TE Connectivity (TEL) 10-Q 28 Jan 10 2010 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	3 Months Ended Dec. 25, 2009	3 Months Ended Dec. 26, 2008
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$2,892	$2,713
Cost of sales	2,051	1,989
Gross margin	841	724
Selling, general, and administrative expenses	368	411
Research, development, and engineering expenses	138	144
Pre-separation litigation charges, net		9
Restructuring and other charges, net	66	77
Operating income	269	83
Interest income	4	6
Interest expense	(39)	(42)
Other income (expense), net	8	(1)
Income from continuing operations before income taxes	242	46
Income tax expense	(69)	(14)
Income from continuing operations	173	32
Income (loss) from discontinued operations, net of income taxes		(67)
Net income (loss)	173	(35)
Less: net income attributable to noncontrolling interests	(1)	(2)
Net income (loss) attributable to Tyco Electronics Ltd.	172	(37)
Amounts attributable to Tyco Electronics Ltd.:
Income from continuing operations	172	30
Income (loss) from discontinued operations		(67)
Net income (loss) attributable to Tyco Electronics Ltd.	$172	($37)
Basic earnings (loss) per share attributable to Tyco Electronics Ltd.:
Income from continuing operations (in dollars per share)	0.37	0.07
Income (loss) from discontinued operations (in dollars per share)		-0.15
Net income (loss) (in dollars per share)	0.37	-0.08
Diluted earnings (loss) per share attributable to Tyco Electronics Ltd.:
Income from continuing operations (in dollars per share)	0.37	0.07
Income (loss) from discontinued operations (in dollars per share)		-0.15
Net income (loss) (in dollars per share)	0.37	-0.08
Weighted-average number of shares outstanding:
Basic (in shares)	459	459
Diluted (in shares)	462	461

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 25, 2009	Sep. 25, 2009
Current Assets:
Cash and cash equivalents	$1,695	$1,521
Accounts receivable, net of allowance for doubtful accounts of $41 and $48, respectively	2,033	1,975
Inventories	1,458	1,435
Prepaid expenses and other current assets	481	487
Deferred income taxes	153	161
Total current assets	5,820	5,579
Property, plant, and equipment, net	3,008	3,111
Goodwill	3,153	3,160
Intangible assets, net	388	407
Deferred income taxes	2,486	2,518
Receivable from Tyco International Ltd. and Covidien plc	1,198	1,211
Other assets	230	234
Total Assets	16,283	16,220
Current Liabilities:
Current maturities of long-term debt	101	101
Accounts payable	1,221	1,068
Accrued and other current liabilities	1,265	1,243
Deferred revenue	174	203
Total current liabilities	2,761	2,615
Long-term debt	2,314	2,316
Long-term pension and postretirement liabilities	1,106	1,129
Deferred income taxes	174	188
Income taxes	2,312	2,312
Other liabilities	609	634
Total Liabilities	9,276	9,194
Shareholders' Equity:
Common shares, 468,215,574 shares authorized and issued, CHF 2.26 par value, at December 25, 2009; 468,215,574 shares authorized and issued, CHF 2.43 par value, at September 25, 2009	899	1,049
Contributed surplus	8,116	8,135
Accumulated deficit	(2,102)	(2,274)
Treasury shares, at cost, 9,168,652 and 9,425,172 shares, respectively	(328)	(349)
Accumulated other comprehensive income	413	455
Total Tyco Electronics Ltd. shareholders' equity	6,998	7,016
Noncontrolling interests	9	10
Total Shareholders' Equity	7,007	7,026
Total Liabilities and Shareholders' Equity	$16,283	$16,220

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data	Dec. 25, 2009	Sep. 25, 2009
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$41	$48
Common shares, shares authorized	468,215,574	468,215,574
Common shares, shares issued	468,215,574	468,215,574
Common shares, par value, CHF per share (in Swiss Francs per share)	2.26	2.43
Treasury shares	9,168,652	9,425,172

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Dec. 25, 2009	3 Months Ended Dec. 26, 2008
Cash Flows From Operating Activities:
Net income (loss)	$173	($35)
(Income) loss from discontinued operations, net of income taxes		67
Income from continuing operations	173	32
Adjustments to reconcile net cash provided by operating activities:
Non-cash restructuring and other charges, net	19	10
Depreciation and amortization	138	127
Deferred income taxes	53	(70)
Provision for losses on accounts receivable and inventories	(5)	27
Other	12	16
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net	(76)	495
Inventories	(20)	(116)
Inventoried costs on long-term contracts	(20)	(28)
Prepaid expenses and other current assets	27	154
Accounts payable	162	(199)
Accrued and other current liabilities	(97)	(357)
Income taxes		22
Deferred revenue	(28)	(52)
Other	(8)	(29)
Net cash provided by continuing operating activities	330	32
Net cash provided by discontinued operating activities		1
Net cash provided by operating activities	330	33
Cash Flows From Investing Activities:
Capital expenditures	(76)	(115)
Proceeds from sale of property, plant, and equipment	2	4
Proceeds from divestiture of discontinued operations, net of cash retained by operations sold		23
Proceeds from divestiture of business, net of cash retained by business sold	12
Other	(2)	(4)
Net cash used in continuing investing activities	(64)	(92)
Net cash used in discontinued investing activities		(1)
Net cash used in investing activities	(64)	(93)
Cash Flows From Financing Activities:
Net decrease in commercial paper		(400)
Proceeds from long-term debt		191
Repayment of long-term debt		(19)
Repurchase of common shares	(18)	(152)
Payment of common share dividends and cash distributions to shareholders	(74)	(74)
Other	(1)	(3)
Net cash used in financing activities	(93)	(457)
Effect of currency translation on cash	1	(24)
Net increase (decrease) in cash and cash equivalents	174	(541)
Cash and cash equivalents at beginning of period	1,521	1,090
Cash and cash equivalents at end of period	$1,695	$549

Basis of Presentation

Basis of Presentation
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Basis of Presentation	1. Basis of Presentation Basis of Presentation The unaudited Condensed Consolidated Financial Statements of Tyco ElectronicsLtd. ("Tyco Electronics" or the "Company") have been prepared in United States Dollars, in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ materially from these estimates. In management's opinion, the unaudited Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire fiscal year or any subsequent interim period. The Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form10-Q under the Securities Exchange Act of 1934, as amended. The year-end balance sheet data was derived from audited financial statements, but does not include all of the information and disclosures required by GAAP. These financial statements should be read in conjunction with the Company's audited Consolidated and Combined Financial Statements contained in the Company's Annual Report on Form10-K for the fiscal year ended September25, 2009. Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2010 and fiscal 2009 are to the Company's fiscal years ending September24, 2010 and September25, 2009, respectively. Reclassifications The Company has reclassified certain items on its Condensed Consolidated Financial Statements to conform to the current year presentation. See additional information regarding the Company's adoption of updates to guidance in Accounting Standards Codification ("ASC") 810, Consolidation, in Note2.

Accounting Pronouncements

Accounting Pronouncements
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Accounting Pronouncements	2. Accounting Pronouncements Recently Adopted Accounting Pronouncements In September 2006, the Financial Accounting Standards Board ("FASB") issued guidance in ASC820, Fair Value Measurements and Disclosures, that defines fair value, establishes a framework for measuring fair value, expands disclosure about fair value measurements, and introduces the fair value option for certain financial assets and liabilities. The Company adopted the fair value provisions of ASC 820 in the first quarter of fiscal 2009. Prior to adoption, the fair value measurement and disclosure requirements for non-financial assets and liabilities were deferred by one year. The Company adopted the fair value provisions of ASC 820 for non-financial assets and liabilities on September26, 2009. See Note13 for additional information related to fair value measurements. In April 2009 and December 2007, the FASB issued guidance in ASC 805, Business Combinations, addressing the recognition and accounting for identifiable assets acquired, liabilities assumed, and noncontrolling interests in business combinations. The Company adopted the business combination provisions on September26, 2009. Adoption did not have a material impact on the Company's results of operations, financial position, or cash flows. In December 2007, the FASB issued updates to guidance in ASC 810 that address the accounting and reporting framework for noncontrolling interests by a parent company. The Company adopted the updates on September26, 2009. As a result of adopting the presentation requirements related to noncontrolling interests, the Company has retrospectively adjusted its Condensed Consolidated Financial Statements. Adoption of the accounting requirements for noncontrolling interests did not have a material impact on the Company's results of operations, financial position, or cash flows.

Restructuring and Other Charges

Restructuring and Other Charges, Net
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Restructuring and Other Charges, Net	3. Restructuring and Other Charges, Net Restructuring and other charges, net consisted of the following during the quarters ended December25, 2009 and December26, 2008: For the Quarters Ended December25, 2009 December26, 2008 (in millions) Restructuring and related charges, net $ 51 $ 77 Loss on divestiture and impairment of long-lived assets 15 $ 66 $ 77 Restructuring and Related Charges, Net Charges to operations by segment during the quarters ended December25, 2009 and December26, 2008 were as follows: For the Quarters Ended December25, 2009 December26, 2008 (in millions) Electronic Components $ 44 $ 42 Network Solutions 2 19 Specialty Products 14 Undersea Telecommunications 2 3 48 78 Less: (charges) credits in cost of sales 3 (1 ) Restructuring and related charges, net $ 51 $ 77 Amounts recognized on the Condensed Consolidated Statements of Operations during the quarters ended December25, 2009 and December26, 2008 were as follows: For the Quarters Ended December25, 2009 December26, 2008 (in millions) Cash charges $ 44 $ 68 Non-cash charges 4 10 48 78 Less: (charges) credits in cost of sales 3 (1 ) Restructuring and related charges, net $ 51 $ 77 Cash Charges Activity in the Company's restructuring reserves during the first quarter of fiscal 2010 is summarized as follows: Balance at September25, 2009 Charges Utilization Changes in Estimate Currency Translation and Other Balance at December25, 2009 (in millions) Fiscal 2010 Actions: Employee severance $ $ 32 $ $ $ (1 ) $ 31 Facility exit costs 7 7 (1) 14 Other 1 1 Total 40 6 46 Fiscal 2009 Actions: Employee severance 116 (36 ) (2 ) (2 ) 76 Facility exit costs 3 1 (1 ) 3 Other 1 2 (3 ) Total 120 3 (40 ) (2 ) (2 ) 79 Pre-Fiscal 2009 Actions: Employee severance 91 1 (21 ) (1 ) (1 ) 69 Facilities exit costs 51 3 (4 ) (1 ) 2 51 Other 8 1 (2 ) 7 Total 150 5 (27 ) (2 ) 1 127 Total Activity $ 270 $ 48 $ (67 ) $ (4 ) $ 5 $ 252 (1) Reclassification of $7million lease obligation from other reserves to restructuring reserves. Fiscal 2010 Actions The Company initiated restructuring programs during fiscal 2010 primarily relating to headcount reductions in the Electronic Components segment. In

Discontinued Operations

Discontinued Operations
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Discontinued Operations	4. Discontinued Operations In May 2009, the Company completed the sale of its Wireless Systems business. This business met the held for sale and discontinued operations criteria and has been included in discontinued operations in fiscal 2009. Prior to reclassification to held for sale and discontinued operations, the Wireless Systems business was a component of the former Wireless Systems segment. The following table reflects net sales, pre-tax loss from discontinued operations, and income taxes for the quarter ended December26, 2008; there were no such amounts for the quarter ended December25, 2009: For the Quarter Ended December26, 2008 (in millions) Net sales $ 96 Pre-tax loss from discontinued operations $ (104 ) Income tax benefit 37 Loss from discontinued operations, net of income taxes $ (67 ) Pre-tax loss from discontinued operations for the quarter ended December26, 2008 included pre-tax charges of $111million related to the Wireless Systems business's contract with the State of New York. See Note11 for additional information regarding the State of New York contract.

Inventories

Inventories
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Inventories	5. Inventories Inventories consisted of the following: December25, 2009 September25, 2009 (in millions) Raw materials $ 260 $ 253 Work in progress 461 439 Finished goods 598 624 Inventoried costs on long-term contracts 139 119 Inventories $ 1,458 $ 1,435

Goodwill

Goodwill
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Goodwill	6. Goodwill The changes in the carrying amount of goodwill by segment were as follows: Electronic Components Network Solutions Specialty Products Total (in millions) Balance at September25, 2009 $ 1,413 $ 847 $ 900 $ 3,160 Currency translation (3 ) (2 ) (2 ) (7 ) Balance at December25, 2009 $ 1,410 $ 845 $ 898 $ 3,153

Intangible Assets, Net

Intangible Assets, Net
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Intangible Assets, Net	7. Intangible Assets, Net The Company's intangible assets were as follows: December25, 2009 September25, 2009 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period ($ in millions) Intellectual property $ 707 $ (332 ) $ 375 24years $ 724 $ (330 ) $ 394 24years Other 17 (4 ) 13 50years 17 (4 ) 13 50years Total $ 724 $ (336 ) $ 388 25years $ 741 $ (334 ) $ 407 25years Intangible asset amortization expense was $8million for the quarters ended December25, 2009 and December26, 2008. The estimated aggregate amortization expense on intangible assets currently owned by the Company is expected to be as follows: (in millions) Remainder of fiscal 2010 $ 22 Fiscal 2011 29 Fiscal 2012 28 Fiscal 2013 27 Fiscal 2014 27 Fiscal 2015 27 Thereafter 228 $ 388

Debt

Debt
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Debt	8. Debt Debt was as follows: December25, 2009 September25, 2009 (in millions) 6.00% senior notes due 2012(1) $ 720 $ 720 5.95% senior notes due 2014(1) 300 300 6.55% senior notes due 2017(1) 743 744 7.125% senior notes due 2037(1) 475 475 Other 177 178 Total debt 2,415 2,417 Less current portion(2) 101 101 Long-term debt $ 2,314 $ 2,316 (1) Senior notes are recorded at face amount, net of unamortized discount and the fair value of interest rate swaps. (2) The current portion of long-term debt at December25, 2009 and September25, 2009 was comprised of amounts shown as other. In April 2007, Tyco Electronics GroupS.A. ("TEGSA"), a wholly-owned subsidiary of the Company, entered into a five-year unsecured senior revolving credit facility ("Credit Facility"). In fiscal 2009, $75million of the commitment was assigned by Lehman Brothers Bank, FSB to TEGSA, reducing the total effective commitment to $1,425million. At December25, 2009 and September25, 2009, TEGSA had no borrowings under the Credit Facility. The Credit Facility contains a financial ratio covenant providing that if the Company's ratio of Consolidated Total Debt (as defined in the Credit Facility) to Consolidated EBITDA (as defined in the Credit Facility) for the then most recently concluded period of four consecutive fiscal quarters exceeds 3.5 to 1.0, an Event of Default (as defined in the Credit Facility) is triggered under the Credit Facility. The Credit Facility and the Company's other debt agreements contain other customary covenants. TEGSA's payment obligations under its senior notes, Credit Facility, and profit sharing notes issued by a subsidiary are fully and unconditionally guaranteed by Tyco ElectronicsLtd. During the first quarter of fiscal 2010, the Company entered into options to enter into interest rate swaps ("swaptions") and forward starting interest rate swaps designated as cash flow hedges to manage interest rate exposure prior to the anticipated issuance of fixed-rate debt that is probable of occurring when the Company's 6.00% senior notes mature in fiscal 2012. These swaptions and forward starting interest rate swaps are based on a total notional amount of $300million. Also, during the first quarter of fiscal 2010, the Company entered into an interest rate swap designated as a fair value hedge on $50million principal amount of the 6.00% senior notes. During the first quarter of fiscal 2009, the Company terminated interest rate swaps designated as fair value hedges on $300million principal amount of the 6.55% senior notes and $200million principal amount of the 6.00% senior notes. See Note12 for additional information on swaptions, forward starting interest rate swaps, and interest rate swaps. The fair value of the Company's debt was approximately $2,460million and $2,420million at December25, 2009 and September25, 2009, respectively.

Guarantees

Guarantees
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Guarantees	9. Guarantees Pursuant to the Separation and Distribution Agreement and Tax Sharing Agreement, upon separation from Tyco InternationalLtd. ("Tyco International") on June29, 2007, the Company entered into certain guarantee commitments and indemnifications with Tyco International and Covidienplc ("Covidien"). Under these agreements, principally the Tax Sharing Agreement, Tyco International, Covidien, and Tyco Electronics share 27%, 42%, and 31%, respectively, of certain contingent liabilities relating to unresolved pre-separation tax matters of Tyco International. The effect of the Tax Sharing Agreement is to indemnify the Company for 69% of certain liabilities settled in cash by the Company with respect to unresolved pre-separation tax matters. Pursuant to that indemnification, the Company has made similar indemnifications to Tyco International and Covidien with respect to 31% of certain liabilities settled in cash by the companies relating to unresolved pre-separation tax matters. If any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, the Company would be responsible for a portion of the defaulting party or parties' obligation. In addition, Tyco International and Covidien are responsible for their tax liabilities that are not subject to the Tax Sharing Agreement's sharing formula. The Company's indemnification created under the Tax Sharing Agreement qualifies as a guarantee of a third party entity's debt under ASC 460, Guarantees. At December25, 2009, the Company had a liability representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement of $339million of which $321million was reflected in other liabilities and $18million was reflected in accrued and other current liabilities on the Condensed Consolidated Balance Sheet. At September25, 2009, the liability of $339million was reflected in other liabilities on the Condensed Consolidated Balance Sheet. The Company has assessed the probable future cash payments to Tyco International and Covidien for pre-separation income tax matters pursuant to the terms of the Tax Sharing Agreement and determined this amount remains sufficient to satisfy these expected obligations. In disposing of assets or businesses, the Company often provides representations, warranties, and/or indemnities to cover various risks including unknown damage to the assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. The Company does not have the ability to estimate the potential liability from such indemnities because they relate to unknown conditions; however, the Company has no reason to believe that these uncertainties would have a material adverse effect on the Company's results of operations, financial position, or cash flows. At December25, 2009, the Company had outstanding letters of credit and letters of guarantee in the amount

Retirement Plans

Retirement Plans
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Retirement Plans	10. Retirement Plans The net periodic benefit cost for all U.S. and non-U.S. defined benefit pension plans and postretirement benefit plans in the quarters ended December25, 2009 and December26, 2008 was as follows: Defined Benefit Pension Plans Postretirement Benefit Plans U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended For the Quarters Ended December25, 2009 December26, 2008 December25, 2009 December26, 2008 December25, 2009 December26, 2008 (in millions) Service cost $ 2 $ 2 $ 15 $ 15 $ $ Interest cost 14 14 21 22 1 1 Expected return on plan assets (15 ) (15 ) (14 ) (16 ) Amortization of net actuarial loss 8 4 8 3 Settlement/curtailment loss (gain) 2 (1 ) (1 ) Net periodic benefit cost $ 11 $ 5 $ 29 $ 23 $ 1 $ 1 The Company anticipates that, at a minimum, it will make the minimum required contributions to its pension plans in fiscal 2010 of $3million for U.S. plans and $80million for non-U.S. plans. During the quarter ended December25, 2009, the Company contributed $46million to its U.S. and non-U.S. plans. The Company expects to make contributions to its postretirement benefit plans of $2million in fiscal 2010. During the quarter ended December25, 2009, Company contributions to its postretirement benefit plans were insignificant.

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Commitments and Contingencies	11. Commitments and Contingencies Tyco Electronics Legal Proceedings Intellectual Property and Antitrust Litigation The Company is a party to a number of patent infringement and antitrust actions that may require the Company to pay damage awards. The Company has assessed the status of these matters and has recorded liabilities related to certain of these matters where appropriate. Other Matters The Company is a defendant in a number of other pending legal proceedings incidental to present and former operations, acquisitions, and dispositions. The Company does not expect the outcome of these proceedings, either individually or in the aggregate, to have a material adverse effect on its results of operations, financial position, or cash flows. Legal Matters under Separation and Distribution Agreement The Separation and Distribution Agreement among the Company, Tyco International, and Covidien provided for the allocation among the parties of Tyco International's assets, liabilities, and obligations attributable to periods prior to the Company's and Covidien's separations from Tyco International on June29, 2007. Under the Separation and Distribution Agreement, the Company assumed the liability for, and control of, all pending and threatened legal matters at separation related to the Company's business or assumed or retained liabilities, and will indemnify the other parties for any liability arising out of or resulting from such assumed legal matters. Tyco Electronics remains responsible for 31% of certain potential liabilities that may arise from litigation pending or threatened at separation that was not allocated to one of the three parties, and Tyco International and Covidien are responsible for 27% and 42%, respectively, of such liabilities. If any party defaults in payment of its allocated share of any such liability, each non-defaulting party will be responsible for an equal portion of the amount in default together with any other non-defaulting party, although any such payments will not release the obligation of the defaulting party. Subject to the terms and conditions of the Separation and Distribution Agreement, Tyco International manages and controls all the legal matters related to the shared contingent liabilities, including the defense or settlement thereof, subject to certain limitations. All costs and expenses that Tyco International incurs in connection with the defense of such litigation, other than the amount of any judgment or settlement, which will be allocated in the manner described above, will be borne equally by Tyco International, Covidien, and the Company. Securities Proceedings and Settlements As previously reported in the Company's periodic filings, prior to the separation, Tyco International and certain of its former directors and officers were named as defendants in over 40 purported securities class action lawsuits. As a part of the Separation and Distribution Agreement, any existing or potential liabilities related to the securities class actions were allocated among Tyco International, Covidien, and the Company. The Company is responsible for 31% of potential liabilities that may a

Financial Instruments

Financial Instruments
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Financial Instruments	12. Financial Instruments The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt, and derivative financial instruments. The fair value of cash and cash equivalents, accounts receivable, and accounts payable approximated book value as of December25, 2009 and September25, 2009. See Note8 for disclosure of the fair value of debt and Note13 for additional information on fair value measurements. The Company uses derivative and non-derivative financial instruments to manage certain exposures to foreign currency, interest rate, and commodity risks. The Company accounts for derivative financial instrument contracts on its Condensed Consolidated Balance Sheets at fair value. For instruments not designated as hedges under ASC 815, Derivatives and Hedging, the changes in the instruments' fair value are recognized as selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations. For instruments designated as cash flow hedges, the effective portion of changes in the fair value of a derivative is recorded in other comprehensive income and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. Ineffective portions, including amounts excluded from the hedging relationship, of a cash flow hedge are recognized currently, based on the nature of the ineffectiveness, in cost of sales, selling, general, and administrative expenses, or interest expense on the Condensed Consolidated Statements of Operations. Changes in the fair value of instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in earnings. The cash flows related to derivative financial instruments are reported in the operating activities section of the Condensed Consolidated Statements of Cash Flows. The Company's derivative financial instruments present certain market and counterparty risks; however, concentration of counterparty risk is mitigated as the Company deals primarily with a variety of financial institutions worldwide with long-term Standard Poor's, Moody's, and/or Fitch credit ratings of A/A2 or higher. In addition, only conventional derivative financial instruments are utilized. The Company is exposed to potential losses if a counterparty fails to perform according to the terms of its agreement. With respect to counterparty net asset positions recognized at December25, 2009, the Company has assessed the likelihood of counterparty default as remote. At this time, the Company is not required, nor does it require, collateral or other security to be furnished by the counterparties to its derivative financial instruments. Foreign Exchange Risks As part of managing the exposure to changes in foreign currency exchange rates, the Company utilizes foreign exchange forward and swap contracts, a portion of which are designated as cash flow hedges. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in foreign curr

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Fair Value Measurements	13. Fair Value Measurements Guidance on fair value measurement in ASC 820 specifies a fair value hierarchy based upon the observability of the inputs utilized in valuation of certain assets and liabilities. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy: Level1Quoted prices in active markets for identical assets and liabilities. Level2Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flows methodologies and similar techniques that use significant unobservable inputs. Financial assets and liabilities recorded at fair value on a recurring basis were as follows: Fair Value Measurements Using Inputs Considered as Fair Value Description Level1 Level2 Level3 (in millions) December25, 2009: Assets: Commodity swap contracts $ 5 $ $ $ 5 Interest rate swaps and swaptions 10 10 Foreign currency contracts 2 2 Rabbi trust assets 77 77 Total assets at fair value $ 82 $ 12 $ $ 94 Liabilities: Foreign currency contracts $ $ 1 $ $ 1 September25, 2009: Assets: Commodity swap contracts $ 1 $ $ $ 1 Foreign currency contracts 3 3 Rabbi trust assets 76 76 Total assets at fair value $ 77 $ 3 $ $ 80 Liabilities: Foreign currency contracts $ $ 4 $ $ 4 The Company does not have significant financial assets or liabilities that are measured at fair value on a non-recurring basis. The following is a description of the valuation methodologies used for the respective financial assets and liabilities measured at fair value on a recurring basis: Commodity swap contractsFair value of these assets and liabilities is determined using quoted futures exchanges (level1). Interest rate swaps and swaptionsFair value of these assets is determined based on observable inputs other than quoted prices. The positions are primarily valued using standard models that use readily observable interest rates as their basis (level2). Foreign currency contractsFair value of these assets and liabilities is determined based on observable market transactions of spot currency rates and forward rates (level2). Rabbi trust assetsRabbi trust assets are comprised of marketable debt and equity securities that are marked to f

Income Taxes

Income Taxes
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Income Taxes	14. Income Taxes The Company recorded a tax provision of $69million, an effective income tax rate of 28.5%, for the quarter ended December25, 2009 and $14million, an effective income tax rate of 30.4%, for the quarter ended December26, 2008. The effective tax rate for the quarter ended December25, 2009 reflects tax benefits recognized in connection with expected fiscal 2010 increased profitability in certain entities operating in lower tax rate jurisdictions partially offset by accruals of interest related to uncertain tax positions and the estimated tax impacts of certain intercompany dividends. The effective tax rate for the quarter ended December26, 2008 reflects the tax impacts related to approximately $50million of net losses associated with the termination of economic hedges of certain anticipated future transactions that were primarily realized in lower tax rate jurisdictions. In addition, the effective tax rate for the first quarter of fiscal 2009 reflects accruals of interest related to uncertain tax positions, the favorable resolution of an uncertain tax position, and tax benefits related to the profitability of entities operating in lower tax rate jurisdictions. The Company records accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of December25, 2009, the Company had recorded $1,242million of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheet, of which $1,239million was recorded in income taxes and $3million was recorded in accrued and other current liabilities. During the quarter ended December25, 2009, the Company recognized $29million of interest and penalties on the Condensed Consolidated Statements of Operations. As of September25, 2009, the balance of accrued interest and penalties was $1,215million, of which $1,214million was recorded in income taxes and $1million was recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheet. In fiscal 2007, the IRS concluded its field examination of certain of Tyco International's U.S. federal income tax returns for the years 1997 through 2000. Tyco International is in the process of appealing certain tax adjustments proposed by the IRS related to this period. In fiscal 2008, the IRS commenced its field examination of certain Tyco International U.S. federal income tax returns for the years 2001 through 2004. Tyco International's U.S. federal tax filings for years subsequent to 2004 also remain open to examination by the IRS. See Note11 for additional information regarding the status of IRS examinations. Although it is difficult to predict the timing or results of certain pending examinations, it is the Company's understanding that Tyco International has made progress during fiscal 2010 towards resolving with the IRS certain disputed tax adjustments related to Tyco International's U.S. federal income tax returns for the years 1997 through 2000. Accordingly, Tyco International and the IRS could reach agreement on these matters within the next twelve months. However, the ultimate resolution is uncertain and it is not

Other Income

Other Income (Expense)
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Other Income (Expense)	15. Other Income (Expense) In the quarter ended December25, 2009, the Company recorded net other income of $8million pursuant to the Tax Sharing Agreement with Tyco International and Covidien. In the quarter ended December26, 2008, the Company recorded net other expense of $1million, consisting of $3million of unrealized losses on rabbi trust assets and $2million of income pursuant to the Tax Sharing Agreement with Tyco International and Covidien.

Shareholders' Equity

Shareholders' Equity
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Shareholders' Equity	16. Shareholders' Equity Common Shares Subject to certain conditions specified in the articles of association, the shareholders have authorized the Company's board of directors to increase the Company's share capital (the value, in Swiss Francs ("CHF"), of authorized shares multiplied by the par value), by issuing up to 234million conditional shares and up to 234million authorized shares (until June22, 2011). Although the Company states its par value in Swiss Francs, it continues to use the U.S. Dollar as its reporting currency for preparing its Condensed Consolidated Financial Statements. Common Shares Held in Treasury At December25, 2009 and September25, 2009, all common shares held in treasury were owned by a subsidiary of the Company. Shares held by the subsidiary are presented as treasury shares on the Condensed Consolidated Balance Sheet. Contributed Surplus Contributed surplus, subject to certain conditions, is a distributable reserve. Distributions to Shareholders Under current Swiss law, distributions to shareholders made in the form of a reduction of registered share capital are exempt from Swiss withholding tax. Beginning on January1, 2011, subject to the adoption of implementing regulations and amendments to Swiss tax law, distributions to shareholders made out of contributed surplus will be exempt from Swiss withholding tax. Distributions or dividends on the Company's shares must be approved by the Company's shareholders. In October 2009, the Company's shareholders approved a cash distribution to shareholders in the form of a capital reduction to the par value of the Company's common shares of CHF0.34 (equivalent to $0.32) per share, payable in two equal installments in each of the first and second quarters of fiscal 2010. During the quarter ended December25, 2009, the Company paid the first installment of the distribution at a rate of $0.16 per share. This capital reduction reduced the par value of the Company's common shares from CHF2.43 (equivalent to $2.24) to CHF2.26 (equivalent to $2.08). Upon approval by the shareholders of the cash distribution in the form of a capital reduction, the Company records a liability with a corresponding charge to common shares. The declared but unpaid portion of the distribution of CHF0.17 (equivalent to $0.16) per share is recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheet at December25, 2009. There were no unpaid dividends and distributions to shareholders as of September25, 2009. Share Repurchase Program During the first quarter of fiscal 2010, the Company purchased approximately 750thousand of its common shares for $18million. During the first quarter of fiscal 2009, the Company purchased approximately 6million of its common shares for $125million and also settled purchases of $27million of its common shares which occurred prior to the end of the fourth quarter of fiscal 2008. Since inception of the share repurchase program, which has a current authorization of $2,000million, the Company has purchased approximately 44million shares for $1,412million.

Comprehensive Income

Comprehensive Income (Loss)
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Comprehensive Income (Loss)	17. Comprehensive Income (Loss) Comprehensive income (loss) consisted of the following: For the Quarters Ended December25, 2009 December26, 2008 (in millions) Net income (loss) $ 173 $ (35 ) Currency translation(1) (56 ) (343 ) Gain on cash flow hedge 8 2 Amortization of unrecognized pension and postretirement benefit costs, net of income taxes 6 4 131 (372 ) Less: comprehensive income attributable to noncontrollinginterests (1 ) (2 ) Comprehensive income (loss) attributable to Tyco ElectronicsLtd. $ 130 $ (374 ) (1) Includes hedge of net investment foreign exchange gains or losses, offsetting foreign exchange gains or losses attributable to the translation of the net investments.

Earnings

Earnings (Loss) Per Share
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Earnings (Loss) Per Share	18. Earnings (Loss) Per Share Basic earnings (loss) per share attributable to Tyco Electronics Ltd. is computed by dividing net income (loss) attributable to Tyco Electronics Ltd. by the basic weighted-average number of common shares outstanding. Diluted earnings (loss) per share attributable to Tyco Electronics Ltd. is computed by dividing net income (loss) attributable to Tyco Electronics Ltd. by the weighted-average number of common shares outstanding adjusted for potentially dilutive unexercised share options and non-vested restricted share awards. The following table sets forth the denominators of the basic and diluted earnings (loss) per share computations: For the Quarters Ended December25, 2009 December26, 2008 (in millions) Weighted-average shares outstanding: Basic 459 459 Share options and restricted share awards 3 2 Diluted 462 461 Certain share options were not included in the computation of diluted earnings (loss) per share because the instruments' underlying exercise prices were greater than the average market prices of Tyco Electronics' common shares and inclusion would be antidilutive. Such shares not included in the computation were 22million as of December25, 2009 and December26, 2008.

Share Plans

Share Plans
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Share Plans	19. Share Plans Total share-based compensation costs included on the Condensed Consolidated Statements of Operations were $15million and $16million during the quarters ended December25, 2009 and December26, 2008, respectively, of which $1million was included in loss from discontinued operations for the quarter ended December26, 2008. All share-based compensation costs in continuing operations are presented in selling, general, and administrative expenses. Restricted Share Awards A summary of the Company's outstanding restricted share awards as of December25, 2009 and changes during the quarter then ended are presented below: Shares Weighted-Average Grant-Date Fair Value Non-vested at September25, 2009 4,252,190 $ 23.80 Granted 2,172,253 24.59 Vested (876,914 ) 21.28 Forfeited (46,854 ) 28.51 Non-vested at December25, 2009 5,500,675 $ 24.47 As of December25, 2009, there were $95million of unrecognized compensation costs related to non-vested Tyco Electronics restricted share awards. That cost is expected to be recognized over a weighted-average period of 3.1years. Share Options A summary of the Company's outstanding share option awards as of December25, 2009 and changes during the quarter then ended are presented below: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) Outstanding at September25, 2009 25,635,095 $ 38.30 Granted 3,718,750 24.60 Exercised (96,781 ) 15.00 Expired (1,212,386 ) 50.08 Forfeited (85,038 ) 25.56 Outstanding at December25, 2009 27,959,640 $ 36.09 5.3 $ 56 Vested and non-vested expected to vest at December25, 2009 26,895,933 $ 36.59 5.3 $ 53 Exercisable at December25, 2009 19,473,476 $ 41.46 3.6 $ 27 As of December25, 2009, there were $46million of total unrecognized compensation costs related to non-vested Tyco Electronics share options granted under Tyco Electronics share option plans. The cost is expected to be recognized over a weighted-average period of 2.6years. The grant-date fair value of each share option grant is estimated using the Black-Scholes-Merton option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected share price volatility was calculated based on the historical volatility of the stock of a composite of peers of Tyco Electronics and implied volatility derived from exchange traded options on that same composite of peers. The average expected life was based on the contractual term of the option and expected employee exercise and post-vesting employment termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The expected annual dividend per share wa

Segment Data

Segment Data
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Segment Data	20. Segment Data Net sales and operating income (loss) by segment for the quarters ended December25, 2009 and December26, 2008 were as follows: Net Sales(1) Operating Income (Loss) For the Quarters Ended For the Quarters Ended December25, 2009 December26, 2008 December25, 2009 December26, 2008 (in millions) Electronic Components $ 1,911 $ 1,625 $ 163 $ (18 ) Network Solutions 422 456 20 44 Specialty Products 358 367 51 28 Undersea Telecommunications 201 265 35 38 Pre-separation litigation charges, net (9 ) Total $ 2,892 $ 2,713 $ 269 $ 83 (1) Intersegment sales were not material and were recorded at selling prices that approximate market prices. Segment assets and a reconciliation of segment assets to total assets at December25, 2009 and September25, 2009 were as follows: December25, 2009 September25, 2009 (in millions) Electronic Components $ 4,448 $ 4,340 Network Solutions 866 929 Specialty Products 606 624 Undersea Telecommunications 579 628 Total segment assets(1) 6,499 6,521 Other current assets 2,329 2,169 Other non-current assets 7,455 7,530 Total assets $ 16,283 $ 16,220 (1) Segment assets are comprised of accounts receivable, inventories, and property, plant, and equipment.

Subsequent Events

Subsequent Events
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Subsequent Events	21. Subsequent Events In January 2010, the Company completed the acquisition of Sensitive Object, an early-stage software company engaged in developing touch-enabling technology focused on computers, mobile devices, and consumer electronics, for a purchase price of approximately $62million in cash, subject to certain holdback provisions and working capital adjustments. This acquisition will be reported as part of the Company's Specialty Products segment. The Company has evaluated subsequent events through January28, 2010, the date on which the financial statements were issued.

Tyco Electronics Group S.A.

Tyco Electronics Group S.A.
	3 Months Ended Dec. 25, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Tyco Electronics Group S.A.	22. Tyco Electronics GroupS.A. In December 2006, prior to the separation, TEGSA, a 100%-owned subsidiary of Tyco ElectronicsLtd., was formed. TEGSA, a Luxembourg company, is a holding company that owns, directly or indirectly, all of the operating subsidiaries of Tyco ElectronicsLtd. TEGSA is the obligor under the Company's senior notes, Credit Facility, and commercial paper, all of which, including profit sharing notes issued by a subsidiary, are fully and unconditionally guaranteed by its parent, Tyco ElectronicsLtd. The following tables present condensed consolidating financial information for Tyco ElectronicsLtd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting. CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended December25, 2009 Tyco ElectronicsLtd. Tyco Electronics GroupS.A. Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ $ $ 2,892 $ $ 2,892 Cost of sales 2,051 2,051 Gross margin 841 841 Selling, general, and administrative expenses 32 4 332 368 Research, development, and engineering expenses 138 138 Restructuring and other charges, net 66 66 Operating income (loss) (32 ) (4 ) 305 269 Interest income 4 4 Interest expense (37 ) (2 ) (39 ) Other income, net 8 8 Equity in net income of subsidiaries 208 223 (431 ) Intercompany interest and fees (4 ) 26 (22 ) Income before income taxes 172 208 293 (431 ) 242 Income tax expense (69 ) (69 ) Net income 172 208 224 (431 ) 173 Less: net income attributable to noncontrolling interests (1 ) (1 ) Net income attributable to Tyco ElectronicsLtd. $ 172 $ 208 $ 223 $ (431 ) $ 172 CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended December26, 2008 Tyco ElectronicsLtd. Tyco Electronics GroupS.A. Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ $ $ 2,713 $ $ 2,713 Cost of sales 1,989 1,989 Gross margin 724 724 Selling, general, and administrative expenses 9 1 401 411 Research, development, and engineering expenses 144 144 Pre-separation litigation charges, net 9 9 Restructuring and other charges, net 77 77 Operating income (loss) (18 ) (1 ) 102 83 Interest income 6 6 Interest expense (39 ) (3 ) (42 ) Other expense, net (1 ) (

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Dec. 25, 2009	Jan. 25, 2010
Document And Entity Information
Entity Registrant Name	Tyco Electronics Ltd.
Entity Central Index Key	0001385157
Document Type	10-Q
Document Period End Date	2009-12-25
Amendment Flag	false
Current Fiscal Year End Date	--09-24
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		459,097,961