ADT 2006 Annual Report Download - page 157

TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended September 29, 2006, September 30, 2005 and 2004
(in millions)
2005 2004
2006 (Restated) (Restated)
Cash Flows From Operating Activities:
Net income ..................................................... $3,713 $ 3,019 $ 2,820
Loss from discontinued operations, net of income taxes ......................... 348 46 49
Cumulative effect of accounting change, net of income taxes ...................... 14 (21) —
Income from continuing operations ....................................... 4,075 3,044 2,869
Adjustments to reconcile net cash provided by operating activities:
(Gains) losses on divestitures ......................................... (44) (271) 111
Non-cash restructuring and other charges (credits), net ......................... 2 (19) (35)
Impairment of long-lived assets ........................................ 7 6 51
In-process research and development .................................... 63 — —
(Gains) loss on investments, net ....................................... (30) (24) 1
Depreciation and amortization ........................................ 2,065 2,084 2,098
Non-cash compensation expense ....................................... 275 99 121
Deferred income taxes ............................................. 72 (28) 167
Provision for losses on accounts receivable and inventory ........................ 174 232 317
Debt and refinancing cost amortization ................................... 16 30 55
Loss on the retirement of debt ........................................ 2 1,013 284
Other non-cash items .............................................. (14) 49 39
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net ........................................... (206) (701) (149)
Decrease in sale of accounts receivable ................................. (9) (18) (929)
Contracts in progress ............................................ (66) (43) 16
Inventories ................................................... (680) (125) (247)
Other current assets ............................................. 31 79 91
Accounts payable ............................................... 435 422 84
Accrued and other liabilities ........................................ (332) 144 (108)
Income taxes ................................................. (140) 328 404
Other ...................................................... (102) (147) (35)
Net cash provided by operating activities ............................... 5,594 6,154 5,205
Net cash (used in) provided by discontinued operating activities ................. (28) 64 206
Cash Flows From Investing Activities:
Capital expenditures ................................................ (1,569) (1,354) (1,127)
Proceeds from disposal of assets ........................................ 55 91 140
Acquisition of customer accounts (ADT dealer program) ......................... (373) (328) (254)
Acquisition of businesses, net of cash acquired ................................ (413) (82) (15)
Purchase accounting and holdback liabilities ................................. (19) (47) (104)
Divestiture of businesses, net of cash retained ................................ 934 295 236
Decrease (increase) in investments ....................................... 58 (272) 423
Decrease (increase) in restricted cash ..................................... 12 (2) 342
Other ......................................................... (11) (16) (25)
Net cash used in investing activities .................................. (1,326) (1,715) (384)
Net cash used in discontinued investing activities .......................... (100) (39) (48)
Cash Flows From Financing Activities:
Net repayment of short-term debt ....................................... (1,901) (2,023) (2,650)
Proceeds from issuance of long-term debt ................................... 700 — 2,224
Repayment of long-term debt, including debt tenders ............................ (32) (2,956) (4,332)
Proceeds from exercise of share options .................................... 250 226 155
Dividends paid ................................................... (806) (628) (100)
Repurchase of common shares by subsidiary ................................. (2,544) (300) (1)
Transfer (to) from discontinued operations .................................. (241) (78) 169
Other ......................................................... (22) (23) (24)
Net cash used in financing activities .................................. (4,596) (5,782) (4,559)
Net cash provided by (used in) discontinued financing activities ................. 137 (16) (186)
Effect of currency translation on cash ..................................... 42 65 45
Net (decrease) increase in cash and cash equivalents ............................ (277) (1,269) 279
Less: net (increase) decrease in cash related to discontinued operations ................ (9) (9) 28
Cash and cash equivalents at beginning of year ............................... 3,212 4,490 4,183
Cash and cash equivalents at end of year ................................... $2,926 $ 3,212 $ 4,490
Supplementary Cash Flow Information:
Interest paid .................................................... $ 717 $ 850 $ 975
Income taxes paid, net of refunds ........................................ 862 798 550
See Notes to Consolidated Financial Statements.
2006 Financials 95