ADT 2005 Annual Report Download - page 217

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
25. Summarized Quarterly Financial Data (Unaudited)
Summarized quarterly financial data for the years ended September 30, 2005 and 2004 is as follows
($ in millions, except per share data):
2005
1st Qtr.(1) 2nd Qtr.(2) 3rd Qtr.(3) 4th Qtr.(4)
Net revenue .................................. $9,601 $9,993 $10,103 $10,030
Gross profit .................................. 3,357 3,491 3,537 3,383
Income from continuing operations ................. 721 399 1,203 876
(Loss) income from discontinued operations, net of
income taxes ............................... (12) (207) (10) 41
Cumulative effect of accounting change, net of income
taxes ..................................... 21 — — —
Net income .................................. 730 192 1,193 917
Basic earnings per share:
Income from continuing operations ............... $ 0.36 $ 0.20 $ 0.60 $ 0.43
(Loss) income from discontinued operations, net of
income taxes .............................. (0.01) (0.10) (0.01) 0.02
Cumulative effect of accounting change, net of income
taxes ................................... 0.01 — — —
Net income ................................ 0.36 0.10 0.59 0.45
Diluted earnings per share:
Income from continuing operations ............... 0.34 0.20 0.57 0.42
(Loss) income from discontinued operations, net of
income taxes .............................. (0.01) (0.11) (0.01) 0.02
Cumulative effect of accounting change, net of income
taxes ................................... 0.01 — — —
Net income ................................ 0.34 0.09 0.56 0.44
(1) Net revenue excludes $464 million of revenue related to discontinued operations. Income from continuing operations
includes net restructuring charges of $7 million, divestiture-related charges of $18 million, including $3 million in cost of
sales, a loss of $156 million related to the retirement of debt and a charge of $4 million related to the write-down of an
investment.
(2) Net revenue excludes $463 million of revenue related to discontinued operations. Income from continuing operations
includes losses and impairments on divestitures of $2 million, net restructuring and other charges of $5 million, a $50 million
charge related to an SEC enforcement action, and $573 million related to the retirement of debt. Loss from discontinued
operations, net of tax includes $202 million ($181 million after tax) of long-lived asset and goodwill impairments.
(3) Net revenue excludes $459 million of revenue related to discontinued operations. Income from continuing operations
includes a net restructuring credit of $1 million, charges for the impairment of long-lived assets of $3 million, net gain on the
sale of TGN of $307 million along with $6 million of divestiture-related charges, and a loss of $179 million related to the
retirement of debt.
(4) Net revenue excludes $465 million of revenue related to discontinued operations. Income from continuing operations
includes long-lived asset impairment charges of $3 million, net losses and impairments on divestitures of $10 million, a
$277 million charge related to a patent dispute in the Healthcare segment, a $70 million charge related to certain former
executives’ employment, a loss of $105 million related to the retirement of debt and a $109 million court-ordered restitution
award.
2005 Financials 141