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 and by Tyco Fire & Security Finance S.C.A. ("TIFSCA"), a wholly owned subsidiary of Tyco and parent company TIFSA. See Note 9. The following tables present condensed consolidating financial information for Tyco, TIFSCA, TIFSA and all other subsidiaries. Condensed financial information for Tyco, TIFSCA and TIFSA on a stand-alone basis is presented using the equity method of accounting for subsidiaries. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended September 25, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — — $ — $ 9,902 $ — $ 9,902 Cost of product sales — — — 4,072 — 4,072 Cost of services — — — 2,198 — 2,198 Selling, general and administrative expenses 7 — 2 2,564 — 2,573 Restructuring and asset impairment charges, net — — — 175 — 175 Operating (loss) income (7 ) — (2 ) 893 — 884 Interest income — — — 15 — 15 Interest expense — — (100 ) (2 ) — (102 ) Other (expense) income, net — — (88 ) 6 — (82 ) Equity in net income of subsidiaries 557 591 674 — (1,822 ) — Intercompany interest and fees 3 — 106 (109 ) — — Income from continuing operations before income taxes 553 591 590 803 (1,822 ) 715 Income tax (benefit) expense (2 ) — 1 (99 ) — (100 ) Income from continuing operations 551 591 591 704 (1,822 ) 615 Loss from discontinued operations, net of income taxes — — — (66 ) — (66 ) Net income 551 591 591 638 (1,822 ) 549 Less: noncontrolling interest in subsidiaries net loss — — — (2 ) — (2 ) Net income attributable to Tyco ordinary shareholders $ 551 $ 591 $ 591 $ 640 $ (1,822 ) $ 551 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended September 25, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income $ 551 $ 591 $ 591 $ 638 $ (1,822 ) $ 549 Other comprehensive (loss) income, net of tax Foreign currency translation (540 ) — 3 (543 ) 540 (540 ) Defined benefit and post retirement plans (67 ) — — (67 ) 67 (67 ) Unrealized loss on marketable securities and derivative instruments (9 ) — — (9 ) 9 (9 ) Total other comprehensive (loss) income, net of tax (616 ) — 3 (619 ) 616 (616 ) Comprehensive (loss) income (65 ) 591 594 19 (1,206 ) (67 ) Less: comprehensive loss attributable to noncontrolling interests — — — (2 ) — (2 ) Comprehensive (loss) income attributable to Tyco ordinary shareholders $ (65 ) $ 591 $ 594 $ 21 $ (1,206 ) $ (65 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended September 26, 2014 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — $ — $ 10,332 $ — $ 10,332 Cost of product sales — — 4,250 — 4,250 Cost of services — — 2,297 — 2,297 Selling, general and administrative expenses (7 ) 4 3,040 — 3,037 Separation costs — — 1 — 1 Restructuring and asset impairment charges, net — — 47 — 47 Operating income (loss) 7 (4 ) 697 — 700 Interest income — — 14 — 14 Interest expense — (95 ) (2 ) — (97 ) Other (expense) income, net (6 ) — 5 — (1 ) Equity in net income of subsidiaries 1,866 1,881 — (3,747 ) — Intercompany interest and fees (28 ) 105 (72 ) (5 ) — Income from continuing operations before income taxes 1,839 1,887 642 (3,752 ) 616 Income tax expense (benefit) 1 (1 ) (24 ) — (24 ) Equity gain in earnings of unconsolidated subsidiaries 206 — 206 Income from continuing operations 1,840 1,886 824 (3,752 ) 798 (Loss) Income from discontinued operations, net of income taxes (2 ) — 1,038 5 1,041 Net income 1,838 1,886 1,862 (3,747 ) 1,839 Less: noncontrolling interest in subsidiaries net income — — 1 — 1 Net income attributable to Tyco ordinary shareholders $ 1,838 $ 1,886 $ 1,861 $ (3,747 ) $ 1,838 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended September 26, 2014 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income $ 1,838 $ 1,886 $ 1,862 $ (3,747 ) $ 1,839 Other comprehensive loss, net of tax Foreign currency translation (174 ) — (174 ) 174 (174 ) Defined benefit and post retirement plans (64 ) — (64 ) 64 (64 ) Total other comprehensive loss, net of tax (238 ) — (238 ) 238 (238 ) Comprehensive income 1,600 1,886 1,624 (3,509 ) 1,601 Less: comprehensive income attributable to noncontrolling interests — — 1 — 1 Comprehensive income attributable to Tyco ordinary shareholders $ 1,600 $ 1,886 $ 1,623 $ (3,509 ) $ 1,600 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended September 27, 2013 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — $ — $ 10,058 $ — $ 10,058 Cost of product sales — — 3,985 — 3,985 Cost of services — — 2,404 — 2,404 Selling, general and administrative expenses 11 1 2,826 — 2,838 Separation costs 3 — 5 — 8 Restructuring and asset impairment charges, net — — 111 — 111 Operating (loss) income (14 ) (1 ) 727 — 712 Interest income 2 — 14 — 16 Interest expense (1 ) (95 ) (4 ) — (100 ) Other (expense) income, net (31 ) — 2 — (29 ) Equity in net (loss) income of subsidiaries (12,666 ) 2,563 — 10,103 — Intercompany interest and fees 13,248 122 (13,362 ) (8 ) — Income (loss) from continuing operations before income taxes 538 2,589 (12,623 ) 10,095 599 Income tax expense (2 ) (2 ) (104 ) — (108 ) Equity loss in earnings of unconsolidated subsidiaries — — (48 ) — (48 ) Income (loss) from continuing operations 536 2,587 (12,775 ) 10,095 443 Income from discontinued operations, net of income taxes — — 82 8 90 Net income (loss) 536 2,587 (12,693 ) 10,103 533 Less: noncontrolling interest in subsidiaries net loss — — (3 ) — (3 ) Net income (loss) attributable to Tyco ordinary shareholders $ 536 $ 2,587 $ (12,690 ) $ 10,103 $ 536 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended September 27, 2013 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income (loss) $ 536 $ 2,587 $ (12,693 ) $ 10,103 $ 533 Other comprehensive income (loss), net of tax Foreign currency translation (100 ) — (100 ) 100 (100 ) Defined benefit and post retirement plans 79 — 79 (79 ) 79 Total other comprehensive loss, net of tax (21 ) — (21 ) 21 (21 ) Comprehensive income (loss) 515 2,587 (12,714 ) 10,124 512 Less: comprehensive loss attributable to noncontrolling interests — — (3 ) — (3 ) Comprehensive income (loss) attributable to Tyco ordinary shareholders $ 515 $ 2,587 $ (12,711 ) $ 10,124 $ 515 CONDENSED CONSOLIDATING BALANCE SHEET As of September 25, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Assets Current Assets: Cash and cash equivalents $ — $ — $ — $ 1,401 $ — $ 1,401 Accounts receivable, net — — — 1,775 — 1,775 Inventories — — — 627 — 627 Intercompany receivables 15 — 332 6,508 (6,855 ) — Prepaid expenses and other current assets — — 63 713 — 776 Deferred income taxes — — — 62 — 62 Assets held for sale — — — 12 — 12 Total current assets 15 — 395 11,098 (6,855 ) 4,653 Property, plant and equipment, net — — — 1,189 — 1,189 Goodwill — — — 4,236 — 4,236 Intangible assets, net — — — 871 — 871 Investment in subsidiaries 10,885 11,148 16,001 — (38,034 ) — Intercompany loans receivable — — 2,942 5,066 (8,008 ) — Other assets 1 — 44 1,327 — 1,372 Total Assets $ 10,901 $ 11,148 $ 19,382 $ 23,787 $ (52,897 ) $ 12,321 Liabilities and Equity Current Liabilities: Loans payable and current maturities of long-term debt $ — $ — $ 967 $ 20 $ — $ 987 Accounts payable 1 — — 784 — 785 Accrued and other current liabilities 88 — 61 1,537 — 1,686 Deferred revenue — — — 382 — 382 Intercompany payables 3,616 — 2,892 347 (6,855 ) — Liabilities held for sale — — — 5 — 5 Total current liabilities 3,705 — 3,920 3,075 (6,855 ) 3,845 Long-term debt — — 2,158 1 — 2,159 Intercompany loans payable 3,155 — 1,911 2,942 (8,008 ) — Deferred revenue — — — 303 — 303 Other liabilities — — 245 1,693 — 1,938 Total Liabilities 6,860 — 8,234 8,014 (14,863 ) 8,245 Tyco Shareholders' Equity: Ordinary shares 4 — — — — 4 Other shareholders' equity 4,037 11,148 11,148 15,738 (38,034 ) 4,037 Total Tyco Shareholders' Equity 4,041 11,148 11,148 15,738 (38,034 ) 4,041 Nonredeemable noncontrolling interest — — — 35 — 35 Total Equity 4,041 11,148 11,148 15,773 (38,034 ) 4,076 Total Liabilities, Redeemable Noncontrolling Interest and Equity $ 10,901 $ 11,148 $ 19,382 $ 23,787 $ (52,897 ) $ 12,321 CONDENSED CONSOLIDATING BALANCE SHEET As of September 26, 2014 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Assets Current Assets: Cash and cash equivalents $ — $ — $ 892 $ — $ 892 Accounts receivable, net — — 1,734 — 1,734 Inventories — — 625 — 625 Intercompany receivables 18 245 8,102 (8,365 ) — Prepaid expenses and other current assets 7 62 982 — 1,051 Deferred income taxes — — 304 — 304 Assets held for sale — — 180 — 180 Total current assets 25 307 12,819 (8,365 ) 4,786 Property, plant and equipment, net — — 1,262 — 1,262 Goodwill — — 4,122 — 4,122 Intangible assets, net — — 712 — 712 Investment in subsidiaries 12,738 16,202 — (28,940 ) — Intercompany loans receivable — 3,693 5,346 (9,039 ) — Other assets 26 4 897 — 927 Total Assets $ 12,789 $ 20,206 $ 25,158 $ (46,344 ) $ 11,809 Liabilities and Equity Current Liabilities: Loans payable and current maturities of long-term debt $ — $ — $ 20 $ — $ 20 Accounts payable 1 — 824 — 825 Accrued and other current liabilities 191 23 1,900 — 2,114 Deferred revenue — — 400 — 400 Intercompany payables 3,517 4,593 255 (8,365 ) — Liabilities held for sale — — 118 — 118 Total current liabilities 3,709 4,616 3,517 (8,365 ) 3,477 Long-term debt — 1,441 2 — 1,443 Intercompany loans payable 4,180 1,888 2,971 (9,039 ) — Deferred revenue — — 335 — 335 Other liabilities 253 — 1,618 — 1,871 Total Liabilities 8,142 7,945 8,443 (17,404 ) 7,126 Redeemable noncontrolling interest — — 13 — 13 Tyco Shareholders' Equity: Ordinary shares 208 — — — 208 Ordinary shares held in treasury — — (2,515 ) — (2,515 ) Other shareholders' equity 4,439 12,261 19,194 (28,940 ) 6,954 Total Tyco Shareholders' Equity 4,647 12,261 16,679 (28,940 ) 4,647 Nonredeemable noncontrolling interest — — 23 — 23 Total Equity 4,647 12,261 16,702 (28,940 ) 4,670 Total Liabilities, Redeemable Noncontrolling Interest and Equity $ 12,789 $ 20,206 $ 25,158 $ (46,344 ) $ 11,809 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 25, 2015 ($ in millions) Tyco International Plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Cash Flows From Operating Activities: Net cash provided by (used in) operating activities $ 159 $ — $ (1,568 ) $ 1,951 $ — $ 542 Net cash used in discontinued operating activities — — — (3 ) — (3 ) Cash Flows From Investing Activities: Capital expenditures — — — (246 ) — (246 ) Proceeds from disposal of assets — — — 5 — 5 Acquisition of businesses, net of cash acquired — — — (583 ) — (583 ) Acquisition of dealer generated customer accounts and bulk account purchases — — — (18 ) — (18 ) Divestiture of businesses, net of cash divested — — — 3 — 3 Net increase in intercompany loans — — (41 ) — 41 — Increase in investment in subsidiaries — — (3 ) — 3 — Sales and maturities of investments — — 4 284 — 288 Purchases of investments — — (1 ) (289 ) — (290 ) Increase in restricted cash — — — (20 ) — (20 ) Other — — — (1 ) — (1 ) Net cash used in investing activities — — (41 ) (865 ) 44 (862 ) Net cash used in discontinued investing activities — — — (37 ) — (37 ) Cash Flows From Financing Activities: Proceeds from issuance of short-term debt — — 363 1 — 364 Repayments of short-term debt — — (363 ) (1 ) — (364 ) Proceeds from issuance of long-term debt — — 2,058 1 2,059 Repayment of long-term debt — (445 ) — — (445 ) Proceeds from exercise of share options 85 — — 7 — 92 Dividends paid (324 ) — — — — (324 ) Repurchase of ordinary shares by treasury — — — (417 ) — (417 ) Net intercompany loan borrowings (repayments) 83 — — (42 ) (41 ) — Increase in equity from parent — — — 3 (3 ) — Transfer to discontinued operations — — — (40 ) — (40 ) Payment of contingent consideration — — — (24 ) (24 ) Other (3 ) — (4 ) (32 ) — (39 ) Net cash (used in) provided by financing activities (159 ) — 1,609 (544 ) (44 ) 862 Net cash provided by discontinued financing activities — — — 40 — 40 Effect of currency translation on cash — — — (33 ) — (33 ) Net increase in cash and cash equivalents — — — 509 — 509 Cash and cash equivalents at beginning of period — — — 892 — 892 Cash and cash equivalents at end of period $ — $ — $ — $ 1,401 $ — $ 1,401 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 26, 2014 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Cash Flows From Operating Activities: Net cash (used in) provided by operating activities $ (205 ) $ 592 $ 442 $ — $ 829 Net cash provided by discontinued operating activities — — 83 — 83 Cash Flows From Investing Activities: Capital expenditures — — (288 ) — (288 ) Proceeds from disposal of assets — — 10 — 10 Acquisition of businesses, net of cash acquired — — (65 ) — (65 ) Acquisition of dealer generated customer accounts and bulk account purchases — — (25 ) — (25 ) Divestiture of businesses, net of cash divested — — 1 — 1 Net increase in intercompany loans — (521 ) — 521 — Increase (decrease) in investment in subsidiaries (4 ) (9 ) 4 9 — Sales and maturities of investments — — 283 — 283 Purchases of investments — (62 ) (324 ) — (386 ) Sale of equity investment — — 250 — 250 Decrease in restricted cash — — 3 — 3 Other — — (4 ) — (4 ) Net cash used in investing activities (4 ) (592 ) (155 ) 530 (221 ) Net cash provided by discontinued investing activities — — 1,789 — 1,789 Cash Flows From Financing Activities: Proceeds from issuance of short term debt — 830 — — 830 Repayment of short term debt — (830 ) (1 ) — (831 ) Proceeds from exercise of share options — — 91 — 91 Dividends paid (311 ) — — — (311 ) Repurchase of ordinary shares by treasury — — (1,833 ) — (1,833 ) Net intercompany loan borrowings 520 — 1 (521 ) — Increase in equity from parent — — 9 (9 ) — Purchase of noncontrolling interest — — (66 ) — (66 ) Transfer from discontinued operations — — 1,872 — 1,872 Other — — (11 ) — (11 ) Net cash provided by (used in) financing activities 209 — 62 (530 ) (259 ) Net cash used in discontinued financing activities — — (1,872 ) — (1,872 ) Effect of currency translation on cash — — (20 ) — (20 ) Net increase in cash and cash equivalents — — 329 — 329 Cash and cash equivalents at beginning of period — — 563 — 563 Cash and cash equivalents at end of period $ — $ — $ 892 $ — $ 892 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended September 27, 2013 ($ in millions) Tyco International Ltd. Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Cash Flows From Operating Activities: Net cash (used in) provided by operating activities $ (251 ) $ 452 $ 500 $ — $ 701 Net cash provided by discontinued operating activities — — 149 — 149 Cash Flows From Investing Activities: Capital expenditures — — (269 ) — (269 ) Proceeds from disposal of assets — — 5 — 5 Acquisition of businesses, net of cash acquired — — (229 ) — (229 ) Acquisition of dealer generated customer accounts and bulk account purchases — — (19 ) — (19 ) Divestiture of businesses, net of cash divested — — 17 — 17 Intercompany dividend from subsidiary — 32 — (32 ) — Net increase in intercompany loans — (431 ) — 431 — Decrease in investment in subsidiaries — 8 — (8 ) — Sales and maturities of investments — — 182 — 182 Purchases of investments — — (227 ) — (227 ) Increase in restricted cash — — (8 ) — (8 ) Other — — 4 — 4 Net cash used in investing activities — (391 ) (544 ) 391 (544 ) Net cash used in discontinued investing activities — — (111 ) — (111 ) Cash Flows From Financing Activities: Proceeds from issuance of short term debt — 475 — — 475 Repayment of short term debt — (475 ) (30 ) — (505 ) Proceeds from exercise of share options — — 153 — 153 Dividends paid (288 ) — — — (288 ) Intercompany dividend to parent — — (32 ) 32 — Repurchase of ordinary shares by treasury — — (300 ) — (300 ) Net intercompany loan borrowings (repayments) 449 — (18 ) (431 ) — Decrease in equity from parent — — (8 ) 8 — Transfer from (to) discontinued operations 90 (61 ) 39 — 68 Other — — (30 ) — (30 ) Net cash provided by (used in) financing activities 251 (61 ) (226 ) (391 ) (427 ) Net cash used in discontinued financing activities — — (68 ) — (68 ) Effect of currency translation on cash — — (11 ) — (11 ) Net decrease in cash and cash equivalents — — (311 ) — (311 ) Less: net increase in cash and cash equivalents related to discontinued operations — — (30 ) — (30 ) Cash and cash equivalents at beginning of period — — 844 — 844 Cash and cash equivalents at end of period $ — $ — $ 563 $ — $ 563 |