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27.
Supplementary Income Statement Information
Selected supplementary income statement information is presented below ($ in millions).
YEAR ENDED SEPTEMBER 30, 2003 2002 2001
Company-sponsored research and development $670.6 $633.4 $572.0
Advertising 186.6 180.7 152.3
114
Deferred Stock Units The Company granted 1.7 million
deferred stock units (“DSU’s”) under the existing Incentive
Plan described above during fiscal 2003 and fiscal 2002, all of
which were outstanding at September 30, 2003. DSU’s are
notional units that are tied to the value of Tyco common shares
with distribution deferred until termination of employment.
Distribution, when made, will be in the form of actual shares.
Similar to restricted stock grants that vest through the passage
of time, the fair market value of the DSU’s at the time of the
grant is amortized to expense over the period of vesting. The
unamortized portion of deferred compensation expense is
recorded as a reduction of shareholders’ equity. Recipients of
DSU’s do not have the right to vote such shares and do not have
the right to receive cash dividends. However, they have the right
to receive dividends in the form of additional DSU’s.
Dividends Tyco has paid a quarterly cash dividend of $0.0125
per common share since July 1997.
TYCO INTERNATIONAL LTD.
Notes to Consolidated Financial Statements
26.
Comprehensive Income (Loss)
The purpose of reporting comprehensive income (loss) is to report a measure of all changes in equity, other than transactions with
shareholders. Total comprehensive income (loss) is included in the Consolidated Statements of Shareholders’ Equity. The compo-
nents of accumulated other comprehensive income (loss) are as follows ($ in millions):
UNREALIZED UNREALIZED ACCUMULATED
CURRENCY (LOSS) (LOSS) GAIN MINIMUM OTHER
TRANSLATION GAIN ON ON DERIVATIVE PENSION COMPREHENSIVE
ITEMS SECURITIES INSTRUMENTS LIABILITY INCOME (LOSS)
Balance at September 30, 2000 $«««(798.1) $«1,083.5 $««««— $««(18.3) $««««267.1
Pre-tax current period change (191.6) (1,187.4) (1) (2.3) (401.6) (1,782.9)
Income tax benefit — 24.8 — 140.6 165.4
Activity of discontinued operations net of tax (13.3) — (63.4) — (76.7)
Balance at September 30, 2001 (1,003.0) (79.1) (65.7) (279.3) (1,427.1)
Pre-tax current period change 92.2 77.0 (2) 1.6 (611.7) (440.9)
Income tax (expense) benefit — (3.2) — 205.9 202.7
Activity of discontinued operations net of tax 13.3 — 63.4 — 76.7
Balance at September 30, 2002 (897.5) (5.3) (0.7) (685.1) (1,588.6)
Pre-tax current period change 1,445.4 3.9 2.7 (206.1) 1,245.9
Income tax (expense) benefit — (1.9) — 71.3 69.4
Balance at September 30, 2003 $««««547.9 $«««««««(3.3) $«««2.0 $(819.9) $«««(273.3)
(1) Primarily related to Tyco’s investment in 360networks, Inc.
(2) Includes $112.8 million pre-tax ($100.6 million after-tax) reclassification of unrealized losses related to the other than temporary impairment of investments.