ADT 1999 Annual Report Download - page 38

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The following table sets forth selected consolidated financial information of the Company for the fiscal years ended September 30, 1999 and
1998, the nine-month fiscal period ended September 30, 1997 and the two years in the period ended December 31, 1996. This selected finan-
cial information should be read in conjunction with the Company’s Consolidated Financial Statements and related notes. The selected financial
data reflect the combined results of operations and financial position of Tyco, Former Tyco, Keystone, Inbrand (from January 1, 1997), USSC
and AMP restated for all periods presented pursuant to the pooling of interests method of accounting. The selected financial data prior to Jan-
uary 1, 1997 do not reflect the results of operations and financial position of Inbrand, which was acquired in 1997 and accounted for under the
pooling of interests method of accounting, due to immateriality. See Notes 1 and 2 to the Consolidated Financial Statements.
Nine Months
Year Ended
Ended
Year Ended
September 30,
September 30,
December 31,
(in millions, except per share amounts) 1999(1) 1998(2) 1997(3)(4) 1996(5)(6) 1995(5)(7)
Consolidated Statements of Operations Data:
Net sales $22,496.5 $19,061.7 $12,742.5 $14,671.0 $13,152.1
Operating income 2,136.8 1,948.1 125.8 587.4 1,447.5
Income (loss) from continuing operations 1,031.0 1,168.6 (348.5) 49.4 755.5
Income (loss) from continuing operations per common share:
Basic 0.63 0.74 (0.24) 0.02 0.55
Diluted 0.62 0.72 (0.24) 0.02 0.54
Cash dividends per common share(8) See (9) below.
Consolidated Balance Sheet Data:
Total assets $32,361.6 $23,440.7 $16,960.8 $14,686.2 $13,143.8
Long-term debt 9,109.4 5,424.7 2,785.9 2,202.4 2,229.7
Shareholders’ equity 12,332.6 9,901.8 7,478.7 7,022.6 6,792.1
(1) Operating income in the fiscal year ended September 30, 1999 includes charges of $1,261.7 million for merger, restructuring and other non-recurring
charges, of which $78.9 million is included in cost of sales, and charges of $335.0 million for the impairment of long-lived assets related to the mergers with
USSC and AMP and AMP’s profit improvement plan. See Notes 12 and 16 to the Consolidated Financial Statements.
(2) Operating income in the fiscal year ended September 30, 1998 includes charges of $80.5 million primarily related to costs to exit certain businesses
in USSC’s operations and restructuring charges of $12.0 million related to the operations of USSC. In addition, AMP recorded restructuring charges of
$185.8 million in connection with its profit improvement plan and a credit of $21.4 million to restructuring charges representing a revision of estimates related
to its 1996 restructuring activities. See Note 16 to the Consolidated Financial Statements.
(3) In September 1997, the Company changed its fiscal year end from December 31 to September 30. Accordingly, the nine-month transition period ended
September 30, 1997 is presented.
(4) Operating income in the nine months ended September 30, 1997 includes charges related to merger, restructuring and other non-recurring costs of
$917.8 million and impairment of long-lived assets of $148.4 million primarily related to the mergers and integration of ADT, Former Tyco, Keystone, and
Inbrand, and charges of $24.3 million for litigation and other related costs and $5.8 million for restructuring charges in USSC’s operations. See Notes 12 and
16 to the Consolidated Financial Statements. The results for the nine months ended September 30, 1997 also include a charge of $361.0 million for the write-
off of purchased in-process research and development related to the acquisition of the submarine systems business of AT&T Corp.
(5) Prior to their respective mergers, ADT, Keystone, USSC and AMP had December 31 fiscal year ends and Former Tyco had a June 30 fiscal year end. The
selected consolidated financial data have been combined using a December 31 fiscal year end for ADT, Keystone, Former Tyco, USSC and AMP for the year
ended December 31, 1996. For 1995, the results of operations and financial position reflect the combination of ADT, Keystone, USSC and AMP with a Decem-
ber 31 fiscal year end and Former Tyco with a June 30 fiscal year end. Net sales and net income for Former Tyco for the period July 1, 1995 through Decem-
ber 31, 1995, which results are not included in the historical combined results, were $2,460.1 million and $136.4 million, respectively.
(6) Operating income in 1996 includes non-recurring charges of $744.7 million related to the adoption of Statement of Financial Accounting Standards No. 121
“Accounting for the Impairment of Long-Lived Assets to Be Disposed Of,” $237.3 million related principally to the restructuring of ADT’s electronic security ser-
vices business in the United States and United Kingdom, $98.0 million to exit various product lines and manufacturing operations associated with AMP’s oper-
ations and $8.8 million of fees and expenses related to ADT’s acquisition of Automated Security (Holdings) plc, a United Kingdom company.
(7) Operating income in 1995 includes a loss of $65.8 million on the disposal of the European auto auction business and a gain of $31.4 million from the dis-
posal of the European electronic article surveillance business. Operating income also includes non-recurring charges of $97.1 million for restructuring charges
at ADT and Keystone, and for the fees and expenses related to the 1994 merger of Kendall International, Inc. and Former Tyco, as well as a charge of $8.2 mil-
lion relating to the divestiture of certain assets by Keystone.
(8) Per share amounts have been retroactively restated to give effect to the mergers with Former Tyco, Keystone, Inbrand, USSC and AMP; a 0.48133 reverse
stock split (1.92532 after giving effect to the subsequent stock splits) effected on July 2, 1997; and two-for-one stock splits distributed on October 22, 1997
and October 21, 1999, both of which were effected in the form of a stock dividend.
(9) Tyco has paid a quarterly cash dividend of $0.0125 per common share since July 2, 1997, the date of the Former Tyco/ADT merger. Prior to the merger
with ADT, Former Tyco had paid a quarterly cash dividend of $0.0125 per share of common stock since January 1992. ADT had not paid any dividends on its
common shares since 1992. USSC paid quarterly dividends of $0.04 per share in the year ended September 30, 1998 and the nine months ended September
30, 1997 and aggregate dividends of $0.08 per share in 1996 and 1995. AMP paid dividends of $0.27 per share in the first two quarters of the year ended Sep-
tember 30, 1999, $0.26 per share in the first quarter and $0.27 per share in the last three quarters of the year ended September 30, 1998, $0.26 per share in
each of the three quarters of the nine months ended September 30, 1997, aggregate dividends of $1.00 per share in 1996 and $0.92 per share in 1995. The
payment of dividends by Tyco in the future will depend on business conditions, Tyco’s financial condition and earnings and other factors.
selected financial data