Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 28, 2014 | Apr. 21, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'TE Connectivity Ltd. | ' |
Entity Central Index Key | '0001385157 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-26 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 408,725,658 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Net sales | $3,431 | $3,265 | $6,757 | $6,399 |
Cost of sales | 2,258 | 2,213 | 4,467 | 4,358 |
Gross margin | 1,173 | 1,052 | 2,290 | 2,041 |
Selling, general, and administrative expenses | 471 | 438 | 938 | 866 |
Research, development, and engineering expenses | 170 | 171 | 334 | 342 |
Acquisition and integration costs | 1 | 3 | 1 | 8 |
Restructuring and other charges, net | 21 | 81 | 28 | 173 |
Operating income | 510 | 359 | 989 | 652 |
Interest income | 4 | 5 | 9 | 9 |
Interest expense | -30 | -35 | -64 | -72 |
Other income (expense), net | 16 | 9 | 48 | -217 |
Income from continuing operations before income taxes | 500 | 338 | 982 | 372 |
Income tax (expense) benefit | -136 | -60 | -263 | 185 |
Income from continuing operations | 364 | 278 | 719 | 557 |
Loss from discontinued operations, net of income taxes | -2 | -1 | -4 | -3 |
Net income attributable to TE Connectivity Ltd. | $362 | $277 | $715 | $554 |
Basic earnings per share attributable to TE Connectivity Ltd.: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.89 | $0.66 | $1.75 | $1.32 |
Loss from discontinued operations (in dollars per share) | ' | ' | ($0.01) | ($0.01) |
Net income (in dollars per share) | $0.88 | $0.66 | $1.74 | $1.32 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.87 | $0.66 | $1.72 | $1.31 |
Loss from discontinued operations (in dollars per share) | ' | ' | ($0.01) | ($0.01) |
Net income (in dollars per share) | $0.87 | $0.65 | $1.71 | $1.30 |
Dividends and cash distributions paid per common share (in dollars per share) | $0.25 | $0.21 | $0.50 | $0.42 |
Weighted-average number of shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 410 | 420 | 411 | 421 |
Diluted (in shares) | 417 | 424 | 417 | 425 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income attributable to TE Connectivity Ltd. | $362 | $277 | $715 | $554 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Currency translation | -22 | -122 | -2 | -93 |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 8 | 11 | 15 | 23 |
Gain (loss) on cash flow hedges, net of income taxes | 5 | -11 | 2 | -25 |
Other comprehensive income (loss) | -9 | -122 | 15 | -95 |
Comprehensive income attributable to TE Connectivity Ltd. | $353 | $155 | $730 | $459 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 28, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,429 | $1,403 |
Accounts receivable, net of allowance for doubtful accounts of $38 and $48, respectively | 2,402 | 2,323 |
Inventories | 1,850 | 1,762 |
Prepaid expenses and other current assets | 543 | 487 |
Deferred income taxes | 342 | 334 |
Total current assets | 6,566 | 6,309 |
Property, plant, and equipment, net | 3,181 | 3,166 |
Goodwill | 4,355 | 4,326 |
Intangible assets, net | 1,197 | 1,244 |
Deferred income taxes | 2,009 | 2,146 |
Receivable from Tyco International Ltd. and Covidien plc | 1,013 | 1,002 |
Other assets | 307 | 268 |
Total Assets | 18,628 | 18,461 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 625 | 711 |
Accounts payable | 1,421 | 1,383 |
Accrued and other current liabilities | 1,983 | 1,762 |
Deferred revenue | 58 | 68 |
Total current liabilities | 4,087 | 3,924 |
Long-term debt | 2,370 | 2,303 |
Long-term pension and postretirement liabilities | 1,140 | 1,155 |
Deferred income taxes | 321 | 321 |
Income taxes | 1,996 | 1,979 |
Other liabilities | 315 | 393 |
Total Liabilities | 10,229 | 10,075 |
Commitments and contingencies (Note 8) | ' | ' |
TE Connectivity Ltd. shareholders' equity: | ' | ' |
Common shares, 428,527,307 shares authorized and issued, CHF 0.57 par value | 189 | 189 |
Contributed surplus | 5,623 | 6,136 |
Accumulated earnings | 3,187 | 2,472 |
Treasury shares, at cost, 19,278,903 and 17,020,636 shares, respectively | -924 | -720 |
Accumulated other comprehensive income | 318 | 303 |
Total TE Connectivity Ltd. shareholders' equity | 8,393 | 8,380 |
Noncontrolling interests | 6 | 6 |
Total Equity | 8,399 | 8,386 |
Total Liabilities and Equity | $18,628 | $18,461 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Mar. 28, 2014 | Mar. 28, 2014 | Sep. 27, 2013 | Sep. 27, 2013 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $38 | ' | $48 | ' |
Common shares, shares authorized | 428,527,307 | 428,527,307 | 428,527,307 | 428,527,307 |
Common shares, shares issued | 428,527,307 | 428,527,307 | 428,527,307 | 428,527,307 |
Common shares, par value (in currency per share) | ' | 0.57 | ' | 0.57 |
Treasury shares | 19,278,903 | 19,278,903 | 17,020,636 | 17,020,636 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net income attributable to TE Connectivity Ltd. | $715 | $554 |
Loss from discontinued operations, net of income taxes | 4 | 3 |
Income from continuing operations | 719 | 557 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 303 | 310 |
Deferred income taxes | 67 | 93 |
Provision for losses on accounts receivable and inventories | 36 | 39 |
Tax sharing (income) expense | -51 | 216 |
Share-based compensation expense | 43 | 40 |
Other | 43 | 34 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ' | ' |
Accounts receivable, net | -107 | 49 |
Inventories | -133 | -74 |
Inventoried costs on long-term contracts | 20 | 6 |
Prepaid expenses and other current assets | -12 | -36 |
Accounts payable | 40 | 107 |
Accrued and other current liabilities | -218 | -52 |
Income taxes | 72 | -451 |
Other | 18 | 1 |
Net cash provided by continuing operating activities | 840 | 839 |
Net cash used in discontinued operating activities | -6 | -2 |
Net cash provided by operating activities | 834 | 837 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -301 | -253 |
Proceeds from sale of property, plant, and equipment | 21 | 4 |
Other | -18 | 17 |
Net cash used in investing activities | -298 | -232 |
Cash Flows From Financing Activities: | ' | ' |
Net increase in commercial paper | 25 | 50 |
Proceeds from issuance of long-term debt | 323 | ' |
Repayment of long-term debt | -360 | -714 |
Proceeds from exercise of share options | 109 | 86 |
Repurchase of common shares | -392 | -365 |
Payment of common share dividends and cash distributions to shareholders | -205 | -177 |
Other | -6 | -2 |
Net cash used in continuing financing activities | -506 | -1,122 |
Net cash provided by discontinued financing activities | 6 | 2 |
Net cash used in financing activities | -500 | -1,120 |
Effect of currency translation on cash | -10 | -1 |
Net increase (decrease) in cash and cash equivalents | 26 | -516 |
Cash and cash equivalents at beginning of period | 1,403 | 1,589 |
Cash and cash equivalents at end of period | $1,429 | $1,073 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Mar. 28, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The unaudited Condensed Consolidated Financial Statements of TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") have been prepared in United States ("U.S.") Dollars, in accordance with accounting principles generally accepted in the U.S. ("GAAP") and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. In management's opinion, the unaudited Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire fiscal year or any subsequent interim period. | |
The year-end balance sheet data was derived from audited financial statements, but does not include all of the information and disclosures required by GAAP. These financial statements should be read in conjunction with our audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the fiscal year ended September 27, 2013. | |
We have reclassified certain items on our Condensed Consolidated Financial Statements to conform to the current year presentation. | |
Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2014 and fiscal 2013 are to our fiscal years ending September 26, 2014 and September 27, 2013, respectively. | |
Restructuring_and_Other_Charge
Restructuring and Other Charges, Net | 6 Months Ended | ||||||||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||||||||
2. Restructuring and Other Charges, Net | |||||||||||||||||||||||
Net restructuring and other charges consisted of the following: | |||||||||||||||||||||||
For the Quarters Ended | For the Six Months Ended | ||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Restructuring charges, net | $ | 21 | $ | 86 | $ | 28 | $ | 178 | |||||||||||||||
Gain on divestiture | — | (5 | ) | — | (5 | ) | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
$ | 21 | $ | 81 | $ | 28 | $ | 173 | ||||||||||||||||
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Restructuring Charges, Net | |||||||||||||||||||||||
Net restructuring charges by segment were as follows: | |||||||||||||||||||||||
For the Quarters Ended | For the Six Months Ended | ||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | (1 | ) | $ | 18 | $ | — | $ | 28 | ||||||||||||||
Industrial Solutions | 5 | 21 | 6 | 33 | |||||||||||||||||||
Network Solutions | 16 | 31 | 21 | 55 | |||||||||||||||||||
Consumer Solutions | 1 | 16 | 1 | 62 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Restructuring charges, net | $ | 21 | $ | 86 | $ | 28 | $ | 178 | |||||||||||||||
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Activity in our restructuring reserves during the first six months of fiscal 2014 is summarized as follows: | |||||||||||||||||||||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||||||||||
September 27, | Estimate | Payments | Items | Translation | March 28, | ||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fiscal 2014 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 28 | $ | — | $ | (3 | ) | $ | — | $ | — | $ | 25 | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | — | 28 | — | (3 | ) | — | — | 25 | |||||||||||||||
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Fiscal 2013 Actions: | |||||||||||||||||||||||
Employee severance | 168 | 3 | (7 | ) | (60 | ) | — | 2 | 106 | ||||||||||||||
Facility and other exit costs | 1 | 3 | — | (3 | ) | — | — | 1 | |||||||||||||||
Property, plant, and equipment | — | 8 | — | — | (8 | ) | — | — | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | 169 | 14 | (7 | ) | (63 | ) | (8 | ) | 2 | 107 | |||||||||||||
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Pre-Fiscal 2013 Actions: | |||||||||||||||||||||||
Employee severance | 51 | 1 | (10 | ) | (16 | ) | — | — | 26 | ||||||||||||||
Facility and other exit costs | 26 | 2 | — | (5 | ) | — | — | 23 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | 77 | 3 | (10 | ) | (21 | ) | — | — | 49 | ||||||||||||||
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Total Activity | $ | 246 | $ | 45 | $ | (17 | ) | $ | (87 | ) | $ | (8 | ) | $ | 2 | $ | 181 | ||||||
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Fiscal 2014 Actions | |||||||||||||||||||||||
During fiscal 2014, we initiated a restructuring program primarily associated with headcount reductions in the Network Solutions segment. In connection with this program, during the six months ended March 28, 2014, we recorded restructuring charges of $28 million related to employee severance and benefits. We expect to complete all restructuring actions commenced in the first six months of fiscal 2014 by the end of fiscal 2015 and to incur total charges of approximately $29 million. Cash spending related to this program was $3 million in the first six months of fiscal 2014. | |||||||||||||||||||||||
The following table summarizes expected, incurred, and remaining charges for the fiscal 2014 program by type: | |||||||||||||||||||||||
Total | Charges Incurred | Remaining | |||||||||||||||||||||
Expected | For the Six | Expected | |||||||||||||||||||||
Charges | Months Ended | Charges | |||||||||||||||||||||
March 28, 2014 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 28 | $ | 28 | $ | — | |||||||||||||||||
Facility and other exit costs | 1 | — | 1 | ||||||||||||||||||||
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Total | $ | 29 | $ | 28 | $ | 1 | |||||||||||||||||
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The following table summarizes expected, incurred, and remaining charges for the fiscal 2014 program by segment: | |||||||||||||||||||||||
Total | Charges Incurred | Remaining | |||||||||||||||||||||
Expected | For the Six | Expected | |||||||||||||||||||||
Charges | Months Ended | Charges | |||||||||||||||||||||
March 28, 2014 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Industrial Solutions | $ | 3 | $ | 3 | $ | — | |||||||||||||||||
Network Solutions | 25 | 24 | 1 | ||||||||||||||||||||
Consumer Solutions | 1 | 1 | — | ||||||||||||||||||||
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Total | $ | 29 | $ | 28 | $ | 1 | |||||||||||||||||
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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, during the six months ended March 28, 2014 and March 29, 2013, we recorded net restructuring charges of $7 million and $196 million, respectively, primarily related to employee severance and benefits and fixed assets in connection with exited manufacturing sites' product lines. We expect to complete all restructuring actions commenced in fiscal 2013 by the end of fiscal 2015 and to incur total charges of approximately $346 million. Cash spending related to this program was $63 million in the first six months of fiscal 2014. | |||||||||||||||||||||||
The following table summarizes expected, incurred, and remaining charges for the fiscal 2013 program by type: | |||||||||||||||||||||||
Charges Incurred | |||||||||||||||||||||||
Total | For the Six | For | Remaining | ||||||||||||||||||||
Expected | Months Ended | Fiscal 2013 | Expected | ||||||||||||||||||||
Charges | March 28, 2014 | Charges | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 261 | $ | (4 | ) | $ | 245 | $ | 20 | ||||||||||||||
Facility and other exit costs | 12 | 3 | 5 | 4 | |||||||||||||||||||
Property, plant, and equipment | 73 | 8 | 58 | 7 | |||||||||||||||||||
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Total | $ | 346 | $ | 7 | $ | 308 | $ | 31 | |||||||||||||||
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The following table summarizes expected, incurred, and remaining charges for the fiscal 2013 program by segment: | |||||||||||||||||||||||
Charges Incurred | |||||||||||||||||||||||
Total | For the Six | For Fiscal | Remaining | ||||||||||||||||||||
Expected | Months Ended | 2013 | Expected | ||||||||||||||||||||
Charges | March 28, 2014 | Charges | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 41 | $ | 2 | $ | 37 | $ | 2 | |||||||||||||||
Industrial Solutions | 73 | 2 | 66 | 5 | |||||||||||||||||||
Network Solutions | 129 | 1 | 111 | 17 | |||||||||||||||||||
Consumer Solutions | 103 | 2 | 94 | 7 | |||||||||||||||||||
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Total | $ | 346 | $ | 7 | $ | 308 | $ | 31 | |||||||||||||||
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Pre-Fiscal 2013 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. We initiated a restructuring program during fiscal 2011 which was primarily associated with the acquisition of ADC Telecommunications, Inc. and related headcount reductions in the Network Solutions segment. Additionally, in fiscal 2011, we instituted reductions-in-force across all segments as a result of economic conditions. In connection with these actions, during the six months ended March 28, 2014 and March 29, 2013, we recorded net restructuring credits of $7 million and $18 million, respectively, primarily related to employee severance and benefits previously accrued. We do not expect to incur significant additional charges related to restructuring actions commenced in fiscal 2012 and 2011. Cash spending related to pre-fiscal 2013 programs was $21 million in the first six months of fiscal 2014. | |||||||||||||||||||||||
Total Restructuring Reserves | |||||||||||||||||||||||
Restructuring reserves included on our Condensed Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||
March 28, | September 27, | ||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Accrued and other current liabilities | $ | 155 | $ | 168 | |||||||||||||||||||
Other liabilities | 26 | 78 | |||||||||||||||||||||
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Restructuring reserves | $ | 181 | $ | 246 | |||||||||||||||||||
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Inventories
Inventories | 6 Months Ended | |||||||
Mar. 28, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
Inventories consisted of the following: | ||||||||
March 28, | September 27, | |||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Raw materials | $ | 260 | $ | 258 | ||||
Work in progress | 635 | 597 | ||||||
Finished goods | 933 | 870 | ||||||
Inventoried costs on long-term contracts | 22 | 37 | ||||||
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Inventories | $ | 1,850 | $ | 1,762 | ||||
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Goodwill
Goodwill | 6 Months Ended | ||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
4. Goodwill | |||||||||||||||||
The changes in the carrying amount of goodwill by segment were as follows(1): | |||||||||||||||||
Transportation | Industrial | Network | Consumer | Total | |||||||||||||
Solutions | Solutions | Solutions | Solutions | ||||||||||||||
(in millions) | |||||||||||||||||
September 27, 2013(2) | $ | 797 | $ | 1,919 | $ | 977 | $ | 633 | $ | 4,326 | |||||||
Currency translation and other | 3 | 18 | 5 | 3 | 29 | ||||||||||||
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March 28, 2014(2) | $ | 800 | $ | 1,937 | $ | 982 | $ | 636 | $ | 4,355 | |||||||
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-1 | |||||||||||||||||
In connection with the realignment of certain businesses during fiscal 2014, goodwill was re-allocated to reporting units using a relative fair value approach. See Note 16 for additional information regarding our current segment structure. | |||||||||||||||||
-2 | |||||||||||||||||
At March 28, 2014 and September 27, 2013, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, Network Solutions, and Consumer Solutions segments were $2,191 million, $669 million, $1,236 million, and $579 million, respectively. | |||||||||||||||||
Intangible_Assets_Net
Intangible Assets, Net | 6 Months Ended | |||||||||||||||||||
Mar. 28, 2014 | ||||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||
5. Intangible Assets, Net | ||||||||||||||||||||
Intangible assets consisted of the following: | ||||||||||||||||||||
March 28, 2014 | September 27, 2013 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Intellectual property | $ | 1,146 | $ | (529 | ) | $ | 617 | $ | 1,144 | $ | (499 | ) | $ | 645 | ||||||
Customer relationships | 666 | (116 | ) | 550 | 658 | (92 | ) | 566 | ||||||||||||
Other | 43 | (13 | ) | 30 | 46 | (13 | ) | 33 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,855 | $ | (658 | ) | $ | 1,197 | $ | 1,848 | $ | (604 | ) | $ | 1,244 | ||||||
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Intangible asset amortization expense was $27 million and $28 million for the quarters ended March 28, 2014 and March 29, 2013, respectively, and $55 million and $56 million for the six months ended March 28, 2014 and March 29, 2013, respectively. | ||||||||||||||||||||
The estimated aggregate amortization expense on intangible assets is expected to be as follows: | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Remainder of fiscal 2014 | $ | 57 | ||||||||||||||||||
Fiscal 2015 | 112 | |||||||||||||||||||
Fiscal 2016 | 112 | |||||||||||||||||||
Fiscal 2017 | 112 | |||||||||||||||||||
Fiscal 2018 | 111 | |||||||||||||||||||
Fiscal 2019 | 110 | |||||||||||||||||||
Thereafter | 583 | |||||||||||||||||||
| | | | | ||||||||||||||||
Total | $ | 1,197 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Debt
Debt | 6 Months Ended |
Mar. 28, 2014 | |
Debt | ' |
Debt | ' |
6. Debt | |
During November 2013, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, redeemed all of its outstanding 5.95% senior notes due 2014, representing $300 million principal amount. We paid an immaterial premium in connection with the early redemption. | |
During November 2013, TEGSA issued $325 million aggregate principal amount of 2.375% senior notes due December 17, 2018. The notes are TEGSA's unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur. The notes are fully and unconditionally guaranteed as to payment on an unsecured senior basis by TE Connectivity Ltd. | |
During the quarter ended March 28, 2014, we reclassified $250 million of 1.60% senior notes due 2015 from long-term debt to current maturities of long-term debt on the Condensed Consolidated Balance Sheet. | |
As of March 28, 2014, TEGSA had $375 million of commercial paper outstanding at a weighted-average interest rate of 0.26%. TEGSA had $350 million of commercial paper outstanding at a weighted-average interest rate of 0.28% at September 27, 2013. | |
Guarantees
Guarantees | 6 Months Ended |
Mar. 28, 2014 | |
Guarantees | ' |
Guarantees | ' |
7. 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. If any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, we would be responsible for a portion of the defaulting party or parties' obligation. 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. Our indemnification created under the Tax Sharing Agreement qualifies as a guarantee of a third party entity's debt under Accounting Standards Codification 460, Guarantees. | |
At March 28, 2014, we had a liability representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement of $219 million which is primarily reflected in accrued and other current liabilities on the Condensed Consolidated Balance Sheet. At September 27, 2013, the liability was $223 million and consisted of $185 million in accrued and other current liabilities and $38 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 income tax matters pursuant to the terms of the Tax Sharing Agreement and determined that $219 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 March 28, 2014, we had outstanding letters of credit and letters of guarantee in the amount of $336 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 March 28, 2014 and September 27, 2013 were $35 million and $38 million, respectively. | |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 28, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
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 March 28, 2014, 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. A liability for this contingency has not been recorded on the Condensed 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 7 for additional information regarding the Tax Sharing Agreement. | |
During fiscal 2007, the Internal Revenue Service ("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 the first six months of fiscal 2013, we recognized an income tax benefit of $331 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $231 million, representing a reduction of associated indemnification receivables, 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 U.S. 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. | |
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. | |
We received net reimbursements of $21 million and made payments of $67 million related to pre-separation tax matters during the first six months of fiscal 2014 and 2013, respectively. 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. For the undisputed issues for years 2001 through 2004, it is our understanding that Tyco International expects the IRS to issue general agreement Forms 870 during fiscal 2014. 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 make net cash payments of approximately $240 million in connection with pre-separation tax matters. | |
At March 28, 2014 and September 27, 2013, we have reflected $58 million and $15 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 Condensed 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 March 28, 2014, we concluded that it was probable that we would incur remedial costs in the range of $14 million to $26 million. As of March 28, 2014, we concluded that the best estimate within this range is $15 million, of which $4 million is included in accrued and other current liabilities and $11 million is included in other liabilities on the Condensed Consolidated Balance Sheet. We believe that any potential payment will not have a material adverse effect on our results of operations, financial position, or cash flows. | |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Mar. 28, 2014 | |
Financial Instruments and Fair Value Measurements | ' |
Financial Instruments and Fair Value Measurements | ' |
9. Financial Instruments and Fair Value Measurements | |
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 Condensed 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 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 the first quarter of fiscal 2014, we entered into interest rate swaps designated as fair value hedges on $300 million principal amount of our 3.50% senior notes due 2022. 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 floating amounts based upon the three-month U.S. Dollar London interbank offered rate. | |
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 $2,498 million and $2,374 million at March 28, 2014 and September 27, 2013, respectively. Foreign exchange gains and losses were immaterial during the quarters and six months ended March 28, 2014 and March 29, 2013, and 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. | |
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 March 28, 2014 and September 27, 2013, our commodity hedges had notional values of $296 million and $278 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 Condensed Consolidated Statements of Operations within the next twelve months. | |
Derivative Instrument Summary | |
The effects of derivative instruments on the Condensed Consolidated Statements of Operations were immaterial for the quarters and six months ended March 28, 2014 and March 29, 2013. | |
Fair Value Measurements | |
Financial instruments recorded at fair value on a recurring basis, which consist of derivative instruments and marketable securities, were immaterial at March 28, 2014 and September 27, 2013. | |
As of March 28, 2014 and September 27, 2013, 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 significant non-financial assets or liabilities that were measured at fair value as of March 28, 2014 and September 27, 2013. | |
Other financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and long-term debt. These instruments are recorded on our Condensed 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. The fair value of our debt based on indicative valuations was approximately $3,184 million and $3,180 million at March 28, 2014 and September 27, 2013, respectively. | |
Retirement_Plans
Retirement Plans | 6 Months Ended | |||||||||||||
Mar. 28, 2014 | ||||||||||||||
Retirement Plans | ' | |||||||||||||
Retirement Plans | ' | |||||||||||||
10. Retirement Plans | ||||||||||||||
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 | |||||||||||||
For the Quarters Ended | For the Quarters Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 12 | $ | 15 | ||||||
Interest cost | 12 | 12 | 18 | 18 | ||||||||||
Expected return on plan assets | (16 | ) | (15 | ) | (17 | ) | (18 | ) | ||||||
Other(1) | 6 | 9 | 5 | 8 | ||||||||||
| | | | | | | | | | | | | | |
Net periodic pension benefit cost | $ | 4 | $ | 7 | $ | 18 | $ | 23 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
U.S. Plans | Non-U.S. Plans | |||||||||||||
For the Six Months Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Service cost | $ | 4 | $ | 3 | $ | 25 | $ | 30 | ||||||
Interest cost | 25 | 23 | 36 | 36 | ||||||||||
Expected return on plan assets | (32 | ) | (30 | ) | (35 | ) | (36 | ) | ||||||
Other(1) | 12 | 18 | 10 | 16 | ||||||||||
| | | | | | | | | | | | | | |
Net periodic pension benefit cost | $ | 9 | $ | 14 | $ | 36 | $ | 46 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
Other consists primarily of amortization of net actuarial losses. | ||||||||||||||
The net periodic postretirement benefit cost for postretirement benefit plans was insignificant for the quarters and six months ended March 28, 2014 and March 29, 2013. | ||||||||||||||
During the six months ended March 28, 2014, we contributed $41 million to our non-U.S. pension plans and insignificant amounts to our U.S. pension plans and postretirement benefit plans. | ||||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 28, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
11. Income Taxes | |
We recorded tax provisions of $136 million and $60 million for the quarters ended March 28, 2014 and March 29, 2013, respectively. The tax provision for the quarter ended March 28, 2014 reflects income tax charges related to adjustments to prior year income tax returns, partially offset by tax benefits recognized in connection with the lapse of statutes of limitations for examinations of prior year income tax returns in certain non-U.S. locations. The tax provision for the quarter ended March 29, 2013 reflects tax benefits recognized in connection with the lapse of statutes of limitations for examinations of prior year income tax returns in certain non-U.S. locations, partially offset by charges related to adjustments to prior year income tax returns. In addition, the tax provision for the quarter ended March 29, 2013 reflects tax benefits recognized in connection with the extension of the U.S. research and development credit for fiscal 2012 enacted in January 2013 through the American Taxpayer Relief Act of 2012. | |
We recorded a tax provision of $263 million and an income tax benefit of $185 million for the six months ended March 28, 2014 and March 29, 2013, respectively. The tax provision for the six months ended March 28, 2014 reflects income tax charges related to adjustments to prior year income tax returns, as well as an income tax charge related to the impact of certain non-U.S. tax law changes and the associated increase in the valuation allowance for tax loss carryforwards. The tax benefit for the six months ended March 29, 2013 reflects a $331 million income tax benefit related to the effective settlement of all undisputed tax matters for the period 1997 through 2000. In addition, the tax benefit for the six months ended March 29, 2013 reflects tax benefits recognized in connection with the lapse of statutes of limitations for examinations of prior year income tax returns in certain non-U.S. locations, partially offset by charges related to adjustments to prior year income tax returns. | |
We record accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of March 28, 2014, we had recorded $1,102 million of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheet, of which $1,078 million was recorded in income taxes and $24 million was recorded in accrued and other current liabilities. During the six months ended March 28, 2014, we recognized $58 million of expense related to interest and penalties on the Condensed Consolidated Statement of Operations. As of September 27, 2013, the balance of accrued interest and penalties was $1,018 million, of which $1,015 million was recorded in income taxes and $3 million was recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheet. | |
For tax years 1997 through 2000, Tyco International has resolved all matters, excluding one disputed issue related to the tax treatment of certain intercompany debt transactions. 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. For the undisputed issues for years 2001 through 2004, it is our understanding that Tyco International expects the IRS to issue general agreement Forms 870 during fiscal 2014. 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 8 for additional information regarding the status of IRS examinations. | |
Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $225 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. | |
Other than the disputed issue discussed in Note 8, we are not aware of any other matters that could result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of March 28, 2014. | |
Other_Income_Expense_Net
Other Income (Expense), Net | 6 Months Ended |
Mar. 28, 2014 | |
Other Income (Expense), Net | ' |
Other Income (Expense), Net | ' |
12. Other Income (Expense), Net | |
We recorded net other income of $16 million and $9 million during the quarters ended March 28, 2014 and March 29, 2013, respectively, primarily consisting of income pursuant to the Tax Sharing Agreement with Tyco International and Covidien. See Note 7 for further information regarding the Tax Sharing Agreement. | |
We recorded net other income of $48 million and net other expense of $217 million during the six months ended March 28, 2014 and March 29, 2013, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The net other income in the six months ended March 28, 2014 included $18 million of income related to our share of a settlement agreement entered into by Tyco International with a former subsidiary, CIT Group Inc., which arose from a pre-separation claim for which we were entitled to 31% once resolved. The net other expense in the six months ended March 29, 2013 included $231 million related to the effective settlement of all undisputed tax matters for the period 1997 through 2000. See Note 8 for additional information. | |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||
Mar. 28, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
13. Earnings Per Share | ||||||||||||||
The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share was as follows: | ||||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Basic | 410 | 420 | 411 | 421 | ||||||||||
Dilutive impact of share-based compensation arrangements | 7 | 4 | 6 | 4 | ||||||||||
| | | | | | | | | | | | | | |
Diluted | 417 | 424 | 417 | 425 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
For the quarter and six months ended March 29, 2013, there were five million and six million share options, respectively, that 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. There were no antidilutive share options for the quarter and six months ended March 28, 2014. | ||||||||||||||
Equity
Equity | 6 Months Ended |
Mar. 28, 2014 | |
Equity | ' |
Equity | ' |
14. Equity | |
Common Shares Held in Treasury | |
In March 2014, our shareholders approved the cancellation of 9,456,526 shares purchased under our share repurchase program during the period from December 29, 2012 to December 27, 2013. The capital reduction by cancellation of these shares is subject to a notice period and filing with the commercial register in Switzerland and is not yet reflected on the Condensed Consolidated Balance Sheet. | |
Dividends and Distributions to Shareholders | |
We paid a cash dividend of $0.25 per share to shareholders out of contributed surplus in each of the first and second quarters of fiscal 2014. | |
In March 2014, our shareholders approved a dividend payment to shareholders of CHF 1.04 (equivalent to $1.16) per share out of contributed surplus, payable in four equal quarterly installments of $0.29 per share beginning in the third quarter of fiscal 2014 through the second quarter of fiscal 2015. | |
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 March 28, 2014 and September 27, 2013, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $475 million and $206 million, respectively. | |
Share Repurchase Program | |
In the first quarter of fiscal 2014, our board of directors authorized an increase of $1 billion in the share repurchase program. We repurchased approximately 7 million of our common shares for $390 million and approximately 11 million of our common shares for $409 million under our share repurchase authorization during the six months ended March 28, 2014 and March 29, 2013, respectively. At March 28, 2014, we had $1,088 million of availability remaining under our share repurchase authorization. | |
Share_Plans
Share Plans | 6 Months Ended | ||||
Mar. 28, 2014 | |||||
Share Plans | ' | ||||
Share Plans | ' | ||||
15. Share Plans | |||||
Total share-based compensation expense, which was primarily included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was $21 million and $19 million during the quarters ended March 28, 2014 and March 29, 2013, respectively, and $43 million and $40 million during the six months ended March 28, 2014 and March 29, 2013, respectively. As of March 28, 2014, there was $173 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.0 years. | |||||
During the first quarter of fiscal 2014, we granted 1.5 million share options, 1.0 million restricted share awards, and 0.2 million performance share awards as part of our annual incentive plan grant. The weighted-average grant-date fair values for share options, restricted share awards, and performance share awards were $16.75, $51.61, and $51.61, respectively. | |||||
As of March 28, 2014, we had 22 million shares available for issuance under our stock and incentive plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, as amended and restated, is the primary plan. | |||||
Share-Based Compensation Assumptions | |||||
Prior to fiscal 2014, we calculated the grant-date fair value of our share option awards utilizing the historical share volatility of a composite of our peers and implied volatility derived from exchange-traded options on that same composite of peers. Effective for the first quarter of fiscal 2014, as a result of now having historical share price information for a period of time equal to our expected option life assumption, we began to employ our historical share volatility when calculating the grant-date fair value of our share option grants using the Black-Scholes-Merton option pricing model. Currently, we do not have exchange-traded options of sufficient duration to employ an implied volatility assumption in the calculation and therefore rely solely on the historical volatility calculation. The change in methodology did not have a significant impact on share-based compensation expense during the six months ended March 28, 2014. | |||||
The weighted-average assumptions we used in the Black-Scholes-Merton option pricing model for the options granted as part of our annual incentive plan grant were as follows: | |||||
Expected share price volatility | 39 | % | |||
Risk free interest rate | 1.8 | % | |||
Expected annual dividend per share | $ | 1 | |||
Expected life of options (in years) | 6 |
Segment_Data
Segment Data | 6 Months Ended | |||||||||||||
Mar. 28, 2014 | ||||||||||||||
Segment Data | ' | |||||||||||||
Segment Data | ' | |||||||||||||
16. Segment Data | ||||||||||||||
During fiscal 2014, we realigned certain businesses, principally the Relay Products business, within our segment reporting structure to better align our product portfolio. The Relay Products business, which was previously included in the Consumer Solutions segment, has been moved to the Industrial Solutions segment. We continue to operate through four reporting segments: Transportation Solutions, Industrial Solutions, Network Solutions, and Consumer Solutions. | ||||||||||||||
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 by segment were as follows: | ||||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Transportation Solutions | $ | 1,571 | $ | 1,385 | $ | 3,011 | $ | 2,649 | ||||||
Industrial Solutions | 789 | 758 | 1,552 | 1,478 | ||||||||||
Network Solutions | 688 | 725 | 1,401 | 1,459 | ||||||||||
Consumer Solutions | 383 | 397 | 793 | 813 | ||||||||||
| | | | | | | | | | | | | | |
Total(1) | $ | 3,431 | $ | 3,265 | $ | 6,757 | $ | 6,399 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
Intersegment sales were not material and were recorded at selling prices that approximated market prices. | ||||||||||||||
Operating income by segment was as follows: | ||||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Transportation Solutions | $ | 347 | $ | 241 | $ | 643 | $ | 433 | ||||||
Industrial Solutions | 106 | 79 | 205 | 151 | ||||||||||
Network Solutions | 23 | 19 | 69 | 55 | ||||||||||
Consumer Solutions | 34 | 20 | 72 | 13 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 510 | $ | 359 | $ | 989 | $ | 652 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 28, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
17. Subsequent Event | |
In April 2014, we entered into a definitive agreement to acquire the SEACON Group, a leading provider of underwater connector technology and systems, for $490 million in cash. The transaction, which is expected to close during fiscal 2014, is subject to certain regulatory approvals and other closing conditions. | |
Tyco_Electronics_Group_SA
Tyco Electronics Group S.A. | 6 Months Ended | ||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||
Tyco Electronics Group S.A. | ' | ||||||||||||||||
Tyco Electronics Group S.A. | ' | ||||||||||||||||
18. 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 five-year unsecured senior revolving 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 (UNAUDITED) | |||||||||||||||||
For the Quarter Ended March 28, 2014 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,431 | $ | — | $ | 3,431 | |||||||
Cost of sales | — | — | 2,258 | — | 2,258 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 1,173 | — | 1,173 | ||||||||||||
Selling, general, and administrative expenses | 54 | — | 417 | — | 471 | ||||||||||||
Research, development, and engineering expenses | — | — | 170 | — | 170 | ||||||||||||
Acquisition and integration costs | — | — | 1 | — | 1 | ||||||||||||
Restructuring and other charges, net | — | — | 21 | — | 21 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (54 | ) | — | 564 | — | 510 | |||||||||||
Interest income | — | — | 4 | — | 4 | ||||||||||||
Interest expense | — | (30 | ) | — | — | (30 | ) | ||||||||||
Other income, net | — | — | 16 | — | 16 | ||||||||||||
Equity in net income of subsidiaries | 419 | 435 | — | (854 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (2 | ) | (2 | ) | — | 4 | — | ||||||||||
Intercompany interest income (expense), net | (1 | ) | 14 | (13 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 362 | 417 | 571 | (850 | ) | 500 | |||||||||||
Income tax expense | — | — | (136 | ) | — | (136 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 362 | 417 | 435 | (850 | ) | 364 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (2 | ) | — | (2 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 362 | 417 | 433 | (850 | ) | 362 | |||||||||||
Other comprehensive loss | (9 | ) | (9 | ) | (11 | ) | 20 | (9 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 353 | $ | 408 | $ | 422 | $ | (830 | ) | $ | 353 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Quarter Ended March 29, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,265 | $ | — | $ | 3,265 | |||||||
Cost of sales | — | — | 2,213 | — | 2,213 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 1,052 | — | 1,052 | ||||||||||||
Selling, general, and administrative expenses | 33 | 2 | 403 | — | 438 | ||||||||||||
Research, development, and engineering expenses | — | — | 171 | — | 171 | ||||||||||||
Acquisition and integration costs | — | — | 3 | — | 3 | ||||||||||||
Restructuring and other charges, net | — | — | 81 | — | 81 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (33 | ) | (2 | ) | 394 | — | 359 | ||||||||||
Interest income | — | — | 5 | — | 5 | ||||||||||||
Interest expense | — | (34 | ) | (1 | ) | — | (35 | ) | |||||||||
Other income, net | — | — | 9 | — | 9 | ||||||||||||
Equity in net income of subsidiaries | 315 | 337 | — | (652 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (1 | ) | (1 | ) | — | 2 | — | ||||||||||
Intercompany interest income (expense), net | (4 | ) | 14 | (10 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 277 | 314 | 397 | (650 | ) | 338 | |||||||||||
Income tax expense | — | — | (60 | ) | — | (60 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 277 | 314 | 337 | (650 | ) | 278 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (1 | ) | — | (1 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 277 | 314 | 336 | (650 | ) | 277 | |||||||||||
Other comprehensive loss | (122 | ) | (122 | ) | (124 | ) | 246 | (122 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 155 | $ | 192 | $ | 212 | $ | (404 | ) | $ | 155 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 28, 2014 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 6,757 | $ | — | $ | 6,757 | |||||||
Cost of sales | — | — | 4,467 | — | 4,467 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 2,290 | — | 2,290 | ||||||||||||
Selling, general, and administrative expenses | 88 | 1 | 849 | — | 938 | ||||||||||||
Research, development, and engineering expenses | — | — | 334 | — | 334 | ||||||||||||
Acquisition and integration costs | — | — | 1 | — | 1 | ||||||||||||
Restructuring and other charges, net | — | — | 28 | — | 28 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (88 | ) | (1 | ) | 1,078 | — | 989 | ||||||||||
Interest income | — | — | 9 | — | 9 | ||||||||||||
Interest expense | — | (62 | ) | (2 | ) | — | (64 | ) | |||||||||
Other income (expense), net | 18 | (3 | ) | 33 | — | 48 | |||||||||||
Equity in net income of subsidiaries | 790 | 827 | — | (1,617 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (4 | ) | (4 | ) | — | 8 | — | ||||||||||
Intercompany interest income (expense), net | (1 | ) | 29 | (28 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 715 | 786 | 1,090 | (1,609 | ) | 982 | |||||||||||
Income tax expense | — | — | (263 | ) | — | (263 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 715 | 786 | 827 | (1,609 | ) | 719 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (4 | ) | — | (4 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 715 | 786 | 823 | (1,609 | ) | 715 | |||||||||||
Other comprehensive income | 15 | 15 | 11 | (26 | ) | 15 | |||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 730 | $ | 801 | $ | 834 | $ | (1,635 | ) | $ | 730 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 29, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 6,399 | $ | — | $ | 6,399 | |||||||
Cost of sales | — | — | 4,358 | — | 4,358 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 2,041 | — | 2,041 | ||||||||||||
Selling, general, and administrative expenses | 74 | 3 | 789 | — | 866 | ||||||||||||
Research, development, and engineering expenses | — | — | 342 | — | 342 | ||||||||||||
Acquisition and integration costs | — | — | 8 | — | 8 | ||||||||||||
Restructuring and other charges, net | — | — | 173 | — | 173 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (74 | ) | (3 | ) | 729 | — | 652 | ||||||||||
Interest income | — | — | 9 | — | 9 | ||||||||||||
Interest expense | — | (68 | ) | (4 | ) | — | (72 | ) | |||||||||
Other expense, net | — | — | (217 | ) | — | (217 | ) | ||||||||||
Equity in net income of subsidiaries | 638 | 682 | — | (1,320 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (3 | ) | (3 | ) | — | 6 | — | ||||||||||
Intercompany interest income (expense), net | (7 | ) | 27 | (20 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 554 | 635 | 497 | (1,314 | ) | 372 | |||||||||||
Income tax benefit | — | — | 185 | — | 185 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 554 | 635 | 682 | (1,314 | ) | 557 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (3 | ) | — | (3 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 554 | 635 | 679 | (1,314 | ) | 554 | |||||||||||
Other comprehensive loss | (95 | ) | (95 | ) | (100 | ) | 195 | (95 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 459 | $ | 540 | $ | 579 | $ | (1,119 | ) | $ | 459 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet (UNAUDITED) | |||||||||||||||||
As of March 28, 2014 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,429 | $ | — | $ | 1,429 | |||||||
Accounts receivable, net | — | — | 2,402 | — | 2,402 | ||||||||||||
Inventories | — | — | 1,850 | — | 1,850 | ||||||||||||
Intercompany receivables | 1,850 | — | 532 | (2,382 | ) | — | |||||||||||
Prepaid expenses and other current assets | 3 | 4 | 536 | — | 543 | ||||||||||||
Deferred income taxes | — | — | 342 | — | 342 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,853 | 4 | 7,091 | (2,382 | ) | 6,566 | |||||||||||
Property, plant, and equipment, net | — | — | 3,181 | — | 3,181 | ||||||||||||
Goodwill | — | — | 4,355 | — | 4,355 | ||||||||||||
Intangible assets, net | — | — | 1,197 | — | 1,197 | ||||||||||||
Deferred income taxes | — | — | 2,009 | — | 2,009 | ||||||||||||
Investment in subsidiaries | 7,549 | 15,797 | — | (23,346 | ) | — | |||||||||||
Intercompany loans receivable | 18 | 4,616 | 9,938 | (14,572 | ) | — | |||||||||||
Receivable from Tyco International Ltd. and Covidien plc | — | — | 1,013 | — | 1,013 | ||||||||||||
Other assets | — | 26 | 281 | — | 307 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total Assets | $ | 9,420 | $ | 20,443 | $ | 29,065 | $ | (40,300 | ) | $ | 18,628 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 625 | $ | — | $ | — | $ | 625 | |||||||
Accounts payable | 1 | — | 1,420 | — | 1,421 | ||||||||||||
Accrued and other current liabilities | 489 | 47 | 1,447 | — | 1,983 | ||||||||||||
Deferred revenue | — | — | 58 | — | 58 | ||||||||||||
Intercompany payables | 531 | — | 1,851 | (2,382 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,021 | 672 | 4,776 | (2,382 | ) | 4,087 | |||||||||||
Long-term debt | — | 2,280 | 90 | — | 2,370 | ||||||||||||
Intercompany loans payable | — | 9,939 | 4,633 | (14,572 | ) | — | |||||||||||
Long-term pension and postretirement liabilities | — | — | 1,140 | — | 1,140 | ||||||||||||
Deferred income taxes | — | — | 321 | — | 321 | ||||||||||||
Income taxes | — | — | 1,996 | — | 1,996 | ||||||||||||
Other liabilities | — | 3 | 312 | — | 315 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total Liabilities | 1,021 | 12,894 | 13,268 | (16,954 | ) | 10,229 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total Equity | 8,399 | 7,549 | 15,797 | (23,346 | ) | 8,399 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total Liabilities and Equity | $ | 9,420 | $ | 20,443 | $ | 29,065 | $ | (40,300 | ) | $ | 18,628 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet (UNAUDITED) | |||||||||||||||||
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 Statement of Cash Flows (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 28, 2014 | |||||||||||||||||
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 | $ | (62 | ) | $ | 1,768 | $ | 938 | $ | (1,804 | ) | $ | 840 | |||||
Net cash used in discontinued operating activities | — | — | (6 | ) | — | (6 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | (62 | ) | 1,768 | 932 | (1,804 | ) | 834 | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (301 | ) | — | (301 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | — | — | 21 | — | 21 | ||||||||||||
Change in intercompany loans | — | (1,820 | ) | — | 1,820 | — | |||||||||||
Intercompany distribution receipts | — | 3 | — | (3 | ) | — | |||||||||||
Other | — | — | (18 | ) | — | (18 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash used in investing activities | — | (1,817 | ) | (298 | ) | 1,817 | (298 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(1) | 33 | 6 | (39 | ) | — | — | |||||||||||
Net increase in commercial paper | — | 25 | — | — | 25 | ||||||||||||
Proceeds from issuance of long-term debt | — | 323 | — | — | 323 | ||||||||||||
Repayment of long-term debt | — | (303 | ) | (57 | ) | — | (360 | ) | |||||||||
Proceeds from exercise of share options | — | — | 109 | — | 109 | ||||||||||||
Repurchase of common shares | — | — | (392 | ) | — | (392 | ) | ||||||||||
Payment of common share dividends to shareholders | (210 | ) | — | 5 | — | (205 | ) | ||||||||||
Intercompany distributions | — | — | (1,807 | ) | 1,807 | — | |||||||||||
Loan activity with parent | 239 | — | 1,581 | (1,820 | ) | — | |||||||||||
Other | — | (2 | ) | (4 | ) | — | (6 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) continuing financing activities | 62 | 49 | (604 | ) | (13 | ) | (506 | ) | |||||||||
Net cash provided by discontinued financing activities | — | — | 6 | — | 6 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | 62 | 49 | (598 | ) | (13 | ) | (500 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of currency translation on cash | — | — | (10 | ) | — | (10 | ) | ||||||||||
Net increase in cash and cash equivalents | — | — | 26 | — | 26 | ||||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,403 | — | 1,403 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 1,429 | $ | — | $ | 1,429 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-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 (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 29, 2013 | |||||||||||||||||
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 | $ | (68 | ) | $ | (62 | ) | $ | 969 | $ | — | $ | 839 | |||||
Net cash used in discontinued operating activities | — | — | (2 | ) | — | (2 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | (68 | ) | (62 | ) | 967 | — | 837 | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (253 | ) | — | (253 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | 1 | — | 3 | — | 4 | ||||||||||||
Change in intercompany loans | — | 721 | — | (721 | ) | — | |||||||||||
Other | — | — | 17 | — | 17 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | 1 | 721 | (233 | ) | (721 | ) | (232 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(1) | 613 | 5 | (618 | ) | — | — | |||||||||||
Net increase in commercial paper | — | 50 | — | — | 50 | ||||||||||||
Repayment of long-term debt | — | (714 | ) | — | — | (714 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 86 | — | 86 | ||||||||||||
Repurchase of common shares | (365 | ) | — | — | — | (365 | ) | ||||||||||
Payment of cash distributions to shareholders | (181 | ) | — | 4 | — | (177 | ) | ||||||||||
Loan activity with parent | — | — | (721 | ) | 721 | — | |||||||||||
Other | — | — | (2 | ) | — | (2 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) continuing financing activities | 67 | (659 | ) | (1,251 | ) | 721 | (1,122 | ) | |||||||||
Net cash provided by discontinued financing activities | — | — | 2 | — | 2 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | 67 | (659 | ) | (1,249 | ) | 721 | (1,120 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of currency translation on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net decrease in cash and cash equivalents | — | — | (516 | ) | — | (516 | ) | ||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,589 | — | 1,589 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 1,073 | $ | — | $ | 1,073 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Restructuring_and_Other_Charge1
Restructuring and Other Charges, Net (Tables) | 6 Months Ended | ||||||||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||||||||
Restructuring and Other Charges, Net | ' | ||||||||||||||||||||||
Schedule of restructuring and other charges | ' | ||||||||||||||||||||||
For the Quarters Ended | For the Six Months Ended | ||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Restructuring charges, net | $ | 21 | $ | 86 | $ | 28 | $ | 178 | |||||||||||||||
Gain on divestiture | — | (5 | ) | — | (5 | ) | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
$ | 21 | $ | 81 | $ | 28 | $ | 173 | ||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Net restructuring charges by segment | ' | ||||||||||||||||||||||
For the Quarters Ended | For the Six Months Ended | ||||||||||||||||||||||
March 28, | March 29, | March 28, | March 29, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | (1 | ) | $ | 18 | $ | — | $ | 28 | ||||||||||||||
Industrial Solutions | 5 | 21 | 6 | 33 | |||||||||||||||||||
Network Solutions | 16 | 31 | 21 | 55 | |||||||||||||||||||
Consumer Solutions | 1 | 16 | 1 | 62 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Restructuring charges, net | $ | 21 | $ | 86 | $ | 28 | $ | 178 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Summary of activity in restructuring reserves | ' | ||||||||||||||||||||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||||||||||
September 27, | Estimate | Payments | Items | Translation | March 28, | ||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Fiscal 2014 Actions: | |||||||||||||||||||||||
Employee severance | $ | — | $ | 28 | $ | — | $ | (3 | ) | $ | — | $ | — | $ | 25 | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | — | 28 | — | (3 | ) | — | — | 25 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Fiscal 2013 Actions: | |||||||||||||||||||||||
Employee severance | 168 | 3 | (7 | ) | (60 | ) | — | 2 | 106 | ||||||||||||||
Facility and other exit costs | 1 | 3 | — | (3 | ) | — | — | 1 | |||||||||||||||
Property, plant, and equipment | — | 8 | — | — | (8 | ) | — | — | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | 169 | 14 | (7 | ) | (63 | ) | (8 | ) | 2 | 107 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Pre-Fiscal 2013 Actions: | |||||||||||||||||||||||
Employee severance | 51 | 1 | (10 | ) | (16 | ) | — | — | 26 | ||||||||||||||
Facility and other exit costs | 26 | 2 | — | (5 | ) | — | — | 23 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | 77 | 3 | (10 | ) | (21 | ) | — | — | 49 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total Activity | $ | 246 | $ | 45 | $ | (17 | ) | $ | (87 | ) | $ | (8 | ) | $ | 2 | $ | 181 | ||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Restructuring reserves included on Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||
March 28, | September 27, | ||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Accrued and other current liabilities | $ | 155 | $ | 168 | |||||||||||||||||||
Other liabilities | 26 | 78 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Restructuring reserves | $ | 181 | $ | 246 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Fiscal 2014 Actions | ' | ||||||||||||||||||||||
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Summary of charges by type | ' | ||||||||||||||||||||||
Total | Charges Incurred | Remaining | |||||||||||||||||||||
Expected | For the Six | Expected | |||||||||||||||||||||
Charges | Months Ended | Charges | |||||||||||||||||||||
March 28, 2014 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 28 | $ | 28 | $ | — | |||||||||||||||||
Facility and other exit costs | 1 | — | 1 | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total | $ | 29 | $ | 28 | $ | 1 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Summary of charges by segment | ' | ||||||||||||||||||||||
Total | Charges Incurred | Remaining | |||||||||||||||||||||
Expected | For the Six | Expected | |||||||||||||||||||||
Charges | Months Ended | Charges | |||||||||||||||||||||
March 28, 2014 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Industrial Solutions | $ | 3 | $ | 3 | $ | — | |||||||||||||||||
Network Solutions | 25 | 24 | 1 | ||||||||||||||||||||
Consumer Solutions | 1 | 1 | — | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total | $ | 29 | $ | 28 | $ | 1 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Fiscal 2013 Actions | ' | ||||||||||||||||||||||
Restructuring and Other Charges (credits), Net | ' | ||||||||||||||||||||||
Summary of charges by type | ' | ||||||||||||||||||||||
Charges Incurred | |||||||||||||||||||||||
Total | For the Six | For | Remaining | ||||||||||||||||||||
Expected | Months Ended | Fiscal 2013 | Expected | ||||||||||||||||||||
Charges | March 28, 2014 | Charges | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Employee severance | $ | 261 | $ | (4 | ) | $ | 245 | $ | 20 | ||||||||||||||
Facility and other exit costs | 12 | 3 | 5 | 4 | |||||||||||||||||||
Property, plant, and equipment | 73 | 8 | 58 | 7 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Total | $ | 346 | $ | 7 | $ | 308 | $ | 31 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Summary of charges by segment | ' | ||||||||||||||||||||||
Charges Incurred | |||||||||||||||||||||||
Total | For the Six | For Fiscal | Remaining | ||||||||||||||||||||
Expected | Months Ended | 2013 | Expected | ||||||||||||||||||||
Charges | March 28, 2014 | Charges | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Transportation Solutions | $ | 41 | $ | 2 | $ | 37 | $ | 2 | |||||||||||||||
Industrial Solutions | 73 | 2 | 66 | 5 | |||||||||||||||||||
Network Solutions | 129 | 1 | 111 | 17 | |||||||||||||||||||
Consumer Solutions | 103 | 2 | 94 | 7 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Total | $ | 346 | $ | 7 | $ | 308 | $ | 31 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Mar. 28, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
March 28, | September 27, | |||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Raw materials | $ | 260 | $ | 258 | ||||
Work in progress | 635 | 597 | ||||||
Finished goods | 933 | 870 | ||||||
Inventoried costs on long-term contracts | 22 | 37 | ||||||
| | | | | | | | |
Inventories | $ | 1,850 | $ | 1,762 | ||||
| | | | | | | | |
| | | | | | | | |
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Changes in the carrying amount of goodwill by segment | ' | ||||||||||||||||
Transportation | Industrial | Network | Consumer | Total | |||||||||||||
Solutions | Solutions | Solutions | Solutions | ||||||||||||||
(in millions) | |||||||||||||||||
September 27, 2013(2) | $ | 797 | $ | 1,919 | $ | 977 | $ | 633 | $ | 4,326 | |||||||
Currency translation and other | 3 | 18 | 5 | 3 | 29 | ||||||||||||
| | | | | | | | | | | | | | | | | |
March 28, 2014(2) | $ | 800 | $ | 1,937 | $ | 982 | $ | 636 | $ | 4,355 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
In connection with the realignment of certain businesses during fiscal 2014, goodwill was re-allocated to reporting units using a relative fair value approach. See Note 16 for additional information regarding our current segment structure. | |||||||||||||||||
-2 | |||||||||||||||||
At March 28, 2014 and September 27, 2013, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, Network Solutions, and Consumer Solutions segments were $2,191 million, $669 million, $1,236 million, and $579 million, respectively. | |||||||||||||||||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 6 Months Ended | |||||||||||||||||||
Mar. 28, 2014 | ||||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||||
Schedule of finite-lived intangible assets | ' | |||||||||||||||||||
March 28, 2014 | September 27, 2013 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Intellectual property | $ | 1,146 | $ | (529 | ) | $ | 617 | $ | 1,144 | $ | (499 | ) | $ | 645 | ||||||
Customer relationships | 666 | (116 | ) | 550 | 658 | (92 | ) | 566 | ||||||||||||
Other | 43 | (13 | ) | 30 | 46 | (13 | ) | 33 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,855 | $ | (658 | ) | $ | 1,197 | $ | 1,848 | $ | (604 | ) | $ | 1,244 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of finite-lived intangible assets, future amortization expense | ' | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Remainder of fiscal 2014 | $ | 57 | ||||||||||||||||||
Fiscal 2015 | 112 | |||||||||||||||||||
Fiscal 2016 | 112 | |||||||||||||||||||
Fiscal 2017 | 112 | |||||||||||||||||||
Fiscal 2018 | 111 | |||||||||||||||||||
Fiscal 2019 | 110 | |||||||||||||||||||
Thereafter | 583 | |||||||||||||||||||
| | | | | ||||||||||||||||
Total | $ | 1,197 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 6 Months Ended | |||||||||||||
Mar. 28, 2014 | ||||||||||||||
Retirement Plans | ' | |||||||||||||
Net periodic pension benefit cost | ' | |||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||
For the Quarters Ended | For the Quarters Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 12 | $ | 15 | ||||||
Interest cost | 12 | 12 | 18 | 18 | ||||||||||
Expected return on plan assets | (16 | ) | (15 | ) | (17 | ) | (18 | ) | ||||||
Other(1) | 6 | 9 | 5 | 8 | ||||||||||
| | | | | | | | | | | | | | |
Net periodic pension benefit cost | $ | 4 | $ | 7 | $ | 18 | $ | 23 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
U.S. Plans | Non-U.S. Plans | |||||||||||||
For the Six Months Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Service cost | $ | 4 | $ | 3 | $ | 25 | $ | 30 | ||||||
Interest cost | 25 | 23 | 36 | 36 | ||||||||||
Expected return on plan assets | (32 | ) | (30 | ) | (35 | ) | (36 | ) | ||||||
Other(1) | 12 | 18 | 10 | 16 | ||||||||||
| | | | | | | | | | | | | | |
Net periodic pension benefit cost | $ | 9 | $ | 14 | $ | 36 | $ | 46 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
Other consists primarily of amortization of net actuarial losses. | ||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||
Mar. 28, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of weighted-average shares outstanding, basic and diluted | ' | |||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Basic | 410 | 420 | 411 | 421 | ||||||||||
Dilutive impact of share-based compensation arrangements | 7 | 4 | 6 | 4 | ||||||||||
| | | | | | | | | | | | | | |
Diluted | 417 | 424 | 417 | 425 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Share_Plans_Tables
Share Plans (Tables) | 6 Months Ended | ||||
Mar. 28, 2014 | |||||
Share Plans | ' | ||||
Weighted-average assumptions | ' | ||||
Expected share price volatility | 39 | % | |||
Risk free interest rate | 1.8 | % | |||
Expected annual dividend per share | $ | 1 | |||
Expected life of options (in years) | 6 |
Segment_Data_Tables
Segment Data (Tables) | 6 Months Ended | |||||||||||||
Mar. 28, 2014 | ||||||||||||||
Segment Data | ' | |||||||||||||
Schedule of net sales by segment | ' | |||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Transportation Solutions | $ | 1,571 | $ | 1,385 | $ | 3,011 | $ | 2,649 | ||||||
Industrial Solutions | 789 | 758 | 1,552 | 1,478 | ||||||||||
Network Solutions | 688 | 725 | 1,401 | 1,459 | ||||||||||
Consumer Solutions | 383 | 397 | 793 | 813 | ||||||||||
| | | | | | | | | | | | | | |
Total(1) | $ | 3,431 | $ | 3,265 | $ | 6,757 | $ | 6,399 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
Intersegment sales were not material and were recorded at selling prices that approximated market prices. | ||||||||||||||
Schedule of operating income by segment | ' | |||||||||||||
For the Quarters Ended | For the Six Months Ended | |||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | ||||||||||||||
Transportation Solutions | $ | 347 | $ | 241 | $ | 643 | $ | 433 | ||||||
Industrial Solutions | 106 | 79 | 205 | 151 | ||||||||||
Network Solutions | 23 | 19 | 69 | 55 | ||||||||||
Consumer Solutions | 34 | 20 | 72 | 13 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 510 | $ | 359 | $ | 989 | $ | 652 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Tyco_Electronics_Group_SA_Tabl
Tyco Electronics Group S.A. (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||
Tyco Electronics Group S.A. | ' | ||||||||||||||||
Condensed Consolidating Statement of Operations | ' | ||||||||||||||||
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Quarter Ended March 28, 2014 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,431 | $ | — | $ | 3,431 | |||||||
Cost of sales | — | — | 2,258 | — | 2,258 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 1,173 | — | 1,173 | ||||||||||||
Selling, general, and administrative expenses | 54 | — | 417 | — | 471 | ||||||||||||
Research, development, and engineering expenses | — | — | 170 | — | 170 | ||||||||||||
Acquisition and integration costs | — | — | 1 | — | 1 | ||||||||||||
Restructuring and other charges, net | — | — | 21 | — | 21 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (54 | ) | — | 564 | — | 510 | |||||||||||
Interest income | — | — | 4 | — | 4 | ||||||||||||
Interest expense | — | (30 | ) | — | — | (30 | ) | ||||||||||
Other income, net | — | — | 16 | — | 16 | ||||||||||||
Equity in net income of subsidiaries | 419 | 435 | — | (854 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (2 | ) | (2 | ) | — | 4 | — | ||||||||||
Intercompany interest income (expense), net | (1 | ) | 14 | (13 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 362 | 417 | 571 | (850 | ) | 500 | |||||||||||
Income tax expense | — | — | (136 | ) | — | (136 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 362 | 417 | 435 | (850 | ) | 364 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (2 | ) | — | (2 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 362 | 417 | 433 | (850 | ) | 362 | |||||||||||
Other comprehensive loss | (9 | ) | (9 | ) | (11 | ) | 20 | (9 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 353 | $ | 408 | $ | 422 | $ | (830 | ) | $ | 353 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Quarter Ended March 29, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,265 | $ | — | $ | 3,265 | |||||||
Cost of sales | — | — | 2,213 | — | 2,213 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 1,052 | — | 1,052 | ||||||||||||
Selling, general, and administrative expenses | 33 | 2 | 403 | — | 438 | ||||||||||||
Research, development, and engineering expenses | — | — | 171 | — | 171 | ||||||||||||
Acquisition and integration costs | — | — | 3 | — | 3 | ||||||||||||
Restructuring and other charges, net | — | — | 81 | — | 81 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (33 | ) | (2 | ) | 394 | — | 359 | ||||||||||
Interest income | — | — | 5 | — | 5 | ||||||||||||
Interest expense | — | (34 | ) | (1 | ) | — | (35 | ) | |||||||||
Other income, net | — | — | 9 | — | 9 | ||||||||||||
Equity in net income of subsidiaries | 315 | 337 | — | (652 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (1 | ) | (1 | ) | — | 2 | — | ||||||||||
Intercompany interest income (expense), net | (4 | ) | 14 | (10 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 277 | 314 | 397 | (650 | ) | 338 | |||||||||||
Income tax expense | — | — | (60 | ) | — | (60 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 277 | 314 | 337 | (650 | ) | 278 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (1 | ) | — | (1 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 277 | 314 | 336 | (650 | ) | 277 | |||||||||||
Other comprehensive loss | (122 | ) | (122 | ) | (124 | ) | 246 | (122 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 155 | $ | 192 | $ | 212 | $ | (404 | ) | $ | 155 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 28, 2014 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 6,757 | $ | — | $ | 6,757 | |||||||
Cost of sales | — | — | 4,467 | — | 4,467 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 2,290 | — | 2,290 | ||||||||||||
Selling, general, and administrative expenses | 88 | 1 | 849 | — | 938 | ||||||||||||
Research, development, and engineering expenses | — | — | 334 | — | 334 | ||||||||||||
Acquisition and integration costs | — | — | 1 | — | 1 | ||||||||||||
Restructuring and other charges, net | — | — | 28 | — | 28 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (88 | ) | (1 | ) | 1,078 | — | 989 | ||||||||||
Interest income | — | — | 9 | — | 9 | ||||||||||||
Interest expense | — | (62 | ) | (2 | ) | — | (64 | ) | |||||||||
Other income (expense), net | 18 | (3 | ) | 33 | — | 48 | |||||||||||
Equity in net income of subsidiaries | 790 | 827 | — | (1,617 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (4 | ) | (4 | ) | — | 8 | — | ||||||||||
Intercompany interest income (expense), net | (1 | ) | 29 | (28 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 715 | 786 | 1,090 | (1,609 | ) | 982 | |||||||||||
Income tax expense | — | — | (263 | ) | — | (263 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 715 | 786 | 827 | (1,609 | ) | 719 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (4 | ) | — | (4 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 715 | 786 | 823 | (1,609 | ) | 715 | |||||||||||
Other comprehensive income | 15 | 15 | 11 | (26 | ) | 15 | |||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 730 | $ | 801 | $ | 834 | $ | (1,635 | ) | $ | 730 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 29, 2013 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | — | $ | — | $ | 6,399 | $ | — | $ | 6,399 | |||||||
Cost of sales | — | — | 4,358 | — | 4,358 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Gross margin | — | — | 2,041 | — | 2,041 | ||||||||||||
Selling, general, and administrative expenses | 74 | 3 | 789 | — | 866 | ||||||||||||
Research, development, and engineering expenses | — | — | 342 | — | 342 | ||||||||||||
Acquisition and integration costs | — | — | 8 | — | 8 | ||||||||||||
Restructuring and other charges, net | — | — | 173 | — | 173 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (74 | ) | (3 | ) | 729 | — | 652 | ||||||||||
Interest income | — | — | 9 | — | 9 | ||||||||||||
Interest expense | — | (68 | ) | (4 | ) | — | (72 | ) | |||||||||
Other expense, net | — | — | (217 | ) | — | (217 | ) | ||||||||||
Equity in net income of subsidiaries | 638 | 682 | — | (1,320 | ) | — | |||||||||||
Equity in net loss of subsidiaries of discontinued operations | (3 | ) | (3 | ) | — | 6 | — | ||||||||||
Intercompany interest income (expense), net | (7 | ) | 27 | (20 | ) | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 554 | 635 | 497 | (1,314 | ) | 372 | |||||||||||
Income tax benefit | — | — | 185 | — | 185 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income from continuing operations | 554 | 635 | 682 | (1,314 | ) | 557 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | (3 | ) | — | (3 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 554 | 635 | 679 | (1,314 | ) | 554 | |||||||||||
Other comprehensive loss | (95 | ) | (95 | ) | (100 | ) | 195 | (95 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | 459 | $ | 540 | $ | 579 | $ | (1,119 | ) | $ | 459 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||
Condensed Consolidating Balance Sheet (UNAUDITED) | |||||||||||||||||
As of March 28, 2014 | |||||||||||||||||
TE | TEGSA | Other | Consolidating | Total | |||||||||||||
Connectivity | Subsidiaries | Adjustments | |||||||||||||||
Ltd. | |||||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,429 | $ | — | $ | 1,429 | |||||||
Accounts receivable, net | — | — | 2,402 | — | 2,402 | ||||||||||||
Inventories | — | — | 1,850 | — | 1,850 | ||||||||||||
Intercompany receivables | 1,850 | — | 532 | (2,382 | ) | — | |||||||||||
Prepaid expenses and other current assets | 3 | 4 | 536 | — | 543 | ||||||||||||
Deferred income taxes | — | — | 342 | — | 342 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,853 | 4 | 7,091 | (2,382 | ) | 6,566 | |||||||||||
Property, plant, and equipment, net | — | — | 3,181 | — | 3,181 | ||||||||||||
Goodwill | — | — | 4,355 | — | 4,355 | ||||||||||||
Intangible assets, net | — | — | 1,197 | — | 1,197 | ||||||||||||
Deferred income taxes | — | — | 2,009 | — | 2,009 | ||||||||||||
Investment in subsidiaries | 7,549 | 15,797 | — | (23,346 | ) | — | |||||||||||
Intercompany loans receivable | 18 | 4,616 | 9,938 | (14,572 | ) | — | |||||||||||
Receivable from Tyco International Ltd. and Covidien plc | — | — | 1,013 | — | 1,013 | ||||||||||||
Other assets | — | 26 | 281 | — | 307 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total Assets | $ | 9,420 | $ | 20,443 | $ | 29,065 | $ | (40,300 | ) | $ | 18,628 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 625 | $ | — | $ | — | $ | 625 | |||||||
Accounts payable | 1 | — | 1,420 | — | 1,421 | ||||||||||||
Accrued and other current liabilities | 489 | 47 | 1,447 | — | 1,983 | ||||||||||||
Deferred revenue | — | — | 58 | — | 58 | ||||||||||||
Intercompany payables | 531 | — | 1,851 | (2,382 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,021 | 672 | 4,776 | (2,382 | ) | 4,087 | |||||||||||
Long-term debt | — | 2,280 | 90 | — | 2,370 | ||||||||||||
Intercompany loans payable | — | 9,939 | 4,633 | (14,572 | ) | — | |||||||||||
Long-term pension and postretirement liabilities | — | — | 1,140 | — | 1,140 | ||||||||||||
Deferred income taxes | — | — | 321 | — | 321 | ||||||||||||
Income taxes | — | — | 1,996 | — | 1,996 | ||||||||||||
Other liabilities | — | 3 | 312 | — | 315 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total Liabilities | 1,021 | 12,894 | 13,268 | (16,954 | ) | 10,229 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total Equity | 8,399 | 7,549 | 15,797 | (23,346 | ) | 8,399 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total Liabilities and Equity | $ | 9,420 | $ | 20,443 | $ | 29,065 | $ | (40,300 | ) | $ | 18,628 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet (UNAUDITED) | |||||||||||||||||
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 Statement of Cash Flows | ' | ||||||||||||||||
Condensed Consolidating Statement of Cash Flows (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 28, 2014 | |||||||||||||||||
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 | $ | (62 | ) | $ | 1,768 | $ | 938 | $ | (1,804 | ) | $ | 840 | |||||
Net cash used in discontinued operating activities | — | — | (6 | ) | — | (6 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | (62 | ) | 1,768 | 932 | (1,804 | ) | 834 | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (301 | ) | — | (301 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | — | — | 21 | — | 21 | ||||||||||||
Change in intercompany loans | — | (1,820 | ) | — | 1,820 | — | |||||||||||
Intercompany distribution receipts | — | 3 | — | (3 | ) | — | |||||||||||
Other | — | — | (18 | ) | — | (18 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash used in investing activities | — | (1,817 | ) | (298 | ) | 1,817 | (298 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(1) | 33 | 6 | (39 | ) | — | — | |||||||||||
Net increase in commercial paper | — | 25 | — | — | 25 | ||||||||||||
Proceeds from issuance of long-term debt | — | 323 | — | — | 323 | ||||||||||||
Repayment of long-term debt | — | (303 | ) | (57 | ) | — | (360 | ) | |||||||||
Proceeds from exercise of share options | — | — | 109 | — | 109 | ||||||||||||
Repurchase of common shares | — | — | (392 | ) | — | (392 | ) | ||||||||||
Payment of common share dividends to shareholders | (210 | ) | — | 5 | — | (205 | ) | ||||||||||
Intercompany distributions | — | — | (1,807 | ) | 1,807 | — | |||||||||||
Loan activity with parent | 239 | — | 1,581 | (1,820 | ) | — | |||||||||||
Other | — | (2 | ) | (4 | ) | — | (6 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) continuing financing activities | 62 | 49 | (604 | ) | (13 | ) | (506 | ) | |||||||||
Net cash provided by discontinued financing activities | — | — | 6 | — | 6 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | 62 | 49 | (598 | ) | (13 | ) | (500 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of currency translation on cash | — | — | (10 | ) | — | (10 | ) | ||||||||||
Net increase in cash and cash equivalents | — | — | 26 | — | 26 | ||||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,403 | — | 1,403 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 1,429 | $ | — | $ | 1,429 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-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 (UNAUDITED) | |||||||||||||||||
For the Six Months Ended March 29, 2013 | |||||||||||||||||
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 | $ | (68 | ) | $ | (62 | ) | $ | 969 | $ | — | $ | 839 | |||||
Net cash used in discontinued operating activities | — | — | (2 | ) | — | (2 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | (68 | ) | (62 | ) | 967 | — | 837 | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Investing Activities: | |||||||||||||||||
Capital expenditures | — | — | (253 | ) | — | (253 | ) | ||||||||||
Proceeds from sale of property, plant, and equipment | 1 | — | 3 | — | 4 | ||||||||||||
Change in intercompany loans | — | 721 | — | (721 | ) | — | |||||||||||
Other | — | — | 17 | — | 17 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | 1 | 721 | (233 | ) | (721 | ) | (232 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash Flows From Financing Activities: | |||||||||||||||||
Changes in parent company equity(1) | 613 | 5 | (618 | ) | — | — | |||||||||||
Net increase in commercial paper | — | 50 | — | — | 50 | ||||||||||||
Repayment of long-term debt | — | (714 | ) | — | — | (714 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 86 | — | 86 | ||||||||||||
Repurchase of common shares | (365 | ) | — | — | — | (365 | ) | ||||||||||
Payment of cash distributions to shareholders | (181 | ) | — | 4 | — | (177 | ) | ||||||||||
Loan activity with parent | — | — | (721 | ) | 721 | — | |||||||||||
Other | — | — | (2 | ) | — | (2 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) continuing financing activities | 67 | (659 | ) | (1,251 | ) | 721 | (1,122 | ) | |||||||||
Net cash provided by discontinued financing activities | — | — | 2 | — | 2 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | 67 | (659 | ) | (1,249 | ) | 721 | (1,120 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of currency translation on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||
Net decrease in cash and cash equivalents | — | — | (516 | ) | — | (516 | ) | ||||||||||
Cash and cash equivalents at beginning of period | — | — | 1,589 | — | 1,589 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 1,073 | $ | — | $ | 1,073 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||||||||
Restructuring_and_Other_Charge2
Restructuring and Other Charges, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
Restructuring and other charges: | ' | ' | ' | ' |
Restructuring charges, net | $21 | $86 | $28 | $178 |
Gain on divestiture | ' | -5 | ' | -5 |
Restructuring and other charges, net | 21 | 81 | 28 | 173 |
Transportation Solutions | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' |
Restructuring charges, net | -1 | 18 | ' | 28 |
Industrial Solutions | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' |
Restructuring charges, net | 5 | 21 | 6 | 33 |
Network Solutions | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' |
Restructuring charges, net | 16 | 31 | 21 | 55 |
Consumer Solutions | ' | ' | ' | ' |
Restructuring and other charges: | ' | ' | ' | ' |
Restructuring charges, net | $1 | $16 | $1 | $62 |
Restructuring_and_Other_Charge3
Restructuring and Other Charges, Net (Details 2) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 28, 2014 |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | $246 |
Charges | 45 |
Changes in Estimate | -17 |
Cash Payments | -87 |
Non-Cash Items | -8 |
Currency Translation | 2 |
Restructuring reserve at the end of the period | 181 |
Fiscal 2014 Actions | ' |
Restructuring reserve | ' |
Charges | 28 |
Cash Payments | -3 |
Restructuring reserve at the end of the period | 25 |
Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | 169 |
Charges | 14 |
Changes in Estimate | -7 |
Cash Payments | -63 |
Non-Cash Items | -8 |
Currency Translation | 2 |
Restructuring reserve at the end of the period | 107 |
Pre-Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | 77 |
Charges | 3 |
Changes in Estimate | -10 |
Cash Payments | -21 |
Restructuring reserve at the end of the period | 49 |
Employee severance | Fiscal 2014 Actions | ' |
Restructuring reserve | ' |
Charges | 28 |
Cash Payments | -3 |
Restructuring reserve at the end of the period | 25 |
Employee severance | Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | 168 |
Charges | 3 |
Changes in Estimate | -7 |
Cash Payments | -60 |
Currency Translation | 2 |
Restructuring reserve at the end of the period | 106 |
Employee severance | Pre-Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | 51 |
Charges | 1 |
Changes in Estimate | -10 |
Cash Payments | -16 |
Restructuring reserve at the end of the period | 26 |
Facility and other exit costs | Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | 1 |
Charges | 3 |
Cash Payments | -3 |
Restructuring reserve at the end of the period | 1 |
Facility and other exit costs | Pre-Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Restructuring reserve at the beginning of the period | 26 |
Charges | 2 |
Cash Payments | -5 |
Restructuring reserve at the end of the period | 23 |
Property, plant, and equipment | Fiscal 2013 Actions | ' |
Restructuring reserve | ' |
Charges | 8 |
Non-Cash Items | ($8) |
Restructuring_and_Other_Charge4
Restructuring and Other Charges, Net (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 |
Transportation Solutions | Transportation Solutions | Transportation Solutions | Industrial Solutions | Industrial Solutions | Industrial Solutions | Industrial Solutions | Network Solutions | Network Solutions | Network Solutions | Network Solutions | Consumer Solutions | Consumer Solutions | Consumer Solutions | Consumer Solutions | Fiscal 2014 Actions | Fiscal 2014 Actions | Fiscal 2014 Actions | Fiscal 2014 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Employee severance | Employee severance | Employee severance | Employee severance | Employee severance | Facility and other exit costs | Facility and other exit costs | Facility and other exit costs | Facility and other exit costs | Facility and other exit costs | Property, plant, and equipment | Property, plant, and equipment | ||||||
Industrial Solutions | Network Solutions | Consumer Solutions | Transportation Solutions | Transportation Solutions | Industrial Solutions | Industrial Solutions | Network Solutions | Network Solutions | Consumer Solutions | Consumer Solutions | Fiscal 2014 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Fiscal 2014 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Pre-Fiscal 2013 Actions | Fiscal 2013 Actions | Fiscal 2013 Actions | ||||||||||||||||||||||||||||
Restructuring Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Expected Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $29 | $3 | $25 | $1 | $346 | ' | ' | $41 | ' | $73 | ' | $129 | ' | $103 | ' | ' | ' | ' | $28 | $261 | ' | ' | ' | $1 | $12 | ' | ' | ' | $73 | ' |
Charges Incurred | 21 | 86 | 28 | 178 | ' | -1 | 18 | 28 | 5 | 21 | 6 | 33 | 16 | 31 | 21 | 55 | 1 | 16 | 1 | 62 | 28 | 3 | 24 | 1 | 7 | 196 | 308 | 2 | 37 | 2 | 66 | 1 | 111 | 2 | 94 | -7 | -18 | ' | 28 | -4 | 245 | ' | ' | ' | 3 | 5 | ' | ' | 8 | 58 |
Remaining Expected Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | 1 | ' | 31 | ' | ' | 2 | ' | 5 | ' | 17 | ' | 7 | ' | ' | ' | ' | ' | 20 | ' | ' | ' | 1 | 4 | ' | ' | ' | 7 | ' |
Accrued and other current liabilities | 155 | ' | 155 | ' | 168 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | 26 | ' | 26 | ' | 78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserves | $181 | ' | $181 | ' | $246 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | $107 | ' | $169 | ' | ' | ' | ' | ' | ' | ' | ' | $49 | ' | $77 | $25 | $106 | $168 | $26 | $51 | ' | $1 | $1 | $23 | $26 | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Mar. 28, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $260 | $258 |
Work in progress | 635 | 597 |
Finished goods | 933 | 870 |
Inventoried costs on long-term contracts | 22 | 37 |
Inventories | $1,850 | $1,762 |
Goodwill_Details
Goodwill (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Sep. 27, 2013 |
Goodwill: | ' | ' |
Goodwill, beginning balance | $4,326 | ' |
Currency translation and other | 29 | ' |
Goodwill, ending balance | 4,355 | ' |
Transportation Solutions | ' | ' |
Goodwill: | ' | ' |
Goodwill, beginning balance | 797 | ' |
Currency translation and other | 3 | ' |
Goodwill, ending balance | 800 | ' |
Accumulated impairment losses | 2,191 | 2,191 |
Industrial Solutions | ' | ' |
Goodwill: | ' | ' |
Goodwill, beginning balance | 1,919 | ' |
Currency translation and other | 18 | ' |
Goodwill, ending balance | 1,937 | ' |
Accumulated impairment losses | 669 | 669 |
Network Solutions | ' | ' |
Goodwill: | ' | ' |
Goodwill, beginning balance | 977 | ' |
Currency translation and other | 5 | ' |
Goodwill, ending balance | 982 | ' |
Accumulated impairment losses | 1,236 | 1,236 |
Consumer Solutions | ' | ' |
Goodwill: | ' | ' |
Goodwill, beginning balance | 633 | ' |
Currency translation and other | 3 | ' |
Goodwill, ending balance | 636 | ' |
Accumulated impairment losses | $579 | $579 |
Intangible_Assets_Net_Details
Intangible Assets, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 |
Finite-Lived Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | $1,855 | ' | $1,855 | ' | $1,848 |
Accumulated Amortization | -658 | ' | -658 | ' | -604 |
Net Carrying Amount | 1,197 | ' | 1,197 | ' | 1,244 |
Finite-lived intangible assets, amortization expense | 27 | 28 | 55 | 56 | ' |
Estimated aggregate amortization expense on intangible assets | ' | ' | ' | ' | ' |
Remainder of fiscal 2014 | 57 | ' | 57 | ' | ' |
Fiscal 2015 | 112 | ' | 112 | ' | ' |
Fiscal 2016 | 112 | ' | 112 | ' | ' |
Fiscal 2017 | 112 | ' | 112 | ' | ' |
Fiscal 2018 | 111 | ' | 111 | ' | ' |
Fiscal 2019 | 110 | ' | 110 | ' | ' |
Thereafter | 583 | ' | 583 | ' | ' |
Intellectual property | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 1,146 | ' | 1,146 | ' | 1,144 |
Accumulated Amortization | -529 | ' | -529 | ' | -499 |
Net Carrying Amount | 617 | ' | 617 | ' | 645 |
Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 666 | ' | 666 | ' | 658 |
Accumulated Amortization | -116 | ' | -116 | ' | -92 |
Net Carrying Amount | 550 | ' | 550 | ' | 566 |
Other | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 43 | ' | 43 | ' | 46 |
Accumulated Amortization | -13 | ' | -13 | ' | -13 |
Net Carrying Amount | $30 | ' | $30 | ' | $33 |
Debt_Details
Debt (Details) (USD $) | Mar. 28, 2014 | Nov. 30, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | |||
Debt | ' | ' | ' |
Ownership percentage in TEGSA | 100.00% | 100.00% | ' |
Current maturities of long-term debt | $625 | ' | $711 |
5.95% senior notes due 2014 | ' | ' | ' |
Debt | ' | ' | ' |
Debt instrument, interest rate (as a percent) | ' | 5.95% | ' |
Principal amount of debt redeemed | ' | 300 | ' |
2.375% senior notes due 2018 | ' | ' | ' |
Debt | ' | ' | ' |
Debt instrument, interest rate (as a percent) | ' | 2.38% | ' |
Debt instrument principal amount | ' | 325 | ' |
1.60% senior notes due 2015 | ' | ' | ' |
Debt | ' | ' | ' |
Debt instrument, interest rate (as a percent) | 1.60% | ' | ' |
Long-term debt reclassified to current maturities of long-term debt | 250 | ' | ' |
Commercial paper | ' | ' | ' |
Debt | ' | ' | ' |
Debt instrument, weighted-average interest rate at period end (as a percent) | 0.26% | ' | 0.28% |
Current maturities of long-term debt | $375 | ' | $350 |
Guarantees_Details
Guarantees (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Sep. 27, 2013 |
Guarantee Obligations: | ' | ' |
Liabilities sharing percent, entity | 31.00% | ' |
Accrued and other current liabilities | $1,983 | $1,762 |
Other liabilities | 315 | 393 |
Accrued warranty claims | 35 | 38 |
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% | ' |
Guarantee obligations, current carrying value | 219 | 223 |
Accrued and other current liabilities | ' | 185 |
Other liabilities | ' | 38 |
Outstanding Letters of Credit and Letters of Guarantee | ' | ' |
Guarantee Obligations: | ' | ' |
Guarantor obligations, maximum exposure | $336 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 6 Months Ended | ||
Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 | |
Loss Contingencies | ' | ' | ' |
Liabilities sharing percent, entity | 31.00% | ' | ' |
Penalty adjustment resolved | ' | $21,000,000 | ' |
Income tax benefit associated with settlement of certain U.S. tax matters | ' | 331,000,000 | ' |
Other nonoperating expense, settlement of certain U.S. tax matters | ' | 231,000,000 | ' |
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 | ' | ' |
Net reimbursements (payments) for tax matters related to pre-separation tax matters | 21,000,000 | -67,000,000 | ' |
Net cash payments expected to be made in the next 12 months as a result of the settlement of certain tax matters | 240,000,000 | ' | ' |
Liabilities related to the audits of Tyco International and our income tax returns | 58,000,000 | ' | 15,000,000 |
Payment to IRS until the matter is fully and finally resolved | 0 | ' | ' |
Environmental matters | ' | ' | ' |
Loss Contingencies | ' | ' | ' |
Loss contingency, range of possible loss, minimum | 14,000,000 | ' | ' |
Loss contingency, range of possible loss, maximum | 26,000,000 | ' | ' |
Loss contingency, estimate of probable loss | 15,000,000 | ' | ' |
Loss contingency, accrual carrying value, current | 4,000,000 | ' | ' |
Loss contingency, accrual carrying value, noncurrent | 11,000,000 | ' | ' |
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_and_Fair1
Financial Instruments and Fair Value Measurements (Details) (USD $) | Mar. 28, 2014 | Sep. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Sep. 27, 2013 |
In Millions, unless otherwise specified | 3.50% senior notes due 2022 | Interest rate swaps | Interest rate swaps | Net investment hedges | Net investment hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | ||
3.50% senior notes due 2022 | 3.50% senior notes due 2022 | Foreign currency contracts | Commodity swap contracts | Commodity swap contracts | ||||||
LIBOR | ||||||||||
Financial Instruments and Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which all of the balance in accumulated other comprehensive income reclassified into the Condensed Consolidated Statements of Operations | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months | ' |
Debt instrument, interest rate (as a percent) | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | $300 | ' | ' | ' | ' | $296 | $278 |
Debt instrument description of variable rate basis | ' | ' | ' | ' | 'three-month U.S. Dollar London interbank offered rate | ' | ' | ' | ' | ' |
Notional amount of nonderivative instruments | ' | ' | ' | ' | ' | 2,498 | 2,374 | ' | ' | ' |
Fair value of debt | $3,184 | $3,180 | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ' | ' | ' | ' |
Service cost | $2 | $1 | $4 | $3 |
Interest cost | 12 | 12 | 25 | 23 |
Expected return on plan assets | -16 | -15 | -32 | -30 |
Other | 6 | 9 | 12 | 18 |
Net periodic pension benefit cost | 4 | 7 | 9 | 14 |
Non-U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ' | ' | ' | ' |
Service cost | 12 | 15 | 25 | 30 |
Interest cost | 18 | 18 | 36 | 36 |
Expected return on plan assets | -17 | -18 | -35 | -36 |
Other | 5 | 8 | 10 | 16 |
Net periodic pension benefit cost | 18 | 23 | 36 | 46 |
Plan Contributions | ' | ' | ' | ' |
Defined benefit plan, contributions by employer | ' | ' | $41 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 |
Income Taxes | ' | ' | ' | ' | ' |
Provision (benefit) for income taxes | $136 | $60 | $263 | ($185) | ' |
Income tax benefit associated with settlement of certain U.S. tax matters | ' | ' | ' | 331 | ' |
Income tax penalties and interest accrued | 1,102 | ' | 1,102 | ' | 1,018 |
Income tax penalties and interest accrued, location income taxes | 1,078 | ' | 1,078 | ' | 1,015 |
Income tax penalties and interest accrued, location accrued and other current liabilities | 24 | ' | 24 | ' | 3 |
Income tax penalties and interest expense | ' | ' | 58 | ' | ' |
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $225 | ' | $225 | ' | ' |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
Other Income (Expense), Net | ' | ' | ' | ' |
Other income (expense), net | $16 | $9 | $48 | ($217) |
Income related to settlement agreement entered into by former parent | ' | ' | 18 | ' |
Liabilities sharing percent, entity | ' | ' | 31.00% | ' |
Other nonoperating expense, settlement of certain U.S. tax matters | ' | ' | ' | $231 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
Earnings Per Share | ' | ' | ' | ' |
Basic (in shares) | 410 | 420 | 411 | 421 |
Dilutive impact of share-based compensation arrangements (in shares) | 7 | 4 | 6 | 4 |
Diluted (in shares) | 417 | 424 | 417 | 425 |
Share options | ' | ' | ' | ' |
Antidilutive shares excluded from computation of earnings per share | ' | ' | ' | ' |
Antidilutive shares excluded from computation of earnings per share | 0 | 5 | 0 | 6 |
Equity_Details
Equity (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Sep. 27, 2013 | |
USD ($) | CHF | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
item | item | item | ||||||
Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Cancellation of treasury shares (in shares) | 9,456,526 | 9,456,526 | ' | ' | ' | ' | ' | ' |
Cash dividend paid (in dollars per share) | ' | ' | $0.25 | $0.25 | $0.21 | $0.50 | $0.42 | ' |
Dividend or cash distribution approved (in currency per share) | $1.16 | 1.04 | ' | ' | ' | ' | ' | ' |
Number of quarterly dividend installments | 4 | 4 | 4 | ' | ' | 4 | ' | ' |
Cash distribution quarterly installment payable (in dollars per share) | $0.29 | ' | $0.29 | ' | ' | $0.29 | ' | ' |
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $475,000,000 | ' | $475,000,000 | ' | ' | $475,000,000 | ' | $206,000,000 |
Share repurchase program, increase in authorized amount | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | 7,000,000 | 11,000,000 | ' |
Shares repurchased | ' | ' | ' | ' | ' | 390,000,000 | 409,000,000 | ' |
Amount available for repurchase, at end of period | ' | ' | ' | ' | ' | $1,088,000,000 | ' | ' |
Share_Plans_Details
Share Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Dec. 27, 2013 | Dec. 27, 2013 | Dec. 27, 2013 |
Stock and Incentive Plans | Share options | Restricted share awards | Performance share awards | |||||
Share Based Compensation Arrangements: | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expenses | $21 | $19 | $43 | $40 | ' | ' | ' | ' |
Share Based Compensation Expenses Not Recognized | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, share-based awards, total compensation expense not yet recognized | $173 | ' | $173 | ' | ' | ' | ' | ' |
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | ' | ' | '2 years | ' | ' | ' | ' | ' |
Non-vested share options granted | ' | ' | ' | ' | ' | 1.5 | ' | ' |
Non-vested share awards granted | ' | ' | ' | ' | ' | ' | 1 | 0.2 |
Non-vested share options granted, weighted-average grant-date fair value (in dollars per share) | ' | ' | ' | ' | ' | $16.75 | ' | ' |
Non-vested shares granted, weighted-average grant-date fair value (in dollars per share) | ' | ' | ' | ' | ' | ' | $51.61 | $51.61 |
Shares available for issuance | ' | ' | ' | ' | 22 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ' | ' | ' | ' | ' | ' | ' | ' |
Expected share price volatility (as a percent) | ' | ' | 39.00% | ' | ' | ' | ' | ' |
Risk free interest rate (as a percent) | ' | ' | 1.80% | ' | ' | ' | ' | ' |
Expected annual dividend per share | ' | ' | $1 | ' | ' | ' | ' | ' |
Expected life of options | ' | ' | '6 years | ' | ' | ' | ' | ' |
Segment_Data_Details
Segment Data (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 |
item | ||||
Segment Data | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 4 | ' |
Net sales | $3,431 | $3,265 | $6,757 | $6,399 |
Operating income | 510 | 359 | 989 | 652 |
Transportation Solutions | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' |
Net sales | 1,571 | 1,385 | 3,011 | 2,649 |
Operating income | 347 | 241 | 643 | 433 |
Industrial Solutions | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' |
Net sales | 789 | 758 | 1,552 | 1,478 |
Operating income | 106 | 79 | 205 | 151 |
Network Solutions | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' |
Net sales | 688 | 725 | 1,401 | 1,459 |
Operating income | 23 | 19 | 69 | 55 |
Consumer Solutions | ' | ' | ' | ' |
Segment Data | ' | ' | ' | ' |
Net sales | 383 | 397 | 793 | 813 |
Operating income | $34 | $20 | $72 | $13 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event, SEACON Group, Expected, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2014 |
Subsequent event | SEACON Group | Expected | ' |
Subsequent Events | ' |
Cash to be paid for acquisition | $490 |
Tyco_Electronics_Group_SA_Deta
Tyco Electronics Group S.A. (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 | Mar. 28, 2014 | Mar. 29, 2013 | Nov. 30, 2013 |
Tyco Electronics Group S.A. | ' | ' | ' | ' | ' |
Ownership percentage in TEGSA | 100.00% | ' | 100.00% | ' | 100.00% |
Statement of Operations Detail: | ' | ' | ' | ' | ' |
Net sales | $3,431 | $3,265 | $6,757 | $6,399 | ' |
Cost of sales | 2,258 | 2,213 | 4,467 | 4,358 | ' |
Gross margin | 1,173 | 1,052 | 2,290 | 2,041 | ' |
Selling, general, and administrative expenses | 471 | 438 | 938 | 866 | ' |
Research, development, and engineering expenses | 170 | 171 | 334 | 342 | ' |
Acquisition and integration costs | 1 | 3 | 1 | 8 | ' |
Restructuring and other charges, net | 21 | 81 | 28 | 173 | ' |
Operating income | 510 | 359 | 989 | 652 | ' |
Interest income | 4 | 5 | 9 | 9 | ' |
Interest expense | -30 | -35 | -64 | -72 | ' |
Other income (expense), net | 16 | 9 | 48 | -217 | ' |
Income from continuing operations before income taxes | 500 | 338 | 982 | 372 | ' |
Income tax (expense) benefit | -136 | -60 | -263 | 185 | ' |
Income from continuing operations | 364 | 278 | 719 | 557 | ' |
Loss from discontinued operations, net of income taxes | -2 | -1 | -4 | -3 | ' |
Net income attributable to TE Connectivity Ltd. | 362 | 277 | 715 | 554 | ' |
Other comprehensive income (loss) | -9 | -122 | 15 | -95 | ' |
Comprehensive income attributable to TE Connectivity Ltd. | 353 | 155 | 730 | 459 | ' |
Consolidating Adjustments | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' |
Equity in net income of subsidiaries | -854 | -652 | -1,617 | -1,320 | ' |
Equity in net loss of subsidiaries of discontinued operations | 4 | 2 | 8 | 6 | ' |
Income from continuing operations before income taxes | -850 | -650 | -1,609 | -1,314 | ' |
Income from continuing operations | -850 | -650 | -1,609 | -1,314 | ' |
Net income attributable to TE Connectivity Ltd. | -850 | -650 | -1,609 | -1,314 | ' |
Other comprehensive income (loss) | 20 | 246 | -26 | 195 | ' |
Comprehensive income attributable to TE Connectivity Ltd. | -830 | -404 | -1,635 | -1,119 | ' |
TE Connectivity Ltd. | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' |
Selling, general, and administrative expenses | 54 | 33 | 88 | 74 | ' |
Operating income | -54 | -33 | -88 | -74 | ' |
Other income (expense), net | ' | ' | 18 | ' | ' |
Equity in net income of subsidiaries | 419 | 315 | 790 | 638 | ' |
Equity in net loss of subsidiaries of discontinued operations | -2 | -1 | -4 | -3 | ' |
Intercompany interest income (expense), net | -1 | -4 | -1 | -7 | ' |
Income from continuing operations before income taxes | 362 | 277 | 715 | 554 | ' |
Income from continuing operations | 362 | 277 | 715 | 554 | ' |
Net income attributable to TE Connectivity Ltd. | 362 | 277 | 715 | 554 | ' |
Other comprehensive income (loss) | -9 | -122 | 15 | -95 | ' |
Comprehensive income attributable to TE Connectivity Ltd. | 353 | 155 | 730 | 459 | ' |
TEGSA | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' |
Selling, general, and administrative expenses | ' | 2 | 1 | 3 | ' |
Operating income | ' | -2 | -1 | -3 | ' |
Interest expense | -30 | -34 | -62 | -68 | ' |
Other income (expense), net | ' | ' | -3 | ' | ' |
Equity in net income of subsidiaries | 435 | 337 | 827 | 682 | ' |
Equity in net loss of subsidiaries of discontinued operations | -2 | -1 | -4 | -3 | ' |
Intercompany interest income (expense), net | 14 | 14 | 29 | 27 | ' |
Income from continuing operations before income taxes | 417 | 314 | 786 | 635 | ' |
Income from continuing operations | 417 | 314 | 786 | 635 | ' |
Net income attributable to TE Connectivity Ltd. | 417 | 314 | 786 | 635 | ' |
Other comprehensive income (loss) | -9 | -122 | 15 | -95 | ' |
Comprehensive income attributable to TE Connectivity Ltd. | 408 | 192 | 801 | 540 | ' |
Other Subsidiaries | ' | ' | ' | ' | ' |
Statement of Operations Detail: | ' | ' | ' | ' | ' |
Net sales | 3,431 | 3,265 | 6,757 | 6,399 | ' |
Cost of sales | 2,258 | 2,213 | 4,467 | 4,358 | ' |
Gross margin | 1,173 | 1,052 | 2,290 | 2,041 | ' |
Selling, general, and administrative expenses | 417 | 403 | 849 | 789 | ' |
Research, development, and engineering expenses | 170 | 171 | 334 | 342 | ' |
Acquisition and integration costs | 1 | 3 | 1 | 8 | ' |
Restructuring and other charges, net | 21 | 81 | 28 | 173 | ' |
Operating income | 564 | 394 | 1,078 | 729 | ' |
Interest income | 4 | 5 | 9 | 9 | ' |
Interest expense | ' | -1 | -2 | -4 | ' |
Other income (expense), net | 16 | 9 | 33 | -217 | ' |
Intercompany interest income (expense), net | -13 | -10 | -28 | -20 | ' |
Income from continuing operations before income taxes | 571 | 397 | 1,090 | 497 | ' |
Income tax (expense) benefit | -136 | -60 | -263 | 185 | ' |
Income from continuing operations | 435 | 337 | 827 | 682 | ' |
Loss from discontinued operations, net of income taxes | -2 | -1 | -4 | -3 | ' |
Net income attributable to TE Connectivity Ltd. | 433 | 336 | 823 | 679 | ' |
Other comprehensive income (loss) | -11 | -124 | 11 | -100 | ' |
Comprehensive income attributable to TE Connectivity Ltd. | $422 | $212 | $834 | $579 | ' |
Five-Year Credit Facility | ' | ' | ' | ' | ' |
Debt information | ' | ' | ' | ' | ' |
Revolving credit line, term | ' | ' | '5 years | ' | ' |
Tyco_Electronics_Group_SA_Deta1
Tyco Electronics Group S.A. (Details 2) (USD $) | Mar. 28, 2014 | Sep. 27, 2013 | Mar. 29, 2013 | Sep. 28, 2012 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $1,429 | $1,403 | $1,073 | $1,589 |
Accounts receivable, net | 2,402 | 2,323 | ' | ' |
Inventories | 1,850 | 1,762 | ' | ' |
Prepaid expenses and other current assets | 543 | 487 | ' | ' |
Deferred income taxes | 342 | 334 | ' | ' |
Total current assets | 6,566 | 6,309 | ' | ' |
Property, plant, and equipment, net | 3,181 | 3,166 | ' | ' |
Goodwill | 4,355 | 4,326 | ' | ' |
Intangible assets, net | 1,197 | 1,244 | ' | ' |
Deferred income taxes | 2,009 | 2,146 | ' | ' |
Receivable from Tyco International Ltd. and Covidien plc | 1,013 | 1,002 | ' | ' |
Other assets | 307 | 268 | ' | ' |
Total Assets | 18,628 | 18,461 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 625 | 711 | ' | ' |
Accounts payable | 1,421 | 1,383 | ' | ' |
Accrued and other current liabilities | 1,983 | 1,762 | ' | ' |
Deferred revenue | 58 | 68 | ' | ' |
Total current liabilities | 4,087 | 3,924 | ' | ' |
Long-term debt | 2,370 | 2,303 | ' | ' |
Long-term pension and postretirement liabilities | 1,140 | 1,155 | ' | ' |
Deferred income taxes | 321 | 321 | ' | ' |
Income taxes | 1,996 | 1,979 | ' | ' |
Other liabilities | 315 | 393 | ' | ' |
Total Liabilities | 10,229 | 10,075 | ' | ' |
Total Equity | 8,399 | 8,386 | ' | ' |
Total Liabilities and Equity | 18,628 | 18,461 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | -2,382 | -2,300 | ' | ' |
Total current assets | -2,382 | -2,300 | ' | ' |
Investment in subsidiaries | -23,346 | -24,054 | ' | ' |
Intercompany loans receivable | -14,572 | -11,627 | ' | ' |
Total Assets | -40,300 | -37,981 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables | -2,382 | -2,300 | ' | ' |
Total current liabilities | -2,382 | -2,300 | ' | ' |
Intercompany loans payable | -14,572 | -11,627 | ' | ' |
Total Liabilities | -16,954 | -13,927 | ' | ' |
Total Equity | -23,346 | -24,054 | ' | ' |
Total Liabilities and Equity | -40,300 | -37,981 | ' | ' |
TE Connectivity Ltd. | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | 1,850 | 1,823 | ' | ' |
Prepaid expenses and other current assets | 3 | 6 | ' | ' |
Total current assets | 1,853 | 1,829 | ' | ' |
Investment in subsidiaries | 7,549 | 7,014 | ' | ' |
Intercompany loans receivable | 18 | 18 | ' | ' |
Total Assets | 9,420 | 8,861 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 1 | 1 | ' | ' |
Accrued and other current liabilities | 489 | 213 | ' | ' |
Intercompany payables | 531 | 256 | ' | ' |
Total current liabilities | 1,021 | 470 | ' | ' |
Intercompany loans payable | ' | 5 | ' | ' |
Total Liabilities | 1,021 | 475 | ' | ' |
Total Equity | 8,399 | 8,386 | ' | ' |
Total Liabilities and Equity | 9,420 | 8,861 | ' | ' |
TEGSA | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables | ' | 222 | ' | ' |
Prepaid expenses and other current assets | 4 | 1 | ' | ' |
Total current assets | 4 | 223 | ' | ' |
Investment in subsidiaries | 15,797 | 17,040 | ' | ' |
Intercompany loans receivable | 4,616 | 2,120 | ' | ' |
Other assets | 26 | 28 | ' | ' |
Total Assets | 20,443 | 19,411 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 625 | 650 | ' | ' |
Accrued and other current liabilities | 47 | 49 | ' | ' |
Total current liabilities | 672 | 699 | ' | ' |
Long-term debt | 2,280 | 2,213 | ' | ' |
Intercompany loans payable | 9,939 | 9,485 | ' | ' |
Other liabilities | 3 | ' | ' | ' |
Total Liabilities | 12,894 | 12,397 | ' | ' |
Total Equity | 7,549 | 7,014 | ' | ' |
Total Liabilities and Equity | 20,443 | 19,411 | ' | ' |
Other Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 1,429 | 1,403 | 1,073 | 1,589 |
Accounts receivable, net | 2,402 | 2,323 | ' | ' |
Inventories | 1,850 | 1,762 | ' | ' |
Intercompany receivables | 532 | 255 | ' | ' |
Prepaid expenses and other current assets | 536 | 480 | ' | ' |
Deferred income taxes | 342 | 334 | ' | ' |
Total current assets | 7,091 | 6,557 | ' | ' |
Property, plant, and equipment, net | 3,181 | 3,166 | ' | ' |
Goodwill | 4,355 | 4,326 | ' | ' |
Intangible assets, net | 1,197 | 1,244 | ' | ' |
Deferred income taxes | 2,009 | 2,146 | ' | ' |
Intercompany loans receivable | 9,938 | 9,489 | ' | ' |
Receivable from Tyco International Ltd. and Covidien plc | 1,013 | 1,002 | ' | ' |
Other assets | 281 | 240 | ' | ' |
Total Assets | 29,065 | 28,170 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | ' | 61 | ' | ' |
Accounts payable | 1,420 | 1,382 | ' | ' |
Accrued and other current liabilities | 1,447 | 1,500 | ' | ' |
Deferred revenue | 58 | 68 | ' | ' |
Intercompany payables | 1,851 | 2,044 | ' | ' |
Total current liabilities | 4,776 | 5,055 | ' | ' |
Long-term debt | 90 | 90 | ' | ' |
Intercompany loans payable | 4,633 | 2,137 | ' | ' |
Long-term pension and postretirement liabilities | 1,140 | 1,155 | ' | ' |
Deferred income taxes | 321 | 321 | ' | ' |
Income taxes | 1,996 | 1,979 | ' | ' |
Other liabilities | 312 | 393 | ' | ' |
Total Liabilities | 13,268 | 11,130 | ' | ' |
Total Equity | 15,797 | 17,040 | ' | ' |
Total Liabilities and Equity | $29,065 | $28,170 | ' | ' |
Tyco_Electronics_Group_SA_Deta2
Tyco Electronics Group S.A. (Details 3) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 29, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net cash provided by (used in) continuing operating activities | $840 | $839 |
Net cash used in discontinued operating activities | -6 | -2 |
Net cash provided by operating activities | 834 | 837 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -301 | -253 |
Proceeds from sale of property, plant, and equipment | 21 | 4 |
Other | -18 | 17 |
Net cash used in investing activities | -298 | -232 |
Cash Flows From Financing Activities: | ' | ' |
Net increase in commercial paper | 25 | 50 |
Proceeds from issuance of long-term debt | 323 | ' |
Repayment of long-term debt | -360 | -714 |
Proceeds from exercise of share options | 109 | 86 |
Repurchase of common shares | -392 | -365 |
Payment of common share dividends and cash distributions to shareholders | -205 | -177 |
Other | -6 | -2 |
Net cash used in continuing financing activities | -506 | -1,122 |
Net cash provided by discontinued financing activities | 6 | 2 |
Net cash used in financing activities | -500 | -1,120 |
Effect of currency translation on cash | -10 | -1 |
Net increase (decrease) in cash and cash equivalents | 26 | -516 |
Cash and cash equivalents at beginning of period | 1,403 | 1,589 |
Cash and cash equivalents at end of period | 1,429 | 1,073 |
Consolidating Adjustments | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net cash provided by (used in) continuing operating activities | -1,804 | ' |
Net cash provided by operating activities | -1,804 | ' |
Cash Flows From Investing Activities: | ' | ' |
Change in intercompany loans | 1,820 | -721 |
Intercompany distribution receipts | -3 | ' |
Net cash used in investing activities | 1,817 | -721 |
Cash Flows From Financing Activities: | ' | ' |
Intercompany distributions | 1,807 | ' |
Loan activity with parent | -1,820 | 721 |
Net cash used in continuing financing activities | -13 | 721 |
Net cash used in financing activities | -13 | 721 |
TE Connectivity Ltd. | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net cash provided by (used in) continuing operating activities | -62 | -68 |
Net cash provided by operating activities | -62 | -68 |
Cash Flows From Investing Activities: | ' | ' |
Proceeds from sale of property, plant, and equipment | ' | 1 |
Net cash used in investing activities | ' | 1 |
Cash Flows From Financing Activities: | ' | ' |
Changes in parent company equity | 33 | 613 |
Repurchase of common shares | ' | -365 |
Payment of common share dividends and cash distributions to shareholders | -210 | -181 |
Loan activity with parent | 239 | ' |
Net cash used in continuing financing activities | 62 | 67 |
Net cash used in financing activities | 62 | 67 |
TEGSA | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net cash provided by (used in) continuing operating activities | 1,768 | -62 |
Net cash provided by operating activities | 1,768 | -62 |
Cash Flows From Investing Activities: | ' | ' |
Change in intercompany loans | -1,820 | 721 |
Intercompany distribution receipts | 3 | ' |
Net cash used in investing activities | -1,817 | 721 |
Cash Flows From Financing Activities: | ' | ' |
Changes in parent company equity | 6 | 5 |
Net increase in commercial paper | 25 | 50 |
Proceeds from issuance of long-term debt | 323 | ' |
Repayment of long-term debt | -303 | -714 |
Other | -2 | ' |
Net cash used in continuing financing activities | 49 | -659 |
Net cash used in financing activities | 49 | -659 |
Other Subsidiaries | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net cash provided by (used in) continuing operating activities | 938 | 969 |
Net cash used in discontinued operating activities | -6 | -2 |
Net cash provided by operating activities | 932 | 967 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -301 | -253 |
Proceeds from sale of property, plant, and equipment | 21 | 3 |
Other | -18 | 17 |
Net cash used in investing activities | -298 | -233 |
Cash Flows From Financing Activities: | ' | ' |
Changes in parent company equity | -39 | -618 |
Repayment of long-term debt | -57 | ' |
Proceeds from exercise of share options | 109 | 86 |
Repurchase of common shares | -392 | ' |
Payment of common share dividends and cash distributions to shareholders | 5 | 4 |
Intercompany distributions | -1,807 | ' |
Loan activity with parent | 1,581 | -721 |
Other | -4 | -2 |
Net cash used in continuing financing activities | -604 | -1,251 |
Net cash provided by discontinued financing activities | 6 | 2 |
Net cash used in financing activities | -598 | -1,249 |
Effect of currency translation on cash | -10 | -1 |
Net increase (decrease) in cash and cash equivalents | 26 | -516 |
Cash and cash equivalents at beginning of period | 1,403 | 1,589 |
Cash and cash equivalents at end of period | $1,429 | $1,073 |