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FORM 10-K
(1) Long-lived assets are comprised primarily of subscriber system assets, net; property and equipment, net;
deferred subscriber acquisition costs, net; and dealer intangibles, net and exclude goodwill, other intangible
assets and other assets.
13. Quarterly Financial Data (Unaudited)
Summarized quarterly financial data for fiscal years 2013 and 2012 is as follows ($ in millions, except per
share data):
2013
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Revenue ......................................... $809 $821 $833 $846
Gross profit ....................................... 473 480 490 488
Net income ....................................... 105 107 113 96
Net income per share:
Basic ........................................ $0.45 $0.47 $0.52 $0.45
Diluted ...................................... $0.44 $0.47 $0.52 $0.45
2012
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Revenue ......................................... $795 $807 $814 $812
Gross profit ....................................... 450 458 470 476
Net income ....................................... 93 105 102 94
Net income per share(1):
Basic ........................................ $0.40 $0.45 $0.44 $0.41
Diluted ...................................... $0.39 $0.44 $0.43 $0.40
(1) The Separation was completed on September 28, 2012, and the Company issued 231 million shares of
common stock. This initial share amount has been used to calculate earnings per share for all periods
presented for fiscal year 2012. See Note 11 for additional information on earnings per share.
14. Subsequent Events
Share Repurchase Program
Between September 28, 2013 and November 13, 2013, the Company repurchased 7.3 million shares of its
common stock for approximately $300 million.
On November 18, 2013, the Company’s board of directors authorized a $1 billion increase to the $2 billion,
three-year share repurchase program that was previously approved on November 26, 2012. Additionally, on
November 19, 2013, the Company entered into an accelerated share repurchase agreement under which it will
repurchase approximately $400 million of ADT’s common stock. This accelerated share repurchase program will
be funded with available cash on hand. The actual number of shares repurchased will be determined upon
completion of the program, which is expected to occur by March 25, 2014.
Debt
On October 1, 2013, the Company issued $1.0 billion aggregate principal amount of 6.250% unsecured
notes due October 2021 to certain institutional investors pursuant to certain exemptions from registration under
the Securities Act of 1933, as amended. Net cash proceeds from the issuance of this term indebtedness totaled
$987 million, of which $150 million was used to repay the outstanding borrowings under the Company’s
99