ADT 2014 Annual Report Download - page 60

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GAAP TO NON-GAAP RECONCILIATIONS—CONTINUED
(Unaudited)
SSFCF Before Special Items, excluding Reliance Protectron and Discretionary
Adjustments
For the
Quarter Ended
($ in millions) September 26,
2014
Last quarter, annualized EBITDA before special items (pre-SAC), excluding Reliance Protectron $ 2,204
SAC required to maintain recurring revenue(1) (1,238)
Maintenance capital expenditures (10)
SSFCF before special items, excluding Reliance Protectron 956
Discretionary adjustments (8)
SSFCF before special items, excluding Reliance Protectron and discretionary adjustments $ 948
(1) SAC required to maintain recurring revenue excludes Reliance Protectron and is calculated as follows:
For the
Quarter Ended
($ in millions) September 26,
2014
Last quarter average recurring revenue under contract for the period $ 264
Trailing twelve month disconnects net of price escalation(2) 14.7%
Last quarter gross recurring revenue creation multiple(3) 31.9
SAC required to maintain recurring revenue $ 1,238
(2) Average trailing twelve month recurring revenue disconnected net of price escalations. Disconnects account for dealer chargebacks.
(3) Gross creation cost includes amount held back from dealers for chargebacks.
Recurring Revenue, excluding Reliance Protectron
For the
Twelve
Months Ended
For the
Twelve
Months Ended
($ in millions) September 26,
2014 September 27,
2013 Change
Recurring revenue, excluding Reliance Protectron $3,124 $3,041 2.7%
Reliance Protectron recurring revenue 28 — N/A
Other revenue 256 268 (4.5)%
Total revenue $3,408 $3,309 3.0%
52 The ADT Corporation 2015 Proxy Statement
PROXY STATEMENT