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Press release from PR Newswire

Tyco Reports Fourth Quarter 2012 Earnings From Continuing Operations Before Special Items Of $0.33 Per Share And GAAP Loss Of $1.36 Per Share

Wednesday, November 14, 2012

Tyco Reports Fourth Quarter 2012 Earnings From Continuing Operations Before Special Items Of $0.33 Per Share And GAAP Loss Of $1.36 Per Share06:00 EST Wednesday, November 14, 2012SCHAFFHAUSEN, Switzerland, Nov. 14, 2012 /PRNewswire/ --(Income and EPS amounts are attributable to Tyco common shareholders)($ millions, except per-share amounts) Q4 2012Q4 2011*% ChangeFY 12FY 11*% ChangeRevenue$2,728$2,799(2.5)%$10,403$10,557(1)%Segment Operating Income$320$340(6)%$1,183$1,1255%Operating Income$153$221$685$982Income from Continuing Operations$(629)$174$(332)$617Diluted EPS from Continuing Operations$(1.36)$0.37$(0.72)$1.29Special Items$(1.69)$(0.06)$(2.07)$0.12Segment Operating Income Before Special Items$358$3531%$1,324$1,2238%Income from Continuing Ops Before Special Items$156$203(23)%$635$56213%Diluted EPS from Continuing Ops Before Special Items$0.33$0.43(23)%$1.35$1.1715%*Due to the timing of our fiscal year-end, the fourth quarter and full year fiscal 2011 includes the impact of an additional week of revenue and related operating results.Tyco (NYSE: TYC) today reported GAAP diluted loss per share from continuing operations for the fiscal fourth quarter of 2012 of $1.36 and diluted earnings per share (EPS) from continuing operations before special items of $0.33. Revenue in the quarter decreased 2.5% versus the prior year to $2.7 billion. This included a 3% decline due to foreign currency, a 4% decline related to the impact of the benefit of the 53rd week in 2011, and a 4% benefit from acquisitions. Organic revenue grew 1% in the quarter with 9% growth in products, 2% growth in service and a 4% decline in installation revenue.For the full year, the company reported GAAP diluted loss per share from continuing operations of $0.72 and diluted earnings per share from continuing operations before special items of $1.35. Revenue of $10.4 billion increased 2%, excluding the Electrical and Metals Products business which has been reported as an equity investment following the sale of a majority interest in that business completed on December 22, 2010. Organic revenue growth for the year was 2% with 10% growth in products, 3% growth in service and a 2% decline in installation.The company previously disclosed on September 17, 2012 that it expected to record additional reserves in the range of $40 to $60 million in the fourth quarter of fiscal 2012 due to the aging of receivables relating to certain security contracts in China that it had determined may not be collectible. Following an investigation to determine the cause of the aging receivables, the company has determined that revenue relating to these contracts in China was improperly recorded. As a result, rather than recording the full impact in the fiscal fourth quarter of 2012, the company has adjusted prior years to eliminate revenue and operating income related to these contracts in its Rest of World Systems Installation and Services segment. The cumulative effect of adjustments related to China is to decrease revenue by $164 million and decrease operating income by $51 million. The company does not expect to record any further adjustments related to this matter.The table below provides the revenue and operating income decrease for all years impacted.($millions)Fiscal 2012Fiscal 2011All Periods Prior toFiscal 2008-2010Q4Full YearQ4Full YearRevenue$    -$      (31)$  (16)$      (49)$        (84)Operating Income$  (9)$      (19)$    (3)$      (14)$        (18)Income from continuing operations in the fourth quarter was negatively impacted by special items totaling $785 million after tax or $1.69 per share. Income for the full year was negatively impacted by special items totaling $967 million after tax or $2.07 per share. Special ItemsQ4FYLoss on Extinguishment of Debt$0.98$0.98Tax Related Items$0.54$0.61Separation Costs$0.12$0.14Revaluation of Asbestos Liabilities$      -$0.15Net Restructuring and Impairment Costs$0.05$0.15Other Items$      -$0.04Total Special Items per Share$1.69$2.07Tyco Chief Executive Officer George Oliver said, "I am very excited about the new Tyco.  As the world's largest pure play Fire & Security company, we have the opportunity to leverage our global scale and broad portfolio of products and services to deliver substantial shareholder value.  Our market-leading position and breadth and depth of industry experience differentiates us from our competitors and it is these strengths that make us a leader in the $100 billion global fire and security industry.""Our full year and fourth quarter results highlight our ability to continue to deliver margin expansion. Our performance this year along with a strong balance sheet and continued investments in the businesses position us well to achieve a 15% to 16% segment operating margin before special items in 2015," Oliver added. Organic revenue, free cash flow, operating income, operating margin, and diluted EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as fourth quarter review slides can be found at www.tyco.com on the Investor Relations portion of Tyco's website. SEGMENT RESULTS In connection with the spin-off of ADT and Flow Control, Tyco has realigned its businesses into the following segments: North America Systems Installation & Services, Rest of World Systems Installation & Services, and Global Products.The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. All dollar amounts are pre-tax and stated in millions. All comparisons are to the fiscal fourth quarter or full year of 2011 unless otherwise indicated.North America Systems Installation & Services Q4 2012Q4 2011% ChangeFY 12FY 11% ChangeRevenue$1,042$1,095(5)%$3,962$4,022(1)%Operating Income$109$128(15)%$374$425(12)%Operating Margin10.5%11.7%9.4%10.6%Special Items$(19)$1$(77)$(7)Operating Income Before Special Items$128$1271%$451$4324%Operating Margin Before Special Items12.3%11.6%11.4%10.7%Revenue of $1.0 billion decreased 5% in the quarter primarily driven by the benefit of an additional week of revenue in the prior year.  Service revenue was in-line with the prior year, while installation revenue declined 2% organically for a net organic revenue decline of 1%. Backlog of $2.5 billion increased 5% year-over-year and, due to normal seasonality, declined 1% on a quarter sequential basis, excluding the impact of foreign currency. Operating income for the quarter was $109 million and the operating margin was 10.5%. Special items of $19 million consisted primarily of restructuring charges. Operating income before special items was $128 million and the operating margin was 12.3%. The 70 basis point improvement in operating margin before special items was driven by a higher mix of service revenue and continued productivity benefits, partially offset by increased investments in sales and marketing, and the benefit of the 53rd week in the prior year. Revenue for the full year was $4.0 billion decreasing 1% year-over-year on a reported basis due to the benefit of the 53rd week in the prior year. Operating income was $374 million and included $77 million of special items. Operating income before special items was $451 million and the operating margin increased 70 basis points to 11.4%.Rest of World Systems Installation & Services Q4 2012Q4 2011% ChangeFY 12FY 11% ChangeRevenue$1,128$1,219(7)%$4,341$4,434(2)%Operating Income$123$141(13)%$456$40513%Operating Margin10.9%11.6%10.5%9.1%Special Items$(12)$(13)$(49)$(97)Operating Income Before Special Items$135$154(12)%$505$5021%Operating Margin Before Special Items12.0%12.6%11.6%11.3%Revenue of $1.1 billion decreased 7% in the quarter including a 6% decline due to foreign currency. Organic revenue declined 1% with 4% growth in service and a 7% decline in installation. Backlog of $2.4 billion increased 8% year-over-year and, due to normal seasonality, declined 3% on a quarter sequential basis, excluding the impact of foreign currency. Operating income for the quarter was $123 million and the operating margin was 10.9%. Operating income before special items was $135 million and the operating margin was 12.0%. The benefit of higher margin service revenue was more than offset by a 70 basis point decline due to adjustments recorded for China and a 40 basis point decline related to the benefit of the 53rd week in the prior year, for a year-over-year operating margin before special items decline of 60 basis points.  Revenue for the full year was $4.3 billion decreasing 2% year-over-year with organic revenue growth of 2%. Operating income was $456 million and included $49 million of special items. Operating income before special items was $505 million and the operating margin increased 30 basis points to 11.6%.Global ProductsQ4 2012Q4 2011% ChangeFY 12FY 11% ChangeRevenue$558$48515%$2,100$1,75420%Operating Income$88$7124%$353$29520%Operating Margin15.8%14.6%16.8%16.8%Special Items$(7)$(1)$(15)$6Operating Income Before Special Items$95$7232%$368$28927%Operating Margin Before Special Items17.0%14.8%17.5%16.5%Revenue of $558 million increased 15% in the quarter including a 3% decline due to foreign currency. Organic revenue grew 9% with 3% growth in fire products, 24% growth in security products and 10% growth in life safety products. Operating income for the quarter was $88 million and the operating margin was 15.8%. Special items of $7 million consisted primarily of restructuring charges. Operating income before special items was $95 million and the operating margin was 17.0%. The 220 basis point improvement in operating margin before special items was driven by increased volume as well as the benefit of productivity and restructuring actions. Revenue for the full year was $2.1 billion, increasing 20% year-over-year with organic revenue growth of 10%. Operating income was $353 million and included $15 million of special items. Operating income before special items was $368 million and the operating margin increased 100 basis points to 17.5%.OTHER ITEMSThe company's fiscal 2011 consisted of 53 weeks compared to 52 weeks in fiscal 2012. The additional week contributed an estimated $104 million in revenue in the fourth quarter and full year of fiscal 2011. Organic revenue growth and orders growth have been adjusted to exclude the impact of the additional week in the prior year. Corporate expense before special items was $103 million for the quarter and $331 million for the year. The tax rate before special items was 28.4% for the quarter and 17.7% for the year. The company completed the year with $844 million in cash and cash equivalents, including cash reserved for separation related payments and cash reserved for certain tax liabilities. Cash flow from operating activities for the quarter was $225 million and free cash flow was $109 million, which included a cash outflow of $56 million primarily related to separation and restructuring activities for adjusted free cash flow of $165 million. The Company successfully completed the spin-offs of ADT and Flow Control as well as the merger of Flow Control with Pentair, Inc on September 28, 2012. ABOUT TYCOTyco (NYSE: TYC) is the world's largest pure-play fire protection and security company. Tyco provides more than three million customers around the globe with the latest fire protection and security products and services. A company with $10+ billion in revenue, Tyco has more than 70,000 employees in more than 1,000 locations across 50 countries serving various end markets, including commercial, institutional, governmental, retail, industrial, energy, residential and small business. For more information, visit the new www.tyco.com. CONFERENCE CALL AND WEBCAST Management will discuss the company's fourth quarter results for 2012 and outlook for the first quarter and full year of fiscal year 2013 during a conference call and webcast today beginning at 8:00 a.m. ET. Today's conference call for investors can be accessed in the following ways:  At Tyco's website: http://investors.tyco.com. By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the telephone dial-in number in the United States is (800) 857-9797. The telephone dial-in number for participants outside the United States is (517) 308-9262, passcode "Tyco". An audio replay of the conference call will be available at 10:00 a.m. (ET) on November 14, 2012 and ending at 11:59 p.m. (ET) on November 21, 2012. The replay dial-in number for participants in the United States is (866) 465-0332. For participants outside the United States, the replay dial-in number is (203) 369-1414, passcode 6578. A webcast replay of the conference call will be available on the "Presentations & Webcasts" section of Tyco's website: http://investors.tyco.com.NON-GAAP MEASURES Organic revenue, free cash flow (outflow) (FCF), and income from continuing operations, earnings per share (EPS) from continuing operations, operating income, operating margin and corporate expense, in each case "before special items," are non-GAAP measures and should not be considered replacements for GAAP results.Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures, and other changes that do not reflect the underlying results and trends (for example, the 53rd week of operations in fiscal 2011). The Company's organic growth / decline calculations incorporate an estimate of prior year reported revenue associated with any acquired entities that have been fully integrated within the first year, and exclude prior year revenues associated with entities that do not meet the criteria for discontinued operations which have been divested within the past year. The rate of organic growth or decline is calculated based on the adjusted number to better reflect the rate of growth or decline of the combined business, in the case of acquisitions, or the remaining business, in the case of dispositions. The rate of organic growth or decline for acquired businesses that are not fully integrated within the first year are based on unadjusted historical revenue. Organic revenue and the rate of organic growth or decline as presented herein may not be comparable to similarly titled measures reported by other companies.Organic revenue is a useful measure of the company's performance because it excludes items that: i) are not completely under management's control, such as the impact of foreign currency exchange; or ii) do not reflect the underlying results of the company's businesses, such as acquisitions and divestitures. It may be used as a component of the company's compensation programs. The limitation of this measure is that it excludes items that have an impact on the company's revenue. This limitation is best addressed by using organic revenue in combination with the GAAP numbers. See the accompanying tables to this press release for the reconciliation presenting the components of organic revenue.FCF is a useful measure of the company's cash that is free from any significant existing obligation. The difference between Cash Flows from Operating Activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash flows that the company believes are useful to identify. FCF permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation. It, or a measure that is based on it, may be used as a component in the company's incentive compensation plans. The difference reflects the impact from:net capital expenditures, dealer generated accounts and bulk accounts purchased, cash paid for purchase accounting and holdback liabilities, and voluntary pension contributions.Capital expenditures and dealer generated and bulk accounts purchased are subtracted because they represent long-term commitments. Cash paid for purchase accounting and holdback liabilities is subtracted because these cash outflows are not available for general corporate uses. Voluntary pension contributions are added or subtracted because this activity is driven by economic financing decisions rather than operating activity. In addition, from time to time the company may present adjusted free cash flow, which is free cash flow, adjusted to exclude the cash impact of the special items highlighted below. This number provides information to investors regarding the cash impact of certain items management believes are useful to identify, as described below.The limitation associated with using FCF is that it adjusts for cash items that are ultimately within management's and the Board of Directors' discretion to direct and therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow numbers.FCF as presented herein may not be comparable to similarly titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company's financial statements as filed with the Securities and Exchange Commission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company's total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF and adjusted FCF.The company has presented its income and EPS from continuing operations, operating income and margin, and its corporate expense before special items. Special items include charges and gains related to divestitures, acquisitions, restructurings, impairments, certain changes to accounting methodologies, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends of the company or business segment, as applicable. The company utilizes these measures to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. The Company also presents its effective tax rate as adjusted for special items for consistency. One or more of these measures may be used as components in the company's incentive compensation plans. These measures are useful for investors because they may permit more meaningful comparisons of the company's underlying operating results and business trends between periods. The difference between income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of the special items noted above on the applicable GAAP measure. Operating income and margin before special items do not reflect any additional adjustments that are not reflected in income from continuing operations before special items. The limitation of these measures is that they exclude the impact (which may be material) of items that increase or decrease the company's reported operating income and margin and operating income and EPS from continuing operations. This limitation is best addressed by using the non-GAAP measures in combination with the most comparable GAAP measures in order to better understand the amounts, character and impact of any increase or decrease on reported results. Tyco provides general corporate services to its segments and those costs are reported in the "Corporate and Other" segment. This segment's operating income (loss) is presented as "Corporate Expense." Segment Operating Income represents Tyco's operating income excluding the Corporate and Other segment, and reflects the results of Tyco's three operating segments.  Segment Operating Income before special items reflects GAAP operating income adjusted for the special items noted in the paragraph above.FORWARD-LOOKING STATEMENTSThis press release contains a number of forward-looking statements. Words, and variations of words, such as "expect", "intend", "will", "anticipate", "believe", "propose", "potential", "continue", "opportunity", "estimate", "project" and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, revenue, operating income and other financial projections, statements regarding the health and growth prospects of the industries and end markets in which Tyco operates, the leadership, resources, potential, priorities, and opportunities for Tyco in the future, statements regarding Tyco's credit profile and capital allocation priorities, and statements regarding Tyco's acquisition, divestiture, restructuring and capital market related activities. The forward-looking statements in this press release are based on current expectations and assumptions that are subject to risks and uncertainties, many of which are outside of our control, and could cause results to materially differ from expectations. Such risks and uncertainties include, but are not limited to: economic, business, competitive, technological or regulatory factors that adversely impact Tyco or the markets and industries in which it competes; unanticipated expenses such as litigation or legal settlement expenses; tax law changes; and industry specific events or conditions that may adversely impact revenue or other financial projections. Actual results could differ materially from anticipated results. Tyco is under no obligation (and expressly disclaims any obligation) to update its forward-looking statements. More detailed information about these and other factors is set forth in Tyco's Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2011 and in subsequent filings with the Securities and Exchange Commission. TYCO INTERNATIONAL LTD.CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share data)(Unaudited)Quarters EndedTwelve Months EndedSeptember 28,September 30,September 28,September 30,2012201120122011Revenue from product sales$                  1,557$                  1,579$                  5,845$                  5,990Service revenue1,1711,2204,5584,567    Net revenue$                  2,728$                  2,799$                10,403$                10,557Cost of product sales 8769043,2983,542Cost of services8528863,3283,348Selling, general and administrative expenses7497732,9032,834Separation61-71-Restructuring, asset impairment and divestiture charges (gains), net3715118(149)   Operating income 153221685982Interest income571927Interest expense(33)(59)(209)(240)Other (expense) income, net(453)5(454)(5)(Loss) income from continuing operations before income taxes(328)17441764Income tax (expense) benefit(294)13(348)(134)Equity (loss) income in earnings of unconsolidated subsidiaries(7)(12)(26)(12)   (Loss) income from continuing operations(629)175(333)618Income from discontinued operations, net of income taxes2102238041,102   Net (loss) income(419)3984711,720Less: noncontrolling interest in subsidiaries net income-1(1)1   Net (loss) income attributable to Tyco common shareholders$                   (419)$                     397$                     472$                  1,719Amounts attributable to Tyco common shareholders:(Loss) income from continuing operations$                   (629)$                     174$                   (332)$                     617Income from discontinued operations2102238041,102Net (loss) income attributable to Tyco common shareholders$                   (419)$                     397$                     472$                  1,719Basic earnings per share attributable to Tyco common shareholders:(Loss) income from continuing operations$                  (1.36)$                    0.37$                  (0.72)$                    1.30Income from discontinued operations0.450.481.742.33Net (loss) income attributable to Tyco common shareholders$                  (0.91)$                    0.85$                    1.02$                    3.63Diluted earnings per share attributable to Tyco common shareholders:(Loss) income from continuing operations$                  (1.36)$                    0.37$                  (0.72)$                    1.29Income from discontinued operations0.450.471.742.30Net (loss) income attributable to Tyco common shareholders$                  (0.91)$                    0.84$                    1.02$                    3.59Weighted-average number of shares outstanding:  Basic462466463474  Diluted 462471463479NOTE: These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2011 and Quarterly Report on Form 10-Q for the quarterly period ended June 29, 2012. TYCO INTERNATIONAL LTD.RESULTS OF SEGMENTS (in millions)(Unaudited)Quarters EndedTwelve Months EndedSeptember 28,September 30,September 28,September 30,2012201120122011NET REVENUENA Installation & Services$              1,042$              1,095$             3,962$             4,022ROW Installation & Services1,1281,2194,3414,434Global Products5584852,1001,754Corporate and Other ---347   Total Net Revenue$              2,728$              2,799$           10,403$           10,557OPERATING INCOME AND MARGINNA Installation & Services$                 10910.5%$                 12811.7%$                3749.4%$                42510.6%ROW Installation & Services12310.9%14111.6%45610.5%4059.1%Global Products8815.8%7114.6%35316.8%29516.8%Corporate and Other (167)N/M(119)N/M(498)N/M(143)N/M    Operating Income and Margin$                 1535.6%$                 2217.9%$                6856.6%$                9829.3% TYCO INTERNATIONAL LTD.CONSOLIDATED BALANCE SHEETS(in millions)(Unaudited)September 28,September 30,20122011Assets    Cash and cash equivalents$844$1,229    Accounts receivable, net1,7111,547    Inventories634539    Prepaid expenses and other current assets850666    Deferred income taxes295301    Assets of discontinued operations-13,960      Total current assets4,33418,242Property, plant and equipment, net1,6701,609Goodwill4,3774,238Intangible assets, net780745Other assets1,2041,868      Total Assets$12,365$26,702Liabilities and Equity    Loans payable and current maturities of long-term debt$10$1    Accounts payable897782    Accrued and other current liabilities1,7881,794    Deferred revenue402377    Liabilities of discontinued operations-2,702      Total current liabilities3,0975,656Long-term debt1,4814,105Deferredrevenue424443Other liabilities2,3412,251      Total Liabilities7,34312,455Redeemable noncontrolling interest12-Redeemable noncontrolling interest of discontinued operations-93Total Tyco shareholders' equity4,99414,149Nonredeemable noncontrolling interest165      Total Equity5,01014,154      Total Liabilities, Redeemable Noncontrolling Interest and Equity$12,365$26,702Note: These financial statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2011 and Form 10-Q for the quarterly period ended June 29, 2012. TYCO INTERNATIONAL LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions)(Unaudited)For the Quarters EndedFor the Years EndedSeptember 28,September 30,September 28,September 30,2012201120122011Cash Flows From Operating Activities:Net (loss) income attributable to Tyco common shareholders($419)$397$472$1,719Noncontrolling interest in subsidiaries net income-1(1)1Income from discontinued operations, net of income taxes(210)(223)(804)(1,102)(Loss) income from continuing operations(629)175(333)618Adjustments to reconcile net cash provided by operating activities:Depreciation and amortization105112418421Non-cash compensation expense482011389Deferred income taxes433(55)373(10)Provision for losses on accounts receivable and inventory1785532Loss (gain) on divestitures2314(224)Loss on the retirement of debt453-453-Other non-cash items12279783Changes in assets and liabilities, net of the effects of acquisitions and divestitures:Accounts receivable, net(62)64(128)(47)Contracts in Process8(13)(46)(39)Inventories241(72)(42)Prepaid expenses and other current assets5118(86)16Accounts payable366159(33)Accrued and other liabilities(31)(92)(80)(216)Income taxes, net(172)25(172)23Deferred Revenue(24)(5)(1)(24)Other(24)(42)3714Net cash provided by operating activities225347701661Net cash provided by discontinued operating activities5314691,8851,767Cash Flows From Investing Activities:Capital expenditures(110)(112)(406)(371)Proceeds from disposal of assets4286Acquisition of businesses, net of cash acquired-(132)(217)(353)Acquisition of dealer generated customer accounts and bulk account purchases(10)(8)(28)(33)Divestiture of businesses, net of cash divested-(2)(5)709Other-(16)66(19)Net cash used in investing activities(116)(268)(582)(61)Net cash used in discontinued investing activities(311)(542)(1,204)(1,005)Cash Flows From Financing Activities:Proceeds from issuance of short-term debt7856442,008805Repayment of short-term debt(785)(684)(2,009)(1,337)Proceeds from issuance of long-term debt19-19497Repayment of long-term debt(3,040)-(3,040)(1)Proceeds from exercise of share options8612226124Dividends paid(115)(116)(461)(458)Repurchase of common shares by treasury--(500)(1,300)Transfer from discontinued operations2,852(170)3,274726Other(3)(3)(25)6Net cash used in financing activities(201)(317)(508)(938)Net cash provided by (used in) discontinued financing activities174105(251)(793)Effect of currency translation on cash14(22)4(4)Effect of currency translation on cash related to discontinued operations.5(11)4(2)Net increase (decrease) in cash and cash equivalents321(239)49(375)Net (increase) decrease in cash and cash equivalents related to discontinued operations(399)(21)(434)33Decrease in cash and cash equivalents from deconsolidation of variable interest entity---(10)Cash and cash equivalents at beginning of period9221,4891,2291,581Cash and cash equivalents at end of period$844$1,229$844$1,229Reconciliation to "Free Cash Flow":Net cash provided by operating activities$225$347$701$661Capital expenditures, net(106)(110)(398)(365)Acquisition of dealer generated customer accounts and bulk account purchases(10)(8)(28)(33)Purchase accounting and holdback liabilities-(11)(2)(10)Voluntary pension contributions---12Free Cash Flow$109$218$273$265Reconciliation to "Adjusted Free Cash Flow":Free Cash Flow$109$218$273$265Cash restructuring costs24228990Cash acquisition/integration costs1-3-Cash (receipt) payment from Covidien/TE Connectivity612619126Legal legacy settlements---(1)Separation costs17-18-Separation costs-capital expenditures8-12-Adjusted Free Cash Flow$165$366$414$480NOTE: Free cash flow is a non-GAAP measure.  See description of non-GAAP measures contained in this release. Tyco International Ltd.Organic Growth Reconciliation - Revenue(in millions)(Unaudited)Quarter Ended September 28, 2012Base YearAdjustmentsNet Revenue for the Quarter Ended September 30, 2011(Divestitures) / Other (4)Adjusted 2011 Base RevenueForeign CurrencyAcquisitionsOther (3)Organic Revenue (1)Net Revenue for the Quarter Ended September 28, 2012NA Installation & Services$                               1,095$             -0.0%$        1,095$                (2)-0.2%$              10.1%$          (42)-3.8%$                (10)-0.9%$              1,042-4.8%ROW Installation & Services1,219(12)-1.0%1,207(68)-5.6%332.7%(34)-2.8%(10)-0.8%1,128-7.5%Global Products48540.8%489(13)-2.7%6814.0%(28)-5.8%428.6%55815.1%Total Net Revenue$                               2,799$           (8)-0.3%$        2,791$              (83)-3.0%$          1023.6%$        (104)-3.7%$                  220.8%$              2,728-2.5%Twelve Months Ended September 28, 2012Base YearAdjustmentsNet Revenue for theTwelve Months Ended September 30, 2011(Divestitures) / Other (4)Adjusted2011 BaseRevenueForeign CurrencyAcquisitionsOther (3)Organic Revenue (1) Net Revenue for theTwelve Months EndedSeptember 28, 2012NA Installation & Services$                               4,022$             -0.0%$        4,022$              (10)-0.2%$              40.1%$          (42)-1.0%$                (12)-0.3%$              3,962-1.5%ROW Installation & Services4,434(67)-1.5%4,367(178)-4.0%1052.4%(34)-0.8%811.9%4,341-2.1%Global Products1,754130.7%1,767(38)-2.2%22112.6%(28)-1.6%17810.1%2,10019.7%Total before Corporate and Other$                             10,210$         (54)-0.5%$      10,156$            (226)-2.2%$          3303.2%$        (104)-1.0%$                2472.4%$            10,4031.9%Corporate and Other (2)347(347)-100.0%--0.0%-0.0%-0.0%-0.0%--100.0%Total Net Revenue$                             10,557$       (401)-3.8%$      10,156$            (226)-2.1%$          3303.1%$        (104)-1.0%$                2472.4%$            10,403-1.5%(1)Organic revenue growth percentage based on adjusted 2011 base revenue.(2)Corporate and Other includes the former Electrical and Metal Products business which was divested during Q1 2011.   (3)Amounts represent the impact of the 53rd week of revenue for each segment during fiscal 2011 at fiscal 2012 foreign exchange rates.(4)Amounts include the transfer of certain business from ROW Installation and Services to Global Products.   Earnings Per Share Summary(Unaudited)Quarter EndedYear EndedQuarter EndedYear EndedSept. 28, 2012Sept. 28, 2012Sept. 30, 2011Sept. 30, 2011Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP)($1.36)($0.72)$0.37$1.29expense / (benefit)Restructuring, net0.050.110.010.11Restructuring charges in cost of sales and SG&A---0.01Separation costs included in SG&A----(Gains) / losses on divestitures, net-0.03(0.03)(0.33)Acquisition / integration costs-0.01-0.01Asset impairment charges-0.04--Change in valuation methodology for asbestos-0.15--Note receivable write-off---0.01Legacy legal items-0.070.060.04Former management ERISA reversal-(0.07)--Separation costs0.120.14--Tax items0.540.610.020.03Loss on extinguishment of debt0.980.98--Total Before Special Items$0.33$1.35$0.43$1.17 Tyco International Ltd.For the Quarter Ended September 28, 2012(in millions, except per share data)(Unaudited)expense / (benefit)SegmentsNA InstallationROW InstallationGlobalSegmentCorporate Total& Service& ServiceProductsRevenueand OtherRevenueRevenue (GAAP)$1,042$1,128$558$2,728$2,728(Loss) incomeDilutedfromEPS fromOperating IncomeContinuingContinuingOperationsOperationsSegmentTotalEquity (loss) in earningsAttributableAttributableNA InstallationROW InstallationGlobalOperatingCorporate OperatingInterestOtherIncomeof unconsolidatedto Tyco to Tyco & ServiceMargin& ServiceMarginProductsMarginIncomeMarginand OtherMarginIncomeMargin(Expense), net(Expense), netTax (Expense)subsidiaryShareholdersShareholdersOperating Income (GAAP)$10910.5%$12310.9%$8815.8%$32011.7%($167)N/M$1535.6%($28)($453)($294)($7)($629)($1.36)Restructuring, net178429635(13)220.05Separation costs included in SG&A2222-(Gains) / losses on divestitures, net33(1)22-Acquisition / integration costs222(1)1-Change in valuation methodology for asbestos33(2)1-Legacy legal items(3)(3)1(2)-Former management ERISA reversal11-Separation costs1125961(5)560.12Tax items2492490.54Loss on extinguishment of debt4534530.98Total Before Special Items $12812.3%$13512.0%$9517.0%$35813.1%($103)N/M$2559.3%($28)($64)($7)$156$0.33 Diluted Shares Outstanding 462 Diluted Shares Outstanding - Before Special Items 470 Tyco International Ltd.For the Year Ended September 28, 2012(in millions, except per share data)(Unaudited)expense / (benefit)SegmentsNA InstallationROW InstallationGlobalSegmentCorporate Total& Service& ServiceProductsRevenueand OtherRevenueRevenue (GAAP)$3,962$4,341$2,100$10,403$10,403(Loss) incomeDilutedfromEPS fromOperating IncomeContinuingContinuingOperationsOperationsSegmentTotalEquity (loss) in earningsNoncontrollingAttributableAttributableNA InstallationROW InstallationGlobalOperatingCorporate OperatingInterestOtherIncomeof unconsolidatedInterestto Tyco to Tyco & ServiceMargin& ServiceMarginProductsMarginIncomeMarginand OtherMarginIncomeMargin(Expense), net(Expense), netTax (Expense)subsidiary(Expense)ShareholdersShareholdersOperating Income (GAAP)$3749.4%$45610.5%$35316.8%$1,18311.4%($498)N/M$6856.6%($190)($454)($348)($26)$1($332)($0.72)Restructuring, net25347661379(26)530.11Separation costs included in SG&A2213(1)2-(Gains) / losses on divestitures, net77714(1)130.03Acquisition / integration costs14499(3)60.01Asset impairment charges20232525(8)170.04Change in valuation methodology for asbestos111111(43)680.15Legacy legal items29291746(11)350.07Former management ERISA reversal(50)(50)19(31)(0.07)Separation costs2136871(5)660.14Tax items2852850.61Loss on extinguishment of debt4534530.98Total Before Special Items $45111.4%$50511.6%$36817.5%$1,32412.7%($331)N/M$9939.5%($190)($1)($142)($26)$1$635$1.35 Diluted Shares Outstanding 463 Diluted Shares Outstanding - Before Special Items 469 Tyco International Ltd.For the Quarter Ended September 30, 2011(in millions, except per share data)(Unaudited)expense / (benefit)SegmentsNA InstallationROW InstallationGlobalSegmentCorporate Total& Service& ServiceProductsRevenueand OtherRevenueRevenue (GAAP)$1,095$1,219$485$2,799$2,799IncomeDilutedfromEPS fromOperating IncomeContinuingContinuingOperationsOperationsSegmentTotalEquity (loss) in earningsNoncontrollingAttributableAttributableNA InstallationROW InstallationGlobalOperatingCorporate OperatingInterestOtherIncomeof unconsolidatedInterestto Tyco to Tyco & ServiceMargin& ServiceMarginProductsMarginIncomeMarginand OtherMarginIncomeMargin(Expense), netIncome, netTax Benefitsubsidiaries(Expense)ShareholdersShareholdersOperating Income (GAAP)$12811.7%$14111.6%$7114.6%$34012.1%($119)N/M$2217.9%($52)$5$13($12)($1)$174$0.37Restructuring, net(1)87310(2)80.01Restructuring charges in cost of sales and SG&A1111-(Gains) / losses on divestitures, net3325(21)(16)(0.03)Acquisition / integration costs1122(1)1-Legacy legal items2626260.06Tax items-990.02Total Before Special Items $12711.6%$15412.6%$7214.8%$35312.6%($88)N/M$2659.5%($52)$5($2)($12)($1)$203$0.43 Diluted Shares Outstanding 471 Diluted Shares Outstanding - Before Special Items 471 Tyco International Ltd.For the Year Ended September 30, 2011(in millions, except per share data)(Unaudited)expense / (benefit)SegmentsNA InstallationROW InstallationGlobalSegmentCorporate Total& Service& ServiceProductsRevenueand OtherRevenueRevenue (GAAP)$4,022$4,434$1,754$10,210$347$10,557IncomeDilutedfromEPS fromOperating IncomeContinuingContinuingOperationsOperationsSegmentTotalEquity (loss) in earningsNoncontrollingAttributableAttributableNA InstallationROW InstallationGlobalOperatingCorporate OperatingInterestOtherIncomeof unconsolidatedInterestto Tyco to Tyco & ServiceMargin& ServiceMarginProductsMarginIncomeMarginand OtherMarginIncomeMargin(Expense), net(Expense), netTax (Expense)subsidiaries(Expense)ShareholdersShareholdersOperating Income (GAAP)$42510.6%$4059.1%$29516.8%$1,12511.0%($143)N/M$9829.3%($213)($5)($134)($12)($1)$617$1.29Restructuring, net761(7)611475(21)540.11Restructuring charges in cost of sales and SG&A33330.01(Gains) / losses on divestitures, net2929(253)(224)66(158)(0.33)Note receivable write-off5550.01Acquisition / integration costs4155(2)30.01Legacy legal items2020200.04Tax items18180.03Total Before Special Items $43210.7%$50211.3%$28916.5%$1,22312.0%($357)N/M$8668.2%($213)($5)($73)($12)($1)$562$1.17 Diluted Shares Outstanding 479 Diluted Shares Outstanding - Before Special Items 479  SOURCE TycoFor further information: Investor Relations Contacts: Antonella Franzen, +1-609-720-4665, Afranzen@tyco.com or Joe Longo, +1-609-720-4545, jlongo@tyco.com; Media Contacts: Ira Gottlieb, +1-609-610-1999, igottlieb@tycoint.com or Brett Ludwig, +1-609-216-3255, bludwig@tyco.com