Guarantor Financial Statements

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

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended March 25, 2016

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	2,331		$	—		$	2,331
Cost of product sales	—			—		—			968			—			968
Cost of services	—			—		—			506			—			506
Selling, general and administrative expenses	2			—		1			599			—			602
Merger costs	—			—		10			16			—			26
Restructuring and asset impairment charges, net	—			—		—			4			—			4
Operating (loss) income	(2		)	—		(11		)	238			—			225
Interest income	—			—		—			4			—			4
Interest expense	—			—		(22		)	—			—			(22		)
Other (expense) income, net	—			—		(1		)	1			—			—
Equity in net income of subsidiaries	145			144		156			—			(445		)	—
Intercompany interest and fees	5			—		22			(27		)	—			—
Income from continuing operations before income taxes	148			144		144			216			(445		)	207
Income tax expense	(2		)	—		—			(61		)	—			(63		)
Income from continuing operations	146			144		144			155			(445		)	144
Income from discontinued operations, net of income taxes	—			—		—			1			—			1
Net income	146			144		144			156			(445		)	145
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(1		)	—			(1		)
Net income attributable to Tyco ordinary shareholders	$	146		$	144	$	144		$	157		$	(445	)	$	146

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Quarter Ended March 25, 2016

($ in millions)



	Tyco International plc		Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	146	$	144	$	144		$	156		$	(445	)	$	145
Other comprehensive income (loss), net of tax
Foreign currency translation	44		—		(13		)	57			(44		)	44
Defined benefit and post retirement plans	3		—		—			3			(3		)	3
Unrealized gain on marketable securities and derivative instruments, net of tax	2		—		—			2			(2		)	2
Total other comprehensive income (loss), net of tax	49		—		(13		)	62			(49		)	49
Comprehensive income	195		144		131			218			(494		)	194
Less: comprehensive loss attributable to noncontrolling interests	—		—		—			(1		)	—			(1		)
Comprehensive income attributable to Tyco ordinary shareholders	$	195	$	144	$	131		$	219		$	(494	)	$	195

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended March 27, 2015

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	2,430		$	—		$	2,430
Cost of product sales	—			—		—			999			—			999
Cost of services	—			—		—			550			—			550
Selling, general and administrative expenses	2			—		—			646			—			648
Restructuring and asset impairment charges, net	—			—		—			12			—			12
Operating (loss) income	(2		)	—		—			223			—			221
Interest income	—			—		—			4			—			4
Interest expense	—			—		(24		)	(1		)	—			(25		)
Other (expense) income, net	—			—		(2		)	1			—			(1		)
Equity in net income of subsidiaries	152			158		160			—			(470		)	—
Intercompany interest and fees	17			—		24			(41		)	—			—
Income from continuing operations before income taxes	167			158		158			186			(470		)	199
Income tax expense	—			—		—			(18		)	—			(18		)
Income from continuing operations	167			158		158			168			(470		)	181
Loss from discontinued operations, net of income taxes	—			—		—			(16		)	—			(16		)
Net income	167			158		158			152			(470		)	165
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(2		)	—			(2		)
Net income attributable to Tyco ordinary shareholders	$	167		$	158	$	158		$	154		$	(470	)	$	167

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Quarter Ended March 27, 2015

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	167		$	158	$	158	$	152		$	(470	)	$	165
Other comprehensive (loss) income, net of tax
Foreign currency translation	(176		)	—		16		(192		)	176			(176		)
Defined benefit and post retirement plans	4			—		—		4			(4		)	4
Total other comprehensive (loss) income, net of tax	(172		)	—		16		(188		)	172			(172		)
Comprehensive (loss) income	(5		)	158		174		(36		)	(298		)	(7		)
Less: comprehensive loss attributable to noncontrolling interests	—			—		—		(2		)	—			(2		)
Comprehensive (loss) income attributable to Tyco ordinary shareholders	$	(5	)	$	158	$	174	$	(34	)	$	(298	)	$	(5	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended March 25, 2016

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	4,707		$	—		$	4,707
Cost of product sales	—			—		—			1,930			—			1,930
Cost of services	—			—		—			1,042			—			1,042
Selling, general and administrative expenses	4			—		1			1,170			—			1,175
Merger costs	—			—		10			16			—			26
Restructuring and asset impairment charges, net	—			—		—			16			—			16
Operating (loss) income	(4		)	—		(11		)	533			—			518
Interest income	—			—		—			8			—			8
Interest expense	—			—		(45		)	(1		)	—			(46		)
Other (expense) income, net	—			—		(166		)	1			—			(165		)
Equity in net income of subsidiaries	163			160		335			—			(658		)	—
Intercompany interest and fees	65			—		47			(112		)	—			—
Income from continuing operations before income taxes	224			160		160			429			(658		)	315
Income tax expense	(2		)	—		—			(97		)	—			(99		)
Income from continuing operations	222			160		160			332			(658		)	216
Income from discontinued operations, net of income taxes	—			—		—			5			—			5
Net income	222			160		160			337			(658		)	221
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(1		)	—			(1		)
Net income attributable to Tyco ordinary shareholders	$	222		$	160	$	160		$	338		$	(658	)	$	222

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Six Months Ended March 25, 2016

($ in millions)




	Tyco International plc		Tyco Fire & Security Finance SCA		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	222	$	160	$	160	$	337		$	(658	)	$	221
Other comprehensive income, net of tax
Foreign currency translation	1		—		1		—			(1		)	1
Defined benefit and post retirement plans	8		—		—		8			(8		)	8
Unrealized gain on marketable securities and derivative instruments, net of tax	3		—		—		3			(3		)	3
Total other comprehensive income, net of tax	12		—		1		11			(12		)	12
Comprehensive income	234		160		161		348			(670		)	233
Less: comprehensive loss attributable to noncontrolling interests	—		—		—		(1		)	—			(1		)
Comprehensive income attributable to Tyco ordinary shareholders	$	234	$	160	$	161	$	349		$	(670	)	$	234

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended March 27, 2015

($ in millions)




	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	4,908		$	—		$	4,908
Cost of product sales	—			—		—			2,021			—			2,021
Cost of services	—			—		—			1,097			—			1,097
Selling, general and administrative expenses	5			—		1			1,294			—			1,300
Restructuring and asset impairment charges, net	—			—		—			70			—			70
Operating (loss) income	(5		)	—		(1		)	426			—			420
Interest income	—			—		—			7			—			7
Interest expense	—			—		(48		)	(1		)	—			(49		)
Other income, net	—			—		2			1			—			3
Equity in net income of subsidiaries	295			291		287			—			(873		)	—
Intercompany interest and fees	39			—		51			(90		)	—			—
Income from continuing operations before income taxes	329			291		291			343			(873		)	381
Income tax expense	—			—		—			(37		)	—			(37		)
Income from continuing operations	329			291		291			306			(873		)	344
Loss from discontinued operations, net of income taxes	—			—		—			(18		)	—			(18		)
Net income	329			291		291			288			(873		)	326
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(3		)	—			(3		)
Net income attributable to Tyco ordinary shareholders	$	329		$	291	$	291		$	291		$	(873	)	$	329

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Six Months Ended March 27, 2015

($ in millions)




	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	329		$	291	$	291	$	288		$	(873	)	$	326
Other comprehensive (loss) income, net of tax
Foreign currency translation	(374		)	—		15		(389		)	374			(374		)
Defined benefit and post retirement plans	9			—		—		9			(9		)	9
Total other comprehensive (loss) income, net of tax	(365		)	—		15		(380		)	365			(365		)
Comprehensive (loss) income	(36		)	291		306		(92		)	(508		)	(39		)
Less: comprehensive loss attributable to noncontrolling interests	—			—		—		(3		)	—			(3		)
Comprehensive (loss) income attributable to Tyco ordinary shareholders	$	(36	)	$	291	$	306	$	(89	)	$	(508	)	$	(36	)

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 25, 2016

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.		Other Subsidiaries		Consolidating Adjustments			Total
Assets
Current Assets:
Cash and cash equivalents	$	—		$	—	$	—	$	345	$	—		$	345
Accounts receivable, net	—			—		—		1,722		—			1,722
Inventories	—			—		—		670		—			670
Intercompany receivables	15			—		496		7,629		(8,140		)	—
Prepaid expenses and other current assets	1			—		58		805		—			864
Deferred income taxes	—			—		—		62		—			62
Total Current Assets	16			—		554		11,233		(8,140		)	3,663
Property, plant and equipment, net	—			—		—		1,189		—			1,189
Goodwill	—			—		—		4,460		—			4,460
Intangible assets, net	—			—		—		1,025		—			1,025
Investment in subsidiaries	11,086			11,343		16,373		—		(38,802		)	—
Intercompany loans receivable	—			—		2,937		5,100		(8,037		)	—
Other assets	1			—		50		1,223		—			1,274
Total Assets	$	11,103		$	11,343	$	19,914	$	24,230	$	(54,979	)	$	11,611
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—		$	—	$	400	$	—	$	—		$	400
Accounts payable	2			—		—		795		—			797
Accrued and other current liabilities	89			—		96		1,458		—			1,643
Deferred revenue	—			—		—		393		—			393
Intercompany payables	3,704			—		3,931		505		(8,140		)	—
Total Current Liabilities	3,795			—		4,427		3,151		(8,140		)	3,233
Long-term debt	—			—		2,158		1		—			2,159
Intercompany loans payable	3,166			—		1,934		2,937		(8,037		)	—
Deferred revenue	—			—		—		285		—			285
Other liabilities	—			—		52		1,704		—			1,756
Total Liabilities	6,961			—		8,571		8,078		(16,177		)	7,433
Tyco Shareholders' Equity:
Ordinary shares	4			—		—		—		—			4
Ordinary shares held in treasury	(15		)	—		—		—		—			(15		)
Other shareholders' equity	4,153			11,343		11,343		16,116		(38,802		)	4,153
Total Tyco Shareholders' Equity	4,142			11,343		11,343		16,116		(38,802		)	4,142
Nonredeemable noncontrolling interest	—			—		—		36		—			36
Total Equity	4,142			11,343		11,343		16,152		(38,802		)	4,178
Total Liabilities and Equity	$	11,103		$	11,343	$	19,914	$	24,230	$	(54,979	)	$	11,611

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 25, 2015

($ in millions)



	Tyco International plc		Tyco Fire & Security Finance SCA		Tyco International Finance S.A.		Other Subsidiaries		Consolidating Adjustments			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	—	$	—	$	1,401	$	—		$	1,401
Accounts receivable, net	—		—		—		1,732		—			1,732
Inventories	—		—		—		624		—			624
Intercompany receivables	15		—		332		6,508		(6,855		)	—
Prepaid expenses and other current assets	—		—		63		691		—			754
Deferred income taxes	—		—		—		62		—			62
Assets held for sale	—		—		—		102		—			102
Total Current Assets	15		—		395		11,120		(6,855		)	4,675
Property, plant and equipment, net	—		—		—		1,177		—			1,177
Goodwill	—		—		—		4,234		—			4,234
Intangible assets, net	—		—		—		863		—			863
Investment in subsidiaries	10,885		11,148		16,001		—		(38,034		)	—
Intercompany loans receivable	—		—		2,942		5,066		(8,008		)	—
Other assets	1		—		44		1,327		—			1,372
Total Assets	$	10,901	$	11,148	$	19,382	$	23,787	$	(52,897	)	$	12,321
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—	$	—	$	967	$	20	$	—		$	987
Accounts payable	1		—		—		773		—			774
Accrued and other current liabilities	88		—		61		1,512		—			1,661
Deferred revenue	—		—		—		380		—			380
Intercompany payables	3,616		—		2,892		347		(6,855		)	—
Liabilities held for sale	—		—		—		50		—			50
Total Current Liabilities	3,705		—		3,920		3,082		(6,855		)	3,852
Long-term debt	—		—		2,158		1		—			2,159
Intercompany loans payable	3,155		—		1,911		2,942		(8,008		)	—
Deferred revenue	—		—		—		303		—			303
Other liabilities	—		—		245		1,686		—			1,931
Total Liabilities	6,860		—		8,234		8,014		(14,863		)	8,245
Tyco Shareholders' Equity:
Ordinary shares	4		—		—		—		—			4
Other shareholders' equity	4,037		11,148		11,148		15,738		(38,034		)	4,037
Total Tyco Shareholders' Equity	4,041		11,148		11,148		15,738		(38,034		)	4,041
Nonredeemable noncontrolling interest	—		—		—		35		—			35
Total Equity	4,041		11,148		11,148		15,773		(38,034		)	4,076
Total Liabilities and Equity	$	10,901	$	11,148	$	19,382	$	23,787	$	(52,897	)	$	12,321

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended March 25, 2016

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Cash Flows From Operating Activities:
Net cash provided by (used in) operating activities	$	160		$	—	$	701		$	(548	)	$	—		$	313
Net cash used in discontinued operating activities	—			—		—			(11		)	—			(11		)
Cash Flows From Investing Activities:
Capital expenditures	—			—		—			(143		)	—			(143		)
Acquisition of businesses, net of cash acquired	—			—		—			(314		)	—			(314		)
Acquisition of dealer generated customer accounts and bulk account purchases	—			—		—			(11		)	—			(11		)
Divestiture of businesses, net of cash divested	—			—		—			9			—			9
Net decrease in intercompany loans	—			—		28			—			(28		)	—
Sales and maturities of investments including restricted investments	—			—		5			3			—			8
Purchases of investments including restricted investments	—			—		—			(7		)	—			(7		)
Decrease in restricted cash	—			—		—			24			—			24
Other	—			—		—			1			—			1
Net cash provided by (used in) investing activities	—			—		33			(438		)	(28		)	(433		)
Net cash provided by discontinued investing activities	—			—		—			4			—			4
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt	—			—		2,498			—			—			2,498
Repayment of short-term debt	—			—		(2,098		)	—			—			(2,098		)
Repayment of current portion of long-term debt	—			—		(1,134		)	—			—			(1,134		)
Proceeds from exercise of share options	26			—		—			—			—			26
Dividends paid	(174		)	—		—			—			—			(174		)
Net intercompany loan repayments	—			—		—			(28		)	28			—
Transfer to discontinued operations	—			—		—			(7		)	—			(7		)
Payment of contingent consideration	—			—		—			(1		)	—			(1		)
Debt financing costs	—			—		—			(23		)	—			(23		)
Other	(12		)	—		—			(1		)	—			(13		)
Net cash used in financing activities	(160		)	—		(734		)	(60		)	28			(926		)
Net cash provided by discontinued financing activities	—			—		—			7			—			7
Effect of currency translation on cash	—			—		—			(10		)	—			(10		)
Net decrease in cash and cash equivalents	—			—		—			(1,056		)	—			(1,056		)
Cash and cash equivalents at beginning of period	—			—		—			1,401			—			1,401
Cash and cash equivalents at end of period	$	—		$	—	$	—		$	345		$	—		$	345

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended March 27, 2015

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Cash Flows From Operating Activities:
Net cash provided by (used in) operating activities	$	20		$	—	$	(504	)	$	746		$	—		$	262
Net cash provided by discontinued operating activities	—			—		—			3			—			3
Cash Flows From Investing Activities:
Capital expenditures	—			—		—			(123		)	—			(123		)
Acquisition of businesses, net of cash acquired	—			—		—			(525		)	—			(525		)
Acquisition of dealer generated customer accounts and bulk purchases	—			—		—			(8		)	—			(8		)
Divestiture of businesses, net of cash divested	—			—		—			(1		)	—			(1		)
Net increase in intercompany loans	—			—		(59		)	—			59			—
Sales and maturities of investments including restricted investments	—			—		—			279			—			279
Purchases of investments including restricted investments	—			—		—			(288		)	—			(288		)
Increase in restricted cash	—			—		—			(39		)	—			(39		)
Other	—			—		—			2			—			2
Net cash used in investing activities	—			—		(59		)	(703		)	59			(703		)
Net cash used in discontinued investing activities	—			—		—			(15		)	—			(15		)
Cash Flows From Financing Activities:
Repayment of short-term debt	—			—		—			(1		)	—			(1		)
Proceeds from issuance of long-term debt	—			—		567			—			—			567
Proceeds from exercise of share options	50			—		—			7			—			57
Dividends paid	(151		)	—		—			—			—			(151		)
Repurchase of ordinary shares	—			—		—			(417		)	—			(417		)
Net intercompany loan borrowings	83			—		—			(24		)	(59		)	—
Transfer to discontinued operations	—			—		—			(12		)	—			(12		)
Payment of contingent consideration	—			—		—			(23		)	—			(23		)
Debt financing costs	—			—		(4		)	—			—			(4		)
Other	(2		)	—		—			(17		)	—			(19		)
Net cash (used in) provided by financing activities	(20		)	—		563			(487		)	(59		)	(3		)
Net cash provided by discontinued financing activities	—			—		—			12			—			12
Effect of currency translation on cash	—			—		—			(16		)	—			(16		)
Net decrease in cash and cash equivalents	—			—		—			(460		)	—			(460		)
Cash and cash equivalents at beginning of period	—			—		—			892			—			892
Cash and cash equivalents at end of period	$	—		$	—	$	—		$	432		$	—		$	432