ADT 2005 Annual Report Download - page 160

TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended September 30, 2005, 2004 and 2003
(in millions)
2005 2004 2003
Cash Flows From Operating Activities:
Net income .................................................. $3,032 $ 2,879 $ 980
Deduct:
(Loss) income from discontinued operations, net of income taxes ............ (188) (69) 173
Cumulative effect of accounting change, net of income taxes ............... 21 — (75)
Income from continuing operations .................................. 3,199 2,948 882
Adjustments to reconcile net cash provided by operating activities:
Non-cash restructuring and other credits, net .......................... (18) (33) (46)
Impairment of long-lived assets ................................... 6 51 825
(Gains) losses and impairments on divestitures, net ...................... (271) 111 —
Goodwill impairment .......................................... — — 278
(Gains) loss on investments, net ................................... (24) 1 87
Depreciation and amortization .................................... 2,100 2,119 2,142
Deferred income taxes ......................................... (41) 167 367
Provision for losses on accounts receivable and inventory .................. 234 318 573
Debt and refinancing cost amortization .............................. 30 55 116
Loss on the retirement of debt ................................... 1,013 284 128
Other non-cash items .......................................... 132 93 107
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net ...................................... (714) (145) 219
Decrease in sale of accounts receivable ............................ (18) (929) (119)
Contracts in progress ........................................ (43) 16 (87)
Inventories ............................................... (124) (246) 386
Other current assets ......................................... 79 119 (23)
Accounts payable ........................................... 424 79 (575)
Accrued and other liabilities .................................... 118 (105) (594)
Income taxes .............................................. 202 411 169
Other ................................................... (147) (35) 161
Net cash provided by operating activities .......................... 6,137 5,279 4,996
Net cash provided by discontinued operating activities ................ 77 134 377
Cash Flows From Investing Activities:
Capital expenditures, net ......................................... (1,272) (987) (1,255)
Acquisition of customer accounts (ADT dealer program) ................... (328) (254) (597)
Acquisition of businesses, net of cash acquired .......................... (82) (15) (44)
Purchase accounting and holdback/earn-out liabilities ...................... (47) (105) (267)
Divestiture of businesses, net of cash retained by businesses sold .............. 295 236 9
(Increase) decrease in investments ................................... (272) 423 (385)
(Increase) decrease in restricted cash ................................. (2) 342 (228)
Other ...................................................... (16) (25) 58
Net cash used in investing activities ............................. (1,724) (385) (2,709)
Net cash used in discontinued investing activities .................... (30) (46) (31)
Cash Flows From Financing Activities:
Net repayment of short-term debt ................................... (2,021) (2,647) (7,906)
Proceeds from issuance of long-term debt .............................. — 2,224 4,388
Repayment of long-term debt, including debt tenders ...................... (2,969) (4,345) (1,098)
Proceeds from exercise of share options ............................... 226 155 15
Dividends paid ................................................ (628) (100) (101)
Repurchase of common shares by subsidiary ............................ (300) (1) (1)
Other ...................................................... (23) (24) (8)
Net cash used in financing activities ............................. (5,715) (4,738) (4,711)
Net cash used in discontinued financing activities .................... (81) (8) (3)
Effect of currency translation on cash ................................ 65 45 89
Net (decrease) increase in cash and cash equivalents ...................... (1,271) 281 (1,992)
Cash and cash equivalents at beginning of year ......................... 4,467 4,186 6,178
Cash and cash equivalents at end of year .............................. $3,196 $ 4,467 $ 4,186
Supplementary Cash Flow Information:
Interest paid ................................................. $ 852 $ 976 $1,142
Income taxes paid, net of refunds ................................... 790 545 129
See Notes to Consolidated Financial Statements.
84 2005 Financials