ADT 2010 Annual Report Download - page 167

TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended September 24, 2010, September 25, 2009 and September 26, 2008
($ in millions)
2010 2009 2008
Cash Flows From Operating Activities:
Net income (loss) attributable to Tyco common shareholders ............................ $1,132 ($1,798) $ 1,553
Noncontrolling interest in subsidiaries net income ................................. 7 4 1
Income from discontinued operations, net of income taxes ............................ (7) (47) (491)
Income (loss) from continuing operations ........................................ 1,132 (1,841) 1,063
Adjustments to reconcile net cash provided by operating activities:
Goodwill and intangible asset impairments ..................................... — 2,705 10
Depreciation and amortization ............................................. 1,203 1,126 1,148
Non-cash compensation expense ............................................ 120 103 99
Deferred income taxes .................................................. (129) (90) (99)
Provision for losses on accounts receivable and inventory ............................. 127 156 133
Loss (gain) on the retirement of debt ......................................... 87 (2) 258
Non-cash restructuring and asset impairment charges, net ............................ (1) 23 34
(Gains) losses on divestitures .............................................. (41) 13 —
(Gains) losses on investments, net ........................................... (11) (11) 14
Debt and refinancing cost amortization ........................................ 21 25 59
Other non-cash items .................................................. 16 52 29
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net ............................................... (22) 191 (186)
Contracts in progress ................................................. (32) 106 (26)
Inventories ....................................................... (108) 346 (140)
Prepaid expenses and other current assets ..................................... 88 2 9
Accounts payable ................................................... 119 (337) (6)
Accrued and other liabilities ............................................. 58 (46) (155)
Income taxes, net ................................................... 12 (138) (83)
Class action settlement liability ........................................... — — (3,020)
Other ........................................................... (9) 4 (53)
Net cash provided by (used in) operating activities .............................. 2,630 2,387 (912)
Net cash provided by discontinued operating activities ............................ 27 34 22
Cash Flows From Investing Activities:
Capital expenditures .................................................... (718) (702) (722)
Proceeds from disposal of assets ............................................. 29 12 25
Acquisition of businesses, net of cash acquired .................................... (600) (48) (347)
Accounts purchased by ADT ............................................... (559) (543) (376)
Divestiture of businesses, net of cash retained ..................................... 21 2 1
Class action settlement escrow .............................................. — — 2,960
Decrease in investments .................................................. 59 17 32
Decrease (increase) in restricted cash .......................................... 7 1 (17)
Other ............................................................. (14) (1) (1)
Net cash (used in) provided by investing activities .............................. (1,775) (1,262) 1,555
Net cash (used in) provided by discontinued investing activities ...................... (12) 59 902
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt ....................................... — 26 16
Repayment of short-term debt .............................................. (243) (552) (377)
Proceeds from issuance of long-term debt ....................................... 1,001 3,424 3,864
Repayment of long-term debt ............................................... (962) (2,890) (4,050)
Proceeds from exercise of share options ......................................... 49 1 49
Dividends paid ........................................................ (416) (388) (292)
Repurchase of common shares by subsidiary ...................................... — (3) (854)
Repurchase of common shares by treasury ....................................... (900) — (192)
Transfer from discontinued operations .......................................... 15 93 928
Other ............................................................. 15 9 (72)
Net cash used in financing activities ....................................... (1,441) (280) (980)
Net cash used in discontinued financing activities ............................... (15) (93) (924)
Effect of currency translation on cash .......................................... 7 (10) (38)
Net (decrease) increase in cash and cash equivalents ................................ (579) 835 (375)
Cash and cash equivalents at beginning of period .................................. 2,354 1,519 1,894
Cash and cash equivalents at end of period ...................................... $1,775 $ 2,354 $ 1,519
Supplementary Cash Flow Information:
Interest paid ......................................................... $ 267 $ 294 $ 313
Income taxes paid, net of refunds ............................................ $ 255 $ 281 $ 489
Supplementary Non-Cash Investing Information:
Issuance of shares in connection with the acquisition Brinks Home Security, Inc. ............... $1,362 $ — $ —
Supplementary Non-Cash Financing Information:
Conversion of debt to common shares .......................................... $ — $ — $ 10
See Notes to Consolidated Financial Statements.
2010 Financials 79