EPS exceeds, sales in line with guidance;
continuing strong cash generation
SCHAFFHAUSEN, Switzerland, July 26,
2023 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL)
today reported results for the fiscal third quarter ended
June 30, 2023.
Third Quarter Highlights
- Net sales were $4 billion, in
line with guidance, with year-over-year growth in the
Transportation and Industrial segments offsetting an expected
decline in Communications.
- GAAP diluted earnings per share (EPS) from continuing
operations were $1.67, and adjusted EPS were $1.77, both
exceeding guidance.
- Order levels were $4 billion,
reflecting stability across all segments.
- Cash flow from operating activities of $779 million and strong free cash flow of
$614 million in the quarter, with
approximately $1.2 billion returned
to shareholders year to date
- Published Connecting Our World report, highlighting
commitments to the Science Based Targets initiative
"We delivered earnings above guidance, along with year-over-year
sales growth in our Transportation and Industrial segments, as we
continue to benefit from the strategic positioning of our portfolio
around key growth and sustainability trends. Our leading global
position in electric vehicles once again allowed us to deliver a
strong performance in Transportation, and we continued to
capitalize on growth momentum in renewable energy applications as
well as ongoing market recovery in commercial air and medical in
our Industrial segment," said TE Connectivity CEO Terrence Curtin. "While our Communications
segment declined as expected, we are excited about our increased
design win momentum in AI applications, where our high-speed
connectivity solutions will drive future growth.
"Our year-to-date free cash flow is up over 40 percent year over
year, demonstrating our strong business model. We are delivering on
our commitment to expand margins in the second half, reinforced by
our third quarter performance and fourth quarter guidance. We
remain confident that we are well positioned for long-term
profitable growth, as our customers depend on our technology to
advance important trends including e-mobility, renewable energy,
factory automation and artificial intelligence."
Fourth Quarter FY23 Outlook
For the fourth quarter of fiscal 2023, the company expects net
sales of approximately $4
billion. GAAP EPS from continuing operations are expected to
be approximately $1.63, with
adjusted EPS of approximately $1.75.
Information about TE Connectivity's use of non-GAAP financial
measures is provided below. For reconciliations of these non-GAAP
financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a conference call for investors today at
8:30 a.m. ET. The conference call may
be accessed in the following ways:
- At TE Connectivity's website: investors.te.com
- By telephone: For both "listen-only" participants and those
participants who wish to take part in the question-and-answer
portion of the call, the dial-in number in the United States is (888) 330-3417 and for
international callers, the dial-in number is (646) 960-0804.
- A replay of the conference call will be available on TE
Connectivity's investor website at investors.te.com at 11:30 a.m. ET on July
26, 2023.
About TE Connectivity
TE Connectivity Ltd. (NYSE: TEL) is a global industrial
technology leader creating a safer, sustainable, productive, and
connected future. Our broad range of connectivity and sensor
solutions, proven in the harshest environments, enable advancements
in transportation, industrial applications, medical technology,
energy, data communications, and the home. With more than 85,000
employees, including over 8,000 engineers, working alongside
customers in approximately 140 countries, TE ensures that EVERY
CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn,
Facebook, WeChat and Twitter.
Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we
believe it is appropriate for investors to consider adjusted
financial measures in addition to results in accordance with
accounting principles generally accepted in the U.S. ("GAAP").
These non-GAAP financial measures provide supplemental information
and should not be considered replacements for results in accordance
with GAAP. Management uses non-GAAP financial measures internally
for planning and forecasting purposes and in its decision-making
processes related to the operations of our company. We believe
these measures provide meaningful information to us and investors
because they enhance the understanding of our operating
performance, ability to generate cash, and the trends of our
business. Additionally, we believe that investors benefit from
having access to the same financial measures that management uses
in evaluating our operations. The primary limitation of these
measures is that they exclude the financial impact of items that
would otherwise either increase or decrease our reported results.
This limitation is best addressed by using these non-GAAP financial
measures in combination with the most directly comparable GAAP
financial measures in order to better understand the amounts,
character, and impact of any increase or decrease in reported
amounts. These non-GAAP financial measures may not be comparable to
similarly-titled measures reported by other companies.
The following provides additional information regarding our
non-GAAP financial measures:
- Organic Net Sales Growth (Decline) – represents net sales
growth (decline) (the most comparable GAAP financial measure)
excluding the impact of foreign currency exchange rates, and
acquisitions and divestitures that occurred in the preceding twelve
months, if any. Organic Net Sales Growth (Decline) is a useful
measure of our performance because it excludes items that are not
completely under management's control, such as the impact of
changes in foreign currency exchange rates, and items that do not
reflect the underlying growth of the company, such as acquisition
and divestiture activity. This measure is a significant component
in our incentive compensation plans.
- Adjusted Operating Income and Adjusted Operating Margin –
represent operating income and operating margin, respectively, (the
most comparable GAAP financial measures) before special items
including restructuring and other charges, acquisition-related
charges, impairment of goodwill, and other income or charges, if
any. We utilize these adjusted measures in combination with
operating income and operating margin to assess segment level
operating performance and to provide insight to management in
evaluating segment operating plan execution and market conditions.
Adjusted Operating Income is a significant component in our
incentive compensation plans.
- Adjusted Other Income (Expense), Net – represents net other
income (expense) (the most comparable GAAP financial measure)
before special items including tax sharing income related to
adjustments to prior period tax returns and other items, if
any.
- Adjusted Income Tax (Expense) Benefit and Adjusted Effective
Tax Rate – represent income tax (expense) benefit and effective tax
rate, respectively, (the most comparable GAAP financial measures)
after adjusting for the tax effect of special items including
restructuring and other charges, acquisition-related charges,
impairment of goodwill, other income or charges, and certain
significant tax items, if any.
- Adjusted Income from Continuing Operations – represents income
from continuing operations (the most comparable GAAP financial
measure) before special items including restructuring and other
charges, acquisition-related charges, impairment of goodwill, tax
sharing income related to adjustments to prior period tax returns
and other tax items, other income or charges, and certain
significant tax items, if any, and, if applicable, the related tax
effects.
- Adjusted Earnings Per Share – represents diluted earnings per
share from continuing operations (the most comparable GAAP
financial measure) before special items including restructuring and
other charges, acquisition-related charges, impairment of goodwill,
tax sharing income related to adjustments to prior period tax
returns and other tax items, other income or charges, and certain
significant tax items, if any, and, if applicable, the related tax
effects. This measure is a significant component in our incentive
compensation plans.
- Free Cash Flow (FCF) – is a useful measure of our ability to
generate cash. The difference between net cash provided by
operating activities (the most comparable GAAP financial measure)
and Free Cash Flow consists mainly of significant cash outflows and
inflows that we believe are useful to identify. We believe Free
Cash Flow provides useful information to investors as it provides
insight into the primary cash flow metric used by management to
monitor and evaluate cash flows generated from our operations. Free
Cash Flow is defined as net cash provided by operating activities
excluding voluntary pension contributions and the cash impact of
special items, if any, minus net capital expenditures. Voluntary
pension contributions are excluded from the GAAP financial measure
because this activity is driven by economic financing decisions
rather than operating activity. Certain special items, including
net payments related to pre-separation tax matters and cash paid
(collected) pursuant to collateral requirements related to
cross-currency swap contracts, are also excluded by management in
evaluating Free Cash Flow. Net capital expenditures consist of
capital expenditures less proceeds from the sale of property,
plant, and equipment. These items are subtracted because they
represent long-term commitments. In the calculation of Free Cash
Flow, we subtract certain cash items that are ultimately within
management's and the Board of Directors' discretion to direct and
may imply that there is less or more cash available for our
programs than the most comparable GAAP financial measure indicates.
It should not be inferred that the entire Free Cash Flow amount is
available for future discretionary expenditures, as our definition
of Free Cash Flow does not consider certain non-discretionary
expenditures, such as debt payments. In addition, we may have other
discretionary expenditures, such as discretionary dividends, share
repurchases, and business acquisitions, that are not considered in
the calculation of Free Cash Flow.
Forward-Looking Statements
This release contains certain "forward-looking statements"
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. These statements are based on management's current
expectations and are subject to risks, uncertainty and changes in
circumstances, which may cause actual results, performance,
financial condition or achievements to differ materially from
anticipated results, performance, financial condition or
achievements. All statements contained herein that are not clearly
historical in nature are forward-looking and the words
"anticipate," "believe," "expect," "estimate," "plan," and similar
expressions are generally intended to identify forward-looking
statements. We have no intention and are under no obligation to
update or alter (and expressly disclaim any such intention or
obligation to do so) our forward-looking statements whether as a
result of new information, future events or otherwise, except to
the extent required by law. The forward-looking statements in this
release include statements addressing our future financial
condition and operating results, and the impact on our operations
resulting from the coronavirus disease 2019 ("COVID-19"). Examples
of factors that could cause actual results to differ materially
from those described in the forward-looking statements include,
among others, the extent, severity and duration of COVID-19
negatively affecting our business operations; business, economic,
competitive and regulatory risks, such as conditions affecting
demand for products in the automotive and other industries we
serve; competition and pricing pressure; fluctuations in foreign
currency exchange rates and commodity prices; natural disasters and
political, economic and military instability in countries in which
we operate, including continuing military conflict between
Russia and Ukraine resulting from Russia's invasion of Ukraine or escalating tensions in surrounding
countries; developments in the credit markets; future goodwill
impairment; compliance with current and future environmental and
other laws and regulations; and the possible effects on us of
changes in tax laws, tax treaties and other legislation, including
the effects of Swiss tax reform. In addition, the extent to which
COVID-19 will impact our business and our financial results will
depend on future developments, which are highly uncertain and
cannot be predicted. Such developments may include the geographic
spread of the virus, the severity of the virus, the duration of the
outbreak, the impact on our suppliers' and customers' supply
chains, the actions that may be taken by various governmental
authorities in response to the outbreak in jurisdictions in which
we operate, and the possible impact on the global economy and local
economies in which we operate. More detailed information
about these and other factors is set forth in TE Connectivity
Ltd.'s Annual Report on Form 10-K for the fiscal year ended
Sept 30, 2022, as well as in our
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
other reports filed by us with the U.S. Securities and Exchange
Commission.
TE CONNECTIVITY LTD.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
For the Nine Months Ended
|
|
June 30,
|
|
June 24,
|
|
June 30,
|
|
June 24,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions, except per share
data)
|
Net sales
|
$
|
3,998
|
|
$
|
4,097
|
|
$
|
11,999
|
|
$
|
11,922
|
Cost of
sales
|
|
2,699
|
|
|
2,769
|
|
|
8,229
|
|
|
8,027
|
Gross
margin
|
|
1,299
|
|
|
1,328
|
|
|
3,770
|
|
|
3,895
|
Selling, general, and
administrative expenses
|
|
431
|
|
|
393
|
|
|
1,258
|
|
|
1,172
|
Research, development,
and engineering expenses
|
|
176
|
|
|
179
|
|
|
534
|
|
|
539
|
Acquisition and
integration costs
|
|
9
|
|
|
11
|
|
|
26
|
|
|
29
|
Restructuring and other
charges, net
|
|
53
|
|
|
26
|
|
|
283
|
|
|
59
|
Operating
income
|
|
630
|
|
|
719
|
|
|
1,669
|
|
|
2,096
|
Interest
income
|
|
18
|
|
|
3
|
|
|
39
|
|
|
9
|
Interest
expense
|
|
(20)
|
|
|
(18)
|
|
|
(61)
|
|
|
(48)
|
Other income (expense),
net
|
|
(4)
|
|
|
4
|
|
|
(13)
|
|
|
24
|
Income from continuing operations
before income taxes
|
|
624
|
|
|
708
|
|
|
1,634
|
|
|
2,081
|
Income tax
expense
|
|
(96)
|
|
|
(116)
|
|
|
(283)
|
|
|
(362)
|
Income from continuing
operations
|
|
528
|
|
|
592
|
|
|
1,351
|
|
|
1,719
|
Income from
discontinued operations, net of income taxes
|
|
—
|
|
|
2
|
|
|
7
|
|
|
1
|
Net income
|
$
|
528
|
|
$
|
594
|
|
$
|
1,358
|
|
$
|
1,720
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1.68
|
|
$
|
1.84
|
|
$
|
4.28
|
|
$
|
5.31
|
Income from
discontinued operations
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
Net
income
|
|
1.68
|
|
|
1.84
|
|
|
4.30
|
|
|
5.31
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1.67
|
|
$
|
1.83
|
|
$
|
4.25
|
|
$
|
5.26
|
Income from
discontinued operations
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
Net
income
|
|
1.67
|
|
|
1.83
|
|
|
4.27
|
|
|
5.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
315
|
|
|
322
|
|
|
316
|
|
|
324
|
Diluted
|
|
317
|
|
|
324
|
|
|
318
|
|
|
327
|
TE CONNECTIVITY LTD.
|
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
2023
|
|
2022
|
|
(in millions, except share
data)
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,131
|
|
$
|
1,088
|
Accounts receivable,
net of allowance for doubtful accounts of $42 and $45,
respectively
|
|
2,998
|
|
|
2,865
|
Inventories
|
|
2,801
|
|
|
2,676
|
Prepaid expenses and
other current assets
|
|
719
|
|
|
639
|
Total current
assets
|
|
7,649
|
|
|
7,268
|
Property, plant, and
equipment, net
|
|
3,781
|
|
|
3,567
|
Goodwill
|
|
5,528
|
|
|
5,258
|
Intangible assets,
net
|
|
1,242
|
|
|
1,288
|
Deferred income
taxes
|
|
2,680
|
|
|
2,498
|
Other assets
|
|
821
|
|
|
903
|
Total assets
|
$
|
21,701
|
|
$
|
20,782
|
Liabilities, redeemable noncontrolling interests, and
shareholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
|
291
|
|
$
|
914
|
Accounts
payable
|
|
1,616
|
|
|
1,593
|
Accrued and other
current liabilities
|
|
2,351
|
|
|
2,125
|
Total current
liabilities
|
|
4,258
|
|
|
4,632
|
Long-term
debt
|
|
3,915
|
|
|
3,292
|
Long-term pension and
postretirement liabilities
|
|
735
|
|
|
695
|
Deferred income
taxes
|
|
211
|
|
|
244
|
Income taxes
|
|
335
|
|
|
304
|
Other
liabilities
|
|
791
|
|
|
718
|
Total liabilities
|
|
10,245
|
|
|
9,885
|
Commitments and
contingencies
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
107
|
|
|
95
|
Shareholders'
equity:
|
|
|
|
|
|
Common shares, CHF 0.57
par value, 322,470,281 shares authorized and issued, and
330,830,781
shares authorized and issued, respectively
|
|
142
|
|
|
146
|
Accumulated
earnings
|
|
12,372
|
|
|
12,832
|
Treasury shares, at
cost, 8,271,688 and 12,749,540 shares,
respectively
|
|
(1,085)
|
|
|
(1,681)
|
Accumulated other
comprehensive loss
|
|
(80)
|
|
|
(495)
|
Total shareholders' equity
|
|
11,349
|
|
|
10,802
|
Total liabilities, redeemable noncontrolling
interests, and shareholders' equity
|
$
|
21,701
|
|
$
|
20,782
|
TE CONNECTIVITY LTD.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
For the Nine Months Ended
|
|
June 30,
|
|
June 24,
|
|
June 30,
|
|
June 24,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions)
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
528
|
|
$
|
594
|
|
$
|
1,358
|
|
$
|
1,720
|
Income from
discontinued operations, net of income taxes
|
|
—
|
|
|
(2)
|
|
|
(7)
|
|
|
(1)
|
Income from continuing
operations
|
|
528
|
|
|
592
|
|
|
1,351
|
|
|
1,719
|
Adjustments to
reconcile income from continuing operations to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
200
|
|
|
205
|
|
|
594
|
|
|
597
|
Deferred income
taxes
|
|
(51)
|
|
|
(60)
|
|
|
(121)
|
|
|
(18)
|
Non-cash lease
cost
|
|
36
|
|
|
34
|
|
|
106
|
|
|
98
|
Provision for losses on
accounts receivable and inventories
|
|
13
|
|
|
11
|
|
|
82
|
|
|
79
|
Share-based
compensation expense
|
|
32
|
|
|
28
|
|
|
95
|
|
|
88
|
Impairment of held for
sale businesses
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
Other
|
|
17
|
|
|
(23)
|
|
|
85
|
|
|
(19)
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
22
|
|
|
(51)
|
|
|
(202)
|
|
|
(108)
|
Inventories
|
|
(50)
|
|
|
(28)
|
|
|
(323)
|
|
|
(439)
|
Prepaid expenses and
other current assets
|
|
(5)
|
|
|
21
|
|
|
(30)
|
|
|
57
|
Accounts
payable
|
|
(36)
|
|
|
(63)
|
|
|
68
|
|
|
(48)
|
Accrued and other
current liabilities
|
|
69
|
|
|
(11)
|
|
|
(14)
|
|
|
(316)
|
Income taxes
|
|
16
|
|
|
26
|
|
|
51
|
|
|
53
|
Other
|
|
(12)
|
|
|
(102)
|
|
|
185
|
|
|
(219)
|
Net cash provided by
operating activities
|
|
779
|
|
|
579
|
|
|
1,994
|
|
|
1,524
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(166)
|
|
|
(205)
|
|
|
(538)
|
|
|
(556)
|
Proceeds from sale of
property, plant, and equipment
|
|
1
|
|
|
35
|
|
|
3
|
|
|
98
|
Acquisition of
businesses, net of cash acquired
|
|
—
|
|
|
(14)
|
|
|
(108)
|
|
|
(116)
|
Proceeds from
divestiture of businesses, net of cash retained by businesses
sold
|
|
(3)
|
|
|
—
|
|
|
48
|
|
|
16
|
Other
|
|
(1)
|
|
|
(1)
|
|
|
22
|
|
|
(10)
|
Net cash used in
investing activities
|
|
(169)
|
|
|
(185)
|
|
|
(573)
|
|
|
(568)
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in commercial paper
|
|
3
|
|
|
237
|
|
|
(82)
|
|
|
237
|
Proceeds from issuance
of debt
|
|
—
|
|
|
—
|
|
|
499
|
|
|
588
|
Repayment of
debt
|
|
—
|
|
|
—
|
|
|
(591)
|
|
|
(558)
|
Proceeds from exercise
of share options
|
|
13
|
|
|
4
|
|
|
33
|
|
|
34
|
Repurchase of common
shares
|
|
(208)
|
|
|
(378)
|
|
|
(674)
|
|
|
(1,086)
|
Payment of common share
dividends to shareholders
|
|
(186)
|
|
|
(180)
|
|
|
(541)
|
|
|
(506)
|
Other
|
|
(2)
|
|
|
(1)
|
|
|
(30)
|
|
|
(39)
|
Net cash used in
financing activities
|
|
(380)
|
|
|
(318)
|
|
|
(1,386)
|
|
|
(1,330)
|
Effect of currency
translation on cash
|
|
(4)
|
|
|
(5)
|
|
|
8
|
|
|
(9)
|
Net increase (decrease) in cash, cash equivalents,
and restricted cash
|
|
226
|
|
|
71
|
|
|
43
|
|
|
(383)
|
Cash, cash equivalents, and restricted cash at
beginning of period
|
|
905
|
|
|
749
|
|
|
1,088
|
|
|
1,203
|
Cash, cash equivalents, and restricted cash at end of
period
|
$
|
1,131
|
|
$
|
820
|
|
$
|
1,131
|
|
$
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow
information:
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on debt,
net
|
$
|
9
|
|
$
|
10
|
|
$
|
48
|
|
$
|
39
|
Income taxes paid, net
of refunds
|
|
131
|
|
|
149
|
|
|
354
|
|
|
326
|
TE CONNECTIVITY LTD.
|
RECONCILIATION OF FREE CASH FLOW
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
For the Nine Months Ended
|
|
June 30,
|
|
June 24,
|
|
June 30,
|
|
June 24,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions)
|
Net cash provided by
operating activities
|
$
|
779
|
|
$
|
579
|
|
$
|
1,994
|
|
$
|
1,524
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
Cash (collected) paid
pursuant to collateral requirements related to
cross-currency swap contracts
|
|
—
|
|
|
14
|
|
|
—
|
|
|
(28)
|
Capital expenditures,
net
|
|
(165)
|
|
|
(170)
|
|
|
(535)
|
|
|
(458)
|
Free cash flow (1)
|
$
|
614
|
|
$
|
423
|
|
$
|
1,459
|
|
$
|
1,038
|
|
|
(1)
|
Free cash flow is a
non-GAAP financial measure. See description of non-GAAP financial
measures.
|
TE CONNECTIVITY LTD.
|
|
CONSOLIDATED SEGMENT DATA
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
|
For the Nine Months Ended
|
|
|
June 30,
|
|
|
June 24,
|
|
|
June 30,
|
|
|
June 24,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
($ in millions)
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
Transportation
Solutions
|
$
|
2,433
|
|
|
|
|
$
|
2,300
|
|
|
|
|
$
|
7,175
|
|
|
|
|
$
|
6,772
|
|
|
|
Industrial
Solutions
|
|
1,141
|
|
|
|
|
|
1,126
|
|
|
|
|
|
3,392
|
|
|
|
|
|
3,246
|
|
|
|
Communications
Solutions
|
|
424
|
|
|
|
|
|
671
|
|
|
|
|
|
1,432
|
|
|
|
|
|
1,904
|
|
|
|
Total
|
$
|
3,998
|
|
|
|
|
$
|
4,097
|
|
|
|
|
$
|
11,999
|
|
|
|
|
$
|
11,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
Transportation
Solutions
|
$
|
425
|
|
17.5
|
%
|
|
$
|
383
|
|
16.7
|
%
|
|
$
|
1,040
|
|
14.5
|
%
|
|
$
|
1,187
|
|
17.5
|
%
|
Industrial
Solutions
|
|
150
|
|
13.1
|
|
|
|
165
|
|
14.7
|
|
|
|
440
|
|
13.0
|
|
|
|
430
|
|
13.2
|
|
Communications
Solutions
|
|
55
|
|
13.0
|
|
|
|
171
|
|
25.5
|
|
|
|
189
|
|
13.2
|
|
|
|
479
|
|
25.2
|
|
Total
|
$
|
630
|
|
15.8
|
%
|
|
$
|
719
|
|
17.5
|
%
|
|
$
|
1,669
|
|
13.9
|
%
|
|
$
|
2,096
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
Adjusted
|
|
|
Adjusted
|
|
Adjusted
|
|
|
Adjusted
|
|
Adjusted
|
|
|
Adjusted
|
|
Adjusted
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Income (1)
|
|
Margin (1)
|
|
|
Income (1)
|
|
Margin (1)
|
|
|
Income (1)
|
|
Margin (1)
|
|
|
Income (1)
|
|
Margin (1)
|
|
Transportation
Solutions
|
$
|
452
|
|
18.6
|
%
|
|
$
|
397
|
|
17.3
|
%
|
|
$
|
1,221
|
|
17.0
|
%
|
|
$
|
1,211
|
|
17.9
|
%
|
Industrial
Solutions
|
|
180
|
|
15.8
|
|
|
|
186
|
|
16.5
|
|
|
|
529
|
|
15.6
|
|
|
|
501
|
|
15.4
|
|
Communications
Solutions
|
|
60
|
|
14.2
|
|
|
|
178
|
|
26.5
|
|
|
|
228
|
|
15.9
|
|
|
|
497
|
|
26.1
|
|
Total
|
$
|
692
|
|
17.3
|
%
|
|
$
|
761
|
|
18.6
|
%
|
|
$
|
1,978
|
|
16.5
|
%
|
|
$
|
2,209
|
|
18.5
|
%
|
|
|
(1)
|
Adjusted operating
income and adjusted operating margin are non-GAAP financial
measures. See description of non-GAAP financial
measures.
|
TE CONNECTIVITY LTD.
|
RECONCILIATION OF NET SALES GROWTH (DECLINE)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Sales for the Quarter Ended
June 30, 2023
|
|
versus Net Sales for the Quarter Ended
June 24, 2022
|
|
Net Sales
|
|
|
Organic Net Sales
|
|
|
|
|
Acquisitions/
|
|
Growth (Decline)
|
|
|
Growth (Decline) (1)
|
|
|
Translation (2)
|
|
(Divestiture)
|
|
($ in millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
118
|
|
7.2
|
%
|
|
$
|
143
|
|
8.8
|
%
|
|
$
|
(25)
|
|
$
|
—
|
Commercial
transportation
|
|
3
|
|
0.8
|
|
|
|
9
|
|
2.1
|
|
|
|
(6)
|
|
|
—
|
Sensors
|
|
12
|
|
4.4
|
|
|
|
11
|
|
4.1
|
|
|
|
1
|
|
|
—
|
Total
|
|
133
|
|
5.8
|
|
|
|
163
|
|
7.1
|
|
|
|
(30)
|
|
|
—
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
equipment
|
|
(48)
|
|
(10.2)
|
|
|
|
(46)
|
|
(9.8)
|
|
|
|
(2)
|
|
|
—
|
Aerospace, defense, and
marine
|
|
22
|
|
8.1
|
|
|
|
35
|
|
13.2
|
|
|
|
1
|
|
|
(14)
|
Energy
|
|
23
|
|
11.1
|
|
|
|
16
|
|
8.0
|
|
|
|
(3)
|
|
|
10
|
Medical
|
|
18
|
|
10.2
|
|
|
|
19
|
|
10.8
|
|
|
|
(1)
|
|
|
—
|
Total
|
|
15
|
|
1.3
|
|
|
|
24
|
|
2.2
|
|
|
|
(5)
|
|
|
(4)
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
(173)
|
|
(40.7)
|
|
|
|
(174)
|
|
(41.2)
|
|
|
|
(4)
|
|
|
5
|
Appliances
|
|
(74)
|
|
(30.1)
|
|
|
|
(71)
|
|
(28.9)
|
|
|
|
(3)
|
|
|
—
|
Total
|
|
(247)
|
|
(36.8)
|
|
|
|
(245)
|
|
(36.7)
|
|
|
|
(7)
|
|
|
5
|
Total
|
$
|
(99)
|
|
(2.4)
|
%
|
|
$
|
(58)
|
|
(1.4)
|
%
|
|
$
|
(42)
|
|
$
|
1
|
|
Change in Net Sales for the Nine Months Ended
June 30, 2023
|
|
versus Net Sales for the Nine Months Ended
June 24, 2022
|
|
Net Sales
|
|
|
Organic Net Sales
|
|
|
|
|
Acquisitions/
|
|
Growth (Decline)
|
|
|
Growth (Decline) (1)
|
|
|
Translation (2)
|
|
(Divestiture)
|
|
($ in millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
389
|
|
8.1
|
%
|
|
$
|
651
|
|
13.5
|
%
|
|
$
|
(262)
|
|
$
|
—
|
Commercial
transportation
|
|
(3)
|
|
(0.3)
|
|
|
|
42
|
|
3.6
|
|
|
|
(45)
|
|
|
—
|
Sensors
|
|
17
|
|
2.1
|
|
|
|
41
|
|
5.1
|
|
|
|
(24)
|
|
|
—
|
Total
|
|
403
|
|
6.0
|
|
|
|
734
|
|
10.8
|
|
|
|
(331)
|
|
|
—
|
Industrial Solutions
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
equipment
|
|
(73)
|
|
(5.2)
|
|
|
|
(17)
|
|
(1.2)
|
|
|
|
(56)
|
|
|
—
|
Aerospace, defense, and
marine
|
|
81
|
|
10.5
|
|
|
|
118
|
|
15.2
|
|
|
|
(17)
|
|
|
(20)
|
Energy
|
|
73
|
|
12.6
|
|
|
|
82
|
|
14.2
|
|
|
|
(24)
|
|
|
15
|
Medical
|
|
65
|
|
12.9
|
|
|
|
68
|
|
13.6
|
|
|
|
(3)
|
|
|
—
|
Total
|
|
146
|
|
4.5
|
|
|
|
251
|
|
7.7
|
|
|
|
(100)
|
|
|
(5)
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
(304)
|
|
(25.9)
|
|
|
|
(294)
|
|
(25.1)
|
|
|
|
(28)
|
|
|
18
|
Appliances
|
|
(168)
|
|
(23.0)
|
|
|
|
(145)
|
|
(19.8)
|
|
|
|
(23)
|
|
|
—
|
Total
|
|
(472)
|
|
(24.8)
|
|
|
|
(439)
|
|
(23.1)
|
|
|
|
(51)
|
|
|
18
|
Total
|
$
|
77
|
|
0.6
|
%
|
|
$
|
546
|
|
4.6
|
%
|
|
$
|
(482)
|
|
$
|
13
|
|
|
(1)
|
Organic net sales
growth (decline) is a non-GAAP financial measure. See description
of non-GAAP financial measures.
|
(2)
|
Represents the change
in net sales resulting from changes in foreign currency exchange
rates.
|
(3)
|
Industry end market
information is presented consistently with our internal management
reporting and may be periodically revised as management deems
necessary.
|
TE CONNECTIVITY LTD.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES
|
|
For the Quarter Ended
June 30, 2023
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
Related
|
|
and Other
|
|
Adjusted
|
|
|
U.S. GAAP
|
|
|
Charges (1)
|
|
Charges, Net (1)
|
|
(Non-GAAP) (2)
|
|
|
($ in millions, except per share
data)
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
425
|
|
|
$
|
—
|
|
$
|
27
|
|
$
|
452
|
|
Industrial
Solutions
|
|
150
|
|
|
|
8
|
|
|
22
|
|
|
180
|
|
Communications
Solutions
|
|
55
|
|
|
|
1
|
|
|
4
|
|
|
60
|
|
Total
|
$
|
630
|
|
|
$
|
9
|
|
$
|
53
|
|
$
|
692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
15.8
|
%
|
|
|
|
|
|
|
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net
|
$
|
(4)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
$
|
(96)
|
|
|
$
|
(2)
|
|
$
|
(27)
|
|
$
|
(125)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
528
|
|
|
$
|
7
|
|
$
|
26
|
|
$
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
$
|
1.67
|
|
|
$
|
0.02
|
|
$
|
0.08
|
|
$
|
1.77
|
|
|
|
(1)
|
The tax effect of each
non-GAAP adjustment is calculated based on the jurisdictions in
which the expense (income) is incurred and the tax laws in effect
for each such jurisdiction.
|
(2)
|
See description of
non-GAAP financial measures.
|
TE CONNECTIVITY LTD.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES
|
|
For the Quarter Ended
June 24, 2022
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and Other
|
|
|
|
|
Adjusted
|
|
|
U.S. GAAP
|
|
|
Charges (1)
|
|
Charges, Net (1)(2)
|
|
Tax Items (3)
|
|
(Non-GAAP) (4)
|
|
|
($ in millions, except per share
data)
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
383
|
|
|
$
|
5
|
|
$
|
9
|
|
$
|
—
|
|
$
|
397
|
|
Industrial
Solutions
|
|
165
|
|
|
|
6
|
|
|
15
|
|
|
—
|
|
|
186
|
|
Communications
Solutions
|
|
171
|
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
178
|
|
Total
|
$
|
719
|
|
|
$
|
12
|
|
$
|
30
|
|
$
|
—
|
|
$
|
761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
$
|
4
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
$
|
(116)
|
|
|
$
|
(3)
|
|
$
|
(6)
|
|
$
|
(21)
|
|
$
|
(146)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
592
|
|
|
$
|
9
|
|
$
|
24
|
|
$
|
(21)
|
|
$
|
604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
$
|
1.83
|
|
|
$
|
0.03
|
|
$
|
0.07
|
|
$
|
(0.06)
|
|
$
|
1.86
|
|
|
|
(1)
|
The tax effect of each
non-GAAP adjustment is calculated based on the jurisdictions in
which the expense (income) is incurred and the tax laws in effect
for each such jurisdiction.
|
(2)
|
Includes $26 million
recorded in net restructuring and other charges and $4 million
recorded in cost of sales.
|
(3)
|
Includes a $21 million
income tax benefit related to the tax impacts of an intercompany
transaction.
|
(4)
|
See description of
non-GAAP financial measures.
|
TE CONNECTIVITY LTD.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES
|
|
For the Nine Months Ended
June 30, 2023
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
Related
|
|
and Other
|
|
Adjusted
|
|
|
U.S. GAAP
|
|
|
Charges (1)
|
|
Charges, Net (1)
|
|
(Non-GAAP) (2)
|
|
|
($ in millions, except per share
data)
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
1,040
|
|
|
$
|
2
|
|
$
|
179
|
|
$
|
1,221
|
|
Industrial
Solutions
|
|
440
|
|
|
|
21
|
|
|
68
|
|
|
529
|
|
Communications
Solutions
|
|
189
|
|
|
|
3
|
|
|
36
|
|
|
228
|
|
Total
|
$
|
1,669
|
|
|
$
|
26
|
|
$
|
283
|
|
$
|
1,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net
|
$
|
(13)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
$
|
(283)
|
|
|
$
|
(5)
|
|
$
|
(82)
|
|
$
|
(370)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1,351
|
|
|
$
|
21
|
|
$
|
201
|
|
$
|
1,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
$
|
4.25
|
|
|
$
|
0.07
|
|
$
|
0.63
|
|
$
|
4.95
|
|
|
|
(1)
|
The tax effect of each
non-GAAP adjustment is calculated based on the jurisdictions in
which the expense (income) is incurred and the tax laws in effect
for each such jurisdiction.
|
(2)
|
See description of
non-GAAP financial measures.
|
TE CONNECTIVITY LTD.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES
|
|
For the Nine Months Ended
June 24, 2022
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and Other
|
|
|
|
|
Adjusted
|
|
|
U.S. GAAP
|
|
|
Charges (1)
|
|
Charges, Net (1)(2)
|
|
Tax Items (3)
|
|
(Non-GAAP) (4)
|
|
|
($ in millions, except per share
data)
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
1,187
|
|
|
$
|
12
|
|
$
|
12
|
|
$
|
—
|
|
$
|
1,211
|
|
Industrial
Solutions
|
|
430
|
|
|
|
24
|
|
|
47
|
|
|
—
|
|
|
501
|
|
Communications
Solutions
|
|
479
|
|
|
|
2
|
|
|
16
|
|
|
—
|
|
|
497
|
|
Total
|
$
|
2,096
|
|
|
$
|
38
|
|
$
|
75
|
|
$
|
—
|
|
$
|
2,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
$
|
24
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(11)
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
$
|
(362)
|
|
|
$
|
(8)
|
|
$
|
(18)
|
|
$
|
(18)
|
|
$
|
(406)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1,719
|
|
|
$
|
30
|
|
$
|
57
|
|
$
|
(29)
|
|
$
|
1,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
$
|
5.26
|
|
|
$
|
0.09
|
|
$
|
0.17
|
|
$
|
(0.09)
|
|
$
|
5.43
|
|
|
|
(1)
|
The tax effect of each
non-GAAP adjustment is calculated based on the jurisdictions in
which the expense (income) is incurred and the tax laws in effect
for each such jurisdiction.
|
(2)
|
Includes $59 million
recorded in net restructuring and other charges and $16 million
recorded in cost of sales.
|
(3)
|
Includes a $57 million
income tax benefit related to the tax impacts of an intercompany
transaction, $27 million of income tax expense related to the
write-down of certain deferred tax assets to the lower tax rate
enacted in the canton of Schaffhausen, and $12 million of income
tax expense related to an income tax audit of an acquired entity,
as well as the related impact of $11 million to other income
pursuant to the indemnification terms of the purchase
agreement.
|
(4)
|
See description
of non-GAAP financial measures.
|
TE CONNECTIVITY LTD.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES
|
|
For the Quarter Ended September
30, 2022
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and Other
|
|
|
|
|
Adjusted
|
|
|
U.S. GAAP
|
|
|
Charges (1)
|
|
Charges, Net (1)
|
|
Tax Items (2)
|
|
(Non-GAAP) (3)
|
|
|
($ in millions, except per share
data)
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
347
|
|
|
$
|
4
|
|
$
|
56
|
|
$
|
—
|
|
$
|
407
|
|
Industrial
Solutions
|
|
177
|
|
|
|
8
|
|
|
19
|
|
|
—
|
|
|
204
|
|
Communications
Solutions
|
|
136
|
|
|
|
3
|
|
|
7
|
|
|
—
|
|
|
146
|
|
Total
|
$
|
660
|
|
|
$
|
15
|
|
$
|
82
|
|
$
|
—
|
|
$
|
757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
$
|
4
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit
|
$
|
56
|
|
|
$
|
(3)
|
|
$
|
(16)
|
|
$
|
(182)
|
|
$
|
(145)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
(8.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
708
|
|
|
$
|
12
|
|
$
|
66
|
|
$
|
(182)
|
|
$
|
604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
$
|
2.21
|
|
|
$
|
0.04
|
|
$
|
0.21
|
|
$
|
(0.57)
|
|
$
|
1.88
|
|
|
|
(1)
|
The tax effect of each
non-GAAP adjustment is calculated based on the jurisdictions in
which the expense (income) is incurred and the tax laws in effect
for each such jurisdiction.
|
(2)
|
Includes a $67 million
income tax benefit related to the tax impacts of certain
intercompany transactions, a $64 million income tax benefit related
primarily to a lapse of a statute of limitation, and a $51 million
income tax benefit related to the release of a valuation allowance
associated primarily with improved current and expected future
operating profit and taxable income.
|
(3)
|
See description of
non-GAAP financial measures.
|
TE CONNECTIVITY LTD.
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES
|
|
For the Year Ended September 30,
2022
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and Other
|
|
|
|
Adjusted
|
|
|
U.S. GAAP
|
|
|
Charges (1)
|
|
Charges, Net (1)(2)
|
|
Tax Items (3)
|
|
(Non-GAAP) (4)
|
|
|
($ in millions, except per share
data)
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
1,534
|
|
|
$
|
16
|
|
$
|
68
|
|
$
|
—
|
|
$
|
1,618
|
|
Industrial
Solutions
|
|
607
|
|
|
|
32
|
|
|
66
|
|
|
—
|
|
|
705
|
|
Communications
Solutions
|
|
615
|
|
|
|
5
|
|
|
23
|
|
|
—
|
|
|
643
|
|
Total
|
$
|
2,756
|
|
|
$
|
53
|
|
$
|
157
|
|
$
|
—
|
|
$
|
2,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
$
|
28
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(11)
|
|
$
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
$
|
(306)
|
|
|
$
|
(11)
|
|
$
|
(34)
|
|
$
|
(200)
|
|
$
|
(551)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
2,427
|
|
|
$
|
42
|
|
$
|
123
|
|
$
|
(211)
|
|
$
|
2,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from
continuing operations
|
$
|
7.47
|
|
|
$
|
0.13
|
|
$
|
0.38
|
|
$
|
(0.65)
|
|
$
|
7.33
|
|
|
|
(1)
|
The tax effect of each
non-GAAP adjustment is calculated based on the jurisdictions in
which the expense (income) is incurred and the tax laws in effect
for each such jurisdiction.
|
(2)
|
Includes $141 million
recorded in net restructuring and other charges and $16 million
recorded in cost of sales.
|
(3)
|
Includes a $124 million
income tax benefit related to the tax impacts of certain
intercompany transactions, a $64 million income tax benefit related
primarily to a lapse of a statute of limitation, and a $51 million
income tax benefit related to the release of a valuation allowance
associated primarily with improved current and expected future
operating profit and taxable income. Also includes $27 million of
income tax expense related to the write-down of certain deferred
tax assets to the lower corporate tax rate enacted in the canton of
Schaffhausen and $12 million of income tax expense related to an
income tax audit of an acquired entity, as well as the related
impact of $11 million to other income pursuant to the terms of the
purchase agreement.
|
(4)
|
See description of
non-GAAP financial measures.
|
TE CONNECTIVITY LTD.
|
RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL
MEASURES
|
TO FORWARD-LOOKING GAAP FINANCIAL
MEASURES
|
As of July 26, 2023
|
(UNAUDITED)
|
|
|
|
|
Outlook for
|
|
|
Quarter Ending
|
|
|
September 29,
|
|
|
2023
|
|
Diluted earnings per share from continuing
operations
|
$
|
1.63
|
|
Restructuring and other
charges, net
|
|
0.10
|
|
Acquisition-related
charges
|
|
0.02
|
|
Adjusted diluted earnings per share from continuing
operations (1)
|
$
|
1.75
|
|
|
|
(1)
|
See description of
non-GAAP financial measures.
|
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SOURCE TE Connectivity Ltd.