ADT 2012 Annual Report Download - page 154

THE ADT CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
Fiscal Years Ended September 28, 2012, September 30, 2011 and September 24, 2010
(in millions)
2012 2011 2010
Cash Flows from Operating Activities:
Net income .......................................................... $ 394 $ 376 $ 239
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible asset amortization .......................... 871 825 687
Amortization of deferred subscriber acquisition costs .................... 111 102 98
Amortization of deferred subscriber acquisition revenue .................. (120) (114) (111)
Non-cash compensation expense ..................................... 7 9 8
Deferred income taxes ............................................. 22 (53) (61)
Provision for losses on accounts receivable and inventory ................. 53 46 44
Other non-cash items .............................................. 12 3 4
Changes in operating assets and liabilities, net of the effects of acquisitions: . .
Accounts receivable, net ....................................... (33) (45) (38)
Inventories .................................................. (30) (10) (3)
Accounts payable ............................................. (9) 35 10
Accrued and other liabilities .................................... 19 (47) 6
Income taxes, net ............................................. 184 266 185
Deferred subscriber acquisition costs ............................. (147) (131) (110)
Deferred subscriber acquisition revenue ........................... 161 115 111
Other ...................................................... (2) 62 1
Net cash provided by operating activities ...................... 1,493 1,439 1,070
Cash Flows from Investing Activities:
Dealer generated customer accounts and bulk account purchases ............... (648) (581) (532)
Subscriber system assets ............................................... (378) (290) (247)
Capital expenditures .................................................. (61) (31) (22)
Acquisition of businesses, net of cash acquired ............................. — — (449)
Other .............................................................. (9) (7) —
Net cash used in investing activities .......................... (1,096) (909) (1,250)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt ................................. 2,489 — —
Repayment of long-term debt ........................................... (1) (1) (1)
Debt issuance costs ................................................... (26) — —
Allocated debt activity ................................................. (1,482) (5) 371
Change in due to (from) Tyco and affiliates ................................ (63) 32 —
Change in parent company investment .................................... (1,148) (574) (140)
Net cash (used in) provided by financing activities .............. (231) (548) 230
Effect of currency translation on cash ..................................... 3 (1) 2
Net increase (decrease) in cash and cash equivalents ....................... 169 (19) 52
Cash and cash equivalents at beginning of year ........................... 65 84 32
Cash and cash equivalents at end of year ................................ $ 234 $ 65 $ 84
Supplementary Cash Flow Information:
Interest paid ..................................................... $ 83 $ 84 $ 98
Income taxes paid, net of refunds .................................... 30 16 34
See Notes to Consolidated and Combined Financial Statements
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