Tyco Flow Control International Ltd.

CIK:0001548223|SEC Filings

ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Jun. 29, 2012

14. ACCUMULATED OTHER COMPREHENSIVE INCOME

The components of accumulated other comprehensive income are as follows ($ in millions):


	Currency Translation Adjustments⁽¹⁾			Retirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of September 24, 2010	$	652		$	(65	)	$	587
Pre-tax current period change		213			1			214
Divestiture of businesses		(126	)		—			(126	)

Balance as of June 24, 2011	$	739		$	(64	)	$	675


	Currency Translation Adjustments⁽¹⁾			Retirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of September 30, 2011	$	556		$	(67	)	$	489
Pre-tax current period change		(140	)		1			(139	)

Balance as of June 29, 2012	$	416		$	(66	)	$	350

⁽¹⁾

During the nine months ended June 29, 2012 and June 24, 2011, nil and $126 million of cumulative translation gain, respectively, were transferred from currency translation adjustments as a result of the sale of non-U.S. entities. Of these amounts, nil and $126 million, respectively, are included in income from discontinued operations, net of income taxes in the Combined Statements of Operations.

Other

The Company had $1.0 billion and $1.2 billion of intercompany loans designated as permanent in nature as of June 29, 2012 and September 30, 2011, respectively. For the nine months ended June 29, 2012 and June 24, 2011, the Company recorded a $20 million cumulative translation loss and an $87 million cumulative translation gain, respectively, through accumulated other comprehensive income related to these loans.

COMBINED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	9 Months Ended
	Jun. 29, 2012	Jun. 24, 2011
Cash Flows From Operating Activities:
Net income attributable to Parent Company Equity	$ 151	$ 266
Noncontrolling interest in subsidiaries net income	2
Income from discontinued operations, net of income taxes		(168)
Income from continuing operations	153	98
Adjustments to reconcile net cash provided by (used in) operating activities:
Depreciation and amortization	62	50
Goodwill impairment		35
Deferred income taxes	97	79
Provision for losses on accounts receivable and inventory	8	1
Other non-cash items	14	9
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable		(37)
Inventories	(141)	(103)
Prepaid expenses and other current assets	(1)	(19)
Accounts payable	42	35
Accrued and other liabilities	(14)	(23)
Income taxes payable	(28)	(44)
Deferred revenue	2	7
Other	(25)	(17)
Net cash provided by operating activities	169	71
Net cash used in discontinued operating activities		(11)
Cash Flows From Investing Activities:
Capital expenditures	(86)	(52)
Proceeds from sale of fixed assets	5	3
Acquisition of businesses, net of cash acquired		(7)
Other	3	4
Net cash used in investing activities	(78)	(52)
Net cash provided by discontinued investing activities		259
Cash Flows From Financing Activities:
Allocated debt activity	27	26
Change in due to (from) Tyco and affiliates	(2)	(70)
Change in parent company investment	(10)	(261)
Transfers from discontinued operations		248
Other	(1)	2
Net cash provided by (used in) financing activities	14	(55)
Net cash used in discontinued financing activities		(248)
Effect of currency translation on cash	(3)	7
Net increase (decrease) in cash and cash equivalents	102	(29)
Cash and cash equivalents at beginning of year	122	146
Cash and cash equivalents at end of year	$ 224	$ 117

COMBINED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Jun. 29, 2012	Sep. 30, 2011
Current Assets:
Cash and cash equivalents	$ 224	$ 122
Accounts receivable trade, less allowance for doubtful accounts of $22 and $23, respectively	692	716
Inventories	864	772
Prepaid expenses and other current assets	182	180
Deferred income taxes	79	79
Total current assets	2,041	1,869
Property, plant and equipment, net	622	607
Goodwill	2,089	2,137
Intangible assets, net	114	127
Other assets	385	404
Total Assets	5,251	5,144
Current Liabilities:
Current maturities of long-term debt, including allocated debt of nil and nil, respectively (see Note 7)
Accounts payable	361	336
Accrued and other current liabilities	519	532
Total current liabilities	880	868
Long-term debt, including allocated debt of $886 and $859, respectively (see Note 7)	901	876
Other liabilities	441	388
Total Liabilities	2,222	2,132
Commitments and contingencies (see Note 10)
Redeemable noncontrolling interest (see Note 12)	95	93
Parent Company Equity:
Parent company investment	2,584	2,430
Accumulated other comprehensive income	350	489
Total Parent Company Equity	2,934	2,919
Total Liabilities, Redeemable Noncontrolling Interest and Parent Company Equity	$ 5,251	$ 5,144