ADT Corp

CIK:0001546640|SEC Filings

Condensed and Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 27, 2015	Mar. 31, 2016	Mar. 27, 2015
Income Statement [Abstract]
Revenue	$ 899	$ 890	$ 1,799	$ 1,777
Cost of revenue	404	392	805	780
Selling, general and administrative expenses	326	331	656	649
Radio conversion costs	26	19	50	42
Operating income	143	148	288	306
Interest expense, net	(53)	(51)	(106)	(101)
Other Nonoperating Income (Expense)	0	3	0	3
Income before income taxes	90	100	182	208
Income tax expense	(28)	(32)	(56)	(68)
Net income	$ 62	$ 68	$ 126	$ 140
Net income per share:
Basic (in US$ per share)	$ 0.38	$ 0.40	$ 0.76	$ 0.81
Diluted (in US$ per share)	$ 0.37	$ 0.40	$ 0.76	$ 0.81
Weighted-average number of shares:
Basic (shares)	165	171	165	173
Diluted (shares)	166	172	166	173
Dividends declared per common share (in US$ per share)	$ 0.22	$ 0.42	$ 0.43	$ 0.42

Condensed and Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2016	Mar. 27, 2015
Cash Flows from Operating Activities:
Net income	$ 126	$ 140
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible asset amortization	583	553
Amortization of deferred subscriber acquisition costs	76	69
Amortization of deferred subscriber acquisition revenue	(86)	(80)
Stock-based compensation expense	12	12
Deferred income taxes	53	59
Provision for losses on accounts receivable and inventory	26	30
Changes in operating assets and liabilities and other	(1)	(27)
Net cash provided by operating activities	789	756
Cash Flows from Investing Activities:
Dealer generated customer accounts and bulk account purchases	(282)	(267)
Subscriber system assets	(340)	(352)
Capital expenditures	(43)	(50)
Other investing	23	(39)
Net cash used in investing activities	(642)	(708)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options	10	27
Repurchases of common stock under approved program	(30)	(138)
Dividends paid	(71)	(71)
Proceeds from long-term borrowings	130	505
Repayment of long-term debt	(188)	(367)
Other financing	(2)	(5)
Net cash used in financing activities	(151)	(49)
Effect of currency translation on cash	1	(2)
Net decrease in cash and cash equivalents	(3)	(3)
Cash and cash equivalents at beginning of period	78	66
Cash and cash equivalents at end of period	$ 75	$ 63

Condensed and Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Sep. 25, 2015
Current Assets:
Cash and cash equivalents	$ 75	$ 78
Accounts receivable trade, less allowance for doubtful accounts of $21 and $23, respectively	86	102
Inventories	80	76
Prepaid expenses and other current assets	42	47
Deferred tax assets	94	96
Total current assets	377	399
Property and equipment, net	287	283
Subscriber System Assets, net	2,610	2,502
Goodwill	3,687	3,680
Intangible assets, net	2,983	2,999
Deferred subscriber acquisition costs, net	648	631
Other assets	231	232
Total Assets	10,823	10,726
Current Liabilities:
Current maturities of long-term debt	6	5
Accounts payable	173	190
Accrued expenses and other current liabilities	201	231
Deferred revenue	269	232
Total current liabilities	649	658
Long-term debt	5,347	5,389
Deferred Revenue, Noncurrent	922	895
Deferred tax liabilities	845	732
Other liabilities	136	133
Total Liabilities	$ 7,899	$ 7,807
Commitments and contingencies
Stockholders' Equity:
Common stock - authorized 1,000,000,000 shares of $0.01 par value; issued and outstanding shares - 165,549,250 as of March 31, 2016 and 165,850,306 as of September 25, 2015	$ 2	$ 2
Additional paid-in capital	2,307	2,374
Retained earnings	687	633
Accumulated other comprehensive loss	(72)	(90)
Total Stockholders' Equity	2,924	2,919
Total Liabilities and Stockholders' Equity	$ 10,823	$ 10,726