Q4 earnings per share exceed
guidance;
Full year results reflect strong margin
and EPS expansion from first half to second
half;
Record cash generated for the quarter and
the full year
SCHAFFHAUSEN, Switzerland, Nov. 1, 2023
/PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL) today reported
results for the fiscal fourth quarter and year ended Sept. 29, 2023.
Fourth Quarter Highlights
- Net sales were $4 billion,
essentially flat on a reported basis and down 2% organically, when
comparing both to a 13-week fourth quarter in fiscal year
2022.
- GAAP diluted earnings per share (EPS) from continuing
operations were $1.75, down 21% year
over year.
- Adjusted EPS were $1.78, an
increase of 2% versus the prior year on a 13-week comparison
basis.
- Orders were $3.9 billion, with
sequential growth in the Transportation and Communications
segments.
- Cash flow from operating activities was $1.1 billion and free cash flow was $945 million, both quarterly records, as the
company continues to demonstrate its strong cash generation
model.
Full Year Highlights
- Net sales were $16 billion,
essentially flat on a reported basis despite currency exchange
headwinds of $430 million, and up 3%
organically, with growth in the Transportation and Industrial
segments, when comparing both to a 52-week prior year.
- GAAP EPS from continuing operations were $6.01, down 20% year over year.
- Adjusted EPS were $6.74, down 6%
versus the prior year on a 52-week comparison basis.
- Strong margin and EPS expansion in the second half compared to
the first half of the year, driven by strong operational
performance.
- Cash flow from operating activities was $3.1 billion and free cash flow was $2.4 billion, both company records, with
approximately $1.7 billion returned
to shareholders.
"I'm pleased with our strong finish to fiscal 2023, as we
delivered earnings above guidance for the quarter along with record
cash flow that resulted in over 100% free cash flow conversion,"
said TE Connectivity CEO Terrence
Curtin. "For the full year, our teams delivered
year-over-year organic sales growth in our Transportation and
Industrial segments, as the strength and diversity of our portfolio
allowed us to overcome cyclicality in some of our end markets and
headwinds from currency exchange. In Transportation, we continued
to capitalize on our leading global position in electric vehicles
to drive sales growth and, importantly, expand margins in the
second half. Our Industrial segment demonstrated continued growth
momentum in renewable energy applications and benefited from
ongoing recovery in the commercial air and medical markets. While
our Communications segment declined in 2023 as expected, we are
seeing positive momentum from artificial intelligence applications
where our high-speed connectivity solutions and engineering
expertise have resulted in key design wins with technology
leaders.
"As we look to the year ahead, while we remain in a dynamic
market environment, we are confident in our ability to drive
profitable growth leveraging key trends including e-mobility,
renewable energy and artificial intelligence, where our advanced
technology and close customer partnerships are helping to create a
safer, sustainable, productive and connected future."
First Quarter FY24 Outlook
For the first quarter of fiscal 2024, the company expects net
sales of approximately $3.85
billion, flat on both a reported and organic basis year over
year. GAAP EPS from continuing operations are expected to
be approximately $1.59, up 27%
year over year, with adjusted EPS of approximately $1.70, up more than 10% year over year, with
strong margin expansion.
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
beginning 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 Nov. 1, 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
- Net Sales Excluding the Impact of the Additional Week, Net
Sales Growth (Decline) Excluding the Impact of the Additional Week,
Organic Net Sales Growth (Decline) Excluding the Impact of the
Additional Week, and Adjusted Earnings Per Share Excluding the
Impact of the Additional Week – represent certain GAAP and non-GAAP
financial measures excluding the impact of the additional week in
the fourth quarter of the fiscal year for fiscal years which are 53
weeks in length.
- 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.
- Free Cash Flow Conversion – represents the ratio of Free Cash
Flow to Adjusted Income from Continuing Operations. We use Free
Cash Flow Conversion as an indicator of our ability to convert
earnings to cash.
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. 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 business interruptions, such as the
coronavirus disease 2019 ("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. 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 Years
Ended
|
|
September 29,
|
|
September 30,
|
|
September 29,
|
|
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions, except
per share data)
|
Net
sales
|
$
|
4,035
|
|
$
|
4,359
|
|
$
|
16,034
|
|
$
|
16,281
|
Cost of
sales
|
|
2,750
|
|
|
3,010
|
|
|
10,979
|
|
|
11,037
|
Gross
margin
|
|
1,285
|
|
|
1,349
|
|
|
5,055
|
|
|
5,244
|
Selling, general, and
administrative expenses
|
|
412
|
|
|
412
|
|
|
1,670
|
|
|
1,584
|
Research, development,
and engineering expenses
|
|
174
|
|
|
179
|
|
|
708
|
|
|
718
|
Acquisition and
integration costs
|
|
7
|
|
|
16
|
|
|
33
|
|
|
45
|
Restructuring and other
charges, net
|
|
57
|
|
|
82
|
|
|
340
|
|
|
141
|
Operating
income
|
|
635
|
|
|
660
|
|
|
2,304
|
|
|
2,756
|
Interest
income
|
|
21
|
|
|
6
|
|
|
60
|
|
|
15
|
Interest
expense
|
|
(19)
|
|
|
(18)
|
|
|
(80)
|
|
|
(66)
|
Other income (expense),
net
|
|
(3)
|
|
|
4
|
|
|
(16)
|
|
|
28
|
Income from
continuing operations before income taxes
|
|
634
|
|
|
652
|
|
|
2,268
|
|
|
2,733
|
Income tax (expense)
benefit
|
|
(81)
|
|
|
56
|
|
|
(364)
|
|
|
(306)
|
Income from
continuing operations
|
|
553
|
|
|
708
|
|
|
1,904
|
|
|
2,427
|
Income (loss) from
discontinued operations, net of income taxes
|
|
(1)
|
|
|
—
|
|
|
6
|
|
|
1
|
Net
income
|
$
|
552
|
|
$
|
708
|
|
$
|
1,910
|
|
$
|
2,428
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1.77
|
|
$
|
2.22
|
|
$
|
6.04
|
|
$
|
7.51
|
Income (loss) from
discontinued operations
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
Net income
|
|
1.76
|
|
|
2.22
|
|
|
6.06
|
|
|
7.52
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1.75
|
|
$
|
2.21
|
|
$
|
6.01
|
|
$
|
7.47
|
Income (loss) from
discontinued operations
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
Net income
|
|
1.75
|
|
|
2.21
|
|
|
6.03
|
|
|
7.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
313
|
|
|
319
|
|
|
315
|
|
|
323
|
Diluted
|
|
316
|
|
|
321
|
|
|
317
|
|
|
325
|
TE CONNECTIVITY
LTD.
|
CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 29,
|
|
September 30,
|
|
2023
|
|
2022
|
|
(in millions, except
share data)
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,661
|
|
$
|
1,088
|
Accounts receivable,
net of allowance for doubtful accounts of $30 and $45,
respectively
|
|
2,967
|
|
|
2,865
|
Inventories
|
|
2,552
|
|
|
2,676
|
Prepaid expenses and
other current assets
|
|
712
|
|
|
639
|
Total current
assets
|
|
7,892
|
|
|
7,268
|
Property, plant, and
equipment, net
|
|
3,754
|
|
|
3,567
|
Goodwill
|
|
5,463
|
|
|
5,258
|
Intangible assets,
net
|
|
1,175
|
|
|
1,288
|
Deferred income
taxes
|
|
2,600
|
|
|
2,498
|
Other assets
|
|
828
|
|
|
903
|
Total
assets
|
$
|
21,712
|
|
$
|
20,782
|
Liabilities,
redeemable noncontrolling interests, and shareholders'
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
|
682
|
|
$
|
914
|
Accounts
payable
|
|
1,563
|
|
|
1,593
|
Accrued and other
current liabilities
|
|
2,218
|
|
|
2,125
|
Total current
liabilities
|
|
4,463
|
|
|
4,632
|
Long-term
debt
|
|
3,529
|
|
|
3,292
|
Long-term pension and
postretirement liabilities
|
|
728
|
|
|
695
|
Deferred income
taxes
|
|
185
|
|
|
244
|
Income taxes
|
|
365
|
|
|
304
|
Other
liabilities
|
|
787
|
|
|
718
|
Total
liabilities
|
|
10,057
|
|
|
9,885
|
Commitments and
contingencies
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
104
|
|
|
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
|
|
12,947
|
|
|
12,832
|
Treasury shares, at
cost, 10,487,742 and 12,749,540 shares, respectively
|
|
(1,380)
|
|
|
(1,681)
|
Accumulated other
comprehensive loss
|
|
(158)
|
|
|
(495)
|
Total shareholders'
equity
|
|
11,551
|
|
|
10,802
|
Total liabilities,
redeemable noncontrolling interests, and shareholders'
equity
|
$
|
21,712
|
|
$
|
20,782
|
TE CONNECTIVITY
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
For the Years
Ended
|
|
September 29,
|
|
September 30,
|
|
September 29,
|
|
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
552
|
|
$
|
708
|
|
$
|
1,910
|
|
$
|
2,428
|
(Income) loss from
discontinued operations, net of income taxes
|
|
1
|
|
|
—
|
|
|
(6)
|
|
|
(1)
|
Income from continuing
operations
|
|
553
|
|
|
708
|
|
|
1,904
|
|
|
2,427
|
Adjustments to
reconcile income from continuing operations to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
200
|
|
|
188
|
|
|
794
|
|
|
785
|
Deferred income
taxes
|
|
44
|
|
|
(129)
|
|
|
(77)
|
|
|
(147)
|
Non-cash lease
cost
|
|
23
|
|
|
33
|
|
|
129
|
|
|
131
|
Provision for losses on
accounts receivable and inventories
|
|
(6)
|
|
|
(9)
|
|
|
76
|
|
|
70
|
Share-based
compensation expense
|
|
28
|
|
|
31
|
|
|
123
|
|
|
119
|
Impairment of held for
sale businesses
|
|
7
|
|
|
14
|
|
|
74
|
|
|
14
|
Other
|
|
16
|
|
|
28
|
|
|
101
|
|
|
9
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
56
|
|
|
308
|
|
|
(146)
|
|
|
200
|
Inventories
|
|
278
|
|
|
398
|
|
|
(45)
|
|
|
(41)
|
Prepaid expenses and
other current assets
|
|
47
|
|
|
(7)
|
|
|
17
|
|
|
50
|
Accounts
payable
|
|
(69)
|
|
|
(348)
|
|
|
(1)
|
|
|
(396)
|
Accrued and other
current liabilities
|
|
35
|
|
|
(82)
|
|
|
21
|
|
|
(398)
|
Income taxes
|
|
(34)
|
|
|
(21)
|
|
|
17
|
|
|
32
|
Other
|
|
(40)
|
|
|
(168)
|
|
|
145
|
|
|
(387)
|
Net cash provided by
operating activities
|
|
1,138
|
|
|
944
|
|
|
3,132
|
|
|
2,468
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(194)
|
|
|
(212)
|
|
|
(732)
|
|
|
(768)
|
Proceeds from sale of
property, plant, and equipment
|
|
1
|
|
|
8
|
|
|
4
|
|
|
106
|
Acquisition of
businesses, net of cash acquired
|
|
(2)
|
|
|
(104)
|
|
|
(110)
|
|
|
(220)
|
Proceeds from
divestiture of businesses, net of cash retained by businesses
sold
|
|
—
|
|
|
—
|
|
|
48
|
|
|
16
|
Other
|
|
—
|
|
|
(2)
|
|
|
22
|
|
|
(12)
|
Net cash used in
investing activities
|
|
(195)
|
|
|
(310)
|
|
|
(768)
|
|
|
(878)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in commercial paper
|
|
42
|
|
|
133
|
|
|
(40)
|
|
|
370
|
Proceeds from issuance
of debt
|
|
—
|
|
|
—
|
|
|
499
|
|
|
588
|
Repayment of
debt
|
|
—
|
|
|
—
|
|
|
(591)
|
|
|
(558)
|
Proceeds from exercise
of share options
|
|
10
|
|
|
20
|
|
|
43
|
|
|
54
|
Repurchase of common
shares
|
|
(271)
|
|
|
(326)
|
|
|
(945)
|
|
|
(1,412)
|
Payment of common share
dividends to shareholders
|
|
(184)
|
|
|
(179)
|
|
|
(725)
|
|
|
(685)
|
Other
|
|
(4)
|
|
|
(2)
|
|
|
(34)
|
|
|
(41)
|
Net cash used in
financing activities
|
|
(407)
|
|
|
(354)
|
|
|
(1,793)
|
|
|
(1,684)
|
Effect of currency
translation on cash
|
|
(6)
|
|
|
(12)
|
|
|
2
|
|
|
(21)
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
|
530
|
|
|
268
|
|
|
573
|
|
|
(115)
|
Cash, cash
equivalents, and restricted cash at beginning of
period
|
|
1,131
|
|
|
820
|
|
|
1,088
|
|
|
1,203
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
1,661
|
|
$
|
1,088
|
|
$
|
1,661
|
|
$
|
1,088
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on debt,
net
|
$
|
27
|
|
$
|
19
|
|
$
|
75
|
|
$
|
58
|
Income taxes paid, net
of refunds
|
|
71
|
|
|
95
|
|
|
425
|
|
|
421
|
TE CONNECTIVITY
LTD.
|
RECONCILIATION OF
FREE CASH FLOW (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
For the Years
Ended
|
|
September 29,
|
|
September 30,
|
|
September 29,
|
|
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
Net cash provided by
operating activities
|
$
|
1,138
|
|
$
|
944
|
|
$
|
3,132
|
|
$
|
2,468
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
Cash (collected) paid
pursuant to collateral requirements related to cross-currency swap
contracts
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(23)
|
Capital expenditures,
net
|
|
(193)
|
|
|
(204)
|
|
|
(728)
|
|
|
(662)
|
Free cash flow
(1)
|
$
|
945
|
|
$
|
745
|
|
$
|
2,404
|
|
$
|
1,783
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Years
Ended
|
|
|
September 29,
|
|
|
September 30,
|
|
|
September 29,
|
|
|
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
($ in
millions)
|
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
Transportation
Solutions
|
$
|
2,413
|
|
|
|
|
$
|
2,447
|
|
|
|
|
$
|
9,588
|
|
|
|
|
$
|
9,219
|
|
|
|
Industrial
Solutions
|
|
1,159
|
|
|
|
|
|
1,244
|
|
|
|
|
|
4,551
|
|
|
|
|
|
4,490
|
|
|
|
Communications
Solutions
|
|
463
|
|
|
|
|
|
668
|
|
|
|
|
|
1,895
|
|
|
|
|
|
2,572
|
|
|
|
Total
|
$
|
4,035
|
|
|
|
|
$
|
4,359
|
|
|
|
|
$
|
16,034
|
|
|
|
|
$
|
16,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
Transportation
Solutions
|
$
|
411
|
|
17.0
|
%
|
|
$
|
347
|
|
14.2
|
%
|
|
$
|
1,451
|
|
15.1
|
%
|
|
$
|
1,534
|
|
16.6
|
%
|
Industrial
Solutions
|
|
162
|
|
14.0
|
|
|
|
177
|
|
14.2
|
|
|
|
602
|
|
13.2
|
|
|
|
607
|
|
13.5
|
|
Communications
Solutions
|
|
62
|
|
13.4
|
|
|
|
136
|
|
20.4
|
|
|
|
251
|
|
13.2
|
|
|
|
615
|
|
23.9
|
|
Total
|
$
|
635
|
|
15.7
|
%
|
|
$
|
660
|
|
15.1
|
%
|
|
$
|
2,304
|
|
14.4
|
%
|
|
$
|
2,756
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
444
|
|
18.4
|
%
|
|
$
|
407
|
|
16.6
|
%
|
|
$
|
1,665
|
|
17.4
|
%
|
|
$
|
1,618
|
|
17.6
|
%
|
Industrial
Solutions
|
|
184
|
|
15.9
|
|
|
|
204
|
|
16.4
|
|
|
|
713
|
|
15.7
|
|
|
|
705
|
|
15.7
|
|
Communications
Solutions
|
|
71
|
|
15.3
|
|
|
|
146
|
|
21.9
|
|
|
|
299
|
|
15.8
|
|
|
|
643
|
|
25.0
|
|
Total
|
$
|
699
|
|
17.3
|
%
|
|
$
|
757
|
|
17.4
|
%
|
|
$
|
2,677
|
|
16.7
|
%
|
|
$
|
2,966
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 29, 2023
|
|
versus Net Sales for
the Quarter Ended September 30, 2022
|
|
Net
Sales
|
|
|
Organic Net
Sales
|
|
|
|
|
Acquisitions/
|
|
Growth
(Decline)
|
|
|
Growth (Decline)
(1)
|
|
|
Translation
(2)
|
|
(Divestiture)
|
|
($ in
millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
35
|
|
2.0
|
%
|
|
$
|
11
|
|
0.8
|
%
|
|
$
|
24
|
|
$
|
—
|
Commercial
transportation
|
|
(54)
|
|
(12.8)
|
|
|
|
(59)
|
|
(14.1)
|
|
|
|
5
|
|
|
—
|
Sensors
|
|
(15)
|
|
(5.0)
|
|
|
|
(21)
|
|
(7.2)
|
|
|
|
6
|
|
|
—
|
Total
|
|
(34)
|
|
(1.4)
|
|
|
|
(69)
|
|
(2.8)
|
|
|
|
35
|
|
|
—
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
equipment
|
|
(125)
|
|
(24.4)
|
|
|
|
(137)
|
|
(26.9)
|
|
|
|
12
|
|
|
—
|
Aerospace, defense, and
marine
|
|
10
|
|
3.2
|
|
|
|
21
|
|
6.7
|
|
|
|
7
|
|
|
(18)
|
Energy
|
|
6
|
|
2.7
|
|
|
|
(5)
|
|
(2.2)
|
|
|
|
2
|
|
|
9
|
Medical
|
|
24
|
|
12.4
|
|
|
|
23
|
|
11.9
|
|
|
|
1
|
|
|
—
|
Total
|
|
(85)
|
|
(6.8)
|
|
|
|
(98)
|
|
(7.9)
|
|
|
|
22
|
|
|
(9)
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
(140)
|
|
(32.3)
|
|
|
|
(143)
|
|
(33.1)
|
|
|
|
2
|
|
|
1
|
Appliances
|
|
(65)
|
|
(27.7)
|
|
|
|
(66)
|
|
(27.9)
|
|
|
|
1
|
|
|
—
|
Total
|
|
(205)
|
|
(30.7)
|
|
|
|
(209)
|
|
(31.3)
|
|
|
|
3
|
|
|
1
|
Total
|
$
|
(324)
|
|
(7.4)
|
%
|
|
$
|
(376)
|
|
(8.6)
|
%
|
|
$
|
60
|
|
$
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Sales
for the Year Ended September 29, 2023
|
|
versus Net Sales for
the Year Ended September 30, 2022
|
|
Net
Sales
|
|
|
Organic Net
Sales
|
|
|
|
|
Acquisitions/
|
|
Growth
(Decline)
|
|
|
Growth (Decline)
(1)
|
|
|
Translation
(2)
|
|
(Divestiture)
|
|
($ in
millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
424
|
|
6.5
|
%
|
|
$
|
662
|
|
10.2
|
%
|
|
$
|
(238)
|
|
$
|
—
|
Commercial
transportation
|
|
(57)
|
|
(3.6)
|
|
|
|
(17)
|
|
(1.1)
|
|
|
|
(40)
|
|
|
—
|
Sensors
|
|
2
|
|
0.2
|
|
|
|
20
|
|
1.8
|
|
|
|
(18)
|
|
|
—
|
Total
|
|
369
|
|
4.0
|
|
|
|
665
|
|
7.2
|
|
|
|
(296)
|
|
|
—
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
equipment
|
|
(198)
|
|
(10.4)
|
|
|
|
(154)
|
|
(8.1)
|
|
|
|
(44)
|
|
|
—
|
Aerospace, defense, and
marine
|
|
91
|
|
8.4
|
|
|
|
139
|
|
12.8
|
|
|
|
(10)
|
|
|
(38)
|
Energy
|
|
79
|
|
9.8
|
|
|
|
77
|
|
9.6
|
|
|
|
(22)
|
|
|
24
|
Medical
|
|
89
|
|
12.8
|
|
|
|
91
|
|
13.1
|
|
|
|
(2)
|
|
|
—
|
Total
|
|
61
|
|
1.4
|
|
|
|
153
|
|
3.4
|
|
|
|
(78)
|
|
|
(14)
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
(444)
|
|
(27.6)
|
|
|
|
(437)
|
|
(27.2)
|
|
|
|
(26)
|
|
|
19
|
Appliances
|
|
(233)
|
|
(24.1)
|
|
|
|
(211)
|
|
(21.8)
|
|
|
|
(22)
|
|
|
—
|
Total
|
|
(677)
|
|
(26.3)
|
|
|
|
(648)
|
|
(25.2)
|
|
|
|
(48)
|
|
|
19
|
Total
|
$
|
(247)
|
|
(1.5)
|
%
|
|
$
|
170
|
|
1.0
|
%
|
|
$
|
(422)
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 29, 2023
|
|
(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
|
$
|
411
|
|
|
$
|
1
|
|
$
|
32
|
|
$
|
—
|
|
$
|
444
|
|
Industrial
Solutions
|
|
162
|
|
|
|
6
|
|
|
16
|
|
|
—
|
|
|
184
|
|
Communications
Solutions
|
|
62
|
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
71
|
|
Total
|
$
|
635
|
|
|
$
|
7
|
|
$
|
57
|
|
$
|
—
|
|
$
|
699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
$
|
(3)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(81)
|
|
|
$
|
(1)
|
|
$
|
(3)
|
|
$
|
(49)
|
|
$
|
(134)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
553
|
|
|
$
|
6
|
|
$
|
54
|
|
$
|
(49)
|
|
$
|
564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$
|
1.75
|
|
|
$
|
0.02
|
|
$
|
0.17
|
|
$
|
(0.16)
|
|
$
|
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
Represents income tax benefits associated with a decrease in the
valuation allowance for certain tax loss and credit
carryforwards.
|
|
(3) 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 $51
million income tax benefit related to the release of a valuation
allowance associated primarily with improved current and expected
future operating profit and taxable income.
|
|
(3) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
LTD.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
|
|
For the Year Ended
September 29, 2023
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Tax Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
1,451
|
|
|
$
|
3
|
|
$
|
211
|
|
$
|
—
|
|
$
|
1,665
|
|
Industrial
Solutions
|
|
602
|
|
|
|
27
|
|
|
84
|
|
|
—
|
|
|
713
|
|
Communications
Solutions
|
|
251
|
|
|
|
3
|
|
|
45
|
|
|
—
|
|
|
299
|
|
Total
|
$
|
2,304
|
|
|
$
|
33
|
|
$
|
340
|
|
$
|
—
|
|
$
|
2,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
$
|
(16)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(364)
|
|
|
$
|
(6)
|
|
$
|
(85)
|
|
$
|
(49)
|
|
$
|
(504)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1,904
|
|
|
$
|
27
|
|
$
|
255
|
|
$
|
(49)
|
|
$
|
2,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$
|
6.01
|
|
|
$
|
0.09
|
|
$
|
0.80
|
|
$
|
(0.15)
|
|
$
|
6.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
Represents income tax benefits associated with a decrease in the
valuation allowance for certain tax loss and credit
carryforwards.
|
|
(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 $11 million to other income pursuant to the
terms of the purchase agreement.
|
|
(4) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
LTD.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
|
|
For the Quarter
Ended December 30, 2022
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
(Non-GAAP)
(2)
|
|
|
($ in millions,
except per share data)
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
282
|
|
|
$
|
2
|
|
$
|
74
|
|
$
|
358
|
|
Industrial
Solutions
|
|
156
|
|
|
|
6
|
|
|
13
|
|
|
175
|
|
Communications
Solutions
|
|
64
|
|
|
|
1
|
|
|
24
|
|
|
89
|
|
Total
|
$
|
502
|
|
|
$
|
9
|
|
$
|
111
|
|
$
|
622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
$
|
(5)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(87)
|
|
|
$
|
(2)
|
|
$
|
(29)
|
|
$
|
(118)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
17.9
|
%
|
|
|
|
|
|
|
|
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
398
|
|
|
$
|
7
|
|
$
|
82
|
|
$
|
487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$
|
1.25
|
|
|
$
|
0.02
|
|
$
|
0.26
|
|
$
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
IMPACT OF ADDITIONAL
WEEK (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Sales
for the Quarter Ended
September 29, 2023 versus Net Sales for the
Quarter Ended September 30, 2022
|
|
|
Change in Organic
Net Sales for the Quarter Ended
September 29, 2023 versus Organic Net Sales for the
Quarter Ended September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter Ended
September 29,
2023
|
|
|
For the Quarter
Ended September 30, 2022
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
14
Weeks
|
|
Impact
of
|
|
13
Weeks
|
|
14
Weeks
|
|
|
Impact
of
|
|
|
13
Weeks
|
|
|
14
Weeks
|
|
|
Impact
of
|
|
|
13
Weeks
|
|
|
|
|
U.S.
GAAP
|
|
14th
Week
|
|
(Non-GAAP)
(3)(4)
|
|
U.S.
GAAP
|
|
|
14th
Week
|
|
|
(Non-GAAP)
(3)(4)
|
|
|
(Non-GAAP)
(3)
|
|
|
14th
Week
|
|
|
(Non-GAAP)
(3)(4)
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
4,035
|
|
|
$
|
4,359
|
|
$
|
(306)
|
|
$
|
4,053
|
|
|
(7.4)
|
%
|
|
|
7.0
|
%
|
|
|
(0.4)
|
%
|
|
(8.6)
|
%
|
|
7.1
|
%
|
|
(1.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
|
|
Restructuring
|
|
|
|
14
Weeks
|
|
|
|
|
|
13
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
|
|
Adjusted
|
|
|
Impact
of
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Tax Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
14th
Week
|
|
|
(Non-GAAP)
(3)(4)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations
|
$
|
2.21
|
|
|
$
|
0.04
|
|
$
|
0.21
|
|
$
|
(0.57)
|
|
$
|
1.88
|
|
|
$
|
(0.13)
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $51
million income tax benefit related to the release of a valuation
allowance associated primarily with improved current and expected
future operating profit and taxable income.
|
|
|
|
|
|
|
|
|
|
|
(3) See
description of non-GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
(4) Excludes
the impact of an additional week in the fourth quarter of fiscal
2022. The impact of the additional week was estimated using average
sales and adjusted earnings per share for the fourth quarter of the
fiscal year.
|
|
|
|
|
|
|
|
|
|
|
TE CONNECTIVITY
LTD.
|
|
IMPACT OF ADDITIONAL
WEEK (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Sales
for Fiscal 2023
|
|
|
Change in Organic
Net Sales for Fiscal 2023
|
|
|
|
|
|
|
Fiscal
2022
|
|
versus Net Sales for
Fiscal 2022
|
|
|
versus Organic Net
Sales for Fiscal 2022
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
|
|
53
Weeks
|
|
Impact
of
|
|
52
Weeks
|
|
53
Weeks
|
|
|
Impact
of
|
|
|
52
Weeks
|
|
|
53
Weeks
|
|
|
Impact
of
|
|
|
52
Weeks
|
|
|
Fiscal
2023
|
|
|
U.S.
GAAP
|
|
53rd
Week
|
|
(Non-GAAP)
(4)(5)
|
|
U.S.
GAAP
|
|
|
53rd
Week
|
|
|
(Non-GAAP)
(4)(5)
|
|
|
(Non-GAAP)
(4)
|
|
|
53rd
Week
|
|
|
(Non-GAAP)
(4)(5)
|
|
|
($ in
millions)
|
|
Net
sales
|
$
|
16,034
|
|
|
$
|
16,281
|
|
$
|
(306)
|
|
$
|
15,975
|
|
|
(1.5)
|
%
|
|
|
1.9
|
%
|
|
|
0.4
|
%
|
|
1.0
|
%
|
|
2.0
|
%
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
|
|
Restructuring
|
|
|
|
|
53
Weeks
|
|
|
|
|
|
|
52
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
|
|
|
Adjusted
|
|
|
Impact
of
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)(2)
|
|
Tax Items
(3)
|
|
(Non-GAAP)
(4)
|
|
|
14th
Week
|
|
|
(Non-GAAP)
(4)(5)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations
|
$
|
7.47
|
|
|
$
|
0.13
|
|
$
|
0.38
|
|
$
|
(0.65)
|
|
$
|
7.33
|
|
|
$
|
(0.13)
|
|
|
$
|
7.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
(5) Excludes
the impact of an additional week in the fourth quarter of fiscal
2022. The impact of the additional week was estimated using average
sales and adjusted earnings per share for the fourth quarter of the
fiscal year.
|
|
|
|
|
|
|
|
|
|
|
TE CONNECTIVITY
LTD.
|
RECONCILIATION OF
FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
|
TO FORWARD-LOOKING
GAAP FINANCIAL MEASURES
|
As of November 1,
2023
|
(UNAUDITED)
|
|
|
|
|
Outlook
for
|
|
|
Quarter
Ending
|
|
|
December
29,
|
|
|
2023
|
|
Diluted earnings per
share from continuing operations
|
$
|
1.59
|
|
Restructuring and other
charges, net
|
|
0.10
|
|
Acquisition-related
charges
|
|
0.01
|
|
Adjusted diluted
earnings per share from continuing operations
(1)
|
$
|
1.70
|
|
|
|
|
|
|
|
|
|
Net sales growth
(decline)
|
|
0.2
|
%
|
Translation
|
|
(0.4)
|
|
(Acquisitions)
divestitures, net
|
|
(0.3)
|
|
Organic net sales
growth (1)
|
|
(0.5)
|
%
|
|
|
|
|
(1) See
description of non-GAAP financial measures.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/te-connectivity-announces-fourth-quarter-and-full-year-results-for-fiscal-year-2023-301973372.html
SOURCE TE Connectivity, LTD