ADT 2011 Annual Report Download - page 208

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Acquisitions (Continued)
Actual BHS Financial Results
BHS actual results from the acquisition date, May 14, 2010, which are included in the
Consolidated Statement of Operations for the year ended September 24, 2010 are as follows ($ in
millions):
For the Year Ended
September 24, 2010
Net revenue ........................................ $193
Loss from continuing operations attributable to Tyco common
shareholders ...................................... $(25)
Supplemental Pro Forma Financial Information (unaudited)
The supplemental pro forma financial information for the year ended September 24, 2010 and
September 25, 2009 are as follows ($ in millions):
For the Year Ended For the Year Ended
September 24, 2010 September 25, 2009
Net revenue ........................... $17,367 $17,415
Income (loss) from continuing operations
attributable to Tyco common shareholders . . . 1,149 (1,845)
Income (loss) from continuing operations per
share:
Basic earnings (loss) per share attributable to
Tyco common shareholders .............. $ 2.21 $ (3.63)
Diluted earnings (loss) per share attributable to
Tyco common shareholders .............. $ 2.20 $ (3.63)
The supplemental pro forma financial information is based on the historical financial information
for Tyco and BHS. The supplemental pro forma financial information for the period ended
September 24, 2010 utilized BHS’ historical financial information for its fiscal fourth quarter ended
December 31, 2009 and the pre-acquisition period from January 1, 2010 through the acquisition date.
The supplemental pro forma financial information reflect primarily the following pro forma pre-tax
adjustments:
• Elimination of BHS historical intangible asset amortization and property, plant and equipment
depreciation expense;
• Elimination of BHS historical deferred acquisition costs amortization;
• Elimination of BHS historical deferred revenue amortization;
• Additional amortization and depreciation expense related to the fair value of identifiable
intangible assets and property, plant and equipment acquired;
• Reduction of interest income on cash used to fund the acquisition and Tyco dividends assumed
to be paid to BHS shareholders; and
• All of the above pro forma adjustments were tax effected using a statutory tax rate of 39%
2011 Financials 105