ADT 2006 Annual Report Download - page 154

TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF INCOME
Years ended September 29, 2006, September 30, 2005 and 2004
(in millions, except per share data)
2005 2004
2006 (Restated) (Restated)
Revenue from product sales ................................ $33,146 $ 31,533 $ 29,886
Service revenue ......................................... 7,814 7,772 8,074
Net revenue .......................................... 40,960 39,305 37,960
Cost of product sales ..................................... 22,503 20,804 19,115
Cost of services ......................................... 4,780 4,767 5,145
Selling, general and administrative expenses .................... 7,988 8,229 8,182
Separation costs ........................................ 169 — —
(Gains) losses on divestitures ............................... (44) (274) 116
Restructuring and other charges, net .......................... 20 5 204
Impairment of long-lived assets ............................. 7 6 52
In-process research and development ......................... 63 — —
Operating income ...................................... 5,474 5,768 5,146
Interest income ......................................... 134 123 91
Interest expense ........................................ (713) (815) (956)
Other expense, net ...................................... (11) (911) (286)
Income from continuing operations before income taxes and
minority interest ..................................... 4,884 4,165 3,995
Income taxes ........................................... (799) (1,112) (1,112)
Minority interest ........................................ (10) (9) (14)
Income from continuing operations ......................... 4,075 3,044 2,869
Loss from discontinued operations, net of income taxes ............ (348) (46) (49)
Income before cumulative effect of accounting change ........... 3,727 2,998 2,820
Cumulative effect of accounting change, net of income taxes ........ (14) 21 —
Net income .......................................... $ 3,713 $ 3,019 $ 2,820
Basic earnings per share:
Income from continuing operations ......................... $ 2.03 $ 1.51 $ 1.43
Loss from discontinued operations ......................... (0.17) (0.02) (0.02)
Income before cumulative effect of accounting change ........... 1.86 1.49 1.41
Cumulative effect of accounting change ...................... (0.01) 0.01 —
Net income .......................................... $ 1.85 $ 1.50 $ 1.41
Diluted earnings per share:
Income from continuing operations ......................... $ 1.97 $ 1.44 $ 1.34
Loss from discontinued operations ......................... (0.17) (0.02) (0.02)
Income before cumulative effect of accounting change ........... 1.80 1.42 1.32
Cumulative effect of accounting change ...................... — 0.01 —
Net income .......................................... $ 1.80 $ 1.43 $ 1.32
Weighted-average number of shares outstanding:
Basic ............................................... 2,010 2,012 2,001
Diluted ............................................. 2,084 2,167 2,220
See Notes to Consolidated Financial Statements.
92 2006 Financials