ADT 2007 Annual Report Download - page 259

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
25. Tyco International Finance S.A.
TIFSA is a wholly owned subsidiary of the Company. TIFSA, which was formed in
December 2006, is a holding company established in connection with the Separation as the successor
company to TIGSA. During the third quarter of 2007, TIGSA’s assets and liabilities were contributed to
TIFSA, Covidien and Tyco Electronics. TIGSA was put into liquidation on June 1, 2007. TIFSA directly
and indirectly owns substantially all of the operating subsidiaries of the Company, performs treasury
operations and has assumed the indebtedness of TIGSA. Historically, TIGSA’s debt and currently
TIFSA’s debt is fully and unconditionally guaranteed by Tyco (see Note 13).
The following tables present condensed consolidating financial information for Tyco, TIFSA and all
other subsidiaries. Condensed financial information for Tyco and TIFSA on a stand-alone basis is
presented using the equity method of accounting for subsidiaries.
CONSOLIDATING STATEMENT OF OPERATIONS
For the Year Ended September 28, 2007
($ in millions)
Tyco Tyco
International International Other Consolidating
Ltd. Finance S.A. Subsidiaries Adjustments Total
Net revenue ..................... $ — $ — $18,781 $ — $18,781
Cost of product sales .............. — — 8,723 — 8,723
Cost of services .................. — — 3,718 — 3,718
Selling, general and administrative
expenses ...................... 84 (46) 4,790 — 4,828
Class action settlement, net .......... 2,862 — — — 2,862
Separation costs .................. 99 1 5 — 105
Goodwill impairment .............. — — 46 — 46
Restructuring and asset impairment
charges, net ................... — — 210 — 210
Losses on divestitures .............. — — 4 — 4
Operating (loss) income .......... (3,045) 45 1,285 — (1,715)
Interest income .................. 42 9 51 — 102
Interest expense .................. (41) (257) (15) — (313)
Other expense, net ................ — (253) (2) — (255)
Equity in net income of subsidiaries .... 1,750 685 — (2,435) —
Intercompany interest and fees ....... (1,225) 414 811 — —
(Loss) income from continuing
operations before income taxes and
minority interest .............. (2,519) 643 2,130 (2,435) (2,181)
Income taxes .................... — 11 (345) — (334)
Minority interest .................. — — (4) — (4)
(Loss) income from continuing
operations ................... (2,519) 654 1,781 (2,435) (2,519)
Income from discontinued operations,
net of income taxes .............. 777 751 1,437 (2,188) 777
Net (loss) income ............... $(1,742) $1,405 $ 3,218 $(4,623) $ (1,742)
2007 Financials 167