Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 25, 2015 | Jan. 15, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | TE Connectivity Ltd. | |
Entity Central Index Key | 1,385,157 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 25, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 369,677,636 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 2,833 | $ 3,049 |
Cost of sales | 1,888 | 2,029 |
Gross margin | 945 | 1,020 |
Selling, general, and administrative expenses | 340 | 386 |
Research, development, and engineering expenses | 162 | 160 |
Acquisition and integration costs | 5 | 24 |
Restructuring and other charges, net | 40 | 25 |
Operating income | 398 | 425 |
Interest income | 6 | 5 |
Interest expense | (30) | (34) |
Other income (expense), net | 8 | (70) |
Income from continuing operations before income taxes | 382 | 326 |
Income tax (expense) benefit | (58) | 109 |
Income from continuing operations | 324 | 435 |
Income from discontinued operations, net of income taxes | 29 | 37 |
Net Income | $ 353 | $ 472 |
Basic earnings per share: | ||
Income from continuing operations (in dollars per share) | $ 0.84 | $ 1.07 |
Income from discontinued operations (in dollars per share) | 0.08 | 0.09 |
Net income (in dollars per share) | 0.92 | 1.16 |
Diluted earnings per share: | ||
Income from continuing operations (in dollars per share) | 0.83 | 1.05 |
Income from discontinued operations (in dollars per share) | 0.07 | 0.09 |
Net income (in dollars per share) | 0.91 | 1.14 |
Dividends paid per common share | $ 0.33 | $ 0.29 |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 385 | 407 |
Diluted (in shares) | 390 | 413 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income | $ 353 | $ 472 |
Other comprehensive loss: | ||
Currency translation | (85) | (211) |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 2 | 10 |
Losses on cash flow hedges, net of income taxes | (7) | (5) |
Other comprehensive loss | (90) | (206) |
Comprehensive income | $ 263 | $ 266 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 25, 2015 | Sep. 25, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,223 | $ 3,329 |
Accounts receivable, net of allowance for doubtful accounts of $18 | 1,878 | 2,120 |
Inventories | 1,700 | 1,615 |
Prepaid expenses and other current assets | 704 | 476 |
Deferred income taxes | 345 | |
Total current assets | 6,505 | 7,885 |
Property, plant, and equipment, net | 2,866 | 2,920 |
Goodwill | 4,651 | 4,824 |
Intangible assets, net | 1,468 | 1,555 |
Deferred income taxes | 2,454 | 2,144 |
Receivable from Tyco International plc and Covidien plc | 972 | 964 |
Other assets | 307 | 297 |
Total Assets | 19,223 | 20,589 |
Current liabilities: | ||
Current maturities of long-term debt | 500 | 498 |
Accounts payable | 1,108 | 1,143 |
Accrued and other current liabilities | 1,545 | 1,749 |
Deferred revenue | 113 | 185 |
Total current liabilities | 3,266 | 3,575 |
Long-term debt | 3,370 | 3,386 |
Long-term pension and postretirement liabilities | 1,307 | 1,327 |
Deferred income taxes | 291 | 329 |
Income taxes | 1,974 | 1,954 |
Other liabilities | 438 | 433 |
Total Liabilities | $ 10,646 | $ 11,004 |
Commitments and contingencies (Note 11) | ||
Shareholders' Equity: | ||
Common shares, 414,064,381 shares authorized and issued, CHF 0.57 par value | $ 182 | $ 182 |
Contributed surplus | 4,284 | 4,359 |
Accumulated earnings | 7,026 | 6,673 |
Treasury shares, at cost, 38,370,435 and 20,071,089 shares, respectively | (2,452) | (1,256) |
Accumulated other comprehensive loss | (463) | (373) |
Total Shareholders' Equity | 8,577 | 9,585 |
Total Liabilities and Shareholders' Equity | $ 19,223 | $ 20,589 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Dec. 25, 2015SFr / shares | Dec. 25, 2015USD ($)shares | Dec. 26, 2014SFr / shares | Dec. 26, 2014USD ($)shares |
CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ | $ 18 | $ 18 | ||
Common shares, shares authorized | 414,064,381 | 414,064,381 | ||
Common shares, shares issued | 414,064,381 | 414,064,381 | ||
Common shares, par value (in currency per share) | SFr / shares | SFr 0.57 | SFr 0.57 | ||
Treasury shares | 38,370,435 | 20,071,089 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | TE Connectivity Ltd. Shareholders' Equity | Noncontrolling Interests | Total |
Balance at Sep. 26, 2014 | $ 184 | $ (644) | $ 5,231 | $ 4,253 | $ (17) | $ 9,007 | $ 6 | $ 9,013 |
Balance (in shares) at Sep. 26, 2014 | 419 | (11) | ||||||
Increase (Decrease) in Equity: | ||||||||
Net Income | 472 | 472 | 472 | |||||
Other comprehensive loss | (206) | (206) | (206) | |||||
Share-based compensation expense | 25 | 25 | 25 | |||||
Exercise of share options | $ 16 | 16 | 16 | |||||
Restricted share award vestings and other activity | $ 66 | (75) | (9) | (9) | ||||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | $ (141) | (141) | $ (141) | |||||
Repurchase of common shares (in shares) | (2) | (2) | ||||||
Balance at Dec. 26, 2014 | $ 184 | $ (703) | 5,181 | 4,725 | (223) | 9,164 | $ 6 | $ 9,170 |
Balance (in shares) at Dec. 26, 2014 | 419 | (12) | ||||||
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) | ||||||
Increase (Decrease) in Equity: | ||||||||
Net Income | 353 | 353 | 353 | |||||
Other comprehensive loss | (90) | (90) | (90) | |||||
Share-based compensation expense | 23 | 23 | 23 | |||||
Exercise of share options | $ 34 | 34 | 34 | |||||
Exercise of share options (in shares) | 1 | |||||||
Restricted share award vestings and other activity | $ 88 | (98) | (10) | (10) | ||||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | $ (1,318) | (1,318) | $ (1,318) | |||||
Repurchase of common shares (in shares) | (20) | (20) | ||||||
Balance at Dec. 25, 2015 | $ 182 | $ (2,452) | $ 4,284 | $ 7,026 | $ (463) | $ 8,577 | $ 8,577 | |
Balance (in shares) at Dec. 25, 2015 | 414 | (38) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 353 | $ 472 |
Income from discontinued operations, net of income taxes | (29) | (37) |
Income from continuing operations | 324 | 435 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 146 | 160 |
Non-cash restructuring charges | 2 | 15 |
Deferred income taxes | (58) | (79) |
Provision for losses on accounts receivable and inventories | 21 | 18 |
Tax sharing (income) expense | (8) | 69 |
Share-based compensation expense | 22 | 23 |
Other | 15 | 30 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | 237 | 34 |
Inventories | (99) | (161) |
Prepaid expenses and other current assets | 16 | 3 |
Accounts payable | (55) | 8 |
Accrued and other current liabilities | (130) | (202) |
Deferred revenue | (71) | (56) |
Income taxes | 28 | (115) |
Other | (23) | 23 |
Net cash provided by continuing operating activities | 367 | 205 |
Net cash provided by (used in) discontinued operating activities | (1) | 90 |
Net cash provided by operating activities | 366 | 295 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (139) | (135) |
Proceeds from sale of property, plant, and equipment | 1 | 5 |
Acquisition of businesses, net of cash acquired | (1,511) | |
Other | 17 | (3) |
Net cash used in continuing investing activities | (121) | (1,644) |
Net cash used in discontinued investing activities | (7) | |
Net cash used in investing activities | (121) | (1,651) |
Cash Flows From Financing Activities: | ||
Net increase in commercial paper | 270 | |
Repayment of long-term debt | (223) | |
Proceeds from exercise of share options | 34 | 16 |
Repurchase of common shares | (1,249) | (155) |
Payment of common share dividends to shareholders | (127) | (118) |
Transfers (to) from discontinued operations | (1) | 83 |
Other | (4) | 1 |
Net cash used in continuing financing activities | (1,347) | (126) |
Net cash provided by (used in) discontinued financing activities | 1 | (83) |
Net cash used in financing activities | (1,346) | (209) |
Effect of currency translation on cash | (5) | (24) |
Net decrease in cash and cash equivalents | (1,106) | (1,589) |
Cash and cash equivalents at beginning of period | 3,329 | 2,457 |
Cash and cash equivalents at end of period | $ 2,223 | $ 868 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 25, 2015 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The unaudited Condensed Consolidated Financial Statements of TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") have been prepared in United States ("U.S.") dollars, in accordance with accounting principles generally accepted in the U.S. ("GAAP") and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. In management's opinion, the unaudited Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire fiscal year or any subsequent interim period. The year-end balance sheet data was derived from audited financial statements, but does not include all of the information and disclosures required by GAAP. These financial statements should be read in conjunction with our audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the fiscal year ended September 25, 2015. Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2016 and fiscal 2015 are to our fiscal years ending September 30, 2016 and September 25, 2015, respectively. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Dec. 25, 2015 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued an update to Accounting Standards Codification ("ASC") 835, Interest , requiring that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is required to be applied on a retrospective basis and is effective for us in the first quarter of fiscal 2017. We elected to early adopt this update during the first quarter of fiscal 2016. Adoption did not have a material impact on the Condensed Consolidated Financial Statements. In November 2015, the FASB issued an update to ASC 740, Income Taxes , requiring that deferred tax assets and liabilities be classified as non-current in a classified statement of financial position. This update is effective for us in the first quarter of fiscal 2018; however, we elected to early adopt this update on a prospective basis during the first quarter of fiscal 2016. Prior period amounts were not retrospectively adjusted. The impact of adoption was a $345 million decrease in deferred income taxes (current asset), a $313 million increase in deferred income taxes (non-current asset), a $33 million decrease in accrued and other current liabilities, and a $1 million increase in deferred income taxes (non-current liability) on the Condensed Consolidated Balance Sheet at December 25, 2015. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 3 Months Ended |
Dec. 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: For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Restructuring charges, net $ $ Other charges, net — ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net restructuring charges by segment were as follows: For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves during the first quarter of fiscal 2016 is summarized as follows: Balance at September 25, 2015 Charges Cash Payments Non-Cash Items Currency Translation Balance at December 25, 2015 (in millions) Fiscal 2016 Actions: Employee severance $ — $ $ ) $ — $ — $ Facility and other exit costs — ) — — — Property, plant, and equipment — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2015 Actions: Employee severance ) — ) Facility and other exit costs — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2015 Actions: Employee severance — ) — — Facility and other exit costs ) — — Property, plant, and equipment — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2016 Actions During fiscal 2016, we initiated a restructuring program associated with headcount reductions and product line closures impacting all segments. In connection with this program, during the quarter ended December 25, 2015, we recorded restructuring charges of $32 million. We expect to complete all restructuring actions commenced in the first quarter of fiscal 2016 by the end of fiscal 2019 and to incur total charges of approximately $65 million. The following table summarizes expected, incurred, and remaining charges for the fiscal 2016 program by type: Total Expected Charges Charges Incurred For the Quarter Ended December 25, 2015 Remaining Expected Charges (in millions) Employee severance $ $ $ Facility and other exit costs Property, plant, and equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes expected, incurred, and remaining charges for the fiscal 2016 program by segment: Total Expected Charges Charges Incurred For the Quarter Ended December 25, 2015 Remaining Expected Charges (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 the quarters ended December 25, 2015 and December 26, 2014, we recorded restructuring charges of $1 million and $25 million, respectively. We do not expect to incur any additional charges related to fiscal 2015 actions. Pre-Fiscal 2015 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. During fiscal 2013, we initiated a restructuring program associated with headcount reductions and manufacturing site closures impacting all segments. During the quarter ended December 25, 2015, we recorded restructuring charges of $2 million related to pre-fiscal 2015 actions. We do not expect to incur any additional charges related to pre-fiscal 2015 actions. Total Restructuring Reserves Restructuring reserves included on the Condensed Consolidated Balance Sheets were as follows: December 25, 2015 September 25, 2015 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 3 Months Ended |
Dec. 25, 2015 | |
Discontinued Operations and Divestitures | |
Discontinued Operations and Divestitures | 4. Discontinued Operations and Divestiture Discontinued Operations During the fourth quarter of fiscal 2015, we sold our Broadband Network Solutions ("BNS") business for $3.0 billion in cash and recognized a pre-tax gain of $1,105 million on the transaction. In the first quarter of fiscal 2016, we recognized an additional pre-tax gain of $38 million on the divestiture, related primarily to pension and net working capital adjustments. The BNS business met the discontinued operations criteria and was reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the BNS business was included in the former Network Solutions segment. The following table presents certain components of income from discontinued operations related to BNS and prior divestitures: For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Net sales from discontinued operations $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income (loss) from discontinued operations $ ) $ Pre-tax gain on sale of discontinued operations — Income tax expense ) ) ​ ​ ​ ​ ​ ​ ​ ​ Income from discontinued operations, net of income taxes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Planned Divestiture 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 December 25, 2015. The CPD business is currently reported in our Communications Solutions segment. |
Acquisition
Acquisition | 3 Months Ended |
Dec. 25, 2015 | |
Acquisition | |
Acquisition | 5. Acquisition On October 9, 2014, we acquired 100% of the outstanding shares of Measurement Specialties, Inc. ("Measurement Specialties"). The following unaudited pro forma financial information reflects our consolidated results of operations had the Measurement Specialties acquisition occurred at the beginning of fiscal 2014: Pro Forma for the Quarter Ended December 26, 2014 (in millions, except per share data) Net sales $ Net income. Diluted earnings per share $ The pro forma financial information is based on our final allocation of the purchase price. The significant pro forma adjustments, which are described below, are net of income tax expense (benefit) at the statutory rate. Pro forma results for the quarter ended December 26, 2014 were adjusted to exclude $16 million of acquisition costs, $15 million of share-based compensation expense incurred by Measurement Specialties as a result of the change in control of Measurement Specialties, $11 million of charges related to the fair value adjustment to acquisition-date inventories, $8 million of income tax expense based on the estimated impact of combining Measurement Specialties into our global tax position, and $5 million of charges related to acquired customer order backlog. Pro forma results for the quarter ended December 26, 2014 were also adjusted to include $1 million of interest expense based on pro forma changes in our capital structure. Pro forma results do not include any anticipated synergies or other anticipated benefits of the acquisition. Accordingly, the unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Measurement Specialties acquisition occurred at the beginning of fiscal 2014. |
Inventories
Inventories | 3 Months Ended |
Dec. 25, 2015 | |
Inventories. | |
Inventories | 6. Inventories Inventories consisted of the following: December 25, 2015 September 25, 2015 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill
Goodwill | 3 Months Ended |
Dec. 25, 2015 | |
Goodwill | |
Goodwill | 7. Goodwill The changes in the carrying amount of goodwill by segment were as follows: Transportation Solutions Industrial Solutions Communications Solutions (2) Total (in millions) September 25, 2015 (1) $ $ $ $ Currency translation and other ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 25, 2015 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At December 25, 2015 and September 25, 2015, accumulated impairment losses for the Transportation Solutions and Industrial Solutions segments were $2,191 million and $669 million, respectively. Accumulated impairment losses for the Communications Solutions segment were $1,514 million and $1,626 million at December 25, 2015 and September 25, 2015, respectively. (2) During fiscal 2016, in connection with the planned divestiture of our CPD business, net goodwill of $117 million was treated as assets held for sale and recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet at December 25, 2015. See Note 4 for additional information. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Dec. 25, 2015 | |
Intangible Assets, Net | |
Intangible Assets, Net | 8. Intangible Assets, Net Intangible assets consisted of the following: December 25, 2015 September 25, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Intellectual property $ $ ) $ $ $ ) $ Customer relationships ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible asset amortization expense was $34 million and $42 million for the quarters ended December 25, 2015 and December 26, 2014, respectively. The aggregate amortization expense on intangible assets is expected to be as follows: (in millions) Remainder of fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 3 Months Ended |
Dec. 25, 2015 | |
Debt | |
Debt | 9. Debt Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, has a five-year unsecured senior revolving credit facility ("Credit Facility") with total commitments of $1,500 million. The Credit Facility was amended in December 2015 primarily to extend the maturity date from August 2018 to December 2020. TEGSA had no borrowings under the Credit Facility at December 25, 2015 and September 25, 2015. Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the option of TEGSA, (1) London interbank offered rate ("LIBOR") plus an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA, or (2) an alternate base rate equal to the highest of (i) Bank of America, N.A.'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 5.0 to 12.5 basis points based upon the amount of the lenders' commitments under the Credit Facility and the applicable credit ratings of TEGSA. The fair value of our debt, based on indicative valuations, was approximately $4,067 million and $4,115 million at December 25, 2015 and September 25, 2015, respectively. |
Guarantees
Guarantees | 3 Months Ended |
Dec. 25, 2015 | |
Guarantees | |
Guarantees | 10. 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. If any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, we would be responsible for a portion of the defaulting party or parties' obligation. Our indemnification created under the Tax Sharing Agreement qualifies as a guarantee of a third party entity's debt under ASC 460, Guarantees . At December 25, 2015 and September 25, 2015, we had a liability of $17 million representing the indemnifications made to Tyco International and Covidien pursuant to the Tax Sharing Agreement. Other Matters In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows. At December 25, 2015, we had outstanding letters of credit, letters of guarantee, and surety and appeal bonds in the amount of $504 million. In the normal course of business, we are liable for contract completion and product performance. In the opinion of management, such obligations will not significantly affect our results of operations, financial position, or cash flows. We generally record estimated product warranty costs when contract revenues are recognized under the percentage-of-completion method for construction related contracts; other warranty reserves are not significant. The estimation is based primarily on historical experience and actual warranty claims. Amounts accrued for warranty claims were $39 million and $35 million at December 25, 2015 and September 25, 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 25, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings In the normal 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 appropriately reserved for this matter and are proceeding with an appeal. Income Tax Matters The Tax Sharing Agreement generally governs our, Tyco International's, and Covidien's respective rights, responsibilities, and obligations with respect to taxes for periods prior to and including June 29, 2007. Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. See Note 10 for additional information regarding the Tax Sharing Agreement. In October 2012, the Internal Revenue Service ("IRS") issued special agreement Forms 870-AD, effectively settling its audit of all tax matters for the years 1997 through 2000, excluding one issue that remains in dispute involving 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 currently scheduled to commence during October 2016. The parties remain engaged in discovery. 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. In the first quarter of fiscal 2015, the IRS issued general agreement Forms 870, effectively settling its audits of tax matters for the years 2001 through 2007, excluding the disputed issue discussed above. As a result of these developments, in the first quarter of fiscal 2015, we recognized an income tax benefit of $189 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $83 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. 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. During the first quarters of fiscal 2016 and 2015, we made net payments of $1 million and $4 million, respectively, related to pre-separation U.S. tax matters. At December 25, 2015 and September 25, 2015, we have reflected $20 million and $17 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 Condensed Consolidated Financial Statements relating to the matters discussed above are appropriate. However, the ultimate resolution is uncertain and could result in a material impact to our results of operations, financial position, or cash flows. See Note 20 for additional information on developments subsequent to December 25, 2015 regarding income tax matters, including the disputed issue. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of December 25, 2015, we concluded that it was probable that we would incur remedial costs in the range of $16 million to $44 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
Financial Instruments | 3 Months Ended |
Dec. 25, 2015 | |
Financial Instruments | |
Financial Instruments | 12. Financial Instruments Hedges of Net Investment We hedge our net investment in certain foreign operations using intercompany non-derivative financial instruments denominated in the same currencies. The aggregate notional value of these hedges was $3,853 million and $3,880 million at December 25, 2015 and September 25, 2015, respectively. Foreign exchange gains of $55 million and $130 million in the quarters ended December 25, 2015 and December 26, 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. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 25, 2015 | |
Retirement Plans | |
Retirement Plans | 13. Retirement Plans The net periodic pension benefit cost for all U.S. and non-U.S. defined benefit pension plans was as follows: U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended December 25, 2015 December 26, 2014 December 25, 2015 December 26, 2014 (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Amortization of prior service credit — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the quarter ended December 25, 2015, we contributed $27 million to our non-U.S. pension plans. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 25, 2015 | |
Income Taxes | |
Income Taxes | 14. Income Taxes We recorded an income tax provision of $58 million and an income tax benefit of $109 million for the quarters ended December 25, 2015 and December 26, 2014, respectively. The tax provision for the quarter ended December 25, 2015 includes a $28 million income tax benefit related to deferred tax assets recognized in connection with the anticipated sale of the CPD business. The tax benefit for the quarter ended December 26, 2014 includes a $189 million income tax benefit related to the effective settlement of undisputed tax matters for the years 2001 through 2007, and a $22 million income tax benefit related to the impacts of certain non-U.S. tax law changes and the associated reduction in the valuation allowance for tax loss carryforwards. We record accrued interest as well as penalties related to uncertain tax positions as part of the provision for income taxes. As of December 25, 2015 and September 25, 2015, we had recorded $1,097 million and $1,076 million, respectively, of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheets, recorded primarily in income taxes. During the quarter ended December 25, 2015, we recognized a $21 million income tax provision related to interest and penalties on the Condensed Consolidated Statement of Operations. Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $65 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. See Notes 11 and 20 for additional information regarding the status of IRS examinations, including developments subsequent to December 25, 2015. We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of December 25, 2015. |
Other Income (Expense), Net
Other Income (Expense), Net | 3 Months Ended |
Dec. 25, 2015 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 15. Other Income (Expense), Net During the quarters ended December 25, 2015 and December 26, 2014, we recorded net other income of $8 million and net other expense of $70 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. See Note 10 for further information regarding the Tax Sharing Agreement. The net other expense for the quarter ended December 26, 2014 included $83 million related to the effective settlement of undisputed tax matters for the years 2001 through 2007. See Note 11 for additional information. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 25, 2015 | |
Earnings Per Share | |
Earnings Per Share | 16. Earnings Per Share The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows: For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ There were two million share options that were not included in the computation of diluted earnings per share for the first quarters of fiscal 2016 and 2015 because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive. |
Equity
Equity | 3 Months Ended |
Dec. 25, 2015 | |
Equity | |
Equity | 17. Equity Dividends We paid a cash dividend of $0.33 per share to shareholders out of contributed surplus in the first quarter of fiscal 2016. Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to contributed surplus. At December 25, 2015 and September 25, 2015, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $124 million and $260 million, respectively. Share Repurchase Program Common shares repurchased under the share repurchase program were as follows: For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Number of common shares repurchased Amount repurchased $ $ At December 25, 2015, we had $1.4 billion of availability remaining under our share repurchase authorization. |
Share Plans
Share Plans | 3 Months Ended |
Dec. 25, 2015 | |
Share Plans | |
Share Plans | 18. Share Plans Total share-based compensation expense, which was included primarily in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was as follows: For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Share-based compensation expense $ $ As of December 25, 2015, there was $195 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.2 years. During the first quarter of fiscal 2016, we granted the following equity awards as part of our annual incentive plan grant: Shares Weighted- Average Grant-Date Fair Value (in millions) Share options $ Restricted share awards Performance share awards As of December 25, 2015, we had 16 million shares available for issuance under our stock and incentive plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, as amended and restated, was the primary plan. Share-Based Compensation Assumptions The weighted-average assumptions we used in the Black-Scholes-Merton option pricing model for the options granted as part of our annual incentive plan grant were as follows: Expected share price volatility % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data
Segment Data | 3 Months Ended |
Dec. 25, 2015 | |
Segment Data | |
Segment Data | 19. Segment Data Net sales and operating income by segment were as follows: Net Sales (1) Operating Income For the Quarters Ended For the Quarters Ended December 25, 2015 December 26, 2014 December 25, 2015 December 26, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 25, 2015 | |
Subsequent Event: | |
Subsequent Event | 20. Subsequent Event Income Tax Matters On January 15, 2016, Tyco International entered into Stipulations of Settled Issues (the "Stipulations") with the IRS intended to resolve all disputes related to the intercompany debt matters for the 1997 through 2000 audit cycle currently before the U.S. Tax Court. The Stipulations are contingent upon the IRS Appeals Division applying the same settlement or framework to all intercompany debt issues on appeal for subsequent audit cycles (years 2001 through 2007) and, if applicable, the review by the U.S. Congress Joint Committee on Taxation. If finalized, this would resolve all aspects of the intercompany debt dispute relating to the 1997 through 2000 audit cycle before the U.S. Tax Court and subsequent audit cycles (years 2001 through 2007) before the Appeals Division of the IRS. In addition, we expect the terms of the resolution will be consistently applied by the IRS to all of our U.S. income tax returns filed subsequent to fiscal 2007. The settlement is expected to result in a total cash payment to the IRS between $475 million and $525 million, including all interest and penalties. In accordance with the Tax Sharing Agreement, our payment obligation is expected to be between $147 million and $163 million. We do not expect to recognize any additional charges if the settlement becomes effective, as we previously recorded sufficient reserves with respect to this dispute and our obligations under the Tax Sharing Agreement. We expect payment to be made to the IRS, and among the parties to the Tax Sharing Agreement, within the next six months. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 3 Months Ended |
Dec. 25, 2015 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 21. 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 (UNAUDITED) For the Quarter Ended December 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 ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income (loss) from discontinued operations, net of income taxes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended December 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 ) — 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 benefit — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) As of December 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 — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Shareholders' 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 Shareholders' Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Shareholders' Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) 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 Shareholders' 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 Shareholders' Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Shareholders' Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows (UNAUDITED) For the Quarter Ended December 25, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash used in 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 — — — Proceeds from divestiture of discontinued operations (1) — ) — — Change in intercompany loans — — ) — Other — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) ) — — Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) — Transfers to discontinued operations — — ) — ) Other — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash provided by discontinued financing activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net decrease in cash and cash equivalents — — ) — ) Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the internal allocation of proceeds associated with the divestiture of our BNS business. (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 (UNAUDITED) For the Quarter Ended December 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 $ ) $ ) $ $ — $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) — ) — — Net increase in commercial paper — — — Repayment of long-term debt — — ) — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with 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 decrease in cash and cash equivalents — ) ) — ) Cash and cash equivalents at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Restructuring and Other Charg29
Restructuring and Other Charges, Net (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Restructuring and Other Charges, Net | |
Schedule of restructuring and other charges | For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Restructuring charges, net $ $ Other charges, net — ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net restructuring charges by segment | For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of activity in restructuring reserves | Balance at September 25, 2015 Charges Cash Payments Non-Cash Items Currency Translation Balance at December 25, 2015 (in millions) Fiscal 2016 Actions: Employee severance $ — $ $ ) $ — $ — $ Facility and other exit costs — ) — — — Property, plant, and equipment — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2015 Actions: Employee severance ) — ) Facility and other exit costs — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2015 Actions: Employee severance — ) — — Facility and other exit costs ) — — Property, plant, and equipment — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring reserves included on Condensed Consolidated Balance Sheets | December 25, 2015 September 25, 2015 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fiscal 2016 Actions | |
Restructuring and Other Charges (credits), Net | |
Summary of charges by type | Total Expected Charges Charges Incurred For the Quarter Ended December 25, 2015 Remaining Expected Charges (in millions) Employee severance $ $ $ Facility and other exit costs Property, plant, and equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of charges by segment | Total Expected Charges Charges Incurred For the Quarter Ended December 25, 2015 Remaining Expected Charges (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations and D30
Discontinued Operations and Divestitures (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Discontinued Operations and Divestitures | |
Income from discontinued operations | For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Net sales from discontinued operations $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income (loss) from discontinued operations $ ) $ Pre-tax gain on sale of discontinued operations — Income tax expense ) ) ​ ​ ​ ​ ​ ​ ​ ​ Income from discontinued operations, net of income taxes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Measurement Specialties | |
Business acquisition information | |
Pro forma financial information | Pro Forma for the Quarter Ended December 26, 2014 (in millions, except per share data) Net sales $ Net income. Diluted earnings per share $ |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Inventories. | |
Schedule of inventories | December 25, 2015 September 25, 2015 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Goodwill | |
Changes in the carrying amount of goodwill by segment | Transportation Solutions Industrial Solutions Communications Solutions (2) Total (in millions) September 25, 2015 (1) $ $ $ $ Currency translation and other ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 25, 2015 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At December 25, 2015 and September 25, 2015, accumulated impairment losses for the Transportation Solutions and Industrial Solutions segments were $2,191 million and $669 million, respectively. Accumulated impairment losses for the Communications Solutions segment were $1,514 million and $1,626 million at December 25, 2015 and September 25, 2015, respectively. (2) During fiscal 2016, in connection with the planned divestiture of our CPD business, net goodwill of $117 million was treated as assets held for sale and recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet at December 25, 2015. See Note 4 for additional information. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | December 25, 2015 September 25, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Intellectual property $ $ ) $ $ $ ) $ Customer relationships ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of finite-lived intangible assets, future amortization expense | (in millions) Remainder of fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Retirement Plans | |
Net periodic pension benefit cost | U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended December 25, 2015 December 26, 2014 December 25, 2015 December 26, 2014 (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Amortization of prior service credit — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Earnings Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Equity | |
Schedule of common shares repurchased | For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Number of common shares repurchased Amount repurchased $ $ |
Share Plans (Tables)
Share Plans (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Share Plans | |
Share-based compensation expense | For the Quarters Ended December 25, 2015 December 26, 2014 (in millions) Share-based compensation expense $ $ |
Summary of equity award activity | Shares Weighted- Average Grant-Date Fair Value (in millions) Share options $ Restricted share awards Performance share awards |
Weighted-average assumptions | Expected share price volatility % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Segment Data | |
Net sales and operating income by business segment | Net Sales (1) Operating Income For the Quarters Ended For the Quarters Ended December 25, 2015 December 26, 2014 December 25, 2015 December 26, 2014 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 3 Months Ended |
Dec. 25, 2015 | |
Tyco Electronics Group S.A. | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended December 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 ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income (loss) from discontinued operations, net of income taxes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended December 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 ) — 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 benefit — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet (UNAUDITED) As of December 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 — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Shareholders' 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 Shareholders' Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Shareholders' Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) 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 Shareholders' 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 Shareholders' Equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities and Shareholders' Equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows (UNAUDITED) For the Quarter Ended December 25, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash used in 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 — — — Proceeds from divestiture of discontinued operations (1) — ) — — Change in intercompany loans — — ) — Other — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) ) — — Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) — Transfers to discontinued operations — — ) — ) Other — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash provided by discontinued financing activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net decrease in cash and cash equivalents — — ) — ) Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the internal allocation of proceeds associated with the divestiture of our BNS business. (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 (UNAUDITED) For the Quarter Ended December 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 $ ) $ ) $ $ — $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) — ) — — Net increase in commercial paper — — — Repayment of long-term debt — — ) — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with 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 decrease in cash and cash equivalents — ) ) — ) Cash and cash equivalents at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 25, 2015 | Sep. 25, 2015 |
Current assets: | ||
Deferred income taxes | $ 345 | |
Noncurrent assets: | ||
Deferred income taxes | $ 2,454 | 2,144 |
Current liabilities: | ||
Accrued and other current liabilities | 1,545 | 1,749 |
Noncurrent liabilities: | ||
Deferred income taxes | 291 | $ 329 |
Impact of Adoption | ||
Current assets: | ||
Deferred income taxes | (345) | |
Noncurrent assets: | ||
Deferred income taxes | 313 | |
Current liabilities: | ||
Accrued and other current liabilities | (33) | |
Noncurrent liabilities: | ||
Deferred income taxes | $ 1 |
Restructuring and Other Charg42
Restructuring and Other Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Restructuring and other charges, net: | ||
Restructuring charges, net | $ 35 | $ 25 |
Other charges, net | 5 | |
Restructuring and other charges, net | 40 | 25 |
Transportation Solutions | ||
Restructuring and other charges, net: | ||
Restructuring charges, net | 15 | 1 |
Industrial Solutions | ||
Restructuring and other charges, net: | ||
Restructuring charges, net | 9 | 2 |
Communications Solutions | ||
Restructuring and other charges, net: | ||
Restructuring charges, net | $ 11 | $ 22 |
Restructuring and Other Charg43
Restructuring and Other Charges, Net (Details 2) $ in Millions | 3 Months Ended |
Dec. 25, 2015USD ($) | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 84 |
Charges | 35 |
Cash Payments | (21) |
Non-Cash Items | (2) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 95 |
Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 32 |
Cash Payments | (3) |
Non-Cash Items | (1) |
Restructuring reserve at the end of the period | 28 |
Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 46 |
Charges | 1 |
Cash Payments | (12) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 34 |
Pre-Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 38 |
Charges | 2 |
Cash Payments | (6) |
Non-Cash Items | (1) |
Restructuring reserve at the end of the period | 33 |
Employee severance | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 30 |
Cash Payments | (2) |
Restructuring reserve at the end of the period | 28 |
Employee severance | Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 45 |
Charges | 1 |
Cash Payments | (12) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 33 |
Employee severance | Pre-Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 24 |
Cash Payments | (4) |
Restructuring reserve at the end of the period | 20 |
Facility and other exit costs | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 1 |
Cash Payments | (1) |
Facility and other exit costs | Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 1 |
Charges | |
Cash Payments | |
Non-Cash Items | |
Currency Translation | |
Restructuring reserve at the end of the period | $ 1 |
Facility and other exit costs | Pre-Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 14 |
Charges | 1 |
Cash Payments | (2) |
Restructuring reserve at the end of the period | 13 |
Property, plant, and equipment | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 1 |
Non-Cash Items | (1) |
Property, plant, and equipment | Pre-Fiscal 2015 Actions | |
Restructuring reserve | |
Charges | 1 |
Non-Cash Items | $ (1) |
Restructuring and Other Charg44
Restructuring and Other Charges, Net (Details 3) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | |
Restructuring Charges | |||
Charges Incurred | $ 35 | $ 25 | |
Accrued and other current liabilities | 69 | $ 60 | |
Other liabilities | 26 | 24 | |
Restructuring reserves | 95 | 84 | |
Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 65 | ||
Charges Incurred | 32 | ||
Remaining Expected Charges | 33 | ||
Restructuring reserves | 28 | ||
Fiscal 2016 Actions | Employee severance | |||
Restructuring Charges | |||
Total Expected Charges | 55 | ||
Charges Incurred | 30 | ||
Remaining Expected Charges | 25 | ||
Restructuring reserves | 28 | ||
Fiscal 2016 Actions | Facility and other exit costs | |||
Restructuring Charges | |||
Total Expected Charges | 6 | ||
Charges Incurred | 1 | ||
Remaining Expected Charges | 5 | ||
Fiscal 2016 Actions | Property, plant, and equipment | |||
Restructuring Charges | |||
Total Expected Charges | 4 | ||
Charges Incurred | 1 | ||
Remaining Expected Charges | 3 | ||
Fiscal 2015 Actions | |||
Restructuring Charges | |||
Charges Incurred | 1 | 25 | |
Restructuring reserves | 34 | 46 | |
Fiscal 2015 Actions | Employee severance | |||
Restructuring Charges | |||
Restructuring reserves | 33 | 45 | |
Fiscal 2015 Actions | Facility and other exit costs | |||
Restructuring Charges | |||
Restructuring reserves | 1 | 1 | |
Pre-Fiscal 2015 Actions | |||
Restructuring Charges | |||
Charges Incurred | 2 | ||
Restructuring reserves | 33 | 38 | |
Pre-Fiscal 2015 Actions | Employee severance | |||
Restructuring Charges | |||
Restructuring reserves | 20 | 24 | |
Pre-Fiscal 2015 Actions | Facility and other exit costs | |||
Restructuring Charges | |||
Restructuring reserves | 13 | $ 14 | |
Transportation Solutions | |||
Restructuring Charges | |||
Charges Incurred | 15 | 1 | |
Transportation Solutions | Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 21 | ||
Charges Incurred | 14 | ||
Remaining Expected Charges | 7 | ||
Industrial Solutions | |||
Restructuring Charges | |||
Charges Incurred | 9 | 2 | |
Industrial Solutions | Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 11 | ||
Charges Incurred | 8 | ||
Remaining Expected Charges | 3 | ||
Communications Solutions | |||
Restructuring Charges | |||
Charges Incurred | 11 | $ 22 | |
Communications Solutions | Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 33 | ||
Charges Incurred | 10 | ||
Remaining Expected Charges | $ 23 |
Discontinued Operations and D45
Discontinued Operations and Divestitures (Details) - USD ($) $ in Millions | Nov. 07, 2015 | Dec. 25, 2015 | Sep. 25, 2015 | Dec. 26, 2014 |
Divestiture of business | ||||
Net proceeds from divestiture of discontinued operations | $ 3,000 | |||
Net sales from discontinued operations | $ 417 | |||
Pre-tax income (loss) from discontinued operations | $ (2) | 51 | ||
Pre-tax gain on sale of discontinued operations | 38 | $ 1,105 | ||
Income tax expense | (7) | (14) | ||
Income from discontinued operations, net of income taxes | 29 | $ 37 | ||
Circuit Protection Devices | ||||
Divestiture of business | ||||
Cash to be received on sale of business | $ 350 | |||
Net assets of disposal group | $ 200 |
Acquisitions (Details)
Acquisitions (Details) - Measurement Specialties - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 26, 2014 | Oct. 09, 2014 | |
Acquisition | ||
Percentage of voting interest acquired | 100.00% | |
Pro forma financial information | ||
Net sales | $ 3,068 | |
Net income | $ 493 | |
Diluted earnings per common share | $ 1.19 | |
Acquisition costs | $ 16 | |
Share-based compensation expense | 15 | |
Fair value adjustment to acquisition-date inventories | 11 | |
Adjustments to income tax expense based on changes in our global tax position | 8 | |
Fair value adjustments related to acquired customer order backlog | 5 | |
Interest expense based on changes in capital structure | $ (1) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 25, 2015 | Sep. 25, 2015 |
Inventories | ||
Raw materials | $ 257 | $ 261 |
Work in progress | 635 | 581 |
Finished goods | 808 | 773 |
Inventories | $ 1,700 | $ 1,615 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Sep. 25, 2015 | |
Goodwill: | ||
Goodwill, beginning balance | $ 4,824 | |
Currency translation and other | (173) | |
Goodwill, ending balance | 4,651 | |
Transportation Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 1,863 | |
Currency translation and other | (22) | |
Goodwill, ending balance | 1,841 | |
Accumulated impairment losses | 2,191 | $ 2,191 |
Industrial Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 2,253 | |
Currency translation and other | (27) | |
Goodwill, ending balance | 2,226 | |
Accumulated impairment losses | 669 | 669 |
Communications Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 708 | |
Currency translation and other | (124) | |
Goodwill, ending balance | 584 | |
Accumulated impairment losses | 1,514 | $ 1,626 |
Circuit Protection Devices | Communications Solutions | ||
Goodwill: | ||
Net Goodwill Transferred to Assets Held for Sale | $ 117 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | |
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | $ 2,150 | $ 2,240 | |
Accumulated Amortization | (682) | (685) | |
Net Carrying Amount | 1,468 | 1,555 | |
Finite-lived intangible assets, amortization expense | 34 | $ 42 | |
Aggregate amortization expense on intangible assets | |||
Remainder of fiscal 2016 | 102 | ||
Fiscal 2,017 | 132 | ||
Fiscal 2,018 | 132 | ||
Fiscal 2,019 | 130 | ||
Fiscal 2,020 | 126 | ||
Fiscal 2,021 | 123 | ||
Thereafter | 723 | ||
Intellectual property | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 1,086 | 1,150 | |
Accumulated Amortization | (505) | (524) | |
Net Carrying Amount | 581 | 626 | |
Customer relationships | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 1,028 | 1,053 | |
Accumulated Amortization | (164) | (148) | |
Net Carrying Amount | 864 | 905 | |
Other. | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 36 | 37 | |
Accumulated Amortization | (13) | (13) | |
Net Carrying Amount | $ 23 | $ 24 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Sep. 25, 2015 | |
Debt | ||
Ownership percentage in TEGSA | 100.00% | |
Fair value of debt | $ 4,067 | $ 4,115 |
Five-year credit facility | ||
Debt | ||
Revolving credit line, term | 5 years | |
Maximum borrowing capacity | $ 1,500 | |
Borrowings under the Credit Facility | $ 0 | $ 0 |
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% | |
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% | |
Minimum | Five-year credit facility | ||
Debt | ||
Annual facility fee, basis points (as a percent) | 0.05% | |
Maximum | Five-year credit facility | ||
Debt | ||
Annual facility fee, basis points (as a percent) | 0.125% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Sep. 25, 2015 | |
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 | $ 39 | $ 35 |
Tax Sharing Agreement | ||
Guarantee Obligations: | ||
Guarantee obligations, current carrying value | 17 | $ 17 |
Outstanding Letters of Credit, Letters of Guarantee, and Appeal and Surety Bonds | ||
Guarantee Obligations: | ||
Guarantor obligations, maximum exposure | $ 504 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 08, 2015 | Dec. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | Sep. 30, 2001 |
Loss Contingencies | |||||
Liabilities sharing percent, entity | 31.00% | ||||
Liabilities sharing percent, Tyco International | 27.00% | ||||
Liabilities sharing percent, Covidien | 42.00% | ||||
Income tax benefit associated with settlement of certain U.S. tax matters | $ 189 | ||||
Other nonoperating expense, settlement of certain U.S. tax matters | 83 | ||||
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 | ||||
Additional disallowance related to interest deductions on Tyco International's U.S. income tax returns for intercompany loans subsequent to fiscal 2000 | 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 | ||||
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 | ||||
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 | ||||
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 | ||||
Additional tax deficiency relating to the Final Partnership Administrative Adjustments | 30 | ||||
Net cash payments made (received) related to pre-separation tax matters | 1 | $ 4 | |||
Liabilities related to the audits of Tyco International and our income tax returns | 20 | $ 17 | |||
Environmental matters | |||||
Loss Contingencies | |||||
Loss contingency, range of possible loss, minimum | 16 | ||||
Loss contingency, range of possible loss, maximum | 44 | ||||
Loss contingency, estimate of probable loss | $ 19 | ||||
Com-Net | |||||
Loss Contingencies | |||||
Loss contingency, range of possible loss, maximum | $ 80 | ||||
Loss Contingency, purchase price plus interest and costs | $ 127 |
Financial Instruments (Details)
Financial Instruments (Details) - Net investment hedges - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | |
Financial Instruments | |||
Notional amount of nonderivative instruments | $ 3,853 | $ 3,880 | |
Foreign exchange gains recorded as currency translation | $ 55 | $ 130 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | $ 2 | $ 2 |
Interest cost | 13 | 12 |
Expected return on plan assets | (15) | (17) |
Amortization of net actuarial loss | 10 | 7 |
Net periodic pension benefit cost | 10 | 4 |
Non-U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | 12 | 12 |
Interest cost | 13 | 15 |
Expected return on plan assets | (18) | (19) |
Amortization of net actuarial loss | 9 | 9 |
Amortization of prior service credit | (1) | (1) |
Net periodic pension benefit cost | 15 | $ 16 |
Defined Benefit Plan Contributions | ||
Defined Benefit Plan, Contributions by Employer | $ 27 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | |
Income Taxes | |||
Income tax (expense) benefit | $ (58) | $ 109 | |
Income tax benefit recognized in connection with anticipated sale of CPD | 28 | ||
Income tax benefit associated with settlement of certain U.S. tax matters | 189 | ||
Income tax benefit related to the impacts of certain Non-U.S. tax law changes | $ 22 | ||
Income tax penalties and interest accrued | 1,097 | $ 1,076 | |
Income tax provision related to interest and penalties | 21 | ||
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $ 65 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Other Income (Expense), Net | ||
Other income (expense), net | $ 8 | $ (70) |
Other nonoperating expense, settlement of certain U.S. tax matters | $ 83 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Earnings Per Share | ||
Basic (in shares) | 385 | 407 |
Dilutive impact of share-based compensation arrangements (in shares) | 5 | 6 |
Diluted (in shares) | 390 | 413 |
Share options | ||
Antidilutive shares excluded from computation of earnings per share | ||
Antidilutive shares excluded from computation of earnings per share | 2 | 2 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Sep. 25, 2015 | |
Equity | |||
Cash dividend paid (in dollars per share) | $ 0.33 | $ 0.29 | |
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $ 124 | $ 260 | |
Number of common shares repurchased | 20 | 2 | |
Amount repurchased | $ 1,318 | $ 141 | |
Amount available for repurchase, at end of period | $ 1,400 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Share Based Compensation Arrangements: | ||
Share-based compensation expenses | $ 22 | $ 23 |
Shares available for issuance | 16 | |
Share Based Compensation Expenses Not Recognized | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 195 | |
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 2 years 2 months 12 days | |
Share options | ||
Share Based Compensation Arrangements: | ||
Share options granted | 1.8 | |
Options granted, weighted-average grant-date fair value (in dollars per share) | $ 14.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Expected share price volatility (as a percent) | 26.00% | |
Risk free interest rate (as a percent) | 2.01% | |
Expected annual dividend per share | $ 1.32 | |
Expected life of options (in years) | 5 years 8 months 12 days | |
Restricted share awards | ||
Share Based Compensation Arrangements: | ||
Shares granted | 0.7 | |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $ 65.95 | |
Performance share awards | ||
Share Based Compensation Arrangements: | ||
Shares granted | 0.3 | |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $ 65.95 |
Segment Data (Details)
Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Segment Data | ||
Net sales | $ 2,833 | $ 3,049 |
Operating income | 398 | 425 |
Transportation Solutions | ||
Segment Data | ||
Net sales | 1,507 | 1,612 |
Operating income | 261 | 295 |
Industrial Solutions | ||
Segment Data | ||
Net sales | 709 | 784 |
Operating income | 66 | 86 |
Communications Solutions | ||
Segment Data | ||
Net sales | 617 | 653 |
Operating income | $ 71 | $ 44 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event. $ in Millions | Jan. 15, 2016USD ($) |
Minimum | |
Subsequent Event. | |
Payment to IRS | $ 475 |
Minimum | TE payment obligation | |
Subsequent Event. | |
Payment to IRS | 147 |
Maximum | |
Subsequent Event. | |
Payment to IRS | 525 |
Maximum | TE payment obligation | |
Subsequent Event. | |
Payment to IRS | $ 163 |
Tyco Electronics Group S.A. (De
Tyco Electronics Group S.A. (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Tyco Electronics Group S.A. | ||
Ownership percentage in TEGSA | 100.00% | |
Statement of Operations Detail: | ||
Net sales | $ 2,833 | $ 3,049 |
Cost of sales | 1,888 | 2,029 |
Gross margin | 945 | 1,020 |
Selling, general, and administrative expenses | 340 | 386 |
Research, development, and engineering expenses | 162 | 160 |
Acquisition and integration costs | 5 | 24 |
Restructuring and other charges, net | 40 | 25 |
Operating income | 398 | 425 |
Interest income | 6 | 5 |
Interest expense | (30) | (34) |
Other income (expense), net | 8 | (70) |
Income from continuing operations before income taxes | 382 | 326 |
Income tax (expense) benefit | (58) | 109 |
Income from continuing operations | 324 | 435 |
Income (loss) from discontinued operations, net of income taxes | 29 | 37 |
Net Income | 353 | 472 |
Other comprehensive loss | (90) | (206) |
Comprehensive income | 263 | 266 |
Consolidating Adjustments | ||
Statement of Operations Detail: | ||
Equity in net income of subsidiaries | (712) | (960) |
Equity in net income of subsidiaries of discontinued operations | (105) | (74) |
Income from continuing operations before income taxes | (817) | (1,034) |
Income from continuing operations | (817) | (1,034) |
Net Income | (817) | (1,034) |
Other comprehensive loss | 176 | 414 |
Comprehensive income | (641) | (620) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses | 36 | 41 |
Operating income | (36) | (41) |
Equity in net income of subsidiaries | 361 | 474 |
Equity in net income of subsidiaries of discontinued operations | 29 | 37 |
Intercompany interest income (expense), net | (1) | 2 |
Income from continuing operations before income taxes | 353 | 472 |
Income from continuing operations | 353 | 472 |
Net Income | 353 | 472 |
Other comprehensive loss | (90) | (206) |
Comprehensive income | 263 | 266 |
TEGSA | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses | (28) | (9) |
Operating income | 28 | 9 |
Interest expense | (30) | (34) |
Equity in net income of subsidiaries | 351 | 486 |
Equity in net income of subsidiaries of discontinued operations | 76 | 37 |
Intercompany interest income (expense), net | 12 | 13 |
Income from continuing operations before income taxes | 437 | 511 |
Income from continuing operations | 437 | 511 |
Income (loss) from discontinued operations, net of income taxes | (47) | |
Net Income | 390 | 511 |
Other comprehensive loss | (90) | (206) |
Comprehensive income | 300 | 305 |
Other Subsidiaries | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Net sales | 2,833 | 3,049 |
Cost of sales | 1,888 | 2,029 |
Gross margin | 945 | 1,020 |
Selling, general, and administrative expenses | 332 | 354 |
Research, development, and engineering expenses | 162 | 160 |
Acquisition and integration costs | 5 | 24 |
Restructuring and other charges, net | 40 | 25 |
Operating income | 406 | 457 |
Interest income | 6 | 5 |
Other income (expense), net | 8 | (70) |
Intercompany interest income (expense), net | (11) | (15) |
Income from continuing operations before income taxes | 409 | 377 |
Income tax (expense) benefit | (58) | 109 |
Income from continuing operations | 351 | 486 |
Income (loss) from discontinued operations, net of income taxes | 76 | 37 |
Net Income | 427 | 523 |
Other comprehensive loss | (86) | (208) |
Comprehensive income | $ 341 | $ 315 |
Tyco Electronics Group S.A. (63
Tyco Electronics Group S.A. (Details 2) - USD ($) $ in Millions | Dec. 25, 2015 | Sep. 25, 2015 | Dec. 26, 2014 | Sep. 26, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 2,223 | $ 3,329 | $ 868 | $ 2,457 |
Accounts receivable, net | 1,878 | 2,120 | ||
Inventories | 1,700 | 1,615 | ||
Prepaid expenses and other current assets | 704 | 476 | ||
Deferred income taxes | 345 | |||
Total current assets | 6,505 | 7,885 | ||
Property, plant, and equipment, net | 2,866 | 2,920 | ||
Goodwill | 4,651 | 4,824 | ||
Intangible assets, net | 1,468 | 1,555 | ||
Deferred income taxes | 2,454 | 2,144 | ||
Receivable from Tyco International plc and Covidien plc | 972 | 964 | ||
Other assets | 307 | 297 | ||
Total Assets | 19,223 | 20,589 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 500 | 498 | ||
Accounts payable | 1,108 | 1,143 | ||
Accrued and other current liabilities | 1,545 | 1,749 | ||
Deferred revenue | 113 | 185 | ||
Total current liabilities | 3,266 | 3,575 | ||
Long-term debt | 3,370 | 3,386 | ||
Long-term pension and postretirement liabilities | 1,307 | 1,327 | ||
Deferred income taxes | 291 | 329 | ||
Income taxes | 1,974 | 1,954 | ||
Other liabilities | 438 | 433 | ||
Total Liabilities | 10,646 | 11,004 | ||
Total Shareholders' Equity | 8,577 | 9,585 | 9,170 | 9,013 |
Total Liabilities and Shareholders' Equity | 19,223 | 20,589 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (1,050) | (1,268) | ||
Total current assets | (1,050) | (1,268) | ||
Investment in subsidiaries | (29,814) | (29,150) | ||
Intercompany loans receivable | (12,049) | (10,460) | ||
Total Assets | (42,913) | (40,878) | ||
Current liabilities: | ||||
Intercompany payables | (1,050) | (1,268) | ||
Total current liabilities | (1,050) | (1,268) | ||
Intercompany loans payable | (12,049) | (10,460) | ||
Total Liabilities | (13,099) | (11,728) | ||
Total Shareholders' Equity | (29,814) | (29,150) | ||
Total Liabilities and Shareholders' Equity | (42,913) | (40,878) | ||
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 22 | 813 | ||
Prepaid expenses and other current assets | 3 | 4 | ||
Total current assets | 25 | 817 | ||
Investment in subsidiaries | 9,819 | 9,505 | ||
Intercompany loans receivable | 22 | 22 | ||
Total Assets | 9,866 | 10,344 | ||
Current liabilities: | ||||
Accounts payable | 2 | 2 | ||
Accrued and other current liabilities | 373 | 442 | ||
Intercompany payables | 910 | 311 | ||
Total current liabilities | 1,285 | 755 | ||
Intercompany loans payable | 4 | 4 | ||
Total Liabilities | 1,289 | 759 | ||
Total Shareholders' Equity | 8,577 | 9,585 | ||
Total Liabilities and Shareholders' Equity | 9,866 | 10,344 | ||
TEGSA | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | |||
Intercompany receivables | 995 | 389 | ||
Prepaid expenses and other current assets | 27 | 4 | ||
Total current assets | 1,022 | 393 | ||
Investment in subsidiaries | 19,995 | 19,645 | ||
Intercompany loans receivable | 2,368 | 2,328 | ||
Other assets | 39 | 27 | ||
Total Assets | 23,424 | 22,393 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 498 | 498 | ||
Accrued and other current liabilities | 83 | 75 | ||
Intercompany payables | 824 | |||
Total current liabilities | 581 | 1,397 | ||
Long-term debt | 3,369 | 3,385 | ||
Intercompany loans payable | 9,655 | 8,106 | ||
Total Liabilities | 13,605 | 12,888 | ||
Total Shareholders' Equity | 9,819 | 9,505 | ||
Total Liabilities and Shareholders' Equity | 23,424 | 22,393 | ||
Other Subsidiaries | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 2,223 | 3,329 | $ 868 | $ 2,456 |
Accounts receivable, net | 1,878 | 2,120 | ||
Inventories | 1,700 | 1,615 | ||
Intercompany receivables | 33 | 66 | ||
Prepaid expenses and other current assets | 674 | 468 | ||
Deferred income taxes | 345 | |||
Total current assets | 6,508 | 7,943 | ||
Property, plant, and equipment, net | 2,866 | 2,920 | ||
Goodwill | 4,651 | 4,824 | ||
Intangible assets, net | 1,468 | 1,555 | ||
Deferred income taxes | 2,454 | 2,144 | ||
Intercompany loans receivable | 9,659 | 8,110 | ||
Receivable from Tyco International plc and Covidien plc | 972 | 964 | ||
Other assets | 268 | 270 | ||
Total Assets | 28,846 | 28,730 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 2 | |||
Accounts payable | 1,106 | 1,141 | ||
Accrued and other current liabilities | 1,089 | 1,232 | ||
Deferred revenue | 113 | 185 | ||
Intercompany payables | 140 | 133 | ||
Total current liabilities | 2,450 | 2,691 | ||
Long-term debt | 1 | 1 | ||
Intercompany loans payable | 2,390 | 2,350 | ||
Long-term pension and postretirement liabilities | 1,307 | 1,327 | ||
Deferred income taxes | 291 | 329 | ||
Income taxes | 1,974 | 1,954 | ||
Other liabilities | 438 | 433 | ||
Total Liabilities | 8,851 | 9,085 | ||
Total Shareholders' Equity | 19,995 | 19,645 | ||
Total Liabilities and Shareholders' Equity | $ 28,846 | $ 28,730 |
Tyco Electronics Group S.A. (64
Tyco Electronics Group S.A. (Details 3) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 25, 2015 | Sep. 25, 2015 | Dec. 26, 2014 | |
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | $ 367 | $ 205 | |
Net cash provided by (used in) discontinued operating activities | (1) | 90 | |
Net cash provided by operating activities | 366 | 295 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (139) | (135) | |
Proceeds from sale of property, plant, and equipment | 1 | 5 | |
Proceeds from divestiture of discontinued operations | $ 3,000 | ||
Acquisition of businesses, net of cash acquired | (1,511) | ||
Other | 17 | (3) | |
Net cash used in continuing investing activities | (121) | (1,644) | |
Net cash used in discontinued investing activities | (7) | ||
Net cash used in investing activities | (121) | (1,651) | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in commercial paper | 270 | ||
Repayment of long-term debt | (223) | ||
Proceeds from exercise of share options | 34 | 16 | |
Repurchase of common shares | (1,249) | (155) | |
Payment of common share dividends to shareholders | (127) | (118) | |
Transfers (to) from discontinued operations | (1) | 83 | |
Other | (4) | 1 | |
Net cash used in continuing financing activities | (1,347) | (126) | |
Net cash used in discontinued financing activities | 1 | (83) | |
Net cash used in financing activities | (1,346) | (209) | |
Effect of currency translation on cash | (5) | (24) | |
Net decrease in cash and cash equivalents | (1,106) | (1,589) | |
Cash and cash equivalents at beginning of period | 3,329 | 2,457 | |
Cash and cash equivalents at end of period | 2,223 | 3,329 | 868 |
Consolidating Adjustments | |||
Cash Flows From Investing Activities: | |||
Change in intercompany loans | (106) | 245 | |
Net cash used in continuing investing activities | 245 | ||
Net cash used in investing activities | (106) | 245 | |
Cash Flows From Financing Activities: | |||
Loan activity with parent | 106 | (245) | |
Net cash used in continuing financing activities | 106 | (245) | |
Net cash used in financing activities | 106 | (245) | |
TE Connectivity Ltd. | Consolidating Reportable entities | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | (48) | (38) | |
Net cash provided by operating activities | (48) | (38) | |
Cash Flows From Financing Activities: | |||
Changes in parent company equity | 22 | 28 | |
Repurchase of common shares | (1,249) | (155) | |
Payment of common share dividends to shareholders | (128) | (120) | |
Loan activity with parent | 1,403 | 285 | |
Net cash used in continuing financing activities | 48 | 38 | |
Net cash used in financing activities | 48 | 38 | |
TEGSA | Consolidating Reportable entities | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | (19) | (26) | |
Net cash provided by operating activities | (19) | (26) | |
Cash Flows From Investing Activities: | |||
Proceeds from divestiture of discontinued operations | (54) | ||
Change in intercompany loans | 106 | (245) | |
Other | (15) | ||
Net cash used in continuing investing activities | (245) | ||
Net cash used in investing activities | 37 | (245) | |
Cash Flows From Financing Activities: | |||
Changes in parent company equity | (17) | ||
Net increase (decrease) in commercial paper | 270 | ||
Other | (1) | ||
Net cash used in continuing financing activities | (18) | 270 | |
Net cash used in financing activities | (18) | 270 | |
Net decrease in cash and cash equivalents | (1) | ||
Cash and cash equivalents at beginning of period | 1 | ||
Other Subsidiaries | Consolidating Reportable entities | |||
Cash Flows From Operating Activities: | |||
Net cash provided by (used in) continuing operating activities | 434 | 269 | |
Net cash provided by (used in) discontinued operating activities | (1) | 90 | |
Net cash provided by operating activities | 433 | 359 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (139) | (135) | |
Proceeds from sale of property, plant, and equipment | 1 | 5 | |
Proceeds from divestiture of discontinued operations | 54 | ||
Acquisition of businesses, net of cash acquired | (1,511) | ||
Other | 32 | (3) | |
Net cash used in continuing investing activities | (1,644) | ||
Net cash used in discontinued investing activities | (7) | ||
Net cash used in investing activities | (52) | (1,651) | |
Cash Flows From Financing Activities: | |||
Changes in parent company equity | (5) | (28) | |
Repayment of long-term debt | (223) | ||
Proceeds from exercise of share options | 34 | 16 | |
Payment of common share dividends to shareholders | 1 | 2 | |
Loan activity with parent | (1,509) | (40) | |
Transfers (to) from discontinued operations | (1) | 83 | |
Other | (3) | 1 | |
Net cash used in continuing financing activities | (1,483) | (189) | |
Net cash used in discontinued financing activities | 1 | (83) | |
Net cash used in financing activities | (1,482) | (272) | |
Effect of currency translation on cash | (5) | (24) | |
Net decrease in cash and cash equivalents | (1,106) | (1,588) | |
Cash and cash equivalents at beginning of period | 3,329 | 2,456 | |
Cash and cash equivalents at end of period | $ 2,223 | $ 3,329 | $ 868 |