2012 Separation Transaction

On September 28, 2012, the Company completed the spin-offs of ADT and Tyco Flow Control, formerly the North American residential security and flow control businesses of Tyco, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders.

In connection with activities taken to complete the 2012 Separation and to create the revised organizational structure of the Company, the Company incurred pre-tax charges ("Separation Charges") of $19 million and $72 million during the quarters ended June 28, 2013 and June 29, 2012, respectively, and $51 million and $196 million for the nine months ended June 28, 2013 and June 29, 2012, respectively. The amounts presented within discontinued operations are costs directly related to the 2012 Separation that are not expected to provide a future benefit to the Company. The components of the Separation Charges incurred within continuing operations and discontinued operations consisted of the following ($ in millions):



	For the Quarter Ended June 28, 2013									For the Quarter Ended June 29, 2012
	Continuing Operations			Discontinued Operations			Total			Continuing Operations			Discontinued Operations		Total
Professional fees	$	3		$	(1	)	$	2		$	—		$	30	$	30
Information technology related costs	3			(2		)	1			—			18		18
Employee compensation costs	3			—			3			9			3		12
Marketing costs	8			—			8			—			1		1
Interest expense	—			—			—			—			3		3
Other	5			—			5			1			7		8
Total pre-tax separation charges (gain)	22			(3		)	19			10			62		72
Tax-related separation charges	2			—			2			18			—		18
Tax benefit on pre-tax separation charges	(3		)	—			(3		)	(1		)	—		(1		)
Total separation charges (gain), net of tax	$	21		$	(3	)	$	18		$	27		$	62	$	89



	For the Nine Months Ended June 28, 2013									For the Nine Months Ended June 29, 2012
	Continuing Operations			Discontinued Operations			Total			Continuing Operations			Discontinued Operations		Total
Professional fees	$	3		$	3		$	6		$	—		$	107	$	107
Non-cash impairment charges	—			—			—			23			—		23
Information technology related costs	7			—			7			—			24		24
Employee compensation costs	3			2			5			16			5		21
Marketing costs	35			—			35			—			3		3
Interest expense	—			—			—			—			3		3
Other	8			(10		)	(2		)	1			14		15
Total pre-tax separation charges (gain)	56			(5		)	51			40			156		196
Tax-related separation charges	6			—			6			19			—		19
Tax benefit on pre-tax separation charges	(5		)	—			(5		)	(2		)	—		(2		)
Total separation charges (gain), net of tax	$	57		$	(5	)	$	52		$	57		$	156	$	213

Pre-tax Separation Charges were classified in continuing operations within the Company's Consolidated Statement of Operations as follows ($ in millions):



	For the Quarters Ended				For the Nine Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Selling, general and administrative expenses ("SG&A")	$	18	$	1	$	47	$	1
Separation costs	4		6		9		10
Restructuring and asset impairments charges, net	—		3		—		29
Total	$	22	$	10	$	56	$	40