ADT 2015 Annual Report Download - page 130

FORM 10-K
Cash Flows from Investing Activities
In order to maintain and grow our customer base and to expand our infrastructure, we typically reinvest the
cash provided by our operating activities into our business. These investments are intended to grow our customer
base, enhance the overall customer experience, improve productivity of our field workforce and support greater
efficiency of our back office systems and our customer care centers. For fiscal years 2015, 2014 and 2013, our
investing activities consisted of subscriber system asset additions and capital expenditures totaling $802 million,
$742 million and $651 million, respectively. Additionally, during fiscal years 2015, 2014 and 2013, we paid
$559 million, $526 million and $555 million, respectively, for customer contracts for electronic security services
generated under the ADT authorized dealer program and bulk account purchases. See discussion included in FCF
under “Results of Operations—Non-GAAP Measures” for further information. During fiscal year 2014, we
completed the acquisition of Protectron, resulting in cash paid, net of cash acquired, of $517 million.
Additionally, during fiscal year 2013, we completed the acquisitions of Absolute Security and Devcon Security,
resulting in cash paid, net of cash acquired, of $16 million and $146 million, respectively.
Cash Flows from Financing Activities
For fiscal year 2015, the net cash used in financing activities was primarily attributable to $500 million of
repayments of long-term debt primarily related to repayments of outstanding borrowings under our revolving
credit facility, $324 million in repurchases of our common stock under our board approved share repurchase
program, and $142 million in dividend payments on our common stock. These decreases in cash were partially
offset by $755 million of proceeds from long-term borrowings, which consisted of net proceeds from the
issuance of our $300 million December 2014 Debt Offering as well as borrowings under our revolving credit
facility. We also received $32 million in proceeds from the exercise of stock options.
For fiscal year 2014, the net cash provided by financing activities was largely the result of $2.1 billion of
proceeds from long-term borrowings, which consisted of net proceeds from our $1 billion senior unsecured notes
issued in October 2013 and our $500 million senior unsecured notes issued in March 2014 as well as borrowings
under our revolving credit facility. We also received $17 million in proceeds from the exercise of stock options.
These increases in cash were partially offset by $1.4 billion in repurchases of our common stock under our board
approved share repurchase program, $378 million of repayments of long-term debt primarily related to
repayments of outstanding borrowings under our revolving credit facility and $132 million in dividend payments
on our common stock.
For fiscal year 2013, the net cash used in financing activities was primarily the result of $1.2 billion in
repurchases of our common stock under our approved share repurchase program, which were partially funded
with the net proceeds from our $700 million unsecured notes issued in January 2013. Also, during the fourth
quarter of fiscal year 2013, we borrowed $150 million under our revolving credit facility. During fiscal year
2013, we paid $112 million in dividends on our common stock and $6 million for share repurchases related to
shares purchased from employees to cover tax withholdings. We also received $85 million in proceeds from the
exercise of stock options and $61 million in funds from Tyco and Pentair, which related to the allocation of funds
between the companies as outlined in the Separation and Distribution Agreement between Tyco and ADT.
56