ADT 2006 Annual Report Download - page 103

Years Ended September 30,
2005 2004
Amounts Amounts
Previously As Previously As
Reported Restated Reported Restated
($ in millions, except per share data)
Consolidated Statements of Income Data:
Selling, general and administrative expenses ............. $ 8,205 $ 8,229 $ 8,097 $ 8,182
Operating income ................................ 5,792 5,768 5,231 5,146
Income from continuing operations before income taxes and
minority interest ............................... 4,189 4,165 4,080 3,995
Income taxes ................................... (1,123) (1,112) (1,138) (1,112)
Income from continuing operations ................... 3,057 3,044 2,928 2,869
Income before cumulative effect of accounting change ..... 3,011 2,998 2,879 2,820
Net income ..................................... $ 3,032 $ 3,019 $ 2,879 $ 2,820
Basic earnings per share:
Income from continuing operations .................. $ 1.52 $ 1.51 $ 1.46 $ 1.43
Income before cumulative effect of accounting change .... 1.50 1.49 1.44 1.41
Net income ................................... $ 1.51 $ 1.50 $ 1.44 $ 1.41
Diluted earnings per share:
Income from continuing operations .................. $ 1.45 $ 1.44 $ 1.37 $ 1.34
Income before cumulative effect of accounting change .... 1.42 1.42 1.35 1.32
Net income ................................... $ 1.43 $ 1.43 $ 1.35 $ 1.32
As of September 30,
2005
Amounts
Previously As
Reported Restated
($ in millions)
Consolidated Balance Sheet Data:
Assets
Other assets .................................................. $ 5,225 $ 5,290
Total Assets .................................................. $62,621 $62,686
Liabilities and Shareholders’ Equity
Contributed surplus, net ......................................... $15,249 $15,507
Accumulated earnings(1) ......................................... 7,993 7,800
Total Shareholders’ Equity ....................................... 32,450 32,515
Total Liabilities and Shareholders’ Equity ............................. $62,621 $62,686
(1) The impact of the restatement described above on accumulated earnings as of September 30, 2004 and October 1, 2003 was
a decrease of $180 million and $121 million, respectively.
Overview
As previously reported in our periodic filings, on January 13, 2006, the Company announced that
its Board of Directors approved a plan to separate the Company into three separate, publicly traded
companies—Tyco Healthcare, one of the world’s leading diversified healthcare companies; Tyco
Electronics, the world’s largest passive electronic components manufacturer; and a combination of Tyco
Fire and Security and Engineered Products and Services, a global business with leading positions in
residential and commercial security, fire protection, and industrial products and services (the ‘‘Proposed
Separation’’). After thorough reviews of strategic options with our Board of Directors, we believe that
this strategy is the best way to position our market-leading companies for sustained growth and value
creation.
Following the Proposed Separation, Tyco’s shareholders will own 100% of the equity in all three
companies through tax-free stock dividends. Each company will have its own independent Board of
2006 Financials 41