ADT 2014 Annual Report Download - page 135

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FORM 10-K
THE ADT CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
Fiscal Years Ended September 26, 2014, September 27, 2013 and September 28, 2012
(in millions)
2014 2013 2012
Cash Flows from Operating Activities:
Net income .................................................................. $ 304 $ 421 $ 394
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible asset amortization .................................. 1,040 942 871
Amortization of deferred subscriber acquisition costs ............................. 131 123 111
Amortization of deferred subscriber acquisition revenue ........................... (151) (135) (120)
Stock-based compensation expense ........................................... 20 19 7
Deferred income taxes ...................................................... 123 207 22
Provision for losses on accounts receivable and inventory .......................... 41 51 53
Other non-cash items ....................................................... 3 7 12
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable, net ................................................ (52) (55) (33)
Inventories ........................................................... (5) (25) (30)
Accounts payable ..................................................... (18) 58 (9)
Accrued and other liabilities ............................................. (7) 35 19
Income taxes, net ...................................................... (30) 16 184
Deferred subscriber acquisition costs ...................................... (184) (181) (147)
Deferred subscriber acquisition revenue .................................... 226 232 161
Other ............................................................... 78 (49) (2)
Net cash provided by operating activities ........................... 1,519 1,666 1,493
Cash Flows from Investing Activities:
Dealer generated customer accounts and bulk account purchases ........................ (526) (555) (648)
Subscriber system assets ........................................................ (658) (580) (378)
Capital expenditures ........................................................... (84) (71) (61)
Acquisition of businesses, net of cash acquired ...................................... (517) (162) —
Other investing ............................................................... (7) (26) (9)
Net cash used in investing activities ............................... (1,792) (1,394) (1,096)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options ............................................ 17 85 —
Repurchases of common stock under approved program ............................... (1,384) (1,235) —
Dividends paid ................................................................ (132) (112) —
Proceeds received for allocation of funds related to the Separation ....................... — 61 —
Proceeds from long-term borrowings .............................................. 2,100 850 2,489
Repayment of long-term debt .................................................... (378) (3) (1)
Allocated debt activity ......................................................... — — (1,482)
Change in parent company investment ............................................. — — (1,148)
Change in due to from Tyco and affiliates .......................................... — — (63)
Other financing ............................................................... (21) (12) (26)
Net cash provided by (used in) financing activities ....................... 202 (366) (231)
Effect of currency translation on cash .............................................. (1) (2) 3
Net (decrease) increase in cash and cash equivalents ............................... (72) (96) 169
Cash and cash equivalents at beginning of year .................................... 138 234 65
Cash and cash equivalents at end of year ......................................... $ 66 $ 138 $ 234
Supplementary Cash Flow Information:
Interest paid .............................................................. $ 171 $ 107 $ 83
Income taxes paid, net of refunds ............................................. 61 (2) 30
See Notes to Consolidated and Combined Financial Statements
69