ADT 2011 Annual Report Download - page 161

non-U.S. pension plans. We also made voluntary contributions of approximately $15 million, nil and
$22 million to our U.S. plans during the years ended September 30, 2011, September 24, 2010 and
September 25, 2009. We anticipate contributing at least the minimum required to our pension plans in
fiscal year 2012 of $44 million for our U.S. plans and $60 million for our non-U.S. plans.
Income taxes paid, net of refunds, related to continuing operations were $196 million,
$255 million, and $281 million in 2011, 2010 and 2009, respectively.
Net interest paid, related to continuing operations were $195 million, $234 million, and
$249 million in 2011, 2010 and 2009, respectively.
Cash flow from investing activities
We made capital expenditures of $788 million, $718 million, and $702 million during 2011, 2010
and 2009, respectively. The level of capital expenditures in fiscal year 2012 is expected to exceed the
spending levels in fiscal year 2011 and is also expected to exceed depreciation expense.
During 2011, 2010 and 2009, we paid approximately $614 million, $559 million, and $543 million of
cash, respectively, to acquire approximately 565,000, 501,000 and 512,000 customer contracts for
electronic security services within our Tyco Security Solutions segment.
During 2011, we paid cash for acquisitions included in continuing operations totaling $656 million,
net of cash acquired of $4 million, which primarily related to the acquisitions of Signature Security
Group within our Tyco Security Solutions segment, KEF Holdings Ltd. within our Tyco Flow Control
segment and Chemguard within our Tyco Fire Protection segment. During 2010, cash paid for
acquisitions included in continuing operations totaled $600 million, net of cash acquired of
$137 million, which primarily related to the acquisition of Broadview Security within our Tyco Security
Solutions segment and Hiter within our Tyco Flow Control segment.
During 2011, we received cash proceeds, net of cash divested of approximately $1 billion for
divestitures. The cash proceeds primarily related to the sale of a majority interest in our Electrical and
Metal Products business of $713 million, which is presented in continuing operations and $264 million
for the sale of our European water business which is presented in discontinued operations. See Note 3
to our Consolidated Financial Statements for further information.
Cash flow from financing activities
On January 12, 2011, TIFSA, our finance subsidiary, issued $250 million aggregate principal
amount of 3.75% notes due on January 15, 2018 and $250 million aggregate principal amount of
4.625% notes due on January 15, 2023, which are fully and unconditionally guaranteed by the
Company. TIFSA received net cash proceeds of approximately $494 million after deducting debt
issuance costs and a debt discount. The net proceeds, along with other available funds, were used to
fund the repayment of all of our outstanding 6.75% notes due in February 2011 with a principal
amount of $516 million.
In connection with the acquisition of KEF during the year ended September 30, 2011, the
Company acquired $64 million of debt which was substantially paid as of September 30, 2011.
During the second half of fiscal 2011, TIFSA issued commercial paper to U.S. institutional
accredited investors and qualified institutional buyers. Borrowings under the commercial paper program
are available for general corporate purposes. As of September 30, 2011, TIFSA had no commercial
paper outstanding. During the first quarter of fiscal 2010, TIFSA had made payments of $200 million
to extinguish all of its commercial paper outstanding.
On May 5, 2010, TIFSA issued $500 million aggregate principal amount of 3.375% notes due,
which are fully and unconditionally guaranteed by the Company. TIFSA received net proceeds of
58 2011 Financials