CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Mar. 26, 2010 | 3 Months Ended
Mar. 27, 2009 | 6 Months Ended
Mar. 26, 2010 | 6 Months Ended
Mar. 27, 2009 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $2,957 | $2,337 | $5,849 | $5,050 |
Cost of sales | 1,999 | 1,803 | 4,050 | 3,792 |
Gross margin | 958 | 534 | 1,799 | 1,258 |
Selling, general, and administrative expenses | 406 | 329 | 774 | 740 |
Research, development, and engineering expenses | 142 | 131 | 280 | 275 |
Pre-separation litigation charges, net | 135 | 144 | ||
Restructuring and other charges, net | 12 | 189 | 78 | 266 |
Impairment of goodwill | 3,547 | 3,547 | ||
Operating income (loss) | 398 | (3,797) | 667 | (3,714) |
Interest income | 6 | 3 | 10 | 9 |
Interest expense | (38) | (41) | (77) | (83) |
Other income, net | 75 | 3 | 83 | 2 |
Income (loss) from continuing operations before income taxes | 441 | (3,832) | 683 | (3,786) |
Income tax (expense) benefit | (135) | 594 | (204) | 580 |
Income (loss) from continuing operations | 306 | (3,238) | 479 | (3,206) |
Income (loss) from discontinued operations, net of income taxes | 1 | (66) | ||
Net income (loss) | 306 | (3,237) | 479 | (3,272) |
Less: net income attributable to noncontrolling interests | (2) | (1) | (3) | (3) |
Net income (loss) attributable to Tyco Electronics Ltd. | 304 | (3,238) | 476 | (3,275) |
Amounts attributable to Tyco Electronics Ltd.: | ||||
Income (loss) from continuing operations | 304 | (3,239) | 476 | (3,209) |
Income (loss) from discontinued operations | 1 | (66) | ||
Net income (loss) attributable to Tyco Electronics Ltd. | $304 | ($3,238) | $476 | ($3,275) |
Basic earnings (loss) per share attributable to Tyco Electronics Ltd.: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.67 | -7.07 | 1.04 | -6.99 |
Income (loss) from discontinued operations (in dollars per share) | $0 | -0.15 | ||
Net income (loss) (in dollars per share) | 0.67 | -7.07 | 1.04 | -7.14 |
Diluted earnings (loss) per share attributable to Tyco Electronics Ltd.: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.66 | -7.07 | 1.03 | -6.99 |
Income (loss) from discontinued operations (in dollars per share) | $0 | -0.15 | ||
Net income (loss) (in dollars per share) | 0.66 | -7.07 | 1.03 | -7.14 |
Weighted-average number of shares outstanding: | ||||
Basic (in shares) | 457 | 458 | 458 | 459 |
Diluted (in shares) | 461 | 458 | 461 | 459 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | 6 Months Ended
Mar. 26, 2010 | 12 Months Ended
Sep. 25, 2009 |
Current Assets: | ||
Cash and cash equivalents | $1,839 | $1,521 |
Accounts receivable, net of allowance for doubtful accounts of $41 and $48, respectively | 2,042 | 1,975 |
Inventories | 1,550 | 1,435 |
Prepaid expenses and other current assets | 527 | 487 |
Deferred income taxes | 153 | 161 |
Total current assets | 6,111 | 5,579 |
Property, plant, and equipment, net | 2,896 | 3,111 |
Goodwill | 3,175 | 3,160 |
Intangible assets, net | 397 | 407 |
Deferred income taxes | 2,539 | 2,518 |
Receivable from Tyco International Ltd. and Covidien plc | 1,210 | 1,211 |
Other assets | 224 | 234 |
Total Assets | 16,552 | 16,220 |
Current Liabilities: | ||
Current maturities of long-term debt | 101 | 101 |
Accounts payable | 1,304 | 1,068 |
Accrued and other current liabilities | 1,713 | 1,243 |
Deferred revenue | 162 | 203 |
Total current liabilities | 3,280 | 2,615 |
Long-term debt | 2,313 | 2,316 |
Long-term pension and postretirement liabilities | 1,089 | 1,129 |
Deferred income taxes | 174 | 188 |
Income taxes | 2,365 | 2,312 |
Other liabilities | 535 | 634 |
Total Liabilities | 9,756 | 9,194 |
Commitments and contingencies (Note 12) | ||
Shareholders' Equity: | ||
Common shares, 468,215,574 shares authorized and issued, CHF 2.09 par value, at March 26, 2010; 468,215,574 shares authorized and issued, CHF 2.43 par value, at September 25, 2009 | 599 | 1,049 |
Contributed surplus | 8,137 | 8,135 |
Accumulated deficit | (1,798) | (2,274) |
Treasury shares, at cost, 14,699,794 and 9,425,172 shares, respectively | (467) | (349) |
Accumulated other comprehensive income | 317 | 455 |
Total Tyco Electronics Ltd. shareholders' equity | 6,788 | 7,016 |
Noncontrolling interests | 8 | 10 |
Total Shareholders' Equity | 6,796 | 7,026 |
Total Liabilities and Shareholders' Equity | $16,552 | $16,220 |
1_CONDENSED CONSOLIDATED BALANC
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | ||||
In Millions, except Share data | Mar. 26, 2010
CHF | Mar. 26, 2010
USD ($) | Sep. 25, 2009
USD ($) | Sep. 25, 2009
CHF |
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) | 2.09 | 2.43 | ||
Treasury shares | 14,699,794 | 9,425,172 |
2_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Millions | 6 Months Ended
Mar. 26, 2010 | 6 Months Ended
Mar. 27, 2009 |
Cash Flows From Operating Activities: | ||
Net income (loss) | $479 | ($3,272) |
Loss from discontinued operations, net of income taxes | 66 | |
Income (loss) from continuing operations | 479 | (3,206) |
Adjustments to reconcile net cash provided by operating activities: | ||
Impairment of goodwill | 3,547 | |
Non-cash restructuring and other charges, net | 16 | 23 |
Depreciation and amortization | 266 | 252 |
Deferred income taxes | 155 | (679) |
Provision for losses on accounts receivable and inventories | 38 | |
Tax sharing income | (83) | (5) |
Other | 38 | 34 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | (146) | 832 |
Inventories | (129) | 207 |
Inventoried costs on long-term contracts | (25) | (59) |
Prepaid expenses and other current assets | 26 | 215 |
Accounts payable | 260 | (544) |
Accrued and other current liabilities | 4 | (156) |
Income taxes | 28 | |
Deferred revenue | (40) | (59) |
Other | 9 | 25 |
Net cash provided by continuing operating activities | 830 | 493 |
Net cash used in discontinued operating activities | (36) | |
Net cash provided by operating activities | 830 | 457 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (157) | (209) |
Proceeds from sale of property, plant, and equipment | 5 | 7 |
Acquisition of business, net of cash acquired | (55) | |
Proceeds from divestiture of discontinued operations, net of cash retained by operations sold | 29 | |
Proceeds from divestiture of businesses, net of cash retained by businesses sold | 12 | 6 |
Other | (4) | (3) |
Net cash used in continuing investing activities | (199) | (170) |
Net cash used in discontinued investing activities | (2) | |
Net cash used in investing activities | (199) | (172) |
Cash Flows From Financing Activities: | ||
Net decrease in commercial paper | (649) | |
Proceeds from long-term debt | 442 | |
Repayment of long-term debt | (119) | |
Repurchase of common shares | (165) | (152) |
Payment of common share dividends and cash distributions to shareholders | (146) | (147) |
Transfer to discontinued operations | (32) | |
Other | (2) | (3) |
Net cash used in continuing financing activities | (313) | (660) |
Net cash provided by discontinued financing activities | 37 | |
Net cash used in financing activities | (313) | (623) |
Effect of currency translation on cash | (26) | |
Net increase (decrease) in cash and cash equivalents | 318 | (364) |
Less: net decrease in cash and cash equivalents related to discontinued operations | 1 | |
Cash and cash equivalents at beginning of period | 1,521 | 1,090 |
Cash and cash equivalents at end of period | $1,839 | $727 |
Basis of Presentation
Basis of Presentation | |
6 Months Ended
Mar. 26, 2010 | |
Basis of Presentation | |
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 | |
6 Months Ended
Mar. 26, 2010 | |
Accounting Pronouncements | |
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 ASC820 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 ASC820 for non-financial assets and liabilities on September26, 2009. See Note14 for additional information related to fair value measurements. In April 2009 and December 2007, the FASB issued guidance in ASC805, 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 ASC810 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 | |
6 Months Ended
Mar. 26, 2010 | |
Restructuring and Other Charges, Net | |
Restructuring and Other Charges, Net | 3. Restructuring and Other Charges, Net Restructuring and other charges, net consisted of the following during the quarters and six months ended March26, 2010 and March27, 2009: For the Quarters Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Restructuring and related charges, net $ 14 $ 183 $ 65 $ 260 Loss (gain) on divestitures and impairment of long-lived assets (2 ) 6 13 6 $ 12 $ 189 $ 78 $ 266 Restructuring and Related Charges, Net Charges to operations by segment during the quarters and six months ended March26, 2010 and March27, 2009 were as follows: For the Quarters Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Electronic Components $ 8 $ 160 $ 52 $ 202 Network Solutions 2 8 4 27 Specialty Products 4 12 4 26 Subsea Communications 1 2 4 14 181 62 259 Less: credits in cost of sales 2 3 1 Restructuring and related charges, net $ 14 $ 183 $ 65 $ 260 Amounts recognized on the Condensed Consolidated Statements of Operations during the quarters and six months ended March26, 2010 and March27, 2009 were as follows: For the Quarters Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Cash charges $ 15 $ 168 $ 59 $ 236 Non-cash charges (1 ) 13 3 23 14 181 62 259 Less: credits in cost of sales 2 3 1 Restructuring and related charges, net $ 14 $ 183 $ 65 $ 260 Cash Charges Activity in the Company's restructuring reserves during the first six months of fiscal 2010 is summarized as follows: Balanceat September25, 2009 Charges Utilization Changesin Estimate Currency Translation andOther Balanceat March26, 2010 (in millions) Fiscal 2010 Actions: Employee severance $ $ 44 $ (1 ) $ $ (3 ) $ 40 Facility exit costs 7 (5 ) 7 (1) 9 Other 1 1 Total 52 (6 ) 4 50 Fiscal 2009 Actions: Employee severance 116 (58 ) (7 ) (5 ) 46 Facility exit costs 3 3 (3 ) 3 Other 1 4 (5 ) Total 120 7 (66 ) (7 ) (5 ) 49 Pre-Fiscal 2009 Actions: Employee severance 91 (37 ) 1 (5 ) 50 Facilities exit costs 51 3 (8 ) (1 ) 45 Other 8 4 (5 ) (1 ) 6 |
Discontinued Operations
Discontinued Operations | |
6 Months Ended
Mar. 26, 2010 | |
Discontinued Operations | |
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 and six months ended March27, 2009; there were no such amounts for the quarter and six months ended March26, 2010: For the QuarterEnded For the SixMonthsEnded March27, 2009 (in millions) Net sales $ 119 $ 215 Pre-tax loss from discontinued operations $ (4 ) $ (108 ) Pre-tax gain on sale of discontinued operations 4 4 Income tax benefit 1 38 Income (loss) from discontinued operations, net of income taxes $ 1 $ (66 ) Pre-tax loss from discontinued operations for the six months ended March27, 2009 included pre-tax charges of $111million related to the Wireless Systems business' contract with the State of New York. See Note12 for additional information regarding the State of New York contract. |
Acquisition
Acquisition | |
6 Months Ended
Mar. 26, 2010 | |
Acquisition | |
Acquisition | 5. Acquisition On January20, 2010, the Company acquired 100% of the outstanding shares of capital stock 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 $67million in cash, including contingent consideration of $6million to be paid in fiscal 2011 upon completion of certain service requirements by key Sensitive Object managers. Based on an initial evaluation of the range of outcomes for this contingent consideration, the maximum amount payable, on an undiscounted basis, would be $7million. The acquisition complements the Company's existing Touch Systems business, which is primarily focused on commercial and industrial markets. Sensitive Object is reported as part of the Touch Systems business within the Specialty Products segment. The transaction is accounted for under the provisions of ASC 805, Business Combinations. The allocation of the purchase price of the assets acquired and liabilities assumed based on the recognition and measurement provisions of ASC 805 was as follows: (in millions) Cash and cash equivalents $ 6 Tangible and other assets 3 Amortizable intangible assets: Developed technology and patents 11 Reacquired rights 1 Customer contracts and related relationships 1 Goodwill 51 Total assets acquired 73 Liabilities assumed (6 ) Total $ 67 The amortizable intangible assets include developed technology, patents, and reacquired rights having useful lives of eight years and will be amortized based on their contributions to earnings. Also included in amortizable intangible assets are customer contracts and related relationships that will be amortized on a straight-line basis over their expected life of five years. Due to immateriality, no amounts have been allocated to in-process research and development. Approximately $51million has been allocated to goodwill, representing the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Factors contributing to the amount of recognized goodwill are low revenue levels in the years immediately after the acquisition reflecting the early-stage status of Sensitive Object and the amount of future investment required to develop a commercially viable product. Goodwill related to this acquisition is reported in the Specialty Products segment and is not deductible for tax purposes. Pro forma information is not presented as the impact on the Company's Condensed Consolidated Statements of Operations is not material. |
Inventories
Inventories | |
6 Months Ended
Mar. 26, 2010 | |
Inventories | |
Inventories | 6. Inventories Inventories consisted of the following: March26, 2010 September25, 2009 (in millions) Raw materials $ 259 $ 253 Work in progress 490 439 Finished goods 658 624 Inventoried costs on long-term contracts 143 119 Inventories $ 1,550 $ 1,435 |
Goodwill
Goodwill | |
6 Months Ended
Mar. 26, 2010 | |
Goodwill | |
Goodwill | 7. 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 Acquisition 51 51 Currency translation (16 ) (10 ) (10 ) (36 ) Balance at March26, 2010 $ 1,397 $ 837 $ 941 $ 3,175 During the second quarter of fiscal 2010, the Company completed the acquisition of Sensitive Object. The acquisition resulted in the recognition of $51million of goodwill, all of which benefits the Touch Systems business in the Specialty Products segment. See Note5 for additional information on the acquisition of Sensitive Object. |
Intangible Assets, Net
Intangible Assets, Net | |
6 Months Ended
Mar. 26, 2010 | |
Intangible Assets, Net | |
Intangible Assets, Net | 8. Intangible Assets, Net The Company's intangible assets were as follows: March26, 2010 September25, 2009 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period ($ in millions) Intellectual property $ 719 $ (339 ) $ 380 23years $ 724 $ (330 ) $ 394 24years Other 21 (4 ) 17 46years 17 (4 ) 13 50years Total $ 740 $ (343 ) $ 397 24years $ 741 $ (334 ) $ 407 25years Intangible asset amortization expense was $7million and $8million for the quarters ended March26, 2010 and March27, 2009, respectively, and $15million and $16million for the six months ended March26, 2010 and March27, 2009, respectively. 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 $ 15 Fiscal 2011 30 Fiscal 2012 29 Fiscal 2013 31 Fiscal 2014 30 Fiscal 2015 29 Thereafter 233 $ 397 |
Debt
Debt | |
6 Months Ended
Mar. 26, 2010 | |
Debt | |
Debt | 9. Debt Debt was as follows: March26, 2010 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) 742 744 7.125% senior notes due 2037(1) 475 475 Other 177 178 Total debt 2,414 2,417 Less current portion(2) 101 101 Long-term debt $ 2,313 $ 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 March26, 2010 and September25, 2009 was comprised of amounts included in 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 March26, 2010 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 and Credit Facility and the payment obligation of the 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 probable issuance of fixed-rate debt 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 Note13 for additional information on swaptions, forward starting interest rate swaps, and interest rate swaps. The fair value of the Company's debt was approximately $2,545million and $2,420million at March26, 2010 and September25, 2009, respectively. |
Guarantees
Guarantees | |
6 Months Ended
Mar. 26, 2010 | |
Guarantees | |
Guarantees | 10. 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 March26, 2010, the Company had a liability representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement of $339million of which $254million was reflected in other liabilities and $85million 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 March26, 2010, the Company had outstanding letters of credit and letters of guarantee in the amount of $3 |
Retirement Plans
Retirement Plans | |
6 Months Ended
Mar. 26, 2010 | |
Retirement Plans | |
Retirement Plans | 11. Retirement Plans The net periodic benefit cost for all U.S. and non-U.S. defined benefit pension plans in the quarters ended March26, 2010 and March27, 2009 was as follows: Defined Benefit Pension Plans U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Service cost $ 1 $ 1 $ 14 $ 14 Interest cost 13 15 22 22 Expected return on plan assets (14 ) (16 ) (13 ) (16 ) Amortization of net actuarial loss 8 4 7 4 Settlement/curtailment loss 1 Net periodic benefit cost $ 8 $ 4 $ 30 $ 25 The net periodic benefit cost for all U.S. and non-U.S. defined benefit pension plans in the six months ended March26, 2010 and March27, 2009 was as follows: Defined Benefit Pension Plans U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Service cost $ 3 $ 3 $ 29 $ 29 Interest cost 27 29 43 44 Expected return on plan assets (29 ) (31 ) (27 ) (32 ) Amortization of net actuarial loss 16 8 15 7 Settlement/curtailment loss (gain) 2 (1 ) Net periodic benefit cost $ 19 $ 9 $ 59 $ 48 The net periodic benefit cost for postretirement benefit plans was immaterial for the quarters and six month periods ended March26, 2010 and March27, 2009. 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 $90million for non-U.S. plans. During the six months ended March26, 2010, the Company contributed $63million 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 six months ended March26, 2010, the Company contributed $1million to its postretirement benefit plans. |
Commitments and Contingencies
Commitments and Contingencies | |
6 Months Ended
Mar. 26, 2010 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. 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 | |
6 Months Ended
Mar. 26, 2010 | |
Financial Instruments | |
Financial Instruments | 13. 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 March26, 2010 and September25, 2009. See Note9 for disclosure of the fair value of debt and Note14 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 generally 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 with financial institutions worldwide, substantially all of which have 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 March26, 2010, 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 currency 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 for |
Fair Value Measurements
Fair Value Measurements | |
6 Months Ended
Mar. 26, 2010 | |
Fair Value Measurements | |
Fair Value Measurements | 14. 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) March26, 2010: Assets: Commodity swap contracts $ 3 $ $ $ 3 Interest rate swaps and swaptions 8 8 Foreign currency contracts 2 2 Rabbi trust assets 74 74 Total assets at fair value $ 77 $ 10 $ $ 87 Liabilities: Commodity swap contracts $ 1 $ $ $ 1 Foreign currency contracts 1 1 Total liabilities at fair value $ 1 $ 1 $ $ 2 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 did 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 market approach models that use readily observable interest rates as their basis (level2). Foreign currency contractsFair value of these assets and liabilities is determined using the market approa |
Income Taxes
Income Taxes | |
6 Months Ended
Mar. 26, 2010 | |
Income Taxes | |
Income Taxes | 15. Income Taxes The Company recorded a tax provision of $135million, an effective income tax rate of 30.6%, for the quarter ended March26, 2010 and a tax benefit of $594million, an effective income tax rate of 15.5%, for the quarter ended March27, 2009. For the six months ended March26, 2010 and March27, 2009, the Company recorded a tax provision of $204million, an effective income tax rate of 29.9%, and a tax benefit of $580million, an effective income tax rate of 15.3%, respectively. The effective income tax rate for the quarter and six months ended March26, 2010 reflects a charge of $118million primarily associated with certain proposed adjustments to prior year income tax returns and related accrued interest as well as an income tax benefit of $72million recognized in connection with a reduction in the valuation allowance associated with tax loss carryforwards in certain non-U.S. locations. In addition, the effective income tax rate for the quarter and six months ended March26, 2010 reflects tax benefits recognized in connection with anticipated increased profitability in fiscal 2010 in certain entities operating in lower tax rate jurisdictions. The effective income tax rate for the quarter and six months ended March27, 2009 was impacted by a $3,547million pre-tax impairment of goodwill for which a tax benefit was not fully recognized, as well as pre-tax charges related to pre-separation securities litigation, for which no tax benefit was recorded. The Company records accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of March26, 2010, the Company had recorded $1,330million of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheet, of which $1,248million was recorded in income taxes and $82million was recorded in accrued and other current liabilities. During the quarter and six months ended March26, 2010, the Company recognized $89million and $118million, respectively, 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 Note12 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 |
Other Income, Net
Other Income, Net | |
6 Months Ended
Mar. 26, 2010 | |
Other Income, Net | |
Other Income, Net | 16. Other Income, Net In the quarters ended March26, 2010 and March27, 2009, the Company recorded net other income of $75million and $3million, respectively, primarily consisting of income pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The $75million of income in the second quarter of fiscal 2010 reflects a net increase to the receivable from Tyco International and Covidien primarily related to certain proposed adjustments to prior period income tax returns and related accrued interest. In the six months ended March26, 2010, the Company recorded net other income of $83million, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. In the six months ended March27, 2009, the Company recorded net other income of $2million, primarily consisting of $5million of income pursuant to the Tax Sharing Agreement with Tyco International and Covidien offset by $3million of unrealized losses on rabbi trust assets. |
Shareholders' Equity
Shareholders' Equity | |
6 Months Ended
Mar. 26, 2010 | |
Shareholders' Equity | |
Shareholders' Equity | 17. 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 March26, 2010 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. The Company paid the first installment of the distribution at a rate of $0.16 per share during the quarter ended December25, 2009. During the quarter ended March26, 2010, the Company paid the second installment of the distribution at a rate of $0.16 per share. These capital reductions reduced the par value of the Company's common shares from CHF2.43 (equivalent to $2.24) to CHF2.09 (equivalent to $1.92). In March 2010, 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 CHF0.72 (equivalent to $0.64) per share, payable in four equal installments in each quarter beginning in the third quarter of fiscal 2010 through the second quarter of fiscal 2011. 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 distribution of CHF0.72 (equivalent to $0.64) per share is recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheet at March26, 2010. There were no unpaid dividends and distributions to shareholders as of September25, 2009. Share Repurchase Program During the second quarter and first six months of fiscal 2010, the Company purchased approximately 6million and 7million, respectively, of its common shares for $147 |
Comprehensive Income
Comprehensive Income (Loss) | |
6 Months Ended
Mar. 26, 2010 | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | 18. Comprehensive Income (Loss) Comprehensive income (loss) consisted of the following: For the Quarters Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Net income (loss) $ 306 $ (3,237 ) $ 479 $ (3,272 ) Currency translation(1) (106 ) (143 ) (162 ) (486 ) Gain (loss) on cash flow hedges, net of income taxes (4 ) 4 2 Amortization of unrecognized pension and postretirement benefit costs, net of income taxes 14 5 20 9 210 (3,375 ) 341 (3,747 ) Less: comprehensive income attributable to noncontrolling interests (2 ) (1 ) (3 ) (3 ) Comprehensive income (loss) attributable to Tyco ElectronicsLtd. $ 208 $ (3,376 ) $ 338 $ (3,750 ) (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 | |
6 Months Ended
Mar. 26, 2010 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | 19. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to Tyco ElectronicsLtd. by the basic weighted-average number of common shares outstanding. Diluted earnings (loss) per share is computed by dividing net income (loss) attributable to Tyco ElectronicsLtd. 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 For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Weighted-average shares outstanding: Basic 457 458 458 459 Share options and restricted share awards 4 3 Diluted 461 458 461 459 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 18million and 27million as of March26, 2010 and March27, 2009, respectively. For the quarter and six months ended March27, 2009, non-vested restricted share awards and unexercised options to purchase Tyco Electronics' common shares with underlying exercise prices less than the average market prices were outstanding, but were excluded from the calculation of diluted loss per share as inclusion of these securities would have been antidilutive. Such shares not included in the computation were 0.2million and 1million for the quarter and six months ended March27, 2009, respectively. |
Share Plans
Share Plans | |
6 Months Ended
Mar. 26, 2010 | |
Share Plans | |
Share Plans | 20. Share Plans Total share-based compensation costs included on the Condensed Consolidated Statements of Operations were $16million and $12million during the quarters ended March26, 2010 and March27, 2009, respectively, of which $1million was included in income from discontinued operations for the quarter ended March27, 2009. Total share-based compensation costs were $31million and $28million during the six months ended March26, 2010 and March27, 2009, respectively, of which $2million was included in loss from discontinued operations for the six months ended March27, 2009. All share-based compensation costs in continuing operations are presented in selling, general, and administrative expenses. On March10, 2010, the Company's shareholders approved a proposal to increase the number of shares issuable under the Tyco ElectronicsLtd. 2007 Stock and Incentive Plan, as amended and restated (the "2007 Plan"), by 15million shares. As of March26, 2010, there were approximately 17million shares available under the 2007 Plan. Restricted Share Awards A summary of the Company's outstanding restricted share awards as of March26, 2010 and changes during the six months then ended are presented below: Shares Weighted-Average Grant-Date Fair Value Non-vested at September25, 2009 4,252,190 $ 23.80 Granted 2,322,426 24.64 Vested (925,789 ) 21.50 Forfeited (96,174 ) 26.09 Non-vested at March26, 2010 5,552,653 24.49 As of March26, 2010, there were $87million 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 2.7years. Share Options A summary of the Company's outstanding share option awards as of March26, 2010 and changes during the six months 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 4,019,800 24.67 Exercised (193,194 ) 15.18 Expired (1,924,049 ) 48.37 Forfeited (105,693 ) 24.72 Outstanding at March26, 2010 27,431,959 35.81 5.2 $ 88 Vested and non-vested expected to vest at March26, 2010 26,427,851 $ 36.29 5.2 $ 82 Exercisable at March26, 2010 18,725,200 $ 41.38 3.5 $ 36 As of March26, 2010, there were $43million 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 2.4years. 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 w |
Segment Data
Segment Data | |
6 Months Ended
Mar. 26, 2010 | |
Segment Data | |
Segment Data | 21. Segment Data During the second quarter of fiscal 2010, the Undersea Telecommunications segment was renamed Subsea Communications. This segment continues to design, manufacture, install, and maintain undersea communications solutions. Net sales by segment for the quarters and six months ended March26, 2010 and March27, 2009 were as follows: For the Quarters Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Electronic Components $ 1,984 $ 1,280 $ 3,895 $ 2,905 Network Solutions 394 402 816 858 Specialty Products 371 346 729 713 Subsea Communications 208 309 409 574 Total(1) $ 2,957 $ 2,337 $ 5,849 $ 5,050 (1) Intersegment sales were not material and were recorded at selling prices that approximate market prices. Operating income (loss) by segment for the quarters and six months ended March26, 2010 and March27, 2009 were as follows: For the Quarters Ended For the Six Months Ended March26, 2010 March27, 2009 March26, 2010 March27, 2009 (in millions) Electronic Components $ 262 $ (3,654) (1) $ 425 $ (3,672) (1) Network Solutions 42 21 62 65 Specialty Products 49 (83) (2) 100 (55) (2) Subsea Communications 45 54 80 92 Pre-separation litigation charges, net (135 ) (144 ) Total $ 398 $ (3,797 ) $ 667 $ (3,714 ) (1) Includes charges of $3,435million related to the impairment of goodwill. (2) Includes charges of $112million related to the impairment of goodwill. Segment assets and a reconciliation of segment assets to total assets at March26, 2010 and September25, 2009 were as follows: March26, 2010 September25, 2009 (in millions) Electronic Components $ 4,468 $ 4,340 Network Solutions 864 929 Specialty Products 615 624 Subsea Communications 541 628 Total segment assets(1) 6,488 6,521 Other current assets 2,519 2,169 Other non-current assets 7,545 7,530 Total assets $ 16,552 $ 16,220 (1) Segment assets are comprised of accounts receivable, inventories, and property, plant, and equipment. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | |
6 Months Ended
Mar. 26, 2010 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 22. Tyco Electronics GroupS.A. TEGSA, a Luxembourg company and 100%-owned subsidiary of Tyco ElectronicsLtd., 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 and Credit Facility, 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 March26, 2010 Tyco ElectronicsLtd. Tyco Electronics GroupS.A. Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ $ $ 2,957 $ $ 2,957 Cost of sales 1,999 1,999 Gross margin 958 958 Selling, general, and administrative expenses 38 3 365 406 Research, development, and engineering expenses 142 142 Restructuring and other charges, net 12 12 Operating income (loss) (38 ) (3 ) 439 398 Interest income 6 6 Interest expense (36 ) (2 ) (38 ) Other income, net 75 75 Equity in net income of subsidiaries 346 359 (705 ) Intercompany interest and fees (4 ) 26 (22 ) Income before income taxes 304 346 496 (705 ) 441 Income tax expense (135 ) (135 ) Net income 304 346 361 (705 ) 306 Less: net income attributable to noncontrolling interests (2 ) (2 ) Net income attributable to Tyco ElectronicsLtd. $ 304 $ 346 $ 359 $ (705 ) $ 304 CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended March27, 2009 Tyco ElectronicsLtd. Tyco Electronics GroupS.A. Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ $ $ 2,337 $ $ 2,337 Cost of sales 1,803 1,803 Gross margin 534 534 Selling, general, and administrative expenses 19 3 307 329 Research, development, and engineering expenses 131 131 Pre-separation litigation charges, net 135 135 Restructuring and other charges, net 189 189 Impairment of goodwill 3,547 3,547 Operating loss (154 ) (3 ) (3,640 ) (3,797 ) Interest income 3 3 Interest expense (39 ) (2 ) (41 ) Other income, net 3 3 Equity in net loss |
Document and Entity Information
Document and Entity Information | ||
6 Months Ended
Mar. 26, 2010 | Apr. 23, 2010
| |
Document And Entity Information | ||
Entity Registrant Name | Tyco Electronics Ltd. | |
Entity Central Index Key | 0001385157 | |
Document Type | 10-Q | |
Document Period End Date | 2010-03-26 | |
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 | 453,553,902 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q2 |