ADT 2006 Annual Report Download - page 161

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation, Restatement and Summary of Significant Accounting Policies (Continued)
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.
Principles of Consolidation—Tyco is a holding company which conducts its business through its
operating subsidiaries. The Company is a global, diversified company that provides products and
services in four business segments: Electronics, Fire and Security, Healthcare and Engineered Products
and Services (see Note 23). The Company consolidates companies in which it owns or controls more
than fifty percent of the voting shares or has the ability to control through similar rights. Also, the
Company consolidates variable interest entities in which the Company bears a majority of the risk to
the entities’ expected losses or stands to gain from a majority of the entities’ expected returns. All
intercompany transactions have been eliminated. The results of companies acquired or disposed of
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2006 Financials