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8-K - 8-K - Johnson Controls International plca13-17008_18k.htm

Exhibit 99.1

 

 

Investor Relations Contacts:

 

Media Contacts:

Antonella Franzen

 

Ira Gottlieb

+1-609-720-4665

 

+1-609-610-1999

afranzen@tyco.com

 

igottlieb@tycoint.com

 

 

 

Joe Longo

 

Brett Ludwig

+1-609-720-4545

 

+1-609-216-3255

jlongo@tyco.com

 

bludwig@tyco.com

 

FOR IMMEDIATE RELEASE:

 

TYCO REPORTS THIRD QUARTER 2013 EARNINGS

FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS OF $0.50 PER SHARE

AND GAAP EARNINGS OF $0.28 PER SHARE

 

·                  Company reports third quarter revenue of $2.7 billion, with 1% revenue growth and 1% organic growth

 

·                  Segment operating margin before special items improves 40 basis points year-over-year on a normalized basis* to a record-high 14.0%

 

·                  Revenue and operating margins improve sequentially across all business segments

 

·                  Company announces acquisition of Exacq Technologies, closes acquisition of National Fire Solutions Group, and completes divestiture of the North America guarding business

 

·                  Company repurchases 3.1 million shares for $100 million

 

(Income and EPS amounts are attributable to Tyco common shareholders)

($ millions, except per-share amounts)

 

 

 

Q3 2013

 

Q3 2012

 

% Change

 

Revenue

 

$

2,678

 

$

2,655

 

1

%

Segment Operating Income

 

$

306

 

$

310

 

(1

)%

Operating Income

 

$

189

 

$

118

 

60

%

Income from Continuing Operations

 

$

132

 

$

65

 

103

%

Diluted EPS from Continuing Operations

 

$

0.28

 

$

0.14

 

100

%

Special Items

 

$

(0.22

)

$

(0.33

)

 

 

Segment Operating Income Before Special Items

 

$

375

 

$

369

 

2

%

Income from Continuing Ops Before Special Items

 

$

233

 

$

223

 

4

%

Diluted EPS from Continuing Ops Before Special Items

 

$

0.50

 

$

0.47

 

6

%

 

NEUHAUSEN, Switzerland — July 26, 2013 — Tyco (NYSE: TYC) today reported $0.28 in GAAP diluted earnings per share (EPS) from continuing operations for the fiscal third quarter of 2013 and diluted EPS from continuing operations before special items of $0.50. Revenue in the quarter increased 1% versus the prior year to $2.7 billion. Organic revenue grew 1% in the quarter with 5% growth in products, 3% growth in service and a 4% decline in installation revenue.

 


*Normalized third quarter 2012 results reflect pro forma adjustments to corporate and interest expense to reflect the impact of the separation, and include dis-synergy costs associated with the separation of the Company’s North American security operations from ADT. See Non-GAAP reconciliations.

 



 

“Our results mark another strong quarter of operational performance, reflecting the continued strength of our recurring and service revenue base as well as sustained momentum in our Global Products business,” said Tyco Chief Executive Officer George Oliver. “We continue to execute our strategy of leading in technology to better serve our customers, increasing service revenue, and driving productivity, all of which contributed to our earnings growth this quarter.”

 

“Additionally, we announced the acquisition of Exacq Technologies, a developer of video management systems, to expand our security product offerings and strengthen our position in the market. We also continued to return capital to shareholders during the quarter, by repurchasing $100 million of shares.”

 

Organic revenue, free cash flow and adjusted free cash flow, operating income, segment operating income, and diluted and normalized 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 third quarter review slides can be found at www.tyco.com on the Investor Relations portion of Tyco’s website.

 

SEGMENT RESULTS

 

The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. Effective in the fiscal second quarter of 2013, the company began reporting certain legacy environmental matters as special items. Operating income before special items in prior periods has been adjusted to reflect this change. All dollar amounts are pre-tax and stated in millions. All comparisons are to the fiscal third quarter of 2012 unless otherwise indicated.

 

North America Systems Installation & Services

 

 

 

Q3 2013

 

Q3 2012

 

% Change

 

Revenue

 

$

966

 

$

1,005

 

(4

)%

Operating Income

 

$

88

 

$

94

 

(6

)%

Operating Margin

 

9.1

%

9.4

%

 

 

Special Items

 

$

(29

)

$

(29

)

 

 

Operating Income Before Special Items

 

$

117

 

$

123

 

(5

)%

Operating Margin Before Special Items

 

12.1

%

12.2

%

 

 

 

Revenue of $966 million included service growth of 2% and an installation decline of 8%, primarily due to continued project selectivity in the commercial security business. In total, organic revenue declined 3% year-over-year. Backlog of $2.5 billion increased 1% on a quarter sequential basis, excluding the impact of foreign currency.

 

Operating income for the quarter was $88 million and the operating margin was 9.1%. Special items of $29 million consisted primarily of separation and restructuring charges. Operating income before special items was $117 million, and operating margin before special items was 12.1%, which was relatively consistent with the prior year. Normalizing for the dis-synergy costs associated with the separation of our North America commercial security business from ADT, the operating margin improved 80 basis points year-over-year due to a higher mix of service revenue, improved execution in installation and productivity benefits.

 

Rest of World Systems Installation & Services

 

 

 

Q3 2013

 

Q3 2012

 

% Change

 

Revenue

 

$

1,112

 

$

1,087

 

2

%

Operating Income

 

$

104

 

$

118

 

(12

)%

Operating Margin

 

9.4

%

10.9

%

 

 

Special Items

 

$

(35

)

$

(15

)

 

 

Operating Income Before Special Items

 

$

139

 

$

133

 

5

%

Operating Margin Before Special Items

 

12.5

%

12.2

%

 

 

 



 

Revenue of $1.1 billion increased 2% in the quarter. Service revenue increased 4% and installation revenue declined 1% for total organic growth of 2%. Acquisitions contributed 2 percentage points to revenue growth, which was mostly offset by the negative impact of foreign currency. Record backlog of $2.6 billion increased 3% on a quarter sequential basis, excluding the impact of foreign currency.

 

Operating income for the quarter was $104 million and the operating margin was 9.4%. Special items of $35 million consisted primarily of restructuring charges. Operating income before special items was $139 million, and the operating margin improved 30 basis points to 12.5%. The year-over-year improvement in margin was driven by a higher mix of service revenue and productivity benefits.

 

Global Products

 

 

 

Q3 2013

 

Q3 2012

 

% Change

 

Revenue

 

$

600

 

$

563

 

7

%

Operating Income

 

$

114

 

$

98

 

16

%

Operating Margin

 

19.0

%

17.4

%

 

 

Special Items

 

$

(5

)

$

(15

)

 

 

Operating Income Before Special Items

 

$

119

 

$

113

 

5

%

Operating Margin Before Special Items

 

19.8

%

20.1

%

 

 

 

Revenue of $600 million increased 7% in the quarter, with organic revenue growth of 5%. Revenue increased across all three product platforms.

 

Operating income for the quarter was $114 million and the operating margin was 19.0%.  Special items in the quarter of $5 million consisted of restructuring charges. Operating income before special items was $119 million and the operating margin was 19.8%. The year-over-year decline in operating margin was attributable to a higher mix of high-hazard, high-performance products for the Mining and Oil & Gas end markets in the prior year.

 

OTHER ITEMS

 

·                  Cash from operating activities was $265 million and free cash flow was $167 million, which included a cash outflow of $106 million related to special items. Adjusted free cash flow for the quarter was $273 million. The Company completed the quarter with $455 million in cash and cash equivalents.

·                  Corporate expense before special items was $62 million for the quarter, and $117 million on a GAAP basis.

·                  The tax rate before special items was 18.4% for the quarter.

·                  Company repurchased 3.1 million shares for $100 million under the existing $750 million share repurchase authority, of which $500 million remains.

·                  During the quarter, the Company signed a definitive agreement to purchase Exacq Technologies, a developer of open architecture Video Management Systems (VMS) for security and surveillance applications. The business is expected to generate revenues in fiscal 2014 of approximately $75 million. The acquisition, which is expected to close within the next few days, is subject to customary closing conditions.

·                  In addition, the Company closed the previously-announced acquisition of National Fire Solutions Group (NFS), a leading national provider of fire protection services in Australia. This acquisition is expected to contribute approximately $65 million in revenue in fiscal 2014.

 



 

·                  During the quarter, the Company completed the sale of its North America guarding business, which generated revenue of $75 million in fiscal 2012.

 

ABOUT TYCO

 

Tyco (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 annual revenue, Tyco has over 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 third quarter results for 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 July 26, 2013 and ending at 11:59 p.m. (ET) on August 2, 2013.  The replay dial-in number for participants in the United States is (800) 570-8795. For participants outside the United States, the replay dial-in number is (402) 220-2264, passcode 1537.

·                  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 and segment operating income, and normalized EPS, 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 either do not reflect the underlying results and trends of the company’s businesses or are not completely under management’s control. There are limitations associated with organic revenue, such as the fact that, as presented herein, the metric may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using organic revenue in combination with GAAP numbers. Organic revenue may be used as a component in the company’s incentive compensation plans.

 

FCF is a useful measure of the company’s cash that permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation and is available to service debt and make investments. 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. 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 investments that are required for normal business activities. 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 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 these cash flow metrics is that they adjust 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. Furthermore, these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are best addressed by using FCF in combination with the GAAP cash flow numbers.

 

The company has presented its income and EPS from continuing operations, operating income and segment operating income before special items. Special items include charges and gains related to divestitures, acquisitions, restructurings and similar actions, impairments, certain changes to accounting methodologies, legacy legal, environmental 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, and presents corporate expense excluding special items. 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. 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 GAAP metrics, and these non-GAAP metrics may not be comparable to similarly titled measures reported by other companies. These limitations are 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.

 

The company 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.

 

In order to provide more meaningful comparison of fiscal 2013 results to fiscal 2012 results, normalized EPS before special items is presented. Normalized EPS adjusts fiscal 2012 GAAP results by replacing the GAAP interest and corporate expenses reported for fiscal 2012 (on a pre-separation basis) with the interest and corporate expenses estimated to be incurred in fiscal 2013 (on a post-separation basis), and adding estimated

 



 

dis-synergy costs related to the separation of the Company’s North American security business to fiscal 2012 results. Normalized EPS before special items further adjusts normalized EPS for the special items above.

 

FORWARD-LOOKING STATEMENTS

 

This 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, capital allocation priorities and other capital market related activities, and statements regarding Tyco’s acquisition, divestiture, restructuring and other productivity initiatives. 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 environmental, 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. 28, 2012 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 Ended

 

Nine Months Ended

 

 

 

June 28,

 

June 29,

 

June 28,

 

June 29,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenue from product sales

 

$

1,508

 

$

1,512

 

$

4,388

 

$

4,288

 

Service revenue

 

1,170

 

1,143

 

3,498

 

3,387

 

Net revenue

 

2,678

 

2,655

 

7,886

 

7,675

 

Cost of product sales

 

1,023

 

1,024

 

3,024

 

2,926

 

Cost of services

 

672

 

661

 

2,012

 

1,972

 

Selling, general and administrative expenses

 

737

 

829

 

2,209

 

2,166

 

Separation costs

 

4

 

6

 

9

 

10

 

Restructuring and asset impairment charges, net

 

53

 

17

 

85

 

69

 

Operating income

 

189

 

118

 

547

 

532

 

Interest income

 

6

 

5

 

14

 

14

 

Interest expense

 

(26

)

(59

)

(75

)

(176

)

Other (expense) income, net

 

(1

)

1

 

(30

)

(1

)

Income from continuing operations before income taxes

 

168

 

65

 

456

 

369

 

Income tax (expense) benefit

 

(30

)

6

 

(73

)

(54

)

Equity loss in earnings of unconsolidated subsidiaries

 

(6

)

(7

)

(18

)

(19

)

Income from continuing operations

 

132

 

64

 

365

 

296

 

Income from discontinued operations, net of income taxes

 

3

 

181

 

5

 

594

 

Net income

 

135

 

245

 

370

 

890

 

Less: noncontrolling interest in subsidiaries net income

 

 

(1

)

 

(1

)

Net income attributable to Tyco common shareholders

 

$

135

 

$

246

 

$

370

 

$

891

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to Tyco common shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

132

 

$

65

 

$

365

 

$

297

 

Income from discontinued operations

 

3

 

181

 

5

 

594

 

Net income attributable to Tyco common shareholders

 

$

135

 

$

246

 

$

370

 

$

891

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to Tyco common shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.29

 

$

0.14

 

$

0.79

 

$

0.64

 

Income from discontinued operations

 

 

0.39

 

0.01

 

1.29

 

Net income attributable to Tyco common shareholders

 

$

0.29

 

$

0.53

 

$

0.80

 

$

1.93

 

Diluted earnings per share attributable to Tyco common shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.28

 

$

0.14

 

$

0.77

 

$

0.63

 

Income from discontinued operations

 

 

0.38

 

0.01

 

1.27

 

Net income attributable to Tyco common shareholders

 

$

0.28

 

$

0.52

 

$

0.78

 

$

1.90

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

463

 

463

 

465

 

463

 

Diluted

 

471

 

470

 

473

 

469

 

 

Note: 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 28, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 29, 2013.

 



 

TYCO INTERNATIONAL LTD.

RESULTS OF SEGMENTS

(in millions)

(Unaudited)

 

 

 

Quarters Ended

 

 

 

Nine Months Ended

 

 

 

 

 

June 28,

 

 

 

June 29,

 

 

 

June 28,

 

 

 

June 29,

 

 

 

 

 

2013

 

 

 

2012

 

 

 

2013

 

 

 

2012

 

 

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA Installation & Services

 

$

966

 

 

 

$

1,005

 

 

 

$

2,895

 

 

 

$

2,920

 

 

 

ROW Installation & Services

 

1,112

 

 

 

1,087

 

 

 

3,279

 

 

 

3,213

 

 

 

Global Products

 

600

 

 

 

563

 

 

 

1,712

 

 

 

1,542

 

 

 

Total Net Revenue

 

$

2,678

 

 

 

$

2,655

 

 

 

$

7,886

 

 

 

$

7,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income and Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA Installation & Services

 

$

88

 

9.1

%

$

94

 

9.4

%

$

275

 

9.5

%

$

265

 

9.1

%

ROW Installation & Services

 

104

 

9.4

%

118

 

10.9

%

323

 

9.9

%

333

 

10.4

%

Global Products

 

114

 

19.0

%

98

 

17.4

%

188

 

11.0

%

265

 

17.2

%

Corporate and Other

 

(117

)

N/M

 

(192

)

N/M

 

(239

)

N/M

 

(331

)

N/M

 

Operating Income and Margin

 

$

189

 

7.1

%

$

118

 

4.4

%

$

547

 

6.9

%

$

532

 

6.9

%

 



 

TYCO INTERNATIONAL LTD.

CONSOLIDATED BALANCE SHEETS

(in millions)

(Unaudited)

 

 

 

June 28,

 

September 28,

 

 

 

2013

 

2012

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

455

 

$

844

 

Accounts receivable, net

 

1,678

 

1,696

 

Inventories

 

685

 

634

 

Prepaid expenses and other current assets

 

854

 

884

 

Deferred income taxes

 

295

 

295

 

Total current assets

 

3,967

 

4,353

 

 

 

 

 

 

 

Property, plant and equipment, net

 

1,640

 

1,670

 

Goodwill

 

4,322

 

4,367

 

Intangible assets, net

 

716

 

771

 

Other assets

 

1,225

 

1,204

 

Total Assets

 

$

11,870

 

$

12,365

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Loans payable and current maturities of long-term debt

 

$

19

 

$

10

 

Accounts payable

 

831

 

897

 

Accrued and other current liabilities

 

1,873

 

1,788

 

Deferred revenue

 

417

 

402

 

Total current liabilities

 

3,140

 

3,097

 

 

 

 

 

 

 

Long-term debt

 

1,462

 

1,481

 

Deferred revenue

 

396

 

424

 

Other liabilities

 

2,138

 

2,341

 

Total Liabilities

 

7,136

 

7,343

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

12

 

12

 

 

 

 

 

 

 

Total Tyco shareholders’ equity

 

4,707

 

4,994

 

Nonredeemable noncontrolling interest

 

15

 

16

 

Total Equity

 

4,722

 

5,010

 

Total Liabilities, Redeemable Noncontrolling Interest and Equity

 

$

11,870

 

$

12,365

 

 

Note: 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 28, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 29, 2013.

 



 

TYCO INTERNATIONAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

 

 

 

For the Quarters Ended

 

For the Nine Months Ended

 

 

 

June 28,

 

June 29,

 

June 28,

 

June 29,

 

 

 

2013

 

2012

 

2013

 

2012

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

Net income attributable to Tyco common shareholders

 

$

135

 

$

246

 

$

370

 

$

891

 

Noncontrolling interest in subsidiaries net income

 

 

(1

)

 

(1

)

Income from discontinued operations, net of income taxes

 

(3

)

(181

)

(5

)

(594

)

Income from continuing operations

 

132

 

64

 

365

 

296

 

Adjustments to reconcile net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

106

 

107

 

318

 

313

 

Non-cash compensation expense

 

16

 

23

 

47

 

65

 

Deferred income taxes

 

(7

)

(47

)

(52

)

(60

)

Provision for losses on accounts receivable and inventory

 

16

 

14

 

54

 

38

 

Loss on divestitures

 

4

 

9

 

10

 

12

 

Other non-cash items

 

53

 

22

 

104

 

85

 

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

(47

)

(78

)

(44

)

(66

)

Contracts in progress

 

 

(38

)

(13

)

(54

)

Inventories

 

(41

)

(16

)

(74

)

(74

)

Prepaid expenses and other current assets

 

38

 

(114

)

69

 

(137

)

Accounts payable

 

50

 

51

 

(56

)

23

 

Accrued and other liabilities

 

(28

)

181

 

(220

)

(49

)

Deferred revenue

 

(6

)

(1

)

1

 

23

 

Other

 

(21

)

93

 

(37

)

61

 

Net cash provided by operating activities

 

265

 

270

 

472

 

476

 

Net cash provided by discontinued operating activities

 

3

 

506

 

5

 

1,354

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(92

)

(111

)

(284

)

(296

)

Proceeds from disposal of assets

 

 

2

 

4

 

4

 

Acquisition of businesses, net of cash acquired

 

(37

)

(12

)

(75

)

(217

)

Acquisition of dealer generated customer accounts and bulk account purchases

 

(5

)

(5

)

(17

)

(18

)

Sales and maturities of investments

 

64

 

32

 

103

 

115

 

Purchases of investments

 

(63

)

(27

)

(182

)

(70

)

Other

 

12

 

(2

)

6

 

16

 

Net cash used in investing activities

 

(121

)

(123

)

(445

)

(466

)

Net cash used in discontinued investing activities

 

 

(327

)

 

(893

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

Proceeds from issuance of short-term debt

 

280

 

344

 

380

 

1,224

 

Repayment of debt

 

(290

)

(345

)

(391

)

(1,225

)

Proceeds from exercise of share options

 

31

 

52

 

125

 

140

 

Dividends paid

 

(74

)

(115

)

(214

)

(346

)

Repurchase of common shares by treasury

 

(100

)

(200

)

(300

)

(500

)

Transfer from discontinued operations

 

65

 

228

 

35

 

422

 

Other

 

(18

)

(3

)

(35

)

(22

)

Net cash used in financing activities

 

(106

)

(39

)

(400

)

(307

)

Net cash used in discontinued financing activities

 

(65

)

(229

)

(35

)

(425

)

Effect of currency translation on cash

 

(13

)

(20

)

(16

)

(10

)

Effect of currency translation on cash related to discontinued operations

 

 

(6

)

 

(1

)

Net (decrease) increase in cash and cash equivalents

 

(37

)

32

 

(419

)

(272

)

Less: Net (decrease) increase in cash and cash equivalents related to discontinued operations

 

(62

)

(56

)

(30

)

35

 

Cash and cash equivalents at beginning of period

 

430

 

834

 

844

 

1,229

 

Cash and cash equivalents at end of period

 

455

 

922

 

455

 

922

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to “Free Cash Flow”:

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

265

 

$

270

 

$

472

 

$

476

 

Capital expenditures, net

 

(92

)

(109

)

(280

)

(292

)

Acquisition of dealer generated customer accounts and bulk account purchases

 

(5

)

(5

)

(17

)

(18

)

Purchase accounting and holdback liabilities

 

(1

)

(1

)

(7

)

(2

)

Free Cash Flow

 

$

167

 

$

155

 

$

168

 

$

164

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to “Adjusted Free Cash Flow”:

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

$

167

 

$

155

 

$

168

 

$

164

 

Cash restructuring and repositioning costs

 

20

 

20

 

64

 

65

 

Cash payment / (receipt) from Covidien/TE Connectivity

 

16

 

(4

)

11

 

13

 

Cash acquisition / integration Costs

 

 

 

 

2

 

Legal settlements

 

13

 

 

26

 

 

Separation costs, including capital expenditures and taxes

 

20

 

5

 

168

 

5

 

Net asbestos (recoveries) / payments

 

26

 

 

(24

)

 

Environmental remediation payments

 

11

 

1

 

24

 

3

 

Adjusted Free Cash Flow

 

$

273

 

$

177

 

$

437

 

$

252

 

 

NOTE: 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 28, 2013

 

 

 

 

 

 

 

Net Revenue for

 

Base Year
Adjustments

 

Adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue for

 

 

 

the Quarter Ended
June 29, 2012

 

Divestitures /
Other (3)

 

2012 Base
Revenue

 

Foreign Currency

 

Acquisitions

 

Other (2)

 

Organic Revenue (1)

 

the Quarter Ended
June 28, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA Installation and Services

 

$

1,005

 

$

(11

)

-1.1

%

$

994

 

$

(2

)

-0.2

%

$

1

 

0.1

%

$

 

0.0

%

$

(27

)

-2.7

%

$

966

 

-3.9

%

ROW Installation and Services

 

1,087

 

 

0.0

%

1,087

 

(13

)

-1.2

%

20

 

1.8

%

 

0.0

%

18

 

1.7

%

1,112

 

2.3

%

Global Products

 

563

 

1

 

0.2

%

564

 

(1

)

-0.2

%

 

0.0

%

11

 

2.0

%

26

 

4.6

%

600

 

6.6

%

Total Net Revenue

 

$

2,655

 

$

(10

)

-0.4

%

$

2,645

 

$

(16

)

-0.6

%

$

21

 

0.8

%

$

11

 

0.4

%

$

17

 

0.6

%

$

2,678

 

0.9

%

 


(1)   Organic revenue growth percentage based on adjusted 2012 base revenue.

 

(2)   Amount represents contractual revenue from ADT under the 2012 Separation and Distribution Agreement which is excluded from the organic revenue calculation.

 

(3)   Amounts include the transfer of a business from NA Installation and Services to Global Products.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 28, 2013

 

 

 

 

 

 

 

Net Revenue for

 

Base Year
Adjustments

 

Adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue for

 

 

 

the Nine Months Ended
June 29, 2012

 

Divestitures /
Other (3)

 

2012 Base
Revenue

 

Foreign Currency

 

Acquisitions

 

Other (2)

 

Organic Revenue (1)

 

the Nine Months Ended
June 28, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA Installation and Services

 

$

2,920

 

$

(11

)

-0.4

%

$

2,909

 

$

2

 

0.1

%

$

5

 

0.2

%

$

 

0.0

%

$

(21

)

-0.7

%

$

2,895

 

-0.9

%

ROW Installation and Services

 

3,213

 

(10

)

-0.3

%

3,203

 

(20

)

-0.6

%

66

 

2.1

%

 

0.0

%

30

 

0.9

%

3,279

 

2.1

%

Global Products

 

1,542

 

1

 

0.1

%

1,543

 

1

 

0.1

%

54

 

3.5

%

28

 

1.8

%

86

 

5.6

%

1,712

 

11.0

%

Total Net Revenue

 

$

7,675

 

$

(20

)

-0.3

%

$

7,655

 

$

(17

)

-0.2

%

$

125

 

1.6

%

$

28

 

0.4

%

$

95

 

1.2

%

$

7,886

 

2.7

%

 


(1)   Organic revenue growth percentage based on adjusted 2012 base revenue.

 

(2)   Amount represents contractual revenue from ADT under the 2012 Separation and Distribution Agreement which is excluded from the organic revenue calculation.

 

(3)   Amounts include the transfer of a business from NA Installation and Services to Global Products.

 



 

Earnings Per Share Summary

(Unaudited)

 

 

 

June 28, 2013

 

June 29, 2012

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from Continuing Operations Attributable to Tyco Shareholders (GAAP)

 

$

0.28

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

expense / (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and repositioning activities

 

0.10

 

0.03

 

 

 

 

 

 

 

 

 

 

 

Separation costs included in SG&A

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

(Gains) / losses on divestitures, net

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

Acquisition / integration costs

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

Change in valuation methodology for asbestos

 

0.03

 

0.14

 

 

 

 

 

 

 

 

 

 

 

Environmental remediation

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

Legacy legal items

 

0.04

 

0.04

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

0.01

 

0.01

 

 

 

 

 

 

 

 

 

 

 

Tax items

 

 

0.07

 

 

 

 

 

 

 

 

 

 

 

Total Before Special Items

 

$

0.50

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

Anticipated dis-synergies in NA I&S segment

 

 

 

(0.01

)

Represents forecast amounts for fiscal 2013

 

 

 

 

 

 

Corporate expense from $64M to expected $56M

 

 

 

0.01

 

 

 

 

 

 

 

Net interest expense from $54M to expected $25M

 

 

 

0.05

 

 

 

 

 

 

 

Effective tax rate from 9.1% to expected 19.5%

 

 

 

(0.05

)

 

 

 

 

 

 

 

 

Q3 FY12 “Normalized” EPS

 

 

 

$

0.47

 

 

 

 



 

Tyco International Ltd.

For the Quarter Ended June 28, 2013

(in millions, except per share data)

(Unaudited)

expense / (benefit)

 

Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA

 

 

 

ROW

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installation

 

 

 

Installation

 

 

 

Global

 

 

 

Segment

 

 

 

Corporate

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

& Service

 

 

 

& Service

 

 

 

Products

 

 

 

Revenue

 

 

 

and Other

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (GAAP)

 

$

966

 

 

 

$

1,112

 

 

 

$

 600

 

 

 

$

2,678

 

 

 

 

 

 

$

2,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from

 

EPS from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing

 

Continuing

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

Equity in

 

Operations

 

Operations

 

 

 

NA

 

 

 

ROW

 

 

 

 

 

 

 

Segment

 

 

 

 

 

 

 

Total

 

 

 

Interest

 

Other

 

Income

 

earnings of

 

Attributable

 

Attributable

 

 

 

Installation

 

 

 

Installation

 

 

 

Global

 

 

 

Operating

 

 

 

Corporate

 

 

 

Operating

 

 

 

(Expense),

 

(Expense),

 

Tax

 

unconsolidated

 

to Tyco

 

to Tyco

 

 

 

& Service

 

Margin

 

& Service

 

Margin

 

Products

 

Margin

 

Income

 

Margin

 

and Other

 

Margin

 

Income

 

Margin

 

net

 

net

 

(Expense)

 

subsidiaries

 

Shareholders

 

Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (GAAP)

 

$

88

 

9.1

%

$

104

 

9.4

%

$

114

 

19.0

%

$

306

 

11.4

%

$

(117

)

N/M

 

$

189

 

7.1

%

$

(20

)

$

(1

)

$

(30

)

$

(6

)

$

132

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and repositioning activities

 

16

 

 

 

34

 

 

 

5

 

 

 

55

 

 

 

3

 

 

 

58

 

 

 

 

 

 

 

(11

)

 

 

47

 

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs included in SG&A

 

12

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

6

 

 

 

18

 

 

 

 

 

 

 

(3

)

 

 

15

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains) / losses on divestitures, net

 

1

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

3

 

 

 

4

 

 

 

 

 

 

 

(2

)

 

 

2

 

––

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition / integration costs

 

 

 

 

 

1

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

1

 

––

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asbestos

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

12

 

 

 

 

 

 

 

(1

)

 

 

11

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legacy legal items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27

 

 

 

27

 

 

 

 

 

 

 

(9

)

 

 

18

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

4

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

––

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 Tax Sharing Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

1

 

––

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Before Special Items

 

$

117

 

12.1

%

$

139

 

12.5

%

$

119

 

19.8

%

$

375

 

14.0

%

$

(62

)

N/M

 

$

313

 

11.7

%

$

(20

)

––

 

$

(54

)

$

(6

)

$

233

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding - Before Special Items

 

471

 

 



 

Tyco International Ltd.

For the Quarter Ended June 29, 2012

(in millions, except per share data)

(Unaudited)

expense / (benefit)

 

Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA 
Installation

 

 

 

ROW 
Installation

 

 

 

Global

 

 

 

Segment

 

 

 

Corporate

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

& Service

 

 

 

& Service

 

 

 

Products

 

 

 

Revenue

 

 

 

and Other

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (GAAP)

 

$

1,005

 

 

 

$

1,087

 

 

 

$

563

 

 

 

$

2,655

 

 

 

 

 

 

 

$

2,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity 

 

 

 

from

 

EPS from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loss in 

 

 

 

Continuing

 

Continuing

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

earnings

 

 

 

Operations

 

Operations

 

 

 

NA 

 

 

 

ROW 

 

 

 

 

 

 

 

Segment

 

 

 

 

 

 

 

Total

 

 

 

Interest

 

Other

 

Income

 

of 

 

Noncontrolling

 

Attributable

 

Attributable

 

 

 

Installation

 

 

 

Installation

 

 

 

Global

 

 

 

Operating

 

 

 

Corporate

 

 

 

Operating

 

 

 

(Expense), 

 

(Expense), 

 

Tax 

 

unconsolidated

 

Interest

 

to Tyco

 

to Tyco

 

 

 

& Service

 

Margin

 

& Service

 

Margin

 

Products

 

Margin

 

Income

 

Margin

 

and Other

 

Margin

 

Income

 

Margin

 

net

 

net

 

(Expense)

 

subsidiary

 

(Expense)

 

Shareholders

 

Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (GAAP)

 

$

94

 

9.4

%

$

118

 

10.9

%

$

98

 

17.4

%

$

310

 

11.7

%

$

(192

)

N/M

 

$

118

 

4.4

%

$

(54

)

$

1

 

$

6

 

$

(7

)

$

1

 

$

65

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, net

 

 

 

 

 

12

 

 

 

1

 

 

 

13

 

 

 

4

 

 

 

17

 

 

 

 

 

 

 

(4

)

 

 

 

 

13

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs included in SG&A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Gains) / losses on divestitures, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition / integration costs

 

 

 

 

 

3

 

 

 

1

 

 

 

4

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

(1

)

 

 

 

 

3

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation methodology for asbestos

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

108

 

 

 

108

 

 

 

 

 

 

 

(41

)

 

 

 

 

67

 

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Environmental remediation

 

 

 

 

 

 

 

 

 

13

 

 

 

13

 

 

 

 

 

 

 

13

 

 

 

 

 

 

 

(5

)

 

 

 

 

8

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legacy legal items

 

29

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

 

29

 

 

 

 

 

 

 

(12

)

 

 

 

 

17

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

35

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Before Special Items

 

$

123

 

12.2

%

$

133

 

12.2

%

$

113

 

20.1

%

$

369

 

13.9

%

$

(64

)

N/M

 

$

305

 

11.5

%

$

(54

)

$

1

 

$

(23

)

$

(7

)

$

1

 

$

223

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anticipated dis-synergies in NA I&S segment

 

(9

)

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3FY12 Normalized

 

$

114

 

11.3

%

$

133

 

12.2

%

$

113

 

20.1

%

$

360

 

13.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding - Before Special Items

 

470

 

 

Note: This period has been recast to present environmental remediation charges as a special item.