Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 26, 2014 | Jan. 23, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | TE Connectivity Ltd. | |
Entity Central Index Key | 1385157 | |
Document Type | 10-Q | |
Document Period End Date | 26-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -16 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 406,220,867 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $3,466 | $3,326 |
Cost of sales | 2,295 | 2,209 |
Gross margin | 1,171 | 1,117 |
Selling, general, and administrative expenses | 459 | 467 |
Research, development, and engineering expenses | 184 | 164 |
Acquisition and integration costs | 24 | |
Restructuring and other charges, net | 27 | 7 |
Operating income | 477 | 479 |
Interest income | 5 | 5 |
Interest expense | -35 | -34 |
Other income (expense), net | -70 | 32 |
Income from continuing operations before income taxes | 377 | 482 |
Income tax (expense) benefit | 95 | -127 |
Income from continuing operations | 472 | 355 |
Loss from discontinued operations, net of income taxes | -2 | |
Net income attributable to TE Connectivity Ltd. | $472 | $353 |
Basic earnings per share attributable to TE Connectivity Ltd.: | ||
Income from continuing operations (in dollars per share) | $1.16 | $0.86 |
Net income (in dollars per share) | $1.16 | $0.86 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | ||
Income from continuing operations (in dollars per share) | $1.14 | $0.85 |
Net income (in dollars per share) | $1.14 | $0.84 |
Dividends paid per common share (in dollars per share) | $0.29 | $0.25 |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 407 | 411 |
Diluted (in shares) | 413 | 418 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income attributable to TE Connectivity Ltd. | $472 | $353 |
Other comprehensive income (loss): | ||
Currency translation | -211 | 20 |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 10 | 7 |
Loss on cash flow hedges, net of income taxes | -5 | -3 |
Other comprehensive income (loss) | -206 | 24 |
Comprehensive income attributable to TE Connectivity Ltd. | $266 | $377 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $868 | $2,457 |
Accounts receivable, net of allowance for doubtful accounts of $37 and $35, respectively | 2,349 | 2,439 |
Inventories | 1,942 | 1,745 |
Prepaid expenses and other current assets | 551 | 567 |
Deferred income taxes | 335 | 336 |
Total current assets | 6,045 | 7,544 |
Property, plant, and equipment, net | 3,118 | 3,126 |
Goodwill | 5,638 | 4,595 |
Intangible assets, net | 1,830 | 1,329 |
Deferred income taxes | 2,092 | 2,058 |
Receivable from Tyco International plc and Covidien plc | 956 | 1,037 |
Other assets | 474 | 463 |
Total Assets | 20,153 | 20,152 |
Current liabilities: | ||
Current maturities of long-term debt | 937 | 667 |
Accounts payable | 1,382 | 1,391 |
Accrued and other current liabilities | 1,436 | 1,717 |
Deferred revenue | 121 | 179 |
Total current liabilities | 3,876 | 3,954 |
Long-term debt | 3,286 | 3,281 |
Long-term pension and postretirement liabilities | 1,257 | 1,287 |
Deferred income taxes | 304 | 240 |
Income taxes | 1,915 | 2,045 |
Other liabilities | 345 | 332 |
Total Liabilities | 10,983 | 11,139 |
Commitments and contingencies (Note 9) | ||
TE Connectivity Ltd. shareholders' equity: | ||
Common shares, 419,070,781 shares authorized and issued, CHF 0.57 par value | 184 | 184 |
Contributed surplus | 5,181 | 5,231 |
Accumulated earnings | 4,725 | 4,253 |
Treasury shares, at cost, 12,139,242 and 11,383,631 shares, respectively | -703 | -644 |
Accumulated other comprehensive loss | -223 | -17 |
Total TE Connectivity Ltd. Shareholders' equity | 9,164 | 9,007 |
Noncontrolling interests | 6 | 6 |
Total Equity | 9,170 | 9,013 |
Total Liabilities and Equity | $20,153 | $20,152 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 26, 2014 | Dec. 26, 2014 | Sep. 26, 2014 | Sep. 26, 2014 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $37 | $35 | ||
Common shares, shares authorized | 419,070,781 | 419,070,781 | 419,070,781 | 419,070,781 |
Common shares, shares issued | 419,070,781 | 419,070,781 | 419,070,781 | 419,070,781 |
Common shares, par value (in currency per share) | 0.57 | 0.57 | ||
Treasury shares | 12,139,242 | 12,139,242 | 11,383,631 | 11,383,631 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | TE Connectivity Ltd. Shareholders' Equity | Noncontrolling Interests | Total |
In Millions, unless otherwise specified | ||||||||
Balance at Sep. 27, 2013 | $189 | ($720) | $6,136 | $2,472 | $303 | $8,380 | $6 | $8,386 |
Balance (in shares) at Sep. 27, 2013 | 429 | -17 | ||||||
Increase (Decrease) in Equity: | ||||||||
Net income | 353 | 353 | 353 | |||||
Other comprehensive income (loss) | 24 | 24 | 24 | |||||
Share-based compensation expense | 22 | 22 | 22 | |||||
Exercise of share options | 57 | 57 | 57 | |||||
Exercise of share options (in shares) | 2 | |||||||
Restricted share award vestings and other activity | 50 | -58 | -8 | -8 | ||||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | -212 | -212 | -212 | |||||
Repurchase of common shares (in shares) | -4 | -4 | ||||||
Balance at Dec. 27, 2013 | 189 | -825 | 6,100 | 2,825 | 327 | 8,616 | 6 | 8,622 |
Balance (in shares) at Dec. 27, 2013 | 429 | -18 | ||||||
Balance at Sep. 26, 2014 | 184 | -644 | 5,231 | 4,253 | -17 | 9,007 | 6 | 9,013 |
Balance (in shares) at Sep. 26, 2014 | 419 | -11 | ||||||
Increase (Decrease) in Equity: | ||||||||
Net income | 472 | 472 | 472 | |||||
Other comprehensive income (loss) | -206 | -206 | -206 | |||||
Share-based compensation expense | 25 | 25 | 25 | |||||
Exercise of share options | 16 | 16 | 16 | |||||
Restricted share award vestings and other activity | 66 | -75 | -9 | -9 | ||||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | -141 | -141 | -141 | |||||
Repurchase of common shares (in shares) | -2 | -2 | ||||||
Balance at Dec. 26, 2014 | $184 | ($703) | $5,181 | $4,725 | ($223) | $9,164 | $6 | $9,170 |
Balance (in shares) at Dec. 26, 2014 | 419 | -12 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Cash Flows From Operating Activities: | ||
Net income attributable to TE Connectivity Ltd. | $472 | $353 |
Loss from discontinued operations, net of income taxes | 2 | |
Income from continuing operations | 472 | 355 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 175 | 149 |
Non-cash restructuring charges | 15 | 3 |
Deferred income taxes | -67 | 31 |
Provision for losses on accounts receivable and inventories | 25 | 23 |
Tax sharing (income) expense | 69 | -34 |
Share-based compensation expense | 25 | 22 |
Other | 30 | 22 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | 98 | 27 |
Inventories | -170 | -97 |
Prepaid expenses and other current assets | 24 | 23 |
Accounts payable | -21 | -19 |
Accrued and other current liabilities | -232 | -144 |
Income taxes | -115 | 40 |
Deferred revenue | -56 | 9 |
Other | 23 | -23 |
Net cash provided by continuing operating activities | 295 | 387 |
Net cash used in discontinued operating activities | -2 | |
Net cash provided by operating activities | 295 | 385 |
Cash Flows From Investing Activities: | ||
Capital expenditures | -142 | -133 |
Proceeds from sale of property, plant, and equipment | 5 | 12 |
Acquisition of businesses, net of cash acquired | -1,511 | |
Other | -3 | -2 |
Net cash used in investing activities | -1,651 | -123 |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | 270 | -25 |
Proceeds from issuance of long-term debt | 323 | |
Repayment of long-term debt | -223 | -303 |
Proceeds from exercise of share options | 16 | 57 |
Repurchase of common shares | -155 | -210 |
Payment of common share dividends to shareholders | -118 | -103 |
Other | 1 | -3 |
Net cash used in continuing financing activities | -209 | -264 |
Net cash provided by discontinued financing activities | 2 | |
Net cash used in financing activities | -209 | -262 |
Effect of currency translation on cash | -24 | -6 |
Net decrease in cash and cash equivalents | -1,589 | -6 |
Cash and cash equivalents at beginning of period | 2,457 | 1,403 |
Cash and cash equivalents at end of period | $868 | $1,397 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 26, 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 26, 2014. | |
Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2015 and fiscal 2014 are to our fiscal years ending September 25, 2015 and September 26, 2014, respectively. | |
Restructuring_and_Other_Charge
Restructuring and Other Charges, Net | 3 Months Ended | ||||||||||||||
Dec. 26, 2014 | |||||||||||||||
Restructuring and Other Charges, Net | |||||||||||||||
Restructuring and Other Charges, Net | 2. Restructuring and Other Charges, Net | ||||||||||||||
Net restructuring charges by segment were as follows: | |||||||||||||||
For the Quarters Ended | |||||||||||||||
December 26, | December 27, | ||||||||||||||
2014 | 2013 | ||||||||||||||
(in millions) | |||||||||||||||
Transportation Solutions | $ | $ | |||||||||||||
1 | 1 | ||||||||||||||
Industrial Solutions | 2 | 1 | |||||||||||||
Network Solutions | 1 | 5 | |||||||||||||
Consumer Solutions | 23 | — | |||||||||||||
| | | | | |||||||||||
Restructuring charges, net | $ | $ | |||||||||||||
27 | 7 | ||||||||||||||
| | | | | |||||||||||
| | | | | |||||||||||
Activity in our restructuring reserves during the first quarter of fiscal 2015 is summarized as follows: | |||||||||||||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||
September 26, | Estimate | Payments | Items | Translation | December 26, | ||||||||||
2014 | 2014 | ||||||||||||||
(in millions) | |||||||||||||||
Fiscal 2015 Actions: | |||||||||||||||
Employee severance | $— | $ | $— | $ | $— | $— | $ | ||||||||
11 | -3 | 8 | |||||||||||||
Property, plant, and equipment | — | 14 | — | — | -14 | — | — | ||||||||
| | | | | | | | | | | | | | | |
Total | — | 25 | — | -3 | -14 | — | 8 | ||||||||
| | | | | | | | | | | | | | | |
Fiscal 2014 Actions: | |||||||||||||||
Employee severance | 16 | — | — | -2 | — | — | 14 | ||||||||
Facility and other exit costs | 1 | — | — | — | — | — | 1 | ||||||||
| | | | | | | | | | | | | | | |
Total | 17 | — | — | -2 | — | — | 15 | ||||||||
| | | | | | | | | | | | | | | |
Pre-Fiscal 2014 Actions: | |||||||||||||||
Employee severance | 84 | 1 | -1 | -14 | — | -4 | 66 | ||||||||
Facility and other exit costs | 22 | 1 | — | -3 | — | — | 20 | ||||||||
Property, plant, and equipment | — | 1 | — | — | -1 | — | — | ||||||||
| | | | | | | | | | | | | | | |
Total | 106 | 3 | -1 | -17 | -1 | -4 | 86 | ||||||||
| | | | | | | | | | | | | | | |
Total Activity | $ | $ | $ | $ | $ | $ | $ | ||||||||
123 | 28 | -1 | -22 | -15 | -4 | 109 | |||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Fiscal 2015 Actions | |||||||||||||||
During fiscal 2015, we initiated a restructuring program associated with headcount reductions and product line closures, primarily impacting the Consumer Solutions segment. In connection with this program, during the quarter ended December 26, 2014, we recorded restructuring charges of $25 million. We expect to complete all restructuring actions commenced in the first quarter of fiscal 2015 by the end of fiscal 2016 and to incur total charges of approximately $27 million. | |||||||||||||||
Fiscal 2014 Actions | |||||||||||||||
During fiscal 2014, we initiated a restructuring program primarily associated with headcount reductions and manufacturing site and product line closures in the Network Solutions and Consumer Solutions segments. In connection with this program, during the quarter ended December 27, 2013, we recorded restructuring charges of $3 million. We did not incur any charges during the quarter ended December 26, 2014. We do not expect to incur any additional expense related to restructuring actions commenced in fiscal 2014. | |||||||||||||||
Pre-Fiscal 2014 Actions | |||||||||||||||
During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. During fiscal 2012, we initiated a restructuring program to reduce headcount across all segments. Also, during fiscal 2012, we initiated a restructuring program in the Transportation Solutions and Industrial Solutions segments associated with the acquisition of Deutsch Group SAS. During the quarters ended December 26, 2014 and December 27, 2013, we recorded net restructuring charges of $2 million and $4 million, respectively, related to pre-fiscal 2014 actions. We do not expect to incur any additional significant charges related to pre-fiscal 2014 actions. | |||||||||||||||
Total Restructuring Reserves | |||||||||||||||
Restructuring reserves included on our Condensed Consolidated Balance Sheets were as follows: | |||||||||||||||
December 26, | September 26, | ||||||||||||||
2014 | 2014 | ||||||||||||||
(in millions) | |||||||||||||||
Accrued and other current liabilities | $ | $ | |||||||||||||
80 | 92 | ||||||||||||||
Other liabilities | 29 | 31 | |||||||||||||
| | | | | |||||||||||
Restructuring reserves | $ | $ | |||||||||||||
109 | 123 | ||||||||||||||
| | | | | |||||||||||
| | | | | |||||||||||
Acquisition
Acquisition | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Acquisitions | |||||
Acquisitions | 3. Acquisition | ||||
On October 9, 2014, we acquired 100% of the outstanding shares of Measurement Specialties, Inc. ("Measurement Specialties"), a leading global designer and manufacturer of sensors and sensor-based systems, for $86.00 in cash per share. The total value paid was approximately $1.7 billion, net of cash acquired, and included $225 million for the repayment of Measurement Specialties' debt and accrued interest. Measurement Specialties offers a broad portfolio of technologies including pressure, vibration, force, temperature, humidity, ultrasonics, position, and fluid sensors, for a wide range of applications and industries. This business has been reported as part of our Transportation Solutions segment from the date of acquisition. | |||||
The Measurement Specialties acquisition was accounted for under the provisions of Accounting Standards Codification ("ASC") 805, Business Combinations. We have preliminarily allocated the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. We are in the process of completing the valuation of identifiable intangible assets, fixed assets, and pre-acquisition contingencies and, therefore, the fair values set forth below are subject to adjustment upon finalizing the valuations. The amount of these potential adjustments could be significant. We expect to complete the purchase price allocation during the second quarter of fiscal 2015. | |||||
The following table summarizes the preliminary allocation of the purchase price to the fair value of identifiable assets acquired and liabilities assumed at the date of acquisition, in accordance with the acquisition method of accounting: | |||||
(in millions) | |||||
Cash and cash equivalents | $ | ||||
37 | |||||
Accounts receivable | 84 | ||||
Inventories | 111 | ||||
Other current assets | 18 | ||||
Property, plant, and equipment | 82 | ||||
Goodwill | 1,071 | ||||
Intangible assets | 561 | ||||
Other non-current assets | 9 | ||||
| | | |||
Total assets acquired | 1,973 | ||||
| | | |||
Current maturities of long-term debt | 20 | ||||
Accounts payable | 48 | ||||
Other current liabilities | 66 | ||||
Long-term debt | 203 | ||||
Deferred income taxes | 105 | ||||
Other non-current liabilities | 10 | ||||
| | | |||
Total liabilities assumed | 452 | ||||
| | | |||
Net assets acquired | 1,521 | ||||
Cash and cash equivalents acquired | -37 | ||||
| | | |||
Net cash paid | $ | ||||
1,484 | |||||
| | | |||
The fair values assigned to intangible assets were preliminarily determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. Both valuation methods rely on management judgment, including expected future cash flows resulting from existing customer relationships, customer attrition rates, contributory effects of other assets utilized in the business, peer group cost of capital and royalty rates, and other factors. The valuation of tangible assets was derived using a combination of the income, market, and cost approaches. Significant judgments used in valuing tangible assets include estimated reproduction or replacement cost, useful lives of assets, estimated selling prices, costs to complete, and reasonable profit. Useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. | |||||
Intangible assets acquired consisted of the following: | |||||
Amount | Weighted-Average | ||||
Amortization | |||||
Period | |||||
(in millions) | (in years) | ||||
Customer relationships | $ | 18 | |||
390 | |||||
Developed technology | 154 | 9 | |||
Trade names and trademarks | 5 | 1 | |||
Customer order backlog | 12 | <1 | |||
| | | | | |
Total | $ | 15 | |||
561 | |||||
| | | | | |
| | | | | |
The acquired intangible assets are being amortized on a straight-line basis over their expected useful lives. | |||||
Goodwill of $1,071 million was recognized in the transaction, representing the excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed. This goodwill is attributable primarily to cost savings and other synergies related to operational efficiencies including the consolidation of manufacturing, marketing, and general and administrative functions. The goodwill has been allocated to the Transportation Solutions segment and is not deductible for tax purposes. However, prior to its merger with us, Measurement Specialties completed certain acquisitions that resulted in goodwill with an estimated value of $23 million that is deductible primarily for U.S. tax purposes, which we will deduct through 2030. | |||||
During the first quarter of fiscal 2015, Measurement Specialties contributed net sales of $125 million and an operating loss of $28 million to our Condensed Consolidated Statement of Operations. The operating loss included charges of $26 million associated with the amortization of acquisition-related fair value adjustments related to acquired inventories and customer order backlog, acquisition costs of $13 million, and integration costs of $2 million. | |||||
Pro Forma Financial Information | |||||
The following unaudited pro forma financial information reflects our consolidated results of operations had the Measurement Specialties acquisition occurred at the beginning of fiscal 2014: | |||||
Pro Forma for | |||||
the Quarters Ended | |||||
December 26, | December 27, | ||||
2014 | 2013 | ||||
(in millions, except per share | |||||
data) | |||||
Net sales | $ | $ | |||
3,485 | 3,430 | ||||
Net income attributable to TE Connectivity Ltd. | 493 | 341 | |||
Diluted earnings per share attributable to TE Connectivity Ltd | $ | $ | |||
1.19 | 0.82 | ||||
The pro forma financial information is based on our preliminary allocation of the purchase price and therefore subject to adjustment upon finalizing the purchase price allocation. The significant pro forma adjustments, which are described below, are net of income tax expense (benefit) at the statutory rate. | |||||
Pro forma results for the quarter ended December 26, 2014 were adjusted to exclude $16 million of acquisition costs, $15 million of share-based compensation expense incurred by Measurement Specialties as a result of the change in control of Measurement Specialties, $11 million of charges related to the fair value adjustment to acquisition-date inventories, $8 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position, and $5 million of charges related to acquired customer order backlog. Pro forma results for the quarter ended December 26, 2014 were also adjusted to include $1 million of interest expense based on pro forma changes in our capital structure. | |||||
Pro forma results for the quarter ended December 27, 2013 were adjusted to include $11 million of charges related to the fair value adjustment to acquisition-date inventories, $6 million of charges related to acquired customer order backlog, $3 million of interest expense based on pro forma changes in our capital structure, and $1 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position. In addition, pro forma results for the quarter ended December 27, 2013 were adjusted to exclude $1 million of charges related to the amortization of the fair value of acquired intangible assets. | |||||
Pro forma results do not include any anticipated synergies or other anticipated benefits of the acquisition. Accordingly, the unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Measurement Specialties acquisition occurred at the beginning of fiscal 2014. | |||||
Inventories
Inventories | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Inventories. | |||||
Inventories | 4. Inventories | ||||
Inventories consisted of the following: | |||||
December 26, | September 26, | ||||
2014 | 2014 | ||||
(in millions) | |||||
Raw materials | $ | $ | |||
314 | 257 | ||||
Work in progress | 654 | 620 | |||
Finished goods | 974 | 868 | |||
| | | | | |
Inventories | $ | $ | |||
1,942 | 1,745 | ||||
| | | | | |
| | | | | |
Goodwill
Goodwill | 3 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Goodwill | |||||||||||
Goodwill | 5. Goodwill | ||||||||||
The changes in the carrying amount of goodwill by segment were as follows: | |||||||||||
Transportation | Industrial | Network | Consumer | Total | |||||||
Solutions | Solutions | Solutions | Solutions | ||||||||
(in millions) | |||||||||||
September 26, 2014(1) | $ | $ | $ | $ | $ | ||||||
834 | 2,165 | 970 | 626 | 4,595 | |||||||
Acquisitions | 1,072 | 22 | — | — | 1,094 | ||||||
Currency translation | -9 | -24 | -11 | -7 | -51 | ||||||
| | | | | | | | | | | |
December 26, 2014(1) | $ | $ | $ | $ | $ | ||||||
1,897 | 2,163 | 959 | 619 | 5,638 | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | At December 26, 2014 and September 26, 2014, 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. | ||||||||||
During the first quarter of fiscal 2015, we completed the acquisition of Measurement Specialties and recognized $1,071 million of goodwill which benefits the Transportation Solutions segment. See Note 3 for additional information on the acquisition of Measurement Specialties. | |||||||||||
Intangible_Assets_Net
Intangible Assets, Net | 3 Months Ended | ||||||||||||
Dec. 26, 2014 | |||||||||||||
Intangible Assets, Net | |||||||||||||
Intangible Assets, Net | 6. Intangible Assets, Net | ||||||||||||
Intangible assets consisted of the following: | |||||||||||||
December 26, 2014 | September 26, 2014 | ||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||
Amount | Amount | Amount | Amount | ||||||||||
(in millions) | |||||||||||||
Intellectual property | $ | $ | $ | $ | $ | $ | |||||||
1,377 | -579 | 798 | 1,216 | -559 | 657 | ||||||||
Customer relationships | 1,175 | -169 | 1,006 | 784 | -142 | 642 | |||||||
Other | 41 | -15 | 26 | 44 | -14 | 30 | |||||||
| | | | | | | | | | | | | |
Total | $ | $ | $ | $ | $ | $ | |||||||
2,593 | -763 | 1,830 | 2,044 | -715 | 1,329 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
During the first quarter of fiscal 2015, the gross carrying amount of intangible assets increased by $561 million as a result of the Measurement Specialties acquisition. Intangible asset amortization expense was $50 million and $28 million for the quarters ended December 26, 2014 and December 27, 2013, respectively. | |||||||||||||
The aggregate amortization expense on intangible assets is expected to be as follows: | |||||||||||||
(in millions) | |||||||||||||
Remainder of fiscal 2015 | $ | ||||||||||||
134 | |||||||||||||
Fiscal 2016 | 169 | ||||||||||||
Fiscal 2017 | 165 | ||||||||||||
Fiscal 2018 | 164 | ||||||||||||
Fiscal 2019 | 160 | ||||||||||||
Fiscal 2020 | 158 | ||||||||||||
Thereafter | 880 | ||||||||||||
| | | |||||||||||
Total | $ | ||||||||||||
1,830 | |||||||||||||
| | | |||||||||||
| | | |||||||||||
Debt
Debt | 3 Months Ended |
Dec. 26, 2014 | |
Debt | |
Debt | 7. Debt |
As of December 26, 2014, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, had $597 million of commercial paper outstanding at a weighted-average interest rate of 0.43%. TEGSA had $327 million of commercial paper outstanding at a weighted-average interest rate of 0.30% at September 26, 2014. | |
The fair value of our debt, based on indicative valuations, was approximately $4,495 million and $4,214 million at December 26, 2014 and September 26, 2014, respectively. | |
Guarantees
Guarantees | 3 Months Ended |
Dec. 26, 2014 | |
Guarantees | |
Guarantees | 8. Guarantees |
Tax Sharing Agreement | |
Effective June 29, 2007, we became the parent company of the former electronics businesses of Tyco International plc ("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. Our indemnification created under the Tax Sharing Agreement qualifies as a guarantee of a third party entity's debt under ASC 460, Guarantees. At December 26, 2014 and September 26, 2014, we had a liability of $21 million representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement. | |
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 December 26, 2014, we had outstanding letters of credit, letters of guarantee, and surety bonds in the amount of $356 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; other warranty reserves are not significant. The estimation is based primarily on historical experience and actual warranty claims. Amounts accrued for warranty claims were $31 million at December 26, 2014 and September 26, 2014. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 26, 2014 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. 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 December 26, 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. In November 2014, sellers filed their pre-trial statements with the court claiming no less than $135 million, representing the $80 million contingent purchase price commitment plus interest and costs. 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 or reasonably estimable at this time. | |
Income Tax Matters | |
The Tax Sharing Agreement generally governs our, Tyco International's, and Covidien's respective rights, responsibilities, and obligations with respect to taxes for periods prior to and including June 29, 2007. Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. See Note 8 for additional information regarding the Tax Sharing Agreement. | |
In October 2012, the Internal Revenue Service ("IRS") issued special agreement Forms 870-AD, effectively settling its audit of all tax matters for the years 1997 through 2000, excluding one issue that remains in dispute. The disputed issue involves the tax treatment of certain intercompany debt transactions. The IRS field examination asserted that certain intercompany loans originated during the years 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. | |
A U.S. Tax Court trial date of February 29, 2016 has been set and the parties are engaged in discovery. We do not expect any payments to the IRS with respect to these matters until they are fully and finally resolved. In accordance with the 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 these matters. | |
In the first quarter of fiscal 2015, the IRS issued general agreement Forms 870, effectively settling its audits of tax matters for the years 2001 through 2007, excluding the disputed issue involving certain intercompany loans originated during the years 1997 through 2000. As a result of these developments, in the first quarter of fiscal 2015, we recognized an income tax benefit of $189 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $83 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. | |
During the first quarter of fiscal 2015, we made net payments of $4 million related to pre-separation U.S. tax matters. Over the next twelve months, we expect to make net cash payments of approximately $50 million in connection with pre-separation U.S. tax matters. | |
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 2015. | |
At December 26, 2014 and September 26, 2014, we have reflected $55 million and $51 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 December 26, 2014, we concluded that it was probable that we would incur remedial costs in the range of $17 million to $40 million. As of December 26, 2014, we concluded that the best estimate within this range was $21 million. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows. | |
Financial_Instruments
Financial Instruments | 3 Months Ended |
Dec. 26, 2014 | |
Financial Instrument. | |
Financial Instruments | 10. Financial Instruments |
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 $2,944 million and $2,893 million at December 26, 2014 and September 26, 2014, respectively. We recorded foreign exchange gains of $130 million in the quarter ended December 26, 2014 as currency translation, a component of accumulated other comprehensive income (loss), offsetting foreign exchange gains or losses attributable to the translation of the net investment. Foreign exchange gains and losses recorded as currency translation for the quarter ended December 27, 2013 were immaterial. | |
Commodity Hedges | |
At December 26, 2014 and September 26, 2014, we had commodity hedges with notional values of $329 million and $307 million, respectively. | |
Retirement_Plans
Retirement Plans | 3 Months Ended | ||||||||
Dec. 26, 2014 | |||||||||
Retirement Plans | |||||||||
Retirement Plans | |||||||||
11. 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 | ||||||||
December 26, | December 27, | December 26, | December 27, | ||||||
2014 | 2013 | 2014 | 2013 | ||||||
(in millions) | |||||||||
Service cost | $ | $ | $ | $ | |||||
2 | 2 | 13 | 13 | ||||||
Interest cost | 12 | 13 | 16 | 18 | |||||
Expected return on plan assets | -17 | -16 | -20 | -18 | |||||
Amortization of net actuarial loss | 7 | 6 | 9 | 6 | |||||
Amortization of prior service credit | — | — | -1 | -1 | |||||
| | | | | | | | | |
Net periodic pension benefit cost | $ | $ | $ | $ | |||||
4 | 5 | 17 | 18 | ||||||
| | | | | | | | | |
| | | | | | | | | |
During the quarter ended December 26, 2014, we contributed $16 million to our non-U.S. pension plans. | |||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 26, 2014 | |
Income Taxes | |
Income Taxes | 12. Income Taxes |
We recorded an income tax benefit of $95 million and an income tax provision of $127 million for the quarters ended December 26, 2014 and December 27, 2013, respectively. The tax benefit for the quarter ended December 26, 2014 reflects a $189 million income tax benefit related to the effective settlement of undisputed tax matters for the years 2001 through 2007, and an income tax benefit related to the impacts of certain non-U.S. tax law changes and the associated reduction in the valuation allowance for tax loss carryforwards. The provision for the quarter ended December 27, 2013 reflects an income tax charge related to the impacts of certain non-U.S. tax law changes and the associated increase in the valuation allowance for tax loss carryforwards, and 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 December 26, 2014, we had recorded $1,058 million of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheet, of which $1,036 million was recorded in income taxes and $22 million was recorded in accrued and other current liabilities. During the quarter ended December 26, 2014, we recognized a $44 million income tax benefit related to interest and penalties on the Condensed Consolidated Statement of Operations. As of September 26, 2014, the balance of accrued interest and penalties was $1,136 million, of which $1,115 million was recorded in income taxes and $21 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 2007 have been effectively settled but remain subject to adjustment by the IRS upon ultimate resolution of the disputed issue involving certain intercompany loans originated during the years 1997 through 2000. 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 2015. See Note 9 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 $80 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. | |
We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of December 26, 2014. | |
Other_Income_Expense_Net
Other Income (Expense), Net | 3 Months Ended |
Dec. 26, 2014 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 13. Other Income (Expense), Net |
During the quarters ended December 26, 2014 and December 27, 2013, we recorded net other expense of $70 million and net other income of $32 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. See Note 8 for further information regarding the Tax Sharing Agreement. | |
The net other expense for the first quarter of fiscal 2015 included $83 million related to the effective settlement of undisputed tax matters for the years 2001 through 2007. See Note 9 for additional information. | |
The net other income for the first quarter of fiscal 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. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Earnings Per Share | |||||
Earnings Per Share | 14. Earnings Per Share | ||||
The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows: | |||||
For the Quarters Ended | |||||
December 26, | December 27, | ||||
2014 | 2013 | ||||
(in millions) | |||||
Basic | 407 | 411 | |||
Dilutive impact of share-based compensation arrangements | 6 | 7 | |||
| | | | | |
Diluted | 413 | 418 | |||
| | | | | |
| | | | | |
The computation of diluted earnings per share for the quarter ended December 26, 2014 excludes 2 million of share options 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 ended December 27, 2013. | |||||
Equity
Equity | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Equity | |||||
Equity | 15. Equity | ||||
Dividends | |||||
We paid a cash dividend of $0.29 per share to shareholders out of contributed surplus in the first quarter of fiscal 2015. | |||||
Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to contributed surplus. At December 26, 2014 and September 26, 2014, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $118 million and $236 million, respectively. | |||||
Share Repurchase Program | |||||
Common shares repurchased under the share repurchase program were as follows: | |||||
For the Quarters Ended | |||||
December 26, | December 27, | ||||
2014 | 2013 | ||||
(in millions) | |||||
Number of common shares repurchased | 2 | 4 | |||
Amount repurchased | $ | $ | |||
141 | 212 | ||||
At December 26, 2014, we had $733 million of availability remaining under our share repurchase authorization. | |||||
Share_Plans
Share Plans | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Share Plans | |||||
Share Plans | 16. Share Plans | ||||
Total share-based compensation expense, which was included primarily in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was $25 million and $22 million during the first quarters of fiscal 2015 and 2014, respectively. As of December 26, 2014, there was $213 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.1 years. | |||||
During the first quarter of fiscal 2015, we granted the following equity awards as part of our annual incentive plan grant: | |||||
Shares | Weighted- | ||||
Average | |||||
Grant-Date | |||||
Fair Value | |||||
(in millions) | |||||
Share options | 1.7 | $ | |||
18.82 | |||||
Restricted share awards | 1.1 | 61.50 | |||
Performance share awards | 0.2 | 61.50 | |||
As of December 26, 2014, we had 19 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 | |||||
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 | 36% | ||||
Risk free interest rate | 1.97% | ||||
Expected annual dividend per share | $ | ||||
1.16 | |||||
Expected life of options (in years) | 6.0 | ||||
Segment_Data
Segment Data | 3 Months Ended | ||||||||
Dec. 26, 2014 | |||||||||
Segment Data | |||||||||
Segment Data | 17. Segment Data | ||||||||
Net sales and operating income by segment were as follows: | |||||||||
Net Sales(1) | Operating Income | ||||||||
For the Quarters Ended | For the Quarters Ended | ||||||||
December 26, | December 27, | December 26, | December 27, | ||||||
2014 | 2013 | 2014 | 2013 | ||||||
(in millions) | |||||||||
Transportation Solutions | $ | $ | $ | $ | |||||
1,612 | 1,440 | 303 | 296 | ||||||
Industrial Solutions | 784 | 763 | 89 | 99 | |||||
Network Solutions | 704 | 713 | 61 | 46 | |||||
Consumer Solutions | 366 | 410 | 24 | 38 | |||||
| | | | | | | | | |
Total | $ | $ | $ | $ | |||||
3,466 | 3,326 | 477 | 479 | ||||||
| | | | | | | | | |
| | | | | | | | | |
-1 | Intersegment sales were not material and were recorded at selling prices that approximated market prices. | ||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended | ||
Dec. 26, 2014 | |||
Subsequent Event. | |||
Subsequent Event | 18. Subsequent Events | ||
Planned Divestiture | |||
On January 27, 2015, we entered into a definitive agreement to sell our Broadband Network Solutions ("BNS") business for $3.0 billion in cash, subject to a final working capital adjustment. The transaction is expected to close during calendar 2015 and is subject to customary closing conditions and regulatory approvals. | |||
The BNS business will meet the held for sale and discontinued operations reporting criteria and be included in discontinued operations beginning in the second quarter of fiscal 2015. Prior period results will be reclassified to conform to this presentation. The BNS business is currently reported in the Network Solutions segment. | |||
The following table presents balance sheet information for the BNS business which is included on the accompanying Condensed Consolidated Balance Sheet at December 26, 2014: | |||
December 26, | |||
2014 | |||
(in millions) | |||
Accounts receivable, net | $ | ||
313 | |||
Inventories | 243 | ||
Property, plant, and equipment, net | 199 | ||
Goodwill | 767 | ||
Intangible assets, net | 233 | ||
Other assets | 54 | ||
| | | |
Total assets | $ | ||
1,809 | |||
| | | |
| | | |
Current maturities of long-term debt | $ | ||
90 | |||
Accounts payable | 130 | ||
Other liabilities | 131 | ||
| | | |
Total liabilities | $ | ||
351 | |||
| | | |
| | | |
Share Repurchase Program | |||
On January 27, 2015, our board of directors authorized an increase of $3.0 billion in the share repurchase program. | |||
Tyco_Electronics_Group_SA
Tyco Electronics Group S.A. | 3 Months Ended | |||||||||||
Dec. 26, 2014 | ||||||||||||
Tyco Electronics Group S.A. | ||||||||||||
Tyco Electronics Group S.A. | 19. 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 December 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Net sales | $— | $— | $ | $— | $ | |||||||
3,466 | 3,466 | |||||||||||
Cost of sales | — | — | 2,295 | — | 2,295 | |||||||
| | | | | | | | | | | ||
Gross margin | — | — | 1,171 | — | 1,171 | |||||||
Selling, general, and administrative expenses | 41 | -9 | 427 | — | 459 | |||||||
Research, development, and engineering expenses | — | — | 184 | — | 184 | |||||||
Acquisition and integration costs | — | — | 24 | — | 24 | |||||||
Restructuring and other charges, net | — | — | 27 | — | 27 | |||||||
| | | | | | | | | | | ||
Operating income (loss) | -41 | 9 | 509 | — | 477 | |||||||
Interest income | — | — | 5 | — | 5 | |||||||
Interest expense | — | -34 | -1 | — | -35 | |||||||
Other expense, net | — | — | -70 | — | -70 | |||||||
Equity in net income of subsidiaries | 511 | 523 | — | -1,034 | — | |||||||
Intercompany interest income (expense), net | 2 | 13 | -15 | — | — | |||||||
| | | | | | | | | | | ||
Income from continuing operations before income taxes | 472 | 511 | 428 | -1,034 | 377 | |||||||
Income tax benefit | — | — | 95 | — | 95 | |||||||
| | | | | | | | | | | ||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 472 | 511 | 523 | -1,034 | 472 | |||||||
Other comprehensive loss | -206 | -206 | -208 | 414 | -206 | |||||||
| | | | | | | | | | | ||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | $ | $ | $ | $ | |||||||
266 | 305 | 315 | -620 | 266 | ||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
Condensed Consolidating Statement of Operations (UNAUDITED) | ||||||||||||
For the Quarter Ended December 27, 2013 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Net sales | $— | $— | $ | $— | $ | |||||||
3,326 | 3,326 | |||||||||||
Cost of sales | — | — | 2,209 | — | 2,209 | |||||||
| | | | | | | | | | | ||
Gross margin | — | — | 1,117 | — | 1,117 | |||||||
Selling, general, and administrative expenses | 34 | 1 | 432 | — | 467 | |||||||
Research, development, and engineering expenses | — | — | 164 | — | 164 | |||||||
Restructuring and other charges, net | — | — | 7 | — | 7 | |||||||
| | | | | | | | | | | ||
Operating income (loss) | -34 | -1 | 514 | — | 479 | |||||||
Interest income | — | — | 5 | — | 5 | |||||||
Interest expense | — | -32 | -2 | — | -34 | |||||||
Other income (expense), net | 18 | -3 | 17 | — | 32 | |||||||
Equity in net income of subsidiaries | 371 | 392 | — | -763 | — | |||||||
Equity in net loss of subsidiaries of discontinued operations | -2 | -2 | — | 4 | — | |||||||
Intercompany interest income (expense), net | — | 15 | -15 | — | — | |||||||
| | | | | | | | | | | ||
Income from continuing operations before income taxes | 353 | 369 | 519 | -759 | 482 | |||||||
Income tax expense | — | — | -127 | — | -127 | |||||||
| | | | | | | | | | | ||
Income from continuing operations | 353 | 369 | 392 | -759 | 355 | |||||||
Loss from discontinued operations, net of income taxes | — | — | -2 | — | -2 | |||||||
| | | | | | | | | | | ||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 353 | 369 | 390 | -759 | 353 | |||||||
Other comprehensive income | 24 | 24 | 22 | -46 | 24 | |||||||
| | | | | | | | | | | ||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | $ | $ | $ | $ | |||||||
377 | 393 | 412 | -805 | 377 | ||||||||
Condensed Consolidating Balance Sheet (UNAUDITED) | ||||||||||||
As of December 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $— | $— | $ | $— | $ | |||||||
868 | 868 | |||||||||||
Accounts receivable, net | — | — | 2,349 | — | 2,349 | |||||||
Inventories | — | — | 1,942 | — | 1,942 | |||||||
Intercompany receivables | 27 | 110 | 37 | -174 | — | |||||||
Prepaid expenses and other current assets | 4 | 8 | 539 | — | 551 | |||||||
Deferred income taxes | — | — | 335 | — | 335 | |||||||
| | | | | | | | | | | ||
Total current assets | 31 | 118 | 6,070 | -174 | 6,045 | |||||||
Property, plant, and equipment, net | — | — | 3,118 | — | 3,118 | |||||||
Goodwill | — | — | 5,638 | — | 5,638 | |||||||
Intangible assets, net | — | — | 1,830 | — | 1,830 | |||||||
Deferred income taxes | — | — | 2,092 | — | 2,092 | |||||||
Investment in subsidiaries | 8,911 | 20,286 | — | -29,197 | — | |||||||
Intercompany loans receivable | 723 | 1,940 | 9,495 | -12,158 | — | |||||||
Receivable from Tyco International plc and Covidien plc | — | — | 956 | — | 956 | |||||||
Other assets | — | 35 | 439 | — | 474 | |||||||
| | | | | | | | | | | ||
Total Assets | $ | $ | $ | $ | $ | |||||||
9,665 | 22,379 | 29,638 | -41,529 | 20,153 | ||||||||
| | | | | | | | | | | ||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $— | $ | $ | $— | $ | |||||||
847 | 90 | 937 | ||||||||||
Accounts payable | 2 | — | 1,380 | — | 1,382 | |||||||
Accrued and other current liabilities | 146 | 40 | 1,250 | — | 1,436 | |||||||
Deferred revenue | — | — | 121 | — | 121 | |||||||
Intercompany payables | 147 | — | 27 | -174 | — | |||||||
| | | | | | | | | | | ||
Total current liabilities | 295 | 887 | 2,868 | -174 | 3,876 | |||||||
Long-term debt | — | 3,286 | — | — | 3,286 | |||||||
Intercompany loans payable | 200 | 9,295 | 2,663 | -12,158 | — | |||||||
Long-term pension and postretirement liabilities | — | — | 1,257 | — | 1,257 | |||||||
Deferred income taxes | — | — | 304 | — | 304 | |||||||
Income taxes | — | — | 1,915 | — | 1,915 | |||||||
Other liabilities | — | — | 345 | — | 345 | |||||||
| | | | | | | | | | | ||
Total Liabilities | 495 | 13,468 | 9,352 | -12,332 | 10,983 | |||||||
| | | | | | | | | | | ||
Total Equity | 9,170 | 8,911 | 20,286 | -29,197 | 9,170 | |||||||
| | | | | | | | | | | ||
Total Liabilities and Equity | $ | $ | $ | $ | $ | |||||||
9,665 | 22,379 | 29,638 | -41,529 | 20,153 | ||||||||
Condensed Consolidating Balance Sheet (UNAUDITED) | ||||||||||||
As of September 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $— | $ | $ | $— | $ | |||||||
1 | 2,456 | 2,457 | ||||||||||
Accounts receivable, net | — | — | 2,439 | — | 2,439 | |||||||
Inventories | — | — | 1,745 | — | 1,745 | |||||||
Intercompany receivables | 932 | 230 | 30 | -1,192 | — | |||||||
Prepaid expenses and other current assets | 6 | 3 | 558 | — | 567 | |||||||
Deferred income taxes | — | — | 336 | — | 336 | |||||||
| | | | | | | | | | | ||
Total current assets | 938 | 234 | 7,564 | -1,192 | 7,544 | |||||||
Property, plant, and equipment, net | — | — | 3,126 | — | 3,126 | |||||||
Goodwill | — | — | 4,595 | — | 4,595 | |||||||
Intangible assets, net | — | — | 1,329 | — | 1,329 | |||||||
Deferred income taxes | — | — | 2,058 | — | 2,058 | |||||||
Investment in subsidiaries | 8,602 | 19,966 | — | -28,568 | — | |||||||
Intercompany loans receivable | 20 | 2,160 | 9,883 | -12,063 | — | |||||||
Receivable from Tyco International plc and Covidien plc | — | — | 1,037 | — | 1,037 | |||||||
Other assets | — | 30 | 433 | — | 463 | |||||||
| | | | | | | | | | | ||
Total Assets | $ | $ | $ | $ | $ | |||||||
9,560 | 22,390 | 30,025 | -41,823 | 20,152 | ||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $— | $ | $ | $— | $ | |||||||
577 | 90 | 667 | ||||||||||
Accounts payable | 1 | — | 1,390 | — | 1,391 | |||||||
Accrued and other current liabilities | 282 | 50 | 1,385 | — | 1,717 | |||||||
Deferred revenue | — | — | 179 | — | 179 | |||||||
Intercompany payables | 260 | — | 932 | -1,192 | — | |||||||
| | | | | | | | | | | ||
Total current liabilities | 543 | 627 | 3,976 | -1,192 | 3,954 | |||||||
Long-term debt | — | 3,281 | — | — | 3,281 | |||||||
Intercompany loans payable | 4 | 9,880 | 2,179 | -12,063 | — | |||||||
Long-term pension and postretirement liabilities | — | — | 1,287 | — | 1,287 | |||||||
Deferred income taxes | — | — | 240 | — | 240 | |||||||
Income taxes | — | — | 2,045 | — | 2,045 | |||||||
Other liabilities | — | — | 332 | — | 332 | |||||||
| | | | | | | | | | | ||
Total Liabilities | 547 | 13,788 | 10,059 | -13,255 | 11,139 | |||||||
| | | | | | | | | | | ||
Total Equity | 9,013 | 8,602 | 19,966 | -28,568 | 9,013 | |||||||
| | | | | | | | | | | ||
Total Liabilities and Equity | $ | $ | $ | $ | $ | |||||||
9,560 | 22,390 | 30,025 | -41,823 | 20,152 | ||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
Condensed Consolidating Statement of Cash Flows (UNAUDITED) | ||||||||||||
For the Quarter Ended December 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net cash provided by (used in) operating activities | $ | $ | $ | $— | $ | |||||||
-38 | -26 | 359 | 295 | |||||||||
| | | | | | | | | | | ||
Cash Flows From Investing Activities: | ||||||||||||
Capital expenditures | — | — | -142 | — | -142 | |||||||
Proceeds from sale of property, plant, and equipment | — | — | 5 | — | 5 | |||||||
Acquisition of businesses, net of cash acquired | — | — | -1,511 | — | -1,511 | |||||||
Change in intercompany loans | — | -245 | — | 245 | — | |||||||
Other | — | — | -3 | — | -3 | |||||||
| | | | | | | | | | | ||
Net cash used in investing activities | — | -245 | -1,651 | 245 | -1,651 | |||||||
| | | | | | | | | | | ||
Cash Flows From Financing Activities: | ||||||||||||
Changes in parent company equity(1) | 28 | — | -28 | — | — | |||||||
Net increase in commercial paper | — | 270 | — | — | 270 | |||||||
Repayment of long-term debt | — | — | -223 | — | -223 | |||||||
Proceeds from exercise of share options | — | — | 16 | — | 16 | |||||||
Repurchase of common shares | -155 | — | — | — | -155 | |||||||
Payment of common share dividends to shareholders | -120 | — | 2 | — | -118 | |||||||
Loan activity with parent | 285 | — | -40 | -245 | — | |||||||
Other | — | — | 1 | — | 1 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) financing activities | 38 | 270 | -272 | -245 | -209 | |||||||
| | | | | | | | | | | ||
Effect of currency translation on cash | — | — | -24 | — | -24 | |||||||
Net decrease in cash and cash equivalents | — | -1 | -1,588 | — | -1,589 | |||||||
Cash and cash equivalents at beginning of period | — | 1 | 2,456 | — | 2,457 | |||||||
| | | | | | | | | | | ||
Cash and cash equivalents at end of period | $— | $— | $ | $— | $ | |||||||
868 | 868 | |||||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
-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 Quarter Ended December 27, 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(1) | $ | $ | $ | $ | $ | |||||||
-36 | 1,762 | 461 | -1,800 | 387 | ||||||||
Net cash used in discontinued operating activities | — | — | -2 | — | -2 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) operating activities | -36 | 1,762 | 459 | -1,800 | 385 | |||||||
| | | | | | | | | | | ||
Cash Flows From Investing Activities: | ||||||||||||
Capital expenditures | — | — | -133 | — | -133 | |||||||
Proceeds from sale of property, plant, and equipment | — | — | 12 | — | 12 | |||||||
Change in intercompany loans | — | -1,761 | — | 1,761 | — | |||||||
Other | — | — | -2 | — | -2 | |||||||
| | | | | | | | | | | ||
Net cash used in investing activities | — | -1,761 | -123 | 1,761 | -123 | |||||||
| | | | | | | | | | | ||
Cash Flows From Financing Activities: | ||||||||||||
Changes in parent company equity(2) | 19 | 2 | -21 | — | — | |||||||
Net decrease in commercial paper | — | -25 | — | — | -25 | |||||||
Proceeds from issuance of long-term debt | — | 323 | — | — | 323 | |||||||
Repayment of long-term debt | — | -303 | — | — | -303 | |||||||
Proceeds from exercise of share options | — | — | 57 | — | 57 | |||||||
Repurchase of common shares | — | — | -210 | — | -210 | |||||||
Payment of common share dividends to shareholders | -105 | — | 2 | — | -103 | |||||||
Intercompany distributions(1) | — | — | -1,800 | 1,800 | — | |||||||
Loan activity with parent | 122 | — | 1,639 | -1,761 | — | |||||||
Other | — | 2 | -5 | — | -3 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) continuing financing activities | 36 | -1 | -338 | 39 | -264 | |||||||
Net cash provided by discontinued financing activities | — | — | 2 | — | 2 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) financing activities | 36 | -1 | -336 | 39 | -262 | |||||||
| | | | | | | | | | | ||
Effect of currency translation on cash | — | — | -6 | — | -6 | |||||||
Net decrease in cash and cash equivalents | — | — | -6 | — | -6 | |||||||
Cash and cash equivalents at beginning of period | — | — | 1,403 | — | 1,403 | |||||||
| | | | | | | | | | | ||
Cash and cash equivalents at end of period | $— | $— | $ | $— | $ | |||||||
1,397 | 1,397 | |||||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
-1 | During the first quarter of fiscal 2014, other subsidiaries made distributions to TEGSA in the amount of $1,800 million. Cash flows are presented based upon the nature of the distribution. | |||||||||||
-2 | 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) | 3 Months Ended | ||||||||||||||
Dec. 26, 2014 | |||||||||||||||
Restructuring and Other Charges, Net | |||||||||||||||
Net restructuring charges by segment | |||||||||||||||
For the Quarters Ended | |||||||||||||||
December 26, | December 27, | ||||||||||||||
2014 | 2013 | ||||||||||||||
(in millions) | |||||||||||||||
Transportation Solutions | $ | $ | |||||||||||||
1 | 1 | ||||||||||||||
Industrial Solutions | 2 | 1 | |||||||||||||
Network Solutions | 1 | 5 | |||||||||||||
Consumer Solutions | 23 | — | |||||||||||||
| | | | | |||||||||||
Restructuring charges, net | $ | $ | |||||||||||||
27 | 7 | ||||||||||||||
| | | | | |||||||||||
| | | | | |||||||||||
Summary of activity in restructuring reserves | |||||||||||||||
Balance at | Charges | Changes in | Cash | Non-Cash | Currency | Balance at | |||||||||
September 26, | Estimate | Payments | Items | Translation | December 26, | ||||||||||
2014 | 2014 | ||||||||||||||
(in millions) | |||||||||||||||
Fiscal 2015 Actions: | |||||||||||||||
Employee severance | $— | $ | $— | $ | $— | $— | $ | ||||||||
11 | -3 | 8 | |||||||||||||
Property, plant, and equipment | — | 14 | — | — | -14 | — | — | ||||||||
| | | | | | | | | | | | | | | |
Total | — | 25 | — | -3 | -14 | — | 8 | ||||||||
| | | | | | | | | | | | | | | |
Fiscal 2014 Actions: | |||||||||||||||
Employee severance | 16 | — | — | -2 | — | — | 14 | ||||||||
Facility and other exit costs | 1 | — | — | — | — | — | 1 | ||||||||
| | | | | | | | | | | | | | | |
Total | 17 | — | — | -2 | — | — | 15 | ||||||||
| | | | | | | | | | | | | | | |
Pre-Fiscal 2014 Actions: | |||||||||||||||
Employee severance | 84 | 1 | -1 | -14 | — | -4 | 66 | ||||||||
Facility and other exit costs | 22 | 1 | — | -3 | — | — | 20 | ||||||||
Property, plant, and equipment | — | 1 | — | — | -1 | — | — | ||||||||
| | | | | | | | | | | | | | | |
Total | 106 | 3 | -1 | -17 | -1 | -4 | 86 | ||||||||
| | | | | | | | | | | | | | | |
Total Activity | $ | $ | $ | $ | $ | $ | $ | ||||||||
123 | 28 | -1 | -22 | -15 | -4 | 109 | |||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Restructuring reserves included on Condensed Consolidated Balance Sheets | |||||||||||||||
December 26, | September 26, | ||||||||||||||
2014 | 2014 | ||||||||||||||
(in millions) | |||||||||||||||
Accrued and other current liabilities | $ | $ | |||||||||||||
80 | 92 | ||||||||||||||
Other liabilities | 29 | 31 | |||||||||||||
| | | | | |||||||||||
Restructuring reserves | $ | $ | |||||||||||||
109 | 123 | ||||||||||||||
Acquisition_Tables
Acquisition (Tables) (Measurement Specialties) | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Measurement Specialties | |||||
Business acquisition information | |||||
Allocation of purchase price to the fair value of identifiable assets acquired and liabilities assumed | |||||
(in millions) | |||||
Cash and cash equivalents | $ | ||||
37 | |||||
Accounts receivable | 84 | ||||
Inventories | 111 | ||||
Other current assets | 18 | ||||
Property, plant, and equipment | 82 | ||||
Goodwill | 1,071 | ||||
Intangible assets | 561 | ||||
Other non-current assets | 9 | ||||
| | | |||
Total assets acquired | 1,973 | ||||
| | | |||
Current maturities of long-term debt | 20 | ||||
Accounts payable | 48 | ||||
Other current liabilities | 66 | ||||
Long-term debt | 203 | ||||
Deferred income taxes | 105 | ||||
Other non-current liabilities | 10 | ||||
| | | |||
Total liabilities assumed | 452 | ||||
| | | |||
Net assets acquired | 1,521 | ||||
Cash and cash equivalents acquired | -37 | ||||
| | | |||
Net cash paid | $ | ||||
1,484 | |||||
Intangible assets acquired | |||||
Amount | Weighted-Average | ||||
Amortization | |||||
Period | |||||
(in millions) | (in years) | ||||
Customer relationships | $ | 18 | |||
390 | |||||
Developed technology | 154 | 9 | |||
Trade names and trademarks | 5 | 1 | |||
Customer order backlog | 12 | <1 | |||
| | | | | |
Total | $ | 15 | |||
561 | |||||
| | | | | |
| | | | | |
Pro forma financial information | |||||
Pro Forma for | |||||
the Quarters Ended | |||||
December 26, | December 27, | ||||
2014 | 2013 | ||||
(in millions, except per share | |||||
data) | |||||
Net sales | $ | $ | |||
3,485 | 3,430 | ||||
Net income attributable to TE Connectivity Ltd. | 493 | 341 | |||
Diluted earnings per share attributable to TE Connectivity Ltd | $ | $ | |||
1.19 | 0.82 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Inventories. | |||||
Schedule of inventories | |||||
December 26, | September 26, | ||||
2014 | 2014 | ||||
(in millions) | |||||
Raw materials | $ | $ | |||
314 | 257 | ||||
Work in progress | 654 | 620 | |||
Finished goods | 974 | 868 | |||
| | | | | |
Inventories | $ | $ | |||
1,942 | 1,745 | ||||
| | | | | |
| | | | | |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||
Dec. 26, 2014 | |||||||||||
Goodwill | |||||||||||
Changes in the carrying amount of goodwill by segment | |||||||||||
Transportation | Industrial | Network | Consumer | Total | |||||||
Solutions | Solutions | Solutions | Solutions | ||||||||
(in millions) | |||||||||||
September 26, 2014(1) | $ | $ | $ | $ | $ | ||||||
834 | 2,165 | 970 | 626 | 4,595 | |||||||
Acquisitions | 1,072 | 22 | — | — | 1,094 | ||||||
Currency translation | -9 | -24 | -11 | -7 | -51 | ||||||
| | | | | | | | | | | |
December 26, 2014(1) | $ | $ | $ | $ | $ | ||||||
1,897 | 2,163 | 959 | 619 | 5,638 | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | At December 26, 2014 and September 26, 2014, 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) | 3 Months Ended | ||||||||||||
Dec. 26, 2014 | |||||||||||||
Intangible Assets, Net | |||||||||||||
Schedule of finite-lived intangible assets | |||||||||||||
December 26, 2014 | September 26, 2014 | ||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||
Amount | Amount | Amount | Amount | ||||||||||
(in millions) | |||||||||||||
Intellectual property | $ | $ | $ | $ | $ | $ | |||||||
1,377 | -579 | 798 | 1,216 | -559 | 657 | ||||||||
Customer relationships | 1,175 | -169 | 1,006 | 784 | -142 | 642 | |||||||
Other | 41 | -15 | 26 | 44 | -14 | 30 | |||||||
| | | | | | | | | | | | | |
Total | $ | $ | $ | $ | $ | $ | |||||||
2,593 | -763 | 1,830 | 2,044 | -715 | 1,329 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Schedule of finite-lived intangible assets, future amortization expense | |||||||||||||
(in millions) | |||||||||||||
Remainder of fiscal 2015 | $ | ||||||||||||
134 | |||||||||||||
Fiscal 2016 | 169 | ||||||||||||
Fiscal 2017 | 165 | ||||||||||||
Fiscal 2018 | 164 | ||||||||||||
Fiscal 2019 | 160 | ||||||||||||
Fiscal 2020 | 158 | ||||||||||||
Thereafter | 880 | ||||||||||||
| | | |||||||||||
Total | $ | ||||||||||||
1,830 | |||||||||||||
| | | |||||||||||
| | | |||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 3 Months Ended | ||||||||
Dec. 26, 2014 | |||||||||
Retirement Plans | |||||||||
Net periodic pension benefit cost | |||||||||
U.S. Plans | Non-U.S. Plans | ||||||||
For the Quarters Ended | For the Quarters Ended | ||||||||
December 26, | December 27, | December 26, | December 27, | ||||||
2014 | 2013 | 2014 | 2013 | ||||||
(in millions) | |||||||||
Service cost | $ | $ | $ | $ | |||||
2 | 2 | 13 | 13 | ||||||
Interest cost | 12 | 13 | 16 | 18 | |||||
Expected return on plan assets | -17 | -16 | -20 | -18 | |||||
Amortization of net actuarial loss | 7 | 6 | 9 | 6 | |||||
Amortization of prior service credit | — | — | -1 | -1 | |||||
| | | | | | | | | |
Net periodic pension benefit cost | $ | $ | $ | $ | |||||
4 | 5 | 17 | 18 | ||||||
| | | | | | | | | |
| | | | | | | | | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Earnings Per Share | |||||
Schedule of weighted-average shares outstanding, basic and diluted | |||||
For the Quarters Ended | |||||
December 26, | December 27, | ||||
2014 | 2013 | ||||
(in millions) | |||||
Basic | 407 | 411 | |||
Dilutive impact of share-based compensation arrangements | 6 | 7 | |||
| | | | | |
Diluted | 413 | 418 | |||
| | | | | |
| | | | | |
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Equity | |||||
Schedule of common shares repurchased | |||||
For the Quarters Ended | |||||
December 26, | December 27, | ||||
2014 | 2013 | ||||
(in millions) | |||||
Number of common shares repurchased | 2 | 4 | |||
Amount repurchased | $ | $ | |||
141 | 212 | ||||
Share_Plans_Tables
Share Plans (Tables) | 3 Months Ended | ||||
Dec. 26, 2014 | |||||
Share Plans | |||||
Summary of equity award activity | |||||
Shares | Weighted- | ||||
Average | |||||
Grant-Date | |||||
Fair Value | |||||
(in millions) | |||||
Share options | 1.7 | $ | |||
18.82 | |||||
Restricted share awards | 1.1 | 61.50 | |||
Performance share awards | 0.2 | 61.50 | |||
Weighted-average assumptions | |||||
Expected share price volatility | 36% | ||||
Risk free interest rate | 1.97% | ||||
Expected annual dividend per share | $ | ||||
1.16 | |||||
Expected life of options (in years) | 6.0 | ||||
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | ||||||||
Dec. 26, 2014 | |||||||||
Segment Data | |||||||||
Net sales and operating income by business segment | |||||||||
Net Sales(1) | Operating Income | ||||||||
For the Quarters Ended | For the Quarters Ended | ||||||||
December 26, | December 27, | December 26, | December 27, | ||||||
2014 | 2013 | 2014 | 2013 | ||||||
(in millions) | |||||||||
Transportation Solutions | $ | $ | $ | $ | |||||
1,612 | 1,440 | 303 | 296 | ||||||
Industrial Solutions | 784 | 763 | 89 | 99 | |||||
Network Solutions | 704 | 713 | 61 | 46 | |||||
Consumer Solutions | 366 | 410 | 24 | 38 | |||||
| | | | | | | | | |
Total | $ | $ | $ | $ | |||||
3,466 | 3,326 | 477 | 479 | ||||||
| | | | | | | | | |
| | | | | | | | | |
-1 | Intersegment sales were not material and were recorded at selling prices that approximated market prices. | ||||||||
Subsequent_Event_Tables
Subsequent Event (Tables) (Broadband Network Solutions) | 3 Months Ended | ||
Dec. 26, 2014 | |||
Broadband Network Solutions | |||
Subsequent Event | |||
Pre-tax loss on sale and income tax (expense) benefit from discontinued operations and balance sheet information for assets and liabilities held for sale | |||
December 26, | |||
2014 | |||
(in millions) | |||
Accounts receivable, net | $ | ||
313 | |||
Inventories | 243 | ||
Property, plant, and equipment, net | 199 | ||
Goodwill | 767 | ||
Intangible assets, net | 233 | ||
Other assets | 54 | ||
| | | |
Total assets | $ | ||
1,809 | |||
| | | |
| | | |
Current maturities of long-term debt | $ | ||
90 | |||
Accounts payable | 130 | ||
Other liabilities | 131 | ||
| | | |
Total liabilities | $ | ||
351 | |||
| | | |
| | | |
Tyco_Electronics_Group_SA_Tabl
Tyco Electronics Group S.A. (Tables) | 3 Months Ended | |||||||||||
Dec. 26, 2014 | ||||||||||||
Tyco Electronics Group S.A. | ||||||||||||
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (UNAUDITED) | |||||||||||
For the Quarter Ended December 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Net sales | $— | $— | $ | $— | $ | |||||||
3,466 | 3,466 | |||||||||||
Cost of sales | — | — | 2,295 | — | 2,295 | |||||||
| | | | | | | | | | | ||
Gross margin | — | — | 1,171 | — | 1,171 | |||||||
Selling, general, and administrative expenses | 41 | -9 | 427 | — | 459 | |||||||
Research, development, and engineering expenses | — | — | 184 | — | 184 | |||||||
Acquisition and integration costs | — | — | 24 | — | 24 | |||||||
Restructuring and other charges, net | — | — | 27 | — | 27 | |||||||
| | | | | | | | | | | ||
Operating income (loss) | -41 | 9 | 509 | — | 477 | |||||||
Interest income | — | — | 5 | — | 5 | |||||||
Interest expense | — | -34 | -1 | — | -35 | |||||||
Other expense, net | — | — | -70 | — | -70 | |||||||
Equity in net income of subsidiaries | 511 | 523 | — | -1,034 | — | |||||||
Intercompany interest income (expense), net | 2 | 13 | -15 | — | — | |||||||
| | | | | | | | | | | ||
Income from continuing operations before income taxes | 472 | 511 | 428 | -1,034 | 377 | |||||||
Income tax benefit | — | — | 95 | — | 95 | |||||||
| | | | | | | | | | | ||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 472 | 511 | 523 | -1,034 | 472 | |||||||
Other comprehensive loss | -206 | -206 | -208 | 414 | -206 | |||||||
| | | | | | | | | | | ||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | $ | $ | $ | $ | |||||||
266 | 305 | 315 | -620 | 266 | ||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
For the Quarter Ended December 27, 2013 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Net sales | $— | $— | $ | $— | $ | |||||||
3,326 | 3,326 | |||||||||||
Cost of sales | — | — | 2,209 | — | 2,209 | |||||||
| | | | | | | | | | | ||
Gross margin | — | — | 1,117 | — | 1,117 | |||||||
Selling, general, and administrative expenses | 34 | 1 | 432 | — | 467 | |||||||
Research, development, and engineering expenses | — | — | 164 | — | 164 | |||||||
Restructuring and other charges, net | — | — | 7 | — | 7 | |||||||
| | | | | | | | | | | ||
Operating income (loss) | -34 | -1 | 514 | — | 479 | |||||||
Interest income | — | — | 5 | — | 5 | |||||||
Interest expense | — | -32 | -2 | — | -34 | |||||||
Other income (expense), net | 18 | -3 | 17 | — | 32 | |||||||
Equity in net income of subsidiaries | 371 | 392 | — | -763 | — | |||||||
Equity in net loss of subsidiaries of discontinued operations | -2 | -2 | — | 4 | — | |||||||
Intercompany interest income (expense), net | — | 15 | -15 | — | — | |||||||
| | | | | | | | | | | ||
Income from continuing operations before income taxes | 353 | 369 | 519 | -759 | 482 | |||||||
Income tax expense | — | — | -127 | — | -127 | |||||||
| | | | | | | | | | | ||
Income from continuing operations | 353 | 369 | 392 | -759 | 355 | |||||||
Loss from discontinued operations, net of income taxes | — | — | -2 | — | -2 | |||||||
| | | | | | | | | | | ||
Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | 353 | 369 | 390 | -759 | 353 | |||||||
Other comprehensive income | 24 | 24 | 22 | -46 | 24 | |||||||
| | | | | | | | | | | ||
Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries | $ | $ | $ | $ | $ | |||||||
377 | 393 | 412 | -805 | 377 | ||||||||
Condensed Consolidating Balance Sheet | ||||||||||||
Condensed Consolidating Balance Sheet (UNAUDITED) | ||||||||||||
As of December 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $— | $— | $ | $— | $ | |||||||
868 | 868 | |||||||||||
Accounts receivable, net | — | — | 2,349 | — | 2,349 | |||||||
Inventories | — | — | 1,942 | — | 1,942 | |||||||
Intercompany receivables | 27 | 110 | 37 | -174 | — | |||||||
Prepaid expenses and other current assets | 4 | 8 | 539 | — | 551 | |||||||
Deferred income taxes | — | — | 335 | — | 335 | |||||||
| | | | | | | | | | | ||
Total current assets | 31 | 118 | 6,070 | -174 | 6,045 | |||||||
Property, plant, and equipment, net | — | — | 3,118 | — | 3,118 | |||||||
Goodwill | — | — | 5,638 | — | 5,638 | |||||||
Intangible assets, net | — | — | 1,830 | — | 1,830 | |||||||
Deferred income taxes | — | — | 2,092 | — | 2,092 | |||||||
Investment in subsidiaries | 8,911 | 20,286 | — | -29,197 | — | |||||||
Intercompany loans receivable | 723 | 1,940 | 9,495 | -12,158 | — | |||||||
Receivable from Tyco International plc and Covidien plc | — | — | 956 | — | 956 | |||||||
Other assets | — | 35 | 439 | — | 474 | |||||||
| | | | | | | | | | | ||
Total Assets | $ | $ | $ | $ | $ | |||||||
9,665 | 22,379 | 29,638 | -41,529 | 20,153 | ||||||||
| | | | | | | | | | | ||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $— | $ | $ | $— | $ | |||||||
847 | 90 | 937 | ||||||||||
Accounts payable | 2 | — | 1,380 | — | 1,382 | |||||||
Accrued and other current liabilities | 146 | 40 | 1,250 | — | 1,436 | |||||||
Deferred revenue | — | — | 121 | — | 121 | |||||||
Intercompany payables | 147 | — | 27 | -174 | — | |||||||
| | | | | | | | | | | ||
Total current liabilities | 295 | 887 | 2,868 | -174 | 3,876 | |||||||
Long-term debt | — | 3,286 | — | — | 3,286 | |||||||
Intercompany loans payable | 200 | 9,295 | 2,663 | -12,158 | — | |||||||
Long-term pension and postretirement liabilities | — | — | 1,257 | — | 1,257 | |||||||
Deferred income taxes | — | — | 304 | — | 304 | |||||||
Income taxes | — | — | 1,915 | — | 1,915 | |||||||
Other liabilities | — | — | 345 | — | 345 | |||||||
| | | | | | | | | | | ||
Total Liabilities | 495 | 13,468 | 9,352 | -12,332 | 10,983 | |||||||
| | | | | | | | | | | ||
Total Equity | 9,170 | 8,911 | 20,286 | -29,197 | 9,170 | |||||||
| | | | | | | | | | | ||
Total Liabilities and Equity | $ | $ | $ | $ | $ | |||||||
9,665 | 22,379 | 29,638 | -41,529 | 20,153 | ||||||||
As of September 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $— | $ | $ | $— | $ | |||||||
1 | 2,456 | 2,457 | ||||||||||
Accounts receivable, net | — | — | 2,439 | — | 2,439 | |||||||
Inventories | — | — | 1,745 | — | 1,745 | |||||||
Intercompany receivables | 932 | 230 | 30 | -1,192 | — | |||||||
Prepaid expenses and other current assets | 6 | 3 | 558 | — | 567 | |||||||
Deferred income taxes | — | — | 336 | — | 336 | |||||||
| | | | | | | | | | | ||
Total current assets | 938 | 234 | 7,564 | -1,192 | 7,544 | |||||||
Property, plant, and equipment, net | — | — | 3,126 | — | 3,126 | |||||||
Goodwill | — | — | 4,595 | — | 4,595 | |||||||
Intangible assets, net | — | — | 1,329 | — | 1,329 | |||||||
Deferred income taxes | — | — | 2,058 | — | 2,058 | |||||||
Investment in subsidiaries | 8,602 | 19,966 | — | -28,568 | — | |||||||
Intercompany loans receivable | 20 | 2,160 | 9,883 | -12,063 | — | |||||||
Receivable from Tyco International plc and Covidien plc | — | — | 1,037 | — | 1,037 | |||||||
Other assets | — | 30 | 433 | — | 463 | |||||||
| | | | | | | | | | | ||
Total Assets | $ | $ | $ | $ | $ | |||||||
9,560 | 22,390 | 30,025 | -41,823 | 20,152 | ||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $— | $ | $ | $— | $ | |||||||
577 | 90 | 667 | ||||||||||
Accounts payable | 1 | — | 1,390 | — | 1,391 | |||||||
Accrued and other current liabilities | 282 | 50 | 1,385 | — | 1,717 | |||||||
Deferred revenue | — | — | 179 | — | 179 | |||||||
Intercompany payables | 260 | — | 932 | -1,192 | — | |||||||
| | | | | | | | | | | ||
Total current liabilities | 543 | 627 | 3,976 | -1,192 | 3,954 | |||||||
Long-term debt | — | 3,281 | — | — | 3,281 | |||||||
Intercompany loans payable | 4 | 9,880 | 2,179 | -12,063 | — | |||||||
Long-term pension and postretirement liabilities | — | — | 1,287 | — | 1,287 | |||||||
Deferred income taxes | — | — | 240 | — | 240 | |||||||
Income taxes | — | — | 2,045 | — | 2,045 | |||||||
Other liabilities | — | — | 332 | — | 332 | |||||||
| | | | | | | | | | | ||
Total Liabilities | 547 | 13,788 | 10,059 | -13,255 | 11,139 | |||||||
| | | | | | | | | | | ||
Total Equity | 9,013 | 8,602 | 19,966 | -28,568 | 9,013 | |||||||
| | | | | | | | | | | ||
Total Liabilities and Equity | $ | $ | $ | $ | $ | |||||||
9,560 | 22,390 | 30,025 | -41,823 | 20,152 | ||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
Condensed Consolidating Statement of Cash Flows | ||||||||||||
Condensed Consolidating Statement of Cash Flows (UNAUDITED) | ||||||||||||
For the Quarter Ended December 26, 2014 | ||||||||||||
TE | TEGSA | Other | Consolidating | Total | ||||||||
Connectivity | Subsidiaries | Adjustments | ||||||||||
Ltd. | ||||||||||||
(in millions) | ||||||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net cash provided by (used in) operating activities | $ | $ | $ | $— | $ | |||||||
-38 | -26 | 359 | 295 | |||||||||
| | | | | | | | | | | ||
Cash Flows From Investing Activities: | ||||||||||||
Capital expenditures | — | — | -142 | — | -142 | |||||||
Proceeds from sale of property, plant, and equipment | — | — | 5 | — | 5 | |||||||
Acquisition of businesses, net of cash acquired | — | — | -1,511 | — | -1,511 | |||||||
Change in intercompany loans | — | -245 | — | 245 | — | |||||||
Other | — | — | -3 | — | -3 | |||||||
| | | | | | | | | | | ||
Net cash used in investing activities | — | -245 | -1,651 | 245 | -1,651 | |||||||
| | | | | | | | | | | ||
Cash Flows From Financing Activities: | ||||||||||||
Changes in parent company equity(1) | 28 | — | -28 | — | — | |||||||
Net increase in commercial paper | — | 270 | — | — | 270 | |||||||
Repayment of long-term debt | — | — | -223 | — | -223 | |||||||
Proceeds from exercise of share options | — | — | 16 | — | 16 | |||||||
Repurchase of common shares | -155 | — | — | — | -155 | |||||||
Payment of common share dividends to shareholders | -120 | — | 2 | — | -118 | |||||||
Loan activity with parent | 285 | — | -40 | -245 | — | |||||||
Other | — | — | 1 | — | 1 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) financing activities | 38 | 270 | -272 | -245 | -209 | |||||||
| | | | | | | | | | | ||
Effect of currency translation on cash | — | — | -24 | — | -24 | |||||||
Net decrease in cash and cash equivalents | — | -1 | -1,588 | — | -1,589 | |||||||
Cash and cash equivalents at beginning of period | — | 1 | 2,456 | — | 2,457 | |||||||
| | | | | | | | | | | ||
Cash and cash equivalents at end of period | $— | $— | $ | $— | $ | |||||||
868 | 868 | |||||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
-1 | Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. | |||||||||||
For the Quarter Ended December 27, 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(1) | $ | $ | $ | $ | $ | |||||||
-36 | 1,762 | 461 | -1,800 | 387 | ||||||||
Net cash used in discontinued operating activities | — | — | -2 | — | -2 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) operating activities | -36 | 1,762 | 459 | -1,800 | 385 | |||||||
| | | | | | | | | | | ||
Cash Flows From Investing Activities: | ||||||||||||
Capital expenditures | — | — | -133 | — | -133 | |||||||
Proceeds from sale of property, plant, and equipment | — | — | 12 | — | 12 | |||||||
Change in intercompany loans | — | -1,761 | — | 1,761 | — | |||||||
Other | — | — | -2 | — | -2 | |||||||
| | | | | | | | | | | ||
Net cash used in investing activities | — | -1,761 | -123 | 1,761 | -123 | |||||||
| | | | | | | | | | | ||
Cash Flows From Financing Activities: | ||||||||||||
Changes in parent company equity(2) | 19 | 2 | -21 | — | — | |||||||
Net decrease in commercial paper | — | -25 | — | — | -25 | |||||||
Proceeds from issuance of long-term debt | — | 323 | — | — | 323 | |||||||
Repayment of long-term debt | — | -303 | — | — | -303 | |||||||
Proceeds from exercise of share options | — | — | 57 | — | 57 | |||||||
Repurchase of common shares | — | — | -210 | — | -210 | |||||||
Payment of common share dividends to shareholders | -105 | — | 2 | — | -103 | |||||||
Intercompany distributions(1) | — | — | -1,800 | 1,800 | — | |||||||
Loan activity with parent | 122 | — | 1,639 | -1,761 | — | |||||||
Other | — | 2 | -5 | — | -3 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) continuing financing activities | 36 | -1 | -338 | 39 | -264 | |||||||
Net cash provided by discontinued financing activities | — | — | 2 | — | 2 | |||||||
| | | | | | | | | | | ||
Net cash provided by (used in) financing activities | 36 | -1 | -336 | 39 | -262 | |||||||
| | | | | | | | | | | ||
Effect of currency translation on cash | — | — | -6 | — | -6 | |||||||
Net decrease in cash and cash equivalents | — | — | -6 | — | -6 | |||||||
Cash and cash equivalents at beginning of period | — | — | 1,403 | — | 1,403 | |||||||
| | | | | | | | | | | ||
Cash and cash equivalents at end of period | $— | $— | $ | $— | $ | |||||||
1,397 | 1,397 | |||||||||||
| | | | | | | | | | | ||
| | | | | | | | | | | ||
-1 | During the first quarter of fiscal 2014, other subsidiaries made distributions to TEGSA in the amount of $1,800 million. Cash flows are presented based upon the nature of the distribution. | |||||||||||
-2 | 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 | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Restructuring and other charges: | ||
Restructuring charges, net | $27 | $7 |
Transportation Solutions | ||
Restructuring and other charges: | ||
Restructuring charges, net | 1 | 1 |
Industrial Solutions | ||
Restructuring and other charges: | ||
Restructuring charges, net | 2 | 1 |
Network Solutions | ||
Restructuring and other charges: | ||
Restructuring charges, net | 1 | 5 |
Consumer Solutions | ||
Restructuring and other charges: | ||
Restructuring charges, net | $23 |
Restructuring_and_Other_Charge3
Restructuring and Other Charges, Net (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 |
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | $123 | |
Charges | 28 | |
Changes in Estimate | -1 | |
Cash Payments | -22 | |
Non-Cash Items | -15 | |
Currency Translation and Other | -4 | |
Restructuring reserve at the end of the period | 109 | |
Fiscal 2015 Actions | ||
Restructuring reserve | ||
Charges | 25 | |
Cash Payments | -3 | |
Non-Cash Items | -14 | |
Restructuring reserve at the end of the period | 8 | |
Fiscal 2014 Actions | ||
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | 17 | |
Cash Payments | -2 | |
Restructuring reserve at the end of the period | 15 | |
Pre-Fiscal 2014 Actions | ||
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | 106 | |
Charges | 3 | |
Changes in Estimate | -1 | |
Cash Payments | -17 | |
Non-Cash Items | -1 | |
Currency Translation and Other | -4 | |
Restructuring reserve at the end of the period | 86 | |
Employee severance | Fiscal 2015 Actions | ||
Restructuring reserve | ||
Charges | 11 | |
Cash Payments | -3 | |
Restructuring reserve at the end of the period | 8 | |
Employee severance | Fiscal 2014 Actions | ||
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | 16 | |
Cash Payments | -2 | |
Restructuring reserve at the end of the period | 14 | |
Employee severance | Pre-Fiscal 2014 Actions | ||
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | 84 | |
Charges | 1 | |
Changes in Estimate | -1 | |
Cash Payments | -14 | |
Currency Translation and Other | -4 | |
Restructuring reserve at the end of the period | 66 | |
Facility and other exit costs | Fiscal 2014 Actions | ||
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | 1 | |
Restructuring reserve at the end of the period | 1 | 1 |
Facility and other exit costs | Pre-Fiscal 2014 Actions | ||
Restructuring reserve | ||
Restructuring reserve at the beginning of the period | 22 | |
Charges | 1 | |
Cash Payments | -3 | |
Restructuring reserve at the end of the period | 20 | |
Property, plant, and equipment | Fiscal 2015 Actions | ||
Restructuring reserve | ||
Charges | 14 | |
Non-Cash Items | -14 | |
Property, plant, and equipment | Pre-Fiscal 2014 Actions | ||
Restructuring reserve | ||
Charges | 1 | |
Non-Cash Items | ($1) |
Restructuring_and_Other_Charge4
Restructuring and Other Charges, Net (Details 3) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Sep. 26, 2014 |
Restructuring Charges | |||
Charges Incurred | $27 | $7 | |
Accrued and other current liabilities | 80 | 92 | |
Other liabilities | 29 | 31 | |
Restructuring reserves | 109 | 123 | |
Transportation Solutions | |||
Restructuring Charges | |||
Charges Incurred | 1 | 1 | |
Industrial Solutions | |||
Restructuring Charges | |||
Charges Incurred | 2 | 1 | |
Network Solutions | |||
Restructuring Charges | |||
Charges Incurred | 1 | 5 | |
Consumer Solutions | |||
Restructuring Charges | |||
Charges Incurred | 23 | ||
Fiscal 2015 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 27 | ||
Charges Incurred | 25 | ||
Restructuring reserves | 8 | ||
Fiscal 2014 Actions | |||
Restructuring Charges | |||
Charges Incurred | 0 | 3 | |
Restructuring reserves | 15 | 17 | |
Pre-Fiscal 2014 Actions | |||
Restructuring Charges | |||
Charges Incurred | 2 | 4 | |
Restructuring reserves | 86 | 106 | |
Employee severance | Fiscal 2015 Actions | |||
Restructuring Charges | |||
Restructuring reserves | 8 | ||
Employee severance | Fiscal 2014 Actions | |||
Restructuring Charges | |||
Restructuring reserves | 14 | 16 | |
Employee severance | Pre-Fiscal 2014 Actions | |||
Restructuring Charges | |||
Restructuring reserves | 66 | 84 | |
Facility and other exit costs | Fiscal 2014 Actions | |||
Restructuring Charges | |||
Restructuring reserves | 1 | 1 | |
Facility and other exit costs | Pre-Fiscal 2014 Actions | |||
Restructuring Charges | |||
Restructuring reserves | $20 | $22 |
Acquisition_Details
Acquisition (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Dec. 26, 2014 | Dec. 27, 2013 | Oct. 09, 2014 | Sep. 26, 2014 | |
Allocation of the purchase price | ||||
Goodwill | $5,638,000,000 | $4,595,000,000 | ||
Net cash paid | 1,511,000,000 | |||
Net sales | 3,466,000,000 | 3,326,000,000 | ||
Operating income (loss) | 477,000,000 | 479,000,000 | ||
Restructuring charges, net | 27,000,000 | 7,000,000 | ||
Measurement Specialties | ||||
Acquisition | ||||
Percentage of voting interest acquired | 100.00% | |||
Total transaction value | 1,700,000,000 | |||
Per share value of the purchase (in dollars per share) | $86 | |||
Repayment of debt and accrued interest | 225,000,000 | |||
Allocation of the purchase price | ||||
Cash and cash equivalents | 37,000,000 | |||
Trade accounts receivable | 84,000,000 | |||
Inventories | 111,000,000 | |||
Other current assets | 18,000,000 | |||
Property, plant, and equipment | 82,000,000 | |||
Goodwill | 1,071,000,000 | |||
Intangible assets | 561,000,000 | |||
Other non-current assets | 9,000,000 | |||
Total assets acquired | 1,973,000,000 | |||
Current maturities of long-term debt | 20,000,000 | |||
Trade accounts payable | 48,000,000 | |||
Other current liabilities | 66,000,000 | |||
Long-term Debt | 203,000,000 | |||
Deferred income taxes | 105,000,000 | |||
Other non-current liabilities | 10,000,000 | |||
Total liabilities assumed | 452,000,000 | |||
Net assets acquired | 1,521,000,000 | |||
Cash and cash equivalents acquired | -37,000,000 | |||
Net cash paid | 1,484,000,000 | |||
Goodwill deductible from prior acquisitions | 23,000,000 | |||
Net sales | 125,000,000 | |||
Operating income (loss) | -28,000,000 | |||
Acquisition costs | 13,000,000 | |||
Integration costs | 2,000,000 | |||
Amortization of fair value adjustments to inventories and customer order backlog | 26,000,000 | |||
Pro forma financial information | ||||
Net sales | 3,485,000,000 | 3,430,000,000 | ||
Net income attributable to TE Connectivity Ltd. | 493,000,000 | 341,000,000 | ||
Diluted earnings per common share attributable to TE Connectivity Ltd | $1.19 | $0.82 | ||
Acquisition costs | 16,000,000 | |||
Fair value adjustment to acquisition-date inventories | 11,000,000 | -11,000,000 | ||
Adjustments to income tax expense based on changes in our global tax position | 8,000,000 | -1,000,000 | ||
Fair value adjustments related to acquired customer order backlog | 5,000,000 | -6,000,000 | ||
Interest expense based on changes in capital structure | -1,000,000 | -3,000,000 | ||
Share-based compensation expense | 15,000,000 | |||
Amortization of the fair value of acquired intangible assets | $1,000,000 |
Acquisitions_Details_2
Acquisitions (Details 2) (Measurement Specialties, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Oct. 09, 2014 | Oct. 09, 2014 |
Intangible assets acquired | ||
Intangible assets acquired, fair value amount | $561 | $561 |
Intangible assets acquired, Weighted-Average Amortization Period | 15 years | |
Customer relationships | ||
Intangible assets acquired | ||
Intangible assets acquired, fair value amount | 390 | 390 |
Intangible assets acquired, Weighted-Average Amortization Period | 18 years | |
Developed technology | ||
Intangible assets acquired | ||
Intangible assets acquired, fair value amount | 154 | 154 |
Intangible assets acquired, Weighted-Average Amortization Period | 9 years | |
Trade names and trademarks | ||
Intangible assets acquired | ||
Intangible assets acquired, fair value amount | 5 | 5 |
Intangible assets acquired, Weighted-Average Amortization Period | 1 year | |
Customer order backlog | ||
Intangible assets acquired | ||
Intangible assets acquired, fair value amount | $12 | $12 |
Customer order backlog | Maximum | ||
Intangible assets acquired | ||
Intangible assets acquired, Weighted-Average Amortization Period | 1 year |
Inventories_Details
Inventories (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials | $314 | $257 |
Work in progress | 654 | 620 |
Finished goods | 974 | 868 |
Inventories | $1,942 | $1,745 |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Oct. 09, 2014 | Sep. 26, 2014 |
Goodwill: | |||
Goodwill, beginning balance | $4,595 | ||
Acquisitions | 1,094 | ||
Currency translation | -51 | ||
Goodwill, ending balance | 5,638 | ||
Measurement Specialties | |||
Goodwill: | |||
Goodwill, beginning balance | 1,071 | ||
Goodwill, ending balance | 1,071 | ||
Transportation Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 834 | ||
Acquisitions | 1,072 | ||
Currency translation | -9 | ||
Goodwill, ending balance | 1,897 | ||
Accumulated impairment losses | 2,191 | 2,191 | |
Transportation Solutions | Measurement Specialties | |||
Goodwill: | |||
Acquisitions | 1,071 | ||
Industrial Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 2,165 | ||
Acquisitions | 22 | ||
Currency translation | -24 | ||
Goodwill, ending balance | 2,163 | ||
Accumulated impairment losses | 669 | 669 | |
Network Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 970 | ||
Currency translation | -11 | ||
Goodwill, ending balance | 959 | ||
Accumulated impairment losses | 1,236 | 1,236 | |
Consumer Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 626 | ||
Currency translation | -7 | ||
Goodwill, ending balance | 619 | ||
Accumulated impairment losses | $579 | $579 |
Intangible_Assets_Net_Details
Intangible Assets, Net (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Oct. 09, 2014 | Sep. 26, 2014 |
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | $2,593 | $2,044 | ||
Accumulated Amortization | -763 | -715 | ||
Net Carrying Amount | 1,830 | 1,329 | ||
Finite-lived intangible assets, amortization expense | 50 | 28 | ||
Aggregate amortization expense on intangible assets | ||||
Remainder of fiscal 2015 | 134 | |||
Fiscal 2016 | 169 | |||
Fiscal 2017 | 165 | |||
Fiscal 2018 | 164 | |||
Fiscal 2019 | 160 | |||
Fiscal 2020 | 158 | |||
Thereafter | 880 | |||
Intellectual property | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 1,377 | 1,216 | ||
Accumulated Amortization | -579 | -559 | ||
Net Carrying Amount | 798 | 657 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 1,175 | 784 | ||
Accumulated Amortization | -169 | -142 | ||
Net Carrying Amount | 1,006 | 642 | ||
Other. | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 41 | 44 | ||
Accumulated Amortization | -15 | -14 | ||
Net Carrying Amount | 26 | 30 | ||
Measurement Specialties | ||||
Finite-Lived Intangible Assets | ||||
Finite-lived intangible assets acquired | $561 |
Debt_Details
Debt (Details) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 |
In Millions, unless otherwise specified | ||
Current maturities of long-term debt: | ||
Current maturities of long-term debt | $937 | $667 |
Debt | ||
Ownership percentage in TEGSA | 100.00% | |
Fair value of debt | 4,495 | 4,214 |
Commercial paper | ||
Current maturities of long-term debt: | ||
Current maturities of long-term debt | $597 | $327 |
Debt | ||
Debt instrument, weighted-average interest rate at period end (as a percent) | 0.43% | 0.30% |
Guarantees_Details
Guarantees (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 |
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% | |
Accrued warranty claims | $31 | $31 |
Tax Sharing Agreement | ||
Guarantee Obligations: | ||
Guarantee obligations, current carrying value | 21 | 21 |
Outstanding Letters of Credit, Letters of Guarantee, and Surety Bonds | ||
Guarantee Obligations: | ||
Guarantor obligations, maximum exposure | $356 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Dec. 26, 2014 | Nov. 30, 2014 | Sep. 26, 2014 | |
Loss Contingencies | |||
Liabilities sharing percent, entity | 31.00% | ||
Liabilities sharing percent, Tyco International | 27.00% | ||
Liabilities sharing percent, Covidien | 42.00% | ||
Income tax benefit associated with settlement of certain U.S. tax matters | $189,000,000 | ||
Other nonoperating expense, settlement of certain U.S. tax matters | 83,000,000 | ||
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 cash payments made (received) related to pre-separation tax matters | 4,000,000 | ||
Expected net cash payments (receipts) next twelve months attributable to preseparation tax matters. | 50,000,000 | ||
Liabilities related to the audits of Tyco International and our income tax returns | 55,000,000 | 51,000,000 | |
Environmental matters | |||
Loss Contingencies | |||
Loss contingency, range of possible loss, minimum | 17,000,000 | ||
Loss contingency, range of possible loss, maximum | 40,000,000 | ||
Loss contingency, estimate of probable loss | 21,000,000 | ||
Com-Net | |||
Loss Contingencies | |||
Loss contingency, range of possible loss, maximum | 80,000,000 | ||
Loss Contingency, purchase price plus interest and costs | $135,000,000 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Sep. 26, 2014 |
Net investment hedges | ||
Financial Instruments | ||
Notional amount of nonderivative instruments | $2,944 | $2,893 |
Foreign exchange gains recorded as currency translation | 130 | |
Cash flow hedges | Commodity derivative instruments | ||
Financial Instruments | ||
Notional amount | $329 | $307 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | $2 | $2 |
Interest cost | 12 | 13 |
Expected return on plan assets | -17 | -16 |
Amortization of net actuarial loss | 7 | 6 |
Net periodic pension benefit cost | 4 | 5 |
Non-U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | 13 | 13 |
Interest cost | 16 | 18 |
Expected return on plan assets | -20 | -18 |
Amortization of net actuarial loss | 9 | 6 |
Amortization of prior service credit | -1 | -1 |
Net periodic pension benefit cost | 17 | 18 |
Plan Contributions | ||
Defined benefit plan, contributions by employer | $16 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Sep. 26, 2014 |
Income Taxes | |||
Income tax expense (benefit) | ($95) | $127 | |
Income tax benefit associated with settlement of certain U.S. tax matters | 189 | ||
Income tax penalties and interest accrued | 1,058 | 1,136 | |
Income tax penalties and interest accrued, location income taxes | 1,036 | 1,115 | |
Income tax penalties and interest accrued, location accrued and other current liabilities | 22 | 21 | |
Income tax penalties and interest expense | 44 | ||
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $80 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Other Income (Expense), Net | ||
Other income (expense), net | ($70) | $32 |
Other nonoperating expense, settlement of certain U.S. tax matters | 83 | |
Liabilities sharing percent, entity | 31.00% | |
CIT Group Inc | Tyco International and Covidien | ||
Other Income (Expense), Net | ||
Share of settlement | $18 | |
Liabilities sharing percent, entity | 31.00% |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Earnings Per Share | ||
Basic (in shares) | 407 | 411 |
Dilutive impact of share-based compensation arrangements (in shares) | 6 | 7 |
Diluted (in shares) | 413 | 418 |
Share options | ||
Antidilutive shares excluded from computation of earnings per share | ||
Antidilutive shares excluded from computation of earnings per share | 2 | 0 |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 | Sep. 26, 2014 |
Equity | |||
Cash dividend paid (in dollars per share) | $0.29 | $0.25 | |
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $118 | $236 | |
Number of common shares repurchased | 2 | 4 | |
Amount repurchased | 141 | 212 | |
Amount available for repurchase, at end of period | $733 |
Share_Plans_Details
Share Plans (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Share Based Compensation Arrangements: | ||
Share-based compensation expenses | $25 | $22 |
Share Based Compensation Expenses Not Recognized | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $213 | |
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 2 years 1 month 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Expected share price volatility (as a percent) | 36.00% | |
Risk free interest rate (as a percent) | 1.97% | |
Expected annual dividend per share | $1.16 | |
Expected life of options (in years) | 6 years | |
Stock and Incentive Plans | ||
Share Based Compensation Arrangements: | ||
Shares available for issuance | 19 | |
Share options | ||
Share Based Compensation Arrangements: | ||
Share options granted | 1.7 | |
Weighted-average grant-date fair value (in dollars per share) | $18.82 | |
Restricted share awards | ||
Share Based Compensation Arrangements: | ||
Shares granted | 1.1 | |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $61.50 | |
Performance share awards | ||
Share Based Compensation Arrangements: | ||
Shares granted | 0.2 | |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $61.50 |
Segment_Data_Details
Segment Data (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Segment Data | ||
Net sales | $3,466 | $3,326 |
Operating income | 477 | 479 |
Transportation Solutions | ||
Segment Data | ||
Net sales | 1,612 | 1,440 |
Operating income | 303 | 296 |
Industrial Solutions | ||
Segment Data | ||
Net sales | 784 | 763 |
Operating income | 89 | 99 |
Network Solutions | ||
Segment Data | ||
Net sales | 704 | 713 |
Operating income | 61 | 46 |
Consumer Solutions | ||
Segment Data | ||
Net sales | 366 | 410 |
Operating income | $24 | $38 |
Subsequent_Event_Detail
Subsequent Event (Detail) (Subsequent event, USD $) | 0 Months Ended | |
Jan. 27, 2015 | Dec. 26, 2014 | |
Subsequent Event | ||
Share repurchase program, increase in authorized amount | $3,000,000,000 | |
Broadband Network Solutions | ||
Subsequent Event | ||
Net proceeds from divestiture of discontinued operations | 3,000,000,000 | |
Balance sheet information for assets and liabilities held for sale | ||
Accounts receivable, net | 313,000,000 | |
Inventories | 243,000,000 | |
Property, plant, and equipment, net | 199,000,000 | |
Goodwill | 767,000,000 | |
Intangible assets, net | 233,000,000 | |
Other assets | 54,000,000 | |
Total assets | 1,809,000,000 | |
Current maturities of long-term debt | 90,000,000 | |
Accounts payable | 130,000,000 | |
Other liabilities | 131,000,000 | |
Total liabilities | $351,000,000 |
Tyco_Electronics_Group_SA_Deta
Tyco Electronics Group S.A. (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Tyco Electronics Group S.A. | ||
Ownership percentage in TEGSA | 100.00% | |
Statement of Operations Detail: | ||
Net sales | $3,466 | $3,326 |
Cost of sales | 2,295 | 2,209 |
Gross margin | 1,171 | 1,117 |
Selling, general, and administrative expenses | 459 | 467 |
Research, development, and engineering expenses | 184 | 164 |
Acquisition and integration costs | 24 | |
Restructuring and other charges, net | 27 | 7 |
Operating income | 477 | 479 |
Interest income | 5 | 5 |
Interest expense | -35 | -34 |
Other expense, net | -70 | 32 |
Income from continuing operations before income taxes | 377 | 482 |
Income tax (expense) benefit | 95 | -127 |
Income from continuing operations | 472 | 355 |
Loss from discontinued operations, net of income taxes | -2 | |
Net income attributable to TE Connectivity Ltd. | 472 | 353 |
Other comprehensive income (loss) | -206 | 24 |
Comprehensive income attributable to TE Connectivity Ltd. | 266 | 377 |
Consolidating Adjustments | ||
Statement of Operations Detail: | ||
Equity in net income of subsidiaries | -1,034 | -763 |
Equity in net loss of subsidiaries of discontinued operations | 4 | |
Income from continuing operations before income taxes | -1,034 | -759 |
Income from continuing operations | -759 | |
Net income attributable to TE Connectivity Ltd. | -1,034 | -759 |
Other comprehensive income (loss) | 414 | -46 |
Comprehensive income attributable to TE Connectivity Ltd. | -620 | -805 |
TE Connectivity Ltd. | Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses | 41 | 34 |
Operating income | -41 | -34 |
Other expense, net | 18 | |
Equity in net income of subsidiaries | 511 | 371 |
Equity in net loss of subsidiaries of discontinued operations | -2 | |
Intercompany interest income (expense), net | 2 | |
Income from continuing operations before income taxes | 472 | 353 |
Income from continuing operations | 353 | |
Net income attributable to TE Connectivity Ltd. | 472 | 353 |
Other comprehensive income (loss) | -206 | 24 |
Comprehensive income attributable to TE Connectivity Ltd. | 266 | 377 |
TEGSA | Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses | -9 | 1 |
Operating income | 9 | -1 |
Interest expense | -34 | -32 |
Other expense, net | -3 | |
Equity in net income of subsidiaries | 523 | 392 |
Equity in net loss of subsidiaries of discontinued operations | -2 | |
Intercompany interest income (expense), net | 13 | 15 |
Income from continuing operations before income taxes | 511 | 369 |
Income from continuing operations | 369 | |
Net income attributable to TE Connectivity Ltd. | 511 | 369 |
Other comprehensive income (loss) | -206 | 24 |
Comprehensive income attributable to TE Connectivity Ltd. | 305 | 393 |
Other Subsidiaries | Reportable entities | ||
Statement of Operations Detail: | ||
Net sales | 3,466 | 3,326 |
Cost of sales | 2,295 | 2,209 |
Gross margin | 1,171 | 1,117 |
Selling, general, and administrative expenses | 427 | 432 |
Research, development, and engineering expenses | 184 | 164 |
Acquisition and integration costs | 24 | |
Restructuring and other charges, net | 27 | 7 |
Operating income | 509 | 514 |
Interest income | 5 | 5 |
Interest expense | -1 | -2 |
Other expense, net | -70 | 17 |
Intercompany interest income (expense), net | -15 | -15 |
Income from continuing operations before income taxes | 428 | 519 |
Income tax (expense) benefit | 95 | -127 |
Income from continuing operations | 392 | |
Loss from discontinued operations, net of income taxes | -2 | |
Net income attributable to TE Connectivity Ltd. | 523 | 390 |
Other comprehensive income (loss) | -208 | 22 |
Comprehensive income attributable to TE Connectivity Ltd. | $315 | $412 |
Tyco_Electronics_Group_SA_Deta1
Tyco Electronics Group S.A. (Details 2) (USD $) | Dec. 26, 2014 | Sep. 26, 2014 | Dec. 27, 2013 | Sep. 27, 2013 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $868 | $2,457 | $1,397 | $1,403 |
Accounts receivable, net | 2,349 | 2,439 | ||
Inventories | 1,942 | 1,745 | ||
Prepaid expenses and other current assets | 551 | 567 | ||
Deferred income taxes | 335 | 336 | ||
Total current assets | 6,045 | 7,544 | ||
Property, plant, and equipment, net | 3,118 | 3,126 | ||
Goodwill | 5,638 | 4,595 | ||
Intangible assets, net | 1,830 | 1,329 | ||
Deferred income taxes | 2,092 | 2,058 | ||
Receivable from Tyco International plc and Covidien plc | 956 | 1,037 | ||
Other assets | 474 | 463 | ||
Total Assets | 20,153 | 20,152 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 937 | 667 | ||
Accounts payable | 1,382 | 1,391 | ||
Accrued and other current liabilities | 1,436 | 1,717 | ||
Deferred revenue | 121 | 179 | ||
Total current liabilities | 3,876 | 3,954 | ||
Long-term debt | 3,286 | 3,281 | ||
Long-term pension and postretirement liabilities | 1,257 | 1,287 | ||
Deferred income taxes | 304 | 240 | ||
Income taxes | 1,915 | 2,045 | ||
Other liabilities | 345 | 332 | ||
Total Liabilities | 10,983 | 11,139 | ||
Total Equity | 9,170 | 9,013 | 8,622 | 8,386 |
Total Liabilities and Equity | 20,153 | 20,152 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | -174 | -1,192 | ||
Total current assets | -174 | -1,192 | ||
Investment in subsidiaries | -29,197 | -28,568 | ||
Intercompany loans receivable | -12,158 | -12,063 | ||
Total Assets | -41,529 | -41,823 | ||
Current liabilities: | ||||
Intercompany payables | -174 | -1,192 | ||
Total current liabilities | -174 | -1,192 | ||
Intercompany loans payable | -12,158 | -12,063 | ||
Total Liabilities | -12,332 | -13,255 | ||
Total Equity | -29,197 | -28,568 | ||
Total Liabilities and Equity | -41,529 | -41,823 | ||
TE Connectivity Ltd. | Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 27 | 932 | ||
Prepaid expenses and other current assets | 4 | 6 | ||
Total current assets | 31 | 938 | ||
Investment in subsidiaries | 8,911 | 8,602 | ||
Intercompany loans receivable | 723 | 20 | ||
Total Assets | 9,665 | 9,560 | ||
Current liabilities: | ||||
Accounts payable | 2 | 1 | ||
Accrued and other current liabilities | 146 | 282 | ||
Intercompany payables | 147 | 260 | ||
Total current liabilities | 295 | 543 | ||
Intercompany loans payable | 200 | 4 | ||
Total Liabilities | 495 | 547 | ||
Total Equity | 9,170 | 9,013 | ||
Total Liabilities and Equity | 9,665 | 9,560 | ||
TEGSA | Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | |||
Intercompany receivables | 110 | 230 | ||
Prepaid expenses and other current assets | 8 | 3 | ||
Total current assets | 118 | 234 | ||
Investment in subsidiaries | 20,286 | 19,966 | ||
Intercompany loans receivable | 1,940 | 2,160 | ||
Other assets | 35 | 30 | ||
Total Assets | 22,379 | 22,390 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 847 | 577 | ||
Accrued and other current liabilities | 40 | 50 | ||
Total current liabilities | 887 | 627 | ||
Long-term debt | 3,286 | 3,281 | ||
Intercompany loans payable | 9,295 | 9,880 | ||
Total Liabilities | 13,468 | 13,788 | ||
Total Equity | 8,911 | 8,602 | ||
Total Liabilities and Equity | 22,379 | 22,390 | ||
Other Subsidiaries | Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 868 | 2,456 | 1,397 | 1,403 |
Accounts receivable, net | 2,349 | 2,439 | ||
Inventories | 1,942 | 1,745 | ||
Intercompany receivables | 37 | 30 | ||
Prepaid expenses and other current assets | 539 | 558 | ||
Deferred income taxes | 335 | 336 | ||
Total current assets | 6,070 | 7,564 | ||
Property, plant, and equipment, net | 3,118 | 3,126 | ||
Goodwill | 5,638 | 4,595 | ||
Intangible assets, net | 1,830 | 1,329 | ||
Deferred income taxes | 2,092 | 2,058 | ||
Intercompany loans receivable | 9,495 | 9,883 | ||
Receivable from Tyco International plc and Covidien plc | 956 | 1,037 | ||
Other assets | 439 | 433 | ||
Total Assets | 29,638 | 30,025 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 90 | 90 | ||
Accounts payable | 1,380 | 1,390 | ||
Accrued and other current liabilities | 1,250 | 1,385 | ||
Deferred revenue | 121 | 179 | ||
Intercompany payables | 27 | 932 | ||
Total current liabilities | 2,868 | 3,976 | ||
Intercompany loans payable | 2,663 | 2,179 | ||
Long-term pension and postretirement liabilities | 1,257 | 1,287 | ||
Deferred income taxes | 304 | 240 | ||
Income taxes | 1,915 | 2,045 | ||
Other liabilities | 345 | 332 | ||
Total Liabilities | 9,352 | 10,059 | ||
Total Equity | 20,286 | 19,966 | ||
Total Liabilities and Equity | $29,638 | $30,025 |
Tyco_Electronics_Group_SA_Deta2
Tyco Electronics Group S.A. (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 26, 2014 | Dec. 27, 2013 |
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | $295 | $387 |
Net cash used in discontinued operating activities | -2 | |
Net cash provided by operating activities | 295 | 385 |
Cash Flows From Investing Activities: | ||
Capital expenditures | -142 | -133 |
Proceeds from sale of property, plant, and equipment | 5 | 12 |
Acquisition of businesses, net of cash acquired | -1,511 | |
Other | -3 | -2 |
Net cash used in investing activities | -1,651 | -123 |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | 270 | -25 |
Proceeds from issuance of long-term debt | 323 | |
Repayment of long-term debt | -223 | -303 |
Proceeds from exercise of share options | 16 | 57 |
Repurchase of common shares | -155 | -210 |
Payment of common share dividends to shareholders | -118 | -103 |
Other | 1 | -3 |
Net cash used in continuing financing activities | -209 | -264 |
Net cash provided by discontinued financing activities | 2 | |
Net cash used in financing activities | -209 | -262 |
Effect of currency translation on cash | -24 | -6 |
Net decrease in cash and cash equivalents | -1,589 | -6 |
Cash and cash equivalents at beginning of period | 2,457 | 1,403 |
Cash and cash equivalents at end of period | 868 | 1,397 |
Consolidating Adjustments | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | -1,800 | |
Net cash provided by operating activities | -1,800 | |
Cash Flows From Investing Activities: | ||
Change in intercompany loans | 245 | 1,761 |
Net cash used in investing activities | 245 | 1,761 |
Cash Flows From Financing Activities: | ||
Intercompany distributions | 1,800 | |
Loan activity with parent | -245 | -1,761 |
Net cash used in continuing financing activities | 39 | |
Net cash used in financing activities | -245 | 39 |
TE Connectivity Ltd. | Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | -36 | |
Net cash provided by operating activities | -38 | -36 |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 28 | 19 |
Repurchase of common shares | -155 | |
Payment of common share dividends to shareholders | -120 | -105 |
Loan activity with parent | 285 | 122 |
Net cash used in continuing financing activities | 36 | |
Net cash used in financing activities | 38 | 36 |
TEGSA | Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 1,762 | |
Net cash provided by operating activities | -26 | 1,762 |
Cash Flows From Investing Activities: | ||
Change in intercompany loans | -245 | -1,761 |
Net cash used in investing activities | -245 | -1,761 |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 2 | |
Net increase (decrease) in commercial paper | 270 | -25 |
Proceeds from issuance of long-term debt | 323 | |
Repayment of long-term debt | -303 | |
Other | 2 | |
Net cash used in continuing financing activities | -1 | |
Net cash used in financing activities | 270 | -1 |
Net decrease in cash and cash equivalents | -1 | |
Cash and cash equivalents at beginning of period | 1 | |
Other Subsidiaries | Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 461 | |
Net cash used in discontinued operating activities | -2 | |
Net cash provided by operating activities | 359 | 459 |
Cash Flows From Investing Activities: | ||
Capital expenditures | -142 | -133 |
Proceeds from sale of property, plant, and equipment | 5 | 12 |
Acquisition of businesses, net of cash acquired | -1,511 | |
Other | -3 | -2 |
Net cash used in investing activities | -1,651 | -123 |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | -28 | -21 |
Repayment of long-term debt | -223 | |
Proceeds from exercise of share options | 16 | 57 |
Repurchase of common shares | -210 | |
Payment of common share dividends to shareholders | 2 | 2 |
Intercompany distributions | -1,800 | |
Loan activity with parent | -40 | 1,639 |
Other | 1 | -5 |
Net cash used in continuing financing activities | -338 | |
Net cash provided by discontinued financing activities | 2 | |
Net cash used in financing activities | -272 | -336 |
Effect of currency translation on cash | -24 | -6 |
Net decrease in cash and cash equivalents | -1,588 | -6 |
Cash and cash equivalents at beginning of period | 2,456 | 1,403 |
Cash and cash equivalents at end of period | $868 | $1,397 |