Exhibit 99.1
Contacts: | News Media | Investor Relations |
| Paul Fitzhenry | Ed Arditte |
| 609-720-4261 | 609-720-4621 |
| | Antonella Franzen |
| | 609-720-4665 |
TYCO INTERNATIONAL REPORTS FOURTH QUARTER EARNINGS
FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS OF $0.61 PER
SHARE AND GAAP EARNINGS OF $0.44 PER SHARE
($ millions, except per-share amounts)
| | Q4 2009 | | Q4 2008 | | % Change | | FY 2009 | | FY 2008 | | % Change | |
| | | | | | | | | | | | | |
Revenue | | $ | 4,421 | | $ | 5,284 | | (16 | )% | $ | 17,237 | | $ | 20,199 | | (15 | )% |
Income (Loss) from Continuing Operations | | $ | 207 | | $ | 264 | | (22 | )% | $ | (1,833 | ) | $ | 1,095 | | — | |
Diluted EPS from Continuing Operations | | $ | 0.44 | | $ | 0.55 | | (20 | )% | $ | (3.87 | ) | $ | 2.25 | | — | |
Special Items | | $ | (0.17 | ) | $ | (0.26 | ) | | | $ | (6.23 | ) | $ | (0.81 | ) | | |
Income from Continuing Ops Before Special Items | | $ | 291 | | $ | 387 | | (25 | )% | $ | 1,122 | | $ | 1,493 | | (25 | )% |
Diluted EPS from Continuing Ops Before Special Items | | $ | 0.61 | | $ | 0.81 | | (25 | )% | $ | 2.36 | | $ | 3.06 | | (23 | )% |
SCHAFFHAUSEN, Switzerland — November 10, 2009 — Tyco International Ltd. (NYSE: TYC) today reported $0.44 in diluted earnings per share (EPS) from continuing operations for the fiscal fourth quarter of 2009 and diluted EPS from continuing operations before special items of $0.61 per share. Revenue in the quarter of $4.4 billion declined 16% versus the prior year with an organic revenue decline of 12%. Cash from operating activities was $985 million in the quarter. The company had free cash flow of $614 million, which included cash payments of $84 million for restructuring and legacy legal matters.
For the full year, revenue of $17.2 billion declined 15%. Organic revenue declined 8%, with half of the decline coming from the Electrical and Metal Products business. Cash from operating
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activities was $2.43 billion. Free cash flow of $1.22 billion included cash payments of $261 million for restructuring and legacy legal matters.
“Our operating results for the fourth quarter reflect good progress in reducing our overall cost structure while we continue to invest in the future growth of our businesses,” said Ed Breen, Tyco Chairman and Chief Executive Officer. “We generated strong cash flow in the quarter, effectively managed our working capital and we finished the year in strong financial condition.”
Organic revenue, free cash flow, operating income before special items, operating margin before special items and income and diluted EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as Fourth Quarter Review slides can be found at www.tyco.com on the Investor Relations portion of Tyco’s website. Certain tables in this press release contain the symbol “-”, where the percent change is not meaningful.
SEGMENT RESULTS
The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. Beginning in the first quarter of fiscal 2009, certain businesses within the ADT Worldwide and Fire Protection Services segments were realigned resulting in changes to historical segment performance. The revenue and operating income results shown below have been adjusted to reflect these changes. All dollar amounts are pre-tax and stated in millions. All comparisons are to the fiscal fourth quarter or full year of 2008 unless otherwise indicated.
ADT Worldwide
| | Q4 2009 | | Q4 2008 | | % Change | | FY2009 | | FY2008 | | % Change | |
| | | | | | | | | | | | | |
Revenue | | $ | 1,799 | | $ | 1,981 | | (9 | )% | $ | 7,015 | | $ | 7,731 | | (9 | )% |
Operating Income | | $ | 226 | | $ | 203 | | 11 | % | $ | 233 | | $ | 906 | | — | |
Operating Margin | | 12.6 | % | 10.2 | % | | | — | | 11.7 | % | | |
Special Items | | $ | (31 | ) | $ | (48 | ) | | | $ | (722 | ) | $ | (94 | ) | | |
Operating Income Before Special Items | | $ | 257 | | $ | 251 | | 2 | % | $ | 955 | | $ | 1,000 | | (5 | )% |
Operating Margin Before Special Items | | 14.3 | % | 12.7 | % | | | 13.6 | % | 12.9 | % | | |
Revenue of $1.8 billion declined 9% in the quarter with an organic revenue decline of 5% and a 4% decline due to changes in foreign currency. ADT’s recurring revenue grew 4% organically on a global basis. Systems installation and service revenue declined 14% organically, mostly
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due to weakness in North America and Europe, as a result of continuing lower sales to commercial customers, including the retailer end market.
Operating income was $226 million in the quarter and the operating margin was 12.6%. Special items of $31 million resulted primarily from restructuring activities. Operating income before special items of $257 million increased $6 million despite a $7 million negative impact from foreign currency. The operating margin before special items improved 160 basis points to 14.3%, as cost-containment initiatives, restructuring activities and growth in ADT’s higher-margin recurring revenue business more than offset volume declines.
Full year revenue of $7.0 billion decreased 9% with an organic revenue decline of 4%. Operating income was $233 million and included $722 million of special items. Operating income before special items of $955 million decreased $45 million driven by a negative foreign currency impact of $56 million. The operating margin before special items improved 70 basis points to 13.6%.
Flow Control
| | Q4 2009 | | Q4 2008 | | % Change | | FY2009 | | FY2008 | | % Change | |
| | | | | | | | | | | | | |
Revenue | | $ | 1,010 | | $ | 1,188 | | (15 | )% | $ | 3,850 | | $ | 4,418 | | (13 | )% |
Operating Income | | $ | 126 | | $ | 152 | | (17 | )% | $ | 518 | | $ | 618 | | (16 | )% |
Operating Margin | | 12.5 | % | 12.8 | % | | | 13.5 | % | 14.0 | % | | |
Special Items | | $ | (15 | ) | $ | (9 | ) | | | $ | (34 | ) | $ | (14 | ) | | |
Operating Income Before Special Items | | $ | 141 | | $ | 161 | | (12 | )% | $ | 552 | | $ | 632 | | (13 | )% |
Operating Margin Before Special Items | | 14.0 | % | 13.6 | % | | | 14.3 | % | 14.3 | % | | |
Revenue of $1.0 billion declined 15% in the quarter with an organic revenue decline of 10%. Organic revenue declined 7% in the Valves business, 17% in Water and 12% in Thermal Controls. Backlog of $1.7 billion increased 4% on a quarter sequential basis (a 1% decline excluding the impact of foreign currency).
Operating income was $126 million in the quarter and the operating margin was 12.5%. Special items of $15 million resulted from restructuring activities. The operating income before special items of $141 million included a $9 million negative foreign currency impact. The operating margin before special items improved 40 basis points to 14.0% as cost-containment actions and restructuring activities more than offset the impact of volume declines.
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Full year revenue of $3.85 billion decreased 13% primarily due to changes in foreign currency with an organic revenue decline of 3%. Operating income was $518 million and the operating margin was 13.5%. Operating income before special items of $552 decreased $80 million driven primarily by a $76 million negative foreign currency impact. The operating margin before special items remained flat with 2008 at 14.3%.
Fire Protection Services
| | Q4 2009 | | Q4 2008 | | % Change | | FY2009 | | FY2008 | | % Change | |
| | | | | | | | | | | | | |
Revenue | | $ | 904 | | $ | 1,015 | | (11 | )% | $ | 3,428 | | $ | 3,839 | | (11 | )% |
Operating Income | | $ | 65 | | $ | 71 | | (8 | )% | $ | 68 | | $ | 325 | | — | |
Operating Margin | | 7.2 | % | 7.0 | % | | | — | | 8.5 | % | | |
Special Items | | $ | (31 | ) | $ | (30 | ) | | | $ | (225 | ) | $ | (34 | ) | | |
Operating Income Before Special Items | | $ | 96 | | $ | 101 | | (5 | )% | $ | 293 | | $ | 359 | | (18 | )% |
Operating Margin Before Special Items | | 10.6 | % | 10.0 | % | | | 8.5 | % | 9.4 | % | | |
Revenue of $904 million declined 11% in the quarter with an organic revenue decline of 7%. Service revenue declined 5% organically and installation revenue declined 8% driven by continued softness in the North American and EMEA regions. Backlog of $1.2 billion decreased 5% on a quarter sequential basis (a 7% decline excluding the impact of foreign currency).
Operating income was $65 million in the quarter and the operating margin was 7.2%. Special items of $31 million resulted from restructuring activities. Operating income before special items was $96 million and the operating margin before special items improved 60 basis points to 10.6% as cost-containment actions more than offset the decline in revenue.
Full year revenue of $3.4 billion decreased 11% primarily due to changes in foreign currency with an organic revenue decline of 3%. Operating income was $68 million and included $225 million of special items. Operating income before special items of $293 million decreased $66 million primarily due to lower volume and a $12 million negative foreign currency impact.
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Electrical and Metal Products
| | Q4 2009 | | Q4 2008 | | % Change | | FY2009 | | FY2008 | | % Change | |
| | | | | | | | | | | | | |
Revenue | | $ | 326 | | $ | 591 | | (45 | )% | $ | 1,392 | | $ | 2,272 | | (39 | )% |
Operating Income | | $ | 12 | | $ | 88 | | (86 | )% | $ | (940 | ) | $ | 342 | | — | |
Operating Margin | | 3.7 | % | 14.9 | % | | | — | | 15.1 | % | | |
Special Items | | $ | (9 | ) | $ | (31 | ) | | | $ | (957 | ) | $ | (43 | ) | | |
Operating Income Before Special Items | | $ | 21 | | $ | 119 | | (82 | )% | $ | 17 | | $ | 385 | | (96 | )% |
Operating Margin Before Special Items | | 6.4 | % | 20.1 | % | | | 1.2 | % | 16.9 | % | | |
Revenue of $326 million declined 45% in the quarter with an organic revenue decline of 41%. The decline was primarily due to lower selling prices for both steel and copper products.
Operating income was $12 million in the quarter and included $9 million of special items for restructuring activities. Operating income before special items of $21 million decreased $98 million, primarily due to lower spreads for both steel and copper products. The operating margin before special items was 6.4%.
Full year revenue of $1.4 billion decreased 39% with an organic revenue decline of 35%. Electrical and Metal Products incurred an operating loss of $940 million which included special items of $957 million. Operating income excluding special items was $17 million.
Safety Products
| | Q4 2009 | | Q4 2008 | | % Change | | FY2009 | | FY2008 | | % Change | |
| | | | | | | | | | | | | |
Revenue | | $ | 382 | | $ | 507 | | (25 | )% | $ | 1,552 | | $ | 1,934 | | (20 | )% |
Operating Income | | $ | 46 | | $ | 65 | | (29 | )% | $ | (789 | ) | $ | 284 | | — | |
Operating Margin | | 12.0 | % | 12.8 | % | | | — | | 14.7 | % | | |
Special Items | | $ | (14 | ) | $ | (34 | ) | | | $ | (1,018 | ) | $ | (73 | ) | | |
Operating Income Before Special Items | | $ | 60 | | $ | 99 | | (39 | )% | $ | 229 | | $ | 357 | | (36 | )% |
Operating Margin Before Special Items | | 15.7 | % | 19.5 | % | | | 14.8 | % | 18.5 | % | | |
Revenue of $382 million declined 25% in the quarter. Organic revenue declined 22% due to lower volume across the Fire Suppression, Electronic Security and Life Safety businesses resulting from weaker demand in end markets.
Operating income was $46 million in the quarter and the operating margin was 12.0%. Special items of $14 million resulted from restructuring activities. Operating income before special items was $60 million and the operating margin before special items decreased 3.8 percentage points
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to 15.7% as cost-containment actions and restructuring activities were more than offset by significant volume declines.
Full year revenue of $1.6 billion decreased 20% with an organic revenue decline of 14%. Safety Products incurred an operating loss of $789 million, which included $1.0 billion of special items. Operating income before special items of $229 million includes a $19 million negative foreign currency impact.
OTHER ITEMS
· Corporate expense was $160 million for the quarter and included special items of $11 million. For the full year, corporate expense was $577 million and included special items of $130 million resulting in corporate expense before special items of $447 million.
· The company incurred pre-tax charges of $96 million in the quarter and $253 million for the full year related to restructuring activities.
· Other expense in the quarter of $19 million primarily results from the reduction of tax liabilities for periods prior to Tyco’s separation into three companies. These tax liabilities are governed by the Tax Sharing Agreement between Tyco International, Covidien and Tyco Electronics. The reduction in tax liabilities lowered Tyco’s tax rate in the quarter and was partially offset by an $18 million reduction in the amounts due from the other two companies, which is also reflected in other expense.
· The tax rate for the quarter was 9.9%. The tax rate before special items was 14.6% for the quarter and 15.7% for the full year.
ABOUT TYCO INTERNATIONAL
Tyco International Ltd. (NYSE: TYC) is a diversified, global company that provides vital products and services to customers around the world. Tyco is a leading provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products. Tyco had 2009 revenue of more than $17 billion and has more than 100,000 employees worldwide. More information on Tyco can be found at www.tyco.com.
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CONFERENCE CALL AND WEBCAST
Management will discuss the company’s fourth quarter results and outlook for fiscal 2010 during a conference call and webcast today beginning at 8:30 a.m. EDT. Today’s conference call for investors can be accessed in the following ways:
· At Tyco’s website: http://investors.tyco.com.
· By telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the telephone dial-in number in the United States is (888) 455-5685. The telephone dial-in number for participants outside the United States is (773) 799-3896. The participant code is TYCO.
· An audio replay of the conference call will be available beginning at 11:00 a.m. on November 10, 2009 and ending on November 17, 2009. The dial-in number for participants in the United States is (866) 346-2432. For participants outside the United States, the replay dial-in number is (203) 369-0008.
NON-GAAP MEASURES
“Organic revenue,” “free cash flow (outflow)” (FCF), “income from continuing operations before special items”, “earnings per share (EPS) from continuing operations before special items”, “operating income before special items” and “operating margin before special items” are non-GAAP measures and should not be considered replacements for GAAP results.
Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures, and other changes that do not reflect the underlying results and trends (for example, revenue reclassifications and changes to the fiscal year). Organic revenue is a useful measure of the company’s performance because it excludes items that: i) are not completely under management’s control, such as the impact of foreign currency exchange; or ii) do not reflect the underlying results of the company’s existing businesses, such as acquisitions and divestitures. It may be used as a component of the company’s compensation programs. The limitation of this measure is that it excludes items that have an impact on the company’s revenue. This limitation is best addressed by using organic revenue in combination with the GAAP numbers. See the accompanying tables to this press release for the reconciliation presenting the components of organic revenue.
FCF is a useful measure of the company’s cash which is free from any significant existing obligation. The difference between Cash Flows from Operating Activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash outflows that the company believes are useful to identify. FCF permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation. It, or a measure that is based on it, may be used as a component in the company’s incentive compensation plans. The difference reflects the impact from:
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· net capital expenditures,
· accounts purchased from the ADT dealer network,
· cash paid for purchase accounting and holdback liabilities,
· voluntary pension contributions, and
· the sale of accounts receivable programs.
Capital expenditures and the ADT dealer program are subtracted because they represent long-term commitments. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate uses. Voluntary pension contributions and the impact from the sale of accounts receivable programs are added or subtracted because this activity is driven by economic financing decisions rather than operating activity.
The limitation associated with using FCF is that it subtracts cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and therefore may imply that there is less or more cash that is available for the company’s programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow numbers.
FCF as presented herein may not be comparable to similarly titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company’s financial statements as filed with the Securities and Exchange Commission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company’s total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF.
The company has presented its income and EPS from continuing operations before special items and operating income and margin before special items. Special Items include charges and gains related to divestitures, acquisitions, restructurings, impairments, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends of the company or business segment, as applicable. The company utilizes income and EPS from continuing operations before special items and operating income and margin before special items to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. They may be used as components in the company’s incentive compensation plans. Operating income, operating margin, and income and EPS from continuing operations before special items are useful measures for investors because they permit more meaningful comparisons of the company’s underlying operating results and business trends between periods. The difference between income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of charges and gains related to divestitures, acquisitions, restructurings, impairments, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends. Operating income and margin before special items do not reflect any additional adjustments that are not reflected in income from continuing operations before special items. The limitation of these measures is that they exclude the impact (which may be material) of items that increase or decrease the company’s reported operating income and margin and operating income and EPS from continuing operations. This limitation is best addressed by
8
using the non-GAAP measures in combination with the most comparable GAAP measures in order to better understand the amounts, character and impact of any increase or decrease on reported results. Tyco provides general corporate services to its segments and those costs are reported in the “Corporate and Other” segment. This segment’s operating income (loss) is presented as “Corporate Expense.”
FORWARD-LOOKING STATEMENTS
This release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein and in accompanying conference calls or webcasts that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. The forward-looking statements in this release and accompanying conference calls generally include, but are not limited to, statements addressing Tyco’s future financial condition and operating results, as well as its portfolio refinement activities. Economic, business, competitive and/or regulatory factors affecting Tyco’s businesses are examples of factors, among others, that could cause actual results to differ materially from those described in the forward-looking statements. Tyco is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about these and other factors is set forth in Tyco’s Annual Report on Form 10-K for the fiscal year ended Sept. 26, 2008 and in the interim reports filed on Form 10-Q for subsequent quarterly periods.
# # #
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TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
(Unaudited)
| | Quarter Ended | | Twelve Months Ended | |
| | September 25, | | September 26, | | September 25, | | September 26, | |
| | 2009 | | 2008 | | 2009 | | 2008 | |
Net revenue | | $ | 4,421 | | $ | 5,284 | | $ | 17,237 | | $ | 20,199 | |
Cost of sales | | 2,814 | | 3,417 | | 11,143 | | 13,123 | |
Selling, general and administrative expenses | | 1,193 | | 1,301 | | 4,657 | | 4,906 | |
Class action settlement, net | | — | | (3 | ) | — | | (10 | ) |
Separation costs | | — | | — | | — | | 4 | |
Goodwill and intangible asset impairments | | — | | 9 | | 2,705 | | 10 | |
Restructuring, asset impairment and divestiture charges, net | | 99 | | 131 | | 219 | | 225 | |
Operating income (loss) | | $ | 315 | | $ | 429 | | $ | (1,487 | ) | $ | 1,941 | |
Interest income | | 12 | | 11 | | 44 | | 110 | |
Interest expense | | (76 | ) | (73 | ) | (301 | ) | (396 | ) |
Other expense, net | | (19 | ) | (19 | ) | (7 | ) | (224 | ) |
Income (loss) from continuing operations before income taxes and minority interest | | 232 | | 348 | | (1,751 | ) | 1,431 | |
Income tax expense | | (23 | ) | (86 | ) | (78 | ) | (335 | ) |
Minority interest (expense) income | | (2 | ) | 2 | | (4 | ) | (1 | ) |
Income (loss) from continuing operations | | 207 | | 264 | | (1,833 | ) | 1,095 | |
(Loss) income from discontinued operations, net of income taxes | | (2 | ) | 170 | | 35 | | 458 | |
Net income (loss) | | $ | 205 | | $ | 434 | | $ | (1,798 | ) | $ | 1,553 | |
| | | | | | | | | |
Basic earnings per common share: | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.44 | | $ | 0.56 | | $ | (3.87 | ) | $ | 2.26 | |
(Loss) income from discontinued operations | | (0.01 | ) | 0.35 | | 0.07 | | 0.95 | |
Net income (loss) | | $ | 0.43 | | $ | 0.91 | | $ | (3.80 | ) | $ | 3.21 | |
Diluted earnings per common share: | | | | | | | | | |
Income (loss) from continuing operations | | $ | 0.44 | | $ | 0.55 | | $ | (3.87 | ) | $ | 2.25 | |
(Loss) income from discontinued operations | | (0.01 | ) | 0.36 | | 0.07 | | 0.94 | |
Net income (loss) | | $ | 0.43 | | $ | 0.91 | | $ | (3.80 | ) | $ | 3.19 | |
| | | | | | | | | |
Weighted-average number of shares outstanding: | | | | | | | | | |
Basic | | 474 | | 475 | | 473 | | 484 | |
Diluted | | 476 | | 478 | | 473 | | 488 | |
NOTE: | | These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 26, 2008 and Quarterly Report on Form 10-Q for the quarterly period ended June 26, 2009. |
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(in millions)
(Unaudited)
| | Quarter Ended | | | | Twelve Months Ended | | | |
| | September 25, | | | | September 26, | | | | September 25, | | | | September 26, | | | |
| | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | | | |
NET REVENUE | | | | | | | | | | | | | | | | | |
ADT Worldwide | | $ | 1,799 | | | | $ | 1,981 | | | | $ | 7,015 | | | | $ | 7,731 | | | |
Flow Control | | 1,010 | | | | 1,188 | | | | 3,850 | | | | 4,418 | | | |
Fire Protection Services | | 904 | | | | 1,015 | | | | 3,428 | | | | 3,839 | | | |
Electrical and Metal Products | | 326 | | | | 591 | | | | 1,392 | | | | 2,272 | | | |
Safety Products | | 382 | | | | 507 | | | | 1,552 | | | | 1,934 | | | |
Corporate and Other | | — | | | | 2 | | | | — | | | | 5 | | | |
Total Net Revenue | | $ | 4,421 | | | | $ | 5,284 | | | | $ | 17,237 | | | | $ | 20,199 | | | |
| | | | | | | | | | | | | | | | | |
OPERATING INCOME / (LOSS) AND MARGIN | | | | | | | | | | | | | | | | | |
ADT Worldwide | | $ | 226 | | 12.6 | % | $ | 203 | | 10.2 | % | $ | 233 | | — | | $ | 906 | | 11.7 | % |
Flow Control | | 126 | | 12.5 | % | 152 | | 12.8 | % | 518 | | 13.5 | % | 618 | | 14.0 | % |
Fire Protection Services | | 65 | | 7.2 | % | 71 | | 7.0 | % | 68 | | — | | 325 | | 8.5 | % |
Electrical and Metal Products | | 12 | | 3.7 | % | 88 | | 14.9 | % | (940 | ) | — | | 342 | | 15.1 | % |
Safety Products | | 46 | | 12.0 | % | 65 | | 12.8 | % | (789 | ) | — | | 284 | | 14.7 | % |
Corporate and Other | | (160 | ) | — | | (150 | ) | — | | (577 | ) | — | | (534 | ) | — | |
Total Operating Income / (Loss) and Margin | | $ | 315 | | 7.1 | % | $ | 429 | | 8.1 | % | $ | (1,487 | ) | — | | $ | 1,941 | | 9.6 | % |
Note: Certain operating margins have not been presented as management believes such calculations are not meaningful.
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)
| | September 25, | | September 26, | |
| | 2009 | | 2008 | |
Current Assets: | | | | | |
Cash and cash equivalents | | $ | 2,354 | | $ | 1,519 | |
Accounts receivable, net | | 2,629 | | 2,986 | |
Inventories | | 1,443 | | 1,877 | |
Other current assets | | 1,385 | | 1,779 | |
Assets held for sale | | 156 | | 268 | |
Total current assets | | 7,967 | | 8,429 | |
| | | | | |
Property, plant and equipment, net | | 3,497 | | 3,493 | |
Goodwill | | 8,791 | | 11,619 | |
Intangible assets, net | | 2,647 | | 2,681 | |
Other assets | | 2,651 | | 2,582 | |
Total Assets | | $ | 25,553 | | $ | 28,804 | |
| | | | | |
Current Liabilities: | | | | | |
Short-term debt and current maturities of long-term debt | | $ | 245 | | $ | 555 | |
Accounts payable | | 1,244 | | 1,608 | |
Accrued and other current liabilities | | 2,476 | | 2,717 | |
Deferred revenue | | 590 | | 594 | |
Liabilities held for sale | | 161 | | 211 | |
Total current liabilities | | 4,716 | | 5,685 | |
| | | | | |
Long-term debt | | 4,029 | | 3,709 | |
Other liabilities | | 3,854 | | 3,902 | |
Total Liabilities | | 12,599 | | 13,296 | |
| | | | | |
Shareholders’ equity | | 12,954 | | 15,508 | |
| | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 25,553 | | $ | 28,804 | |
NOTE: These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 26, 2008 and Quarterly Report on Form 10-Q for the quarterly period ended June 26, 2009.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
| | Quarter Ended | | Twelve Months Ended | |
| | September 25, | | September 26, | | September 25, | | September 26, | |
| | 2009 | | 2008 | | 2009 | | 2008 | |
Cash Flows from Operating Activities: | | | | | | | | | |
Net income (loss) | | $ | 205 | | $ | 434 | | $ | (1,798 | ) | $ | 1,553 | |
Loss (Income) from discontinued operations | | 2 | | (170 | ) | (35 | ) | (458 | ) |
| | | | | | | | | |
Income (loss) from continuing operations | | 207 | | 264 | | (1,833 | ) | 1,095 | |
Adjustments to reconcile net cash provided by operating activities: | | | | | | | | | |
Goodwill and intangible asset impairments | | — | | 9 | | 2,705 | | 10 | |
Depreciation and amortization | | 294 | | 300 | | 1,133 | | 1,154 | |
Non-cash compensation expense | | 27 | | 21 | | 103 | | 99 | |
Deferred income taxes | | 118 | | 21 | | (83 | ) | (94 | ) |
Provision for losses on accounts receivable and inventory | | 42 | | 36 | | 156 | | 135 | |
(Gain) Loss on extinguishment of debt | | — | | — | | (2 | ) | 258 | |
Other non-cash items | | 46 | | 62 | | 108 | | 137 | |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | | | | | | | | | |
Accounts receivable, net | | 23 | | 67 | | 207 | | (176 | ) |
Inventories | | 186 | | 35 | | 367 | | (138 | ) |
Prepaid expenses and other current assets | | 186 | | 2 | | 11 | | 11 | |
Accounts payable | | 48 | | 119 | | (352 | ) | (16 | ) |
Accrued and other liabilities | | (40 | ) | 205 | | (52 | ) | (152 | ) |
Income taxes, net | | (145 | ) | (87 | ) | (148 | ) | (95 | ) |
Class action settlement liability | | — | | — | | — | | (3,020 | ) |
Other | | (7 | ) | (18 | ) | 109 | | (80 | ) |
Net cash provided by (used in) operating activities | | 985 | | 1,036 | | 2,429 | | (872 | ) |
Net cash provided by (used in) discontinued operating activities | | — | | 7 | | (8 | ) | (18 | ) |
| | | | | | | | | |
Cash Flows from Investing Activities: | | | | | | | | | |
Capital expenditures | | (209 | ) | (189 | ) | (709 | ) | (734 | ) |
Proceeds from disposal of assets | | 7 | | 14 | | 13 | | 28 | |
Acquisition of businesses, net of cash acquired | | (1 | ) | (255 | ) | (48 | ) | (347 | ) |
Accounts purchased from ADT dealer program | | (182 | ) | (107 | ) | (543 | ) | (376 | ) |
Class action settlement escrow | | — | | — | | — | | 2,960 | |
Other | | (22 | ) | — | | 18 | | 15 | |
Net cash (used in) provided by investing activities | | (407 | ) | (537 | ) | (1,269 | ) | 1,546 | |
Net cash provided by discontinued investing activities | | 25 | | 432 | | 66 | | 911 | |
| | | | | | | | | |
Cash Flows from Financing Activities: | | | | | | | | | |
Net repayments of debt | | 25 | | (346 | ) | 8 | | (547 | ) |
Proceeds from exercise of share options | | — | | 9 | | 1 | | 49 | |
Dividends paid | | (101 | ) | (71 | ) | (388 | ) | (292 | ) |
Repurchase of common shares by subsidiary | | — | | (98 | ) | (3 | ) | (854 | ) |
Repurchase of common shares held by treasury | | — | | (192 | ) | — | | (192 | ) |
Transfers from discontinued operations | | 25 | | 439 | | 58 | | 897 | |
Other | | 8 | | (5 | ) | 9 | | (72 | ) |
Net cash used in financing activities | | (43 | ) | (264 | ) | (315 | ) | (1,011 | ) |
Net cash used in discontinued financing activities | | (25 | ) | (439 | ) | (58 | ) | (893 | ) |
| | | | | | | | | |
Effect of currency translation on cash | | 40 | | (58 | ) | (10 | ) | (38 | ) |
Net increase (decrease) in cash and cash equivalents | | 575 | | 177 | | 835 | | (375 | ) |
Cash and cash equivalents at beginning of period | | 1,779 | | 1,342 | | 1,519 | | 1,894 | |
| | | | | | | | | |
Cash and cash equivalents at end of period | | $ | 2,354 | | $ | 1,519 | | $ | 2,354 | | $ | 1,519 | |
| | | | | | | | | |
Reconciliation to “Free Cash Flow”: | | | | | | | | | |
Net cash provided by (used in) operating activities | | $ | 985 | | $ | 1,036 | | $ | 2,429 | | $ | (872 | ) |
Sale of accounts receivable | | (3 | ) | 2 | | 10 | | 14 | |
Capital expenditures | | (202 | ) | (175 | ) | (696 | ) | (706 | ) |
Accounts purchased from ADT dealer program | | (182 | ) | (107 | ) | (543 | ) | (376 | ) |
Purchase accounting and holdback liabilities | | — | | — | | (2 | ) | (2 | ) |
Voluntary pension contributions | | 16 | | 3 | | 22 | | 4 | |
Free Cash Flow | | $ | 614 | | $ | 759 | | $ | 1,220 | | $ | (1,938 | ) |
NOTE: Free cash flow is a non-GAAP measure. See description of non-GAAP measures contained in this release.
TYCO INTERNATIONAL LTD.
ORGANIC REVENUE RECONCILIATION
(in millions)
(Unaudited)
| | Quarter Ended September 25, 2009 | | | | | |
| | Net Revenue | | Foreign Currency | | (Acquisition) / Divestiture | | Other | | Organic Revenue | | Net Revenue for the Quarter Ended September 26, 2008 | | | |
ADT Worldwide | | $ | 1,799 | | -9.2 | % | $ | (79 | ) | -4.0 | % | $ | (4 | ) | -0.2 | % | $ | — | | 0.0 | % | $ | (99 | ) | -5.0 | % | $ | 1,981 | | | |
Flow Control | | 1,010 | | -15.0 | % | (57 | ) | -4.8 | % | (2 | ) | 0.0 | % | 5 | | 0.4 | % | (124 | ) | -10.4 | % | 1,188 | | | |
Fire Protection Services | | 904 | | -10.9 | % | (37 | ) | -3.6 | % | — | | 0.0 | % | (5 | ) | -0.5 | % | (69 | ) | -6.8 | % | 1,015 | | | |
Electrical and Metal Products | | 326 | | -44.8 | % | (8 | ) | -1.4 | % | (12 | ) | -1.9 | % | (3 | ) | -0.5 | % | (242 | ) | -40.9 | % | 591 | | | |
Safety Products | | 382 | | -24.7 | % | (15 | ) | -3.0 | % | (1 | ) | -0.2 | % | 3 | | 0.6 | % | (112 | ) | -22.1 | % | 507 | | | |
Corporate and Other | | — | | -100.0 | % | — | | 0.0 | % | — | | 0.0 | % | — | | 0.0 | % | (2 | ) | -100.0 | % | 2 | | | |
Total Net Revenue | | $ | 4,421 | | -16.3 | % | $ | (196 | ) | -3.7 | % | $ | (19 | ) | -0.3 | % | $ | — | | 0.0 | % | $ | (648 | ) | -12.3 | % | $ | 5,284 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended September 25, 2009 | | | | | |
| | Net Revenue | | Foreign Currency | | (Acquisition) / Divestiture | | Other | | Organic Revenue | | Net Revenue for the Twelve Months Ended September 26, 2008 | | | |
ADT Worldwide | | $ | 7,015 | | -9.3 | % | $ | (590 | ) | -7.6 | % | $ | 152 | | 1.9 | % | $ | — | | 0.0 | % | $ | (278 | ) | -3.6 | % | $ | 7,731 | | | |
Flow Control | | 3,850 | | -12.9 | % | (462 | ) | -10.5 | % | (3 | ) | -0.1 | % | 26 | | 0.6 | % | (129 | ) | -2.9 | % | 4,418 | | | |
Fire Protection Services | | 3,428 | | -10.7 | % | (294 | ) | -7.7 | % | — | | 0.0 | % | (18 | ) | -0.5 | % | (99 | ) | -2.6 | % | 3,839 | | | |
Electrical and Metal Products | | 1,392 | | -38.7 | % | (52 | ) | -2.3 | % | (31 | ) | -1.3 | % | (12 | ) | -0.5 | % | (785 | ) | -34.6 | % | 2,272 | | | |
Safety Products | | 1,552 | | -19.8 | % | (122 | ) | -6.3 | % | (8 | ) | -0.5 | % | 12 | | 0.6 | % | (264 | ) | -13.7 | % | 1,934 | | | |
Corporate and Other | | — | | -100.0 | % | — | | 0.0 | % | — | | 0.0 | % | — | | 0.0 | % | (5 | ) | -100.0 | % | 5 | | | |
Total Net Revenue | | $ | 17,237 | | -14.7 | % | $ | (1,520 | ) | -7.5 | % | $ | 110 | | 0.5 | % | $ | 8 | | 0.0 | % | $ | (1,560 | ) | -7.7 | % | $ | 20,199 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOTE: Organic revenue is a non-GAAP measure. See description of non-GAAP measures contained in this release.
Tyco International Ltd.
Earnings Per Share Summary
(Unaudited)
| | Quarter Ended | | Year to Date | | Quarter Ended | | Year Ended | |
| | Dec. 26, 2008 | | March 27, 2009 | | June 26, 2009 | | Sept. 25, 2009 | | Sept. 25, 2009 | | Dec. 28, 2007 | | March 28, 2008 | | June 27, 2008 | | Sept. 26, 2008 | | Sept. 26, 2008 | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted EPS from Continuing Operations (GAAP) | | $ | 0.57 | | $ | (5.40 | ) | $ | 0.51 | | $ | 0.44 | | $ | (3.87 | ) | $ | 0.72 | | $ | 0.56 | | $ | 0.41 | | $ | 0.55 | | $ | 2.25 | |
| | | | | | | | | | | | | | | | | | | | | |
Restructuring and asset impairment charges, net | | — | | 0.13 | | 0.04 | | 0.14 | | 0.32 | | 0.02 | | 0.06 | | 0.06 | | 0.19 | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | | |
Restructuring charges in cost of sales and SG&A | | 0.01 | | 0.02 | | 0.01 | | 0.01 | | 0.05 | | 0.01 | | 0.01 | | 0.01 | | 0.02 | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | |
Other additional charges resulting from restructuring actions | | — | | 0.01 | | 0.01 | | — | | 0.02 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Losses on divestitures | | — | | — | | 0.01 | | 0.01 | | 0.03 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Intangible impairments | | — | | 0.09 | | — | | — | | 0.08 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Goodwill impairments | | — | | 5.47 | | — | | — | | 5.47 | | — | | — | | — | | 0.02 | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | |
Tax items | | 0.01 | | — | | — | | — | | 0.01 | | 0.04 | | — | | — | | — | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | |
Class action settlement, net | | — | | — | | — | | — | | — | | — | | — | | (0.01 | ) | (0.01 | ) | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Legacy legal items | | 0.02 | | 0.23 | | — | | 0.01 | | 0.25 | | — | | 0.04 | | 0.02 | | — | | 0.06 | |
| | | | | | | | | | | | | | | | | | | | | |
Reserve adjustment | | — | | — | | — | | — | | — | | — | | (0.01 | ) | — | | — | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Separation costs | | — | | — | | — | | — | | — | | (0.08 | ) | 0.01 | | 0.39 | | 0.04 | | 0.36 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Before Special Items | | $ | 0.61 | | $ | 0.55 | | $ | 0.58 | | $ | 0.61 | | $ | 2.36 | | $ | 0.71 | | $ | 0.67 | | $ | 0.88 | | $ | 0.81 | | $ | 3.06 | |
Tyco International Ltd.
For the Quarter Ended September 25, 2009
(in millions, except per share data)
(Unaudited)
| | ADT
Worldwide | | Flow
Control | | Fire
Protection
Services | | Electrical
& Metal
Products | | Safety
Products | | Corporate
and Other | | Revenue | | | | | | | | | | | | | |
Revenue (GAAP) | | $ 1,799 | | $ 1,010 | | $ 904 | | $ 326 | | $ 382 | | — | | $ 4,421 | | | | | | | | | | | | | |
| | Operating Income | | | | | | | | | | | | | | | |
| | ADT
Worldwide | | Flow
Control | | Fire
Protection
Services | | Electrical
& Metal
Products | | Safety
Products | | Corporate
and Other | | Operating
Income | | Interest
Income,
net | | Other
Expense,
net | | Income
Taxes | | Minority
Interest | | Income
from
Continuing
Operations | | Diluted EPS from Continuing Operations | |
As Reported (GAAP) | | $ 226 | | $ 126 | | $ 65 | | $ 12 | | $ 46 | | $ (160 | ) | $ 315 | | $ (64 | ) | $ (19 | ) | $ (23 | ) | $ (2 | ) | $ 207 | | $ 0.44 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring and asset impairment charges, net | | 24 | | 14 | | 31 | | 9 | | 9 | | 2 | | 89 | | | | | | (22 | ) | | | 67 | | 0.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring charges in cost of sales and SG&A | | 1 | | | | | | | | 5 | | | | 6 | | | | | | (1 | ) | | | 5 | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other additional charges resulting from restructuring actions | | | | 1 | | | | | | | | | | 1 | | | | | | | | | | 1 | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Losses on divestitures | | 6 | | | | | | | | | | 4 | | 10 | | | | | | (3 | ) | | | 7 | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill impairments | | | | | | | | | | | | | | | | | | | | 2 | | | | 2 | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax items | | | | | | | | | | | | | | | | | | | | (3 | ) | | | (3 | ) | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Legacy legal items | | | | | | | | | | | | 5 | | 5 | | | | | | | | | | 5 | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Before Special Items | | $ 257 | | $ 141 | | $ 96 | | $ 21 | | $ 60 | | $ (149 | ) | $ 426 | | $ (64 | ) | $ (19 | ) | $ (50 | ) | $ (2 | ) | $ 291 | | $ 0.61 | |
| | | | | | | | | | | | | | | | | | Diluted Shares Outstanding | | 476 | |
| | | | | | | | | | | | | | | | | | Diluted Shares Outstanding — Before Special Items | | 476 | |
Tyco International Ltd.
For the Twelve Months Ended September 25, 2009
(in millions, except per share data)
(Unaudited)
| | ADT
Worldwide | | Flow
Control | | Fire Protection
Services | | Electrical &
Metal Products | | Safety
Products | | Corporate
and Other | | Revenue | | | | | | | | | | | | | |
Revenue (GAAP) | | $ 7,015 | | $ 3,850 | | $ 3,428 | | $ 1,392 | | $ 1,552 | | — | | $ 17,237 | | | | | | | | | | | | | |
| | Operating Income | | | | | | | | | | | | Income | | Diluted EPS | |
| | ADT
Worldwide | | Flow
Control | | Fire
Protection
Services | | Electrical
& Metal
Products | | Safety
Products | | Corporate
and Other | | Operating
Income | | Interest
Income,
net | | Other
Expense, net | | Income
Taxes | | Minority
Interest | | from
Continuing
Operations | | from Continuing Operations | |
As Reported (GAAP) | | $ 233 | | $ 518 | | $ 68 | | $ (940 | ) | $ (789 | ) | $ (577 | ) | $ (1,487 | ) | $ (257 | ) | $ (7 | ) | $ (78 | ) | $ (4 | ) | $ (1,833 | ) | $ (3.87 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring and asset impairment charges, net | | 76 | | 23 | | 45 | | 16 | | 36 | | 9 | | 205 | | | | | | (54 | ) | | | 151 | | 0.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring charges in cost of sales and SG&A | | 5 | | 2 | | | | 7 | | 18 | | 1 | | 33 | | | | | | (11 | ) | | | 22 | | 0.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other additional charges resulting from restructuring actions | | | | 5 | | | | 1 | | 9 | | | | 15 | | | | | | (4 | ) | | | 11 | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Losses on divestitures | | 6 | | 4 | | | | (2 | ) | | | 6 | | 14 | | | | | | (3 | ) | | | 11 | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible impairments | | 22 | | | | | | | | 42 | | | | 64 | | | | | | (25 | ) | | | 39 | | 0.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill impairments | | 613 | | | | 180 | | 935 | | 913 | | | | 2,641 | | | | | | (41 | ) | | | 2,600 | | 5.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax items | | | | | | | | | | | | | | | | | | | | 3 | | | | 3 | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Legacy legal items | | | | | | | | | | | | 114 | | 114 | | | | | | 4 | | | | 118 | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Before Special Items | | $ 955 | | $ 552 | | $ 293 | | $ 17 | | $ 229 | | $ (447 | ) | $ 1,599 | | $ (257 | ) | $ (7 | ) | $ (209 | ) | $ (4 | ) | $ 1,122 | | $ 2.36 | |
| | | | | | | | | | | | | | | | Diluted Shares Outstanding | | 473 | |
| | | | | | | | | | | | | | | | Diluted Shares Outstanding — Before Special Items | | 475 | |
Tyco International Ltd.
For the Quarter Ended September 26, 2008
(in millions, except per share data)
(Unaudited)
| | ADT
Worldwide | | Flow
Control | | Fire Protection
Services | | Electrical &
Metal
Products | | Safety
Products | | Corporate
and Other | | Revenue | | | | | | | | | | | | | |
Previously Reported Revenue (GAAP) | | $ | 2,052 | | $ | 1,188 | | $ | 944 | | $ | 591 | | $ | 507 | | $ | 2 | | $ | 5,284 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment Realignment | | (71 | ) | | | 71 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recasted Revenue (GAAP) | | $ | 1,981 | | $ | 1,188 | | $ | 1,015 | | $ | 591 | | $ | 507 | | $ | 2 | | $ | 5,284 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Operating Income | | | | | | | | | | | | Income | | Diluted EPS | |
| | ADT
Worldwide | | Flow
Control | | Fire
Protection
Services | | Electrical
& Metal
Products | |
Safety
Products
| | Corporate
and Other | | Total
Operating
Income | | Interest
Expense,
net | | Other
Expense, net | | Income
Taxes | | Minority
Interest | | from
Continuing
Operations | | from Continuing Operations | |
As Previously Reported (GAAP) | | $ | 200 | | $ | 152 | | $ | 74 | | $ | 88 | | $ | 65 | | $ | (150 | ) | $ | 429 | | $ | (62 | ) | $ | (19 | ) | $ | (86 | ) | $ | 2 | | $ | 264 | | $ | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment Realignment | | 3 | | | | (3 | ) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
As Reported (GAAP) | | $ | 203 | | $ | 152 | | $ | 71 | | $ | 88 | | $ | 65 | | $ | (150 | ) | $ | 429 | | $ | (62 | ) | $ | (19 | ) | $ | (86 | ) | $ | 2 | | $ | 264 | | $ | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring and asset impairment charges, net | | 47 | | 3 | | 20 | | 28 | | 32 | | 1 | | 131 | | | | | | (39 | ) | | | 92 | | 0.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring charges in cost of sales and SG&A | | 1 | | 6 | | 1 | | 3 | | 2 | | | | 13 | | | | | | (5 | ) | | | 8 | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill impairment | | | | | | 9 | | | | | | | | 9 | | | | | | | | | | 9 | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class action settlement, net | | | | | | | | | | | | (3 | ) | (3 | ) | | | | | | | | | (3 | ) | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Separation costs | | | | | | | | | | | | | | | | | | 17 | | | | | | 17 | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Before Special Items | | $ | 251 | | $ | 161 | | $ | 101 | | $ | 119 | | $ | 99 | | $ | (152 | ) | $ | 579 | | $ | (62 | ) | $ | (2 | ) | $ | (130 | ) | $ | 2 | | $ | 387 | | $ | 0.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Diluted Shares Outstanding | | 478 | |
| | | | | | | | | | | | | | | | | | Diluted Shares Outstanding — Before Special Items | | 478 | |
Tyco International Ltd.
For the Twelve Months Ended September 26, 2008
(in millions, except per share data)
(Unaudited)
| | ADT | | Flow | | Fire Protection | | Electrical &
Metal | | Safety | | Corporate | | | | | | | | | | | | | | | |
| | Worldwide | | Control | | Services | | Products | | Products | | and Other | | Revenue | | | | | | | | | | | | | |
Previously Reported Revenue (GAAP) | | $ | 8,017 | | $ | 4,418 | | $ | 3,553 | | $ | 2,272 | | $ | 1,934 | | $ | 5 | | $ | 20,199 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment Realignment | | (286 | ) | — | | 286 | | — | | — | | — | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recasted Revenue (GAAP) | | $ | 7,731 | | $ | 4,418 | | $ | 3,839 | | $ | 2,272 | | $ | 1,934 | | $ | 5 | | $ | 20,199 | | | | | | | | | | | | | |
| | Operating Income | | | | | | | | | | | | Income | | Diluted EPS | |
| | | | | | Fire | | Electrical | | | | | | Total | | Interest | | Other | | | | | | from | | from | |
| | ADT | | Flow | | Protection | | & Metal | | Safety | | Corporate | | Operating | | Expense, | | Expense, | | Income | | Minority | | Continuing | | Continuing | |
| | Worldwide | | Control | | Services | | Products | | Products | | and Other | | Income | | net | | net | | Taxes | | Interest | | Operations | | Operations | |
As Previously Reported (GAAP) | | $ 910 | | $ 618 | | $ 321 | | $ 342 | | $ 284 | | $ (534 | ) | $ 1,941 | | $ (286 | ) | $ (224 | ) | $ (335 | ) | $ (1 | ) | $ 1,095 | | $ 2.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment Realignment | | (4 | ) | — | | 4 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
As Reported (GAAP) | | $ 906 | | $ 618 | | $ 325 | | $ 342 | | $ 284 | | $ (534 | ) | $ 1,941 | | $ (286 | ) | $ (224 | ) | $ (335 | ) | $ (1 | ) | $ 1,095 | | $ 2.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring and asset impairment charges, net | | 93 | | 5 | | 25 | | 34 | | 67 | | 1 | | 225 | | — | | — | | (65 | ) | — | | 160 | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring charges in cost of sales and SG&A | | 1 | | 9 | | — | | 9 | | 6 | | 3 | | 28 | | — | | — | | (9 | ) | — | | 19 | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Losses on divestitures | | — | | — | | — | | — | | — | | 1 | | 1 | | — | | — | | — | | — | | 1 | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill impairment | | — | | — | | 9 | | — | | — | | — | | 9 | | — | | — | | — | | — | | 9 | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax items | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 21 | | — | | 21 | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class action settlement, net | | — | | — | | — | | — | | — | | (10 | ) | (10 | ) | — | | — | | — | | — | | (10 | ) | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Legacy legal items | | — | | — | | — | | — | | — | | 29 | | 29 | | — | | — | | — | | — | | 29 | | 0.06 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reserve adjustment | | — | | — | | — | | — | | — | | (9 | ) | (9 | ) | — | | — | | 3 | | — | | (6 | ) | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Separation costs | | — | | — | | — | | — | | — | | 5 | | 5 | | 47 | | 225 | | (102 | ) | — | | 175 | | 0.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Before Special Items | | $ 1,000 | | $ 632 | | $ 359 | | $ 385 | | $ 357 | | $ (514 | ) | $ 2,219 | | $ (239 | ) | $ 1 | | $ (487 | ) | $ (1 | ) | $ 1,493 | | $ 3.06 | |
| Diluted Shares Outstanding | | 488 | |
| Diluted Shares Outstanding — Before Special Items | | 488 | |
