Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2017 | Apr. 21, 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 | Mar. 31, 2017 | |
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 | 355,027,307 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 3,227 | $ 2,952 | $ 6,290 | $ 5,785 |
Cost of sales | 2,119 | 1,990 | 4,117 | 3,878 |
Gross margin | 1,108 | 962 | 2,173 | 1,907 |
Selling, general, and administrative expenses | 412 | 367 | 784 | 707 |
Research, development, and engineering expenses | 162 | 156 | 320 | 318 |
Acquisition and integration costs | 2 | 3 | 4 | 8 |
Restructuring and other charges (credits), net | 59 | (99) | 106 | (59) |
Operating income | 473 | 535 | 959 | 933 |
Interest income | 6 | 4 | 11 | 10 |
Interest expense | (32) | (32) | (63) | (62) |
Other income (expense), net | (2) | 12 | (2) | 20 |
Income from continuing operations before income taxes | 445 | 519 | 905 | 901 |
Income tax expense | (39) | (130) | (93) | (188) |
Income from continuing operations | 406 | 389 | 812 | 713 |
Income (loss) from discontinued operations, net of income taxes | (1) | (9) | 2 | 20 |
Net Income | $ 405 | $ 380 | $ 814 | $ 733 |
Basic earnings per share: | ||||
Income from continuing operations (in dollars per share) | $ 1.14 | $ 1.07 | $ 2.28 | $ 1.90 |
Income (loss) from discontinued operations (in dollars per share) | (0.02) | 0.01 | 0.05 | |
Net income (in dollars per share) | 1.14 | 1.04 | 2.29 | 1.95 |
Diluted earnings per share: | ||||
Income from continuing operations (in dollars per share) | 1.13 | 1.06 | 2.26 | 1.88 |
Income (loss) from discontinued operations (in dollars per share) | (0.02) | 0.01 | 0.05 | |
Net income (in dollars per share) | 1.13 | 1.03 | 2.27 | 1.93 |
Dividends paid per common share | $ 0.37 | $ 0.33 | $ 0.74 | $ 0.66 |
Weighted-average number of shares outstanding: | ||||
Basic (in shares) | 356 | 364 | 356 | 375 |
Diluted (in shares) | 359 | 368 | 359 | 379 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 405 | $ 380 | $ 814 | $ 733 |
Other comprehensive income (loss): | ||||
Currency translation | 83 | (7) | (102) | (92) |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 12 | 12 | 25 | 14 |
Gains on cash flow hedges, net of income taxes | 19 | 9 | 35 | 2 |
Other comprehensive income (loss) | 114 | 14 | (42) | (76) |
Comprehensive income | $ 519 | $ 394 | $ 772 | $ 657 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 773 | $ 647 |
Accounts receivable, net of allowance for doubtful accounts of $18 and $17, respectively | 2,244 | 2,046 |
Inventories | 1,660 | 1,596 |
Prepaid expenses and other current assets | 469 | 486 |
Total current assets | 5,146 | 4,775 |
Property, plant, and equipment, net | 3,046 | 3,052 |
Goodwill | 5,382 | 5,492 |
Intangible assets, net | 1,768 | 1,879 |
Deferred income taxes | 2,280 | 2,111 |
Other assets | 434 | 299 |
Total Assets | 18,056 | 17,608 |
Current liabilities: | ||
Short-term debt | 879 | 331 |
Accounts payable | 1,226 | 1,090 |
Accrued and other current liabilities | 1,701 | 1,437 |
Deferred revenue | 129 | 208 |
Total current liabilities | 3,935 | 3,066 |
Long-term debt | 3,073 | 3,739 |
Long-term pension and postretirement liabilities | 1,474 | 1,502 |
Deferred income taxes | 197 | 207 |
Income taxes | 276 | 247 |
Other liabilities | 348 | 362 |
Total Liabilities | 9,303 | 9,123 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Common shares, CHF 0.57 par value, 382,835,381 shares authorized and issued | 168 | 168 |
Contributed surplus | 1,147 | 1,801 |
Accumulated earnings | 9,661 | 8,682 |
Treasury shares, at cost, 27,525,920 and 27,554,005 shares, respectively | (1,639) | (1,624) |
Accumulated other comprehensive loss | (584) | (542) |
Total Shareholders' Equity | 8,753 | 8,485 |
Total Liabilities and Shareholders' Equity | $ 18,056 | $ 17,608 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Mar. 31, 2017SFr / shares | Mar. 31, 2017USD ($)shares | Sep. 30, 2016SFr / shares | Sep. 30, 2016USD ($)shares |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ | $ 18 | $ 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 | 27,525,920 | 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 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 | 733 | 733 | |||||
Other comprehensive loss | (76) | (76) | |||||
Share-based compensation expense | 44 | 44 | |||||
Dividends approved | (514) | (514) | |||||
Exercise of share options | $ 61 | 61 | |||||
Exercise of share options (in shares) | 2 | ||||||
Restricted share award vestings and other activity | $ 112 | (124) | (12) | ||||
Restricted share award vestings and other activity (in shares) | 1 | ||||||
Repurchase of common shares | $ (2,415) | $ (2,415) | |||||
Repurchase of common shares (in shares) | (40) | (40) | |||||
Balance at Mar. 25, 2016 | $ 182 | $ (3,498) | 3,765 | 7,406 | (449) | $ 7,406 | |
Balance (in shares) at Mar. 25, 2016 | 414 | (57) | |||||
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 No. 2016-09 | $ 165 | 165 | |||||
Net income | 814 | 814 | |||||
Other comprehensive loss | (42) | (42) | |||||
Share-based compensation expense | 47 | 47 | |||||
Dividends approved | (569) | (569) | |||||
Exercise of share options | $ 64 | 64 | |||||
Exercise of share options (in shares) | 2 | ||||||
Restricted share award vestings and other activity | $ 126 | (132) | (6) | ||||
Restricted share award vestings and other activity (in shares) | 1 | ||||||
Repurchase of common shares | $ (205) | $ (205) | |||||
Repurchase of common shares (in shares) | (3) | (3) | |||||
Balance at Mar. 31, 2017 | $ 168 | $ (1,639) | $ 1,147 | $ 9,661 | $ (584) | $ 8,753 | |
Balance (in shares) at Mar. 31, 2017 | 383 | (28) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Cash Flows From Operating Activities: | ||
Net income | $ 814 | $ 733 |
Income from discontinued operations, net of income taxes | (2) | (20) |
Income from continuing operations | 812 | 713 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 312 | 290 |
Deferred income taxes | (118) | (52) |
Provision for losses on accounts receivable and inventories | 9 | 23 |
Share-based compensation expense | 47 | 43 |
Gain on divestiture | (146) | |
Other | 12 | 43 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | (215) | 9 |
Inventories | (69) | (61) |
Prepaid expenses and other current assets | 32 | 302 |
Accounts payable | 148 | (16) |
Accrued and other current liabilities | 13 | (138) |
Deferred revenue | (83) | (70) |
Income taxes | 33 | (396) |
Other | (8) | 3 |
Net cash provided by continuing operating activities | 925 | 547 |
Net cash used in discontinued operating activities | (2) | |
Net cash provided by operating activities | 925 | 545 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (289) | (270) |
Proceeds from sale of property, plant, and equipment | 8 | 1 |
Acquisition of business, net of cash acquired | (6) | |
Proceeds from divestiture of business, net of cash retained by business sold | 261 | |
Other | (16) | 29 |
Net cash provided by (used in) investing activities | (297) | 15 |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | (162) | 150 |
Proceeds from issuance of debt | 89 | 350 |
Repayment of debt | (500) | |
Proceeds from exercise of share options | 64 | 61 |
Repurchase of common shares | (198) | (2,523) |
Payment of common share dividends to shareholders | (263) | (245) |
Other | (22) | (32) |
Net cash used in continuing financing activities | (492) | (2,739) |
Net cash provided by discontinued financing activities | 2 | |
Net cash used in financing activities | (492) | (2,737) |
Effect of currency translation on cash | (10) | (2) |
Net increase (decrease) in cash and cash equivalents | 126 | (2,179) |
Cash and cash equivalents at beginning of period | 647 | 3,329 |
Cash and cash equivalents at end of period | $ 773 | $ 1,150 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2017 | |
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 Issued Accounting Pronouncement In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 which created new Accounting Standards Codification ("ASC") topic 606, Revenue from Contracts with Customers. This guidance supersedes ASC 605, Revenue Recognition , and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. ASC 606, as amended, is effective for us in the first quarter of fiscal 2019 and allows for either a full retrospective or a modified retrospective approach at adoption. We have not yet selected a transition approach and are continuing to assess the impact of adopting ASC 606. Based on the initial evaluation of our current contracts and revenue streams, we do not expect adoption will have a material impact on our results of operations or financial position. We believe we are following an appropriate timeline to allow for the proper recognition, reporting, and disclosure of revenue upon adoption of ASC 606 at the beginning of fiscal 2019. Recently Adopted Accounting Pronouncement In March 2016, the FASB issued ASU No. 2016-09, an update to ASC 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 (Credits), Net | 6 Months Ended |
Mar. 31, 2017 | |
Restructuring and Other Charges (Credits), Net | |
Restructuring and Other Charges (Credits), Net | 2. Restructuring and Other Charges (Credits), Net Net restructuring and other charges (credits) consisted of the following: For the For the March 31, March 25, March 31, March 25, (in millions) Restructuring charges, net $ $ $ $ Gain on divestiture — ) — ) Other charges — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring Charges, Net Net restructuring charges by segment were as follows: For the For the March 31, March 25, March 31, March 25, (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves during the six months ended March 31, 2017 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 six months ended March 31, 2017, we recorded restructuring charges of $100 million. We expect to complete all restructuring actions commenced during the six months ended March 31, 2017 by the end of fiscal 2018 and to incur total charges of approximately $120 million with remaining charges primarily related to employee severance. The following table summarizes expected, incurred, and remaining charges for the fiscal 2017 program by segment: Total Cumulative Remaining (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 six months ended March 31, 2017 and March 25, 2016, we recorded restructuring charges of $9 million and $60 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 six months ended March 31, 2017 and March 25, 2016, we recorded restructuring credits of $4 million and charges of $1 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: March 31, September 30, (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain on Divestiture During the quarter ended March 25, 2016, we sold our Circuit Protection Devices ("CPD") business for $350 million, subject to working capital adjustments, of which we received $261 million during the quarter ended March 25, 2016. We recognized a pre-tax gain of $146 million on the transaction. The CPD business was reported in our Communications Solutions segment. Other Charges, Net During the six months ended March 25, 2016, we incurred charges of $15 million related to the write-off of certain investments and costs of $11 million associated with the divestiture of certain businesses. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Inventories | 3. Inventories Inventories consisted of the following: March 31, September 30, (in millions) Raw materials $ $ Work in progress Finished goods Inventoried costs on long-term contracts ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill
Goodwill | 6 Months Ended |
Mar. 31, 2017 | |
Goodwill | |
Goodwill | 4. 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) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2017 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At March 31, 2017 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 $36 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 | 6 Months Ended |
Mar. 31, 2017 | |
Intangible Assets, Net | |
Intangible Assets, Net | 5. Intangible Assets, Net Intangible assets consisted of the following: March 31, 2017 September 30, 2016 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ $ ) $ $ $ ) $ Intellectual property ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible asset amortization expense was $41 million and $34 million for the quarters ended March 31, 2017 and March 25, 2016, respectively, and $83 million and $68 million for the six months ended March 31, 2017 and March 25, 2016, 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 | 6 Months Ended |
Mar. 31, 2017 | |
Debt | |
Debt | 6. Debt During the six months ended March 31, 2017, 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 March 31, 2017, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, had $168 million of commercial paper outstanding at a weighted-average interest rate of 1.18%. 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 $4,187 million and $4,424 million at March 31, 2017 and September 30, 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. 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 March 31, 2017, we concluded that it was probable that we would incur remedial costs in the range of $16 million to $42 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 March 31, 2017, we had outstanding letters of credit, letters of guarantee, and surety bonds of $269 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 $47 million and $48 million at March 31, 2017 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 ("IRS"). 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 | 6 Months Ended |
Mar. 31, 2017 | |
Financial Instruments | |
Financial Instruments | 8. 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 $3,258 million and $3,480 million at March 31, 2017 and September 30, 2016, respectively. The impacts of our hedging program were as follows: For the For the March 31, March 25, March 31, March 25, (in millions) Foreign exchange gains (losses) (1) $ ) $ ) $ $ (1) 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 | 6 Months Ended |
Mar. 31, 2017 | |
Retirement Plans | |
Retirement Plans | 9. 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 March 31, March 25, March 31, March 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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Plans Non-U.S. Plans For the For the March 31, March 25, March 31, March 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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the six months ended March 31, 2017, we contributed $16 million to our non-U.S. pension plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2017 | |
Income Taxes | |
Income Taxes | 10. Income Taxes We recorded income tax expense of $39 million and $130 million for the quarters ended March 31, 2017 and March 25, 2016, respectively. The income tax expense for the quarter ended March 31, 2017 included a $24 million income tax benefit resulting from lapses of statutes of limitations in the U.S. and certain non-U.S. jurisdictions, and a $22 million income tax benefit associated with the tax impacts of certain intercompany transactions. The income tax expense for the quarter ended March 25, 2016 included a $42 million income tax charge associated with the gain on the sale of our CPD business. We recorded income tax expense of $93 million and $188 million for the six months ended March 31, 2017 and March 25, 2016, respectively. The tax expense for the six months ended March 31, 2017 included a $52 million income tax benefit associated with the tax impacts of certain intercompany transactions and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards, as well as a $24 million income tax benefit resulting from lapses of statutes of limitations in the U.S. and certain non-U.S. jurisdictions. The tax expense for the six months ended March 25, 2016 included a $42 million income tax charge associated with the gain on the sale of our CPD business, partially offset by a $25 million income tax benefit related primarily to deferred tax assets recognized in connection with the sale. We record accrued interest as well as penalties related to uncertain tax positions as part of income tax expense. As of March 31, 2017 and September 30, 2016, we had $57 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 six months ended March 31, 2017, we recognized income tax benefits of $2 million related to interest and penalties on the Condensed Consolidated Statement of Operations. During the second quarter of fiscal 2016, we made a pre-payment to the IRS of $443 million for tax deficiencies related to pre-separation U.S. tax matters. Concurrent with remitting this payment, we received net reimbursements of $303 million from Tyco International and Covidien pursuant to indemnifications for pre-separation tax matters. As previously reported, we have substantially settled all pre-separation U.S. federal income tax matters with the IRS. See Note 7 for additional for information regarding the Tax Sharing Agreement associated with pre-separation tax matters. Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $25 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 March 31, 2017. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share | |
Earnings Per Share | 11. 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 For the March 31, March 25, March 31, March 25, (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 For the March 31, March 25, March 31, March 25, (in millions) Antidilutive share options — |
Equity
Equity | 6 Months Ended |
Mar. 31, 2017 | |
Equity | |
Equity | 12. Equity Common Shares Held in Treasury In March 2017, our shareholders approved the cancellation of 26 million shares purchased under our share repurchase program during the period from December 11, 2015 to September 30, 2016. The capital reduction by cancellation of these shares is subject to a notice period and filing with the commercial register in Switzerland and is not yet reflected on the Condensed Consolidated Balance Sheet. Dividends In March 2017, our shareholders approved a dividend payment to shareholders of $1.60 (equivalent to CHF 1.62) per share, payable in four equal quarterly installments of $0.40 per share beginning in the third quarter of fiscal 2017 through the second quarter of fiscal 2018. Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to shareholders' equity. At March 31, 2017 and September 30, 2016, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $569 million and $263 million, respectively. Share Repurchase Program Common shares repurchased under the share repurchase program were as follows: For the March 31, March 25, (in millions) Number of common shares repurchased Amount repurchased $ $ At March 31, 2017, we had $897 million of availability remaining under our share repurchase authorization. |
Share Plans
Share Plans | 6 Months Ended |
Mar. 31, 2017 | |
Share Plans | |
Share Plans | 13. 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 For the March 31, March 25, March 31, March 25, (in millions) Share-based compensation expense $ $ $ $ As of March 31, 2017, there was $172 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.2 years. During the 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 In March 2017, our shareholders approved an increase of 10 million shares in the number of shares available for awards under the TE Connectivity Ltd. 2007 Stock and Incentive Plan, amended and restated as of March 8, 2017 (the "2017 Plan"). As of March 31, 2017, we had 23 million shares available for issuance under our stock and incentive plans, of which the 2017 Plan 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 | 6 Months Ended |
Mar. 31, 2017 | |
Segment Data | |
Segment Data | 14. Segment Data Net sales by segment were as follows: For the For the March 31, March 25, March 31, March 25, (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 For the March 31, March 25, March 31, March 25, (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions (1) (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes pre-tax gain of $146 million on the sale of our CPD business during the quarter ended March 25, 2016. |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 6 Months Ended |
Mar. 31, 2017 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 15. 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 — 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 (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 ) Income (loss) from discontinued operations, net of income taxes (1) — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes the internal allocation of gains and losses associated with the divestiture of our Broadband Network Solutions ("BNS") business. 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 (1) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other credits, net — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense — ) ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income (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 ) Income (loss) from discontinued operations, net of income taxes (2) — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include losses of $37 million related to intercompany transactions. These losses are offset by corresponding gains recorded by other subsidiaries. (2) Includes the internal allocation of gains and losses associated with the divestiture of our BNS business. 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 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 (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) TE TEGSA Other Consolidating 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 credits, 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 (2) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include losses of $37 million related to intercompany transactions. These losses are offset by corresponding gains recorded by other subsidiaries. (2) Includes the internal allocation of gains and losses associated with the divestiture of our BNS business. 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 decrease in commercial paper — ) — — ) Proceeds from issuance of debt — — — 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 — — — Acquisition of business, net of cash acquired — — ) — ) Proceeds from divestiture of business, net of cash retained by business sold — — Change in intercompany loans — ) — — Other (1) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — Net increase in commercial paper — — — Proceeds from issuance of debt — — Repayment of debt — ) — — ) 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) Includes the internal allocation of proceeds of $132 million between TEGSA and other subsidiaries 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 Charg23
Restructuring and Other Charges (Credits), Net (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Restructuring and Other Charges (Credits), Net | |
Schedule of restructuring and other charges (credits) | For the For the March 31, March 25, March 31, March 25, (in millions) Restructuring charges, net $ $ $ $ Gain on divestiture — ) — ) Other charges — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net restructuring charges by segment | For the For the March 31, March 25, March 31, March 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 reserves included on Condensed Consolidated Balance Sheets | March 31, September 30, (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fiscal 2017 Actions | |
Restructuring and Other Charges (Credits), Net | |
Summary of charges by segment | Total Cumulative Remaining (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fiscal 2016 Actions | |
Restructuring and Other Charges (Credits), Net | |
Summary of charges by segment | Total Cumulative Remaining (in millions) Transportation Solutions $ $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Schedule of inventories | March 31, September 30, (in millions) Raw materials $ $ Work in progress Finished goods Inventoried costs on long-term contracts ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
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) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2017 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At March 31, 2017 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 $36 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) | 6 Months Ended |
Mar. 31, 2017 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | March 31, 2017 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 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Financial Instruments | |
Schedule of impacts of hedging program | For the For the March 31, March 25, March 31, March 25, (in millions) Foreign exchange gains (losses) (1) $ ) $ ) $ $ (1) 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 (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Retirement Plans | |
Net periodic pension benefit cost | U.S. Plans Non-U.S. Plans For the For the March 31, March 25, March 31, March 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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Plans Non-U.S. Plans For the For the March 31, March 25, March 31, March 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) | 6 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | For the For the March 31, March 25, March 31, March 25, (in millions) Basic Dilutive impact of share-based compensation arrangements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of antidilutive securities excluded from computation of earnings per share | For the For the March 31, March 25, March 31, March 25, (in millions) Antidilutive share options — |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Equity | |
Schedule of common shares repurchased | For the March 31, March 25, (in millions) Number of common shares repurchased Amount repurchased $ $ |
Share Plans (Tables)
Share Plans (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Share Plans | |
Share-based compensation expense | For the For the March 31, March 25, March 31, March 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) | 6 Months Ended |
Mar. 31, 2017 | |
Segment Data | |
Schedule of net sales by segment | For the For the March 31, March 25, March 31, March 25, (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 For the March 31, March 25, March 31, March 25, (in millions) Transportation Solutions $ $ $ $ Industrial Solutions Communications Solutions (1) (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes pre-tax gain of $146 million on the sale of our CPD business during the quarter ended March 25, 2016. |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
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 — 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 (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 ) Income (loss) from discontinued operations, net of income taxes (1) — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes the internal allocation of gains and losses associated with the divestiture of our Broadband Network Solutions ("BNS") business. 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 (1) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other credits, net — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) — Interest income — — — Interest expense — ) ) — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net income (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 ) Income (loss) from discontinued operations, net of income taxes (2) — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include losses of $37 million related to intercompany transactions. These losses are offset by corresponding gains recorded by other subsidiaries. (2) Includes the internal allocation of gains and losses associated with the divestiture of our BNS business. 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 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 (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) TE TEGSA Other Consolidating 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 credits, 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 (2) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include losses of $37 million related to intercompany transactions. These losses are offset by corresponding gains recorded by other subsidiaries. (2) Includes the internal allocation of gains and losses associated with the divestiture of our BNS business. |
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 decrease in commercial paper — ) — — ) Proceeds from issuance of debt — — — 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 — — — Acquisition of business, net of cash acquired — — ) — ) Proceeds from divestiture of business, net of cash retained by business sold — — Change in intercompany loans — ) — — Other (1) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) ) — — Net increase in commercial paper — — — Proceeds from issuance of debt — — Repayment of debt — ) — — ) 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) Includes the internal allocation of proceeds of $132 million between TEGSA and other subsidiaries associated with the divestiture of our BNS business. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Basis of Presentation and Acc34
Basis of Presentation and Accounting Pronouncements - Accounting Pronouncements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 |
New Accounting Pronouncement, Early Adoption | ||
Accumulated earnings | $ 9,661 | $ 8,682 |
Deferred tax assets | 2,280 | $ 2,111 |
Impact of New Accounting Pronouncement, Early Adoption | ||
New Accounting Pronouncement, Early Adoption | ||
Accumulated earnings | 165 | |
Deferred tax assets | $ 165 |
Restructuring and Other Charg35
Restructuring and Other Charges (Credits), Net - Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | $ 59 | $ 26 | $ 105 | $ 61 |
Gain on divestiture | (146) | (146) | ||
Other charges | 21 | 1 | 26 | |
Restructuring and other charges, net | 59 | (99) | 106 | (59) |
Transportation Solutions | ||||
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | 33 | 4 | 57 | 19 |
Industrial Solutions | ||||
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | 19 | 14 | 39 | 23 |
Communications Solutions | ||||
Restructuring and other charges (credits), net: | ||||
Restructuring charges, net | $ 7 | $ 8 | $ 9 | $ 19 |
Restructuring and Other Charg36
Restructuring and Other Charges (Credits), Net - Reserve (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2017USD ($) | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 91 |
Charges | 109 |
Changes in Estimate | (4) |
Cash Payments | (40) |
Non-Cash Items | (6) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 148 |
Fiscal 2017 Actions | |
Restructuring reserve | |
Charges | 100 |
Cash Payments | (11) |
Non-Cash Items | (6) |
Restructuring reserve at the end of the period | 83 |
Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 54 |
Charges | 9 |
Cash Payments | (22) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 40 |
Pre-Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 37 |
Changes in Estimate | (4) |
Cash Payments | (7) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 25 |
Employee severance | Fiscal 2017 Actions | |
Restructuring reserve | |
Charges | 94 |
Cash Payments | (11) |
Restructuring reserve at the end of the period | 83 |
Employee severance | Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 54 |
Charges | 8 |
Cash Payments | (21) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 40 |
Employee severance | Pre-Fiscal 2016 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 25 |
Changes in Estimate | (4) |
Cash Payments | (5) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 15 |
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 | 6 |
Non-Cash Items | $ (6) |
Restructuring and Other Charg37
Restructuring and Other Charges (Credits), Net - Actions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | Sep. 30, 2016 | |
Restructuring Charges | |||||
Charges Incurred | $ 59 | $ 26 | $ 105 | $ 61 | |
Accrued and other current liabilities | 123 | 123 | $ 64 | ||
Other liabilities | 25 | 25 | 27 | ||
Restructuring reserves | 148 | 148 | 91 | ||
Charges for write-off of certain investments | 15 | ||||
Costs associated with the divestiture of businesses | 11 | ||||
Gain on Divestiture | |||||
Net proceeds from divestiture of business | 261 | ||||
Gain on divestiture | 146 | 146 | |||
Circuit Protection Devices | |||||
Gain on Divestiture | |||||
Consideration to be received on sale of business | 350 | ||||
Net proceeds from divestiture of business | 261 | ||||
Gain on divestiture | 146 | ||||
Fiscal 2017 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 120 | 120 | |||
Charges Incurred | 100 | ||||
Remaining Expected Charges | 20 | 20 | |||
Restructuring reserves | 83 | 83 | |||
Fiscal 2016 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 168 | 168 | |||
Charges Incurred | 9 | 60 | |||
Remaining Expected Charges | 29 | 29 | |||
Restructuring reserves | 40 | 40 | 54 | ||
Fiscal 2016 Actions | Cumulative Charges Incurred | |||||
Restructuring Charges | |||||
Charges Incurred | 139 | ||||
Pre-Fiscal 2016 Actions | |||||
Restructuring Charges | |||||
Charges Incurred | (4) | 1 | |||
Restructuring reserves | 25 | 25 | $ 37 | ||
Transportation Solutions | |||||
Restructuring Charges | |||||
Charges Incurred | 33 | 4 | 57 | 19 | |
Transportation Solutions | Fiscal 2017 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 60 | 60 | |||
Charges Incurred | 55 | ||||
Remaining Expected Charges | 5 | 5 | |||
Transportation Solutions | Fiscal 2016 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 44 | 44 | |||
Remaining Expected Charges | 3 | 3 | |||
Transportation Solutions | Fiscal 2016 Actions | Cumulative Charges Incurred | |||||
Restructuring Charges | |||||
Charges Incurred | 41 | ||||
Industrial Solutions | |||||
Restructuring Charges | |||||
Charges Incurred | 19 | 14 | 39 | 23 | |
Industrial Solutions | Fiscal 2017 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 52 | 52 | |||
Charges Incurred | 38 | ||||
Remaining Expected Charges | 14 | 14 | |||
Industrial Solutions | Fiscal 2016 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 30 | 30 | |||
Remaining Expected Charges | 1 | 1 | |||
Industrial Solutions | Fiscal 2016 Actions | Cumulative Charges Incurred | |||||
Restructuring Charges | |||||
Charges Incurred | 29 | ||||
Communications Solutions | |||||
Restructuring Charges | |||||
Charges Incurred | 7 | $ 8 | 9 | $ 19 | |
Communications Solutions | Fiscal 2017 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 8 | 8 | |||
Charges Incurred | 7 | ||||
Remaining Expected Charges | 1 | 1 | |||
Communications Solutions | Fiscal 2016 Actions | |||||
Restructuring Charges | |||||
Total Expected Charges | 94 | 94 | |||
Remaining Expected Charges | $ 25 | 25 | |||
Communications Solutions | Fiscal 2016 Actions | Cumulative Charges Incurred | |||||
Restructuring Charges | |||||
Charges Incurred | $ 69 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 |
Inventories. | ||
Raw materials | $ 265 | $ 241 |
Work in progress | 524 | 504 |
Finished goods | 738 | 669 |
Inventoried costs on long-term contracts | 133 | 182 |
Inventories | $ 1,660 | $ 1,596 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2016 | |
Goodwill: | ||
Goodwill, beginning balance | $ 5,492 | |
Currency translation and other | (110) | |
Goodwill, ending balance | 5,382 | |
Goodwill adjustments for purchase price of acquisitions | (36) | |
Transportation Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 1,903 | |
Currency translation and other | (22) | |
Goodwill, ending balance | 1,881 | |
Accumulated impairment losses | 2,191 | $ 2,191 |
Industrial Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 3,005 | |
Currency translation and other | (82) | |
Goodwill, ending balance | 2,923 | |
Accumulated impairment losses | 669 | 669 |
Communications Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 584 | |
Currency translation and other | (6) | |
Goodwill, ending balance | 578 | |
Accumulated impairment losses | $ 1,514 | $ 1,514 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | $ 2,626 | $ 2,626 | $ 2,668 | ||
Accumulated Amortization | (858) | (858) | (789) | ||
Net Carrying Amount | 1,768 | 1,768 | 1,879 | ||
Finite-lived intangible assets, amortization expense | 41 | $ 34 | 83 | $ 68 | |
Aggregate amortization expense on intangible assets | |||||
Remainder of fiscal 2017 | 86 | 86 | |||
Fiscal 2,018 | 171 | 171 | |||
Fiscal 2,019 | 169 | 169 | |||
Fiscal 2,020 | 161 | 161 | |||
Fiscal 2,021 | 158 | 158 | |||
Fiscal 2,022 | 157 | 157 | |||
Thereafter | 866 | 866 | |||
Customer relationships | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | 1,309 | 1,309 | 1,332 | ||
Accumulated Amortization | (251) | (251) | (212) | ||
Net Carrying Amount | 1,058 | 1,058 | 1,120 | ||
Intellectual property | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | 1,281 | 1,281 | 1,300 | ||
Accumulated Amortization | (592) | (592) | (563) | ||
Net Carrying Amount | 689 | 689 | 737 | ||
Other | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Amount | 36 | 36 | 36 | ||
Accumulated Amortization | (15) | (15) | (14) | ||
Net Carrying Amount | $ 21 | $ 21 | $ 22 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 |
Debt | ||
Long-term debt | $ 3,073 | $ 3,739 |
Short-term debt | $ 879 | 331 |
Ownership percentage in TEGSA | 100.00% | |
Fair value of debt | $ 4,187 | 4,424 |
Commercial paper | ||
Debt | ||
Total principal debt | $ 168 | $ 330 |
Weighted-average interest rate | 1.18% | 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 | 6 Months Ended |
Mar. 31, 2017USD ($) | |
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 | $ 19 |
Minimum | Environmental matters | |
Loss Contingencies | |
Loss contingency, estimate of probable loss | 16 |
Maximum | Environmental matters | |
Loss Contingencies | |
Loss contingency, estimate of probable loss | $ 42 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 |
Guarantee Obligations: | ||
Accrued warranty claims | $ 47 | $ 48 |
Outstanding Letters of Credit, Letters of Guarantee, and Surety Bonds | ||
Guarantee Obligations: | ||
Guarantor obligations, maximum exposure | $ 269 |
Financial Instruments (Details)
Financial Instruments (Details) - Net investment hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | Sep. 30, 2016 | |
Financial Instruments | |||||
Notional amount of nonderivative instruments | $ 3,258 | $ 3,480 | |||
Foreign exchange gains (losses) recorded as currency translation | $ (78) | $ (54) | $ 144 | $ 1 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||||
Service cost | $ 3 | $ 2 | $ 6 | $ 4 |
Interest cost | 11 | 12 | 22 | 25 |
Expected return on plan assets | (14) | (14) | (27) | (29) |
Amortization of net actuarial loss | 10 | 10 | 20 | 20 |
Net periodic pension benefit cost | 10 | 10 | 21 | 20 |
Non-U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||||
Service cost | 13 | 12 | 26 | 24 |
Interest cost | 9 | 14 | 18 | 27 |
Expected return on plan assets | (17) | (17) | (35) | (35) |
Amortization of net actuarial loss | 10 | 9 | 21 | 18 |
Amortization of prior service credit | (1) | (2) | (3) | (3) |
Net periodic pension benefit cost | $ 14 | $ 16 | 27 | $ 31 |
Defined Benefit Plan Contributions | ||||
Defined benefit plan, contributions by employer | $ 16 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | Sep. 30, 2016 | |
Income Taxes | |||||
Income tax expense | $ 39 | $ 130 | $ 93 | $ 188 | |
Income tax benefit resulting from lapses of applicable statutes of limitations | 24 | 24 | |||
Income tax charge associated with the gain on the sale of Circuit Protection Devices | 42 | 42 | |||
Income tax benefit associated with intercompany transactions | 22 | ||||
Income tax benefit associated with intercompany transactions and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards | 52 | ||||
Income tax benefit recognized in connection with the sale of Circuit Protection Devices | $ 25 | ||||
Income tax penalties and interest accrued | 57 | 57 | $ 54 | ||
Income tax benefit related to interest and penalties | 2 | ||||
Pre-payment to IRS for pre-separation tax matters | 443 | ||||
Net indemnification reimbursements related to pre-separation tax matters | $ 303 | ||||
Unrecognized income tax benefits, maximum amount that could be resolved in next twelve months | $ 25 | $ 25 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
Earnings Per Share | ||||
Basic (in shares) | 356 | 364 | 356 | 375 |
Dilutive impact of share-based compensation arrangements (in shares) | 3 | 4 | 3 | 4 |
Diluted (in shares) | 359 | 368 | 359 | 379 |
Share options | ||||
Antidilutive shares excluded from computation of earnings per share | ||||
Antidilutive share options | 3 | 1 | 3 |
Equity (Details)
Equity (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2017USD ($)installmentSFr / shares$ / sharesshares | Mar. 31, 2017USD ($)installment$ / sharesshares | Mar. 31, 2017USD ($)installment$ / shares | Mar. 25, 2016$ / shares | Mar. 31, 2017USD ($)installment$ / sharesshares | Mar. 25, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | |
Equity | |||||||
Cancellation of treasury shares (in shares) | shares | 26 | 26 | |||||
Dividend or cash distribution approved (in currency per share) | (per share) | SFr 1.62 | $ 1.60 | |||||
Number of quarterly dividend installments | installment | 4 | 4 | 4 | 4 | |||
Cash distribution quarterly installment payable (in dollars per share) | $ / shares | SFr 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | |||
Cash dividend paid (in dollars per share) | $ / shares | $ 0.37 | $ 0.33 | $ 0.74 | $ 0.66 | |||
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | SFr 569 | $ 569 | $ 569 | $ 569 | $ 263 | ||
Number of common shares repurchased | shares | 3 | 40 | |||||
Amount repurchased | $ 205 | $ 2,415 | |||||
Amount available for repurchase, at end of period | SFr 897 | $ 897 | $ 897 | $ 897 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
Share Based Compensation Arrangements: | ||||||
Share-based compensation expense | $ 23 | $ 21 | $ 47 | $ 43 | ||
Shares available for issuance | 23 | 23 | 23 | |||
Increase in number of shares available under Stock and Incentive plan | 10 | |||||
Share Based Compensation Expenses Not Recognized | ||||||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 172 | $ 172 | $ 172 | |||
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 2 years 2 months 12 days | |||||
Share options | ||||||
Share Based Compensation Arrangements: | ||||||
Share options | 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 | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
Segment Data | ||||
Net sales | $ 3,227 | $ 2,952 | $ 6,290 | $ 5,785 |
Operating income | 473 | 535 | 959 | 933 |
Gain on divestiture | 146 | 146 | ||
Circuit Protection Devices | ||||
Segment Data | ||||
Gain on divestiture | 146 | |||
Transportation Solutions | ||||
Segment Data | ||||
Net sales | 1,755 | 1,608 | 3,430 | 3,115 |
Operating income | 300 | 289 | 643 | 550 |
Industrial Solutions | ||||
Segment Data | ||||
Net sales | 853 | 738 | 1,648 | 1,447 |
Operating income | 86 | 63 | 153 | 129 |
Communications Solutions | ||||
Segment Data | ||||
Net sales | 619 | 606 | 1,212 | 1,223 |
Operating income | $ 87 | $ 183 | $ 163 | $ 254 |
Tyco Electronics Group S.A. - O
Tyco Electronics Group S.A. - Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
Tyco Electronics Group S.A. | ||||
Ownership percentage in TEGSA | 100.00% | 100.00% | ||
Statement of Operations Detail: | ||||
Net sales | $ 3,227 | $ 2,952 | $ 6,290 | $ 5,785 |
Cost of sales | 2,119 | 1,990 | 4,117 | 3,878 |
Gross margin | 1,108 | 962 | 2,173 | 1,907 |
Selling, general, and administrative expenses, net | 412 | 367 | 784 | 707 |
Research, development, and engineering expenses | 162 | 156 | 320 | 318 |
Acquisition and integration costs | 2 | 3 | 4 | 8 |
Restructuring and other charges (credits), net | 59 | (99) | 106 | (59) |
Operating income | 473 | 535 | 959 | 933 |
Interest income | 6 | 4 | 11 | 10 |
Interest expense | (32) | (32) | (63) | (62) |
Other income (expense), net | (2) | 12 | (2) | 20 |
Income from continuing operations before income taxes | 445 | 519 | 905 | 901 |
Income tax expense | (39) | (130) | (93) | (188) |
Income from continuing operations | 406 | 389 | 812 | 713 |
Income (loss) from discontinued operations, net of income taxes | (1) | (9) | 2 | 20 |
Net Income | 405 | 380 | 814 | 733 |
Other comprehensive income (loss) | 114 | 14 | (42) | (76) |
Comprehensive income | 519 | 394 | 772 | 657 |
Consolidating Adjustments | ||||
Statement of Operations Detail: | ||||
Equity in net income of subsidiaries | (945) | (971) | (1,741) | (1,683) |
Equity in net income (loss) of subsidiaries of discontinued operations | (9) | (51) | (16) | (156) |
Income from continuing operations before income taxes | (954) | (1,022) | (1,757) | (1,839) |
Income from continuing operations | (954) | (1,022) | (1,757) | (1,839) |
Net Income | (954) | (1,022) | (1,757) | (1,839) |
Other comprehensive income (loss) | (220) | (43) | 111 | 133 |
Comprehensive income | (1,174) | (1,065) | (1,646) | (1,706) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Statement of Operations Detail: | ||||
Selling, general, and administrative expenses, net | 48 | 49 | 76 | 85 |
Operating income | (48) | (49) | (76) | (85) |
Equity in net income of subsidiaries | 462 | 445 | 902 | 806 |
Equity in net income (loss) of subsidiaries of discontinued operations | (1) | (9) | 2 | 20 |
Intercompany interest income (expense), net | (8) | (7) | (14) | (8) |
Income from continuing operations before income taxes | 405 | 380 | 814 | 733 |
Income from continuing operations | 405 | 380 | 814 | 733 |
Net Income | 405 | 380 | 814 | 733 |
Other comprehensive income (loss) | 114 | 14 | (42) | (76) |
Comprehensive income | 519 | 394 | 772 | 657 |
TEGSA | Consolidating Reportable entities | ||||
Statement of Operations Detail: | ||||
Selling, general, and administrative expenses, net | 18 | 65 | (70) | 37 |
Operating income | (18) | (65) | 70 | (37) |
Interest expense | (32) | (31) | (63) | (61) |
Equity in net income of subsidiaries | 483 | 526 | 839 | 877 |
Equity in net income (loss) of subsidiaries of discontinued operations | 10 | 60 | 14 | 136 |
Intercompany interest income (expense), net | 29 | 15 | 56 | 27 |
Income from continuing operations before income taxes | 472 | 505 | 916 | 942 |
Income from continuing operations | 472 | 505 | 916 | 942 |
Income (loss) from discontinued operations, net of income taxes | (11) | (69) | (12) | (116) |
Net Income | 461 | 436 | 904 | 826 |
Other comprehensive income (loss) | 114 | 14 | (42) | (76) |
Comprehensive income | 575 | 450 | 862 | 750 |
Intercompany transaction gains (losses) | (37) | (37) | ||
Other Subsidiaries | Consolidating Reportable entities | ||||
Statement of Operations Detail: | ||||
Net sales | 3,227 | 2,952 | 6,290 | 5,785 |
Cost of sales | 2,119 | 1,990 | 4,117 | 3,878 |
Gross margin | 1,108 | 962 | 2,173 | 1,907 |
Selling, general, and administrative expenses, net | 346 | 253 | 778 | 585 |
Research, development, and engineering expenses | 162 | 156 | 320 | 318 |
Acquisition and integration costs | 2 | 3 | 4 | 8 |
Restructuring and other charges (credits), net | 59 | (99) | 106 | (59) |
Operating income | 539 | 649 | 965 | 1,055 |
Interest income | 6 | 4 | 11 | 10 |
Interest expense | (1) | (1) | ||
Other income (expense), net | (2) | 12 | (2) | 20 |
Intercompany interest income (expense), net | (21) | (8) | (42) | (19) |
Income from continuing operations before income taxes | 522 | 656 | 932 | 1,065 |
Income tax expense | (39) | (130) | (93) | (188) |
Income from continuing operations | 483 | 526 | 839 | 877 |
Income (loss) from discontinued operations, net of income taxes | 10 | 60 | 14 | 136 |
Net Income | 493 | 586 | 853 | 1,013 |
Other comprehensive income (loss) | 106 | 29 | (69) | (57) |
Comprehensive income | $ 599 | $ 615 | $ 784 | $ 956 |
Tyco Electronics Group S.A. - B
Tyco Electronics Group S.A. - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 25, 2016 | Sep. 25, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 773 | $ 647 | $ 1,150 | $ 3,329 |
Accounts receivable, net | 2,244 | 2,046 | ||
Inventories | 1,660 | 1,596 | ||
Prepaid expenses and other current assets | 469 | 486 | ||
Total current assets | 5,146 | 4,775 | ||
Property, plant, and equipment, net | 3,046 | 3,052 | ||
Goodwill | 5,382 | 5,492 | ||
Intangible assets, net | 1,768 | 1,879 | ||
Deferred income taxes | 2,280 | 2,111 | ||
Other assets | 434 | 299 | ||
Total Assets | 18,056 | 17,608 | ||
Current liabilities: | ||||
Short-term debt | 879 | 331 | ||
Accounts payable | 1,226 | 1,090 | ||
Accrued and other current liabilities | 1,701 | 1,437 | ||
Deferred revenue | 129 | 208 | ||
Total current liabilities | 3,935 | 3,066 | ||
Long-term debt | 3,073 | 3,739 | ||
Long-term pension and postretirement liabilities | 1,474 | 1,502 | ||
Deferred income taxes | 197 | 207 | ||
Income taxes | 276 | 247 | ||
Other liabilities | 348 | 362 | ||
Total Liabilities | 9,303 | 9,123 | ||
Total Shareholders' Equity | 8,753 | 8,485 | 7,406 | 9,585 |
Total Liabilities and Shareholders' Equity | 18,056 | 17,608 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (1,665) | (1,399) | ||
Total current assets | (1,665) | (1,399) | ||
Investment in subsidiaries | (31,056) | (29,478) | ||
Intercompany loans receivable | (15,139) | (14,074) | ||
Total Assets | (47,860) | (44,951) | ||
Current liabilities: | ||||
Intercompany payables | (1,665) | (1,399) | ||
Total current liabilities | (1,665) | (1,399) | ||
Intercompany loans payable | (15,139) | (14,074) | ||
Total Liabilities | (16,804) | (15,473) | ||
Total Shareholders' Equity | (31,056) | (29,478) | ||
Total Liabilities and Shareholders' Equity | (47,860) | (44,951) | ||
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 25 | 37 | ||
Prepaid expenses and other current assets | 3 | 3 | ||
Total current assets | 28 | 40 | ||
Investment in subsidiaries | 10,937 | 10,053 | ||
Intercompany loans receivable | 2 | 22 | ||
Total Assets | 10,967 | 10,115 | ||
Current liabilities: | ||||
Accounts payable | 2 | 1 | ||
Accrued and other current liabilities | 573 | 266 | ||
Intercompany payables | 1,639 | 1,363 | ||
Total current liabilities | 2,214 | 1,630 | ||
Total Liabilities | 2,214 | 1,630 | ||
Total Shareholders' Equity | 8,753 | 8,485 | ||
Total Liabilities and Shareholders' Equity | 10,967 | 10,115 | ||
TEGSA | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 1,603 | 1,314 | ||
Prepaid expenses and other current assets | 31 | 17 | ||
Total current assets | 1,634 | 1,331 | ||
Investment in subsidiaries | 20,119 | 19,425 | ||
Intercompany loans receivable | 4,157 | 3,739 | ||
Other assets | 33 | 14 | ||
Total Assets | 25,943 | 24,509 | ||
Current liabilities: | ||||
Short-term debt | 878 | 330 | ||
Accrued and other current liabilities | 76 | 57 | ||
Total current liabilities | 954 | 387 | ||
Long-term debt | 3,071 | 3,737 | ||
Intercompany loans payable | 10,981 | 10,314 | ||
Other liabilities | 18 | |||
Total Liabilities | 15,006 | 14,456 | ||
Total Shareholders' Equity | 10,937 | 10,053 | ||
Total Liabilities and Shareholders' Equity | 25,943 | 24,509 | ||
Other Subsidiaries | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 773 | 647 | $ 1,150 | $ 3,329 |
Accounts receivable, net | 2,244 | 2,046 | ||
Inventories | 1,660 | 1,596 | ||
Intercompany receivables | 37 | 48 | ||
Prepaid expenses and other current assets | 435 | 466 | ||
Total current assets | 5,149 | 4,803 | ||
Property, plant, and equipment, net | 3,046 | 3,052 | ||
Goodwill | 5,382 | 5,492 | ||
Intangible assets, net | 1,768 | 1,879 | ||
Deferred income taxes | 2,280 | 2,111 | ||
Intercompany loans receivable | 10,980 | 10,313 | ||
Other assets | 401 | 285 | ||
Total Assets | 29,006 | 27,935 | ||
Current liabilities: | ||||
Short-term debt | 1 | 1 | ||
Accounts payable | 1,224 | 1,089 | ||
Accrued and other current liabilities | 1,052 | 1,114 | ||
Deferred revenue | 129 | 208 | ||
Intercompany payables | 26 | 36 | ||
Total current liabilities | 2,432 | 2,448 | ||
Long-term debt | 2 | 2 | ||
Intercompany loans payable | 4,158 | 3,760 | ||
Long-term pension and postretirement liabilities | 1,474 | 1,502 | ||
Deferred income taxes | 197 | 207 | ||
Income taxes | 276 | 247 | ||
Other liabilities | 348 | 344 | ||
Total Liabilities | 8,887 | 8,510 | ||
Total Shareholders' Equity | 20,119 | 19,425 | ||
Total Liabilities and Shareholders' Equity | $ 29,006 | $ 27,935 |
Tyco Electronics Group S.A. - C
Tyco Electronics Group S.A. - Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | $ 925 | $ 547 |
Net cash used in discontinued operating activities | (2) | |
Net cash provided by operating activities | 925 | 545 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (289) | (270) |
Proceeds from sale of property, plant, and equipment | 8 | 1 |
Acquisition of business, net of cash acquired | (6) | |
Proceeds from divestiture of business, net of cash retained by business sold | 261 | |
Other | (16) | 29 |
Net cash provided by (used in) investing activities | (297) | 15 |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in commercial paper | (162) | 150 |
Proceeds from issuance of debt | 89 | 350 |
Repayment of debt | (500) | |
Proceeds from exercise of share options | 64 | 61 |
Repurchase of common shares | (198) | (2,523) |
Payment of common share dividends to shareholders | (263) | (245) |
Other | (22) | (32) |
Net cash used in continuing financing activities | (492) | (2,739) |
Net cash provided by discontinued financing activities | 2 | |
Net cash used in financing activities | (492) | (2,737) |
Effect of currency translation on cash | (10) | (2) |
Net increase (decrease) in cash and cash equivalents | 126 | (2,179) |
Cash and cash equivalents at beginning of period | 647 | 3,329 |
Cash and cash equivalents at end of period | 773 | 1,150 |
Consolidating Adjustments | ||
Cash Flows From Investing Activities: | ||
Change in intercompany loans | 37 | 137 |
Net cash provided by (used in) investing activities | 37 | 137 |
Cash Flows From Financing Activities: | ||
Loan activity with parent | (37) | (137) |
Net cash used in continuing financing activities | (137) | |
Net cash used in financing activities | (37) | (137) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (119) | |
Net cash provided by operating activities | (86) | (119) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 45 | 358 |
Repurchase of common shares | (2,523) | |
Payment of common share dividends to shareholders | (264) | (248) |
Loan activity with parent | 305 | 2,532 |
Net cash used in continuing financing activities | 119 | |
Net cash used in financing activities | 86 | 119 |
TEGSA | ||
Cash Flows From Investing Activities: | ||
Internal Allocation of Proceeds from Divestiture of Discontinued Operations | (132) | |
TEGSA | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (98) | |
Net cash provided by operating activities | (2) | (98) |
Cash Flows From Investing Activities: | ||
Proceeds from divestiture of business, net of cash retained by business sold | 199 | |
Change in intercompany loans | (37) | (137) |
Other | (12) | (132) |
Net cash provided by (used in) investing activities | (49) | (70) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 124 | 173 |
Net increase (decrease) in commercial paper | (162) | 150 |
Proceeds from issuance of debt | 89 | 349 |
Repayment of debt | (500) | |
Other | (4) | |
Net cash used in continuing financing activities | 168 | |
Net cash used in financing activities | 51 | 168 |
Other Subsidiaries | ||
Cash Flows From Investing Activities: | ||
Internal Allocation of Proceeds from Divestiture of Discontinued Operations | 132 | |
Other Subsidiaries | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 764 | |
Net cash used in discontinued operating activities | (2) | |
Net cash provided by operating activities | 1,013 | 762 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (289) | (270) |
Proceeds from sale of property, plant, and equipment | 8 | 1 |
Acquisition of business, net of cash acquired | (6) | |
Proceeds from divestiture of business, net of cash retained by business sold | 62 | |
Other | (4) | 161 |
Net cash provided by (used in) investing activities | (285) | (52) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | (169) | (531) |
Proceeds from issuance of debt | 1 | |
Proceeds from exercise of share options | 64 | 61 |
Repurchase of common shares | (198) | |
Payment of common share dividends to shareholders | 1 | 3 |
Loan activity with parent | (268) | (2,395) |
Other | (22) | (28) |
Net cash used in continuing financing activities | (2,889) | |
Net cash provided by discontinued financing activities | 2 | |
Net cash used in financing activities | (592) | (2,887) |
Effect of currency translation on cash | (10) | (2) |
Net increase (decrease) in cash and cash equivalents | 126 | (2,179) |
Cash and cash equivalents at beginning of period | 647 | 3,329 |
Cash and cash equivalents at end of period | $ 773 | $ 1,150 |