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 June 24, 2016

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	2,449		$	—		$	2,449
Cost of product sales	—			—		—			1,026			—			1,026
Cost of services	—			—		—			508			—			508
Selling, general and administrative expenses	1			—		1			665			—			667
Merger costs	2			—		1			4			—			7
Restructuring and asset impairment charges, net	—			—		—			5			—			5
Operating (loss) income	(3		)	—		(2		)	241			—			236
Interest income	—			—		—			3			—			3
Interest expense	—			—		(22		)	—			—			(22		)
Other income, net	—			—		54			—			—			54
Equity in net income of subsidiaries	225			220		169			—			(614		)	—
Intercompany interest and fees	17			—		21			(38		)	—			—
Income from continuing operations before income taxes	239			220		220			206			(614		)	271
Income tax expense	—			—		—			(31		)	—			(31		)
Income from continuing operations	239			220		220			175			(614		)	240
Loss from discontinued operations, net of income taxes	—			—		—			(2		)	—			(2		)
Net income	239			220		220			173			(614		)	238
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(1		)	—			(1		)
Net income attributable to Tyco ordinary shareholders	$	239		$	220	$	220		$	174		$	(614	)	$	239

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Quarter Ended June 24, 2016

($ in millions)



	Tyco International plc		Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	239	$	220	$	220		$	173		$	(614	)	$	238
Other comprehensive income (loss), net of tax
Foreign currency translation	6		—		(6		)	12			(6		)	6
Defined benefit and post retirement plans	5		—		—			5			(5		)	5
Unrealized gain on marketable securities and derivative instruments, net of tax	3		—		—			3			(3		)	3
Total other comprehensive income (loss), net of tax	14		—		(6		)	20			(14		)	14
Comprehensive income	253		220		214			193			(628		)	252
Less: comprehensive loss attributable to noncontrolling interests	—		—		—			(1		)	—			(1		)
Comprehensive income attributable to Tyco ordinary shareholders	$	253	$	220	$	214		$	194		$	(628	)	$	253

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended June 26, 2015

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	2,489		$	—		$	2,489
Cost of product sales	—			—		—			1,025			—			1,025
Cost of services	—			—		—			548			—			548
Selling, general and administrative expenses	1			—		—			624			—			625
Restructuring and asset impairment charges, net	—			—		—			38			—			38
Operating (loss) income	(1		)	—		—			254			—			253
Interest income	—			—		—			4			—			4
Interest expense	—			—		(25		)	(1		)	—			(26		)
Other income, net	—			—		1			5			—			6
Equity in net income of subsidiaries	145			165		166			—			(476		)	—
Intercompany interest and fees	12			—		23			(35		)	—			—
Income from continuing operations before income taxes	156			165		165			227			(476		)	237
Income tax expense	—			—		—			(49		)	—			(49		)
Income from continuing operations	156			165		165			178			(476		)	188
Loss from discontinued operations, net of income taxes	—			—		—			(32		)	—			(32		)
Net income	156			165		165			146			(476		)	156
Less: noncontrolling interest in subsidiaries net loss	—			—		—			—			—			—
Net income attributable to Tyco ordinary shareholders	$	156		$	165	$	165		$	146		$	(476	)	$	156

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Quarter Ended June 26, 2015

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	156		$	165	$	165		$	146		$	(476	)	$	156
Other comprehensive income (loss), net of tax
Foreign currency translation	28			—		(12		)	40			(28		)	28
Defined benefit and post retirement plans	4			—		—			4			(4		)	4
Unrealized loss on marketable securities and derivative instruments, net of tax	(4		)	—		—			(4		)	4			(4		)
Total other comprehensive income (loss), net of tax	28			—		(12		)	40			(28		)	28
Comprehensive income	184			165		153			186			(504		)	184
Less: comprehensive income attributable to noncontrolling interests	—			—		—			—			—			—
Comprehensive income attributable to Tyco ordinary shareholders	$	184		$	165	$	153		$	186		$	(504	)	$	184

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended June 24, 2016

($ in millions)



	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	7,156		$	—		$	7,156
Cost of product sales	—			—		—			2,956			—			2,956
Cost of services	—			—		—			1,550			—			1,550
Selling, general and administrative expenses	5			—		2			1,835			—			1,842
Merger costs	2			—		11			20			—			33
Restructuring and asset impairment charges, net	—			—		—			21			—			21
Operating (loss) income	(7		)	—		(13		)	774			—			754
Interest income	—			—		—			11			—			11
Interest expense	—			—		(67		)	(1		)	—			(68		)
Other (expense) income, net	—			—		(112		)	1			—			(111		)
Equity in net income of subsidiaries	388			380		504			—			(1,272		)	—
Intercompany interest and fees	82			—		68			(150		)	—			—
Income from continuing operations before income taxes	463			380		380			635			(1,272		)	586
Income tax expense	(2		)	—		—			(128		)	—			(130		)
Income from continuing operations	461			380		380			507			(1,272		)	456
Income from discontinued operations, net of income taxes	—			—		—			3			—			3
Net income	461			380		380			510			(1,272		)	459
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(2		)	—			(2		)
Net income attributable to Tyco ordinary shareholders	$	461		$	380	$	380		$	512		$	(1,272	)	$	461

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended June 24, 2016

($ in millions)




	Tyco International plc		Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	461	$	380	$	380		$	510		$	(1,272	)	$	459
Other comprehensive income (loss), net of tax
Foreign currency translation	7		—		(5		)	12			(7		)	7
Defined benefit and post retirement plans	13		—		—			13			(13		)	13
Unrealized gain on marketable securities and derivative instruments, net of tax	6		—		—			6			(6		)	6
Total other comprehensive income (loss), net of tax	26		—		(5		)	31			(26		)	26
Comprehensive income	487		380		375			541			(1,298		)	485
Less: comprehensive loss attributable to noncontrolling interests	—		—		—			(2		)	—			(2		)
Comprehensive income attributable to Tyco ordinary shareholders	$	487	$	380	$	375		$	543		$	(1,298	)	$	487

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended June 26, 2015

($ in millions)




	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—	$	—		$	7,397		$	—		$	7,397
Cost of product sales	—			—		—			3,046			—			3,046
Cost of services	—			—		—			1,645			—			1,645
Selling, general and administrative expenses	6			—		1			1,918			—			1,925
Restructuring and asset impairment charges, net	—			—		—			108			—			108
Operating (loss) income	(6		)	—		(1		)	680			—			673
Interest income	—			—		—			11			—			11
Interest expense	—			—		(73		)	(2		)	—			(75		)
Other income, net	—			—		3			6			—			9
Equity in net income of subsidiaries	440			456		453			—			(1,349		)	—
Intercompany interest and fees	51			—		74			(125		)	—			—
Income from continuing operations before income taxes	485			456		456			570			(1,349		)	618
Income tax expense	—			—		—			(86		)	—			(86		)
Income from continuing operations	485			456		456			484			(1,349		)	532
Loss from discontinued operations, net of income taxes	—			—		—			(50		)	—			(50		)
Net income	485			456		456			434			(1,349		)	482
Less: noncontrolling interest in subsidiaries net loss	—			—		—			(3		)	—			(3		)
Net income attributable to Tyco ordinary shareholders	$	485		$	456	$	456		$	437		$	(1,349	)	$	485

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended June 26, 2015

($ in millions)




	Tyco International plc			Tyco Fire & Security Finance SCA		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	485		$	456	$	456	$	434		$	(1,349	)	$	482
Other comprehensive (loss) income, net of tax
Foreign currency translation	(346		)	—		3		(349		)	346			(346		)
Defined benefit and post retirement plans	13			—		—		13			(13		)	13
Unrealized loss on marketable securities and derivative instruments	(4		)	—		—		(4		)	4			(4		)
Total other comprehensive (loss) income, net of tax	(337		)	—		3		(340		)	337			(337		)
Comprehensive income	148			456		459		94			(1,012		)	145
Less: comprehensive loss attributable to noncontrolling interests	—			—		—		(3		)	—			(3		)
Comprehensive income attributable to Tyco ordinary shareholders	$	148		$	456	$	459	$	97		$	(1,012	)	$	148

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 24, 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	—			—		—		1,805		—			1,805
Inventories	—			—		—		656		—			656
Intercompany receivables	10			—		553		7,750		(8,313		)	—
Prepaid expenses and other current assets	1			—		56		826		—			883
Deferred income taxes	—			—		—		62		—			62
Assets held for sale	—			—		—		71		—			71
Total Current Assets	11			—		609		11,515		(8,313		)	3,822
Property, plant and equipment, net	—			—		—		1,180		—			1,180
Goodwill	—			—		—		4,418		—			4,418
Intangible assets, net	—			—		—		966		—			966
Investment in subsidiaries	11,339			11,581		16,569		—		(39,489		)	—
Intercompany loans receivable	—			—		13,987		16,166		(30,153		)	—
Other assets	—			—		21		1,207		—			1,228
Total Assets	$	11,350		$	11,581	$	31,186	$	35,452	$	(77,955	)	$	11,614
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—		$	—	$	341	$	—	$	—		$	341
Accounts payable	1			—		—		798		—			799
Accrued and other current liabilities	90			—		61		1,413		—			1,564
Deferred revenue	—			—		—		378		—			378
Intercompany payables	3,736			—		4,023		554		(8,313		)	—
Liabilities held for sale	—			—		—		34		—			34
Total Current Liabilities	3,827			—		4,425		3,177		(8,313		)	3,116
Long-term debt	—			—		2,164		1		—			2,165
Intercompany loans payable	3,172			—		12,994		13,987		(30,153		)	—
Deferred revenue	—			—		—		284		—			284
Other liabilities	—			—		22		1,641		—			1,663
Total Liabilities	6,999			—		19,605		19,090		(38,466		)	7,228
Tyco Shareholders' Equity:
Ordinary shares	4			—		—		—		—			4
Ordinary shares held in treasury	(15		)	—		—		—		—			(15		)
Other shareholders' equity	4,362			11,581		11,581		16,327		(39,489		)	4,362
Total Tyco Shareholders' Equity	4,351			11,581		11,581		16,327		(39,489		)	4,351
Nonredeemable noncontrolling interest	—			—		—		35		—			35
Total Equity	4,351			11,581		11,581		16,362		(39,489		)	4,386
Total Liabilities and Equity	$	11,350		$	11,581	$	31,186	$	35,452	$	(77,955	)	$	11,614

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	—			—		—		1,722		—			1,722
Inventories	—			—		—		620		—			620
Intercompany receivables	15			—		332		6,508		(6,855		)	—
Prepaid expenses and other current assets	—			—		63		687		—			750
Deferred income taxes	—			—		—		62		—			62
Assets held for sale	—			—		—		208		—			208
Total Current Assets	15			—		395		11,208		(6,855		)	4,763
Property, plant and equipment, net	—			—		—		1,166		—			1,166
Goodwill	—			—		—		4,203		—			4,203
Intangible assets, net	—			—		—		822		—			822
Investment in subsidiaries	10,885			11,140		15,993		—		(38,018		)	—
Intercompany loans receivable	—			—		2,942		5,066		(8,008		)	—
Other assets	1			—		44		1,322		—			1,367
Total Assets	$	10,901		$	11,140	$	19,374	$	23,787	$	(52,881	)	$	12,321
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—		$	—	$	967	$	20	$	—		$	987
Accounts payable	1			—		—		763		—			764
Accrued and other current liabilities	88			—		61		1,495		—			1,644
Deferred revenue	—			—		—		379		—			379
Intercompany payables	3,616			—		2,892		347		(6,855		)	—
Liabilities held for sale	—			—		—		80		—			80
Total Current Liabilities	3,705			—		3,920		3,084		(6,855		)	3,854
Long-term debt	—			—		2,158		1		—			2,159
Intercompany loans payable	3,155			—		1,911		2,942		(8,008		)	—
Deferred revenue	—			—		—		302		—			302
Other liabilities	—			—		245		1,685		—			1,930
Total Liabilities	6,860			—		8,234		8,014		(14,863		)	8,245
Tyco Shareholders' Equity:
Ordinary shares	4			—		—		—		—			4
Ordinary shares held in treasury	(3		)	—		—		—		—			(3		)
Other shareholders' equity	4,040			11,140		11,140		15,738		(38,018		)	4,040
Total Tyco Shareholders' Equity	4,041			11,140		11,140		15,738		(38,018		)	4,041
Nonredeemable noncontrolling interest	—			—		—		35		—			35
Total Equity	4,041			11,140		11,140		15,773		(38,018		)	4,076
Total Liabilities and Equity	$	10,901		$	11,140	$	19,374	$	23,787	$	(52,881	)	$	12,321

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended June 24, 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	$	216		$	—	$	775		$	(487	)	$	—		$	504
Net cash used in discontinued operating activities	—			—		—			(12		)	—			(12		)
Cash Flows From Investing Activities:
Capital expenditures	—			—		—			(209		)	—			(209		)
Acquisition of businesses, net of cash acquired	—			—		—			(320		)	—			(320		)
Acquisition of dealer generated customer accounts and bulk account purchases	—			—		—			(17		)	—			(17		)
Divestiture of businesses, net of cash divested	—			—		—			14			—			14
Net decrease in intercompany loans	—			—		37			—			(37		)	—
Increase in investment in subsidiaries	—			—		(5		)	—			5			—
Sales and maturities of investments including restricted investments	—			—		7			19			—			26
Purchases of investments including restricted investments	—			—		—			(8		)	—			(8		)
Decrease in restricted cash	—			—		—			3			—			3
Net cash provided by (used in) investing activities	—			—		39			(518		)	(32		)	(511		)
Net cash provided by discontinued investing activities	—			—		—			4			—			4
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt	—			—		4,179			—			—			4,179
Repayment of short-term debt	—			—		(3,838		)	—			—			(3,838		)
Repayment of current portion of long-term debt	—			—		(1,134		)	—			—			(1,134		)
Proceeds from exercise of share options	57			—		—			—			—			57
Dividends paid	(261		)	—		—			—			—			(261		)
Net intercompany loan repayments	—			—		—			(37		)	37			—
Increase in equity from parent	—			—		—			5			(5		)	—
Transfer to discontinued operations	—			—		—			(8		)	—			(8		)
Payment of contingent consideration	—			—		—			(1		)	—			(1		)
Debt financing costs	—			—		(21		)	(2		)				(23		)
Other	(12		)	—		—			—			—			(12		)
Net cash used in financing activities	(216		)	—		(814		)	(43		)	32			(1,041		)
Net cash provided by discontinued financing activities	—			—		—			8			—			8
Effect of currency translation on cash	—			—		—			(8		)	—			(8		)
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 Nine Months Ended June 26, 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	$	94		$	—	$	(525	)	$	942		$	—		$	511
Net cash used in discontinued operating activities	—			—		—			(1		)	—			(1		)
Cash Flows From Investing Activities:
Capital expenditures	—			—		—			(183		)	—			(183		)
Acquisition of businesses, net of cash acquired	—			—		—			(525		)	—			(525		)
Acquisition of dealer generated customer accounts and bulk account purchases	—			—		—			(13		)	—			(13		)
Divestiture of businesses, net of cash divested	—			—		—			(1		)	—			(1		)
Net increase in intercompany loans	—			—		(41		)	—			41			—
Sales and maturities of investments including restricted investments	—			—		4			279			—			283
Purchases of investments including restricted investments	—			—		(1		)	(289		)	—			(290		)
Increase in restricted cash	—			—		—			(27		)	—			(27		)
Other	—			—		—			4			—			4
Net cash used in investing activities	—			—		(38		)	(755		)	41			(752		)
Net cash used in discontinued investing activities	—			—		—			(37		)	—			(37		)
Cash Flows From Financing Activities:
Proceeds from issuance of short-term debt	—			—		258			—			—			258
Repayment of short-term debt	—			—		(258		)	(1		)	—			(259		)
Proceeds from issuance of long-term debt	—			—		567			3			—			570
Proceeds from exercise of share options	63			—		—			7			—			70
Dividends paid	(237		)	—		—			—			—			(237		)
Repurchase of ordinary shares	—			—		—			(417		)	—			(417		)
Net intercompany loan borrowings	83			—		—			(42		)	(41		)	—
Transfer to discontinued operations	—			—		—			(38		)	—			(38		)
Payment of contingent consideration	—			—		—			(23		)	—			(23		)
Debt financing costs	—			—		(5		)	—			—			(5		)
Other	(3		)	—		1			(19		)	—			(21		)
Net cash (used in) provided by financing activities	(94		)	—		563			(530		)	(41		)	(102		)
Net cash provided by discontinued financing activities	—			—		—			38			—			38
Effect of currency translation on cash	—			—		—			(18		)	—			(18		)
Net decrease in cash and cash equivalents	—			—		—			(361		)	—			(361		)
Cash and cash equivalents at beginning of period	—			—		—			892			—			892
Cash and cash equivalents at end of period	$	—		$	—	$	—		$	531		$	—		$	531