Guarantor Financial Statements | Guarantor Financial Statements 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 SCA ("TIFSCA"), a wholly owned subsidiary of Tyco and parent company of TIFSA. 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 Quarter Ended June 24, 2016 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — $ — $ — $ 2,449 $ — $ 2,449 Cost of product sales — — — 1,026 — 1,026 Cost of services — — — 508 — 508 Selling, general and administrative expenses 1 — 1 665 — 667 Merger costs 2 — 1 4 — 7 Restructuring and asset impairment charges, net — — — 5 — 5 Operating (loss) income (3 ) — (2 ) 241 — 236 Interest income — — — 3 — 3 Interest expense — — (22 ) — — (22 ) Other income, net — — 54 — — 54 Equity in net income of subsidiaries 225 220 169 — (614 ) — Intercompany interest and fees 17 — 21 (38 ) — — Income from continuing operations before income taxes 239 220 220 206 (614 ) 271 Income tax expense — — — (31 ) — (31 ) Income from continuing operations 239 220 220 175 (614 ) 240 Loss from discontinued operations, net of income taxes — — — (2 ) — (2 ) Net income 239 220 220 173 (614 ) 238 Less: noncontrolling interest in subsidiaries net loss — — — (1 ) — (1 ) Net income attributable to Tyco ordinary shareholders $ 239 $ 220 $ 220 $ 174 $ (614 ) $ 239 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Quarter Ended June 24, 2016 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income $ 239 $ 220 $ 220 $ 173 $ (614 ) $ 238 Other comprehensive income (loss), net of tax Foreign currency translation 6 — (6 ) 12 (6 ) 6 Defined benefit and post retirement plans 5 — — 5 (5 ) 5 Unrealized gain on marketable securities and derivative instruments, net of tax 3 — — 3 (3 ) 3 Total other comprehensive income (loss), net of tax 14 — (6 ) 20 (14 ) 14 Comprehensive income 253 220 214 193 (628 ) 252 Less: comprehensive loss attributable to noncontrolling interests — — — (1 ) — (1 ) Comprehensive income attributable to Tyco ordinary shareholders $ 253 $ 220 $ 214 $ 194 $ (628 ) $ 253 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended June 26, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — $ — $ — $ 2,489 $ — $ 2,489 Cost of product sales — — — 1,025 — 1,025 Cost of services — — — 548 — 548 Selling, general and administrative expenses 1 — — 624 — 625 Restructuring and asset impairment charges, net — — — 38 — 38 Operating (loss) income (1 ) — — 254 — 253 Interest income — — — 4 — 4 Interest expense — — (25 ) (1 ) — (26 ) Other income, net — — 1 5 — 6 Equity in net income of subsidiaries 145 165 166 — (476 ) — Intercompany interest and fees 12 — 23 (35 ) — — Income from continuing operations before income taxes 156 165 165 227 (476 ) 237 Income tax expense — — — (49 ) — (49 ) Income from continuing operations 156 165 165 178 (476 ) 188 Loss from discontinued operations, net of income taxes — — — (32 ) — (32 ) Net income 156 165 165 146 (476 ) 156 Less: noncontrolling interest in subsidiaries net loss — — — — — — Net income attributable to Tyco ordinary shareholders $ 156 $ 165 $ 165 $ 146 $ (476 ) $ 156 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Quarter Ended June 26, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income $ 156 $ 165 $ 165 $ 146 $ (476 ) $ 156 Other comprehensive income (loss), net of tax Foreign currency translation 28 — (12 ) 40 (28 ) 28 Defined benefit and post retirement plans 4 — — 4 (4 ) 4 Unrealized loss on marketable securities and derivative instruments, net of tax (4 ) — — (4 ) 4 (4 ) Total other comprehensive income (loss), net of tax 28 — (12 ) 40 (28 ) 28 Comprehensive income 184 165 153 186 (504 ) 184 Less: comprehensive income attributable to noncontrolling interests — — — — — — Comprehensive income attributable to Tyco ordinary shareholders $ 184 $ 165 $ 153 $ 186 $ (504 ) $ 184 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Nine Months Ended June 24, 2016 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — $ — $ — $ 7,156 $ — $ 7,156 Cost of product sales — — — 2,956 — 2,956 Cost of services — — — 1,550 — 1,550 Selling, general and administrative expenses 5 — 2 1,835 — 1,842 Merger costs 2 — 11 20 — 33 Restructuring and asset impairment charges, net — — — 21 — 21 Operating (loss) income (7 ) — (13 ) 774 — 754 Interest income — — — 11 — 11 Interest expense — — (67 ) (1 ) — (68 ) Other (expense) income, net — — (112 ) 1 — (111 ) Equity in net income of subsidiaries 388 380 504 — (1,272 ) — Intercompany interest and fees 82 — 68 (150 ) — — Income from continuing operations before income taxes 463 380 380 635 (1,272 ) 586 Income tax expense (2 ) — — (128 ) — (130 ) Income from continuing operations 461 380 380 507 (1,272 ) 456 Income from discontinued operations, net of income taxes — — — 3 — 3 Net income 461 380 380 510 (1,272 ) 459 Less: noncontrolling interest in subsidiaries net loss — — — (2 ) — (2 ) Net income attributable to Tyco ordinary shareholders $ 461 $ 380 $ 380 $ 512 $ (1,272 ) $ 461 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Nine Months Ended June 24, 2016 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income $ 461 $ 380 $ 380 $ 510 $ (1,272 ) $ 459 Other comprehensive income (loss), net of tax Foreign currency translation 7 — (5 ) 12 (7 ) 7 Defined benefit and post retirement plans 13 — — 13 (13 ) 13 Unrealized gain on marketable securities and derivative instruments, net of tax 6 — — 6 (6 ) 6 Total other comprehensive income (loss), net of tax 26 — (5 ) 31 (26 ) 26 Comprehensive income 487 380 375 541 (1,298 ) 485 Less: comprehensive loss attributable to noncontrolling interests — — — (2 ) — (2 ) Comprehensive income attributable to Tyco ordinary shareholders $ 487 $ 380 $ 375 $ 543 $ (1,298 ) $ 487 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Nine Months Ended June 26, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net revenue $ — $ — $ — $ 7,397 $ — $ 7,397 Cost of product sales — — — 3,046 — 3,046 Cost of services — — — 1,645 — 1,645 Selling, general and administrative expenses 6 — 1 1,918 — 1,925 Restructuring and asset impairment charges, net — — — 108 — 108 Operating (loss) income (6 ) — (1 ) 680 — 673 Interest income — — — 11 — 11 Interest expense — — (73 ) (2 ) — (75 ) Other income, net — — 3 6 — 9 Equity in net income of subsidiaries 440 456 453 — (1,349 ) — Intercompany interest and fees 51 — 74 (125 ) — — Income from continuing operations before income taxes 485 456 456 570 (1,349 ) 618 Income tax expense — — — (86 ) — (86 ) Income from continuing operations 485 456 456 484 (1,349 ) 532 Loss from discontinued operations, net of income taxes — — — (50 ) — (50 ) Net income 485 456 456 434 (1,349 ) 482 Less: noncontrolling interest in subsidiaries net loss — — — (3 ) — (3 ) Net income attributable to Tyco ordinary shareholders $ 485 $ 456 $ 456 $ 437 $ (1,349 ) $ 485 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Nine Months Ended June 26, 2015 ($ in millions) Tyco International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income $ 485 $ 456 $ 456 $ 434 $ (1,349 ) $ 482 Other comprehensive (loss) income, net of tax Foreign currency translation (346 ) — 3 (349 ) 346 (346 ) Defined benefit and post retirement plans 13 — — 13 (13 ) 13 Unrealized loss on marketable securities and derivative instruments (4 ) — — (4 ) 4 (4 ) Total other comprehensive (loss) income, net of tax (337 ) — 3 (340 ) 337 (337 ) Comprehensive income 148 456 459 94 (1,012 ) 145 Less: comprehensive loss attributable to noncontrolling interests — — — (3 ) — (3 ) Comprehensive income attributable to Tyco ordinary shareholders $ 148 $ 456 $ 459 $ 97 $ (1,012 ) $ 148 CONDENSED CONSOLIDATING BALANCE SHEET As of June 24, 2016 ($ 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 $ — $ — $ — $ 345 $ — $ 345 Accounts receivable, net — — — 1,805 — 1,805 Inventories — — — 656 — 656 Intercompany receivables 10 — 553 7,750 (8,313 ) — Prepaid expenses and other current assets 1 — 56 826 — 883 Deferred income taxes — — — 62 — 62 Assets held for sale — — — 71 — 71 Total Current Assets 11 — 609 11,515 (8,313 ) 3,822 Property, plant and equipment, net — — — 1,180 — 1,180 Goodwill — — — 4,418 — 4,418 Intangible assets, net — — — 966 — 966 Investment in subsidiaries 11,339 11,581 16,569 — (39,489 ) — Intercompany loans receivable — — 13,987 16,166 (30,153 ) — Other assets — — 21 1,207 — 1,228 Total Assets $ 11,350 $ 11,581 $ 31,186 $ 35,452 $ (77,955 ) $ 11,614 Liabilities and Equity Current Liabilities: Loans payable and current maturities of long-term debt $ — $ — $ 341 $ — $ — $ 341 Accounts payable 1 — — 798 — 799 Accrued and other current liabilities 90 — 61 1,413 — 1,564 Deferred revenue — — — 378 — 378 Intercompany payables 3,736 — 4,023 554 (8,313 ) — Liabilities held for sale — — — 34 — 34 Total Current Liabilities 3,827 — 4,425 3,177 (8,313 ) 3,116 Long-term debt — — 2,164 1 — 2,165 Intercompany loans payable 3,172 — 12,994 13,987 (30,153 ) — Deferred revenue — — — 284 — 284 Other liabilities — — 22 1,641 — 1,663 Total Liabilities 6,999 — 19,605 19,090 (38,466 ) 7,228 Tyco Shareholders' Equity: Ordinary shares 4 — — — — 4 Ordinary shares held in treasury (15 ) — — — — (15 ) Other shareholders' equity 4,362 11,581 11,581 16,327 (39,489 ) 4,362 Total Tyco Shareholders' Equity 4,351 11,581 11,581 16,327 (39,489 ) 4,351 Nonredeemable noncontrolling interest — — — 35 — 35 Total Equity 4,351 11,581 11,581 16,362 (39,489 ) 4,386 Total Liabilities and Equity $ 11,350 $ 11,581 $ 31,186 $ 35,452 $ (77,955 ) $ 11,614 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 — — — 1,722 — 1,722 Inventories — — — 620 — 620 Intercompany receivables 15 — 332 6,508 (6,855 ) — Prepaid expenses and other current assets — — 63 687 — 750 Deferred income taxes — — — 62 — 62 Assets held for sale — — — 208 — 208 Total Current Assets 15 — 395 11,208 (6,855 ) 4,763 Property, plant and equipment, net — — — 1,166 — 1,166 Goodwill — — — 4,203 — 4,203 Intangible assets, net — — — 822 — 822 Investment in subsidiaries 10,885 11,140 15,993 — (38,018 ) — Intercompany loans receivable — — 2,942 5,066 (8,008 ) — Other assets 1 — 44 1,322 — 1,367 Total Assets $ 10,901 $ 11,140 $ 19,374 $ 23,787 $ (52,881 ) $ 12,321 Liabilities and Equity Current Liabilities: Loans payable and current maturities of long-term debt $ — $ — $ 967 $ 20 $ — $ 987 Accounts payable 1 — — 763 — 764 Accrued and other current liabilities 88 — 61 1,495 — 1,644 Deferred revenue — — — 379 — 379 Intercompany payables 3,616 — 2,892 347 (6,855 ) — Liabilities held for sale — — — 80 — 80 Total Current Liabilities 3,705 — 3,920 3,084 (6,855 ) 3,854 Long-term debt — — 2,158 1 — 2,159 Intercompany loans payable 3,155 — 1,911 2,942 (8,008 ) — Deferred revenue — — — 302 — 302 Other liabilities — — 245 1,685 — 1,930 Total Liabilities 6,860 — 8,234 8,014 (14,863 ) 8,245 Tyco Shareholders' Equity: Ordinary shares 4 — — — — 4 Ordinary shares held in treasury (3 ) — — — — (3 ) Other shareholders' equity 4,040 11,140 11,140 15,738 (38,018 ) 4,040 Total Tyco Shareholders' Equity 4,041 11,140 11,140 15,738 (38,018 ) 4,041 Nonredeemable noncontrolling interest — — — 35 — 35 Total Equity 4,041 11,140 11,140 15,773 (38,018 ) 4,076 Total Liabilities and Equity $ 10,901 $ 11,140 $ 19,374 $ 23,787 $ (52,881 ) $ 12,321 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 24, 2016 ($ 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 $ 216 $ — $ 775 $ (487 ) $ — $ 504 Net cash used in discontinued operating activities — — — (12 ) — (12 ) Cash Flows From Investing Activities: Capital expenditures — — — (209 ) — (209 ) Acquisition of businesses, net of cash acquired — — — (320 ) — (320 ) Acquisition of dealer generated customer accounts and bulk account purchases — — — (17 ) — (17 ) Divestiture of businesses, net of cash divested — — — 14 — 14 Net decrease in intercompany loans — — 37 — (37 ) — Increase in investment in subsidiaries — — (5 ) — 5 — Sales and maturities of investments including restricted investments — — 7 19 — 26 Purchases of investments including restricted investments — — — (8 ) — (8 ) Decrease in restricted cash — — — 3 — 3 Net cash provided by (used in) investing activities — — 39 (518 ) (32 ) (511 ) Net cash provided by discontinued investing activities — — — 4 — 4 Cash Flows From Financing Activities: Proceeds from issuance of short-term debt — — 4,179 — — 4,179 Repayment of short-term debt — — (3,838 ) — — (3,838 ) Repayment of current portion of long-term debt — — (1,134 ) — — (1,134 ) Proceeds from exercise of share options 57 — — — — 57 Dividends paid (261 ) — — — — (261 ) Net intercompany loan repayments — — — (37 ) 37 — Increase in equity from parent — — — 5 (5 ) — Transfer to discontinued operations — — — (8 ) — (8 ) Payment of contingent consideration — — — (1 ) — (1 ) Debt financing costs — — (21 ) (2 ) (23 ) Other (12 ) — — — — (12 ) Net cash used in financing activities (216 ) — (814 ) (43 ) 32 (1,041 ) Net cash provided by discontinued financing activities — — — 8 — 8 Effect of currency translation on cash — — — (8 ) — (8 ) Net decrease in cash and cash equivalents — — — (1,056 ) — (1,056 ) Cash and cash equivalents at beginning of period — — — 1,401 — 1,401 Cash and cash equivalents at end of period $ — $ — $ — $ 345 $ — $ 345 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended June 26, 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 $ 94 $ — $ (525 ) $ 942 $ — $ 511 Net cash used in discontinued operating activities — — — (1 ) — (1 ) Cash Flows From Investing Activities: Capital expenditures — — — (183 ) — (183 ) Acquisition of businesses, net of cash acquired — — — (525 ) — (525 ) Acquisition of dealer generated customer accounts and bulk account purchases — — — (13 ) — (13 ) Divestiture of businesses, net of cash divested — — — (1 ) — (1 ) Net increase in intercompany loans — — (41 ) — 41 — Sales and maturities of investments including restricted investments — — 4 279 — 283 Purchases of investments including restricted investments — — (1 ) (289 ) — (290 ) Increase in restricted cash — — — (27 ) — (27 ) Other — — — 4 — 4 Net cash used in investing activities — — (38 ) (755 ) 41 (752 ) Net cash used in discontinued investing activities — — — (37 ) — (37 ) Cash Flows From Financing Activities: Proceeds from issuance of short-term debt — — 258 — — 258 Repayment of short-term debt — — (258 ) (1 ) — (259 ) Proceeds from issuance of long-term debt — — 567 3 — 570 Proceeds from exercise of share options 63 — — 7 — 70 Dividends paid (237 ) — — — — (237 ) Repurchase of ordinary shares — — — (417 ) — (417 ) Net intercompany loan borrowings 83 — — (42 ) (41 ) — Transfer to discontinued operations — — — (38 ) — (38 ) Payment of contingent consideration — — — (23 ) — (23 ) Debt financing costs — — (5 ) — — (5 ) Other (3 ) — 1 (19 ) — (21 ) Net cash (used in) provided by financing activities (94 ) — 563 (530 ) (41 ) (102 ) Net cash provided by discontinued financing activities — — — 38 — 38 Effect of currency translation on cash — — — (18 ) — (18 ) Net decrease in cash and cash equivalents — — — (361 ) — (361 ) Cash and cash equivalents at beginning of period — — — 892 — 892 Cash and cash equivalents at end of period $ — $ — $ — $ 531 $ — $ 531 |