ADT 2011 Annual Report Download - page 162

approximately $495 million after deducting debt issuance costs and a debt discount. On May 28, 2010,
the Company used the net proceeds of the aforementioned offering and additional cash on hand to
redeem all of its 6.375% public notes due 2011, 7% notes due 2028 and 6.875% notes due 2029,
outstanding at that time, which aggregated $878 million in principal amount.
On October 5, 2009, TIFSA issued $500 million aggregate principle amount of 4.125% notes due
2014, which are fully and unconditionally guaranteed by the Company. TIFSA received net proceeds of
approximately $495 million after deducting debt issuance costs and a debt discount.
On January 9, 2009, TIFSA issued $750 million aggregate principal amount of 8.5% notes due on
January 15, 2019, which are fully and unconditionally guaranteed by the Company. TIFSA received net
proceeds of approximately $745 million after underwriting discounts and offering expenses. On
January 15, 2009, TIFSA made a payment of $215 million to extinguish all of its 6.125% notes, due
2009 which matured on the same date. Additionally, in November 2008, TIFSA made a payment of
$300 million to extinguish all of its 6.125% notes due 2008.
Pursuant to our share repurchase program, we may repurchase Tyco shares from time to time in
open market purchases at prevailing market prices, in negotiated transactions off the market, or
pursuant to an approved 10b5-1 trading plan in accordance with applicable regulations. During the year
ended September 30, 2011, we repurchased approximately 30 million common shares for approximately
$1.3 billion under the 2011, 2010 and 2008 share repurchase programs, which completed both the 2010
and 2008 programs. During the year ended September 24, 2010, we repurchased approximately
24 million common shares for approximately $900 million under the 2008 share repurchase program.
On March 9, 2011, our shareholders approved an annual dividend on our common shares of
$1.00 per share, to be paid from contributed surplus in four installments of $0.25 per share. During the
2011, 2010 and 2009 fiscal years, we paid cash dividends of approximately $458 million, $416 million
and $388 million, respectively. See Note 17 to our Consolidated Financial Statements for further
information.
Management believes that cash generated by or available to us should be sufficient to fund our
capital and operational business needs for the foreseeable future, including capital expenditures,
quarterly dividend payments, share repurchases and separation-related expenses.
Commitments and Contingencies
For a detailed discussion of contingencies related to tax and litigation matters and governmental
investigations, see Notes 7 and 15 to our Consolidated Financial Statements.
Contractual Obligations
Contractual obligations and commitments for debt, minimum lease payment obligations under non-
cancellable operating leases and obligations as of September 30, 2011 are as follows ($ in millions):
Fiscal Year
2012 2013 2014 2015 2016 Thereafter Total
Debt principal(1) ............................ $ — $ — $ 656 $500 $500 $2,379 $4,035
Interest payments(2) .......................... 240 240 220 190 171 571 1,632
Capital leases(3) ............................. 3 4 5 6 8 30 56
Operating leases ............................ 228 179 133 105 62 143 850
Purchase obligations(4) ........................ 492 32 5 1 — — 530
Total contractual cash obligations(5) ............... $963 $455 $1,019 $802 $741 $3,123 $7,103
(1) Excludes debt discount, swap activity and interest.
2011 Financials 59