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FORM 10-K
THE ADT CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
Fiscal Years Ended September 27, 2013, September 28, 2012 and September 30, 2011
(in millions)
2013 2012 2011
Cash Flows from Operating Activities:
Net income ................................................................... $ 421 $ 394 $ 376
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible asset amortization ................................... 942 871 825
Amortization of deferred subscriber acquisition costs .............................. 123 111 102
Amortization of deferred subscriber acquisition revenue ............................ (135) (120) (114)
Stock-based compensation expense ............................................ 19 7 9
Deferred income taxes ...................................................... 207 22 (53)
Provision for losses on accounts receivable and inventory .......................... 51 53 46
Other non-cash items ....................................................... 7 12 3
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable, net ................................................. (55) (33) (45)
Inventories ........................................................... (25) (30) (10)
Accounts payable ...................................................... 58 (9) 35
Accrued and other liabilities .............................................. 35 19 (47)
Income taxes, net ...................................................... 16 184 266
Deferred subscriber acquisition costs ....................................... (181) (147) (131)
Deferred subscriber acquisition revenue .................................... 232 161 115
Other ................................................................ (49) (2) 62
Net cash provided by operating activities ................................ 1,666 1,493 1,439
Cash Flows from Investing Activities:
Dealer generated customer accounts and bulk account purchases ......................... (555) (648) (581)
Subscriber system assets ......................................................... (580) (378) (290)
Capital expenditures ............................................................ (71) (61) (31)
Acquisition of businesses, net of cash acquired ....................................... (162) — —
Other ........................................................................ (26) (9) (7)
Net cash used in investing activities .................................... (1,394) (1,096) (909)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options ............................................ 85 — —
Repurchases of common stock under approved program ................................ (1,235) — —
Repurchases of common stock for employee related program ............................ (6) — —
Dividends paid ................................................................ (112) — —
Proceeds received for allocation of funds related to the Separation ........................ 61 — —
Proceeds from long-term borrowings ............................................... 850 2,489 —
Repayment of long-term debt ..................................................... (3) (1) (1)
Debt issuance costs ............................................................. (6) (26) —
Allocated debt activity .......................................................... — (1,482) (5)
Change in parent company investment .............................................. — (1,148) (574)
Change in due to (from) Tyco and affiliates .......................................... — (63) 32
Net cash used in financing activities ................................... (366) (231) (548)
Effect of currency translation on cash .............................................. (2) 3 (1)
Net (decrease) increase in cash and cash equivalents ................................ (96) 169 (19)
Cash and cash equivalents at beginning of year .................................... 234 65 84
Cash and cash equivalents at end of year .......................................... $ 138 $ 234 $ 65
Supplementary Cash Flow Information:
Interest paid .............................................................. $ 107 $ 83 $ 84
Income taxes paid, net of refunds .............................................. (2) 30 16
See Notes to Consolidated and Combined Financial Statements
68