ADT 2002 Annual Report Download - page 164

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Operating results from the discontinued operations of Tyco Capital through July 8, 2002 were as
follows ($ in millions):
For the Period For the Period
October 1, June 2 (date of
2001 through acquisition) through
July 8, 2002 September 30, 2001
Finance income ........................................ $ 3,327.6 $ 1,676.5
Interest expense ....................................... 1,091.5 597.1
Net finance income ..................................... 2,236.1 1,079.4
Depreciation on operating lease equipment .................... 944.4 448.6
Net finance margin ..................................... 1,291.7 630.8
Provision for credit losses ................................. 665.6 116.1
Net finance margin, after provision for credit losses .............. 626.1 514.7
Other income ......................................... 741.1 335.1
Operating margin ...................................... 1,367.2 849.8
Selling, general, administrative and other costs and expenses ....... 687.8 398.7
Goodwill impairment .................................... 6,638.1 —
Operating expenses ..................................... 7,325.9 398.7
(Loss) income before income taxes and minority interest .......... (5,958.7) 451.1
Income taxes .......................................... (316.1) (195.0)
Minority interest ....................................... (7.7) (3.6)
(Loss) income from discontinued operations ................... $(6,282.5) $ 252.5
Average earning assets (‘‘AEA’’)(1) ........................... $36,269.0 $39,159.2
Net finance margin as a percent of AEA (annualized) ............ 4.75% 4.83%
(1) Average earning assets is the average of finance receivables, operating lease equipment, finance receivables held for sale and
certain investments, less credit balances of factoring clients.
Tyco Capital’s revenues were $4,068.7 million for the period October 1, 2001 through July 8, 2002,
consisting of finance income of $3,327.6 million and other income of $741.1 million. Tyco Capital’s
revenues for the period June 2 through September 30, 2001 were $2,011.6 million, consisting of finance
income of $1,676.5 million and other income of $335.1 million. As a percentage of AEA, finance
income was 11.9% and 12.8% for the period October 1, 2001 through July 8, 2002 and for the period
June 2 through September 30, 2001, respectively. For the period October 1, 2001 through July 8, 2002,
Tyco Capital’s loss before income taxes and minority interest was $5,958.7 million. For the period
June 2 through September 30, 2001, Tyco Capital’s income before income taxes and minority interest
was $451.1 million.
Interest expense totaled $1,091.5 million and $597.1 million for the period October 1, 2001 through
July 8, 2002 and for the period June 2 through September 30, 2001, respectively. As a percentage of
AEA, interest expense was 3.9% and 4.6% for the period October 1, 2001 through July 8, 2002 and for
the period June 2 through September 30, 2001, respectively.
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