Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 25, 2015 | Nov. 05, 2015 | Mar. 27, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | TE Connectivity Ltd. | ||
Entity Central Index Key | 1,385,157 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 25, 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 Public Float | $ 28.7 | ||
Entity Common Stock, Shares Outstanding | 386,305,893 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 12,233 | $ 11,973 | $ 11,390 |
Cost of sales | 8,146 | 8,001 | 7,739 |
Gross margin | 4,087 | 3,972 | 3,651 |
Selling, general, and administrative expenses | 1,504 | 1,534 | 1,440 |
Research, development, and engineering expenses | 627 | 583 | 590 |
Acquisition and integration costs | 55 | 31 | 14 |
Restructuring and other charges, net | 152 | 19 | 222 |
Operating income | 1,749 | 1,805 | 1,385 |
Interest income | 17 | 19 | 17 |
Interest expense | (136) | (127) | (139) |
Other income (expense), net | (55) | 63 | (183) |
Income from continuing operations before income taxes | 1,575 | 1,760 | 1,080 |
Income tax (expense) benefit | (337) | (146) | 75 |
Income from continuing operations | 1,238 | 1,614 | 1,155 |
Income from discontinued operations, net of income taxes | 1,182 | 167 | 122 |
Net income | 2,420 | 1,781 | 1,277 |
Less: net income attributable to noncontrolling interests | (1) | ||
Net income attributable to TE Connectivity Ltd. | 2,420 | 1,781 | 1,276 |
Amounts attributable to TE Connectivity Ltd.: | |||
Income from continuing operations | 1,238 | 1,614 | 1,154 |
Income from discontinued operations | 1,182 | 167 | 122 |
Net income attributable to TE Connectivity Ltd. | $ 2,420 | $ 1,781 | $ 1,276 |
Basic earnings per share attributable to TE Connectivity Ltd.: | |||
Income from continuing operations (in dollars per share) | $ 3.06 | $ 3.94 | $ 2.76 |
Income from discontinued operations (in dollars per share) | 2.92 | 0.41 | 0.29 |
Net income (in dollars per share) | 5.98 | 4.34 | 3.05 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | |||
Income from continuing operations (in dollars per share) | 3.01 | 3.87 | 2.73 |
Income from discontinued operations (in dollars per share) | 2.88 | 0.40 | 0.29 |
Net income (in dollars per share) | 5.89 | 4.27 | 3.02 |
Dividends and cash distributions paid per common share (in dollars per share) | $ 1.24 | $ 1.08 | $ 0.92 |
Weighted-average number of shares outstanding: | |||
Basic (in shares) | 405 | 410 | 418 |
Diluted (in shares) | 411 | 417 | 423 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 2,420 | $ 1,781 | $ 1,277 |
Other comprehensive income (loss): | |||
Currency translation | (312) | (211) | (28) |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | (46) | (123) | 131 |
Gains (losses) on cash flow hedges, net of income taxes | 2 | 14 | (29) |
Other comprehensive income (loss) | (356) | (320) | 74 |
Comprehensive income | 2,064 | 1,461 | 1,351 |
Less: comprehensive income attributable to noncontrolling interests | (1) | ||
Comprehensive income attributable to TE Connectivity Ltd. | $ 2,064 | $ 1,461 | $ 1,350 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 3,329 | $ 2,457 |
Accounts receivable, net of allowance for doubtful accounts of $18 and $14, respectively | 2,120 | 2,057 |
Inventories | 1,615 | 1,509 |
Prepaid expenses and other current assets | 478 | 519 |
Deferred income taxes | 345 | 324 |
Assets held for sale | 2,013 | |
Total current assets | 7,887 | 8,879 |
Property, plant, and equipment, net | 2,920 | 2,920 |
Goodwill | 4,824 | 3,726 |
Intangible assets, net | 1,555 | 1,087 |
Deferred income taxes | 2,144 | 2,047 |
Receivable from Tyco International plc and Covidien plc | 964 | 1,037 |
Other assets | 314 | 456 |
Total Assets | 20,608 | 20,152 |
Current liabilities: | ||
Current maturities of long-term debt | 500 | 577 |
Accounts payable | 1,143 | 1,230 |
Accrued and other current liabilities | 1,749 | 1,594 |
Deferred revenue | 185 | 176 |
Liabilities held for sale | 416 | |
Total current liabilities | 3,577 | 3,993 |
Long-term debt | 3,403 | 3,281 |
Long-term pension and postretirement liabilities | 1,327 | 1,280 |
Deferred income taxes | 329 | 229 |
Income taxes | 1,954 | 2,044 |
Other liabilities | 433 | 312 |
Total Liabilities | $ 11,023 | $ 11,139 |
Commitments and contingencies (Note 13) | ||
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 | 4,359 | 5,231 |
Accumulated earnings | 6,673 | 4,253 |
Treasury shares, at cost, 20,071,089 and 11,383,631 shares, respectively | (1,256) | (644) |
Accumulated other comprehensive loss | (373) | (17) |
Total TE Connectivity Ltd. Shareholders' equity | 9,585 | 9,007 |
Noncontrolling interests | 6 | |
Total Equity | 9,585 | 9,013 |
Total Liabilities and Equity | $ 20,608 | $ 20,152 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Sep. 25, 2015USD ($)shares | Sep. 26, 2014USD ($)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 |
Treasury shares | 20,071,089 | 11,383,631 |
CONSOLIDATED STATEMENTS OF EQUI
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. 28, 2012 | $ 193 | $ (484) | $ 6,837 | $ 1,196 | $ 229 | $ 7,971 | $ 6 | $ 7,977 |
Balance (in shares) at Sep. 28, 2012 | 439 | (16) | ||||||
Increase (Decrease) in Equity: | ||||||||
Net income | 1,276 | 1,276 | 1 | 1,277 | ||||
Other comprehensive income (loss) | 74 | 74 | 74 | |||||
Share-based compensation expense | 78 | 78 | 78 | |||||
Dividends approved | $ 1 | (413) | (412) | (412) | ||||
Exercise of share options | $ 214 | 214 | 214 | |||||
Exercise of share options (in shares) | 6 | |||||||
Restricted share award vestings and other activity | $ 11 | (3) | 8 | 8 | ||||
Restricted share award vestings and other activity (in shares) | 3 | |||||||
Repurchase of common shares | $ (829) | (829) | $ (829) | |||||
Repurchase of common shares (in shares) | (20) | (20) | ||||||
Cancellation of treasury shares | $ (4) | $ 367 | (363) | |||||
Cancellation of treasury shares (in shares) | (10) | 10 | (10) | |||||
Dividends to noncontrolling interests | (1) | $ (1) | ||||||
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 | 1,781 | 1,781 | 1,781 | |||||
Other comprehensive income (loss) | (320) | (320) | (320) | |||||
Share-based compensation expense | 84 | 84 | 84 | |||||
Dividends approved | (473) | (473) | (473) | |||||
Exercise of share options | $ 156 | 156 | 156 | |||||
Exercise of share options (in shares) | 5 | |||||||
Restricted share award vestings and other activity | $ 125 | (122) | 3 | 3 | ||||
Restricted share award vestings and other activity (in shares) | 2 | |||||||
Repurchase of common shares | $ (604) | (604) | $ (604) | |||||
Repurchase of common shares (in shares) | (11) | (11) | ||||||
Cancellation of treasury shares | $ (5) | $ 399 | (394) | |||||
Cancellation of treasury shares (in shares) | (10) | 10 | (10) | |||||
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 | 2,420 | 2,420 | 2,420 | |||||
Other comprehensive income (loss) | (356) | (356) | (356) | |||||
Share-based compensation expense | 95 | 95 | 95 | |||||
Dividends approved | (526) | (526) | (526) | |||||
Exercise of share options | $ 103 | 103 | 103 | |||||
Exercise of share options (in shares) | 3 | |||||||
Restricted share award vestings and other activity | $ 143 | (138) | 5 | $ (6) | (1) | |||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | $ (1,163) | (1,163) | $ (1,163) | |||||
Repurchase of common shares (in shares) | (18) | (18) | ||||||
Cancellation of treasury shares | $ (2) | $ 305 | (303) | |||||
Cancellation of treasury shares (in shares) | (5) | 5 | (5) | |||||
Balance at Sep. 25, 2015 | $ 182 | $ (1,256) | $ 4,359 | $ 6,673 | $ (373) | $ 9,585 | $ 9,585 | |
Balance (in shares) at Sep. 25, 2015 | 414 | (20) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Cash Flows From Operating Activities: | |||
Net income | $ 2,420 | $ 1,781 | $ 1,277 |
Income from discontinued operations, net of income taxes | (1,182) | (167) | (122) |
Income from continuing operations | 1,238 | 1,614 | 1,155 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 616 | 551 | 536 |
Non-cash restructuring charges | 21 | 16 | 60 |
Deferred income taxes | 40 | (281) | 14 |
Provision for losses on accounts receivable and inventories | 36 | 34 | 39 |
Tax sharing (income) expense | 52 | (65) | 181 |
Share-based compensation expense | 89 | 77 | 71 |
Other | 105 | 50 | 56 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | |||
Accounts receivable, net | (210) | (182) | (65) |
Inventories | (220) | (98) | (28) |
Prepaid expenses and other current assets | 36 | (14) | 13 |
Accounts payable | (22) | 71 | 143 |
Accrued and other current liabilities | (155) | (280) | (13) |
Deferred revenue | 12 | 113 | (50) |
Income taxes | (52) | 167 | (387) |
Other | 33 | 31 | 50 |
Net cash provided by continuing operating activities | 1,619 | 1,804 | 1,775 |
Net cash provided by discontinued operating activities | 294 | 279 | 271 |
Net cash provided by (used in) operating activities | 1,913 | 2,083 | 2,046 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (600) | (635) | (581) |
Proceeds from sale of property, plant, and equipment | 17 | 129 | 22 |
Acquisition of businesses, net of cash acquired | (1,725) | (522) | (6) |
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 2,957 | 14 | |
Other | 12 | (10) | 23 |
Net cash provided by (used in) continuing investing activities | 661 | (1,038) | (528) |
Net cash used in discontinued investing activities | (25) | (37) | (17) |
Net cash provided by (used in) investing activities | 636 | (1,075) | (545) |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in commercial paper | (328) | (23) | 50 |
Proceeds from issuance of long-term debt | 617 | 1,322 | |
Repayment of long-term debt | (473) | (360) | (714) |
Proceeds from exercise of share options | 103 | 156 | 214 |
Repurchase of common shares | (1,023) | (578) | (844) |
Payment of common share dividends and cash distributions to shareholders | (502) | (443) | (384) |
Transfers from discontinued operations | 269 | 242 | 254 |
Other | (9) | ||
Net cash provided by (used in) continuing financing activities | (1,337) | 307 | (1,424) |
Net cash used in discontinued financing activities | (269) | (242) | (254) |
Net cash provided by (used in) financing activities | (1,606) | 65 | (1,678) |
Effect of currency translation on cash | (71) | (19) | (9) |
Net increase (decrease) in cash and cash equivalents | 872 | 1,054 | (186) |
Cash and cash equivalents at beginning of fiscal year | 2,457 | 1,403 | 1,589 |
Cash and cash equivalents at end of fiscal year | 3,329 | 2,457 | 1,403 |
Supplemental Cash Flow Information: | |||
Interest paid | 128 | 118 | 151 |
Income taxes paid, net of refunds | $ 350 | $ 259 | $ 299 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Sep. 25, 2015 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The Consolidated Financial Statements reflect the consolidated operations of TE Connectivity Ltd. and its subsidiaries and have been prepared in United States ("U.S.") dollars in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Description of the Business TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") is a global technology leader. We design and manufacture connectivity and sensors solutions that are essential in today's increasingly connected world. We help our customers solve the need for intelligent, efficient, and high-performing products and solutions. We consist of three reportable segments: • Transportation Solutions. The Transportation Solutions segment is a leader in connectivity and sensor technologies. Our products, which must withstand harsh conditions, are used in the automotive, commercial transportation, and sensors markets. • Industrial Solutions. The Industrial Solutions segment is a leading supplier of products that connect and distribute power, data, and signals. Our products are used in the industrial equipment; aerospace, defense, oil, and gas; and energy markets. • Communications Solutions. The Communications Solutions segment is a top supplier of electronic components for the data and devices and appliances markets. We are also a leader in developing, manufacturing, installing, and maintaining some of the world's most advanced subsea fiber optic communications systems. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Significant estimates in these Consolidated Financial Statements include restructuring and other charges, assets acquired and liabilities assumed in acquisitions, allowances for doubtful accounts receivable, estimates of future cash flows and discount rates associated with asset impairments, useful lives for depreciation and amortization, loss contingencies, net realizable value of inventories, estimated contract revenue and related costs, legal contingencies, tax reserves and deferred tax asset valuation allowances, and the determination of discount and other rate assumptions for pension and postretirement employee benefit expenses. Actual results could differ materially from these estimates. Fiscal Year We have a 52 or 53-week fiscal year that ends on the last Friday of September. Fiscal 2015, 2014, and 2013 were 52 weeks and ended on September 25, 2015, September 26, 2014, and September 27, 2013, respectively. For fiscal years in which there are 53 weeks, the fourth quarter reporting period will include 14 weeks with the next occurrence taking place in fiscal 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 25, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation We consolidate entities in which we own or control more than 50% of the voting shares or otherwise have the ability to control through similar rights. All intercompany transactions have been eliminated. The results of companies acquired or disposed of are included on the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. Revenue Recognition Our revenues are generated principally from the sale of our products. Revenue from the sale of products is recognized at the time title and the risks and rewards of ownership pass to the customer. This generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured. Contract revenues for construction related projects, which are generated in the Communications Solutions segment, are recorded primarily using the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related cost to complete. Percentage-of-completion is measured based on the ratio of actual costs incurred to total estimated costs. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the current period. Provisions for anticipated losses are made in the period in which they first become determinable. In addition, provisions for credit losses related to construction related projects are recorded as reductions of revenue in the period in which they first become determinable. We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We accept returned goods only when the customer makes a verified claim and we have authorized the return. Generally, a reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of sales. Additionally, certain of our long-term contracts in the Communications Solutions segment have warranty obligations. Estimated warranty costs for each contract are determined based on the contract terms and technology-specific considerations. These costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting. We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. A reserve for estimated returns and scrap allowances is established at the time of the sale, based on an agreed upon fixed percentage of sales to distributors, and is recorded as a reduction of sales. Other allowances include customer quantity and price discrepancies. A reserve for other allowances is generally established at the time of sale based on historical experience and is recorded as a reduction of sales. We believe we can reasonably and reliably estimate the amounts of future allowances. Inventories Inventories are recorded at the lower of cost or market value using the first-in, first-out cost method, except for inventoried costs incurred in the performance of long-term contracts primarily by the Communications Solutions segment. Property, Plant, and Equipment, Net Property, plant, and equipment is recorded at cost less accumulated depreciation. Maintenance and repair expenditures are charged to expense when incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are 10 to 20 years for land improvements, 5 to 40 years for buildings and improvements, and 1 to 15 years for machinery and equipment. We periodically evaluate, when events and circumstances warrant, the net realizable value of property, plant, and equipment and other long-lived assets, relying on a number of factors including operating results, business plans, economic projections, and anticipated future cash flows. When indicators of potential impairment are present, the carrying values of the asset group are evaluated in relation to the operating performance and estimated future undiscounted cash flows of the underlying asset group. Impairment of the carrying value is recognized whenever anticipated future undiscounted cash flow estimates are less than the carrying value of the asset. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk. Goodwill and Other Intangible Assets Intangible assets include both indeterminable-lived residual goodwill and determinable-lived identifiable intangible assets. Intangible assets with a determinable life primarily include intellectual property, consisting of patents, trademarks, and unpatented technology, as well as customer relationships. Recoverability estimates range from 1 to 50 years and costs are generally amortized on a straight-line basis. An evaluation of the remaining useful life of determinable-lived intangible assets is performed on a periodic basis and when events and circumstances warrant an evaluation. At fiscal year end 2015, we had seven reporting units, six of which contained goodwill. There are two reporting units in each of the Transportation Solutions and Industrial Solutions segments, and three reporting units in the Communications Solutions segment. When changes occur in the composition of one or more reporting units, goodwill is reassigned to the reporting units affected based on their relative fair values. Goodwill impairment is evaluated by comparing the carrying value of each reporting unit to its fair value on the first day of the fourth fiscal quarter of each year or whenever we believe a triggering event requiring a more frequent assessment has occurred. In assessing the existence of a triggering event, management relies on a number of reporting-unit-specific factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and market place data. There are inherent uncertainties related to these factors and management's judgment in applying these factors to the impairment analysis. When testing for goodwill impairment, we perform a step I goodwill impairment test to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, goodwill may be impaired and a step II goodwill impairment test is performed to measure the amount of impairment, if any. In the step II goodwill impairment test, we compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The implied fair value of goodwill is determined in a manner consistent with how goodwill is recognized in a business combination. We allocate the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Fair value estimates used in the step I goodwill impairment tests are calculated using an income approach based on the present value of future cash flows of each reporting unit. The income approach generally has been supported by guideline analyses (a market approach). These approaches incorporate a number of assumptions including future growth rates, discount rates, income tax rates, and market activity in assessing fair value and are reporting unit specific. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. Research and Development Research and development expenditures are expensed when incurred and are included in research, development, and engineering expenses on the Consolidated Statements of Operations. Research and development expenses include salaries, direct costs incurred, and building and overhead expenses. The amounts expensed in fiscal 2015, 2014, and 2013 were $540 million, $484 million, and $494 million, respectively. Income Taxes Income taxes are computed in accordance with the provisions of Accounting Standards Codification ("ASC") 740, Income Taxes . Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected on the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carryforwards using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The calculation of our tax liabilities includes estimates for uncertainties in the application of complex tax regulations across multiple global jurisdictions where we conduct our operations. Under the uncertain tax position provisions of ASC 740, we recognize liabilities for tax and related interest for issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes and related interest will be due. In addition, management reviews with tax counsel various issues raised by certain taxing authorities and the adequacy of recorded amounts. These tax liabilities and related interest are reflected net of the impact of related tax loss carryforwards, as such tax loss carryforwards will be applied against these tax liabilities and will reduce the amount of cash tax payments due upon the eventual settlement with the tax authorities. These estimates may change due to changing facts and circumstances. Due to the complexity of these uncertainties, the ultimate resolution may result in a settlement that differs from our current estimate of the tax liabilities and related interest. Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt, and derivative financial instruments. We account for derivative financial instrument contracts on the Consolidated Balance Sheets at fair value. For instruments not designated as hedges under ASC 815, Derivatives and Hedging , the changes in the instruments' fair value are recognized currently in earnings. For instruments designated as cash flow hedges, the effective portion of changes in the fair value of a derivative is recorded in other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. Ineffective portions of a cash flow hedge, including amounts excluded from the hedging relationship, are recognized currently in earnings. Changes in the fair value of instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized currently in earnings. We determine the fair value of our financial instruments by using methods and assumptions that are based on market conditions and risks existing at each balance sheet date. Standard market conventions are used to determine the fair value of financial instruments, including derivatives. The cash flows related to derivative financial instruments are reported in the operating activities section of the Consolidated Statements of Cash Flows. Our derivative financial instruments present certain market and counterparty risks. Concentration of counterparty risk is mitigated, however, by our use of financial institutions worldwide, substantially all of which have long-term Standard & Poor's, Moody's, and/or Fitch credit ratings of A/A2 or higher. In addition, we utilize only conventional derivative financial instruments. We are exposed to potential losses if a counterparty fails to perform according to the terms of its agreement. With respect to counterparty net asset positions recognized at September 25, 2015, we have assessed the likelihood of counterparty default as remote. We currently provide guarantees from a wholly-owned subsidiary to the counterparties to our commodity swap derivatives and exchange cash collateral with the counterparties to our cross-currency swap contracts. The likelihood of performance on the guarantees has been assessed as remote. For all other derivative financial instruments, we are not required to provide, nor do we require counterparties to provide, collateral or other security. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures , specifies a fair value hierarchy based upon the observable inputs utilized in valuation of certain assets and liabilities. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy: • Level 1. Quoted prices in active markets for identical assets and liabilities. • Level 2. Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flows methodologies, and similar techniques that use significant unobservable inputs. Financial assets and liabilities measured at fair value on a recurring basis are generally valued using level 2 inputs. Financial instruments other than derivative instruments include cash and cash equivalents, accounts receivable, accounts payable, and debt. These instruments are recorded on the Consolidated Balance Sheets at book value. For cash and cash equivalents, accounts receivable, and accounts payable, we believe book value approximates fair value due to the short-term nature of these instruments. See Note 11 for disclosure of the fair value of debt. The following is a description of the valuation methodologies used for the respective financial instruments: • Cash and cash equivalents. Cash and cash equivalents are valued at book value, which we consider to be equivalent to unadjusted quoted prices (level 1). • Accounts receivable. Accounts receivable are valued based on the net value expected to be realized. The net realizable value generally represents an observable contractual agreement (level 2). • Accounts payable. Accounts payable are valued based on the net value expected to be paid, generally supported by an observable contractual agreement (level 2). • Long-term debt. The fair value of long-term debt, including both current and non-current maturities, is derived from quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2). Pension and Postretirement Benefits The funded status of our defined benefit pension and postretirement benefit plans is recognized on the Consolidated Balance Sheets and is measured as the difference between the fair value of plan assets and the benefit obligation at the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which represents the actuarial present value of benefits expected to be paid upon retirement factoring in estimated future compensation levels. For the postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of cumulative company and participant contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trustee of the funds. The benefits under pension and postretirement plans are based on various factors, such as years of service and compensation. Net periodic pension benefit cost is based on the utilization of the projected unit credit method of calculation and is charged to earnings on a systematic basis over the expected average remaining service lives of current participants. The measurement of benefit obligations and net periodic benefit cost is based on estimates and assumptions determined by our management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age, and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates, and mortality rates. Share-Based Compensation We determine the fair value of share awards on the date of grant. Share options are valued using the Black-Scholes-Merton valuation model; restricted share awards and performance awards are valued using our end-of-day share price on the date of grant. The fair value is expensed ratably over the expected service period, with an allowance made for estimated forfeitures based on historical employee activity. Estimates regarding the attainment of performance criteria are reviewed periodically; the cumulative impact of a change in estimate regarding the attainment of performance criteria is recorded in the period in which that change is made. Earnings Per Share Basic earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the basic weighted-average number of common shares outstanding. Diluted earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the weighted-average number of common shares outstanding adjusted for the potentially dilutive impact of share-based compensation arrangements. Currency Translation For our non-U.S. dollar functional currency subsidiaries, assets and liabilities are translated into U.S. dollars using fiscal year end exchange rates. Sales and expenses are translated at average monthly exchange rates. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) within equity. Gains and losses resulting from foreign currency transactions, which are included in earnings, were immaterial in fiscal 2015, 2014, and 2013. Restructuring Charges Restructuring activities involve employee-related termination costs, facility exit costs, and asset impairments resulting from reductions-in-force, migration of facilities or product lines from higher-cost to lower-cost countries, or consolidation of facilities within countries. We recognize termination costs based on requirements established by severance policy, government law, or previous actions. Facility exit costs generally reflect the cost to terminate a facility lease before the end of its term (measured at fair value at the time we cease using the facility) or costs that will continue to be incurred under the facility lease without future economic benefit to us. Restructuring activities often result in the disposal or abandonment of assets that require an acceleration of depreciation or impairment reflecting the excess of the assets' carrying values over fair value. The recognition of restructuring costs require that we make certain judgments and estimates regarding the nature, timing, and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimated liabilities, requiring the recognition of additional restructuring costs or the reduction of liabilities already recognized. At the end of each reporting period, we evaluate the remaining accrued balances to ensure these balances are properly stated and the utilization of the reserves are for their intended purpose in accordance with developed exit plans. Acquisitions We account for acquired businesses using the acquisition method of accounting. This method requires, among other things, that most assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. We allocate the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values, or as required by ASC 805, Business Combinations . The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. We may engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Contingent Liabilities We record a loss contingency when the available information indicates it is probable that we have incurred a liability and the amount of the loss is reasonably estimable. When a range of possible losses with equal likelihood exists, we record the low end of the range. The likelihood of a loss with respect to a particular contingency is often difficult to predict, and determining a meaningful estimate of the loss or a range of loss may not be practicable based on information available. In addition, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must continuously be evaluated to determine whether a loss is probable and a reasonable estimate of that loss can be made. When a loss is probable but a reasonable estimate cannot be made, or when a loss is at least reasonably possible, disclosure is provided. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASC 606, Revenue from Contracts with Customers . This guidance supersedes ASC 605, Revenue Recognition , and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. In August 2015, the FASB deferred the effective date of ASC 606 by one year. ASC 606 will be effective for us in the first quarter of fiscal 2019 and allows for either a full retrospective or a modified retrospective approach at adoption. We are continuing to assess the impact of adopting ASC 606, but do not expect adoption to have a material impact on our results of operations or financial position. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 12 Months Ended |
Sep. 25, 2015 | |
Restructuring and Other Charges, Net | |
Restructuring and Other Charges, Net | 3. Restructuring and Other Charges, Net Net restructuring and other charges consisted of the following: Fiscal 2015 2014 2013 (in millions) Restructuring charges, net $ $ $ Other charges (credits), net ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring Charges, Net Net restructuring charges by segment were as follows: Fiscal 2015 2014 2013 (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves is summarized as follows: Balance at Beginning of Fiscal Year Charges Changes in Estimate Cash Payments Non-Cash Items Currency Translation and Other (1) Balance at End of Fiscal Year (in millions) Fiscal 2015 Activity: 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 — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2013 Actions: Employee severance — ) ) — ) Facility and other exit costs — ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2013 Actions: Employee severance ) ) — ) Facility and other exit costs — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fiscal 2015 activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2014 Activity: Fiscal 2014 Actions: Employee severance $ — $ $ — $ ) $ — $ $ Facility and other exit costs — — — — — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2013 Actions: Employee severance ) ) — Facility and other exit costs — ) — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2013 Actions: Employee severance ) ) — — Facility and other exit costs ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fiscal 2014 activity $ $ $ ) $ ) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2013 Activity: Fiscal 2013 Actions: Employee severance $ — $ $ ) $ ) $ — $ $ Facility and other exit costs — — ) — — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2013 Actions: Employee severance ) ) — ) Facility and other exit costs ) — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fiscal 2013 activity $ $ $ ) $ ) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes net charges (credits) associated with discontinued operations of $(1) million, $36 million, and $65 million in fiscal 2015, 2014, and 2013, respectively. Fiscal 2015 Actions During fiscal 2015, we initiated a restructuring program associated with headcount reductions and product line closures, primarily impacting the Communications Solutions and Industrial Solutions segments. In connection with this program, during fiscal 2015, we recorded net restructuring charges of $92 million. We expect to complete all restructuring actions commenced in fiscal 2015 by the end of fiscal 2016 and to incur total charges of approximately $98 million. Fiscal 2014 Actions During fiscal 2014, we initiated a restructuring program associated primarily with headcount reductions and manufacturing site and product line closures in the Communications Solutions segment. In connection with this program, we recorded net restructuring charges of $19 million in fiscal 2014. We do not expect to incur significant additional expense related to restructuring programs commenced in fiscal 2014. Fiscal 2013 Actions During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. In connection with this program, during fiscal 2015, 2014, and 2013, we recorded net restructuring charges of $1 million, $9 million, and $240 million, respectively. We do not expect to incur significant additional expense related to restructuring programs commenced in fiscal 2013. Pre-Fiscal 2013 Actions 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 fiscal 2014 and 2013, we recorded net restructuring credits of $5 million and $15 million, respectively, related to pre-fiscal 2013 actions. We do not expect to incur any additional charges related to pre-fiscal 2013 actions. Total Restructuring Reserves Restructuring reserves included on the Consolidated Balance Sheets were as follows: Fiscal Year End 2015 2014 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Charges (Credits), Net During fiscal 2015, in connection with the sale our Broadband Network Solutions ("BNS") business, we incurred costs of $61 million, consisting primarily of $36 million of legal and professional fees and $18 million of charges associated with the exit of a facility. These amounts are not directly related to the business sold, and accordingly have been recorded in continuing operations. See Note 4 for additional information regarding the divestiture of BNS. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 25, 2015 | |
Discontinued Operations. | |
Discontinued Operations | 4. Discontinued Operations During fiscal 2015, we sold our BNS business for $3.0 billion in cash and recognized a pre-tax gain of $1,105 million on the transaction. In the U.S., income taxes associated with the gain on the sale of assets were largely offset by income tax benefits realized on the sale of several subsidiaries. In certain non-U.S. jurisdictions, the sale was exempt from income taxes. Pre-tax income from discontinued operations for fiscal 2015 included pre-tax charges of $127 million recorded in connection with the Com-Net case related to our former Wireless Systems business which was sold in fiscal 2009. See Note 13 for additional information regarding the Com-Net case. The following table presents information regarding certain components of income from discontinued operations, net of income taxes: Fiscal 2015 2014 2013 (in millions) Net sales from discontinued operations $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income from discontinued operations $ $ $ Pre-tax gain (loss) on sale of discontinued operations — ) Income tax expense ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from discontinued operations, net of income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents balance sheet information for assets and liabilities held for sale fiscal year end 2014; there were no such balances at fiscal year end 2015: Fiscal Year End 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 discontinued operations criteria and have been reported as such in all periods presented on the 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 | 12 Months Ended |
Sep. 25, 2015 | |
Acquisitions | |
Acquisitions | 5. Acquisitions Measurement Specialties, Inc. 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. 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 $1,064 million was recognized in the transaction, representing the excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed. This goodwill is attributable primarily to cost savings and other synergies related to operational efficiencies including the consolidation of manufacturing, marketing, and general and administrative functions. The goodwill has been allocated to the Transportation Solutions segment and is not deductible for tax purposes. However, prior to its merger with us, Measurement Specialties completed certain acquisitions that resulted in goodwill with an estimated value of $23 million that is deductible primarily for U.S. tax purposes, which we will deduct through 2030. During fiscal 2015, Measurement Specialties contributed net sales of $548 million to our Consolidated Statement 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. 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 Fiscal 2015 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 fiscal 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 charges related to acquired customer order backlog, $6 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position, and $1 million of charges related to the amortization of the fair value of acquired intangible assets. In addition, pro forma results for fiscal 2015 were adjusted to include $3 million of interest expense based on pro forma changes in our capital structure. Pro forma results for fiscal 2014 were adjusted to include $20 million of charges related to the amortization of the fair value of acquired intangible assets, $19 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position, $14 million of interest expense based on pro forma changes in our capital structure, $11 million of charges related to the fair value adjustment to acquisition-date inventories, $7 million of charges related to acquired customer order backlog, and $2 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. Other Acquisitions During fiscal 2015, we acquired three additional companies for $241 million in cash, net of cash acquired. During fiscal 2014, we acquired five companies, including the SEACON Group ("SEACON"), a leading provider of underwater connector technology and systems, for $522 million in cash, net of cash acquired. |
Inventories
Inventories | 12 Months Ended |
Sep. 25, 2015 | |
Inventories. | |
Inventories | 6. Inventories Inventories consisted of the following: Fiscal Year End 2015 2014 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Sep. 25, 2015 | |
Property, Plant, and Equipment, Net | |
Property, Plant, and Equipment, Net | 7. Property, Plant, and Equipment, Net Net property, plant, and equipment consisted of the following: Fiscal Year End 2015 2014 (in millions) Land and improvements $ $ Buildings and improvements Machinery and equipment Construction in process ​ ​ ​ ​ ​ ​ ​ ​ Gross property, plant, and equipment Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property, plant, and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation expense was $463 million, $467 million, and $456 million in fiscal 2015, 2014, and 2013, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Sep. 25, 2015 | |
Goodwill | |
Goodwill | 8. 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 27, 2013 (2) $ $ $ $ Acquisitions — Currency translation and other ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 26, 2014 (2) Acquisitions — Currency translation ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 25, 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 22 for additional information regarding our current segment structure. (2) At fiscal year end 2015, 2014, and 2013, 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 goodwill of $1,064 million, which benefited the Transportation Solutions segment. See Note 5 for additional information regarding acquisitions. We completed our annual goodwill impairment test in the fourth quarter of fiscal 2015 and determined that no impairment existed. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Sep. 25, 2015 | |
Intangible Assets, Net | |
Intangible Assets, Net | 9. Intangible Assets, Net Intangible assets consisted of the following: Fiscal Year End 2015 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 $153 million, $84 million, and $80 million for fiscal 2015, 2014, and 2013, respectively. The aggregate amortization expense on intangible assets is expected to be as follows: (in millions) Fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Sep. 25, 2015 | |
Accrued and Other Current Liabilities | |
Accrued and Other Current Liabilities | 10. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: Fiscal Year End 2015 2014 (in millions) Accrued payroll and employee benefits $ $ Dividends payable to shareholders Income taxes payable Share repurchase program payable Restructuring reserves Interest payable Deferred income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ Accrued and other current liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 12 Months Ended |
Sep. 25, 2015 | |
Debt | |
Debt | 11. Debt Debt was as follows: Fiscal Year End 2015 2014 (in millions) Current maturities of long-term debt: 1.60% senior notes due 2015 $ — $ Senior floating rate notes due 2016 (1) — Commercial paper, at a weighted-average interest rate of 0.30% at September 26, 2014 — ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt: Senior floating rate notes due 2016 (1) — 6.55% senior notes due 2017 2.375% senior notes due 2018 2.35% senior notes due 2019 4.875% senior notes due 2021 3.50% senior notes due 2022 1.100% senior notes due 2023 — 3.45% senior notes due 2024 7.125% senior notes due 2037 Other — ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ Total debt (2) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The senior floating rate notes due 2016 bear interest at a rate of three-month London interbank offered rate ("LIBOR") plus 0.20% per year. (2) Senior notes are presented at face amount and, if applicable, are net of unamortized discount and the effects of interest rate swaps designated as fair value hedges. In February 2015, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, issued €550 million 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. TEGSA has a five-year unsecured senior revolving credit facility ("Credit Facility") with total commitments of $1,500 million. The Credit Facility was amended in August 2013 primarily to extend the maturity date from June 2016 to August 2018 and reduce borrowing costs. TEGSA had no borrowings under the Credit Facility at September 25, 2015 and September 26, 2014. Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the option of TEGSA, (1) LIBOR plus an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA, or (2) an alternate base rate equal to the highest of (i) Deutsche Bank AG New York branch's base rate, (ii) the federal funds effective rate plus 1 / 2 of 1%, and (iii) one-month LIBOR plus 1%, plus, in each case, an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA. TEGSA is required to pay an annual facility fee ranging from 7.5 to 25.0 basis points based upon the amount of the lenders' commitments under the Credit Facility and the applicable credit ratings of TEGSA. The Credit Facility contains a financial ratio covenant providing that if, as of the last day of each fiscal quarter, our ratio of Consolidated Total Debt to Consolidated EBITDA (as defined in the Credit Facility) for the then most recently concluded period of four consecutive fiscal quarters exceeds 3.75 to 1.0, an Event of Default (as defined in the Credit Facility) is triggered. The Credit Facility and our other debt agreements contain other customary covenants. Periodically, TEGSA issues commercial paper to U.S. institutional accredited investors and qualified institutional buyers in accordance with available exemptions from the registration requirements of the Securities Act of 1933 as part of our ongoing effort to maintain financial flexibility and to potentially decrease the cost of borrowings. Borrowings under the commercial paper program are backed by the Credit Facility. TEGSA's payment obligations under its senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The aggregate amounts of total debt maturing are as follows: (in millions) Fiscal 2016 $ Fiscal 2017 — Fiscal 2018 Fiscal 2019 Fiscal 2020 — Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair value of our debt, based on indicative valuations, was approximately $4,115 million and $4,125 million at fiscal year end 2015 and 2014, respectively. |
Guarantees
Guarantees | 12 Months Ended |
Sep. 25, 2015 | |
Guarantees | |
Guarantees | 12. 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"). On January 26, 2015, Covidien was acquired and now operates as a subsidiary of Medtronic plc. Upon separation, we entered into a Tax Sharing Agreement, under which we share responsibility for certain of our, Tyco International's, and Covidien's income tax liabilities based on a sharing formula for periods prior to and including June 29, 2007. We, Tyco International, and Covidien share 31%, 27%, and 42%, respectively, of U.S. income tax liabilities that arise from adjustments made by tax authorities to our, Tyco International's, and Covidien's U.S. income tax returns. The effect of the Tax Sharing Agreement is to indemnify us for 69% of certain liabilities settled in cash by us with respect to unresolved pre-separation tax matters. Pursuant to that indemnification, we have made similar indemnifications to Tyco International and Covidien with respect to 31% of certain liabilities settled in cash by the companies relating to unresolved pre-separation tax matters. All costs and expenses associated with the management of these shared tax liabilities are shared equally among the parties. All of the tax liabilities that are associated with our businesses, including liabilities that arose prior to our separation from Tyco International, became our tax liabilities. Although we have agreed to share certain of these tax liabilities with Tyco International and Covidien, we remain primarily liable for all of these liabilities. If Tyco International and Covidien default on their obligations to us, we would be liable for the entire amount of these liabilities. If any party to the Tax Sharing Agreement were to default in its obligation to another party to pay its share of the distribution taxes that arise as a result of no party's fault, each non-defaulting party would be required to pay, equally with any other non-defaulting party, the amounts in default. In addition, if another party to the Tax Sharing Agreement that is responsible for all or a portion of an income tax liability were to default in its payment of such liability to a taxing authority, we could be legally liable under applicable tax law for such liabilities and required to make additional tax payments. Accordingly, under certain circumstances, we may be obligated to pay amounts in excess of our agreed-upon share of our, Tyco International's, and Covidien's tax liabilities. Indemnification Our indemnification created under the Tax Sharing Agreement qualifies as a guarantee of a third party entity's debt under ASC 460, Guarantees . In the event that we are required, due to bankruptcy or other business interruption on the part of Tyco International or Covidien, to pay more than the contractually determined 31%, we retain the right to seek payment from the effected entity. At September 25, 2015 and September 26, 2014, we had a liability representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement of $17 million and $21 million, respectively. See additional information in Note 13. Other Matters In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows. At September 25, 2015, we had outstanding letters of credit, letters of guarantee, and surety bonds in the amount of $360 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 at fiscal year end 2015 and 2014 were $35 million and $29 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 25, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies General Matters We have facility, land, vehicle, and equipment leases that expire at various dates. Rental expense under these leases was $141 million, $130 million, and $133 million for fiscal 2015, 2014, and 2013, respectively. At fiscal year end 2015, the minimum lease payment obligations under non-cancelable lease obligations were as follows: (in millions) Fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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. Trial began in March 2015 and culminated in the entry of final judgment on October 8, 2015, in favor of the sellers and against us for $127 million plus costs. The judgment represents the $80 million contingent purchase price plus pre-judgment interest, which will continue to accrue until the judgment is paid in full. We are proceeding with an appeal. In connection with this case, we recorded a reserve and pre-tax charges of $127 million in fiscal 2015. These charges are reflected in income from discontinued operations on the 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 Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. See Note 12 for additional information regarding the Tax Sharing Agreement. Prior to separation, certain of our subsidiaries filed combined income tax returns with Tyco International. Those and other of our subsidiaries' income tax returns are examined periodically by various tax authorities. In connection with these examinations, tax authorities, including the Internal Revenue Service ("IRS"), have raised issues and proposed tax adjustments. Tyco International, as the U.S. income tax audit controlling party under the Tax Sharing Agreement, is reviewing and contesting certain of the proposed tax adjustments. Amounts related to these tax adjustments and other tax contingencies and related interest that management has assessed under the uncertain tax position provisions of ASC 740, Income Taxes, which relate specifically to our entities have been recorded on the Consolidated Financial Statements. In addition, we may be required to fund portions of Tyco International's and Covidien's tax obligations. Estimates of these guarantees have also been recognized on the Consolidated Financial Statements. In October 2012, the 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 as described below. As a result of these developments, in fiscal 2013, we recognized an income tax benefit of $331 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $231 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The disputed issue involves the tax treatment of certain intercompany debt transactions. The IRS field examination asserted that certain intercompany loans 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. income 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's proposed adjustments. Tyco International has advised us that it believes there are meritorious defenses for the tax filings in question and that the IRS position with regard to this matter is 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 trial is expected to commence during October 2016. The parties remain engaged in discovery. We do not expect any payments to the IRS with respect to this matter until it is 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 this matter. If the IRS were to prevail on its assertions, our share of the assessed tax, deficiency interest, and applicable withholding taxes and penalties could have a material adverse impact on our results of operations, financial position, and cash flows. We have reviewed the Notices of Deficiency, the relevant facts surrounding the intercompany debt transactions, relevant tax regulations, and applicable case law, and we continue to believe that we are appropriately reserved for this matter. During fiscal 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 discussed above. As a result of these developments, we recognized an income tax benefit of $201 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $84 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. Also during fiscal 2015, the IRS issued general agreement Forms 870, effectively settling its audits of tax matters for the years 2008 through 2010, excluding the disputed issue discussed above. As of result of these developments, we recognized an income tax benefit of $63 million, representing a reduction in tax reserves for the matters that were effectively settled. We made net payments of $40 million, $179 million, and $28 million related to pre-separation U.S. tax matters during fiscal 2015, 2014, and 2013, respectively. At September 25, 2015 and September 26, 2014, we have reflected $17 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 the Consolidated Financial Statements relating to the matters discussed above are appropriate. However, the ultimate resolution is uncertain and could result in a material impact to our results of operations, financial position, or cash flows. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of fiscal year end 2015, we concluded that it was probable that we would incur remedial costs in the range of $16 million to $38 million, and that the best estimate within this range was $19 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 and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 25, 2015 | |
Financial Instruments and Fair Value Measurements | |
Financial Instruments and Fair Value Measurements | 14. Financial Instruments and Fair Value Measurements We use derivative and non-derivative financial instruments to manage certain exposures to foreign currency, interest rate, investment, and commodity risks. The effects of derivative instruments on the Consolidated Statements of Operations were immaterial for fiscal 2015, 2014, and 2013. Foreign Exchange Risks and Hedges of Net Investment As part of managing the exposure to changes in foreign currency exchange rates, we utilize cross-currency swap contracts, foreign currency forward contracts, and foreign currency swap contracts, a portion of which are designated as cash flow hedges. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in foreign currency exchange rates on intercompany and other cash transactions. We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with the cash flow hedge-designated instruments addressing foreign exchange risks will be reclassified into the Consolidated Statements of Operations within the next twelve months. During fiscal 2015, we entered into cross-currency swap contracts with an aggregate notional value of €1,000 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 5.33% 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. 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 $3,880 million and $2,893 million at September 25, 2015 and September 26, 2014, respectively. Foreign exchange gains of $353 million and $156 million in fiscal 2015 and 2014, respectively, were recorded as currency translation, a component of accumulated other comprehensive income (loss), offsetting foreign exchange losses attributable to the translation of the net investment. Foreign exchange gains and losses recorded as currency translation in fiscal 2013 were immaterial. See Note 20 for additional information. Interest Rate and Investment Risk Management We issue debt, as needed, to fund our operations and capital requirements. Such borrowings can result in interest rate exposure. To manage the interest rate exposure, we use interest rate swaps to convert a portion of fixed-rate debt into variable-rate debt. We use forward starting interest rate swaps and options to enter into interest rate swaps to manage interest rate exposure in periods prior to the anticipated issuance of fixed-rate debt. We also utilize investment swaps to manage earnings exposure on certain nonqualified deferred compensation liabilities. Commodity Hedges As part of managing the exposure to certain commodity price fluctuations, we utilize commodity swap contracts designated as cash flow hedges. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in prices of commodities used in production. At September 25, 2015 and September 26, 2014, our commodity hedges had notional values of $260 million and $307 million, respectively. We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with the commodity hedges will be reclassified into the Consolidated Statements of Operations within the next twelve months. Fair Value Measurements Financial instruments recorded at fair value on a recurring basis, which consist of derivative instruments and marketable securities, were immaterial at September 25, 2015 and September 26, 2014. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 25, 2015 | |
Retirement Plans | |
Retirement Plans | 15. Retirement Plans Defined Benefit Pension Plans We have a number of contributory and noncontributory defined benefit retirement plans covering certain of our U.S. and non-U.S. employees, designed in accordance with local customs and practice. The net periodic pension benefit cost for all U.S. and non-U.S. defined benefit pension plans was as follows: U.S. Plans Non-U.S. Plans Fiscal Fiscal 2015 2014 2013 2015 2014 2013 ($ in millions) Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of net actuarial loss Other — — — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average assumptions used to determine net pension benefit cost during the fiscal year: Discount rate % % % % % % Expected return on plan assets % % % % % % Rate of compensation increase — % — % — % % % % The following table represents the changes in benefit obligation and plan assets and the net amount recognized on the Consolidated Balance Sheets for all U.S. and non-U.S. defined benefit pension plans: U.S. Plans Non-U.S. Plans Fiscal Fiscal 2015 2014 2015 2014 ($ in millions) Change in benefit obligation: Benefit obligation at beginning of fiscal year $ $ $ $ Service cost Interest cost Actuarial loss Benefits and administrative expenses paid ) ) ) ) Currency translation — — ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit obligation at end of fiscal year ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in plan assets: Fair value of plan assets at beginning of fiscal year Actual return on plan assets ) Employer contributions Benefits and administrative expenses paid ) ) ) ) Currency translation — — ) ) Other — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at end of fiscal year ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funded status $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recognized on the Consolidated Balance Sheets: Accrued and other current liabilities $ ) $ ) $ ) $ ) Long-term pension and postretirement liabilities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net amount recognized $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: Discount rate % % % % Rate of compensation increase — % — % % % The pre-tax amounts recognized in accumulated other comprehensive income (loss) for all U.S. and non-U.S. defined benefit pension plans were as follows: U.S. Plans Non-U.S. Plans Fiscal Fiscal 2015 2014 2015 2014 (in millions) Change in net loss: Unrecognized net loss at beginning of fiscal year $ $ $ $ Current year change recorded in accumulated other comprehensive income (loss) Amortization reclassified to earnings ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized net loss at end of fiscal year $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in prior service credit: Unrecognized prior service credit at beginning of fiscal year $ — $ — $ ) $ ) Current year change recorded in accumulated other comprehensive income (loss) — — ) ) Amortization reclassified to earnings — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized prior service credit at end of fiscal year $ — $ — $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In fiscal 2015, unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) for U.S. defined benefit pension plans are due primarily to a change in the mortality assumption and lower than expected asset performance. Unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) for non-U.S. defined benefit pension plans in fiscal 2015 are principally the result of lower discount rates as compared to fiscal 2014. In fiscal 2014, unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) are primarily the result of changes in mortality assumptions and decreasing discount rates for U.S. defined benefit pension plans and attributable primarily to lower discount rates for non-U.S. defined benefit pension plans as compared to fiscal 2013. Amortization of prior service credit is included in other in the above table summarizing the components of net periodic pension benefit cost. The estimated amortization of actuarial losses from accumulated other comprehensive income (loss) into net periodic pension benefit cost for U.S. and non-U.S. defined benefit pension plans in fiscal 2016 is expected to be $40 million and $36 million, respectively. The estimated amortization of prior service credit from accumulated other comprehensive income (loss) into net periodic pension benefit cost for non-U.S. defined benefit pension plans in fiscal 2016 is expected to be $6 million. In determining the expected return on plan assets, we consider the relative weighting of plan assets by class and individual asset class performance expectations. The investment strategy for the U.S. pension plans is governed by our investment committee; investment strategies for non-U.S. pension plans are governed locally. Our investment strategy for our pension plans is to manage the plans on a going concern basis. Current investment policy is to achieve a reasonable return on assets, subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for participants. Projected returns are based primarily on pro forma asset allocation, expected long-term returns, and forward-looking estimates of active portfolio and investment management. The long-term target asset allocation in our U.S. plans' master trust is 10% equity and 90% fixed income. Asset re-allocation to meet that target is occurring over a multi-year period based on the funded status, as defined by the Pension Protection Act of 2006 (the "Pension Act Funded Status"), of the U.S. plans' master trust and market conditions. We expect to reach our target allocation when the Pension Act Funded Status exceeds 105%. Based on the Pension Act Funded Status as of September 25, 2015, our target asset allocation is 45% equity and 55% fixed income. Target weighted-average asset allocation and weighted-average asset allocation for U.S. and non-U.S. pension plans were as follows: U.S. Plans Non-U.S. Plans Target Fiscal Year End 2015 Fiscal Year End 2014 Target Fiscal Year End 2015 Fiscal Year End 2014 Asset category: Equity securities % % % % % % Debt securities Insurance contracts and other investments — — — Real estate investments — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Our common shares are not a direct investment of our pension funds; however, the pension funds may indirectly include our shares. The aggregate amount of our common shares would not be considered material relative to the total pension fund assets. Our funding policy is to make contributions in accordance with the laws and customs of the various countries in which we operate as well as to make discretionary voluntary contributions from time to time. We expect to make the minimum required contributions of $5 million and $68 million to our U.S. and non-U.S. pension plans, respectively, in fiscal 2016. We may also make voluntary contributions at our discretion. Benefit payments, which reflect future expected service, as appropriate, are expected to be paid as follows: U.S. Plans Non-U.S. Plans (in millions) Fiscal 2016 $ $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021-2025 Set forth below is the accumulated benefit obligation for all U.S. and non-U.S. pension plans as well as additional information related to plans with an accumulated benefit obligation in excess of plan assets and plans with a projected benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans Fiscal Year End Fiscal Year End 2015 2014 2015 2014 (in millions) Accumulated benefit obligation $ $ $ $ Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation Fair value of plan assets Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation Fair value of plan assets We value our pension assets based on the fair value hierarchy of ASC 820, Fair Value Measurements and Disclosures . Details of the fair value hierarchy are described in Note 2. The following table presents our defined benefit pension plans' asset categories and their associated fair value within the fair value hierarchy: Fiscal Year End 2015 U.S. Plans Non-U.S. Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Equity: U.S. equity securities (1) $ $ — $ — $ $ $ — $ — $ Non-U.S. equity securities (1) — — — — Commingled equity funds (2) — — — — — — Fixed income: Government bonds (3) — — — — Corporate bonds (4) — — — — Commingled bond funds (5) — — — — — — Other (6) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Subtotal $ $ $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Items to reconcile to fair value of plan assets (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year End 2014 U.S. Plans Non-U.S. Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Equity: U.S. equity securities (1) $ $ — $ — $ $ $ — $ — $ Non-U.S. equity securities (1) — — — — Commingled equity funds (2) — — — — — — Fixed income: Government bonds (3) — — — — Corporate bonds (4) — — — — Commingled bond funds (5) — — — — — — Other (6) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Subtotal $ $ $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Items to reconcile to fair value of plan assets (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) U.S. and non-U.S. equity securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. (2) Commingled equity funds are pooled investments in multiple equity-type securities. Fair value is calculated as the closing price of the underlying investments, an observable market condition, divided by the number of shares of the fund outstanding. (3) Government bonds are marked to fair value based on quoted market prices or market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves. (4) Corporate bonds are marked to fair value based on quoted market prices or market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves. (5) Commingled bond funds are pooled investments in multiple debt-type securities. Fair value is calculated as the closing price of the underlying investments, an observable market condition, divided by the number of shares of the fund outstanding. (6) Other investments are composed of insurance contracts, derivatives, short-term investments, structured products such as collateralized obligations and mortgage- and asset-backed securities, real estate investments, and hedge funds. Insurance contracts are valued using cash surrender value, or face value of the contract if a cash surrender value is unavailable (level 2), as these values represent the amount that the plan would receive on termination of the underlying contract. Derivatives, short-term investments, and structured products are marked to fair value using models that are supported by observable market based data (level 2). Real estate investments include investments in commingled real estate funds and are valued at net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). Hedge funds are valued at their net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). (7) Items to reconcile to fair value of plan assets include amounts receivable for securities sold, amounts payable for securities purchased, and any cash balances, considered to be carried at book value, that are held in the plans. Changes in Level 3 assets in non-U.S. plans were primarily the result of purchases in fiscal 2015 and positive returns in fiscal 2014. Defined Contribution Retirement Plans We maintain several defined contribution retirement plans, the most significant of which is located in the U.S. These plans include 401(k) matching programs, as well as qualified and nonqualified profit sharing and share bonus retirement plans. Expense for the defined contribution plans is computed as a percentage of participants' compensation and was $60 million, $61 million, and $61 million for fiscal 2015, 2014, and 2013, respectively. Deferred Compensation Plans We maintain nonqualified deferred compensation plans, which permit eligible employees to defer a portion of their compensation. A record keeping account is set up for each participant and the participant chooses from a variety of measurement funds for the deemed investment of their accounts. The measurement funds correspond to a number of funds in our 401(k) plans and the account balance fluctuates with the investment returns on those funds. Total deferred compensation liabilities were $118 million and $108 million at fiscal year end 2015 and 2014, respectively. See Note 14 for additional information regarding our risk management strategy related to deferred compensation liabilities. Postretirement Benefit Plans In addition to providing pension and 401(k) benefits, we also provide certain health care coverage continuation for qualifying retirees from the date of retirement to age 65. The accumulated postretirement benefit obligation was $40 million and $44 million at fiscal year end 2015 and 2014, respectively, and the underfunded status of the postretirement benefit plans was included primarily in long-term pension and postretirement liabilities on the Consolidated Balance Sheets. Activity during fiscal 2015, 2014, and 2013 was not significant. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 25, 2015 | |
Income Taxes | |
Income Taxes | 16. Income Taxes Our operations are conducted through our various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which our operations are conducted and income and loss from operations is subject to taxation. Significant components of the income tax provision (benefit) were as follows: Fiscal 2015 2014 2013 (in millions) Current income tax provision (benefit): U.S.: Federal $ ) $ $ ) State ) ) Non-U.S. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred income tax provision (benefit): U.S.: Federal ) State ) ) Non-U.S. ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision (benefit) for income taxes $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The U.S. and non-U.S. components of income from continuing operations before income taxes were as follows: Fiscal 2015 2014 2013 (in millions) U.S. $ ) $ ) $ ) Non-U.S. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations was as follows: Fiscal 2015 2014 2013 (in millions) Notional U.S. federal income tax provision at the statutory rate $ $ $ Adjustments to reconcile to the income tax provision (benefit): U.S. state income tax provision (benefit), net ) ) Other (income) expense—Tax Sharing Agreement ) Tax law changes ) — Tax credits ) ) ) Non-U.S. net earnings (1) ) ) ) Nondeductible charges — Change in accrued income tax liabilities ) ) Valuation allowance ) ) ) Legal entity restructuring — — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision (benefit) for income taxes $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Excludes nondeductible charges and other items which are broken out separately in the table. The tax provision for fiscal 2015 reflects an income tax benefit of $264 million related to the effective settlement of all undisputed tax matters for the years 2001 through 2010, partially offset by $216 million of income tax charges associated with the tax impacts of certain intercompany legal entity restructurings made in connection with our integration of Measurement Specialties. Also, the tax provision for fiscal 2015 reflects an income tax charge of $29 million associated with the tax impacts of certain intercompany dividends related to the restructuring and sale of BNS. The tax provision for fiscal 2014 reflects income tax benefits of $282 million recognized in connection with a reduction in the valuation allowance associated with certain tax loss carryforwards relating to ADC Telecommunications, Inc. ("ADC"), partially offset by an income tax charge related to adjustments to prior year income tax returns. In fiscal 2014, we acquired SEACON, and its U.S. operations were combined with our ADC U.S. federal consolidated tax group. In addition, the ADC U.S. tax group was combined with other U.S. legal entities and assets. We reassessed the realization of the revised ADC U.S. tax group's tax loss and credit carryforwards. Based upon management's review of forecasted future taxable income of the reorganized combined tax group, we believed it was more likely than not that a tax benefit would be realized on additional U.S. federal and state net operating losses. Accordingly, we reduced the valuation allowance and recorded a tax benefit of $282 million. The tax benefit for fiscal 2013 reflects an income tax benefit of $331 million related to the effective settlement of all undisputed tax matters for the years 1997 through 2000. In addition, the tax benefit for fiscal 2013 reflects $23 million of net tax benefits consisting primarily of income tax benefits recognized in connection with a reduction in the valuation allowance associated with certain ADC tax loss carryforwards and income tax benefits recognized in connection with the lapse of statutes of limitations for examinations of prior year income tax returns, partially offset by income tax expense related to adjustments to prior year income tax returns. Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax asset were as follows: Fiscal Year End 2015 2014 (in millions) Deferred tax assets: Accrued liabilities and reserves $ $ Tax loss and credit carryforwards Inventories Pension and postretirement benefits Deferred revenue Interest Unrecognized income tax benefits Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Intangible assets ) ) Property, plant, and equipment ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset before valuation allowance Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During fiscal 2015, tax loss and credit carryforwards increased due primarily to tax losses of $1,381 million (tax effected) generated in connection with the write-down of investments in subsidiaries in certain jurisdictions. The valuation allowance was increased by a corresponding amount due to the uncertainty of the future realization of these tax losses. At fiscal year end 2015, we had approximately $1,363 million of U.S. federal and $125 million of U.S. state net operating loss carryforwards (tax effected) which will expire in future years through 2035. In addition, at fiscal year end 2015, we had approximately $194 million of U.S. federal tax credit carryforwards, of which $63 million have no expiration and $131 million will expire in future years through 2035, and $40 million of U.S. state tax credits carryforwards which will expire in future years through 2030. Also, at fiscal year end 2015, we had were $20 million of U.S federal capital loss carryforwards (tax effected) which will expire in future years through 2020. At fiscal year end 2015, we had approximately $3,068 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions, of which $3,005 million have no expiration and $63 million will expire in future years through 2035. Also, at fiscal year end 2015, there were $1 million of non-U.S. tax credit carryforwards which have no expiration. In addition, we had approximately $45 million of non-U.S. capital loss carryforwards (tax effected), of which $38 million have no expiration and $7 million will expire in future years through 2020. The valuation allowance for deferred tax assets of $3,237 million and $1,706 million at fiscal year end 2015 and 2014, respectively, relates principally to the uncertainty of the utilization of certain deferred tax assets, primarily tax loss, capital loss, and credit carryforwards in various jurisdictions. We believe that we will generate sufficient future taxable income to realize the income tax benefits related to the remaining net deferred tax assets on the Consolidated Balance Sheet. At fiscal year end 2015, approximately $151 million of the valuation allowance relates to share-based compensation and will be recorded to equity if certain net operating losses and tax credit carryforwards are utilized. We have provided income taxes for earnings that are currently distributed as well as the taxes associated with several subsidiaries' earnings that are expected to be distributed in the future. No additional provision has been made for Swiss or non-Swiss income taxes on the undistributed earnings of subsidiaries or for unrecognized deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as such earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or we have concluded that no additional tax liability will arise as a result of the distribution of such earnings. As of September 25, 2015, certain subsidiaries had approximately $19 billion of cumulative undistributed earnings that have been retained indefinitely and reinvested in our global manufacturing operations, including working capital; property, plant, and equipment; intangible assets; and research and development activities. A liability could arise if our intention to permanently reinvest such earnings were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investments in subsidiaries. As of September 25, 2015, we had approximately $5.2 billion of cash, cash equivalents, and intercompany deposits, principally in our subsidiaries, that we have the ability to distribute to TEGSA, our Luxembourg subsidiary, which is the obligor of substantially all of our debt, and to TE Connectivity Ltd., our Swiss parent company, but we consider to be permanently reinvested. We estimate that up to approximately $1.7 billion of tax expense would be recognized on the Consolidated Financial Statements if our intention to permanently reinvest these amounts were to change. Our current plans do not demonstrate a need to repatriate cash, cash equivalents, and intercompany deposits that are designated as permanently reinvested in order to fund our operations, including investing and financing activities. Uncertain Tax Position Provisions of ASC 740 As of September 25, 2015, we had total unrecognized income tax benefits of $1,368 million. If recognized in future years, $1,291 million of these currently unrecognized income tax benefits would impact the income tax provision and effective tax rate. As of September 26, 2014, we had total unrecognized income tax benefits of $1,595 million. If recognized in future years, $1,450 million of these unrecognized income tax benefits would impact the income tax provision and effective tax rate. The following table summarizes the activity related to unrecognized income tax benefits: Fiscal 2015 2014 2013 (in millions) Balance at beginning of fiscal year $ $ $ Additions related to prior periods tax positions Reductions related to prior periods tax positions ) ) ) Additions related to current period tax positions Acquisitions — — Settlements ) ) ) Reductions due to lapse of applicable statute of limitations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of fiscal year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We record accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of September 25, 2015, we had recorded $1,076 million of accrued interest and penalties related to uncertain tax positions on the Consolidated Balance Sheet, of which $1,073 million was recorded in income taxes and the remainder was recorded in accrued and other current liabilities. 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. During fiscal 2015, 2014, and 2013, we recognized expense of $7 million, expense of $99 million, and benefits of $247 million, respectively, related to interest and penalties on the Consolidated Statements of Operations. We file income tax returns on a unitary, consolidated, or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from 3 to 4 years. Various state and local income tax returns are currently in the process of examination or administrative appeal. Our non-U.S. subsidiaries file income tax returns in the countries in which they have operations. Generally, these countries have statutes of limitations ranging from 3 to 10 years. Various non-U.S. subsidiary income tax returns are currently in the process of examination by taxing authorities. As of September 25, 2015, under applicable statutes, the following tax years remained subject to examination in the major tax jurisdictions indicated: Jurisdiction Open Years Belgium 2014 through 2015 Brazil 2010 through 2015 Canada 2008 through 2015 China 2005 through 2015 Czech Republic 2010 through 2015 France 2012 through 2015 Germany 2008 through 2015 Hong Kong 2009 through 2015 Hungary 2009 through 2015 India 2008 through 2015 Italy 2009 through 2015 Japan 2009 through 2015 Korea 2007 through 2015 Luxembourg 2010 through 2015 Mexico 2009 through 2015 Netherlands 2011 through 2015 Portugal 2012 through 2015 Singapore 2010 through 2015 Spain 2011 through 2015 Switzerland 2010 through 2015 United Kingdom 2013 through 2015 U.S.—federal and state and local 1997 through 2015 In most jurisdictions, taxing authorities retain the ability to review prior tax years and to adjust any net operating loss and tax credit carryforwards from these years that are utilized in a subsequent period. Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $60 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 13 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 Consolidated Balance Sheet as of September 25, 2015. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Sep. 25, 2015 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 17. Other Income (Expense), Net In fiscal 2015, 2014, and 2013, we recorded net other expense of $55 million, net other income of $63 million, and net other expense of $183 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. See Note 12 for further information regarding the Tax Sharing Agreement. The net other expense in fiscal 2015 included $84 million related to the effective settlement of undisputed tax matters for the years 2001 through 2007. The net other income in fiscal 2014 included $18 million of income related to our share of a settlement agreement entered into by Tyco International with a former subsidiary, CIT Group Inc., which arose from a pre-separation claim for which we were entitled to 31% once resolved. The net other expense in fiscal 2013 included $231 million related to the effective settlement of all undisputed tax matters for the years 1997 through 2000. See Note 13 for additional information regarding the effective settlement of undisputed tax matters. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 25, 2015 | |
Earnings Per Share | |
Earnings Per Share | 18. Earnings Per Share The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share was as follows: Fiscal 2015 2014 2013 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ There were one million and three million share options that were not included in the computation of diluted earnings per share for fiscal 2015 and 2013, respectively, because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive. |
Equity
Equity | 12 Months Ended |
Sep. 25, 2015 | |
Equity | |
Equity | 19. Equity Common Shares We are organized under the laws of Switzerland. The rights of holders of our shares are governed by Swiss law, our Swiss articles of association, and our Swiss organizational regulations. Accordingly, the par value of our common shares is stated in Swiss francs ("CHF"). We continue to use the U.S. dollar, however, as our reporting currency on the Consolidated Financial Statements. Subject to certain conditions specified in our articles of association, we are authorized to increase our conditional share capital by issuing new shares in aggregate not exceeding 50% of our authorized shares. Common Shares Held in Treasury At September 25, 2015, approximately 20 million common shares were held in treasury, of which 6 million were owned by one of our subsidiaries. At September 26, 2014, approximately 11 million common shares were held in treasury, of which 9 million were owned by one of our subsidiaries. Shares held both directly by us and by our subsidiary are presented as treasury shares on the Consolidated Balance Sheets. In fiscal 2015, 2014, and 2013, our shareholders approved the cancellation of five million, ten million, and ten million shares, respectively, purchased under our share repurchase program. These capital reductions by cancellation of shares were subject to a notice period and filing with the commercial register in Switzerland. Contributed Surplus Contributed surplus established for Swiss tax and statutory purposes ("Swiss Contributed Surplus"), subject to certain conditions, is a freely distributable reserve. Distributions to shareholders from Swiss Contributed Surplus are free from withholding tax. As of September 25, 2015 and September 26, 2014, Swiss Contributed Surplus was CHF 8,392 million and CHF 8,907 million, respectively (equivalent to $7,505 million and $8,036 million, respectively). Dividends and Distributions to Shareholders Under Swiss law, subject to certain conditions, distributions to shareholders made in the form of a reduction of registered share capital or from reserves from capital contributions (equivalent to Swiss Contributed Surplus) are exempt from Swiss withholding tax. See "Contributed Surplus" for additional information regarding our ability to make distributions free from withholding tax from contributed surplus. Distributions or dividends on our shares must be approved by our shareholders. Our shareholders approved the following dividends and cash distributions on our common shares: Approval Date Payment Type Annual Payment Per Share Payment Dates March 2012 Cash distribution (1) CHF 0.80 (equivalent to $0.84), payable in four quarterly installments of $0.21 Third quarter of fiscal 2012 Fourth quarter of fiscal 2012 First quarter of fiscal 2013 Second quarter of fiscal 2013 March 2013 Dividend payment out of contributed surplus CHF 0.96 (equivalent to $1.00), payable in four quarterly installments of $0.25 Third quarter of fiscal 2013 Fourth quarter of fiscal 2013 First quarter of fiscal 2014 Second quarter of fiscal 2014 March 2014 Dividend payment out of contributed surplus CHF 1.04 (equivalent to $1.16), payable in four quarterly installments of $0.29 Third quarter of fiscal 2014 Fourth quarter of fiscal 2014 First quarter of fiscal 2015 Second quarter of fiscal 2015 March 2015 Dividend payment out of contributed surplus $1.32 (equivalent to CHF 1.27), payable in four quarterly installments of $0.33 Third quarter of fiscal 2015 Fourth quarter of fiscal 2015 First quarter of fiscal 2016 Second quarter of fiscal 2016 (1) The cash distribution in the form of a capital reduction reduced the par value of our common shares from CHF 1.37 (equivalent to $1.28) to CHF 0.57 (equivalent to $0.44). Upon approval by the shareholders of a dividend payment or cash distribution in the form of a capital reduction, we record a liability with a corresponding charge to contributed surplus or common shares. At September 25, 2015 and September 26, 2014, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Consolidated Balance Sheets totaled $260 million and $236 million, respectively. Share Repurchase Program During 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: Fiscal 2015 2014 2013 (in millions) Number of common shares repurchased Amount repurchased $ $ $ At September 25, 2015, we had $2.7 billion of availability remaining under our share repurchase authorization. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 25, 2015 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | 20. Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive income (loss) were as follows: Currency Translation (1) Unrecognized Pension and Postretirement Benefit Costs Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) (in millions) Balance at September 28, 2012 $ $ ) $ ) $ Net other comprehensive income (loss) ) ) Income tax (expense) benefit — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other comprehensive income (loss), net of tax ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 27, 2013 ) ) Other comprehensive loss before reclassifications ) ) ) ) Amounts reclassified from accumulated other comprehensive income (loss) Income tax benefit — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other comprehensive income (loss), net of tax ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 26, 2014 ) ) ) Other comprehensive loss before reclassifications ) ) ) ) Amounts reclassified from accumulated other comprehensive income (loss) (2) Income tax benefit — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other comprehensive income (loss), net of tax ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 25, 2015 $ $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes hedges of net investment foreign exchange gains or losses which offset foreign exchange gains or losses attributable to the translation of the net investments. (2) Represents net currency translation reclassified as a result of the sale of BNS. This net loss is included in income from discontinued operations on the Consolidated Statement of Operations. See Note 4 for additional information regarding the divestiture of BNS. |
Share Plans
Share Plans | 12 Months Ended |
Sep. 25, 2015 | |
Share Plans | |
Share Plans | 21. Share Plans Equity awards (primarily restricted share awards, performance share awards, and share options) granted by us are administered by the management development and compensation committee of our board of directors, which consists exclusively of independent directors. Our plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, as amended and restated, is the primary plan, provide for the award of annual performance bonuses and long-term performance awards, including share options, restricted and performance units, deferred stock units, and other share-based awards (collectively, "Awards") and allow for the use of unissued shares or treasury shares to be used to satisfy such Awards. As of September 25, 2015, our plans provided for a maximum of 67 million shares to be issued as Awards, subject to adjustment as provided under the terms of the plans. A total of 19 million shares remained available for issuance under our plans as of September 25, 2015. Share-Based Compensation Expense Total share-based compensation expense, which was included primarily in selling, general, and administrative expenses on the Consolidated Statements of Operations, was as follows: Fiscal 2015 2014 2013 (in millions) Share-based compensation expense $ $ $ We recognized a related tax benefit associated with our share-based compensation arrangements of $29 million, $24 million, and $22 million in fiscal 2015, 2014, and 2013, respectively. Restricted Share Awards Restricted share awards, which are generally in the form of restricted share units, are granted subject to certain restrictions. Conditions of vesting are determined at the time of grant. All restrictions on an award will lapse upon death or disability of the employee. If the employee satisfies retirement requirements, a portion of the award may vest, depending on the terms and conditions of the particular grant. Recipients of restricted units have no voting rights, but do receive dividend equivalents. For grants that vest through passage of time, the fair value of the award at the time of the grant is amortized to expense over the period of vesting. The fair value of restricted share awards is determined based on the closing value of our shares on the grant date. Restricted share awards generally vest in increments over a period of four years as determined by the management development and compensation committee. A summary of restricted share award activity is presented below: Shares Weighted-Average Grant-Date Fair Value Nonvested at September 26, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at September 25, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average grant-date fair value of restricted share awards granted during fiscal 2015, 2014, and 2013 was $62.45, $52.21, and $34.69, respectively. The total fair value of restricted share awards that vested during fiscal 2015, 2014, and 2013 was $58 million, $52 million, and $51 million, respectively. As of September 25, 2015, there was $87 million of unrecognized compensation cost related to nonvested restricted share awards. The cost is expected to be recognized over a weighted-average period of 1.6 years. Performance Share Awards Performance share awards, which are generally in the form of performance share units, are granted with pay-out subject to vesting requirements and certain performance conditions that are determined at the time of grant. Based on our performance, the pay-out of performance share units can range from 0% to 200% of the number of units originally granted. The grant-date fair value of performance share awards is expensed over the period of performance once achievement of the performance criteria is deemed probable. Recipients of performance share units have no voting rights but do receive dividend equivalents. Performance share awards generally vest after a period of three years as determined by the management development and compensation committee. A summary of performance share award activity is presented below: Shares Weighted-Average Grant-Date Fair Value Outstanding at September 26, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at September 25, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average grant-date fair value of performance share awards granted during fiscal 2015, 2014, and 2013 was $61.65, $51.63, and $34.16, respectively. As of September 25, 2015, there was $15 million of unrecognized compensation cost related to nonvested performance share awards. The cost is expected to be recognized over a weighted-average period of 1.0 years. Share Options Share options are granted to purchase our common shares at prices which are equal to or greater than the market price of the common shares on the date the option is granted. Conditions of vesting are determined at the time of grant. All restrictions on the award will lapse upon death or disability of the employee. If the employee satisfies retirement requirements, a portion of the award may vest, depending on the terms and conditions of the particular grant. Options generally vest and become exercisable in equal annual installments over a period of four years and expire ten years after the date of grant. A summary of share option award activity is presented below: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) Outstanding at September 26, 2014 $ Granted Exercised ) Expired ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at September 25, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and expected to vest at September 25, 2015 $ $ Exercisable at September 25, 2015 $ $ The weighted-average exercise price of share option awards granted during fiscal 2015, 2014, and 2013 were $61.70, $51.78, and $34.27, respectively. The total intrinsic value of options exercised during fiscal 2015, 2014, and 2013 was $107 million, $136 million, and $69 million, respectively. We received cash related to the exercise of options of $103 million, $156 million, and $214 million in fiscal 2015, 2014, and 2013, respectively. The related excess cash tax benefit classified as a financing cash inflow on the Consolidated Statements of Cash Flows for fiscal 2015, 2014, and 2013 was not material. As of September 25, 2015, there was $39 million of unrecognized compensation cost related to nonvested share options granted under our share option plans. The cost is expected to be recognized over a weighted-average period of 1.4 years. Share-Based Compensation Assumptions The grant-date fair value of each share option grant was estimated using the Black-Scholes-Merton option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. We employ our historical share volatility when calculating the grant-date fair value of our share option grants using the Black-Scholes-Merton option pricing model. Currently, we do not have exchange-traded options of sufficient duration to employ an implied volatility assumption in the calculation and therefore rely solely on the historical volatility calculation. For fiscal 2013, we calculated the grant-date fair value of our share option awards utilizing the historical share volatility of a composite of our peers and implied volatility derived from exchange-traded options on that same composite of peers since we did not have historical share price information for a period of time equal to our expected option life assumption. The change in methodology did not have a significant impact on share-based compensation expense during fiscal 2015 or 2014. The average expected life was based on the contractual term of the option and expected employee exercise and post-vesting employment termination behavior. The risk-free interest rate was based on U.S. Treasury zero-coupon issues with a remaining term that approximated the expected life assumed at the date of grant. The expected annual dividend per share was based on our expected dividend rate. The recognized share-based compensation expense was net of estimated forfeitures, which are based on voluntary termination behavior as well as an analysis of actual option forfeitures. The weighted-average grant-date fair value of options granted and the weighted-average assumptions we used in the Black-Scholes-Merton option pricing model were as follows: Fiscal 2015 2014 2013 Weighted-average grant-date fair value $ $ $ Assumptions: Expected share price volatility % % % Risk free interest rate % % % Expected annual dividend per share $ $ $ Expected life of options (in years) |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Sep. 25, 2015 | |
Segment and Geographic Data | |
Segment and Geographic Data | 22. Segment and Geographic Data 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 4 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. We now operate through three reportable segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. See Note 1 for a description of the segments in which we operate. We aggregate our operating segments into reportable segments based upon similar economic characteristics and business groupings of products, services, and customers. Segment performance is evaluated based on net sales and operating income. Generally, we consider all expenses to be of an operating nature and, accordingly, allocate them to each reportable segment. Costs specific to a segment are charged to the segment. Corporate expenses, such as headquarters administrative costs, are allocated to the segments based on segment operating income. Intersegment sales were not material and were recorded at selling prices that approximate market prices. Corporate assets are allocated to the segments based on segment assets. The following segment information reflects our current segment reporting structure. Prior period segment results have been restated to conform to the current segment reporting structure. Net sales and operating income by segment were as follows: Net Sales Operating Income Fiscal Fiscal 2015 2014 2013 2015 2014 2013 (in millions) Transportation Solutions $ $ $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ No single customer accounted for a significant amount of our net sales in fiscal 2015, 2014, and 2013. As we are not organized by product or service, it is not practicable to disclose net sales by product or service. Depreciation and amortization and capital expenditures were as follows: Depreciation and Amortization Capital Expenditures Fiscal Fiscal 2015 2014 2013 2015 2014 2013 (in millions) Transportation Solutions $ $ $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment assets and a reconciliation of segment assets to total assets were as follows: Segment Assets Fiscal Year End 2015 2014 2013 (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. Net sales and net property, plant, and equipment by geographic region were as follows: Net Sales (1) Property, Plant, and Equipment, Net Fiscal Fiscal Year End 2015 2014 2013 2015 2014 2013 (in millions) Americas: U.S. $ $ $ $ $ $ Other Americas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Americas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia–Pacific: China Other Asia–Pacific ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Asia–Pacific ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Europe/Middle East/Africa: Switzerland Germany Other Europe/Middle East/Africa ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Europe/Middle East/Africa ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Net sales to external customers is attributed to individual countries based on the legal entity that records the sale. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Sep. 25, 2015 | |
Quarterly Financial Data (unaudited) | |
Quarterly Financial Data (unaudited) | 23. Quarterly Financial Data (unaudited) Summarized quarterly financial data was as follows: Fiscal 2015 2014 First Quarter (1) Second Quarter Third Quarter Fourth Quarter (2) First Quarter Second Quarter Third Quarter Fourth Quarter (3) (in millions, except per share data) Net sales $ $ $ $ $ $ $ $ Gross margin Acquisition and integration costs — Restructuring and other charges (credits), net ) Amounts attributable to TE Connectivity Ltd.: Income from continuing operations Income (loss) from discontinued operations, net of income taxes ) Net income $ $ $ $ $ $ $ $ Basic earnings per share attributable to TE Connectivity Ltd.: Income from continuing operations $ $ $ $ $ $ $ $ Net income Diluted earnings per share attributable to TE Connectivity Ltd.: Income from continuing operations $ $ $ $ $ $ $ $ Net income (1) Results for the first quarter of fiscal 2015 include $27 million of charges from the amortization of acquisition-related fair value adjustments to acquired inventories and customer order backlog associated primarily with Measurement Specialties. Results for the first quarter of fiscal 2015 also include $189 million of income tax benefits associated with the effective settlement of all undisputed tax matters for the years 2001 through 2007 and the related impact of $83 million to other expense pursuant to the Tax Sharing Agreement with Tyco International and Covidien. (2) Results for the fourth quarter of fiscal 2015 include $216 million of income tax charges associated with the tax impacts of certain intercompany legal entity restructurings made in connection with our integration of Measurement Specialties and $63 million of income tax benefits associated with the effective settlement of all undisputed tax matters for the years 2008 through 2010. In addition, in the fourth quarter of fiscal 2015, income from discontinued operations, net of income taxes includes the gain on the sale of our BNS business. (3) Results for the fourth quarter of fiscal 2014 include $282 million of income tax benefits recognized in connection with a reduction in the valuation allowance associated with certain ADC tax loss carryforwards. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 25, 2015 | |
Subsequent Event: | |
Subsequent Event | 24. Subsequent Event On November 7, 2015, we entered into a definitive agreement to sell our Circuit Protection Devices ("CPD") business for $350 million in cash, subject to a final working capital adjustment. The transaction is expected to close during the second quarter of fiscal 2016 pending customary closing conditions and regulatory approvals. The net assets of the CPD business were approximately $200 million at September 25, 2015. The CPD business is currently reported in our Communications Solutions segment. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 12 Months Ended |
Sep. 25, 2015 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 25. Tyco Electronics Group S.A. Tyco Electronics Group S.A. ("TEGSA"), a Luxembourg company and our 100%-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries. TEGSA is the obligor under our senior notes, commercial paper, and Credit Facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The following tables present condensed consolidating financial information for TE Connectivity Ltd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting. Condensed Consolidating Statement of Operations For the Fiscal Year Ended September 25, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net (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 selling, general, and administrative expenses include losses of $846 million related to intercompany transactions. These losses are offset by corresponding gains recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations For the Fiscal Year Ended September 26, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net (1) ) — 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 loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include losses of $1,874 million related to intercompany transactions. These losses are offset by corresponding gains recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations For the Fiscal Year Ended September 27, 2013 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 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) benefit — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Less: net income attributable to noncontrolling interests — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 As of September 25, 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 — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 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 For the Fiscal Year Ended September 25, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by continuing operating activities (1) $ $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ) Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of business, net of cash acquired — — ) — ) Proceeds from divestiture of discontinued operations, net of cash retained by sold operations — — Change in intercompany loans — ) — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — 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 ) — — ) Intercompany distributions (1) — ) ) — Loan activity with parent — ) — Transfers from discontinued operations — — — Other — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing financing activities ) ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash 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 fiscal year — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of fiscal year $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2015, other subsidiaries made distributions to TEGSA in the amount of $1,326 million and TEGSA made distributions to TE Connectivity Ltd. in the amount of $1,335 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. Condensed Consolidating Statement of Cash Flows For the Fiscal Year Ended September 26, 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 business, net of cash acquired — — ) — ) Intercompany distribution receipts (1) — — ) — Change in intercompany loans — — ) — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — 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 ) — — ) Intercompany distributions (1) — — ) — Loan activity with parent — ) — 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 fiscal year — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of fiscal year $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2014, other subsidiaries made distributions to TEGSA in the amount of $1,981 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. Condensed Consolidating Statement of Cash Flows For the Fiscal Year Ended September 27, 2013 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by continuing operating activities (1) $ $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ) Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — Acquisition of business, net of cash acquired — — ) — ) Proceeds from divestiture of discontinued operations, net of cash retained by sold operations — — — Intercompany distribution receipts (1) — — ) — Change in intercompany loans — — ) — Other ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities ) ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) ) — — Net increase in commercial paper — — — Repayment of long-term debt — ) — — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — ) — ) Payment of common share dividends and cash distributions to shareholders ) — — ) Intercompany distributions (1) — ) ) — Loan activity with parent ) — — Transfers from discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing financing activities ) ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net decrease in cash and cash equivalents — — ) — ) Cash and cash equivalents at beginning of fiscal year — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of fiscal year $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2013, other subsidiaries made distributions to TEGSA in the amount of $3,176 million and TEGSA made distributions to TE Connectivity Ltd. in the amount of $3,800 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 25, 2015 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Fiscal Years Ended September 25, 2015, September 26, 2014, and September 27, 2013 Description Balance at Beginning of Year Additions Charged to Costs and Expenses Acquisitions, Divestitures, and Other Deductions Balance at End of Year (in millions) Fiscal 2015: Allowance for doubtful accounts receivable $ $ $ $ ) $ Valuation allowance on deferred tax assets ) Fiscal 2014: Allowance for doubtful accounts receivable $ $ $ — $ ) $ Valuation allowance on deferred tax assets — ) Fiscal 2013: Allowance for doubtful accounts receivable $ $ $ — $ — $ Valuation allowance on deferred tax assets — ) |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 25, 2015 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation We consolidate entities in which we own or control more than 50% of the voting shares or otherwise have the ability to control through similar rights. All intercompany transactions have been eliminated. The results of companies acquired or disposed of are included on the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. |
Revenue Recognition | Revenue Recognition Our revenues are generated principally from the sale of our products. Revenue from the sale of products is recognized at the time title and the risks and rewards of ownership pass to the customer. This generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured. Contract revenues for construction related projects, which are generated in the Communications Solutions segment, are recorded primarily using the percentage-of-completion method. Profits recognized on contracts in process are based upon estimated contract revenue and related cost to complete. Percentage-of-completion is measured based on the ratio of actual costs incurred to total estimated costs. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the current period. Provisions for anticipated losses are made in the period in which they first become determinable. In addition, provisions for credit losses related to construction related projects are recorded as reductions of revenue in the period in which they first become determinable. We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We accept returned goods only when the customer makes a verified claim and we have authorized the return. Generally, a reserve for estimated returns is established at the time of sale based on historical return experience and is recorded as a reduction of sales. Additionally, certain of our long-term contracts in the Communications Solutions segment have warranty obligations. Estimated warranty costs for each contract are determined based on the contract terms and technology-specific considerations. These costs are included in total estimated contract costs and are accrued over the construction period of the respective contracts under percentage-of-completion accounting. We provide certain distributors with an inventory allowance for returns or scrap equal to a percentage of qualified purchases. A reserve for estimated returns and scrap allowances is established at the time of the sale, based on an agreed upon fixed percentage of sales to distributors, and is recorded as a reduction of sales. Other allowances include customer quantity and price discrepancies. A reserve for other allowances is generally established at the time of sale based on historical experience and is recorded as a reduction of sales. We believe we can reasonably and reliably estimate the amounts of future allowances. |
Inventories | Inventories Inventories are recorded at the lower of cost or market value using the first-in, first-out cost method, except for inventoried costs incurred in the performance of long-term contracts primarily by the Communications Solutions segment. |
Property, Plant and Equipment, Net | Property, Plant, and Equipment, Net Property, plant, and equipment is recorded at cost less accumulated depreciation. Maintenance and repair expenditures are charged to expense when incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are 10 to 20 years for land improvements, 5 to 40 years for buildings and improvements, and 1 to 15 years for machinery and equipment. We periodically evaluate, when events and circumstances warrant, the net realizable value of property, plant, and equipment and other long-lived assets, relying on a number of factors including operating results, business plans, economic projections, and anticipated future cash flows. When indicators of potential impairment are present, the carrying values of the asset group are evaluated in relation to the operating performance and estimated future undiscounted cash flows of the underlying asset group. Impairment of the carrying value is recognized whenever anticipated future undiscounted cash flow estimates are less than the carrying value of the asset. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets include both indeterminable-lived residual goodwill and determinable-lived identifiable intangible assets. Intangible assets with a determinable life primarily include intellectual property, consisting of patents, trademarks, and unpatented technology, as well as customer relationships. Recoverability estimates range from 1 to 50 years and costs are generally amortized on a straight-line basis. An evaluation of the remaining useful life of determinable-lived intangible assets is performed on a periodic basis and when events and circumstances warrant an evaluation. At fiscal year end 2015, we had seven reporting units, six of which contained goodwill. There are two reporting units in each of the Transportation Solutions and Industrial Solutions segments, and three reporting units in the Communications Solutions segment. When changes occur in the composition of one or more reporting units, goodwill is reassigned to the reporting units affected based on their relative fair values. Goodwill impairment is evaluated by comparing the carrying value of each reporting unit to its fair value on the first day of the fourth fiscal quarter of each year or whenever we believe a triggering event requiring a more frequent assessment has occurred. In assessing the existence of a triggering event, management relies on a number of reporting-unit-specific factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and market place data. There are inherent uncertainties related to these factors and management's judgment in applying these factors to the impairment analysis. When testing for goodwill impairment, we perform a step I goodwill impairment test to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, goodwill may be impaired and a step II goodwill impairment test is performed to measure the amount of impairment, if any. In the step II goodwill impairment test, we compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The implied fair value of goodwill is determined in a manner consistent with how goodwill is recognized in a business combination. We allocate the fair value of a reporting unit to all of the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination. Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. Fair value estimates used in the step I goodwill impairment tests are calculated using an income approach based on the present value of future cash flows of each reporting unit. The income approach generally has been supported by guideline analyses (a market approach). These approaches incorporate a number of assumptions including future growth rates, discount rates, income tax rates, and market activity in assessing fair value and are reporting unit specific. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. |
Research and Development | Research and Development Research and development expenditures are expensed when incurred and are included in research, development, and engineering expenses on the Consolidated Statements of Operations. Research and development expenses include salaries, direct costs incurred, and building and overhead expenses. The amounts expensed in fiscal 2015, 2014, and 2013 were $540 million, $484 million, and $494 million, respectively. |
Income Taxes | Income Taxes Income taxes are computed in accordance with the provisions of Accounting Standards Codification ("ASC") 740, Income Taxes . Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected on the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carryforwards using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The calculation of our tax liabilities includes estimates for uncertainties in the application of complex tax regulations across multiple global jurisdictions where we conduct our operations. Under the uncertain tax position provisions of ASC 740, we recognize liabilities for tax and related interest for issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes and related interest will be due. In addition, management reviews with tax counsel various issues raised by certain taxing authorities and the adequacy of recorded amounts. These tax liabilities and related interest are reflected net of the impact of related tax loss carryforwards, as such tax loss carryforwards will be applied against these tax liabilities and will reduce the amount of cash tax payments due upon the eventual settlement with the tax authorities. These estimates may change due to changing facts and circumstances. Due to the complexity of these uncertainties, the ultimate resolution may result in a settlement that differs from our current estimate of the tax liabilities and related interest. |
Financial Instruments | Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt, and derivative financial instruments. We account for derivative financial instrument contracts on the Consolidated Balance Sheets at fair value. For instruments not designated as hedges under ASC 815, Derivatives and Hedging , the changes in the instruments' fair value are recognized currently in earnings. For instruments designated as cash flow hedges, the effective portion of changes in the fair value of a derivative is recorded in other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the underlying hedged item affects earnings. Ineffective portions of a cash flow hedge, including amounts excluded from the hedging relationship, are recognized currently in earnings. Changes in the fair value of instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized currently in earnings. We determine the fair value of our financial instruments by using methods and assumptions that are based on market conditions and risks existing at each balance sheet date. Standard market conventions are used to determine the fair value of financial instruments, including derivatives. The cash flows related to derivative financial instruments are reported in the operating activities section of the Consolidated Statements of Cash Flows. Our derivative financial instruments present certain market and counterparty risks. Concentration of counterparty risk is mitigated, however, by our use of financial institutions worldwide, substantially all of which have long-term Standard & Poor's, Moody's, and/or Fitch credit ratings of A/A2 or higher. In addition, we utilize only conventional derivative financial instruments. We are exposed to potential losses if a counterparty fails to perform according to the terms of its agreement. With respect to counterparty net asset positions recognized at September 25, 2015, we have assessed the likelihood of counterparty default as remote. We currently provide guarantees from a wholly-owned subsidiary to the counterparties to our commodity swap derivatives and exchange cash collateral with the counterparties to our cross-currency swap contracts. The likelihood of performance on the guarantees has been assessed as remote. For all other derivative financial instruments, we are not required to provide, nor do we require counterparties to provide, collateral or other security. |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures , specifies a fair value hierarchy based upon the observable inputs utilized in valuation of certain assets and liabilities. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy: • Level 1. Quoted prices in active markets for identical assets and liabilities. • Level 2. Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flows methodologies, and similar techniques that use significant unobservable inputs. Financial assets and liabilities measured at fair value on a recurring basis are generally valued using level 2 inputs. Financial instruments other than derivative instruments include cash and cash equivalents, accounts receivable, accounts payable, and debt. These instruments are recorded on the Consolidated Balance Sheets at book value. For cash and cash equivalents, accounts receivable, and accounts payable, we believe book value approximates fair value due to the short-term nature of these instruments. See Note 11 for disclosure of the fair value of debt. The following is a description of the valuation methodologies used for the respective financial instruments: • Cash and cash equivalents. Cash and cash equivalents are valued at book value, which we consider to be equivalent to unadjusted quoted prices (level 1). • Accounts receivable. Accounts receivable are valued based on the net value expected to be realized. The net realizable value generally represents an observable contractual agreement (level 2). • Accounts payable. Accounts payable are valued based on the net value expected to be paid, generally supported by an observable contractual agreement (level 2). • Long-term debt. The fair value of long-term debt, including both current and non-current maturities, is derived from quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2). |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The funded status of our defined benefit pension and postretirement benefit plans is recognized on the Consolidated Balance Sheets and is measured as the difference between the fair value of plan assets and the benefit obligation at the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which represents the actuarial present value of benefits expected to be paid upon retirement factoring in estimated future compensation levels. For the postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of cumulative company and participant contributions made to irrevocable trust funds, held for the sole benefit of participants, which are invested by the trustee of the funds. The benefits under pension and postretirement plans are based on various factors, such as years of service and compensation. Net periodic pension benefit cost is based on the utilization of the projected unit credit method of calculation and is charged to earnings on a systematic basis over the expected average remaining service lives of current participants. The measurement of benefit obligations and net periodic benefit cost is based on estimates and assumptions determined by our management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age, and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates, and mortality rates. |
Share-Based Compensation | Share-Based Compensation We determine the fair value of share awards on the date of grant. Share options are valued using the Black-Scholes-Merton valuation model; restricted share awards and performance awards are valued using our end-of-day share price on the date of grant. The fair value is expensed ratably over the expected service period, with an allowance made for estimated forfeitures based on historical employee activity. Estimates regarding the attainment of performance criteria are reviewed periodically; the cumulative impact of a change in estimate regarding the attainment of performance criteria is recorded in the period in which that change is made. |
Earnings Per Share | Earnings Per Share Basic earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the basic weighted-average number of common shares outstanding. Diluted earnings per share attributable to TE Connectivity Ltd. is computed by dividing net income attributable to TE Connectivity Ltd. by the weighted-average number of common shares outstanding adjusted for the potentially dilutive impact of share-based compensation arrangements. |
Currency Translation | Currency Translation For our non-U.S. dollar functional currency subsidiaries, assets and liabilities are translated into U.S. dollars using fiscal year end exchange rates. Sales and expenses are translated at average monthly exchange rates. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) within equity. Gains and losses resulting from foreign currency transactions, which are included in earnings, were immaterial in fiscal 2015, 2014, and 2013. |
Restructuring Charges | Restructuring Charges Restructuring activities involve employee-related termination costs, facility exit costs, and asset impairments resulting from reductions-in-force, migration of facilities or product lines from higher-cost to lower-cost countries, or consolidation of facilities within countries. We recognize termination costs based on requirements established by severance policy, government law, or previous actions. Facility exit costs generally reflect the cost to terminate a facility lease before the end of its term (measured at fair value at the time we cease using the facility) or costs that will continue to be incurred under the facility lease without future economic benefit to us. Restructuring activities often result in the disposal or abandonment of assets that require an acceleration of depreciation or impairment reflecting the excess of the assets' carrying values over fair value. The recognition of restructuring costs require that we make certain judgments and estimates regarding the nature, timing, and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimated liabilities, requiring the recognition of additional restructuring costs or the reduction of liabilities already recognized. At the end of each reporting period, we evaluate the remaining accrued balances to ensure these balances are properly stated and the utilization of the reserves are for their intended purpose in accordance with developed exit plans. |
Acquisitions | Acquisitions We account for acquired businesses using the acquisition method of accounting. This method requires, among other things, that most assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. We allocate the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values, or as required by ASC 805, Business Combinations . The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. We may engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. |
Contingent Liabilities | Contingent Liabilities We record a loss contingency when the available information indicates it is probable that we have incurred a liability and the amount of the loss is reasonably estimable. When a range of possible losses with equal likelihood exists, we record the low end of the range. The likelihood of a loss with respect to a particular contingency is often difficult to predict, and determining a meaningful estimate of the loss or a range of loss may not be practicable based on information available. In addition, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must continuously be evaluated to determine whether a loss is probable and a reasonable estimate of that loss can be made. When a loss is probable but a reasonable estimate cannot be made, or when a loss is at least reasonably possible, disclosure is provided. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASC 606, Revenue from Contracts with Customers . This guidance supersedes ASC 605, Revenue Recognition , and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. In August 2015, the FASB deferred the effective date of ASC 606 by one year. ASC 606 will be effective for us in the first quarter of fiscal 2019 and allows for either a full retrospective or a modified retrospective approach at adoption. We are continuing to assess the impact of adopting ASC 606, but do not expect adoption to have a material impact on our results of operations or financial position. |
Restructuring and Other Charg35
Restructuring and Other Charges, Net (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Restructuring and Other Charges, Net | |
Schedule of restructuring and other charges | Fiscal 2015 2014 2013 (in millions) Restructuring charges, net $ $ $ Other charges (credits), net ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net restructuring charges by segment | Fiscal 2015 2014 2013 (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of activity in restructuring reserves | Balance at Beginning of Fiscal Year Charges Changes in Estimate Cash Payments Non-Cash Items Currency Translation and Other (1) Balance at End of Fiscal Year (in millions) Fiscal 2015 Activity: 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 — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2013 Actions: Employee severance — ) ) — ) Facility and other exit costs — ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2013 Actions: Employee severance ) ) — ) Facility and other exit costs — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fiscal 2015 activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2014 Activity: Fiscal 2014 Actions: Employee severance $ — $ $ — $ ) $ — $ $ Facility and other exit costs — — — — — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2013 Actions: Employee severance ) ) — Facility and other exit costs — ) — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2013 Actions: Employee severance ) ) — — Facility and other exit costs ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fiscal 2014 activity $ $ $ ) $ ) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2013 Activity: Fiscal 2013 Actions: Employee severance $ — $ $ ) $ ) $ — $ $ Facility and other exit costs — — ) — — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2013 Actions: Employee severance ) ) — ) Facility and other exit costs ) — Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fiscal 2013 activity $ $ $ ) $ ) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes net charges (credits) associated with discontinued operations of $(1) million, $36 million, and $65 million in fiscal 2015, 2014, and 2013, respectively. |
Restructuring reserves included on Condensed Consolidated Balance Sheets | Fiscal Year End 2015 2014 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Discontinued Operations. | |
Schedule of components of income from discontinued operations, net of income taxes and assets and liabilities held for sale | Fiscal 2015 2014 2013 (in millions) Net sales from discontinued operations $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income from discontinued operations $ $ $ Pre-tax gain (loss) on sale of discontinued operations — ) Income tax expense ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from discontinued operations, net of income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents balance sheet information for assets and liabilities held for sale fiscal year end 2014; there were no such balances at fiscal year end 2015: Fiscal Year End 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 | 12 Months Ended |
Sep. 25, 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 Fiscal 2015 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) | 12 Months Ended |
Sep. 25, 2015 | |
Inventories. | |
Schedule of inventories | Fiscal Year End 2015 2014 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Property, Plant, and Equipmen39
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Property, Plant, and Equipment, Net | |
Components of net property, plant, and equipment | Fiscal Year End 2015 2014 (in millions) Land and improvements $ $ Buildings and improvements Machinery and equipment Construction in process ​ ​ ​ ​ ​ ​ ​ ​ Gross property, plant, and equipment Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property, plant, and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Goodwill | |
Changes in the carrying amount of goodwill by segment | Transportation Solutions Industrial Solutions Communications Solutions Total (in millions) September 27, 2013 (2) $ $ $ $ Acquisitions — Currency translation and other ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 26, 2014 (2) Acquisitions — Currency translation ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 25, 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 22 for additional information regarding our current segment structure. (2) At fiscal year end 2015, 2014, and 2013, 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) | 12 Months Ended |
Sep. 25, 2015 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | Fiscal Year End 2015 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) Fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Accrued and Other Current Lia42
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Accrued and Other Current Liabilities | |
Components of accrued and other current liabilities | Fiscal Year End 2015 2014 (in millions) Accrued payroll and employee benefits $ $ Dividends payable to shareholders Income taxes payable Share repurchase program payable Restructuring reserves Interest payable Deferred income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ Accrued and other current liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Debt | |
Schedule of debt | Fiscal Year End 2015 2014 (in millions) Current maturities of long-term debt: 1.60% senior notes due 2015 $ — $ Senior floating rate notes due 2016 (1) — Commercial paper, at a weighted-average interest rate of 0.30% at September 26, 2014 — ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt: Senior floating rate notes due 2016 (1) — 6.55% senior notes due 2017 2.375% senior notes due 2018 2.35% senior notes due 2019 4.875% senior notes due 2021 3.50% senior notes due 2022 1.100% senior notes due 2023 — 3.45% senior notes due 2024 7.125% senior notes due 2037 Other — ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ Total debt (2) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The senior floating rate notes due 2016 bear interest at a rate of three-month London interbank offered rate ("LIBOR") plus 0.20% per year. (2) Senior notes are presented at face amount and, if applicable, are net of unamortized discount and the effects of interest rate swaps designated as fair value hedges. |
Aggregate amounts of total debt maturing during the next five years and thereafter | (in millions) Fiscal 2016 $ Fiscal 2017 — Fiscal 2018 Fiscal 2019 Fiscal 2020 — Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Commitments and Contingencies | |
Schedule of minimum lease payment obligations under non-cancelable lease obligations | (in millions) Fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Retirement Plans (Tables)
Retirement Plans (Tables) - Defined Benefit Pension Plans | 12 Months Ended |
Sep. 25, 2015 | |
Defined benefit plans and other postretirement benefit plans | |
Net periodic pension benefit cost | U.S. Plans Non-U.S. Plans Fiscal Fiscal 2015 2014 2013 2015 2014 2013 ($ in millions) Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of net actuarial loss Other — — — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average assumptions used to determine net pension benefit cost during the fiscal year: Discount rate % % % % % % Expected return on plan assets % % % % % % Rate of compensation increase — % — % — % % % % |
Changes in benefit obligation and plan assets and the net amount recognized on the Consolidated Balance Sheets | U.S. Plans Non-U.S. Plans Fiscal Fiscal 2015 2014 2015 2014 ($ in millions) Change in benefit obligation: Benefit obligation at beginning of fiscal year $ $ $ $ Service cost Interest cost Actuarial loss Benefits and administrative expenses paid ) ) ) ) Currency translation — — ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit obligation at end of fiscal year ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in plan assets: Fair value of plan assets at beginning of fiscal year Actual return on plan assets ) Employer contributions Benefits and administrative expenses paid ) ) ) ) Currency translation — — ) ) Other — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at end of fiscal year ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funded status $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recognized on the Consolidated Balance Sheets: Accrued and other current liabilities $ ) $ ) $ ) $ ) Long-term pension and postretirement liabilities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net amount recognized $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: Discount rate % % % % Rate of compensation increase — % — % % % |
Pre-tax amounts recognized in accumulated other comprehensive income (loss) for all U.S. and non-U.S. defined benefit pension plans | U.S. Plans Non-U.S. Plans Fiscal Fiscal 2015 2014 2015 2014 (in millions) Change in net loss: Unrecognized net loss at beginning of fiscal year $ $ $ $ Current year change recorded in accumulated other comprehensive income (loss) Amortization reclassified to earnings ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized net loss at end of fiscal year $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in prior service credit: Unrecognized prior service credit at beginning of fiscal year $ — $ — $ ) $ ) Current year change recorded in accumulated other comprehensive income (loss) — — ) ) Amortization reclassified to earnings — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized prior service credit at end of fiscal year $ — $ — $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Target weighted average asset allocation and weighted average asset allocation for U.S. and non-U.S. pension plans | U.S. Plans Non-U.S. Plans Target Fiscal Year End 2015 Fiscal Year End 2014 Target Fiscal Year End 2015 Fiscal Year End 2014 Asset category: Equity securities % % % % % % Debt securities Insurance contracts and other investments — — — Real estate investments — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Expected future benefit payments | U.S. Plans Non-U.S. Plans (in millions) Fiscal 2016 $ $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021-2025 |
Accumulated benefit obligation and fair value of plan assets for U.S. and non-U.S. pension plans with accumulated benefit obligations in excess of plan assets | U.S. Plans Non-U.S. Plans Fiscal Year End Fiscal Year End 2015 2014 2015 2014 (in millions) Accumulated benefit obligation $ $ $ $ Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation Fair value of plan assets Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation Fair value of plan assets |
Defined benefit pension plans' asset categories and associated fair value | Fiscal Year End 2015 U.S. Plans Non-U.S. Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Equity: U.S. equity securities (1) $ $ — $ — $ $ $ — $ — $ Non-U.S. equity securities (1) — — — — Commingled equity funds (2) — — — — — — Fixed income: Government bonds (3) — — — — Corporate bonds (4) — — — — Commingled bond funds (5) — — — — — — Other (6) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Subtotal $ $ $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Items to reconcile to fair value of plan assets (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year End 2014 U.S. Plans Non-U.S. Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Equity: U.S. equity securities (1) $ $ — $ — $ $ $ — $ — $ Non-U.S. equity securities (1) — — — — Commingled equity funds (2) — — — — — — Fixed income: Government bonds (3) — — — — Corporate bonds (4) — — — — Commingled bond funds (5) — — — — — — Other (6) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Subtotal $ $ $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Items to reconcile to fair value of plan assets (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) U.S. and non-U.S. equity securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. (2) Commingled equity funds are pooled investments in multiple equity-type securities. Fair value is calculated as the closing price of the underlying investments, an observable market condition, divided by the number of shares of the fund outstanding. (3) Government bonds are marked to fair value based on quoted market prices or market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves. (4) Corporate bonds are marked to fair value based on quoted market prices or market approach valuation models using observable market data such as quotes, spreads, and data points for yield curves. (5) Commingled bond funds are pooled investments in multiple debt-type securities. Fair value is calculated as the closing price of the underlying investments, an observable market condition, divided by the number of shares of the fund outstanding. (6) Other investments are composed of insurance contracts, derivatives, short-term investments, structured products such as collateralized obligations and mortgage- and asset-backed securities, real estate investments, and hedge funds. Insurance contracts are valued using cash surrender value, or face value of the contract if a cash surrender value is unavailable (level 2), as these values represent the amount that the plan would receive on termination of the underlying contract. Derivatives, short-term investments, and structured products are marked to fair value using models that are supported by observable market based data (level 2). Real estate investments include investments in commingled real estate funds and are valued at net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). Hedge funds are valued at their net asset value which is calculated using unobservable inputs that are supported by little or no market activity (level 3). (7) Items to reconcile to fair value of plan assets include amounts receivable for securities sold, amounts payable for securities purchased, and any cash balances, considered to be carried at book value, that are held in the plans. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Income Taxes | |
Significant components of the income tax provision (benefit) | Fiscal 2015 2014 2013 (in millions) Current income tax provision (benefit): U.S.: Federal $ ) $ $ ) State ) ) Non-U.S. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred income tax provision (benefit): U.S.: Federal ) State ) ) Non-U.S. ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision (benefit) for income taxes $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
U.S. and non-U.S. components of income from continuing operations before income taxes | Fiscal 2015 2014 2013 (in millions) U.S. $ ) $ ) $ ) Non-U.S. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations | Fiscal 2015 2014 2013 (in millions) Notional U.S. federal income tax provision at the statutory rate $ $ $ Adjustments to reconcile to the income tax provision (benefit): U.S. state income tax provision (benefit), net ) ) Other (income) expense—Tax Sharing Agreement ) Tax law changes ) — Tax credits ) ) ) Non-U.S. net earnings (1) ) ) ) Nondeductible charges — Change in accrued income tax liabilities ) ) Valuation allowance ) ) ) Legal entity restructuring — — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision (benefit) for income taxes $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Excludes nondeductible charges and other items which are broken out separately in the table. |
Components of net deferred income tax asset | Fiscal Year End 2015 2014 (in millions) Deferred tax assets: Accrued liabilities and reserves $ $ Tax loss and credit carryforwards Inventories Pension and postretirement benefits Deferred revenue Interest Unrecognized income tax benefits Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Intangible assets ) ) Property, plant, and equipment ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset before valuation allowance Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Activity of unrecognized income tax benefits | Fiscal 2015 2014 2013 (in millions) Balance at beginning of fiscal year $ $ $ Additions related to prior periods tax positions Reductions related to prior periods tax positions ) ) ) Additions related to current period tax positions Acquisitions — — Settlements ) ) ) Reductions due to lapse of applicable statute of limitations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of fiscal year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Tax years subject to examination in major tax jurisdictions | Jurisdiction Open Years Belgium 2014 through 2015 Brazil 2010 through 2015 Canada 2008 through 2015 China 2005 through 2015 Czech Republic 2010 through 2015 France 2012 through 2015 Germany 2008 through 2015 Hong Kong 2009 through 2015 Hungary 2009 through 2015 India 2008 through 2015 Italy 2009 through 2015 Japan 2009 through 2015 Korea 2007 through 2015 Luxembourg 2010 through 2015 Mexico 2009 through 2015 Netherlands 2011 through 2015 Portugal 2012 through 2015 Singapore 2010 through 2015 Spain 2011 through 2015 Switzerland 2010 through 2015 United Kingdom 2013 through 2015 U.S.—federal and state and local 1997 through 2015 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Earnings Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | Fiscal 2015 2014 2013 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Equity | |
Schedule of dividends and cash distributions to shareholders | Approval Date Payment Type Annual Payment Per Share Payment Dates March 2012 Cash distribution (1) CHF 0.80 (equivalent to $0.84), payable in four quarterly installments of $0.21 Third quarter of fiscal 2012 Fourth quarter of fiscal 2012 First quarter of fiscal 2013 Second quarter of fiscal 2013 March 2013 Dividend payment out of contributed surplus CHF 0.96 (equivalent to $1.00), payable in four quarterly installments of $0.25 Third quarter of fiscal 2013 Fourth quarter of fiscal 2013 First quarter of fiscal 2014 Second quarter of fiscal 2014 March 2014 Dividend payment out of contributed surplus CHF 1.04 (equivalent to $1.16), payable in four quarterly installments of $0.29 Third quarter of fiscal 2014 Fourth quarter of fiscal 2014 First quarter of fiscal 2015 Second quarter of fiscal 2015 March 2015 Dividend payment out of contributed surplus $1.32 (equivalent to CHF 1.27), payable in four quarterly installments of $0.33 Third quarter of fiscal 2015 Fourth quarter of fiscal 2015 First quarter of fiscal 2016 Second quarter of fiscal 2016 (1) The cash distribution in the form of a capital reduction reduced the par value of our common shares from CHF 1.37 (equivalent to $1.28) to CHF 0.57 (equivalent to $0.44). |
Schedule of common shares repurchased | Fiscal 2015 2014 2013 (in millions) Number of common shares repurchased Amount repurchased $ $ $ |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Accumulated Other Comprehensive Income (Loss). | |
Components of accumulated other comprehensive income | Currency Translation (1) Unrecognized Pension and Postretirement Benefit Costs Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) (in millions) Balance at September 28, 2012 $ $ ) $ ) $ Net other comprehensive income (loss) ) ) Income tax (expense) benefit — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other comprehensive income (loss), net of tax ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 27, 2013 ) ) Other comprehensive loss before reclassifications ) ) ) ) Amounts reclassified from accumulated other comprehensive income (loss) Income tax benefit — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other comprehensive income (loss), net of tax ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 26, 2014 ) ) ) Other comprehensive loss before reclassifications ) ) ) ) Amounts reclassified from accumulated other comprehensive income (loss) (2) Income tax benefit — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other comprehensive income (loss), net of tax ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 25, 2015 $ $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes hedges of net investment foreign exchange gains or losses which offset foreign exchange gains or losses attributable to the translation of the net investments. (2) Represents net currency translation reclassified as a result of the sale of BNS. This net loss is included in income from discontinued operations on the Consolidated Statement of Operations. See Note 4 for additional information regarding the divestiture of BNS. |
Share Plans (Tables)
Share Plans (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Share Plans | |
Share-based compensation expense | Fiscal 2015 2014 2013 (in millions) Share-based compensation expense $ $ $ |
Summary of restricted share award activity | Shares Weighted-Average Grant-Date Fair Value Nonvested at September 26, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at September 25, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of performance shares award activity | Shares Weighted-Average Grant-Date Fair Value Outstanding at September 26, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at September 25, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of share option award activity. | Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) Outstanding at September 26, 2014 $ Granted Exercised ) Expired ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at September 25, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and expected to vest at September 25, 2015 $ $ Exercisable at September 25, 2015 $ $ |
Weighted-average assumptions | Fiscal 2015 2014 2013 Weighted-average grant-date fair value $ $ $ Assumptions: Expected share price volatility % % % Risk free interest rate % % % Expected annual dividend per share $ $ $ Expected life of options (in years) |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Segment and Geographic Data | |
Net sales and operating income by business segment | Net Sales Operating Income Fiscal Fiscal 2015 2014 2013 2015 2014 2013 (in millions) Transportation Solutions $ $ $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Depreciation and amortization and capital expenditures by segment | Depreciation and Amortization Capital Expenditures Fiscal Fiscal 2015 2014 2013 2015 2014 2013 (in millions) Transportation Solutions $ $ $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment assets and a reconciliation of segment assets to total assets | Segment Assets Fiscal Year End 2015 2014 2013 (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. |
Net sales and net property, plant, and equipment by geographic region | Net Sales (1) Property, Plant, and Equipment, Net Fiscal Fiscal Year End 2015 2014 2013 2015 2014 2013 (in millions) Americas: U.S. $ $ $ $ $ $ Other Americas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Americas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asia–Pacific: China Other Asia–Pacific ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Asia–Pacific ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Europe/Middle East/Africa: Switzerland Germany Other Europe/Middle East/Africa ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Europe/Middle East/Africa ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Net sales to external customers is attributed to individual countries based on the legal entity that records the sale. |
Quarterly Financial Data (una52
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Quarterly Financial Data (unaudited) | |
Schedule of Quarterly Financial Information | Fiscal 2015 2014 First Quarter (1) Second Quarter Third Quarter Fourth Quarter (2) First Quarter Second Quarter Third Quarter Fourth Quarter (3) (in millions, except per share data) Net sales $ $ $ $ $ $ $ $ Gross margin Acquisition and integration costs — Restructuring and other charges (credits), net ) Amounts attributable to TE Connectivity Ltd.: Income from continuing operations Income (loss) from discontinued operations, net of income taxes ) Net income $ $ $ $ $ $ $ $ Basic earnings per share attributable to TE Connectivity Ltd.: Income from continuing operations $ $ $ $ $ $ $ $ Net income Diluted earnings per share attributable to TE Connectivity Ltd.: Income from continuing operations $ $ $ $ $ $ $ $ Net income (1) Results for the first quarter of fiscal 2015 include $27 million of charges from the amortization of acquisition-related fair value adjustments to acquired inventories and customer order backlog associated primarily with Measurement Specialties. Results for the first quarter of fiscal 2015 also include $189 million of income tax benefits associated with the effective settlement of all undisputed tax matters for the years 2001 through 2007 and the related impact of $83 million to other expense pursuant to the Tax Sharing Agreement with Tyco International and Covidien. (2) Results for the fourth quarter of fiscal 2015 include $216 million of income tax charges associated with the tax impacts of certain intercompany legal entity restructurings made in connection with our integration of Measurement Specialties and $63 million of income tax benefits associated with the effective settlement of all undisputed tax matters for the years 2008 through 2010. In addition, in the fourth quarter of fiscal 2015, income from discontinued operations, net of income taxes includes the gain on the sale of our BNS business. (3) Results for the fourth quarter of fiscal 2014 include $282 million of income tax benefits recognized in connection with a reduction in the valuation allowance associated with certain ADC tax loss carryforwards. |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 12 Months Ended |
Sep. 25, 2015 | |
Tyco Electronics Group S.A. | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations For the Fiscal Year Ended September 25, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net (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 selling, general, and administrative expenses include losses of $846 million related to intercompany transactions. These losses are offset by corresponding gains recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations For the Fiscal Year Ended September 26, 2014 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net (1) ) — 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 loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income attributable to TE Connectivity Ltd., TEGSA, or Other Subsidiaries $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include losses of $1,874 million related to intercompany transactions. These losses are offset by corresponding gains recorded by Other Subsidiaries. Condensed Consolidating Statement of Operations For the Fiscal Year Ended September 27, 2013 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 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) benefit — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Less: net income attributable to noncontrolling interests — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 As of September 25, 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 — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 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 For the Fiscal Year Ended September 25, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by continuing operating activities (1) $ $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ) Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of business, net of cash acquired — — ) — ) Proceeds from divestiture of discontinued operations, net of cash retained by sold operations — — Change in intercompany loans — ) — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — 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 ) — — ) Intercompany distributions (1) — ) ) — Loan activity with parent — ) — Transfers from discontinued operations — — — Other — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing financing activities ) ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash 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 fiscal year — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of fiscal year $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2015, other subsidiaries made distributions to TEGSA in the amount of $1,326 million and TEGSA made distributions to TE Connectivity Ltd. in the amount of $1,335 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. Condensed Consolidating Statement of Cash Flows For the Fiscal Year Ended September 26, 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 business, net of cash acquired — — ) — ) Intercompany distribution receipts (1) — — ) — Change in intercompany loans — — ) — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — 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 ) — — ) Intercompany distributions (1) — — ) — Loan activity with parent — ) — 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 fiscal year — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of fiscal year $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2014, other subsidiaries made distributions to TEGSA in the amount of $1,981 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. Condensed Consolidating Statement of Cash Flows For the Fiscal Year Ended September 27, 2013 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by continuing operating activities (1) $ $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ) Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — Acquisition of business, net of cash acquired — — ) — ) Proceeds from divestiture of discontinued operations, net of cash retained by sold operations — — — Intercompany distribution receipts (1) — — ) — Change in intercompany loans — — ) — Other ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities ) ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) ) — — Net increase in commercial paper — — — Repayment of long-term debt — ) — — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — ) — ) Payment of common share dividends and cash distributions to shareholders ) — — ) Intercompany distributions (1) — ) ) — Loan activity with parent ) — — Transfers from discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing financing activities ) ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net decrease in cash and cash equivalents — — ) — ) Cash and cash equivalents at beginning of fiscal year — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of fiscal year $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2013, other subsidiaries made distributions to TEGSA in the amount of $3,176 million and TEGSA made distributions to TE Connectivity Ltd. in the amount of $3,800 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Sep. 25, 2015segment | |
Basis of Presentation | |
Number of reportable segments | 3 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015USD ($)item | Sep. 26, 2014USD ($) | Sep. 27, 2013USD ($) | |
Summary of Significant Accounting Policies | |||
Percentage of voting shares that triggers consolidation, minimum | 50.00% | ||
Research and development expenditures | $ | $ 540 | $ 484 | $ 494 |
Goodwill and Other Intangible Assets | |||
Number of reporting units | 7 | ||
Number of reporting units containing goodwill | 6 | ||
Transportation Solutions | |||
Goodwill and Other Intangible Assets | |||
Number of reporting units | 2 | ||
Industrial Solutions | |||
Goodwill and Other Intangible Assets | |||
Number of reporting units | 2 | ||
Communications Solutions | |||
Goodwill and Other Intangible Assets | |||
Number of reporting units | 3 | ||
Minimum | |||
Goodwill and Other Intangible Assets | |||
Useful life of intangible assets with a determinable life | 1 year | ||
Maximum | |||
Goodwill and Other Intangible Assets | |||
Useful life of intangible assets with a determinable life | 50 years | ||
Land and improvements | Minimum | |||
Property, Plant, and Equipment, Net and Long-Lived Assets | |||
Estimated useful life | 10 years | ||
Land and improvements | Maximum | |||
Property, Plant, and Equipment, Net and Long-Lived Assets | |||
Estimated useful life | 20 years | ||
Buildings and improvements | Minimum | |||
Property, Plant, and Equipment, Net and Long-Lived Assets | |||
Estimated useful life | 5 years | ||
Buildings and improvements | Maximum | |||
Property, Plant, and Equipment, Net and Long-Lived Assets | |||
Estimated useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant, and Equipment, Net and Long-Lived Assets | |||
Estimated useful life | 1 year | ||
Machinery and equipment | Maximum | |||
Property, Plant, and Equipment, Net and Long-Lived Assets | |||
Estimated useful life | 15 years |
Restructuring and Other Charg56
Restructuring and Other Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Restructuring and other charges, net: | |||||||||||
Restructuring charges, net | $ 93 | $ 23 | $ 225 | ||||||||
Other charges (credits), net | 59 | (4) | (3) | ||||||||
Restructuring and other charges, net | $ 70 | $ 19 | $ 38 | $ 25 | $ 4 | $ 10 | $ (1) | $ 6 | 152 | 19 | 222 |
Transportation Solutions | |||||||||||
Restructuring and other charges, net: | |||||||||||
Restructuring charges, net | 6 | 7 | 39 | ||||||||
Industrial Solutions | |||||||||||
Restructuring and other charges, net: | |||||||||||
Restructuring charges, net | 29 | 7 | 62 | ||||||||
Communications Solutions | |||||||||||
Restructuring and other charges, net: | |||||||||||
Restructuring charges, net | $ 58 | $ 9 | $ 124 |
Restructuring and Other Charg57
Restructuring and Other Charges, Net (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | $ 114 | $ 237 | $ 161 |
Charges | 97 | 42 | 259 |
Changes in Estimate | (4) | (19) | (34) |
Cash Payments | (92) | (160) | (151) |
Non-Cash Items | (21) | (16) | (60) |
Currency Translation and Other | (10) | 30 | 62 |
Restructuring reserve at the end of the period | 84 | 114 | 237 |
Fiscal 2015 Actions | |||
Restructuring reserve | |||
Charges | 92 | ||
Cash Payments | (25) | ||
Non-Cash Items | (21) | ||
Restructuring reserve at the end of the period | 46 | ||
Fiscal 2014 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 17 | ||
Charges | 19 | ||
Cash Payments | (8) | (13) | |
Non-Cash Items | (9) | ||
Currency Translation and Other | (5) | 20 | |
Restructuring reserve at the end of the period | 4 | 17 | |
Fiscal 2013 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 62 | 160 | |
Charges | 2 | 19 | 248 |
Changes in Estimate | (1) | (10) | (8) |
Cash Payments | (45) | (110) | (83) |
Non-Cash Items | (7) | (58) | |
Currency Translation and Other | (4) | 10 | 61 |
Restructuring reserve at the end of the period | 14 | 62 | 160 |
Pre-Fiscal 2013 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 35 | 77 | 161 |
Charges | 3 | 4 | 11 |
Changes in Estimate | (3) | (9) | (26) |
Cash Payments | (14) | (37) | (68) |
Non-Cash Items | (2) | ||
Currency Translation and Other | (1) | 1 | |
Restructuring reserve at the end of the period | 20 | 35 | 77 |
Employee severance | Fiscal 2015 Actions | |||
Restructuring reserve | |||
Charges | 68 | ||
Cash Payments | (23) | ||
Restructuring reserve at the end of the period | 45 | ||
Employee severance | Fiscal 2014 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 16 | ||
Charges | 10 | ||
Cash Payments | (7) | (13) | |
Currency Translation and Other | (5) | 19 | |
Restructuring reserve at the end of the period | 4 | 16 | |
Employee severance | Fiscal 2013 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 61 | 159 | |
Charges | 8 | 185 | |
Changes in Estimate | (1) | (10) | (8) |
Cash Payments | (42) | (105) | (79) |
Currency Translation and Other | (4) | 9 | 61 |
Restructuring reserve at the end of the period | 14 | 61 | 159 |
Employee severance | Pre-Fiscal 2013 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 14 | 51 | 130 |
Charges | 2 | 2 | 7 |
Changes in Estimate | (3) | (10) | (27) |
Cash Payments | (5) | (29) | (58) |
Currency Translation and Other | (2) | (1) | |
Restructuring reserve at the end of the period | 6 | 14 | 51 |
Facility and other exit costs | Fiscal 2015 Actions | |||
Restructuring reserve | |||
Charges | 3 | ||
Cash Payments | (2) | ||
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) | ||
Currency Translation and Other | 1 | ||
Restructuring reserve at the end of the period | 1 | ||
Facility and other exit costs | Fiscal 2013 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 1 | 1 | |
Charges | 2 | 4 | 5 |
Cash Payments | (3) | (5) | (4) |
Currency Translation and Other | 1 | ||
Restructuring reserve at the end of the period | 1 | 1 | |
Facility and other exit costs | Pre-Fiscal 2013 Actions | |||
Restructuring reserve | |||
Restructuring reserve at the beginning of the period | 21 | 26 | 31 |
Charges | 1 | 2 | 2 |
Changes in Estimate | 1 | 1 | |
Cash Payments | (9) | (8) | (10) |
Currency Translation and Other | 1 | 2 | |
Restructuring reserve at the end of the period | 14 | 21 | 26 |
Property, plant, and equipment | Fiscal 2015 Actions | |||
Restructuring reserve | |||
Charges | 21 | ||
Non-Cash Items | (21) | ||
Property, plant, and equipment | Fiscal 2014 Actions | |||
Restructuring reserve | |||
Charges | 9 | ||
Non-Cash Items | (9) | ||
Property, plant, and equipment | Fiscal 2013 Actions | |||
Restructuring reserve | |||
Charges | 7 | 58 | |
Non-Cash Items | (7) | (58) | |
Property, plant, and equipment | Pre-Fiscal 2013 Actions | |||
Restructuring reserve | |||
Charges | 2 | ||
Non-Cash Items | (2) | ||
Discontinued Operations | |||
Restructuring reserve | |||
Currency Translation and Other | $ (1) | $ 36 | $ 65 |
Restructuring and Other Charg58
Restructuring and Other Charges, Net (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 | |
Restructuring Charges | ||||
Charges Incurred | $ 93 | $ 23 | $ 225 | |
Accrued and other current liabilities | 60 | 83 | ||
Other liabilities | 24 | 31 | ||
Restructuring reserves | 84 | 114 | 237 | $ 161 |
Other charges (credits), net | 59 | (4) | (3) | |
Fiscal 2015 Actions | ||||
Restructuring Charges | ||||
Total Expected Charges | 98 | |||
Charges Incurred | 92 | |||
Restructuring reserves | 46 | |||
Fiscal 2014 Actions | ||||
Restructuring Charges | ||||
Charges Incurred | 19 | |||
Restructuring reserves | 4 | 17 | ||
Fiscal 2013 Actions | ||||
Restructuring Charges | ||||
Charges Incurred | 1 | 9 | 240 | |
Restructuring reserves | 14 | 62 | 160 | |
Pre-Fiscal 2013 Actions | ||||
Restructuring Charges | ||||
Charges Incurred | (5) | (15) | ||
Restructuring reserves | 20 | 35 | 77 | 161 |
Facility and other exit costs | Fiscal 2015 Actions | ||||
Restructuring Charges | ||||
Restructuring reserves | 1 | |||
Facility and other exit costs | Fiscal 2014 Actions | ||||
Restructuring Charges | ||||
Restructuring reserves | 1 | |||
Facility and other exit costs | Fiscal 2013 Actions | ||||
Restructuring Charges | ||||
Restructuring reserves | 1 | 1 | ||
Facility and other exit costs | Pre-Fiscal 2013 Actions | ||||
Restructuring Charges | ||||
Restructuring reserves | 14 | $ 21 | $ 26 | $ 31 |
Broadband Network Solutions | ||||
Restructuring Charges | ||||
Other charges (credits), net | 61 | |||
Broadband Network Solutions | Legal and Professional fees | ||||
Restructuring Charges | ||||
Other charges (credits), net | 36 | |||
Broadband Network Solutions | Facility and other exit costs | ||||
Restructuring Charges | ||||
Other charges (credits), net | $ 18 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Divestiture of business | |||
Net proceeds from divestiture of discontinued operations | $ 2,957 | $ 14 | |
Net sales | 1,595 | $ 1,939 | 1,890 |
Pre-tax income from discontinued operations | 118 | 224 | 167 |
Pre-tax gain (loss) on sale of discontinued operations | 1,105 | (4) | |
Income tax expense | (41) | (57) | (41) |
Income from discontinued operations, net of income taxes | 1,182 | 167 | $ 122 |
Discontinued Operations, Held-for-sale | |||
Balance sheet information for assets and liabilities held for sale | |||
Accounts receivable, net | 382 | ||
Inventories | 236 | ||
Property, plant, and equipment, net | 206 | ||
Goodwill | 869 | ||
Intangible assets, net | 242 | ||
Other assets | 78 | ||
Total assets | 2,013 | ||
Current maturities of long-term debt | 90 | ||
Accounts payable | 161 | ||
Other liabilities | 165 | ||
Total liabilities | $ 416 | ||
Broadband Network Solutions | Discontinued Operations, Disposed of by Sale | |||
Divestiture of business | |||
Net proceeds from divestiture of discontinued operations | 3,000 | ||
Pre-tax gain (loss) on sale of discontinued operations | 1,105 | ||
Com-Net | |||
Divestiture of business | |||
Loss Contingency Accrual, Provision | $ 127 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | Oct. 09, 2014USD ($)$ / shares | Sep. 25, 2015USD ($) | Jun. 26, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 26, 2014USD ($) | Sep. 26, 2014USD ($) | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Dec. 27, 2013USD ($) | Sep. 25, 2015USD ($)item$ / shares | Sep. 26, 2014USD ($)item$ / shares | Sep. 27, 2013USD ($) |
Acquisition | ||||||||||||
Net cash paid | $ 1,725 | $ 522 | $ 6 | |||||||||
Allocation of the purchase price | ||||||||||||
Goodwill | $ 4,824 | $ 3,726 | 4,824 | 3,726 | 3,452 | |||||||
Net cash paid | 1,725 | 522 | 6 | |||||||||
Net sales | $ 2,984 | $ 3,118 | $ 3,082 | $ 3,049 | $ 3,072 | $ 3,075 | $ 2,964 | $ 2,862 | 12,233 | 11,973 | $ 11,390 | |
Amortization of fair value adjustments to inventories and customer order backlog | $ 27 | |||||||||||
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 | 1,064 | |||||||||||
Intangible assets | 547 | |||||||||||
Other non-current assets | 9 | |||||||||||
Total assets acquired | 1,966 | |||||||||||
Current maturities of long-term debt | 20 | |||||||||||
Trade accounts payable | 48 | |||||||||||
Other current liabilities | 67 | |||||||||||
Long-term Debt | 203 | |||||||||||
Deferred income taxes | 98 | |||||||||||
Other non-current liabilities | 9 | |||||||||||
Total liabilities assumed | 445 | |||||||||||
Net assets acquired | 1,521 | |||||||||||
Cash and cash equivalents acquired | (37) | |||||||||||
Net cash paid | 1,484 | |||||||||||
Goodwill deductible from prior acquisitions | $ 23 | |||||||||||
Net sales | 548 | |||||||||||
Pro forma financial information | ||||||||||||
Net sales | 12,252 | 12,429 | ||||||||||
Net income attributable to TE Connectivity Ltd. | $ 2,440 | $ 1,744 | ||||||||||
Diluted earnings per common share attributable to TE Connectivity Ltd | $ / shares | $ 5.94 | $ 4.18 | ||||||||||
Acquisition costs | $ 16 | |||||||||||
Fair value adjustment to acquisition-date inventories | 11 | $ (11) | ||||||||||
Amortization of the fair value of acquired intangible assets | 1 | (20) | ||||||||||
Adjustments to income tax expense based on changes in our global tax position | 6 | (19) | ||||||||||
Fair value adjustments related to acquired customer order backlog | 7 | (7) | ||||||||||
Interest expense based on changes in capital structure | (3) | (14) | ||||||||||
Share-based compensation expense | $ 15 | |||||||||||
Charges related to depreciation expense | $ (2) | |||||||||||
Other Acquisitions | ||||||||||||
Acquisition | ||||||||||||
Number of additional companies acquired | item | 3 | 5 | ||||||||||
Net cash paid | $ 241 | $ 522 | ||||||||||
Allocation of the purchase price | ||||||||||||
Net cash paid | $ 241 | $ 522 |
Acquisitions (Details 2)
Acquisitions (Details 2) - Measurement Specialties $ in Millions | Oct. 09, 2014USD ($) |
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 | Sep. 25, 2015 | Sep. 26, 2014 |
Inventories | ||
Raw materials | $ 261 | $ 211 |
Work in progress | 581 | 562 |
Finished goods | 773 | 736 |
Inventories | $ 1,615 | $ 1,509 |
Property, Plant, and Equipmen63
Property, Plant, and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Net property, plant, and equipment | |||
Gross property, plant, and equipment | $ 8,637 | $ 8,766 | |
Accumulated depreciation | (5,717) | (5,846) | |
Property, plant, and equipment, net | 2,920 | 2,920 | $ 2,951 |
Depreciation expense | 463 | 467 | $ 456 |
Land and improvements | |||
Net property, plant, and equipment | |||
Gross property, plant, and equipment | 163 | 185 | |
Buildings and improvements | |||
Net property, plant, and equipment | |||
Gross property, plant, and equipment | 1,261 | 1,244 | |
Machinery and equipment | |||
Net property, plant, and equipment | |||
Gross property, plant, and equipment | 6,692 | 6,787 | |
Construction in process | |||
Net property, plant, and equipment | |||
Gross property, plant, and equipment | $ 521 | $ 550 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Oct. 09, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
Goodwill: | ||||
Goodwill, beginning balance | $ 3,726 | $ 3,452 | ||
Acquisitions | 1,211 | 311 | ||
Currency translation and other | (113) | (37) | ||
Goodwill, ending balance | 4,824 | 3,726 | ||
Goodwill impairment | 0 | |||
Transportation Solutions | ||||
Goodwill: | ||||
Goodwill, beginning balance | 834 | 797 | ||
Acquisitions | 1,066 | 46 | ||
Currency translation and other | (37) | (9) | ||
Goodwill, ending balance | 1,863 | 834 | ||
Accumulated impairment losses | 2,191 | 2,191 | $ 2,191 | |
Industrial Solutions | ||||
Goodwill: | ||||
Goodwill, beginning balance | 2,165 | 1,919 | ||
Acquisitions | 145 | 265 | ||
Currency translation and other | (57) | (19) | ||
Goodwill, ending balance | 2,253 | 2,165 | ||
Accumulated impairment losses | 669 | 669 | 669 | |
Communications Solutions | ||||
Goodwill: | ||||
Goodwill, beginning balance | 727 | 736 | ||
Currency translation and other | (19) | (9) | ||
Goodwill, ending balance | 708 | 727 | ||
Accumulated impairment losses | $ 1,626 | $ 1,626 | $ 1,626 | |
Measurement Specialties | ||||
Goodwill: | ||||
Goodwill, ending balance | $ 1,064 | |||
Measurement Specialties | Transportation Solutions | ||||
Goodwill: | ||||
Acquisitions | $ 1,064 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | Oct. 09, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | $ 2,240 | $ 1,635 | ||
Accumulated Amortization | (685) | (548) | ||
Net Carrying Amount | 1,555 | 1,087 | ||
Finite-lived intangible assets, amortization expense | 153 | 84 | $ 80 | |
Aggregate amortization expense on intangible assets | ||||
Fiscal 2,016 | 141 | |||
Fiscal 2,017 | 137 | |||
Fiscal 2,018 | 137 | |||
Fiscal 2,019 | 135 | |||
Fiscal 2,020 | 131 | |||
Thereafter | 874 | |||
Intellectual property | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 1,150 | 986 | ||
Accumulated Amortization | (524) | (453) | ||
Net Carrying Amount | 626 | 533 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 1,053 | 614 | ||
Accumulated Amortization | (148) | (83) | ||
Net Carrying Amount | 905 | 531 | ||
Other. | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 37 | 35 | ||
Accumulated Amortization | (13) | (12) | ||
Net Carrying Amount | $ 24 | $ 23 | ||
Measurement Specialties | ||||
Finite-Lived Intangible Assets | ||||
Finite-lived intangible assets acquired | $ 547 |
Accrued and Other Current Lia66
Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Accrued and Other Current Liabilities | ||
Accrued payroll and employee benefits | $ 424 | $ 470 |
Dividends payable to shareholders | 260 | 236 |
Income taxes payable | 198 | 158 |
Share repurchase program payable | 177 | 37 |
Restructuring reserves | 60 | 83 |
Interest payable | 53 | 50 |
Deferred income taxes | 33 | 26 |
Other | 544 | 534 |
Accrued and other current liabilities | $ 1,749 | $ 1,594 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Feb. 28, 2015 | |
Current maturities of long-term debt: | |||
Current maturities of long-term debt | $ 500 | $ 577 | |
Debt | |||
Long-term Debt, Excluding Current Maturities | 3,403 | 3,281 | |
Other | 1 | ||
Total debt | 3,903 | 3,858 | |
1.60% senior notes due 2015 | |||
Current maturities of long-term debt: | |||
Current maturities of long-term debt | $ 250 | ||
Debt | |||
Debt instrument, interest rate (as a percent) | 1.60% | ||
Commercial paper | |||
Current maturities of long-term debt: | |||
Current maturities of long-term debt | $ 327 | ||
Debt | |||
Debt instrument, weighted-average interest rate at period end (as a percent) | 0.30% | ||
Floating rate senior notes due 2016 | |||
Current maturities of long-term debt: | |||
Current maturities of long-term debt | $ 500 | ||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 500 | ||
Floating rate senior notes due 2016 | LIBOR | |||
Debt | |||
Debt instrument description of variable rate basis | three-month London interbank offered rate | three-month London interbank offered rate | |
Debt instrument basis spread on variable rate (as a percent) | 0.20% | 0.20% | |
6.55% senior notes due 2017 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 718 | $ 723 | |
Debt instrument, interest rate (as a percent) | 6.55% | 6.55% | |
2.375% senior notes due 2018 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 324 | $ 324 | |
Debt instrument, interest rate (as a percent) | 2.375% | 2.375% | |
2.35% senior notes due 2019 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 250 | $ 250 | |
Debt instrument, interest rate (as a percent) | 2.35% | 2.35% | |
4.875% senior notes due 2021 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 263 | $ 261 | |
Debt instrument, interest rate (as a percent) | 4.875% | 4.875% | |
3.50% senior notes due 2022 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 511 | $ 499 | |
Debt instrument, interest rate (as a percent) | 3.50% | 3.50% | |
1.100% senior notes due 2023 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 612 | ||
Debt instrument, interest rate (as a percent) | 1.10% | 1.10% | |
3.45% senior notes due 2024 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 249 | $ 249 | |
Debt instrument, interest rate (as a percent) | 3.45% | 3.45% | |
7.125% senior notes due 2037 | |||
Debt | |||
Long-term Debt, Excluding Current Maturities | $ 475 | $ 475 | |
Debt instrument, interest rate (as a percent) | 7.125% | 7.125% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Aggregate amounts of total debt maturing during the next five years and thereafter | ||
Fiscal 2,016 | $ 500 | |
Fiscal 2,018 | 718 | |
Fiscal 2,019 | 574 | |
Thereafter | 2,111 | |
Total debt | $ 3,903 | $ 3,858 |
Debt (Details 3)
Debt (Details 3) € in Millions, $ in Millions | 12 Months Ended | ||
Sep. 25, 2015USD ($)item | Feb. 28, 2015EUR (€) | Sep. 26, 2014USD ($) | |
Debt | |||
Ownership percentage in TEGSA | 100.00% | ||
Fair value of debt | $ 4,115 | $ 4,125 | |
1.100% senior notes due 2023 | |||
Debt | |||
Debt instrument principal amount | € | € 550 | ||
Debt instrument, interest rate (as a percent) | 1.10% | 1.10% | |
Five-year credit facility | |||
Debt | |||
Revolving credit line, term | 5 years | ||
Maximum borrowing capacity | $ 1,500 | ||
Borrowings under the Credit Facility | $ 0 | $ 0 | |
Number of Consecutive Fiscal Quarters | item | 4 | ||
Consolidated Total Debt to Consolidated EBITDA ratio, maximum | 3.75 | ||
Consolidated Total Debt to Consolidated EBITDA ratio, minimum | 1 | ||
Five-year credit facility | Minimum | |||
Debt | |||
Annual facility fee, basis points (as a percent) | 0.075% | ||
Five-year credit facility | Maximum | |||
Debt | |||
Annual facility fee, basis points (as a percent) | 0.25% | ||
Five-year credit facility | LIBOR | |||
Debt | |||
Debt instrument description of variable rate basis | one-month LIBOR | ||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ||
Five-year credit facility | Federal funds effective rate | |||
Debt | |||
Debt instrument description of variable rate basis | federal funds effective | ||
Debt instrument basis spread on variable rate (as a percent) | 0.50% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 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 | $ 35 | $ 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 | $ 360 |
Commitments and Contingencies71
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 08, 2015 | Sep. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
Lease payment obligations | ||||||
Facility, land, vehicle, and equipment lease rental expense | $ 141 | $ 130 | $ 133 | |||
Fiscal 2,016 | $ 98 | 98 | ||||
Fiscal 2,017 | 76 | 76 | ||||
Fiscal 2,018 | 59 | 59 | ||||
Fiscal 2,019 | 44 | 44 | ||||
Fiscal 2,020 | 30 | 30 | ||||
Thereafter | 37 | 37 | ||||
Non-cancelable lease obligations, total | 344 | $ 344 | ||||
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 | 63 | $ 189 | $ 264 | 331 | ||
Other nonoperating expense, settlement of certain U.S. tax matters | $ 83 | 84 | 231 | |||
Net cash payments made as a result of the settlement of certain tax matters | 40 | 179 | 28 | |||
Liabilities related to the audits of Tyco International and our income tax returns | 17 | 17 | $ 51 | |||
Com-Net | ||||||
Loss Contingencies | ||||||
Loss contingency, range of possible loss, maximum | 80 | 80 | ||||
Loss Contingency, purchase price plus interest and costs | $ 127 | |||||
Loss Contingency Accrual, Provision | 127 | |||||
Audits of tax matters for the years 1997 through 2000 | ||||||
Loss Contingencies | ||||||
Income tax benefit associated with settlement of certain U.S. tax matters | 331 | |||||
Other nonoperating expense, settlement of certain U.S. tax matters | $ 231 | |||||
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 | ||||
Audits of tax matters for the years 2001 through 2007 | ||||||
Loss Contingencies | ||||||
Income tax benefit associated with settlement of certain U.S. tax matters | 201 | |||||
Other nonoperating expense, settlement of certain U.S. tax matters | 84 | |||||
Audits of tax matters for the years 2008 through 2010 | ||||||
Loss Contingencies | ||||||
Income tax benefit associated with settlement of certain U.S. tax matters | 63 | |||||
Environmental matters | ||||||
Loss Contingencies | ||||||
Loss contingency, range of possible loss, minimum | 16 | 16 | ||||
Loss contingency, range of possible loss, maximum | 38 | 38 | ||||
Loss contingency, estimate of probable loss | $ 19 | $ 19 |
Financial Instruments and Fai72
Financial Instruments and Fair Value Measurements (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Sep. 25, 2015USD ($) | Sep. 26, 2014USD ($) | Sep. 25, 2015EUR (€) | Sep. 25, 2015USD ($) | |
Net investment hedges | ||||
Financial Instruments and Fair Value Measurements | ||||
Notional amount of nonderivative instruments | $ 3,880 | $ 2,893 | ||
Foreign exchange gains recorded as currency translation | $ 353 | 156 | ||
Cash flow hedges | Cross Currency Interest Rate Contract | ||||
Financial Instruments and Fair Value Measurements | ||||
Notional amount | € | € 1,000 | |||
Quarterly interest payments in euro, fixed interest rate | 3.50% | 3.50% | ||
Interest received in U.S. dollars, average fixed interest rate | 5.33% | 5.33% | ||
Cash flow hedges | Foreign currency contracts | ||||
Financial Instruments and Fair Value Measurements | ||||
Period over which all of the balance in accumulated other comprehensive income (loss) reclassified into the Condensed Consolidated Statements of Operations | 12 months | |||
Cash flow hedges | Commodity derivative instruments | ||||
Financial Instruments and Fair Value Measurements | ||||
Period over which all of the balance in accumulated other comprehensive income (loss) reclassified into the Condensed Consolidated Statements of Operations | 12 months | |||
Notional amount | $ 307 | $ 260 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
U.S. Plans | |||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | |||
Service cost | $ 9 | $ 7 | $ 6 |
Interest cost | 48 | 50 | 46 |
Expected return on plan assets | (67) | (63) | (60) |
Amortization of net actuarial loss | 25 | 25 | 36 |
Net periodic pension benefit cost | $ 15 | $ 19 | $ 28 |
Weighted average assumptions used to determine net pension benefit cost during the fiscal year: | |||
Discount rate (as a percent) | 4.34% | 4.84% | 3.98% |
Expected return on plan assets (as a percent) | 7.20% | 7.16% | 6.65% |
Non-U.S. Plans | |||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | |||
Service cost | $ 45 | $ 46 | $ 50 |
Interest cost | 58 | 71 | 68 |
Expected return on plan assets | (72) | (67) | (65) |
Amortization of net actuarial loss | 33 | 23 | 32 |
Other | (5) | (3) | (18) |
Net periodic pension benefit cost | $ 59 | $ 70 | $ 67 |
Weighted average assumptions used to determine net pension benefit cost during the fiscal year: | |||
Discount rate (as a percent) | 2.77% | 3.38% | 3.27% |
Expected return on plan assets (as a percent) | 6.46% | 5.96% | 6.29% |
Rate of compensation increase (as a percent) | 2.86% | 2.84% | 2.86% |
Retirement Plans (Details 2)
Retirement Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Amounts recognized on the Consolidated Balance Sheets: | |||
Long-term pension and postretirement liabilities | $ (1,327) | $ (1,280) | |
U.S. Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of fiscal year | 1,143 | 1,074 | |
Service cost | 9 | 7 | $ 6 |
Interest cost | 48 | 50 | 46 |
Actuarial loss | 42 | 90 | |
Benefits and administrative expenses paid | (74) | (77) | |
Other | 2 | (1) | |
Benefit obligation at end of fiscal year | 1,170 | 1,143 | 1,074 |
Change in plan assets: | |||
Fair value of plan assets at beginning of fiscal year | 978 | 931 | |
Actual return on plan assets | (26) | 123 | |
Employer contributions | 1 | 2 | |
Benefits and administrative expenses paid | (74) | (77) | |
Other | (1) | ||
Fair value of plan assets at end of fiscal year | 879 | 978 | 931 |
Funded status | (291) | (165) | |
Amounts recognized on the Consolidated Balance Sheets: | |||
Accrued and other current liabilities | (5) | (4) | |
Long-term pension and postretirement liabilities | (286) | (161) | |
Net amount recognized | $ (291) | $ (165) | |
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | |||
Discount rate (as a percent) | 4.38% | 4.34% | |
Non-U.S. Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of fiscal year | $ 2,276 | $ 2,106 | |
Service cost | 45 | 46 | 50 |
Interest cost | 58 | 71 | 68 |
Actuarial loss | 87 | 256 | |
Benefits and administrative expenses paid | (71) | (75) | |
Currency translation | (213) | (94) | |
Other | 6 | (34) | |
Benefit obligation at end of fiscal year | 2,188 | 2,276 | 2,106 |
Change in plan assets: | |||
Fair value of plan assets at beginning of fiscal year | 1,177 | 1,113 | |
Actual return on plan assets | 72 | 97 | |
Employer contributions | 65 | 85 | |
Benefits and administrative expenses paid | (71) | (75) | |
Currency translation | (90) | (32) | |
Other | 14 | (11) | |
Fair value of plan assets at end of fiscal year | 1,167 | 1,177 | $ 1,113 |
Funded status | (1,021) | (1,099) | |
Amounts recognized on the Consolidated Balance Sheets: | |||
Accrued and other current liabilities | (19) | (21) | |
Long-term pension and postretirement liabilities | (1,002) | (1,078) | |
Net amount recognized | $ (1,021) | $ (1,099) | |
Weighted-average assumptions used to determine pension benefit obligation at fiscal year end: | |||
Discount rate (as a percent) | 2.50% | 2.77% | |
Rate of compensation increase (as a percent) | 2.81% | 2.86% |
Retirement Plans (Details 3)
Retirement Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
U.S. Plans | ||
Change in net loss: | ||
Unrecognized net loss at beginning of fiscal year | $ 325 | $ 320 |
Current year change recorded in accumulated other comprehensive income (loss) | 136 | 30 |
Amortization reclassified to earnings | (25) | (25) |
Unrecognized net loss at end of fiscal year | 436 | 325 |
Estimated amortization of actuarial losses from accumulated other comprehensive income into net periodic pension benefit cost in next fiscal year | ||
Amortization of net actuarial loss | 40 | |
Non-U.S. Plans | ||
Change in net loss: | ||
Unrecognized net loss at beginning of fiscal year | 748 | 592 |
Current year change recorded in accumulated other comprehensive income (loss) | 18 | 180 |
Amortization reclassified to earnings | (55) | (24) |
Unrecognized net loss at end of fiscal year | 711 | 748 |
Change in prior service credit: | ||
Unrecognized prior service credit at beginning of fiscal year | (67) | (68) |
Current year change recorded in accumulated other comprehensive income (loss) | (4) | (4) |
Amortization reclassified to earnings | 5 | 5 |
Unrecognized prior service credit at end of fiscal year | (66) | $ (67) |
Estimated amortization of actuarial losses from accumulated other comprehensive income into net periodic pension benefit cost in next fiscal year | ||
Amortization of net actuarial loss | 36 | |
Amortization of prior service credit | $ 6 |
Retirement Plans (Details 4)
Retirement Plans (Details 4) | 12 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
U.S. Plans | ||
Target asset allocation | ||
Target asset allocation funded status minimum (as a percent) | 105.00% | |
Target weighted average asset allocations (as a percent) | 100.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 100.00% | 100.00% |
U.S. Plans | Equity securities | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 45.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 45.00% | 45.00% |
U.S. Plans | Debt securities | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 55.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 55.00% | 55.00% |
Non-U.S. Plans | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 100.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 100.00% | 100.00% |
Non-U.S. Plans | Equity securities | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 45.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 45.00% | 45.00% |
Non-U.S. Plans | Debt securities | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 29.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 29.00% | 30.00% |
Non-U.S. Plans | Insurance contracts and other investments | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 24.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 24.00% | 23.00% |
Non-U.S. Plans | Real estate investments | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 2.00% | |
Weighted average asset allocations | ||
Total weighted average asset allocations (as a percent) | 2.00% | 2.00% |
Long-term Target Asset Allocation | U.S. Plans | Equity securities | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 10.00% | |
Long-term Target Asset Allocation | U.S. Plans | Debt securities | ||
Target asset allocation | ||
Target weighted average asset allocations (as a percent) | 90.00% |
Retirement Plans (Details 5)
Retirement Plans (Details 5) $ in Millions | 12 Months Ended |
Sep. 25, 2015USD ($) | |
U.S. Plans | |
Defined Benefit Plan Disclosure | |
Minimum required contributions to pension plans in fiscal 2016 | $ 5 |
Minimum required contributions and expected benefit payments | |
Expected benefit payments, fiscal 2016 | 71 |
Expected benefit payments, fiscal 2017 | 69 |
Expected benefit payments, fiscal 2018 | 70 |
Expected benefit payments, fiscal 2019 | 71 |
Expected benefit payments, fiscal 2020 | 72 |
Expected benefit payments, fiscal 2021-2025 | 375 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure | |
Minimum required contributions to pension plans in fiscal 2016 | 68 |
Minimum required contributions and expected benefit payments | |
Expected benefit payments, fiscal 2016 | 67 |
Expected benefit payments, fiscal 2017 | 70 |
Expected benefit payments, fiscal 2018 | 72 |
Expected benefit payments, fiscal 2019 | 77 |
Expected benefit payments, fiscal 2020 | 80 |
Expected benefit payments, fiscal 2021-2025 | $ 464 |
Retirement Plans (Details 6)
Retirement Plans (Details 6) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
U.S. Plans | ||
Defined Benefit Plan Disclosure | ||
Accumulated benefit obligation | $ 1,170 | $ 1,143 |
Pension plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 1,170 | 1,143 |
Fair value of plan assets | 879 | 978 |
Pension plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 1,170 | 1,143 |
Fair value of plan assets | 879 | 978 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure | ||
Accumulated benefit obligation | 2,041 | 2,121 |
Pension plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 1,994 | 2,120 |
Fair value of plan assets | 1,119 | 1,177 |
Pension plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 2,188 | 2,276 |
Fair value of plan assets | $ 1,167 | $ 1,177 |
Retirement Plans (Details 7)
Retirement Plans (Details 7) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
U.S. Plans | |||
Summary of asset fair value | |||
Fair value of plan assets | $ 879 | $ 978 | $ 931 |
U.S. Plans | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 879 | 978 | |
U.S. Plans | U.S. equity securities | Level 1 | |||
Summary of asset fair value | |||
Fair value of plan assets | 245 | 210 | |
U.S. Plans | U.S. equity securities | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 245 | 210 | |
U.S. Plans | Non-U.S. equity securities | Level 1 | |||
Summary of asset fair value | |||
Fair value of plan assets | 149 | 209 | |
U.S. Plans | Non-U.S. equity securities | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 149 | 209 | |
U.S. Plans | Government bonds | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 64 | 87 | |
U.S. Plans | Government bonds | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 64 | 87 | |
U.S. Plans | Corporate bonds | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 404 | 445 | |
U.S. Plans | Corporate bonds | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 404 | 445 | |
U.S. Plans | Other | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 3 | 13 | |
U.S. Plans | Other | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 3 | 13 | |
U.S. Plans | Subtotal | Level 1 | |||
Summary of asset fair value | |||
Fair value of plan assets | 394 | 419 | |
U.S. Plans | Subtotal | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 471 | 545 | |
U.S. Plans | Subtotal | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 865 | 964 | |
U.S. Plans | Items to reconcile to fair value of plan assets | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 14 | 14 | |
Non-U.S. Plans | |||
Summary of asset fair value | |||
Fair value of plan assets | 1,167 | 1,177 | $ 1,113 |
Non-U.S. Plans | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 1,167 | 1,177 | |
Non-U.S. Plans | U.S. equity securities | Level 1 | |||
Summary of asset fair value | |||
Fair value of plan assets | 60 | 54 | |
Non-U.S. Plans | U.S. equity securities | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 60 | 54 | |
Non-U.S. Plans | Non-U.S. equity securities | Level 1 | |||
Summary of asset fair value | |||
Fair value of plan assets | 54 | 65 | |
Non-U.S. Plans | Non-U.S. equity securities | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 54 | 65 | |
Non-U.S. Plans | Commingled equity funds | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 421 | 434 | |
Non-U.S. Plans | Commingled equity funds | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 421 | 434 | |
Non-U.S. Plans | Government bonds | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 202 | 211 | |
Non-U.S. Plans | Government bonds | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 202 | 211 | |
Non-U.S. Plans | Corporate bonds | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 13 | 19 | |
Non-U.S. Plans | Corporate bonds | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 13 | 19 | |
Non-U.S. Plans | Commingled bond funds | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 171 | 203 | |
Non-U.S. Plans | Commingled bond funds | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 171 | 203 | |
Non-U.S. Plans | Other | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 142 | 85 | |
Non-U.S. Plans | Other | Level 3 | |||
Summary of asset fair value | |||
Fair value of plan assets | 84 | 78 | |
Non-U.S. Plans | Other | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 226 | 163 | |
Non-U.S. Plans | Subtotal | Level 1 | |||
Summary of asset fair value | |||
Fair value of plan assets | 114 | 119 | |
Non-U.S. Plans | Subtotal | Level 2 | |||
Summary of asset fair value | |||
Fair value of plan assets | 949 | 952 | |
Non-U.S. Plans | Subtotal | Level 3 | |||
Summary of asset fair value | |||
Fair value of plan assets | 84 | 78 | |
Non-U.S. Plans | Subtotal | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | 1,147 | 1,149 | |
Non-U.S. Plans | Items to reconcile to fair value of plan assets | Fair Value | |||
Summary of asset fair value | |||
Fair value of plan assets | $ 20 | $ 28 |
Retirement Plans (Details 8)
Retirement Plans (Details 8) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Defined Contribution Retirement Plans | |||
Expense for the defined contribution plans | $ 60 | $ 61 | $ 61 |
Deferred Compensation Plans | |||
Total deferred compensation liabilities | 118 | 108 | |
Postretirement Benefit Plans | |||
Change in benefit obligation: | |||
Benefit obligation | $ 40 | $ 44 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Current: | |||
U.S: Federal | $ (67) | $ 128 | $ (296) |
U.S: State | 12 | (3) | (85) |
Non-U.S | 352 | 302 | 292 |
Current income tax provision (benefit) | 297 | 427 | (89) |
Deferred: | |||
U.S: Federal | 87 | (311) | 31 |
U.S: State | 5 | (3) | (4) |
Non-U.S | (52) | 33 | (13) |
Deferred income tax provision (benefit) | 40 | (281) | 14 |
Provision (benefit) for income taxes | $ 337 | $ 146 | $ (75) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
U.S. and non-U.S. components of income from continuing operations before income taxes | |||
U.S | $ (31) | $ (133) | $ (354) |
Non-U.S | 1,606 | 1,893 | 1,434 |
Income from continuing operations before income taxes | $ 1,575 | $ 1,760 | $ 1,080 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Reconciliation between U.S. federal income taxes at the statutory rate and provision (benefit) for income taxes on continuing operations | |||
Notional U.S. federal income tax provision at the statutory rate | $ 551 | $ 616 | $ 378 |
U.S. state income tax provision (benefit), net | 11 | (4) | (58) |
Other (income) expense-Tax Sharing Agreement | 18 | (23) | 64 |
Tax law changes | 10 | (1) | |
Tax credits | (9) | (8) | (10) |
Non-U.S. net earnings | (275) | (287) | (256) |
Nondeductible charges | 2 | 3 | |
Change in accrued income tax liabilities | (183) | 112 | (164) |
Valuation allowance | (3) | (239) | (30) |
Legal entity restructuring | 211 | ||
Other | 4 | (23) | 1 |
Provision (benefit) for income taxes | $ 337 | $ 146 | $ (75) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 |
Deferred tax assets: | ||
Accrued liabilities and reserves | $ 262 | $ 262 |
Tax loss and credit carryforwards | 4,856 | 3,356 |
Inventories | 57 | 52 |
Pension and postretirement benefits | 295 | 282 |
Deferred revenue | 17 | 12 |
Interest | 394 | 358 |
Unrecognized income tax benefits | 378 | 391 |
Other | 4 | 27 |
Total Deferred tax assets, Gross | 6,263 | 4,740 |
Deferred tax liabilities: | ||
Intangible assets | (809) | (835) |
Property, plant, and equipment | (1) | (10) |
Other | (89) | (73) |
Total Deferred tax liabilities, Gross | (899) | (918) |
Net deferred tax asset before valuation allowance | 5,364 | 3,822 |
Valuation allowance | (3,237) | (1,706) |
Net deferred tax asset | $ 2,127 | $ 2,116 |
Income Taxes (Details 5)
Income Taxes (Details 5) $ in Millions | Sep. 25, 2015USD ($) |
Tax Carryforwards | |
Deferred Tax Assets, Tax Loss and Credit Carryforwards, Current Period Increase due to the Write-Down of Investments | $ 1,381 |
U.S. Federal | |
Tax Carryforwards | |
Tax credit carryforwards | 194 |
Non-U.S. Jurisdictions | |
Tax Carryforwards | |
Net operating loss carryforwards (tax effected) | 3,068 |
Capital loss carryforwards (tax effected) | 45 |
No expiration date | U.S. Federal | |
Tax Carryforwards | |
Tax credit carryforwards | 63 |
No expiration date | Non-U.S. Jurisdictions | |
Tax Carryforwards | |
Net operating loss carryforwards (tax effected) | 3,005 |
Tax credit carryforwards | 1 |
Capital loss carryforwards (tax effected) | 38 |
Expiring through 2035 | U.S. Federal | |
Tax Carryforwards | |
Net operating loss carryforwards (tax effected) | 1,363 |
Tax credit carryforwards | 131 |
Expiring through 2035 | U.S. State | |
Tax Carryforwards | |
Net operating loss carryforwards (tax effected) | 125 |
Expiring through 2035 | Non-U.S. Jurisdictions | |
Tax Carryforwards | |
Net operating loss carryforwards (tax effected) | 63 |
Expiring through 2030 | U.S. State | |
Tax Carryforwards | |
Tax credit carryforwards | 40 |
Expiring through 2020 | U.S. Federal | |
Tax Carryforwards | |
Capital loss carryforwards (tax effected) | 20 |
Expiring through 2020 | Non-U.S. Jurisdictions | |
Tax Carryforwards | |
Capital loss carryforwards (tax effected) | $ 7 |
Income Taxes (Details 6)
Income Taxes (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Activity related to the Company's unrecognized income tax benefits | |||
Balance at beginning of fiscal year | $ 1,595 | $ 1,617 | $ 1,794 |
Additions related to prior periods tax positions | 24 | 22 | 88 |
Reductions related to prior periods tax positions | (291) | (57) | (271) |
Additions related to current period tax positions | 97 | 32 | 87 |
Acquisitions | 7 | ||
Settlements | (29) | (14) | (8) |
Reductions due to lapse of applicable statute of limitations | (28) | (12) | (73) |
Balance at end of fiscal year | $ 1,368 | $ 1,595 | $ 1,617 |
Income Taxes (Details 7)
Income Taxes (Details 7) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 25, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Income Taxes | ||||||
Income tax benefit associated with settlement of certain U.S. tax matters | $ 63 | $ 189 | $ 264 | $ 331 | ||
Income tax charges associated with intercompany legal entity restructurings | 216 | 216 | ||||
Income tax charges associated with intercompany dividends related to the restructuring and sale of BNS | 29 | |||||
Cumulative undistributed earnings | 19,000 | 19,000 | ||||
Estimated income tax expense if intention to permanently reinvest undistributed earnings changes | 1,700 | 1,700 | ||||
Cash, cash equivalents and intercompany deposits available to distribute but considered to be permanently reinvested | 5,200 | 5,200 | ||||
Valuation allowance | ||||||
Net tax benefits associated with reduction in valuation allowance and other items | 23 | |||||
Change in the valuation allowance | 3 | $ 239 | $ 30 | |||
Valuation allowance | 3,237 | $ 1,706 | 3,237 | 1,706 | ||
Valuation allowance related to share based compensation | $ 151 | $ 151 | ||||
ADC Telecommunications | ||||||
Valuation allowance | ||||||
Change in the valuation allowance | $ 282 | $ 282 |
Income Taxes (Details 8)
Income Taxes (Details 8) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Activity related to the Company's unrecognized income tax benefits | |||
Unrecognized income tax benefits that would impact income tax provision and effective tax rate | $ 1,291 | $ 1,450 | |
Income tax penalties and interest accrued | 1,076 | 1,136 | |
Income tax penalties and interest accrued, location income taxes | 1,073 | 1,115 | |
Income tax penalties and interest expense (benefit) | 7 | $ 99 | $ (247) |
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $ 60 | ||
Minimum | |||
Income Taxes | |||
Statutes of limitations, income tax returns filed by the Company, state and local | 3 years | ||
Statutes of limitations, income tax returns filed by non-U.S. subsidiaries | 3 years | ||
Maximum | |||
Income Taxes | |||
Statutes of limitations, income tax returns filed by the Company, state and local | 4 years | ||
Statutes of limitations, income tax returns filed by non-U.S. subsidiaries | 10 years |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Other Income (Expense), Net | ||||
Other income (expense), net | $ (55) | $ 63 | $ (183) | |
Other nonoperating expense, settlement of certain U.S. tax matters | $ 83 | $ 84 | $ 231 | |
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 | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Earnings Per Share | |||
Basic (in shares) | 405 | 410 | 418 |
Dilutive impact of share-based compensation arrangements (in shares) | 6 | 7 | 5 |
Diluted (in shares) | 411 | 417 | 423 |
Share options | |||
Antidilutive shares excluded from computation of earnings per share | |||
Antidilutive shares excluded from computation of earnings per share | 1 | 3 |
Equity (Details)
Equity (Details) SFr / shares in Units, $ / shares in Units, shares in Millions, SFr in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015installmentSFr / shares | Mar. 31, 2015installment$ / shares | Mar. 31, 2014installmentSFr / shares | Mar. 31, 2014installment$ / shares | Mar. 31, 2013installmentSFr / shares | Mar. 31, 2013installment$ / shares | Mar. 30, 2012installmentSFr / shares | Mar. 30, 2012installmentSFr / shares$ / shares | Mar. 25, 2016$ / shares | Dec. 25, 2015$ / shares | Sep. 25, 2015CHF (SFr)SFr / shares$ / sharesshares | Jun. 26, 2015$ / shares | Mar. 27, 2015$ / shares | Dec. 26, 2014$ / shares | Sep. 26, 2014CHF (SFr)SFr / shares$ / sharesshares | Jun. 27, 2014$ / shares | Mar. 28, 2014$ / shares | Dec. 27, 2013$ / shares | Sep. 27, 2013$ / shares | Jun. 28, 2013$ / shares | Mar. 29, 2013SFr / shares$ / shares | Dec. 28, 2012$ / shares | Sep. 28, 2012$ / shares | Jun. 29, 2012$ / shares | Sep. 25, 2015USD ($)$ / sharesshares | Sep. 26, 2014USD ($)$ / sharesshares | Sep. 27, 2013USD ($)$ / sharesshares | Sep. 25, 2015USD ($)shares | Sep. 26, 2014USD ($)shares | Mar. 29, 2013$ / shares | Mar. 30, 2012installment$ / shares | |
Equity | |||||||||||||||||||||||||||||||
Maximum percentage of shares that the board may authorize for issuance | 50.00% | ||||||||||||||||||||||||||||||
Common shares held in treasury | 20 | 11 | 20 | 11 | |||||||||||||||||||||||||||
Common shares held in treasury, owned by subsidiary | 6 | 9 | 6 | 9 | |||||||||||||||||||||||||||
Cancellation of treasury shares (in shares) | 5 | 10 | 10 | ||||||||||||||||||||||||||||
Contributed surplus established during the change of domicile for Swiss tax and statutory purposes ("Swiss Contributed Surplus") | SFr 8,392 | SFr 8,907 | $ 7,505 | $ 8,036 | |||||||||||||||||||||||||||
Dividend or cash distribution approved (in currency per share) | (per share) | SFr 1.27 | $ 1.32 | SFr 1.04 | $ 1.16 | SFr 0.96 | $ 1 | SFr 0.80 | $ 0.84 | |||||||||||||||||||||||
Number of quarterly dividend installments | installment | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||
Cash dividend paid (in dollars per share) | $ / shares | SFr 0.33 | $ 0.33 | $ 0.29 | $ 0.29 | SFr 0.29 | $ 0.29 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 1.24 | $ 1.08 | $ 0.92 | ||||||||||||||
Cash dividend to be paid in the future (in dollars per share) | $ / shares | $ 0.33 | $ 0.33 | |||||||||||||||||||||||||||||
Common shares, par value (in currency per share) | (per share) | SFr 1.37 | $ 1.37 | SFr 0.57 | SFr 0.57 | $ 0.57 | $ 0.44 | $ 1.28 | ||||||||||||||||||||||||
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $ | 260 | $ 236 | |||||||||||||||||||||||||||||
Number of common shares repurchased | 18 | 11 | 20 | ||||||||||||||||||||||||||||
Amount repurchased | $ | $ 1,163 | $ 604 | $ 829 | ||||||||||||||||||||||||||||
Amount available for repurchase, at end of period | $ | 2,700 | ||||||||||||||||||||||||||||||
Share repurchase program, authorized amount (in currency) | $ | $ 3,000 |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | $ (17) | $ 303 | $ 229 |
Net other comprehensive income (loss) | 140 | ||
Other comprehensive loss before reclassifications | (727) | (462) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 344 | 98 | |
Income tax (expense) benefit | 27 | 44 | (66) |
Other comprehensive income (loss) | (356) | (320) | 74 |
Balance at the end of the period | (373) | (17) | 303 |
Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | 720 | 931 | 959 |
Net other comprehensive income (loss) | (28) | ||
Other comprehensive loss before reclassifications | (536) | (216) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 224 | 5 | |
Other comprehensive income (loss) | (312) | (211) | (28) |
Balance at the end of the period | 408 | 720 | 931 |
Unrecognized Pension and Postretirement Benefit Costs | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | (692) | (569) | (700) |
Net other comprehensive income (loss) | 204 | ||
Other comprehensive loss before reclassifications | (147) | (211) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 75 | 44 | |
Income tax (expense) benefit | 26 | 44 | (73) |
Other comprehensive income (loss) | (46) | (123) | 131 |
Balance at the end of the period | (738) | (692) | (569) |
Gain (Loss) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | (45) | (59) | (30) |
Net other comprehensive income (loss) | (36) | ||
Other comprehensive loss before reclassifications | (44) | (35) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 45 | 49 | |
Income tax (expense) benefit | 1 | 7 | |
Other comprehensive income (loss) | 2 | 14 | (29) |
Balance at the end of the period | (43) | (45) | (59) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | $ (356) | $ (320) | $ 74 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Share Based Compensation Arrangements: | |||
Maximum number of common shares to be issued as awards | 67,000,000 | ||
Shares available for issuance | 19,000,000 | ||
Share-based compensation expenses | $ 89 | $ 77 | $ 71 |
Tax benefit associated with share based compensation arrangements | 29 | 24 | 22 |
Additional disclosures | |||
Total cash received by the Company related to the exercise of options | $ 103 | $ 156 | $ 214 |
Restricted share awards | |||
Share Based Compensation Arrangements: | |||
Vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | |||
Outstanding shares at the beginning of the period | 3,397,828 | ||
Shares granted | 1,359,144 | ||
Shares vested | (1,485,763) | ||
Shares forfeited | (480,275) | ||
Outstanding shares at the end of the period | 2,790,934 | 3,397,828 | |
Weighted-average grant-date fair value at the beginning of the period (in dollars per share) | $ 40.79 | ||
Shares granted, weighted-average grant-date fair value (in dollars per share) | 62.45 | $ 52.21 | $ 34.69 |
Shares vested, weighted-average grant-date fair value (in dollars per share) | 38.80 | ||
Shares forfeited, weighted-average grant-date fair value (in dollars per share) | 48.43 | ||
Weighted-average grant-date fair value at the end of the period (in dollars per share) | $ 51.01 | $ 40.79 | |
Share Based Compensation Expenses Not Recognized | |||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 87 | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 1 year 7 months 6 days | ||
Additional disclosures | |||
Total fair value of share awards, vested during the period | $ 58 | $ 52 | $ 51 |
Performance share awards | |||
Share Based Compensation Arrangements: | |||
Vesting period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | |||
Outstanding shares at the beginning of the period | 510,488 | ||
Shares granted | 220,272 | ||
Shares vested | (1,285) | ||
Shares forfeited | (28,647) | ||
Outstanding shares at the end of the period | 700,828 | 510,488 | |
Weighted-average grant-date fair value at the beginning of the period (in dollars per share) | $ 41.53 | ||
Shares granted, weighted-average grant-date fair value (in dollars per share) | 61.65 | $ 51.63 | $ 34.16 |
Shares vested, weighted-average grant-date fair value (in dollars per share) | 34.05 | ||
Shares forfeited, weighted-average grant-date fair value (in dollars per share) | 42.63 | ||
Weighted-average grant-date fair value at the end of the period (in dollars per share) | $ 47.32 | $ 41.53 | |
Share Based Compensation Expenses Not Recognized | |||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 15 | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 1 year | ||
Performance share awards | Minimum | |||
Share Based Compensation Expenses Not Recognized | |||
Pay-out of performance share award (as a percent) | 0.00% | ||
Performance share awards | Maximum | |||
Share Based Compensation Expenses Not Recognized | |||
Pay-out of performance share award (as a percent) | 200.00% | ||
Share options | |||
Share Based Compensation Arrangements: | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Share Based Compensation Expenses Not Recognized | |||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 39 | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 1 year 4 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |||
Outstanding share options at the beginning of the period | 11,948,584 | ||
Share options granted | 1,735,750 | ||
Share options exercised | (3,072,275) | ||
Share options expired | (91,021) | ||
Share options forfeited | (396,163) | ||
Outstanding share options at the end of the period | 10,124,875 | 11,948,584 | |
Share options outstanding, weighted-average exercise price at the beginning of the period (in dollars per share) | $ 35.41 | ||
Share options granted, weighted-average exercise price (in dollars per share) | 61.70 | $ 51.78 | 34.27 |
Share options exercised, weighted-average exercise price (in dollars per share) | 32.84 | ||
Share options expired, weighted-average exercise price (in dollars per share) | 52.93 | ||
Share options forfeited, weighted-average exercise price (in dollars per share) | 46.10 | ||
Share options outstanding, weighted-average exercise price at the end of the period (in dollars per share) | $ 40.05 | 35.41 | |
Share options vested and expected to vest at end of period | 9,822,310 | ||
Share options exercisable at end of period | 5,758,402 | ||
Share options vested and expected to vest at end of period, weighted-average exercise price (in dollars per share) | $ 39.79 | ||
Share options exercisable at end of period, weighted-average exercise price (in dollars per share) | $ 33.71 | ||
Share options outstanding at end of period, weighted-average remaining contractual term | 6 years | ||
Share options vested and expected to vest at end of period, weighted-average remaining contractual term | 6 years | ||
Share options exercisable at end of period, weighted-average remaining contractual term | 4 years 7 months 6 days | ||
Share options outstanding at end of period, aggregate intrinsic value | $ 192 | ||
Share options vested and expected to vest at end of period, aggregate intrinsic value | 188 | ||
Share options exercisable at end of period, aggregate intrinsic value | $ 142 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||
Options granted, weighted-average grant-date fair value (in dollars per share) | $ 18.77 | $ 16.81 | $ 8.62 |
Expected share price volatility (as a percent) | 36.00% | 39.00% | 34.00% |
Risk free interest rate (as a percent) | 2.00% | 1.80% | 0.90% |
Expected annual dividend per share | $ 1.16 | $ 1 | $ 0.84 |
Expected life of options (in years) | 6 years | 6 years | 6 years |
Additional disclosures | |||
Total intrinsic value of the Company's options exercised | $ 107 | $ 136 | $ 69 |
Total cash received by the Company related to the exercise of options | $ 103 | $ 156 | $ 214 |
Segment and Geographic Data (De
Segment and Geographic Data (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015USD ($) | Jun. 26, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 26, 2014USD ($) | Sep. 26, 2014USD ($) | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Dec. 27, 2013USD ($) | Sep. 25, 2015USD ($)segment | Sep. 26, 2014USD ($) | Sep. 27, 2013USD ($) | |
Segment and Geographic Data | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Net sales | $ 2,984 | $ 3,118 | $ 3,082 | $ 3,049 | $ 3,072 | $ 3,075 | $ 2,964 | $ 2,862 | $ 12,233 | $ 11,973 | $ 11,390 |
Operating income | 1,749 | 1,805 | 1,385 | ||||||||
Depreciation and Amortization | 616 | 551 | 536 | ||||||||
Capital Expenditures | 600 | 635 | 581 | ||||||||
Transportation Solutions | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 6,351 | 6,090 | 5,485 | ||||||||
Operating income | 1,193 | 1,245 | 934 | ||||||||
Depreciation and Amortization | 347 | 285 | 294 | ||||||||
Capital Expenditures | 400 | 379 | 325 | ||||||||
Industrial Solutions | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 3,179 | 3,302 | 3,100 | ||||||||
Operating income | 352 | 431 | 344 | ||||||||
Depreciation and Amortization | 123 | 102 | 92 | ||||||||
Capital Expenditures | 104 | 143 | 111 | ||||||||
Communications Solutions | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 2,703 | 2,581 | 2,805 | ||||||||
Operating income | 204 | 129 | 107 | ||||||||
Depreciation and Amortization | 146 | 164 | 150 | ||||||||
Capital Expenditures | $ 96 | $ 113 | $ 145 |
Segment and Geographic Data (95
Segment and Geographic Data (Details 2) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 |
Segment and Geographic Data | |||
Assets | $ 20,608 | $ 20,152 | $ 18,461 |
Other non-current assets | 314 | 456 | |
Total segment assets | |||
Segment and Geographic Data | |||
Assets | 6,655 | 6,486 | 6,387 |
Transportation Solutions | |||
Segment and Geographic Data | |||
Assets | 3,310 | 3,062 | 2,983 |
Industrial Solutions | |||
Segment and Geographic Data | |||
Assets | 1,720 | 1,735 | 1,640 |
Communications Solutions | |||
Segment and Geographic Data | |||
Assets | 1,625 | 1,689 | 1,764 |
Reconciling items | |||
Segment and Geographic Data | |||
Other current assets | 4,152 | 5,313 | 4,243 |
Other non-current assets | $ 9,801 | $ 8,353 | $ 7,831 |
Segment and Geographic Data (96
Segment and Geographic Data (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Segment and Geographic Data | |||||||||||
Net sales | $ 2,984 | $ 3,118 | $ 3,082 | $ 3,049 | $ 3,072 | $ 3,075 | $ 2,964 | $ 2,862 | $ 12,233 | $ 11,973 | $ 11,390 |
Property, Plant, and Equipment, Net | 2,920 | 2,920 | 2,920 | 2,920 | 2,951 | ||||||
Switzerland | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 2,992 | 3,483 | 3,216 | ||||||||
Property, Plant, and Equipment, Net | 55 | 54 | 55 | 54 | 54 | ||||||
Germany | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 117 | 126 | 123 | ||||||||
Property, Plant, and Equipment, Net | 313 | 330 | 313 | 330 | 346 | ||||||
Other Europe/Middle East/Africa | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 883 | 615 | 609 | ||||||||
Property, Plant, and Equipment, Net | 588 | 642 | 588 | 642 | 650 | ||||||
Total Europe/Middle East/Africa | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 3,992 | 4,224 | 3,948 | ||||||||
Property, Plant, and Equipment, Net | 956 | 1,026 | 956 | 1,026 | 1,050 | ||||||
China | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 2,367 | 2,331 | 2,072 | ||||||||
Property, Plant, and Equipment, Net | 529 | 492 | 529 | 492 | 495 | ||||||
Other Asia-Pacific | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 1,736 | 1,903 | 1,914 | ||||||||
Property, Plant, and Equipment, Net | 461 | 468 | 461 | 468 | 490 | ||||||
Total Asia-Pacific | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 4,103 | 4,234 | 3,986 | ||||||||
Property, Plant, and Equipment, Net | 990 | 960 | 990 | 960 | 985 | ||||||
U.S. | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 3,817 | 3,119 | 3,042 | ||||||||
Property, Plant, and Equipment, Net | 887 | 837 | 887 | 837 | 867 | ||||||
Other Americas | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 321 | 396 | 414 | ||||||||
Property, Plant, and Equipment, Net | 87 | 97 | 87 | 97 | 49 | ||||||
Total Americas | |||||||||||
Segment and Geographic Data | |||||||||||
Net sales | 4,138 | 3,515 | 3,456 | ||||||||
Property, Plant, and Equipment, Net | $ 974 | $ 934 | $ 974 | $ 934 | $ 916 |
Quarterly Financial Data (una97
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Quarterly Financial Data (unaudited) | |||||||||||
Net sales | $ 2,984 | $ 3,118 | $ 3,082 | $ 3,049 | $ 3,072 | $ 3,075 | $ 2,964 | $ 2,862 | $ 12,233 | $ 11,973 | $ 11,390 |
Gross margin | 968 | 1,048 | 1,051 | 1,020 | 1,014 | 1,018 | 995 | 945 | 4,087 | 3,972 | 3,651 |
Acquisition and integration costs | 9 | 8 | 14 | 24 | 29 | 1 | 1 | 55 | 31 | 14 | |
Restructuring and other charges (credits), net | 70 | 19 | 38 | 25 | 4 | 10 | (1) | 6 | 152 | 19 | 222 |
Amounts attributable to TE Connectivity Ltd.: | |||||||||||
Income from continuing operations | 136 | 351 | 316 | 435 | 614 | 347 | 340 | 313 | 1,238 | 1,614 | 1,154 |
Income (loss) from discontinued operations, net of income taxes | 904 | (42) | 283 | 37 | 49 | 56 | 22 | 40 | 1,182 | 167 | 122 |
Net income attributable to TE Connectivity Ltd. | $ 1,040 | $ 309 | $ 599 | $ 472 | $ 663 | $ 403 | $ 362 | $ 353 | $ 2,420 | $ 1,781 | $ 1,276 |
Basic earnings per share attributable to TE Connectivity Ltd.: | |||||||||||
Income from continuing operations (in dollars per share) | $ 0.34 | $ 0.86 | $ 0.78 | $ 1.07 | $ 1.50 | $ 0.85 | $ 0.83 | $ 0.76 | $ 3.06 | $ 3.94 | $ 2.76 |
Net income (in dollars per share) | 2.60 | 0.76 | 1.47 | 1.16 | 1.62 | 0.99 | 0.88 | 0.86 | 5.98 | 4.34 | 3.05 |
Diluted earnings per share attributable to TE Connectivity Ltd.: | |||||||||||
Income from continuing operations (in dollars per share) | 0.34 | 0.85 | 0.77 | 1.05 | 1.48 | 0.83 | 0.82 | 0.75 | 3.01 | 3.87 | 2.73 |
Net income (in dollars per share) | $ 2.57 | $ 0.75 | $ 1.45 | $ 1.14 | $ 1.59 | $ 0.97 | $ 0.87 | $ 0.84 | $ 5.89 | $ 4.27 | $ 3.02 |
Income tax benefit associated with settlement of certain U.S. tax matters | $ 63 | $ 189 | $ 264 | $ 331 | |||||||
Other nonoperating expense, settlement of certain U.S. tax matters | 83 | 84 | 231 | ||||||||
Quarterly Financial Data (unaudited) | |||||||||||
Income tax benefit associated with reduction in valuation allowance related to tax loss carryforwards | 3 | $ 239 | $ 30 | ||||||||
Income tax charges associated with intercompany legal entity restructurings | $ 216 | $ 216 | |||||||||
Amortization of fair value adjustments to inventories and customer order backlog | $ 27 | ||||||||||
ADC Telecommunications | |||||||||||
Quarterly Financial Data (unaudited) | |||||||||||
Income tax benefit associated with reduction in valuation allowance related to tax loss carryforwards | $ 282 | $ 282 |
Subsequent Event (Detail)
Subsequent Event (Detail) - Circuit Protection Devices - USD ($) $ in Millions | 3 Months Ended | |
Mar. 25, 2016 | Sep. 25, 2015 | |
Subsequent Event. | ||
Net assets of disposal group | $ 200 | |
Subsequent event. | Forecast | ||
Subsequent Event. | ||
Cash to be received on sale of business | $ 350 |
Tyco Electronics Group S.A. (De
Tyco Electronics Group S.A. (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Tyco Electronics Group S.A. | |||||||||||
Ownership percentage in TEGSA | 100.00% | 100.00% | |||||||||
Statement of operations detail: | |||||||||||
Net sales | $ 2,984 | $ 3,118 | $ 3,082 | $ 3,049 | $ 3,072 | $ 3,075 | $ 2,964 | $ 2,862 | $ 12,233 | $ 11,973 | $ 11,390 |
Cost of sales | 8,146 | 8,001 | 7,739 | ||||||||
Gross margin | 968 | 1,048 | 1,051 | 1,020 | 1,014 | 1,018 | 995 | 945 | 4,087 | 3,972 | 3,651 |
Selling, general, and administrative expenses | 1,504 | 1,534 | 1,440 | ||||||||
Research, development, and engineering expenses | 627 | 583 | 590 | ||||||||
Acquisition and integration costs | 9 | 8 | 14 | 24 | 29 | 1 | 1 | 55 | 31 | 14 | |
Restructuring and other charges, net | 70 | 19 | 38 | 25 | 4 | 10 | (1) | 6 | 152 | 19 | 222 |
Operating income | 1,749 | 1,805 | 1,385 | ||||||||
Interest income | 17 | 19 | 17 | ||||||||
Interest expense | (136) | (127) | (139) | ||||||||
Other income (expense), net | (55) | 63 | (183) | ||||||||
Income from continuing operations before income taxes | 1,575 | 1,760 | 1,080 | ||||||||
Income tax (expense) benefit | (337) | (146) | 75 | ||||||||
Income from continuing operations | 1,238 | 1,614 | 1,155 | ||||||||
Income from discontinued operations, net of income taxes | 1,182 | 167 | 122 | ||||||||
Net income | 2,420 | 1,781 | 1,277 | ||||||||
Less: net income attributable to noncontrolling interests | (1) | ||||||||||
Net income attributable to TE Connectivity Ltd. | $ 1,040 | $ 309 | $ 599 | $ 472 | $ 663 | $ 403 | $ 362 | $ 353 | 2,420 | 1,781 | 1,276 |
Other comprehensive income (loss) | (356) | (320) | 74 | ||||||||
Comprehensive income attributable to TE Connectivity Ltd. | 2,064 | 1,461 | 1,350 | ||||||||
Consolidating Adjustments | |||||||||||
Statement of operations detail: | |||||||||||
Equity in net income of subsidiaries | (3,716) | (5,401) | (2,734) | ||||||||
Equity in net income of subsidiaries of discontinued operations | (1,547) | (334) | (244) | ||||||||
Income from continuing operations before income taxes | (5,263) | (5,735) | (2,978) | ||||||||
Income from continuing operations | (5,263) | (5,735) | (2,978) | ||||||||
Net income | (2,978) | ||||||||||
Net income attributable to TE Connectivity Ltd. | (5,263) | (5,735) | (2,978) | ||||||||
Other comprehensive income (loss) | 724 | 648 | (138) | ||||||||
Comprehensive income attributable to TE Connectivity Ltd. | (4,539) | (5,087) | (3,116) | ||||||||
TE Connectivity Ltd. | Reportable entities | |||||||||||
Statement of operations detail: | |||||||||||
Selling, general, and administrative expenses | 163 | 131 | 156 | ||||||||
Operating income | (163) | (131) | (156) | ||||||||
Other income (expense), net | 18 | ||||||||||
Equity in net income of subsidiaries | 1,398 | 1,729 | 1,323 | ||||||||
Equity in net income of subsidiaries of discontinued operations | 1,182 | 167 | 122 | ||||||||
Intercompany interest income (expense), net | 3 | (2) | (13) | ||||||||
Income from continuing operations before income taxes | 2,420 | 1,781 | 1,276 | ||||||||
Income from continuing operations | 2,420 | 1,781 | 1,276 | ||||||||
Net income | 1,276 | ||||||||||
Net income attributable to TE Connectivity Ltd. | 2,420 | 1,781 | 1,276 | ||||||||
Other comprehensive income (loss) | (356) | (320) | 74 | ||||||||
Comprehensive income attributable to TE Connectivity Ltd. | 2,064 | 1,461 | 1,350 | ||||||||
TEGSA | Reportable entities | |||||||||||
Statement of operations detail: | |||||||||||
Selling, general, and administrative expenses | 835 | 1,877 | 3 | ||||||||
Operating income | (835) | (1,877) | (3) | ||||||||
Interest expense | (135) | (126) | (135) | ||||||||
Other income (expense), net | (3) | ||||||||||
Equity in net income of subsidiaries | 2,318 | 3,672 | 1,411 | ||||||||
Equity in net income of subsidiaries of discontinued operations | 365 | 167 | 122 | ||||||||
Intercompany interest income (expense), net | 50 | 63 | 54 | ||||||||
Income from continuing operations before income taxes | 1,763 | 1,896 | 1,449 | ||||||||
Income tax (expense) benefit | (4) | ||||||||||
Income from continuing operations | 1,763 | 1,896 | 1,445 | ||||||||
Income from discontinued operations, net of income taxes | 817 | ||||||||||
Net income | 1,445 | ||||||||||
Net income attributable to TE Connectivity Ltd. | 2,580 | 1,896 | 1,445 | ||||||||
Other comprehensive income (loss) | (356) | (320) | 74 | ||||||||
Comprehensive income attributable to TE Connectivity Ltd. | 2,224 | 1,576 | 1,519 | ||||||||
Intercompany transactions losses | 846 | 1,874 | |||||||||
Other Subsidiaries | Reportable entities | |||||||||||
Statement of operations detail: | |||||||||||
Net sales | 12,233 | 11,973 | 11,390 | ||||||||
Cost of sales | 8,146 | 8,001 | 7,739 | ||||||||
Gross margin | 4,087 | 3,972 | 3,651 | ||||||||
Selling, general, and administrative expenses | 506 | (474) | 1,281 | ||||||||
Research, development, and engineering expenses | 627 | 583 | 590 | ||||||||
Acquisition and integration costs | 55 | 31 | 14 | ||||||||
Restructuring and other charges, net | 152 | 19 | 222 | ||||||||
Operating income | 2,747 | 3,813 | 1,544 | ||||||||
Interest income | 17 | 19 | 17 | ||||||||
Interest expense | (1) | (1) | (4) | ||||||||
Other income (expense), net | (55) | 48 | (183) | ||||||||
Intercompany interest income (expense), net | (53) | (61) | (41) | ||||||||
Income from continuing operations before income taxes | 2,655 | 3,818 | 1,333 | ||||||||
Income tax (expense) benefit | (337) | (146) | 79 | ||||||||
Income from continuing operations | 2,318 | 3,672 | 1,412 | ||||||||
Income from discontinued operations, net of income taxes | 365 | 167 | 122 | ||||||||
Net income | 1,534 | ||||||||||
Less: net income attributable to noncontrolling interests | (1) | ||||||||||
Net income attributable to TE Connectivity Ltd. | 2,683 | 3,839 | 1,533 | ||||||||
Other comprehensive income (loss) | (368) | (328) | 64 | ||||||||
Comprehensive income attributable to TE Connectivity Ltd. | $ 2,315 | $ 3,511 | $ 1,597 |
Tyco Electronics Group S.A. 100
Tyco Electronics Group S.A. (Details 2) - USD ($) $ in Millions | Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 28, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 3,329 | $ 2,457 | $ 1,403 | $ 1,589 |
Accounts receivable, net | 2,120 | 2,057 | ||
Inventories | 1,615 | 1,509 | ||
Prepaid expenses and other current assets | 478 | 519 | ||
Deferred income taxes | 345 | 324 | ||
Assets held for sale | 2,013 | |||
Total current assets | 7,887 | 8,879 | ||
Property, plant, and equipment, net | 2,920 | 2,920 | 2,951 | |
Goodwill | 4,824 | 3,726 | 3,452 | |
Intangible assets, net | 1,555 | 1,087 | ||
Deferred income taxes | 2,144 | 2,047 | ||
Receivable from Tyco International plc and Covidien plc | 964 | 1,037 | ||
Other assets | 314 | 456 | ||
Total Assets | 20,608 | 20,152 | 18,461 | |
Current liabilities: | ||||
Current maturities of long-term debt | 500 | 577 | ||
Accounts payable | 1,143 | 1,230 | ||
Accrued and other current liabilities | 1,749 | 1,594 | ||
Deferred revenue | 185 | 176 | ||
Liabilities held for sale | 416 | |||
Total current liabilities | 3,577 | 3,993 | ||
Long-term debt | 3,403 | 3,281 | ||
Long-term pension and postretirement liabilities | 1,327 | 1,280 | ||
Deferred income taxes | 329 | 229 | ||
Income taxes | 1,954 | 2,044 | ||
Other liabilities | 433 | 312 | ||
Total Liabilities | 11,023 | 11,139 | ||
Total Equity | 9,585 | 9,013 | 8,386 | 7,977 |
Total Liabilities and Equity | 20,608 | 20,152 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (1,268) | (1,192) | ||
Total current assets | (1,268) | (1,192) | ||
Investment in subsidiaries | (29,150) | (28,568) | ||
Intercompany loans receivable | (10,460) | (12,063) | ||
Total Assets | (40,878) | (41,823) | ||
Current liabilities: | ||||
Intercompany payables | (1,268) | (1,192) | ||
Total current liabilities | (1,268) | (1,192) | ||
Intercompany loans payable | (10,460) | (12,063) | ||
Total Liabilities | (11,728) | (13,255) | ||
Total Equity | (29,150) | (28,568) | ||
Total Liabilities and Equity | (40,878) | (41,823) | ||
TE Connectivity Ltd. | Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 813 | 932 | ||
Prepaid expenses and other current assets | 4 | 6 | ||
Total current assets | 817 | 938 | ||
Investment in subsidiaries | 9,505 | 8,602 | ||
Intercompany loans receivable | 22 | 20 | ||
Total Assets | 10,344 | 9,560 | ||
Current liabilities: | ||||
Accounts payable | 2 | 1 | ||
Accrued and other current liabilities | 442 | 282 | ||
Intercompany payables | 311 | 260 | ||
Total current liabilities | 755 | 543 | ||
Intercompany loans payable | 4 | 4 | ||
Total Liabilities | 759 | 547 | ||
Total Equity | 9,585 | 9,013 | ||
Total Liabilities and Equity | 10,344 | 9,560 | ||
TEGSA | Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | |||
Intercompany receivables | 389 | 230 | ||
Prepaid expenses and other current assets | 6 | 3 | ||
Total current assets | 395 | 234 | ||
Investment in subsidiaries | 19,645 | 19,966 | ||
Intercompany loans receivable | 2,328 | 2,160 | ||
Other assets | 44 | 30 | ||
Total Assets | 22,412 | 22,390 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 500 | 577 | ||
Accrued and other current liabilities | 75 | 50 | ||
Intercompany payables | 824 | |||
Total current liabilities | 1,399 | 627 | ||
Long-term debt | 3,402 | 3,281 | ||
Intercompany loans payable | 8,106 | 9,880 | ||
Total Liabilities | 12,907 | 13,788 | ||
Total Equity | 9,505 | 8,602 | ||
Total Liabilities and Equity | 22,412 | 22,390 | ||
Other Subsidiaries | Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 3,329 | 2,456 | $ 1,403 | $ 1,589 |
Accounts receivable, net | 2,120 | 2,057 | ||
Inventories | 1,615 | 1,509 | ||
Intercompany receivables | 66 | 30 | ||
Prepaid expenses and other current assets | 468 | 510 | ||
Deferred income taxes | 345 | 324 | ||
Assets held for sale | 2,013 | |||
Total current assets | 7,943 | 8,899 | ||
Property, plant, and equipment, net | 2,920 | 2,920 | ||
Goodwill | 4,824 | 3,726 | ||
Intangible assets, net | 1,555 | 1,087 | ||
Deferred income taxes | 2,144 | 2,047 | ||
Intercompany loans receivable | 8,110 | 9,883 | ||
Receivable from Tyco International plc and Covidien plc | 964 | 1,037 | ||
Other assets | 270 | 426 | ||
Total Assets | 28,730 | 30,025 | ||
Current liabilities: | ||||
Accounts payable | 1,141 | 1,229 | ||
Accrued and other current liabilities | 1,232 | 1,262 | ||
Deferred revenue | 185 | 176 | ||
Intercompany payables | 133 | 932 | ||
Liabilities held for sale | 416 | |||
Total current liabilities | 2,691 | 4,015 | ||
Long-term debt | 1 | |||
Intercompany loans payable | 2,350 | 2,179 | ||
Long-term pension and postretirement liabilities | 1,327 | 1,280 | ||
Deferred income taxes | 329 | 229 | ||
Income taxes | 1,954 | 2,044 | ||
Other liabilities | 433 | 312 | ||
Total Liabilities | 9,085 | 10,059 | ||
Total Equity | 19,645 | 19,966 | ||
Total Liabilities and Equity | $ 28,730 | $ 30,025 |
Tyco Electronics Group S.A. 101
Tyco Electronics Group S.A. (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | $ 1,619 | $ 1,804 | $ 1,775 |
Net cash used in discontinued operating activities | 294 | 279 | 271 |
Net cash provided by (used in) operating activities | 1,913 | 2,083 | 2,046 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (600) | (635) | (581) |
Proceeds from sale of property, plant, and equipment | 17 | 129 | 22 |
Acquisition of businesses, net of cash acquired | (1,725) | (522) | (6) |
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 2,957 | 14 | |
Other | 12 | (10) | 23 |
Net cash provided by (used in) continuing investing activities | 661 | (1,038) | (528) |
Net cash used in discontinued investing activities | (25) | (37) | (17) |
Net cash provided by (used in) investing activities | 636 | (1,075) | (545) |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in commercial paper | (328) | (23) | 50 |
Proceeds from issuance of long-term debt | 617 | 1,322 | |
Repayment of long-term debt | (473) | (360) | (714) |
Proceeds from exercise of share options | 103 | 156 | 214 |
Repurchase of common shares | (1,023) | (578) | (844) |
Payment of common share dividends and cash distributions to shareholders | (502) | (443) | (384) |
Transfers from discontinued operations | 269 | 242 | 254 |
Other | (9) | ||
Net cash provided by (used in) continuing financing activities | (1,337) | 307 | (1,424) |
Net cash used in discontinued financing activities | (269) | (242) | (254) |
Net cash provided by (used in) financing activities | (1,606) | 65 | (1,678) |
Effect of currency translation on cash | (71) | (19) | (9) |
Net increase (decrease) in cash and cash equivalents | 872 | 1,054 | (186) |
Cash and cash equivalents at beginning of fiscal year | 2,457 | 1,403 | 1,589 |
Cash and cash equivalents at end of fiscal year | 3,329 | 2,457 | 1,403 |
Consolidating Adjustments | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | (2,661) | (1,882) | (5,876) |
Net cash provided by (used in) operating activities | (2,661) | (1,882) | (5,876) |
Cash Flows From Investing Activities: | |||
Intercompany distribution receipts | (99) | (1,100) | |
Change in intercompany loans | 1,304 | (347) | (1,566) |
Net cash provided by (used in) continuing investing activities | 1,304 | (446) | (2,666) |
Net cash provided by (used in) investing activities | 1,304 | (446) | (2,666) |
Cash Flows From Financing Activities: | |||
Intercompany distributions | 2,661 | 1,981 | 6,976 |
Loan activity with affiliates | (1,304) | 347 | 1,566 |
Net cash provided by (used in) continuing financing activities | 1,357 | 2,328 | 8,542 |
Net cash provided by (used in) financing activities | 1,357 | 2,328 | 8,542 |
TE Connectivity Ltd. | Reportable entities | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | 1,186 | (296) | 3,621 |
Net cash provided by (used in) operating activities | 1,186 | (296) | 3,621 |
Cash Flows From Investing Activities: | |||
Proceeds from sale of property, plant, and equipment | 1 | ||
Other | (3) | ||
Net cash provided by (used in) continuing investing activities | (2) | ||
Net cash provided by (used in) investing activities | (2) | ||
Cash Flows From Financing Activities: | |||
Changes in parent company equity | 80 | 67 | (826) |
Repurchase of common shares | (916) | (127) | (602) |
Payment of common share dividends and cash distributions to shareholders | (515) | (452) | (391) |
Loan activity with affiliates | 165 | 808 | (1,800) |
Net cash provided by (used in) continuing financing activities | (1,186) | 296 | (3,619) |
Net cash provided by (used in) financing activities | (1,186) | 296 | (3,619) |
TEGSA | Reportable entities | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | 1,270 | 1,829 | 1,972 |
Net cash provided by (used in) operating activities | 1,270 | 1,829 | 1,972 |
Cash Flows From Investing Activities: | |||
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 709 | ||
Intercompany distribution receipts | 99 | 1,100 | |
Change in intercompany loans | (1,304) | 347 | 1,566 |
Net cash provided by (used in) continuing investing activities | (595) | 446 | 2,666 |
Net cash provided by (used in) investing activities | (595) | 446 | 2,666 |
Cash Flows From Financing Activities: | |||
Changes in parent company equity | 624 | (3,259) | (174) |
Net increase (decrease) in commercial paper | (328) | (23) | 50 |
Proceeds from issuance of long-term debt | 617 | 1,322 | |
Repayment of long-term debt | (250) | (303) | (714) |
Intercompany distributions | (1,335) | (3,800) | |
Other | (4) | (11) | |
Net cash provided by (used in) continuing financing activities | (676) | (2,274) | (4,638) |
Net cash provided by (used in) financing activities | (676) | (2,274) | (4,638) |
Net increase (decrease) in cash and cash equivalents | (1) | 1 | |
Cash and cash equivalents at beginning of fiscal year | 1 | ||
Cash and cash equivalents at end of fiscal year | 1 | ||
Other Subsidiaries | Reportable entities | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | 1,824 | 2,153 | 2,058 |
Net cash used in discontinued operating activities | 294 | 279 | 271 |
Net cash provided by (used in) operating activities | 2,118 | 2,432 | 2,329 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (600) | (635) | (581) |
Proceeds from sale of property, plant, and equipment | 17 | 129 | 21 |
Acquisition of businesses, net of cash acquired | (1,725) | (522) | (6) |
Proceeds from divestiture of discontinued operations, net of cash retained by sold operations | 2,248 | 14 | |
Other | 12 | (10) | 26 |
Net cash provided by (used in) continuing investing activities | (48) | (1,038) | (526) |
Net cash used in discontinued investing activities | (25) | (37) | (17) |
Net cash provided by (used in) investing activities | (73) | (1,075) | (543) |
Cash Flows From Financing Activities: | |||
Changes in parent company equity | (704) | 3,192 | 1,000 |
Repayment of long-term debt | (223) | (57) | |
Proceeds from exercise of share options | 103 | 156 | 214 |
Repurchase of common shares | (107) | (451) | (242) |
Payment of common share dividends and cash distributions to shareholders | 13 | 9 | 7 |
Intercompany distributions | (1,326) | (1,981) | (3,176) |
Loan activity with affiliates | 1,139 | (1,155) | 234 |
Transfers from discontinued operations | 269 | 242 | 254 |
Other | 4 | 2 | |
Net cash provided by (used in) continuing financing activities | (832) | (43) | (1,709) |
Net cash used in discontinued financing activities | (269) | (242) | (254) |
Net cash provided by (used in) financing activities | (1,101) | (285) | (1,963) |
Effect of currency translation on cash | (71) | (19) | (9) |
Net increase (decrease) in cash and cash equivalents | 873 | 1,053 | (186) |
Cash and cash equivalents at beginning of fiscal year | 2,456 | 1,403 | 1,589 |
Cash and cash equivalents at end of fiscal year | $ 3,329 | $ 2,456 | $ 1,403 |
SCHEDULE II-VALUATION AND QU102
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 27, 2013 | |
Allowance for doubtful accounts receivable | |||
Valuation and qualifying accounts. | |||
Balance at Beginning of Year | $ 14 | $ 29 | $ 26 |
Additions Charged to Costs and Expenses | 2 | 2 | 3 |
Acquisitions, Divestitures and Other | 3 | ||
Deductions | (1) | (17) | |
Balance at End of Year | 18 | 14 | 29 |
Valuation allowance on deferred tax assets | |||
Valuation and qualifying accounts. | |||
Balance at Beginning of Year | 1,706 | 1,801 | 1,700 |
Additions Charged to Costs and Expenses | 1,627 | 285 | 323 |
Acquisitions, Divestitures and Other | 1 | ||
Deductions | (97) | (380) | (222) |
Balance at End of Year | $ 3,237 | $ 1,706 | $ 1,801 |