Measurement, Fair Value, Actively Traded | 1,648,000,000 | 1,676,000,000 | ||
Commercial paper | ' | ' | ||
Debt: | ' | ' | ||
Less current portion | 160,000,000 | [1] | 0 | [1] |
Debt instrument, fair value | 160,000,000 | ' | ||
Available line of credit under revolving credit agreement | 1,000,000,000 | ' | ||
Short-term Debt, Weighted Average Interest Rate | 0.31% | ' | ||
3.375% public notes due 2015 | ' | ' | ||
Debt: | ' | ' | ||
Debt | 258,000,000 | 258,000,000 | ||
Debt stated interest rate (as a percent) | 3.38% | 3.38% | ||
3.75% public notes due 2018 | ' | ' | ||
Debt: | ' | ' | ||
Debt | 67,000,000 | 67,000,000 | ||
Debt stated interest rate (as a percent) | 3.75% | 3.75% | ||
8.5% public notes due 2019 | ' | ' | ||
Debt: | ' | ' | ||
Debt | 364,000,000 | 364,000,000 | ||
Debt stated interest rate (as a percent) | 8.50% | 8.50% | ||
7.0% public notes due 2019 | ' | ' | ||
Debt: | ' | ' | ||
Debt | 246,000,000 | 246,000,000 | ||
Debt stated interest rate (as a percent) | 7.00% | 7.00% | ||
6.875% public notes due 2021 | ' | ' | ||
Debt: | ' | ' | ||
Debt | 466,000,000 | 466,000,000 | ||
Debt stated interest rate (as a percent) | 6.88% | 6.88% | ||
4.625% public notes due 2023 | ' | ' | ||
Debt: | ' | ' | ||
Debt | 42,000,000 | 42,000,000 | ||
Debt stated interest rate (as a percent) | 4.63% | 4.63% | ||
Other | ' | ' | ||
Debt: | ' | ' | ||
Debt | 20,000,000 | [1],[2] | 20,000,000 | [1],[2] |
Less current portion | $20,000,000 | $20,000,000 | ||
[1] | Commercial paper and $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of DecemberB 27, 2013. | |||
[2] | $20 million of the amount shown as other, comprises the current portion of the Company's total debt as of SeptemberB 27, 2013. |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Dec. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Consolidated Balance Sheets Classification - Prepaid and Other Current Assets | $44 | $100 |
Consolidated Balance Sheets Classification - Other Assets | 119 | 143 |
Level 1 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 116 | 171 |
Level 2 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 47 | 72 |
Total | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 163 | 243 |
Corporate debt securities | ' | ' |
Available-for-sale investments | ' | ' |
Consolidated Balance Sheets Classification - Prepaid and Other Current Assets | 8 | ' |
Corporate debt securities | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Consolidated Balance Sheets Classification - Prepaid and Other Current Assets | ' | 11 |
Consolidated Balance Sheets Classification - Other Assets | 19 | 23 |
Corporate debt securities | Level 1 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 0 | 0 |
Corporate debt securities | Level 2 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 27 | 34 |
Corporate debt securities | Total | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 27 | 34 |
U.S. Government debt securities | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Consolidated Balance Sheets Classification - Prepaid and Other Current Assets | 36 | 89 |
Consolidated Balance Sheets Classification - Other Assets | 100 | 120 |
U.S. Government debt securities | Level 1 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 116 | 171 |
U.S. Government debt securities | Level 2 | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 20 | 38 |
U.S. Government debt securities | Total | Recurring | ' | ' |
Available-for-sale investments | ' | ' |
Available-for-Sale Securities | 136 | 209 |
Foreign Exchange Contract | ' | ' |
Available-for-sale investments | ' | ' |
Derivative, notional amount | $322 | $278 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | 3 Months Ended | ||
Dec. 27, 2013 | Dec. 28, 2012 | Sep. 27, 2013 | |
Cost-method Investments, Realized Gain (Loss) | ' | ' | ' |
Cost-method investments, realized gain (loss) | ($7,000,000) | ' | ' |
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 | $12,000,000 | $22,000,000 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Dec. 27, 2013 | Dec. 27, 2013 | Jun. 20, 2013 | Dec. 27, 2013 | Sep. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Sep. 27, 2013 | Dec. 28, 2012 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 28, 2012 |
Remedial costs | Remediation and monitoring costs | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | Legacy Matters | Asbestos Matters | Asbestos Matters | Former CFO | TE Connectivity | Covidien | Tyco International | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | |
claim | Legacy Matters | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | 2007 Tax Sharing Agreement | ||||||||||
Legacy Matters Related to Former Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claims against the company by former CEO and former CFO | ' | ' | ' | ' | ' | $140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Legacy matter liabilities | ' | ' | ' | ' | ' | 92,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment in loss reserve due to lapsing of time periods, recognized net gain | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' |
Environmental Matters [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency costs, minimum | 42,000,000 | 31,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency costs, maximum | 110,000,000 | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Probable contingency loss | 74,000,000 | 62,000,000 | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, accrued and other current liabilities | 51,000,000 | 48,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, other liabilities | 23,000,000 | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 6,000,000 |
Asbestos Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pending claims, number | ' | ' | ' | ' | ' | ' | 5,300 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual | ' | ' | ' | ' | ' | ' | 167,000,000 | 169,000,000 | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, before insurance recoveries | ' | ' | ' | ' | ' | ' | 319,000,000 | 321,000,000 | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, insurance recoveries | ' | ' | ' | ' | ' | ' | 152,000,000 | 152,000,000 | ' | ' | ' | ' | ' | ' |
Compliance Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax liability share percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | 42.00% | 27.00% | ' | ' |
Income tax examination, additional taxes owed | ' | ' | 883,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, proposed tax penalties | ' | ' | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of additional tax deficiency | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of disallowed interest and related deductions | ' | ' | 2,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, amount of estimated adverse impact on financial results | ' | ' | 6,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CIT tax settlement | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' |
Accrued and other current liabilities | ' | ' | ' | $130,000,000 | $130,000,000 | ' | ' | ' | ' | ($19,000,000) | ($25,000,000) | ' | ' | ' |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
U.S. Pension Plans | ' | ' |
Defined benefit plan, net period benefit cost: | ' | ' |
Service cost | $2 | $1 |
Interest cost | 9 | 8 |
Expected return on plan assets | -12 | -12 |
Amortization of net actuarial loss | 2 | 4 |
Net periodic benefit cost | 1 | 1 |
Amortization of net actuarial loss expected over current fiscal year | 9 | ' |
Minimum required contributions to pension plans for fiscal year 2014 | 25 | ' |
Employer contributions | 3 | ' |
Non-U.S. Pension Plans | ' | ' |
Defined benefit plan, net period benefit cost: | ' | ' |
Service cost | 5 | 5 |
Interest cost | 14 | 13 |
Expected return on plan assets | -18 | -16 |
Amortization of net actuarial loss | 3 | 2 |
Net periodic benefit cost | 4 | 4 |
Amortization of net actuarial loss expected over current fiscal year | 13 | ' |
Minimum required contributions to pension plans for fiscal year 2014 | 35 | ' |
Employer contributions | $11 | ' |
Share_Plans_Details
Share Plans (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Shared Based Compensation Arrangements: | ' | ' |
Number of awards, issued (in shares) | 3 | 4.2 |
Schedule of weighted average assumptions | ' | ' |
Fair value assumption, expected stock price volatility (as a percent) | 33.00% | 35.00% |
Fair value assumption, risk-free interest rate (as a percent) | 1.63% | 0.86% |
Fair value assumption, expected annual dividend, per share (in dollars per share) | $0.64 | $0.60 |
Fair value assumption, expected option life | '5 years 6 months | '5 years 8 months 12 days |
Leadership grants | ' | ' |
Shared Based Compensation Arrangements: | ' | ' |
Number of awards, issued (in shares) | ' | 1.9 |
Schedule of weighted average assumptions | ' | ' |
Fair value assumption, expected stock price volatility (as a percent) | ' | 35.00% |
Fair value assumption, risk-free interest rate (as a percent) | ' | 0.87% |
Fair value assumption, expected annual dividend, per share (in dollars per share) | ' | $0.60 |
Fair value assumption, expected option life | ' | '5 years 9 months 18 days |
Performance Share Awards | ' | ' |
Shared Based Compensation Arrangements: | ' | ' |
Awards granted, other than options, number (in shares) | 0.6 | 0.9 |
Awards granted, other than options, weighted-average grant-date fair value (in dollars per share) | $39.01 | $30.36 |
Award vesting period | '3 years | '3 years |
Share Options | ' | ' |
Shared Based Compensation Arrangements: | ' | ' |
Awards granted, options, number (in shares) | 1.9 | 2.6 |
Awards granted, options, weighted-average grant-date fair value (in dollars per share) | $10.12 | $7.16 |
Award vesting period | '4 years | '4 years |
Share Options | Leadership grants | ' | ' |
Shared Based Compensation Arrangements: | ' | ' |
Number of awards, issued (in shares) | ' | 1.5 |
Awards granted, options, weighted-average grant-date fair value (in dollars per share) | ' | $7.20 |
Award vesting period | ' | '3 years |
Restricted Stock Awards | ' | ' |
Shared Based Compensation Arrangements: | ' | ' |
Awards granted, other than options, number (in shares) | 0.5 | 0.7 |
Awards granted, other than options, weighted-average grant-date fair value (in dollars per share) | $37.15 | $27.14 |
Award vesting period | '4 years | '4 years |
Restricted Stock Awards | Leadership grants | ' | ' |
Shared Based Compensation Arrangements: | ' | ' |
Number of awards, issued (in shares) | ' | 0.4 |
Awards granted, other than options, weighted-average grant-date fair value (in dollars per share) | ' | $27.14 |
Equity_and_Comprehensive_Incom2
Equity and Comprehensive Income (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 11, 2013 | Mar. 06, 2013 | Jan. 29, 2013 | Dec. 27, 2013 | Feb. 19, 2014 | Nov. 14, 2013 | Mar. 29, 2013 |
installment | |||||||
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Cash dividend payable (in dollars per share) | ' | $0.64 | ' | ' | ' | ' | ' |
Number of quarterly installments of dividend payable | ' | 4 | ' | ' | ' | ' | ' |
Installment of dividend payable (in dollars per share) | ' | $0.16 | ' | ' | ' | ' | ' |
Accrued dividend | ' | ' | ' | ' | ' | ' | $296,000,000 |
Third Installment, Dividend Per Common Stock | ' | ' | ' | ' | ' | $0.16 | ' |
Fourth Installment, Dividend Per Common Stock | ' | ' | ' | ' | $0.16 | ' | ' |
Common Stock, Dividends, Increase (Decrease) Per Share | $0.08 | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Approved Subject to Shareholder Approval | $0.72 | ' | ' | ' | ' | ' | ' |
Share Repurchase Program | ' | ' | ' | ' | ' | ' | ' |
Amount approved under the share repurchase program | ' | ' | 600,000,000 | ' | ' | ' | ' |
Number of shares repurchased | ' | ' | ' | 7 | ' | ' | ' |
Value of shares repurchased | ' | ' | ' | 250,000,000 | ' | ' | ' |
Amount outstanding under the 2013 share repurchase program | ' | ' | ' | $250,000,000 | ' | ' | ' |
Equity_and_Comprehensive_Incom3
Equity and Comprehensive Income (Details 2) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Foreign currency translation | ($37) | $28 | ||
Liquidation of foreign entities (1) | 0 | -10 | [1] | |
Income tax expense (2) | 0 | -7 | [2] | |
Foreign currency translation, net of tax | -37 | 11 | ||
Amortization of net actuarial losses (3) | 5 | [3] | 6 | [3] |
Income tax expense | -2 | -2 | ||
Defined benefit and post retirement plans, net of tax | 3 | 4 | ||
Unrealized loss on marketable securities and derivative instruments (4) | 0 | [4] | -1 | [4] |
Income tax benefit | 0 | 2 | ||
Unrealized gain on marketable securities and derivative instruments, net of tax | 0 | 1 | ||
Other comprehensive (loss) income, net of tax | -34 | 16 | ||
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive (loss) income attributable to Tyco common shareholders | -34 | 16 | ||
Currency Translation Adjustments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Other comprehensive (loss) income, net of tax | -37 | ' | ||
Amounts transferred from accumulated other comprehensive income (loss) currency translation | ' | -10 | ||
Income tax expense on net investment hedge | ' | $7 | ||
[1] | During the quarter ended December 28, 2012, $10 million of cumulative translation gains were transferred from currency translation and included in income from discontinued operation in the Consolidated Statements of Operations as a result of the sale of foreign entities. | |||
[2] | Income tax expense on the net investment hedge was $7 million for the quarter ended December 28, 2012. | |||
[3] | Reclassified to Net Periodic Benefit Cost. See Note 12 Retirement Plans for additional information. | |||
[4] | alized gain (loss) on marketable securities and derivative instruments to Other expense, net. |
Equity_and_Comprehensive_Incom4
Equity and Comprehensive Income (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 |
Components of Accumulated Other Comprehensive Income (Loss) | ' | ' |
Balance as of September 27, 2013 | ($987) | ' |
Total other comprehensive (loss) income, net of tax | -34 | 16 |
Balance as of December 27, 2013 | -1,021 | ' |
Currency Translation Adjustments | ' | ' |
Components of Accumulated Other Comprehensive Income (Loss) | ' | ' |
Balance as of September 27, 2013 | -521 | ' |
Other comprehensive loss before reclassifications, net of tax | -37 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | ' |
Total other comprehensive (loss) income, net of tax | -37 | ' |
Balance as of December 27, 2013 | -558 | ' |
Retirement Plans | ' | ' |
Components of Accumulated Other Comprehensive Income (Loss) | ' | ' |
Balance as of September 27, 2013 | -466 | ' |
Other comprehensive loss before reclassifications, net of tax | 0 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | 3 | ' |
Total other comprehensive (loss) income, net of tax | 3 | ' |
Balance as of December 27, 2013 | -463 | ' |
Accumulated Other Comprehensive Loss | ' | ' |
Components of Accumulated Other Comprehensive Income (Loss) | ' | ' |
Balance as of September 27, 2013 | -987 | ' |
Other comprehensive loss before reclassifications, net of tax | -37 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | 3 | ' |
Total other comprehensive (loss) income, net of tax | -34 | 16 |
Balance as of December 27, 2013 | ($1,021) | ' |
Consolidated_Segment_Data_Deta
Consolidated Segment Data (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | ||
Selected information by segment | ' | ' | ||
Net revenue | $2,647 | [1] | $2,600 | [1] |
Operating income (loss) | 374 | 235 | ||
Legacy Matters Related to Former Management | ' | ' | ||
Legacy legal matters reversal | 92 | 0 | ||
NA Installation & Services | ' | ' | ||
Selected information by segment | ' | ' | ||
Net revenue | 957 | [1] | 976 | [1] |
ROW Installation & Services | ' | ' | ||
Selected information by segment | ' | ' | ||
Net revenue | 1,125 | [1] | 1,090 | [1] |
Global Products | ' | ' | ||
Selected information by segment | ' | ' | ||
Net revenue | 565 | [1] | 534 | [1] |
Operating Segments | NA Installation & Services | ' | ' | ||
Selected information by segment | ' | ' | ||
Operating income (loss) | 117 | 108 | ||
Operating Segments | ROW Installation & Services | ' | ' | ||
Selected information by segment | ' | ' | ||
Operating income (loss) | 125 | 114 | ||
Operating Segments | Global Products | ' | ' | ||
Selected information by segment | ' | ' | ||
Operating income (loss) | 86 | 74 | ||
Corporate and Other (1) | ' | ' | ||
Selected information by segment | ' | ' | ||
Operating income (loss) | 46 | [2] | -61 | |
2007 Tax Sharing Agreement | ' | ' | ||
Legacy Matters Related to Former Management | ' | ' | ||
CIT tax settlement | 60 | ' | ||
Tyco International | 2007 Tax Sharing Agreement | ' | ' | ||
Legacy Matters Related to Former Management | ' | ' | ||
CIT tax settlement | $16 | ' | ||
[1] | (1)B Net revenue by operating segment excludes intercompany transactions. | |||
[2] | (1)Operating income for the quarter ended December 27, 2013 includes $92 million of income related to the settlement of a legacy legal matter with former management and $16 million of income related to the CIT settlement. See Note 11. |
Inventory_Details
Inventory (Details) (USD $) | Dec. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Purchased materials and manufactured parts | $167 | $157 |
Work in process | 91 | 93 |
Finished goods | 427 | 405 |
Inventories | $685 | $655 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment: | ' | ' |
Accumulated depreciation | ($3,068) | ($3,025) |
Property, Plant and Equipment, net | 1,678 | 1,677 |
Land | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 44 | 44 |
Buildings | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 397 | 388 |
Subscriber systems | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 2,974 | 2,971 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | 1,252 | 1,232 |
Construction in progress | ' | ' |
Property, Plant and Equipment: | ' | ' |
Property, plant and equipment | $79 | $67 |
Guarantees_Details
Guarantees (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 27, 2013 | Sep. 27, 2013 |
Guarantees [Abstract] | ' | ' |
Performance guarantee obligations for 2012 separation, fair value | $3 | $3 |
Performance guarantee obligations for 2007 separation, fair value | 3 | 3 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ' | ' |
Warranty accrual, balance at the beginning of the period | 31 | ' |
Warranties issued | 3 | ' |
Changes in estimates | -2 | ' |
Settlements | -3 | ' |
Warranty accrual, balance at the end of the period | $29 | ' |
Tyco_International_Finance_SA_1
Tyco International Finance S.A. (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 27, 2013 | Dec. 28, 2012 | ||
Condensed Financial Statements, Captions | ' | ' | ||
Increase (Decrease) Investment in Subsidiaries Restructuring | ' | $5 | ||
Statements of Operations | ' | ' | ||
Net revenue | 2,647 | [1] | 2,600 | [1] |
Cost of product sales | 1,023 | 1,004 | ||
Cost of services | 648 | 664 | ||
Selling, general and administrative expenses | 599 | 682 | ||
Separation costs | 0 | 5 | ||
Restructuring and asset impairment charges, net | 3 | 10 | ||
Operating income | 374 | 235 | ||
Interest income | 3 | 4 | ||
Interest expense | -24 | -24 | ||
Other expense, net | -1 | -9 | ||
Equity in net income of subsidiaries | 0 | 0 | ||
Intercompany interest and fees | 0 | 0 | ||
Income from continuing operations before income taxes | 352 | 206 | ||
Income tax expense | -76 | -39 | ||
Equity loss in earnings of unconsolidated subsidiaries | -4 | -6 | ||
Income from continuing operations | 272 | 161 | ||
Income from discontinued operations, net of income taxes | 0 | 4 | ||
Net income | 272 | 165 | ||
Less: noncontrolling interest in subsidiaries net income | 2 | 2 | ||
Net income attributable to Tyco common shareholders | 270 | 163 | ||
Statement of Comprehensive Income | ' | ' | ||
Net income | 272 | 165 | ||
Other comprehensive (loss) income, net of tax | ' | ' | ||
Foreign currency translation | -37 | 11 | ||
Defined benefit and post retirement plans | 3 | 4 | ||
Unrealized gain on marketable securities and derivative instruments | 0 | 1 | ||
Total other comprehensive (loss) income, net of tax | -34 | 16 | ||
Comprehensive income | 238 | 181 | ||
Less: comprehensive income attributable to noncontrolling interests | 2 | 2 | ||
Comprehensive income attributable to Tyco common shareholders | 236 | 179 | ||
Cash Flows From Operating Activities: | ' | ' | ||
Net cash provided by (used in) operating activities | 123 | -39 | ||
Net cash provided by discontinued operating activities | 0 | 4 | ||
Cash Flows From Investing Activities: | ' | ' | ||
Capital expenditures | -92 | -90 | ||
Proceeds from disposal of assets | 4 | 3 | ||
Acquisition of businesses, net of cash acquired | -54 | -23 | ||
Acquisition of dealer generated customer accounts and bulk account purchases | -11 | -6 | ||
Net increase in intercompany loans | 0 | 0 | ||
Increase in investment in subsidiaries | 0 | ' | ||
Sales and maturities of investments | 112 | 11 | ||
Net (increase) decrease in investments | -32 | 11 | ||
Payments to Acquire Investments | -32 | -91 | ||
Other | 6 | 8 | ||
Net cash used in investing activities | -67 | -188 | ||
Cash Flows From Financing Activities: | ' | ' | ||
Proceeds from issuance of short-term debt | 310 | ' | ||
Repayments of Debt | -150 | 0 | ||
Proceeds from exercise of share options | 40 | 46 | ||
Dividends paid | -74 | -70 | ||
Repurchase of common shares by treasury | -250 | -50 | ||
Net intercompany loan borrowings (repayments) | 0 | 0 | ||
Transfer to discontinued operations | 0 | -29 | ||
Increase in equity from parent | 0 | ' | ||
Other | -9 | -16 | ||
Net cash used in financing activities | -133 | -119 | ||
Net cash provided by discontinued financing activities | 0 | 29 | ||
Effect of currency translation on cash | -7 | 3 | ||
Net decrease in cash and cash equivalents | -84 | -310 | ||
Less: net (decrease) increase in cash and cash equivalents related to discontinued operations | 0 | 33 | ||
Cash and cash equivalents at beginning of period | 563 | 844 | ||
Cash and cash equivalents at end of period | 479 | 501 | ||
Tyco International Ltd. | ' | ' | ||
Statements of Operations | ' | ' | ||
Selling, general and administrative expenses | -13 | 5 | ||
Separation costs | ' | 3 | ||
Operating income | 13 | -8 | ||
Interest income | 0 | ' | ||
Interest expense | 0 | ' | ||
Other expense, net | -1 | -10 | ||
Equity in net income of subsidiaries | 268 | 203 | ||
Intercompany interest and fees | -10 | -22 | ||
Income from continuing operations before income taxes | 270 | 163 | ||
Income tax expense | ' | 0 | ||
Income from continuing operations | 270 | 163 | ||
Income from discontinued operations, net of income taxes | ' | 0 | ||
Net income | 270 | 163 | ||
Net income attributable to Tyco common shareholders | 270 | 163 | ||
Statement of Comprehensive Income | ' | ' | ||
Net income | 270 | 163 | ||
Other comprehensive (loss) income, net of tax | ' | ' | ||
Foreign currency translation | -37 | 11 | ||
Defined benefit and post retirement plans | 3 | 4 | ||
Unrealized gain on marketable securities and derivative instruments | 0 | 1 | ||
Total other comprehensive (loss) income, net of tax | -34 | 16 | ||
Comprehensive income | 236 | 179 | ||
Less: comprehensive income attributable to noncontrolling interests | ' | 0 | ||
Comprehensive income attributable to Tyco common shareholders | 236 | 179 | ||
Cash Flows From Operating Activities: | ' | ' | ||
Net cash provided by (used in) operating activities | 46 | 60 | ||
Cash Flows From Investing Activities: | ' | ' | ||
Net increase in intercompany loans | ' | 0 | ||
Net cash used in investing activities | ' | 0 | ||
Cash Flows From Financing Activities: | ' | ' | ||
Dividends paid | -74 | -70 | ||
Net intercompany loan borrowings (repayments) | 28 | 10 | ||
Transfer to discontinued operations | ' | 0 | ||
Increase in equity from parent | 0 | ' | ||
Net cash used in financing activities | -46 | -60 | ||
Net cash provided by discontinued financing activities | ' | 0 | ||
Tyco International Finance S.A. | ' | ' | ||
Condensed Financial Statements, Captions | ' | ' | ||
Ownership Percentage of Subsidiary by Parent | 100.00% | ' | ||
Statements of Operations | ' | ' | ||
Selling, general and administrative expenses | 1 | 1 | ||
Separation costs | ' | 0 | ||
Operating income | -1 | -1 | ||
Interest expense | -24 | -24 | ||
Equity in net income of subsidiaries | 208 | 73 | ||
Intercompany interest and fees | 9 | 49 | ||
Income from continuing operations before income taxes | 192 | 97 | ||
Income tax expense | 0 | 0 | ||
Income from continuing operations | 192 | 97 | ||
Net income | 192 | 97 | ||
Net income attributable to Tyco common shareholders | 192 | 97 | ||
Statement of Comprehensive Income | ' | ' | ||
Net income | 192 | 97 | ||
Other comprehensive (loss) income, net of tax | ' | ' | ||
Foreign currency translation | ' | 0 | ||
Defined benefit and post retirement plans | ' | 0 | ||
Unrealized gain on marketable securities and derivative instruments | 0 | 0 | ||
Total other comprehensive (loss) income, net of tax | ' | 0 | ||
Comprehensive income | 192 | 97 | ||
Less: comprehensive income attributable to noncontrolling interests | ' | 0 | ||
Comprehensive income attributable to Tyco common shareholders | 192 | 97 | ||
Cash Flows From Operating Activities: | ' | ' | ||
Net cash provided by (used in) operating activities | -136 | 42 | ||
Cash Flows From Investing Activities: | ' | ' | ||
Net increase in intercompany loans | -15 | -10 | ||
Increase in investment in subsidiaries | -9 | ' | ||
Net cash used in investing activities | -24 | -10 | ||
Cash Flows From Financing Activities: | ' | ' | ||
Proceeds from issuance of short-term debt | 310 | ' | ||
Repayments of Debt | -150 | ' | ||
Transfer to discontinued operations | ' | -32 | ||
Increase in equity from parent | 0 | ' | ||
Net cash used in financing activities | 160 | -32 | ||
Other Subsidiaries | ' | ' | ||
Statements of Operations | ' | ' | ||
Net revenue | 2,647 | 2,600 | ||
Cost of product sales | 1,023 | 1,004 | ||
Cost of services | 648 | 664 | ||
Selling, general and administrative expenses | 611 | 676 | ||
Separation costs | ' | 2 | ||
Restructuring and asset impairment charges, net | 3 | 10 | ||
Operating income | 362 | 244 | ||
Interest income | 3 | 4 | ||
Interest expense | 0 | 0 | ||
Other expense, net | 0 | 1 | ||
Intercompany interest and fees | 1 | -27 | ||
Income from continuing operations before income taxes | 366 | 222 | ||
Income tax expense | -76 | -39 | ||
Equity loss in earnings of unconsolidated subsidiaries | -4 | -6 | ||
Income from continuing operations | 286 | 177 | ||
Income from discontinued operations, net of income taxes | 0 | 4 | ||
Net income | 286 | 181 | ||
Less: noncontrolling interest in subsidiaries net income | 2 | 2 | ||
Net income attributable to Tyco common shareholders | 284 | 179 | ||
Statement of Comprehensive Income | ' | ' | ||
Net income | 286 | 181 | ||
Other comprehensive (loss) income, net of tax | ' | ' | ||
Foreign currency translation | -37 | 11 | ||
Defined benefit and post retirement plans | 3 | 4 | ||
Unrealized gain on marketable securities and derivative instruments | 0 | 1 | ||
Total other comprehensive (loss) income, net of tax | -34 | 16 | ||
Comprehensive income | 252 | 197 | ||
Less: comprehensive income attributable to noncontrolling interests | 2 | 2 | ||
Comprehensive income attributable to Tyco common shareholders | 250 | 195 | ||
Cash Flows From Operating Activities: | ' | ' | ||
Net cash provided by (used in) operating activities | 213 | -141 | ||
Net cash provided by discontinued operating activities | ' | 4 | ||
Cash Flows From Investing Activities: | ' | ' | ||
Capital expenditures | -92 | -90 | ||
Proceeds from disposal of assets | 4 | 3 | ||
Acquisition of businesses, net of cash acquired | -54 | -23 | ||
Acquisition of dealer generated customer accounts and bulk account purchases | -11 | -6 | ||
Net increase in intercompany loans | ' | 0 | ||
Sales and maturities of investments | 112 | ' | ||
Net (increase) decrease in investments | -32 | 11 | ||
Payments to Acquire Investments | ' | -91 | ||
Other | 6 | 8 | ||
Net cash used in investing activities | -67 | -188 | ||
Cash Flows From Financing Activities: | ' | ' | ||
Proceeds from issuance of short-term debt | 0 | ' | ||
Proceeds from exercise of share options | 40 | 46 | ||
Dividends paid | ' | 0 | ||
Repurchase of common shares by treasury | -250 | -50 | ||
Net intercompany loan borrowings (repayments) | -13 | 0 | ||
Transfer to discontinued operations | ' | 3 | ||
Increase in equity from parent | 9 | ' | ||
Other | -9 | -16 | ||
Net cash used in financing activities | -223 | -17 | ||
Net cash provided by discontinued financing activities | ' | 29 | ||
Effect of currency translation on cash | -7 | 3 | ||
Net decrease in cash and cash equivalents | -84 | -310 | ||
Less: net (decrease) increase in cash and cash equivalents related to discontinued operations | ' | 33 | ||
Cash and cash equivalents at beginning of period | 563 | 844 | ||
Cash and cash equivalents at end of period | 479 | 501 | ||
Consolidating Adjustments | ' | ' | ||
Statements of Operations | ' | ' | ||
Equity in net income of subsidiaries | -476 | -276 | ||
Intercompany interest and fees | ' | 0 | ||
Income from continuing operations before income taxes | -476 | -276 | ||
Income from continuing operations | -476 | -276 | ||
Income from discontinued operations, net of income taxes | ' | 0 | ||
Net income | -476 | -276 | ||
Net income attributable to Tyco common shareholders | -476 | -276 | ||
Statement of Comprehensive Income | ' | ' | ||
Net income | -476 | -276 | ||
Other comprehensive (loss) income, net of tax | ' | ' | ||
Foreign currency translation | 37 | -11 | ||
Defined benefit and post retirement plans | -3 | -4 | ||
Unrealized gain on marketable securities and derivative instruments | 0 | -1 | ||
Total other comprehensive (loss) income, net of tax | 34 | -16 | ||
Comprehensive income | -442 | -292 | ||
Less: comprehensive income attributable to noncontrolling interests | ' | 0 | ||
Comprehensive income attributable to Tyco common shareholders | -442 | -292 | ||
Cash Flows From Investing Activities: | ' | ' | ||
Net increase in intercompany loans | 15 | 10 | ||
Increase in investment in subsidiaries | 9 | ' | ||
Net cash used in investing activities | 24 | 10 | ||
Cash Flows From Financing Activities: | ' | ' | ||
Net intercompany loan borrowings (repayments) | -15 | 10 | ||
Increase in equity from parent | -9 | ' | ||
Other | ' | 0 | ||
Net cash used in financing activities | -24 | 10 | ||
Net cash provided by discontinued financing activities | ' | 0 | ||
Effect of currency translation on cash | ' | 0 | ||
Cash and cash equivalents at end of period | ' | $0 | ||
[1] | (1)B Net revenue by operating segment excludes intercompany transactions. |
Tyco_International_Finance_SA_2
Tyco International Finance S.A. (Details 2) (USD $) | Dec. 27, 2013 | Sep. 27, 2013 | Dec. 28, 2012 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $479 | $563 | $501 | $844 |
Accounts receivable, net | 1,725 | 1,738 | ' | ' |
Inventories | 685 | 655 | ' | ' |
Prepaid expenses and other current assets | 864 | 857 | ' | ' |
Deferred income taxes | 254 | 254 | ' | ' |
Total Current Assets | 4,007 | 4,067 | ' | ' |
Property, plant and equipment, net | 1,678 | 1,677 | ' | ' |
Goodwill | 4,528 | 4,519 | ' | 4,367 |
Intangible assets, net | 806 | 804 | ' | ' |
Other assets | 994 | 1,109 | ' | ' |
Total Assets | 12,013 | 12,176 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Loans payable and current maturities of long-term debt | 180 | 20 | ' | ' |
Accounts payable | 838 | 899 | ' | ' |
Accrued and other current liabilities | 1,777 | 1,910 | ' | ' |
Deferred revenue | 368 | 402 | ' | ' |
Total Current Liabilities | 3,163 | 3,231 | ' | ' |
Long-term debt | 1,443 | 1,443 | ' | ' |
Deferred revenue | 392 | 400 | ' | ' |
Other liabilities | 1,849 | 1,969 | ' | ' |
Total Liabilities | 6,847 | 7,043 | ' | ' |
Redeemable noncontrolling interest | 12 | 12 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Common shares | 208 | 208 | ' | ' |
Common shares held in treasury | -1,031 | -912 | ' | ' |
Other shareholders' equity | 5,953 | 5,802 | ' | ' |
Total Tyco Shareholders' Equity | 5,130 | 5,098 | ' | ' |
Nonredeemable noncontrolling interest | 24 | 23 | ' | ' |
Total Equity | 5,154 | 5,121 | 5,144 | 5,010 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 12,013 | 12,176 | ' | ' |
Tyco International Ltd. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Accounts receivable, net | ' | 0 | ' | ' |
Intercompany receivables | 23 | 22 | ' | ' |
Prepaid expenses and other current assets | 9 | 9 | ' | ' |
Total Current Assets | 32 | 31 | ' | ' |
Investment in subsidiaries | 12,855 | 12,826 | ' | ' |
Intercompany loans receivable | 0 | 0 | ' | ' |
Other assets | 70 | 68 | ' | ' |
Total Assets | 12,957 | 12,925 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | ' | 1 | ' | ' |
Accrued and other current liabilities | 323 | 353 | ' | ' |
Intercompany payables | 3,516 | 3,515 | ' | ' |
Total Current Liabilities | 3,839 | 3,869 | ' | ' |
Intercompany loans payable | 3,688 | 3,660 | ' | ' |
Other liabilities | 300 | 298 | ' | ' |
Total Liabilities | 7,827 | 7,827 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Common shares | 208 | 208 | ' | ' |
Other shareholders' equity | 4,922 | 4,890 | ' | ' |
Total Tyco Shareholders' Equity | 5,130 | 5,098 | ' | ' |
Total Equity | 5,130 | 5,098 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 12,957 | 12,925 | ' | ' |
Tyco International Finance S.A. | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Intercompany receivables | 2,114 | 2,079 | ' | ' |
Prepaid expenses and other current assets | 1 | ' | ' | ' |
Total Current Assets | 2,115 | 2,079 | ' | ' |
Investment in subsidiaries | 14,894 | 14,690 | ' | ' |
Intercompany loans receivable | 1,223 | 1,141 | ' | ' |
Other assets | 5 | 6 | ' | ' |
Total Assets | 18,237 | 17,916 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Loans payable and current maturities of long-term debt | 160 | ' | ' | ' |
Accrued and other current liabilities | 33 | 23 | ' | ' |
Intercompany payables | 3,810 | 3,845 | ' | ' |
Total Current Liabilities | 4,003 | 3,868 | ' | ' |
Long-term debt | 1,442 | 1,443 | ' | ' |
Intercompany loans payable | 1,860 | 1,852 | ' | ' |
Total Liabilities | 7,305 | 7,163 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Other shareholders' equity | 10,932 | 10,753 | ' | ' |
Total Tyco Shareholders' Equity | 10,932 | 10,753 | ' | ' |
Total Equity | 10,932 | 10,753 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 18,237 | 17,916 | ' | ' |
Other Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 479 | 563 | 501 | 844 |
Accounts receivable, net | 1,725 | 1,738 | ' | ' |
Inventories | 685 | 655 | ' | ' |
Intercompany receivables | 7,316 | 7,354 | ' | ' |
Prepaid expenses and other current assets | 854 | 848 | ' | ' |
Deferred income taxes | 254 | 254 | ' | ' |
Total Current Assets | 11,313 | 11,412 | ' | ' |
Property, plant and equipment, net | 1,678 | 1,677 | ' | ' |
Goodwill | 4,528 | 4,519 | ' | ' |
Intangible assets, net | 806 | 804 | ' | ' |
Intercompany loans receivable | 5,318 | 5,310 | ' | ' |
Other assets | 919 | 1,035 | ' | ' |
Total Assets | 24,562 | 24,757 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Loans payable and current maturities of long-term debt | 20 | 20 | ' | ' |
Accounts payable | 838 | 898 | ' | ' |
Accrued and other current liabilities | 1,421 | 1,534 | ' | ' |
Deferred revenue | 368 | 402 | ' | ' |
Intercompany payables | 2,127 | 2,095 | ' | ' |
Total Current Liabilities | 4,774 | 4,949 | ' | ' |
Long-term debt | 1 | 0 | ' | ' |
Intercompany loans payable | 993 | 939 | ' | ' |
Deferred revenue | 392 | 400 | ' | ' |
Other liabilities | 1,549 | 1,671 | ' | ' |
Total Liabilities | 7,709 | 7,959 | ' | ' |
Redeemable noncontrolling interest | 12 | 12 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Common shares held in treasury | -1,031 | -912 | ' | ' |
Other shareholders' equity | 17,848 | 17,675 | ' | ' |
Total Tyco Shareholders' Equity | 16,817 | 16,763 | ' | ' |
Nonredeemable noncontrolling interest | 24 | 23 | ' | ' |
Total Equity | 16,841 | 16,786 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 24,562 | 24,757 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | 0 | ' |
Intercompany receivables | -9,453 | -9,455 | ' | ' |
Total Current Assets | -9,453 | -9,455 | ' | ' |
Investment in subsidiaries | -27,749 | -27,516 | ' | ' |
Intercompany loans receivable | -6,541 | -6,451 | ' | ' |
Total Assets | -43,743 | -43,422 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Intercompany payables | -9,453 | -9,455 | ' | ' |
Total Current Liabilities | -9,453 | -9,455 | ' | ' |
Intercompany loans payable | -6,541 | -6,451 | ' | ' |
Total Liabilities | -15,994 | -15,906 | ' | ' |
Tyco Shareholders' Equity: | ' | ' | ' | ' |
Other shareholders' equity | -27,749 | -27,516 | ' | ' |
Total Tyco Shareholders' Equity | -27,749 | -27,516 | ' | ' |
Total Equity | -27,749 | -27,516 | ' | ' |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | ($43,743) | ($43,422) | ' | ' |