Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Sep. 27, 2013 | Nov. 11, 2013 | Mar. 29, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'TE Connectivity Ltd. | ' | ' |
Entity Central Index Key | '0001385157 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 27-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-27 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $17.40 |
Entity Common Stock, Shares Outstanding | ' | 410,374,147 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2012 | Sep. 30, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
Net sales | $13,282 | $13,778 |
Cost of sales | 9,236 | 9,507 |
Gross margin | 4,046 | 4,271 |
Selling, general, and administrative expenses | 1,685 | 1,728 |
Research, development, and engineering expenses | 688 | 701 |
Acquisition and integration costs | 27 | 19 |
Restructuring and other charges, net | 128 | 136 |
Operating income | 1,518 | 1,687 |
Interest income | 23 | 22 |
Interest expense | -176 | -161 |
Other income (expense), net | 50 | 27 |
Income from continuing operations before income taxes | 1,415 | 1,575 |
Income tax (expense) benefit | -249 | -347 |
Income from continuing operations | 1,166 | 1,228 |
Income (loss) from discontinued operations, net of income taxes | -51 | 22 |
Net income | 1,115 | 1,250 |
Less: net income attributable to noncontrolling interests | -3 | -5 |
Net income attributable to TE Connectivity Ltd. | 1,112 | 1,245 |
Amounts attributable to TE Connectivity Ltd.: | ' | ' |
Income from continuing operations | 1,163 | 1,223 |
Income (loss) from discontinued operations | -51 | 22 |
Net income attributable to TE Connectivity Ltd. | $1,112 | $1,245 |
Basic earnings per share attributable to TE Connectivity Ltd.: | ' | ' |
Income from continuing operations (in dollars per share) | $2.73 | $2.79 |
Income (loss) from discontinued operations (in dollars per share) | ($0.12) | $0.05 |
Net income (in dollars per share) | $2.61 | $2.84 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | ' | ' |
Income from continuing operations (in dollars per share) | $2.70 | $2.76 |
Income (loss) from discontinued operations (in dollars per share) | ($0.11) | $0.05 |
Net income (in dollars per share) | $2.59 | $2.81 |
Dividends and cash distributions paid per common share of TE Connectivity Ltd. (in dollars per share) | $0.78 | $0.68 |
Weighted-average number of shares outstanding: | ' | ' |
Basic (in shares) | 426 | 438 |
Diluted (in shares) | 430 | 443 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $1,277 | $1,115 | $1,250 |
Other comprehensive income (loss): | ' | ' | ' |
Currency translation | -28 | -131 | 50 |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 131 | -88 | 152 |
Gain (loss) on cash flow hedges, net of income taxes | -29 | 20 | -20 |
Other comprehensive income (loss) | 74 | -199 | 182 |
Comprehensive income | 1,351 | 916 | 1,432 |
Less: comprehensive income attributable to noncontrolling interests | -1 | -3 | -5 |
Comprehensive income attributable to TE Connectivity Ltd. | $1,350 | $913 | $1,427 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,403 | $1,589 |
Accounts receivable, net of allowance for doubtful accounts of $48 and $41, respectively | 2,323 | 2,343 |
Inventories | 1,762 | 1,808 |
Prepaid expenses and other current assets | 487 | 474 |
Deferred income taxes | 334 | 289 |
Total current assets | 6,309 | 6,503 |
Property, plant, and equipment, net | 3,166 | 3,213 |
Goodwill | 4,326 | 4,308 |
Intangible assets, net | 1,244 | 1,352 |
Deferred income taxes | 2,146 | 2,460 |
Receivable from Tyco International Ltd. and Covidien plc | 1,002 | 1,180 |
Other assets | 268 | 290 |
Total Assets | 18,461 | 19,306 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 711 | 1,015 |
Accounts payable | 1,383 | 1,292 |
Accrued and other current liabilities | 1,762 | 1,576 |
Deferred revenue | 68 | 121 |
Total current liabilities | 3,924 | 4,004 |
Long-term debt | 2,303 | 2,696 |
Long-term pension and postretirement liabilities | 1,155 | 1,353 |
Deferred income taxes | 321 | 448 |
Income taxes | 1,979 | 2,311 |
Other liabilities | 393 | 517 |
Total Liabilities | 10,075 | 11,329 |
Commitments and contingencies (Note 13) | ' | ' |
Total TE Connectivity Ltd. shareholders' equity: | ' | ' |
Common shares, 428,527,307 shares authorized and issued, CHF 0.57 par value, and 439,092,124 shares authorized and issued, CHF 0.97 par value, respectively | 189 | 193 |
Contributed surplus | 6,136 | 6,837 |
Accumulated earnings | 2,472 | 1,196 |
Treasury shares, at cost, 17,020,636 and 16,408,049 shares, respectively | -720 | -484 |
Accumulated other comprehensive income | 303 | 229 |
Total TE Connectivity Ltd. shareholders' equity | 8,380 | 7,971 |
Noncontrolling interests | 6 | 6 |
Total Equity | 8,386 | 7,977 |
Total Liabilities and Equity | $18,461 | $19,306 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
CONSOLIDATED BALANCE SHEETS | ' | ' | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $48 | ' | $41 | ' |
Common shares, shares authorized | 428,527,307 | 428,527,307 | 439,092,124 | 439,092,124 |
Common shares, shares issued | 428,527,307 | 428,527,307 | 439,092,124 | 439,092,124 |
Common shares, par value (in currency per share) | $0.44 | 0.57 | ' | 0.97 |
Treasury shares | 17,020,636 | 17,020,636 | 16,408,049 | 16,408,049 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | TE Connectivity Ltd. Shareholders' Equity | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income | Noncontrolling Interests |
In Millions, except Share data, unless otherwise specified | ||||||||
Balance at Sep. 24, 2010 | $7,056 | $7,048 | $599 | ($721) | $8,085 | ($1,161) | $246 | $8 |
Balance (in shares) at Sep. 24, 2010 | ' | ' | 468,000,000 | -25,000,000 | ' | ' | ' | ' |
Increase (Decrease) in Equity: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,250 | 1,245 | ' | ' | ' | 1,245 | ' | 5 |
Other comprehensive income (loss) | 182 | 182 | ' | ' | ' | ' | 182 | ' |
Share-based compensation expense | 73 | 73 | ' | ' | 73 | ' | ' | ' |
Dividends and distributions approved | -308 | -308 | ' | ' | -308 | ' | ' | ' |
Exercise of share options | 80 | 80 | ' | 80 | ' | ' | ' | ' |
Exercise of share options (in shares) | ' | ' | ' | 4,000,000 | ' | ' | ' | ' |
Restricted share award vestings and other activity | 25 | 21 | ' | 132 | -111 | ' | ' | 4 |
Restricted share award vestings and other activity (in shares) | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Repurchase of common shares | -867 | -867 | ' | -867 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | -25,000,000 | ' | ' | -25,000,000 | ' | ' | ' | ' |
Cancellation of treasury shares | ' | ' | -6 | 141 | -135 | ' | ' | ' |
Cancellation of treasury shares (in shares) | ' | ' | -5,000,000 | 5,000,000 | ' | ' | ' | ' |
Dividends to noncontrolling interests | -7 | ' | ' | ' | ' | ' | ' | -7 |
Balance at Sep. 30, 2011 | 7,484 | 7,474 | 593 | -1,235 | 7,604 | 84 | 428 | 10 |
Balance (in shares) at Sep. 30, 2011 | ' | ' | 463,000,000 | -39,000,000 | ' | ' | ' | ' |
Increase (Decrease) in Equity: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,115 | 1,112 | ' | ' | ' | 1,112 | ' | 3 |
Other comprehensive income (loss) | -199 | -199 | ' | ' | ' | ' | -199 | ' |
Share-based compensation expense | 70 | 70 | ' | ' | 70 | ' | ' | ' |
Dividends and distributions approved | -356 | -356 | -389 | 33 | ' | ' | ' | ' |
Exercise of share options | 60 | 60 | ' | 60 | ' | ' | ' | ' |
Exercise of share options (in shares) | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Restricted share award vestings and other activity | 4 | 4 | ' | 51 | -47 | ' | ' | ' |
Restricted share award vestings and other activity (in shares) | ' | ' | ' | 3,000,000 | ' | ' | ' | ' |
Repurchase of common shares | -194 | -194 | ' | -194 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | -6,000,000 | ' | ' | -6,000,000 | ' | ' | ' | ' |
Cancellation of treasury shares | ' | ' | -11 | 801 | -790 | ' | ' | ' |
Cancellation of treasury shares (in shares) | ' | ' | -24,000,000 | 24,000,000 | ' | ' | ' | ' |
Dividends to noncontrolling interests | -7 | ' | ' | ' | ' | ' | ' | -7 |
Balance at Sep. 28, 2012 | 7,977 | 7,971 | 193 | -484 | 6,837 | 1,196 | 229 | 6 |
Balance (in shares) at Sep. 28, 2012 | ' | ' | 439,000,000 | -16,000,000 | ' | ' | ' | ' |
Increase (Decrease) in Equity: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,277 | 1,276 | ' | ' | ' | 1,276 | ' | 1 |
Other comprehensive income (loss) | 74 | 74 | ' | ' | ' | ' | 74 | ' |
Share-based compensation expense | 78 | 78 | ' | ' | 78 | ' | ' | ' |
Dividends and distributions approved | -412 | -412 | ' | 1 | -413 | ' | ' | ' |
Exercise of share options | 214 | 214 | ' | 214 | ' | ' | ' | ' |
Exercise of share options (in shares) | ' | ' | ' | 6,000,000 | ' | ' | ' | ' |
Restricted share award vestings and other activity | 8 | 8 | ' | 11 | -3 | ' | ' | ' |
Restricted share award vestings and other activity (in shares) | ' | ' | ' | 3,000,000 | ' | ' | ' | ' |
Repurchase of common shares | -829 | -829 | ' | -829 | ' | ' | ' | ' |
Repurchase of common shares (in shares) | -20,000,000 | ' | ' | -20,000,000 | ' | ' | ' | ' |
Cancellation of treasury shares | ' | ' | -4 | 367 | -363 | ' | ' | ' |
Cancellation of treasury shares (in shares) | ' | ' | -10,000,000 | 10,000,000 | ' | ' | ' | ' |
Dividends to noncontrolling interests | -1 | ' | ' | ' | ' | ' | ' | -1 |
Balance at Sep. 27, 2013 | $8,386 | $8,380 | $189 | ($720) | $6,136 | $2,472 | $303 | $6 |
Balance (in shares) at Sep. 27, 2013 | ' | ' | 429,000,000 | -17,000,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net income | $1,277 | $1,115 | $1,250 |
(Income) loss from discontinued operations, net of income taxes | ' | 51 | -22 |
Income from continuing operations | 1,277 | 1,166 | 1,228 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 607 | 609 | 564 |
Non-cash restructuring charges | 84 | 1 | 9 |
Deferred income taxes | 30 | -48 | 103 |
Provision for losses on accounts receivable and inventories | 59 | 58 | 18 |
Tax sharing (income) expense | 181 | -52 | -27 |
Share-based compensation expense | 78 | 68 | 71 |
Other | 56 | 63 | -12 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ' | ' | ' |
Accounts receivable, net | -81 | 17 | 26 |
Inventories | -61 | 116 | -239 |
Inventoried costs on long-term contracts | 18 | 7 | 31 |
Prepaid expenses and other current assets | 11 | 103 | 190 |
Accounts payable | 167 | -189 | -38 |
Accrued and other current liabilities | -13 | -92 | -225 |
Income taxes | -371 | 7 | -54 |
Other | 6 | 54 | 77 |
Net cash provided by continuing operating activities | 2,048 | 1,888 | 1,722 |
Net cash provided by (used in) discontinued operating activities | -2 | 59 | 57 |
Net cash provided by operating activities | 2,046 | 1,947 | 1,779 |
Cash Flows From Investing Activities: | ' | ' | ' |
Capital expenditures | -615 | -533 | -574 |
Proceeds from sale of property, plant, and equipment | 39 | 23 | 65 |
Proceeds from sale of intangible assets | ' | ' | 68 |
Proceeds from sale of short-term investments | ' | ' | 155 |
Acquisition of businesses, net of cash acquired | -6 | -1,384 | -731 |
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 14 | 394 | ' |
Other | 23 | -9 | -8 |
Net cash used in continuing investing activities | -545 | -1,509 | -1,025 |
Net cash used in discontinued investing activities | ' | -1 | -18 |
Net cash used in investing activities | -545 | -1,510 | -1,043 |
Cash Flows From Financing Activities: | ' | ' | ' |
Net increase (decrease) in commercial paper | 50 | 300 | -100 |
Proceeds from long-term debt | ' | 748 | 249 |
Repayment of long-term debt | -715 | -642 | -565 |
Proceeds from exercise of share options | 214 | 60 | 80 |
Repurchase of common shares | -844 | -185 | -865 |
Payment of common share dividends and cash distributions to shareholders | -384 | -332 | -296 |
Other | -1 | 44 | 23 |
Net cash used in continuing financing activities | -1,680 | -7 | -1,474 |
Net cash provided by (used in) discontinued financing activities | 2 | -58 | -38 |
Net cash used in financing activities | -1,678 | -65 | -1,512 |
Effect of currency translation on cash | -9 | -1 | 5 |
Net increase (decrease) in cash and cash equivalents | -186 | 371 | -771 |
Less: net increase in cash and cash equivalents related to discontinued operations | ' | ' | -1 |
Cash and cash equivalents at beginning of fiscal year | 1,589 | 1,218 | 1,990 |
Cash and cash equivalents at end of fiscal year | 1,403 | 1,589 | 1,218 |
Supplemental Cash Flow Information: | ' | ' | ' |
Interest paid | 155 | 181 | 162 |
Income taxes paid, net of refunds | $312 | $290 | $299 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Sep. 27, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The Consolidated Financial Statements reflect the consolidated operations of TE Connectivity Ltd. and its subsidiaries and have been prepared in United States ("U.S.") Dollars in accordance with accounting principles generally accepted in the U.S. ("GAAP"). | |
Description of the Business | |
TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") is a world leader in connectivity. We design and manufacture products to connect power, data, and signal in a broad array of industries including automotive, energy, industrial, broadband communications, consumer devices, healthcare, and aerospace and defense. We help our customers solve the need for more energy efficiency, always-on communications, and ever-increasing productivity. | |
We consist of four reportable segments: | |
• | |
Transportation Solutions. The Transportation Solutions segment is a leader in electronic components, including terminals and connectors, relays, and sensors, as well as application tooling, wire and heat shrink tubing, and other custom-engineered solutions for the automotive market including the industrial and commercial vehicle and hybrid and electric vehicle markets. | |
• | |
Network Solutions. The Network Solutions segment is one of the world's largest suppliers of infrastructure components and systems for the telecommunications market and electronic components for the data communications market. Our products include connectors, fiber optics, wire and cable, racks and panels, and wireless products. We also are a leader in developing, manufacturing, installing, and maintaining some of the world's most advanced subsea fiber optic communications systems. | |
• | |
Industrial Solutions. The Industrial Solutions segment is a leading supplier of products that connect and distribute power and data, including connectors, heat shrink tubing, relays, and wire and cable, as well as custom-engineered solutions. Our products are used primarily in the industrial; aerospace, defense, and marine; and energy markets. | |
• | |
Consumer Solutions. The Consumer Solutions segment is a top supplier of electronic components, including connectors, circuit protection devices, relays, antennas, and heat shrink tubing, for the consumer devices and appliances markets. | |
Use of Estimates | |
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make 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. Significant estimates in these Consolidated Financial Statements include restructuring and other charges, assets acquired and liabilities assumed in acquisitions, allowances for doubtful accounts receivable, estimates of future cash flows and discount rates associated with asset impairments, useful lives for depreciation and amortization, loss contingencies, net realizable value of inventories, estimated contract revenue and related costs, legal contingencies, tax reserves and deferred tax asset valuation allowances, and the determination of discount and other rate assumptions for pension and postretirement employee benefit expenses. Actual results could differ materially from these estimates. | |
Fiscal Year | |
Unless otherwise indicated, references in the Consolidated Financial Statements to fiscal 2013, fiscal 2012, and fiscal 2011 are to our fiscal years ended September 27, 2013, September 28, 2012, and September 30, 2011, respectively. Our fiscal year is a "52-53 week" year ending on the last Friday of September, such that each quarterly period is 13 weeks in length. For fiscal years in which there are 53 weeks, the fourth quarter reporting period will include 14 weeks. Fiscal 2013 and 2012 were each 52 weeks in length. Fiscal 2011 was a 53 week year. | |
Reclassifications | |
We have reclassified certain items on our Consolidated Financial Statements to conform to the current year presentation. | |
Company Name Change | |
In March 2011, our shareholders approved an amendment to our articles of association to change our name from "Tyco Electronics Ltd." to "TE Connectivity Ltd." The name change was effective March 10, 2011. Our ticker symbol "TEL" on the New York Stock Exchange remained unchanged. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 27, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Principles of Consolidation | |
We consolidate entities in which we own or control more than fifty percent of the voting shares or otherwise have the ability to control through similar rights. All intercompany transactions have been eliminated. The results of companies acquired or disposed of are included on the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. | |
Revenue Recognition | |
Our revenues are generated principally from the sale of our products. Revenue from the sale of products is recognized at the time title and the risks and rewards of ownership pass to the customer. This generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured. For those items where title has not yet transferred, we have deferred the recognition of revenue. | |
Contract revenues for construction related projects, which are generated in the Network Solutions segment, are recorded primarily using the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related cost to complete. Percentage-of-completion is measured based on the ratio of actual costs incurred to total estimated costs. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the current period. Provisions for anticipated losses are made in the period in which they first become determinable. In addition, provisions for credit losses related to construction related projects are recorded as reductions of revenue in the period in which they first become determinable. | |
We generally warrant that our products will conform to our or mutually agreed to specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts or a refund or credit of the price of the defective product. We accept returned goods only when the customer makes a verified claim and we have authorized the return. Returns result primarily from defective products or shipping discrepancies. A reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of sales. | |
Additionally, certain of our long-term contracts in the Network Solutions segment have warranty obligations. Estimated warranty costs for each contract are determined based on the contract terms and technology-specific considerations. These costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting. | |
We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. A reserve for estimated returns and scrap allowances is established at the time of the sale, based on a fixed percentage of sales to distributors authorized and agreed to by us, and is recorded as a reduction of sales. | |
Other allowances include customer quantity and price discrepancies. A reserve for other allowances is generally established at the time of sale based on historical experience and is recorded as a reduction of sales. We believe we can reasonably and reliably estimate the amounts of future allowances. | |
Cash and Cash Equivalents | |
All highly liquid investments with maturities of three months or less from the time of purchase are considered to be cash equivalents. | |
Allowance for Doubtful Accounts | |
The allowance for doubtful accounts receivable reflects the best estimate of probable losses inherent in our outstanding receivables after consideration of aging, known troubled accounts, and other currently available information. | |
Inventories | |
Inventories are recorded at the lower of cost or market value using the first-in, first-out cost method, except for inventoried costs incurred in the performance of long-term contracts primarily by the Network Solutions segment. | |
Property, Plant, and Equipment, Net and Long-Lived Assets | |
Property, plant, and equipment is recorded at cost less accumulated depreciation. Maintenance and repair expenditures are charged to expense when incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are 10 to 20 years for land improvements, 5 to 40 years for buildings and improvements, and 1 to 15 years for machinery and equipment. | |
We periodically evaluate, when events and circumstances warrant, the net realizable value of long-lived assets, including property, plant, and equipment and amortizable intangible assets, relying on a number of factors including operating results, business plans, economic projections, and anticipated future cash flows. When indicators of potential impairment are present, the carrying values of the asset group are evaluated in relation to the operating performance and estimated future undiscounted cash flows of the underlying asset group. Impairment of the carrying value of an asset group is recognized whenever anticipated future undiscounted cash flows from an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk. | |
Goodwill and Other Intangible Assets | |
Acquired intangible assets include both indeterminable-lived residual goodwill and determinable-lived identifiable intangible assets. Intangible assets with a determinable life include primarily intellectual property, consisting of patents, trademarks, and unpatented technology, as well as customer relationships. Estimates of recoverability range from 1 to 50 years and are generally amortized on a straight-line basis. See Note 9 for additional information regarding intangible assets. An evaluation of the remaining useful life of determinable-lived intangible assets is performed on a periodic basis and when events and circumstances warrant an evaluation. We assess determinable-lived intangible assets for impairment consistent with our policy for assessing other long-lived assets for impairment. Goodwill is assessed for impairment separately from determinable-lived intangible assets by comparing the carrying value of each reporting unit to its fair value on the first day of the fourth fiscal quarter of each year or whenever we believe a triggering event requiring a more frequent assessment has occurred. In assessing the existence of a triggering event, management relies on a number of reporting-unit-specific factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and market place data. There are inherent uncertainties related to these factors and management's judgment in applying these factors to the goodwill impairment analysis. | |
At fiscal year end 2013, we had eight reporting units, seven of which contained goodwill. There is one reporting unit in the Transportation Solutions segment, three reporting units in the Network Solutions segment, and two reporting units in both the Industrial Solutions and Consumer Solutions segments. See Note 8 for information regarding goodwill impairment testing. When changes occur in the composition of one or more reporting units, goodwill is reassigned to the reporting units affected based on their relative fair values. | |
When testing for goodwill impairment, we perform a step I goodwill impairment test to identify a potential impairment. In doing so, we compare the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, goodwill may be impaired and a step II goodwill impairment test is performed to measure the amount of impairment, if any. In the step II goodwill impairment test, we compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The implied fair value of goodwill is determined in a manner consistent with how goodwill is recognized in a business combination. We allocate the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. | |
Fair value estimates used in the step I goodwill impairment tests are calculated using an income approach based on the present value of future cash flows of each reporting unit. The income approach generally has been supported by guideline analyses (a market approach). These approaches incorporate a number of assumptions including future growth rates, discount rates, income tax rates, and market activity in assessing fair value and are reporting unit specific. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. | |
Research and Development | |
Research and development expenditures are expensed when incurred and are included in research, development, and engineering expenses in our Consolidated Statements of Operations. Research and development expenses include salaries, direct costs incurred, and building and overhead expenses. The amounts expensed in fiscal 2013, 2012, and 2011 were $576 million, $595 million, and $593 million, respectively. | |
Income Taxes | |
Income taxes are computed in accordance with the provisions of Accounting Standards Codification ("ASC") 740, Income Taxes. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected on the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carryforwards using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Financial Instruments | |
Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt, and derivative financial instruments. | |
We account for derivative financial instrument contracts on our 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 currently in earnings. 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 of a cash flow hedge, including amounts excluded from the hedging relationship, are recognized currently in earnings. 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 currently in earnings. | |
We determine the fair value of our financial instruments by using methods and assumptions that are based on market conditions and risks existing at each balance sheet date. Standard market conventions are used to determine the fair value of financial instruments, including derivatives. | |
The cash flows related to derivative financial instruments are reported in the operating activities section of the Consolidated Statements of Cash Flows. | |
Our derivative financial instruments present certain market and counterparty risks. Concentration of counterparty risk is mitigated, however, as we deal 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. We are 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 September 27, 2013, we have assessed the likelihood of counterparty default as remote. We currently provide guarantees from a wholly-owned subsidiary to the counterparties to our commodity swap derivatives. The likelihood of performance on those guarantees has been assessed as remote. For all other derivative financial instruments, we are not required to provide, nor do we require counterparties to provide, collateral or other security. | |
See Note 14 for additional information regarding derivative financial instruments. | |
Fair Value Measurements | |
ASC 820, Fair Value Measurements and Disclosures, specifies a fair value hierarchy based upon the observable 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: | |
• | |
Level 1. Quoted prices in active markets for identical assets and liabilities. | |
• | |
Level 2. Quoted 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. | |
• | |
Level 3. Unobservable 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. | |
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 contracts. Fair value of these assets and liabilities is determined using quoted prices on futures exchanges (level 1). | |
• | |
Interest rate swaps and swaptions. Fair value of these assets and liabilities 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 (level 2). | |
• | |
Investment swap contracts. Fair 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 equity returns as their basis (level 2). | |
• | |
Foreign currency contracts. Fair value of these assets and liabilities is determined using the market approach. Values are based on observable market transactions of spot and forward currency rates (level 2). | |
• | |
Rabbi trust assets. Rabbi trust assets are principally comprised of equity funds that are marked to fair value based on unadjusted quoted prices in active markets (level 1) and fixed income securities that are marked to fair value based on quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2). | |
Financial instruments other than derivative instruments include cash and cash equivalents, accounts receivable, accounts payable, and long-term debt. These instruments are recorded on our Consolidated Balance Sheets at book value. For cash and cash equivalents, accounts receivable, and accounts payable, we believe book value approximates fair value due to the short-term nature of these instruments. See Note 11 for disclosure of the fair value of debt. The following is a description of the valuation methodologies used for the respective financial instruments: | |
• | |
Cash and cash equivalents. Cash and cash equivalents are valued at book value, which we consider to be equivalent to unadjusted quoted prices (level 1). | |
• | |
Accounts receivable. Accounts receivable are valued based on the net value expected to be realized. The net realizable value generally represents an observable contractual agreement (level 2). | |
• | |
Accounts payable. Accounts payable are valued based on the net value expected to be paid, generally supported by an observable contractual agreement (level 2). | |
• | |
Long-term debt. The fair value of long-term debt, including both current and non-current maturities, is derived from quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2). | |
Pension and Postretirement Benefits | |
The funded status of our defined benefit pension and postretirement benefit plans is recognized on the Consolidated Balance Sheets and is measured as the difference between the fair value of plan assets and the benefit obligation at the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which represents the actuarial present value of benefits expected to be paid upon retirement factoring in estimated future compensation levels. For the postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of cumulative company and participant contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trustee of the funds. The benefits under pension and postretirement plans are based on various factors, such as years of service and compensation. | |
Net periodic pension benefit cost is based on the utilization of the projected unit credit method of calculation and is charged to earnings on a systematic basis over the expected average remaining service lives of current participants. | |
The measurement of benefit obligations and net periodic benefit cost is based on estimates and assumptions determined by our management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age, and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates, and mortality rates. | |
Share-Based Compensation | |
We determine the fair value of share awards on the date of grant. Share options are valued using the Black-Scholes-Merton valuation model; restricted share awards and performance awards are valued using our end-of-day share price on the date of grant. That fair value is expensed ratably over the expected service period, with an allowance made for estimated forfeitures based on historical employee activity. Estimates regarding the attainment of performance criteria are periodically reviewed; the cumulative impact of a change in estimate regarding the attainment of performance criteria is recorded in the period in which that change is made. See Note 22 for additional information related to share-based compensation. | |
Earnings Per Share | |
Basic earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the basic weighted-average number of common shares outstanding. Diluted earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the weighted-average number of common shares outstanding adjusted for the potentially dilutive impact of share-based compensation arrangements. | |
Currency Translation | |
For our non-U.S. Dollar functional currency subsidiaries, assets and liabilities are translated into U.S. Dollars using fiscal year end exchange rates. Sales and expenses are translated at average monthly exchange rates. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income within equity. | |
Gains and losses resulting from foreign currency transactions, which are included in earnings, were immaterial amounts in fiscal 2013 and 2011. Such gains were $18 million during fiscal 2012. | |
Restructuring Charges | |
Restructuring activities involve employee-related termination costs, facility exit costs, and asset impairments resulting from reductions-in-force, migration of facilities or product lines from higher-cost to lower-cost countries, or consolidation of facilities within countries. We recognize termination costs based on requirements established per severance policy, government law, or previous actions. Facility exit costs generally reflect the cost to terminate a facility lease before the end of its term (measured at fair value at the time we cease using the facility) or costs that will continue to be incurred under the facility lease without future economic benefit to us. Restructuring activities often result in the disposal or abandonment of assets that require an acceleration of depreciation or impairment reflecting the excess of the assets' carrying values over fair value. | |
The recognition of restructuring costs require that we make certain judgments and estimates regarding the nature, timing, and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimated liabilities, requiring the recognition of additional restructuring costs or the reduction of liabilities already recognized. At the end of each reporting period, we evaluate the remaining accrued balances to ensure these balances are properly stated and the utilization of the reserves are for their intended purpose in accordance with developed exit plans. See Note 3 for additional information on restructuring activities. | |
Acquisitions | |
We account for acquired businesses using the acquisition method of accounting. This method requires, among other things, that most assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. We allocate the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values, or as required by ASC 805, Business Combinations. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. We may engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. | |
Contingent Liabilities | |
We record a loss contingency when the available information indicates it is probable that we have incurred a liability and the amount of the loss is reasonably estimable. When a range of possible losses with equal likelihood exists, we record the low end of the range. The likelihood of a loss with respect to a particular contingency is often difficult to predict, and determining a meaningful estimate of the loss or a range of loss may not be practicable based on information available. In addition, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must continuously be evaluated to determine whether a loss is probable and a reasonable estimate of that loss can be made. When a loss is probable but a reasonable estimate cannot be made, or when a loss is at least reasonably possible, disclosure is provided. | |
Restructuring_and_Other_Charge
Restructuring and Other Charges, Net | 12 Months Ended | ||||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||||||||
3. Restructuring and Other Charges, Net | |||||||||||||||||||||||
Restructuring and other charges consisted of the following: | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Restructuring charges, net | $ | 314 | $ | 128 | $ | 136 | |||||||||||||||||
Gain on divestitures, net | (3 | ) | — | — | |||||||||||||||||||
$ | 311 | $ | 128 | $ | 136 | ||||||||||||||||||
Restructuring Charges, Net | |||||||||||||||||||||||
Net restructuring charges by segment were as follows: | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 38 | $ | 18 | $ | (13 | ) | ||||||||||||||||
Network Solutions | 129 | 59 | 90 | ||||||||||||||||||||
Industrial Solutions | 61 | 28 | 24 | ||||||||||||||||||||
Consumer Solutions | 86 | 23 | 35 | ||||||||||||||||||||
Restructuring charges, net | $ | 314 | $ | 128 | $ | 136 | |||||||||||||||||
Activity in our restructuring reserves is summarized as follows: | |||||||||||||||||||||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||||||||||
Beginning | Estimate | Payments | Items | Translation | End | ||||||||||||||||||
of Fiscal | and Other | of Fiscal | |||||||||||||||||||||
Year | Year | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fiscal 2013 Activity: | |||||||||||||||||||||||
Fiscal 2013 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 253 | $ | (8 | ) | $ | (79 | ) | $ | — | $ | 2 | $ | 168 | |||||||
Facility and other exit costs | — | 5 | — | (4 | ) | — | — | 1 | |||||||||||||||
Property, plant, and equipment | — | 58 | — | — | (58 | ) | — | — | |||||||||||||||
Total | — | 316 | (8 | ) | (83 | ) | (58 | ) | 2 | 169 | |||||||||||||
Fiscal 2012 Actions: | |||||||||||||||||||||||
Employee severance | 79 | 7 | (10 | ) | (43 | ) | — | 2 | 35 | ||||||||||||||
Facility and other exit costs | 2 | 1 | — | (3 | ) | — | — | — | |||||||||||||||
Property, plant, and equipment | — | 26 | — | — | (26 | ) | — | — | |||||||||||||||
Total | 81 | 34 | (10 | ) | (46 | ) | (26 | ) | 2 | 35 | |||||||||||||
Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 32 | — | (16 | ) | (9 | ) | — | 1 | 8 | ||||||||||||||
Facility and other exit costs | 2 | 2 | — | (2 | ) | — | — | 2 | |||||||||||||||
Total | 34 | 2 | (16 | ) | (11 | ) | — | 1 | 10 | ||||||||||||||
Pre-Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 19 | — | (5 | ) | (6 | ) | — | — | 8 | ||||||||||||||
Facility and other exit costs | 27 | 1 | — | (5 | ) | — | 1 | 24 | |||||||||||||||
Total | 46 | 1 | (5 | ) | (11 | ) | — | 1 | 32 | ||||||||||||||
Total fiscal 2013 activity | $ | 161 | $ | 353 | $ | (39 | ) | $ | (151 | ) | $ | (84 | ) | $ | 6 | $ | 246 | ||||||
Fiscal 2012 Activity: | |||||||||||||||||||||||
Fiscal 2012 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 128 | $ | (3 | ) | $ | (46 | ) | $ | — | $ | — | $ | 79 | |||||||
Facility and other exit costs | — | 3 | — | (1 | ) | — | — | 2 | |||||||||||||||
Property, plant, and equipment | — | 1 | — | — | (1 | ) | — | — | |||||||||||||||
Total | — | 132 | (3 | ) | (47 | ) | (1 | ) | — | 81 | |||||||||||||
Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 104 | 6 | (14 | ) | (61 | ) | — | (3 | ) | 32 | |||||||||||||
Facility and other exit costs | 5 | 3 | (1 | ) | (5 | ) | — | — | 2 | ||||||||||||||
Total | 109 | 9 | (15 | ) | (66 | ) | — | (3 | ) | 34 | |||||||||||||
Pre-Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 33 | 3 | (1 | ) | (15 | ) | — | (1 | ) | 19 | |||||||||||||
Facility and other exit costs | 33 | 4 | (1 | ) | (9 | ) | — | — | 27 | ||||||||||||||
Total | 66 | 7 | (2 | ) | (24 | ) | — | (1 | ) | 46 | |||||||||||||
Total fiscal 2012 activity | $ | 175 | $ | 148 | $ | (20 | ) | $ | (137 | ) | $ | (1 | ) | $ | (4 | ) | $ | 161 | |||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||||||||||
Beginning | Estimate | Payments | Items | Translation | End | ||||||||||||||||||
of Fiscal | and Other | of Fiscal | |||||||||||||||||||||
Year | Year | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fiscal 2011 Activity: | |||||||||||||||||||||||
Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 155 | $ | (3 | ) | $ | (58 | ) | $ | — | $ | 10 | $ | 104 | |||||||
Facility and other exit costs | — | 3 | — | (4 | ) | — | 6 | 5 | |||||||||||||||
Property, plant, and equipment | — | 7 | — | — | (7 | ) | — | — | |||||||||||||||
Total | — | 165 | (3 | ) | (62 | ) | (7 | ) | 16 | -1 | 109 | ||||||||||||
Pre-Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 97 | 1 | (30 | ) | (38 | ) | — | 3 | 33 | ||||||||||||||
Facility and other exit costs | 48 | 7 | (6 | ) | (17 | ) | — | 1 | 33 | ||||||||||||||
Property, plant, and equipment | — | 2 | — | — | (2 | ) | — | — | |||||||||||||||
Total | 145 | 10 | (36 | ) | (55 | ) | (2 | ) | 4 | 66 | |||||||||||||
Total fiscal 2011 activity | $ | 145 | $ | 175 | $ | (39 | ) | $ | (117 | ) | $ | (9 | ) | $ | 20 | $ | 175 | ||||||
-1 | |||||||||||||||||||||||
Reflects $16 million of ADC Telecommunications, Inc. ("ADC") liabilities assumed. | |||||||||||||||||||||||
Fiscal 2013 Actions | |||||||||||||||||||||||
During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. In connection with this program, we recorded net restructuring charges of $308 million primarily related to employee severance and benefits and fixed assets in connection with exited manufacturing sites' product lines. We expect to complete all restructuring programs commenced in fiscal 2013 by the end of fiscal 2015 and to incur total charges of approximately $355 million. Cash spending related to this program was $83 million in fiscal 2013. | |||||||||||||||||||||||
The following table summarizes expected, incurred, and remaining charges for fiscal 2013 programs by type: | |||||||||||||||||||||||
Total Expected | Charges Incurred | Remaining | |||||||||||||||||||||
Charges | Expected Charges | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 269 | $ | 245 | $ | 24 | |||||||||||||||||
Facility and other exit costs | 13 | 5 | 8 | ||||||||||||||||||||
Property, plant, and equipment | 73 | 58 | 15 | ||||||||||||||||||||
Total | $ | 355 | $ | 308 | $ | 47 | |||||||||||||||||
The following table summarizes expected, incurred, and remaining charges for fiscal 2013 programs by segment: | |||||||||||||||||||||||
Total Expected | Charges | Remaining | |||||||||||||||||||||
Charges | Incurred | Expected Charges | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 44 | $ | 37 | $ | 7 | |||||||||||||||||
Network Solutions | 132 | 111 | 21 | ||||||||||||||||||||
Industrial Solutions | 75 | 66 | 9 | ||||||||||||||||||||
Consumer Solutions | 104 | 94 | 10 | ||||||||||||||||||||
Total | $ | 355 | $ | 308 | $ | 47 | |||||||||||||||||
Fiscal 2012 Actions | |||||||||||||||||||||||
During fiscal 2012, we initiated a restructuring program to reduce headcount across all segments. Also, we initiated a restructuring program in the Transportation Solutions and Industrial Solutions segments associated with the acquisition of Deutsch Group SAS ("Deutsch"). In connection with these actions, in fiscal 2013 we recorded net restructuring charges of $24 million primarily related to a building impairment in the Network Solutions segment. In fiscal 2012, we recorded net restructuring charges of $129 million primarily related to employee severance and benefits. We do not expect to incur any additional expense related to restructuring programs commenced in fiscal 2012. Cash spending related to these plans was $46 million in fiscal 2013. | |||||||||||||||||||||||
The following table summarizes expected and incurred charges (credits) for fiscal 2012 programs by type: | |||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 122 | $ | (3 | ) | $ | 125 | ||||||||||||||||
Facility and other exit costs | 4 | 1 | 3 | ||||||||||||||||||||
Property, plant, and equipment | 27 | 26 | 1 | ||||||||||||||||||||
Total | $ | 153 | $ | 24 | $ | 129 | |||||||||||||||||
The following table summarizes expected and incurred charges (credits) for fiscal 2012 programs by segment: | |||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 30 | $ | 3 | $ | 27 | |||||||||||||||||
Network Solutions | 76 | 20 | 56 | ||||||||||||||||||||
Industrial Solutions | 29 | 3 | 26 | ||||||||||||||||||||
Consumer Solutions | 18 | (2 | ) | 20 | |||||||||||||||||||
Total | $ | 153 | $ | 24 | $ | 129 | |||||||||||||||||
Fiscal 2011 Actions | |||||||||||||||||||||||
We initiated a restructuring program during fiscal 2011 which was primarily associated with the acquisition of ADC and related headcount reductions in the Network Solutions segment. Additionally, we instituted reductions-in-force across all segments as a result of economic conditions. In connection with these actions, during fiscal 2013, 2012, and 2011, we recorded net restructuring credits of $14 million, credits of $6 million, and charges of $162 million, respectively, primarily related to employee severance and benefits. We do not expect to incur any additional expenses related to restructuring programs commenced in fiscal 2011. Cash spending related to these plans was $11 million in fiscal 2013. | |||||||||||||||||||||||
The following table summarizes expected and incurred charges (credits) for fiscal 2011 programs by type: | |||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | 2011 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 128 | $ | (16 | ) | $ | (8 | ) | $ | 152 | |||||||||||||
Facility and other exit costs | 7 | 2 | 2 | 3 | |||||||||||||||||||
Property, plant, and equipment | 7 | — | — | 7 | |||||||||||||||||||
Total | $ | 142 | $ | (14 | ) | $ | (6 | ) | $ | 162 | |||||||||||||
The following table summarizes expected and incurred charges (credits) for fiscal 2011 programs by segment: | |||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | 2011 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 2 | $ | — | $ | (6 | ) | $ | 8 | ||||||||||||||
Network Solutions | 89 | (2 | ) | 1 | 90 | ||||||||||||||||||
Industrial Solutions | 23 | (7 | ) | (2 | ) | 32 | |||||||||||||||||
Consumer Solutions | 28 | (5 | ) | 1 | 32 | ||||||||||||||||||
Total | $ | 142 | $ | (14 | ) | $ | (6 | ) | $ | 162 | |||||||||||||
Pre-Fiscal 2011 Actions | |||||||||||||||||||||||
We initiated a restructuring program during fiscal 2010 primarily related to headcount reductions in the Transportation Solutions segment. During fiscal 2009, we initiated a restructuring program primarily related to headcount reductions and manufacturing site closures across all segments in response to economic conditions and implementation of our manufacturing simplification plan. Also, we initiated a restructuring program during fiscal 2008 primarily relating to the migration of product lines to lower-cost countries and the exit of certain manufacturing operations in the Transportation Solutions and Network Solutions segments. We have completed all restructuring programs commenced in fiscal 2010, 2009, and 2008. | |||||||||||||||||||||||
In connection with these actions, during fiscal 2013, 2012, and 2011, we recorded net restructuring credits of $4 million, charges of $5 million, and credits of $26 million, respectively. The credits in fiscal 2011 related primarily to decreases in planned employee headcount reductions associated with the Industrial Solutions and Transportation Solutions segments. Cash spending related to pre-fiscal 2011 actions was $11 million in fiscal 2013. | |||||||||||||||||||||||
Total Restructuring Reserves | |||||||||||||||||||||||
Restructuring reserves included on our Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Year End | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Accrued and other current liabilities | $ | 168 | $ | 118 | |||||||||||||||||||
Other liabilities | 78 | 43 | |||||||||||||||||||||
Restructuring reserves | $ | 246 | $ | 161 | |||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Discontinued Operations | ' | ||||||||||
Discontinued Operations | ' | ||||||||||
4. Discontinued Operations | |||||||||||
During fiscal 2012, we sold our Touch Solutions business for net cash proceeds of $380 million and recognized an insignificant pre-tax gain on the transaction. The agreement includes contingent earn-out provisions through 2015 based on business performance. In connection with the divestiture, we incurred an income tax charge of $65 million, which is included in income (loss) from discontinued operations, net of income taxes on the Consolidated Statement of Operations for fiscal 2012. This charge was primarily driven by the inability to fully realize a tax benefit associated with the write-off of goodwill at the time of the sale. | |||||||||||
During fiscal 2012, we sold our TE Professional Services business for net cash proceeds of $28 million and recognized an insignificant pre-tax gain on the transaction. Additionally, during fiscal 2012, we recorded a pre-tax impairment charge of $28 million, which is included in income (loss) from discontinued operations, net of income taxes on the Consolidated Statement of Operations, to write the carrying value of this business down to its estimated fair value less costs to sell. | |||||||||||
In December 2011, the New York Court of Claims entered judgment in our favor in the amount of $25 million, payment of which was received in fiscal 2012, in connection with our former Wireless Systems business's State of New York contract. This judgment resolved all outstanding issues between the parties in this matter. This partial recovery of a previously recognized loss, net of legal fees, is reflected in income (loss) from discontinued operations, net of income taxes on the Consolidated Statement of Operations for fiscal 2012. | |||||||||||
The following table presents net sales, pre-tax income (loss), pre-tax gain (loss) on sale, and income tax (expense) benefit from discontinued operations: | |||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Net sales from discontinued operations | $ | — | $ | 355 | $ | 534 | |||||
Pre-tax income (loss) from discontinued operations | $ | (1 | ) | $ | 19 | $ | 54 | ||||
Pre-tax gain (loss) on sale of discontinued operations | (4 | ) | 7 | (4 | ) | ||||||
Income tax (expense) benefit | 5 | (77 | ) | (28 | ) | ||||||
Income (loss) from discontinued operations, net of income taxes | $ | — | $ | (51 | ) | $ | 22 | ||||
The Touch Solutions, TE Professional Services, and Wireless Systems businesses met the discontinued operations criteria and have been included as such in all periods presented on our Consolidated Financial Statements. Prior to reclassification to discontinued operations, the Touch Solutions and TE Professional Services businesses were included in the former Communications and Industrial Solutions segment and the Network Solutions segment, respectively. The Wireless Systems business was a component of the former Wireless Systems segment. | |||||||||||
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Acquisitions | ' | |||||||
Acquisitions | ' | |||||||
5. Acquisitions | ||||||||
Fiscal 2012 Acquisition | ||||||||
On April 3, 2012, we acquired 100% of the outstanding shares of Deutsch Group SAS ("Deutsch"). The total value paid for the transaction amounted to €1.55 billion (approximately $2.05 billion using an exchange rate of $1.33 per €1.00), net of cash acquired. The total value paid included $659 million related to the repayment of Deutsch's financial debt and accrued interest. Deutsch is a global leader in high-performance connectors for harsh environments, and significantly expands our product portfolio and enables us to better serve customers in the industrial and commercial transportation; aerospace, defense, and marine; and rail markets. We realized cost savings and other synergies through operational efficiencies. The acquired Deutsch businesses have been reported in the Transportation Solutions and Industrial Solutions segments from the date of acquisition. | ||||||||
During fiscal 2012, we finalized the valuation of the identifiable assets acquired and liabilities assumed. The following table summarizes the allocation of the purchase price to the fair value of identifiable assets acquired and liabilities assumed at the date of acquisition, in accordance with the acquisition method of accounting: | ||||||||
(in millions) | ||||||||
Cash and cash equivalents | $ | 152 | ||||||
Other current assets | 330 | |||||||
Property, plant, and equipment | 131 | |||||||
Goodwill | 1,042 | |||||||
Intangible assets | 827 | |||||||
Other long-term assets | 11 | |||||||
Total assets acquired | 2,493 | |||||||
Current maturities of long-term debt | 642 | |||||||
Other current liabilities | 143 | |||||||
Deferred income taxes | 148 | |||||||
Other long-term liabilities | 24 | |||||||
Total liabilities assumed | 957 | |||||||
Net assets acquired | 1,536 | |||||||
Cash and cash equivalents acquired | (152 | ) | ||||||
Net cash paid | $ | 1,384 | ||||||
Other current assets primarily consisted of inventories of $189 million and trade accounts receivable of $121 million. Other current liabilities primarily consisted of accrued and other current liabilities of $76 million and trade accounts payable of $56 million. | ||||||||
The fair values assigned to intangible assets were determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. Both valuation methods rely on management judgment, including expected future cash flows resulting from existing customer relationships, customer attrition rates, contributory effects of other assets utilized in the business, peer group cost of capital and royalty rates, and other factors. The valuation of tangible assets was derived using a combination of the income, market, and cost approaches. Significant judgments used in valuing tangible assets include estimated reproduction or replacement cost, useful lives of assets, estimated selling prices, costs to complete, and reasonable profit. Useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. | ||||||||
Intangible assets acquired consisted of the following: | ||||||||
Amount | Weighted-Average | |||||||
Amortization | ||||||||
Period | ||||||||
(in millions) | (in years) | |||||||
Customer relationships | $ | 490 | 15 | |||||
Developed technology | 165 | 12 | ||||||
Trade names and trademarks | 150 | 20 | ||||||
Customer order backlog | 22 | < 1 | ||||||
Total | $ | 827 | 15 | |||||
The acquired intangible assets are being amortized on a straight-line basis over their expected lives. | ||||||||
Goodwill of $1,042 million was recognized in the transaction, representing the excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed. This goodwill is attributable primarily to cost savings and other synergies related to operational efficiencies including the consolidation of manufacturing, marketing, and general and administrative functions. The goodwill has been allocated to the Transportation Solutions and Industrial Solutions segments and is not deductible for tax purposes. However, prior to its merger with us, Deutsch completed certain acquisitions that resulted in approximately $215 million of goodwill that is deductible primarily for U.S. tax purposes, which we will deduct through 2025. | ||||||||
During fiscal 2012, Deutsch contributed net sales of $327 million and an operating loss of $54 million to our Consolidated Statement of Operations. The operating loss included charges of $75 million associated with the amortization of acquisition-related fair value adjustments primarily related to acquired inventories and customer order backlog, acquisition costs of $21 million, restructuring charges of $14 million, and integration costs of $6 million. | ||||||||
Fiscal 2011 Acquisition | ||||||||
In July 2010, we entered into an Agreement and Plan of Merger (the "Merger Agreement") to acquire 100% of the outstanding stock of ADC Telecommunications, Inc. ("ADC"), a provider of broadband communications network connectivity products and related solutions. Pursuant to the Merger Agreement, we commenced a tender offer through a subsidiary to purchase all of the issued and outstanding shares of ADC common stock at a purchase price of $12.75 per share in cash followed by a merger of the subsidiary with and into ADC, with ADC surviving as an indirect wholly-owned subsidiary. On December 8, 2010, we acquired 86.8% of the outstanding common shares of ADC. On December 9, 2010, we exercised our option under the Merger Agreement to purchase additional shares from ADC that, when combined with the shares purchased in the tender offer, were sufficient to give us ownership of more than 90% of the outstanding ADC common shares. On December 9, 2010, upon effecting a short-form merger under Minnesota law, we owned 100% of the outstanding shares of ADC for a total purchase price of approximately $1,263 million in cash (excluding cash acquired of $546 million) and $22 million representing the fair value of ADC share-based awards exchanged for TE Connectivity share options and stock appreciation rights. | ||||||||
Based on the terms and conditions of ADC's share option and stock appreciation right ("SAR") awards (the "ADC Awards"), all ADC Awards became exercisable upon completion of the acquisition. Each outstanding ADC Award was exchanged for approximately 0.4 TE Connectivity share options or SARs and resulted in approximately 3 million TE Connectivity share options being issued with a weighted-average exercise price of $38.88. Issued SARs and the associated liability were insignificant. The fair value associated with the exchange of ADC Awards for TE Connectivity awards was approximately $24 million based on Black-Scholes-Merton pricing valuation model, of which $22 million was recorded as consideration given in the acquisition, and the remaining $2 million was recorded as acquisition and integration costs on the Consolidated Statement of Operations during fiscal 2011. | ||||||||
The acquisition was made to accelerate our growth potential in the global broadband connectivity market. We realized cost savings and other synergies through operational efficiencies. The acquired ADC businesses have been included in the Network Solutions segment from the date of acquisition. | ||||||||
We completed the valuation of the identifiable assets acquired and liabilities assumed during fiscal 2011. The following table summarizes the allocation of the purchase price to the fair value of identifiable assets acquired and liabilities assumed at the date of acquisition, in accordance with the acquisition method of accounting: | ||||||||
(in millions) | ||||||||
Cash and cash equivalents | $ | 546 | ||||||
Short-term investments | 155 | |||||||
Other current assets | 540 | |||||||
Property, plant, and equipment | 198 | |||||||
Goodwill | 366 | |||||||
Intangible assets | 308 | |||||||
Deferred income taxes | 164 | |||||||
Other long-term assets | 18 | |||||||
Total assets acquired | 2,295 | |||||||
Current maturities of long-term debt | 653 | |||||||
Other current liabilities | 260 | |||||||
Long-term pension liabilities | 74 | |||||||
Other long-term liabilities | 19 | |||||||
Total liabilities assumed | 1,006 | |||||||
Net assets acquired | 1,289 | |||||||
Amounts attributable to noncontrolling interests | (4 | ) | ||||||
Conversion of ADC Awards to TE Connectivity share awards | (22 | ) | ||||||
Cash and cash equivalents acquired | (546 | ) | ||||||
Net cash paid | $ | 717 | ||||||
Other current assets included trade accounts receivable of $171 million, inventories of $166 million, and deferred income taxes of $16 million. Other current assets also included assets held for sale of $109 million. Those assets were sold for net proceeds of $111 million, of which approximately $106 million was received prior to September 30, 2011. Other current liabilities assumed include accrued and other current liabilities of $165 million and trade accounts payable of $88 million. | ||||||||
The fair values assigned to intangible assets were determined through the use of the income approach, specifically the relief from royalty, multi-period excess earnings, and avoided cost methods. The valuation of tangible assets was derived using a combination of the income, market, and cost approaches. Useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that were expected to contribute directly or indirectly to future cash flows. | ||||||||
Intangible assets acquired consisted of the following: | ||||||||
Amount | Weighted-Average | |||||||
Amortization | ||||||||
Period | ||||||||
(in millions) | (in years) | |||||||
Customer relationships | $ | 175 | 11 | |||||
Developed technology and patents | 118 | 12 | ||||||
Customer order backlog | 11 | < 1 | ||||||
Trade names and trademarks | 4 | 1 | ||||||
Total | $ | 308 | 11 | |||||
The acquired intangible assets are being amortized on a straight-line basis over their expected lives. | ||||||||
The $366 million of goodwill is attributable to the excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed. The goodwill recognized is attributable primarily to cost savings and other synergies related to operational efficiencies including the consolidation of manufacturing, marketing, and general and administrative functions. All of the goodwill has been allocated to the Network Solutions segment and is not deductible for tax purposes. However, prior to its merger with us, ADC completed certain acquisitions that resulted in approximately $346 million of goodwill that is deductible for U.S. tax purposes, which we will deduct through 2021. These future tax deductions have been considered in our valuation allowance assessment of the realization of the ADC U.S. federal and U.S. state tax loss and credit carryforwards. | ||||||||
During fiscal 2011, ADC contributed net sales of $843 million and an operating loss of $53 million to our Consolidated Statement of Operations. The operating loss included restructuring charges of $80 million, charges of $39 million associated with the amortization of acquisition-related fair value adjustments primarily related to acquired inventories and customer order backlog, integration costs of $10 million, and acquisition costs of $9 million. | ||||||||
Pro Forma Financial Information | ||||||||
The following unaudited pro forma financial information reflects our consolidated results of operations had the Deutsch and ADC acquisitions occurred at the beginning of the preceding fiscal years: | ||||||||
Fiscal | ||||||||
2012 | 2011 | |||||||
(in millions, except | ||||||||
per share data) | ||||||||
Net sales | $ | 13,625 | $ | 14,612 | ||||
Net income attributable to TE Connectivity Ltd. | 1,194 | 1,228 | ||||||
Diluted earnings per share attributable to TE Connectivity Ltd. | $ | 2.78 | $ | 2.77 | ||||
The pro forma financial information is based on our final allocation of the purchase price of the acquisitions. The significant pro forma adjustments, which are described below, are net of income tax expense (benefit) at the statutory rate. | ||||||||
Pro forma results for fiscal 2012 were adjusted to exclude $30 million of charges related to the fair value adjustment to acquisition-date inventories, $29 million of interest expense based on pro forma changes in our capital structure, $20 million of income tax expense based on the estimated impact of combining Deutsch into our global tax position, $14 million of charges related to acquired customer order backlog, $13 million of acquisition costs, $4 million of charges related to other acquisition-related adjustments, $2 million of share-based compensation expense incurred by Deutsch as a result of the change in control of Deutsch, and $2 million of charges related to depreciation expense. In addition, pro forma results for fiscal 2012 were adjusted to include $10 million of charges related to the amortization of the fair value of acquired intangible assets. | ||||||||
Pro forma results for fiscal 2011 were adjusted to exclude $39 million of interest expense based on pro forma changes in our capital structure, $20 million of income tax expense based on the estimated impact of combining Deutsch into our global tax position, $15 million of share-based compensation expense incurred by ADC as a result of the change in control of ADC, $13 million of acquisition costs, and $5 million of charges related to depreciation expense. In addition, pro forma results for fiscal 2011 were adjusted to include $20 million of charges related to the amortization of the fair value of acquired intangible assets, $15 million of charges related to the fair value adjustment to acquisition-date inventories, $7 million of charges related to acquired customer order backlog, and $4 million of charges related to other acquisition-related adjustments. | ||||||||
Pro forma results do not include any synergies. Accordingly, the unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Deutsch and ADC acquisitions occurred at the beginning of the preceding fiscal years. | ||||||||
Inventories
Inventories | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
6. Inventories | ||||||||
Inventories consisted of the following: | ||||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Raw materials | $ | 258 | $ | 282 | ||||
Work in progress | 597 | 573 | ||||||
Finished goods | 870 | 896 | ||||||
Inventoried costs on long-term contracts | 37 | 57 | ||||||
Inventories | $ | 1,762 | $ | 1,808 | ||||
Property_Plant_and_Equipment_N
Property, Plant, and Equipment, Net | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Property, Plant, and Equipment, Net | ' | |||||||
Property, Plant, and Equipment, Net | ' | |||||||
7. Property, Plant, and Equipment, Net | ||||||||
Net property, plant, and equipment consisted of the following: | ||||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land and improvements | $ | 251 | $ | 266 | ||||
Buildings and improvements | 1,503 | 1,470 | ||||||
Machinery and equipment | 7,280 | 7,103 | ||||||
Construction in process | 485 | 462 | ||||||
Gross property, plant, and equipment | 9,519 | 9,301 | ||||||
Accumulated depreciation | (6,353 | ) | (6,088 | ) | ||||
Property, plant, and equipment, net | $ | 3,166 | $ | 3,213 | ||||
Depreciation expense was $496 million, $502 million, and $499 million in fiscal 2013, 2012, and 2011, respectively. | ||||||||
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
8. Goodwill | |||||||||||||||||
The changes in the carrying amount of goodwill by segment were as follows(1): | |||||||||||||||||
Transportation | Network | Industrial | Consumer | Total | |||||||||||||
Solutions | Solutions | Solutions | Solutions | ||||||||||||||
(in millions) | |||||||||||||||||
September 30, 2011(2) | $ | 62 | $ | 989 | $ | 1,574 | $ | 663 | $ | 3,288 | |||||||
Acquisition | 730 | — | 312 | — | 1,042 | ||||||||||||
Currency translation | 1 | (8 | ) | (10 | ) | (5 | ) | (22 | ) | ||||||||
September 28, 2012(2) | 793 | 981 | 1,876 | 658 | 4,308 | ||||||||||||
Currency translation and other | 4 | (4 | ) | 13 | 5 | 18 | |||||||||||
September 27, 2013(2) | $ | 797 | $ | 977 | $ | 1,889 | $ | 663 | $ | 4,326 | |||||||
-1 | |||||||||||||||||
In connection with our change in segment structure during fiscal 2013, goodwill was re-allocated to reporting units using a relative fair value approach. See Note 23 for additional information regarding the change in our segment structure. | |||||||||||||||||
-2 | |||||||||||||||||
At fiscal year end 2013, 2012, and 2011, accumulated impairment losses for the Transportation Solutions, Network Solutions, Industrial Solutions, and Consumer Solutions segments were $2,191 million, $1,236 million, $641 million, and $607 million, respectively. | |||||||||||||||||
During fiscal 2012, we completed the acquisition of Deutsch and recognized $1,042 million of goodwill, which benefits the Transportation Solutions and Industrial Solutions segments. See Note 5 for additional information on the Deutsch acquisition. | |||||||||||||||||
We completed our annual goodwill impairment test in the fourth quarter of fiscal 2013 and determined that no impairment existed. | |||||||||||||||||
Intangible_Assets_Net
Intangible Assets, Net | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||
9. Intangible Assets, Net | ||||||||||||||||||||
Intangible assets consisted of the following: | ||||||||||||||||||||
Fiscal Year End | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Intellectual property | $ | 1,144 | $ | (499 | ) | $ | 645 | $ | 1,146 | $ | (439 | ) | $ | 707 | ||||||
Customer relationships | 658 | (92 | ) | 566 | 655 | (44 | ) | 611 | ||||||||||||
Other | 46 | (13 | ) | 33 | 76 | (42 | ) | 34 | ||||||||||||
Total | $ | 1,848 | $ | (604 | ) | $ | 1,244 | $ | 1,877 | $ | (525 | ) | $ | 1,352 | ||||||
Intangible asset amortization expense was $111 million, $107 million, and $65 million for fiscal 2013, 2012, and 2011, respectively. | ||||||||||||||||||||
The estimated aggregate amortization expense on intangible assets is expected to be as follows: | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Fiscal 2014 | $ | 111 | ||||||||||||||||||
Fiscal 2015 | 111 | |||||||||||||||||||
Fiscal 2016 | 111 | |||||||||||||||||||
Fiscal 2017 | 111 | |||||||||||||||||||
Fiscal 2018 | 110 | |||||||||||||||||||
Thereafter | 690 | |||||||||||||||||||
Total | $ | 1,244 | ||||||||||||||||||
Accrued_and_Other_Current_Liab
Accrued and Other Current Liabilities | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Accrued and Other Current Liabilities | ' | |||||||
Accrued and Other Current Liabilities | ' | |||||||
10. Accrued and Other Current Liabilities | ||||||||
Accrued and other current liabilities consisted of the following: | ||||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Accrued payroll and employee benefits | $ | 498 | $ | 440 | ||||
Dividends and cash distributions to shareholders payable | 206 | 178 | ||||||
Tax Sharing Agreement guarantee liabilities pursuant to ASC 460 | 185 | 14 | ||||||
Restructuring reserves | 168 | 118 | ||||||
Income taxes payable | 112 | 139 | ||||||
Deferred income taxes | 54 | 85 | ||||||
Interest payable | 51 | 72 | ||||||
Warranty liability | 21 | 31 | ||||||
Other | 467 | 499 | ||||||
Accrued and other current liabilities | $ | 1,762 | $ | 1,576 | ||||
Debt
Debt | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
11. Debt | ||||||||
Debt was as follows: | ||||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Current maturities of long-term debt: | ||||||||
6.00% senior notes due 2012 | $ | — | $ | 714 | ||||
5.95% senior notes due 2014 | 300 | — | ||||||
Commercial paper, at a weighted-average interest rate of 0.28% | 350 | 300 | ||||||
and 0.40%, respectively | ||||||||
Other | 61 | 1 | ||||||
Total | 711 | 1,015 | ||||||
Long-term debt: | ||||||||
5.95% senior notes due 2014 | — | 300 | ||||||
1.60% senior notes due 2015 | 250 | 250 | ||||||
6.55% senior notes due 2017 | 727 | 732 | ||||||
4.875% senior notes due 2021 | 263 | 274 | ||||||
3.50% senior notes due 2022 | 498 | 498 | ||||||
7.125% senior notes due 2037 | 475 | 475 | ||||||
3.50% convertible subordinated notes due 2015 | 89 | 90 | ||||||
Other | 1 | 77 | ||||||
Total | 2,303 | 2,696 | ||||||
Total debt(1) | $ | 3,014 | $ | 3,711 | ||||
-1 | ||||||||
Senior notes are presented at face amount and, if applicable, are net of unamortized discount and the effects of interest rate swaps designated as fair value hedges. | ||||||||
Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, has a five-year unsecured senior revolving credit facility ("Credit Facility") with total commitments of $1,500 million. The Credit Facility was amended in August 2013 primarily to extend the maturity date from June 2016 to August 2018 and reduce borrowing costs. TEGSA had no borrowings under the Credit Facility at September 27, 2013 and September 28, 2012. | ||||||||
Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the option of TEGSA, (1) the London interbank offered rate ("LIBOR") plus an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA, or (2) an alternate base rate equal to the highest of (i) Deutsche Bank AG New York branch's base rate, (ii) the federal funds effective rate plus 1/2 of 1%, and (iii) one-month LIBOR plus 1%, plus, in each case, an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA. TEGSA is required to pay an annual facility fee ranging from 7.5 to 25.0 basis points based upon the amount of the lenders' commitments under the Credit Facility and the applicable credit ratings of TEGSA. | ||||||||
The Credit Facility contains a financial ratio covenant providing that if, as of the last day of each fiscal quarter, our 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 3.75 to 1.0, an Event of Default (as defined in the Credit Facility) is triggered. The Credit Facility and our other debt agreements contain other customary covenants. | ||||||||
Periodically, TEGSA issues commercial paper to U.S. institutional accredited investors and qualified institutional buyers in accordance with available exemptions from the registration requirements of the Securities Act of 1933 as part of our ongoing effort to maintain financial flexibility and to potentially decrease the cost of borrowings. Borrowings under the commercial paper program are backed by the Credit Facility. | ||||||||
TEGSA's payment obligations under its senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. Neither TE Connectivity Ltd. nor any of its subsidiaries provides a guarantee as to payment obligations under the 3.50% convertible subordinated notes due 2015 issued by ADC prior to its acquisition in December 2010. | ||||||||
The aggregate amounts of total debt maturing are as follows: | ||||||||
(in millions) | ||||||||
Fiscal 2014 | $ | 711 | ||||||
Fiscal 2015 | 339 | |||||||
Fiscal 2016 | — | |||||||
Fiscal 2017 | — | |||||||
Fiscal 2018 | 727 | |||||||
Thereafter | 1,237 | |||||||
Total | $ | 3,014 | ||||||
The fair value of our debt, based on indicative valuations, was approximately $3,180 million and $4,034 million at fiscal year end 2013 and 2012, respectively. | ||||||||
See Note 25 for information regarding TEGSA's redemption of its 5.95% senior notes due 2014. | ||||||||
Guarantees
Guarantees | 12 Months Ended |
Sep. 27, 2013 | |
Guarantees | ' |
Guarantees | ' |
12. Guarantees | |
Tax Sharing Agreement | |
Effective June 29, 2007, we became the parent company of the former electronics businesses of Tyco International Ltd. ("Tyco International"). On June 29, 2007, Tyco International distributed all of our shares, as well as its shares of its former healthcare businesses ("Covidien"), to its common shareholders (the "separation"). | |
Upon separation, we entered into a Tax Sharing Agreement, under which we share responsibility for certain of our, Tyco International's, and Covidien's income tax liabilities based on a sharing formula for periods prior to and including June 29, 2007. We, Tyco International, and Covidien share 31%, 27%, and 42%, respectively, of U.S. income tax liabilities that arise from adjustments made by tax authorities to our, Tyco International's, and Covidien's U.S. income tax returns. The effect of the Tax Sharing Agreement is to indemnify us for 69% of certain liabilities settled in cash by us with respect to unresolved pre-separation tax matters. Pursuant to that indemnification, we have 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. All costs and expenses associated with the management of these shared tax liabilities are shared equally among the parties. We are responsible for all of our own taxes that are not shared pursuant to the Tax Sharing Agreement's sharing formula. In addition, Tyco International and Covidien are responsible for their tax liabilities that are not subject to the Tax Sharing Agreement's sharing formula. | |
All of the tax liabilities that are associated with our businesses, including liabilities that arose prior to our separation from Tyco International, became our tax liabilities. Although we have agreed to share certain of these tax liabilities with Tyco International and Covidien pursuant to the Tax Sharing Agreement, we remain primarily liable for all of these liabilities. If Tyco International and Covidien default on their obligations to us under the Tax Sharing Agreement, we would be liable for the entire amount of these liabilities. | |
If any party to the Tax Sharing Agreement were to default in its obligation to another party to pay its share of the distribution taxes that arise as a result of no party's fault, each non-defaulting party would be required to pay, equally with any other non-defaulting party, the amounts in default. In addition, if another party to the Tax Sharing Agreement that is responsible for all or a portion of an income tax liability were to default in its payment of such liability to a taxing authority, we could be legally liable under applicable tax law for such liabilities and required to make additional tax payments. Accordingly, under certain circumstances, we may be obligated to pay amounts in excess of our agreed-upon share of our, Tyco International's, and Covidien's tax liabilities. | |
Indemnification | |
Our indemnification created under the Tax Sharing Agreement qualifies as a guarantee of a third party entity's debt under ASC 460, Guarantees. ASC 460 addresses the measurement and disclosure of a guarantor's obligation to pay a debt incurred by a third party. To value the initial guarantee obligation, we considered a range of probability-weighted future cash flows that represented the likelihood of payment of each class of liability by each of the three post-separation companies. The expected cash flows incorporated interest and penalties that the companies believed would be incurred on each class of liabilities and were discounted to the present value to reflect the value associated with each at separation. The calculation of the guarantee liability also included a premium that reflected the cost for an insurance carrier to stand in and assume the payment obligation at the separation date. | |
At inception of the guarantee, based on the probability-weighted future cash flows related to unresolved tax matters, we, under the Tax Sharing Agreement, faced a maximum potential liability of $3 billion, based on undiscounted estimates and interest and penalties used to determine the fair value of the guarantee and an assumption of 100% default on the parts of Tyco International and Covidien, a likelihood that management believes to be remote. In the event that we are required, due to bankruptcy or other business interruption on the part of Tyco International or Covidien, to pay more than the contractually determined 31%, we retain the right to seek payment from the effected entity. | |
At September 27, 2013, we had a liability representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement of $223 million of which $185 million was reflected in accrued and other current liabilities and $38 million was reflected in other liabilities on the Consolidated Balance Sheet. At September 28, 2012, the liability was $241 million and consisted of $14 million in accrued and other current liabilities and $227 million in other liabilities. The amount reflected in accrued and other current liabilities is our estimated cash obligation under the Tax Sharing Agreement to Tyco International and Covidien in connection with pre-separation tax matters that could be resolved within the next twelve months. | |
We have 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 that $223 million is sufficient to satisfy these expected obligations. | |
Other Matters | |
In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to 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. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows. | |
At September 27, 2013, we had outstanding letters of credit and letters of guarantee in the amount of $376 million. | |
In the normal course of business, we are liable for contract completion and product performance. In the opinion of management, such obligations will not significantly affect our results of operations, financial position, or cash flows. | |
We generally record estimated product warranty costs when contract revenues are recognized under the percentage-of-completion method for construction related contracts and at the time of sale for products. The estimation is primarily based on historical experience and actual warranty claims. Amounts accrued for warranty claims at fiscal year end 2013 and 2012 were $38 million and $48 million, respectively. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Sep. 27, 2013 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
13. Commitments and Contingencies | |||||
General Matters | |||||
We have facility, land, vehicle, and equipment leases that expire at various dates. Rental expense under these leases was $154 million, $160 million, and $158 million for fiscal 2013, 2012, and 2011, respectively. At fiscal year end 2013, the minimum lease payment obligations under non-cancelable lease obligations were as follows: | |||||
(in millions) | |||||
Fiscal 2014 | $ | 125 | |||
Fiscal 2015 | 96 | ||||
Fiscal 2016 | 58 | ||||
Fiscal 2017 | 41 | ||||
Fiscal 2018 | 30 | ||||
Thereafter | 70 | ||||
Total | $ | 420 | |||
Legal Proceedings | |||||
In the ordinary course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows. However, the proceedings discussed below in "Income Tax Matters" could have a material effect on our results of operations, financial position, or cash flows. | |||||
At September 27, 2013, we had a contingent purchase price commitment of $80 million related to our fiscal 2001 acquisition of Com-Net. This represents the maximum amount payable to the former shareholders of Com-Net only after the construction and installation of a communications system was completed for and approved by the State of Florida in accordance with guidelines set forth in the contract. Under the terms of the purchase and sale agreement, we do not believe we have any obligation to the sellers. However, the sellers have contested our position and initiated a lawsuit in June 2006 in the Court of Common Pleas in Allegheny County, Pennsylvania, which is in the discovery phase. A liability for this contingency has not been recorded on the Consolidated Financial Statements as we do not believe that any payment is probable at this time. | |||||
Income Tax Matters | |||||
In connection with the separation, we entered into a Tax Sharing Agreement that generally governs our, Tyco International's, and Covidien's respective rights, responsibilities, and obligations after the distribution with respect to taxes, including ordinary course of business taxes and taxes, if any, incurred as a result of any failure of the distribution of all of our shares or the shares of Covidien to qualify as a tax-free distribution for U.S. federal income tax purposes within the meaning of Section 355 of the Internal Revenue Code (the "Code") or certain internal transactions undertaken in anticipation of the spin-offs to qualify for tax-favored treatment under the Code. | |||||
Pursuant to the Tax Sharing Agreement, upon separation, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. Under the Tax Sharing Agreement, we, Tyco International, and Covidien share 31%, 27%, and 42%, respectively, of certain contingent liabilities relating to unresolved pre-separation tax matters of Tyco International. See Note 12 for additional information regarding the Tax Sharing Agreement. | |||||
Prior to separation, certain of our subsidiaries filed combined income tax returns with Tyco International. Those and other of our subsidiaries' income tax returns are periodically examined by various tax authorities. In connection with these examinations, tax authorities, including the Internal Revenue Service ("IRS"), have raised issues and proposed tax adjustments. Tyco International, as the U.S. income tax audit controlling party under the Tax Sharing Agreement, is reviewing and contesting certain of the proposed tax adjustments. Amounts related to these tax adjustments and other tax contingencies and related interest that management has assessed under the uncertain tax position provisions of ASC 740, Income Taxes, which relate specifically to our entities have been recorded on the Consolidated Financial Statements. In addition, we may be required to fund portions of Tyco International's and Covidien's tax obligations. Estimates about these guarantees have also been recognized on the Consolidated Financial Statements. See Note 12 for additional information. | |||||
During 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 and issued Revenue Agent Reports that reflected the IRS' determination of proposed tax adjustments for the 1997 through 2000 period. Additionally, the IRS proposed civil fraud penalties against Tyco International arising from alleged actions of former executives in connection with certain intercompany transfers of stock in 1998 and 1999. The penalties were asserted against a prior subsidiary of Tyco International that was distributed to us in connection with the separation. Tyco International appealed certain of the proposed adjustments for the years 1997 through 2000, and Tyco International resolved all but one of the matters associated with the proposed tax adjustments, including reaching an agreement with the IRS on the penalty adjustment in the amount of $21 million. In October 2012, the IRS issued special agreement Forms 870-AD, effectively settling its audit of all tax matters for the period 1997 through 2000, excluding one issue that remains in dispute as described below. As a result of these developments, in fiscal 2013, we recognized an income tax benefit of $331 million and other expense of $231 million pursuant to the Tax Sharing Agreement with Tyco International and Covidien. | |||||
The disputed issue involves the tax treatment of certain intercompany debt transactions. The IRS field examination asserted that certain intercompany loans originating during the period 1997 through 2000 did not constitute debt for U.S. federal income tax purposes and disallowed approximately $2.7 billion of related interest deductions recognized during the period on Tyco International's U.S. income tax returns. In addition, if the IRS is ultimately successful in asserting its claim, it is likely to disallow an additional $6.6 billion of interest deductions reflected on U.S. income tax returns in years subsequent to fiscal 2000. Tyco International contends that the intercompany financing qualified as debt for U.S. tax purposes and that the interest deductions reflected on the income tax returns are appropriate. The IRS and Tyco International were unable to resolve this matter through the IRS appeals process. On June 20, 2013, Tyco International advised us that it had received Notices of Deficiency from the IRS for certain former U.S. subsidiaries of Tyco International increasing taxable income by approximately $2.9 billion in connection with the audit of Tyco International's fiscal years 1997 through 2000. The Notices of Deficiency assert that Tyco International owes additional taxes totaling $778 million, associated penalties of $154 million, and withholding taxes of $105 million. In addition, Tyco International received Final Partnership Administrative Adjustments for certain U.S. partnerships owned by former U.S. subsidiaries with respect to which Tyco International estimates an additional tax deficiency of approximately $30 million will be asserted. The amounts asserted by the IRS exclude any applicable deficiency interest, and do not reflect any impact to subsequent period tax liabilities in the event that the IRS were to prevail on some or all of its assertions. We understand that Tyco International strongly disagrees with the IRS position and has filed petitions in the U.S. Tax Court contesting the IRS' proposed adjustments. Tyco International has advised us that it believes there are meritorious defenses for the tax filings in question and that the IRS positions with regard to these matters are inconsistent with the applicable tax laws and existing Treasury regulations. | |||||
Resolution of this matter in the U.S. Tax Court could take several years and no payments to the IRS with respect to these matters would be required until the matter is fully and finally resolved. In accordance with the terms of a tax sharing agreement, we, Tyco International, and Covidien would share 31%, 27%, and 42%, respectively, of any payments made in connection with these matters. | |||||
However, as the ultimate outcome is uncertain and if the IRS were to prevail on its assertions, our share of the assessed tax, deficiency interest, and applicable withholding taxes and penalties could have a material adverse impact on our results of operations, financial position, and cash flows. We have reviewed the Notices of Deficiency, the relevant facts surrounding the intercompany debt transactions, relevant tax regulations, and applicable case law, and we continue to believe that we are appropriately reserved for this matter. | |||||
During fiscal 2013 and 2012, we made payments of $67 million and $70 million, respectively, for tax deficiencies related to undisputed tax adjustments for the years 1997 through 2000. Concurrent with remitting these payments, during fiscal 2013 and 2012, we were reimbursed $39 million and $51 million, respectively, from Tyco International and Covidien pursuant to their indemnifications for pre-separation tax matters. | |||||
During fiscal 2011, the IRS completed its field examination of certain Tyco International income tax returns for the years 2001 through 2004, issued Revenue Agent Reports which reflect the IRS' determination of proposed tax adjustments for the 2001 through 2004 period, and issued certain notices of deficiency. As a result of the completion of fieldwork and the settlement of certain tax matters in fiscal 2011, we recognized income tax benefits of $35 million and other expense of $14 million pursuant to the Tax Sharing Agreement. Also, in fiscal 2011, we made net cash payments of $154 million related to pre-separation deficiencies. | |||||
Tyco International's income tax returns for the years 2001 through 2004 remain subject to adjustment by the IRS upon ultimate resolution of the disputed issue involving certain intercompany loans originated during the period 1997 through 2000. The IRS commenced its audit of certain Tyco International income tax returns for the years 2005 through 2007 in fiscal 2011, and it is our understanding that fieldwork for this audit period is expected to be completed in fiscal 2014. Also, during fiscal 2012, the IRS commenced its audit of our income tax returns for the years 2008 through 2010. We expect fieldwork for the 2008 through 2010 audit to conclude in fiscal 2014. Over the next twelve months, we expect to pay approximately $182 million, inclusive of related indemnification payments, in connection with pre-separation tax matters. | |||||
At September 27, 2013 and September 28, 2012, we have reflected $15 million and $71 million, respectively, of income tax liabilities related to the audits of Tyco International's and our income tax returns in accrued and other current liabilities as certain of these matters could be resolved within the next twelve months. | |||||
We believe that the amounts recorded on our Consolidated Financial Statements relating to the matters discussed above are appropriate. However, the ultimate resolution is uncertain and could result in a material impact to our results of operations, financial position, or cash flows. | |||||
Environmental Matters | |||||
We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of fiscal year end 2013, we concluded that it was probable that we would incur remedial costs in the range of $12 million to $24 million. As of fiscal year end 2013, we concluded that the best estimate within this range is $13 million, of which $3 million is included in accrued and other current liabilities and $10 million is included in other liabilities on the Consolidated Balance Sheet. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows. | |||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Financial Instruments | ' | ||||||||||||||
Financial Instruments | ' | ||||||||||||||
14. Financial Instruments | |||||||||||||||
We use derivative and non-derivative financial instruments to manage certain exposures to foreign currency, interest rate, investment, and commodity risks. | |||||||||||||||
Foreign Exchange Risks | |||||||||||||||
As part of managing the exposure to changes in foreign currency exchange rates, we utilize 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 foreign currency exchange rates on intercompany and other cash transactions. | |||||||||||||||
We expect that significantly all of the balance in accumulated other comprehensive income associated with the cash flow hedge-designated instruments addressing foreign exchange risks will be reclassified into the Consolidated Statements of Operations within the next twelve months. | |||||||||||||||
Interest Rate and Investment Risk Management | |||||||||||||||
We issue debt, as needed, to fund our operations and capital requirements. Such borrowings can result in interest rate exposure. To manage the interest rate exposure, we use interest rate swaps to convert a portion of fixed-rate debt into variable-rate debt. We use forward starting interest rate swaps and options to enter into interest rate swaps ("swaptions") to manage interest rate exposure in periods prior to the anticipated issuance of fixed-rate debt. We also utilize investment swaps to manage earnings exposure on certain non-qualified deferred compensation liabilities. | |||||||||||||||
During fiscal 2012, in conjunction with the issuance of the 1.60% senior notes due 2015 and 3.50% senior notes due 2022, we terminated forward starting interest rate swaps and swaptions designated as cash flow hedges on notional amounts of $400 million originated in fiscal 2010, for a cash payment of $24 million. The effective portion of the forward starting interest rate swaps, a loss of approximately $24 million, was recorded in accumulated other comprehensive income and is being reclassified to interest expense through January 2016. The ineffective portion of the forward starting interest rate swaps and the remaining unamortized premium of the swaptions were insignificant and were recorded in interest expense during fiscal 2012. Also during fiscal 2012 and in conjunction with the issuance of the 3.50% senior notes due 2022, we entered into, and subsequently terminated, an interest rate swap designated as a cash flow hedge on a notional amount of $300 million for a cash payment of $2 million. That cash payment was recorded in accumulated other comprehensive income and is being reclassified to interest expense through January 2022. | |||||||||||||||
During fiscal 2011, we entered into interest rate swaps designated as fair value hedges on $150 million principal amount of the 4.875% senior notes due 2021. The maturity dates of the interest rate swaps coincide with the maturity date of the notes. Under these contracts, we receive fixed amounts of interest applicable to the underlying notes and pay a floating amount based upon the three-month U.S. Dollar LIBOR. | |||||||||||||||
We utilize swaps to manage exposure related to certain of our non-qualified deferred compensation liabilities. The notional amount of the swaps was $38 million and $30 million at September 27, 2013 and September 28, 2012, respectively. The swaps act as economic hedges of changes in a portion of the liabilities. The change in value of both the swap contracts and the non-qualified deferred compensation liabilities are recorded in selling, general, and administrative expenses on the Consolidated Statements of Operations. | |||||||||||||||
Hedges of Net Investment | |||||||||||||||
We hedge our net investment in certain foreign operations using intercompany non-derivative financial instruments denominated in the same currencies. The aggregate notional value of these hedges was $2,374 million and $2,981 million at September 27, 2013 and September 28, 2012, respectively. We reclassified foreign exchange losses of $18 million, gains of $21 million, and losses of $70 million in fiscal 2013, 2012, and 2011, respectively. These amounts were recorded as currency translation, a component of accumulated other comprehensive income, offsetting foreign exchange gains or losses attributable to the translation of the net investment. See Note 21 for additional information. | |||||||||||||||
Commodity Hedges | |||||||||||||||
As part of managing the exposure to certain commodity price fluctuations, we utilize commodity swap contracts designated as cash flow hedges. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in prices of commodities used in production. | |||||||||||||||
At September 27, 2013 and September 28, 2012, our commodity hedges had notional values of $278 million and $246 million, respectively. We expect that significantly all of the balance in accumulated other comprehensive income associated with the commodity hedges will be reclassified into the Consolidated Statements of Operations within the next twelve months. | |||||||||||||||
Derivative Instrument Summary | |||||||||||||||
The fair value of our derivative instruments is summarized below: | |||||||||||||||
Fiscal Year End | |||||||||||||||
2013 | 2012 | ||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||
of Asset | of Liability | of Asset | of Liability | ||||||||||||
Positions(1) | Positions(2) | Positions(1) | Positions(2) | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign currency contracts(3) | $ | 1 | $ | 1 | $ | 2 | $ | 1 | |||||||
Interest rate swaps | 14 | — | 26 | — | |||||||||||
Commodity swap contracts(3) | 2 | 29 | 18 | 1 | |||||||||||
Total derivatives designated as hedging instruments | 17 | 30 | 46 | 2 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts(3) | — | 1 | 2 | 2 | |||||||||||
Investment swaps | 3 | — | 1 | — | |||||||||||
Total derivatives not designated as hedging instruments | 3 | 1 | 3 | 2 | |||||||||||
Total derivatives | $ | 20 | $ | 31 | $ | 49 | $ | 4 | |||||||
-1 | |||||||||||||||
All derivative instruments in asset positions that mature within one year of the balance sheet date are recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets and totaled $5 million and $19 million at September 27, 2013 and September 28, 2012, respectively. All derivative instruments in asset positions that mature more than one year from the balance sheet date are recorded in other assets on the Consolidated Balance Sheets and totaled $15 million and $30 million at September 27, 2013 and September 28, 2012, respectively. | |||||||||||||||
-2 | |||||||||||||||
All derivative instruments in liability positions that mature within one year of the balance sheet date are recorded in accrued and other current liabilities on the Consolidated Balance Sheets and totaled $29 million and $4 million at September 27, 2013 and September 28, 2012, respectively. All derivative instruments in liability positions that mature more than one year from the balance sheet date are recorded in other liabilities on the Consolidated Balance Sheets and totaled $2 million at September 27, 2013; there were no derivatives in other liabilities at September 28, 2012. | |||||||||||||||
-3 | |||||||||||||||
Contracts are presented gross without regard to any right of offset that exists. | |||||||||||||||
The effects of derivative instruments designated as fair value hedges on the Consolidated Statements of Operations were as follows: | |||||||||||||||
Gain Recognized | |||||||||||||||
Fiscal | |||||||||||||||
Derivatives Designated as Fair Value Hedges | Location | 2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||||
Interest rate swaps(1) | Interest expense | $ | 5 | $ | 7 | $ | 6 | ||||||||
-1 | |||||||||||||||
Certain interest rate swaps designated as fair value hedges were terminated in December 2008. Terminated interest rate swaps resulted in all gains presented in this table. Interest rate swaps in place at September 27, 2013 had no ineffective gain or loss recognized on the Consolidated Statements of Operations during fiscal 2013, 2012, or 2011. | |||||||||||||||
The effects of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations were as follows: | |||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified | Gain (Loss) Recognized | |||||||||||||
Recognized | from Accumulated | in Income (Ineffective | |||||||||||||
in OCI | OCI into Income | Portion and Amount | |||||||||||||
(Effective | (Effective Portion) | Excluded | |||||||||||||
Portion) | From Effectiveness Testing) | ||||||||||||||
Derivatives Designated as Cash Flow Hedges | Amount | Location | Amount | Location | Amount | ||||||||||
(in millions) | |||||||||||||||
Fiscal 2013: | |||||||||||||||
Foreign currency contracts | $ | (1 | ) | Cost of sales | $ | — | Cost of sales | $ | — | ||||||
Commodity swap contracts | (64 | ) | Cost of sales | (20 | ) | Cost of sales | — | ||||||||
Interest rate swaps(1) | — | Interest expense | (9 | ) | Interest expense | — | |||||||||
Total | $ | (65 | ) | $ | (29 | ) | $ | — | |||||||
Fiscal 2012: | |||||||||||||||
Foreign currency contracts | $ | — | Cost of sales | $ | (1 | ) | Cost of sales | $ | — | ||||||
Commodity swap contracts | 28 | Cost of sales | 10 | Cost of sales | — | ||||||||||
Interest rate swaps and swaptions(1) | (5 | ) | Interest expense | (10 | ) | Interest expense | — | ||||||||
Total | $ | 23 | $ | (1 | ) | $ | — | ||||||||
Fiscal 2011: | |||||||||||||||
Foreign currency contracts | $ | 1 | Cost of sales | $ | 5 | Cost of sales | $ | — | |||||||
Commodity swap contracts | 29 | Cost of sales | 42 | Cost of sales | — | ||||||||||
Interest rate swaps and swaptions(1) | (9 | ) | Interest expense | (5 | ) | Interest expense | (1 | ) | |||||||
Total | $ | 21 | $ | 42 | $ | (1 | ) | ||||||||
-1 | |||||||||||||||
As of fiscal year end 2013 and 2012, there were no outstanding interest rate swaps designated as cash flow hedges. During fiscal 2012, we terminated forward starting interest rate swaps and swaptions designated as cash flow hedges. Prior to the termination, the forward starting interest rate swaps generated losses of $3 million and $9 million in other comprehensive income related to the effective portions of the hedges during fiscal 2012 and 2011, respectively. Also during fiscal 2012, we entered into and terminated an interest rate swap designated as a cash flow hedge, recording a loss of $2 million in other comprehensive income. The forward starting interest rate swaps, subsequent to termination, and certain forward starting interest rate swaps designated as cash flow hedges that were terminated in September 2007 resulted in losses of $9 million, $10 million, and $5 million reflected in interest expense in fiscal 2013, 2012, and 2011, respectively. Swaptions terminated in fiscal 2012 resulted in losses of $1 million in interest expense in fiscal 2011 as a result of amounts excluded from the hedging relationship; losses in fiscal 2012 were insignificant. | |||||||||||||||
The effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations were as follows: | |||||||||||||||
Gain (Loss) Recognized | |||||||||||||||
Fiscal | |||||||||||||||
Derivatives not Designated as Hedging Instruments | Location | 2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||||
Foreign currency contracts | Selling, general, and administrative expenses | $ | (11 | ) | $ | (33 | ) | $ | 7 | ||||||
Investment swaps | Selling, general, and administrative expenses | 7 | 7 | (1 | ) | ||||||||||
Total | $ | (4 | ) | $ | (26 | ) | $ | 6 | |||||||
During fiscal 2013, 2012, and 2011, we incurred losses of $11 million, losses of $33 million, and gains of $7 million, respectively, as a result of marking foreign currency derivatives not designated as hedging instruments to fair value. The impacts of these derivatives not designated as hedging instruments, which included losses of $20 million incurred in anticipation of the acquisition of Deutsch during fiscal 2012, were offset by gains or losses realized as a result of re-measuring underlying assets and liabilities denominated in foreign currencies to primarily the Euro or U.S. Dollar. The losses incurred in connection with the acquisition of Deutsch were offset by gains realized as a result of re-measuring certain non-U.S. Dollar-denominated intercompany non-derivative financial instruments to the U.S. Dollar. | |||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Fair Value Measurements | ' | ||||||||||
Fair Value Measurements | ' | ||||||||||
15. Fair Value Measurements | |||||||||||
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 | Level 1 | Level 2 | |||||||||
(in millions) | |||||||||||
September 27, 2013: | |||||||||||
Assets: | |||||||||||
Commodity swap contracts | $ | 2 | $ | — | $ | 2 | |||||
Interest rate swaps | — | 14 | 14 | ||||||||
Investment swaps | — | 3 | 3 | ||||||||
Foreign currency contracts(1) | — | 1 | 1 | ||||||||
Rabbi trust assets | 3 | 80 | 83 | ||||||||
Total assets at fair value | $ | 5 | $ | 98 | $ | 103 | |||||
Liabilities: | |||||||||||
Commodity swap contracts | $ | 29 | $ | — | $ | 29 | |||||
Foreign currency contracts(1) | — | 2 | 2 | ||||||||
Total liabilities at fair value | $ | 29 | $ | 2 | $ | 31 | |||||
September 28, 2012: | |||||||||||
Assets: | |||||||||||
Commodity swap contracts | $ | 18 | $ | — | $ | 18 | |||||
Interest rate swaps | — | 26 | 26 | ||||||||
Investment swaps | — | 1 | 1 | ||||||||
Foreign currency contracts(1) | — | 4 | 4 | ||||||||
Rabbi trust assets | 4 | 79 | 83 | ||||||||
Total assets at fair value | $ | 22 | $ | 110 | $ | 132 | |||||
Liabilities: | |||||||||||
Commodity swap contracts | $ | 1 | $ | — | $ | 1 | |||||
Foreign currency contracts(1) | — | 3 | 3 | ||||||||
Total liabilities at fair value | $ | 1 | $ | 3 | $ | 4 | |||||
-1 | |||||||||||
Contracts are presented gross without regard to any right of offset that exists. See Note 14 for a reconciliation of amounts to the Consolidated Balance Sheets. | |||||||||||
The majority of the derivatives that we enter into are valued using over-the-counter quoted market prices for similar instruments. We do not believe that the fair values of these derivative instruments differ materially from the amounts that would be realized upon settlement or maturity. | |||||||||||
As of September 27, 2013 and September 28, 2012, we did not have significant financial assets or liabilities that were measured at fair value on a non-recurring basis. We also did not have any significant non-financial assets or liabilities that were measured at fair value as of September 27, 2013 and September 28, 2012. | |||||||||||
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||||
16. Retirement Plans | ||||||||||||||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||||||||||||||
We have a number of contributory and noncontributory defined benefit retirement plans covering certain of our U.S. and non-U.S. employees, designed in accordance with local customs and practice. | ||||||||||||||||||||||||||
The net periodic pension benefit cost for all U.S. and non-U.S. defined benefit pension plans was as follows: | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Service cost | $ | 6 | $ | 7 | $ | 7 | $ | 55 | $ | 51 | $ | 65 | ||||||||||||||
Interest cost | 46 | 51 | 52 | 70 | 76 | 88 | ||||||||||||||||||||
Expected return on plan assets | (60 | ) | (58 | ) | (63 | ) | (69 | ) | (54 | ) | (59 | ) | ||||||||||||||
Amortization of net actuarial loss | 36 | 42 | 35 | 33 | 29 | 41 | ||||||||||||||||||||
Other | — | (1 | ) | — | (18 | ) | (5 | ) | (4 | ) | ||||||||||||||||
Net periodic pension benefit cost | $ | 28 | $ | 41 | $ | 31 | $ | 71 | $ | 97 | $ | 131 | ||||||||||||||
Weighted-average assumptions used to determine net pension benefit cost during the fiscal year: | ||||||||||||||||||||||||||
Discount rate | 3.98 | % | 4.71 | % | 5.1 | % | 3.27 | % | 4.12 | % | 3.97 | % | ||||||||||||||
Expected return on plan assets | 6.65 | % | 7.1 | % | 7.45 | % | 6.31 | % | 5.43 | % | 5.37 | % | ||||||||||||||
Rate of compensation increase | — | % | 4 | % | 4 | % | 2.88 | % | 3.01 | % | 3.5 | % | ||||||||||||||
The following table represents the changes in benefit obligation and plan assets and the net amount recognized on the Consolidated Balance Sheets for all U.S. and non-U.S. defined benefit pension plans: | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||
Benefit obligation at beginning of fiscal year | $ | 1,177 | $ | 1,114 | $ | 2,206 | $ | 1,896 | ||||||||||||||||||
Service cost | 6 | 7 | 55 | 51 | ||||||||||||||||||||||
Interest cost | 46 | 51 | 70 | 76 | ||||||||||||||||||||||
Actuarial (gain) loss | (84 | ) | 69 | 48 | 248 | |||||||||||||||||||||
Benefits and administrative expenses paid | (69 | ) | (63 | ) | (98 | ) | (86 | ) | ||||||||||||||||||
New plans | — | — | — | 47 | ||||||||||||||||||||||
Currency translation | — | — | (74 | ) | (24 | ) | ||||||||||||||||||||
Other | (2 | ) | (1 | ) | (26 | ) | (2 | ) | ||||||||||||||||||
Benefit obligation at end of fiscal year | 1,074 | 1,177 | 2,181 | 2,206 | ||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||
Fair value of plan assets at beginning of fiscal year | 941 | 851 | 1,118 | 980 | ||||||||||||||||||||||
Actual return on plan assets | 58 | 152 | 131 | 101 | ||||||||||||||||||||||
Employer contributions | 2 | 1 | 94 | 95 | ||||||||||||||||||||||
Benefits and administrative expenses paid | (69 | ) | (63 | ) | (98 | ) | (86 | ) | ||||||||||||||||||
Currency translation | — | — | (62 | ) | 4 | |||||||||||||||||||||
Other | (1 | ) | — | 2 | 24 | |||||||||||||||||||||
Fair value of plan assets at end of fiscal year | 931 | 941 | 1,185 | 1,118 | ||||||||||||||||||||||
Funded status | $ | (143 | ) | $ | (236 | ) | $ | (996 | ) | $ | (1,088 | ) | ||||||||||||||
Amounts recognized on the Consolidated Balance Sheets: | ||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 3 | $ | — | ||||||||||||||||||
Accrued and other current liabilities | (3 | ) | (4 | ) | (20 | ) | (18 | ) | ||||||||||||||||||
Long-term pension and postretirement liabilities | (140 | ) | (232 | ) | (979 | ) | (1,070 | ) | ||||||||||||||||||
Net amount recognized | $ | (143 | ) | $ | (236 | ) | $ | (996 | ) | $ | (1,088 | ) | ||||||||||||||
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | ||||||||||||||||||||||||||
Discount rate | 4.84 | % | 3.98 | % | 3.38 | % | 3.31 | % | ||||||||||||||||||
Rate of compensation increase(1) | — | % | — | % | 2.86 | % | 2.88 | % | ||||||||||||||||||
-1 | ||||||||||||||||||||||||||
During fiscal 2012, the sole remaining active U.S. defined benefit pension plan was frozen to new benefit accruals. | ||||||||||||||||||||||||||
The pre-tax amounts recognized in accumulated other comprehensive income for all U.S. and non-U.S. defined benefit pension plans were as follows: | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Change in net loss: | ||||||||||||||||||||||||||
Unrecognized net loss at beginning of fiscal year | $ | 438 | $ | 504 | $ | 705 | $ | 539 | ||||||||||||||||||
Current year change recorded in accumulated other comprehensive income | (82 | ) | (24 | ) | (80 | ) | 195 | |||||||||||||||||||
Amortization reclassified to earnings | (36 | ) | (42 | ) | (33 | ) | (29 | ) | ||||||||||||||||||
Unrecognized net loss at end of fiscal year | $ | 320 | $ | 438 | $ | 592 | $ | 705 | ||||||||||||||||||
Change in prior service credit: | ||||||||||||||||||||||||||
Unrecognized prior service credit at beginning of fiscal year | $ | — | $ | — | $ | (112 | ) | $ | (120 | ) | ||||||||||||||||
Current year change recorded in accumulated other comprehensive income | — | — | 37 | (1 | ) | |||||||||||||||||||||
Amortization reclassified to earnings | — | — | 7 | 9 | ||||||||||||||||||||||
Unrecognized prior service credit at end of fiscal year | $ | — | $ | — | $ | (68 | ) | $ | (112 | ) | ||||||||||||||||
Unrecognized actuarial gains recorded in accumulated other comprehensive income for U.S. defined benefit pension plans in fiscal 2013 is principally the result of improved discount rates. Unrecognized actuarial gains recorded in accumulated other comprehensive income for non-U.S. defined benefit pension plans in fiscal 2013 are principally the result of improved asset performance and the effects of currency translation. Unrecognized actuarial losses recorded in accumulated other comprehensive income for non-U.S. defined benefit pension plans in fiscal 2012 are principally the result of declining discount rates. Amortization of prior service credit is included in other in the above table summarizing the components of net periodic pension benefit cost. | ||||||||||||||||||||||||||
The estimated amortization of actuarial losses from accumulated other comprehensive income into net periodic pension benefit cost for U.S. and non-U.S. defined benefit pension plans in fiscal 2014 is expected to be $25 million and $24 million, respectively. The estimated amortization of prior service credit from accumulated other comprehensive income into net periodic pension benefit cost for non-U.S. defined benefit pension plans in fiscal 2014 is expected to be $5 million. | ||||||||||||||||||||||||||
In determining the expected return on plan assets, we consider the relative weighting of plan assets by class and individual asset class performance expectations. | ||||||||||||||||||||||||||
The investment strategy for the U.S. pension plans is governed by our investment committee; investment strategies for non-U.S. pension plans are governed locally. Our investment strategy for our pension plans is to manage the plans on a going concern basis. Current investment policy is to achieve a reasonable return on assets, subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for participants. Projected returns are based primarily on pro forma asset allocation, expected long-term returns, and forward-looking estimates of active portfolio and investment management. | ||||||||||||||||||||||||||
During fiscal 2012, our investment committee made the decision to change the target asset allocation of the U.S. plans' master trust from a previous target of 30% equity and 70% fixed income to 10% equity and 90% fixed income in an effort to better protect the funded status of the U.S. plans' master trust. Asset reallocation will continue over a multi-year period based on the funded status, as defined by the Pension Protection Act of 2006 (the "Pension Act Funded Status"), of the U.S. plans' master trust and market conditions. We expect to reach our target allocation when the Pension Act Funded Status exceeds 100%. Based on the Pension Act Funded Status as of September 27, 2013, our target asset allocation is 45% equity and 55% fixed income. | ||||||||||||||||||||||||||
Target weighted-average asset allocation and weighted-average asset allocation for U.S. and non-U.S. pension plans were as follows: | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Target(1) | Fiscal | Fiscal | Target | Fiscal | Fiscal | |||||||||||||||||||||
Year End | Year End | Year End | Year End | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||||
Equity securities | 45 | % | 45 | % | 38 | % | 43 | % | 43 | % | 41 | % | ||||||||||||||
Debt securities | 55 | 55 | 62 | 33 | 35 | 37 | ||||||||||||||||||||
Insurance contracts and other investments | — | — | — | 22 | 20 | 20 | ||||||||||||||||||||
Real estate investments | — | — | — | 2 | 2 | 2 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
-1 | ||||||||||||||||||||||||||
Based on our Pension Act Funded Status as of September 27, 2013, equity securities of the U.S. plans' master trust cannot exceed 45%. | ||||||||||||||||||||||||||
Our common shares are not a direct investment of our pension funds; however, the pension funds may indirectly include our shares. The aggregate amount of our common shares would not be considered material relative to the total pension fund assets. | ||||||||||||||||||||||||||
Our funding policy is to make contributions in accordance with the laws and customs of the various countries in which we operate as well as to make discretionary voluntary contributions from time to time. We anticipate that, at a minimum, we will make the minimum required contributions to our pension plans in fiscal 2014 of $3 million to U.S. plans and $84 million to non-U.S. plans. | ||||||||||||||||||||||||||
Benefit payments, which reflect future expected service, as appropriate, are expected to be paid as follows: | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Fiscal 2014 | $ | 68 | $ | 86 | ||||||||||||||||||||||
Fiscal 2015 | 66 | 77 | ||||||||||||||||||||||||
Fiscal 2016 | 66 | 80 | ||||||||||||||||||||||||
Fiscal 2017 | 67 | 82 | ||||||||||||||||||||||||
Fiscal 2018 | 68 | 87 | ||||||||||||||||||||||||
Fiscal 2019-2023 | 360 | 508 | ||||||||||||||||||||||||
Set forth below is the accumulated benefit obligation for all U.S. and non-U.S. pension plans as well as additional information related to plans with an accumulated benefit obligation in excess of plan assets and plans with a projected benefit obligation in excess of plan assets. | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal Year End | Fiscal Year End | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 1,074 | $ | 1,177 | $ | 2,021 | $ | 2,004 | ||||||||||||||||||
Pension plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||
Accumulated benefit obligation | 1,074 | 1,177 | 1,930 | 1,916 | ||||||||||||||||||||||
Fair value of plan assets | 931 | 941 | 1,072 | 1,012 | ||||||||||||||||||||||
Pension plans with projected benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||
Projected benefit obligation | 1,074 | 1,177 | 2,120 | 2,206 | ||||||||||||||||||||||
Fair value of plan assets | 931 | 941 | 1,122 | 1,118 | ||||||||||||||||||||||
We value our pension assets based on the fair value hierarchy of ASC 820, Fair Value Measurements and Disclosures. Details of the fair value hierarchy are described in Note 2. The following table presents our defined benefit pension plans' asset categories and their associated fair value within the fair value hierarchy: | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
September 27, 2013(1): | ||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
U.S. equity securities(2) | $ | 237 | $ | — | $ | — | $ | 237 | $ | 57 | $ | — | $ | — | $ | 57 | ||||||||||
Non-U.S. equity securities(2) | 179 | — | — | 179 | 95 | — | — | 95 | ||||||||||||||||||
Commingled equity funds(3) | — | — | — | — | — | 362 | — | 362 | ||||||||||||||||||
Fixed income: | ||||||||||||||||||||||||||
Government bonds(4) | — | 77 | — | 77 | — | 143 | — | 143 | ||||||||||||||||||
Corporate bonds(5) | — | 413 | — | 413 | — | 119 | — | 119 | ||||||||||||||||||
Commingled bond funds(6) | — | — | — | — | — | 217 | — | 217 | ||||||||||||||||||
Other(7) | — | 14 | — | 14 | 1 | 90 | 72 | 163 | ||||||||||||||||||
Subtotal | $ | 416 | $ | 504 | $ | — | 920 | $ | 153 | $ | 931 | $ | 72 | 1,156 | ||||||||||||
Items to reconcile to fair value of plan assets(8) | 11 | 29 | ||||||||||||||||||||||||
Fair value of plan assets | $ | 931 | $ | 1,185 | ||||||||||||||||||||||
September 28, 2012(1): | ||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
U.S. equity securities(2) | $ | 176 | $ | — | $ | — | $ | 176 | $ | 52 | $ | — | $ | — | $ | 52 | ||||||||||
Non-U.S. equity securities(2) | 165 | — | — | 165 | 81 | — | — | 81 | ||||||||||||||||||
Commingled equity funds(3) | — | — | — | — | — | 287 | — | 287 | ||||||||||||||||||
Fixed income: | ||||||||||||||||||||||||||
Government bonds(4) | — | 89 | — | 89 | — | 186 | — | 186 | ||||||||||||||||||
Corporate bonds(5) | — | 488 | — | 488 | — | 123 | — | 123 | ||||||||||||||||||
Commingled bond funds(6) | — | — | — | — | — | 155 | — | 155 | ||||||||||||||||||
Other(7) | — | 14 | — | 14 | 1 | 145 | 67 | 213 | ||||||||||||||||||
Subtotal | $ | 341 | $ | 591 | $ | — | 932 | $ | 134 | $ | 896 | $ | 67 | 1,097 | ||||||||||||
Items to reconcile to fair value of plan assets(8) | 9 | 21 | ||||||||||||||||||||||||
Fair value of plan assets | $ | 941 | $ | 1,118 | ||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||
During fiscal 2013, we corrected the fiscal 2012 presentation of assets held by non-U.S. plans by reclassifying $102 million of non-U.S. securities classified as level 1 within the fair value hierarchy as of September 28, 2012 to level 2, and changed certain non-U.S. asset categorizations. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
U.S. and non-U.S. equity securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Commingled equity funds are pooled investments, including common/collective trusts, in equity-type securities. Fair value, as determined by the custodian of a fund on a net asset value ("NAV") basis, is calculated as the closing price of the underlying investments (an observable market condition) less fund liabilities, divided by the number of shares of the fund outstanding. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
Government bonds are marked to fair value based on market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves or quoted market prices from markets that are not as actively traded as equity markets. | ||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||
Corporate bonds are marked to fair value based on market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves or quoted market prices from markets that are not as actively traded as equity markets. | ||||||||||||||||||||||||||
-6 | ||||||||||||||||||||||||||
Commingled bond funds are pooled investments, including common/collective trusts, in debt-type securities. Fair value, as determined by the custodian of a fund on a NAV basis, is calculated as the closing price of the underlying investments (an observable market condition) less fund liabilities, divided by the number of shares of the fund outstanding. | ||||||||||||||||||||||||||
-7 | ||||||||||||||||||||||||||
Other investments are comprised of insurance contracts, derivatives, short-term investments, structured products such as collateralized obligations and mortgage- and asset-backed securities, real estate investments, and hedge funds. Insurance contracts are valued using cash surrender value, or face value of the contract if a cash surrender value is unavailable (level 2). These values represent the amount that the plan would receive on termination of the underlying contract. Derivatives, short-term investments, and structured products are marked to fair value using models that are supported by observable market based data (level 2). Real estate investments include investments in commingled real estate funds. The investments are valued at their net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). Hedge funds are valued at their net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). | ||||||||||||||||||||||||||
-8 | ||||||||||||||||||||||||||
Items to reconcile to fair value of plan assets include amounts receivable for securities sold, amounts payable for securities purchased, and any cash balances, considered to be carried at book value, that are held in the plans. | ||||||||||||||||||||||||||
The following table sets forth a summary of changes in the fair value of Level 3 assets contained in the non-U.S. plans: | ||||||||||||||||||||||||||
Real Estate | Hedge Funds | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 20 | $ | 34 | ||||||||||||||||||||||
Return on assets held at end of fiscal year | (1 | ) | 2 | |||||||||||||||||||||||
Purchases, sales, and settlements, net | — | 12 | ||||||||||||||||||||||||
Balance at September 28, 2012 | 19 | 48 | ||||||||||||||||||||||||
Return on assets held at end of fiscal year | (2 | ) | 4 | |||||||||||||||||||||||
Purchases, sales, and settlements, net | 3 | — | ||||||||||||||||||||||||
Balance at September 27, 2013 | $ | 20 | $ | 52 | ||||||||||||||||||||||
Defined Contribution Retirement Plans | ||||||||||||||||||||||||||
We maintain several defined contribution retirement plans, the most significant of which is located in the U.S. These plans include 401(k) matching programs, as well as qualified and nonqualified profit sharing and share bonus retirement plans. Expense for the defined contribution plans is computed as a percentage of participants' compensation and was $61 million, $61 million, and $65 million for fiscal 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||||
Deferred Compensation Plans and Rabbi Trusts | ||||||||||||||||||||||||||
We maintain nonqualified deferred compensation plans, which permit eligible employees to defer a portion of their compensation. A record keeping account is set up for each participant and the participant chooses from a variety of measurement funds for the deemed investment of their accounts. The measurement funds correspond to a number of funds in our 401(k) plans and the account balance fluctuates with the investment returns on those funds. Total deferred compensation liabilities were $99 million and $83 million at fiscal year end 2013 and 2012, respectively. See Note 14 for additional information regarding our risk management strategy related to deferred compensation liabilities. | ||||||||||||||||||||||||||
Additionally, we have established rabbi trusts, related to certain acquired companies, through which the assets may be used to pay non-qualified plan benefits. The trusts primarily hold bonds and equities. The rabbi trust assets are subject to the claims of our creditors in the event of our insolvency; plan participants are general creditors of ours with respect to these benefits. The value of the assets held by these trusts, included in other assets on the Consolidated Balance Sheets, was $83 million at each of fiscal year end 2013 and 2012. Total liabilities related to the assets held by the rabbi trust and reflected on the Consolidated Balance Sheets were $13 million and $17 million at fiscal year end 2013 and 2012, respectively, and include certain deferred compensation liabilities (referred to above), split dollar life insurance policy liabilities, and an unfunded pension plan in the U.S. Plan participants are general creditors of ours with respect to these benefits. | ||||||||||||||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||||||||||
In addition to providing pension and 401(k) benefits, we also provide certain health care coverage continuation for qualifying retirees from the date of retirement to age 65. | ||||||||||||||||||||||||||
Net periodic postretirement benefit cost was $4 million in fiscal 2013 and $3 million in each of fiscal 2012 and 2011 and consisted primarily of service and interest costs. The weighted-average assumptions used to determine net postretirement benefit cost were as follows: | ||||||||||||||||||||||||||
Fiscal | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Discount rate | 3.85 | % | 5 | % | 4.95 | % | ||||||||||||||||||||
Rate of compensation increase | 3.35 | % | 4 | % | 4 | % | ||||||||||||||||||||
The accrued postretirement benefit obligation was $39 million and $55 million at fiscal year end 2013 and 2012, respectively. The fair value of plan assets was $3 million at each of fiscal year end 2013 and 2012. The underfunded status of the postretirement benefit plans was primarily included in long-term pension and postretirement liabilities on the Consolidated Balance Sheets. The weighted-average assumptions used to determine the postretirement benefit obligation were as follows: | ||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||
End | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Discount rate | 4.85 | % | 3.85 | % | ||||||||||||||||||||||
Rate of compensation increase | 4 | % | 3.35 | % | ||||||||||||||||||||||
Unrecognized prior service costs and actuarial gains of $6 million and losses of $11 million at fiscal year end 2013 and 2012, respectively, were recorded in accumulated other comprehensive income. Amortization of these balances into net periodic postretirement benefit cost is expected to be insignificant in fiscal 2014. | ||||||||||||||||||||||||||
Our investment strategy for our postretirement benefit plans is to achieve a reasonable return on assets, subject to a prudent level of portfolio risk. The plan is invested in debt securities, which are considered level 2 in the fair value hierarchy, and equity securities, which are considered level 1 in the fair value hierarchy, and targets an allocation of 50% in each category. | ||||||||||||||||||||||||||
We anticipate that we will make insignificant contributions to our postretirement benefit plans in fiscal 2014. | ||||||||||||||||||||||||||
Benefit payments, which reflect future expected service, as appropriate, are expected to be $3 million annually from fiscal 2014 through fiscal 2018 and $13 million in total from fiscal 2019 through fiscal 2023. Health care cost trend assumptions used to determine the postretirement benefit obligation were as follows: | ||||||||||||||||||||||||||
Fiscal Year End | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Health care cost trend rate assumed for next fiscal year | 7.33 | % | 7.51 | % | ||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline | 4.5 | % | 4.5 | % | ||||||||||||||||||||||
Fiscal year the ultimate trend rate is achieved | 2029 | 2029 | ||||||||||||||||||||||||
A one-percentage point change in assumed healthcare cost trend rates would have the following effects: | ||||||||||||||||||||||||||
One Percentage | One Percentage | |||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Effect on total of service and interest cost | $ | — | $ | — | ||||||||||||||||||||||
Effect on postretirement benefit obligation | 3 | (3 | ) |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
17. Income Taxes | |||||||||||
Our operations are conducted through our various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which our operations are conducted and income and loss from operations is subject to taxation. | |||||||||||
Significant components of the income tax provision (benefit) were as follows: | |||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Current: | |||||||||||
U.S.: | |||||||||||
Federal | $ | (295 | ) | $ | 92 | $ | 50 | ||||
State | (85 | ) | 11 | 20 | |||||||
Non-U.S. | 321 | 194 | 174 | ||||||||
Current income tax provision (benefit) | (59 | ) | 297 | 244 | |||||||
Deferred: | |||||||||||
U.S.: | |||||||||||
Federal | 71 | (50 | ) | 55 | |||||||
State | (1 | ) | 4 | — | |||||||
Non-U.S. | (40 | ) | (2 | ) | 48 | ||||||
Deferred income tax provision (benefit) | 30 | (48 | ) | 103 | |||||||
Provision (benefit) for income taxes | $ | (29 | ) | $ | 249 | $ | 347 | ||||
The U.S. and non-U.S. components of income from continuing operations before income taxes were as follows: | |||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
U.S. | $ | (238 | ) | $ | (96 | ) | $ | 134 | |||
Non-U.S. | 1,486 | 1,511 | 1,441 | ||||||||
Income from continuing operations before income taxes | $ | 1,248 | $ | 1,415 | $ | 1,575 | |||||
The reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations was as follows: | |||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Notional U.S. federal income tax provision at the statutory rate | $ | 437 | $ | 495 | $ | 551 | |||||
Adjustments to reconcile to the income tax provision (benefit): | |||||||||||
U.S. state income tax provision (benefit), net | (56 | ) | 10 | 13 | |||||||
Other (income) expense—Tax Sharing Agreement | 64 | (18 | ) | (9 | ) | ||||||
Tax law changes | — | 21 | (4 | ) | |||||||
Tax credits | (11 | ) | (9 | ) | (9 | ) | |||||
Non-U.S. net earnings(1) | (277 | ) | (225 | ) | (253 | ) | |||||
Nondeductible charges | 3 | 3 | 14 | ||||||||
Change in accrued income tax liabilities | (162 | ) | 95 | 30 | |||||||
Valuation allowance | (31 | ) | (107 | ) | 1 | ||||||
Other | 4 | (16 | ) | 13 | |||||||
Provision (benefit) for income taxes | $ | (29 | ) | $ | 249 | $ | 347 | ||||
-1 | |||||||||||
Excludes nondeductible charges and other items which are broken out separately in the table. | |||||||||||
The tax benefit for fiscal 2013 reflects an income tax benefit of $331 million related to the effective settlement of all undisputed tax matters for the period 1997 through 2000. In addition, the tax benefit for fiscal 2013 reflects $23 million of net tax benefits primarily consisting of income tax benefits recognized in connection with a reduction in the valuation allowance associated with certain ADC tax loss carryforwards and income tax benefits recognized in connection with the lapse of statutes of limitations for examinations of prior year income tax returns, partially offset by income tax expense related to adjustments to prior year income tax returns. | |||||||||||
We assessed the realization of ADC's tax loss and credit carryforwards that we acquired in connection with our purchase of ADC, and we believe it is more likely than not that a tax benefit will be realized on additional U.S. federal and state net operating losses. Based upon the fiscal years 2011 through 2013 U.S. operating results of the ADC business under our management, we reduced the valuation allowance provided at the date of acquisition and recorded a tax benefit of $63 million. As of fiscal year end 2013, we continue to maintain a valuation allowance of $177 million related to U.S. federal and state ADC tax attributes due to the uncertainty of their realization in the future. | |||||||||||
The tax provision for fiscal 2012 reflects an income tax benefit of $107 million recognized in connection with a reduction in the valuation allowance associated with tax loss carryforwards in certain non-U.S. locations. In addition, the tax provision for fiscal 2012 reflects $17 million of income tax expense associated with certain non-U.S. tax rate changes enacted in the quarter ended December 30, 2011. | |||||||||||
The tax provision for fiscal 2011 reflects income tax benefits of $35 million associated with the completion of fieldwork and the settlement of certain U.S. tax matters. | |||||||||||
Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax asset were as follows: | |||||||||||
Fiscal Year End | |||||||||||
2013 | 2012 | ||||||||||
(in millions) | |||||||||||
Deferred tax assets: | |||||||||||
Accrued liabilities and reserves | $ | 320 | $ | 270 | |||||||
Tax loss and credit carryforwards | 3,431 | 3,382 | |||||||||
Inventories | 55 | 54 | |||||||||
Pension and postretirement benefits | 235 | 331 | |||||||||
Deferred revenue | 5 | 15 | |||||||||
Interest | 372 | 342 | |||||||||
Unrecognized income tax benefits | 364 | 469 | |||||||||
Other | 19 | 22 | |||||||||
4,801 | 4,885 | ||||||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | (778 | ) | (764 | ) | |||||||
Property, plant, and equipment | (64 | ) | (101 | ) | |||||||
Other | (38 | ) | (85 | ) | |||||||
(880 | ) | (950 | ) | ||||||||
Net deferred tax asset before valuation allowance | 3,921 | 3,935 | |||||||||
Valuation allowance | (1,816 | ) | (1,719 | ) | |||||||
Net deferred tax asset | $ | 2,105 | $ | 2,216 | |||||||
Unrecognized income tax benefits decreased primarily due to the effective settlement of the IRS's audit of all tax matters for the period 1997 through 2000, excluding the disputed issue involving the tax treatment of certain intercompany debt transactions. See Note 13 for additional information regarding the effective settlement. Pension and postretirement benefits decreased primarily due to a reduction in the pension obligation. See Note 16 for additional information regarding the retirement plans. | |||||||||||
At fiscal year end 2013, we had approximately $1,597 million of U.S. federal and $124 million of U.S. state net operating loss carryforwards (tax effected) which will expire in future years through 2033. In addition, at fiscal year end 2013, we had approximately $171 million of U.S. federal tax credit carryforwards, of which $46 million have no expiration and $125 million will expire in future years through 2033, and $37 million of U.S. state tax credits carryforwards which will expire in future years through 2028. | |||||||||||
At fiscal year end 2013, we had approximately $1,461 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, of which $1,300 million have no expiration and $161 million will expire in future years through 2033. Also, at fiscal year end 2013, there were $1 million of non-U.S. tax credit carryforwards which have no expiration. In addition, $40 million of non-U.S. capital loss carryforwards (tax effected) have no expiration. | |||||||||||
The valuation allowance for deferred tax assets of $1,816 million and $1,719 million at fiscal year end 2013 and 2012, respectively, relates principally to the uncertainty of the utilization of certain deferred tax assets, primarily tax loss, capital loss, and credit carryforwards in various jurisdictions. We believe that we will generate sufficient future taxable income to realize the income tax benefits related to the remaining net deferred tax assets on our Consolidated Balance Sheet. The valuation allowance was calculated in accordance with the provisions of ASC 740, Income Taxes, which require that a valuation allowance be established or maintained when it is more likely than not that all or a portion of deferred tax assets will not be realized. At fiscal year end 2013, approximately $79 million of the valuation allowance relates to share-based compensation and will be recorded to equity if certain net operating losses and tax credit carryforwards are utilized. | |||||||||||
The calculation of our tax liabilities includes estimates for uncertainties in the application of complex tax regulations across multiple global jurisdictions where we conduct our operations. Under the uncertain tax position provisions of ASC 740, we recognize liabilities for tax and related interest for issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes and related interest will be due. These tax liabilities and related interest are reflected net of the impact of related tax loss carryforwards, as such tax loss carryforwards will be applied against these tax liabilities and will reduce the amount of cash tax payments due upon the eventual settlement with the tax authorities. These estimates may change due to changing facts and circumstances. Due to the complexity of these uncertainties, the ultimate resolution may result in a settlement that differs from our current estimate of the tax liabilities and related interest. Furthermore, management has reviewed with tax counsel the issues raised by certain taxing authorities and the adequacy of these recorded amounts. If our current estimate of tax and interest liabilities is less than the ultimate settlement, an additional charge to income tax expense may result. If our current estimate of tax and interest liabilities is more than the ultimate settlement, income tax benefits may be recognized. | |||||||||||
We have provided income taxes for earnings that are currently distributed as well as the taxes associated with several subsidiaries' earnings that are expected to be distributed in the future. No additional provision has been made for Swiss or non-Swiss income taxes on the undistributed earnings of subsidiaries or for unrecognized deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as such earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or we have concluded that no additional tax liability will arise as a result of the distribution of such earnings. As of September 27, 2013, certain subsidiaries had approximately $18 billion of cumulative undistributed earnings that have been retained indefinitely and reinvested in our global manufacturing operations, including working capital, property, plant, and equipment, intangible assets, and research and development activities. A liability could arise if our intention to permanently reinvest such earnings were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investments in subsidiaries. As of September 27, 2013, we had approximately $4.5 billion of cash, cash equivalents, and intercompany deposits, principally in our subsidiaries, that we have the ability to distribute to TEGSA, our Luxembourg subsidiary, which is the obligor of substantially all of our debt, and to TE Connectivity Ltd., our Swiss parent company, but we consider to be permanently reinvested. We estimate that up to approximately $1.5 billion of tax expense would be recognized on our Consolidated Financial Statements if our intention to permanently reinvest these amounts were to change. Our current plans do not demonstrate a need to repatriate cash, cash equivalents, and intercompany deposits that are designated as permanently reinvested in order to fund our operations, including investing and financing activities. | |||||||||||
Uncertain Tax Position Provisions of ASC 740 | |||||||||||
As of September 27, 2013, we had total unrecognized income tax benefits of $1,620 million. If recognized in future periods, $1,471 million of these currently unrecognized income tax benefits would impact the income tax provision and effective tax rate. As of September 28, 2012, we had total unrecognized income tax benefits of $1,795 million. If recognized in future periods, $1,714 million of these unrecognized income tax benefits would impact the income tax provision and effective tax rate. The following table summarizes the activity related to unrecognized income tax benefits: | |||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Balance at beginning of fiscal year | $ | 1,795 | $ | 1,783 | $ | 1,689 | |||||
Additions related to prior periods tax positions | 90 | 41 | 123 | ||||||||
Reductions related to prior periods tax positions | (271 | ) | (36 | ) | (98 | ) | |||||
Additions related to current period tax positions | 88 | 31 | 43 | ||||||||
Acquisitions | — | 7 | 45 | ||||||||
Settlements | (8 | ) | (12 | ) | (3 | ) | |||||
Reductions due to lapse of applicable statute of limitations | (74 | ) | (19 | ) | (16 | ) | |||||
Balance at end of fiscal year | $ | 1,620 | $ | 1,795 | $ | 1,783 | |||||
We record accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of September 27, 2013, we had recorded $1,018 million of accrued interest and penalties related to uncertain tax positions on the Consolidated Balance Sheet of which $1,015 million was recorded in income taxes and $3 million was recorded in accrued and other current liabilities. As of September 28, 2012, the balance of accrued interest and penalties was $1,335 million of which $1,299 million was recorded in income taxes and $36 million was recorded in accrued and other current liabilities. The decrease in the accrued interest and penalties from fiscal year end 2012 is due mainly to the effective settlement of all undisputed tax matters for the period 1997 through 2000. During fiscal 2013, 2012, and 2011, we recognized a benefit of $247 million, expense of $95 million, and expense of $86 million, respectively, related to interest and penalties on the Consolidated Statements of Operations. | |||||||||||
For tax years 1997 through 2004, Tyco International has resolved all matters, excluding one disputed issue related to the tax treatment of certain intercompany debt transactions. The IRS commenced its audit of certain Tyco International income tax returns for the years 2005 through 2007 in fiscal 2011, and it is our understanding that fieldwork for this audit period is expected to be completed in fiscal 2014. Also, during fiscal 2012, the IRS commenced its audit of our income tax returns for the years 2008 through 2010. We expect fieldwork for the 2008 through 2010 audit to conclude in fiscal 2014. See Note 13 for additional information regarding the status of IRS examinations. | |||||||||||
We file income tax returns on a unitary, consolidated, or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from 3 to 4 years. Various state and local income tax returns are currently in the process of examination or administrative appeal. | |||||||||||
Our non-U.S. subsidiaries file income tax returns in the countries in which they have operations. Generally, these countries have statutes of limitations ranging from 3 to 10 years. Various non-U.S. subsidiary income tax returns are currently in the process of examination by taxing authorities. | |||||||||||
As of September 27, 2013, under applicable statutes, the following tax years remained subject to examination in the major tax jurisdictions indicated: | |||||||||||
Jurisdiction | Open Years | ||||||||||
Belgium | 2011 through 2013 | ||||||||||
Brazil | 2008 through 2013 | ||||||||||
Canada | 2002 and 2005 through 2013 | ||||||||||
China | 2003 through 2013 | ||||||||||
Czech Republic | 2010 through 2013 | ||||||||||
France | 2010 through 2013 | ||||||||||
Germany | 2008 through 2013 | ||||||||||
Hong Kong | 2007 through 2013 | ||||||||||
India | 2006 through 2013 | ||||||||||
Italy | 2008 through 2013 | ||||||||||
Japan | 2007 through 2013 | ||||||||||
Korea | 2007 through 2013 | ||||||||||
Luxembourg | 2008 through 2013 | ||||||||||
Netherlands | 2008 through 2013 | ||||||||||
Portugal | 2009 through 2013 | ||||||||||
Singapore | 2006 through 2013 | ||||||||||
Spain | 2009 through 2013 | ||||||||||
Switzerland | 2011 through 2013 | ||||||||||
United Kingdom | 2011 through 2013 | ||||||||||
U.S.—federal and state and local | 1997 through 2013 | ||||||||||
In most jurisdictions, taxing authorities retain the ability to review prior tax years and to adjust any net operating loss and tax credit carryforwards from these years that are utilized in a subsequent period. | |||||||||||
Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $190 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. | |||||||||||
We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Consolidated Balance Sheet as of September 27, 2013. | |||||||||||
Other_Income_Expense_Net
Other Income (Expense), Net | 12 Months Ended |
Sep. 27, 2013 | |
Other Income (Expense), Net | ' |
Other Income (Expense), Net | ' |
18. Other Income (Expense), Net | |
In fiscal 2013, 2012, and 2011, we recorded net other expense of $183 million, net other income of $50 million, and net other income of $27 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. See Note 12 for further information regarding the Tax Sharing Agreement. The net other expense in fiscal 2013 included $231 million related to the effective settlement of all undisputed tax matters for the period 1997 through 2000. See Note 13 for additional information. | |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Earnings Per Share | ' | ||||||||||
19. Earnings Per Share | |||||||||||
The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share was as follows: | |||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Basic | 418 | 426 | 438 | ||||||||
Dilutive impact of share-based compensation arrangements | 5 | 4 | 5 | ||||||||
Diluted | 423 | 430 | 443 | ||||||||
Certain share options were not included in the computation of diluted earnings per share because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive. Share options not included in the computation totaled 3 million, 12 million, and 13 million for fiscal 2013, 2012, and 2011, respectively. | |||||||||||
Equity
Equity | 12 Months Ended |
Sep. 27, 2013 | |
Equity | ' |
Equity | ' |
20. Equity | |
Common Shares | |
We are organized under the laws of Switzerland. The rights of holders of our shares are governed by Swiss law, our Swiss articles of association, and our Swiss organizational regulations. Accordingly, the par value of our common shares is stated in Swiss Francs ("CHF"). We continue to use the U.S. Dollar, however, as our reporting currency on our Consolidated Financial Statements. | |
Subject to certain conditions specified in our articles of association, we are authorized to increase our share capital by issuing new shares in aggregate not exceeding 50% of our authorized shares. In March 2013, our shareholders reapproved and extended through March 6, 2015 our board of directors' authorization to issue additional new shares, subject to certain conditions specified in the articles, in aggregate not exceeding 50% of the amount of our authorized shares. | |
Common Shares Held in Treasury | |
At September 27, 2013, approximately 17 million common shares were held in treasury, of which 8 million were owned by one of our subsidiaries. At September 28, 2012, approximately 16 million common shares were held in treasury, of which 11 million were owned by one of our subsidiaries. Shares held both directly by us and by our subsidiary are presented as treasury shares on the Consolidated Balance Sheets. | |
In March 2013, our shareholders approved the cancellation of 10 million shares repurchased under our share repurchase program during the period from December 31, 2011 to December 28, 2012. The capital reduction by cancellation of shares was subject to a notice period and filing with the commercial register and became effective in May 2013. | |
In March 2012, our shareholders approved the cancellation of 24 million shares repurchased under our share repurchase program during the period from December 25, 2010 to December 30, 2011. The capital reduction by cancellation of shares was subject to a notice period and filing with the commercial register and became effective in May 2012. | |
In March 2011, our shareholders approved the cancellation of 5 million shares repurchased under our share repurchase program during the period from July 27, 2010 to December 24, 2010. The capital reduction by cancellation of shares was subject to a notice period and filing with the commercial register and became effective in May 2011. | |
Contributed Surplus | |
Contributed surplus established for Swiss tax and statutory purposes ("Swiss Contributed Surplus"), subject to certain conditions, is a freely distributable reserve. Distributions to shareholders from Swiss Contributed Surplus are free from withholding tax. As of September 27, 2013 and September 28, 2012, Swiss Contributed Surplus was CHF 9,342 million and CHF 9,745 million, respectively (equivalent to $8,520 million and $8,940 million, respectively). | |
Dividends and Distributions to Shareholders | |
Under Swiss law, subject to certain conditions, distributions to shareholders made in the form of a reduction of registered share capital or from reserves from capital contributions (equivalent to Swiss Contributed Surplus) are exempt from Swiss withholding tax. See "Contributed Surplus" for additional information regarding our ability to make distributions free from withholding tax from contributed surplus. Distributions or dividends on our shares must be approved by our shareholders. | |
In March 2010, our shareholders approved a cash distribution to shareholders in the form of a capital reduction to the par value of our common shares of CHF 0.72 (equivalent to $0.64) per share, payable in four equal quarterly installments of $0.16 per share beginning in the third quarter of fiscal 2010 through the second quarter of fiscal 2011. We paid the third and fourth installments of the distribution during the quarters ended December 24, 2010 and March 25, 2011, respectively. These capital reductions reduced the par value of our common shares from CHF 1.73 (equivalent to $1.60) to CHF 1.37 (equivalent to $1.28). | |
In March 2011, our shareholders approved a dividend payment to shareholders of CHF 0.68 (equivalent to $0.72) per share out of contributed surplus, payable in four equal quarterly installments beginning in the third quarter of fiscal 2011 through the second quarter of fiscal 2012. We paid the installments of the dividend at a rate of $0.18 per share during each of the quarters ended June 24, 2011, September 30, 2011, December 30, 2011, and March 30, 2012. | |
In March 2012, our shareholders approved a cash distribution to shareholders in the form of a capital reduction to the par value of our common shares of CHF 0.80 (equivalent to $0.84) per share, payable in four equal quarterly installments beginning in the third quarter of fiscal 2012 through the second quarter of fiscal 2013. We paid the installments of the distribution at a rate of $0.21 per share during each of the quarters ended June 29, 2012, September 28, 2012, December 28, 2012 and March 29, 2013. These capital reductions reduced the par value of our common shares from CHF 1.37 (equivalent to $1.28) to CHF 0.57 (equivalent to $0.44). | |
In March 2013, our shareholders approved a dividend payment to shareholders of CHF 0.96 (equivalent to $1.00) per share out of contributed surplus, payable in four equal quarterly installments beginning in the third quarter of fiscal 2013 through the second quarter of fiscal 2014. We paid the first and second installments of the dividend at a rate of $0.25 per share during each of the quarters ended June 28, 2013 and September 27, 2013. | |
Upon approval by the shareholders of a dividend payment or cash distribution in the form of a capital reduction, we record a liability with a corresponding charge to contributed surplus or common shares. At September 27, 2013 and September 28, 2012, the unpaid portion of the dividends and distributions recorded in accrued and other current liabilities on the Consolidated Balance Sheets totaled $206 million and $178 million, respectively. | |
Share Repurchase Program | |
During fiscal 2013, 2012, and 2011, we repurchased approximately 20 million of our common shares for $829 million, approximately 6 million of our common shares for $194 million, and approximately 25 million of our common shares for $867 million, respectively. At September 27, 2013, we had $478 million of availability remaining under our share repurchase authorization. See additional information regarding the share repurchase program in Note 25. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||
21. Accumulated Other Comprehensive Income | ||||||||||||||
The components of accumulated other comprehensive income were as follows: | ||||||||||||||
Currency | Unrecognized | Gain (Loss) | Accumulated | |||||||||||
Translation(1) | Pension and | on Cash | Other | |||||||||||
Postretirement | Flow | Comprehensive | ||||||||||||
Benefit Costs | Hedges | Income | ||||||||||||
(in millions) | ||||||||||||||
Balance at September 24, 2010 | $ | 1,040 | $ | (764 | ) | $ | (30 | ) | $ | 246 | ||||
Pre-tax current period change | 50 | 238 | (21 | ) | 267 | |||||||||
Income tax (expense) benefit | — | (86 | ) | 1 | (85 | ) | ||||||||
Balance at September 30, 2011 | 1,090 | (612 | ) | (50 | ) | 428 | ||||||||
Pre-tax current period change | (131 | ) | (114 | ) | 24 | (221 | ) | |||||||
Income tax (expense) benefit | — | 26 | (4 | ) | 22 | |||||||||
Balance at September 28, 2012 | 959 | (700 | ) | (30 | ) | 229 | ||||||||
Pre-tax current period change | (28 | ) | 204 | (36 | ) | 140 | ||||||||
Income tax (expense) benefit | — | (73 | ) | 7 | (66 | ) | ||||||||
Balance at September 27, 2013 | $ | 931 | $ | (569 | ) | $ | (59 | ) | $ | 303 | ||||
-1 | ||||||||||||||
Includes hedges of net investment foreign exchange gains or losses which offset foreign exchange gains or losses attributable to the translation of the net investments. | ||||||||||||||
Share_Plans
Share Plans | 12 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Share Plans | ' | |||||||||||||
Share Plans | ' | |||||||||||||
22. Share Plans | ||||||||||||||
Equity awards (primarily restricted share awards, performance share awards, and share options) granted by us are administered by the management development and compensation committee of our board of directors, which consists exclusively of independent directors. Our plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, as amended and restated, is the primary plan, provide for the award of annual performance bonuses and long-term performance awards, including share options, restricted and performance units, deferred stock units, and other share-based awards (collectively, "Awards") and allow for the use of unissued shares or treasury shares to be used to satisfy such Awards. As of September 27, 2013, our plans provided for a maximum of 67 million shares to be issued as Awards, subject to adjustment as provided under the terms of the plans. A total of 26 million shares remained available for issuance under our plans as of September 27, 2013. | ||||||||||||||
Share-Based Compensation Expense | ||||||||||||||
Total share-based compensation expense, which was primarily included in selling, general, and administrative expenses on the Consolidated Statements of Operations, was $78 million, $68 million, and $71 million during fiscal 2013, 2012, and 2011, respectively. We have recognized a related tax benefit associated with our share-based compensation arrangements of $24 million, $21 million, and $22 million in fiscal 2013, 2012, and 2011, respectively. | ||||||||||||||
Restricted Share Awards | ||||||||||||||
Restricted share awards, which are generally in the form of restricted share units, are granted subject to certain restrictions. Conditions of vesting are determined at the time of grant. All restrictions on an award will lapse upon death or disability of the employee. If the employee satisfies retirement or normal retirement requirements, all or a portion of the award may vest, depending on the terms and conditions of the particular grant. Recipients of restricted units have no voting rights, but do receive dividend equivalents. For grants that vest based on certain specified performance criteria, the fair value of the shares or units is expensed over the period of performance, once achievement of criteria is deemed probable. For grants that vest through passage of time, the fair value of the award at the time of the grant is amortized to expense over the period of vesting. The fair value of restricted share awards is determined based on the closing value of our shares on the grant date. Restricted share awards generally vest in increments over a period of four years as determined by the management development and compensation committee. | ||||||||||||||
A summary of restricted share award activity is presented below: | ||||||||||||||
Shares | Weighted-Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested at September 28, 2012 | 4,585,994 | $ | 30.09 | |||||||||||
Granted | 1,764,936 | 34.69 | ||||||||||||
Vested | (1,906,890 | ) | 26.65 | |||||||||||
Forfeited | (460,115 | ) | 32.5 | |||||||||||
Non-vested at September 27, 2013 | 3,983,925 | $ | 33.5 | |||||||||||
The weighted-average grant-date fair value of restricted share awards granted during fiscal 2013, 2012, and 2011 was $34.69, $34.63, and $34.14, respectively. | ||||||||||||||
As of September 27, 2013, there was $81 million of unrecognized compensation cost related to non-vested restricted share awards. The cost is expected to be recognized over a weighted-average period of 1.7 years. | ||||||||||||||
Performance Share Awards | ||||||||||||||
Performance share awards, which are generally in the form of performance share units, are granted with pay-out subject to vesting requirements and certain performance conditions that are determined at the time of grant. Based on our performance, the pay-out of performance share units can range from 0% to 200% of the number of units originally granted. Certain employees who receive performance share awards also are granted an opportunity to earn additional performance shares subject to the attainment of additional performance criteria which are set at the time of grant. Attainment of the performance criteria will result in an additional pay-out of performance share units equal to 100% of the performance share units paid out under the original performance share award. The grant date fair value of performance share awards is expensed over the period of performance once achievement of the performance criteria is deemed probable. Recipients of performance share units have no voting rights but do receive dividend equivalents. Performance share awards generally vest after a period of three years as determined by the management development and compensation committee of the board of directors. | ||||||||||||||
A summary of performance share award activity is presented below: | ||||||||||||||
Shares | Weighted-Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding at September 28, 2012 | — | $ | — | |||||||||||
Granted | 327,226 | 34.16 | ||||||||||||
Forfeited | (15,807 | ) | 34.05 | |||||||||||
Outstanding at September 27, 2013 | 311,419 | $ | 34.17 | |||||||||||
As of September 27, 2013, there was $7 million of unrecognized compensation cost related to non-vested performance share awards. The cost is expected to be recognized over a weighted-average period of 2.1 years. | ||||||||||||||
Share Options | ||||||||||||||
Share options are granted to purchase our common shares at prices which are equal to or greater than the market price of the common shares on the date the option is granted. Conditions of vesting are determined at the time of grant. All restrictions on the award will lapse upon death or disability of the employee. If the employee satisfies retirement or normal retirement requirements, all or a portion of the award may vest, depending on the terms and conditions of the particular grant. Options generally vest and become exercisable in equal annual installments over a period of four years and expire ten years after the date of grant. | ||||||||||||||
A summary of share option award activity is presented below: | ||||||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Exercise | Remaining | Intrinsic | ||||||||||||
Price | Contractual | Value | ||||||||||||
Term | ||||||||||||||
(in years) | (in millions) | |||||||||||||
Outstanding at September 28, 2012 | 20,552,689 | $ | 32.25 | |||||||||||
Granted | 2,854,600 | 34.27 | ||||||||||||
Exercised | (6,507,750 | ) | 32.79 | |||||||||||
Expired | (423,261 | ) | 39.77 | |||||||||||
Forfeited | (644,414 | ) | 32.44 | |||||||||||
Outstanding at September 27, 2013 | 15,831,864 | $ | 32.18 | 5.9 | $ | 314 | ||||||||
Vested and expected to vest at September 27, 2013 | 15,393,747 | $ | 32.15 | 5.9 | $ | 306 | ||||||||
Exercisable at September 27, 2013 | 9,088,414 | $ | 31.39 | 4.3 | $ | 188 | ||||||||
The weighted-average exercise price of share option awards granted during fiscal 2013, 2012, and 2011 were $34.27, $34.49, and $33.86, respectively. | ||||||||||||||
As of September 27, 2013, there was $38 million of unrecognized compensation cost related to non-vested share options granted under our share option plans. The cost is expected to be recognized over a weighted-average period of 1.7 years. | ||||||||||||||
At acquisition, all share options and stock appreciation right ("SAR") awards related to ADC were converted into share options and SARs related to our common shares. See Note 5 for additional information regarding the conversion of ADC share options and SARs. | ||||||||||||||
Share-Based Compensation Assumptions | ||||||||||||||
The grant-date fair value of each share option grant was 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 our peers 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 was based on U.S. Treasury zero-coupon issues with a remaining term that approximated the expected life assumed at the date of grant. The expected annual dividend per share was based on our expected dividend rate. The recognized share-based compensation expense was net of estimated forfeitures, which are based on voluntary termination behavior as well as an analysis of actual option forfeitures. | ||||||||||||||
The weighted-average grant-date fair value of options granted and the weighted-average assumptions we used in the Black-Scholes-Merton option pricing model were as follows: | ||||||||||||||
Fiscal | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Weighted-average grant-date fair value | $ | 8.62 | $ | 9.49 | $ | 9.13 | ||||||||
Assumptions: | ||||||||||||||
Expected share price volatility | 34 | % | 36 | % | 36 | % | ||||||||
Risk free interest rate | 0.9 | % | 1.3 | % | 1.2 | % | ||||||||
Expected annual dividend per share | $ | 0.84 | $ | 0.84 | $ | 0.72 | ||||||||
Expected life of options (in years) | 6 | 6 | 5.1 | |||||||||||
The total intrinsic value of options exercised during fiscal 2013, 2012, and 2011 was $69 million, $31 million, and $50 million, respectively. The total fair value of restricted share awards that vested during fiscal 2013, 2012, and 2011 was $51 million, $42 million, and $54 million, respectively. We received cash related to the exercise of options of $214 million, $60 million, and $80 million in fiscal 2013, 2012, and 2011, respectively. The related excess cash tax benefit classified as a financing cash inflow on the Consolidated Statements of Cash Flows for fiscal 2013, 2012, and 2011 was not material. | ||||||||||||||
Segment_and_Geographic_Data
Segment and Geographic Data | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Segment and Geographic Data | ' | |||||||||||||||||||
Segment and Geographic Data | ' | |||||||||||||||||||
23. Segment and Geographic Data | ||||||||||||||||||||
Effective for the first quarter of fiscal 2013, we reorganized our management and segments to better align the organization around our strategy. We now operate through four reporting segments: Transportation Solutions, Network Solutions, Industrial Solutions, and Consumer Solutions. See Note 1 for a description of the segments in which we operate. We aggregate our operating segments into reportable segments based upon similar economic characteristics and business groupings of products, services, and customers. | ||||||||||||||||||||
Segment performance is evaluated based on net sales and operating income. Generally, we consider all expenses to be of an operating nature, and, accordingly, allocate them to each reportable segment. Costs specific to a segment are charged to the segment. Corporate expenses, such as headquarters administrative costs, are allocated to the segments based on segment operating income. Intersegment sales were not material and were recorded at selling prices that approximate market prices. Corporate assets are allocated to the segments based on segment assets. | ||||||||||||||||||||
The following segment information reflects our current segment reporting structure. Prior period segment results have been restated to conform to the current segment reporting structure. | ||||||||||||||||||||
Net sales and operating income by segment were as follows: | ||||||||||||||||||||
Net Sales | Operating Income | |||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Transportation Solutions | $ | 5,485 | $ | 5,128 | $ | 4,912 | $ | 972 | $ | 754 | $ | 729 | ||||||||
Network Solutions | 3,066 | 3,310 | 3,671 | 136 | 247 | 300 | ||||||||||||||
Industrial Solutions | 3,007 | 2,987 | 3,144 | 359 | 378 | 477 | ||||||||||||||
Consumer Solutions | 1,722 | 1,857 | 2,051 | 89 | 139 | 181 | ||||||||||||||
Total | $ | 13,280 | $ | 13,282 | $ | 13,778 | $ | 1,556 | $ | 1,518 | $ | 1,687 | ||||||||
No single customer accounted for a significant amount of our net sales in fiscal 2013, 2012, and 2011. | ||||||||||||||||||||
As we are not organized by product or service, it is not practicable to disclose net sales by product or service. | ||||||||||||||||||||
Depreciation and amortization and capital expenditures were as follows: | ||||||||||||||||||||
Depreciation and | Capital Expenditures | |||||||||||||||||||
Amortization | ||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Transportation Solutions | $ | 296 | $ | 271 | $ | 234 | $ | 325 | $ | 288 | $ | 264 | ||||||||
Network Solutions | 139 | 164 | 158 | 86 | 104 | 119 | ||||||||||||||
Industrial Solutions | 92 | 86 | 86 | 109 | 67 | 90 | ||||||||||||||
Consumer Solutions | 80 | 88 | 86 | 95 | 74 | 101 | ||||||||||||||
Total | $ | 607 | $ | 609 | $ | 564 | $ | 615 | $ | 533 | $ | 574 | ||||||||
Segment assets and a reconciliation of segment assets to total assets were as follows: | ||||||||||||||||||||
Segment Assets | ||||||||||||||||||||
Fiscal Year End | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Transportation Solutions | $ | 2,977 | $ | 2,877 | $ | 2,732 | ||||||||||||||
Network Solutions | 1,684 | 1,857 | 1,955 | |||||||||||||||||
Industrial Solutions | 1,603 | 1,549 | 1,499 | |||||||||||||||||
Consumer Solutions | 987 | 1,081 | 1,173 | |||||||||||||||||
Total segment assets(1) | 7,251 | 7,364 | 7,359 | |||||||||||||||||
Other current assets | 2,224 | 2,352 | 2,762 | |||||||||||||||||
Other non-current assets | 8,986 | 9,590 | 7,602 | |||||||||||||||||
Total assets | $ | 18,461 | $ | 19,306 | $ | 17,723 | ||||||||||||||
-1 | ||||||||||||||||||||
Segment assets are comprised of accounts receivable, inventories, and property, plant, and equipment. | ||||||||||||||||||||
Net sales and net property, plant, and equipment by geographic region were as follows: | ||||||||||||||||||||
Net Sales(1) | Property, Plant, | |||||||||||||||||||
and Equipment, Net | ||||||||||||||||||||
Fiscal | Fiscal Year End | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Americas: | ||||||||||||||||||||
U.S. | $ | 3,811 | $ | 3,664 | $ | 3,657 | $ | 958 | $ | 1,042 | $ | 968 | ||||||||
Other Americas | 566 | 624 | 652 | 80 | 84 | 65 | ||||||||||||||
Total Americas | 4,377 | 4,288 | 4,309 | 1,038 | 1,126 | 1,033 | ||||||||||||||
Europe/Middle East/Africa: | ||||||||||||||||||||
Switzerland | 3,689 | 3,719 | 3,870 | 54 | 52 | 59 | ||||||||||||||
Germany | 123 | 120 | 426 | 356 | 339 | 381 | ||||||||||||||
Other Europe/Middle East/Africa | 750 | 663 | 662 | 702 | 692 | 677 | ||||||||||||||
Total Europe/Middle East/Africa | 4,562 | 4,502 | 4,958 | 1,112 | 1,083 | 1,117 | ||||||||||||||
Asia–Pacific: | ||||||||||||||||||||
China | 2,197 | 2,159 | 2,172 | 516 | 432 | 395 | ||||||||||||||
Other Asia–Pacific | 2,144 | 2,333 | 2,339 | 500 | 572 | 595 | ||||||||||||||
Total Asia–Pacific | 4,341 | 4,492 | 4,511 | 1,016 | 1,004 | 990 | ||||||||||||||
Total | $ | 13,280 | $ | 13,282 | $ | 13,778 | $ | 3,166 | $ | 3,213 | $ | 3,140 | ||||||||
-1 | ||||||||||||||||||||
Net sales to external customers is attributed to individual countries based on the legal entity that records the sale. | ||||||||||||||||||||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||||||||||||||
24. Quarterly Financial Data (unaudited) | ||||||||||||||||||||||||||
Summarized quarterly financial data was as follows: | ||||||||||||||||||||||||||
Fiscal | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||
Quarter(1) | Quarter | Quarter | Quarter(2) | Quarter | Quarter | Quarter(3) | Quarter(4) | |||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||
Net sales | $ | 3,134 | $ | 3,265 | $ | 3,449 | $ | 3,432 | $ | 3,170 | $ | 3,249 | $ | 3,499 | $ | 3,364 | ||||||||||
Gross margin | 989 | 1,052 | 1,132 | 1,156 | 943 | 1,021 | 1,018 | 1,064 | ||||||||||||||||||
Acquisition and integration costs | 5 | 3 | 3 | 3 | 4 | 4 | 15 | 4 | ||||||||||||||||||
Restructuring and other charges, net | 92 | 81 | 67 | 71 | 18 | 32 | 36 | 42 | ||||||||||||||||||
Amounts attributable to TE Connectivity Ltd.: | ||||||||||||||||||||||||||
Income from continuing operations | 279 | 278 | 332 | 387 | 238 | 267 | 260 | 398 | ||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | (2 | ) | (1 | ) | 3 | — | 22 | (10 | ) | (61 | ) | (2 | ) | |||||||||||||
Net income | 277 | 277 | 335 | 387 | 260 | 257 | 199 | 396 | ||||||||||||||||||
Basic earnings per share attributable to TE Connectivity Ltd.: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 0.66 | $ | 0.66 | $ | 0.8 | $ | 0.94 | $ | 0.56 | $ | 0.63 | $ | 0.61 | $ | 0.93 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | 0.01 | — | 0.05 | (0.03 | ) | (0.15 | ) | — | ||||||||||||||||
Net income | 0.66 | 0.66 | 0.81 | 0.94 | 0.61 | 0.6 | 0.46 | 0.93 | ||||||||||||||||||
Diluted earnings per share attributable to TE Connectivity Ltd.: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 0.65 | $ | 0.66 | $ | 0.79 | $ | 0.92 | $ | 0.55 | $ | 0.62 | $ | 0.6 | $ | 0.93 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | 0.01 | — | 0.06 | (0.02 | ) | (0.14 | ) | (0.01 | ) | |||||||||||||||
Net income | 0.65 | 0.65 | 0.8 | 0.92 | 0.61 | 0.6 | 0.46 | 0.92 | ||||||||||||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||||||||||||
Basic | 422 | 420 | 415 | 413 | 425 | 427 | 428 | 426 | ||||||||||||||||||
Diluted | 426 | 424 | 421 | 420 | 429 | 431 | 431 | 429 | ||||||||||||||||||
-1 | ||||||||||||||||||||||||||
Results for the first quarter of fiscal 2013 include $331 million of income tax benefits associated with the effective settlement of an audit of prior year tax returns as well as the related impact of $231 million to other expense pursuant to the tax sharing agreement with Tyco International and Covidien. Results for the first quarter of fiscal 2013 also include $30 million of income tax expense related to adjustments to prior year income tax returns and the estimated impacts of certain intercompany dividends. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Results for the fourth quarter of fiscal 2013 include $63 million of income tax benefits recognized in connection with a reduction in the valuation allowance associated with certain ADC tax loss carryforwards. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Results for the third quarter of fiscal 2012 include $68 million of charges associated with the amortization of acquisition-related fair value adjustments primarily related to acquired inventories and customer order backlog associated with Deutsch. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
Results for the fourth quarter of fiscal 2012 include $107 million of income tax benefits recognized in connection with a reduction in the valuation allowance associated with tax loss carryforwards in certain non-U.S. locations. | ||||||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Sep. 27, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
25. Subsequent Events | |
On October 18, 2013, TEGSA called for redemption all of its outstanding 5.95% senior notes due 2014, representing $300 million aggregate principal amount. The redemption date will be November 18, 2013. We expect to pay an immaterial premium in connection with this early redemption. | |
On October 29, 2013, our board of directors authorized an increase of $1 billion in the share repurchase program. | |
Tyco_Electronics_Group_SA
Tyco Electronics Group S.A. | 12 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Tyco Electronics Group S.A. | ' | ||||||||||||||||
Tyco Electronics Group S.A. | ' | ||||||||||||||||
26. Tyco Electronics Group S.A. | |||||||||||||||||
Tyco Electronics Group S.A. ("TEGSA"), a Luxembourg company and our 100%-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries. TEGSA is the obligor under our senior notes, commercial paper, and Credit Facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The following tables present condensed consolidating financial information for TE Connectivity Ltd., 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. | |||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the Fiscal Year Ended September 27, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,280 | $ | — | $ | 13,280 | |||||||
Cost of sales | — | — | 8,951 | — | 8,951 | ||||||||||||
Gross margin | — | — | 4,329 | — | 4,329 | ||||||||||||
Selling, general, and administrative expenses | 156 | 3 | 1,614 | — | 1,773 | ||||||||||||
Research, development, and engineering expenses | — | — | 675 | — | 675 | ||||||||||||
Acquisition and integration costs | — | — | 14 | — | 14 | ||||||||||||
Restructuring and other charges, net | — | — | 311 | — | 311 | ||||||||||||
Operating income (loss) | (156 | ) | (3 | ) | 1,715 | — | 1,556 | ||||||||||
Interest income | — | — | 17 | — | 17 | ||||||||||||
Interest expense | — | (135 | ) | (7 | ) | — | (142 | ) | |||||||||
Other expense, net | — | — | (183 | ) | — | (183 | ) | ||||||||||
Equity in net income of subsidiaries | 1,445 | 1,533 | — | (2,978 | ) | — | |||||||||||
Intercompany interest and fees | (13 | ) | 54 | (41 | ) | — | — | ||||||||||
Income from continuing operations before income taxes | 1,276 | 1,449 | 1,501 | (2,978 | ) | 1,248 | |||||||||||
Income tax (expense) benefit | — | (4 | ) | 33 | — | 29 | |||||||||||
Net income | 1,276 | 1,445 | 1,534 | (2,978 | ) | 1,277 | |||||||||||
Less: net income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 1,276 | 1,445 | 1,533 | (2,978 | ) | 1,276 | |||||||||||
Other comprehensive income | 74 | 74 | 64 | (138 | ) | 74 | |||||||||||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 1,350 | $ | 1,519 | $ | 1,597 | $ | (3,116 | ) | $ | 1,350 | ||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the Fiscal Year Ended September 28, 2012 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,282 | $ | — | $ | 13,282 | |||||||
Cost of sales | — | — | 9,236 | — | 9,236 | ||||||||||||
Gross margin | — | — | 4,046 | — | 4,046 | ||||||||||||
Selling, general, and administrative expenses, net(1) | 102 | (122 | ) | 1,705 | — | 1,685 | |||||||||||
Research, development, and engineering expenses | — | — | 688 | — | 688 | ||||||||||||
Acquisition and integration costs | 1 | 2 | 24 | — | 27 | ||||||||||||
Restructuring and other charges, net | — | — | 128 | — | 128 | ||||||||||||
Operating income (loss) | (103 | ) | 120 | 1,501 | — | 1,518 | |||||||||||
Interest income | — | — | 23 | — | 23 | ||||||||||||
Interest expense | — | (168 | ) | (8 | ) | — | (176 | ) | |||||||||
Other income, net | — | — | 50 | — | 50 | ||||||||||||
Equity in net income of subsidiaries | 1,277 | 1,256 | — | (2,533 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (51 | ) | (51 | ) | — | 102 | — | ||||||||||
Intercompany interest and fees | (11 | ) | 69 | (58 | ) | — | — | ||||||||||
Income from continuing operations before income taxes | 1,112 | 1,226 | 1,508 | (2,431 | ) | 1,415 | |||||||||||
Income tax expense | — | — | (249 | ) | — | (249 | ) | ||||||||||
Income from continuing operations | 1,112 | 1,226 | 1,259 | (2,431 | ) | 1,166 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (51 | ) | — | (51 | ) | ||||||||||
Net income | 1,112 | 1,226 | 1,208 | (2,431 | ) | 1,115 | |||||||||||
Less: net income attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 1,112 | 1,226 | 1,205 | (2,431 | ) | 1,112 | |||||||||||
Other comprehensive loss | (199 | ) | (199 | ) | (203 | ) | 402 | (199 | ) | ||||||||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 913 | $ | 1,027 | $ | 1,002 | $ | (2,029 | ) | $ | 913 | ||||||
-1 | |||||||||||||||||
TEGSA selling, general, and administrative expenses include gains of $125 million related to intercompany transactions. These gains are offset by corresponding losses recorded by Other Subsidiaries. | |||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the Fiscal Year Ended September 30, 2011 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,778 | $ | — | $ | 13,778 | |||||||
Cost of sales | — | — | 9,507 | — | 9,507 | ||||||||||||
Gross margin | — | — | 4,271 | — | 4,271 | ||||||||||||
Selling, general, and administrative expenses | 177 | 91 | 1,460 | — | 1,728 | ||||||||||||
Research, development, and engineering expenses | — | — | 701 | — | 701 | ||||||||||||
Acquisition and integration costs | 3 | — | 16 | — | 19 | ||||||||||||
Restructuring and other charges, net | — | — | 136 | — | 136 | ||||||||||||
Operating income (loss) | (180 | ) | (91 | ) | 1,958 | — | 1,687 | ||||||||||
Interest income | — | — | 22 | — | 22 | ||||||||||||
Interest expense | — | (150 | ) | (11 | ) | — | (161 | ) | |||||||||
Other income, net | — | — | 27 | — | 27 | ||||||||||||
Equity in net income of subsidiaries | 1,422 | 1,572 | — | (2,994 | ) | — | |||||||||||
Equity in net income of subsidiaries of discontinued operations | 22 | 22 | — | (44 | ) | — | |||||||||||
Intercompany interest and fees | (19 | ) | 91 | (72 | ) | — | — | ||||||||||
Income from continuing operations before income taxes | 1,245 | 1,444 | 1,924 | (3,038 | ) | 1,575 | |||||||||||
Income tax expense | — | — | (347 | ) | — | (347 | ) | ||||||||||
Income from continuing operations | 1,245 | 1,444 | 1,577 | (3,038 | ) | 1,228 | |||||||||||
Income from discontinued operations, net of income taxes | — | — | 22 | — | 22 | ||||||||||||
Net income | 1,245 | 1,444 | 1,599 | (3,038 | ) | 1,250 | |||||||||||
Less: net income attributable to noncontrolling interests | — | — | (5 | ) | — | (5 | ) | ||||||||||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 1,245 | 1,444 | 1,594 | (3,038 | ) | 1,245 | |||||||||||
Other comprehensive income | 182 | 182 | 187 | (369 | ) | 182 | |||||||||||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 1,427 | $ | 1,626 | $ | 1,781 | $ | (3,407 | ) | $ | 1,427 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,403 | $ | — | $ | 1,403 | |||||||
Accounts receivable, net | — | — | 2,323 | — | 2,323 | ||||||||||||
Inventories | — | — | 1,762 | — | 1,762 | ||||||||||||
Intercompany receivables | 1,823 | 222 | 255 | (2,300 | ) | — | |||||||||||
Prepaid expenses and other current assets | 6 | 1 | 480 | — | 487 | ||||||||||||
Deferred income taxes | — | — | 334 | — | 334 | ||||||||||||
Total current assets | 1,829 | 223 | 6,557 | (2,300 | ) | 6,309 | |||||||||||
Property, plant, and equipment, net | — | — | 3,166 | — | 3,166 | ||||||||||||
Goodwill | — | — | 4,326 | — | 4,326 | ||||||||||||
Intangible assets, net | — | — | 1,244 | — | 1,244 | ||||||||||||
Deferred income taxes | — | — | 2,146 | — | 2,146 | ||||||||||||
Investment in subsidiaries | 7,014 | 17,040 | — | (24,054 | ) | — | |||||||||||
Intercompany loans receivable | 18 | 2,120 | 9,489 | (11,627 | ) | — | |||||||||||
Receivable from Tyco International Ltd. and Covidien plc | — | — | 1,002 | — | 1,002 | ||||||||||||
Other assets | — | 28 | 240 | — | 268 | ||||||||||||
Total Assets | $ | 8,861 | $ | 19,411 | $ | 28,170 | $ | (37,981 | ) | $ | 18,461 | ||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 650 | $ | 61 | $ | — | $ | 711 | |||||||
Accounts payable | 1 | — | 1,382 | — | 1,383 | ||||||||||||
Accrued and other current liabilities | 213 | 49 | 1,500 | — | 1,762 | ||||||||||||
Deferred revenue | — | — | 68 | — | 68 | ||||||||||||
Intercompany payables | 256 | — | 2,044 | (2,300 | ) | — | |||||||||||
Total current liabilities | 470 | 699 | 5,055 | (2,300 | ) | 3,924 | |||||||||||
Long-term debt | — | 2,213 | 90 | — | 2,303 | ||||||||||||
Intercompany loans payable | 5 | 9,485 | 2,137 | (11,627 | ) | — | |||||||||||
Long-term pension and postretirement liabilities | — | — | 1,155 | — | 1,155 | ||||||||||||
Deferred income taxes | — | — | 321 | — | 321 | ||||||||||||
Income taxes | — | — | 1,979 | — | 1,979 | ||||||||||||
Other liabilities | — | — | 393 | — | 393 | ||||||||||||
Total Liabilities | 475 | 12,397 | 11,130 | (13,927 | ) | 10,075 | |||||||||||
Total Equity | 8,386 | 7,014 | 17,040 | (24,054 | ) | 8,386 | |||||||||||
Total Liabilities and Equity | $ | 8,861 | $ | 19,411 | $ | 28,170 | $ | (37,981 | ) | $ | 18,461 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of September 28, 2012 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,589 | $ | — | $ | 1,589 | |||||||
Accounts receivable, net | 1 | — | 2,342 | — | 2,343 | ||||||||||||
Inventories | — | — | 1,808 | — | 1,808 | ||||||||||||
Intercompany receivables | 16 | — | 29 | (45 | ) | — | |||||||||||
Prepaid expenses and other current assets | 2 | 1 | 471 | — | 474 | ||||||||||||
Deferred income taxes | — | — | 289 | — | 289 | ||||||||||||
Total current assets | 19 | 1 | 6,528 | (45 | ) | 6,503 | |||||||||||
Property, plant, and equipment, net | — | — | 3,213 | — | 3,213 | ||||||||||||
Goodwill | — | — | 4,308 | — | 4,308 | ||||||||||||
Intangible assets, net | — | — | 1,352 | — | 1,352 | ||||||||||||
Deferred income taxes | — | — | 2,460 | — | 2,460 | ||||||||||||
Investment in subsidiaries | 8,192 | 17,341 | — | (25,533 | ) | — | |||||||||||
Intercompany loans receivable | 11 | 2,779 | 8,361 | (11,151 | ) | — | |||||||||||
Receivable from Tyco International Ltd. and Covidien plc | — | — | 1,180 | — | 1,180 | ||||||||||||
Other assets | — | 40 | 250 | — | 290 | ||||||||||||
Total Assets | $ | 8,222 | $ | 20,161 | $ | 27,652 | $ | (36,729 | ) | $ | 19,306 | ||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 1,014 | $ | 1 | $ | — | $ | 1,015 | |||||||
Accounts payable | 2 | — | 1,290 | — | 1,292 | ||||||||||||
Accrued and other current liabilities | 210 | 70 | 1,296 | — | 1,576 | ||||||||||||
Deferred revenue | — | — | 121 | — | 121 | ||||||||||||
Intercompany payables | 29 | — | 16 | (45 | ) | — | |||||||||||
Total current liabilities | 241 | 1,084 | 2,724 | (45 | ) | 4,004 | |||||||||||
Long-term debt | — | 2,529 | 167 | — | 2,696 | ||||||||||||
Intercompany loans payable | 4 | 8,356 | 2,791 | (11,151 | ) | — | |||||||||||
Long-term pension and postretirement liabilities | — | — | 1,353 | — | 1,353 | ||||||||||||
Deferred income taxes | — | — | 448 | — | 448 | ||||||||||||
Income taxes | — | — | 2,311 | — | 2,311 | ||||||||||||
Other liabilities | — | — | 517 | — | 517 | ||||||||||||
Total Liabilities | 245 | 11,969 | 10,311 | (11,196 | ) | 11,329 | |||||||||||
Total Equity | 7,977 | 8,192 | 17,341 | (25,533 | ) | 7,977 | |||||||||||
Total Liabilities and Equity | $ | 8,222 | $ | 20,161 | $ | 27,652 | $ | (36,729 | ) | $ | 19,306 | ||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Fiscal Year Ended September 27, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by continuing operating activities | $ | 3,621 | $ | 1,972 | $ | 2,331 | $ | (5,876 | ) | $ | 2,048 | ||||||
Net cash used in discontinued operating activities | — | — | (2 | ) | — | (2 | ) | ||||||||||
Net cash provided by operating activities | 3,621 | 1,972 | 2,329 | (5,876 | ) | 2,046 | |||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (615 | ) | — | (615 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | 1 | — | 38 | — | 39 | ||||||||||||
Acquisition of business, net of cash acquired | — | — | (6 | ) | — | (6 | ) | ||||||||||
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | — | — | 14 | — | 14 | ||||||||||||
Intercompany distributions(1) | — | 1,100 | — | (1,100 | ) | ||||||||||||
Change in intercompany loans | — | 1,566 | — | (1,566 | ) | — | |||||||||||
Other | (3 | ) | — | 26 | — | 23 | |||||||||||
Net cash provided by (used in) investing activities | (2 | ) | 2,666 | (543 | ) | (2,666 | ) | (545 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(2) | (826 | ) | (174 | ) | 1,000 | — | — | ||||||||||
Net increase in commercial paper | — | 50 | — | — | 50 | ||||||||||||
Repayment of long-term debt | — | (714 | ) | (1 | ) | — | (715 | ) | |||||||||
Proceeds from exercise of share options | — | — | 214 | — | 214 | ||||||||||||
Repurchase of common shares | (602 | ) | — | (242 | ) | — | (844 | ) | |||||||||
Payment of common share dividends and cash distributions to shareholders | (391 | ) | — | 7 | — | (384 | ) | ||||||||||
Intercompany distributions(1) | — | (3,800 | ) | (3,176 | ) | 6,976 | — | ||||||||||
Loan activity with parent | (1,800 | ) | — | 234 | 1,566 | — | |||||||||||
Other | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net cash used in continuing financing activities | (3,619 | ) | (4,638 | ) | (1,965 | ) | 8,542 | (1,680 | ) | ||||||||
Net cash provided by discontinued financing activities | — | — | 2 | — | 2 | ||||||||||||
Net cash used in financing activities | (3,619 | ) | (4,638 | ) | (1,963 | ) | 8,542 | (1,678 | ) | ||||||||
Effect of currency translation on cash | — | — | (9 | ) | — | (9 | ) | ||||||||||
Net decrease in cash and cash equivalents | — | — | (186 | ) | — | (186 | ) | ||||||||||
Cash and cash equivalents at beginning of fiscal year | — | — | 1,589 | — | 1,589 | ||||||||||||
Cash and cash equivalents at end of fiscal year | $ | — | $ | — | $ | 1,403 | $ | — | $ | 1,403 | |||||||
-1 | |||||||||||||||||
During fiscal 2013, other subsidiaries made distributions to TEGSA in the amount of $3,176 million and TEGSA made distributions to TE Connectivity Ltd. of $3,800 million. Cash flows are presented based upon the nature of the distributions. | |||||||||||||||||
-2 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Fiscal Year Ended September 28, 2012 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by (used in) continuing operating activities | $ | (97 | ) | $ | 171 | $ | 2,098 | $ | (284 | ) | $ | 1,888 | |||||
Net cash provided by discontinued operating activities | — | — | 59 | — | 59 | ||||||||||||
Net cash provided by (used in) operating activities | (97 | ) | 171 | 2,157 | (284 | ) | 1,947 | ||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (533 | ) | — | (533 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | 7 | — | 16 | — | 23 | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (1,384 | ) | — | (1,384 | ) | ||||||||||
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | — | — | 394 | — | 394 | ||||||||||||
Change in intercompany loans | (22 | ) | 2,160 | — | (2,138 | ) | — | ||||||||||
Other | — | — | (9 | ) | — | (9 | ) | ||||||||||
Net cash provided by (used in) continuing investing activities | (15 | ) | 2,160 | (1,516 | ) | (2,138 | ) | (1,509 | ) | ||||||||
Net cash used in discontinued investing activities | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net cash provided by (used in) investing activities | (15 | ) | 2,160 | (1,517 | ) | (2,138 | ) | (1,510 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(1) | 639 | (3,371 | ) | 2,732 | — | — | |||||||||||
Net increase in commercial paper | — | 300 | — | — | 300 | ||||||||||||
Proceeds from long-term debt | — | 748 | — | — | 748 | ||||||||||||
Repayment of long-term debt | — | — | (642 | ) | — | (642 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 60 | — | 60 | ||||||||||||
Repurchase of common shares | (185 | ) | — | — | — | (185 | ) | ||||||||||
Payment of common share dividends and cash distributions to shareholders | (342 | ) | — | 10 | — | (332 | ) | ||||||||||
Intercompany distributions | — | — | (284 | ) | 284 | — | |||||||||||
Loan activity with parent | — | — | (2,138 | ) | 2,138 | — | |||||||||||
Other | — | (8 | ) | 52 | — | 44 | |||||||||||
Net cash provided by (used in) continuing financing activities | 112 | (2,331 | ) | (210 | ) | 2,422 | (7 | ) | |||||||||
Net cash used in discontinued financing activities | — | — | (58 | ) | — | (58 | ) | ||||||||||
Net cash provided by (used in) financing activities | 112 | (2,331 | ) | (268 | ) | 2,422 | (65 | ) | |||||||||
Effect of currency translation on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net increase in cash and cash equivalents | — | — | 371 | — | 371 | ||||||||||||
Cash and cash equivalents at beginning of fiscal year | — | — | 1,218 | — | 1,218 | ||||||||||||
Cash and cash equivalents at end of fiscal year | $ | — | $ | — | $ | 1,589 | $ | — | $ | 1,589 | |||||||
-1 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Fiscal Year Ended September 30, 2011 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by (used in) continuing operating activities(1) | $ | 3,100 | $ | (151 | ) | $ | 2,073 | $ | (3,300 | ) | $ | 1,722 | |||||
Net cash provided by discontinued operating activities | — | — | 57 | — | 57 | ||||||||||||
Net cash provided by (used in) operating activities | 3,100 | (151 | ) | 2,130 | (3,300 | ) | 1,779 | ||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (574 | ) | — | (574 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | — | — | 65 | — | 65 | ||||||||||||
Proceeds from sale of intangible assets | — | — | 68 | — | 68 | ||||||||||||
Proceeds from sale of short-term investments | — | — | 155 | — | 155 | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (731 | ) | — | (731 | ) | ||||||||||
Change in intercompany loans | 9 | 4,418 | — | (4,427 | ) | — | |||||||||||
Other | — | — | (8 | ) | — | (8 | ) | ||||||||||
Net cash provided by (used in) continuing investing activities | 9 | 4,418 | (1,025 | ) | (4,427 | ) | (1,025 | ) | |||||||||
Net cash used in discontinued investing activities | — | — | (18 | ) | — | (18 | ) | ||||||||||
Net cash provided by (used in) investing activities | 9 | 4,418 | (1,043 | ) | (4,427 | ) | (1,043 | ) | |||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(2) | (1,936 | ) | (1,116 | ) | 3,052 | — | — | ||||||||||
Net decrease in commercial paper | — | (100 | ) | — | — | (100 | ) | ||||||||||
Proceeds from long-term debt | — | 249 | — | — | 249 | ||||||||||||
Repayment of long-term debt | — | — | (565 | ) | — | (565 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 80 | — | 80 | ||||||||||||
Repurchase of common shares | (865 | ) | — | — | — | (865 | ) | ||||||||||
Payment of common share dividends and cash distributions to shareholders | (308 | ) | — | 12 | — | (296 | ) | ||||||||||
Intercompany distributions(1) | — | (3,300 | ) | — | 3,300 | — | |||||||||||
Loan activity with parent | — | — | (4,427 | ) | 4,427 | — | |||||||||||
Other | — | — | 23 | — | 23 | ||||||||||||
Net cash used in continuing financing activities | (3,109 | ) | (4,267 | ) | (1,825 | ) | 7,727 | (1,474 | ) | ||||||||
Net cash used in discontinued financing activities | — | — | (38 | ) | — | (38 | ) | ||||||||||
Net cash used in financing activities | (3,109 | ) | (4,267 | ) | (1,863 | ) | 7,727 | (1,512 | ) | ||||||||
Effect of currency translation on cash | — | — | 5 | — | 5 | ||||||||||||
Net decrease in cash and cash equivalents | — | — | (771 | ) | — | (771 | ) | ||||||||||
Less: net increase in cash and cash equivalents related to discontinued operations | — | — | (1 | ) | — | (1 | ) | ||||||||||
Cash and cash equivalents at beginning of fiscal year | — | — | 1,990 | — | 1,990 | ||||||||||||
Cash and cash equivalents at end of fiscal year | $ | — | $ | — | $ | 1,218 | $ | — | $ | 1,218 | |||||||
-1 | |||||||||||||||||
During fiscal 2011, TEGSA made a $3,300 million distribution to TE Connectivity Ltd. | |||||||||||||||||
-2 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Disclosures_Required_by_Swiss_
Disclosures Required by Swiss Law | 12 Months Ended |
Sep. 27, 2013 | |
Disclosures Required by Swiss Law | ' |
Disclosures Required by Swiss Law | ' |
27. Disclosures Required by Swiss Law | |
We are subject to statutory reporting requirements in Switzerland. The following disclosures are presented in accordance with, and are based on definitions contained in, the Swiss Code of Obligations. | |
Personnel Expenses | |
Total personnel expenses were $3,967 million and $3,876 million in fiscal 2013 and 2012, respectively. | |
Fire Insurance Value | |
The fire insurance values of property, plant, and equipment were $11,641 million and $11,555 million at fiscal year end 2013 and 2012, respectively. | |
Risk Assessment | |
Our board of directors is responsible for appraising our major risks and overseeing that appropriate risk management and control procedures are in place. The audit committee of the board meets to review and discuss, as determined to be appropriate, our major financial and accounting risk exposures and related policies and practices with management, the internal auditor, and the independent registered public accountants to assess and control such exposures, and assist the board in fulfilling its oversight responsibilities regarding our policies and guidelines with respect to risk assessment and risk management. | |
Our risk assessment process was in place during fiscal 2013 and 2012 and followed by the board of directors. | |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Fiscal Years Ended September 27, 2013, September 28, 2012, and September 30, 2011 | |||||||||||||||||
Description | Balance at | Additions | Acquisitions, | Deductions | Balance at | ||||||||||||
Beginning of Year | Charged to | Divestitures, | End of Year | ||||||||||||||
Costs and | and Other | ||||||||||||||||
Expenses | |||||||||||||||||
(in millions) | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||
Allowance for doubtful accounts receivable | $ | 41 | $ | 11 | $ | — | $ | (4 | ) | $ | 48 | ||||||
Valuation allowance on deferred tax assets | 1,719 | 323 | — | (226 | ) | 1,816 | |||||||||||
Fiscal 2012 | |||||||||||||||||
Allowance for doubtful accounts receivable | $ | 38 | $ | 7 | $ | 2 | $ | (6 | ) | $ | 41 | ||||||
Valuation allowance on deferred tax assets | 1,921 | 54 | 31 | (287 | ) | 1,719 | |||||||||||
Fiscal 2011 | |||||||||||||||||
Allowance for doubtful accounts receivable | $ | 43 | $ | (2 | ) | $ | 1 | $ | (4 | ) | $ | 38 | |||||
Valuation allowance on deferred tax assets | 2,231 | 50 | 260 | (620 | ) | 1,921 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 27, 2013 | |
Summary of Significant Accounting Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
We consolidate entities in which we own or control more than fifty percent of the voting shares or otherwise have the ability to control through similar rights. All intercompany transactions have been eliminated. The results of companies acquired or disposed of are included on the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. | |
Revenue Recognition | ' |
Revenue Recognition | |
Our revenues are generated principally from the sale of our products. Revenue from the sale of products is recognized at the time title and the risks and rewards of ownership pass to the customer. This generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured. For those items where title has not yet transferred, we have deferred the recognition of revenue. | |
Contract revenues for construction related projects, which are generated in the Network Solutions segment, are recorded primarily using the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related cost to complete. Percentage-of-completion is measured based on the ratio of actual costs incurred to total estimated costs. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the current period. Provisions for anticipated losses are made in the period in which they first become determinable. In addition, provisions for credit losses related to construction related projects are recorded as reductions of revenue in the period in which they first become determinable. | |
We generally warrant that our products will conform to our or mutually agreed to specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts or a refund or credit of the price of the defective product. We accept returned goods only when the customer makes a verified claim and we have authorized the return. Returns result primarily from defective products or shipping discrepancies. A reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of sales. | |
Additionally, certain of our long-term contracts in the Network Solutions segment have warranty obligations. Estimated warranty costs for each contract are determined based on the contract terms and technology-specific considerations. These costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting. | |
We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. A reserve for estimated returns and scrap allowances is established at the time of the sale, based on a fixed percentage of sales to distributors authorized and agreed to by us, and is recorded as a reduction of sales. | |
Other allowances include customer quantity and price discrepancies. A reserve for other allowances is generally established at the time of sale based on historical experience and is recorded as a reduction of sales. We believe we can reasonably and reliably estimate the amounts of future allowances. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
All highly liquid investments with maturities of three months or less from the time of purchase are considered to be cash equivalents. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
The allowance for doubtful accounts receivable reflects the best estimate of probable losses inherent in our outstanding receivables after consideration of aging, known troubled accounts, and other currently available information. | |
Inventories | ' |
Inventories | |
Inventories are recorded at the lower of cost or market value using the first-in, first-out cost method, except for inventoried costs incurred in the performance of long-term contracts primarily by the Network Solutions segment. | |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | |
Property, plant, and equipment is recorded at cost less accumulated depreciation. Maintenance and repair expenditures are charged to expense when incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are 10 to 20 years for land improvements, 5 to 40 years for buildings and improvements, and 1 to 15 years for machinery and equipment. | |
We periodically evaluate, when events and circumstances warrant, the net realizable value of long-lived assets, including property, plant, and equipment and amortizable intangible assets, relying on a number of factors including operating results, business plans, economic projections, and anticipated future cash flows. When indicators of potential impairment are present, the carrying values of the asset group are evaluated in relation to the operating performance and estimated future undiscounted cash flows of the underlying asset group. Impairment of the carrying value of an asset group is recognized whenever anticipated future undiscounted cash flows from an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk. | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets | |
Acquired intangible assets include both indeterminable-lived residual goodwill and determinable-lived identifiable intangible assets. Intangible assets with a determinable life include primarily intellectual property, consisting of patents, trademarks, and unpatented technology, as well as customer relationships. Estimates of recoverability range from 1 to 50 years and are generally amortized on a straight-line basis. See Note 9 for additional information regarding intangible assets. An evaluation of the remaining useful life of determinable-lived intangible assets is performed on a periodic basis and when events and circumstances warrant an evaluation. We assess determinable-lived intangible assets for impairment consistent with our policy for assessing other long-lived assets for impairment. Goodwill is assessed for impairment separately from determinable-lived intangible assets by comparing the carrying value of each reporting unit to its fair value on the first day of the fourth fiscal quarter of each year or whenever we believe a triggering event requiring a more frequent assessment has occurred. In assessing the existence of a triggering event, management relies on a number of reporting-unit-specific factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and market place data. There are inherent uncertainties related to these factors and management's judgment in applying these factors to the goodwill impairment analysis. | |
At fiscal year end 2013, we had eight reporting units, seven of which contained goodwill. There is one reporting unit in the Transportation Solutions segment, three reporting units in the Network Solutions segment, and two reporting units in both the Industrial Solutions and Consumer Solutions segments. See Note 8 for information regarding goodwill impairment testing. When changes occur in the composition of one or more reporting units, goodwill is reassigned to the reporting units affected based on their relative fair values. | |
When testing for goodwill impairment, we perform a step I goodwill impairment test to identify a potential impairment. In doing so, we compare the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, goodwill may be impaired and a step II goodwill impairment test is performed to measure the amount of impairment, if any. In the step II goodwill impairment test, we compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The implied fair value of goodwill is determined in a manner consistent with how goodwill is recognized in a business combination. We allocate the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. | |
Fair value estimates used in the step I goodwill impairment tests are calculated using an income approach based on the present value of future cash flows of each reporting unit. The income approach generally has been supported by guideline analyses (a market approach). These approaches incorporate a number of assumptions including future growth rates, discount rates, income tax rates, and market activity in assessing fair value and are reporting unit specific. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. | |
Research and Development | ' |
Research and Development | |
Research and development expenditures are expensed when incurred and are included in research, development, and engineering expenses in our Consolidated Statements of Operations. Research and development expenses include salaries, direct costs incurred, and building and overhead expenses. The amounts expensed in fiscal 2013, 2012, and 2011 were $576 million, $595 million, and $593 million, respectively. | |
Income Taxes | ' |
Income Taxes | |
Income taxes are computed in accordance with the provisions of Accounting Standards Codification ("ASC") 740, Income Taxes. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected on the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carryforwards using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Financial Instruments | ' |
Financial Instruments | |
Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt, and derivative financial instruments. | |
We account for derivative financial instrument contracts on our 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 currently in earnings. 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 of a cash flow hedge, including amounts excluded from the hedging relationship, are recognized currently in earnings. 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 currently in earnings. | |
We determine the fair value of our financial instruments by using methods and assumptions that are based on market conditions and risks existing at each balance sheet date. Standard market conventions are used to determine the fair value of financial instruments, including derivatives. | |
The cash flows related to derivative financial instruments are reported in the operating activities section of the Consolidated Statements of Cash Flows. | |
Our derivative financial instruments present certain market and counterparty risks. Concentration of counterparty risk is mitigated, however, as we deal 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. We are 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 September 27, 2013, we have assessed the likelihood of counterparty default as remote. We currently provide guarantees from a wholly-owned subsidiary to the counterparties to our commodity swap derivatives. The likelihood of performance on those guarantees has been assessed as remote. For all other derivative financial instruments, we are not required to provide, nor do we require counterparties to provide, collateral or other security. | |
See Note 14 for additional information regarding derivative financial instruments. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
ASC 820, Fair Value Measurements and Disclosures, specifies a fair value hierarchy based upon the observable 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: | |
• | |
Level 1. Quoted prices in active markets for identical assets and liabilities. | |
• | |
Level 2. Quoted 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. | |
• | |
Level 3. Unobservable 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. | |
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 contracts. Fair value of these assets and liabilities is determined using quoted prices on futures exchanges (level 1). | |
• | |
Interest rate swaps and swaptions. Fair value of these assets and liabilities 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 (level 2). | |
• | |
Investment swap contracts. Fair 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 equity returns as their basis (level 2). | |
• | |
Foreign currency contracts. Fair value of these assets and liabilities is determined using the market approach. Values are based on observable market transactions of spot and forward currency rates (level 2). | |
• | |
Rabbi trust assets. Rabbi trust assets are principally comprised of equity funds that are marked to fair value based on unadjusted quoted prices in active markets (level 1) and fixed income securities that are marked to fair value based on quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2). | |
Financial instruments other than derivative instruments include cash and cash equivalents, accounts receivable, accounts payable, and long-term debt. These instruments are recorded on our Consolidated Balance Sheets at book value. For cash and cash equivalents, accounts receivable, and accounts payable, we believe book value approximates fair value due to the short-term nature of these instruments. See Note 11 for disclosure of the fair value of debt. The following is a description of the valuation methodologies used for the respective financial instruments: | |
• | |
Cash and cash equivalents. Cash and cash equivalents are valued at book value, which we consider to be equivalent to unadjusted quoted prices (level 1). | |
• | |
Accounts receivable. Accounts receivable are valued based on the net value expected to be realized. The net realizable value generally represents an observable contractual agreement (level 2). | |
• | |
Accounts payable. Accounts payable are valued based on the net value expected to be paid, generally supported by an observable contractual agreement (level 2). | |
• | |
Long-term debt. The fair value of long-term debt, including both current and non-current maturities, is derived from quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2). | |
Pension and Postretirement Benefits | ' |
Pension and Postretirement Benefits | |
The funded status of our defined benefit pension and postretirement benefit plans is recognized on the Consolidated Balance Sheets and is measured as the difference between the fair value of plan assets and the benefit obligation at the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which represents the actuarial present value of benefits expected to be paid upon retirement factoring in estimated future compensation levels. For the postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of cumulative company and participant contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trustee of the funds. The benefits under pension and postretirement plans are based on various factors, such as years of service and compensation. | |
Net periodic pension benefit cost is based on the utilization of the projected unit credit method of calculation and is charged to earnings on a systematic basis over the expected average remaining service lives of current participants. | |
The measurement of benefit obligations and net periodic benefit cost is based on estimates and assumptions determined by our management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age, and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates, and mortality rates. | |
Share-Based Compensation | ' |
Share-Based Compensation | |
We determine the fair value of share awards on the date of grant. Share options are valued using the Black-Scholes-Merton valuation model; restricted share awards and performance awards are valued using our end-of-day share price on the date of grant. That fair value is expensed ratably over the expected service period, with an allowance made for estimated forfeitures based on historical employee activity. Estimates regarding the attainment of performance criteria are periodically reviewed; the cumulative impact of a change in estimate regarding the attainment of performance criteria is recorded in the period in which that change is made. See Note 22 for additional information related to share-based compensation. | |
Earnings Per Share | ' |
Earnings Per Share | |
Basic earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the basic weighted-average number of common shares outstanding. Diluted earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the weighted-average number of common shares outstanding adjusted for the potentially dilutive impact of share-based compensation arrangements. | |
Currency Translation | ' |
Currency Translation | |
For our non-U.S. Dollar functional currency subsidiaries, assets and liabilities are translated into U.S. Dollars using fiscal year end exchange rates. Sales and expenses are translated at average monthly exchange rates. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income within equity. | |
Gains and losses resulting from foreign currency transactions, which are included in earnings, were immaterial amounts in fiscal 2013 and 2011. Such gains were $18 million during fiscal 2012. | |
Restructuring Charges | ' |
Restructuring Charges | |
Restructuring activities involve employee-related termination costs, facility exit costs, and asset impairments resulting from reductions-in-force, migration of facilities or product lines from higher-cost to lower-cost countries, or consolidation of facilities within countries. We recognize termination costs based on requirements established per severance policy, government law, or previous actions. Facility exit costs generally reflect the cost to terminate a facility lease before the end of its term (measured at fair value at the time we cease using the facility) or costs that will continue to be incurred under the facility lease without future economic benefit to us. Restructuring activities often result in the disposal or abandonment of assets that require an acceleration of depreciation or impairment reflecting the excess of the assets' carrying values over fair value. | |
The recognition of restructuring costs require that we make certain judgments and estimates regarding the nature, timing, and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimated liabilities, requiring the recognition of additional restructuring costs or the reduction of liabilities already recognized. At the end of each reporting period, we evaluate the remaining accrued balances to ensure these balances are properly stated and the utilization of the reserves are for their intended purpose in accordance with developed exit plans. See Note 3 for additional information on restructuring activities. | |
Acquisitions | ' |
Acquisitions | |
We account for acquired businesses using the acquisition method of accounting. This method requires, among other things, that most assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. We allocate the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values, or as required by ASC 805, Business Combinations. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. We may engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. | |
Contingent Liabilities | ' |
Contingent Liabilities | |
We record a loss contingency when the available information indicates it is probable that we have incurred a liability and the amount of the loss is reasonably estimable. When a range of possible losses with equal likelihood exists, we record the low end of the range. The likelihood of a loss with respect to a particular contingency is often difficult to predict, and determining a meaningful estimate of the loss or a range of loss may not be practicable based on information available. In addition, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must continuously be evaluated to determine whether a loss is probable and a reasonable estimate of that loss can be made. When a loss is probable but a reasonable estimate cannot be made, or when a loss is at least reasonably possible, disclosure is provided. | |
Restructuring_and_Other_Charge1
Restructuring and Other Charges, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||||||||
Schedule of restructuring and other charges | ' | ||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Restructuring charges, net | $ | 314 | $ | 128 | $ | 136 | |||||||||||||||||
Gain on divestitures, net | (3 | ) | — | — | |||||||||||||||||||
$ | 311 | $ | 128 | $ | 136 | ||||||||||||||||||
Net restructuring charges by segment | ' | ||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 38 | $ | 18 | $ | (13 | ) | ||||||||||||||||
Network Solutions | 129 | 59 | 90 | ||||||||||||||||||||
Industrial Solutions | 61 | 28 | 24 | ||||||||||||||||||||
Consumer Solutions | 86 | 23 | 35 | ||||||||||||||||||||
Restructuring charges, net | $ | 314 | $ | 128 | $ | 136 | |||||||||||||||||
Summary of activity in restructuring reserves | ' | ||||||||||||||||||||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||||||||||
Beginning | Estimate | Payments | Items | Translation | End | ||||||||||||||||||
of Fiscal | and Other | of Fiscal | |||||||||||||||||||||
Year | Year | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fiscal 2013 Activity: | |||||||||||||||||||||||
Fiscal 2013 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 253 | $ | (8 | ) | $ | (79 | ) | $ | — | $ | 2 | $ | 168 | |||||||
Facility and other exit costs | — | 5 | — | (4 | ) | — | — | 1 | |||||||||||||||
Property, plant, and equipment | — | 58 | — | — | (58 | ) | — | — | |||||||||||||||
Total | — | 316 | (8 | ) | (83 | ) | (58 | ) | 2 | 169 | |||||||||||||
Fiscal 2012 Actions: | |||||||||||||||||||||||
Employee severance | 79 | 7 | (10 | ) | (43 | ) | — | 2 | 35 | ||||||||||||||
Facility and other exit costs | 2 | 1 | — | (3 | ) | — | — | — | |||||||||||||||
Property, plant, and equipment | — | 26 | — | — | (26 | ) | — | — | |||||||||||||||
Total | 81 | 34 | (10 | ) | (46 | ) | (26 | ) | 2 | 35 | |||||||||||||
Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 32 | — | (16 | ) | (9 | ) | — | 1 | 8 | ||||||||||||||
Facility and other exit costs | 2 | 2 | — | (2 | ) | — | — | 2 | |||||||||||||||
Total | 34 | 2 | (16 | ) | (11 | ) | — | 1 | 10 | ||||||||||||||
Pre-Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 19 | — | (5 | ) | (6 | ) | — | — | 8 | ||||||||||||||
Facility and other exit costs | 27 | 1 | — | (5 | ) | — | 1 | 24 | |||||||||||||||
Total | 46 | 1 | (5 | ) | (11 | ) | — | 1 | 32 | ||||||||||||||
Total fiscal 2013 activity | $ | 161 | $ | 353 | $ | (39 | ) | $ | (151 | ) | $ | (84 | ) | $ | 6 | $ | 246 | ||||||
Fiscal 2012 Activity: | |||||||||||||||||||||||
Fiscal 2012 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 128 | $ | (3 | ) | $ | (46 | ) | $ | — | $ | — | $ | 79 | |||||||
Facility and other exit costs | — | 3 | — | (1 | ) | — | — | 2 | |||||||||||||||
Property, plant, and equipment | — | 1 | — | — | (1 | ) | — | — | |||||||||||||||
Total | — | 132 | (3 | ) | (47 | ) | (1 | ) | — | 81 | |||||||||||||
Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 104 | 6 | (14 | ) | (61 | ) | — | (3 | ) | 32 | |||||||||||||
Facility and other exit costs | 5 | 3 | (1 | ) | (5 | ) | — | — | 2 | ||||||||||||||
Total | 109 | 9 | (15 | ) | (66 | ) | — | (3 | ) | 34 | |||||||||||||
Pre-Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 33 | 3 | (1 | ) | (15 | ) | — | (1 | ) | 19 | |||||||||||||
Facility and other exit costs | 33 | 4 | (1 | ) | (9 | ) | — | — | 27 | ||||||||||||||
Total | 66 | 7 | (2 | ) | (24 | ) | — | (1 | ) | 46 | |||||||||||||
Total fiscal 2012 activity | $ | 175 | $ | 148 | $ | (20 | ) | $ | (137 | ) | $ | (1 | ) | $ | (4 | ) | $ | 161 | |||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||||||||||
Beginning | Estimate | Payments | Items | Translation | End | ||||||||||||||||||
of Fiscal | and Other | of Fiscal | |||||||||||||||||||||
Year | Year | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fiscal 2011 Activity: | |||||||||||||||||||||||
Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 155 | $ | (3 | ) | $ | (58 | ) | $ | — | $ | 10 | $ | 104 | |||||||
Facility and other exit costs | — | 3 | — | (4 | ) | — | 6 | 5 | |||||||||||||||
Property, plant, and equipment | — | 7 | — | — | (7 | ) | — | — | |||||||||||||||
Total | — | 165 | (3 | ) | (62 | ) | (7 | ) | 16 | -1 | 109 | ||||||||||||
Pre-Fiscal 2011 Actions: | |||||||||||||||||||||||
Employee severance | 97 | 1 | (30 | ) | (38 | ) | — | 3 | 33 | ||||||||||||||
Facility and other exit costs | 48 | 7 | (6 | ) | (17 | ) | — | 1 | 33 | ||||||||||||||
Property, plant, and equipment | — | 2 | — | — | (2 | ) | — | — | |||||||||||||||
Total | 145 | 10 | (36 | ) | (55 | ) | (2 | ) | 4 | 66 | |||||||||||||
Total fiscal 2011 activity | $ | 145 | $ | 175 | $ | (39 | ) | $ | (117 | ) | $ | (9 | ) | $ | 20 | $ | 175 | ||||||
-1 | |||||||||||||||||||||||
Reflects $16 million of ADC Telecommunications, Inc. ("ADC") liabilities assumed. | |||||||||||||||||||||||
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Restructuring reserves included on Consolidated Balance Sheets | ' | ||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Year End | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Accrued and other current liabilities | $ | 168 | $ | 118 | |||||||||||||||||||
Other liabilities | 78 | 43 | |||||||||||||||||||||
Restructuring reserves | $ | 246 | $ | 161 | |||||||||||||||||||
Fiscal 2013 Actions | ' | ||||||||||||||||||||||
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Summary of charges by type | ' | ||||||||||||||||||||||
Total Expected | Charges Incurred | Remaining | |||||||||||||||||||||
Charges | Expected Charges | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 269 | $ | 245 | $ | 24 | |||||||||||||||||
Facility and other exit costs | 13 | 5 | 8 | ||||||||||||||||||||
Property, plant, and equipment | 73 | 58 | 15 | ||||||||||||||||||||
Total | $ | 355 | $ | 308 | $ | 47 | |||||||||||||||||
Summary of charges by segment | ' | ||||||||||||||||||||||
Total Expected | Charges | Remaining | |||||||||||||||||||||
Charges | Incurred | Expected Charges | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 44 | $ | 37 | $ | 7 | |||||||||||||||||
Network Solutions | 132 | 111 | 21 | ||||||||||||||||||||
Industrial Solutions | 75 | 66 | 9 | ||||||||||||||||||||
Consumer Solutions | 104 | 94 | 10 | ||||||||||||||||||||
Total | $ | 355 | $ | 308 | $ | 47 | |||||||||||||||||
Fiscal 2012 Actions | ' | ||||||||||||||||||||||
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Summary of charges by type | ' | ||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 122 | $ | (3 | ) | $ | 125 | ||||||||||||||||
Facility and other exit costs | 4 | 1 | 3 | ||||||||||||||||||||
Property, plant, and equipment | 27 | 26 | 1 | ||||||||||||||||||||
Total | $ | 153 | $ | 24 | $ | 129 | |||||||||||||||||
Summary of charges by segment | ' | ||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 30 | $ | 3 | $ | 27 | |||||||||||||||||
Network Solutions | 76 | 20 | 56 | ||||||||||||||||||||
Industrial Solutions | 29 | 3 | 26 | ||||||||||||||||||||
Consumer Solutions | 18 | (2 | ) | 20 | |||||||||||||||||||
Total | $ | 153 | $ | 24 | $ | 129 | |||||||||||||||||
Fiscal 2011 Actions | ' | ||||||||||||||||||||||
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Summary of charges by type | ' | ||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | 2011 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 128 | $ | (16 | ) | $ | (8 | ) | $ | 152 | |||||||||||||
Facility and other exit costs | 7 | 2 | 2 | 3 | |||||||||||||||||||
Property, plant, and equipment | 7 | — | — | 7 | |||||||||||||||||||
Total | $ | 142 | $ | (14 | ) | $ | (6 | ) | $ | 162 | |||||||||||||
Summary of charges by segment | ' | ||||||||||||||||||||||
Charges (Credits) | |||||||||||||||||||||||
Incurred | |||||||||||||||||||||||
Fiscal | |||||||||||||||||||||||
Total Expected | |||||||||||||||||||||||
Charges | 2013 | 2012 | 2011 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 2 | $ | — | $ | (6 | ) | $ | 8 | ||||||||||||||
Network Solutions | 89 | (2 | ) | 1 | 90 | ||||||||||||||||||
Industrial Solutions | 23 | (7 | ) | (2 | ) | 32 | |||||||||||||||||
Consumer Solutions | 28 | (5 | ) | 1 | 32 | ||||||||||||||||||
Total | $ | 142 | $ | (14 | ) | $ | (6 | ) | $ | 162 | |||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Discontinued Operations | ' | ||||||||||
Schedule of net sales, pre tax income (loss), pre tax gain (loss) on sale, and income tax (expense) benefit from discontinued operations | ' | ||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Net sales from discontinued operations | $ | — | $ | 355 | $ | 534 | |||||
Pre-tax income (loss) from discontinued operations | $ | (1 | ) | $ | 19 | $ | 54 | ||||
Pre-tax gain (loss) on sale of discontinued operations | (4 | ) | 7 | (4 | ) | ||||||
Income tax (expense) benefit | 5 | (77 | ) | (28 | ) | ||||||
Income (loss) from discontinued operations, net of income taxes | $ | — | $ | (51 | ) | $ | 22 | ||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Deutsch Group SAS and ADC Telecommunications | ' | |||||||
Business acquisition information | ' | |||||||
Pro forma financial information | ' | |||||||
Fiscal | ||||||||
2012 | 2011 | |||||||
(in millions, except | ||||||||
per share data) | ||||||||
Net sales | $ | 13,625 | $ | 14,612 | ||||
Net income attributable to TE Connectivity Ltd. | 1,194 | 1,228 | ||||||
Diluted earnings per share attributable to TE Connectivity Ltd. | $ | 2.78 | $ | 2.77 | ||||
Deutsch Group SAS | ' | |||||||
Business acquisition information | ' | |||||||
Allocation of purchase price to the fair value of identifiable assets acquired and liabilities assumed | ' | |||||||
(in millions) | ||||||||
Cash and cash equivalents | $ | 152 | ||||||
Other current assets | 330 | |||||||
Property, plant, and equipment | 131 | |||||||
Goodwill | 1,042 | |||||||
Intangible assets | 827 | |||||||
Other long-term assets | 11 | |||||||
Total assets acquired | 2,493 | |||||||
Current maturities of long-term debt | 642 | |||||||
Other current liabilities | 143 | |||||||
Deferred income taxes | 148 | |||||||
Other long-term liabilities | 24 | |||||||
Total liabilities assumed | 957 | |||||||
Net assets acquired | 1,536 | |||||||
Cash and cash equivalents acquired | (152 | ) | ||||||
Net cash paid | $ | 1,384 | ||||||
Intangible assets acquired | ' | |||||||
Amount | Weighted-Average | |||||||
Amortization | ||||||||
Period | ||||||||
(in millions) | (in years) | |||||||
Customer relationships | $ | 490 | 15 | |||||
Developed technology | 165 | 12 | ||||||
Trade names and trademarks | 150 | 20 | ||||||
Customer order backlog | 22 | < 1 | ||||||
Total | $ | 827 | 15 | |||||
ADC Telecommunications | ' | |||||||
Business acquisition information | ' | |||||||
Allocation of purchase price to the fair value of identifiable assets acquired and liabilities assumed | ' | |||||||
(in millions) | ||||||||
Cash and cash equivalents | $ | 546 | ||||||
Short-term investments | 155 | |||||||
Other current assets | 540 | |||||||
Property, plant, and equipment | 198 | |||||||
Goodwill | 366 | |||||||
Intangible assets | 308 | |||||||
Deferred income taxes | 164 | |||||||
Other long-term assets | 18 | |||||||
Total assets acquired | 2,295 | |||||||
Current maturities of long-term debt | 653 | |||||||
Other current liabilities | 260 | |||||||
Long-term pension liabilities | 74 | |||||||
Other long-term liabilities | 19 | |||||||
Total liabilities assumed | 1,006 | |||||||
Net assets acquired | 1,289 | |||||||
Amounts attributable to noncontrolling interests | (4 | ) | ||||||
Conversion of ADC Awards to TE Connectivity share awards | (22 | ) | ||||||
Cash and cash equivalents acquired | (546 | ) | ||||||
Net cash paid | $ | 717 | ||||||
Intangible assets acquired | ' | |||||||
Amount | Weighted-Average | |||||||
Amortization | ||||||||
Period | ||||||||
(in millions) | (in years) | |||||||
Customer relationships | $ | 175 | 11 | |||||
Developed technology and patents | 118 | 12 | ||||||
Customer order backlog | 11 | < 1 | ||||||
Trade names and trademarks | 4 | 1 | ||||||
Total | $ | 308 | 11 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Raw materials | $ | 258 | $ | 282 | ||||
Work in progress | 597 | 573 | ||||||
Finished goods | 870 | 896 | ||||||
Inventoried costs on long-term contracts | 37 | 57 | ||||||
Inventories | $ | 1,762 | $ | 1,808 | ||||
Property_Plant_and_Equipment_N1
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Property, Plant, and Equipment, Net | ' | |||||||
Components of net property, plant, and equipment | ' | |||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land and improvements | $ | 251 | $ | 266 | ||||
Buildings and improvements | 1,503 | 1,470 | ||||||
Machinery and equipment | 7,280 | 7,103 | ||||||
Construction in process | 485 | 462 | ||||||
Gross property, plant, and equipment | 9,519 | 9,301 | ||||||
Accumulated depreciation | (6,353 | ) | (6,088 | ) | ||||
Property, plant, and equipment, net | $ | 3,166 | $ | 3,213 | ||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Changes in the carrying amount of goodwill by segment | ' | ||||||||||||||||
Transportation | Network | Industrial | Consumer | Total | |||||||||||||
Solutions | Solutions | Solutions | Solutions | ||||||||||||||
(in millions) | |||||||||||||||||
September 30, 2011(2) | $ | 62 | $ | 989 | $ | 1,574 | $ | 663 | $ | 3,288 | |||||||
Acquisition | 730 | — | 312 | — | 1,042 | ||||||||||||
Currency translation | 1 | (8 | ) | (10 | ) | (5 | ) | (22 | ) | ||||||||
September 28, 2012(2) | 793 | 981 | 1,876 | 658 | 4,308 | ||||||||||||
Currency translation and other | 4 | (4 | ) | 13 | 5 | 18 | |||||||||||
September 27, 2013(2) | $ | 797 | $ | 977 | $ | 1,889 | $ | 663 | $ | 4,326 | |||||||
-1 | |||||||||||||||||
In connection with our change in segment structure during fiscal 2013, goodwill was re-allocated to reporting units using a relative fair value approach. See Note 23 for additional information regarding the change in our segment structure. | |||||||||||||||||
-2 | |||||||||||||||||
At fiscal year end 2013, 2012, and 2011, accumulated impairment losses for the Transportation Solutions, Network Solutions, Industrial Solutions, and Consumer Solutions segments were $2,191 million, $1,236 million, $641 million, and $607 million, respectively. | |||||||||||||||||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||
Schedule of finite-lived intangible assets | ' | |||||||||||||||||||
Fiscal Year End | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Intellectual property | $ | 1,144 | $ | (499 | ) | $ | 645 | $ | 1,146 | $ | (439 | ) | $ | 707 | ||||||
Customer relationships | 658 | (92 | ) | 566 | 655 | (44 | ) | 611 | ||||||||||||
Other | 46 | (13 | ) | 33 | 76 | (42 | ) | 34 | ||||||||||||
Total | $ | 1,848 | $ | (604 | ) | $ | 1,244 | $ | 1,877 | $ | (525 | ) | $ | 1,352 | ||||||
Schedule of finite-lived intangible assets, future amortization expense | ' | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Fiscal 2014 | $ | 111 | ||||||||||||||||||
Fiscal 2015 | 111 | |||||||||||||||||||
Fiscal 2016 | 111 | |||||||||||||||||||
Fiscal 2017 | 111 | |||||||||||||||||||
Fiscal 2018 | 110 | |||||||||||||||||||
Thereafter | 690 | |||||||||||||||||||
Total | $ | 1,244 | ||||||||||||||||||
Accrued_and_Other_Current_Liab1
Accrued and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Accrued and Other Current Liabilities | ' | |||||||
Components of accrued and other current liabilities | ' | |||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Accrued payroll and employee benefits | $ | 498 | $ | 440 | ||||
Dividends and cash distributions to shareholders payable | 206 | 178 | ||||||
Tax Sharing Agreement guarantee liabilities pursuant to ASC 460 | 185 | 14 | ||||||
Restructuring reserves | 168 | 118 | ||||||
Income taxes payable | 112 | 139 | ||||||
Deferred income taxes | 54 | 85 | ||||||
Interest payable | 51 | 72 | ||||||
Warranty liability | 21 | 31 | ||||||
Other | 467 | 499 | ||||||
Accrued and other current liabilities | $ | 1,762 | $ | 1,576 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Debt | ' | |||||||
Schedule of long-term debt instruments | ' | |||||||
Fiscal Year End | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Current maturities of long-term debt: | ||||||||
6.00% senior notes due 2012 | $ | — | $ | 714 | ||||
5.95% senior notes due 2014 | 300 | — | ||||||
Commercial paper, at a weighted-average interest rate of 0.28% | 350 | 300 | ||||||
and 0.40%, respectively | ||||||||
Other | 61 | 1 | ||||||
Total | 711 | 1,015 | ||||||
Long-term debt: | ||||||||
5.95% senior notes due 2014 | — | 300 | ||||||
1.60% senior notes due 2015 | 250 | 250 | ||||||
6.55% senior notes due 2017 | 727 | 732 | ||||||
4.875% senior notes due 2021 | 263 | 274 | ||||||
3.50% senior notes due 2022 | 498 | 498 | ||||||
7.125% senior notes due 2037 | 475 | 475 | ||||||
3.50% convertible subordinated notes due 2015 | 89 | 90 | ||||||
Other | 1 | 77 | ||||||
Total | 2,303 | 2,696 | ||||||
Total debt(1) | $ | 3,014 | $ | 3,711 | ||||
-1 | ||||||||
Senior notes are presented at face amount and, if applicable, are net of unamortized discount and the effects of interest rate swaps designated as fair value hedges. | ||||||||
Aggregate amounts of total debt maturing during the next five years and thereafter | ' | |||||||
(in millions) | ||||||||
Fiscal 2014 | $ | 711 | ||||||
Fiscal 2015 | 339 | |||||||
Fiscal 2016 | — | |||||||
Fiscal 2017 | — | |||||||
Fiscal 2018 | 727 | |||||||
Thereafter | 1,237 | |||||||
Total | $ | 3,014 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Sep. 27, 2013 | |||||
Commitments and Contingencies | ' | ||||
Schedule of minimum lease payment obligations under non-cancelable lease obligations | ' | ||||
(in millions) | |||||
Fiscal 2014 | $ | 125 | |||
Fiscal 2015 | 96 | ||||
Fiscal 2016 | 58 | ||||
Fiscal 2017 | 41 | ||||
Fiscal 2018 | 30 | ||||
Thereafter | 70 | ||||
Total | $ | 420 | |||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Financial Instruments | ' | ||||||||||||||
Summary of fair value of derivative instruments | ' | ||||||||||||||
Fiscal Year End | |||||||||||||||
2013 | 2012 | ||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | ||||||||||||
of Asset | of Liability | of Asset | of Liability | ||||||||||||
Positions(1) | Positions(2) | Positions(1) | Positions(2) | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign currency contracts(3) | $ | 1 | $ | 1 | $ | 2 | $ | 1 | |||||||
Interest rate swaps | 14 | — | 26 | — | |||||||||||
Commodity swap contracts(3) | 2 | 29 | 18 | 1 | |||||||||||
Total derivatives designated as hedging instruments | 17 | 30 | 46 | 2 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts(3) | — | 1 | 2 | 2 | |||||||||||
Investment swaps | 3 | — | 1 | — | |||||||||||
Total derivatives not designated as hedging instruments | 3 | 1 | 3 | 2 | |||||||||||
Total derivatives | $ | 20 | $ | 31 | $ | 49 | $ | 4 | |||||||
-1 | |||||||||||||||
All derivative instruments in asset positions that mature within one year of the balance sheet date are recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets and totaled $5 million and $19 million at September 27, 2013 and September 28, 2012, respectively. All derivative instruments in asset positions that mature more than one year from the balance sheet date are recorded in other assets on the Consolidated Balance Sheets and totaled $15 million and $30 million at September 27, 2013 and September 28, 2012, respectively. | |||||||||||||||
-2 | |||||||||||||||
All derivative instruments in liability positions that mature within one year of the balance sheet date are recorded in accrued and other current liabilities on the Consolidated Balance Sheets and totaled $29 million and $4 million at September 27, 2013 and September 28, 2012, respectively. All derivative instruments in liability positions that mature more than one year from the balance sheet date are recorded in other liabilities on the Consolidated Balance Sheets and totaled $2 million at September 27, 2013; there were no derivatives in other liabilities at September 28, 2012. | |||||||||||||||
-3 | |||||||||||||||
Contracts are presented gross without regard to any right of offset that exists. | |||||||||||||||
Schedule of effects of derivative instruments designated as fair value hedges on the Consolidated Statements of Operations | ' | ||||||||||||||
Gain Recognized | |||||||||||||||
Fiscal | |||||||||||||||
Derivatives Designated as Fair Value Hedges | Location | 2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||||
Interest rate swaps(1) | Interest expense | $ | 5 | $ | 7 | $ | 6 | ||||||||
-1 | |||||||||||||||
Certain interest rate swaps designated as fair value hedges were terminated in December 2008. Terminated interest rate swaps resulted in all gains presented in this table. Interest rate swaps in place at September 27, 2013 had no ineffective gain or loss recognized on the Consolidated Statements of Operations during fiscal 2013, 2012, or 2011 | |||||||||||||||
Schedule of effects of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations | ' | ||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified | Gain (Loss) Recognized | |||||||||||||
Recognized | from Accumulated | in Income (Ineffective | |||||||||||||
in OCI | OCI into Income | Portion and Amount | |||||||||||||
(Effective | (Effective Portion) | Excluded | |||||||||||||
Portion) | From Effectiveness Testing) | ||||||||||||||
Derivatives Designated as Cash Flow Hedges | Amount | Location | Amount | Location | Amount | ||||||||||
(in millions) | |||||||||||||||
Fiscal 2013: | |||||||||||||||
Foreign currency contracts | $ | (1 | ) | Cost of sales | $ | — | Cost of sales | $ | — | ||||||
Commodity swap contracts | (64 | ) | Cost of sales | (20 | ) | Cost of sales | — | ||||||||
Interest rate swaps(1) | — | Interest expense | (9 | ) | Interest expense | — | |||||||||
Total | $ | (65 | ) | $ | (29 | ) | $ | — | |||||||
Fiscal 2012: | |||||||||||||||
Foreign currency contracts | $ | — | Cost of sales | $ | (1 | ) | Cost of sales | $ | — | ||||||
Commodity swap contracts | 28 | Cost of sales | 10 | Cost of sales | — | ||||||||||
Interest rate swaps and swaptions(1) | (5 | ) | Interest expense | (10 | ) | Interest expense | — | ||||||||
Total | $ | 23 | $ | (1 | ) | $ | — | ||||||||
Fiscal 2011: | |||||||||||||||
Foreign currency contracts | $ | 1 | Cost of sales | $ | 5 | Cost of sales | $ | — | |||||||
Commodity swap contracts | 29 | Cost of sales | 42 | Cost of sales | — | ||||||||||
Interest rate swaps and swaptions(1) | (9 | ) | Interest expense | (5 | ) | Interest expense | (1 | ) | |||||||
Total | $ | 21 | $ | 42 | $ | (1 | ) | ||||||||
-1 | |||||||||||||||
As of fiscal year end 2013 and 2012, there were no outstanding interest rate swaps designated as cash flow hedges. During fiscal 2012, we terminated forward starting interest rate swaps and swaptions designated as cash flow hedges. Prior to the termination, the forward starting interest rate swaps generated losses of $3 million and $9 million in other comprehensive income related to the effective portions of the hedges during fiscal 2012 and 2011, respectively. Also during fiscal 2012, we entered into and terminated an interest rate swap designated as a cash flow hedge, recording a loss of $2 million in other comprehensive income. The forward starting interest rate swaps, subsequent to termination, and certain forward starting interest rate swaps designated as cash flow hedges that were terminated in September 2007 resulted in losses of $9 million, $10 million, and $5 million reflected in interest expense in fiscal 2013, 2012, and 2011, respectively. Swaptions terminated in fiscal 2012 resulted in losses of $1 million in interest expense in fiscal 2011 as a result of amounts excluded from the hedging relationship; losses in fiscal 2012 were insignificant. | |||||||||||||||
Schedule of effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations | ' | ||||||||||||||
Gain (Loss) Recognized | |||||||||||||||
Fiscal | |||||||||||||||
Derivatives not Designated as Hedging Instruments | Location | 2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||||
Foreign currency contracts | Selling, general, and administrative expenses | $ | (11 | ) | $ | (33 | ) | $ | 7 | ||||||
Investment swaps | Selling, general, and administrative expenses | 7 | 7 | (1 | ) | ||||||||||
Total | $ | (4 | ) | $ | (26 | ) | $ | 6 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Fair Value Measurements | ' | ||||||||||
Financial assets and liabilities recorded at fair value on a recurring basis | ' | ||||||||||
Fair Value | |||||||||||
Measurements | |||||||||||
Using Inputs | |||||||||||
Considered as | Fair Value | ||||||||||
Description | Level 1 | Level 2 | |||||||||
(in millions) | |||||||||||
September 27, 2013: | |||||||||||
Assets: | |||||||||||
Commodity swap contracts | $ | 2 | $ | — | $ | 2 | |||||
Interest rate swaps | — | 14 | 14 | ||||||||
Investment swaps | — | 3 | 3 | ||||||||
Foreign currency contracts(1) | — | 1 | 1 | ||||||||
Rabbi trust assets | 3 | 80 | 83 | ||||||||
Total assets at fair value | $ | 5 | $ | 98 | $ | 103 | |||||
Liabilities: | |||||||||||
Commodity swap contracts | $ | 29 | $ | — | $ | 29 | |||||
Foreign currency contracts(1) | — | 2 | 2 | ||||||||
Total liabilities at fair value | $ | 29 | $ | 2 | $ | 31 | |||||
September 28, 2012: | |||||||||||
Assets: | |||||||||||
Commodity swap contracts | $ | 18 | $ | — | $ | 18 | |||||
Interest rate swaps | — | 26 | 26 | ||||||||
Investment swaps | — | 1 | 1 | ||||||||
Foreign currency contracts(1) | — | 4 | 4 | ||||||||
Rabbi trust assets | 4 | 79 | 83 | ||||||||
Total assets at fair value | $ | 22 | $ | 110 | $ | 132 | |||||
Liabilities: | |||||||||||
Commodity swap contracts | $ | 1 | $ | — | $ | 1 | |||||
Foreign currency contracts(1) | — | 3 | 3 | ||||||||
Total liabilities at fair value | $ | 1 | $ | 3 | $ | 4 | |||||
-1 | |||||||||||
Contracts are presented gross without regard to any right of offset that exists. See Note 14 for a reconciliation of amounts to the Consolidated Balance Sheets. | |||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Defined Benefit Pension Plans | ' | |||||||||||||||||||||||||
Defined benefit plans and other postretirement benefit plans | ' | |||||||||||||||||||||||||
Net periodic pension benefit cost | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Service cost | $ | 6 | $ | 7 | $ | 7 | $ | 55 | $ | 51 | $ | 65 | ||||||||||||||
Interest cost | 46 | 51 | 52 | 70 | 76 | 88 | ||||||||||||||||||||
Expected return on plan assets | (60 | ) | (58 | ) | (63 | ) | (69 | ) | (54 | ) | (59 | ) | ||||||||||||||
Amortization of net actuarial loss | 36 | 42 | 35 | 33 | 29 | 41 | ||||||||||||||||||||
Other | — | (1 | ) | — | (18 | ) | (5 | ) | (4 | ) | ||||||||||||||||
Net periodic pension benefit cost | $ | 28 | $ | 41 | $ | 31 | $ | 71 | $ | 97 | $ | 131 | ||||||||||||||
Weighted-average assumptions used to determine net pension benefit cost during the fiscal year: | ||||||||||||||||||||||||||
Discount rate | 3.98 | % | 4.71 | % | 5.1 | % | 3.27 | % | 4.12 | % | 3.97 | % | ||||||||||||||
Expected return on plan assets | 6.65 | % | 7.1 | % | 7.45 | % | 6.31 | % | 5.43 | % | 5.37 | % | ||||||||||||||
Rate of compensation increase | — | % | 4 | % | 4 | % | 2.88 | % | 3.01 | % | 3.5 | % | ||||||||||||||
Changes in benefit obligation and plan assets and the net amount recognized on the Consolidated Balance Sheets | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||
Benefit obligation at beginning of fiscal year | $ | 1,177 | $ | 1,114 | $ | 2,206 | $ | 1,896 | ||||||||||||||||||
Service cost | 6 | 7 | 55 | 51 | ||||||||||||||||||||||
Interest cost | 46 | 51 | 70 | 76 | ||||||||||||||||||||||
Actuarial (gain) loss | (84 | ) | 69 | 48 | 248 | |||||||||||||||||||||
Benefits and administrative expenses paid | (69 | ) | (63 | ) | (98 | ) | (86 | ) | ||||||||||||||||||
New plans | — | — | — | 47 | ||||||||||||||||||||||
Currency translation | — | — | (74 | ) | (24 | ) | ||||||||||||||||||||
Other | (2 | ) | (1 | ) | (26 | ) | (2 | ) | ||||||||||||||||||
Benefit obligation at end of fiscal year | 1,074 | 1,177 | 2,181 | 2,206 | ||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||
Fair value of plan assets at beginning of fiscal year | 941 | 851 | 1,118 | 980 | ||||||||||||||||||||||
Actual return on plan assets | 58 | 152 | 131 | 101 | ||||||||||||||||||||||
Employer contributions | 2 | 1 | 94 | 95 | ||||||||||||||||||||||
Benefits and administrative expenses paid | (69 | ) | (63 | ) | (98 | ) | (86 | ) | ||||||||||||||||||
Currency translation | — | — | (62 | ) | 4 | |||||||||||||||||||||
Other | (1 | ) | — | 2 | 24 | |||||||||||||||||||||
Fair value of plan assets at end of fiscal year | 931 | 941 | 1,185 | 1,118 | ||||||||||||||||||||||
Funded status | $ | (143 | ) | $ | (236 | ) | $ | (996 | ) | $ | (1,088 | ) | ||||||||||||||
Amounts recognized on the Consolidated Balance Sheets: | ||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 3 | $ | — | ||||||||||||||||||
Accrued and other current liabilities | (3 | ) | (4 | ) | (20 | ) | (18 | ) | ||||||||||||||||||
Long-term pension and postretirement liabilities | (140 | ) | (232 | ) | (979 | ) | (1,070 | ) | ||||||||||||||||||
Net amount recognized | $ | (143 | ) | $ | (236 | ) | $ | (996 | ) | $ | (1,088 | ) | ||||||||||||||
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | ||||||||||||||||||||||||||
Discount rate | 4.84 | % | 3.98 | % | 3.38 | % | 3.31 | % | ||||||||||||||||||
Rate of compensation increase(1) | — | % | — | % | 2.86 | % | 2.88 | % | ||||||||||||||||||
-1 | ||||||||||||||||||||||||||
During fiscal 2012, the sole remaining active U.S. defined benefit pension plan was frozen to new benefit accruals. | ||||||||||||||||||||||||||
Pre-tax amounts recognized in accumulated other comprehensive income for all U.S. and non-U.S. defined benefit pension plans | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Change in net loss: | ||||||||||||||||||||||||||
Unrecognized net loss at beginning of fiscal year | $ | 438 | $ | 504 | $ | 705 | $ | 539 | ||||||||||||||||||
Current year change recorded in accumulated other comprehensive income | (82 | ) | (24 | ) | (80 | ) | 195 | |||||||||||||||||||
Amortization reclassified to earnings | (36 | ) | (42 | ) | (33 | ) | (29 | ) | ||||||||||||||||||
Unrecognized net loss at end of fiscal year | $ | 320 | $ | 438 | $ | 592 | $ | 705 | ||||||||||||||||||
Change in prior service credit: | ||||||||||||||||||||||||||
Unrecognized prior service credit at beginning of fiscal year | $ | — | $ | — | $ | (112 | ) | $ | (120 | ) | ||||||||||||||||
Current year change recorded in accumulated other comprehensive income | — | — | 37 | (1 | ) | |||||||||||||||||||||
Amortization reclassified to earnings | — | — | 7 | 9 | ||||||||||||||||||||||
Unrecognized prior service credit at end of fiscal year | $ | — | $ | — | $ | (68 | ) | $ | (112 | ) | ||||||||||||||||
Target weighted average asset allocation and weighted average asset allocation for U.S. and non-U.S. pension plans | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Target(1) | Fiscal | Fiscal | Target | Fiscal | Fiscal | |||||||||||||||||||||
Year End | Year End | Year End | Year End | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||||
Equity securities | 45 | % | 45 | % | 38 | % | 43 | % | 43 | % | 41 | % | ||||||||||||||
Debt securities | 55 | 55 | 62 | 33 | 35 | 37 | ||||||||||||||||||||
Insurance contracts and other investments | — | — | — | 22 | 20 | 20 | ||||||||||||||||||||
Real estate investments | — | — | — | 2 | 2 | 2 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
-1 | ||||||||||||||||||||||||||
Based on our Pension Act Funded Status as of September 27, 2013, equity securities of the U.S. plans' master trust cannot exceed 45%. | ||||||||||||||||||||||||||
Expected future benefit payments | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Fiscal 2014 | $ | 68 | $ | 86 | ||||||||||||||||||||||
Fiscal 2015 | 66 | 77 | ||||||||||||||||||||||||
Fiscal 2016 | 66 | 80 | ||||||||||||||||||||||||
Fiscal 2017 | 67 | 82 | ||||||||||||||||||||||||
Fiscal 2018 | 68 | 87 | ||||||||||||||||||||||||
Fiscal 2019-2023 | 360 | 508 | ||||||||||||||||||||||||
Accumulated benefit obligation and fair value of plan assets for U.S. and non-U.S. pension plans with accumulated benefit obligations in excess of plan assets | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Fiscal Year End | Fiscal Year End | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 1,074 | $ | 1,177 | $ | 2,021 | $ | 2,004 | ||||||||||||||||||
Pension plans with accumulated benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||
Accumulated benefit obligation | 1,074 | 1,177 | 1,930 | 1,916 | ||||||||||||||||||||||
Fair value of plan assets | 931 | 941 | 1,072 | 1,012 | ||||||||||||||||||||||
Pension plans with projected benefit obligations in excess of plan assets: | ||||||||||||||||||||||||||
Projected benefit obligation | 1,074 | 1,177 | 2,120 | 2,206 | ||||||||||||||||||||||
Fair value of plan assets | 931 | 941 | 1,122 | 1,118 | ||||||||||||||||||||||
Defined benefit pension plans' asset categories and associated fair value | ' | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
September 27, 2013(1): | ||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
U.S. equity securities(2) | $ | 237 | $ | — | $ | — | $ | 237 | $ | 57 | $ | — | $ | — | $ | 57 | ||||||||||
Non-U.S. equity securities(2) | 179 | — | — | 179 | 95 | — | — | 95 | ||||||||||||||||||
Commingled equity funds(3) | — | — | — | — | — | 362 | — | 362 | ||||||||||||||||||
Fixed income: | ||||||||||||||||||||||||||
Government bonds(4) | — | 77 | — | 77 | — | 143 | — | 143 | ||||||||||||||||||
Corporate bonds(5) | — | 413 | — | 413 | — | 119 | — | 119 | ||||||||||||||||||
Commingled bond funds(6) | — | — | — | — | — | 217 | — | 217 | ||||||||||||||||||
Other(7) | — | 14 | — | 14 | 1 | 90 | 72 | 163 | ||||||||||||||||||
Subtotal | $ | 416 | $ | 504 | $ | — | 920 | $ | 153 | $ | 931 | $ | 72 | 1,156 | ||||||||||||
Items to reconcile to fair value of plan assets(8) | 11 | 29 | ||||||||||||||||||||||||
Fair value of plan assets | $ | 931 | $ | 1,185 | ||||||||||||||||||||||
September 28, 2012(1): | ||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
U.S. equity securities(2) | $ | 176 | $ | — | $ | — | $ | 176 | $ | 52 | $ | — | $ | — | $ | 52 | ||||||||||
Non-U.S. equity securities(2) | 165 | — | — | 165 | 81 | — | — | 81 | ||||||||||||||||||
Commingled equity funds(3) | — | — | — | — | — | 287 | — | 287 | ||||||||||||||||||
Fixed income: | ||||||||||||||||||||||||||
Government bonds(4) | — | 89 | — | 89 | — | 186 | — | 186 | ||||||||||||||||||
Corporate bonds(5) | — | 488 | — | 488 | — | 123 | — | 123 | ||||||||||||||||||
Commingled bond funds(6) | — | — | — | — | — | 155 | — | 155 | ||||||||||||||||||
Other(7) | — | 14 | — | 14 | 1 | 145 | 67 | 213 | ||||||||||||||||||
Subtotal | $ | 341 | $ | 591 | $ | — | 932 | $ | 134 | $ | 896 | $ | 67 | 1,097 | ||||||||||||
Items to reconcile to fair value of plan assets(8) | 9 | 21 | ||||||||||||||||||||||||
Fair value of plan assets | $ | 941 | $ | 1,118 | ||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||
During fiscal 2013, we corrected the fiscal 2012 presentation of assets held by non-U.S. plans by reclassifying $102 million of non-U.S. securities classified as level 1 within the fair value hierarchy as of September 28, 2012 to level 2, and changed certain non-U.S. asset categorizations. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
U.S. and non-U.S. equity securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Commingled equity funds are pooled investments, including common/collective trusts, in equity-type securities. Fair value, as determined by the custodian of a fund on a net asset value ("NAV") basis, is calculated as the closing price of the underlying investments (an observable market condition) less fund liabilities, divided by the number of shares of the fund outstanding. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
Government bonds are marked to fair value based on market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves or quoted market prices from markets that are not as actively traded as equity markets. | ||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||
Corporate bonds are marked to fair value based on market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves or quoted market prices from markets that are not as actively traded as equity markets. | ||||||||||||||||||||||||||
-6 | ||||||||||||||||||||||||||
Commingled bond funds are pooled investments, including common/collective trusts, in debt-type securities. Fair value, as determined by the custodian of a fund on a NAV basis, is calculated as the closing price of the underlying investments (an observable market condition) less fund liabilities, divided by the number of shares of the fund outstanding. | ||||||||||||||||||||||||||
-7 | ||||||||||||||||||||||||||
Other investments are comprised of insurance contracts, derivatives, short-term investments, structured products such as collateralized obligations and mortgage- and asset-backed securities, real estate investments, and hedge funds. Insurance contracts are valued using cash surrender value, or face value of the contract if a cash surrender value is unavailable (level 2). These values represent the amount that the plan would receive on termination of the underlying contract. Derivatives, short-term investments, and structured products are marked to fair value using models that are supported by observable market based data (level 2). Real estate investments include investments in commingled real estate funds. The investments are valued at their net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). Hedge funds are valued at their net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). | ||||||||||||||||||||||||||
-8 | ||||||||||||||||||||||||||
Items to reconcile to fair value of plan assets include amounts receivable for securities sold, amounts payable for securities purchased, and any cash balances, considered to be carried at book value, that are held in the plans. | ||||||||||||||||||||||||||
Changes in the fair value of Level 3 assets | ' | |||||||||||||||||||||||||
Real Estate | Hedge Funds | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 20 | $ | 34 | ||||||||||||||||||||||
Return on assets held at end of fiscal year | (1 | ) | 2 | |||||||||||||||||||||||
Purchases, sales, and settlements, net | — | 12 | ||||||||||||||||||||||||
Balance at September 28, 2012 | 19 | 48 | ||||||||||||||||||||||||
Return on assets held at end of fiscal year | (2 | ) | 4 | |||||||||||||||||||||||
Purchases, sales, and settlements, net | 3 | — | ||||||||||||||||||||||||
Balance at September 27, 2013 | $ | 20 | $ | 52 | ||||||||||||||||||||||
Postretirement Benefit Plans | ' | |||||||||||||||||||||||||
Defined benefit plans and other postretirement benefit plans | ' | |||||||||||||||||||||||||
Schedule of weighted average assumptions used to determine net postretirement benefit cost | ' | |||||||||||||||||||||||||
Fiscal | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Discount rate | 3.85 | % | 5 | % | 4.95 | % | ||||||||||||||||||||
Rate of compensation increase | 3.35 | % | 4 | % | 4 | % | ||||||||||||||||||||
Schedule of weighted average assumptions used to determine postretirement benefit obligation | ' | |||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||
End | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Discount rate | 4.85 | % | 3.85 | % | ||||||||||||||||||||||
Rate of compensation increase | 4 | % | 3.35 | % | ||||||||||||||||||||||
Assumed health care cost trend rates | ' | |||||||||||||||||||||||||
Fiscal Year End | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Health care cost trend rate assumed for next fiscal year | 7.33 | % | 7.51 | % | ||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline | 4.5 | % | 4.5 | % | ||||||||||||||||||||||
Fiscal year the ultimate trend rate is achieved | 2029 | 2029 | ||||||||||||||||||||||||
Effect of a one-percentage point change in assumed health care cost trend rates | ' | |||||||||||||||||||||||||
One Percentage | One Percentage | |||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Effect on total of service and interest cost | $ | — | $ | — | ||||||||||||||||||||||
Effect on postretirement benefit obligation | 3 | (3 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Significant components of the income tax provision (benefit) | ' | ||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Current: | |||||||||||
U.S.: | |||||||||||
Federal | $ | (295 | ) | $ | 92 | $ | 50 | ||||
State | (85 | ) | 11 | 20 | |||||||
Non-U.S. | 321 | 194 | 174 | ||||||||
Current income tax provision (benefit) | (59 | ) | 297 | 244 | |||||||
Deferred: | |||||||||||
U.S.: | |||||||||||
Federal | 71 | (50 | ) | 55 | |||||||
State | (1 | ) | 4 | — | |||||||
Non-U.S. | (40 | ) | (2 | ) | 48 | ||||||
Deferred income tax provision (benefit) | 30 | (48 | ) | 103 | |||||||
Provision (benefit) for income taxes | $ | (29 | ) | $ | 249 | $ | 347 | ||||
U.S. and non-U.S. components of income from continuing operations before income taxes | ' | ||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
U.S. | $ | (238 | ) | $ | (96 | ) | $ | 134 | |||
Non-U.S. | 1,486 | 1,511 | 1,441 | ||||||||
Income from continuing operations before income taxes | $ | 1,248 | $ | 1,415 | $ | 1,575 | |||||
Reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations | ' | ||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Notional U.S. federal income tax provision at the statutory rate | $ | 437 | $ | 495 | $ | 551 | |||||
Adjustments to reconcile to the income tax provision (benefit): | |||||||||||
U.S. state income tax provision (benefit), net | (56 | ) | 10 | 13 | |||||||
Other (income) expense—Tax Sharing Agreement | 64 | (18 | ) | (9 | ) | ||||||
Tax law changes | — | 21 | (4 | ) | |||||||
Tax credits | (11 | ) | (9 | ) | (9 | ) | |||||
Non-U.S. net earnings(1) | (277 | ) | (225 | ) | (253 | ) | |||||
Nondeductible charges | 3 | 3 | 14 | ||||||||
Change in accrued income tax liabilities | (162 | ) | 95 | 30 | |||||||
Valuation allowance | (31 | ) | (107 | ) | 1 | ||||||
Other | 4 | (16 | ) | 13 | |||||||
Provision (benefit) for income taxes | $ | (29 | ) | $ | 249 | $ | 347 | ||||
-1 | |||||||||||
Excludes nondeductible charges and other items which are broken out separately in the table. | |||||||||||
Components of net deferred income tax asset | ' | ||||||||||
Fiscal Year End | |||||||||||
2013 | 2012 | ||||||||||
(in millions) | |||||||||||
Deferred tax assets: | |||||||||||
Accrued liabilities and reserves | $ | 320 | $ | 270 | |||||||
Tax loss and credit carryforwards | 3,431 | 3,382 | |||||||||
Inventories | 55 | 54 | |||||||||
Pension and postretirement benefits | 235 | 331 | |||||||||
Deferred revenue | 5 | 15 | |||||||||
Interest | 372 | 342 | |||||||||
Unrecognized income tax benefits | 364 | 469 | |||||||||
Other | 19 | 22 | |||||||||
4,801 | 4,885 | ||||||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | (778 | ) | (764 | ) | |||||||
Property, plant, and equipment | (64 | ) | (101 | ) | |||||||
Other | (38 | ) | (85 | ) | |||||||
(880 | ) | (950 | ) | ||||||||
Net deferred tax asset before valuation allowance | 3,921 | 3,935 | |||||||||
Valuation allowance | (1,816 | ) | (1,719 | ) | |||||||
Net deferred tax asset | $ | 2,105 | $ | 2,216 | |||||||
Activity of unrecognized income tax benefits | ' | ||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Balance at beginning of fiscal year | $ | 1,795 | $ | 1,783 | $ | 1,689 | |||||
Additions related to prior periods tax positions | 90 | 41 | 123 | ||||||||
Reductions related to prior periods tax positions | (271 | ) | (36 | ) | (98 | ) | |||||
Additions related to current period tax positions | 88 | 31 | 43 | ||||||||
Acquisitions | — | 7 | 45 | ||||||||
Settlements | (8 | ) | (12 | ) | (3 | ) | |||||
Reductions due to lapse of applicable statute of limitations | (74 | ) | (19 | ) | (16 | ) | |||||
Balance at end of fiscal year | $ | 1,620 | $ | 1,795 | $ | 1,783 | |||||
Tax years subject to examination in major tax jurisdictions | ' | ||||||||||
Jurisdiction | Open Years | ||||||||||
Belgium | 2011 through 2013 | ||||||||||
Brazil | 2008 through 2013 | ||||||||||
Canada | 2002 and 2005 through 2013 | ||||||||||
China | 2003 through 2013 | ||||||||||
Czech Republic | 2010 through 2013 | ||||||||||
France | 2010 through 2013 | ||||||||||
Germany | 2008 through 2013 | ||||||||||
Hong Kong | 2007 through 2013 | ||||||||||
India | 2006 through 2013 | ||||||||||
Italy | 2008 through 2013 | ||||||||||
Japan | 2007 through 2013 | ||||||||||
Korea | 2007 through 2013 | ||||||||||
Luxembourg | 2008 through 2013 | ||||||||||
Netherlands | 2008 through 2013 | ||||||||||
Portugal | 2009 through 2013 | ||||||||||
Singapore | 2006 through 2013 | ||||||||||
Spain | 2009 through 2013 | ||||||||||
Switzerland | 2011 through 2013 | ||||||||||
United Kingdom | 2011 through 2013 | ||||||||||
U.S.—federal and state and local | 1997 through 2013 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Sep. 27, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Schedule of weighted-average shares outstanding, basic and diluted | ' | ||||||||||
Fiscal | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in millions) | |||||||||||
Basic | 418 | 426 | 438 | ||||||||
Dilutive impact of share-based compensation arrangements | 5 | 4 | 5 | ||||||||
Diluted | 423 | 430 | 443 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||
Components of accumulated other comprehensive income | ' | |||||||||||||
Currency | Unrecognized | Gain (Loss) | Accumulated | |||||||||||
Translation(1) | Pension and | on Cash | Other | |||||||||||
Postretirement | Flow | Comprehensive | ||||||||||||
Benefit Costs | Hedges | Income | ||||||||||||
(in millions) | ||||||||||||||
Balance at September 24, 2010 | $ | 1,040 | $ | (764 | ) | $ | (30 | ) | $ | 246 | ||||
Pre-tax current period change | 50 | 238 | (21 | ) | 267 | |||||||||
Income tax (expense) benefit | — | (86 | ) | 1 | (85 | ) | ||||||||
Balance at September 30, 2011 | 1,090 | (612 | ) | (50 | ) | 428 | ||||||||
Pre-tax current period change | (131 | ) | (114 | ) | 24 | (221 | ) | |||||||
Income tax (expense) benefit | — | 26 | (4 | ) | 22 | |||||||||
Balance at September 28, 2012 | 959 | (700 | ) | (30 | ) | 229 | ||||||||
Pre-tax current period change | (28 | ) | 204 | (36 | ) | 140 | ||||||||
Income tax (expense) benefit | — | (73 | ) | 7 | (66 | ) | ||||||||
Balance at September 27, 2013 | $ | 931 | $ | (569 | ) | $ | (59 | ) | $ | 303 | ||||
-1 | ||||||||||||||
Includes hedges of net investment foreign exchange gains or losses which offset foreign exchange gains or losses attributable to the translation of the net investments. | ||||||||||||||
Share_Plans_Tables
Share Plans (Tables) | 12 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Share Plans | ' | |||||||||||||
Summary of restricted share award activity | ' | |||||||||||||
Shares | Weighted-Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested at September 28, 2012 | 4,585,994 | $ | 30.09 | |||||||||||
Granted | 1,764,936 | 34.69 | ||||||||||||
Vested | (1,906,890 | ) | 26.65 | |||||||||||
Forfeited | (460,115 | ) | 32.5 | |||||||||||
Non-vested at September 27, 2013 | 3,983,925 | $ | 33.5 | |||||||||||
Summary of performance shares award activity | ' | |||||||||||||
Shares | Weighted-Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding at September 28, 2012 | — | $ | — | |||||||||||
Granted | 327,226 | 34.16 | ||||||||||||
Forfeited | (15,807 | ) | 34.05 | |||||||||||
Outstanding at September 27, 2013 | 311,419 | $ | 34.17 | |||||||||||
Summary of share option award activity | ' | |||||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Exercise | Remaining | Intrinsic | ||||||||||||
Price | Contractual | Value | ||||||||||||
Term | ||||||||||||||
(in years) | (in millions) | |||||||||||||
Outstanding at September 28, 2012 | 20,552,689 | $ | 32.25 | |||||||||||
Granted | 2,854,600 | 34.27 | ||||||||||||
Exercised | (6,507,750 | ) | 32.79 | |||||||||||
Expired | (423,261 | ) | 39.77 | |||||||||||
Forfeited | (644,414 | ) | 32.44 | |||||||||||
Outstanding at September 27, 2013 | 15,831,864 | $ | 32.18 | 5.9 | $ | 314 | ||||||||
Vested and expected to vest at September 27, 2013 | 15,393,747 | $ | 32.15 | 5.9 | $ | 306 | ||||||||
Exercisable at September 27, 2013 | 9,088,414 | $ | 31.39 | 4.3 | $ | 188 | ||||||||
Weighted average grant-date fair value of options granted and the weighted average assumptions | ' | |||||||||||||
Fiscal | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Weighted-average grant-date fair value | $ | 8.62 | $ | 9.49 | $ | 9.13 | ||||||||
Assumptions: | ||||||||||||||
Expected share price volatility | 34 | % | 36 | % | 36 | % | ||||||||
Risk free interest rate | 0.9 | % | 1.3 | % | 1.2 | % | ||||||||
Expected annual dividend per share | $ | 0.84 | $ | 0.84 | $ | 0.72 | ||||||||
Expected life of options (in years) | 6 | 6 | 5.1 |
Segment_and_Geographic_Data_Ta
Segment and Geographic Data (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Segment and Geographic Data | ' | |||||||||||||||||||
Net sales and operating income by business segment | ' | |||||||||||||||||||
Net Sales | Operating Income | |||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Transportation Solutions | $ | 5,485 | $ | 5,128 | $ | 4,912 | $ | 972 | $ | 754 | $ | 729 | ||||||||
Network Solutions | 3,066 | 3,310 | 3,671 | 136 | 247 | 300 | ||||||||||||||
Industrial Solutions | 3,007 | 2,987 | 3,144 | 359 | 378 | 477 | ||||||||||||||
Consumer Solutions | 1,722 | 1,857 | 2,051 | 89 | 139 | 181 | ||||||||||||||
Total | $ | 13,280 | $ | 13,282 | $ | 13,778 | $ | 1,556 | $ | 1,518 | $ | 1,687 | ||||||||
Depreciation and amortization and capital expenditures by segment | ' | |||||||||||||||||||
Depreciation and | Capital Expenditures | |||||||||||||||||||
Amortization | ||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Transportation Solutions | $ | 296 | $ | 271 | $ | 234 | $ | 325 | $ | 288 | $ | 264 | ||||||||
Network Solutions | 139 | 164 | 158 | 86 | 104 | 119 | ||||||||||||||
Industrial Solutions | 92 | 86 | 86 | 109 | 67 | 90 | ||||||||||||||
Consumer Solutions | 80 | 88 | 86 | 95 | 74 | 101 | ||||||||||||||
Total | $ | 607 | $ | 609 | $ | 564 | $ | 615 | $ | 533 | $ | 574 | ||||||||
Segment assets and a reconciliation of segment assets to total assets | ' | |||||||||||||||||||
Segment Assets | ||||||||||||||||||||
Fiscal Year End | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Transportation Solutions | $ | 2,977 | $ | 2,877 | $ | 2,732 | ||||||||||||||
Network Solutions | 1,684 | 1,857 | 1,955 | |||||||||||||||||
Industrial Solutions | 1,603 | 1,549 | 1,499 | |||||||||||||||||
Consumer Solutions | 987 | 1,081 | 1,173 | |||||||||||||||||
Total segment assets(1) | 7,251 | 7,364 | 7,359 | |||||||||||||||||
Other current assets | 2,224 | 2,352 | 2,762 | |||||||||||||||||
Other non-current assets | 8,986 | 9,590 | 7,602 | |||||||||||||||||
Total assets | $ | 18,461 | $ | 19,306 | $ | 17,723 | ||||||||||||||
-1 | ||||||||||||||||||||
Segment assets are comprised of accounts receivable, inventories, and property, plant, and equipment. | ||||||||||||||||||||
Net sales and net property, plant, and equipment by geographic region | ' | |||||||||||||||||||
Net Sales(1) | Property, Plant, | |||||||||||||||||||
and Equipment, Net | ||||||||||||||||||||
Fiscal | Fiscal Year End | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Americas: | ||||||||||||||||||||
U.S. | $ | 3,811 | $ | 3,664 | $ | 3,657 | $ | 958 | $ | 1,042 | $ | 968 | ||||||||
Other Americas | 566 | 624 | 652 | 80 | 84 | 65 | ||||||||||||||
Total Americas | 4,377 | 4,288 | 4,309 | 1,038 | 1,126 | 1,033 | ||||||||||||||
Europe/Middle East/Africa: | ||||||||||||||||||||
Switzerland | 3,689 | 3,719 | 3,870 | 54 | 52 | 59 | ||||||||||||||
Germany | 123 | 120 | 426 | 356 | 339 | 381 | ||||||||||||||
Other Europe/Middle East/Africa | 750 | 663 | 662 | 702 | 692 | 677 | ||||||||||||||
Total Europe/Middle East/Africa | 4,562 | 4,502 | 4,958 | 1,112 | 1,083 | 1,117 | ||||||||||||||
Asia–Pacific: | ||||||||||||||||||||
China | 2,197 | 2,159 | 2,172 | 516 | 432 | 395 | ||||||||||||||
Other Asia–Pacific | 2,144 | 2,333 | 2,339 | 500 | 572 | 595 | ||||||||||||||
Total Asia–Pacific | 4,341 | 4,492 | 4,511 | 1,016 | 1,004 | 990 | ||||||||||||||
Total | $ | 13,280 | $ | 13,282 | $ | 13,778 | $ | 3,166 | $ | 3,213 | $ | 3,140 | ||||||||
-1 | ||||||||||||||||||||
Net sales to external customers is attributed to individual countries based on the legal entity that records the sale. | ||||||||||||||||||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||||||||||||
Fiscal | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||
Quarter(1) | Quarter | Quarter | Quarter(2) | Quarter | Quarter | Quarter(3) | Quarter(4) | |||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||
Net sales | $ | 3,134 | $ | 3,265 | $ | 3,449 | $ | 3,432 | $ | 3,170 | $ | 3,249 | $ | 3,499 | $ | 3,364 | ||||||||||
Gross margin | 989 | 1,052 | 1,132 | 1,156 | 943 | 1,021 | 1,018 | 1,064 | ||||||||||||||||||
Acquisition and integration costs | 5 | 3 | 3 | 3 | 4 | 4 | 15 | 4 | ||||||||||||||||||
Restructuring and other charges, net | 92 | 81 | 67 | 71 | 18 | 32 | 36 | 42 | ||||||||||||||||||
Amounts attributable to TE Connectivity Ltd.: | ||||||||||||||||||||||||||
Income from continuing operations | 279 | 278 | 332 | 387 | 238 | 267 | 260 | 398 | ||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | (2 | ) | (1 | ) | 3 | — | 22 | (10 | ) | (61 | ) | (2 | ) | |||||||||||||
Net income | 277 | 277 | 335 | 387 | 260 | 257 | 199 | 396 | ||||||||||||||||||
Basic earnings per share attributable to TE Connectivity Ltd.: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 0.66 | $ | 0.66 | $ | 0.8 | $ | 0.94 | $ | 0.56 | $ | 0.63 | $ | 0.61 | $ | 0.93 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | 0.01 | — | 0.05 | (0.03 | ) | (0.15 | ) | — | ||||||||||||||||
Net income | 0.66 | 0.66 | 0.81 | 0.94 | 0.61 | 0.6 | 0.46 | 0.93 | ||||||||||||||||||
Diluted earnings per share attributable to TE Connectivity Ltd.: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 0.65 | $ | 0.66 | $ | 0.79 | $ | 0.92 | $ | 0.55 | $ | 0.62 | $ | 0.6 | $ | 0.93 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | 0.01 | — | 0.06 | (0.02 | ) | (0.14 | ) | (0.01 | ) | |||||||||||||||
Net income | 0.65 | 0.65 | 0.8 | 0.92 | 0.61 | 0.6 | 0.46 | 0.92 | ||||||||||||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||||||||||||
Basic | 422 | 420 | 415 | 413 | 425 | 427 | 428 | 426 | ||||||||||||||||||
Diluted | 426 | 424 | 421 | 420 | 429 | 431 | 431 | 429 | ||||||||||||||||||
-1 | ||||||||||||||||||||||||||
Results for the first quarter of fiscal 2013 include $331 million of income tax benefits associated with the effective settlement of an audit of prior year tax returns as well as the related impact of $231 million to other expense pursuant to the tax sharing agreement with Tyco International and Covidien. Results for the first quarter of fiscal 2013 also include $30 million of income tax expense related to adjustments to prior year income tax returns and the estimated impacts of certain intercompany dividends. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Results for the fourth quarter of fiscal 2013 include $63 million of income tax benefits recognized in connection with a reduction in the valuation allowance associated with certain ADC tax loss carryforwards. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Results for the third quarter of fiscal 2012 include $68 million of charges associated with the amortization of acquisition-related fair value adjustments primarily related to acquired inventories and customer order backlog associated with Deutsch. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
Results for the fourth quarter of fiscal 2012 include $107 million of income tax benefits recognized in connection with a reduction in the valuation allowance associated with tax loss carryforwards in certain non-U.S. locations. | ||||||||||||||||||||||||||
Tyco_Electronics_Group_SA_Tabl
Tyco Electronics Group S.A. (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Tyco Electronics Group S.A. | ' | ||||||||||||||||
Condensed Consolidating Statement of Operations | ' | ||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the Fiscal Year Ended September 27, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,280 | $ | — | $ | 13,280 | |||||||
Cost of sales | — | — | 8,951 | — | 8,951 | ||||||||||||
Gross margin | — | — | 4,329 | — | 4,329 | ||||||||||||
Selling, general, and administrative expenses | 156 | 3 | 1,614 | — | 1,773 | ||||||||||||
Research, development, and engineering expenses | — | — | 675 | — | 675 | ||||||||||||
Acquisition and integration costs | — | — | 14 | — | 14 | ||||||||||||
Restructuring and other charges, net | — | — | 311 | — | 311 | ||||||||||||
Operating income (loss) | (156 | ) | (3 | ) | 1,715 | — | 1,556 | ||||||||||
Interest income | — | — | 17 | — | 17 | ||||||||||||
Interest expense | — | (135 | ) | (7 | ) | — | (142 | ) | |||||||||
Other expense, net | — | — | (183 | ) | — | (183 | ) | ||||||||||
Equity in net income of subsidiaries | 1,445 | 1,533 | — | (2,978 | ) | — | |||||||||||
Intercompany interest and fees | (13 | ) | 54 | (41 | ) | — | — | ||||||||||
Income from continuing operations before income taxes | 1,276 | 1,449 | 1,501 | (2,978 | ) | 1,248 | |||||||||||
Income tax (expense) benefit | — | (4 | ) | 33 | — | 29 | |||||||||||
Net income | 1,276 | 1,445 | 1,534 | (2,978 | ) | 1,277 | |||||||||||
Less: net income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 1,276 | 1,445 | 1,533 | (2,978 | ) | 1,276 | |||||||||||
Other comprehensive income | 74 | 74 | 64 | (138 | ) | 74 | |||||||||||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 1,350 | $ | 1,519 | $ | 1,597 | $ | (3,116 | ) | $ | 1,350 | ||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the Fiscal Year Ended September 28, 2012 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,282 | $ | — | $ | 13,282 | |||||||
Cost of sales | — | — | 9,236 | — | 9,236 | ||||||||||||
Gross margin | — | — | 4,046 | — | 4,046 | ||||||||||||
Selling, general, and administrative expenses, net(1) | 102 | (122 | ) | 1,705 | — | 1,685 | |||||||||||
Research, development, and engineering expenses | — | — | 688 | — | 688 | ||||||||||||
Acquisition and integration costs | 1 | 2 | 24 | — | 27 | ||||||||||||
Restructuring and other charges, net | — | — | 128 | — | 128 | ||||||||||||
Operating income (loss) | (103 | ) | 120 | 1,501 | — | 1,518 | |||||||||||
Interest income | — | — | 23 | — | 23 | ||||||||||||
Interest expense | — | (168 | ) | (8 | ) | — | (176 | ) | |||||||||
Other income, net | — | — | 50 | — | 50 | ||||||||||||
Equity in net income of subsidiaries | 1,277 | 1,256 | — | (2,533 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (51 | ) | (51 | ) | — | 102 | — | ||||||||||
Intercompany interest and fees | (11 | ) | 69 | (58 | ) | — | — | ||||||||||
Income from continuing operations before income taxes | 1,112 | 1,226 | 1,508 | (2,431 | ) | 1,415 | |||||||||||
Income tax expense | — | — | (249 | ) | — | (249 | ) | ||||||||||
Income from continuing operations | 1,112 | 1,226 | 1,259 | (2,431 | ) | 1,166 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (51 | ) | — | (51 | ) | ||||||||||
Net income | 1,112 | 1,226 | 1,208 | (2,431 | ) | 1,115 | |||||||||||
Less: net income attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 1,112 | 1,226 | 1,205 | (2,431 | ) | 1,112 | |||||||||||
Other comprehensive loss | (199 | ) | (199 | ) | (203 | ) | 402 | (199 | ) | ||||||||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 913 | $ | 1,027 | $ | 1,002 | $ | (2,029 | ) | $ | 913 | ||||||
-1 | |||||||||||||||||
TEGSA selling, general, and administrative expenses include gains of $125 million related to intercompany transactions. These gains are offset by corresponding losses recorded by Other Subsidiaries. | |||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the Fiscal Year Ended September 30, 2011 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,778 | $ | — | $ | 13,778 | |||||||
Cost of sales | — | — | 9,507 | — | 9,507 | ||||||||||||
Gross margin | — | — | 4,271 | — | 4,271 | ||||||||||||
Selling, general, and administrative expenses | 177 | 91 | 1,460 | — | 1,728 | ||||||||||||
Research, development, and engineering expenses | — | — | 701 | — | 701 | ||||||||||||
Acquisition and integration costs | 3 | — | 16 | — | 19 | ||||||||||||
Restructuring and other charges, net | — | — | 136 | — | 136 | ||||||||||||
Operating income (loss) | (180 | ) | (91 | ) | 1,958 | — | 1,687 | ||||||||||
Interest income | — | — | 22 | — | 22 | ||||||||||||
Interest expense | — | (150 | ) | (11 | ) | — | (161 | ) | |||||||||
Other income, net | — | — | 27 | — | 27 | ||||||||||||
Equity in net income of subsidiaries | 1,422 | 1,572 | — | (2,994 | ) | — | |||||||||||
Equity in net income of subsidiaries of discontinued operations | 22 | 22 | — | (44 | ) | — | |||||||||||
Intercompany interest and fees | (19 | ) | 91 | (72 | ) | — | — | ||||||||||
Income from continuing operations before income taxes | 1,245 | 1,444 | 1,924 | (3,038 | ) | 1,575 | |||||||||||
Income tax expense | — | — | (347 | ) | — | (347 | ) | ||||||||||
Income from continuing operations | 1,245 | 1,444 | 1,577 | (3,038 | ) | 1,228 | |||||||||||
Income from discontinued operations, net of income taxes | — | — | 22 | — | 22 | ||||||||||||
Net income | 1,245 | 1,444 | 1,599 | (3,038 | ) | 1,250 | |||||||||||
Less: net income attributable to noncontrolling interests | — | — | (5 | ) | — | (5 | ) | ||||||||||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 1,245 | 1,444 | 1,594 | (3,038 | ) | 1,245 | |||||||||||
Other comprehensive income | 182 | 182 | 187 | (369 | ) | 182 | |||||||||||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 1,427 | $ | 1,626 | $ | 1,781 | $ | (3,407 | ) | $ | 1,427 | ||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of September 27, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,403 | $ | — | $ | 1,403 | |||||||
Accounts receivable, net | — | — | 2,323 | — | 2,323 | ||||||||||||
Inventories | — | — | 1,762 | — | 1,762 | ||||||||||||
Intercompany receivables | 1,823 | 222 | 255 | (2,300 | ) | — | |||||||||||
Prepaid expenses and other current assets | 6 | 1 | 480 | — | 487 | ||||||||||||
Deferred income taxes | — | — | 334 | — | 334 | ||||||||||||
Total current assets | 1,829 | 223 | 6,557 | (2,300 | ) | 6,309 | |||||||||||
Property, plant, and equipment, net | — | — | 3,166 | — | 3,166 | ||||||||||||
Goodwill | — | — | 4,326 | — | 4,326 | ||||||||||||
Intangible assets, net | — | — | 1,244 | — | 1,244 | ||||||||||||
Deferred income taxes | — | — | 2,146 | — | 2,146 | ||||||||||||
Investment in subsidiaries | 7,014 | 17,040 | — | (24,054 | ) | — | |||||||||||
Intercompany loans receivable | 18 | 2,120 | 9,489 | (11,627 | ) | — | |||||||||||
Receivable from Tyco International Ltd. and Covidien plc | — | — | 1,002 | — | 1,002 | ||||||||||||
Other assets | — | 28 | 240 | — | 268 | ||||||||||||
Total Assets | $ | 8,861 | $ | 19,411 | $ | 28,170 | $ | (37,981 | ) | $ | 18,461 | ||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 650 | $ | 61 | $ | — | $ | 711 | |||||||
Accounts payable | 1 | — | 1,382 | — | 1,383 | ||||||||||||
Accrued and other current liabilities | 213 | 49 | 1,500 | — | 1,762 | ||||||||||||
Deferred revenue | — | — | 68 | — | 68 | ||||||||||||
Intercompany payables | 256 | — | 2,044 | (2,300 | ) | — | |||||||||||
Total current liabilities | 470 | 699 | 5,055 | (2,300 | ) | 3,924 | |||||||||||
Long-term debt | — | 2,213 | 90 | — | 2,303 | ||||||||||||
Intercompany loans payable | 5 | 9,485 | 2,137 | (11,627 | ) | — | |||||||||||
Long-term pension and postretirement liabilities | — | — | 1,155 | — | 1,155 | ||||||||||||
Deferred income taxes | — | — | 321 | — | 321 | ||||||||||||
Income taxes | — | — | 1,979 | — | 1,979 | ||||||||||||
Other liabilities | — | — | 393 | — | 393 | ||||||||||||
Total Liabilities | 475 | 12,397 | 11,130 | (13,927 | ) | 10,075 | |||||||||||
Total Equity | 8,386 | 7,014 | 17,040 | (24,054 | ) | 8,386 | |||||||||||
Total Liabilities and Equity | $ | 8,861 | $ | 19,411 | $ | 28,170 | $ | (37,981 | ) | $ | 18,461 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of September 28, 2012 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,589 | $ | — | $ | 1,589 | |||||||
Accounts receivable, net | 1 | — | 2,342 | — | 2,343 | ||||||||||||
Inventories | — | — | 1,808 | — | 1,808 | ||||||||||||
Intercompany receivables | 16 | — | 29 | (45 | ) | — | |||||||||||
Prepaid expenses and other current assets | 2 | 1 | 471 | — | 474 | ||||||||||||
Deferred income taxes | — | — | 289 | — | 289 | ||||||||||||
Total current assets | 19 | 1 | 6,528 | (45 | ) | 6,503 | |||||||||||
Property, plant, and equipment, net | — | — | 3,213 | — | 3,213 | ||||||||||||
Goodwill | — | — | 4,308 | — | 4,308 | ||||||||||||
Intangible assets, net | — | — | 1,352 | — | 1,352 | ||||||||||||
Deferred income taxes | — | — | 2,460 | — | 2,460 | ||||||||||||
Investment in subsidiaries | 8,192 | 17,341 | — | (25,533 | ) | — | |||||||||||
Intercompany loans receivable | 11 | 2,779 | 8,361 | (11,151 | ) | — | |||||||||||
Receivable from Tyco International Ltd. and Covidien plc | — | — | 1,180 | — | 1,180 | ||||||||||||
Other assets | — | 40 | 250 | — | 290 | ||||||||||||
Total Assets | $ | 8,222 | $ | 20,161 | $ | 27,652 | $ | (36,729 | ) | $ | 19,306 | ||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 1,014 | $ | 1 | $ | — | $ | 1,015 | |||||||
Accounts payable | 2 | — | 1,290 | — | 1,292 | ||||||||||||
Accrued and other current liabilities | 210 | 70 | 1,296 | — | 1,576 | ||||||||||||
Deferred revenue | — | — | 121 | — | 121 | ||||||||||||
Intercompany payables | 29 | — | 16 | (45 | ) | — | |||||||||||
Total current liabilities | 241 | 1,084 | 2,724 | (45 | ) | 4,004 | |||||||||||
Long-term debt | — | 2,529 | 167 | — | 2,696 | ||||||||||||
Intercompany loans payable | 4 | 8,356 | 2,791 | (11,151 | ) | — | |||||||||||
Long-term pension and postretirement liabilities | — | — | 1,353 | — | 1,353 | ||||||||||||
Deferred income taxes | — | — | 448 | — | 448 | ||||||||||||
Income taxes | — | — | 2,311 | — | 2,311 | ||||||||||||
Other liabilities | — | — | 517 | — | 517 | ||||||||||||
Total Liabilities | 245 | 11,969 | 10,311 | (11,196 | ) | 11,329 | |||||||||||
Total Equity | 7,977 | 8,192 | 17,341 | (25,533 | ) | 7,977 | |||||||||||
Total Liabilities and Equity | $ | 8,222 | $ | 20,161 | $ | 27,652 | $ | (36,729 | ) | $ | 19,306 | ||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Fiscal Year Ended September 27, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by continuing operating activities | $ | 3,621 | $ | 1,972 | $ | 2,331 | $ | (5,876 | ) | $ | 2,048 | ||||||
Net cash used in discontinued operating activities | — | — | (2 | ) | — | (2 | ) | ||||||||||
Net cash provided by operating activities | 3,621 | 1,972 | 2,329 | (5,876 | ) | 2,046 | |||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (615 | ) | — | (615 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | 1 | — | 38 | — | 39 | ||||||||||||
Acquisition of business, net of cash acquired | — | — | (6 | ) | — | (6 | ) | ||||||||||
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | — | — | 14 | — | 14 | ||||||||||||
Intercompany distributions(1) | — | 1,100 | — | (1,100 | ) | ||||||||||||
Change in intercompany loans | — | 1,566 | — | (1,566 | ) | — | |||||||||||
Other | (3 | ) | — | 26 | — | 23 | |||||||||||
Net cash provided by (used in) investing activities | (2 | ) | 2,666 | (543 | ) | (2,666 | ) | (545 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(2) | (826 | ) | (174 | ) | 1,000 | — | — | ||||||||||
Net increase in commercial paper | — | 50 | — | — | 50 | ||||||||||||
Repayment of long-term debt | — | (714 | ) | (1 | ) | — | (715 | ) | |||||||||
Proceeds from exercise of share options | — | — | 214 | — | 214 | ||||||||||||
Repurchase of common shares | (602 | ) | — | (242 | ) | — | (844 | ) | |||||||||
Payment of common share dividends and cash distributions to shareholders | (391 | ) | — | 7 | — | (384 | ) | ||||||||||
Intercompany distributions(1) | — | (3,800 | ) | (3,176 | ) | 6,976 | — | ||||||||||
Loan activity with parent | (1,800 | ) | — | 234 | 1,566 | — | |||||||||||
Other | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net cash used in continuing financing activities | (3,619 | ) | (4,638 | ) | (1,965 | ) | 8,542 | (1,680 | ) | ||||||||
Net cash provided by discontinued financing activities | — | — | 2 | — | 2 | ||||||||||||
Net cash used in financing activities | (3,619 | ) | (4,638 | ) | (1,963 | ) | 8,542 | (1,678 | ) | ||||||||
Effect of currency translation on cash | — | — | (9 | ) | — | (9 | ) | ||||||||||
Net decrease in cash and cash equivalents | — | — | (186 | ) | — | (186 | ) | ||||||||||
Cash and cash equivalents at beginning of fiscal year | — | — | 1,589 | — | 1,589 | ||||||||||||
Cash and cash equivalents at end of fiscal year | $ | — | $ | — | $ | 1,403 | $ | — | $ | 1,403 | |||||||
-1 | |||||||||||||||||
During fiscal 2013, other subsidiaries made distributions to TEGSA in the amount of $3,176 million and TEGSA made distributions to TE Connectivity Ltd. of $3,800 million. Cash flows are presented based upon the nature of the distributions. | |||||||||||||||||
-2 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Fiscal Year Ended September 28, 2012 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by (used in) continuing operating activities | $ | (97 | ) | $ | 171 | $ | 2,098 | $ | (284 | ) | $ | 1,888 | |||||
Net cash provided by discontinued operating activities | — | — | 59 | — | 59 | ||||||||||||
Net cash provided by (used in) operating activities | (97 | ) | 171 | 2,157 | (284 | ) | 1,947 | ||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (533 | ) | — | (533 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | 7 | — | 16 | — | 23 | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (1,384 | ) | — | (1,384 | ) | ||||||||||
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | — | — | 394 | — | 394 | ||||||||||||
Change in intercompany loans | (22 | ) | 2,160 | — | (2,138 | ) | — | ||||||||||
Other | — | — | (9 | ) | — | (9 | ) | ||||||||||
Net cash provided by (used in) continuing investing activities | (15 | ) | 2,160 | (1,516 | ) | (2,138 | ) | (1,509 | ) | ||||||||
Net cash used in discontinued investing activities | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net cash provided by (used in) investing activities | (15 | ) | 2,160 | (1,517 | ) | (2,138 | ) | (1,510 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(1) | 639 | (3,371 | ) | 2,732 | — | — | |||||||||||
Net increase in commercial paper | — | 300 | — | — | 300 | ||||||||||||
Proceeds from long-term debt | — | 748 | — | — | 748 | ||||||||||||
Repayment of long-term debt | — | — | (642 | ) | — | (642 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 60 | — | 60 | ||||||||||||
Repurchase of common shares | (185 | ) | — | — | — | (185 | ) | ||||||||||
Payment of common share dividends and cash distributions to shareholders | (342 | ) | — | 10 | — | (332 | ) | ||||||||||
Intercompany distributions | — | — | (284 | ) | 284 | — | |||||||||||
Loan activity with parent | — | — | (2,138 | ) | 2,138 | — | |||||||||||
Other | — | (8 | ) | 52 | — | 44 | |||||||||||
Net cash provided by (used in) continuing financing activities | 112 | (2,331 | ) | (210 | ) | 2,422 | (7 | ) | |||||||||
Net cash used in discontinued financing activities | — | — | (58 | ) | — | (58 | ) | ||||||||||
Net cash provided by (used in) financing activities | 112 | (2,331 | ) | (268 | ) | 2,422 | (65 | ) | |||||||||
Effect of currency translation on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net increase in cash and cash equivalents | — | — | 371 | — | 371 | ||||||||||||
Cash and cash equivalents at beginning of fiscal year | — | — | 1,218 | — | 1,218 | ||||||||||||
Cash and cash equivalents at end of fiscal year | $ | — | $ | — | $ | 1,589 | $ | — | $ | 1,589 | |||||||
-1 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For the Fiscal Year Ended September 30, 2011 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by (used in) continuing operating activities(1) | $ | 3,100 | $ | (151 | ) | $ | 2,073 | $ | (3,300 | ) | $ | 1,722 | |||||
Net cash provided by discontinued operating activities | — | — | 57 | — | 57 | ||||||||||||
Net cash provided by (used in) operating activities | 3,100 | (151 | ) | 2,130 | (3,300 | ) | 1,779 | ||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (574 | ) | — | (574 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | — | — | 65 | — | 65 | ||||||||||||
Proceeds from sale of intangible assets | — | — | 68 | — | 68 | ||||||||||||
Proceeds from sale of short-term investments | — | — | 155 | — | 155 | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (731 | ) | — | (731 | ) | ||||||||||
Change in intercompany loans | 9 | 4,418 | — | (4,427 | ) | — | |||||||||||
Other | — | — | (8 | ) | — | (8 | ) | ||||||||||
Net cash provided by (used in) continuing investing activities | 9 | 4,418 | (1,025 | ) | (4,427 | ) | (1,025 | ) | |||||||||
Net cash used in discontinued investing activities | — | — | (18 | ) | — | (18 | ) | ||||||||||
Net cash provided by (used in) investing activities | 9 | 4,418 | (1,043 | ) | (4,427 | ) | (1,043 | ) | |||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(2) | (1,936 | ) | (1,116 | ) | 3,052 | — | — | ||||||||||
Net decrease in commercial paper | — | (100 | ) | — | — | (100 | ) | ||||||||||
Proceeds from long-term debt | — | 249 | — | — | 249 | ||||||||||||
Repayment of long-term debt | — | — | (565 | ) | — | (565 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 80 | — | 80 | ||||||||||||
Repurchase of common shares | (865 | ) | — | — | — | (865 | ) | ||||||||||
Payment of common share dividends and cash distributions to shareholders | (308 | ) | — | 12 | — | (296 | ) | ||||||||||
Intercompany distributions(1) | — | (3,300 | ) | — | 3,300 | — | |||||||||||
Loan activity with parent | — | — | (4,427 | ) | 4,427 | — | |||||||||||
Other | — | — | 23 | — | 23 | ||||||||||||
Net cash used in continuing financing activities | (3,109 | ) | (4,267 | ) | (1,825 | ) | 7,727 | (1,474 | ) | ||||||||
Net cash used in discontinued financing activities | — | — | (38 | ) | — | (38 | ) | ||||||||||
Net cash used in financing activities | (3,109 | ) | (4,267 | ) | (1,863 | ) | 7,727 | (1,512 | ) | ||||||||
Effect of currency translation on cash | — | — | 5 | — | 5 | ||||||||||||
Net decrease in cash and cash equivalents | — | — | (771 | ) | — | (771 | ) | ||||||||||
Less: net increase in cash and cash equivalents related to discontinued operations | — | — | (1 | ) | — | (1 | ) | ||||||||||
Cash and cash equivalents at beginning of fiscal year | — | — | 1,990 | — | 1,990 | ||||||||||||
Cash and cash equivalents at end of fiscal year | $ | — | $ | — | $ | 1,218 | $ | — | $ | 1,218 | |||||||
-1 | |||||||||||||||||
During fiscal 2011, TEGSA made a $3,300 million distribution to TE Connectivity Ltd. | |||||||||||||||||
-2 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 12 Months Ended |
Sep. 27, 2013 | |
item | |
Basis of Presentation | ' |
Number of reportable segments | 4 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
item | |||
Summary of Significant Accounting Policies | ' | ' | ' |
Percentage of voting shares that triggers consolidation, minimum | 50.00% | ' | ' |
Research and development expenditures | $576 | $595 | $593 |
Foreign currency gain | ' | $18 | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Number of reporting units | 8 | ' | ' |
Number of reporting units containing goodwill | 7 | ' | ' |
Transportation Solutions | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Number of reporting units | 1 | ' | ' |
Network Solutions | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Number of reporting units | 3 | ' | ' |
Industrial Solutions | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Number of reporting units | 2 | ' | ' |
Consumer Solutions | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Number of reporting units | 2 | ' | ' |
Minimum | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Useful life of intangible assets with a determinable life | '1 year | ' | ' |
Maximum | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Useful life of intangible assets with a determinable life | '50 years | ' | ' |
Land improvements | Minimum | ' | ' | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Land improvements | Maximum | ' | ' | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' | ' | ' |
Estimated useful life | '20 years | ' | ' |
Buildings and improvements | Minimum | ' | ' | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Buildings and improvements | Maximum | ' | ' | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' | ' | ' |
Estimated useful life | '40 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' | ' | ' |
Estimated useful life | '1 year | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Property, Plant, and Equipment, Net and Long-Lived Assets | ' | ' | ' |
Estimated useful life | '15 years | ' | ' |
Restructuring_and_Other_Charge2
Restructuring and Other Charges, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Restructuring and other charges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges, net | ' | ' | ' | ' | ' | ' | ' | ' | $314 | $128 | $136 |
Gain on divestitures, net | ' | ' | ' | ' | ' | ' | ' | ' | -3 | ' | ' |
Restructuring and other charges, net | 71 | 67 | 81 | 92 | 42 | 36 | 32 | 18 | 311 | 128 | 136 |
Transportation Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges, net | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 18 | -13 |
Network Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges, net | ' | ' | ' | ' | ' | ' | ' | ' | 129 | 59 | 90 |
Industrial Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges, net | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 28 | 24 |
Consumer Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges, net | ' | ' | ' | ' | ' | ' | ' | ' | $86 | $23 | $35 |
Restructuring_and_Other_Charge3
Restructuring and Other Charges, Net (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | $161 | $175 | $145 |
Charges | 353 | 148 | 175 |
Changes in Estimate | -39 | -20 | -39 |
Cash Payments | -151 | -137 | -117 |
Non-Cash Items | -84 | -1 | -9 |
Currency Translation and Other | 6 | -4 | 20 |
Restructuring reserve at the end of the period | 246 | 161 | 175 |
Fiscal 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | 316 | ' | ' |
Changes in Estimate | -8 | ' | ' |
Cash Payments | -83 | ' | ' |
Non-Cash Items | -58 | ' | ' |
Currency Translation and Other | 2 | ' | ' |
Restructuring reserve at the end of the period | 169 | ' | ' |
Fiscal 2012 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 81 | ' | ' |
Charges | 34 | 132 | ' |
Changes in Estimate | -10 | -3 | ' |
Cash Payments | -46 | -47 | ' |
Non-Cash Items | -26 | -1 | ' |
Currency Translation and Other | 2 | ' | ' |
Restructuring reserve at the end of the period | 35 | 81 | ' |
Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 34 | 109 | ' |
Charges | 2 | 9 | 165 |
Changes in Estimate | -16 | -15 | -3 |
Cash Payments | -11 | -66 | -62 |
Non-Cash Items | ' | ' | -7 |
Currency Translation and Other | 1 | -3 | 16 |
Restructuring reserve at the end of the period | 10 | 34 | 109 |
Restructuring reserve acquisition liabilities assumed | ' | ' | 16 |
Pre-Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 46 | 66 | 145 |
Charges | 1 | 7 | 10 |
Changes in Estimate | -5 | -2 | -36 |
Cash Payments | -11 | -24 | -55 |
Non-Cash Items | ' | ' | -2 |
Currency Translation and Other | 1 | -1 | 4 |
Restructuring reserve at the end of the period | 32 | 46 | 66 |
Employee severance | Fiscal 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | 253 | ' | ' |
Changes in Estimate | -8 | ' | ' |
Cash Payments | -79 | ' | ' |
Currency Translation and Other | 2 | ' | ' |
Restructuring reserve at the end of the period | 168 | ' | ' |
Employee severance | Fiscal 2012 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 79 | ' | ' |
Charges | 7 | 128 | ' |
Changes in Estimate | -10 | -3 | ' |
Cash Payments | -43 | -46 | ' |
Currency Translation and Other | 2 | ' | ' |
Restructuring reserve at the end of the period | 35 | 79 | ' |
Employee severance | Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 32 | 104 | ' |
Charges | ' | 6 | 155 |
Changes in Estimate | -16 | -14 | -3 |
Cash Payments | -9 | -61 | -58 |
Currency Translation and Other | 1 | -3 | 10 |
Restructuring reserve at the end of the period | 8 | 32 | 104 |
Employee severance | Pre-Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 19 | 33 | 97 |
Charges | ' | 3 | 1 |
Changes in Estimate | -5 | -1 | -30 |
Cash Payments | -6 | -15 | -38 |
Currency Translation and Other | ' | -1 | 3 |
Restructuring reserve at the end of the period | 8 | 19 | 33 |
Facility and other exit costs | Fiscal 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | 5 | ' | ' |
Cash Payments | -4 | ' | ' |
Restructuring reserve at the end of the period | 1 | ' | ' |
Facility and other exit costs | Fiscal 2012 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 2 | ' | ' |
Charges | 1 | 3 | ' |
Cash Payments | -3 | -1 | ' |
Restructuring reserve at the end of the period | ' | 2 | ' |
Facility and other exit costs | Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 2 | 5 | ' |
Charges | 2 | 3 | 3 |
Changes in Estimate | ' | -1 | ' |
Cash Payments | -2 | -5 | -4 |
Currency Translation and Other | ' | ' | 6 |
Restructuring reserve at the end of the period | 2 | 2 | 5 |
Facility and other exit costs | Pre-Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Restructuring reserve at the beginning of the period | 27 | 33 | 48 |
Charges | 1 | 4 | 7 |
Changes in Estimate | ' | -1 | -6 |
Cash Payments | -5 | -9 | -17 |
Currency Translation and Other | 1 | ' | 1 |
Restructuring reserve at the end of the period | 24 | 27 | 33 |
Property, plant, and equipment | Fiscal 2013 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | 58 | ' | ' |
Non-Cash Items | -58 | ' | ' |
Property, plant, and equipment | Fiscal 2012 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | 26 | 1 | ' |
Non-Cash Items | -26 | -1 | ' |
Property, plant, and equipment | Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | ' | ' | 7 |
Non-Cash Items | ' | ' | -7 |
Property, plant, and equipment | Pre-Fiscal 2011 Actions | ' | ' | ' |
Restructuring reserve | ' | ' | ' |
Charges | ' | ' | 2 |
Non-Cash Items | ' | ' | ($2) |
Restructuring_and_Other_Charge4
Restructuring and Other Charges, Net (Details 3) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 24, 2010 |
Restructuring Charges | ' | ' | ' | ' |
Charges (Credits) Incurred | $314 | $128 | $136 | ' |
Accrued and other current liabilities | 168 | 118 | ' | ' |
Other liabilities | 78 | 43 | ' | ' |
Restructuring reserves | 246 | 161 | 175 | 145 |
Transportation Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Charges (Credits) Incurred | 38 | 18 | -13 | ' |
Network Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Charges (Credits) Incurred | 129 | 59 | 90 | ' |
Industrial Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Charges (Credits) Incurred | 61 | 28 | 24 | ' |
Consumer Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Charges (Credits) Incurred | 86 | 23 | 35 | ' |
Fiscal 2013 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 355 | ' | ' | ' |
Charges (Credits) Incurred | 308 | ' | ' | ' |
Remaining Expected Charges | 47 | ' | ' | ' |
Restructuring reserves | 169 | ' | ' | ' |
Fiscal 2013 Actions | Transportation Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 44 | ' | ' | ' |
Charges (Credits) Incurred | 37 | ' | ' | ' |
Remaining Expected Charges | 7 | ' | ' | ' |
Fiscal 2013 Actions | Network Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 132 | ' | ' | ' |
Charges (Credits) Incurred | 111 | ' | ' | ' |
Remaining Expected Charges | 21 | ' | ' | ' |
Fiscal 2013 Actions | Industrial Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 75 | ' | ' | ' |
Charges (Credits) Incurred | 66 | ' | ' | ' |
Remaining Expected Charges | 9 | ' | ' | ' |
Fiscal 2013 Actions | Consumer Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 104 | ' | ' | ' |
Charges (Credits) Incurred | 94 | ' | ' | ' |
Remaining Expected Charges | 10 | ' | ' | ' |
Fiscal 2012 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 153 | ' | ' | ' |
Charges (Credits) Incurred | 24 | 129 | ' | ' |
Restructuring reserves | 35 | 81 | ' | ' |
Fiscal 2012 Actions | Transportation Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 30 | ' | ' | ' |
Charges (Credits) Incurred | 3 | 27 | ' | ' |
Fiscal 2012 Actions | Network Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 76 | ' | ' | ' |
Charges (Credits) Incurred | 20 | 56 | ' | ' |
Fiscal 2012 Actions | Industrial Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 29 | ' | ' | ' |
Charges (Credits) Incurred | 3 | 26 | ' | ' |
Fiscal 2012 Actions | Consumer Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 18 | ' | ' | ' |
Charges (Credits) Incurred | -2 | 20 | ' | ' |
Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 142 | ' | ' | ' |
Charges (Credits) Incurred | -14 | -6 | 162 | ' |
Restructuring reserves | 10 | 34 | 109 | ' |
Fiscal 2011 Actions | Transportation Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 2 | ' | ' | ' |
Charges (Credits) Incurred | ' | -6 | 8 | ' |
Fiscal 2011 Actions | Network Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 89 | ' | ' | ' |
Charges (Credits) Incurred | -2 | 1 | 90 | ' |
Fiscal 2011 Actions | Industrial Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 23 | ' | ' | ' |
Charges (Credits) Incurred | -7 | -2 | 32 | ' |
Fiscal 2011 Actions | Consumer Solutions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 28 | ' | ' | ' |
Charges (Credits) Incurred | -5 | 1 | 32 | ' |
Pre-Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Charges (Credits) Incurred | -4 | 5 | -26 | ' |
Restructuring reserves | 32 | 46 | 66 | 145 |
Employee severance | Fiscal 2013 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 269 | ' | ' | ' |
Charges (Credits) Incurred | 245 | ' | ' | ' |
Remaining Expected Charges | 24 | ' | ' | ' |
Restructuring reserves | 168 | ' | ' | ' |
Employee severance | Fiscal 2012 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 122 | ' | ' | ' |
Charges (Credits) Incurred | -3 | 125 | ' | ' |
Restructuring reserves | 35 | 79 | ' | ' |
Employee severance | Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 128 | ' | ' | ' |
Charges (Credits) Incurred | -16 | -8 | 152 | ' |
Restructuring reserves | 8 | 32 | 104 | ' |
Employee severance | Pre-Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Restructuring reserves | 8 | 19 | 33 | 97 |
Facility and other exit costs | Fiscal 2013 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 13 | ' | ' | ' |
Charges (Credits) Incurred | 5 | ' | ' | ' |
Remaining Expected Charges | 8 | ' | ' | ' |
Restructuring reserves | 1 | ' | ' | ' |
Facility and other exit costs | Fiscal 2012 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 4 | ' | ' | ' |
Charges (Credits) Incurred | 1 | 3 | ' | ' |
Restructuring reserves | ' | 2 | ' | ' |
Facility and other exit costs | Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 7 | ' | ' | ' |
Charges (Credits) Incurred | 2 | 2 | 3 | ' |
Restructuring reserves | 2 | 2 | 5 | ' |
Facility and other exit costs | Pre-Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Restructuring reserves | 24 | 27 | 33 | 48 |
Property, plant, and equipment | Fiscal 2013 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 73 | ' | ' | ' |
Charges (Credits) Incurred | 58 | ' | ' | ' |
Remaining Expected Charges | 15 | ' | ' | ' |
Property, plant, and equipment | Fiscal 2012 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 27 | ' | ' | ' |
Charges (Credits) Incurred | 26 | 1 | ' | ' |
Property, plant, and equipment | Fiscal 2011 Actions | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' |
Total Expected Charges | 7 | ' | ' | ' |
Charges (Credits) Incurred | ' | ' | $7 | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 30, 2011 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Divestiture of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from divestiture of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $14 | $394 | ' |
Settlement agreement amount, gross | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 355 | 534 |
Pre-tax income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 19 | 54 |
Pre-tax gain (loss) on sale of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 7 | -4 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 5 | -77 | -28 |
Income (loss) from discontinued operations, net of income taxes | ' | 3 | -1 | -2 | -2 | -61 | -10 | 22 | ' | -51 | 22 |
Touch Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Divestiture of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from divestiture of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 380 | ' |
Tax provision related to goodwill write-off | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' |
TE Professional Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Divestiture of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from divestiture of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' |
Pre-tax impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28 | ' |
Acquisitions_Details
Acquisitions (Details) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 28, 2012 | Sep. 30, 2011 | Apr. 03, 2012 | Jun. 29, 2012 | Sep. 28, 2012 | Apr. 03, 2012 | Dec. 08, 2010 | Dec. 31, 2010 | Sep. 30, 2011 | Dec. 09, 2010 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Deutsch Group SAS and ADC Telecommunications | Deutsch Group SAS and ADC Telecommunications | Deutsch Group SAS | Deutsch Group SAS | Deutsch Group SAS | Deutsch Group SAS | ADC Telecommunications | ADC Telecommunications | ADC Telecommunications | ADC Telecommunications | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | |||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of voting interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | 100.00% |
Total value paid for the transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,050,000,000 | ' | ' | € 1,550,000,000 | ' | ' | ' | ' |
Per share value of the purchase (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.75 | ' | ' | ' |
Percentage of shares of ADC tendered and not withdrawn pursuant to the tender offer, in percentage of the outstanding common shares of ADC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86.80% | ' | ' | ' |
Percentage of shares acquired in order to effect short form merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% |
Cash paid for acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,263,000,000 | ' | ' |
Conversion ratio for ADC Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' | ' |
Effect of conversion of ADC share options and stock appreciation rights into TE Connectivity Ltd. share options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Effect of conversion of ADC share options and stock appreciation rights into TE Connectivity Ltd. share options (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38.88 | ' | ' | ' |
Fair value of ADC Awards in exchange for TE Connectivity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' |
Acquisition and integration costs related to conversion of awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Exchange rate (in dollars per Euro) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.33 | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt and accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 659,000,000 | ' | ' | ' | ' | ' | ' | ' |
Allocation of the purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152,000,000 | ' | ' | ' | 546,000,000 | ' | ' | ' |
Short-term investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 155,000,000 | ' | ' | ' |
Other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000,000 | ' | ' | ' | 540,000,000 | ' | ' | ' |
Property, plant, and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,000,000 | ' | ' | ' | 198,000,000 | ' | ' | ' |
Goodwill | 4,326,000,000 | ' | ' | ' | 4,308,000,000 | ' | ' | ' | 4,326,000,000 | 4,308,000,000 | 3,288,000,000 | ' | ' | 1,042,000,000 | ' | ' | ' | 366,000,000 | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 827,000,000 | ' | ' | ' | 308,000,000 | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 164,000,000 | ' | ' | ' |
Other long-term assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | 18,000,000 | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,493,000,000 | ' | ' | ' | 2,295,000,000 | ' | ' | ' |
Current maturities of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 642,000,000 | ' | ' | ' | 653,000,000 | ' | ' | ' |
Other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,000,000 | ' | ' | ' | 260,000,000 | ' | ' | ' |
Long-term pension liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,000,000 | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,000,000 | ' | ' | ' | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' | ' | ' | 19,000,000 | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 957,000,000 | ' | ' | ' | 1,006,000,000 | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,536,000,000 | ' | ' | ' | 1,289,000,000 | ' | ' | ' |
Amounts attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,000,000 | ' | ' | ' |
Conversion of ADC Awards to TE Connectivity share awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -22,000,000 | ' | ' | ' |
Net cash paid | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 1,384,000,000 | 731,000,000 | ' | ' | 1,384,000,000 | ' | ' | ' | 717,000,000 | ' | ' | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 189,000,000 | ' | ' | ' | 166,000,000 | ' | ' | ' |
Trade accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 121,000,000 | ' | ' | ' | 171,000,000 | ' | ' | ' |
Deferred income taxes, current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' |
Assets held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,000,000 | ' | ' | ' |
Net proceeds from sale of assets held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,000,000 | ' |
Net proceeds from sale of assets held for sale during the reporting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106,000,000 | ' |
Accrued and other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,000,000 | ' | ' | ' | 165,000,000 | ' | ' | ' |
Trade accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,000,000 | ' | ' | ' | 88,000,000 | ' | ' | ' |
Goodwill deductible from prior acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000,000 | ' | ' | ' | 346,000,000 | ' | ' | ' |
Net sales | 3,432,000,000 | 3,449,000,000 | 3,265,000,000 | 3,134,000,000 | 3,364,000,000 | 3,499,000,000 | 3,249,000,000 | 3,170,000,000 | 13,280,000,000 | 13,282,000,000 | 13,778,000,000 | ' | ' | ' | ' | 327,000,000 | ' | ' | ' | 843,000,000 | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,556,000,000 | 1,518,000,000 | 1,687,000,000 | ' | ' | ' | ' | -54,000,000 | ' | ' | ' | -53,000,000 | ' |
Restructuring charges, net | ' | ' | ' | ' | ' | ' | ' | ' | 314,000,000 | 128,000,000 | 136,000,000 | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | 80,000,000 | ' |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | ' | ' | ' | 9,000,000 | ' |
Integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | 10,000,000 | ' |
Amortization of fair value adjustments to inventories and customer order backlog | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,000,000 | 75,000,000 | ' | ' | ' | 39,000,000 | ' |
Pro forma financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,625,000,000 | 14,612,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,194,000,000 | 1,228,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per common share attributable to TE Connectivity Ltd | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.78 | $2.77 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to the fair value adjustment to acquisition-date inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense based on changes in capital structure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | 39,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense based on changes in global tax position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to acquired customer order backlog | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to other acquisition accounting-related adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to the amortization of the fair value of acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Details_2
Acquisitions (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 28, 2012 | Apr. 03, 2012 | Sep. 30, 2011 | Dec. 08, 2010 | Sep. 28, 2012 | Apr. 03, 2012 | Sep. 30, 2011 | Dec. 08, 2010 | Sep. 28, 2012 | Apr. 03, 2012 | Sep. 30, 2011 | Dec. 08, 2010 | Sep. 28, 2012 | Apr. 03, 2012 | Sep. 30, 2011 | Dec. 08, 2010 | Apr. 03, 2012 | Sep. 28, 2012 | Dec. 08, 2010 | Sep. 30, 2011 |
Deutsch Group SAS | Deutsch Group SAS | ADC Telecommunications | ADC Telecommunications | Customer relationships | Customer relationships | Customer relationships | Customer relationships | Developed technology | Developed technology | Developed technology and patents | Developed technology and patents | Trade names and trademarks | Trade names and trademarks | Trade names and trademarks | Trade names and trademarks | Customer order backlog | Customer order backlog | Customer order backlog | Customer order backlog | |
Deutsch Group SAS | Deutsch Group SAS | ADC Telecommunications | ADC Telecommunications | Deutsch Group SAS | Deutsch Group SAS | ADC Telecommunications | ADC Telecommunications | Deutsch Group SAS | Deutsch Group SAS | ADC Telecommunications | ADC Telecommunications | Deutsch Group SAS | Deutsch Group SAS | ADC Telecommunications | ADC Telecommunications | |||||
Maximum | Maximum | |||||||||||||||||||
Intangible assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets acquired, fair value amount | ' | $827 | ' | $308 | ' | $490 | ' | $175 | ' | $165 | ' | $118 | ' | $150 | ' | $4 | $22 | ' | $11 | ' |
Intangible assets acquired, Weighted-Average Amortization Period | '15 years | ' | '11 years | ' | '15 years | ' | '11 years | ' | '12 years | ' | '12 years | ' | '20 years | ' | '1 year | ' | ' | '1 year | ' | '1 year |
Inventories_Details
Inventories (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $258 | $282 |
Work in progress | 597 | 573 |
Finished goods | 870 | 896 |
Inventoried costs on long-term contracts | 37 | 57 |
Inventories | $1,762 | $1,808 |
Property_Plant_and_Equipment_N2
Property, Plant, and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Net property, plant, and equipment | ' | ' | ' |
Gross property, plant, and equipment | $9,519 | $9,301 | ' |
Accumulated depreciation | -6,353 | -6,088 | ' |
Property, plant, and equipment, net | 3,166 | 3,213 | 3,140 |
Depreciation expense | 496 | 502 | 499 |
Land and improvements | ' | ' | ' |
Net property, plant, and equipment | ' | ' | ' |
Gross property, plant, and equipment | 251 | 266 | ' |
Buildings and improvements | ' | ' | ' |
Net property, plant, and equipment | ' | ' | ' |
Gross property, plant, and equipment | 1,503 | 1,470 | ' |
Machinery and equipment | ' | ' | ' |
Net property, plant, and equipment | ' | ' | ' |
Gross property, plant, and equipment | 7,280 | 7,103 | ' |
Construction in process | ' | ' | ' |
Net property, plant, and equipment | ' | ' | ' |
Gross property, plant, and equipment | $485 | $462 | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Apr. 03, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Deutsch Group SAS | Deutsch Group SAS | Transportation Solutions | Transportation Solutions | Transportation Solutions | Network Solutions | Network Solutions | Network Solutions | Industrial Solutions | Industrial Solutions | Industrial Solutions | Consumer Solutions | Consumer Solutions | Consumer Solutions | ||||
Goodwill: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, beginning balance | ' | $4,308 | $3,288 | ' | $1,042 | $793 | $62 | ' | $981 | $989 | ' | $1,876 | $1,574 | ' | $658 | $663 | ' |
Acquisitions | ' | ' | 1,042 | 1,042 | ' | ' | 730 | ' | ' | ' | ' | ' | 312 | ' | ' | ' | ' |
Currency translation and other | ' | 18 | -22 | ' | ' | 4 | 1 | ' | -4 | -8 | ' | 13 | -10 | ' | 5 | -5 | ' |
Goodwill, ending balance | 4,326 | 4,326 | 4,308 | ' | 1,042 | 797 | 793 | ' | 977 | 981 | ' | 1,889 | 1,876 | ' | 663 | 658 | ' |
Accumulated impairment losses | ' | ' | ' | ' | ' | 2,191 | 2,191 | 2,191 | 1,236 | 1,236 | 1,236 | 641 | 641 | 641 | 607 | 607 | 607 |
Goodwill impairment | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible_Assets_Net_Details
Intangible Assets, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Finite-Lived Intangible Assets | ' | ' | ' |
Gross Carrying Amount | $1,848 | $1,877 | ' |
Accumulated Amortization | -604 | -525 | ' |
Net Carrying Amount | 1,244 | 1,352 | ' |
Finite-lived intangible assets, amortization expense | 111 | 107 | 65 |
Estimated aggregate amortization expense on intangible assets | ' | ' | ' |
Fiscal 2014 | 111 | ' | ' |
Fiscal 2015 | 111 | ' | ' |
Fiscal 2016 | 111 | ' | ' |
Fiscal 2017 | 111 | ' | ' |
Fiscal 2018 | 110 | ' | ' |
Thereafter | 690 | ' | ' |
Intellectual property | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 1,144 | 1,146 | ' |
Accumulated Amortization | -499 | -439 | ' |
Net Carrying Amount | 645 | 707 | ' |
Customer relationships | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 658 | 655 | ' |
Accumulated Amortization | -92 | -44 | ' |
Net Carrying Amount | 566 | 611 | ' |
Other | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 46 | 76 | ' |
Accumulated Amortization | -13 | -42 | ' |
Net Carrying Amount | $33 | $34 | ' |
Accrued_and_Other_Current_Liab2
Accrued and Other Current Liabilities (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Accrued and Other Current Liabilities | ' | ' |
Accrued payroll and employee benefits | $498 | $440 |
Dividends and cash distributions to shareholders payable | 206 | 178 |
Tax Sharing Agreement guarantee liabilities pursuant to ASC 460 | 185 | 14 |
Restructuring reserves | 168 | 118 |
Income taxes payable | 112 | 139 |
Deferred income taxes | 54 | 85 |
Interest payable | 51 | 72 |
Warranty liability | 21 | 31 |
Other | 467 | 499 |
Accrued and other current liabilities | $1,762 | $1,576 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
item | ||
Current maturities of long-term debt: | ' | ' |
Current maturities of long-term debt | $711 | $1,015 |
Long-term debt: | ' | ' |
Long-term debt | 2,303 | 2,696 |
Total debt | 3,014 | 3,711 |
Debt | ' | ' |
Ownership percentage in TEGSA | 100.00% | ' |
Aggregate amounts of total debt maturing during the next five years and thereafter | ' | ' |
Fiscal 2014 | 711 | ' |
Fiscal 2015 | 339 | ' |
Fiscal 2018 | 727 | ' |
Thereafter | 1,237 | ' |
Total debt | 3,014 | 3,711 |
Debt instrument, fair value | 3,180 | 4,034 |
6.00% senior notes due 2012 | ' | ' |
Current maturities of long-term debt: | ' | ' |
Current maturities of long-term debt | ' | 714 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | ' | 6.00% |
5.95% senior notes due 2014 | ' | ' |
Current maturities of long-term debt: | ' | ' |
Current maturities of long-term debt | 300 | ' |
Long-term debt: | ' | ' |
Long-term debt | ' | 300 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 5.95% | 5.95% |
Commercial paper | ' | ' |
Current maturities of long-term debt: | ' | ' |
Current maturities of long-term debt | 350 | 300 |
Debt | ' | ' |
Debt instrument, weighted-average interest rate at period end (as a percent) | 0.28% | 0.40% |
Other Debt | ' | ' |
Current maturities of long-term debt: | ' | ' |
Current maturities of long-term debt | 61 | 1 |
Long-term debt: | ' | ' |
Long-term debt | 1 | 77 |
1.60% senior notes due 2015 | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 250 | 250 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 1.60% | 1.60% |
6.55% senior notes due 2017 | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 727 | 732 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 6.55% | 6.55% |
4.875% senior notes due 2021 | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 263 | 274 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 4.88% | 4.88% |
3.50% senior notes due 2022 | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 498 | 498 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 3.50% | 3.50% |
7.125% senior notes due 2037 | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 475 | 475 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 7.13% | 7.13% |
3.50% convertible subordinated notes due 2015 | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 89 | 90 |
Debt | ' | ' |
Debt instrument, interest rate (as a percent) | 3.50% | 3.50% |
Five-Year Credit Facility | ' | ' |
Debt | ' | ' |
Revolving credit line, term | '5 years | ' |
Maximum borrowing capacity | 1,500 | ' |
Borrowings under the Credit Facility | $0 | $0 |
Number of Consecutive Fiscal Quarters | 4 | ' |
Consolidated Total Debt to Consolidated EBITDA ratio, maximum | 3.75 | ' |
Five-Year Credit Facility | Minimum | ' | ' |
Debt | ' | ' |
Annual facility fee, basis points (as a percent) | 0.08% | ' |
Five-Year Credit Facility | Maximum | ' | ' |
Debt | ' | ' |
Annual facility fee, basis points (as a percent) | 0.25% | ' |
Five-Year Credit Facility | LIBOR | ' | ' |
Debt | ' | ' |
Debt instrument description of variable rate basis | 'one-month LIBOR | ' |
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ' |
Five-Year Credit Facility | Federal funds effective rate | ' | ' |
Debt | ' | ' |
Debt instrument description of variable rate basis | 'Federal funds effective rate | ' |
Debt instrument basis spread on variable rate (as a percent) | 0.50% | ' |
Guarantees_Details
Guarantees (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 29, 2007 | Sep. 27, 2013 | Sep. 28, 2012 |
item | |||
Guarantee Obligations: | ' | ' | ' |
Liabilities sharing percent, entity | ' | 31.00% | ' |
Liabilities sharing percent, Tyco International | ' | 27.00% | ' |
Liabilities sharing percent, Covidien | ' | 42.00% | ' |
Accrued and other current liabilities | ' | $1,762 | $1,576 |
Other liabilities | ' | 393 | 517 |
Accrued warranty claims | ' | 38 | 48 |
Tax Sharing Agreement | ' | ' | ' |
Guarantee Obligations: | ' | ' | ' |
Liabilities sharing percent, entity | ' | 31.00% | ' |
Liabilities sharing percent, Tyco International | ' | 27.00% | ' |
Liabilities sharing percent, Covidien | ' | 42.00% | ' |
Liability sharing percent, pre-separation tax matters, indemnification | ' | 69.00% | ' |
Number of post-separation companies | 3 | ' | ' |
Guarantor obligations, maximum exposure | 3,000 | ' | ' |
Assumed default rate by Tyco International and Covidien (as a percent) | 100.00% | ' | ' |
Guarantee obligations, current carrying value | ' | 223 | 241 |
Accrued and other current liabilities | ' | 185 | 14 |
Other liabilities | ' | 38 | 227 |
Outstanding Letters of Credit and Letters of Guarantee | ' | ' | ' |
Guarantee Obligations: | ' | ' | ' |
Guarantor obligations, maximum exposure | ' | $376 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | |
Lease payment obligations | ' | ' | ' | ' |
Facility, land, vehicle, and equipment lease rental expense | ' | $154,000,000 | $160,000,000 | $158,000,000 |
Non-cancelable lease obligations due within one year | ' | 125,000,000 | ' | ' |
Non-cancelable lease obligations due in two years | ' | 96,000,000 | ' | ' |
Non-cancelable lease obligations due in three years | ' | 58,000,000 | ' | ' |
Non-cancelable lease obligations due in four years | ' | 41,000,000 | ' | ' |
Non-cancelable lease obligations due in five years | ' | 30,000,000 | ' | ' |
Non-cancelable lease obligations due thereafter | ' | 70,000,000 | ' | ' |
Non-cancelable lease obligations, total | ' | 420,000,000 | ' | ' |
Loss Contingencies | ' | ' | ' | ' |
Liabilities sharing percent, entity | ' | 31.00% | ' | ' |
Liabilities sharing percent, Tyco International | ' | 27.00% | ' | ' |
Liabilities sharing percent, Covidien | ' | 42.00% | ' | ' |
Penalty adjustment resolved | ' | 21,000,000 | ' | ' |
Income tax benefit associated with settlement of certain U.S. tax matters | 331,000,000 | 331,000,000 | ' | 35,000,000 |
Other nonoperating expense, settlement of certain U.S. tax matters | 231,000,000 | 231,000,000 | ' | 14,000,000 |
Disallowance related to interest deductions on Tyco International's U.S. income tax returns for intercompany loans originating during the period 1997 through 2000 | ' | 2,700,000,000 | ' | ' |
Additional disallowance related to interest deductions on Tyco International's U.S. income tax returns for intercompany loans subsequent to fiscal 2000 | ' | 6,600,000,000 | ' | ' |
Increase in taxable income in connection with the audit of Tyco International's fiscal years 1997 through 2000 relating to the disallowed interest deduction on certain intercompany loans | ' | 2,900,000,000 | ' | ' |
Additional tax in connection with the audit of Tyco International's fiscal years 1997 through 2000 relating to the disallowed interest deduction on certain intercompany loans | ' | 778,000,000 | ' | ' |
Additional penalties in connection with the audit of Tyco International's fiscal years 1997 through 2000 relating to the disallowed interest deduction on certain intercompany loans | ' | 154,000,000 | ' | ' |
Additional withholding taxes in connection with the audit of Tyco International's fiscal years 1997 through 2000 relating to the disallowed interest deduction on certain intercompany loans | ' | 105,000,000 | ' | ' |
Additional tax deficiency relating to the Final Partnership Administrative Adjustments | ' | 30,000,000 | ' | ' |
Payments for tax deficiencies related to undisputed tax adjustments for years 1997 through 2000 | ' | 67,000,000 | 70,000,000 | ' |
Amount reimbursed pursuant to indemnifications for pre-separation tax matters | ' | 39,000,000 | 51,000,000 | ' |
Net cash payments made as a result of the settlement of certain tax matters | ' | ' | ' | 154,000,000 |
Net cash payments expected to be made in the next 12 months as a result of the settlement of certain tax matters | ' | 182,000,000 | ' | ' |
Liabilities related to the audits of Tyco International and our income tax returns | ' | 15,000,000 | 71,000,000 | ' |
Payment to IRS until the matter is fully and finally resolved | ' | 0 | ' | ' |
Environmental matters | ' | ' | ' | ' |
Loss Contingencies | ' | ' | ' | ' |
Loss contingency, range of possible loss, minimum | ' | 12,000,000 | ' | ' |
Loss contingency, range of possible loss, maximum | ' | 24,000,000 | ' | ' |
Loss contingency, estimate of probable loss | ' | 13,000,000 | ' | ' |
Loss contingency, accrual carrying value, current | ' | 3,000,000 | ' | ' |
Loss contingency, accrual carrying value, noncurrent | ' | 10,000,000 | ' | ' |
Tax Sharing Agreement | ' | ' | ' | ' |
Loss Contingencies | ' | ' | ' | ' |
Liabilities sharing percent, entity | ' | 31.00% | ' | ' |
Liabilities sharing percent, Tyco International | ' | 27.00% | ' | ' |
Liabilities sharing percent, Covidien | ' | 42.00% | ' | ' |
Com-Net | ' | ' | ' | ' |
Loss Contingencies | ' | ' | ' | ' |
Loss contingency, range of possible loss, maximum | ' | $80,000,000 | ' | ' |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | $20 | $49 | ' |
Fair Value of Liability Positions | 31 | 4 | ' |
1.60% senior notes due 2015 | ' | ' | ' |
Financial instruments | ' | ' | ' |
Debt instrument, interest rate (as a percent) | 1.60% | 1.60% | ' |
3.50% senior notes due 2022 | ' | ' | ' |
Financial instruments | ' | ' | ' |
Debt instrument, interest rate (as a percent) | 3.50% | 3.50% | ' |
4.875% senior notes due 2021 | ' | ' | ' |
Financial instruments | ' | ' | ' |
Debt instrument, interest rate (as a percent) | 4.88% | 4.88% | ' |
Prepaid expenses and other current assets | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 5 | 19 | ' |
Accrued and other current liabilities | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Liability Positions | 29 | 4 | ' |
Other assets | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 15 | 30 | ' |
Other liabilities | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Liability Positions | 2 | 0 | ' |
Interest rate swaps | 4.875% senior notes due 2021 | ' | ' | ' |
Financial instruments | ' | ' | ' |
Notional amount | ' | ' | 150 |
Interest rate swaps | 4.875% senior notes due 2021 | LIBOR | ' | ' | ' |
Financial instruments | ' | ' | ' |
Debt instrument description of variable rate basis | ' | ' | 'three month U.S. Dollar LIBOR |
Net investment hedges | ' | ' | ' |
Financial instruments | ' | ' | ' |
Notional amount of nonderivative instruments | 2,374 | 2,981 | ' |
Foreign exchange gains (losses) reclassified to currency translation | -18 | 21 | -70 |
Cash flow hedges | Foreign currency contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Period over which all of the balance in accumulated other comprehensive income reclassified into the Consolidated Statements of Operations | '12 months | ' | ' |
Cash flow hedges | Interest rate swaps | ' | ' | ' |
Financial instruments | ' | ' | ' |
Notional amount | 0 | 0 | ' |
Cash flow hedges | Commodity swap contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Period over which all of the balance in accumulated other comprehensive income reclassified into the Consolidated Statements of Operations | '12 months | ' | ' |
Notional amount | 278 | 246 | ' |
Economic hedges | Investment swaps | ' | ' | ' |
Financial instruments | ' | ' | ' |
Notional amount | 38 | 30 | ' |
Derivatives designated as hedging instruments | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 17 | 46 | ' |
Fair Value of Liability Positions | 30 | 2 | ' |
Derivatives designated as hedging instruments | Foreign currency contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 1 | 2 | ' |
Fair Value of Liability Positions | 1 | 1 | ' |
Derivatives designated as hedging instruments | Interest rate swaps | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 14 | 26 | ' |
Derivatives designated as hedging instruments | Commodity swap contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 2 | 18 | ' |
Fair Value of Liability Positions | 29 | 1 | ' |
Derivatives not designated as hedging instruments | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 3 | 3 | ' |
Fair Value of Liability Positions | 1 | 2 | ' |
Derivatives not designated as hedging instruments | Foreign currency contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | ' | 2 | ' |
Fair Value of Liability Positions | 1 | 2 | ' |
Derivatives not designated as hedging instruments | Investment swaps | ' | ' | ' |
Financial instruments | ' | ' | ' |
Fair Value of Asset Positions | 3 | 1 | ' |
Termination of derivative | Interest rate swaps | 3.50% senior notes due 2022 | ' | ' | ' |
Financial instruments | ' | ' | ' |
Notional amount | ' | 300 | ' |
Cash payment on settlement of derivative | ' | 2 | ' |
Termination of derivative | Interest rate swaps and swaptions | 1.60% senior notes due 2015 and 3.50% senior notes due 2022 | ' | ' | ' |
Financial instruments | ' | ' | ' |
Notional amount | ' | 400 | ' |
Cash payment on settlement of derivative | ' | 24 | ' |
Effective portion of forward starting interest rate derivative | ' | $24 | ' |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Financial instruments | ' | ' | ' |
Amount of gain (loss) recognized from derivatives not designated as hedging instruments | ($4) | ($26) | $6 |
Deutsch Group | ' | ' | ' |
Financial instruments | ' | ' | ' |
Amount of gain (loss) recognized from derivatives not designated as hedging instruments | ' | -20 | ' |
Foreign currency contracts | Selling, general, and administrative expenses | ' | ' | ' |
Financial instruments | ' | ' | ' |
Amount of gain (loss) recognized from derivatives not designated as hedging instruments | -11 | -33 | 7 |
Investment swaps | Selling, general, and administrative expenses | ' | ' | ' |
Financial instruments | ' | ' | ' |
Amount of gain (loss) recognized from derivatives not designated as hedging instruments | 7 | 7 | -1 |
Fair value hedges | Interest rate swaps | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded From Effectiveness Testing) | 0 | 0 | 0 |
Fair value hedges | Derivatives designated as hedging instruments | Interest rate swaps | Interest expense | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain Recognized | 5 | 7 | 6 |
Cash flow hedges | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in OCI (Effective Portion) | -65 | 23 | 21 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -29 | -1 | 42 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded From Effectiveness Testing) | ' | ' | -1 |
Cash flow hedges | Foreign currency contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in OCI (Effective Portion) | -1 | ' | 1 |
Cash flow hedges | Foreign currency contracts | Cost of sales | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ' | -1 | 5 |
Cash flow hedges | Interest rate swaps and swaptions | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in OCI (Effective Portion) | ' | -5 | -9 |
Cash flow hedges | Interest rate swaps and swaptions | Interest expense | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ' | -10 | -5 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded From Effectiveness Testing) | ' | ' | -1 |
Cash flow hedges | Interest rate swaps | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in OCI (Effective Portion) | ' | -2 | ' |
Cash flow hedges | Interest rate swaps | Interest expense | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -9 | ' | ' |
Cash flow hedges | Forward starting interest rate swap | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in OCI (Effective Portion) | ' | -3 | -9 |
Cash flow hedges | Commodity swap contracts | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Recognized in OCI (Effective Portion) | -64 | 28 | 29 |
Cash flow hedges | Commodity swap contracts | Cost of sales | ' | ' | ' |
Financial instruments | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ($20) | $10 | $42 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring, USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Level 1 | ' | ' |
Assets: | ' | ' |
Commodity swap contracts | $2 | $18 |
Rabbi trust assets | 3 | 4 |
Total assets at fair value | 5 | 22 |
Liabilities: | ' | ' |
Commodity swap contracts | 29 | 1 |
Total liabilities at fair value | 29 | 1 |
Level 2 | ' | ' |
Assets: | ' | ' |
Interest rate swaps | 14 | 26 |
Investment swaps | 3 | 1 |
Foreign currency contracts | 1 | 4 |
Rabbi trust assets | 80 | 79 |
Total assets at fair value | 98 | 110 |
Liabilities: | ' | ' |
Foreign currency contracts | 2 | 3 |
Total liabilities at fair value | 2 | 3 |
Fair Value | ' | ' |
Assets: | ' | ' |
Commodity swap contracts | 2 | 18 |
Interest rate swaps | 14 | 26 |
Investment swaps | 3 | 1 |
Foreign currency contracts | 1 | 4 |
Rabbi trust assets | 83 | 83 |
Total assets at fair value | 103 | 132 |
Liabilities: | ' | ' |
Commodity swap contracts | 29 | 1 |
Foreign currency contracts | 2 | 3 |
Total liabilities at fair value | $31 | $4 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
U.S. Plans | ' | ' | ' |
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ' | ' | ' |
Service cost | $6 | $7 | $7 |
Interest cost | 46 | 51 | 52 |
Expected return on plan assets | -60 | -58 | -63 |
Amortization of net actuarial loss | 36 | 42 | 35 |
Other | ' | -1 | ' |
Net periodic pension benefit cost | 28 | 41 | 31 |
Weighted average assumptions used to determine net pension benefit cost during the fiscal year: | ' | ' | ' |
Discount rate (as a percent) | 3.98% | 4.71% | 5.10% |
Expected return on plan assets (as a percent) | 6.65% | 7.10% | 7.45% |
Rate of compensation increase (as a percent) | ' | 4.00% | 4.00% |
Non-U.S. Plans | ' | ' | ' |
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ' | ' | ' |
Service cost | 55 | 51 | 65 |
Interest cost | 70 | 76 | 88 |
Expected return on plan assets | -69 | -54 | -59 |
Amortization of net actuarial loss | 33 | 29 | 41 |
Other | -18 | -5 | -4 |
Net periodic pension benefit cost | 71 | 97 | 131 |
Weighted average assumptions used to determine net pension benefit cost during the fiscal year: | ' | ' | ' |
Discount rate (as a percent) | 3.27% | 4.12% | 3.97% |
Expected return on plan assets (as a percent) | 6.31% | 5.43% | 5.37% |
Rate of compensation increase (as a percent) | 2.88% | 3.01% | 3.50% |
Postretirement Benefit Plans | ' | ' | ' |
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ' | ' | ' |
Net periodic pension benefit cost | $4 | $3 | $3 |
Weighted average assumptions used to determine net pension benefit cost during the fiscal year: | ' | ' | ' |
Discount rate (as a percent) | 3.85% | 5.00% | 4.95% |
Rate of compensation increase (as a percent) | 3.35% | 4.00% | 4.00% |
Retirement_Plans_Details_2
Retirement Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Amounts recognized on the Consolidated Balance Sheets: | ' | ' | ' |
Long-term pension and postretirement liabilities | ($1,155) | ($1,353) | ' |
Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target asset allocation based on current Pension Protection Act funded status, for equity securities (as a percent) | 45.00% | ' | ' |
Fixed income | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target asset allocation based on current Pension Protection Act funded status, for fixed income securities (as a percent) | 55.00% | ' | ' |
U.S. Plans | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of fiscal year | 1,177 | 1,114 | ' |
Service cost | 6 | 7 | 7 |
Interest cost | 46 | 51 | 52 |
Actuarial (gain) loss | -84 | 69 | ' |
Benefits and administrative expenses paid | -69 | -63 | ' |
Other | -2 | -1 | ' |
Benefit obligation at end of fiscal year | 1,074 | 1,177 | 1,114 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 941 | 851 | ' |
Actual return on plan assets | 58 | 152 | ' |
Employer contributions | 2 | 1 | ' |
Benefits and administrative expenses paid | -69 | -63 | ' |
Other | -1 | ' | ' |
Fair value of plan assets at end of fiscal year | 931 | 941 | 851 |
Funded status | -143 | -236 | ' |
Amounts recognized on the Consolidated Balance Sheets: | ' | ' | ' |
Accrued and other current liabilities | -3 | -4 | ' |
Long-term pension and postretirement liabilities | -140 | -232 | ' |
Net amount recognized | -143 | -236 | ' |
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | ' | ' | ' |
Discount rate (as a percent) | 4.84% | 3.98% | ' |
Change in net loss: | ' | ' | ' |
Unrecognized net loss at beginning of fiscal year | 438 | 504 | ' |
Current year change recorded in accumulated other comprehensive income | -82 | -24 | ' |
Amortization reclassified to earnings | -36 | -42 | ' |
Unrecognized net loss at end of fiscal year | 320 | 438 | 504 |
Estimated amortization of actuarial losses from accumulated other comprehensive income into net periodic pension benefit cost in next fiscal year | ' | ' | ' |
Amortization of net actuarial loss | 25 | ' | ' |
Target asset allocation | ' | ' | ' |
Target asset allocation funded status minimum (as a percent) | 100.00% | 100.00% | ' |
Target weighted average asset allocations (as a percent) | 100.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 100.00% | 100.00% | ' |
Minimum required contributions and expected benefit payments | ' | ' | ' |
Minimum required contributions to pension plans in fiscal 2014 | 3 | ' | ' |
Expected benefit payments, fiscal 2014 | 68 | ' | ' |
Expected benefit payments, fiscal 2015 | 66 | ' | ' |
Expected benefit payments, fiscal 2016 | 66 | ' | ' |
Expected benefit payments, fiscal 2017 | 67 | ' | ' |
Expected benefit payments, fiscal 2018 | 68 | ' | ' |
Expected benefit payments, fiscal 2019-2023 | 360 | ' | ' |
Accumulated benefit obligation | 1,074 | 1,177 | ' |
Pension plans with accumulated benefit obligations in excess of plan assets: | ' | ' | ' |
Accumulated benefit obligation | 1,074 | 1,177 | ' |
Fair value of plan assets | 931 | 941 | ' |
Pension plans with projected benefit obligations in excess of plan assets: | ' | ' | ' |
Projected benefit obligation | 1,074 | 1,177 | ' |
Fair value of plan assets | 931 | 941 | ' |
U.S. Plans | Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target asset allocation of Master Trust securities, prior to decision to change target asset allocation (as a percent) | ' | 30.00% | ' |
Target asset allocation of Master Trust securities, after decision to change target asset allocation (as a percent) | 10.00% | 10.00% | ' |
Target weighted average asset allocations (as a percent) | 45.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 45.00% | 38.00% | ' |
U.S. Plans | Equity securities | Maximum | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 45.00% | ' | ' |
U.S. Plans | Debt securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target asset allocation of Master Trust securities, prior to decision to change target asset allocation (as a percent) | ' | 70.00% | ' |
Target asset allocation of Master Trust securities, after decision to change target asset allocation (as a percent) | 90.00% | 90.00% | ' |
Target weighted average asset allocations (as a percent) | 55.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 55.00% | 62.00% | ' |
Non-U.S. Plans | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of fiscal year | 2,206 | 1,896 | ' |
Service cost | 55 | 51 | 65 |
Interest cost | 70 | 76 | 88 |
Actuarial (gain) loss | 48 | 248 | ' |
Benefits and administrative expenses paid | -98 | -86 | ' |
New plans | ' | 47 | ' |
Currency translation | -74 | -24 | ' |
Other | -26 | -2 | ' |
Benefit obligation at end of fiscal year | 2,181 | 2,206 | 1,896 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 1,118 | 980 | ' |
Actual return on plan assets | 131 | 101 | ' |
Employer contributions | 94 | 95 | ' |
Benefits and administrative expenses paid | -98 | -86 | ' |
Currency translation | -62 | 4 | ' |
Other | 2 | 24 | ' |
Fair value of plan assets at end of fiscal year | 1,185 | 1,118 | 980 |
Funded status | -996 | -1,088 | ' |
Amounts recognized on the Consolidated Balance Sheets: | ' | ' | ' |
Other assets | 3 | ' | ' |
Accrued and other current liabilities | -20 | -18 | ' |
Long-term pension and postretirement liabilities | -979 | -1,070 | ' |
Net amount recognized | -996 | -1,088 | ' |
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | ' | ' | ' |
Discount rate (as a percent) | 3.38% | 3.31% | ' |
Rate of compensation increase (as a percent) | 2.86% | 2.88% | ' |
Change in net loss: | ' | ' | ' |
Unrecognized net loss at beginning of fiscal year | 705 | 539 | ' |
Current year change recorded in accumulated other comprehensive income | -80 | 195 | ' |
Amortization reclassified to earnings | -33 | -29 | ' |
Unrecognized net loss at end of fiscal year | 592 | 705 | 539 |
Change in prior service credit: | ' | ' | ' |
Unrecognized prior service credit at beginning of fiscal year | -112 | -120 | ' |
Current year change recorded in accumulated other comprehensive income | 37 | -1 | ' |
Amortization reclassified to earnings | 7 | 9 | ' |
Unrecognized prior service credit at end of fiscal year | -68 | -112 | -120 |
Estimated amortization of actuarial losses from accumulated other comprehensive income into net periodic pension benefit cost in next fiscal year | ' | ' | ' |
Amortization of net actuarial loss | 24 | ' | ' |
Amortization of prior service credit | 5 | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 100.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 100.00% | 100.00% | ' |
Minimum required contributions and expected benefit payments | ' | ' | ' |
Minimum required contributions to pension plans in fiscal 2014 | 84 | ' | ' |
Expected benefit payments, fiscal 2014 | 86 | ' | ' |
Expected benefit payments, fiscal 2015 | 77 | ' | ' |
Expected benefit payments, fiscal 2016 | 80 | ' | ' |
Expected benefit payments, fiscal 2017 | 82 | ' | ' |
Expected benefit payments, fiscal 2018 | 87 | ' | ' |
Expected benefit payments, fiscal 2019-2023 | 508 | ' | ' |
Accumulated benefit obligation | 2,021 | 2,004 | ' |
Pension plans with accumulated benefit obligations in excess of plan assets: | ' | ' | ' |
Accumulated benefit obligation | 1,930 | 1,916 | ' |
Fair value of plan assets | 1,072 | 1,012 | ' |
Pension plans with projected benefit obligations in excess of plan assets: | ' | ' | ' |
Projected benefit obligation | 2,120 | 2,206 | ' |
Fair value of plan assets | 1,122 | 1,118 | ' |
Non-U.S. Plans | Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 43.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 43.00% | 41.00% | ' |
Non-U.S. Plans | Debt securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 33.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 35.00% | 37.00% | ' |
Non-U.S. Plans | Insurance contracts and other investments | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 22.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 20.00% | 20.00% | ' |
Non-U.S. Plans | Real estate investments | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 2.00% | ' | ' |
Weighted average asset allocations | ' | ' | ' |
Total weighted average asset allocations (as a percent) | 2.00% | 2.00% | ' |
Postretirement Benefit Plans | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at end of fiscal year | 39 | 55 | ' |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 3 | 3 | ' |
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | ' | ' | ' |
Discount rate (as a percent) | 4.85% | 3.85% | ' |
Rate of compensation increase (as a percent) | 4.00% | 3.35% | ' |
Change in prior service credit: | ' | ' | ' |
Unrecognized Postretirement Costs | -6 | 11 | ' |
Minimum required contributions and expected benefit payments | ' | ' | ' |
Expected benefit payments, fiscal 2014 | 3 | ' | ' |
Expected benefit payments, fiscal 2015 | 3 | ' | ' |
Expected benefit payments, fiscal 2016 | 3 | ' | ' |
Expected benefit payments, fiscal 2017 | 3 | ' | ' |
Expected benefit payments, fiscal 2018 | 3 | ' | ' |
Expected benefit payments, fiscal 2019-2023 | $13 | ' | ' |
Postretirement Benefit Plans | Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 50.00% | ' | ' |
Postretirement Benefit Plans | Debt securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target weighted average asset allocations (as a percent) | 50.00% | ' | ' |
Retirement_Plans_Details_3
Retirement Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Defined Contribution Retirement Plans | ' | ' | ' |
Expense for the defined contribution plans | $61 | $61 | $65 |
Deferred Compensation Plans and Rabbi Trust | ' | ' | ' |
Total deferred compensation liabilities | 99 | 83 | ' |
Value of the assets held by Rabbi Trusts, included in other assets on the Consolidated Balance Sheets | 83 | 83 | ' |
Total liabilities related to the assets held by the rabbi trust and reflected on the Consolidated Balance Sheets | 13 | 17 | ' |
U.S. Plans | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 941 | ' | ' |
Fair value of plan assets at end of fiscal year | 931 | ' | 851 |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 100.00% | ' | ' |
U.S. Plans | U.S. equity securities | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 237 | 176 | ' |
U.S. Plans | U.S. equity securities | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 237 | 176 | ' |
U.S. Plans | Non-U.S. equity securities | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 179 | 165 | ' |
U.S. Plans | Non-U.S. equity securities | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 179 | 165 | ' |
U.S. Plans | Government bonds | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 77 | 89 | ' |
U.S. Plans | Government bonds | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 77 | 89 | ' |
U.S. Plans | Corporate bonds | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 413 | 488 | ' |
U.S. Plans | Corporate bonds | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 413 | 488 | ' |
U.S. Plans | Other | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 14 | 14 | ' |
U.S. Plans | Other | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 14 | 14 | ' |
U.S. Plans | Subtotal | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 416 | 341 | ' |
U.S. Plans | Subtotal | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 504 | 591 | ' |
U.S. Plans | Subtotal | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 920 | 932 | ' |
U.S. Plans | Items to reconcile to fair value of plan assets | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 11 | 9 | ' |
U.S. Plans | Debt securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 55.00% | ' | ' |
U.S. Plans | Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 45.00% | ' | ' |
Non-U.S. Plans | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 1,118 | ' | ' |
Fair value of plan assets at end of fiscal year | 1,185 | ' | 980 |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 100.00% | ' | ' |
Non-U.S. Plans | U.S. equity securities | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 57 | 52 | ' |
Non-U.S. Plans | U.S. equity securities | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 57 | 52 | ' |
Non-U.S. Plans | Non-U.S. equity securities | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 95 | 81 | ' |
Non-U.S. Plans | Non-U.S. equity securities | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 95 | 81 | ' |
Non-U.S. Plans | Commingled equity funds | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 362 | 287 | ' |
Non-U.S. Plans | Commingled equity funds | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 362 | 287 | ' |
Non-U.S. Plans | Government bonds | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 143 | 186 | ' |
Non-U.S. Plans | Government bonds | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 143 | 186 | ' |
Non-U.S. Plans | Corporate bonds | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 119 | 123 | ' |
Non-U.S. Plans | Corporate bonds | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 119 | 123 | ' |
Non-U.S. Plans | Commingled bond funds | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 217 | 155 | ' |
Non-U.S. Plans | Commingled bond funds | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 217 | 155 | ' |
Non-U.S. Plans | Real estate investments | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 2.00% | ' | ' |
Non-U.S. Plans | Real estate investments | Level 3 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 19 | 20 | ' |
Return on assets held at end of fiscal year | -2 | -1 | ' |
Purchases, sales, and settlements, net | 3 | ' | ' |
Fair value of plan assets at end of fiscal year | 20 | 19 | ' |
Non-U.S. Plans | Other | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 1 | 1 | ' |
Non-U.S. Plans | Other | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 90 | 145 | ' |
Non-U.S. Plans | Other | Level 3 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 72 | 67 | ' |
Non-U.S. Plans | Other | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 163 | 213 | ' |
Non-U.S. Plans | Subtotal | Level 1 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 153 | 134 | ' |
Fair value corrections | ' | ' | ' |
Amount of non-U.S. securities reclassified from level 1 within the fair value hierarchy to level 2, due to a correction | ' | 102 | ' |
Non-U.S. Plans | Subtotal | Level 2 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 931 | 896 | ' |
Non-U.S. Plans | Subtotal | Level 3 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 72 | 67 | ' |
Non-U.S. Plans | Subtotal | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 1,156 | 1,097 | ' |
Non-U.S. Plans | Items to reconcile to fair value of plan assets | Fair Value | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 29 | 21 | ' |
Non-U.S. Plans | Hedge Funds | Level 3 | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 48 | 34 | ' |
Return on assets held at end of fiscal year | 4 | 2 | ' |
Purchases, sales, and settlements, net | ' | 12 | ' |
Fair value of plan assets at end of fiscal year | 52 | 48 | ' |
Non-U.S. Plans | Debt securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 33.00% | ' | ' |
Non-U.S. Plans | Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 43.00% | ' | ' |
Postretirement Benefit Plans | ' | ' | ' |
Summary of asset fair value | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 3 | ' | ' |
Fair value of plan assets at end of fiscal year | 3 | 3 | ' |
Health care cost trend assumptions are as follows: | ' | ' | ' |
Health care cost trend rate assumed for next fiscal year (as a percent) | 7.33% | 7.51% | ' |
Rate to which the cost trend rate is assumed to decline (as a percent) | 4.50% | 4.50% | ' |
Fiscal year the ultimate trend rate is achieved | '2029 | '2029 | ' |
A one-percentage point change in assumed healthcare cost trend rates would have the following effects: | ' | ' | ' |
Effect on postretirement benefit obligation on one percentage point increase | 3 | ' | ' |
Effect on postretirement benefit obligation on one percentage point decrease | ($3) | ' | ' |
Postretirement Benefit Plans | Debt securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 50.00% | ' | ' |
Postretirement Benefit Plans | Equity securities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation percentage | 50.00% | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' | ' |
U.S: Federal | ' | ($295) | $92 | $50 |
U.S: State | ' | -85 | 11 | 20 |
Non-U.S | ' | 321 | 194 | 174 |
Current income tax provision (benefit) | ' | -59 | 297 | 244 |
Deferred: | ' | ' | ' | ' |
U.S: Federal | ' | 71 | -50 | 55 |
U.S: State | ' | -1 | 4 | ' |
Non-U.S | ' | -40 | -2 | 48 |
Deferred income tax provision (benefit) | ' | 30 | -48 | 103 |
Provision (benefit) for income taxes | ' | -29 | 249 | 347 |
U.S. and non-U.S. components of income from continuing operations before income taxes | ' | ' | ' | ' |
U.S | ' | -238 | -96 | 134 |
Non-U.S | ' | 1,486 | 1,511 | 1,441 |
Income from continuing operations before income taxes | ' | 1,248 | 1,415 | 1,575 |
Reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations | ' | ' | ' | ' |
Notional U.S. federal income tax provision at the statutory rate | ' | 437 | 495 | 551 |
U.S. state income tax provision (benefit), net | ' | -56 | 10 | 13 |
Other (income) expense-Tax Sharing Agreement | ' | 64 | -18 | -9 |
Tax law changes | ' | ' | 21 | -4 |
Tax credits | ' | -11 | -9 | -9 |
Non-U.S. net earnings | ' | -277 | -225 | -253 |
Nondeductible charges | ' | 3 | 3 | 14 |
Change in accrued income tax liabilities | ' | -162 | 95 | 30 |
Valuation allowance | -107 | -31 | -107 | 1 |
Other | ' | 4 | -16 | 13 |
Provision (benefit) for income taxes | ' | ($29) | $249 | $347 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 28, 2012 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Sep. 27, 2013 |
ADC | ADC | ||||||
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit associated with settlement of certain U.S. tax matters | $331 | ' | $331 | ' | $35 | ' | ' |
Net tax benefits associated with reduction in valuation allowance and other items | ' | ' | 23 | ' | ' | ' | ' |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' |
Change in the valuation allowance | ' | 107 | 31 | 107 | -1 | 63 | 63 |
Valuation allowance | ' | 1,719 | 1,816 | 1,719 | ' | 177 | 177 |
Income tax expense associated with change in certain non-U.S. tax rates | ' | ' | ' | $17 | ' | ' | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accrued liabilities and reserves | $320 | $270 |
Tax loss and credit carryforwards | 3,431 | 3,382 |
Inventories | 55 | 54 |
Pension and postretirement benefits | 235 | 331 |
Deferred revenue | 5 | 15 |
Interest | 372 | 342 |
Unrecognized income tax benefits | 364 | 469 |
Other | 19 | 22 |
Total Deferred tax assets, Gross | 4,801 | 4,885 |
Deferred tax liabilities: | ' | ' |
Intangible assets | -778 | -764 |
Property, plant, and equipment | -64 | -101 |
Other | -38 | -85 |
Total Deferred tax liabilities | -880 | -950 |
Net deferred tax asset before valuation allowance | 3,921 | 3,935 |
Valuation allowance | -1,816 | -1,719 |
Net deferred tax asset | $2,105 | $2,216 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended |
Sep. 27, 2013 | |
Income Taxes | ' |
Valuation allowance related to share based compensation | $79,000,000 |
Tax Carryforwards | ' |
Cumulative undistributed earnings | 18,000,000,000 |
Estimated income tax expense if intention to permanently reinvest undistributed earnings changes | 1,500,000,000 |
Cash, cash equivalents and intercompany deposits available to distribute but considered to be permanently reinvested | 4,500,000,000 |
U.S. Federal | ' |
Tax Carryforwards | ' |
Tax credit carryforwards | 171,000,000 |
U.S. Federal | No expiration date | ' |
Tax Carryforwards | ' |
Tax credit carryforwards | 46,000,000 |
U.S. Federal | Expiring through 2033 | ' |
Tax Carryforwards | ' |
Operating loss carryforwards | 1,597,000,000 |
Tax credit carryforwards | 125,000,000 |
U.S. State | Expiring through 2033 | ' |
Tax Carryforwards | ' |
Operating loss carryforwards | 124,000,000 |
U.S. State | Expiring through 2028 | ' |
Tax Carryforwards | ' |
Tax credit carryforwards | 37,000,000 |
Non-U.S. Jurisdictions | ' |
Tax Carryforwards | ' |
Operating loss carryforwards | 1,461,000,000 |
Non-U.S. Jurisdictions | No expiration date | ' |
Tax Carryforwards | ' |
Operating loss carryforwards | 1,300,000,000 |
Tax credit carryforwards | 1,000,000 |
Capital loss carryforwards | 40,000,000 |
Non-U.S. Jurisdictions | Expiring through 2033 | ' |
Tax Carryforwards | ' |
Operating loss carryforwards | $161,000,000 |
Income_Taxes_Details_5
Income Taxes (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Activity related to the Company's unrecognized income tax benefits | ' | ' | ' |
Balance at beginning of fiscal year | $1,795 | $1,783 | $1,689 |
Additions related to prior periods tax positions | 90 | 41 | 123 |
Reductions related to prior periods tax positions | -271 | -36 | -98 |
Additions related to current period tax positions | 88 | 31 | 43 |
Acquisitions | ' | 7 | 45 |
Settlements | -8 | -12 | -3 |
Reductions due to lapse of applicable statute of limitations | -74 | -19 | -16 |
Balance at end of fiscal year | 1,620 | 1,795 | 1,783 |
Unrecognized income tax benefits that would impact income tax provision and effective tax rate | 1,471 | 1,714 | ' |
Unrecognized tax benefits, income tax penalties and interest accrued | 1,018 | 1,335 | ' |
Unrecognized tax benefits, income tax penalties and interest accrued, location income taxes | 1,015 | 1,299 | ' |
Unrecognized tax benefits, income tax penalties and interest accrued, location accrued and other current liabilities | 3 | 36 | ' |
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | -247 | 95 | 86 |
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $190 | ' | ' |
Maximum | ' | ' | ' |
Income Taxes | ' | ' | ' |
Statutes of limitations, income tax returns filed by the Company, state and local | '4 years | ' | ' |
Statutes of limitations, income tax returns filed by non-U.S. subsidiaries | '10 years | ' | ' |
Minimum | ' | ' | ' |
Income Taxes | ' | ' | ' |
Statutes of limitations, income tax returns filed by the Company, state and local | '3 years | ' | ' |
Statutes of limitations, income tax returns filed by non-U.S. subsidiaries | '3 years | ' | ' |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Other Income (Expense), Net | ' | ' | ' | ' |
Other income (expense), net | ' | ($183) | $50 | $27 |
Other nonoperating expense, settlement of certain U.S. tax matters | $231 | $231 | ' | $14 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 413 | 415 | 420 | 422 | 426 | 428 | 427 | 425 | 418 | 426 | 438 |
Dilutive impact of share-based compensation arrangements (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 4 | 5 |
Diluted (in shares) | 420 | 421 | 424 | 426 | 429 | 431 | 431 | 429 | 423 | 430 | 443 |
Share options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive shares excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive shares excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 12 | 13 |
Equity_Details
Equity (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | 31-May-13 | Mar. 31, 2013 | Mar. 31, 2013 | 31-May-12 | Mar. 30, 2012 | Mar. 30, 2012 | 31-May-11 | Mar. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2010 | Mar. 31, 2010 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 30, 2011 | Jun. 24, 2011 | Mar. 25, 2011 | Dec. 24, 2010 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 27, 2013 | Mar. 29, 2013 | Sep. 28, 2012 | Mar. 25, 2011 | Sep. 24, 2010 | Sep. 24, 2010 |
USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | CHF | CHF | CHF | USD ($) | CHF | ||||
item | item | item | item | item | item | |||||||||||||||||||||||||||
Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of shares that the board may authorize for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of additional shares which the board is authorized to issue subject to certain conditions | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares held in treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | 16 | ' | ' | ' | ' | ' | ' | ' | 17 | 16 | ' | ' | ' | ' | ' | ' | ' |
Common shares held in treasury, owned by subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | 8 | 11 | ' | ' | ' | ' | ' | ' | ' |
Cancellation of treasury shares (in shares) | 10 | ' | ' | 24 | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributed surplus established during the change of domicile for Swiss tax and statutory purposes ("Swiss Contributed Surplus") | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,520 | ' | ' | ' | $8,940 | ' | ' | ' | ' | ' | ' | ' | $8,520 | $8,940 | ' | 9,342 | ' | 9,745 | ' | ' | ' |
Dividend or cash distribution approved (in currency per share) | ' | $1 | 0.96 | ' | $0.84 | 0.8 | ' | $0.72 | 0.68 | $0.64 | 0.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of quarterly dividend installments | ' | 4 | 4 | ' | 4 | 4 | ' | 4 | 4 | 4 | 4 | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution quarterly installment payable (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution paid (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | $0.25 | $0.21 | $0.21 | $0.21 | $0.21 | $0.18 | $0.18 | $0.18 | $0.18 | $0.16 | $0.16 | $0.92 | $0.78 | $0.68 | ' | ' | ' | ' | ' | ' |
Common shares, par value (in currency per share) | ' | $0.44 | 0.57 | ' | $1.28 | 1.37 | ' | ' | ' | ' | ' | $0.44 | ' | $0.44 | ' | ' | ' | $1.28 | ' | ' | ' | $1.28 | ' | $0.44 | ' | ' | 0.57 | 0.57 | 0.97 | 1.37 | $1.60 | 1.73 |
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 206 | ' | ' | ' | 178 | ' | ' | ' | ' | ' | ' | ' | 206 | 178 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 6 | 25 | ' | ' | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 829 | 194 | 867 | ' | ' | ' | ' | ' | ' |
Amount available for repurchase, at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $478 | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Accumulated Other Comprehensive Income | ' | ' | ' |
Balance at the beginning of the period | $229 | $428 | $246 |
Pre-tax current period change | 140 | -221 | 267 |
Income tax (expense) benefit | -66 | 22 | -85 |
Balance at the end of the period | 303 | 229 | 428 |
Currency Translation | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' |
Balance at the beginning of the period | 959 | 1,090 | 1,040 |
Pre-tax current period change | -28 | -131 | 50 |
Balance at the end of the period | 931 | 959 | 1,090 |
Unrecognized Pension and Postretirement Benefit Costs | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' |
Balance at the beginning of the period | -700 | -612 | -764 |
Pre-tax current period change | 204 | -114 | 238 |
Income tax (expense) benefit | -73 | 26 | -86 |
Balance at the end of the period | -569 | -700 | -612 |
Gain (Loss) on Cash Flow Hedges | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' |
Balance at the beginning of the period | -30 | -50 | -30 |
Pre-tax current period change | -36 | 24 | -21 |
Income tax (expense) benefit | 7 | -4 | 1 |
Balance at the end of the period | ($59) | ($30) | ($50) |
Share_Plans_Details
Share Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Share Based Compensation Arrangements: | ' | ' | ' |
Share-based compensation expenses | $78 | $68 | $71 |
Tax benefit associated with share based compensation arrangements | 24 | 21 | 22 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ' | ' | ' |
Weighted-average grant-date fair value (in dollars per share) | $8.62 | $9.49 | $9.13 |
Expected share price volatility (as a percent) | 34.00% | 36.00% | 36.00% |
Risk free interest rate (as a percent) | 0.90% | 1.30% | 1.20% |
Expected annual dividend per share | $0.84 | $0.84 | $0.72 |
Expected life of options | '6 years | '6 years | '5 years 1 month 6 days |
Additional disclosures | ' | ' | ' |
Total cash received by the Company related to the exercise of options | 214 | 60 | 80 |
Share options | ' | ' | ' |
Share Based Compensation Arrangements: | ' | ' | ' |
Vesting period | '4 years | ' | ' |
Expiration period | '10 years | ' | ' |
Share Based Compensation Costs Not Recognized | ' | ' | ' |
Share-based compensation, share-based awards, total compensation cost not yet recognized | 38 | ' | ' |
Share-based compensation, share-based awards, total compensation cost not yet recognized, expected period for recognition | '1 year 8 months 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ' | ' | ' |
Outstanding share options at the beginning of the period | 20,552,689 | ' | ' |
Share options granted | 2,854,600 | ' | ' |
Share options exercised | -6,507,750 | ' | ' |
Share options expired | -423,261 | ' | ' |
Share options forfeited | -644,414 | ' | ' |
Outstanding share options at the end of the period | 15,831,864 | 20,552,689 | ' |
Share options outstanding, weighted-average exercise price at the beginning of the period (in dollars per share) | $32.25 | ' | ' |
Share options granted, weighted-average exercise price (in dollars per share) | $34.27 | $34.49 | $33.86 |
Share options exercised, weighted-average exercise price (in dollars per share) | $32.79 | ' | ' |
Share options expired, weighted-average exercise price (in dollars per share) | $39.77 | ' | ' |
Share options forfeited, weighted-average exercise price (in dollars per share) | $32.44 | ' | ' |
Share options outstanding, weighted-average exercise price at the end of the period (in dollars per share) | $32.18 | $32.25 | ' |
Share options vested and expected to vest at end of period | 15,393,747 | ' | ' |
Share options exercisable at end of period | 9,088,414 | ' | ' |
Share options vested and expected to vest at end of period, weighted-average exercise price (in dollars per share) | $32.15 | ' | ' |
Share options exercisable at end of period, weighted-average exercise price (in dollars per share) | $31.39 | ' | ' |
Share options outstanding at end of period, weighted-average remaining contractual term | '5 years 10 months 24 days | ' | ' |
Share options vested and expected to vest at end of period, weighted-average remaining contractual term | '5 years 10 months 24 days | ' | ' |
Share options exercisable at end of period, weighted-average remaining contractual term | '4 years 3 months 18 days | ' | ' |
Share options outstanding at end of period, aggregate intrinsic value | 314 | ' | ' |
Share options vested and expected to vest at end of period, aggregate intrinsic value | 306 | ' | ' |
Share options exercisable at end of period, aggregate intrinsic value | 188 | ' | ' |
Additional disclosures | ' | ' | ' |
Total intrinsic value of the Company's options exercised | 69 | 31 | 50 |
Total cash received by the Company related to the exercise of options | 214 | 60 | 80 |
Restricted share awards | ' | ' | ' |
Share Based Compensation Arrangements: | ' | ' | ' |
Vesting period | '4 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | ' | ' | ' |
Outstanding shares at the beginning of the period | 4,585,994 | ' | ' |
Shares granted | 1,764,936 | ' | ' |
Shares vested | -1,906,890 | ' | ' |
Shares forfeited | -460,115 | ' | ' |
Outstanding shares at the end of the period | 3,983,925 | 4,585,994 | ' |
Weighted-average grant-date fair value at the beginning of the period (in dollars per share) | $30.09 | ' | ' |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $34.69 | $34.63 | $34.14 |
Shares vested, weighted-average grant-date fair value (in dollars per share) | $26.65 | ' | ' |
Shares forfeited, weighted-average grant-date fair value (in dollars per share) | $32.50 | ' | ' |
Weighted-average grant-date fair value at the end of the period (in dollars per share) | $33.50 | $30.09 | ' |
Share Based Compensation Costs Not Recognized | ' | ' | ' |
Share-based compensation, share-based awards, total compensation cost not yet recognized | 81 | ' | ' |
Share-based compensation, share-based awards, total compensation cost not yet recognized, expected period for recognition | '1 year 8 months 12 days | ' | ' |
Additional disclosures | ' | ' | ' |
The total fair value of share awards, vested during the period | 51 | 42 | 54 |
Performance share awards | ' | ' | ' |
Share Based Compensation Arrangements: | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | ' | ' | ' |
Shares granted | 327,226 | ' | ' |
Shares forfeited | -15,807 | ' | ' |
Outstanding shares at the end of the period | 311,419 | ' | ' |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $34.16 | ' | ' |
Shares forfeited, weighted-average grant-date fair value (in dollars per share) | $34.05 | ' | ' |
Weighted-average grant-date fair value at the end of the period (in dollars per share) | $34.17 | ' | ' |
Share Based Compensation Costs Not Recognized | ' | ' | ' |
Share-based compensation, share-based awards, total compensation cost not yet recognized | $7 | ' | ' |
Share-based compensation, share-based awards, total compensation cost not yet recognized, expected period for recognition | '2 years 1 month 6 days | ' | ' |
Additional pay-out of performance share award (as a percent) | 100.00% | ' | ' |
Performance share awards | Minimum | ' | ' | ' |
Share Based Compensation Costs Not Recognized | ' | ' | ' |
Pay-out of performance share award (as a percent) | 0.00% | ' | ' |
Performance share awards | Maximum | ' | ' | ' |
Share Based Compensation Costs Not Recognized | ' | ' | ' |
Pay-out of performance share award (as a percent) | 200.00% | ' | ' |
Stock and Incentive Plans | ' | ' | ' |
Share Based Compensation Arrangements: | ' | ' | ' |
Maximum number of common shares to be issued as awards | 67,000,000 | ' | ' |
Shares available for issuance | 26,000,000 | ' | ' |
Segment_and_Geographic_Data_De
Segment and Geographic Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
item | |||||||||||
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Net sales | $3,432 | $3,449 | $3,265 | $3,134 | $3,364 | $3,499 | $3,249 | $3,170 | $13,280 | $13,282 | $13,778 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,556 | 1,518 | 1,687 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 607 | 609 | 564 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 615 | 533 | 574 |
Transportation Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,485 | 5,128 | 4,912 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 972 | 754 | 729 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 296 | 271 | 234 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 325 | 288 | 264 |
Network Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,066 | 3,310 | 3,671 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 136 | 247 | 300 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 139 | 164 | 158 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 86 | 104 | 119 |
Industrial Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,007 | 2,987 | 3,144 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 359 | 378 | 477 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 92 | 86 | 86 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 109 | 67 | 90 |
Consumer Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,722 | 1,857 | 2,051 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 89 | 139 | 181 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 80 | 88 | 86 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | $95 | $74 | $101 |
Segment_and_Geographic_Data_De1
Segment and Geographic Data (Details 2) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
In Millions, unless otherwise specified | |||
Segment Data | ' | ' | ' |
Assets | $18,461 | $19,306 | $17,723 |
Other non-current assets | 268 | 290 | ' |
Total segment assets | ' | ' | ' |
Segment Data | ' | ' | ' |
Assets | 7,251 | 7,364 | 7,359 |
Transportation Solutions | ' | ' | ' |
Segment Data | ' | ' | ' |
Assets | 2,977 | 2,877 | 2,732 |
Network Solutions | ' | ' | ' |
Segment Data | ' | ' | ' |
Assets | 1,684 | 1,857 | 1,955 |
Industrial Solutions | ' | ' | ' |
Segment Data | ' | ' | ' |
Assets | 1,603 | 1,549 | 1,499 |
Consumer Solutions | ' | ' | ' |
Segment Data | ' | ' | ' |
Assets | 987 | 1,081 | 1,173 |
Reconciling items | ' | ' | ' |
Segment Data | ' | ' | ' |
Other current assets | 2,224 | 2,352 | 2,762 |
Other non-current assets | $8,986 | $9,590 | $7,602 |
Segment_and_Geographic_Data_De2
Segment and Geographic Data (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $3,432 | $3,449 | $3,265 | $3,134 | $3,364 | $3,499 | $3,249 | $3,170 | $13,280 | $13,282 | $13,778 |
Property, Plant, and Equipment, Net | 3,166 | ' | ' | ' | 3,213 | ' | ' | ' | 3,166 | 3,213 | 3,140 |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,811 | 3,664 | 3,657 |
Property, Plant, and Equipment, Net | 958 | ' | ' | ' | 1,042 | ' | ' | ' | 958 | 1,042 | 968 |
Other Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 566 | 624 | 652 |
Property, Plant, and Equipment, Net | 80 | ' | ' | ' | 84 | ' | ' | ' | 80 | 84 | 65 |
Total Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,377 | 4,288 | 4,309 |
Property, Plant, and Equipment, Net | 1,038 | ' | ' | ' | 1,126 | ' | ' | ' | 1,038 | 1,126 | 1,033 |
Switzerland | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,689 | 3,719 | 3,870 |
Property, Plant, and Equipment, Net | 54 | ' | ' | ' | 52 | ' | ' | ' | 54 | 52 | 59 |
Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 123 | 120 | 426 |
Property, Plant, and Equipment, Net | 356 | ' | ' | ' | 339 | ' | ' | ' | 356 | 339 | 381 |
Other Europe/Middle East/Africa | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 750 | 663 | 662 |
Property, Plant, and Equipment, Net | 702 | ' | ' | ' | 692 | ' | ' | ' | 702 | 692 | 677 |
Total Europe/Middle East/Africa | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,562 | 4,502 | 4,958 |
Property, Plant, and Equipment, Net | 1,112 | ' | ' | ' | 1,083 | ' | ' | ' | 1,112 | 1,083 | 1,117 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,197 | 2,159 | 2,172 |
Property, Plant, and Equipment, Net | 516 | ' | ' | ' | 432 | ' | ' | ' | 516 | 432 | 395 |
Other Asia-Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,144 | 2,333 | 2,339 |
Property, Plant, and Equipment, Net | 500 | ' | ' | ' | 572 | ' | ' | ' | 500 | 572 | 595 |
Total Asia-Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,341 | 4,492 | 4,511 |
Property, Plant, and Equipment, Net | $1,016 | ' | ' | ' | $1,004 | ' | ' | ' | $1,016 | $1,004 | $990 |
Quarterly_Financial_Data_unaud2
Quarterly Financial Data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $3,432 | $3,449 | $3,265 | $3,134 | $3,364 | $3,499 | $3,249 | $3,170 | $13,280 | $13,282 | $13,778 |
Gross margin | 1,156 | 1,132 | 1,052 | 989 | 1,064 | 1,018 | 1,021 | 943 | 4,329 | 4,046 | 4,271 |
Acquisition and integration costs | 3 | 3 | 3 | 5 | 4 | 15 | 4 | 4 | 14 | 27 | 19 |
Restructuring and other charges, net | 71 | 67 | 81 | 92 | 42 | 36 | 32 | 18 | 311 | 128 | 136 |
Amounts attributable to TE Connectivity Ltd.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | 387 | 332 | 278 | 279 | 398 | 260 | 267 | 238 | 1,276 | 1,163 | 1,223 |
Income (loss) from discontinued operations, net of income taxes | ' | 3 | -1 | -2 | -2 | -61 | -10 | 22 | ' | -51 | 22 |
Net income attributable to TE Connectivity Ltd. | 387 | 335 | 277 | 277 | 396 | 199 | 257 | 260 | 1,276 | 1,112 | 1,245 |
Basic earnings per share attributable to TE Connectivity Ltd.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.94 | $0.80 | $0.66 | $0.66 | $0.93 | $0.61 | $0.63 | $0.56 | $3.05 | $2.73 | $2.79 |
Income (loss) from discontinued operations, net of income taxes (in dollars per share) | ' | $0.01 | ' | ' | ' | ($0.15) | ($0.03) | $0.05 | $0 | ($0.12) | $0.05 |
Net income (in dollars per share) | $0.94 | $0.81 | $0.66 | $0.66 | $0.93 | $0.46 | $0.60 | $0.61 | $3.05 | $2.61 | $2.84 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.92 | $0.79 | $0.66 | $0.65 | $0.93 | $0.60 | $0.62 | $0.55 | $3.02 | $2.70 | $2.76 |
Income (loss) from discontinued operations, net of income taxes (in dollars per share) | ' | $0.01 | ' | ' | ($0.01) | ($0.14) | ($0.02) | $0.06 | $0 | ($0.11) | $0.05 |
Net income (in dollars per share) | $0.92 | $0.80 | $0.65 | $0.65 | $0.92 | $0.46 | $0.60 | $0.61 | $3.02 | $2.59 | $2.81 |
Weighted-average number of shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 413 | 415 | 420 | 422 | 426 | 428 | 427 | 425 | 418 | 426 | 438 |
Diluted (in shares) | 420 | 421 | 424 | 426 | 429 | 431 | 431 | 429 | 423 | 430 | 443 |
Income tax benefit associated with settlement of certain U.S. tax matters | ' | ' | ' | 331 | ' | ' | ' | ' | 331 | ' | 35 |
Other nonoperating expense, settlement of certain U.S. tax matters | ' | ' | ' | 231 | ' | ' | ' | ' | 231 | ' | 14 |
Income tax expense related to adjustments to prior year income tax returns | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit associated with reduction in valuation allowance related to tax loss carryforwards | ' | ' | ' | ' | 107 | ' | ' | ' | 31 | 107 | -1 |
ADC Telecommunications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 843 |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit associated with reduction in valuation allowance related to tax loss carryforwards | 63 | ' | ' | ' | ' | ' | ' | ' | 63 | ' | ' |
Amortization of fair value adjustments to inventories and customer order backlog | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39 |
Deutsch Group SAS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 327 | ' |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of fair value adjustments to inventories and customer order backlog | ' | ' | ' | ' | ' | $68 | ' | ' | ' | $75 | ' |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Oct. 29, 2013 | Oct. 18, 2013 |
5.95% senior notes due 2014 | 5.95% senior notes due 2014 | Subsequent event | Subsequent event | |
5.95% senior notes due 2014 | ||||
Subsequent Events: | ' | ' | ' | ' |
Debt instrument, interest rate (as a percent) | 5.95% | 5.95% | ' | 5.95% |
Aggregate principal amount of debt called for redemption | ' | ' | ' | $300,000,000 |
Increase in share repurchase authorization | ' | ' | $1,000,000,000 | ' |
Tyco_Electronics_Group_SA_Deta
Tyco Electronics Group S.A. (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 29, 2012 | Mar. 30, 2012 | Dec. 30, 2011 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Tyco Electronics Group S.A. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in TEGSA | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $3,432 | $3,449 | $3,265 | $3,134 | $3,364 | $3,499 | $3,249 | $3,170 | $13,280 | $13,282 | $13,778 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,951 | 9,236 | 9,507 |
Gross margin | 1,156 | 1,132 | 1,052 | 989 | 1,064 | 1,018 | 1,021 | 943 | 4,329 | 4,046 | 4,271 |
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,773 | 1,685 | 1,728 |
Research, development, and engineering expenses | ' | ' | ' | ' | ' | ' | ' | ' | 675 | 688 | 701 |
Acquisition and integration costs | 3 | 3 | 3 | 5 | 4 | 15 | 4 | 4 | 14 | 27 | 19 |
Restructuring and other charges, net | 71 | 67 | 81 | 92 | 42 | 36 | 32 | 18 | 311 | 128 | 136 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,556 | 1,518 | 1,687 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 17 | 23 | 22 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -142 | -176 | -161 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -183 | 50 | 27 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,248 | 1,415 | 1,575 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 29 | -249 | -347 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,277 | 1,166 | 1,228 |
Income (loss) from discontinued operations, net of income taxes | ' | 3 | -1 | -2 | -2 | -61 | -10 | 22 | ' | -51 | 22 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,277 | 1,115 | 1,250 |
Less: net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -3 | -5 |
Net income attributable to TE Connectivity Ltd. | 387 | 335 | 277 | 277 | 396 | 199 | 257 | 260 | 1,276 | 1,112 | 1,245 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 74 | -199 | 182 |
Comprehensive income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | 1,350 | 913 | 1,427 |
Consolidating Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -2,978 | -2,533 | -2,994 |
Equity in net income (loss) of subsidiaries of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102 | -44 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -2,978 | -2,431 | -3,038 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,431 | -3,038 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -2,978 | -2,431 | -3,038 |
Net income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | -2,978 | -2,431 | -3,038 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -138 | 402 | -369 |
Comprehensive income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | -3,116 | -2,029 | -3,407 |
TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 156 | 102 | 177 |
Acquisition and integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 3 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -156 | -103 | -180 |
Equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 1,445 | 1,277 | 1,422 |
Equity in net income (loss) of subsidiaries of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -51 | 22 |
Intercompany interest and fees | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -11 | -19 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,276 | 1,112 | 1,245 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,112 | 1,245 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,276 | 1,112 | 1,245 |
Net income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | 1,276 | 1,112 | 1,245 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 74 | -199 | 182 |
Comprehensive income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | 1,350 | 913 | 1,427 |
TEGSA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -122 | 91 |
Acquisition and integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -3 | 120 | -91 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -135 | -168 | -150 |
Equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 1,533 | 1,256 | 1,572 |
Equity in net income (loss) of subsidiaries of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -51 | 22 |
Intercompany interest and fees | ' | ' | ' | ' | ' | ' | ' | ' | 54 | 69 | 91 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,449 | 1,226 | 1,444 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -4 | ' | ' |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,226 | 1,444 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,445 | 1,226 | 1,444 |
Net income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | 1,445 | 1,226 | 1,444 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 74 | -199 | 182 |
Comprehensive income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | 1,519 | 1,027 | 1,626 |
Intercompany transactions gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' |
Other Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 13,280 | 13,282 | 13,778 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,951 | 9,236 | 9,507 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 4,329 | 4,046 | 4,271 |
Selling, general, and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,614 | 1,705 | 1,460 |
Research, development, and engineering expenses | ' | ' | ' | ' | ' | ' | ' | ' | 675 | 688 | 701 |
Acquisition and integration costs | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 24 | 16 |
Restructuring and other charges, net | ' | ' | ' | ' | ' | ' | ' | ' | 311 | 128 | 136 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,715 | 1,501 | 1,958 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 17 | 23 | 22 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -8 | -11 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -183 | 50 | 27 |
Intercompany interest and fees | ' | ' | ' | ' | ' | ' | ' | ' | -41 | -58 | -72 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,501 | 1,508 | 1,924 |
Income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 33 | -249 | -347 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,259 | 1,577 |
Income (loss) from discontinued operations, net of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | -51 | 22 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,534 | 1,208 | 1,599 |
Less: net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -3 | -5 |
Net income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | 1,533 | 1,205 | 1,594 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 64 | -203 | 187 |
Comprehensive income attributable to TE Connectivity Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | $1,597 | $1,002 | $1,781 |
Tyco_Electronics_Group_SA_Deta1
Tyco Electronics Group S.A. (Details 2) (USD $) | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 | Sep. 24, 2010 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $1,403 | $1,589 | $1,218 | $1,990 |
Accounts receivable, net | 2,323 | 2,343 | ' | ' |
Inventories | 1,762 | 1,808 | ' | ' |
Prepaid expenses and other current assets | 487 | 474 | ' | ' |
Deferred income taxes | 334 | 289 | ' | ' |
Total current assets | 6,309 | 6,503 | ' | ' |
Property, plant, and equipment, net | 3,166 | 3,213 | 3,140 | ' |
Goodwill | 4,326 | 4,308 | 3,288 | ' |
Intangible assets, net | 1,244 | 1,352 | ' | ' |
Deferred income taxes | 2,146 | 2,460 | ' | ' |
Receivable from Tyco International Ltd. and Covidien plc | 1,002 | 1,180 | ' | ' |
Other assets | 268 | 290 | ' | ' |
Total Assets | 18,461 | 19,306 | 17,723 | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 711 | 1,015 | ' | ' |
Accounts payable | 1,383 | 1,292 | ' | ' |
Accrued and other current liabilities | 1,762 | 1,576 | ' | ' |
Deferred revenue | 68 | 121 | ' | ' |
Total current liabilities | 3,924 | 4,004 | ' | ' |
Long-term debt | 2,303 | 2,696 | ' | ' |
Long-term pension and postretirement liabilities | 1,155 | 1,353 | ' | ' |
Deferred income taxes | 321 | 448 | ' | ' |
Income taxes | 1,979 | 2,311 | ' | ' |
Other liabilities | 393 | 517 | ' | ' |
Total Liabilities | 10,075 | 11,329 | ' | ' |
Total Equity | 8,386 | 7,977 | 7,484 | 7,056 |
Total Liabilities and Equity | 18,461 | 19,306 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | -2,300 | -45 | ' | ' |
Total current assets | -2,300 | -45 | ' | ' |
Investment in subsidiaries | -24,054 | -25,533 | ' | ' |
Intercompany loans receivable | -11,627 | -11,151 | ' | ' |
Total Assets | -37,981 | -36,729 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables | -2,300 | -45 | ' | ' |
Total current liabilities | -2,300 | -45 | ' | ' |
Intercompany loans payable | -11,627 | -11,151 | ' | ' |
Total Liabilities | -13,927 | -11,196 | ' | ' |
Total Equity | -24,054 | -25,533 | ' | ' |
Total Liabilities and Equity | -37,981 | -36,729 | ' | ' |
TE Connectivity Ltd. | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Accounts receivable, net | ' | 1 | ' | ' |
Intercompany receivables | 1,823 | 16 | ' | ' |
Prepaid expenses and other current assets | 6 | 2 | ' | ' |
Total current assets | 1,829 | 19 | ' | ' |
Investment in subsidiaries | 7,014 | 8,192 | ' | ' |
Intercompany loans receivable | 18 | 11 | ' | ' |
Total Assets | 8,861 | 8,222 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 1 | 2 | ' | ' |
Accrued and other current liabilities | 213 | 210 | ' | ' |
Intercompany payables | 256 | 29 | ' | ' |
Total current liabilities | 470 | 241 | ' | ' |
Intercompany loans payable | 5 | 4 | ' | ' |
Total Liabilities | 475 | 245 | ' | ' |
Total Equity | 8,386 | 7,977 | ' | ' |
Total Liabilities and Equity | 8,861 | 8,222 | ' | ' |
TEGSA | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | 222 | ' | ' | ' |
Prepaid expenses and other current assets | 1 | 1 | ' | ' |
Total current assets | 223 | 1 | ' | ' |
Investment in subsidiaries | 17,040 | 17,341 | ' | ' |
Intercompany loans receivable | 2,120 | 2,779 | ' | ' |
Other assets | 28 | 40 | ' | ' |
Total Assets | 19,411 | 20,161 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 650 | 1,014 | ' | ' |
Accrued and other current liabilities | 49 | 70 | ' | ' |
Total current liabilities | 699 | 1,084 | ' | ' |
Long-term debt | 2,213 | 2,529 | ' | ' |
Intercompany loans payable | 9,485 | 8,356 | ' | ' |
Total Liabilities | 12,397 | 11,969 | ' | ' |
Total Equity | 7,014 | 8,192 | ' | ' |
Total Liabilities and Equity | 19,411 | 20,161 | ' | ' |
Other Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 1,403 | 1,589 | 1,218 | 1,990 |
Accounts receivable, net | 2,323 | 2,342 | ' | ' |
Inventories | 1,762 | 1,808 | ' | ' |
Intercompany receivables | 255 | 29 | ' | ' |
Prepaid expenses and other current assets | 480 | 471 | ' | ' |
Deferred income taxes | 334 | 289 | ' | ' |
Total current assets | 6,557 | 6,528 | ' | ' |
Property, plant, and equipment, net | 3,166 | 3,213 | ' | ' |
Goodwill | 4,326 | 4,308 | ' | ' |
Intangible assets, net | 1,244 | 1,352 | ' | ' |
Deferred income taxes | 2,146 | 2,460 | ' | ' |
Intercompany loans receivable | 9,489 | 8,361 | ' | ' |
Receivable from Tyco International Ltd. and Covidien plc | 1,002 | 1,180 | ' | ' |
Other assets | 240 | 250 | ' | ' |
Total Assets | 28,170 | 27,652 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 61 | 1 | ' | ' |
Accounts payable | 1,382 | 1,290 | ' | ' |
Accrued and other current liabilities | 1,500 | 1,296 | ' | ' |
Deferred revenue | 68 | 121 | ' | ' |
Intercompany payables | 2,044 | 16 | ' | ' |
Total current liabilities | 5,055 | 2,724 | ' | ' |
Long-term debt | 90 | 167 | ' | ' |
Intercompany loans payable | 2,137 | 2,791 | ' | ' |
Long-term pension and postretirement liabilities | 1,155 | 1,353 | ' | ' |
Deferred income taxes | 321 | 448 | ' | ' |
Income taxes | 1,979 | 2,311 | ' | ' |
Other liabilities | 393 | 517 | ' | ' |
Total Liabilities | 11,130 | 10,311 | ' | ' |
Total Equity | 17,040 | 17,341 | ' | ' |
Total Liabilities and Equity | $28,170 | $27,652 | ' | ' |
Tyco_Electronics_Group_SA_Deta2
Tyco Electronics Group S.A. (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net cash provided by (used in) continuing operating activities | $2,048 | $1,888 | $1,722 |
Net cash provided by (used in) discontinued operating activities | -2 | 59 | 57 |
Net cash provided by operating activities | 2,046 | 1,947 | 1,779 |
Cash Flows From Investing Activities: | ' | ' | ' |
Capital expenditures | -615 | -533 | -574 |
Proceeds from sale of property, plant, and equipment | 39 | 23 | 65 |
Proceeds from sale of intangible assets | ' | ' | 68 |
Proceeds from sale of short-term investments | ' | ' | 155 |
Acquisition of businesses, net of cash acquired | -6 | -1,384 | -731 |
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 14 | 394 | ' |
Other | 23 | -9 | -8 |
Net cash used in continuing investing activities | -545 | -1,509 | -1,025 |
Net cash used in discontinued investing activities | ' | -1 | -18 |
Net cash used in investing activities | -545 | -1,510 | -1,043 |
Cash Flows From Financing Activities: | ' | ' | ' |
Net increase (decrease) in commercial paper | 50 | 300 | -100 |
Proceeds from long-term debt | ' | 748 | 249 |
Repayment of long-term debt | -715 | -642 | -565 |
Proceeds from exercise of share options | 214 | 60 | 80 |
Repurchase of common shares | -844 | -185 | -865 |
Payment of common share dividends and cash distributions to shareholders | -384 | -332 | -296 |
Other | -1 | 44 | 23 |
Net cash used in continuing financing activities | -1,680 | -7 | -1,474 |
Net cash provided by (used in) discontinued financing activities | 2 | -58 | -38 |
Net cash used in financing activities | -1,678 | -65 | -1,512 |
Effect of currency translation on cash | -9 | -1 | 5 |
Net increase (decrease) in cash and cash equivalents | -186 | 371 | -771 |
Less: net increase in cash and cash equivalents related to discontinued operations | ' | ' | -1 |
Cash and cash equivalents at beginning of fiscal year | 1,589 | 1,218 | 1,990 |
Cash and cash equivalents at end of fiscal year | 1,403 | 1,589 | 1,218 |
Consolidating Adjustments | ' | ' | ' |
Cash Flows From Operating Activities: | ' | ' | ' |
Net cash provided by (used in) continuing operating activities | -5,876 | -284 | -3,300 |
Net cash provided by operating activities | -5,876 | -284 | -3,300 |
Cash Flows From Investing Activities: | ' | ' | ' |
Intercompany distribution | -1,100 | ' | ' |
Change in intercompany loans | -1,566 | -2,138 | -4,427 |
Net cash used in continuing investing activities | ' | -2,138 | -4,427 |
Net cash used in investing activities | -2,666 | -2,138 | -4,427 |
Cash Flows From Financing Activities: | ' | ' | ' |
Intercompany distributions | 6,976 | 284 | 3,300 |
Loan activity with parent | 1,566 | 2,138 | 4,427 |
Net cash used in continuing financing activities | 8,542 | 2,422 | 7,727 |
Net cash used in financing activities | 8,542 | 2,422 | 7,727 |
TE Connectivity Ltd. | ' | ' | ' |
Cash Flows From Operating Activities: | ' | ' | ' |
Net cash provided by (used in) continuing operating activities | 3,621 | -97 | 3,100 |
Net cash provided by operating activities | 3,621 | -97 | 3,100 |
Cash Flows From Investing Activities: | ' | ' | ' |
Proceeds from sale of property, plant, and equipment | 1 | 7 | ' |
Change in intercompany loans | ' | -22 | 9 |
Other | -3 | ' | ' |
Net cash used in continuing investing activities | ' | -15 | 9 |
Net cash used in investing activities | -2 | -15 | 9 |
Cash Flows From Financing Activities: | ' | ' | ' |
Changes in parent company equity | -826 | 639 | -1,936 |
Repurchase of common shares | -602 | -185 | -865 |
Payment of common share dividends and cash distributions to shareholders | -391 | -342 | -308 |
Loan activity with parent | -1,800 | ' | ' |
Net cash used in continuing financing activities | -3,619 | 112 | -3,109 |
Net cash used in financing activities | -3,619 | 112 | -3,109 |
TEGSA | ' | ' | ' |
Cash Flows From Operating Activities: | ' | ' | ' |
Net cash provided by (used in) continuing operating activities | 1,972 | 171 | -151 |
Net cash provided by operating activities | 1,972 | 171 | -151 |
Cash Flows From Investing Activities: | ' | ' | ' |
Intercompany distribution | 1,100 | ' | ' |
Change in intercompany loans | 1,566 | 2,160 | 4,418 |
Net cash used in continuing investing activities | ' | 2,160 | 4,418 |
Net cash used in investing activities | 2,666 | 2,160 | 4,418 |
Cash Flows From Financing Activities: | ' | ' | ' |
Changes in parent company equity | -174 | -3,371 | -1,116 |
Net increase (decrease) in commercial paper | 50 | 300 | -100 |
Proceeds from long-term debt | ' | 748 | 249 |
Repayment of long-term debt | -714 | ' | ' |
Intercompany distributions | -3,800 | ' | -3,300 |
Other | ' | -8 | ' |
Net cash used in continuing financing activities | -4,638 | -2,331 | -4,267 |
Net cash used in financing activities | -4,638 | -2,331 | -4,267 |
Other Subsidiaries | ' | ' | ' |
Cash Flows From Operating Activities: | ' | ' | ' |
Net cash provided by (used in) continuing operating activities | 2,331 | 2,098 | 2,073 |
Net cash provided by (used in) discontinued operating activities | -2 | 59 | 57 |
Net cash provided by operating activities | 2,329 | 2,157 | 2,130 |
Cash Flows From Investing Activities: | ' | ' | ' |
Capital expenditures | -615 | -533 | -574 |
Proceeds from sale of property, plant, and equipment | 38 | 16 | 65 |
Proceeds from sale of intangible assets | ' | ' | 68 |
Proceeds from sale of short-term investments | ' | ' | 155 |
Acquisition of businesses, net of cash acquired | -6 | -1,384 | -731 |
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 14 | 394 | ' |
Other | 26 | -9 | -8 |
Net cash used in continuing investing activities | ' | -1,516 | -1,025 |
Net cash used in discontinued investing activities | ' | -1 | -18 |
Net cash used in investing activities | -543 | -1,517 | -1,043 |
Cash Flows From Financing Activities: | ' | ' | ' |
Changes in parent company equity | 1,000 | 2,732 | 3,052 |
Repayment of long-term debt | -1 | -642 | -565 |
Proceeds from exercise of share options | 214 | 60 | 80 |
Repurchase of common shares | -242 | ' | ' |
Payment of common share dividends and cash distributions to shareholders | 7 | 10 | 12 |
Intercompany distributions | -3,176 | -284 | ' |
Loan activity with parent | 234 | -2,138 | -4,427 |
Other | -1 | 52 | 23 |
Net cash used in continuing financing activities | -1,965 | -210 | -1,825 |
Net cash provided by (used in) discontinued financing activities | 2 | -58 | -38 |
Net cash used in financing activities | -1,963 | -268 | -1,863 |
Effect of currency translation on cash | -9 | -1 | 5 |
Net increase (decrease) in cash and cash equivalents | -186 | 371 | -771 |
Less: net increase in cash and cash equivalents related to discontinued operations | ' | ' | -1 |
Cash and cash equivalents at beginning of fiscal year | 1,589 | 1,218 | 1,990 |
Cash and cash equivalents at end of fiscal year | $1,403 | $1,589 | $1,218 |
Disclosures_Required_by_Swiss_1
Disclosures Required by Swiss Law (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Disclosures Required by Swiss Law | ' | ' |
Total personnel expenses | $3,967 | $3,876 |
Fire insurance value of property, plant, and equipment | $11,641 | $11,555 |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 30, 2011 |
Allowance for doubtful accounts receivable | ' | ' | ' |
Valuation and qualifying accounts. | ' | ' | ' |
Balance at Beginning of Year | $41 | $38 | $43 |
Additions Charged to Costs and Expenses | 11 | 7 | -2 |
Acquisitions, Divestitures and Other | ' | 2 | 1 |
Deductions | -4 | -6 | -4 |
Balance at End of Year | 48 | 41 | 38 |
Valuation allowance on deferred tax assets | ' | ' | ' |
Valuation and qualifying accounts. | ' | ' | ' |
Balance at Beginning of Year | 1,719 | 1,921 | 2,231 |
Additions Charged to Costs and Expenses | 323 | 54 | 50 |
Acquisitions, Divestitures and Other | ' | 31 | 260 |
Deductions | -226 | -287 | -620 |
Balance at End of Year | $1,816 | $1,719 | $1,921 |