ADT 2015 Annual Report Download - page 148

FORM 10-K
THE ADT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Years Ended September 25, 2015, September 26, 2014 and September 27, 2013
(in millions)
2015 2014 2013
Cash Flows from Operating Activities:
Net income ......................................................... $ 296 $ 304 $ 421
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible asset amortization ......................... 1,124 1,040 942
Amortization of deferred subscriber acquisition costs .................... 141 131 123
Amortization of deferred subscriber acquisition revenue ................. (163) (151) (135)
Stock-based compensation expense .................................. 23 20 19
Deferred income taxes ............................................ 124 123 207
Provision for losses on accounts receivable and inventory ................ 60 41 51
Other non-cash items .............................................437
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable, net ...................................... (63) (52) (55)
Inventories ................................................. (1) (5) (25)
Accounts payable ............................................ (1) (18) 58
Accrued and other liabilities ................................... 24 (7) 35
Income taxes, net ............................................ (4) (30) 16
Deferred subscriber acquisition costs ............................. (209) (184) (181)
Deferred subscriber acquisition revenue .......................... 231 226 232
Other ...................................................... 19 78 (49)
Net cash provided by operating activities ..................... 1,605 1,519 1,666
Cash Flows from Investing Activities:
Dealer generated customer accounts and bulk account purchases ............... (559) (526) (555)
Subscriber system assets .............................................. (699) (658) (580)
Capital expenditures .................................................. (103) (84) (71)
Acquisition of businesses, net of cash acquired ............................. (4) (517) (162)
Other investing ...................................................... (41) (7) (26)
Net cash used in investing activities ......................... (1,406) (1,792) (1,394)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options .................................. 32 17 85
Repurchases of common stock under approved program ..................... (324) (1,384) (1,235)
Dividends paid ...................................................... (142) (132) (112)
Proceeds received for allocation of funds related to the Separation ............. — — 61
Proceeds from long-term borrowings ..................................... 755 2,100 850
Repayment of long-term debt ........................................... (500) (378) (3)
Other financing ...................................................... (5) (21) (12)
Net cash (used in) provided by financing activities .............. (184) 202 (366)
Effect of currency translation on cash .................................... (3) (1) (2)
Net increase (decrease) in cash and cash equivalents ...................... 12 (72) (96)
Cash and cash equivalents at beginning of year .......................... 66 138 234
Cash and cash equivalents at end of year ............................... $ 78 $ 66 $ 138
Supplementary Cash Flow Information:
Interest paid .................................................... $ 202 $ 171 $ 107
Income taxes paid, net of refunds ................................... 18 61 (2)
See Notes to Consolidated Financial Statements
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