Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 30, 2016 | Jan. 23, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | TE Connectivity Ltd. | |
Entity Central Index Key | 1,385,157 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-29 | |
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 | 355,292,904 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 3,063 | $ 2,833 |
Cost of sales | 1,998 | 1,888 |
Gross margin | 1,065 | 945 |
Selling, general, and administrative expenses | 372 | 340 |
Research, development, and engineering expenses | 158 | 162 |
Acquisition and integration costs | 2 | 5 |
Restructuring and other charges, net | 47 | 40 |
Operating income | 486 | 398 |
Interest income | 5 | 6 |
Interest expense | (31) | (30) |
Other income, net | 8 | |
Income from continuing operations before income taxes | 460 | 382 |
Income tax expense | (54) | (58) |
Income from continuing operations | 406 | 324 |
Income from discontinued operations, net of income taxes | 3 | 29 |
Net Income | $ 409 | $ 353 |
Basic earnings per share: | ||
Income from continuing operations (in dollars per share) | $ 1.14 | $ 0.84 |
Income from discontinued operations (in dollars per share) | 0.01 | 0.08 |
Net income (in dollars per share) | 1.15 | 0.92 |
Diluted earnings per share: | ||
Income from continuing operations (in dollars per share) | 1.13 | 0.83 |
Income from discontinued operations (in dollars per share) | 0.01 | 0.07 |
Net income (in dollars per share) | 1.14 | 0.91 |
Dividends paid per common share | $ 0.37 | $ 0.33 |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 356 | 385 |
Diluted (in shares) | 359 | 390 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 409 | $ 353 |
Other comprehensive loss: | ||
Currency translation | (185) | (85) |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 13 | 2 |
Gains (losses) on cash flow hedges, net of income taxes | 16 | (7) |
Other comprehensive loss | (156) | (90) |
Comprehensive income | $ 253 | $ 263 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 665 | $ 647 |
Accounts receivable, net of allowance for doubtful accounts of $17 | 2,034 | 2,046 |
Inventories | 1,636 | 1,596 |
Prepaid expenses and other current assets | 474 | 486 |
Total current assets | 4,809 | 4,775 |
Property, plant, and equipment, net | 2,956 | 3,052 |
Goodwill | 5,363 | 5,492 |
Intangible assets, net | 1,800 | 1,879 |
Deferred income taxes | 2,290 | 2,111 |
Other assets | 397 | 299 |
Total Assets | 17,615 | 17,608 |
Current liabilities: | ||
Short-term debt | 1,052 | 331 |
Accounts payable | 1,123 | 1,090 |
Accrued and other current liabilities | 1,189 | 1,437 |
Deferred revenue | 149 | 208 |
Total current liabilities | 3,513 | 3,066 |
Long-term debt | 2,976 | 3,739 |
Long-term pension and postretirement liabilities | 1,474 | 1,502 |
Deferred income taxes | 194 | 207 |
Income taxes | 266 | 247 |
Other liabilities | 355 | 362 |
Total Liabilities | 8,778 | 9,123 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Common shares, CHF 0.57 par value, 382,835,381 shares authorized and issued | 168 | 168 |
Contributed surplus | 1,729 | 1,801 |
Accumulated earnings | 9,256 | 8,682 |
Treasury shares, at cost, 27,334,732 and 27,554,005 shares, respectively | (1,618) | (1,624) |
Accumulated other comprehensive loss | (698) | (542) |
Total Shareholders' Equity | 8,837 | 8,485 |
Total Liabilities and Shareholders' Equity | $ 17,615 | $ 17,608 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Dec. 30, 2016SFr / shares | Dec. 30, 2016USD ($)shares | Sep. 30, 2016SFr / shares | Sep. 30, 2016USD ($)shares |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ | $ 17 | $ 17 | ||
Common shares, par value (in currency per share) | SFr / shares | SFr 0.57 | SFr 0.57 | ||
Common shares, shares authorized | 382,835,381 | 382,835,381 | ||
Common shares, shares issued | 382,835,381 | 382,835,381 | ||
Treasury shares | 27,334,732 | 27,554,005 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Impact of New Accounting Pronouncement, Early AdoptionAccumulated Earnings | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings | Accumulated Other Comprehensive Income Loss | Total |
Balance at Sep. 25, 2015 | $ 182 | $ (1,256) | $ 4,359 | $ 6,673 | $ (373) | $ 9,585 | |
Balance (in shares) at Sep. 25, 2015 | 414 | (20) | |||||
Increase (Decrease) in Equity: | |||||||
Net income | 353 | 353 | |||||
Other comprehensive loss | (90) | (90) | |||||
Share-based compensation expense | 23 | 23 | |||||
Exercise of share options | $ 34 | 34 | |||||
Exercise of share options (in shares) | 1 | ||||||
Restricted share award vestings and other activity | $ 88 | (98) | (10) | ||||
Restricted share award vestings and other activity (in shares) | 1 | ||||||
Repurchase of common shares | $ (1,318) | $ (1,318) | |||||
Repurchase of common shares (in shares) | (20) | (20) | |||||
Balance at Dec. 25, 2015 | $ 182 | $ (2,452) | 4,284 | 7,026 | (463) | $ 8,577 | |
Balance (in shares) at Dec. 25, 2015 | 414 | (38) | |||||
Balance at Sep. 30, 2016 | $ 168 | $ (1,624) | 1,801 | 8,682 | (542) | 8,485 | |
Balance (in shares) at Sep. 30, 2016 | 383 | (28) | |||||
Increase (Decrease) in Equity: | |||||||
Adoption of ASU 2016-09 | $ 165 | 165 | |||||
Net income | 409 | 409 | |||||
Other comprehensive loss | (156) | (156) | |||||
Share-based compensation expense | 24 | 24 | |||||
Exercise of share options | $ 26 | 26 | |||||
Exercise of share options (in shares) | 1 | ||||||
Restricted share award vestings and other activity | $ 82 | (96) | (14) | ||||
Restricted share award vestings and other activity (in shares) | 2 | ||||||
Repurchase of common shares | $ (102) | $ (102) | |||||
Repurchase of common shares (in shares) | (2) | (2) | |||||
Balance at Dec. 30, 2016 | $ 168 | $ (1,618) | $ 1,729 | $ 9,256 | $ (698) | $ 8,837 | |
Balance (in shares) at Dec. 30, 2016 | 383 | (27) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Cash Flows From Operating Activities: | ||
Net income | $ 409 | $ 353 |
Income from discontinued operations, net of income taxes | (3) | (29) |
Income from continuing operations | 406 | 324 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 160 | 146 |
Deferred income taxes | (69) | (58) |
Provision for losses on accounts receivable and inventories | 4 | 21 |
Share-based compensation expense | 24 | 22 |
Other | 4 | 9 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | (30) | 237 |
Inventories | (59) | (99) |
Prepaid expenses and other current assets | 31 | 16 |
Accounts payable | 64 | (31) |
Accrued and other current liabilities | (70) | (130) |
Deferred revenue | (59) | (71) |
Income taxes | 28 | 28 |
Other | (30) | (23) |
Net cash provided by continuing operating activities | 404 | 391 |
Net cash used in discontinued operating activities | (1) | |
Net cash provided by operating activities | 404 | 390 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (130) | (139) |
Proceeds from sale of property, plant, and equipment | 4 | 1 |
Other | (28) | 17 |
Net cash used in investing activities | (154) | (121) |
Cash Flows From Financing Activities: | ||
Net increase in commercial paper | 10 | |
Proceeds from exercise of share options | 25 | 34 |
Repurchase of common shares | (93) | (1,249) |
Payment of common share dividends to shareholders | (132) | (127) |
Other | (19) | (29) |
Net cash used in continuing financing activities | (209) | (1,371) |
Net cash provided by discontinued financing activities | 1 | |
Net cash used in financing activities | (209) | (1,370) |
Effect of currency translation on cash | (23) | (5) |
Net increase (decrease) in cash and cash equivalents | 18 | (1,106) |
Cash and cash equivalents at beginning of period | 647 | 3,329 |
Cash and cash equivalents at end of period | $ 665 | $ 2,223 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Pronouncements | 3 Months Ended |
Dec. 30, 2016 | |
Basis of Presentation and Accounting Pronouncements | |
Basis of Presentation and Accounting Pronouncements | 1. Basis of Presentation and Accounting Pronouncements 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 30, 2016. Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2017 and fiscal 2016 are to our fiscal years ending September 29, 2017 and September 30, 2016, respectively. Recently Adopted Accounting Pronouncement In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2016-09, an update to Accounting Standards Codification 718, Compensation—Stock Compensation, to simplify various aspects of accounting for share-based payments to employees. We elected to early adopt this update in the first quarter of fiscal 2017. The provisions of the update addressing the accounting for excess tax benefits and deficiencies were adopted using a modified retrospective transition approach, with a cumulative-effect adjustment to beginning accumulated earnings and a corresponding increase in deferred tax assets of $165 million. The provision of the update addressing the presentation on the statement of cash flows of employee taxes paid via the withholding of shares was applied retrospectively and did not have a material impact on our Condensed Consolidated Financial Statements. Adoption of other provisions, which were applied prospectively, also did not have a material impact on our Condensed Consolidated Financial Statements. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 3 Months Ended |
Dec. 30, 2016 | |
Restructuring and Other Charges, Net | |
Restructuring and Other Charges, Net | 2. Restructuring and Other Charges, Net Net restructuring and other charges consisted of the following: For the December 30, December 25, (in millions) Restructuring charges, net $ $ Other charges ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net restructuring charges by segment were as follows: For the December 30, December 25, (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves during the quarter ended December 30, 2016 is summarized as follows: Balance at Charges Changes Cash Non-Cash Currency Balance at (in millions) Fiscal 2017 Actions: Employee severance $ — $ $ — $ ) $ — $ — $ Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2016 Actions: Employee severance — ) — ) Facility and other exit costs — — ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2016 Actions: Employee severance — ) ) — ) Facility and other exit costs — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2017 Actions During fiscal 2017, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures primarily impacting the Transportation Solutions and Industrial Solutions segments. In connection with this program, during the quarter ended December 30, 2016, we recorded restructuring charges of $46 million. We expect to complete all restructuring actions commenced during the quarter ended December 30, 2016 by the end of fiscal 2018 and to incur total charges of approximately $52 million. 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 quarters ended December 30, 2016 and December 25, 2015, we recorded restructuring charges of $3 million and $32 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2016 by the end of fiscal 2019 and to incur total charges of approximately $168 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 Cumulative Remaining (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2016 Actions Prior to fiscal 2016, we initiated a restructuring program associated with headcount reductions and product line closures, primarily impacting the Communications Solutions and Industrial Solutions segments. During the quarters ended December 30, 2016 and December 25, 2015, we recorded restructuring credits of $3 million and charges of $3 million, respectively, related to pre-fiscal 2016 actions. We do not expect to incur any additional charges related to pre-fiscal 2016 actions. Total Restructuring Reserves Restructuring reserves included on the Condensed Consolidated Balance Sheets were as follows: December 30, September 30, (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 30, 2016 | |
Discontinued Operations | |
Discontinued Operations | 3. Discontinued Operations The following table presents certain components of income from discontinued operations, net of income taxes: For the December 30, December 25, (in millions) Pre-tax loss from discontinued operations $ — $ ) Pre-tax gain on sale of discontinued operations Income tax expense — ) ​ ​ ​ ​ ​ ​ ​ ​ Income from discontinued operations, net of income taxes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During 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 quarter ended December 25, 2015, we recognized an additional pre-tax gain of $38 million on the divestiture, related primarily to pension and net working capital adjustments. The BNS business met the discontinued operations criteria and was reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the BNS business was included in the former Network Solutions segment. |
Inventories
Inventories | 3 Months Ended |
Dec. 30, 2016 | |
Inventories. | |
Inventories | 4. Inventories Inventories consisted of the following: December 30, September 30, (in millions) Raw materials $ $ Work in progress Finished goods Inventoried costs on long-term contracts ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill
Goodwill | 3 Months Ended |
Dec. 30, 2016 | |
Goodwill | |
Goodwill | 5. Goodwill The changes in the carrying amount of goodwill by segment were as follows: Transportation Industrial Communications Total (in millions) September 30, 2016 (1) $ $ $ $ Currency translation and other (2) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 30, 2016 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At December 30, 2016 and September 30, 2016, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $1,514 million, respectively. (2) Includes a reduction of goodwill of $28 million associated with adjustments made to the purchase price allocation of certain fiscal 2016 acquisitions primarily within the Industrial Solutions segment. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Dec. 30, 2016 | |
Intangible Assets, Net | |
Intangible Assets, Net | 6. Intangible Assets, Net Intangible assets consisted of the following: December 30, 2016 September 30, 2016 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ $ ) $ $ $ ) $ Intellectual property ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible asset amortization expense was $42 million and $34 million for the quarters ended December 30, 2016 and December 25, 2015, respectively. The aggregate amortization expense on intangible assets is expected to be as follows: (in millions) Remainder of fiscal 2017 $ Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 3 Months Ended |
Dec. 30, 2016 | |
Debt | |
Debt | 7. Debt During the quarter ended December 30, 2016, we reclassified $708 million of 6.55% senior notes due 2017 from long-term debt to short-term debt on the Condensed Consolidated Balance Sheet. As of December 30, 2016, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, had $340 million of commercial paper outstanding at a weighted-average interest rate of 0.98%. TEGSA had $330 million of commercial paper outstanding at a weighted-average interest rate of 0.69% at September 30, 2016. The fair value of our debt, based on indicative valuations, was approximately $4,246 million and $4,424 million at December 30, 2016 and September 30, 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 30, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. 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. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of December 30, 2016, we concluded that it was probable that we would incur remedial costs in the range of $17 million to $42 million, and that the best estimate within this range was $20 million. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows. 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 December 30, 2016, we had outstanding letters of credit, letters of guarantee, and surety bonds of $265 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 materially 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 $45 million and $48 million at December 30, 2016 and September 30, 2016, respectively. Tax Sharing Agreement In fiscal 2007, we became an independent, publicly traded company owning 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"). As a result of subsequent transactions, Tyco International and Covidien now operate as part of Johnson Controls International plc and Medtronic plc, respectively. Upon separation, we entered into a Tax Sharing Agreement, under which we share responsibility for certain of our, Tyco International's, and Covidien's income tax liabilities based on a sharing formula for periods prior to and including June 29, 2007. We, Tyco International, and Covidien share 31%, 27%, and 42%, respectively, of income tax liabilities that arise from adjustments made by tax authorities to our, Tyco International's, and Covidien's income tax returns. Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. We have substantially settled all pre-separation U.S. federal income tax matters with the Internal Revenue Service. Certain shared U.S. state and non-U.S. income tax matters remain open. We do not expect these matters will have a material effect on our results of operations, financial position, or cash flows. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Dec. 30, 2016 | |
Financial Instruments | |
Financial Instruments | 9. 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 $3,267 million and $3,480 million at December 30, 2016 and September 30, 2016, respectively. Foreign exchange gains of $222 million and $55 million in the quarters ended December 30, 2016 and December 25, 2015, respectively, were recorded as currency translation, a component of accumulated other comprehensive loss, offsetting foreign exchange losses attributable to the translation of the net investment. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 30, 2016 | |
Retirement Plans | |
Retirement Plans | 10. 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 For the December 30, December 25, December 30, December 25, (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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 30, 2016 | |
Income Taxes | |
Income Taxes | 11. Income Taxes We recorded income tax expense of $54 million and $58 million for the quarters ended December 30, 2016 and December 25, 2015, respectively. The income tax expense for the quarter ended December 30, 2016 included a $30 million income tax benefit associated with the tax impacts of certain intercompany restructurings and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards. The income tax expense for the quarter ended December 25, 2015 included a $28 million income tax benefit related to deferred tax assets recognized in connection with the anticipated sale of the Circuit Protection Devices business, which closed during the second quarter of fiscal 2016. We record accrued interest as well as penalties related to uncertain tax positions as part of income tax expense. As of December 30, 2016 and September 30, 2016, we had $58 million and $54 million, respectively, of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheets, recorded primarily in income taxes. During the quarter ended December 30, 2016, we recognized $3 million of income tax expense 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 $90 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of December 30, 2016. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 30, 2016 | |
Earnings Per Share | |
Earnings Per Share | 12. 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 December 30, December 25, (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ There were two million share options that were not included in the computation of diluted earnings per share for the quarters ended December 30, 2016 and December 25, 2015, because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive . |
Equity
Equity | 3 Months Ended |
Dec. 30, 2016 | |
Equity | |
Equity | 13. Equity Dividends We paid a cash dividend of $0.37 per share to shareholders out of contributed surplus during the quarter ended December 30, 2016. Upon shareholders' approval of the annual dividend payment during fiscal year 2016, we recorded a liability with a corresponding charge to contributed surplus. At December 30, 2016 and September 30, 2016, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $132 million and $263 million, respectively. Share Repurchase Program Common shares repurchased under the share repurchase program were as follows: For the December 30, December 25, (in millions) Number of common shares repurchased Amount repurchased $ $ At December 30, 2016, we had $1.0 billion of availability remaining under our share repurchase authorization . |
Share Plans
Share Plans | 3 Months Ended |
Dec. 30, 2016 | |
Share Plans | |
Share Plans | 14. 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 December 30, December 25, (in millions) Share-based compensation expense $ $ As of December 30, 2016, there was $192 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.5 years. During the quarter ended December 30, 2016, we granted the following share-based awards as part of our annual incentive plan grant: Shares Weighted-Average (in millions) Share options $ Restricted share awards Performance share awards As of December 30, 2016, we had 13 million shares available for issuance under our stock and incentive plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, as amended and restated, was the primary plan. Share-Based Compensation Assumptions The weighted-average assumptions we used in the Black-Scholes-Merton option pricing model for the options granted as part of our annual incentive plan grant were as follows: Expected share price volatility % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data
Segment Data | 3 Months Ended |
Dec. 30, 2016 | |
Segment Data | |
Segment Data | 15. Segment Data Net sales and operating income by segment were as follows: Net Sales (1) Operating Income For the For the December 30, December 25, December 30, December 25, (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 3 Months Ended |
Dec. 30, 2016 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 16. Tyco Electronics Group S.A. Tyco Electronics Group S.A. ("TEGSA"), a Luxembourg company and our 100%-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries. TEGSA is the obligor under our senior notes, commercial paper, and five-year unsecured senior revolving credit facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The following tables present condensed consolidating financial information for TE Connectivity Ltd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting. Condensed Consolidating Statement of Operations (UNAUDITED) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income (loss) from discontinued operations, net of income taxes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income (loss) from discontinued operations, net of income taxes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (UNAUDITED) TE TEGSA Other Consolidating 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 ) — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-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) TE TEGSA Other Consolidating 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 ) — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-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) TE TEGSA Other Consolidating Total (in millions) Cash Flows From 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 — — — Change in intercompany loans — ) — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — Net increase in commercial paper — — — Proceeds from exercise of share options — — — Repurchase of common shares — — ) — ) Payment of common share dividends to shareholders ) — — — ) Loan activity with parent — ) — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) 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) TE TEGSA Other Consolidating Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash used in discontinued operating activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Proceeds from divestiture of discontinued operations (1) — ) — — Change in intercompany loans — — ) — Other — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) ) — — Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) — Other — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash provided by discontinued financing activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net decrease in cash and cash equivalents — — ) — ) Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the internal allocation of proceeds associated with the divestiture of our BNS business. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Restructuring and Other Charg24
Restructuring and Other Charges, Net (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Restructuring and Other Charges, Net | |
Schedule of restructuring and other charges | For the December 30, December 25, (in millions) Restructuring charges, net $ $ Other charges ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net restructuring charges by segment | For the December 30, December 25, (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of activity in restructuring reserves | Balance at Charges Changes Cash Non-Cash Currency Balance at (in millions) Fiscal 2017 Actions: Employee severance $ — $ $ — $ ) $ — $ — $ Property, plant, and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — — ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2016 Actions: Employee severance — ) — ) Facility and other exit costs — — ) — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2016 Actions: Employee severance — ) ) — ) Facility and other exit costs — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring and Other Charges, Net | |
Restructuring reserves included on Condensed Consolidated Balance Sheets | December 30, September 30, (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 Cumulative Remaining (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Discontinued Operations | |
Income from discontinued operations | For the December 30, December 25, (in millions) Pre-tax loss from discontinued operations $ — $ ) Pre-tax gain on sale of discontinued operations Income tax expense — ) ​ ​ ​ ​ ​ ​ ​ ​ Income from discontinued operations, net of income taxes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Inventories. | |
Schedule of inventories | December 30, September 30, (in millions) Raw materials $ $ Work in progress Finished goods Inventoried costs on long-term contracts ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Goodwill | |
Changes in the carrying amount of goodwill by segment | Transportation Industrial Communications Total (in millions) September 30, 2016 (1) $ $ $ $ Currency translation and other (2) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 30, 2016 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At December 30, 2016 and September 30, 2016, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $1,514 million, respectively. (2) Includes a reduction of goodwill of $28 million associated with adjustments made to the purchase price allocation of certain fiscal 2016 acquisitions primarily within the Industrial Solutions segment. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | December 30, 2016 September 30, 2016 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ $ ) $ $ $ ) $ Intellectual property ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of finite-lived intangible assets, future amortization expense | (in millions) Remainder of fiscal 2017 $ Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Retirement Plans | |
Net periodic pension benefit cost | U.S. Plans Non-U.S. Plans For the For the December 30, December 25, December 30, December 25, (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net actuarial loss Amortization of prior service credit — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic pension benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Earnings Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | For the December 30, December 25, (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Equity | |
Schedule of common shares repurchased | For the December 30, December 25, (in millions) Number of common shares repurchased Amount repurchased $ $ |
Share Plans (Tables)
Share Plans (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Share Plans | |
Share-based compensation expense | For the December 30, December 25, (in millions) Share-based compensation expense $ $ |
Summary of share-based award activity | Shares Weighted-Average (in millions) Share options $ Restricted share awards Performance share awards |
Weighted-average assumptions | Expected share price volatility % Risk free interest rate % Expected annual dividend per share $ Expected life of options (in years) |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Segment Data | |
Net sales and operating income by business segment | Net Sales (1) Operating Income For the For the December 30, December 25, December 30, December 25, (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Tyco Electronics Group S.A. | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (UNAUDITED) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income (loss) from discontinued operations, net of income taxes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Operations (UNAUDITED) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income of subsidiaries of discontinued operations — ) — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income (loss) from discontinued operations, net of income taxes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet (UNAUDITED) TE TEGSA Other Consolidating 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 ) — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-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) TE TEGSA Other Consolidating 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 ) — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-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) TE TEGSA Other Consolidating Total (in millions) Cash Flows From 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 — — — Change in intercompany loans — ) — — Other — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used in investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — Net increase in commercial paper — — — Proceeds from exercise of share options — — — Repurchase of common shares — — ) — ) Payment of common share dividends to shareholders ) — — — ) Loan activity with parent — ) — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net increase in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) 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) TE TEGSA Other Consolidating Total (in millions) Cash Flows From Operating Activities: Net cash provided by (used in) continuing operating activities $ ) $ ) $ $ — $ Net cash used in discontinued operating activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Proceeds from sale of property, plant, and equipment — — — Proceeds from divestiture of discontinued operations (1) — ) — — Change in intercompany loans — — ) — Other — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) ) — — Proceeds from exercise of share options — — — Repurchase of common shares ) — — — ) Payment of common share dividends to shareholders ) — — ) Loan activity with parent — ) — Other — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash provided by discontinued financing activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — ) — ) Net decrease in cash and cash equivalents — — ) — ) Cash and cash equivalents at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the internal allocation of proceeds associated with the divestiture of our BNS business. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Basis of Presentation and Acc35
Basis of Presentation and Accounting Pronouncements - Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
New Accounting Pronouncement, Early Adoption | ||
Accumulated earnings | $ 9,256 | $ 8,682 |
Deferred tax assets | 2,290 | $ 2,111 |
Impact of New Accounting Pronouncement, Early Adoption | ||
New Accounting Pronouncement, Early Adoption | ||
Accumulated earnings | 165 | |
Deferred tax assets | $ 165 |
Restructuring and Other Charg36
Restructuring and Other Charges, Net - Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Restructuring and other charges, net: | ||
Restructuring charges, net | $ 46 | $ 35 |
Other charges, net | 1 | 5 |
Restructuring and other charges, net | 47 | 40 |
Transportation Solutions | ||
Restructuring and other charges, net: | ||
Restructuring charges, net | 24 | 15 |
Industrial Solutions | ||
Restructuring and other charges, net: | ||
Restructuring charges, net | 20 | 9 |
Communications Solutions | ||
Restructuring and other charges, net: | ||
Restructuring charges, net | $ 2 | $ 11 |
Restructuring and Other Charg37
Restructuring and Other Charges, Net - Reserve (Details) $ in Millions | 3 Months Ended |
Dec. 30, 2016USD ($) | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 91 |
Charges | 49 |
Changes in Estimate | (3) |
Cash Payments | (22) |
Non-Cash Items | (1) |
Currency Translation | (4) |
Restructuring reserve at the end of the period | 110 |
Fiscal 2017 Actions | |
Restructuring reserve | |
Charges | 46 |
Cash Payments | (4) |
Non-Cash Items | (1) |
Restructuring reserve at the end of the period | 41 |
Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 54 |
Charges | 3 |
Cash Payments | (13) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 42 |
Pre-Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 37 |
Changes in Estimate | (3) |
Cash Payments | (5) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 27 |
Employee severance | Fiscal 2017 Actions | |
Restructuring reserve | |
Charges | 45 |
Cash Payments | (4) |
Restructuring reserve at the end of the period | 41 |
Employee severance | Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 54 |
Charges | 2 |
Cash Payments | (12) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 42 |
Employee severance | Pre-Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 25 |
Changes in Estimate | (3) |
Cash Payments | (3) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 17 |
Facility and other exit costs | Fiscal 2016 Actions | |
Restructuring reserve | |
Charges | 1 |
Cash Payments | (1) |
Facility and other exit costs | Pre-Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 12 |
Cash Payments | (2) |
Restructuring reserve at the end of the period | 10 |
Property, plant, and equipment | Fiscal 2017 Actions | |
Restructuring reserve | |
Charges | 1 |
Non-Cash Items | $ (1) |
Restructuring and Other Charg38
Restructuring and Other Charges, Net - Actions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2016 | Dec. 25, 2015 | Sep. 30, 2016 | |
Restructuring Charges | |||
Charges Incurred | $ 46 | $ 35 | |
Accrued and other current liabilities | 84 | $ 64 | |
Other liabilities | 26 | 27 | |
Restructuring reserves | 110 | 91 | |
Fiscal 2017 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 52 | ||
Charges Incurred | 46 | ||
Restructuring reserves | 41 | ||
Fiscal 2017 Actions | Employee severance | |||
Restructuring Charges | |||
Restructuring reserves | 41 | ||
Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 168 | ||
Charges Incurred | 3 | 32 | |
Remaining Expected Charges | 35 | ||
Restructuring reserves | 42 | 54 | |
Fiscal 2016 Actions | Employee severance | |||
Restructuring Charges | |||
Restructuring reserves | 42 | 54 | |
Fiscal 2016 Actions | Cumulative Charges Incurred | |||
Restructuring Charges | |||
Charges Incurred | 133 | ||
Pre-Fiscal 2016 Actions | |||
Restructuring Charges | |||
Charges Incurred | (3) | 3 | |
Restructuring reserves | 27 | 37 | |
Pre-Fiscal 2016 Actions | Employee severance | |||
Restructuring Charges | |||
Restructuring reserves | 17 | 25 | |
Pre-Fiscal 2016 Actions | Facility and other exit costs | |||
Restructuring Charges | |||
Restructuring reserves | 10 | $ 12 | |
Transportation Solutions | |||
Restructuring Charges | |||
Charges Incurred | 24 | 15 | |
Transportation Solutions | Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 45 | ||
Remaining Expected Charges | 7 | ||
Transportation Solutions | Fiscal 2016 Actions | Cumulative Charges Incurred | |||
Restructuring Charges | |||
Charges Incurred | 38 | ||
Industrial Solutions | |||
Restructuring Charges | |||
Charges Incurred | 20 | 9 | |
Industrial Solutions | Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 30 | ||
Remaining Expected Charges | 2 | ||
Industrial Solutions | Fiscal 2016 Actions | Cumulative Charges Incurred | |||
Restructuring Charges | |||
Charges Incurred | 28 | ||
Communications Solutions | |||
Restructuring Charges | |||
Charges Incurred | 2 | $ 11 | |
Communications Solutions | Fiscal 2016 Actions | |||
Restructuring Charges | |||
Total Expected Charges | 93 | ||
Remaining Expected Charges | 26 | ||
Communications Solutions | Fiscal 2016 Actions | Cumulative Charges Incurred | |||
Restructuring Charges | |||
Charges Incurred | $ 67 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | Sep. 25, 2015 | |
Discontinued Operations | |||
Pre tax loss from discontinued operations | $ (2) | ||
Pre-tax gain on sale of discontinued operations | $ 3 | 38 | $ 1,100 |
Income tax expense | (7) | ||
Income from discontinued operations, net of income taxes | $ 3 | $ 29 | |
Net proceeds from divestiture of discontinued operations | $ 3,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Inventories | ||
Raw materials | $ 260 | $ 241 |
Work in progress | 498 | 504 |
Finished goods | 723 | 669 |
Inventoried costs on long-term contracts | 155 | 182 |
Inventories | $ 1,636 | $ 1,596 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Sep. 30, 2016 | |
Goodwill: | ||
Goodwill, beginning balance | $ 5,492 | |
Currency translation and other | (129) | |
Goodwill, ending balance | 5,363 | |
Transportation Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 1,903 | |
Currency translation and other | (31) | |
Goodwill, ending balance | 1,872 | |
Accumulated impairment losses | 2,191 | $ 2,191 |
Industrial Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 3,005 | |
Currency translation and other | (89) | |
Goodwill, ending balance | 2,916 | |
Accumulated impairment losses | 669 | 669 |
Goodwill adjustments for purchase price of acquisitions | (28) | |
Communications Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 584 | |
Currency translation and other | (9) | |
Goodwill, ending balance | 575 | |
Accumulated impairment losses | $ 1,514 | $ 1,514 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2016 | Dec. 25, 2015 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | $ 2,614 | $ 2,668 | |
Accumulated Amortization | (814) | (789) | |
Net Carrying Amount | 1,800 | 1,879 | |
Finite-lived intangible assets, amortization expense | 42 | $ 34 | |
Aggregate amortization expense on intangible assets | |||
Remainder of fiscal 2017 | 125 | ||
Fiscal 2,018 | 167 | ||
Fiscal 2,019 | 165 | ||
Fiscal 2,020 | 157 | ||
Fiscal 2,021 | 154 | ||
Fiscal 2,022 | 153 | ||
Thereafter | 879 | ||
Customer relationships | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 1,301 | 1,332 | |
Accumulated Amortization | (229) | (212) | |
Net Carrying Amount | 1,072 | 1,120 | |
Intellectual property | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 1,278 | 1,300 | |
Accumulated Amortization | (571) | (563) | |
Net Carrying Amount | 707 | 737 | |
Other | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 35 | 36 | |
Accumulated Amortization | (14) | (14) | |
Net Carrying Amount | $ 21 | $ 22 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Debt | ||
Long-term debt | $ 2,976 | $ 3,739 |
Short-term debt | $ 1,052 | 331 |
Ownership percentage in TEGSA | 100.00% | |
Fair value of debt | $ 4,246 | 4,424 |
Commercial paper | ||
Debt | ||
Total principal debt | $ 340 | $ 330 |
Weighted-average interest rate | 0.98% | 0.69% |
6.55% senior notes due 2017 | Reclassified | ||
Debt | ||
Long-term debt | $ (708) | |
Short-term debt | $ 708 | |
Debt instrument, interest rate (as a percent) | 6.55% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Dec. 30, 2016USD ($) | |
Loss Contingencies | |
Liabilities sharing percent, entity | 31.00% |
Liabilities sharing percent, Tyco International | 27.00% |
Liabilities sharing percent, Covidien | 42.00% |
Environmental matters | |
Loss Contingencies | |
Loss contingency, estimate of probable loss | $ 20 |
Minimum | Environmental matters | |
Loss Contingencies | |
Loss contingency, estimate of probable loss | 17 |
Maximum | Environmental matters | |
Loss Contingencies | |
Loss contingency, estimate of probable loss | $ 42 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Guarantee Obligations: | ||
Accrued warranty claims | $ 45 | $ 48 |
Outstanding Letters of Credit, Letters of Guarantee, and Surety Bonds | ||
Guarantee Obligations: | ||
Guarantor obligations, maximum exposure | $ 265 |
Financial Instruments (Details)
Financial Instruments (Details) - Net investment hedges - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | Sep. 30, 2016 | |
Financial Instruments | |||
Notional amount of nonderivative instruments | $ 3,267 | $ 3,480 | |
Foreign exchange gains recorded as currency translation | $ 222 | $ 55 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | $ 3 | $ 2 |
Interest cost | 11 | 13 |
Expected return on plan assets | (13) | (15) |
Amortization of net actuarial loss | 10 | 10 |
Net periodic pension benefit cost | 11 | 10 |
Non-U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | 13 | 12 |
Interest cost | 9 | 13 |
Expected return on plan assets | (18) | (18) |
Amortization of net actuarial loss | 11 | 9 |
Amortization of prior service credit | (2) | (1) |
Net periodic pension benefit cost | $ 13 | $ 15 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2016 | Dec. 25, 2015 | Sep. 30, 2016 | |
Income Taxes | |||
Income tax expense | $ 54 | $ 58 | |
Income tax benefits associated with intercompany legal entity restructurings and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards | 30 | ||
Income tax benefit recognized in connection with anticipated sale of Circuit Protection Devices | $ 28 | ||
Income tax penalties and interest accrued | 58 | $ 54 | |
Income tax expense related to interest and penalties | 3 | ||
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $ 90 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Earnings Per Share | ||
Basic (in shares) | 356 | 385 |
Dilutive impact of share-based compensation arrangements (in shares) | 3 | 5 |
Diluted (in shares) | 359 | 390 |
Share options | ||
Antidilutive shares excluded from computation of earnings per share | ||
Antidilutive share options | 2 | 2 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 30, 2016 | Dec. 25, 2015 | Sep. 30, 2016 | |
Equity | |||
Cash dividend paid (in dollars per share) | $ 0.37 | $ 0.33 | |
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $ 132 | $ 263 | |
Number of common shares repurchased | 2 | 20 | |
Amount repurchased | $ 102 | $ 1,318 | |
Amount available for repurchase, at end of period | $ 1,000 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Share Based Compensation Arrangements: | ||
Share-based compensation expense | $ 24 | $ 22 |
Shares available for issuance | 13 | |
Share Based Compensation Expenses Not Recognized | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 192 | |
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 2 years 6 months | |
Share options | ||
Share Based Compensation Arrangements: | ||
Share options | 2.1 | |
Options granted, weighted-average grant-date fair value (in dollars per share) | $ 12.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Expected share price volatility (as a percent) | 24.00% | |
Risk free interest rate (as a percent) | 1.90% | |
Expected annual dividend per share | $ 1.48 | |
Expected life of options (in years) | 5 years 7 months 6 days | |
Restricted share awards | ||
Share Based Compensation Arrangements: | ||
Share awards | 0.7 | |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $ 66.74 | |
Performance share awards | ||
Share Based Compensation Arrangements: | ||
Share awards | 0.3 | |
Shares granted, weighted-average grant-date fair value (in dollars per share) | $ 66.74 |
Segment Data (Details)
Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Segment Data | ||
Net sales | $ 3,063 | $ 2,833 |
Operating income | 486 | 398 |
Transportation Solutions | ||
Segment Data | ||
Net sales | 1,675 | 1,507 |
Operating income | 343 | 261 |
Industrial Solutions | ||
Segment Data | ||
Net sales | 795 | 709 |
Operating income | 67 | 66 |
Communications Solutions | ||
Segment Data | ||
Net sales | 593 | 617 |
Operating income | $ 76 | $ 71 |
Tyco Electronics Group S.A. - O
Tyco Electronics Group S.A. - Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Tyco Electronics Group S.A. | ||
Ownership percentage in TEGSA | 100.00% | |
Statement of Operations Detail: | ||
Net sales | $ 3,063 | $ 2,833 |
Cost of sales | 1,998 | 1,888 |
Gross margin | 1,065 | 945 |
Selling, general, and administrative expenses, net | 372 | 340 |
Research, development, and engineering expenses | 158 | 162 |
Acquisition and integration costs | 2 | 5 |
Restructuring and other charges, net | 47 | 40 |
Operating income | 486 | 398 |
Interest income | 5 | 6 |
Interest expense | (31) | (30) |
Other income, net | 8 | |
Income from continuing operations before income taxes | 460 | 382 |
Income tax expense | (54) | (58) |
Income from continuing operations | 406 | 324 |
Income (loss) from discontinued operations, net of income taxes | 3 | 29 |
Net Income | 409 | 353 |
Other comprehensive loss | (156) | (90) |
Comprehensive income | 253 | 263 |
Consolidating Adjustments | ||
Statement of Operations Detail: | ||
Equity in net income of subsidiaries | (796) | (712) |
Equity in net income of subsidiaries of discontinued operations | (7) | (105) |
Income from continuing operations before income taxes | (803) | (817) |
Income from continuing operations | (803) | (817) |
Net Income | (803) | (817) |
Other comprehensive loss | 331 | 176 |
Comprehensive income | (472) | (641) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses, net | 28 | 36 |
Operating income | (28) | (36) |
Equity in net income of subsidiaries | 440 | 361 |
Equity in net income of subsidiaries of discontinued operations | 3 | 29 |
Intercompany interest income (expense), net | (6) | (1) |
Income from continuing operations before income taxes | 409 | 353 |
Income from continuing operations | 409 | 353 |
Net Income | 409 | 353 |
Other comprehensive loss | (156) | (90) |
Comprehensive income | 253 | 263 |
TEGSA | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses, net | (88) | (28) |
Operating income | 88 | 28 |
Interest expense | (31) | (30) |
Equity in net income of subsidiaries | 356 | 351 |
Equity in net income of subsidiaries of discontinued operations | 4 | 76 |
Intercompany interest income (expense), net | 27 | 12 |
Income from continuing operations before income taxes | 444 | 437 |
Income from continuing operations | 444 | 437 |
Income (loss) from discontinued operations, net of income taxes | (1) | (47) |
Net Income | 443 | 390 |
Other comprehensive loss | (156) | (90) |
Comprehensive income | 287 | 300 |
Other Subsidiaries | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Net sales | 3,063 | 2,833 |
Cost of sales | 1,998 | 1,888 |
Gross margin | 1,065 | 945 |
Selling, general, and administrative expenses, net | 432 | 332 |
Research, development, and engineering expenses | 158 | 162 |
Acquisition and integration costs | 2 | 5 |
Restructuring and other charges, net | 47 | 40 |
Operating income | 426 | 406 |
Interest income | 5 | 6 |
Other income, net | 8 | |
Intercompany interest income (expense), net | (21) | (11) |
Income from continuing operations before income taxes | 410 | 409 |
Income tax expense | (54) | (58) |
Income from continuing operations | 356 | 351 |
Income (loss) from discontinued operations, net of income taxes | 4 | 76 |
Net Income | 360 | 427 |
Other comprehensive loss | (175) | (86) |
Comprehensive income | $ 185 | $ 341 |
Tyco Electronics Group S.A. - B
Tyco Electronics Group S.A. - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 | Dec. 25, 2015 | Sep. 25, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 665 | $ 647 | $ 2,223 | $ 3,329 |
Accounts receivable, net | 2,034 | 2,046 | ||
Inventories | 1,636 | 1,596 | ||
Prepaid expenses and other current assets | 474 | 486 | ||
Total current assets | 4,809 | 4,775 | ||
Property, plant, and equipment, net | 2,956 | 3,052 | ||
Goodwill | 5,363 | 5,492 | ||
Intangible assets, net | 1,800 | 1,879 | ||
Deferred income taxes | 2,290 | 2,111 | ||
Other assets | 397 | 299 | ||
Total Assets | 17,615 | 17,608 | ||
Current liabilities: | ||||
Short-term debt | 1,052 | 331 | ||
Accounts payable | 1,123 | 1,090 | ||
Accrued and other current liabilities | 1,189 | 1,437 | ||
Deferred revenue | 149 | 208 | ||
Total current liabilities | 3,513 | 3,066 | ||
Long-term debt | 2,976 | 3,739 | ||
Long-term pension and postretirement liabilities | 1,474 | 1,502 | ||
Deferred income taxes | 194 | 207 | ||
Income taxes | 266 | 247 | ||
Other liabilities | 355 | 362 | ||
Total Liabilities | 8,778 | 9,123 | ||
Total Shareholders' Equity | 8,837 | 8,485 | 8,577 | 9,585 |
Total Liabilities and Shareholders' Equity | 17,615 | 17,608 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (1,520) | (1,399) | ||
Total current assets | (1,520) | (1,399) | ||
Investment in subsidiaries | (29,994) | (29,478) | ||
Intercompany loans receivable | (14,228) | (14,074) | ||
Total Assets | (45,742) | (44,951) | ||
Current liabilities: | ||||
Intercompany payables | (1,520) | (1,399) | ||
Total current liabilities | (1,520) | (1,399) | ||
Intercompany loans payable | (14,228) | (14,074) | ||
Total Liabilities | (15,748) | (15,473) | ||
Total Shareholders' Equity | (29,994) | (29,478) | ||
Total Liabilities and Shareholders' Equity | (45,742) | (44,951) | ||
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 26 | 37 | ||
Prepaid expenses and other current assets | 2 | 3 | ||
Total current assets | 28 | 40 | ||
Investment in subsidiaries | 10,417 | 10,053 | ||
Intercompany loans receivable | 20 | 22 | ||
Total Assets | 10,465 | 10,115 | ||
Current liabilities: | ||||
Accounts payable | 1 | 1 | ||
Accrued and other current liabilities | 134 | 266 | ||
Intercompany payables | 1,493 | 1,363 | ||
Total current liabilities | 1,628 | 1,630 | ||
Total Liabilities | 1,628 | 1,630 | ||
Total Shareholders' Equity | 8,837 | 8,485 | ||
Total Liabilities and Shareholders' Equity | 10,465 | 10,115 | ||
TEGSA | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 1,457 | 1,314 | ||
Prepaid expenses and other current assets | 34 | 17 | ||
Total current assets | 1,491 | 1,331 | ||
Investment in subsidiaries | 19,577 | 19,425 | ||
Intercompany loans receivable | 3,817 | 3,739 | ||
Other assets | 42 | 14 | ||
Total Assets | 24,927 | 24,509 | ||
Current liabilities: | ||||
Short-term debt | 1,051 | 330 | ||
Accrued and other current liabilities | 94 | 57 | ||
Total current liabilities | 1,145 | 387 | ||
Long-term debt | 2,974 | 3,737 | ||
Intercompany loans payable | 10,391 | 10,314 | ||
Other liabilities | 18 | |||
Total Liabilities | 14,510 | 14,456 | ||
Total Shareholders' Equity | 10,417 | 10,053 | ||
Total Liabilities and Shareholders' Equity | 24,927 | 24,509 | ||
Other Subsidiaries | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 665 | 647 | $ 2,223 | $ 3,329 |
Accounts receivable, net | 2,034 | 2,046 | ||
Inventories | 1,636 | 1,596 | ||
Intercompany receivables | 37 | 48 | ||
Prepaid expenses and other current assets | 438 | 466 | ||
Total current assets | 4,810 | 4,803 | ||
Property, plant, and equipment, net | 2,956 | 3,052 | ||
Goodwill | 5,363 | 5,492 | ||
Intangible assets, net | 1,800 | 1,879 | ||
Deferred income taxes | 2,290 | 2,111 | ||
Intercompany loans receivable | 10,391 | 10,313 | ||
Other assets | 355 | 285 | ||
Total Assets | 27,965 | 27,935 | ||
Current liabilities: | ||||
Short-term debt | 1 | 1 | ||
Accounts payable | 1,122 | 1,089 | ||
Accrued and other current liabilities | 961 | 1,114 | ||
Deferred revenue | 149 | 208 | ||
Intercompany payables | 27 | 36 | ||
Total current liabilities | 2,260 | 2,448 | ||
Long-term debt | 2 | 2 | ||
Intercompany loans payable | 3,837 | 3,760 | ||
Long-term pension and postretirement liabilities | 1,474 | 1,502 | ||
Deferred income taxes | 194 | 207 | ||
Income taxes | 266 | 247 | ||
Other liabilities | 355 | 344 | ||
Total Liabilities | 8,388 | 8,510 | ||
Total Shareholders' Equity | 19,577 | 19,425 | ||
Total Liabilities and Shareholders' Equity | $ 27,965 | $ 27,935 |
Tyco Electronics Group S.A. - C
Tyco Electronics Group S.A. - Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Dec. 25, 2015 | |
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | $ 404 | $ 391 |
Net cash used in discontinued operating activities | (1) | |
Net cash provided by operating activities | 404 | 390 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (130) | (139) |
Proceeds from sale of property, plant, and equipment | 4 | 1 |
Other | (28) | 17 |
Net cash used in investing activities | (154) | (121) |
Cash Flows From Financing Activities: | ||
Net increase in commercial paper | 10 | |
Proceeds from exercise of share options | 25 | 34 |
Repurchase of common shares | (93) | (1,249) |
Payment of common share dividends to shareholders | (132) | (127) |
Other | (19) | (29) |
Net cash used in continuing financing activities | (209) | (1,371) |
Net cash provided by discontinued financing activities | 1 | |
Net cash used in financing activities | (209) | (1,370) |
Effect of currency translation on cash | (23) | (5) |
Net increase (decrease) in cash and cash equivalents | 18 | (1,106) |
Cash and cash equivalents at beginning of period | 647 | 3,329 |
Cash and cash equivalents at end of period | 665 | 2,223 |
Consolidating Adjustments | ||
Cash Flows From Investing Activities: | ||
Change in intercompany loans | 141 | (106) |
Net cash used in investing activities | 141 | (106) |
Cash Flows From Financing Activities: | ||
Loan activity with parent | (141) | 106 |
Net cash used in continuing financing activities | 106 | |
Net cash used in financing activities | (141) | 106 |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (48) | |
Net cash provided by operating activities | (30) | (48) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 22 | 22 |
Repurchase of common shares | (1,249) | |
Payment of common share dividends to shareholders | (132) | (128) |
Loan activity with parent | 140 | 1,403 |
Net cash used in continuing financing activities | 48 | |
Net cash used in financing activities | 30 | 48 |
TEGSA | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (19) | |
Net cash provided by operating activities | 22 | (19) |
Cash Flows From Investing Activities: | ||
Proceeds from divestiture of discontinued operations | (54) | |
Change in intercompany loans | (141) | 106 |
Other | 4 | (15) |
Net cash used in investing activities | (137) | 37 |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 105 | (17) |
Net increase in commercial paper | 10 | |
Other | (1) | |
Net cash used in continuing financing activities | (18) | |
Net cash used in financing activities | 115 | (18) |
Other Subsidiaries | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 458 | |
Net cash used in discontinued operating activities | (1) | |
Net cash provided by operating activities | 412 | 457 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (130) | (139) |
Proceeds from sale of property, plant, and equipment | 4 | 1 |
Proceeds from divestiture of discontinued operations | 54 | |
Other | (32) | 32 |
Net cash used in investing activities | (158) | (52) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | (127) | (5) |
Proceeds from exercise of share options | 25 | 34 |
Repurchase of common shares | (93) | |
Payment of common share dividends to shareholders | 1 | |
Loan activity with parent | 1 | (1,509) |
Other | (19) | (28) |
Net cash used in continuing financing activities | (1,507) | |
Net cash provided by discontinued financing activities | 1 | |
Net cash used in financing activities | (213) | (1,506) |
Effect of currency translation on cash | (23) | (5) |
Net increase (decrease) in cash and cash equivalents | 18 | (1,106) |
Cash and cash equivalents at beginning of period | 647 | 3,329 |
Cash and cash equivalents at end of period | $ 665 | $ 2,223 |