Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 26, 2015 | Jul. 17, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | TE Connectivity Ltd. | |
Entity Central Index Key | 1,385,157 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 26, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-25 | |
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 | 402,384,495 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 3,118 | $ 3,075 | $ 9,249 | $ 8,901 |
Cost of sales | 2,070 | 2,057 | 6,130 | 5,943 |
Gross margin | 1,048 | 1,018 | 3,119 | 2,958 |
Selling, general, and administrative expenses | 393 | 396 | 1,170 | 1,154 |
Research, development, and engineering expenses | 159 | 147 | 479 | 433 |
Acquisition and integration costs | 8 | 1 | 46 | 2 |
Restructuring and other charges, net | 19 | 10 | 82 | 15 |
Operating income | 469 | 464 | 1,342 | 1,354 |
Interest income | 4 | 4 | 13 | 13 |
Interest expense | (33) | (28) | (104) | (93) |
Other income (expense), net | 11 | 9 | (64) | 57 |
Income from continuing operations before income taxes | 451 | 449 | 1,187 | 1,331 |
Income tax expense | (100) | (102) | (85) | (331) |
Income from continuing operations | 351 | 347 | 1,102 | 1,000 |
Income (loss) from discontinued operations, net of income taxes | (42) | 56 | 278 | 118 |
Net income attributable to TE Connectivity Ltd. | $ 309 | $ 403 | $ 1,380 | $ 1,118 |
Basic earnings per share attributable to TE Connectivity Ltd.: | ||||
Income from continuing operations (in dollars per share) | $ 0.86 | $ 0.85 | $ 2.71 | $ 2.44 |
Income (loss) from discontinued operations (in dollars per share) | (0.10) | 0.14 | 0.68 | 0.29 |
Net income (in dollars per share) | 0.76 | 0.99 | 3.39 | 2.73 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | ||||
Income from continuing operations (in dollars per share) | 0.85 | 0.83 | 2.67 | 2.40 |
Income (loss) from discontinued operations (in dollars per share) | (0.10) | 0.13 | 0.67 | 0.28 |
Net income (in dollars per share) | 0.75 | 0.97 | 3.34 | 2.68 |
Dividends paid per common share (in dollars per share) | $ 0.33 | $ 0.29 | $ 0.91 | $ 0.79 |
Weighted-average number of shares outstanding: | ||||
Basic (in shares) | 406 | 409 | 407 | 410 |
Diluted (in shares) | 412 | 416 | 413 | 417 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 309 | $ 403 | $ 1,380 | $ 1,118 |
Other comprehensive income (loss): | ||||
Currency translation | 37 | 12 | (388) | 10 |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 10 | 7 | 29 | 22 |
Gains (losses) on cash flow hedges, net of income taxes | (4) | 20 | 3 | 22 |
Other comprehensive income (loss) | 43 | 39 | (356) | 54 |
Comprehensive income attributable to TE Connectivity Ltd. | $ 352 | $ 442 | $ 1,024 | $ 1,172 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 26, 2015 | Sep. 26, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 701 | $ 2,457 |
Accounts receivable, net of allowance for doubtful accounts of $18 and $14 | 2,185 | 2,057 |
Inventories | 1,717 | 1,509 |
Prepaid expenses and other current assets | 617 | 519 |
Deferred income taxes | 619 | 324 |
Assets held for sale | 1,897 | 2,013 |
Total current assets | 7,736 | 8,879 |
Property, plant, and equipment, net | 2,925 | 2,920 |
Goodwill | 4,841 | 3,726 |
Intangible assets, net | 1,597 | 1,087 |
Deferred income taxes | 2,054 | 2,047 |
Receivable from Tyco International plc and Covidien plc | 962 | 1,037 |
Other assets | 326 | 456 |
Total Assets | 20,441 | 20,152 |
Current liabilities: | ||
Current maturities of long-term debt | 631 | 577 |
Accounts payable | 1,206 | 1,230 |
Accrued and other current liabilities | 1,660 | 1,594 |
Deferred revenue | 179 | 176 |
Liabilities held for sale | 365 | 416 |
Total current liabilities | 4,041 | 3,993 |
Long-term debt | 3,395 | 3,281 |
Long-term pension and postretirement liabilities | 1,192 | 1,280 |
Deferred income taxes | 299 | 229 |
Income taxes | 1,936 | 2,044 |
Other liabilities | 443 | 312 |
Total Liabilities | $ 11,306 | $ 11,139 |
Commitments and contingencies (Note 10) | ||
TE Connectivity Ltd. shareholders' equity: | ||
Common shares, 414,064,381 shares authorized and issued, CHF 0.57 par value, and 419,070,781 shares authorized and issued, CHF 0.57 par value, respectively | $ 182 | $ 184 |
Contributed surplus | 4,338 | 5,231 |
Accumulated earnings | 5,633 | 4,253 |
Treasury shares, at cost, 10,181,684 and 11,383,631 shares, respectively | (651) | (644) |
Accumulated other comprehensive loss | (373) | (17) |
Total TE Connectivity Ltd. Shareholders' equity | 9,129 | 9,007 |
Noncontrolling interests | 6 | 6 |
Total Equity | 9,135 | 9,013 |
Total Liabilities and Equity | $ 20,441 | $ 20,152 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Jun. 26, 2015SFr / shares | Jun. 26, 2015USD ($)shares | Sep. 26, 2014SFr / shares | Sep. 26, 2014USD ($)shares |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ | $ 18 | $ 14 | ||
Common shares, shares authorized | 414,064,381 | 419,070,781 | ||
Common shares, shares issued | 414,064,381 | 419,070,781 | ||
Common shares, par value (in currency per share) | SFr / shares | SFr 0.57 | SFr 0.57 | ||
Treasury shares | 10,181,684 | 11,383,631 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | TE Connectivity Ltd. Shareholders' Equity | Noncontrolling Interests | Total |
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 | 1,118 | 1,118 | 1,118 | |||||
Other comprehensive income (loss) | 54 | 54 | 54 | |||||
Share-based compensation expense | 64 | 64 | 64 | |||||
Dividends approved | (473) | (473) | (473) | |||||
Exercise of share options | $ 143 | 143 | 143 | |||||
Exercise of share options (in shares) | 4 | |||||||
Restricted share award vestings and other activity | $ 106 | (109) | (3) | (3) | ||||
Restricted share award vestings and other activity (in shares) | 2 | |||||||
Repurchase of common shares | $ (441) | (441) | $ (441) | |||||
Repurchase of common shares (in shares) | (8) | (8) | ||||||
Cancellation of treasury shares | $ (5) | $ 399 | (394) | |||||
Cancellation of treasury shares (in shares) | (10) | 10 | ||||||
Balance at Jun. 27, 2014 | $ 184 | $ (513) | 5,224 | 3,590 | 357 | 8,842 | 6 | $ 8,848 |
Balance (in shares) at Jun. 27, 2014 | 419 | (9) | ||||||
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 | 1,380 | 1,380 | 1,380 | |||||
Other comprehensive income (loss) | (356) | (356) | (356) | |||||
Share-based compensation expense | 71 | 71 | 71 | |||||
Dividends approved | (534) | (534) | (534) | |||||
Exercise of share options | $ 97 | 97 | 97 | |||||
Exercise of share options (in shares) | 3 | |||||||
Restricted share award vestings and other activity | $ 127 | (127) | ||||||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | $ (536) | (536) | $ (536) | |||||
Repurchase of common shares (in shares) | (8) | (8) | ||||||
Cancellation of treasury shares | $ (2) | $ 305 | (303) | |||||
Cancellation of treasury shares (in shares) | (5) | 5 | ||||||
Balance at Jun. 26, 2015 | $ 182 | $ (651) | $ 4,338 | $ 5,633 | $ (373) | $ 9,129 | $ 6 | $ 9,135 |
Balance (in shares) at Jun. 26, 2015 | 414 | (10) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Jun. 26, 2015 | Jun. 27, 2014 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,380 | $ 1,118 |
Income from discontinued operations, net of income taxes | (278) | (118) |
Income from continuing operations | 1,102 | 1,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 455 | 408 |
Non-cash restructuring charges | 15 | 14 |
Deferred income taxes | (106) | 52 |
Provision for losses on accounts receivable and inventories | 35 | 34 |
Tax sharing (income) expense | 62 | (59) |
Share-based compensation expense | 65 | 58 |
Other | 59 | 46 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | (125) | (167) |
Inventories | (218) | (88) |
Prepaid expenses and other current assets | 35 | (29) |
Accounts payable | (29) | 54 |
Accrued and other current liabilities | (206) | (357) |
Deferred revenue | 4 | 52 |
Income taxes | (90) | 95 |
Other | 21 | 29 |
Net cash provided by continuing operating activities | 1,079 | 1,142 |
Net cash provided by discontinued operating activities | 210 | 192 |
Net cash provided by operating activities | 1,289 | 1,334 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (425) | (445) |
Proceeds from sale of property, plant, and equipment | 10 | 25 |
Acquisition of businesses, net of cash acquired | (1,726) | (18) |
Other | (2) | (4) |
Net cash used in continuing investing activities | (2,143) | (442) |
Net cash used in discontinued investing activities | (22) | (29) |
Net cash used in investing activities | (2,165) | (471) |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | (197) | 25 |
Proceeds from issuance of long-term debt | 617 | 323 |
Repayment of long-term debt | (473) | (360) |
Proceeds from exercise of share options | 97 | 140 |
Repurchase of common shares | (511) | (452) |
Payment of common share dividends to shareholders | (370) | (324) |
Transfers from discontinued operations | 188 | 163 |
Other | (2) | (2) |
Net cash used in continuing financing activities | (651) | (487) |
Net cash used in discontinued financing activities | (188) | (163) |
Net cash used in financing activities | (839) | (650) |
Effect of currency translation on cash | (41) | (3) |
Net increase (decrease) in cash and cash equivalents | (1,756) | 210 |
Cash and cash equivalents at beginning of period | 2,457 | 1,403 |
Cash and cash equivalents at end of period | $ 701 | $ 1,613 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 26, 2015 | |
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. Segment Structure During fiscal 2015, we reorganized our management structure and segments to better align the organization around our strategy. Our businesses in the former Consumer Solutions segment and our continuing businesses in the former Network Solutions segment have been moved into the newly created Communications Solutions segment. (See Note 3 for information regarding discontinued operations.) In addition, the former Data Communications and Consumer Devices businesses have been combined to form the Data and Devices business. The following represents the current segment structure: • Transportation Solutions—The Automotive, Commercial Transportation, and Sensors businesses are included in this segment. • Industrial Solutions—This segment contains the Industrial Equipment; Aerospace, Defense, Oil, and Gas; and Energy businesses. • Communications Solutions—The Data and Devices, Appliances, and Subsea Communications businesses are included in this segment. Reclassifications We have reclassified certain items on our Condensed Consolidated Financial Statements to conform to the current year presentation. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 9 Months Ended |
Jun. 26, 2015 | |
Restructuring and Other Charges, Net | |
Restructuring and Other Charges, Net | 2. Restructuring and Other Charges, Net Net restructuring and other charges consisted of the following: For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Restructuring charges, net $ $ $ $ Other charges (credits), net (1) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In fiscal 2015, net other charges primarily consisted of charges incurred in connection with the pending sale of our Broadband Network Solutions ("BNS") business. See Note 3 for additional information. Restructuring Charges, Net Net restructuring charges by segment were as follows: For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions — Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves during the first nine months of fiscal 2015 is summarized as follows: Balance at September 26, 2014 Charges Changes in Estimate Cash Payments Non-Cash Items Currency Translation Balance at June 26, 2015 (in millions) Fiscal 2015 Actions: Employee severance $ — $ $ — $ ) $ — $ — $ Facility and other exit costs — — — — — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2014 Actions: Employee severance — — ) — ) Facility and other exit costs — — ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2014 Actions: Employee severance ) ) — ) Facility and other exit costs — ) — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2015 Actions During fiscal 2015, we initiated a restructuring program associated with headcount reductions and product line closures, primarily impacting the Communications Solutions segment. In connection with this program, during the nine months ended June 26, 2015, we recorded restructuring charges of $62 million. We expect to complete all restructuring actions commenced in the first nine months of fiscal 2015 by the end of fiscal 2016 and to incur total charges of approximately $67 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 Communications Solutions segment. In connection with this program, during the nine months ended June 27, 2014, we recorded restructuring charges of $18 million. We do not expect to incur any additional charges 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 nine months ended June 26, 2015, we recorded net restructuring charges of $3 million 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: June 26, 2015 September 26, 2014 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 26, 2015 | |
Discontinued Operations. | |
Discontinued Operations | 3. Discontinued Operations 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 pending customary closing conditions and regulatory approvals. The following table presents information regarding certain components of income (loss) from discontinued operations, net of income taxes: For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Net sales $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income (loss) from discontinued operations $ ) $ $ $ Income tax (expense) benefit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations, net of income taxes $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax loss from discontinued operations for the quarter ended June 26, 2015 included pre-tax charges of $126 million recorded in connection with the Com-Net case related to our former Wireless Systems business which was sold in fiscal 2009. See Note 10 for additional information regarding the Com-Net case. The income tax benefit from discontinued operations for the nine months ended June 26, 2015 primarily reflects an income tax benefit related to the recognition of certain deferred tax assets expected to be realized upon the sale of the BNS business, partially offset by an income tax charge related to the impacts of legal entity restructurings in connection with the anticipated sale of the BNS business. The following table presents balance sheet information for assets and liabilities held for sale: June 26, 2015 September 26, 2014 (in millions) Accounts receivable, net $ $ Inventories Property, plant, and equipment, net Goodwill Intangible assets, net Other assets ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current maturities of long-term debt $ $ Accounts payable Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The BNS and Wireless Systems businesses met the held for sale and discontinued operations criteria and have been reported as such in all periods presented in our Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the BNS and Wireless Systems businesses were included in the former Network Solutions and Wireless Systems segments, respectively. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 26, 2015 | |
Acquisitions | |
Acquisitions | 4. Acquisitions 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 allocated the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. During the second quarter of fiscal 2015, we finalized the valuation of identifiable intangible assets, fixed assets, and pre-acquisition contingencies. The following table summarizes the allocation of the purchase price to the fair value of identifiable assets acquired and liabilities assumed at the date of acquisition, in accordance with the acquisition method of accounting: (in millions) Cash and cash equivalents $ Accounts receivable Inventories Other current assets Property, plant, and equipment Goodwill Intangible assets Other non-current assets ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Current maturities of long-term debt Accounts payable Other current liabilities Long-term debt Deferred income taxes Other non-current liabilities ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net assets acquired Cash and cash equivalents acquired ) ​ ​ ​ ​ ​ Net cash paid $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair values assigned to intangible assets were determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. Both valuation methods rely on management judgment, including expected future cash flows resulting from existing customer relationships, customer attrition rates, contributory effects of other assets utilized in the business, peer group cost of capital and royalty rates, and other factors. The valuation of tangible assets was derived using a combination of the income, market, and cost approaches. Significant judgments used in valuing tangible assets include estimated reproduction or replacement cost, useful lives of assets, estimated selling prices, costs to complete, and reasonable profit. Useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. Intangible assets acquired consisted of the following: Amount Weighted-Average Amortization Period (in millions) (in years) Customer relationships $ Developed technology Trade names and trademarks Customer order backlog <1 ​ ​ ​ ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The acquired intangible assets are being amortized on a straight-line basis over their expected useful lives. Goodwill of $1,066 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. For the quarter ended June 26, 2015 and the period from October 9, 2014 to June 26, 2015, Measurement Specialties contributed net sales of $143 million and $406 million, respectively, to our Condensed Consolidated Statements of Operations. Due to the commingled nature of our operations, it is not practicable to separately identify operating income of Measurement Specialties on a stand-alone basis. 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 Pro Forma for the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions, except per share data) Net sales $ $ $ $ Net income attributable to TE Connectivity Ltd. Diluted earnings per share attributable to TE Connectivity Ltd. $ $ $ $ The pro forma financial information is based on our final allocation of the purchase price. 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 June 26, 2015 were adjusted to exclude $1 million of charges related to the amortization of the fair value of acquired intangible assets and include $1 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position. Pro forma results for the quarter ended June 27, 2014 were adjusted to include $5 million of charges related to the amortization of the fair value of acquired intangible assets, $3 million of interest expense based on pro forma changes in our capital structure, and $1 million in depreciation expense. Pro forma results for the nine months ended June 26, 2015 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, $7 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position, $7 million of charges related to acquired customer order backlog, and $1 million of charges related to the amortization of the fair value of acquired intangible assets. In addition, pro forma results for the nine months ended June 26, 2015 were adjusted to include $2 million of interest expense based on pro forma changes in our capital structure. Pro forma results for the nine months ended June 27, 2014 were adjusted to include $16 million of charges related to the amortization of the fair value of acquired intangible assets, $11 million of charges related to the fair value adjustment to acquisition-date inventories, $10 million of interest expense based on pro forma changes in our capital structure, $7 million of charges related to acquired customer order backlog, $1 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position, and $1 million in depreciation expense. 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. During the nine months ended June 26, 2015, we acquired three additional companies for $242 million in cash, net of cash acquired. |
Inventories
Inventories | 9 Months Ended |
Jun. 26, 2015 | |
Inventories. | |
Inventories | 5. Inventories Inventories consisted of the following: June 26, 2015 September 26, 2014 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill
Goodwill | 9 Months Ended |
Jun. 26, 2015 | |
Goodwill | |
Goodwill | 6. Goodwill The changes in the carrying amount of goodwill by segment were as follows (1) : Transportation Solutions Industrial Solutions Communications Solutions Total (in millions) September 26, 2014 (2) $ $ $ $ Acquisitions — Currency translation ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 26, 2015 (2) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In connection with the realignment of certain businesses during fiscal 2015, goodwill was re-allocated to reporting units using a relative fair value approach. See Note 1 for additional information regarding our current segment structure. (2) At June 26, 2015 and September 26, 2014, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $1,626 million, respectively. During fiscal 2015, we completed the acquisition of Measurement Specialties and recognized $1,066 million of goodwill which benefits the Transportation Solutions segment. See Note 4 for additional information on the acquisition of Measurement Specialties. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Jun. 26, 2015 | |
Intangible Assets, Net | |
Intangible Assets, Net | 7. Intangible Assets, Net Intangible assets consisted of the following: June 26, 2015 September 26, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Intellectual property $ $ ) $ $ $ ) $ Customer relationships ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During fiscal 2015, the gross carrying amount of intangible assets increased by $547 million as a result of the Measurement Specialties acquisition. Intangible asset amortization expense was $37 million and $20 million for the quarters ended June 26, 2015 and June 27, 2014, respectively, and $117 million and $60 million for the nine months ended June 26, 2015 and June 27, 2014, respectively. The aggregate amortization expense on intangible assets is expected to be as follows: (in millions) Remainder of fiscal 2015 $ Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 9 Months Ended |
Jun. 26, 2015 | |
Debt | |
Debt | 8. Debt During February 2015, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, repaid, at maturity, $250 million of 1.60% senior notes due 2015. During February 2015, TEGSA issued €550 million (approximately $617 million using an exchange rate of $1.12 per €1.00) aggregate principal amount of 1.100% senior notes due March 1, 2023. The notes are TEGSA's unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur. The notes are fully and unconditionally guaranteed as to payment on an unsecured basis by TE Connectivity Ltd. During the first nine months of fiscal 2015, we reclassified $500 million of senior floating rate notes due 2016 from long-term debt to current maturities of long-term debt on the Condensed Consolidated Balance Sheet. As of June 26, 2015, TEGSA had $130 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 $4,294 million and $4,125 million at June 26, 2015 and September 26, 2014, respectively. |
Guarantees
Guarantees | 9 Months Ended |
Jun. 26, 2015 | |
Guarantees | |
Guarantees | 9. 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 June 26, 2015 and September 26, 2014, we had a liability of $17 million and $21 million, respectively, 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 June 26, 2015, we had outstanding letters of credit, letters of guarantee, and surety bonds in the amount of $369 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 $32 million and $29 million at June 26, 2015 and September 26, 2014, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 26, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. 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. As previously reported, we had a contingent purchase price commitment of $80 million related to our fiscal 2001 acquisition of Com-Net. This represented 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 did not believe we had any obligation to the sellers. However, the sellers contested our position and initiated a lawsuit in June 2006 in the Court of Common Pleas in Allegheny County, Pennsylvania. On July 13, 2015, the court entered a verdict in favor of the sellers and against us in the amount of $126 million plus costs, representing the $80 million contingent purchase price plus interest. We are proceeding with an appeal. In connection with this case, we recorded a reserve and pre-tax charges of $126 million in the third quarter of fiscal 2015. These charges are reflected in income (loss) from discontinued operations on the Condensed Consolidated Statement of Operations as the Com-Net case was associated with our former Wireless Systems business which was sold in fiscal 2009. 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 9 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 were 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. The previously set U.S. Tax Court trial date of February 29, 2016 has been delayed at the request of the IRS and is anticipated to commence during the second half of calendar 2016. The parties remain 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 nine months of fiscal 2015, we recognized an income tax benefit of $202 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $89 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. During the first nine months of fiscal 2015 and 2014, we made net payments of $23 million and $179 million, respectively, related to pre-separation U.S. tax matters. Over the next twelve months, we expect to make net cash payments of approximately $18 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 the 2008 through 2010 audit to conclude in fiscal 2015. At June 26, 2015 and September 26, 2014, we have reflected $20 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 June 26, 2015, we concluded that it was probable that we would incur remedial costs in the range of $17 million to $38 million, and that the best estimate within this range was $20 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 | 9 Months Ended |
Jun. 26, 2015 | |
Financial Instruments. | |
Financial Instruments | 11. 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 $4,331 million and $2,893 million at June 26, 2015 and September 26, 2014, respectively. For the quarter and nine months ended June 26, 2015, we recorded foreign exchange losses of $53 million and foreign exchange gains of $359 million, respectively, as currency translation, a component of accumulated other comprehensive loss, offsetting foreign exchange gains and losses attributable to the translation of the net investment. Foreign exchange gains and losses recorded as currency translation were immaterial for the quarter and nine months ended June 27, 2014. In the third quarter of fiscal 2015, we entered into cross-currency swap contracts with an aggregate notional value of €600 million to reduce our exposure to foreign currency exchange risk associated with certain intercompany loans. Under the terms of these contracts, which have been designated as cash flow hedges, we will make quarterly interest payments in euros at 3.50% per annum and receive interest in U.S. dollars at a weighted average rate of 5.36% per annum. Upon the maturities of these contracts in fiscal 2022, we will pay the principal amount of the loans in euros and receive U.S. dollars from our counterparties. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 26, 2015 | |
Retirement Plans | |
Retirement Plans | 12. 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 June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Other — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Plans Non-U.S. Plans For the Nine Months Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Other — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the nine months ended June 26, 2015, we contributed $46 million to our non-U.S. pension plans. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 26, 2015 | |
Income Taxes | |
Income Taxes | 13. Income Taxes We recorded income tax provisions of $100 million and $102 million for the quarters ended June 26, 2015 and June 27, 2014, respectively. For the nine months ended June 26, 2015 and June 27, 2014, we recorded income tax provisions of $85 million and $331 million, respectively. The tax provision for the nine months ended June 26, 2015 reflects a $202 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 tax provision for the nine months ended June 27, 2014 reflects income tax charges related to adjustments to prior year income tax returns, as well as an income tax charge related to the impact of certain non-U.S. tax law changes and the associated increase in the valuation allowance for tax loss carryforwards. We record accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of June 26, 2015, we had recorded $1,069 million of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheet, of which $1,062 million was recorded in income taxes and the remainder was recorded in accrued and other current liabilities. During the nine months ended June 26, 2015, we recognized a $14 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 the remainder was recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheet. Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $70 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. See Note 10 for additional information regarding the status of IRS examinations. 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 June 26, 2015. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Jun. 26, 2015 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 14. Other Income (Expense), Net During the quarters ended June 26, 2015 and June 27, 2014, we recorded net other income of $11 million and $9 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. See Note 9 for further information regarding the Tax Sharing Agreement. During the nine months ended June 26, 2015 and June 27, 2014, we recorded net other expense of $64 million and net other income of $57 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The net other expense for the nine months ended June 26, 2015 included $89 million related to the effective settlement of undisputed tax matters for the years 2001 through 2007. See Note 10 for additional information. The net other income for the nine months ended June 27, 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 | 9 Months Ended |
Jun. 26, 2015 | |
Earnings Per Share | |
Earnings Per Share | 15. 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 For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the nine months ended June 26, 2015, there were one million share options that were not included in the computation of diluted earnings per share because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive. |
Equity
Equity | 9 Months Ended |
Jun. 26, 2015 | |
Equity | |
Equity | 16. Equity Common Shares Held in Treasury In March 2015, our shareholders approved the cancellation of five million shares purchased under our share repurchase program during the period from December 28, 2013 to December 26, 2014. The capital reduction by cancellation of these shares was subject to a notice period and filing with the commercial register in Switzerland and became effective in May 2015. Dividends We paid a cash dividend of $0.29 per share to shareholders out of contributed surplus in each of the first and second quarters of fiscal 2015. In March 2015, our shareholders approved a dividend payment to shareholders of $1.32 (equivalent to CHF 1.33) per share out of contributed surplus, payable in four equal quarterly installments beginning in the third quarter of fiscal 2015 through the second quarter of fiscal 2016. We paid the first installment of the dividend at a rate of $0.33 per share in the third quarter of fiscal 2015. Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to contributed surplus. At June 26, 2015 and September 26, 2014, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $400 million and $236 million, respectively. Share Repurchase Program In the second quarter of fiscal 2015, our board of directors authorized an increase of $3.0 billion in the share repurchase program. Common shares repurchased under the share repurchase program were as follows: For the Nine Months Ended June 26, 2015 June 27, 2014 (in millions) Number of common shares repurchased Amount repurchased $ $ At June 26, 2015, we had $3.3 billion of availability remaining under our share repurchase authorization. |
Share Plans
Share Plans | 9 Months Ended |
Jun. 26, 2015 | |
Share Plans | |
Share Plans | 17. Share Plans Total share-based compensation expense, which was included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was as follows: For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Share-based compensation expense $ $ $ $ As of June 26, 2015, there was $160 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 1.7 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 $ Restricted share awards Performance share awards As of June 26, 2015, 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 % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data
Segment Data | 9 Months Ended |
Jun. 26, 2015 | |
Segment Data | |
Segment Data | 18. Segment Data During fiscal 2015, we reorganized our management structure and segments to better align the organization around our strategy. See Note 1 for additional information regarding our current segment structure. The following segment information reflects the current segment reporting structure. Prior period segment results have been restated to conform to the current segment structure. Net sales by segment were as follows: For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. Operating income by segment was as follows: For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment assets and a reconciliation of segment assets to total assets were as follows: June 26, 2015 September 26, 2014 (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total segment assets (1) Other current assets Other non-current assets ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Segment assets are composed of accounts receivable, inventories, and property, plant, and equipment. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 9 Months Ended |
Jun. 26, 2015 | |
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 June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses (1) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense, net — ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Loss from discontinued operations, net of income taxes — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA's selling, general, and administrative expenses include losses of $18 million related to intercompany transactions. These losses are offset by corresponding gains recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended June 27, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense, net — ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses (1) ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other expense, net — — ) — ) Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA's selling, general, and administrative expenses include gains of $105 million related to intercompany transactions. These gains are offset by corresponding losses recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 27, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense — ) ) — ) Other income (expense), net ) — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) As of June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Assets Current assets: Cash and cash equivalents $ — $ $ $ — $ Accounts receivable, net — — — Inventories — — — Intercompany receivables ) — Prepaid expenses and other current assets — Deferred income taxes — — — Assets held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Receivable from Tyco International plc and Covidien plc — — — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities: Current maturities of long-term debt $ — $ $ $ — $ Accounts payable — — Accrued and other current liabilities — Deferred revenue — — — Intercompany payables — ) — Liabilities held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt — — Intercompany loans payable ) — Long-term pension and postretirement liabilities — — — Deferred income taxes — — — Income taxes — — — Other liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) As of September 26, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Assets Current assets: Cash and cash equivalents $ — $ $ $ — $ Accounts receivable, net — — — Inventories — — — Intercompany receivables ) — Prepaid expenses and other current assets — Deferred income taxes — — — Assets held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Receivable from Tyco International plc and Covidien plc — — — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities: Current maturities of long-term debt $ — $ $ — $ — $ Accounts payable — — Accrued and other current liabilities — Deferred revenue — — — Intercompany payables — ) — Liabilities held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt — — — Intercompany loans payable ) — Long-term pension and postretirement liabilities — — — Deferred income taxes — — — Income taxes — — — Other liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — Net decrease in commercial paper — ) — — ) Proceeds from issuance of long-term debt — — — Repayment of long-term debt — ) ) — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with affiliates — ) — Transfers from discontinued operations — — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase (decrease) in cash and cash equivalents — ) — ) Cash and cash equivalents at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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 Nine Months Ended June 27, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities (1) $ ) $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Intercompany distribution receipts (1) — — ) — Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — Net increase in commercial paper — — — Proceeds from issuance of long-term debt — — — Repayment of long-term debt — ) ) — ) Proceeds from exercise of share options — — — Repurchase of common shares — — ) — ) Payment of common share dividends to shareholders ) — — ) Intercompany distributions (1) — — ) — Loan activity with affiliates — ) — Transfers from discontinued operations — — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During the first nine months of fiscal 2014, other subsidiaries made distributions to TEGSA in the amount of $1,833 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 Charg27
Restructuring and Other Charges, Net (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Restructuring and Other Charges, Net | |
Schedule of restructuring and other charges | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Restructuring charges, net $ $ $ $ Other charges (credits), net (1) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In fiscal 2015, net other charges primarily consisted of charges incurred in connection with the pending sale of our Broadband Network Solutions ("BNS") business. See Note 3 for additional information. |
Net restructuring charges by segment | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions — Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of activity in restructuring reserves | Balance at September 26, 2014 Charges Changes in Estimate Cash Payments Non-Cash Items Currency Translation Balance at June 26, 2015 (in millions) Fiscal 2015 Actions: Employee severance $ — $ $ — $ ) $ — $ — $ Facility and other exit costs — — — — — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2014 Actions: Employee severance — — ) — ) Facility and other exit costs — — ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2014 Actions: Employee severance ) ) — ) Facility and other exit costs — ) — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring reserves included on Condensed Consolidated Balance Sheets | June 26, 2015 September 26, 2014 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Discontinued Operations. | |
Income (loss) from discontinued operations, net of income taxes and balance sheet information for assets and liabilities held for sale | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Net sales $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income (loss) from discontinued operations $ ) $ $ $ Income tax (expense) benefit ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations, net of income taxes $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 26, 2015 September 26, 2014 (in millions) Accounts receivable, net $ $ Inventories Property, plant, and equipment, net Goodwill Intangible assets, net Other assets ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current maturities of long-term debt $ $ Accounts payable Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisitions (Tables)
Acquisitions (Tables) - Measurement Specialties | 9 Months Ended |
Jun. 26, 2015 | |
Business acquisition information | |
Allocation of purchase price to the fair value of identifiable assets acquired and liabilities assumed | (in millions) Cash and cash equivalents $ Accounts receivable Inventories Other current assets Property, plant, and equipment Goodwill Intangible assets Other non-current assets ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Current maturities of long-term debt Accounts payable Other current liabilities Long-term debt Deferred income taxes Other non-current liabilities ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net assets acquired Cash and cash equivalents acquired ) ​ ​ ​ ​ ​ Net cash paid $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Intangible assets acquired | Amount Weighted-Average Amortization Period (in millions) (in years) Customer relationships $ Developed technology Trade names and trademarks Customer order backlog <1 ​ ​ ​ ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Pro forma financial information | Pro Forma for the Quarters Ended Pro Forma for the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions, except per share data) Net sales $ $ $ $ Net income attributable to TE Connectivity Ltd. Diluted earnings per share attributable to TE Connectivity Ltd. $ $ $ $ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Inventories. | |
Schedule of inventories | June 26, 2015 September 26, 2014 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Goodwill | |
Changes in the carrying amount of goodwill by segment | Transportation Solutions Industrial Solutions Communications Solutions Total (in millions) September 26, 2014 (2) $ $ $ $ Acquisitions — Currency translation ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 26, 2015 (2) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In connection with the realignment of certain businesses during fiscal 2015, goodwill was re-allocated to reporting units using a relative fair value approach. See Note 1 for additional information regarding our current segment structure. (2) At June 26, 2015 and September 26, 2014, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $1,626 million, respectively. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | June 26, 2015 September 26, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Intellectual property $ $ ) $ $ $ ) $ Customer relationships ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of finite-lived intangible assets, future amortization expense | (in millions) Remainder of fiscal 2015 $ Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Retirement Plans | |
Net periodic pension benefit cost | U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Other — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Plans Non-U.S. Plans For the Nine Months Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Other — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Earnings Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Equity | |
Schedule of common shares repurchased | For the Nine Months Ended June 26, 2015 June 27, 2014 (in millions) Number of common shares repurchased Amount repurchased $ $ |
Share Plans (Tables)
Share Plans (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Share Plans | |
Share-based compensation expense | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Share-based compensation expense $ $ $ $ |
Summary of equity award activity | Shares Weighted- Average Grant-Date Fair Value (in millions) Share options $ Restricted share awards Performance share awards |
Weighted-average assumptions | Expected share price volatility % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Segment Data | |
Schedule of net sales by segment | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. |
Schedule of operating income by segment | For the Quarters Ended For the Nine Months Ended June 26, 2015 June 27, 2014 June 26, 2015 June 27, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment assets and a reconciliation of segment assets to total assets | June 26, 2015 September 26, 2014 (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total segment assets (1) Other current assets Other non-current assets ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Segment assets are composed of accounts receivable, inventories, and property, plant, and equipment. |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 9 Months Ended |
Jun. 26, 2015 | |
Tyco Electronics Group S.A. | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses (1) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense, net — ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Loss from discontinued operations, net of income taxes — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA's selling, general, and administrative expenses include losses of $18 million related to intercompany transactions. These losses are offset by corresponding gains recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended June 27, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense, net — ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses (1) ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other expense, net — — ) — ) Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA's selling, general, and administrative expenses include gains of $105 million related to intercompany transactions. These gains are offset by corresponding losses recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 27, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense — ) ) — ) Other income (expense), net ) — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet (UNAUDITED) As of June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Assets Current assets: Cash and cash equivalents $ — $ $ $ — $ Accounts receivable, net — — — Inventories — — — Intercompany receivables ) — Prepaid expenses and other current assets — Deferred income taxes — — — Assets held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Receivable from Tyco International plc and Covidien plc — — — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities: Current maturities of long-term debt $ — $ $ $ — $ Accounts payable — — Accrued and other current liabilities — Deferred revenue — — — Intercompany payables — ) — Liabilities held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt — — Intercompany loans payable ) — Long-term pension and postretirement liabilities — — — Deferred income taxes — — — Income taxes — — — Other liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) As of September 26, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Assets Current assets: Cash and cash equivalents $ — $ $ $ — $ Accounts receivable, net — — — Inventories — — — Intercompany receivables ) — Prepaid expenses and other current assets — Deferred income taxes — — — Assets held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Receivable from Tyco International plc and Covidien plc — — — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity Current liabilities: Current maturities of long-term debt $ — $ $ — $ — $ Accounts payable — — Accrued and other current liabilities — Deferred revenue — — — Intercompany payables — ) — Liabilities held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt — — — Intercompany loans payable ) — Long-term pension and postretirement liabilities — — — Deferred income taxes — — — Income taxes — — — Other liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — Net decrease in commercial paper — ) — — ) Proceeds from issuance of long-term debt — — — Repayment of long-term debt — ) ) — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with affiliates — ) — Transfers from discontinued operations — — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase (decrease) in cash and cash equivalents — ) — ) Cash and cash equivalents at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (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 Nine Months Ended June 27, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities (1) $ ) $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Intercompany distribution receipts (1) — — ) — Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — Net increase in commercial paper — — — Proceeds from issuance of long-term debt — — — Repayment of long-term debt — ) ) — ) Proceeds from exercise of share options — — — Repurchase of common shares — — ) — ) Payment of common share dividends to shareholders ) — — ) Intercompany distributions (1) — — ) — Loan activity with affiliates — ) — Transfers from discontinued operations — — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During the first nine months of fiscal 2014, other subsidiaries made distributions to TEGSA in the amount of $1,833 million. Cash flows are presented based upon the nature of the distribution. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Restructuring and Other Charg39
Restructuring and Other Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
Restructuring and other charges, net: | ||||
Restructuring charges, net | $ 4 | $ 13 | $ 65 | $ 18 |
Other charges (credits), net | 15 | (3) | 17 | (3) |
Restructuring and other charges, net | 19 | 10 | 82 | 15 |
Transportation Solutions | ||||
Restructuring and other charges, net: | ||||
Restructuring charges, net | 1 | 3 | 3 | 3 |
Industrial Solutions | ||||
Restructuring and other charges, net: | ||||
Restructuring charges, net | 2 | 19 | 6 | |
Communications Solutions | ||||
Restructuring and other charges, net: | ||||
Restructuring charges, net | $ 1 | $ 10 | $ 43 | $ 9 |
Restructuring and Other Charg40
Restructuring and Other Charges, Net (Details 2) $ in Millions | 9 Months Ended |
Jun. 26, 2015USD ($) | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 114 |
Charges | 66 |
Changes in Estimate | (1) |
Cash Payments | (72) |
Non-Cash Items | (15) |
Currency Translation | (8) |
Restructuring reserve at the end of the period | 84 |
Fiscal 2015 Actions | |
Restructuring reserve | |
Charges | 62 |
Cash Payments | (13) |
Non-Cash Items | (14) |
Restructuring reserve at the end of the period | 35 |
Fiscal 2014 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 17 |
Cash Payments | (8) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 8 |
Pre-Fiscal 2014 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 97 |
Charges | 4 |
Changes in Estimate | (1) |
Cash Payments | (51) |
Non-Cash Items | (1) |
Currency Translation | (7) |
Restructuring reserve at the end of the period | 41 |
Employee severance | Fiscal 2015 Actions | |
Restructuring reserve | |
Charges | 47 |
Cash Payments | (13) |
Restructuring reserve at the end of the period | 34 |
Employee severance | Fiscal 2014 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 16 |
Cash Payments | (7) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 8 |
Employee severance | Pre-Fiscal 2014 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 75 |
Charges | 2 |
Changes in Estimate | (1) |
Cash Payments | (42) |
Currency Translation | (8) |
Restructuring reserve at the end of the period | 26 |
Facility and other exit costs | Fiscal 2015 Actions | |
Restructuring reserve | |
Charges | 1 |
Restructuring reserve at the end of the period | 1 |
Facility and other exit costs | Fiscal 2014 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 1 |
Cash Payments | (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 | (9) |
Currency Translation | 1 |
Restructuring reserve at the end of the period | 15 |
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 Charg41
Restructuring and Other Charges, Net (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | Sep. 26, 2014 | |
Restructuring Charges | |||||
Charges Incurred | $ 4 | $ 13 | $ 65 | $ 18 | |
Accrued and other current liabilities | 55 | 55 | $ 83 | ||
Other liabilities | 29 | 29 | 31 | ||
Restructuring reserves | 84 | 84 | 114 | ||
Transportation Solutions | |||||
Restructuring Charges | |||||
Charges Incurred | 1 | 3 | 3 | 3 | |
Industrial Solutions | |||||
Restructuring Charges | |||||
Charges Incurred | 2 | 19 | 6 | ||
Communications Solutions | |||||
Restructuring Charges | |||||
Charges Incurred | 1 | $ 10 | 43 | 9 | |
Fiscal 2015 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 67 | 67 | |||
Charges Incurred | 62 | ||||
Restructuring reserves | 35 | 35 | |||
Fiscal 2014 Actions | |||||
Restructuring Charges | |||||
Charges Incurred | $ 18 | ||||
Restructuring reserves | 8 | 8 | 17 | ||
Pre-Fiscal 2014 Actions | |||||
Restructuring Charges | |||||
Charges Incurred | 3 | ||||
Restructuring reserves | 41 | 41 | 97 | ||
Employee severance | Fiscal 2015 Actions | |||||
Restructuring Charges | |||||
Restructuring reserves | 34 | 34 | |||
Employee severance | Fiscal 2014 Actions | |||||
Restructuring Charges | |||||
Restructuring reserves | 8 | 8 | 16 | ||
Employee severance | Pre-Fiscal 2014 Actions | |||||
Restructuring Charges | |||||
Restructuring reserves | 26 | 26 | 75 | ||
Facility and other exit costs | Fiscal 2015 Actions | |||||
Restructuring Charges | |||||
Restructuring reserves | 1 | 1 | |||
Facility and other exit costs | Fiscal 2014 Actions | |||||
Restructuring Charges | |||||
Restructuring reserves | 1 | ||||
Facility and other exit costs | Pre-Fiscal 2014 Actions | |||||
Restructuring Charges | |||||
Restructuring reserves | $ 15 | $ 15 | $ 22 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | Jan. 27, 2015 | Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | Sep. 26, 2014 |
Divestiture of business | ||||||
Income (loss) from discontinued operations, net of income taxes | $ (42) | $ 56 | $ 278 | $ 118 | ||
Broadband Network Solutions | ||||||
Divestiture of business | ||||||
Net proceeds from divestiture of discontinued operations | $ 3,000 | |||||
Net sales | 471 | 505 | 1,313 | 1,436 | ||
Pre-tax income (loss) from discontinued operations | (37) | 68 | 69 | 161 | ||
Income tax (expense) benefit | (5) | (12) | 209 | (43) | ||
Income (loss) from discontinued operations, net of income taxes | (42) | $ 56 | 278 | $ 118 | ||
Balance sheet information for assets and liabilities held for sale | ||||||
Accounts receivable, net | 352 | 352 | $ 382 | |||
Inventories | 210 | 210 | 236 | |||
Property, plant, and equipment, net | 199 | 199 | 206 | |||
Goodwill | 860 | 860 | 869 | |||
Intangible assets, net | 227 | 227 | 242 | |||
Other assets | 49 | 49 | 78 | |||
Total assets | 1,897 | 1,897 | 2,013 | |||
Current maturities of long-term debt | 89 | 89 | 90 | |||
Accounts payable | 141 | 141 | 161 | |||
Other liabilities | 135 | 135 | 165 | |||
Total liabilities | 365 | $ 365 | $ 416 | |||
Com-Net | ||||||
Divestiture of business | ||||||
Loss Contingency Accrual, Provision | $ 126 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | Oct. 09, 2014USD ($)$ / shares | Jun. 26, 2015USD ($)$ / shares | Jun. 27, 2014USD ($)$ / shares | Jun. 26, 2015USD ($)item$ / shares | Jun. 26, 2015USD ($) | Jun. 27, 2014USD ($)$ / shares | Sep. 26, 2014USD ($) |
Acquisition | |||||||
Net cash paid | $ 1,726 | $ 18 | |||||
Allocation of the purchase price | |||||||
Goodwill | $ 4,841 | 4,841 | $ 4,841 | $ 3,726 | |||
Net cash paid | 1,726 | 18 | |||||
Net sales | 3,118 | $ 3,075 | 9,249 | 8,901 | |||
Measurement Specialties | |||||||
Acquisition | |||||||
Percentage of voting interest acquired | 100.00% | ||||||
Total transaction value | $ 1,700 | ||||||
Per share value of the purchase (in dollars per share) | $ / shares | $ 86 | ||||||
Repayment of debt and accrued interest | $ 225 | ||||||
Net cash paid | 1,484 | ||||||
Allocation of the purchase price | |||||||
Cash and cash equivalents | 37 | ||||||
Trade accounts receivable | 84 | ||||||
Inventories | 110 | ||||||
Other current assets | 20 | ||||||
Property, plant, and equipment | 95 | ||||||
Goodwill | 1,066 | ||||||
Intangible assets | 547 | ||||||
Other non-current assets | 9 | ||||||
Total assets acquired | 1,968 | ||||||
Current maturities of long-term debt | 20 | ||||||
Trade accounts payable | 48 | ||||||
Other current liabilities | 66 | ||||||
Long-term Debt | 203 | ||||||
Deferred income taxes | 101 | ||||||
Other non-current liabilities | 9 | ||||||
Total liabilities assumed | 447 | ||||||
Net assets acquired | 1,521 | ||||||
Cash and cash equivalents acquired | (37) | ||||||
Net cash paid | 1,484 | ||||||
Goodwill deductible from prior acquisitions | $ 23 | ||||||
Net sales | 143 | $ 406 | |||||
Pro forma financial information | |||||||
Net sales | 3,118 | 3,189 | 9,268 | 9,224 | |||
Net income attributable to TE Connectivity Ltd. | $ 309 | $ 395 | $ 1,404 | $ 1,091 | |||
Diluted earnings per common share attributable to TE Connectivity Ltd | $ / shares | $ 0.75 | $ 0.95 | $ 3.40 | $ 2.62 | |||
Acquisition costs | $ 16 | ||||||
Fair value adjustment to acquisition-date inventories | 11 | $ (11) | |||||
Amortization of the fair value of acquired intangible assets | $ 1 | $ (5) | 1 | (16) | |||
Adjustments to income tax expense based on changes in our global tax position | $ (1) | 7 | (1) | ||||
Fair value adjustments related to acquired customer order backlog | 7 | (7) | |||||
Interest expense based on changes in capital structure | (3) | (2) | (10) | ||||
Share-based compensation expense | $ 15 | ||||||
Charges related to depreciation expense | $ (1) | $ (1) | |||||
Other Acquisitions | |||||||
Acquisition | |||||||
Number of additional companies acquired | item | 3 | ||||||
Net cash paid | $ 242 | ||||||
Allocation of the purchase price | |||||||
Net cash paid | $ 242 |
Acquisitions (Details 2)
Acquisitions (Details 2) - Oct. 09, 2014 - Measurement Specialties - USD ($) $ in Millions | Total |
Intangible assets acquired | |
Intangible assets acquired, fair value amount | $ 547 |
Intangible assets acquired, Weighted-Average Amortization Period | 15 years |
Customer relationships | |
Intangible assets acquired | |
Intangible assets acquired, fair value amount | $ 370 |
Intangible assets acquired, Weighted-Average Amortization Period | 18 years |
Developed technology | |
Intangible assets acquired | |
Intangible assets acquired, fair value amount | $ 161 |
Intangible assets acquired, Weighted-Average Amortization Period | 9 years |
Trade names and trademarks | |
Intangible assets acquired | |
Intangible assets acquired, fair value amount | $ 4 |
Intangible assets acquired, Weighted-Average Amortization Period | 1 year |
Customer order backlog | |
Intangible assets acquired | |
Intangible assets acquired, fair value amount | $ 12 |
Customer order backlog | Maximum | |
Intangible assets acquired | |
Intangible assets acquired, Weighted-Average Amortization Period | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 26, 2015 | Sep. 26, 2014 |
Inventories | ||
Raw materials | $ 277 | $ 211 |
Work in progress | 628 | 562 |
Finished goods | 812 | 736 |
Inventories | $ 1,717 | $ 1,509 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Oct. 09, 2014 | Jun. 26, 2015 | Sep. 26, 2014 |
Goodwill: | |||
Goodwill, beginning balance | $ 3,726 | ||
Acquisitions | 1,213 | ||
Currency translation | (98) | ||
Goodwill, ending balance | 4,841 | ||
Measurement Specialties | |||
Goodwill: | |||
Goodwill, ending balance | $ 1,066 | ||
Transportation Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 834 | ||
Acquisitions | 1,067 | ||
Currency translation | (31) | ||
Goodwill, ending balance | 1,870 | ||
Accumulated impairment losses | 2,191 | $ 2,191 | |
Transportation Solutions | Measurement Specialties | |||
Goodwill: | |||
Acquisitions | $ 1,066 | ||
Industrial Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 2,165 | ||
Acquisitions | 146 | ||
Currency translation | (50) | ||
Goodwill, ending balance | 2,261 | ||
Accumulated impairment losses | 669 | 669 | |
Communications Solutions | |||
Goodwill: | |||
Goodwill, beginning balance | 727 | ||
Currency translation | (17) | ||
Goodwill, ending balance | 710 | ||
Accumulated impairment losses | $ 1,626 | $ 1,626 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | Oct. 09, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | Sep. 26, 2014 |
Finite-Lived Intangible Assets | ||||||
Gross Carrying Amount | $ 2,258 | $ 2,258 | $ 1,635 | |||
Accumulated Amortization | (661) | (661) | (548) | |||
Net Carrying Amount | 1,597 | 1,597 | 1,087 | |||
Finite-lived intangible assets, amortization expense | 37 | $ 20 | 117 | $ 60 | ||
Aggregate amortization expense on intangible assets | ||||||
Remainder of fiscal 2015 | 35 | 35 | ||||
Fiscal 2,016 | 140 | 140 | ||||
Fiscal 2,017 | 137 | 137 | ||||
Fiscal 2,018 | 136 | 136 | ||||
Fiscal 2,019 | 135 | 135 | ||||
Fiscal 2,020 | 132 | 132 | ||||
Thereafter | 882 | 882 | ||||
Intellectual property | ||||||
Finite-Lived Intangible Assets | ||||||
Gross Carrying Amount | 1,152 | 1,152 | 986 | |||
Accumulated Amortization | (506) | (506) | (453) | |||
Net Carrying Amount | 646 | 646 | 533 | |||
Customer relationships | ||||||
Finite-Lived Intangible Assets | ||||||
Gross Carrying Amount | 1,068 | 1,068 | 614 | |||
Accumulated Amortization | (142) | (142) | (83) | |||
Net Carrying Amount | 926 | 926 | 531 | |||
Other. | ||||||
Finite-Lived Intangible Assets | ||||||
Gross Carrying Amount | 38 | 38 | 35 | |||
Accumulated Amortization | (13) | (13) | (12) | |||
Net Carrying Amount | $ 25 | $ 25 | $ 23 | |||
Measurement Specialties | ||||||
Finite-Lived Intangible Assets | ||||||
Finite-lived intangible assets acquired | $ 547 |
Debt (Details)
Debt (Details) € in Millions, $ in Millions | 1 Months Ended | |||
Feb. 28, 2015USD ($) | Jun. 26, 2015USD ($) | Feb. 28, 2015EUR (€) | Sep. 26, 2014USD ($) | |
Current maturities of long-term debt: | ||||
Current maturities of long-term debt | $ 631 | $ 577 | ||
Debt | ||||
Ownership percentage in TEGSA | 100.00% | |||
Fair value of debt | $ 4,294 | 4,125 | ||
1.60% senior notes due 2015 | ||||
Debt | ||||
Repayments of Debt | $ 250 | |||
Debt instrument, interest rate (as a percent) | 1.60% | 1.60% | ||
Commercial paper | ||||
Current maturities of long-term debt: | ||||
Current maturities of long-term debt | $ 130 | $ 327 | ||
Debt | ||||
Debt instrument, weighted-average interest rate at period end (as a percent) | 0.43% | 0.30% | ||
Floating rate senior notes due 2016 | ||||
Debt | ||||
Long-term debt reclassified to current maturities of long-term debt | $ 500 | |||
Foreign Exchange | 1.100% senior notes due 2023 | ||||
Debt | ||||
Debt instrument principal amount | $ 617 | € 550 | ||
Exchange rate (in dollars per Euro) | 1.12 | 1.12 | ||
Debt instrument, interest rate (as a percent) | 1.10% | 1.10% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 26, 2015 | 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 | $ 32 | $ 29 |
Tax Sharing Agreement | ||
Guarantee Obligations: | ||
Guarantee obligations, current carrying value | 17 | $ 21 |
Outstanding Letters of Credit, Letters of Guarantee, and Surety Bonds | ||
Guarantee Obligations: | ||
Guarantor obligations, maximum exposure | $ 369 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jul. 13, 2015 | Jun. 26, 2015 | Jun. 26, 2015 | Jun. 27, 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 | $ 202 | ||||
Other nonoperating expense, settlement of certain U.S. tax matters | 89 | ||||
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 | 2,700 | |||
Additional disallowance related to interest deductions on Tyco International's U.S. income tax returns for intercompany loans subsequent to fiscal 2000 | 6,600 | 6,600 | |||
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 | 2,900 | |||
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 | 778 | |||
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 | 154 | |||
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 | 105 | |||
Additional tax deficiency relating to the Final Partnership Administrative Adjustments | 30 | 30 | |||
Net cash payments made (received) related to pre-separation tax matters | 23 | $ 179 | |||
Expected net cash payments (receipts) next twelve months attributable to preseparation tax matters. | 18 | 18 | |||
Liabilities related to the audits of Tyco International and our income tax returns | 20 | 20 | $ 51 | ||
Environmental matters | |||||
Loss Contingencies | |||||
Loss contingency, range of possible loss, minimum | 17 | 17 | |||
Loss contingency, range of possible loss, maximum | 38 | 38 | |||
Loss contingency, estimate of probable loss | 20 | 20 | |||
Com-Net | |||||
Loss Contingencies | |||||
Loss contingency, range of possible loss, maximum | 80 | $ 80 | |||
Loss Contingency, purchase price plus interest and costs | $ 126 | ||||
Loss Contingency Accrual, Provision | $ 126 |
Financial Instruments (Details)
Financial Instruments (Details) - Trading Activity, by Type [Domain] € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 26, 2015USD ($) | Jun. 26, 2015USD ($) | Sep. 26, 2014USD ($) | Jun. 26, 2015EUR (€) | |
Net investment hedges | ||||
Financial Instruments | ||||
Notional amount of nonderivative instruments | $ 4,331 | $ 2,893 | ||
Foreign exchange (losses) gains recorded as currency translation | $ (53) | $ 359 | ||
Cash flow hedges | Cross Currency Interest Rate Contract | ||||
Financial Instruments | ||||
Notional amount | € | € 600 | |||
Quarterly interest payments in euro, fixed interest rate | 3.50% | |||
Interest received in U.S. dollars, average fixed interest rate | 5.36% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||||
Service cost | $ 2 | $ 2 | $ 7 | $ 6 |
Interest cost | 12 | 13 | 36 | 38 |
Expected return on plan assets | (17) | (16) | (51) | (48) |
Amortization of net actuarial loss | 6 | 6 | 19 | 18 |
Net periodic pension benefit cost | 3 | 5 | 11 | 14 |
Non-U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||||
Service cost | 12 | 12 | 37 | 35 |
Interest cost | 15 | 17 | 46 | 52 |
Expected return on plan assets | (19) | (17) | (57) | (50) |
Amortization of net actuarial loss | 9 | 6 | 27 | 18 |
Other | (1) | (1) | (4) | (3) |
Net periodic pension benefit cost | $ 16 | $ 17 | 49 | $ 52 |
Plan Contributions | ||||
Defined benefit plan, contributions by employer | $ 46 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | Sep. 26, 2014 | |
Income Taxes | |||||
Income tax expense | $ 100 | $ 102 | $ 85 | $ 331 | |
Income tax benefit associated with settlement of certain U.S. tax matters | 202 | ||||
Income tax penalties and interest accrued | 1,069 | 1,069 | $ 1,136 | ||
Income tax penalties and interest accrued, location income taxes | 1,062 | 1,062 | $ 1,115 | ||
Income tax penalties and interest expense (benefit) | (14) | ||||
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $ 70 | $ 70 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
Other Income (Expense), Net | ||||
Other income (expense), net | $ 11 | $ 9 | $ (64) | $ 57 |
Other nonoperating expense, settlement of certain U.S. tax matters | $ 89 | |||
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) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
Earnings Per Share | ||||
Basic (in shares) | 406 | 409 | 407 | 410 |
Dilutive impact of share-based compensation arrangements (in shares) | 6 | 7 | 6 | 7 |
Diluted (in shares) | 412 | 416 | 413 | 417 |
Share options | ||||
Antidilutive shares excluded from computation of earnings per share | ||||
Antidilutive shares excluded from computation of earnings per share | 1 |
Equity (Details)
Equity (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
May. 31, 2015shares | Mar. 31, 2015SFr / shares | Mar. 31, 2015$ / shares | Jun. 26, 2015USD ($)item$ / shares | Mar. 27, 2015USD ($)$ / shares | Dec. 26, 2014$ / shares | Jun. 27, 2014$ / shares | Jun. 26, 2015USD ($)item$ / sharesshares | Jun. 27, 2014USD ($)$ / sharesshares | Sep. 26, 2014USD ($) | |
Equity | ||||||||||
Cancellation of treasury shares (in shares) | shares | 5 | |||||||||
Cash dividend paid (in dollars per share) | $ / shares | $ 0.33 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.91 | $ 0.79 | ||||
Dividend or cash distribution approved (in currency per share) | (per share) | SFr 1.33 | $ 1.32 | ||||||||
Number of quarterly dividend installments | item | 4 | 4 | ||||||||
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $ 400 | $ 400 | $ 236 | |||||||
Share repurchase program, increase in authorized amount | $ 3,000 | |||||||||
Number of common shares repurchased | shares | 8 | 8 | ||||||||
Amount repurchased | $ 536 | $ 441 | ||||||||
Amount available for repurchase, at end of period | $ 3,300 | $ 3,300 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 26, 2015 | Dec. 26, 2014 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
Share Based Compensation Arrangements: | |||||
Share-based compensation expenses | $ 21 | $ 18 | $ 65 | $ 58 | |
Shares available for issuance | 19 | 19 | |||
Share Based Compensation Expenses Not Recognized | |||||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 160 | $ 160 | |||
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 1 year 8 months 12 days | ||||
Share options | |||||
Share Based Compensation Arrangements: | |||||
Share options granted | 1.7 | ||||
Options granted, weighted-average grant-date fair value (in dollars per share) | $ 18.82 | ||||
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 | ||||
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) - Entity [Domain] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | Sep. 26, 2014 | |
Segment Data | |||||
Net sales | $ 3,118 | $ 3,075 | $ 9,249 | $ 8,901 | |
Assets | 20,441 | 20,441 | $ 20,152 | ||
Operating income | 469 | 464 | 1,342 | 1,354 | |
Other non-current assets | 326 | 326 | 456 | ||
Transportation Solutions | |||||
Segment Data | |||||
Net sales | 1,621 | 1,586 | 4,843 | 4,597 | |
Assets | 3,399 | 3,399 | 3,062 | ||
Operating income | 303 | 325 | 921 | 948 | |
Industrial Solutions | |||||
Segment Data | |||||
Net sales | 806 | 849 | 2,387 | 2,401 | |
Assets | 1,733 | 1,733 | 1,735 | ||
Operating income | 98 | 121 | 268 | 318 | |
Communications Solutions | |||||
Segment Data | |||||
Net sales | 691 | 640 | 2,019 | 1,903 | |
Assets | 1,695 | 1,695 | 1,689 | ||
Operating income | 68 | $ 18 | 153 | $ 88 | |
Reconciling items | |||||
Segment Data | |||||
Other current assets | 3,834 | 3,834 | 5,313 | ||
Other non-current assets | 9,780 | 9,780 | 8,353 | ||
Total segment assets | |||||
Segment Data | |||||
Assets | $ 6,827 | $ 6,827 | $ 6,486 |
Tyco Electronics Group S.A. (De
Tyco Electronics Group S.A. (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 26, 2015 | Jun. 27, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
Tyco Electronics Group S.A. | ||||
Ownership percentage in TEGSA | 100.00% | 100.00% | ||
Statement of Operations Detail: | ||||
Net sales | $ 3,118 | $ 3,075 | $ 9,249 | $ 8,901 |
Cost of sales | 2,070 | 2,057 | 6,130 | 5,943 |
Gross margin | 1,048 | 1,018 | 3,119 | 2,958 |
Selling, general, and administrative expenses | 393 | 396 | 1,170 | 1,154 |
Research, development, and engineering expenses | 159 | 147 | 479 | 433 |
Acquisition and integration costs | 8 | 1 | 46 | 2 |
Restructuring and other charges, net | 19 | 10 | 82 | 15 |
Operating income | 469 | 464 | 1,342 | 1,354 |
Interest income | 4 | 4 | 13 | 13 |
Interest expense, net | (33) | (28) | (104) | (93) |
Other income (expense), net | 11 | 9 | (64) | 57 |
Income from continuing operations before income taxes | 451 | 449 | 1,187 | 1,331 |
Income tax expense | (100) | (102) | (85) | (331) |
Income from continuing operations | 351 | 347 | 1,102 | 1,000 |
Income (loss) from discontinued operations, net of income taxes | (42) | 56 | 278 | 118 |
Net income | 309 | 403 | 1,380 | 1,118 |
Other comprehensive income (loss) | 43 | 39 | (356) | 54 |
Comprehensive income attributable to TE Connectivity Ltd. | 352 | 442 | 1,024 | 1,172 |
Consolidating Adjustments | ||||
Statement of Operations Detail: | ||||
Equity in net income of subsidiaries | (844) | (770) | (2,384) | (2,255) |
Equity in net income (loss) of subsidiaries of discontinued operations | 84 | (112) | (556) | (236) |
Income from continuing operations before income taxes | (760) | (882) | (2,940) | (2,491) |
Income from continuing operations | (760) | (882) | (2,940) | (2,491) |
Net income | (760) | (882) | (2,940) | (2,491) |
Other comprehensive income (loss) | (84) | (75) | 718 | (101) |
Comprehensive income attributable to TE Connectivity Ltd. | (844) | (957) | (2,222) | (2,592) |
TE Connectivity Ltd. | Reportable entities | ||||
Statement of Operations Detail: | ||||
Selling, general, and administrative expenses | 52 | 30 | 130 | 118 |
Operating income | (52) | (30) | (130) | (118) |
Other income (expense), net | 18 | |||
Equity in net income of subsidiaries | 403 | 378 | 1,228 | 1,102 |
Equity in net income (loss) of subsidiaries of discontinued operations | (42) | 56 | 278 | 118 |
Intercompany interest income (expense), net | (1) | 4 | (2) | |
Income from continuing operations before income taxes | 309 | 403 | 1,380 | 1,118 |
Income from continuing operations | 309 | 403 | 1,380 | 1,118 |
Net income | 309 | 403 | 1,380 | 1,118 |
Other comprehensive income (loss) | 43 | 39 | (356) | 54 |
Comprehensive income attributable to TE Connectivity Ltd. | 352 | 442 | 1,024 | 1,172 |
TEGSA | Reportable entities | ||||
Statement of Operations Detail: | ||||
Selling, general, and administrative expenses | 17 | 2 | (138) | 3 |
Operating income | (17) | (2) | 138 | (3) |
Interest expense, net | (34) | (29) | (104) | (91) |
Other income (expense), net | (3) | |||
Equity in net income of subsidiaries | 441 | 392 | 1,156 | 1,153 |
Equity in net income (loss) of subsidiaries of discontinued operations | (42) | 56 | 278 | 118 |
Intercompany interest income (expense), net | 13 | 17 | 38 | 46 |
Income from continuing operations before income taxes | 361 | 434 | 1,506 | 1,220 |
Income from continuing operations | 361 | 434 | 1,506 | 1,220 |
Net income | 361 | 434 | 1,506 | 1,220 |
Other comprehensive income (loss) | 43 | 39 | (356) | 54 |
Comprehensive income attributable to TE Connectivity Ltd. | 404 | 473 | 1,150 | 1,274 |
Intercompany transactions gains | 18 | 105 | ||
Other Subsidiaries | Reportable entities | ||||
Statement of Operations Detail: | ||||
Net sales | 3,118 | 3,075 | 9,249 | 8,901 |
Cost of sales | 2,070 | 2,057 | 6,130 | 5,943 |
Gross margin | 1,048 | 1,018 | 3,119 | 2,958 |
Selling, general, and administrative expenses | 324 | 364 | 1,178 | 1,033 |
Research, development, and engineering expenses | 159 | 147 | 479 | 433 |
Acquisition and integration costs | 8 | 1 | 46 | 2 |
Restructuring and other charges, net | 19 | 10 | 82 | 15 |
Operating income | 538 | 496 | 1,334 | 1,475 |
Interest income | 4 | 4 | 13 | 13 |
Interest expense, net | 1 | 1 | (2) | |
Other income (expense), net | 11 | 9 | (64) | 42 |
Intercompany interest income (expense), net | (13) | (16) | (42) | (44) |
Income from continuing operations before income taxes | 541 | 494 | 1,241 | 1,484 |
Income tax expense | (100) | (102) | (85) | (331) |
Income from continuing operations | 441 | 392 | 1,156 | 1,153 |
Income (loss) from discontinued operations, net of income taxes | (42) | 56 | 278 | 118 |
Net income | 399 | 448 | 1,434 | 1,271 |
Other comprehensive income (loss) | 41 | 36 | (362) | 47 |
Comprehensive income attributable to TE Connectivity Ltd. | $ 440 | $ 484 | $ 1,072 | $ 1,318 |
Tyco Electronics Group S.A. (60
Tyco Electronics Group S.A. (Details 2) - USD ($) $ in Millions | Jun. 26, 2015 | Sep. 26, 2014 | Jun. 27, 2014 | Sep. 27, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 701 | $ 2,457 | $ 1,613 | $ 1,403 |
Accounts receivable, net | 2,185 | 2,057 | ||
Inventories | 1,717 | 1,509 | ||
Prepaid expenses and other current assets | 617 | 519 | ||
Deferred income taxes | 619 | 324 | ||
Assets held for sale | 1,897 | 2,013 | ||
Total current assets | 7,736 | 8,879 | ||
Property, plant, and equipment, net | 2,925 | 2,920 | ||
Goodwill | 4,841 | 3,726 | ||
Intangible assets, net | 1,597 | 1,087 | ||
Deferred income taxes | 2,054 | 2,047 | ||
Receivable from Tyco International plc and Covidien plc | 962 | 1,037 | ||
Other assets | 326 | 456 | ||
Total Assets | 20,441 | 20,152 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 631 | 577 | ||
Accounts payable | 1,206 | 1,230 | ||
Accrued and other current liabilities | 1,660 | 1,594 | ||
Deferred revenue | 179 | 176 | ||
Liabilities held for sale | 365 | 416 | ||
Total current liabilities | 4,041 | 3,993 | ||
Long-term debt | 3,395 | 3,281 | ||
Long-term pension and postretirement liabilities | 1,192 | 1,280 | ||
Deferred income taxes | 299 | 229 | ||
Income taxes | 1,936 | 2,044 | ||
Other liabilities | 443 | 312 | ||
Total Liabilities | 11,306 | 11,139 | ||
Total Equity | 9,135 | 9,013 | 8,848 | 8,386 |
Total Liabilities and Equity | 20,441 | 20,152 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (649) | (1,192) | ||
Total current assets | (649) | (1,192) | ||
Investment in subsidiaries | (29,581) | (28,568) | ||
Intercompany loans receivable | (10,993) | (12,063) | ||
Total Assets | (41,223) | (41,823) | ||
Current liabilities: | ||||
Intercompany payables | (649) | (1,192) | ||
Total current liabilities | (649) | (1,192) | ||
Intercompany loans payable | (10,993) | (12,063) | ||
Total Liabilities | (11,642) | (13,255) | ||
Total Equity | (29,581) | (28,568) | ||
Total Liabilities and Equity | (41,223) | (41,823) | ||
TE Connectivity Ltd. | Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 194 | 932 | ||
Prepaid expenses and other current assets | 7 | 6 | ||
Total current assets | 201 | 938 | ||
Investment in subsidiaries | 9,841 | 8,602 | ||
Intercompany loans receivable | 22 | 20 | ||
Total Assets | 10,064 | 9,560 | ||
Current liabilities: | ||||
Accounts payable | 3 | 1 | ||
Accrued and other current liabilities | 467 | 282 | ||
Intercompany payables | 455 | 260 | ||
Total current liabilities | 925 | 543 | ||
Intercompany loans payable | 4 | 4 | ||
Total Liabilities | 929 | 547 | ||
Total Equity | 9,135 | 9,013 | ||
Total Liabilities and Equity | 10,064 | 9,560 | ||
TEGSA | Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 2 | 1 | ||
Intercompany receivables | 422 | 230 | ||
Prepaid expenses and other current assets | 6 | 3 | ||
Total current assets | 430 | 234 | ||
Investment in subsidiaries | 19,740 | 19,966 | ||
Intercompany loans receivable | 2,336 | 2,160 | ||
Other assets | 31 | 30 | ||
Total Assets | 22,537 | 22,390 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 630 | 577 | ||
Accrued and other current liabilities | 41 | 50 | ||
Total current liabilities | 671 | 627 | ||
Long-term debt | 3,394 | 3,281 | ||
Intercompany loans payable | 8,631 | 9,880 | ||
Total Liabilities | 12,696 | 13,788 | ||
Total Equity | 9,841 | 8,602 | ||
Total Liabilities and Equity | 22,537 | 22,390 | ||
Other Subsidiaries | Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 699 | 2,456 | $ 1,613 | $ 1,403 |
Accounts receivable, net | 2,185 | 2,057 | ||
Inventories | 1,717 | 1,509 | ||
Intercompany receivables | 33 | 30 | ||
Prepaid expenses and other current assets | 604 | 510 | ||
Deferred income taxes | 619 | 324 | ||
Assets held for sale | 1,897 | 2,013 | ||
Total current assets | 7,754 | 8,899 | ||
Property, plant, and equipment, net | 2,925 | 2,920 | ||
Goodwill | 4,841 | 3,726 | ||
Intangible assets, net | 1,597 | 1,087 | ||
Deferred income taxes | 2,054 | 2,047 | ||
Intercompany loans receivable | 8,635 | 9,883 | ||
Receivable from Tyco International plc and Covidien plc | 962 | 1,037 | ||
Other assets | 295 | 426 | ||
Total Assets | 29,063 | 30,025 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 1 | |||
Accounts payable | 1,203 | 1,229 | ||
Accrued and other current liabilities | 1,152 | 1,262 | ||
Deferred revenue | 179 | 176 | ||
Intercompany payables | 194 | 932 | ||
Liabilities held for sale | 365 | 416 | ||
Total current liabilities | 3,094 | 4,015 | ||
Long-term debt | 1 | |||
Intercompany loans payable | 2,358 | 2,179 | ||
Long-term pension and postretirement liabilities | 1,192 | 1,280 | ||
Deferred income taxes | 299 | 229 | ||
Income taxes | 1,936 | 2,044 | ||
Other liabilities | 443 | 312 | ||
Total Liabilities | 9,323 | 10,059 | ||
Total Equity | 19,740 | 19,966 | ||
Total Liabilities and Equity | $ 29,063 | $ 30,025 |
Tyco Electronics Group S.A. (61
Tyco Electronics Group S.A. (Details 3) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 26, 2015 | Jun. 27, 2014 | |
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | $ 1,079 | $ 1,142 |
Net cash provided by discontinued operating activities | 210 | 192 |
Net cash provided by operating activities | 1,289 | 1,334 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (425) | (445) |
Proceeds from sale of property, plant, and equipment | 10 | 25 |
Acquisition of businesses, net of cash acquired | (1,726) | (18) |
Other | (2) | (4) |
Net cash used in continuing investing activities | (2,143) | (442) |
Net cash used in discontinued investing activities | (22) | (29) |
Net cash used in investing activities | (2,165) | (471) |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | (197) | 25 |
Proceeds from issuance of long-term debt | 617 | 323 |
Repayment of long-term debt | (473) | (360) |
Proceeds from exercise of share options | 97 | 140 |
Repurchase of common shares | (511) | (452) |
Payment of common share dividends to shareholders | (370) | (324) |
Transfers from discontinued operations | 188 | 163 |
Other | (2) | (2) |
Net cash used in continuing financing activities | (651) | (487) |
Net cash used in discontinued financing activities | (188) | (163) |
Net cash used in financing activities | (839) | (650) |
Effect of currency translation on cash | (41) | (3) |
Net increase (decrease) in cash and cash equivalents | (1,756) | 210 |
Cash and cash equivalents at beginning of period | 2,457 | 1,403 |
Cash and cash equivalents at end of period | 701 | 1,613 |
Consolidating Adjustments | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (1,830) | |
Net cash provided by operating activities | (1,830) | |
Cash Flows From Investing Activities: | ||
Intercompany distribution receipts | (3) | |
Change in intercompany loans | 1,617 | 1,816 |
Net cash used in continuing investing activities | 1,617 | 1,813 |
Net cash used in investing activities | 1,617 | 1,813 |
Cash Flows From Financing Activities: | ||
Intercompany distributions | 1,833 | |
Loan activity with affiliates | (1,617) | (1,816) |
Net cash used in continuing financing activities | (1,617) | 17 |
Net cash used in financing activities | (1,617) | 17 |
TE Connectivity Ltd. | Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (131) | (271) |
Net cash provided by operating activities | (131) | (271) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 86 | 36 |
Repurchase of common shares | (511) | |
Payment of common share dividends to shareholders | (375) | (331) |
Loan activity with affiliates | 931 | 566 |
Net cash used in continuing financing activities | 131 | 271 |
Net cash used in financing activities | 131 | 271 |
TEGSA | Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (45) | 1,770 |
Net cash provided by operating activities | (45) | 1,770 |
Cash Flows From Investing Activities: | ||
Intercompany distribution receipts | 3 | |
Change in intercompany loans | (1,617) | (1,816) |
Net cash used in continuing investing activities | (1,617) | (1,813) |
Net cash used in investing activities | (1,617) | (1,813) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 1,497 | 2 |
Net increase (decrease) in commercial paper | (197) | 25 |
Proceeds from issuance of long-term debt | 617 | 323 |
Repayment of long-term debt | (250) | (303) |
Other | (4) | (4) |
Net cash used in continuing financing activities | 1,663 | 43 |
Net cash used in financing activities | 1,663 | 43 |
Net increase (decrease) in cash and cash equivalents | 1 | |
Cash and cash equivalents at beginning of period | 1 | |
Cash and cash equivalents at end of period | 2 | |
Other Subsidiaries | Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 1,255 | 1,473 |
Net cash provided by discontinued operating activities | 210 | 192 |
Net cash provided by operating activities | 1,465 | 1,665 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (425) | (445) |
Proceeds from sale of property, plant, and equipment | 10 | 25 |
Acquisition of businesses, net of cash acquired | (1,726) | (18) |
Other | (2) | (4) |
Net cash used in continuing investing activities | (2,143) | (442) |
Net cash used in discontinued investing activities | (22) | (29) |
Net cash used in investing activities | (2,165) | (471) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | (1,583) | (38) |
Repayment of long-term debt | (223) | (57) |
Proceeds from exercise of share options | 97 | 140 |
Repurchase of common shares | (452) | |
Payment of common share dividends to shareholders | 5 | 7 |
Intercompany distributions | (1,833) | |
Loan activity with affiliates | 686 | 1,250 |
Transfers from discontinued operations | 188 | 163 |
Other | 2 | 2 |
Net cash used in continuing financing activities | (828) | (818) |
Net cash used in discontinued financing activities | (188) | (163) |
Net cash used in financing activities | (1,016) | (981) |
Effect of currency translation on cash | (41) | (3) |
Net increase (decrease) in cash and cash equivalents | (1,757) | 210 |
Cash and cash equivalents at beginning of period | 2,456 | 1,403 |
Cash and cash equivalents at end of period | $ 699 | $ 1,613 |