Equity and Comprehensive Income

6 Months Ended

Mar. 29, 2013

Equity and Comprehensive Income

Equity and Comprehensive Income

14.    Equity and Comprehensive Income

Dividends

        Under Swiss law, the authority to declare dividends is vested in the general meeting of shareholders, and on March 6, 2013, the Company's shareholders approved a cash dividend of $0.64 per share, payable to shareholders in four quarterly installments of $0.16 in May 2013, August 2013, November 2013 and February 2014. As a result, during the quarter ended March 29, 2013, the Company recorded an accrued dividend of $296 million within Accrued and other current liabilities and a corresponding reduction to Contributed surplus on the Company's Consolidated Balance Sheet.

        On September 17, 2012, the Company's shareholders approved a $0.30 per share dividend, payable to shareholders in two quarterly installments of $0.15. As a result, the Company recorded an accrued dividend of $139 million as of September 17, 2012 within Accrued and other current liabilities and a corresponding reduction to Contributed surplus on the Company's Consolidated Balance Sheet. The first installment of $0.15 was paid on November 15, 2012 to shareholders of record on October 16, 2012. The second installment of $0.15 was paid on February 20, 2013 to shareholders of record on January 25, 2013.

Share Repurchase Program

        On January 29, 2013, the Company announced that its Board of Directors approved $600 million in share repurchase authority ("2013 Share Repurchase Program") in addition to the $1.0 billion share repurchase program that its Board of Directors approved in April 2011 ("2011 Share Repurchase Program"). During the six months ended March 29, 2013, the Company repurchased approximately 7 million shares for approximately $200 million. As of March 29, 2013, the Company completed the 2011 Share Repurchase Program and approximately $600 million of share repurchase authority remained outstanding under the 2013 Share Repurchase Program.

Common Shares

        On March 6, 2013, shareholders of the Company approved a reduction of the Company's registered share capital from CHF 3,258,632,435 to CHF 243,181,525 by reducing the par value of each share from CHF 6.70 to CHF 0.50 per share and correspondingly increasing the Company's contributed surplus by CHF 3,015,450,910. The reduction in registered share capital and corresponding increase in contributed surplus is intended to provide the Company with more flexibility in making distributions to shareholders. In accordance with Swiss law, the reduction of share capital will only be accomplished after publication of the notice to creditors and the resulting two-month period for filing claims has expired and all claims filed have been satisfied or secured. As a result, the reduction in registered share capital and corresponding increase in contributed surplus, which will not result in a change to total Shareholders' Equity, is expected to occur no earlier than May 12, 2013.

Comprehensive Income

	For the Quarters Ended						For the Six Months Ended
	March 29, 2013			March 30, 2012			March 29, 2013			March 30, 2012
Net income	$	70		$	323		$	235		$	645
Foreign currency translation		(102	)		198			(74	)		120
Liquidation of foreign entities		—			—			(10	)		—
Income tax expense		—			—			(7	)		(1	)
Foreign currency translation, net of tax		(102	)		198			(91	)		119
Amortization of net actuarial losses		7			5			13			11
Income tax expense		(2	)		(2	)		(4	)		(4	)
Defined benefit and post retirement plan, net of tax		5			3			9			7
Unrealized (loss) on marketable securities and derivative instruments		—			(1	)		(1	)		(1	)
Income tax benefit		—			1			2			3
Unrealized gain on marketable securities and derivative instruments, net of tax		—			—			1			2
Total other comprehensive (loss) income, net of tax		(97	)		201			(81	)		128
Comprehensive (loss) income		(27	)		524			154			773
Less: comprehensive (loss) income attributable to noncontrolling interests		(2	)		—			—			—
Comprehensive (loss) income attributable to Tyco common shareholders	$	(25	)	$	524		$	154		$	773