Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 28, 2018 | Jan. 18, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | TE Connectivity Ltd. | |
Entity Central Index Key | 1,385,157 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 28, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-27 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 338,854,434 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 3,347 | $ 3,336 |
Cost of sales | 2,233 | 2,172 |
Gross margin | 1,114 | 1,164 |
Selling, general, and administrative expenses | 389 | 377 |
Research, development, and engineering expenses | 161 | 165 |
Acquisition and integration costs | 5 | 2 |
Restructuring and other charges, net | 75 | 34 |
Operating income | 484 | 586 |
Interest income | 5 | 4 |
Interest expense | (27) | (26) |
Other income (expense), net | (1) | 2 |
Income from continuing operations before income taxes | 461 | 566 |
Income tax expense | (78) | (599) |
Income (loss) from continuing operations | 383 | (33) |
Loss from discontinued operations, net of income taxes | (107) | (7) |
Net income (loss) | $ 276 | $ (40) |
Basic earnings (loss) per share: | ||
Income (loss) from continuing operations (in dollars per share) | $ 1.12 | $ (0.09) |
Loss from discontinued operations (in dollars per share) | (0.31) | (0.02) |
Net income (loss) (in dollars per share) | 0.81 | (0.11) |
Diluted earnings (loss) per share: | ||
Income (loss) from continuing operations (in dollars per share) | 1.11 | (0.09) |
Loss from discontinued operations (in dollars per share) | (0.31) | (0.02) |
Net income (loss) (in dollars per share) | $ 0.80 | $ (0.11) |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 342 | 352 |
Diluted (in shares) | 344 | 352 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income (loss) | $ 276 | $ (40) |
Other comprehensive income: | ||
Currency translation | 19 | 67 |
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 6 | 7 |
Gains on cash flow hedges, net of income taxes | 24 | 2 |
Other comprehensive income | 49 | 76 |
Comprehensive income | $ 325 | $ 36 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 28, 2018 | Sep. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 505 | $ 848 |
Accounts receivable, net of allowance for doubtful accounts of $26 and $22, respectively | 2,380 | 2,361 |
Inventories | 1,986 | 1,857 |
Prepaid expenses and other current assets | 507 | 661 |
Current assets held for sale | 472 | |
Total current assets | 5,378 | 6,199 |
Property, plant, and equipment, net | 3,550 | 3,497 |
Goodwill | 5,648 | 5,684 |
Intangible assets, net | 1,648 | 1,704 |
Deferred income taxes | 2,580 | 2,144 |
Other assets | 384 | 1,158 |
Total Assets | 19,188 | 20,386 |
Current liabilities: | ||
Short-term debt | 585 | 963 |
Accounts payable | 1,538 | 1,548 |
Accrued and other current liabilities | 1,348 | 1,711 |
Current liabilities held for sale | 188 | |
Total current liabilities | 3,471 | 4,410 |
Long-term debt | 3,382 | 3,037 |
Long-term pension and postretirement liabilities | 1,101 | 1,102 |
Deferred income taxes | 207 | 207 |
Income taxes | 335 | 312 |
Other liabilities | 456 | 487 |
Total Liabilities | 8,952 | 9,555 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Common shares, CHF 0.57 par value, 357,069,981 shares authorized and issued | 157 | 157 |
Accumulated earnings | 11,886 | 12,114 |
Treasury shares, at cost, 17,727,608 and 12,279,603 shares, respectively | (1,550) | (1,134) |
Accumulated other comprehensive loss | (257) | (306) |
Total Shareholders' Equity | 10,236 | 10,831 |
Total Liabilities and Shareholders' Equity | $ 19,188 | $ 20,386 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Dec. 28, 2018SFr / shares | Dec. 28, 2018USD ($)shares | Sep. 28, 2018SFr / shares | Sep. 28, 2018USD ($)shares |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ | $ 26 | $ 22 | ||
Common shares, par value (in currency per share) | SFr / shares | SFr 0.57 | SFr 0.57 | ||
Common shares, shares authorized | 357,069,981 | 357,069,981 | ||
Common shares, shares issued | 357,069,981 | 357,069,981 | ||
Treasury shares | 17,727,608 | 12,279,603 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Common Shares | Treasury Shares | Contributed Surplus | Accumulated Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Sep. 29, 2017 | $ 157 | $ (421) | $ 10,175 | $ (160) | $ 9,751 | |
Balance (in shares) at Sep. 29, 2017 | 357 | (5) | ||||
Increase (Decrease) in Equity: | ||||||
Net income (loss) | (40) | (40) | ||||
Other comprehensive income | 76 | 76 | ||||
Share-based compensation expense | $ 29 | 29 | ||||
Exercise of share options | $ 54 | 54 | ||||
Exercise of share options (in shares) | 1 | |||||
Restricted share award vestings and other activity | $ 92 | (29) | (88) | (25) | ||
Repurchase of common shares | $ (214) | $ (214) | ||||
Repurchase of common shares (in shares) | (2) | (2) | ||||
Balance at Dec. 29, 2017 | $ 157 | $ (489) | 10,047 | (84) | $ 9,631 | |
Balance (in shares) at Dec. 29, 2017 | 357 | (6) | ||||
Balance at Sep. 28, 2018 | $ 157 | $ (1,134) | 12,114 | (306) | 10,831 | |
Balance (in shares) at Sep. 28, 2018 | 357 | (12) | ||||
Increase (Decrease) in Equity: | ||||||
Adoption of ASU No. 2016-16 | ASU 2016-16 | (443) | (443) | ||||
Net income (loss) | 276 | 276 | ||||
Other comprehensive income | 49 | 49 | ||||
Share-based compensation expense | 23 | 23 | ||||
Exercise of share options | $ 7 | 7 | ||||
Restricted share award vestings and other activity | 72 | $ (23) | (61) | (12) | ||
Repurchase of common shares | $ (495) | $ (495) | ||||
Repurchase of common shares (in shares) | (6) | (6) | ||||
Balance at Dec. 28, 2018 | $ 157 | $ (1,550) | $ 11,886 | $ (257) | $ 10,236 | |
Balance (in shares) at Dec. 28, 2018 | 357 | (18) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 276 | $ (40) |
Loss from discontinued operations, net of income taxes | 107 | 7 |
Income (loss) from continuing operations | 383 | (33) |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 168 | 162 |
Deferred income taxes | (11) | 510 |
Provision for losses on accounts receivable and inventories | 23 | 17 |
Share-based compensation expense | 23 | 28 |
Other | 18 | (6) |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | ||
Accounts receivable, net | (26) | (139) |
Inventories | (119) | (177) |
Prepaid expenses and other current assets | 67 | (45) |
Accounts payable | (9) | 161 |
Accrued and other current liabilities | (190) | (239) |
Income taxes | 15 | 7 |
Other | (14) | 37 |
Net cash provided by continuing operating activities | 328 | 283 |
Net cash provided by (used in) discontinued operating activities | (31) | 67 |
Net cash provided by operating activities | 297 | 350 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (210) | (237) |
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation | 288 | |
Other | 4 | |
Net cash provided by (used in) continued investing activities | 82 | (237) |
Net cash used in discontinued investing activities | (2) | (4) |
Net cash provided by (used in) investing activities | 80 | (241) |
Cash Flows From Financing Activities: | ||
Net increase in commercial paper | 63 | 241 |
Proceeds from issuance of debt | 350 | 119 |
Repayment of debt | (441) | (708) |
Proceeds from exercise of share options | 7 | 54 |
Repurchase of common shares | (519) | (167) |
Payment of common share dividends to shareholders | (150) | (141) |
Transfers (to) from discontinued operations | (33) | 63 |
Other | (29) | (32) |
Net cash used in continuing financing activities | (752) | (571) |
Net cash provided by (used in) discontinued financing activities | 33 | (63) |
Net cash used in financing activities | (719) | (634) |
Effect of currency translation on cash | (1) | 11 |
Net decrease in cash, cash equivalents, and restricted cash | (343) | (514) |
Cash, cash equivalents, and restricted cash at beginning of period | 848 | 1,218 |
Cash, cash equivalents, and restricted cash at end of period | $ 505 | $ 704 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Dec. 28, 2018 | |
Basis of Presentation and Accounting Policies | |
Basis of Presentation and Accounting Policies | 1. Basis of Presentation and Accounting Policies 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. 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 28, 2018. Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2019 and fiscal 2018 are to our fiscal years ending September 27, 2019 and ended September 28, 2018, respectively. Revenue Recognition We account for revenue in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , which introduced a single, comprehensive, five-step revenue recognition model. Our revenues are generated principally from the sale of our products. Revenue is recognized as performance obligations under the terms of a contract, such as a purchase order with a customer, are satisfied; generally this occurs with the transfer of control. We transfer control and recognize revenue when we ship product to our customers, the customers accept and have legal title for the product, and we have a right to payment for such product. Revenue is measured as the amount of consideration that we expect to receive in exchange for those products and excludes taxes assessed by governmental authorities and collected from customers concurrent with the sale of products. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. Since we typically invoice our customers when we satisfy our performance obligations, we do not have material contract assets or contract liabilities. Our credit terms are customary and do not contain significant financing components that extend beyond one year of fulfillment of performance obligations. We apply the practical expedient of ASC 606 with respect to financing components and do not evaluate contracts in which payment is due within one year of satisfaction of the related performance obligation. Since our performance obligations to deliver products are part of contracts that generally have original durations of one year or less, we have elected to use the optional exemption to not disclose the aggregate amount of transaction prices associated with unsatisfied or partially satisfied performance obligations as of December 28, 2018. See Note 15 for net sales disaggregated by industry end market and geographic region which is summarized by segment and that we consider meaningful to depict the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We do not account for these warranties as separate performance obligations. Although products are generally sold at fixed prices, certain distributors and customers receive incentives or awards, such as sales rebates, return allowances, scrap allowances, and other rights, which are accounted for as variable consideration. We estimate these amounts in the same period revenue is recognized based on the expected value to be provided to customers and reduce revenue accordingly. Our estimates of variable consideration and ultimate determination of the estimated amounts to include in the transaction price are based primarily on our assessment of anticipated performance and historical and forecasted information that is reasonably available to us. Recently Adopted Accounting Pronouncements In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-12, an update to ASC 815, Derivatives and Hedging . The update improves and simplifies hedge accounting and related disclosures. We elected to early adopt this update, which did not have a material impact on our Condensed Consolidated Financial Statements, in the quarter ended December 28, 2018. In October 2016, the FASB issued ASU No. 2016-16, an update to ASC 740, Income Taxes . This guidance requires the recognition of the income tax consequences of intra-entity transfers of assets other than inventory in the period in which the transfer occurs. The update was adopted on a modified retrospective basis in the quarter ended December 28, 2018 and resulted in a $443 million cumulative-effect adjustment to beginning accumulated earnings, which represented the net reversal of all balances associated with deferred tax impacts of intra-entity transfers of assets other than inventory. This included a decrease in other assets of $798 million, an increase in deferred tax assets of $418 million, and a decrease in prepaid expenses and other current assets of $63 million on the Condensed Consolidated Balance Sheet. In May 2014, the FASB issued ASU No. 2014-09 which codified ASC 606, Revenue from Contracts with Customers . This guidance supersedes ASC 605, Revenue Recognition , and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. We adopted ASC 606, as amended, in the quarter ended December 28, 2018 using a modified retrospective approach. Prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for those periods. Transition impacts, which relate primarily to incentive compensation arrangements, were not material to our results of operations or financial position. Because the impact of adoption was immaterial, we have not recorded a cumulative-effect adjustment to beginning accumulated earnings. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 3 Months Ended |
Dec. 28, 2018 | |
Restructuring and Other Charges, Net | |
Restructuring and Other Charges, Net | 2. Restructuring and Other Charges, Net Net restructuring charges by segment were as follows: For the December 28, December 29, (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Restructuring charges, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Activity in our restructuring reserves was as follows: Balance at Charges Changes Cash Non-Cash Currency Balance at (in millions) Fiscal 2019 Actions: Employee severance $ — $ $ — $ ) $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2018 Actions: Employee severance — ) — ) Facility and other exit costs — ) — — Property, plant and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2018 Actions: Employee severance ) ) — ) Facility and other exit costs — — ) — — — Property, plant and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2019 Actions During fiscal 2019, we initiated a restructuring program associated with footprint consolidation and structural improvements impacting all segments. In connection with this program, during the quarter ended December 28, 2018, we recorded restructuring charges of $67 million. We expect to complete all restructuring actions commenced during the quarter ended December 28, 2018 by the end of fiscal 2020 and to incur additional charges of approximately $10 million primarily in the Industrial Solutions segment. Fiscal 2018 Actions During fiscal 2018, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions and Transportation Solutions segments. In connection with this program, during the quarters ended December 28, 2018 and December 29, 2017, we recorded restructuring charges of $3 million and $22 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2018 by the end of fiscal 2020 and to incur additional charges of approximately $10 million primarily in the Industrial Solutions segment. Pre-Fiscal 2018 Actions Prior to fiscal 2018, we initiated a restructuring program associated with footprint consolidation related to recent acquisitions and structural improvements impacting all segments. Also prior to fiscal 2018, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures in the Communications Solutions segment. During the quarters ended December 28, 2018 and December 29, 2017, we recorded net restructuring charges of $5 million and $12 million, respectively, related to pre-fiscal 2018 actions. We expect additional charges related to pre-fiscal 2018 actions to be insignificant. Total Restructuring Reserves Restructuring reserves included on the Condensed Consolidated Balance Sheets were as follows: December 28, September 28, (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 28, 2018 | |
Discontinued Operations | |
Discontinued Operations | 3. Discontinued Operations During the quarter ended December 28, 2018, we sold our Subsea Communications ("SubCom") business for net cash proceeds of $288 million and incurred a pre-tax loss on sale of $96 million, related primarily to the recognition of cumulative translation adjustment losses of $67 million. The transaction is subject to a final working capital adjustment. The SubCom business met the held for sale and discontinued operations criteria and was reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the SubCom business was included in the Communications Solutions segment. In connection with the sale, we contractually agreed to continue to honor performance guarantees and letters of credit related to the SubCom business' projects that existed as of the date of sale. These guarantees have a combined value of approximately $1.7 billion and are expected to expire at various dates through fiscal 2025; however, the majority are expected to expire within two years. At the time of sale, we determined that the fair value of these guarantees was $12 million, which we recognized by a charge to pre-tax loss on sale. Also, under the terms of the definitive agreement, we are required to issue up to $300 million of new performance guarantees, subject to certain limitations, for projects entered into by the SubCom business following the sale for a period of up to three years. During the quarter ended December 28, 2018, we issued a guarantee of $70 million for a new project. We have contractual recourse against the SubCom business if we are required to perform on any SubCom guarantees; however, based on historical experience, we do not anticipate having to perform. The following table presents the summarized components of loss from discontinued operations, net of income taxes, for the SubCom business and prior divestitures: For the December 28, December 29, (in millions) Net sales $ $ Cost of sales ) ) Selling, general, and administrative expenses ) ) Research, development, and engineering expenses ) ) Restructuring and other charges, net ) — ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax loss from discontinued operations ) ) Pre-tax loss on sale of discontinued operations ) — Income tax (expense) benefit ) ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations, net of income taxes $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents balance sheet information for assets and liabilities held for sale at September 28, 2018; there were no such balances at December 28, 2018: September 28, (in millions) Accounts receivable, net $ Inventories Other current assets Property, plant, and equipment, net Other assets ​ ​ ​ ​ ​ Total assets held for sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable $ Accrued and other current liabilities Deferred revenue Other liabilities ​ ​ ​ ​ ​ Total liabilities held for sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Inventories
Inventories | 3 Months Ended |
Dec. 28, 2018 | |
Inventories | |
Inventories | 4. Inventories Inventories consisted of the following: December 28, September 28, (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill
Goodwill | 3 Months Ended |
Dec. 28, 2018 | |
Goodwill | |
Goodwill | 5. Goodwill The changes in the carrying amount of goodwill by segment were as follows: Transportation Industrial Communications Total (in millions) September 28, 2018 (1) $ $ $ $ Currency translation and other ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 28, 2018 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At December 28, 2018 and September 28, 2018, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $489 million, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Dec. 28, 2018 | |
Intangible Assets, Net | |
Intangible Assets, Net | 6. Intangible Assets, Net Intangible assets consisted of the following: December 28, 2018 September 28, 2018 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ $ ) $ $ $ ) $ Intellectual property ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible asset amortization expense was $45 million for the quarters ended December 28, 2018 and December 29, 2017. At December 28, 2018, the aggregate amortization expense on intangible assets is expected to be as follows: (in millions) Remainder of fiscal 2019 $ Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 3 Months Ended |
Dec. 28, 2018 | |
Debt | |
Debt | 7. Debt During November 2018, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, issued $350 million aggregate principal amount of senior floating rate notes due June 2020. The notes bear interest at a rate of three-month London Interbank Offered Rate ("LIBOR") plus 0.45% per year. The notes are TEGSA's unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur. During December 2018, TEGSA repaid, at maturity, $325 million 2.375% senior notes due 2018. TEGSA has a five-year unsecured senior revolving credit facility ("Credit Facility") with total commitments of $1,500 million. The Credit Facility was amended in November 2018 primarily to extend the maturity date from December 2020 to November 2023. The amended Credit Facility contains provisions that allow for incremental commitments of up to $500 million, an option to temporarily increase the financial ratio covenant following a qualified acquisition, and borrowings in designated currencies. TEGSA had no borrowings under the Credit Facility at December 28, 2018 or September 28, 2018. As of December 28, 2018, TEGSA had $333 million of commercial paper outstanding at a weighted-average interest rate of 2.94%. TEGSA had $270 million of commercial paper outstanding at a weighted-average interest rate of 2.35% at September 28, 2018. The fair value of our debt, based on indicative valuations, was approximately $4,091 million and $4,149 million at December 28, 2018 and September 28, 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 28, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Legal Proceedings In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of December 28, 2018, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $15 million to $44 million, and we accrued $17 million as the probable loss, which was the best estimate within this range. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows. Guarantees In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows. At December 28, 2018, we had outstanding letters of credit, letters of guarantee, and surety bonds of $286 million. We sold our SubCom business during the quarter ended December 28, 2018. In connection with the sale, we contractually agreed to honor certain performance guarantees and letters of credit related to the SubCom business. See Note 3 for additional information regarding these guarantees and the divestiture of the SubCom business. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Dec. 28, 2018 | |
Financial Instruments | |
Financial Instruments | 9. Financial Instruments Foreign Currency Exchange Rate Risk During fiscal 2015, we entered into cross-currency swap contracts with an aggregate notional value of €1,000 million to reduce our exposure to foreign currency exchange rate risk associated with certain intercompany loans. Under the terms of these contracts, which have been designated as cash flow hedges, we make interest payments in euros at 3.50% per annum and receive interest in U.S. dollars at a weighted-average rate of 5.33% per annum. Upon maturity of these contracts in fiscal 2022, we will pay the notional value of the contracts in euros and receive U.S. dollars from our counterparties. In connection with the cross-currency swap contracts, we are required to post cash collateral with our counterparties. At December 28, 2018 and September 28, 2018, our cross-currency swap contracts were in liability positions of $64 million and $100 million, respectively, and were recorded in other liabilities on the Condensed Consolidated Balance Sheets. At December 28, 2018 and September 28, 2018, collateral paid to our counterparties approximated the derivative positions and was recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. The impacts of our cross-currency swap contracts were as follows: For the December 28, December 29, (in millions) Gains (losses) recorded in other comprehensive income (loss) $ $ ) Gains (losses) excluded from the hedging relationship (1) ) (1) Gains and losses excluded from the hedging relationship are recognized prospectively in selling, general, and administrative expenses and are offset by losses and gains generated as a result of re-measuring certain intercompany loans to the U.S. dollar. Hedge of Net Investment During fiscal 2019, we expanded our cross-currency swap program to hedge our net investment in certain foreign operations. The aggregate notional value of this program was $952 million at December 28, 2018. Under the terms of these contracts, we receive interest in U.S. dollars at a weighted-average rate of 3.06% per annum and pay no interest. Upon maturity of these contracts at various dates through fiscal 2022, we will pay the notional value of the contracts in the designated foreign currency and receive U.S. dollars from our counterparties. In addition to the cross-currency swap program, we hedge our net investment in certain foreign operations using intercompany loans and external borrowings denominated in the same currencies. The aggregate notional value of these hedges was $3,189 million and $4,064 million at December 28, 2018 and September 28, 2018, respectively. The impacts of our hedging programs were as follows: For the December 28, December 29, (in millions) Foreign currency exchange gains (losses) on intercompany loans and external borrowings (1) $ $ ) Losses on cross-currency swaps designated as hedge of net investment (2) ) — (1) Foreign currency exchange gains and losses on intercompany loans and external borrowings are recorded as currency translation, a component of accumulated other comprehensive income (loss), and are offset by changes attributable to the translation of the net investment. (2) Gains and losses on cross-currency swaps designated as hedge of net investment are recorded as currency translation. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 28, 2018 | |
Retirement Plans | |
Retirement Plans | 10. Retirement Plans The net periodic pension benefit cost for all non-U.S. and U.S. defined benefit pension plans was as follows: Non-U.S. Plans U.S. Plans For the For the December 28, December 29, December 28, December 29, (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 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The components of net periodic pension benefit cost other than service cost are included in net other income (expense) on the Condensed Consolidated Statements of Operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2018 | |
Income Taxes | |
Income Taxes | 11. Income Taxes We recorded income tax expense of $78 million and $599 million for the quarters ended December 28, 2018 and December 29, 2017, respectively. The income tax expense for the quarter ended December 29, 2017 included $567 million of income tax expense related to the tax impacts of the Tax Cuts and Jobs Act (the "Act") and a $61 million net income tax benefit related to certain legal entity restructurings. During the quarter ended December 29, 2017, the period of enactment of the Act, we were required to revalue our U.S. federal deferred tax assets and liabilities at a U.S. federal corporate tax rate of 21% and we recorded income tax expense of $567 million primarily in connection with the write-down of our U.S. federal deferred tax asset for net operating loss and interest carryforwards. Included in the expense of $567 million was an income tax benefit of $34 million related to the reduction in the existing valuation allowance recorded against certain U.S. federal tax credit carryforwards. We record accrued interest and penalties related to uncertain tax positions as part of income tax expense. As of December 28, 2018 and September 28, 2018, we had $63 million and $60 million, respectively, of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheets, recorded primarily in income taxes. Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $125 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months. We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of December 28, 2018. Tax Sharing Agreement Under a Tax Sharing Agreement, we, Tyco International plc ("Tyco International"), and Covidien plc ("Covidien") share 31%, 27%, and 42%, respectively, of income tax liabilities that arise from adjustments made by tax authorities to the collective income tax returns for periods prior to and including June 29, 2007. Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. We have substantially settled all U.S. federal income tax matters with the IRS for periods covered under the Tax Sharing Agreement. 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. As a result of subsequent transactions, Tyco International and Covidien now operate as part of Johnson Controls International plc and Medtronic plc, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Dec. 28, 2018 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | 12. Earnings (Loss) Per Share The weighted-average number of shares outstanding used in the computations of basic and diluted earnings (loss) per share were as follows: For the December 28, December 29, (in millions) Basic Dilutive impact of share-based compensation arrangements — ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ There were one million share options that were not included in the computation of diluted earnings (loss) per share for the quarters ended December 28, 2018 and December 29, 2017 because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive. For the quarter ended December 29, 2017, there were three million nonvested share awards and options outstanding with underlying exercise prices less than the average market prices of our common shares; however, these were excluded from the calculation of diluted loss per share as inclusion would be antidilutive as a result of our loss during the period. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 28, 2018 | |
Shareholders' Equity | |
Shareholders' Equity | 13. Shareholders' Equity Dividends We paid cash dividends to shareholders of $0.44 and $0.40 per share during the quarters ended December 28, 2018 and December 29, 2017, respectively. Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to shareholders' equity. At December 28, 2018 and September 28, 2018, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $149 million and $303 million, respectively. Share Repurchase Program During the quarter ended December 28, 2018, our board of directors authorized an increase of $1.5 billion in the share repurchase program. Common shares repurchased under the share repurchase program were as follows: For the December 28, December 29, (in millions) Number of common shares repurchased Repurchase value $ $ At December 28, 2018, we had $2.0 billion of availability remaining under our share repurchase authorization. |
Share Plans
Share Plans | 3 Months Ended |
Dec. 28, 2018 | |
Share Plans | |
Share Plans | 14. Share Plans Share-based compensation expense, which was included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was as follows: For the December 28, December 29, (in millions) Share-based compensation expense $ $ As of December 28, 2018, there was $179 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.3 years. During the quarter ended December 28, 2018, we granted the following share-based awards as part of our annual incentive plan grant: Shares Grant-Date (in millions) Share options $ Restricted share awards Performance share awards As of December 28, 2018, we had 17 million shares available for issuance under our stock and incentive plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, amended and restated as of March 8, 2017, was the primary plan. Share-Based Compensation Assumptions The 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 and Geographic Data
Segment and Geographic Data | 3 Months Ended |
Dec. 28, 2018 | |
Segment and Geographic Data | |
Segment and Geographic Data | 15. Segment and Geographic Data Net sales by segment (1) and industry end market (2) were as follows: For the December 28, December 29, (in millions) Transportation Solutions: Automotive $ $ Commercial transportation Sensors ​ ​ ​ ​ ​ ​ ​ ​ Total Transportation Solutions ​ ​ ​ ​ ​ ​ ​ ​ Industrial Solutions: Industrial equipment Aerospace, defense, oil, and gas Energy ​ ​ ​ ​ ​ ​ ​ ​ Total Industrial Solutions ​ ​ ​ ​ ​ ​ ​ ​ Communications Solutions: Data and devices Appliances ​ ​ ​ ​ ​ ​ ​ ​ Total Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. (2) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary. Net sales by geographic region (1) and segment were as follows: For the December 28, December 29, (in millions) Europe/Middle East/Africa ("EMEA"): Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total EMEA ​ ​ ​ ​ ​ ​ ​ ​ Asia–Pacific: Transportation Solutions Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total Asia–Pacific ​ ​ ​ ​ ​ ​ ​ ​ Americas: Transportation Solutions Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total Americas ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Net sales to external customers are attributed to individual countries based on the legal entity that records the sale. Operating income by segment was as follows: For the December 28, December 29, (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Tyco Electronics Group S.A.
Tyco Electronics Group S.A. | 3 Months Ended |
Dec. 28, 2018 | |
Tyco Electronics Group S.A. | |
Tyco Electronics Group S.A. | 16. Tyco Electronics Group S.A. Tyco Electronics Group S.A. ("TEGSA"), a Luxembourg company and our 100%-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries. TEGSA is the obligor under our senior notes, commercial paper, and Credit Facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The following tables present condensed consolidating financial information for TE Connectivity Ltd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting. Condensed Consolidating Statement of Operations (unaudited) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net (1) ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other expense, net — — ) — ) Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Loss from discontinued operations, net of income taxes — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include gains of $110 million related to intercompany transactions. These gains are offset by corresponding losses recorded by other subsidiaries. Condensed Consolidating Statement of Operations (unaudited) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes ) ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) ) Loss from discontinued operations, net of income taxes — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet (unaudited) TE TEGSA Other Consolidating Total (in millions) Assets Current assets: Cash and cash equivalents $ — $ — $ $ — $ Accounts receivable, net — — — Inventories — — — Intercompany receivables ) — Prepaid expenses and other current assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-term debt $ — $ $ $ — $ Accounts payable — — Accrued and other current liabilities — 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 — Current assets held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Other assets — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-term debt $ — $ $ $ — $ Accounts payable — — Accrued and other current liabilities — Intercompany payables — ) — Current liabilities held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt — — Intercompany loans payable — ) — Long-term pension and postretirement liabilities — — — Deferred income taxes — — — Income taxes — — — Other liabilities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 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) 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 divestiture of discontinued operation, net of cash retained by sold operation — ) — Change in intercompany loans — ) — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — 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 ) — — — ) Transfer to discontinued operations — — ) — ) 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, cash equivalents, and restricted cash — — ) — ) Cash, cash equivalents, and restricted cash at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash, cash equivalents, and restricted cash 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 (1) $ ) $ ) $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Change in intercompany loans — — ) — Intercompany distribution receipts (1) — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) — ) — — Net increase in commercial paper — — — 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 ) — — ) Transfer from discontinued operations — — — Intercompany distributions (1) — — ) — Loan activity with parent — ) — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — — Net decrease in cash, cash equivalents, and restricted cash — — ) — ) Cash, cash equivalents, and restricted cash at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash, cash equivalents, and restricted cash at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2018, other subsidiaries made distributions to TEGSA in the amount of $30 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies | 3 Months Ended |
Dec. 28, 2018 | |
Basis of Presentation and Accounting Policies | |
Revenue Recognition | Revenue Recognition We account for revenue in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , which introduced a single, comprehensive, five-step revenue recognition model. Our revenues are generated principally from the sale of our products. Revenue is recognized as performance obligations under the terms of a contract, such as a purchase order with a customer, are satisfied; generally this occurs with the transfer of control. We transfer control and recognize revenue when we ship product to our customers, the customers accept and have legal title for the product, and we have a right to payment for such product. Revenue is measured as the amount of consideration that we expect to receive in exchange for those products and excludes taxes assessed by governmental authorities and collected from customers concurrent with the sale of products. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. Since we typically invoice our customers when we satisfy our performance obligations, we do not have material contract assets or contract liabilities. Our credit terms are customary and do not contain significant financing components that extend beyond one year of fulfillment of performance obligations. We apply the practical expedient of ASC 606 with respect to financing components and do not evaluate contracts in which payment is due within one year of satisfaction of the related performance obligation. Since our performance obligations to deliver products are part of contracts that generally have original durations of one year or less, we have elected to use the optional exemption to not disclose the aggregate amount of transaction prices associated with unsatisfied or partially satisfied performance obligations as of December 28, 2018. See Note 15 for net sales disaggregated by industry end market and geographic region which is summarized by segment and that we consider meaningful to depict the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors. We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We do not account for these warranties as separate performance obligations. Although products are generally sold at fixed prices, certain distributors and customers receive incentives or awards, such as sales rebates, return allowances, scrap allowances, and other rights, which are accounted for as variable consideration. We estimate these amounts in the same period revenue is recognized based on the expected value to be provided to customers and reduce revenue accordingly. Our estimates of variable consideration and ultimate determination of the estimated amounts to include in the transaction price are based primarily on our assessment of anticipated performance and historical and forecasted information that is reasonably available to us. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-12, an update to ASC 815, Derivatives and Hedging . The update improves and simplifies hedge accounting and related disclosures. We elected to early adopt this update, which did not have a material impact on our Condensed Consolidated Financial Statements, in the quarter ended December 28, 2018. In October 2016, the FASB issued ASU No. 2016-16, an update to ASC 740, Income Taxes . This guidance requires the recognition of the income tax consequences of intra-entity transfers of assets other than inventory in the period in which the transfer occurs. The update was adopted on a modified retrospective basis in the quarter ended December 28, 2018 and resulted in a $443 million cumulative-effect adjustment to beginning accumulated earnings, which represented the net reversal of all balances associated with deferred tax impacts of intra-entity transfers of assets other than inventory. This included a decrease in other assets of $798 million, an increase in deferred tax assets of $418 million, and a decrease in prepaid expenses and other current assets of $63 million on the Condensed Consolidated Balance Sheet. In May 2014, the FASB issued ASU No. 2014-09 which codified ASC 606, Revenue from Contracts with Customers . This guidance supersedes ASC 605, Revenue Recognition , and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. We adopted ASC 606, as amended, in the quarter ended December 28, 2018 using a modified retrospective approach. Prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for those periods. Transition impacts, which relate primarily to incentive compensation arrangements, were not material to our results of operations or financial position. Because the impact of adoption was immaterial, we have not recorded a cumulative-effect adjustment to beginning accumulated earnings. |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Restructuring and Other Charges, Net | |
Net restructuring charges by segment | For the December 28, December 29, (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 2019 Actions: Employee severance $ — $ $ — $ ) $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal 2018 Actions: Employee severance — ) — ) Facility and other exit costs — ) — — Property, plant and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-Fiscal 2018 Actions: Employee severance ) ) — ) Facility and other exit costs — — ) — — — Property, plant and equipment — — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Activity $ $ $ ) $ ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring reserves included on Condensed Consolidated Balance Sheets | December 28, September 28, (in millions) Accrued and other current liabilities $ $ Other liabilities ​ ​ ​ ​ ​ ​ ​ ​ Restructuring reserves $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Discontinued Operations | |
Schedule of components of income (loss) from discontinued operations, net of income taxes and balance sheet information for assets and liabilities held for sale | For the December 28, December 29, (in millions) Net sales $ $ Cost of sales ) ) Selling, general, and administrative expenses ) ) Research, development, and engineering expenses ) ) Restructuring and other charges, net ) — ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax loss from discontinued operations ) ) Pre-tax loss on sale of discontinued operations ) — Income tax (expense) benefit ) ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations, net of income taxes $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents balance sheet information for assets and liabilities held for sale at September 28, 2018; there were no such balances at December 28, 2018: September 28, (in millions) Accounts receivable, net $ Inventories Other current assets Property, plant, and equipment, net Other assets ​ ​ ​ ​ ​ Total assets held for sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable $ Accrued and other current liabilities Deferred revenue Other liabilities ​ ​ ​ ​ ​ Total liabilities held for sale $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Inventories | |
Schedule of inventories | December 28, September 28, (in millions) Raw materials $ $ Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Goodwill | |
Changes in the carrying amount of goodwill by segment | Transportation Industrial Communications Total (in millions) September 28, 2018 (1) $ $ $ $ Currency translation and other ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 28, 2018 (1) $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) At December 28, 2018 and September 28, 2018, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $489 million, respectively. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Intangible Assets, Net | |
Schedule of finite-lived intangible assets | December 28, 2018 September 28, 2018 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 2019 $ Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Cash flow hedges | |
Schedule of impacts of hedging program | For the December 28, December 29, (in millions) Gains (losses) recorded in other comprehensive income (loss) $ $ ) Gains (losses) excluded from the hedging relationship (1) ) (1) Gains and losses excluded from the hedging relationship are recognized prospectively in selling, general, and administrative expenses and are offset by losses and gains generated as a result of re-measuring certain intercompany loans to the U.S. dollar. |
Net investment hedges | |
Schedule of impacts of hedging program | For the December 28, December 29, (in millions) Foreign currency exchange gains (losses) on intercompany loans and external borrowings (1) $ $ ) Losses on cross-currency swaps designated as hedge of net investment (2) ) — (1) Foreign currency exchange gains and losses on intercompany loans and external borrowings are recorded as currency translation, a component of accumulated other comprehensive income (loss), and are offset by changes attributable to the translation of the net investment. (2) Gains and losses on cross-currency swaps designated as hedge of net investment are recorded as currency translation. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Retirement Plans | |
Net periodic pension benefit cost | Non-U.S. Plans U.S. Plans For the For the December 28, December 29, December 28, December 29, (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 (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Earnings (Loss) Per Share | |
Schedule of weighted-average shares outstanding, basic and diluted | For the December 28, December 29, (in millions) Basic Dilutive impact of share-based compensation arrangements — ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Shareholders' Equity | |
Schedule of common shares repurchased | For the December 28, December 29, (in millions) Number of common shares repurchased Repurchase value $ $ |
Share Plans (Tables)
Share Plans (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Share Plans | |
Share-based compensation expense | For the December 28, December 29, (in millions) Share-based compensation expense $ $ |
Summary of share-based award activity | During the quarter ended December 28, 2018, we granted the following share-based awards as part of our annual incentive plan grant: Shares Grant-Date (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 and Geographic Data (Ta
Segment and Geographic Data (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Segment and Geographic Data | |
Schedule of net sales by segment | Net sales by segment (1) and industry end market (2) were as follows: For the December 28, December 29, (in millions) Transportation Solutions: Automotive $ $ Commercial transportation Sensors ​ ​ ​ ​ ​ ​ ​ ​ Total Transportation Solutions ​ ​ ​ ​ ​ ​ ​ ​ Industrial Solutions: Industrial equipment Aerospace, defense, oil, and gas Energy ​ ​ ​ ​ ​ ​ ​ ​ Total Industrial Solutions ​ ​ ​ ​ ​ ​ ​ ​ Communications Solutions: Data and devices Appliances ​ ​ ​ ​ ​ ​ ​ ​ Total Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Intersegment sales were not material and were recorded at selling prices that approximated market prices. (2) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary. |
Schedule of net sales by geographic region and segment | Net sales by geographic region (1) and segment were as follows: For the December 28, December 29, (in millions) Europe/Middle East/Africa ("EMEA"): Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total EMEA ​ ​ ​ ​ ​ ​ ​ ​ Asia–Pacific: Transportation Solutions Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total Asia–Pacific ​ ​ ​ ​ ​ ​ ​ ​ Americas: Transportation Solutions Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total Americas ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Net sales to external customers are attributed to individual countries based on the legal entity that records the sale. |
Schedule of operating income by segment | For the December 28, December 29, (in millions) Transportation Solutions $ $ Industrial Solutions Communications Solutions ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Tyco Electronics Group S.A. (Ta
Tyco Electronics Group S.A. (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Tyco Electronics Group S.A. | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (unaudited) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net (1) ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other expense, net — — ) — ) Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Loss from discontinued operations, net of income taxes — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) TEGSA selling, general, and administrative expenses include gains of $110 million related to intercompany transactions. These gains are offset by corresponding losses recorded by other subsidiaries. Condensed Consolidating Statement of Operations (unaudited) TE TEGSA Other Consolidating Total (in millions) Net sales $ — $ — $ $ — $ Cost of sales — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin — — — Selling, general, and administrative expenses, net ) — Research, development, and engineering expenses — — — Acquisition and integration costs — — — Restructuring and other charges, net — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) — Interest income — — — Interest expense — ) — — ) Other income, net — — — Equity in net income of subsidiaries — ) — Equity in net loss of subsidiaries of discontinued operations ) ) — — Intercompany interest income (expense), net ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes ) ) Income tax expense — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) ) Loss from discontinued operations, net of income taxes — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) Other comprehensive income ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet (unaudited) TE TEGSA Other Consolidating Total (in millions) Assets Current assets: Cash and cash equivalents $ — $ — $ $ — $ Accounts receivable, net — — — Inventories — — — Intercompany receivables ) — Prepaid expenses and other current assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-term debt $ — $ $ $ — $ Accounts payable — — Accrued and other current liabilities — 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 — Current assets held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant, and equipment, net — — — Goodwill — — — Intangible assets, net — — — Deferred income taxes — — — Investment in subsidiaries — ) — Intercompany loans receivable ) — Other assets — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity Current liabilities: Short-term debt $ — $ $ $ — $ Accounts payable — — Accrued and other current liabilities — Intercompany payables — ) — Current liabilities held for sale — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt — — Intercompany loans payable — ) — Long-term pension and postretirement liabilities — — — Deferred income taxes — — — Income taxes — — — Other liabilities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 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) 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 divestiture of discontinued operation, net of cash retained by sold operation — ) — Change in intercompany loans — ) — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (1) ) — — 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 ) — — — ) Transfer to discontinued operations — — ) — ) 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, cash equivalents, and restricted cash — — ) — ) Cash, cash equivalents, and restricted cash at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash, cash equivalents, and restricted cash 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 (1) $ ) $ ) $ $ ) $ Net cash provided by discontinued operating activities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: Capital expenditures — — ) — ) Change in intercompany loans — — ) — Intercompany distribution receipts (1) — — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing investing activities — ) ) ) Net cash used in discontinued investing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: Changes in parent company equity (2) — ) — — Net increase in commercial paper — — — 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 ) — — ) Transfer from discontinued operations — — — Intercompany distributions (1) — — ) — Loan activity with parent — ) — Other — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) continuing financing activities ) ) ) Net cash used in discontinued financing activities — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash — — — Net decrease in cash, cash equivalents, and restricted cash — — ) — ) Cash, cash equivalents, and restricted cash at beginning of period — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash, cash equivalents, and restricted cash at end of period $ — $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) During fiscal 2018, other subsidiaries made distributions to TEGSA in the amount of $30 million. Cash flows are presented based upon the nature of the distributions. (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Sep. 28, 2018 | |
Revenue Recognition | ||
Practical expedient with respect to financing components | true | |
Optional exemption not to disclose aggregate amount of transaction prices associated with unsatisfied or partially satisfied performance obligations | true | |
Recently Adopted Accounting Pronouncements | ||
Other assets | $ 384 | $ 1,158 |
Deferred tax assets | 2,580 | 2,144 |
Prepaid expenses and other current assets | 507 | $ 661 |
ASU 2016-16 | ||
Recently Adopted Accounting Pronouncements | ||
Cumulative-effect adjustment | 443 | |
Other assets | (798) | |
Deferred tax assets | 418 | |
Prepaid expenses and other current assets | $ (63) |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Restructuring and other charges, net | ||
Restructuring charges, net | $ 75 | $ 34 |
Transportation Solutions | ||
Restructuring and other charges, net | ||
Restructuring charges, net | 21 | 4 |
Industrial Solutions | ||
Restructuring and other charges, net | ||
Restructuring charges, net | 35 | 22 |
Communications Solutions | ||
Restructuring and other charges, net | ||
Restructuring charges, net | $ 19 | $ 8 |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net - Restructuring Reserve Activity (Details) $ in Millions | 3 Months Ended |
Dec. 28, 2018USD ($) | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | $ 167 |
Charges | 76 |
Changes in Estimate | (1) |
Cash Payments | (30) |
Non-Cash Items | (2) |
Currency Translation | (3) |
Restructuring reserve at the end of the period | 207 |
Fiscal 2019 Actions | Employee severance | |
Restructuring reserve | |
Charges | 67 |
Cash Payments | (4) |
Restructuring reserve at the end of the period | 63 |
Fiscal 2018 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 118 |
Charges | 3 |
Cash Payments | (17) |
Non-Cash Items | (1) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 101 |
Fiscal 2018 Actions | Employee severance | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 114 |
Charges | 1 |
Cash Payments | (16) |
Currency Translation | (2) |
Restructuring reserve at the end of the period | 97 |
Fiscal 2018 Actions | Facility and other exit costs | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 4 |
Charges | 1 |
Cash Payments | (1) |
Restructuring reserve at the end of the period | 4 |
Fiscal 2018 Actions | Property, plant, and equipment | |
Restructuring reserve | |
Charges | 1 |
Non-Cash Items | (1) |
Pre-Fiscal 2018 Actions | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 49 |
Charges | 6 |
Changes in Estimate | (1) |
Cash Payments | (9) |
Non-Cash Items | (1) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 43 |
Pre-Fiscal 2018 Actions | Employee severance | |
Restructuring reserve | |
Restructuring reserve at the beginning of the period | 49 |
Charges | 4 |
Changes in Estimate | (1) |
Cash Payments | (8) |
Currency Translation | (1) |
Restructuring reserve at the end of the period | 43 |
Pre-Fiscal 2018 Actions | Facility and other exit costs | |
Restructuring reserve | |
Charges | 1 |
Cash Payments | (1) |
Pre-Fiscal 2018 Actions | Property, plant, and equipment | |
Restructuring reserve | |
Charges | 1 |
Non-Cash Items | $ (1) |
Restructuring and Other Charg_5
Restructuring and Other Charges, Net - Actions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Restructuring Charges | ||
Charges Incurred | $ 75 | $ 34 |
Fiscal 2019 Actions | ||
Restructuring Charges | ||
Charges Incurred | 67 | |
Additional Expected Charges | 10 | |
Fiscal 2018 Actions | ||
Restructuring Charges | ||
Charges Incurred | 3 | 22 |
Additional Expected Charges | 10 | |
Pre-Fiscal 2018 Actions | ||
Restructuring Charges | ||
Charges Incurred | $ 5 | $ 12 |
Restructuring and Other Charg_6
Restructuring and Other Charges, Net - Restructuring Reserve Balances (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Sep. 28, 2018 |
Restructuring reserves included on the Condensed Consolidated Balance Sheets | ||
Accrued and other current liabilities | $ 183 | $ 141 |
Other liabilities | 24 | 26 |
Restructuring reserves | $ 207 | $ 167 |
Discontinued Operations - Subse
Discontinued Operations - Subsea (Details) $ in Millions | 3 Months Ended |
Dec. 28, 2018USD ($) | |
Discontinued Operations | |
Net cash proceeds | $ 288 |
Pre tax loss on sale | (96) |
Discontinued Operations, Disposed of by Sale | Subsea Communications | |
Discontinued Operations | |
Net cash proceeds | 288 |
Pre tax loss on sale | (96) |
Cumulative translation adjustment losses | 67 |
Existing guarantees value | $ 1,700 |
Maximum remaining term for majority of existing guarantees | 2 years |
Fair value of existing guarantees | $ 12 |
New performance guarantee issued | 70 |
Discontinued Operations, Disposed of by Sale | Subsea Communications | Maximum | |
Discontinued Operations | |
New performance guarantees issuable amount | $ 300 |
Period for issuance of new performance guarantees | 3 years |
Discontinued Operations - Summa
Discontinued Operations - Summary Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | |
Income (loss) from discontinued operations, net of income taxes | |||
Net sales | $ 41 | $ 143 | |
Cost of sales | (50) | (132) | |
Selling, general, and administrative expenses | (4) | (7) | |
Research, development, and engineering expenses | (3) | (10) | |
Restructuring and other charges, net | (3) | ||
Pre-tax loss from discontinued operations | (19) | (6) | |
Pre-tax loss on sale of discontinued operations | (96) | ||
Income tax (expense) benefit | 8 | (1) | |
Loss from discontinued operations, net of income taxes | $ (107) | $ (7) | |
Balance sheet information for assets and liabilities held for sale | |||
Accounts receivable, net | $ 72 | ||
Inventories | 130 | ||
Other current assets | 32 | ||
Property, plant, and equipment, net | 221 | ||
Other assets | 17 | ||
Total assets held for sale | 472 | ||
Accounts payable | 63 | ||
Accrued and other current liabilities | 26 | ||
Deferred revenue | 60 | ||
Other liabilities | 39 | ||
Total liabilities held for sale | $ 188 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Sep. 28, 2018 |
Inventories | ||
Raw materials | $ 306 | $ 276 |
Work in progress | 735 | 656 |
Finished goods | 945 | 925 |
Inventories | $ 1,986 | $ 1,857 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Sep. 28, 2018 | |
Goodwill: | ||
Goodwill, beginning balance | $ 5,684 | |
Currency translation and other | (36) | |
Goodwill, ending balance | 5,648 | |
Transportation Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 1,993 | |
Currency translation and other | (13) | |
Goodwill, ending balance | 1,980 | |
Accumulated impairment losses | 2,191 | $ 2,191 |
Industrial Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 3,104 | |
Currency translation and other | (19) | |
Goodwill, ending balance | 3,085 | |
Accumulated impairment losses | 669 | 669 |
Communications Solutions | ||
Goodwill: | ||
Goodwill, beginning balance | 587 | |
Currency translation and other | (4) | |
Goodwill, ending balance | 583 | |
Accumulated impairment losses | $ 489 | $ 489 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | |
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | $ 2,748 | $ 2,762 | |
Accumulated Amortization | (1,100) | (1,058) | |
Net Carrying Amount | 1,648 | 1,704 | |
Finite-lived intangible assets, amortization expense | 45 | $ 45 | |
Aggregate amortization expense on intangible assets | |||
Remainder of fiscal 2019 | 136 | ||
Fiscal 2,020 | 175 | ||
Fiscal 2,021 | 172 | ||
Fiscal 2,022 | 172 | ||
Fiscal 2,023 | 171 | ||
Fiscal 2,024 | 140 | ||
Thereafter | 682 | ||
Customer relationships | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 1,457 | 1,468 | |
Accumulated Amortization | (410) | (389) | |
Net Carrying Amount | 1,047 | 1,079 | |
Intellectual property | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 1,257 | 1,261 | |
Accumulated Amortization | (673) | (653) | |
Net Carrying Amount | 584 | 608 | |
Other | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 34 | 33 | |
Accumulated Amortization | (17) | (16) | |
Net Carrying Amount | $ 17 | $ 17 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2018 | Nov. 30, 2018 | Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | |
Debt | |||||
Ownership percentage in TEGSA | 100.00% | ||||
Repayments of debt | $ 441 | $ 708 | |||
Fair value of debt | $ 4,091 | $ 4,149 | |||
Senior floating rate notes due June 2020 | |||||
Debt | |||||
Debt instrument principal amount | $ 350 | ||||
Senior floating rate notes due June 2020 | LIBOR | |||||
Debt | |||||
Debt instrument description of variable rate basis | three-month London Interbank Offered Rate | ||||
Debt instrument basis spread on variable rate (as a percent) | 0.45% | ||||
2.375% senior notes due 2018 | |||||
Debt | |||||
Repayments of debt | $ 325 | ||||
Debt instrument, interest rate (as a percent) | 2.375% | ||||
Five-year credit facility | |||||
Debt | |||||
Revolving credit facility term | 5 years | ||||
Maximum borrowing capacity | $ 1,500 | ||||
Incremental borrowing capacity | 500 | ||||
Borrowings under the Credit Facility | 0 | 0 | |||
Commercial paper | |||||
Debt | |||||
Total principal debt | $ 333 | $ 270 | |||
Weighted-average interest rate (as a percent) | 2.94% | 2.35% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 28, 2018USD ($) |
Loss Contingencies | |
Accrual environmental loss contingency, estimate of probable loss | $ 17 |
Minimum | |
Loss Contingencies | |
Accrual environmental loss contingency, estimate of probable loss | 15 |
Maximum | |
Loss Contingencies | |
Accrual environmental loss contingency, estimate of probable loss | 44 |
Outstanding Letters of Credit, Letters of Guarantee and Surety Bonds | |
Guarantees and Product Warranties | |
Guarantor obligations, maximum exposure | $ 286 |
Financial Instruments (Details)
Financial Instruments (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) | Sep. 28, 2018USD ($) | Sep. 25, 2015EUR (€) | |
Cash flow hedges | Cross-currency swap contracts | ||||
Financial Instruments | ||||
Notional amount | € | € 1,000 | |||
Interest paid in foreign currency, fixed interest rate | 3.50% | |||
Interest received in U.S. dollars, weighted-average fixed interest rate | 5.33% | |||
Fair Value of Liability Positions | $ 64 | $ 100 | ||
Gains (losses) recorded in other comprehensive income (loss) | 19 | $ (10) | ||
Gains (losses) excluded from the hedging relationship | 17 | (19) | ||
Net investment hedges | Intercompany loans and external borrowings | ||||
Financial Instruments | ||||
Notional amount of non derivative instruments | 3,189 | $ 4,064 | ||
Foreign currency exchange gains (losses) | 76 | $ (66) | ||
Net investment hedges | Cross-currency swap contracts | ||||
Financial Instruments | ||||
Notional amount | $ 952 | |||
Interest paid in foreign currency, fixed interest rate | 0.00% | |||
Interest received in U.S. dollars, weighted-average fixed interest rate | 3.06% | |||
Foreign currency exchange gains (losses) | $ (5) |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Non-U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | $ 12 | $ 12 |
Interest cost | 11 | 10 |
Expected return on plan assets | (16) | (17) |
Amortization of net actuarial loss | 6 | 6 |
Amortization of prior service credit | (2) | (2) |
Net periodic pension benefit cost | 11 | 9 |
U.S. Plans | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | ||
Service cost | 3 | 3 |
Interest cost | 12 | 11 |
Expected return on plan assets | (14) | (15) |
Amortization of net actuarial loss | 4 | 6 |
Net periodic pension benefit cost | $ 5 | $ 5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | |
Income Taxes | |||
Income tax expense | $ 78 | $ 599 | |
Income tax expense related to tax impacts of Tax Cuts and Jobs Act | 567 | ||
Net income tax benefit related to certain legal entity restructurings | $ 61 | ||
U.S. federal corporate income tax rate | 21.00% | ||
Income tax benefit related to the reduction in the valuation allowance recorded against certain U.S. federal tax credit carryforwards | $ 34 | ||
Accrued interest and penalties related to uncertain tax positions | 63 | $ 60 | |
Unrecognized income tax benefits, approximate amount that could be resolved in next twelve months | $ 125 | ||
Liabilities sharing percent, entity | 31.00% | ||
Liabilities sharing percent, Tyco International | 27.00% | ||
Liabilities sharing percent, Covidien | 42.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Earnings (Loss) Per Share | ||
Basic (in shares) | 342 | 352 |
Dilutive impact of share-based compensation arrangements (in shares) | 2 | |
Diluted (in shares) | 344 | 352 |
Share options | ||
Antidilutive shares excluded from computation of earnings per share | ||
Antidilutive share options | 1 | 1 |
Nonvested share awards and options, antidilutive due to loss in period | ||
Antidilutive shares excluded from computation of earnings per share | ||
Antidilutive share options | 3 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | |
Shareholders' Equity | |||
Cash dividend paid (in dollars per share) | $ 0.44 | $ 0.40 | |
Unpaid portion of the dividend payment recorded in accrued and other current liabilities | $ 149 | $ 303 | |
Share repurchase program, increase in authorized amount | $ 1,500 | ||
Number of common shares repurchased | 6 | 2 | |
Repurchase value | $ 495 | $ 214 | |
Amount available for repurchase, at end of period | $ 2,000 |
Share Plans (Details)
Share Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share Based Compensation Arrangements: | ||
Share-based compensation expense | $ 23 | $ 28 |
Shares available for issuance | 17 | |
Share Based Compensation Expenses Not Recognized | ||
Share-based compensation, share-based awards, total compensation expense not yet recognized | $ 179 | |
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition | 2 years 3 months 18 days | |
Share options | ||
Share Based Compensation Arrangements: | ||
Share options granted | 1.6 | |
Options granted, grant-date fair value (in dollars per share) | $ 13.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Expected share price volatility (as a percent) | 20.00% | |
Risk free interest rate (as a percent) | 3.00% | |
Expected annual dividend per share | $ 1.76 | |
Expected life of options (in years) | 5 years 2 months 12 days | |
Restricted share awards | ||
Share Based Compensation Arrangements: | ||
Shares granted | 0.6 | |
Shares granted, grant-date fair value (in dollars per share) | $ 76.66 | |
Performance share awards | ||
Share Based Compensation Arrangements: | ||
Shares granted | 0.2 | |
Shares granted, grant-date fair value (in dollars per share) | $ 76.66 |
Segment and Geographic Data - N
Segment and Geographic Data - Net Sales by Segment and Industry End Market (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Segment and Geographic Data | ||
Net Sales | $ 3,347 | $ 3,336 |
Transportation Solutions | ||
Segment and Geographic Data | ||
Net Sales | 1,986 | 2,032 |
Transportation Solutions | Automotive | ||
Segment and Geographic Data | ||
Net Sales | 1,469 | 1,517 |
Transportation Solutions | Commercial transportation | ||
Segment and Geographic Data | ||
Net Sales | 297 | 300 |
Transportation Solutions | Sensors | ||
Segment and Geographic Data | ||
Net Sales | 220 | 215 |
Industrial Solutions | ||
Segment and Geographic Data | ||
Net Sales | 928 | 882 |
Industrial Solutions | Industrial equipment | ||
Segment and Geographic Data | ||
Net Sales | 483 | 471 |
Industrial Solutions | Aerospace, defense, oil, and gas | ||
Segment and Geographic Data | ||
Net Sales | 285 | 254 |
Industrial Solutions | Energy | ||
Segment and Geographic Data | ||
Net Sales | 160 | 157 |
Communications Solutions | ||
Segment and Geographic Data | ||
Net Sales | 433 | 422 |
Communications Solutions | Data and devices | ||
Segment and Geographic Data | ||
Net Sales | 257 | 238 |
Communications Solutions | Appliances | ||
Segment and Geographic Data | ||
Net Sales | $ 176 | $ 184 |
Segment and Geographic Data -_2
Segment and Geographic Data - Net Sales by Geographic Region and Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Segment and Geographic Data | ||
Net Sales | $ 3,347 | $ 3,336 |
Transportation Solutions | ||
Segment and Geographic Data | ||
Net Sales | 1,986 | 2,032 |
Industrial Solutions | ||
Segment and Geographic Data | ||
Net Sales | 928 | 882 |
Communications Solutions | ||
Segment and Geographic Data | ||
Net Sales | 433 | 422 |
EMEA | ||
Segment and Geographic Data | ||
Net Sales | 1,171 | 1,218 |
EMEA | Transportation Solutions | ||
Segment and Geographic Data | ||
Net Sales | 756 | 808 |
EMEA | Industrial Solutions | ||
Segment and Geographic Data | ||
Net Sales | 350 | 344 |
EMEA | Communications Solutions | ||
Segment and Geographic Data | ||
Net Sales | 65 | 66 |
Asia-Pacific | ||
Segment and Geographic Data | ||
Net Sales | 1,173 | 1,220 |
Asia-Pacific | Transportation Solutions | ||
Segment and Geographic Data | ||
Net Sales | 764 | 805 |
Asia-Pacific | Industrial Solutions | ||
Segment and Geographic Data | ||
Net Sales | 155 | 163 |
Asia-Pacific | Communications Solutions | ||
Segment and Geographic Data | ||
Net Sales | 254 | 252 |
Americas | ||
Segment and Geographic Data | ||
Net Sales | 1,003 | 898 |
Americas | Transportation Solutions | ||
Segment and Geographic Data | ||
Net Sales | 466 | 419 |
Americas | Industrial Solutions | ||
Segment and Geographic Data | ||
Net Sales | 423 | 375 |
Americas | Communications Solutions | ||
Segment and Geographic Data | ||
Net Sales | $ 114 | $ 104 |
Segment and Geographic Data - O
Segment and Geographic Data - Operating Income by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Segment and Geographic Data | ||
Operating income | $ 484 | $ 586 |
Transportation Solutions | ||
Segment and Geographic Data | ||
Operating income | 332 | 417 |
Industrial Solutions | ||
Segment and Geographic Data | ||
Operating income | 100 | 102 |
Communications Solutions | ||
Segment and Geographic Data | ||
Operating income | $ 52 | $ 67 |
Tyco Electronics Group S.A. - O
Tyco Electronics Group S.A. - Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Tyco Electronics Group S.A. | ||
Ownership percentage in TEGSA | 100.00% | |
Statement of Operations Detail: | ||
Net sales | $ 3,347 | $ 3,336 |
Cost of sales | 2,233 | 2,172 |
Gross margin | 1,114 | 1,164 |
Selling, general, and administrative expenses, net | 389 | 377 |
Research, development, and engineering expenses | 161 | 165 |
Acquisition and integration costs | 5 | 2 |
Restructuring and other charges, net | 75 | 34 |
Operating income | 484 | 586 |
Interest income | 5 | 4 |
Interest expense | (27) | (26) |
Other income (expense), net | (1) | 2 |
Income from continuing operations before income taxes | 461 | 566 |
Income tax expense | (78) | (599) |
Income (loss) from continuing operations | 383 | (33) |
Loss from discontinued operations, net of income taxes | (107) | (7) |
Net income (loss) | 276 | (40) |
Other comprehensive income | 49 | 76 |
Comprehensive income | 325 | 36 |
Consolidating Adjustments | ||
Statement of Operations Detail: | ||
Equity in net income of subsidiaries | (830) | (49) |
Equity in net loss of subsidiaries of discontinued operations | 156 | 14 |
Income from continuing operations before income taxes | (674) | (35) |
Income (loss) from continuing operations | (674) | (35) |
Net income (loss) | (674) | (35) |
Other comprehensive income | (84) | (163) |
Comprehensive income | (758) | (198) |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses, net | 35 | 47 |
Operating income | (35) | (47) |
Equity in net income of subsidiaries | 441 | 27 |
Equity in net loss of subsidiaries of discontinued operations | (107) | (7) |
Intercompany interest income (expense), net | (23) | (13) |
Income from continuing operations before income taxes | 276 | (40) |
Income (loss) from continuing operations | 276 | (40) |
Net income (loss) | 276 | (40) |
Other comprehensive income | 49 | 76 |
Comprehensive income | 325 | 36 |
TEGSA | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Selling, general, and administrative expenses, net | (107) | (3) |
Operating income | 107 | 3 |
Interest expense | (27) | (26) |
Equity in net income of subsidiaries | 389 | 22 |
Equity in net loss of subsidiaries of discontinued operations | (49) | (7) |
Intercompany interest income (expense), net | (28) | 28 |
Income from continuing operations before income taxes | 392 | 20 |
Income (loss) from continuing operations | 392 | 20 |
Loss from discontinued operations, net of income taxes | (58) | |
Net income (loss) | 334 | 20 |
Other comprehensive income | 49 | 76 |
Comprehensive income | 383 | 96 |
Intercompany transaction gains | 110 | |
Other Subsidiaries | Consolidating Reportable entities | ||
Statement of Operations Detail: | ||
Net sales | 3,347 | 3,336 |
Cost of sales | 2,233 | 2,172 |
Gross margin | 1,114 | 1,164 |
Selling, general, and administrative expenses, net | 461 | 333 |
Research, development, and engineering expenses | 161 | 165 |
Acquisition and integration costs | 5 | 2 |
Restructuring and other charges, net | 75 | 34 |
Operating income | 412 | 630 |
Interest income | 5 | 4 |
Other income (expense), net | (1) | 2 |
Intercompany interest income (expense), net | 51 | (15) |
Income from continuing operations before income taxes | 467 | 621 |
Income tax expense | (78) | (599) |
Income (loss) from continuing operations | 389 | 22 |
Loss from discontinued operations, net of income taxes | (49) | (7) |
Net income (loss) | 340 | 15 |
Other comprehensive income | 35 | 87 |
Comprehensive income | $ 375 | $ 102 |
Tyco Electronics Group S.A. - B
Tyco Electronics Group S.A. - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 29, 2017 | Sep. 29, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 505 | $ 848 | $ 704 | $ 1,218 |
Accounts receivable, net | 2,380 | 2,361 | ||
Inventories | 1,986 | 1,857 | ||
Prepaid expenses and other current assets | 507 | 661 | ||
Current assets held for sale | 472 | |||
Total current assets | 5,378 | 6,199 | ||
Property, plant, and equipment, net | 3,550 | 3,497 | ||
Goodwill | 5,648 | 5,684 | ||
Intangible assets, net | 1,648 | 1,704 | ||
Deferred income taxes | 2,580 | 2,144 | ||
Other assets | 384 | 1,158 | ||
Total Assets | 19,188 | 20,386 | ||
Current liabilities: | ||||
Short-term debt | 585 | 963 | ||
Accounts payable | 1,538 | 1,548 | ||
Accrued and other current liabilities | 1,348 | 1,711 | ||
Current liabilities held for sale | 188 | |||
Total current liabilities | 3,471 | 4,410 | ||
Long-term debt | 3,382 | 3,037 | ||
Long-term pension and postretirement liabilities | 1,101 | 1,102 | ||
Deferred income taxes | 207 | 207 | ||
Income taxes | 335 | 312 | ||
Other liabilities | 456 | 487 | ||
Total Liabilities | 8,952 | 9,555 | ||
Total Shareholders' Equity | 10,236 | 10,831 | 9,631 | 9,751 |
Total Liabilities and Shareholders' Equity | 19,188 | 20,386 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (3,207) | (2,476) | ||
Total current assets | (3,207) | (2,476) | ||
Investment in subsidiaries | (40,094) | (40,239) | ||
Intercompany loans receivable | (15,246) | (24,424) | ||
Total Assets | (58,547) | (67,139) | ||
Current liabilities: | ||||
Intercompany payables | (3,207) | (2,476) | ||
Total current liabilities | (3,207) | (2,476) | ||
Intercompany loans payable | (15,246) | (24,424) | ||
Total Liabilities | (18,453) | (26,900) | ||
Total Shareholders' Equity | (40,094) | (40,239) | ||
Total Liabilities and Shareholders' Equity | (58,547) | (67,139) | ||
TE Connectivity Ltd. | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 51 | 37 | ||
Prepaid expenses and other current assets | 4 | 5 | ||
Total current assets | 55 | 42 | ||
Investment in subsidiaries | 13,557 | 13,626 | ||
Intercompany loans receivable | 2 | 2 | ||
Total Assets | 13,614 | 13,670 | ||
Current liabilities: | ||||
Accounts payable | 2 | 2 | ||
Accrued and other current liabilities | 220 | 400 | ||
Intercompany payables | 3,156 | 2,437 | ||
Total current liabilities | 3,378 | 2,839 | ||
Total Liabilities | 3,378 | 2,839 | ||
Total Shareholders' Equity | 10,236 | 10,831 | ||
Total Liabilities and Shareholders' Equity | 13,614 | 13,670 | ||
TEGSA | Consolidating Reportable entities | ||||
Current assets: | ||||
Intercompany receivables | 3,096 | 2,391 | ||
Prepaid expenses and other current assets | 68 | 112 | ||
Total current assets | 3,164 | 2,503 | ||
Investment in subsidiaries | 26,537 | 26,613 | ||
Intercompany loans receivable | 1,598 | 6,535 | ||
Other assets | 1 | |||
Total Assets | 31,300 | 35,651 | ||
Current liabilities: | ||||
Short-term debt | 583 | 961 | ||
Accrued and other current liabilities | 53 | 36 | ||
Total current liabilities | 636 | 997 | ||
Long-term debt | 3,379 | 3,033 | ||
Intercompany loans payable | 13,648 | 17,888 | ||
Other liabilities | 80 | 107 | ||
Total Liabilities | 17,743 | 22,025 | ||
Total Shareholders' Equity | 13,557 | 13,626 | ||
Total Liabilities and Shareholders' Equity | 31,300 | 35,651 | ||
Other Subsidiaries | Consolidating Reportable entities | ||||
Current assets: | ||||
Cash and cash equivalents | 505 | 848 | $ 704 | $ 1,218 |
Accounts receivable, net | 2,380 | 2,361 | ||
Inventories | 1,986 | 1,857 | ||
Intercompany receivables | 60 | 48 | ||
Prepaid expenses and other current assets | 435 | 544 | ||
Current assets held for sale | 472 | |||
Total current assets | 5,366 | 6,130 | ||
Property, plant, and equipment, net | 3,550 | 3,497 | ||
Goodwill | 5,648 | 5,684 | ||
Intangible assets, net | 1,648 | 1,704 | ||
Deferred income taxes | 2,580 | 2,144 | ||
Intercompany loans receivable | 13,646 | 17,887 | ||
Other assets | 383 | 1,158 | ||
Total Assets | 32,821 | 38,204 | ||
Current liabilities: | ||||
Short-term debt | 2 | 2 | ||
Accounts payable | 1,536 | 1,546 | ||
Accrued and other current liabilities | 1,075 | 1,275 | ||
Intercompany payables | 51 | 39 | ||
Current liabilities held for sale | 188 | |||
Total current liabilities | 2,664 | 3,050 | ||
Long-term debt | 3 | 4 | ||
Intercompany loans payable | 1,598 | 6,536 | ||
Long-term pension and postretirement liabilities | 1,101 | 1,102 | ||
Deferred income taxes | 207 | 207 | ||
Income taxes | 335 | 312 | ||
Other liabilities | 376 | 380 | ||
Total Liabilities | 6,284 | 11,591 | ||
Total Shareholders' Equity | 26,537 | 26,613 | ||
Total Liabilities and Shareholders' Equity | $ 32,821 | $ 38,204 |
Tyco Electronics Group S.A. - C
Tyco Electronics Group S.A. - Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | $ 328 | $ 283 |
Net cash provided by (used in) discontinued operating activities | (31) | 67 |
Net cash provided by operating activities | 297 | 350 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (210) | (237) |
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation | 288 | |
Other | 4 | |
Net cash provided by (used in) continued investing activities | 82 | (237) |
Net cash used in discontinued investing activities | (2) | (4) |
Net cash provided by (used in) investing activities | 80 | (241) |
Cash Flows From Financing Activities: | ||
Net increase in commercial paper | 63 | 241 |
Proceeds from issuance of debt | 350 | 119 |
Repayment of debt | (441) | (708) |
Proceeds from exercise of share options | 7 | 54 |
Repurchase of common shares | (519) | (167) |
Payment of common share dividends to shareholders | (150) | (141) |
Transfers (to) from discontinued operations | (33) | 63 |
Other | (29) | (32) |
Net cash used in continuing financing activities | (752) | (571) |
Net cash provided by (used in) discontinued financing activities | 33 | (63) |
Net cash used in financing activities | (719) | (634) |
Effect of currency translation on cash | (1) | 11 |
Net decrease in cash, cash equivalents, and restricted cash | (343) | (514) |
Cash, cash equivalents, and restricted cash at beginning of period | 848 | 1,218 |
Cash, cash equivalents, and restricted cash at end of period | 505 | 704 |
Consolidating Adjustments | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (7) | |
Net cash provided by operating activities | (7) | |
Cash Flows From Investing Activities: | ||
Change in intercompany loans | 25 | (335) |
Intercompany distribution receipts | (23) | |
Net cash provided by (used in) continued investing activities | 25 | (358) |
Net cash provided by (used in) investing activities | 25 | (358) |
Cash Flows From Financing Activities: | ||
Intercompany distributions | 30 | |
Loan activity with parent | (25) | 335 |
Net cash used in continuing financing activities | (25) | 365 |
Net cash used in financing activities | (25) | 365 |
TE Connectivity Ltd. | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (73) | (51) |
Net cash provided by operating activities | (73) | (51) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 23 | 30 |
Repurchase of common shares | (519) | (108) |
Payment of common share dividends to shareholders | (150) | (143) |
Loan activity with parent | 719 | 272 |
Net cash used in continuing financing activities | 73 | 51 |
Net cash used in financing activities | 73 | 51 |
TEGSA | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | (9) | (10) |
Net cash provided by operating activities | (9) | (10) |
Cash Flows From Investing Activities: | ||
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation | 303 | |
Change in intercompany loans | (25) | 335 |
Intercompany distribution receipts | 23 | |
Net cash provided by (used in) continued investing activities | 278 | 358 |
Net cash provided by (used in) investing activities | 278 | 358 |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | (240) | |
Net increase in commercial paper | 63 | 241 |
Proceeds from issuance of debt | 350 | 119 |
Repayment of debt | (441) | (708) |
Other | (1) | |
Net cash used in continuing financing activities | (269) | (348) |
Net cash used in financing activities | (269) | (348) |
Other Subsidiaries | Consolidating Reportable entities | ||
Cash Flows From Operating Activities: | ||
Net cash provided by (used in) continuing operating activities | 410 | 351 |
Net cash provided by (used in) discontinued operating activities | (31) | 67 |
Net cash provided by operating activities | 379 | 418 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (210) | (237) |
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation | (15) | |
Other | 4 | |
Net cash provided by (used in) continued investing activities | (221) | (237) |
Net cash used in discontinued investing activities | (2) | (4) |
Net cash provided by (used in) investing activities | (223) | (241) |
Cash Flows From Financing Activities: | ||
Changes in parent company equity | 217 | (30) |
Proceeds from exercise of share options | 7 | 54 |
Repurchase of common shares | (59) | |
Payment of common share dividends to shareholders | 2 | |
Transfers (to) from discontinued operations | (33) | 63 |
Intercompany distributions | (30) | |
Loan activity with parent | (694) | (607) |
Other | (28) | (32) |
Net cash used in continuing financing activities | (531) | (639) |
Net cash provided by (used in) discontinued financing activities | 33 | (63) |
Net cash used in financing activities | (498) | (702) |
Effect of currency translation on cash | (1) | 11 |
Net decrease in cash, cash equivalents, and restricted cash | (343) | (514) |
Cash, cash equivalents, and restricted cash at beginning of period | 848 | 1,218 |
Cash, cash equivalents, and restricted cash at end of period | $ 505 | $ 704 |