ADT 2011 Annual Report Download - page 266

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
26. Tyco International Finance S.A.
TIFSA, a wholly-owned subsidiary of the Company, has public debt securities outstanding which
are fully and unconditionally guaranteed by Tyco. See Note 12. 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.
For the year ended September 30, 2011, the operating results of discontinued operations are
reflected within the equity in net income of subsidiaries caption in the Condensed Consolidating
Statement of Operations. For the years ended September 24, 2010 and September 25, 2009, immaterial
amounts for Tyco and TIFSA were reflected in the income from discontinued operations, net of income
taxes caption and have been conformed to the current year presentation herein.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Year Ended September 30, 2011
($ in millions)
Tyco Tyco
International International Other Consolidating
Ltd. Finance S.A. Subsidiaries Adjustments Total
Net revenue ..................... $ — $ — $17,355 $ — $17,355
Cost of product sales and services ..... — — 10,745 — 10,745
Selling, general and administrative
expenses ...................... 32 12 4,591 — 4,635
Restructuring, asset impairment and
divestiture charges (gain), net ....... 3 — (147) — (144)
Operating (loss) income .......... (35) (12) 2,166 — 2,119
Interest income .................. — — 34 — 34
Interest expense .................. — (237) (7) — (244)
Other expense, net ................ (7) — (9) — (16)
Equity in net income of subsidiaries .... 2,877 2,176 — (5,053) —
Intercompany interest and fees ....... (1,098) 337 761 — —
Income from continuing operations
before income taxes ............ 1,737 2,264 2,945 (5,053) 1,893
Income tax expense ................ (4) (25) (297) — (326)
Income from continuing operations . . 1,733 2,239 2,648 (5,053) 1,567
Income from discontinued operations,
net of income taxes .............. — — 168 — 168
Net income .................... 1,733 2,239 2,816 (5,053) 1,735
Less: noncontrolling interest in
subsidiaries net income ........... — — 2 — 2
Net income attributable to Tyco
common shareholders .......... $1,733 $2,239 $ 2,814 $(5,053) $ 1,733
2011 Financials 163