Tyco International Finance S.A.

6 Months Ended

Mar. 29, 2013

Tyco International Finance S.A.

Tyco International Finance S.A.

19.    Tyco International Finance S.A.

        TIFSA, a wholly-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.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended March 29, 2013

($ in millions)

	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	2,608		$	—		$	2,608
Cost of product sales and services		—			—			1,673			—			1,673
Selling, general and administrative expenses		2			—			788			—			790
Separation costs		1			—			(1	)		—			—
Restructuring and asset impairment charges, net		—			—			22			—			22
Operating (loss) income		(3	)		—			126			—			123
Interest income		—			—			4			—			4
Interest expense		—			(23	)		(2	)		—			(25	)
Other expense, net		(20	)		—			—			—			(20	)
Equity in net income of subsidiaries		262			205			—			(467	)		—
Intercompany interest and fees		(167	)		48			119			—			—
Income from continuing operations before income taxes		72			230			247			(467	)		82
Income tax expense		—			—			(4	)		—			(4	)
Equity loss in earnings of unconsolidated subsidiaries		—			—			(6	)		—			(6	)
Income from continuing operations		72			230			237			(467	)		72
Loss from discontinued operations, net of income taxes		—			—			(2	)		—			(2	)
Net income		72			230			235			(467	)		70
Less: noncontrolling interest in subsidiaries net loss		—			—			(2	)		—			(2	)
Net income attributable to Tyco common shareholders	$	72		$	230		$	237		$	(467	)	$	72

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Quarter Ended March 29, 2013

(in millions)

	Tyco International Ltd.			Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	72		$	230	$	235		$	(467	)	$	70
Other comprehensive (loss) income, net of tax
Foreign currency translation		(102	)		—		(102	)		102			(102	)
Defined benefit and post retirement plans		5			—		5			(5	)		5
Total other comprehensive loss, net of tax		(97	)		—		(97	)		97			(97	)
Comprehensive (loss) income		(25	)		230		138			(370	)		(27	)
Less: comprehensive loss attributable to noncontrolling interests		—			—		(2	)		—			(2	)
Comprehensive (loss) income attributable to Tyco common shareholders	$	(25	)	$	230	$	140		$	(370	)	$	(25	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended March 30, 2012

($ in millions)

	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	2,542		$	—		$	2,542
Cost of product sales and services		—			—			1,634			—			1,634
Selling, general and administrative expenses		3			(1	)		658			—			660
Separation costs		—			—			4			—			4
Restructuring and asset impairment charges, net		—			—			16			—			16
Operating (loss) income		(3	)		1			230			—			228
Interest income		—			—			4			—			4
Interest expense		—			(59	)		—			—			(59	)
Other (expense) income, net		(5	)		—			1			—			(4	)
Equity in net income of subsidiaries		451			311			—			(762	)		—
Intercompany interest and fees		(129	)		88			48			(7	)		—
Income from continuing operations before income taxes		314			341			283			(769	)		169
Income tax benefit (expense)		1			(7	)		(27	)		—			(33	)
Equity loss in earnings of unconsolidated subsidiaries		—			—			(2	)		—			(2	)
Income from continuing operations		315			334			254			(769	)		134
Income from discontinued operations, net of income taxes		8			—			174			7			189
Net income		323			334			428			(762	)		323
Less: noncontrolling interest in subsidiaries net income		—			—			—			—			—
Net income attributable to Tyco common shareholders	$	323		$	334		$	428		$	(762	)	$	323

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Quarter Ended March 30, 2012

(in millions)

	Tyco International Ltd.		Tyco International Finance S.A.		Other Subsidiaries		Consolidating Adjustments			Total
Net income	$	323	$	334	$	428	$	(762	)	$	323
Other comprehensive income, net of tax
Foreign currency translation		198		3		195		(198	)		198
Defined benefit and post retirement plans		3		—		3		(3	)		3
Total other comprehensive income, net of tax		201		3		198		(201	)		201
Comprehensive income		524		337		626		(963	)		524
Less: comprehensive income attributable to noncontrolling interests		—		—		—		—			—
Comprehensive income attributable to Tyco common shareholders	$	524	$	337	$	626	$	(963	)	$	524

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended March 29, 2013

($ in millions)

	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	5,208		$	—		$	5,208
Cost of product sales and services		—			—			3,341			—			3,341
Selling, general and administrative expenses		7			1			1,464			—			1,472
Separation costs		4			—			1			—			5
Restructuring and asset impairment charges, net		—			—			32			—			32
Operating (loss) income		(11	)		(1	)		370			—			358
Interest income		—			—			8			—			8
Interest expense		—			(47	)		(2	)		—			(49	)
Other (expense) income, net		(30	)		—			1			—			(29	)
Equity in net income of subsidiaries		465			273			—			(738	)		—
Intercompany interest and fees		(189	)		97			92			—			—
Income from continuing operations before income taxes		235			322			469			(738	)		288
Income tax expense		—			—			(43	)		—			(43	)
Equity loss in earnings of unconsolidated subsidiaries		—			—			(12	)		—			(12	)
Income from continuing operations		235			322			414			(738	)		233
Income from discontinued operations, net of income taxes		—			—			2			—			2
Net income		235			322			416			(738	)		235
Less: noncontrolling interest in subsidiaries net income		—			—			—			—			—
Net income attributable to Tyco common shareholders	$	235		$	322		$	416		$	(738	)	$	235

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Six Months Ended March 29, 2013

(in millions)

	Tyco International Ltd.			Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Net income	$	235		$	322	$	416		$	(738	)	$	235
Other comprehensive (loss) income, net of tax
Foreign currency translation		(91	)		—		(91	)		91			(91	)
Defined benefit and post retirement plans		9			—		9			(9	)		9
Unrealized gain on marketable securities and derivative instruments		1			—		1			(1	)		1
Total other comprehensive loss, net of tax		(81	)		—		(81	)		81			(81	)
Comprehensive income		154			322		335			(657	)		154
Less: comprehensive income attributable to noncontrolling interests		—			—		—			—			—
Comprehensive income attributable to Tyco common shareholders	$	154		$	322	$	335		$	(657	)	$	154

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended March 30, 2012

($ in millions)

	Tyco International Ltd.			Tyco International Finance S.A.			Other Subsidiaries			Consolidating Adjustments			Total
Net revenue	$	—		$	—		$	5,020		$	—		$	5,020
Cost of product sales and services		—			—			3,213			—			3,213
Selling, general and administrative expenses		7			2			1,328			—			1,337
Separation costs		—			—			4			—			4
Restructuring and asset impairment charges, net		1			—			51			—			52
Operating (loss) income		(8	)		(2	)		424			—			414
Interest income		—			—			9			—			9
Interest expense		—			(116	)		(1	)		—			(117	)
Other (expense) income, net		(4	)		—			2			—			(2	)
Equity in net income of subsidiaries		895			530			—			(1,425	)		—
Intercompany interest and fees		(247	)		175			87			(15	)		—
Income from continuing operations before income taxes		636			587			521			(1,440	)		304
Income tax benefit (expense)		1			(14	)		(47	)		—			(60	)
Equity loss in earnings of unconsolidated subsidiaries		—			—			(12	)		—			(12	)
Income from continuing operations		637			573			462			(1,440	)		232
Income from discontinued operations, net of income taxes		8			—			390			15			413
Net income		645			573			852			(1,425	)		645
Less: noncontrolling interest in subsidiaries net income		—			—			—			—			—
Net income attributable to Tyco common shareholders	$	645		$	573		$	852		$	(1,425	)	$	645

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Six Months Ended March 30, 2012

(in millions)

	Tyco International Ltd.		Tyco International Finance S.A.			Other Subsidiaries		Consolidating Adjustments			Total
Net income	$	645	$	573		$	852	$	(1,425	)	$	645
Other comprehensive income (loss), net of tax
Foreign currency translation		119		(2	)		121		(119	)		119
Defined benefit and post retirement plans		7		—			7		(7	)		7
Unrealized gain on marketable securities and derivative instruments		2		—			2		(2	)		2
Total other comprehensive income (loss), net of tax		128		(2	)		130		(128	)		128
Comprehensive income		773		571			982		(1,553	)		773
Less: comprehensive income attributable to noncontrolling interests		—		—			—		—			—
Comprehensive income attributable to Tyco common shareholders	$	773	$	571		$	982	$	(1,553	)	$	773

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 29, 2013

($ in millions)

	Tyco International Ltd.		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	—	$	430		$	—		$	430
Accounts receivable, net		—		—		1,649			—			1,649
Inventories		—		—		654			—			654
Intercompany receivables		1,272		2,014		8,748			(12,034	)		—
Prepaid expenses and other current assets		11		—		919			—			930
Deferred income taxes		—		—		295			—			295
Total current assets		1,283		2,014		12,695			(12,034	)		3,958
Property, plant and equipment, net		—		—		1,668			—			1,668
Goodwill		—		—		4,345			—			4,345
Intangible assets, net		—		—		735			—			735
Investment in subsidiaries		25,927		12,656		—			(38,583	)		—
Intercompany loans receivable		1,921		5,250		19,971			(27,142	)		—
Other assets		71		7		1,174			—			1,252
Total Assets	$	29,202	$	19,927	$	40,588		$	(77,759	)	$	11,958
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—	$	—	$	11		$	—		$	11
Accounts payable		—		—		783			—			783
Accrued and other current liabilities		332		23		1,402			—			1,757
Deferred revenue		—		—		418			—			418
Intercompany payables		3,667		5,090		3,277			(12,034	)		—
Total current liabilities		3,999		5,113		5,891			(12,034	)		2,969
Long-term debt		—		1,443		38			—			1,481
Intercompany loans payable		19,987		3,069		4,086			(27,142	)		—
Deferred revenue		—		—		405			—			405
Other liabilities		502		—		1,859			—			2,361
Total Liabilities		24,488		9,625		12,279			(39,176	)		7,216
Redeemable noncontrolling interest		—		—		12			—			12
Tyco Shareholders' Equity:
Common shares		2,792		—		—			—			2,792
Common shares held in treasury		—		—		(967	)		—			(967	)
Other shareholders' equity		1,922		10,302		29,248			(38,583	)		2,889
Total Tyco Shareholders' Equity		4,714		10,302		28,281			(38,583	)		4,714
Nonredeemable noncontrolling interest		—		—		16			—			16
Total Equity		4,714		10,302		28,297			(38,583	)		4,730
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	29,202	$	19,927	$	40,588		$	(77,759	)	$	11,958

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 28, 2012

($ in millions)

	Tyco International Ltd.		Tyco International Finance S.A.		Other Subsidiaries			Consolidating Adjustments			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	—	$	844		$	—		$	844
Accounts receivable, net		7		—		1,689			—			1,696
Inventories		—		—		634			—			634
Intercompany receivables		1,220		1,890		10,361			(13,471	)		—
Prepaid expenses and other current assets		14		—		870			—			884
Deferred income taxes		—		—		295			—			295
Total current assets		1,241		1,890		14,693			(13,471	)		4,353
Property, plant and equipment, net		—		—		1,670			—			1,670
Goodwill		—		—		4,367			—			4,367
Intangible assets, net		—		—		771			—			771
Investment in subsidiaries		25,666		12,274		—			(37,940	)		—
Intercompany loans receivable		1,921		7,031		19,956			(28,908	)		—
Other assets		67		260		877			—			1,204
Total Assets	$	28,895	$	21,455	$	42,334		$	(80,319	)	$	12,365
Liabilities and Equity
Current Liabilities:
Loans payable and current maturities of long-term debt	$	—	$	—	$	10		$	—		$	10
Accounts payable		—		—		897			—			897
Accrued and other current liabilities		187		23		1,578			—			1,788
Deferred revenue		—		—		402			—			402
Intercompany payables		3,571		6,793		3,107			(13,471	)		—
Total current liabilities		3,758		6,816		5,994			(13,471	)		3,097
Long-term debt		—		1,443		38			—			1,481
Intercompany loans payable		19,672		3,055		6,181			(28,908	)		—
Deferred revenue		—		—		424			—			424
Other liabilities		471		—		1,870			—			2,341
Total Liabilities		23,901		11,314		14,507			(42,379	)		7,343
Redeemable noncontrolling interest		—		—		12			—			12
Tyco Shareholders' Equity:
Common shares		2,792		—		—			—			2,792
Common shares held in treasury		—		—		(1,094	)		—			(1,094	)
Other shareholders' equity		2,202		10,141		28,893			(37,940	)		3,296
Total Tyco Shareholders' Equity		4,994		10,141		27,799			(37,940	)		4,994
Nonredeemable noncontrolling interest		—		—		16			—			16
Total Equity		4,994		10,141		27,815			(37,940	)		5,010
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	28,895	$	21,455	$	42,334		$	(80,319	)	$	12,365

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended March 29, 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	$	(175	)	$	318		$	64		$	—		$	207
Net cash provided by discontinued operating activities		—			—			2			—			2
Cash Flows From Investing Activities:
Capital expenditures		—			—			(192	)		—			(192	)
Proceeds from disposal of assets		—			—			4			—			4
Acquisition of businesses, net of cash acquired		—			—			(38	)		—			(38	)
Acquisition of dealer generated customer accounts and bulk account purchases		—			—			(12	)		—			(12	)
Intercompany dividend from subsidiary		—			14			—			(14	)		—
Net increase in intercompany loans		—			(300	)		—			300			—
Net increase in investments		—			—			(80	)		—			(80	)
Other		—			—			(6	)		—			(6	)
Net cash used in investing activities		—			(286	)		(324	)		286			(324	)
Cash Flows From Financing Activities:
Net repayments of debt		—			—			(1	)		—			(1	)
Proceeds from exercise of share options		—			—			94			—			94
Dividends paid		(140	)		—			—			—			(140	)
Intercompany dividend to parent		—			—			(14	)		14			—
Repurchase of common shares by treasury		—			—			(200	)		—			(200	)
Net intercompany loan borrowings (repayments)		315			—			(15	)		(300	)		—
Transfer (to) from discontinued operations		—			(32	)		2			—			(30	)
Other		—			—			(17	)		—			(17	)
Net cash provided by (used in) financing activities		175			(32	)		(151	)		(286	)		(294	)
Net cash provided by discontinued financing activities		—			—			30			—			30
Effect of currency translation on cash		—			—			(3	)		—			(3	)
Net decrease in cash and cash equivalents		—			—			(382	)		—			(382	)
Less: net increase in cash and cash equivalents related to discontinued operations		—			—			32			—			32
Cash and cash equivalents at beginning of period		—			—			844			—			844
Cash and cash equivalents at end of period	$	—		$	—		$	430		$	—		$	430

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended March 30, 2012

($ 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	$	(187	)	$	1,003		$	(610	)	$	—		$	206
Net cash provided by discontinued operating activities		—			—			848			—			848
Cash Flows From Investing Activities:
Capital expenditures		—			—			(185	)		—			(185	)
Proceeds from disposal of assets		—			—			2			—			2
Acquisition of businesses, net of cash acquired		—			—			(205	)		—			(205	)
Acquisition of dealer generated customer accounts and bulk account purchases		—			—			(13	)		—			(13	)
Net increase in intercompany loans		—			(996	)		—			996			—
(Increase) decrease in investment in subsidiaries		(593	)		(7	)		16			584			—
Net decrease in investments		—			—			40			—			40
Other		—			—			18			—			18
Net cash used in investing activities		(593	)		(1,003	)		(327	)		1,580			(343	)
Net cash used in discontinued investing activities		—			—			(577	)		11			(566	)
Cash Flows From Financing Activities:
Proceeds from exercise of share options		—			—			88			—			88
Dividends paid		(231	)		—			—			—			(231	)
Repurchase of common shares by treasury		—			—			(300	)		—			(300	)
Net intercompany loan borrowings (repayments)		1,011			—			(15	)		(996	)		—
Increase in equity from parent		—			—			68			(68	)		—
Transfer from discontinued operations		—			—			710			(516	)		194
Other		—			—			(19	)		—			(19	)
Net cash provided by (used in) financing activities		780			—			532			(1,580	)		(268	)
Net cash provided by (used in) discontinued financing activities		—			—			331			(527	)		(196	)
Effect of currency translation on cash		—			—			10			—			10
Effect of currency translation on cash related to discontinued operations		—			—			5			—			5
Net increase (decrease) in cash and cash equivalents		—			—			212			(516	)		(304	)
Less: net increase in cash and cash equivalents related to discontinued operations		—			—			607			(516	)		91
Cash and cash equivalents at beginning of period		—			—			1,229			—			1,229
Cash and cash equivalents at end of period	$	—		$	—		$	834		$	—		$	834