Tyco International Finance S.A.

TIFSA, a 100% owned subsidiary of the Company, has public debt securities outstanding which are fully and unconditionally guaranteed by Tyco. The following tables present condensed consolidating financial information for Tyco, TIFSA and all other subsidiaries. Condensed financial information for Tyco and TIFSA on a stand-alone basis is presented using the equity method of accounting for subsidiaries.

During the fourth quarter of fiscal 2013, the Company transferred certain investments in subsidiaries from Tyco to TIFSA. There was no impact on the Company’s financial position, results of operations and cash flows as the transactions were entirely among wholly-owned subsidiaries of Tyco. The transactions, which increased TIFSA’s investment in subsidiaries, were among entities under common control and their effects have been reflected as of the beginning of the earliest period presented, which resulted in a net increase to TIFSA’s Equity in net income of subsidiaries of $8 million and $16 million for the quarter and nine months ended June 28, 2013, respectively.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended June 27, 2014

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	2,662		$	—		$	2,662
Cost of product sales	—			—			1,106			—			1,106
Cost of services	—			—			572			—			572
Selling, general and administrative expenses	5			1			665			—			671
Restructuring and asset impairment charges, net	—			—			17			—			17
Operating (loss) income	(5		)	(1		)	302			—			296
Interest income	—			—			4			—			4
Interest expense	—			(23		)	(1		)	—			(24		)
Other (expense) income, net	(1		)	—			1			—			—
Equity in net income of subsidiaries	1,468			1,466			—			(2,934		)	—
Intercompany interest and fees	(13		)	14			4			(5		)	—
Income from continuing operations before income taxes	1,449			1,456			310			(2,939		)	276
Income tax benefit (expense)	1			(1		)	(55		)	—			(55		)
Equity income in earnings of unconsolidated subsidiaries	—			—			215			—			215
Income from continuing operations	1,450			1,455			470			(2,939		)	436
Income from discontinued operations, net of income taxes	—			—			1,011			5			1,016
Net income	1,450			1,455			1,481			(2,934		)	1,452
Less: noncontrolling interest in subsidiaries net income	—			—			2			—			2
Net income attributable to Tyco common shareholders	$	1,450		$	1,455		$	1,479		$	(2,934	)	$	1,450

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Quarter Ended June 27, 2014

($ in millions)



	Tyco International Ltd.		Tyco International Finance S.A.		Other Subsidiaries		Consolidating Adjustments			Total
Net income	$	1,450	$	1,455	$	1,481	$	(2,934	)	$	1,452
Other comprehensive income, net of tax
Foreign currency translation	28		—		28		(28		)	28
Defined benefit and post retirement plans	9		—		9		(9		)	9
Total other comprehensive income, net of tax	37		—		37		(37		)	37
Comprehensive income	1,487		1,455		1,518		(2,971		)	1,489
Less: comprehensive income attributable to noncontrolling interests	—		—		2		—			2
Comprehensive income attributable to Tyco common shareholders	$	1,487	$	1,455	$	1,516	$	(2,971	)	$	1,487

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended June 28, 2013

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	2,537		$	—		$	2,537
Cost of product sales	—			—			1,000			—			1,000
Cost of services	—			—			606			—			606
Selling, general and administrative expenses	2			1			709			—			712
Separation costs	—			—			4			—			4
Restructuring and asset impairment charges, net	—			—			53			—			53
Operating (loss) income	(2		)	(1		)	165			—			162
Interest income	2			—			4			—			6
Interest expense	(1		)	(24		)	(1		)	—			(26		)
Other expense, net	(1		)	—			—			—			(1		)
Equity in net income of subsidiaries	160			128			—			(288		)	—
Intercompany interest and fees	(23		)	3			20			—			—
Income from continuing operations before income taxes	135			106			188			(288		)	141
Income tax expense	—			(2		)	(21		)	—			(23		)
Equity loss in earnings of unconsolidated subsidiaries	—			—			(6		)	—			(6		)
Income from continuing operations	135			104			161			(288		)	112
Income from discontinued operations, net of income taxes	—			—			23			—			23
Net income	135			104			184			(288		)	135
Less: noncontrolling interest in subsidiaries net loss	—			—			—			—			—
Net income attributable to Tyco common shareholders	$	135		$	104		$	184		$	(288	)	$	135

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Quarter Ended June 28, 2013

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	135		$	104	$	184		$	(288	)	$	135
Other comprehensive (loss) income, net of tax
Foreign currency translation	(134		)	—		(134		)	134			(134		)
Defined benefit and post retirement plans	5			—		5			(5		)	5
Unrealized loss on marketable securities and derivative instruments	(1		)	—		(1		)	1			(1		)
Total other comprehensive loss, net of tax	(130		)	—		(130		)	130			(130		)
Comprehensive income	5			104		54			(158		)	5
Less: comprehensive income attributable to noncontrolling interests	—			—		—			—			—
Comprehensive income attributable to Tyco common shareholders	$	5		$	104	$	54		$	(158	)	$	5

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended June 27, 2014

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	7,636		$	—		$	7,636
Cost of product sales	—			—			3,108			—			3,108
Cost of services	—			—			1,725			—			1,725
Selling, general and administrative expenses	(8		)	3			1,883			—			1,878
Separation costs	—			—			1			—			1
Restructuring and asset impairment charges, net	—			—			27			—			27
Operating income (loss)	8			(3		)	892			—			897
Interest income	—			—			10			—			10
Interest expense	—			(71		)	(2		)	—			(73		)
Other (expense) income, net	(4		)	—			2			—			(2		)
Equity in net income of subsidiaries	1,935			1,882			—			(3,817		)	—
Intercompany interest and fees	(11		)	31			(15		)	(5		)	—
Income from continuing operations before income taxes	1,928			1,839			887			(3,822		)	832
Income tax benefit (expense)	1			(1		)	(164		)	—			(164		)
Equity income in earnings of unconsolidated subsidiaries	—			—			206			—			206
Income from continuing operations	1,929			1,838			929			(3,822		)	874
(Loss) income from discontinued operations, net of income taxes	(2		)	—			1,054			5			1,057
Net income	1,927			1,838			1,983			(3,817		)	1,931
Less: noncontrolling interest in subsidiaries net income	—			—			4			—			4
Net income attributable to Tyco common shareholders	$	1,927		$	1,838		$	1,979		$	(3,817	)	$	1,927

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended June 27, 2014

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	1,927		$	1,838	$	1,983		$	(3,817	)	$	1,931
Other comprehensive (loss) income, net of tax
Foreign currency translation	(24		)	—		(24		)	24			(24		)
Defined benefit and post retirement plans	16			—		16			(16		)	16
Total other comprehensive loss, net of tax	(8		)	—		(8		)	8			(8		)
Comprehensive income	1,919			1,838		1,975			(3,809		)	1,923
Less: comprehensive income attributable to noncontrolling interests	—			—		4			—			4
Comprehensive income attributable to Tyco common shareholders	$	1,919		$	1,838	$	1,971		$	(3,809	)	$	1,919

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended June 28, 2013

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	7,463		$	—		$	7,463
Cost of product sales	—			—			2,956			—			2,956
Cost of services	—			—			1,813			—			1,813
Selling, general and administrative expenses	9			2			2,118			—			2,129
Separation costs	4			—			5			—			9
Restructuring and asset impairment charges, net	—			—			82			—			82
Operating (loss) income	(13		)	(2		)	489			—			474
Interest income	2			—			11			—			13
Interest expense	(1		)	(71		)	(3		)	—			(75		)
Other (expense) income, net	(31		)	—			1			—			(30		)
Equity in net income of subsidiaries	625			409			—			(1,034		)	—
Intercompany interest and fees	(212		)	100			112			—			—
Income from continuing operations before income taxes	370			436			610			(1,034		)	382
Income tax expense	—			(2		)	(54		)	—			(56		)
Equity loss in earnings of unconsolidated subsidiaries	—			—			(18		)	—			(18		)
Income from continuing operations	370			434			538			(1,034		)	308
Income from discontinued operations, net of income taxes	—			—			62			—			62
Net income	370			434			600			(1,034		)	370
Less: noncontrolling interest in subsidiaries net income	—			—			—			—			—
Net income attributable to Tyco common shareholders	$	370		$	434		$	600		$	(1,034	)	$	370

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended June 28, 2013

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	370		$	434	$	600		$	(1,034	)	$	370
Other comprehensive (loss) income, net of tax
Foreign currency translation	(225		)	—		(225		)	225			(225		)
Defined benefit and post retirement plans	14			—		14			(14		)	14
Total other comprehensive loss, net of tax	(211		)	—		(211		)	211			(211		)
Comprehensive income	159			434		389			(823		)	159
Less: comprehensive income attributable to noncontrolling interests	—			—		—			—			—
Comprehensive income attributable to Tyco common shareholders	$	159		$	434	$	389		$	(823	)	$	159

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 27, 2014

($ in millions)



	Tyco International Ltd.		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	—	$	1,912		$	—		$	1,912
Accounts receivable, net	—		—		1,739			—			1,739
Inventories	—		—		650			—			650
Intercompany receivables	22		2,174		7,921			(10,117		)	—
Prepaid expenses and other current assets	18		—		1,123			—			1,141
Deferred income taxes	—		—		250			—			250
Assets held for sale	—		—		27			—			27
Total current assets	40		2,174		13,622			(10,117		)	5,719
Property, plant and equipment, net	—		—		1,283			—			1,283
Goodwill	—		—		4,212			—			4,212
Intangible assets, net	—		—		765			—			765
Investment in subsidiaries	14,082		16,634		—			(30,716		)	—
Intercompany loans receivable	—		1,607		5,339			(6,946		)	—
Other assets	38		5		754			—			797
Total Assets	$	14,160	$	20,420	$	25,975		$	(47,779	)	$	12,776
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—	$	—	$	20		$	—		$	20
Accounts payable	—		—		851			—			851
Accrued and other current liabilities	291		34		1,637			—			1,962
Deferred revenue	—		—		411			—			411
Intercompany payables	3,516		4,418		2,183			(10,117		)	—
Liabilities held for sale	—		—		15			—			15
Total current liabilities	3,807		4,452		5,117			(10,117		)	3,259
Long-term debt	—		1,442		1			—			1,443
Intercompany loans payable	4,079		1,881		986			(6,946		)	—
Deferred revenue	—		—		344			—			344
Other liabilities	272		—		1,417			—			1,689
Total Liabilities	8,158		7,775		7,865			(17,063		)	6,735
Redeemable noncontrolling interest	—		—		13			—			13
Tyco Shareholders' Equity:
Common shares	208		—		—			—			208
Common shares held in treasury	—		—		(1,513		)	—			(1,513		)
Other shareholders' equity	5,794		12,645		19,584			(30,716		)	7,307
Total Tyco Shareholders' Equity	6,002		12,645		18,071			(30,716		)	6,002
Nonredeemable noncontrolling interest	—		—		26			—			26
Total Equity	6,002		12,645		18,097			(30,716		)	6,028
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	14,160	$	20,420	$	25,975		$	(47,779	)	$	12,776

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 27, 2013

($ in millions)



	Tyco International Ltd.		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	—	$	563		$	—		$	563
Accounts receivable, net	—		—		1,704			—			1,704
Inventories	—		—		645			—			645
Intercompany receivables	22		2,079		7,354			(9,455		)	—
Prepaid expenses and other current assets	9		—		830			—			839
Deferred income taxes	—		—		250			—			250
Assets held for sale	—		—		856			—			856
Total current assets	31		2,079		12,202			(9,455		)	4,857
Property, plant and equipment, net	—		—		1,284			—			1,284
Goodwill	—		—		4,162			—			4,162
Intangible assets, net	—		—		791			—			791
Investment in subsidiaries	12,826		14,690		—			(27,516		)	—
Intercompany loans receivable	—		1,141		5,310			(6,451		)	—
Other assets	68		6		1,008			—			1,082
Total Assets	$	12,925	$	17,916	$	24,757		$	(43,422	)	$	12,176
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—	$	—	$	20		$	—		$	20
Accounts payable	1		—		847			—			848
Accrued and other current liabilities	353		23		1,476			—			1,852
Deferred revenue	—		—		393			—			393
Intercompany payables	3,515		3,845		2,095			(9,455		)	—
Liabilities held for sale	—		—		236			—			236
Total current liabilities	3,869		3,868		5,067			(9,455		)	3,349
Long-term debt	—		1,443		—			—			1,443
Intercompany loans payable	3,660		1,852		939			(6,451		)	—
Deferred revenue	—		—		370			—			370
Other liabilities	298		—		1,583			—			1,881
Total Liabilities	7,827		7,163		7,959			(15,906		)	7,043
Redeemable noncontrolling interest	—		—		12			—			12
Tyco Shareholders' Equity:
Common shares	208		—		—			—			208
Common shares held in treasury	—		—		(912		)	—			(912		)
Other shareholders' equity	4,890		10,753		17,675			(27,516		)	5,802
Total Tyco Shareholders' Equity	5,098		10,753		16,763			(27,516		)	5,098
Nonredeemable noncontrolling interest	—		—		23			—			23
Total Equity	5,098		10,753		16,786			(27,516		)	5,121
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	12,925	$	17,916	$	24,757		$	(43,422	)	$	12,176

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended June 27, 2014

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Cash Flows From Operating Activities:
Net cash (used in) provided by operating activities	$	(184	)	$	455		$	249		$	—		$	520
Net cash provided by discontinued operating activities	—			—			100			—			100
Cash Flows From Investing Activities:
Capital expenditures	—			—			(210		)	—			(210		)
Proceeds from disposal of assets	—			—			7			—			7
Acquisition of businesses, net of cash acquired	—			—			(63		)	—			(63		)
Acquisition of dealer generated customer accounts and bulk account purchases	—			—			(20		)	—			(20		)
Net increase in intercompany loans	—			(446		)	—			446			—
(Increase) decrease in investment in subsidiaries	(4		)	(9		)	4			9			—
Sales and maturities of investments	—			—			283			—			283
Purchases of investments	—			—			(332		)	—			(332		)
Sale of equity investment	—			—			250			—			250
Other	—			—			2			—			2
Net cash used in investing activities	(4		)	(455		)	(79		)	455			(83		)
Net cash provided by discontinued investing activities	—			—			1,789			—			1,789
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt	—			830			—			—			830
Repayment of short-term debt	—			(830		)	(1		)	—			(831		)
Proceeds from exercise of share options	—			—			79			—			79
Dividends paid	(231		)	—			—			—			(231		)
Repurchase of common shares by treasury	—			—			(806		)	—			(806		)
Net intercompany loan borrowings	419			—			27			(446		)	—
Increase in equity from parent	—			—			9			(9		)	—
Transfer from discontinued operations	—			—			1,889			—			1,889
Other	—			—			(10		)	—			(10		)
Net cash provided by financing activities	188			—			1,187			(455		)	920
Net cash used in discontinued financing activities	—			—			(1,889		)	—			(1,889		)
Effect of currency translation on cash	—			—			(8		)	—			(8		)
Net increase in cash and cash equivalents	—			—			1,349			—			1,349
Cash and cash equivalents at beginning of period	—			—			563			—			563
Cash and cash equivalents at end of period	$	—		$	—		$	1,912		$	—		$	1,912

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended June 28, 2013

($ in millions)



	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Cash Flows From Operating Activities:
Net cash (used in) provided by operating activities	$	(242	)	$	388		$	214		$	—		$	360
Net cash provided by discontinued operating activities	—			—			117			—			117
Cash Flows From Investing Activities:
Capital expenditures	—			—			(205		)	—			(205		)
Proceeds from disposal of assets	—			—			4			—			4
Acquisition of businesses, net of cash acquired	—			—			(75		)	—			(75		)
Acquisition of dealer generated customer accounts and bulk account purchases	—			—			(14		)	—			(14		)
Intercompany dividend from subsidiary	—			32			—			(32		)	—
Net increase in intercompany loans	—			(359		)	—			359			—
Sales and maturities of investments	—			—			103			—			103
Purchases of investments	—			—			(182		)	—			(182		)
Other	—			—			6			—			6
Net cash used in investing activities	—			(327		)	(363		)	327			(363		)
Net cash used in discontinued investing activities	—			—			(82		)	—			(82		)
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt	—			380			—			—			380
Repayment of short-term debt	—			(380		)	(11		)	—			(391		)
Proceeds from exercise of share options	—			—			125			—			125
Dividends paid	(214		)	—			—			—			(214		)
Intercompany dividend to parent	—			—			(32		)	32			—
Repurchase of common shares by treasury	—			—			(300		)	—			(300		)
Net intercompany loan borrowings (repayments)	366			—			(7		)	(359		)	—
Transfer from (to) discontinued operations	90			(61		)	36			—			65
Other	—			—			(35		)	—			(35		)
Net cash provided by (used in) financing activities	242			(61		)	(224		)	(327		)	(370		)
Net cash used in by discontinued financing activities	—			—			(65		)	—			(65		)
Effect of currency translation on cash	—			—			(16		)	—			(16		)
Net decrease in cash and cash equivalents	—			—			(419		)	—			(419		)
Less: net decrease in cash and cash equivalents related to discontinued operations	—			—			(30		)	—			(30		)
Cash and cash equivalents at beginning of period	—			—			844			—			844
Cash and cash equivalents at end of period	$	—		$	—		$	455		$	—		$	455