Exhibit 99.3
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 27, 2009
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | | | |
| | | | and Other | | Impairment of | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Goodwill (2) | | Net (3) | | (Non-GAAP) (4) | |
| | ($ in millions, except per share data) | |
(Loss) Income from Operations: | | | | | | | | | | | |
Electronic Components | | $ | (3,654 | ) | $ | 166 | | $ | 3,435 | | $ | — | | $ | (53 | ) |
Network Solutions | | 21 | | 8 | | — | | — | | 29 | |
Specialty Products | | (83 | ) | 12 | | 112 | | — | | 41 | |
Undersea Telecommunications | | 54 | | 1 | | — | | — | | 55 | |
Pre-Separation litigation charges, net | | (135 | ) | — | | — | | 135 | | — | |
Total | | $ | (3,797 | ) | $ | 187 | | $ | 3,547 | | $ | 135 | | $ | 72 | |
| | | | | | | | | | | |
Operating Margin | | -162.5 | % | | | | | | | 3.1 | % |
| | | | | | | | | | | |
Income Tax Benefit (Expense) | | $ | 594 | | $ | (43 | ) | $ | (523 | ) | $ | — | | $ | 28 | |
| | | | | | | | | | | |
(Loss) Income from Continuing Operations | | $ | (3,239 | ) | $ | 144 | | $ | 3,024 | | $ | 135 | | $ | 64 | |
| | | | | | | | | | | |
Diluted (Loss) Earnings per Share from Continuing Operations | | $ | (7.07 | ) | $ | 0.31 | | $ | 6.60 | | $ | 0.29 | | $ | 0.14 | |
(1) Includes $189 million recorded in restructuring and other charges, net and a $2 million credit recorded in cost of sales.
(2) Includes $3,547 million recorded in impairment of goodwill.
(3) Consists of $135 million of costs related to pre-Separation securities litigation recorded in pre-Separation litigation charges, net.
(4) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended December 26, 2008
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | |
| | | | and Other | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Net (2) | | (Non-GAAP) (3) | |
| | ($ in millions, except per share data) | |
Income from Operations: | | | | | | | | | |
Electronic Components | | $ | (18 | ) | $ | 42 | | $ | — | | $ | 24 | |
Network Solutions | | 44 | | 19 | | — | | 63 | |
Specialty Products | | 28 | | 14 | | 8 | | 50 | |
Undersea Telecommunications | | 38 | | 3 | | — | | 41 | |
Pre-Separation litigation charges, net | | (9 | ) | — | | 9 | | — | |
Total | | $ | 83 | | $ | 78 | | $ | 17 | | $ | 178 | |
| | | | | | | | | |
Operating Margin | | 3.1 | % | | | | | 6.6 | % |
| | | | | | | | | |
Income Tax Expense | | $ | (14 | ) | $ | (23 | ) | $ | (3 | ) | $ | (40 | ) |
| | | | | | | | | |
Income from Continuing Operations | | $ | 30 | | $ | 55 | | $ | 14 | | $ | 99 | |
| | | | | | | | | |
Diluted Earnings per Share from Continuing
Operations | | $ | 0.07 | | $ | 0.12 | | $ | 0.03 | | $ | 0.21 | |
(1) Includes $77 million recorded in restructuring and other charges, net and $1 million recorded in cost of sales.
(2) Consists of $9 million of costs related to the settlement of pre-Separation securities litigation recorded in pre-Separation litigation charges, net and $8 million of costs related to a product liability matter from several years ago recorded in selling, general, and administrative expenses.
(3) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended September 26, 2008
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | | | | | |
| | | | and Other | | Impairment of | | Tax | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Goodwill (2) | | Items (3) | | Net (4) | | (Non-GAAP) (5) | |
| | ($ in millions, except per share data) | |
Income from Operations: | | | | | | | | | | | | | |
Electronic Components | | $ | 29 | | $ | 157 | | $ | 103 | | $ | — | | $ | — | | $ | 289 | |
Network Solutions | | 65 | | 4 | | — | | — | | — | | 69 | |
Specialty Products | | 65 | | 3 | | — | | — | | 8 | | 76 | |
Undersea Telecommunications | | 38 | | 1 | | — | | — | | — | | 39 | |
Pre-Separation litigation charges, net | | 8 | | — | | — | | — | | (8 | ) | — | |
Total | | $ | 205 | | $ | 165 | | $ | 103 | | $ | — | | $ | — | | $ | 473 | |
| | | | | | | | | | | | | |
Operating Margin | | 5.7 | % | | | | | | | | | 13.2 | % |
| | | | | | | | | | | | | |
Income Tax Expense | | $ | (38 | ) | $ | (8 | ) | $ | (14 | ) | $ | (76 | ) | $ | (4 | ) | $ | (140 | ) |
| | | | | | | | | | | | | |
Income (Loss) from Continuing Operations | | $ | 88 | | $ | 157 | | $ | 89 | | $ | (22 | ) | $ | (4 | ) | $ | 308 | |
| | | | | | | | | | | | | |
Diluted Earnings (Loss) per Share from Continuing Operations | | $ | 0.19 | | $ | 0.33 | | $ | 0.19 | | $ | (0.05 | ) | $ | (0.01 | ) | $ | 0.65 | |
(1) Includes $157 million recorded in restructuring and other charges, net and $8 million recorded in cost of sales.
(2) Consists of goodwill impairment of $103 million recorded in impairment of goodwill.
(3) Includes $22 million of income, of which $54 million of expense is recorded in other expense, net and $76 million of tax benefits are recorded in income tax expense, related to various tax matters, including a tax settlement.
(4) Consists of $8 million of income related to insurance recoveries on pre-Separation securities litigation recorded in pre-Separation litigation charges, net and $8 million of costs related to a customs settlement recorded in selling, general and administrative expenses.
(5) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended June 27, 2008
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | |
| | | | and Other | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Net (2) | | (Non-GAAP) (3) | |
| | ($ in millions, except per share data) | |
Income from Operations: | | | | | | | | | |
Electronic Components | | $ | 333 | | $ | 11 | | $ | — | | $ | 344 | |
Network Solutions | | 66 | | 4 | | — | | 70 | |
Specialty Products | | 83 | | — | | — | | 83 | |
Undersea Telecommunications | | 40 | | 1 | | — | | 41 | |
Pre-Separation litigation charges, net | | (7 | ) | — | | 7 | | — | |
Total | | $ | 515 | | $ | 16 | | $ | 7 | | $ | 538 | |
| | | | | | | | | |
Operating Margin | | 13.6 | % | | | | | 14.2 | % |
| | | | | | | | | |
Income Tax Expense | | $ | (191 | ) | $ | (5 | ) | $ | — | | $ | (196 | ) |
| | | | | | | | | |
Income from Continuing Operations | | $ | 285 | | $ | 11 | | $ | 7 | | $ | 303 | |
| | | | | | | | | |
Diluted Earnings per Share from Continuing Operations | | $ | 0.59 | | $ | 0.02 | | $ | 0.01 | | $ | 0.63 | |
(1) Includes $16 million recorded in restructuring and other charges, net.
(2) Consists of $7 million of net costs related to the settlement of pre-Separation securities litigation recorded in pre-Separation litigation charges, net.
(3) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 28, 2008
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | |
| | | | and Other | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Net (2) | | (Non-GAAP) (3) | |
| | ($ in millions, except per share data) | |
Income (Loss) from Operations: | | | | | | | | | |
Electronic Components | | $ | 339 | | $ | 15 | | $ | (36 | ) | $ | 318 | |
Network Solutions | | 51 | | 9 | | — | | 60 | |
Specialty Products | | 77 | | — | | — | | 77 | |
Undersea Telecommunications | | 39 | | 2 | | — | | 41 | |
Pre-Separation litigation charges, net | | (23 | ) | — | | 23 | | — | |
Total | | $ | 483 | | $ | 26 | | $ | (13 | ) | $ | 496 | |
| | | | | | | | | |
Operating Margin | | 13.6 | % | | | | | 14.0 | % |
| | | | | | | | | |
Income Tax (Expense) Benefit | | $ | (162 | ) | $ | (8 | ) | $ | 20 | | $ | (150 | ) |
| | | | | | | | | |
Income from Continuing Operations | | $ | 292 | | $ | 18 | | $ | 7 | | $ | 317 | |
| | | | | | | | | |
Diluted Earnings per Share from Continuing Operations | | $ | 0.60 | | $ | 0.04 | | $ | 0.01 | | $ | 0.65 | |
(1) Includes $25 million recorded in restructuring and other charges, net and $1 million recorded in cost of sales.
(2) Consists of a $36 million gain on the sale of real estate recorded in selling, general, and administrative expenses and $23 million of costs related to the settlement of pre-Separation securities litigation recorded in pre-Separation litigation charges, net.
(3) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended December 28, 2007
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | |
| | | | and Other | | Tax Sharing | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Income (2) | | (Non-GAAP) (3) | |
| | ($ in millions, except per share data) | |
Income from Operations: | | | | | | | | | |
Electronic Components | | $ | 277 | | $ | 15 | | $ | — | | $ | 292 | |
Network Solutions | | 69 | | 5 | | — | | 74 | |
Specialty Products | | 71 | | — | | — | | 71 | |
Undersea Telecommunications | | 43 | | 1 | | — | | 44 | |
Total | | $ | 460 | | $ | 21 | | $ | — | | $ | 481 | |
| | | | | | | | | |
Operating Margin | | 13.3 | % | | | | | 13.9 | % |
| | | | | | | | | |
Income Tax Expense | | $ | (149 | ) | $ | (6 | ) | $ | — | | $ | (155 | ) |
| | | | | | | | | |
Income (Loss) from Continuing Operations | | $ | 862 | | $ | 15 | | $ | (572 | ) | $ | 305 | |
| | | | | | | | | |
Diluted Earnings (Loss) per Share from Continuing Operations | | $ | 1.73 | | $ | 0.03 | | $ | (1.15 | ) | $ | 0.61 | |
(1) Includes $21 million recorded in restructuring and other charges, net.
(2) In connection with the adoption of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109,” the Company recorded income of $572 million in other income, net pursuant to its Tax Sharing Agreement with Tyco International and Covidien.
(3) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 26, 2008
(UNAUDITED)
| | | | Adjustments | | | |
| | | | Restructuring | | | | | | | | | |
| | | | and Other | | Impairment of | | Tax | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Charges, Net (1) | | Goodwill (2) | | Items (3) | | Net (4) | | (Non-GAAP) (5) | |
| | ($ in millions, except per share data) | |
Income (Loss) from Operations: | | | | | | | | | | | | | |
Electronic Components | | $ | 978 | | $ | 198 | | $ | 103 | | $ | — | | $ | (36 | ) | $ | 1,243 | |
Network Solutions | | 251 | | 22 | | — | | — | | — | | 273 | |
Specialty Products | | 296 | | 3 | | — | | — | | 8 | | 307 | |
Undersea Telecommunications | | 160 | | 5 | | — | | — | | — | | 165 | |
Pre-Separation litigation charges, net | | (22 | ) | — | | — | | — | | 22 | | — | |
Total | | $ | 1,663 | | $ | 228 | | $ | 103 | | $ | — | | $ | (6 | ) | $ | 1,988 | |
| | | | | | | | | | | | | |
Operating Margin | | 11.6 | % | | | | | | | | | 13.8 | % |
| | | | | | | | | | | | | |
Income Tax (Expense) Benefit | | $ | (540 | ) | $ | (27 | ) | $ | (14 | ) | $ | (76 | ) | $ | 16 | | $ | (641 | ) |
| | | | | | | | | | | | | |
Income (Loss) from Continuing Operations | | $ | 1,527 | | $ | 201 | | $ | 89 | | $ | (594 | ) | $ | 10 | | $ | 1,233 | |
| | | | | | | | | | | | | |
Diluted Earnings (Loss) per Share from Continuing Operations | | $ | 3.14 | | $ | 0.41 | | $ | 0.18 | | $ | (1.22 | ) | $ | 0.02 | | $ | 2.54 | |
(1) Includes $219 million recorded in restructuring and other charges, net and $9 million recorded in cost of sales.
(2) Consists of goodwill impairment of $103 million recorded in impairment of goodwill.
(3) In connection with the adoption of FIN 48, the Company recorded income of $545 million in other income, net pursuant to its Tax Sharing Agreement with Tyco International and Covidien. The Company also recorded $49 million of income, of which $27 million of expense is recorded in other income, net and $76 million of tax benefits are recorded in income tax expense, related to various tax matters, including a tax settlement.
(4) Consists of a $36 million gain on the sale of real estate recorded in selling, general and administrative expenses, $8 million of costs related to a customs settlement, also recorded in selling, general and administrative expenses, and $22 million of net costs related to the settlement of pre-Separation securities litigation recorded in pre-Separation litigation charges, net.
(5) See description of non-GAAP measures contained in this Form 8-K.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 28, 2007
(UNAUDITED)
| | | | Adjustments | | | |
| | | | | | Restructuring | | | | | |
| | | | | | and Other | | | | | |
| | | | Separation | | Charges, Net | | | | | |
| | | | Related | | and Related | | Other Items, | | Adjusted | |
| | U.S. GAAP | | Costs (1) | | Costs (2) | | Net (3) | | (Non-GAAP) (4) | |
| | ($ in millions, except per share data) | |
Income from Operations: | | | | | | | | | | | |
Electronic Components | | $ | 1,063 | | $ | 28 | | $ | 55 | | $ | — | | $ | 1,146 | |
Network Solutions | | 229 | | 5 | | 36 | | — | | 270 | |
Specialty Products | | 258 | | 7 | | 4 | | — | | 269 | |
Undersea Telecommunications | | 36 | | 1 | | 5 | | — | | 42 | |
Pre-Separation litigation charges, net and separation costs | | (931 | ) | 44 | | — | | 887 | | — | |
Total | | $ | 655 | | $ | 85 | | $ | 100 | | $ | 887 | | $ | 1,727 | |
| | | | | | | | | | | |
Operating Margin | | 5.2 | % | | | | | | | 13.7 | % |
| | | | | | | | | | | |
Income Tax Expense | | $ | (465 | ) | $ | (25 | ) | $ | (32 | ) | $ | — | | $ | (522 | ) |
| | | | | | | | | | | |
(Loss) Income from Continuing Operations | | $ | (214 | ) | $ | 60 | | $ | 68 | | $ | 1,119 | | $ | 1,033 | |
| | | | | | | | | | | |
Diluted (Loss) Earnings per Share from Continuing Operations (5) | | $ | (0.43 | ) | $ | 0.12 | | $ | 0.14 | | $ | 2.24 | | $ | 2.07 | |
(1) Includes $44 million of separation costs, primarily related to employee costs, recorded in separation costs and $41 million of costs, related to building separate company functions that did not exist in the prior year, recorded in selling, general, and administrative expenses.
(2) Includes $97 million of net restructuring and other charges of which $92 million is recorded in restructuring and other charges, net and $5 million is recorded in cost of sales. Also includes $3 million of restructuring related moving costs recorded in cost of goods sold.
(3) Consists of $887 million of net costs related to pre-Separation securities litigation recorded in pre-Separation litigation charges, net and a $232 million loss on retirement of debt recorded in other expense, net.
(4) See description of non-GAAP measures contained in this Form 8-K.
(5) GAAP diluted shares excludes 3 million of non-vested restricted share awards and non-vested options as the inclusion of these securities would have been anti-dilutive. Such amounts are included in the calculation of adjusted (non-GAAP) diluted earnings per share from continuing operations.
