Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 24, 2016 | Jul. 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 | Jun. 24, 2016 | |
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 | 355,549,935 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 3,121 | $ 3,118 | $ 8,906 | $ 9,249 |
Cost of sales | 2,099 | 2,070 | 5,977 | 6,130 |
Gross margin | 1,022 | 1,048 | 2,929 | 3,119 |
Selling, general, and administrative expenses | 367 | 393 | 1,074 | 1,170 |
Research, development, and engineering expenses | 161 | 159 | 479 | 479 |
Acquisition and integration costs | 11 | 8 | 19 | 46 |
Restructuring and other charges (credits), net | 31 | 19 | (28) | 82 |
Operating income | 452 | 469 | 1,385 | 1,342 |
Interest income | 2 | 4 | 12 | 13 |
Interest expense | (31) | (33) | (93) | (104) |
Other income (expense), net | (651) | 11 | (631) | (64) |
Income (loss) from continuing operations before income taxes | (228) | 451 | 673 | 1,187 |
Income tax (expense) benefit | 1,019 | (100) | 831 | (85) |
Income from continuing operations | 791 | 351 | 1,504 | 1,102 |
Income (loss) from discontinued operations, net of income taxes | 48 | (42) | 68 | 278 |
Net Income | $ 839 | $ 309 | $ 1,572 | $ 1,380 |
Basic earnings per share: | ||||
Income from continuing operations (in dollars per share) | $ 2.22 | $ 0.86 | $ 4.08 | $ 2.71 |
Income (loss) from discontinued operations (in dollars per share) | 0.13 | (0.10) | 0.18 | 0.68 |
Net income (in dollars per share) | 2.35 | 0.76 | 4.26 | 3.39 |
Diluted earnings per share: | ||||
Income from continuing operations (in dollars per share) | 2.19 | 0.85 | 4.03 | 2.67 |
Income (loss) from discontinued operations (in dollars per share) | 0.13 | (0.10) | 0.18 | 0.67 |
Net income (in dollars per share) | 2.32 | 0.75 | 4.21 | 3.34 |
Dividends paid per common share | $ 0.37 | $ 0.33 | $ 1.03 | $ 0.91 |
Weighted-average number of shares outstanding: | ||||
Basic (in shares) | 357 | 406 | 369 | 407 |
Diluted (in shares) | 361 | 412 | 373 | 413 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net Income | $ 839 | $ 309 | $ 1,572 | $ 1,380 |
Other comprehensive income (loss): | ||||
Currency translation | 8 | 37 | (84) | (388) |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 12 | 10 | 26 | 29 |
Gains (losses) on cash flow hedges, net of income taxes | 54 | (4) | 56 | 3 |
Other comprehensive income (loss) | 74 | 43 | (2) | (356) |
Comprehensive income | $ 913 | $ 352 | $ 1,570 | $ 1,024 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 24, 2016 | Sep. 25, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 694 | $ 3,329 |
Accounts receivable, net of allowance for doubtful accounts of $16 and $18, respectively | 2,158 | 2,120 |
Inventories | 1,610 | 1,615 |
Prepaid expenses and other current assets | 467 | 476 |
Deferred income taxes | 345 | |
Total current assets | 4,929 | 7,885 |
Property, plant, and equipment, net | 2,976 | 2,920 |
Goodwill | 5,251 | 4,824 |
Intangible assets, net | 1,792 | 1,555 |
Deferred income taxes | 2,208 | 2,144 |
Receivable from Tyco International plc and Covidien plc | 11 | 964 |
Other assets | 333 | 297 |
Total Assets | 17,500 | 20,589 |
Current liabilities: | ||
Current maturities of long-term debt | 302 | 498 |
Accounts payable | 1,157 | 1,143 |
Accrued and other current liabilities | 1,692 | 1,749 |
Deferred revenue | 160 | 185 |
Total current liabilities | 3,311 | 3,575 |
Long-term debt | 3,734 | 3,386 |
Long-term pension and postretirement liabilities | 1,334 | 1,327 |
Deferred income taxes | 326 | 329 |
Income taxes | 199 | 1,954 |
Other liabilities | 331 | 433 |
Total Liabilities | 9,235 | 11,004 |
Commitments and contingencies (Note 10) | ||
Shareholders' Equity: | ||
Common shares, CHF 0.57 par value, 382,835,381 shares authorized and issued, and 414,064,381 shares authorized and issued, respectively | 168 | 182 |
Contributed surplus | 1,786 | 4,359 |
Accumulated earnings | 8,245 | 6,673 |
Treasury shares, at cost, 26,432,510 and 20,071,089 shares, respectively | (1,559) | (1,256) |
Accumulated other comprehensive loss | (375) | (373) |
Total Shareholders' Equity | 8,265 | 9,585 |
Total Liabilities and Shareholders' Equity | $ 17,500 | $ 20,589 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Jun. 24, 2016SFr / shares | Jun. 24, 2016USD ($)shares | Sep. 25, 2015SFr / shares | Sep. 25, 2015USD ($)shares |
CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ | $ 16 | $ 18 | ||
Common shares, shares authorized | 382,835,381 | 414,064,381 | ||
Common shares, shares issued | 382,835,381 | 414,064,381 | ||
Common shares, par value (in currency per share) | SFr / shares | SFr 0.57 | SFr 0.57 | ||
Treasury shares | 26,432,510 | 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 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 | 1,380 | 1,380 | 1,380 | |||||
Other comprehensive loss | (356) | (356) | (356) | |||||
Share-based compensation expense | 71 | 71 | 71 | |||||
Dividends approved | (534) | (534) | (534) | |||||
Exercise of share options | $ 97 | 97 | 97 | |||||
Exercise of share options (in shares) | 3 | |||||||
Restricted share award vestings and other activity | $ 127 | (127) | ||||||
Restricted share award vestings and other activity (in shares) | 1 | |||||||
Repurchase of common shares | $ (536) | (536) | $ (536) | |||||
Repurchase of common shares (in shares) | (8) | (8) | ||||||
Cancellation of treasury shares | $ (2) | $ 305 | (303) | |||||
Cancellation of treasury shares (in shares) | (5) | 5 | ||||||
Balance at Jun. 26, 2015 | $ 182 | $ (651) | 4,338 | 5,633 | (373) | 9,129 | $ 6 | $ 9,135 |
Balance (in shares) at Jun. 26, 2015 | 414 | (10) | ||||||
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 | 1,572 | 1,572 | 1,572 | |||||
Other comprehensive loss | (2) | (2) | (2) | |||||
Share-based compensation expense | 67 | 67 | 67 | |||||
Dividends approved | (514) | (514) | (514) | |||||
Exercise of share options | $ 77 | 77 | 77 | |||||
Exercise of share options (in shares) | 2 | |||||||
Restricted share award vestings and other activity | $ 128 | (134) | (6) | (6) | ||||
Restricted share award vestings and other activity (in shares) | 2 | |||||||
Repurchase of common shares | $ (2,514) | (2,514) | $ (2,514) | |||||
Repurchase of common shares (in shares) | (41) | (41) | ||||||
Cancellation of treasury shares | $ (14) | $ 2,006 | (1,992) | |||||
Cancellation of treasury shares (in shares) | (31) | 31 | ||||||
Balance at Jun. 24, 2016 | $ 168 | $ (1,559) | $ 1,786 | $ 8,245 | $ (375) | $ 8,265 | $ 8,265 | |
Balance (in shares) at Jun. 24, 2016 | 383 | (26) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Jun. 24, 2016 | Jun. 26, 2015 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 1,572 | $ 1,380 |
Income from discontinued operations, net of income taxes | (68) | (278) |
Income from continuing operations | 1,504 | 1,102 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 438 | 455 |
Non-cash restructuring charges | 13 | 15 |
Deferred income taxes | 162 | (106) |
Provision for losses on accounts receivable and inventories | 27 | 35 |
Tax sharing expense | 632 | 62 |
Share-based compensation expense | 66 | 65 |
(Gain) loss on divestiture | (143) | |
Other | 71 | 59 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | 15 | (125) |
Inventories | (2) | (218) |
Prepaid expenses and other current assets | 302 | 35 |
Accounts payable | (29) | (29) |
Accrued and other current liabilities | (68) | (206) |
Deferred revenue | (22) | 4 |
Income taxes | (1,735) | (90) |
Other | 6 | 21 |
Net cash provided by continuing operating activities | 1,237 | 1,079 |
Net cash provided by discontinued operating activities | 1 | 210 |
Net cash provided by operating activities | 1,238 | 1,289 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (420) | (425) |
Proceeds from sale of property, plant, and equipment | 3 | 10 |
Acquisition of businesses, net of cash acquired | (994) | (1,726) |
Proceeds from divestiture of business, net of cash retained by sold business | 326 | |
Other | 28 | (2) |
Net cash used in continuing investing activities | (1,057) | (2,143) |
Net cash used in discontinued investing activities | (22) | |
Net cash used in investing activities | (1,057) | (2,165) |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | 300 | (197) |
Proceeds from issuance of long-term debt | 350 | 617 |
Repayment of long-term debt | (500) | (473) |
Proceeds from exercise of share options | 77 | 97 |
Repurchase of common shares | (2,657) | (511) |
Payment of common share dividends to shareholders | (377) | (370) |
Transfers from discontinued operations | 1 | 188 |
Other | (5) | (2) |
Net cash used in continuing financing activities | (2,811) | (651) |
Net cash used in discontinued financing activities | (1) | (188) |
Net cash used in financing activities | (2,812) | (839) |
Effect of currency translation on cash | (4) | (41) |
Net decrease in cash and cash equivalents | (2,635) | (1,756) |
Cash and cash equivalents at beginning of period | 3,329 | 2,457 |
Cash and cash equivalents at end of period | $ 694 | $ 701 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 24, 2016 | |
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 | 9 Months Ended |
Jun. 24, 2016 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Issued Accounting Pronouncement In March 2016, the Financial Accounting Standards Board ("FASB") issued an update to Accounting Standards Codification ("ASC") 718, Compensation—Stock Compensation , to simplify various aspects of accounting for share-based payments to employees. This update is effective for us in the first quarter of fiscal 2018. We are currently assessing the impact that adoption will have on our Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASC 842, Leases , requiring lessees to recognize a lease liability and a right-of-use asset for most leases. This guidance is effective for us in the first quarter of fiscal 2020. We will adopt the new standard using a modified retrospective transition approach which requires application of the new guidance for all periods presented. We are currently assessing the impact that adoption will have on our financial position. Recently Adopted Accounting Pronouncements 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. In April 2015, the FASB issued an update to 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. |
Restructuring and Other Charges
Restructuring and Other Charges (Credits), Net | 9 Months Ended |
Jun. 24, 2016 | |
Restructuring and Other Charges (Credits), Net | |
Restructuring and Other Charges (Credits), Net | 3. Restructuring and Other Charges (Credits), Net Net restructuring and other charges (credits) consisted of the following: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Restructuring charges, net $ $ $ $ (Gain) loss on divestiture — ) — Other charges, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring Charges, Net Net restructuring charges by segment were as follows: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves during the nine months ended June 24, 2016 is summarized as follows: Balance at September 25, 2015 Charges Changes in Estimates Cash Payments Non-Cash Items and Other Balance at June 24, 2016 (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 — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2016 Actions During fiscal 2016, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures in the Communications Solutions segment. In connection with this program, during the nine months ended June 24, 2016, we recorded restructuring charges of $87 million. We expect to complete all restructuring actions commenced in the nine months ended June 24, 2016 by the end of fiscal 2019 and to incur total charges of approximately $124 million with remaining charges related primarily to employee severance. The following table summarizes expected, incurred, and remaining charges for the fiscal 2016 program by segment: Total Expected Charges Charges Incurred For the Nine Months Ended June 24, 2016 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 nine months ended June 24, 2016 and June 26, 2015, we recorded restructuring charges of $2 million and $62 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 nine months ended June 24, 2016 and June 26, 2015, we recorded restructuring credits of $3 million and charges of $3 million, respectively, 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: June 24, 2016 September 25, 2015 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain on Divestiture During the second quarter of fiscal 2016, we sold our Circuit Protection Devices ("CPD") business for net cash proceeds of $326 million, subject to working capital adjustments. We recognized a pre-tax gain of $143 million on the transaction during the nine months ended June 24, 2016. The CPD business, which did not meet the discontinued operation reporting criteria, was reported in our Communications Solutions segment. Other Charges, Net During the nine months ended June 24, 2016 and June 26, 2015, we incurred costs of $14 million and $17 million, respectively, associated with the divestiture of certain businesses. Also, during the nine months ended June 24, 2016, we incurred charges of $15 million related to the write-off of certain investments. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 24, 2016 | |
Discontinued Operations | |
Discontinued Operations | 4. Discontinued Operations The following table presents certain components of income (loss) from discontinued operations, net of income taxes: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (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) benefit ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations, net of income taxes $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $1.1 billion on the transaction. During the nine months ended June 24, 2016, we recognized an additional pre-tax gain of $21 million on the divestiture, related primarily to pension and net working capital adjustments. The income tax benefit from discontinued operations for the nine months ended June 26, 2015 primarily reflects an income tax benefit related to the recognition of certain deferred tax assets that were expected to be realized upon the sale of the BNS business, partially offset by income tax expense related to the impacts of legal entity restructurings made in connection with the anticipated sale of the BNS business. Pre-tax income (loss) from discontinued operations for the quarters ended June 24, 2016 and June 26, 2015 included pre-tax credits of $30 million and charges of $126 million, respectively, recorded in connection with the Com-Net case related to our former Wireless Systems business which was sold in fiscal 2009. See Note 10 for additional information regarding the Com-Net case. The BNS and Wireless Systems businesses met the discontinued operations criteria and were reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the BNS and Wireless Systems businesses were included in the former Network Solutions and Wireless Systems segments, respectively. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 24, 2016 | |
Acquisitions | |
Acquisitions | 5. Acquisitions Fiscal 2016 Acquisitions During the first nine months of fiscal 2016, we acquired three businesses, including the Creganna Medical group, for a combined cash purchase price of $994 million, net of cash acquired. The acquisitions have been reported in our Industrial Solutions and Transportation Solutions segments from the date of acquisition. We have preliminarily allocated the purchase price of acquired businesses to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. We are in the process of completing the valuation of identifiable intangible assets, fixed assets, and pre-acquisition contingencies; therefore, the fair values set forth below are subject to adjustment upon finalization of the valuations. The amount of these potential adjustments could be significant. We expect to complete the purchase price allocation for fiscal 2016 acquisitions during fiscal 2017. The following table summarizes the preliminary allocation of the purchase price to the fair value of identifiable assets acquired and liabilities assumed for fiscal 2016 acquisitions at the date of acquisition, in accordance with the acquisition method of accounting: (in millions) Cash and cash equivalents $ Other current assets Goodwill Intangible assets Other non-current assets ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Current liabilities Non-current deferred income taxes Other non-current liabilities ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net assets acquired Cash and cash equivalents acquired ) ​ ​ ​ ​ ​ Net cash paid $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair values assigned to intangible assets were preliminarily determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. Both valuation methods rely on management judgment, including expected future cash flows resulting from existing customer relationships, customer attrition rates, contributory effects of other assets utilized in the business, peer group cost of capital and royalty rates, and other factors. The valuation of tangible assets was derived using a combination of the income, market, and cost approaches. Significant judgments used in valuing tangible assets include estimated reproduction or replacement cost, useful lives of assets, estimated selling prices, costs to complete, and reasonable profit. Useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. Acquired intangible assets consisted of the following: Amount Weighted-Average Amortization Period (in millions) (in years) Customer relationships $ Developed technology Trade names and trademarks Customer order backlog ​ ​ ​ ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The acquired intangible assets are being amortized on a straight-line basis over their expected useful lives. Goodwill of $595 million was recognized in fiscal 2016 transactions, representing the excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed. This goodwill is attributable primarily to cost savings and other synergies related to operational efficiencies including the consolidation of manufacturing, marketing, and general and administrative functions. The goodwill has been allocated to the Industrial Solutions and Transportation Solutions segments and is not deductible for tax purposes. However, prior to being acquired by us, one of the fiscal 2016 acquisitions completed certain acquisitions that resulted in goodwill with an estimated value of $15 million that is deductible primarily for U.S. tax purposes, which we will deduct through 2025. For the quarter ended June 24, 2016, the fiscal 2016 acquisitions contributed net sales of $73 million and an operating loss of $2 million to our Condensed Consolidated Statement of Operations. The operating loss included $7 million of acquisition costs, $5 million associated with the amortization of acquisition-related fair value adjustments related to acquired inventories and customer order backlog, and $1 million of integration costs. From the respective dates of acquisition through June 24, 2016, the fiscal 2016 acquisitions contributed net sales of $73 million and an operating loss of $3 million to our Condensed Consolidated Statement of Operations. The operating loss included $8 million of acquisition costs, $5 million associated with the amortization of acquisition-related fair value adjustments related to acquired inventories and customer order backlog, and $1 million of integration costs. Fiscal 2015 Acquisitions On October 9, 2014, we acquired 100% of the outstanding shares of Measurement Specialties, Inc. ("Measurement Specialties"), a leading global designer and manufacturer of sensors and sensor-based systems, for $86.00 in cash per share. The total value paid was approximately $1.7 billion, net of cash acquired, and included $225 million for the repayment of Measurement Specialties' debt and accrued interest. This business has been reported as part of our Transportation Solutions segment from the date of acquisition. During the first nine months of fiscal 2015, we also purchased three additional businesses for $242 million in cash, net of cash acquired. Pro Forma Financial Information The following unaudited pro forma financial information reflects our consolidated results of operations had the fiscal 2016 acquisitions occurred at the beginning of fiscal 2015 and the Measurement Specialties acquisition occurred at the beginning of fiscal 2014: Pro Forma for the Quarters Ended Pro Forma for the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions, except per share data) Net sales $ $ $ $ Net income Diluted earnings per share $ $ $ $ The pro forma financial information for the 2016 acquisitions is based on our preliminary allocation of the purchase price and therefore is subject to adjustment upon finalization of the purchase price allocation. The pro forma adjustments described below are net of income tax expense (benefit) at the statutory rate. Pro forma results for the quarter ended June 24, 2016 were adjusted to exclude $4 million of acquisition costs and $1 million of interest expense based on pro forma changes in our combined capital structure. In addition, pro forma results for the quarter ended June 24, 2016 were adjusted to include $4 million of charges related to the amortization of the fair value of acquired intangible assets and $1 million of charges related to acquired customer order backlog. Pro forma results for the quarter ended June 26, 2015 were adjusted to exclude $5 million of interest expense based on pro forma changes in our combined capital structure and $1 million of income tax expense based on the estimated impact of combining Measurement Specialties and the fiscal 2016 transactions into our global tax position. In addition, pro forma results for the quarter ended June 26, 2015 were adjusted to include $3 million of charges related to the amortization of the fair value of acquired intangible assets and $1 million of charges related to acquired customer order backlog. Pro forma results for the nine months ended June 24, 2016 were adjusted to exclude $15 million of interest expense based on pro forma changes in our combined capital structure, $5 million of acquisition costs, and $3 million of charges related to the fair value adjustment to acquisition date inventories. In addition, pro forma results for the nine months ended June 24, 2016 were adjusted to include $9 million of charges related to the amortization of the fair value of acquired intangible assets and $2 million of charges related to acquired customer order backlog. Pro forma results for the nine months ended June 26, 2015 were adjusted to exclude $24 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, $15 million of interest expense based on pro forma changes in our combined capital structure, $8 million of charges related to the fair value adjustment to acquisition-date inventories, $5 million of charges related to acquired customer order backlog, and $5 million of income tax expense based on the estimated impact of combining Measurement Specialties and the fiscal 2016 transactions into our global tax position. In addition, pro forma results for the nine months ended June 26, 2015 were adjusted to include $11 million of charges related to the amortization of the fair value of acquired intangible assets. Pro forma results do not include any anticipated synergies or other anticipated benefits of these acquisitions. 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 these acquisitions occurred at the beginning of the preceding fiscal years. |
Inventories
Inventories | 9 Months Ended |
Jun. 24, 2016 | |
Inventories. | |
Inventories | 6. I nventories Inventories consisted of the following: June 24, 2016 September 25, 2015 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill
Goodwill | 9 Months Ended |
Jun. 24, 2016 | |
Goodwill | |
Goodwill | 7. Goodwill The changes in the carrying amount of goodwill by segment were as follows: Transportation Solutions Industrial Solutions Communications Solutions Total (in millions) September 25, 2015 (1) $ $ $ $ Acquisitions — Divestiture of business — — ) ) Currency translation ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 24, 2016 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At June 24, 2016 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 June 24, 2016 and September 25, 2015, respectively. During the first nine months of fiscal 2016, we acquired three businesses and recognized goodwill of $595 million which benefited the Industrial Solutions and Transportation Solutions segments. See Note 5 for additional information. During the first nine months of fiscal 2016, net goodwill of $117 million was written-off in connection with the sale of our CPD business. See Note 3 for additional information. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Jun. 24, 2016 | |
Intangible Assets, Net | |
Intangible Assets, Net | 8. Intangible Assets, Net Intangible assets consisted of the following: June 24, 2016 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 $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the first nine months of fiscal 2016, the gross carrying amount of intangible assets increased by $402 million as a result of the acquisition of three businesses. See Note 5 for additional information. Intangible asset amortization expense was $40 million and $37 million for the quarters ended June 24, 2016 and June 26, 2015, respectively, and $108 million and $117 million for the nine months ended June 24, 2016 and June 26, 2015, 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 | 9 Months Ended |
Jun. 24, 2016 | |
Debt | |
Debt | 9. Debt During January 2016, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, issued $350 million aggregate principal amount of 3.700% senior notes due February 15, 2026. The notes are TEGSA's unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur. The notes are fully and unconditionally guaranteed as to payment on an unsecured basis by TE Connectivity Ltd. During January 2016, TEGSA repaid, at maturity, $500 million senior floating rate notes due 2016. TEGSA has a five-year unsecured senior revolving credit facility ("Credit Facility") with total commitments of $1,500 million. The Credit Facility was amended in December 2015 primarily to extend the maturity date from August 2018 to December 2020. TEGSA had no borrowings under the Credit Facility at June 24, 2016 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. As of June 24, 2016, TEGSA had $300 million of commercial paper outstanding at a weighted-average interest rate of 0.70%. TEGSA had no commercial paper outstanding at September 25, 2015. The fair value of our debt, based on indicative valuations, was approximately $4,375 million and $4,115 million at June 24, 2016 and September 25, 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 24, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. 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. 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 represented the $80 million contingent purchase price plus pre-judgment interest. In July 2016, we entered into settlement agreements with the sellers pursuant to which we agreed to pay the sellers an aggregate amount of $96 million settling all matters in dispute. Payment of this amount was made during July 2016. In connection with the settlements, during the quarter ended June 24, 2016, we recorded pre-tax credits of $30 million, representing a reduction in related reserves. This amount is reflected in income (loss) from discontinued operations on the Condensed Consolidated Statement of Operations as the Com-Net case was associated with our former Wireless Systems business which was sold in 2009. Income Tax Matters 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"). Covidien was subsequently acquired and currently operates as a subsidiary of Medtronic plc. Upon separation, we entered into a Tax Sharing Agreement, under which we shared 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 shared 31%, 27%, and 42%, respectively, of U.S. income tax liabilities that arose from adjustments made by tax authorities to our, Tyco International's, and Covidien's U.S. income tax returns. Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. 1997-2000 Audit Years 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 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 were ultimately successful in asserting its claim, it likely would have disallowed an additional $6.6 billion of interest deductions reflected on U.S. income tax returns in years subsequent to fiscal 2000. Tyco International disagreed with the IRS position and filed petitions in the U.S. Tax Court contesting the IRS's proposed adjustments. 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 matter discussed above. The Stipulations were contingent upon the Appeals Division of the IRS applying the same settlement or framework to all intercompany debt issues on appeal for subsequent audit cycles (years 2001 through 2007). During the second quarter of fiscal 2016, we made a pre-payment to the IRS of $443 million, for deficiencies for which we are the primary obligor, to stop the accretion of deficiency interest. Concurrent with remitting this payment, we were reimbursed $305 million by Tyco International and Covidien pursuant to their indemnifications for pre-separation tax matters. In addition, we paid $2 million to Covidien for our share of deficiencies for which Covidien was the primary obligor. As a result, our net cash payment was $140 million during the second quarter of fiscal 2016, representing our share of the total amount payable to the IRS in connection with the disputed debt matter. On May 17, 2016, the Appeals Division of the IRS issued special agreement Forms 870-AD that effectively settled the matters on appeal on the same terms as those set forth in the Stipulations, and on May 31, 2016, the U.S. Tax Court entered orders consistent with the Stipulations and dismissed the petitions as settled. As a result, we have resolved all aspects of the disputed debt matter before the U.S. Tax Court (for the 1997 through 2000 audit cycle) and before the Appeals Division of the IRS for subsequent audit cycles (2001 through 2007). In addition, we expect the terms of the resolution for the disputed debt matter will be consistently applied by the IRS to all of our U.S. income tax returns filed subsequent to fiscal 2007. As a result of these events, in the third quarter of fiscal 2016, we recognized an income tax benefit of $1,135 million, representing a reduction in tax reserves, and other expense of $604 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The U.S. tax loss and credit carryforwards finalized as a result of the settlement of the disputed debt matter were assessed for realizability in the third quarter of fiscal 2016 and included in our valuation allowance analysis. See Note 13 for further information regarding the valuation allowance for deferred tax assets. 2001-2007 Audit Years 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 debt matter which was subsequently resolved during the third quarter of fiscal 2016. As a result of these developments, in the nine months ended June 26, 2015, we recognized an income tax benefit of $202 million, representing a reduction in tax reserves for the matters that were effectively settled, and other expense of $89 million, representing a reduction of associated indemnification receivables, pursuant to the Tax Sharing Agreement with Tyco International and Covidien. 2008-2010 Audit Years In the fourth quarter of 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 debt matter. As discussed above, we expect the terms of the resolution for the disputed debt matter will be consistently applied by the IRS to all of our U.S. income tax returns filed subsequent to fiscal 2007. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of June 24, 2016, we concluded that it was probable that we would incur remedial costs in the range of $16 million to $43 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. Guarantees In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows. At June 24, 2016, we had outstanding letters of credit, letters of guarantee, and surety and appeal bonds of $490 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 $43 million and $35 million at June 24, 2016 and September 25, 2015, respectively. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jun. 24, 2016 | |
Financial Instruments | |
Financial Instruments | 11. Financial Instruments 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 $3,870 million and $3,880 million at June 24, 2016 and September 25, 2015, respectively. We recorded foreign exchange gains of $5 million and foreign exchange losses of $53 million in the quarters ended June 24, 2016 and June 26, 2015, respectively, and foreign exchange gains of $6 million and $359 million in the nine months ended June 24, 2016 and June 26, 2015, respectively. These foreign exchange gains and losses were recorded as currency translation, a component of accumulated other comprehensive loss, offsetting foreign exchange losses and gains attributable to the translation of the net investment. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 24, 2016 | |
Retirement Plans | |
Retirement Plans | 12. Retirement Plans The net periodic pension benefit cost for all U.S. and non-U.S. defined benefit pension plans was as follows: U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Plans Non-U.S. Plans For the Nine Months Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (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 nine months ended June 24, 2016, we contributed $49 million to our non-U.S. pension plans. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 24, 2016 | |
Income Taxes | |
Income Taxes | 13. Income Taxes We recorded an income tax benefit of $1,019 million and income tax expense of $100 million for the quarters ended June 24, 2016 and June 26, 2015, respectively. For the nine months ended June 24, 2016 and June 26, 2015, we recorded an income tax benefit of $831 million and income tax expense of $85 million, respectively. The tax benefit for the quarter and nine months ended June 24, 2016 included a $1,135 million income tax benefit related to the effective settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007, partially offset by a $91 million increase to the valuation allowance for deferred tax assets. Additionally, the tax benefit for the quarter and nine months ended June 24, 2016 included an $83 million net income tax benefit related to tax settlements in certain other tax jurisdictions, partially offset by an income tax charge related to certain legal entity restructurings. See Note 10 for additional information regarding settlements with the IRS. The increase to the valuation allowance for deferred tax assets primarily relates to certain U.S. federal and state tax loss and credit carryforwards. Based on our forecast of future taxable income for certain U.S. tax reporting groups, U.S. tax loss and credit carryforwards finalized as a result of settlement of the disputed debt matter with the IRS, and certain tax planning actions and strategies, we believe it is more likely than not that a portion of our deferred tax assets will not be realized. The tax expense for the nine months ended June 26, 2015 included a $202 million income tax benefit related to the effective settlement of undisputed tax matters for the years 2001 through 2007. The tax expense for the nine months ended June 26, 2015 also included an income tax benefit related to the impacts of certain non-U.S. tax law changes and the associated reduction in the valuation allowance for tax loss carryforwards, partially offset by an income tax charge for the estimated tax impacts of certain intercompany dividends related to the restructuring and anticipated sale of the BNS business. We record accrued interest as well as penalties related to uncertain tax positions as part of income tax expense (benefit). As of June 24, 2016 and September 25, 2015, we had recorded $64 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. The decrease in the accrued interest and penalties from fiscal year end 2015 was due primarily to the effective settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007. During the nine months ended June 24, 2016, we recognized $766 million of income tax benefit 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 $105 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of June 24, 2016. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Jun. 24, 2016 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 14. Other Income (Expense), Net During the quarters ended June 24, 2016 and June 26, 2015, we recorded net other expense of $651 million and net other income of $11 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The net other expense for the quarter ended June 24, 2016 included $604 million related to the effective settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007 and $46 million related to a tax settlement in another jurisdiction. During the nine months ended June 24, 2016 and June 26, 2015, we recorded net other expense of $631 million and $64 million, respectively, primarily pursuant to the Tax Sharing Agreement with Tyco International and Covidien. The net other expense for the nine months ended June 24, 2016 included $604 million related to the effective settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007 and $46 million related to a tax settlement in another jurisdiction. The net other expense for the nine months ended June 26, 2015 included $89 million related to the effective settlement of undisputed tax matters for the years 2001 through 2007. See Note 10 for further information regarding the Tax Sharing Agreement and settlements with the IRS. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 24, 2016 | |
Earnings Per Share | |
Earnings Per Share | 15. Earnings Per Share The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following share options were not included in the computation of diluted earnings per share because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Antidilutive share options — |
Equity
Equity | 9 Months Ended |
Jun. 24, 2016 | |
Equity | |
Equity | 16. Equity Common Shares In March 2016, our shareholders approved our board of directors' authorization to issue additional new shares, subject to certain conditions specified in the articles of association, in aggregate not exceeding 50% of the amount of our authorized shares. The authorization will remain in effect for a period of two years ending on March 2, 2018. Common Shares Held in Treasury In March 2016, our shareholders approved the cancellation of 31 million shares purchased under our share repurchase program during the period from December 27, 2014 to December 10, 2015. The capital reduction by cancellation of these shares was subject to a notice period and filing with the commercial register in Switzerland and became effective in May 2016. Dividends In March 2016, our shareholders approved a dividend payment to shareholders of $1.48 (equivalent to CHF 1.48) per share out of contributed surplus, payable in four equal quarterly installments beginning in the third quarter of fiscal 2016 through the second quarter of fiscal 2017. We paid the first installment of the dividend at a rate of $0.37 per share in the third quarter of fiscal 2016. Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to contributed surplus. At June 24, 2016 and September 25, 2015, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $396 million and $260 million, respectively. Share Repurchase Program In the second quarter of fiscal 2016, our board of directors authorized an increase of $1.0 billion in the share repurchase program. Common shares repurchased under the share repurchase program were as follows: For the Nine Months Ended June 24, 2016 June 26, 2015 (in millions) Number of common shares repurchased Amount repurchased $ $ At June 24, 2016, we had $1.2 billion of availability remaining under our share repurchase authorization. |
Share Plans
Share Plans | 9 Months Ended |
Jun. 24, 2016 | |
Share Plans | |
Share Plans | 17. 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 For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Share-based compensation expense $ $ $ $ As of June 24, 2016, there was $149 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 1.8 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 June 24, 2016, 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 | 9 Months Ended |
Jun. 24, 2016 | |
Segment Data | |
Segment Data | 18. Segment Data Net sales by segment were as follows: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. Operating income by segment was as follows: For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes pre-tax gain of $143 million on the sale of our CPD business during the first nine months of fiscal 2016. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jun. 24, 2016 | |
Subsequent Event: | |
Subsequent Event | 19. Subsequent Event On July 14, 2016, we entered into a share purchase agreement to acquire Intercontec Group, a global designer and manufacturer of high performance industrial connectors, through the purchase of 100% of equity and repayment of certain debt, for an aggregate cash transaction value of €305 million (equivalent to approximately $340 million), subject to a post-closing adjustment. The transaction is expected to close in the fourth quarter of fiscal 2016, pending customary closing conditions and regulatory approvals. This business will be reported as part of our Industrial Solutions segment. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 9 Months Ended |
Jun. 24, 2016 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 20. 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 June 24, 2016 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 (credits), 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 (loss) 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 income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense, net — ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Loss from discontinued operations, net of income taxes — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 24, 2016 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 (credits), 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 (loss) from discontinued operations, net of income taxes (1) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes the internal allocation of gains and losses associated with the divestiture of our BNS business. Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses (1) ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other expense, net — — ) — ) Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include gains of $105 million related to intercompany transactions. These gains are offset by corresponding losses recorded by Other Subsidiaries. Condensed Consolidating Balance Sheet (UNAUDITED) As of June 24, 2016 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 Nine Months Ended June 24, 2016 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities (1) $ ) $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Proceeds from divestiture of business, net of cash retained by sold business — — Change in intercompany loans — ) — — Other (2) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (3) ) — — Net increase in commercial paper — — — Proceeds from issuance of long-term debt — — Repayment of long-term debt — ) — — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) ) — Intercompany distributions (1) — — ) — 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) During the nine months ended June 24, 2016, Other Subsidiaries made distributions to TEGSA in the amount of $179 million. (2) Includes the internal allocation of proceeds of $135 million between TEGSA and Other Subsidiaries associated with the divestiture of our BNS business. (3) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. Condensed Consolidating Statement of Cash Flows (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — Net decrease in commercial paper — ) — — ) Proceeds from issuance of long-term debt — — — Repayment of long-term debt — ) ) — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) — Transfers from discontinued operations — — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase (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 Charg28
Restructuring and Other Charges (Credits), Net (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Restructuring and Other Charges (Credits), Net | |
Schedule of restructuring and other charges (credits) | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Restructuring charges, net $ $ $ $ (Gain) loss on divestiture — ) — Other charges, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net restructuring charges by segment | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of activity in restructuring reserves | Balance at September 25, 2015 Charges Changes in Estimates Cash Payments Non-Cash Items and Other Balance at June 24, 2016 (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 — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring reserves included on Condensed Consolidated Balance Sheets | June 24, 2016 September 25, 2015 (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fiscal 2016 Actions | |
Restructuring and Other Charges, Net | |
Summary of charges by segment | Total Expected Charges Charges Incurred For the Nine Months Ended June 24, 2016 Remaining Expected Charges (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Discontinued Operations | |
Income (loss) from discontinued operations | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (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) benefit ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from discontinued operations, net of income taxes $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Acquisitions | |
Allocation of purchase price to the fair value of identifiable assets acquired and liabilities assumed | (in millions) Cash and cash equivalents $ Other current assets Goodwill Intangible assets Other non-current assets ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Current liabilities Non-current deferred income taxes Other non-current liabilities ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net assets acquired Cash and cash equivalents acquired ) ​ ​ ​ ​ ​ Net cash paid $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquired intangible assets | Amount Weighted-Average Amortization Period (in millions) (in years) Customer relationships $ Developed technology Trade names and trademarks Customer order backlog ​ ​ ​ ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Pro forma financial information | Pro Forma for the Quarters Ended Pro Forma for the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions, except per share data) Net sales $ $ $ $ Net income Diluted earnings per share $ $ $ $ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Inventories. | |
Schedule of inventories | June 24, 2016 September 25, 2015 (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Goodwill | |
Changes in the carrying amount of goodwill by segment | Transportation Solutions Industrial Solutions Communications Solutions Total (in millions) September 25, 2015 (1) $ $ $ $ Acquisitions — Divestiture of business — — ) ) Currency translation ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 24, 2016 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At June 24, 2016 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 June 24, 2016 and September 25, 2015, respectively. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | June 24, 2016 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) | 9 Months Ended |
Jun. 24, 2016 | |
Retirement Plans | |
Net periodic pension benefit cost | U.S. Plans Non-U.S. Plans For the Quarters Ended For the Quarters Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Plans Non-U.S. Plans For the Nine Months Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (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) | 9 Months Ended |
Jun. 24, 2016 | |
Earnings Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of antidilutive securities excluded from computation of earnings per share | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Antidilutive share options — |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Equity | |
Schedule of common shares repurchased | For the Nine Months Ended June 24, 2016 June 26, 2015 (in millions) Number of common shares repurchased Amount repurchased $ $ |
Share Plans (Tables)
Share Plans (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Share Plans | |
Share-based compensation expense | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Share-based compensation expense $ $ $ $ |
Summary of equity award activity | Shares Weighted-Average Grant-Date Fair Value (in millions) Share options $ Restricted share awards Performance share awards |
Weighted-average assumptions | Expected share price volatility % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Segment Data | |
Schedule of net sales by segment | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. |
Schedule of operating income by segment | For the Quarters Ended For the Nine Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes pre-tax gain of $143 million on the sale of our CPD business during the first nine months of fiscal 2016. |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 9 Months Ended |
Jun. 24, 2016 | |
Tyco Electronics Group S.A. | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended June 24, 2016 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 (credits), 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 (loss) 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 income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Quarter Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense, net — ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Loss from discontinued operations, net of income taxes — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 24, 2016 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 (credits), 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 (loss) from discontinued operations, net of income taxes (1) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes the internal allocation of gains and losses associated with the divestiture of our BNS business. Condensed Consolidating Statement of Operations (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses (1) ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other expense, net — — ) — ) Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations, net of income taxes — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include gains of $105 million related to intercompany transactions. These gains are offset by corresponding losses recorded by Other Subsidiaries. |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet (UNAUDITED) As of June 24, 2016 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 Nine Months Ended June 24, 2016 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities (1) $ ) $ $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Proceeds from divestiture of business, net of cash retained by sold business — — Change in intercompany loans — ) — — Other (2) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (3) ) — — Net increase in commercial paper — — — Proceeds from issuance of long-term debt — — Repayment of long-term debt — ) — — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) ) — Intercompany distributions (1) — — ) — 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) During the nine months ended June 24, 2016, Other Subsidiaries made distributions to TEGSA in the amount of $179 million. (2) Includes the internal allocation of proceeds of $135 million between TEGSA and Other Subsidiaries associated with the divestiture of our BNS business. (3) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. Condensed Consolidating Statement of Cash Flows (UNAUDITED) For the Nine Months Ended June 26, 2015 TE Connectivity Ltd. TEGSA Other Subsidiaries Consolidating Adjustments Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Acquisition of businesses, net of cash acquired — — ) — ) Change in intercompany loans — ) — — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — Net decrease in commercial paper — ) — — ) Proceeds from issuance of long-term debt — — — Repayment of long-term debt — ) ) — ) Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) — Transfers from discontinued operations — — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase (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 Charg40
Restructuring and Other Charges (Credits), Net - Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | $ 25 | $ 4 | $ 86 | $ 65 |
(Gain) loss on divestiture | 3 | (143) | ||
Other charges, net | 3 | 15 | 29 | 17 |
Restructuring and other charges (credits), net | 31 | 19 | (28) | 82 |
Transportation Solutions | ||||
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | 20 | 1 | 39 | 3 |
Industrial Solutions | ||||
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | 1 | 2 | 24 | 19 |
Communications Solutions | ||||
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | $ 4 | $ 1 | $ 23 | $ 43 |
Restructuring and Other Charg41
Restructuring and Other Charges (Credits), Net - Reserve (Details) $ in Millions | 9 Months Ended |
Jun. 24, 2016USD ($) | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 84 |
Charges | 91 |
Changes in Estimate | (5) |
Cash Payments | (62) |
Non-Cash Items | (12) |
Restructuring reserve at the end of the period | 96 |
Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 87 |
Cash Payments | (23) |
Non-Cash Items | (13) |
Restructuring reserve at the end of the period | 51 |
Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 46 |
Charges | 3 |
Changes in Estimate | (1) |
Cash Payments | (29) |
Non-Cash Items | 1 |
Restructuring reserve at the end of the period | 20 |
Pre-Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 38 |
Charges | 1 |
Changes in Estimate | (4) |
Cash Payments | (10) |
Restructuring reserve at the end of the period | 25 |
Employee severance | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 70 |
Cash Payments | (19) |
Restructuring reserve at the end of the period | 51 |
Employee severance | Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 45 |
Charges | 3 |
Changes in Estimate | (1) |
Cash Payments | (28) |
Non-Cash Items | 1 |
Restructuring reserve at the end of the period | 20 |
Employee severance | Pre-Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 24 |
Changes in Estimate | (4) |
Cash Payments | (7) |
Restructuring reserve at the end of the period | 13 |
Facility and other exit costs | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 4 |
Cash Payments | (4) |
Facility and other exit costs | Fiscal 2015 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 1 |
Cash Payments | (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 | (3) |
Restructuring reserve at the end of the period | 12 |
Property, plant, and equipment | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 13 |
Non-Cash Items | $ (13) |
Restructuring and Other Charg42
Restructuring and Other Charges (Credits), Net - Actions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 24, 2016 | Mar. 25, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | Sep. 25, 2015 | |
Restructuring Charges | ||||||
Charges Incurred | $ 25 | $ 4 | $ 86 | $ 65 | ||
Accrued and other current liabilities | 69 | 69 | $ 60 | |||
Other liabilities | 27 | 27 | 24 | |||
Restructuring reserves | 96 | 96 | 84 | |||
Charges for write-off of certain investments | 15 | |||||
Costs associated with the divestiture of businesses | 14 | 17 | ||||
Gain on Divestiture | ||||||
Net proceeds from divestiture of business | 326 | |||||
Gain on divestiture | (3) | 143 | ||||
Circuit Protection Devices | ||||||
Gain on Divestiture | ||||||
Consideration received on sale of business | $ 326 | |||||
Gain on divestiture | 143 | |||||
Fiscal 2016 Actions | ||||||
Restructuring Charges | ||||||
Total Expected Charges | 124 | 124 | ||||
Charges Incurred | 87 | |||||
Remaining Expected Charges | 37 | 37 | ||||
Restructuring reserves | 51 | 51 | ||||
Fiscal 2016 Actions | Employee severance | ||||||
Restructuring Charges | ||||||
Restructuring reserves | 51 | 51 | ||||
Fiscal 2015 Actions | ||||||
Restructuring Charges | ||||||
Charges Incurred | 2 | 62 | ||||
Restructuring reserves | 20 | 20 | 46 | |||
Fiscal 2015 Actions | Employee severance | ||||||
Restructuring Charges | ||||||
Restructuring reserves | 20 | 20 | 45 | |||
Fiscal 2015 Actions | Facility and other exit costs | ||||||
Restructuring Charges | ||||||
Restructuring reserves | 1 | |||||
Pre-Fiscal 2015 Actions | ||||||
Restructuring Charges | ||||||
Charges Incurred | (3) | 3 | ||||
Restructuring reserves | 25 | 25 | 38 | |||
Pre-Fiscal 2015 Actions | Employee severance | ||||||
Restructuring Charges | ||||||
Restructuring reserves | 13 | 13 | 24 | |||
Pre-Fiscal 2015 Actions | Facility and other exit costs | ||||||
Restructuring Charges | ||||||
Restructuring reserves | 12 | 12 | $ 14 | |||
Transportation Solutions | ||||||
Restructuring Charges | ||||||
Charges Incurred | 20 | 1 | 39 | 3 | ||
Transportation Solutions | Fiscal 2016 Actions | ||||||
Restructuring Charges | ||||||
Total Expected Charges | 45 | 45 | ||||
Charges Incurred | 38 | |||||
Remaining Expected Charges | 7 | 7 | ||||
Industrial Solutions | ||||||
Restructuring Charges | ||||||
Charges Incurred | 1 | 2 | 24 | 19 | ||
Industrial Solutions | Fiscal 2016 Actions | ||||||
Restructuring Charges | ||||||
Total Expected Charges | 27 | 27 | ||||
Charges Incurred | 24 | |||||
Remaining Expected Charges | 3 | 3 | ||||
Communications Solutions | ||||||
Restructuring Charges | ||||||
Charges Incurred | 4 | $ 1 | 23 | $ 43 | ||
Communications Solutions | Fiscal 2016 Actions | ||||||
Restructuring Charges | ||||||
Total Expected Charges | 52 | 52 | ||||
Charges Incurred | 25 | |||||
Remaining Expected Charges | $ 27 | $ 27 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 24, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Divestiture of business | |||||
Net sales from discontinued operations | $ 471 | $ 1,313 | |||
Pre-tax income (loss) from discontinued operations | $ 32 | (37) | $ 30 | 69 | |
Pre-tax gain on sale of discontinued operations | 1 | $ 1,100 | 21 | ||
Income tax (expense) benefit | 15 | (5) | 17 | 209 | |
Income (loss) from discontinued operations, net of income taxes | 48 | (42) | $ 68 | $ 278 | |
Net proceeds from divestiture of discontinued operations | $ 3,000 | ||||
Com-Net | |||||
Divestiture of business | |||||
Loss Contingency Accrual, Provision | $ (30) | $ 126 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired (Details) $ / shares in Units, $ in Millions | Oct. 09, 2014USD ($)$ / shares | Jun. 24, 2016USD ($)$ / shares | Jun. 26, 2015USD ($)$ / shares | Jun. 24, 2016USD ($)item$ / shares | Jun. 26, 2015USD ($)item$ / shares | Sep. 25, 2015USD ($) |
Acquisitions | ||||||
Number of Businesses Acquired | item | 3 | |||||
Aquisition of businesses, net of cash acquired | $ 994 | $ 1,726 | ||||
Pro forma financial information | ||||||
Net sales | $ 3,128 | $ 3,191 | 9,065 | 9,480 | ||
Net income | $ 839 | $ 304 | $ 1,584 | $ 1,395 | ||
Diluted earnings per share | $ / shares | $ 2.32 | $ 0.74 | $ 4.25 | $ 3.38 | ||
Allocation of the purchase price | ||||||
Goodwill | $ 5,251 | $ 5,251 | $ 4,824 | |||
Net cash paid | 994 | $ 1,726 | ||||
Net sales | 3,121 | $ 3,118 | 8,906 | 9,249 | ||
Operating income (loss) | 452 | 469 | $ 1,385 | $ 1,342 | ||
Other 2015 Acquisitions | ||||||
Acquisitions | ||||||
Number of Businesses Acquired | item | 3 | |||||
Aquisition of businesses, net of cash acquired | $ 242 | |||||
Allocation of the purchase price | ||||||
Net cash paid | 242 | |||||
2016 Acquisitions | ||||||
Acquisitions | ||||||
Number of Businesses Acquired | item | 3 | |||||
Aquisition of businesses, net of cash acquired | $ 994 | |||||
Pro forma financial information | ||||||
Acquisition costs | 4 | 5 | ||||
Interest expense based on changes in capital structure | 1 | 15 | ||||
Fair value adjustment to acquisition-date inventories | 3 | |||||
Amortization of the fair value of acquired intangible assets | (4) | (9) | ||||
Fair value adjustments related to acquired customer order backlog | (1) | (2) | ||||
Allocation of the purchase price | ||||||
Cash and cash equivalents | 50 | 50 | ||||
Other current assets | 90 | 90 | ||||
Goodwill | 595 | 595 | ||||
Intangible assets | 402 | 402 | ||||
Other non-current assets | 49 | 49 | ||||
Total assets acquired | 1,186 | 1,186 | ||||
Current liabilities | 35 | 35 | ||||
Non-current liabilities | 87 | 87 | ||||
Other non-current liabilities | 20 | 20 | ||||
Total liabilities assumed | 142 | 142 | ||||
Net assets acquired | 1,044 | 1,044 | ||||
Cash and cash equivalents acquired | (50) | (50) | ||||
Net cash paid | 994 | |||||
Goodwill deductible from prior acquisitions | 15 | 15 | ||||
Net sales | 73 | 73 | ||||
Operating income (loss) | (2) | (3) | ||||
Acquisition costs | 7 | 8 | ||||
Amortization of fair value adjustments to inventories and customer order backlog | 5 | 5 | ||||
Integration costs | $ 1 | $ 1 | ||||
Measurement Specialties | ||||||
Acquisitions | ||||||
Percentage of voting interest acquired | 100.00% | |||||
Per share value of the purchase (in dollars per share) | $ / shares | $ 86 | |||||
Total transaction value | $ 1,700 | |||||
Repayment of debt and accrued interest | $ 225 | |||||
Measurement Specialties and 2016 Acquisitions | ||||||
Pro forma financial information | ||||||
Acquisition costs | 24 | |||||
Interest expense based on changes in capital structure | 5 | 15 | ||||
Share-based compensation expense | 15 | |||||
Fair value adjustment to acquisition-date inventories | 8 | |||||
Adjustments to income tax expense based on changes in our global tax position | 1 | 5 | ||||
Amortization of the fair value of acquired intangible assets | (3) | (11) | ||||
Fair value adjustments related to acquired customer order backlog | $ (1) | $ 5 |
Acquisitions - Intangibles (Det
Acquisitions - Intangibles (Details) - 2016 Acquisitions $ in Millions | 9 Months Ended |
Jun. 24, 2016USD ($) | |
Acquired intangible assets | |
Acquired intangible assets, fair value amount | $ 402 |
Acquired intangible assets, Weighted-Average Amortization Period | 16 years |
Customer relationships | |
Acquired intangible assets | |
Acquired intangible assets, fair value amount | $ 180 |
Acquired intangible assets, Weighted-Average Amortization Period | 20 years |
Developed technology | |
Acquired intangible assets | |
Acquired intangible assets, fair value amount | $ 162 |
Acquired intangible assets, Weighted-Average Amortization Period | 11 years |
Trade names and trademarks | |
Acquired intangible assets | |
Acquired intangible assets, fair value amount | $ 45 |
Acquired intangible assets, Weighted-Average Amortization Period | 22 years |
Customer order backlog | |
Acquired intangible assets | |
Acquired intangible assets, fair value amount | $ 15 |
Acquired intangible assets, Weighted-Average Amortization Period | 3 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 24, 2016 | Sep. 25, 2015 |
Inventories | ||
Raw materials | $ 247 | $ 261 |
Work in progress | 610 | 581 |
Finished goods | 753 | 773 |
Inventories | $ 1,610 | $ 1,615 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 9 Months Ended | |
Jun. 24, 2016USD ($)item | Sep. 25, 2015USD ($) | |
Goodwill: | ||
Goodwill, beginning balance | $ 4,824 | |
Acquisitions | 595 | |
Divestiture of business | (117) | |
Currency translation | (51) | |
Goodwill, ending balance | $ 5,251 | |
Number of Businesses Acquired | item | 3 | |
Transportation Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | $ 1,863 | |
Acquisitions | 63 | |
Currency translation | (20) | |
Goodwill, ending balance | 1,906 | |
Accumulated impairment losses | 2,191 | $ 2,191 |
Industrial Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 2,253 | |
Acquisitions | 532 | |
Currency translation | (24) | |
Goodwill, ending balance | 2,761 | |
Accumulated impairment losses | 669 | 669 |
Communications Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 708 | |
Divestiture of business | (117) | |
Currency translation | (7) | |
Goodwill, ending balance | 584 | |
Accumulated impairment losses | 1,514 | $ 1,626 |
Circuit Protection Devices | Communications Solutions | ||
Goodwill: | ||
Divestiture of business | $ (117) |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 24, 2016USD ($) | Jun. 26, 2015USD ($) | Jun. 24, 2016USD ($)item | Jun. 26, 2015USD ($) | Sep. 25, 2015USD ($) | |
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | $ 2,538 | $ 2,538 | $ 2,240 | ||
Accumulated Amortization | (746) | (746) | (685) | ||
Net Carrying Amount | 1,792 | 1,792 | 1,555 | ||
Finite-lived intangible assets, amortization expense | 40 | $ 37 | 108 | $ 117 | |
Finite-lived intangible assets acquired | $ 402 | ||||
Number of Businesses Acquired | item | 3 | ||||
Aggregate amortization expense on intangible assets | |||||
Remainder of fiscal 2016 | 41 | $ 41 | |||
Fiscal 2,017 | 163 | 163 | |||
Fiscal 2,018 | 163 | 163 | |||
Fiscal 2,019 | 159 | 159 | |||
Fiscal 2,020 | 152 | 152 | |||
Fiscal 2,021 | 149 | 149 | |||
Thereafter | 965 | 965 | |||
Intellectual property | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | 1,292 | 1,292 | 1,150 | ||
Accumulated Amortization | (541) | (541) | (524) | ||
Net Carrying Amount | 751 | 751 | 626 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | 1,212 | 1,212 | 1,053 | ||
Accumulated Amortization | (192) | (192) | (148) | ||
Net Carrying Amount | 1,020 | 1,020 | 905 | ||
Other. | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | 34 | 34 | 37 | ||
Accumulated Amortization | (13) | (13) | (13) | ||
Net Carrying Amount | $ 21 | $ 21 | $ 24 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2016 | Jun. 24, 2016 | Sep. 25, 2015 | |
Debt | |||
Ownership percentage in TEGSA | 100.00% | ||
Current maturities of long-term debt | $ 302 | $ 498 | |
Fair value of debt | $ 4,375 | 4,115 | |
3.700% senior notes due 2026 | |||
Debt | |||
Debt Instrument, Face Amount | $ 350 | ||
Debt instrument, interest rate (as a percent) | 3.70% | ||
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 | LIBOR | |||
Debt | |||
Debt instrument description of variable rate basis | LIBOR plus margin based on debt rating | ||
Five-year credit facility | Bank of America Base Rate | |||
Debt | |||
Debt instrument description of variable rate basis | Bank of America base rate plus margin based on debt rating | ||
Five-year credit facility | Federal funds effective rate | |||
Debt | |||
Debt instrument description of variable rate basis | federal funds effective rate plus margin based on debt rating | ||
Debt instrument basis spread on variable rate (as a percent) | 0.50% | ||
Five-year credit facility | One-Month LIBOR | |||
Debt | |||
Debt instrument description of variable rate basis | one-month LIBOR plus margin based on debt rating | ||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ||
Commercial paper | |||
Debt | |||
Current maturities of long-term debt | $ 300 | $ 0 | |
Weighted-average interest rate | 0.70% | ||
Floating rate senior notes due 2016 | |||
Debt | |||
Repayments of debt | $ 500 | ||
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% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 08, 2015 | Jul. 31, 2016 | Jun. 24, 2016 | Mar. 25, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | Sep. 30, 2001 |
Loss Contingencies | ||||||||
Disallowance related to interest deductions on Tyco International's U.S. income tax returns for intercompany loans originating during the period 1997 through 2000 | $ 2,700 | $ 2,700 | ||||||
Additional disallowance related to interest deductions on Tyco International's U.S. income tax returns for intercompany loans subsequent to fiscal 2000 | 6,600 | $ 6,600 | ||||||
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 | 1,135 | $ 1,135 | $ 202 | |||||
Other nonoperating expense, settlement of certain U.S. tax matters | 604 | 604 | $ 89 | |||||
Pre-payment to IRS for pre-separation tax matters | $ 443 | |||||||
Indemnification reimbursements related to pre-separation tax matters | 305 | |||||||
Indemnification payments related to pre-separation tax matters | 2 | |||||||
Net cash payments made (received) related to pre-separation tax matters | $ 140 | |||||||
Environmental matters | ||||||||
Loss Contingencies | ||||||||
Loss contingency, range of possible loss, minimum | 16 | 16 | ||||||
Loss contingency, range of possible loss, maximum | 43 | 43 | ||||||
Loss contingency, estimate of probable loss | 19 | $ 19 | ||||||
Com-Net | ||||||||
Loss Contingencies | ||||||||
Loss contingency, range of possible loss, maximum | $ 80 | |||||||
Loss Contingency, purchase price plus interest and costs | $ 127 | |||||||
Loss Contingency, Damages Paid, Value | $ 96 | |||||||
Loss Contingency Accrual, Provision | $ (30) | $ 126 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | Jun. 24, 2016 | Sep. 25, 2015 |
Guarantee Obligations: | ||
Accrued warranty claims | $ 43 | $ 35 |
Outstanding Letters of Credit, Letters of Guarantee, and Surety and Appeal Bonds | ||
Guarantee Obligations: | ||
Guarantor obligations, maximum exposure | $ 490 |
Financial Instruments (Details)
Financial Instruments (Details) - Net investment hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | Sep. 25, 2015 | |
Financial Instruments | |||||
Notional amount of nonderivative instruments | $ 3,870 | $ 3,880 | |||
Foreign exchange gains (losses) recorded as currency translation | $ 5 | $ (53) | $ 6 | $ 359 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||||
Service cost | $ 3 | $ 2 | $ 7 | $ 7 |
Interest cost | 12 | 12 | 37 | 36 |
Expected return on plan assets | (15) | (17) | (44) | (51) |
Amortization of net actuarial loss | 10 | 6 | 30 | 19 |
Net periodic pension benefit cost | 10 | 3 | 30 | 11 |
Non-U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||||
Service cost | 11 | 12 | 35 | 37 |
Interest cost | 13 | 15 | 40 | 46 |
Expected return on plan assets | (17) | (19) | (52) | (57) |
Amortization of net actuarial loss | 9 | 9 | 27 | 27 |
Amortization of prior service credit | (1) | (1) | (4) | (4) |
Net periodic pension benefit cost | $ 15 | $ 16 | 46 | $ 49 |
Defined Benefit Plan Contributions | ||||
Defined Benefit Plan, Contributions by Employer | $ 49 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | Sep. 25, 2015 | |
Income Taxes | |||||
Income tax expense (benefit) | $ (1,019) | $ 100 | $ (831) | $ 85 | |
Income tax benefit associated with settlement of certain U.S. tax matters | 1,135 | 1,135 | $ 202 | ||
Net income tax benefit related to tax settlements in certain other jurisdictions | 83 | 83 | |||
Income tax penalties and interest accrued | 64 | 64 | $ 1,076 | ||
Income tax benefit related to interest and penalties | 766 | ||||
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | 105 | 105 | |||
Certain U.S. Deferred Tax Assets | |||||
Income Taxes | |||||
Valuation allowance for certain U.S. tax loss carryforwards and tax credits | $ 91 | $ 91 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Other Income (Expense), Net | ||||
Other income (expense), net | $ (651) | $ 11 | $ (631) | $ (64) |
Other nonoperating expense, settlement of certain U.S. tax matters | 604 | 604 | $ 89 | |
Other nonoperating expense, tax settlement in an other jurisdiction | $ 46 | $ 46 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Earnings Per Share | ||||
Basic (in shares) | 357 | 406 | 369 | 407 |
Dilutive impact of share-based compensation arrangements (in shares) | 4 | 6 | 4 | 6 |
Diluted (in shares) | 361 | 412 | 373 | 413 |
Share options | ||||
Antidilutive shares excluded from computation of earnings per share | ||||
Antidilutive share options | 3 | 3 | 1 |
Equity (Details)
Equity (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
May 31, 2016shares | Mar. 31, 2016itemSFr / shares$ / shares | Mar. 31, 2016item$ / shares | Jun. 24, 2016USD ($)$ / shares | Mar. 25, 2016USD ($) | Jun. 26, 2015$ / shares | Jun. 24, 2016USD ($)$ / sharesshares | Jun. 26, 2015USD ($)$ / sharesshares | Sep. 25, 2015USD ($) | |
Equity | |||||||||
Maximum percentage of additional shares which the board is authorized to issue subject to certain conditions | 50.00% | 50.00% | |||||||
Cancellation of treasury shares (in shares) | shares | 31 | ||||||||
Dividend or cash distribution approved (in currency per share) | (per share) | SFr 1.48 | $ 1.48 | |||||||
Dividends paid per common share | $ / shares | $ 0.37 | $ 0.33 | $ 1.03 | $ 0.91 | |||||
Cash distribution quarterly installment payable (in dollars per share) | $ / shares | SFr 0.37 | $ 0.37 | |||||||
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $ 396 | $ 396 | $ 260 | ||||||
Number of quarterly dividend installments | item | 4 | 4 | |||||||
Share repurchase program, increase in authorized amount | $ 1,000 | ||||||||
Number of common shares repurchased | shares | 41 | 8 | |||||||
Amount repurchased | $ 2,514 | $ 536 | |||||||
Amount available for repurchase, at end of period | $ 1,200 | $ 1,200 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 24, 2016 | Dec. 25, 2015 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Share Based Compensation Arrangements: | |||||
Share-based compensation expense | $ 23 | $ 21 | $ 66 | $ 65 | |
Shares available for issuance | 16 | 16 | |||
Share Based Compensation Expenses Not Recognized | |||||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 149 | $ 149 | |||
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 1 year 9 months 18 days | ||||
Share options | |||||
Share Based Compensation Arrangements: | |||||
Share options | 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: | |||||
Share awards | 0.7 | ||||
Shares granted, weighted-average grant-date fair value (in dollars per share) | $ 65.95 | ||||
Performance share awards | |||||
Share Based Compensation Arrangements: | |||||
Share awards | 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 | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Segment Data | ||||
Net sales | $ 3,121 | $ 3,118 | $ 8,906 | $ 9,249 |
Operating income | 452 | 469 | 1,385 | 1,342 |
Gain on divestiture | (3) | 143 | ||
Circuit Protection Devices | ||||
Segment Data | ||||
Gain on divestiture | 143 | |||
Transportation Solutions | ||||
Segment Data | ||||
Net sales | 1,652 | 1,621 | 4,767 | 4,843 |
Operating income | 297 | 303 | 847 | 921 |
Industrial Solutions | ||||
Segment Data | ||||
Net sales | 849 | 806 | 2,296 | 2,387 |
Operating income | 95 | 98 | 224 | 268 |
Communications Solutions | ||||
Segment Data | ||||
Net sales | 620 | 691 | 1,843 | 2,019 |
Operating income | $ 60 | $ 68 | $ 314 | $ 153 |
Subsequent Event (Detail)
Subsequent Event (Detail) - Subsequent event - Intercontec Group € in Millions, $ in Millions | Jul. 14, 2016EUR (€) | Jul. 14, 2016USD ($) |
Subsequent Event. | ||
Percentage of equity acquired | 100.00% | 100.00% |
Total transaction value | € 305 | $ 340 |
Tyco Electronics Group S.A. - O
Tyco Electronics Group S.A. - Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 24, 2016 | Jun. 26, 2015 | Jun. 24, 2016 | Jun. 26, 2015 | |
Tyco Electronics Group S.A. | ||||
Ownership percentage in TEGSA | 100.00% | 100.00% | ||
Statement of Operations Detail: | ||||
Net sales | $ 3,121 | $ 3,118 | $ 8,906 | $ 9,249 |
Cost of sales | 2,099 | 2,070 | 5,977 | 6,130 |
Gross margin | 1,022 | 1,048 | 2,929 | 3,119 |
Selling, general, and administrative expenses | 367 | 393 | 1,074 | 1,170 |
Research, development, and engineering expenses | 161 | 159 | 479 | 479 |
Acquisition and integration costs | 11 | 8 | 19 | 46 |
Restructuring and other charges (credits), net | 31 | 19 | (28) | 82 |
Operating income | 452 | 469 | 1,385 | 1,342 |
Interest income | 2 | 4 | 12 | 13 |
Interest expense, net | (31) | (33) | (93) | (104) |
Other income (expense), net | (651) | 11 | (631) | (64) |
Income (loss) from continuing operations before income taxes | (228) | 451 | 673 | 1,187 |
Income tax (expense) benefit | 1,019 | (100) | 831 | (85) |
Income from continuing operations | 791 | 351 | 1,504 | 1,102 |
Income (loss) from discontinued operations, net of income taxes | 48 | (42) | 68 | 278 |
Net Income | 839 | 309 | 1,572 | 1,380 |
Other comprehensive loss | 74 | 43 | (2) | (356) |
Comprehensive income | 913 | 352 | 1,570 | 1,024 |
Consolidating Adjustments | ||||
Statement of Operations Detail: | ||||
Equity in net income of subsidiaries | (1,699) | (844) | (3,382) | (2,384) |
Equity in net income (loss) of subsidiaries of discontinued operations | (94) | 84 | (250) | (556) |
Income (loss) from continuing operations before income taxes | (1,793) | (760) | (3,632) | (2,940) |
Income from continuing operations | (1,793) | (760) | (3,632) | (2,940) |
Net Income | (1,793) | (760) | (3,632) | (2,940) |
Other comprehensive loss | (107) | (84) | 26 | 718 |
Comprehensive income | (1,900) | (844) | (3,606) | (2,222) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Statement of Operations Detail: | ||||
Selling, general, and administrative expenses | 50 | 52 | 135 | 130 |
Acquisition and integration costs | 1 | 1 | ||
Restructuring and other charges (credits), net | 2 | 2 | ||
Operating income | (53) | (52) | (138) | (130) |
Equity in net income of subsidiaries | 852 | 403 | 1,658 | 1,228 |
Equity in net income (loss) of subsidiaries of discontinued operations | 47 | (42) | 67 | 278 |
Intercompany interest income (expense), net | (8) | (16) | 4 | |
Income (loss) from continuing operations before income taxes | 838 | 309 | 1,571 | 1,380 |
Income from continuing operations | 838 | 309 | 1,571 | 1,380 |
Income (loss) from discontinued operations, net of income taxes | 1 | 1 | ||
Net Income | 839 | 309 | 1,572 | 1,380 |
Other comprehensive loss | 74 | 43 | (2) | (356) |
Comprehensive income | 913 | 352 | 1,570 | 1,024 |
TEGSA | Consolidating Reportable entities | ||||
Statement of Operations Detail: | ||||
Selling, general, and administrative expenses | (2) | 17 | 35 | (138) |
Restructuring and other charges (credits), net | (1) | (1) | ||
Operating income | 3 | (17) | (34) | 138 |
Interest expense, net | (31) | (34) | (92) | (104) |
Equity in net income of subsidiaries | 847 | 441 | 1,724 | 1,156 |
Equity in net income (loss) of subsidiaries of discontinued operations | 47 | (42) | 183 | 278 |
Intercompany interest income (expense), net | 33 | 13 | 60 | 38 |
Income (loss) from continuing operations before income taxes | 899 | 361 | 1,841 | 1,506 |
Income from continuing operations | 899 | 361 | 1,841 | 1,506 |
Income (loss) from discontinued operations, net of income taxes | (116) | |||
Net Income | 899 | 361 | 1,725 | 1,506 |
Other comprehensive loss | 74 | 43 | (2) | (356) |
Comprehensive income | 973 | 404 | 1,723 | 1,150 |
Intercompany transaction gains (losses) | 105 | |||
Other Subsidiaries | Consolidating Reportable entities | ||||
Statement of Operations Detail: | ||||
Net sales | 3,121 | 3,118 | 8,906 | 9,249 |
Cost of sales | 2,099 | 2,070 | 5,977 | 6,130 |
Gross margin | 1,022 | 1,048 | 2,929 | 3,119 |
Selling, general, and administrative expenses | 319 | 324 | 904 | 1,178 |
Research, development, and engineering expenses | 161 | 159 | 479 | 479 |
Acquisition and integration costs | 10 | 8 | 18 | 46 |
Restructuring and other charges (credits), net | 30 | 19 | (29) | 82 |
Operating income | 502 | 538 | 1,557 | 1,334 |
Interest income | 2 | 4 | 12 | 13 |
Interest expense, net | 1 | (1) | ||
Other income (expense), net | (651) | 11 | (631) | (64) |
Intercompany interest income (expense), net | (25) | (13) | (44) | (42) |
Income (loss) from continuing operations before income taxes | (172) | 541 | 893 | 1,241 |
Income tax (expense) benefit | 1,019 | (100) | 831 | (85) |
Income from continuing operations | 847 | 441 | 1,724 | 1,156 |
Income (loss) from discontinued operations, net of income taxes | 47 | (42) | 183 | 278 |
Net Income | 894 | 399 | 1,907 | 1,434 |
Other comprehensive loss | 33 | 41 | (24) | (362) |
Comprehensive income | $ 927 | $ 440 | $ 1,883 | $ 1,072 |
Tyco Electronics Group S.A. - B
Tyco Electronics Group S.A. - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 24, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | Sep. 26, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 694 | $ 3,329 | $ 701 | $ 2,457 |
Accounts receivable, net | 2,158 | 2,120 | ||
Inventories | 1,610 | 1,615 | ||
Prepaid expenses and other current assets | 467 | 476 | ||
Deferred income taxes | 345 | |||
Total current assets | 4,929 | 7,885 | ||
Property, plant, and equipment, net | 2,976 | 2,920 | ||
Goodwill | 5,251 | 4,824 | ||
Intangible assets, net | 1,792 | 1,555 | ||
Deferred income taxes | 2,208 | 2,144 | ||
Receivable from Tyco International plc and Covidien plc | 11 | 964 | ||
Other assets | 333 | 297 | ||
Total Assets | 17,500 | 20,589 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 302 | 498 | ||
Accounts payable | 1,157 | 1,143 | ||
Accrued and other current liabilities | 1,692 | 1,749 | ||
Deferred revenue | 160 | 185 | ||
Total current liabilities | 3,311 | 3,575 | ||
Long-term debt | 3,734 | 3,386 | ||
Long-term pension and postretirement liabilities | 1,334 | 1,327 | ||
Deferred income taxes | 326 | 329 | ||
Income taxes | 199 | 1,954 | ||
Other liabilities | 331 | 433 | ||
Total Liabilities | 9,235 | 11,004 | ||
Total Shareholders' Equity | 8,265 | 9,585 | 9,135 | 9,013 |
Total Liabilities and Shareholders' Equity | 17,500 | 20,589 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (2,020) | (1,268) | ||
Total current assets | (2,020) | (1,268) | ||
Investment in subsidiaries | (31,926) | (29,150) | ||
Intercompany loans receivable | (15,643) | (10,460) | ||
Total Assets | (49,589) | (40,878) | ||
Current liabilities: | ||||
Intercompany payables | (2,020) | (1,268) | ||
Total current liabilities | (2,020) | (1,268) | ||
Intercompany loans payable | (15,643) | (10,460) | ||
Total Liabilities | (17,663) | (11,728) | ||
Total Shareholders' Equity | (31,926) | (29,150) | ||
Total Liabilities and Shareholders' Equity | (49,589) | (40,878) | ||
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 25 | 813 | ||
Prepaid expenses and other current assets | 4 | 4 | ||
Total current assets | 29 | 817 | ||
Investment in subsidiaries | 10,999 | 9,505 | ||
Intercompany loans receivable | 15 | 22 | ||
Total Assets | 11,043 | 10,344 | ||
Current liabilities: | ||||
Accounts payable | 2 | 2 | ||
Accrued and other current liabilities | 440 | 442 | ||
Intercompany payables | 1,915 | 311 | ||
Total current liabilities | 2,357 | 755 | ||
Intercompany loans payable | 421 | 4 | ||
Total Liabilities | 2,778 | 759 | ||
Total Shareholders' Equity | 8,265 | 9,585 | ||
Total Liabilities and Shareholders' Equity | 11,043 | 10,344 | ||
TEGSA | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 2 | 1 | ||
Intercompany receivables | 1,993 | 389 | ||
Prepaid expenses and other current assets | 16 | 4 | ||
Total current assets | 2,009 | 393 | ||
Investment in subsidiaries | 20,927 | 19,645 | ||
Intercompany loans receivable | 3,855 | 2,328 | ||
Other assets | 59 | 27 | ||
Total Assets | 26,850 | 22,393 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 300 | 498 | ||
Accrued and other current liabilities | 45 | 75 | ||
Intercompany payables | 824 | |||
Total current liabilities | 345 | 1,397 | ||
Long-term debt | 3,733 | 3,385 | ||
Intercompany loans payable | 11,773 | 8,106 | ||
Total Liabilities | 15,851 | 12,888 | ||
Total Shareholders' Equity | 10,999 | 9,505 | ||
Total Liabilities and Shareholders' Equity | 26,850 | 22,393 | ||
Other Subsidiaries | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 694 | 3,329 | $ 699 | $ 2,456 |
Accounts receivable, net | 2,158 | 2,120 | ||
Inventories | 1,610 | 1,615 | ||
Intercompany receivables | 2 | 66 | ||
Prepaid expenses and other current assets | 447 | 468 | ||
Deferred income taxes | 345 | |||
Total current assets | 4,911 | 7,943 | ||
Property, plant, and equipment, net | 2,976 | 2,920 | ||
Goodwill | 5,251 | 4,824 | ||
Intangible assets, net | 1,792 | 1,555 | ||
Deferred income taxes | 2,208 | 2,144 | ||
Intercompany loans receivable | 11,773 | 8,110 | ||
Receivable from Tyco International plc and Covidien plc | 11 | 964 | ||
Other assets | 274 | 270 | ||
Total Assets | 29,196 | 28,730 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 2 | |||
Accounts payable | 1,155 | 1,141 | ||
Accrued and other current liabilities | 1,207 | 1,232 | ||
Deferred revenue | 160 | 185 | ||
Intercompany payables | 105 | 133 | ||
Total current liabilities | 2,629 | 2,691 | ||
Long-term debt | 1 | 1 | ||
Intercompany loans payable | 3,449 | 2,350 | ||
Long-term pension and postretirement liabilities | 1,334 | 1,327 | ||
Deferred income taxes | 326 | 329 | ||
Income taxes | 199 | 1,954 | ||
Other liabilities | 331 | 433 | ||
Total Liabilities | 8,269 | 9,085 | ||
Total Shareholders' Equity | 20,927 | 19,645 | ||
Total Liabilities and Shareholders' Equity | $ 29,196 | $ 28,730 |
Tyco Electronics Group S.A. - C
Tyco Electronics Group S.A. - Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 24, 2016 | Jun. 26, 2015 | |
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | $ 1,237 | $ 1,079 |
Net cash provided by discontinued operating activities | 1 | 210 |
Net cash provided by operating activities | 1,238 | 1,289 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (420) | (425) |
Proceeds from sale of property, plant, and equipment | 3 | 10 |
Acquisition of businesses, net of cash acquired | (994) | (1,726) |
Proceeds from divestiture of business, net of cash retained by sold business | 326 | |
Other | 28 | (2) |
Net cash used in continuing investing activities | (1,057) | (2,143) |
Net cash used in discontinued investing activities | (22) | |
Net cash used in investing activities | (1,057) | (2,165) |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | 300 | (197) |
Proceeds from issuance of long-term debt | 350 | 617 |
Repayment of long-term debt | (500) | (473) |
Proceeds from exercise of share options | 77 | 97 |
Repurchase of common shares | (2,657) | (511) |
Payment of common share dividends to shareholders | (377) | (370) |
Transfers from discontinued operations | 1 | 188 |
Other | (5) | (2) |
Net cash used in continuing financing activities | (2,811) | (651) |
Net cash used in discontinued financing activities | (1) | (188) |
Net cash used in financing activities | (2,812) | (839) |
Effect of currency translation on cash | (4) | (41) |
Net decrease in cash and cash equivalents | (2,635) | (1,756) |
Cash and cash equivalents at beginning of period | 3,329 | 2,457 |
Cash and cash equivalents at end of period | 694 | 701 |
Consolidating Adjustments | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (179) | |
Net cash provided by operating activities | (179) | |
Cash Flows From Investing Activities: | ||
Change in intercompany loans | 470 | 1,617 |
Net cash used in continuing investing activities | 1,617 | |
Net cash used in investing activities | 470 | 1,617 |
Cash Flows From Financing Activities: | ||
Loan activity with parent | (470) | (1,617) |
Intercompany distributions | 179 | |
Net cash used in continuing financing activities | (291) | (1,617) |
Net cash used in financing activities | (291) | (1,617) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (175) | (131) |
Net cash provided by operating activities | (175) | (131) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 380 | 86 |
Repurchase of common shares | (2,657) | (511) |
Payment of common share dividends to shareholders | (381) | (375) |
Loan activity with parent | 2,833 | 931 |
Net cash used in continuing financing activities | 175 | 131 |
Net cash used in financing activities | 175 | 131 |
TEGSA | ||
Cash Flows From Financing Activities: | ||
Intercompany distributions | 179 | |
TEGSA | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 87 | (45) |
Net cash provided by operating activities | 87 | (45) |
Cash Flows From Investing Activities: | ||
Proceeds from divestiture of business, net of cash retained by sold business | 199 | |
Change in intercompany loans | (470) | (1,617) |
Other | (135) | |
Net cash used in continuing investing activities | (1,617) | |
Net cash used in investing activities | (406) | (1,617) |
Internal Allocation of Proceeds from Divestiture of Discontinued Operations | (135) | |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 174 | 1,497 |
Net increase (decrease) in commercial paper | 300 | (197) |
Proceeds from issuance of long-term debt | 349 | 617 |
Repayment of long-term debt | (500) | (250) |
Other | (4) | (4) |
Net cash used in continuing financing activities | 319 | 1,663 |
Net cash used in financing activities | 319 | 1,663 |
Net decrease in cash and cash equivalents | 1 | |
Cash and cash equivalents at beginning of period | 1 | |
Cash and cash equivalents at end of period | 2 | |
Other Subsidiaries | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 1,504 | 1,255 |
Net cash provided by discontinued operating activities | 1 | 210 |
Net cash provided by operating activities | 1,505 | 1,465 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (420) | (425) |
Proceeds from sale of property, plant, and equipment | 3 | 10 |
Acquisition of businesses, net of cash acquired | (994) | (1,726) |
Proceeds from divestiture of business, net of cash retained by sold business | 127 | |
Other | 163 | (2) |
Net cash used in continuing investing activities | (2,143) | |
Net cash used in discontinued investing activities | (22) | |
Net cash used in investing activities | (1,121) | (2,165) |
Internal Allocation of Proceeds from Divestiture of Discontinued Operations | 0 | |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | (554) | (1,583) |
Proceeds from issuance of long-term debt | 1 | |
Repayment of long-term debt | (223) | |
Proceeds from exercise of share options | 77 | 97 |
Payment of common share dividends to shareholders | 4 | 5 |
Loan activity with parent | (2,363) | 686 |
Intercompany distributions | (179) | |
Transfers from discontinued operations | 1 | 188 |
Other | (1) | 2 |
Net cash used in continuing financing activities | (3,014) | (828) |
Net cash used in discontinued financing activities | (1) | (188) |
Net cash used in financing activities | (3,015) | (1,016) |
Effect of currency translation on cash | (4) | (41) |
Net decrease in cash and cash equivalents | (2,635) | (1,757) |
Cash and cash equivalents at beginning of period | 3,329 | 2,456 |
Cash and cash equivalents at end of period | $ 694 | $ 699 |