ADT 2000 Annual Report Download - page 67

SIXTY FIVE
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 3 0 , 20 00
TYCO
TYCO INTERNATIONAL OTHER CONSOLIDATI N G
(I N MILLI ONS) INTERN ATIONAL LTD. GROUP, S.A. SU BSIDIARIES( 1 ) ADJUSTMENTS TOTAL
NET SALES $ — $ — $ 2 8 ,9 3 1 .9 $ — $ 2 8 ,9 3 1 .9
Cost of sales —— 1 7 ,9 3 1 .2 — 1 7 ,9 3 1 .2
Selling, general and administrative expenses 1 2 .5 9 .9 5 ,2 2 9 .6 — 5 ,2 5 2 .0
Merger, restructuring and other non-recurring charges —— 1 7 5 .3 — 1 7 5 .3
Charge for the impairment of long-lived assets —— 9 9 .0 — 9 9 .0
OPERATING INCOME (LOSS) (1 2 .5 ) (9 .9 ) 5 ,4 9 6 .8 — 5 ,4 7 4 .4
Interest income (expense), net 3 .5 (6 9 8 .9 ) (7 4 .2 ) — (7 6 9 .6 )
Gain on issuance of common shares by subsidiary —— 1 ,7 6 0 .0 — 1 ,7 6 0 .0
Equity in net income of unconsolidated subsidiaries 4,672.1 2,556.1 — (7 ,2 2 8 .2 ) —
Intercompany dividends, interest and fees 2 9 .8 7 0 9 .0 (6 9 4 . 6 ) (4 4 .2 ) —
Income before income taxes, minority interest and
extraordinary items 4 ,6 9 2 .9 2 ,5 5 6 .3 6 ,4 8 8 .0 (7 ,2 7 2 .4 ) 6 ,4 6 4 .8
Income taxes — (0 .2 ) (1 ,7 9 7 . 0 ) (1 2 8 .8 ) (1 ,9 2 6 .0 )
Minority interest —— (1 8 .7 ) — (1 8 .7 )
Income before extraordinary items 4 ,6 9 2 .9 2 , 5 5 6 .1 4 ,6 7 2 .3 (7 ,4 0 1 .2 ) 4 ,5 2 0 .1
Extraordinary items, net of taxes(2) —— (0 .2 ) — (0 .2 )
NET INCOME $ 4 ,6 9 2 .9 $ 2 , 5 5 6 .1 $ 4 , 6 7 2 .1 $ (7 ,4 0 1 .2 ) $ 4 ,5 1 9 .9
(1) Operating income includes a net charge of $176.3 million, of which $1.0 million is included in cost of sales, for restructuring and other non-recurring charges, and charges of $99.0 million for the
impairment of long-lived assets related to the Company exiting the interventional cardiology business of USSC. The net charge is comprised of charges of $325.2 million, of which $7.3 million is included
in cost of sales, primarily for non-recurring claims related to a merged company in the Healthcare business, the restructuring activities in AMP’s Brazilian operations and wireless communications busi-
ness, a non-recurring charge incurred in connection with TyCom’s initial public offering and credits of $148.9 million, of which $6.3 million is included in cost of sales, primarily related to a revision in
estimates associated with the AMP merger and AMP’s profit improvement plan, the Company’s 1997 restructuring plan and the merger with USSC. Income from continuing operations includes a one-
time pre-tax gain of $1,760.0 million related to the issuance of common shares by a subsidiary.
(2) Extraordinary items relate principally to the write-off of net unamortized deferred refinancing costs relating to the early extinguishment of debt.
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 3 0 , 19 99
TYCO
TYCO INTERNATIONAL OTHER CONSOLIDATI N G
(I N MILLI ONS) INTERN ATIONAL LTD. GROUP, S.A. SU BSIDIARIES( 1 ) ADJUSTMENTS TOTAL
NET SALES $ — $ — $22,496.5 $ — $22,496.5
Cost of sales —— 14,433.1 — 14,433.1
Selling, general and administrative expenses 2.9 1.1 4,432.3 — 4,436.3
Merger, restructuring and other non-recurring charges —— 928.8 — 928.8
Charge for the impairment of long-lived assets —— 507.5 — 507.5
OPERATING INCOME (LOSS) (2.9) (1.1) 2,194.8 — 2,190.8
Interest income (expense), net 3.0 (401.9) (86.7) — (485.6)
Equity in net income of unconsolidated subsidiaries 663.0 244.7 — (907.7) —
Intercompany dividends, interest and fees 1,656.0 403.2 (999.7) (1,059.5) —
Income before income taxes and extraordinary items 2,319.1 244.9 1,108.4 (1,967.2) 1,705.2
Income taxes — (0.2) (399.7) (237.6) (637.5)
Income before extraordinary items 2,319.1 244.7 708.7 (2,204.8) 1,067.7
Extraordinary items, net of taxes(2) —— (45.7) — (45.7)
NET INCOME $2,319.1 $244.7 $ 663.0 $(2,204.8) $ 1,022.0
(1) Operating income includes merger, restructuring and other non-recurring charges of $643.3 million, of which $106.4 million is included in cost of sales, and charges for the impairment of long-lived
assets of $431.5 million primarily related to the merger with AMP and AMP’s profit improvement plan. Also included are merger, restructuring and other non-recurring charges of $423.8 million and
charges for the impairment of long-lived assets of $76.0 million, primarily related to the USSC merger and a credit of $31.9 million representing a revision of estimates related to Tyco’s 1997 restruc-
turing and other non-recurring accruals.
(2) Extraordinary items relate principally to the Company’s debt tender offers and the write-off of net unamortized deferred refinancing costs relating to the early extinguishment of debt.