SCHAFFHAUSEN, Switzerland,
April 28, 2020 /PRNewswire/ -- TE
Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal
second quarter ended March 27,
2020.
Second Quarter Highlights
- Net sales were $3.2 billion, in
line with the company's guidance, down 6% on a reported and down 5%
on an organic basis over the second quarter of 2019.
- Diluted earnings per share (EPS) from continuing operations
were a loss of $1.35. Adjusting for
one-time impairment charge, adjusted EPS were $1.29, exceeding the high end of the company's
guidance.
- Cash flow from continuing operating activities was $481 million and free cash flow was $311 million. Year to date free cash flow up 34%
versus prior year. During the quarter the company returned
$433 million returned to
shareholders.
- Strong liquidity position with more than $2 billion available liquidity.
"The market environment we guided to last quarter changed
dramatically, and I'm pleased that we still delivered sales in line
with our guidance and adjusted earnings per share above our
expectations," said TE Connectivity Chief Executive Officer
Terrence Curtin. "Despite the impact
of COVID-19, we were able to maintain adjusted operating margins
above 16% due to the diversity of our portfolio, our global
manufacturing strategy and our early execution of cost reduction
actions. We continue to successfully prioritize the safety of our
employees while keeping our commitments to our customers, and I
want to thank our employees for their strong execution in what has
been an unprecedented time for our global community. We expect to
see COVID-related demand impacts in the second half of the year
particularly in the transportation and commercial aerospace
markets, but our strong free cash flow and liquidity allows us to
continue to invest in long-term global growth trends and position
us for further content growth when demand returns."
2020 Outlook
For the fiscal third quarter of 2020, the company expects net
sales to be down approximately 25% sequentially, reflecting the
impact of COVID-19 on the end demand environment, especially in the
transportation and commercial aerospace markets. The company is
withdrawing its full year guidance due to limited visibility of
COVID-19 impact on future demand.
Information about TE Connectivity's use of non-GAAP financial
measures is provided below. For reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures, see the attached tables.
Conference Call and Webcast
The company will hold a
conference call today beginning at 8:30 a.m.
ET. The dial-in information is provided here:
- 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 (866) 211-4092, and for
international callers, the dial-in number is (647) 689-6620.
- 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 April 28, 2020.
About TE Connectivity
TE Connectivity Ltd. (NYSE: TEL)
is a $13 billion 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 nearly 80,000
employees, including more than 8,000 engineers, working alongside
customers in approximately 150 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 (Loss) and Adjusted Operating Margin –
represent operating income (loss) 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 (loss) 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 (Loss) 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 (Loss) from Continuing Operations – represents
income (loss) 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 (Loss) Per Share – represents diluted earnings
(loss) 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
continuing 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 continuing
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; 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. 27, 2019 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 Six Months
Ended
|
|
March 27,
|
|
March 29,
|
|
March 27,
|
|
March 29,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in millions,
except per share data)
|
Net
sales
|
$
|
3,195
|
|
$
|
3,412
|
|
$
|
6,363
|
|
$
|
6,759
|
Cost of
sales
|
|
2,166
|
|
|
2,294
|
|
|
4,304
|
|
|
4,527
|
Gross
margin
|
|
1,029
|
|
|
1,118
|
|
|
2,059
|
|
|
2,232
|
Selling, general, and
administrative expenses
|
|
352
|
|
|
373
|
|
|
719
|
|
|
762
|
Research,
development, and engineering expenses
|
|
158
|
|
|
166
|
|
|
319
|
|
|
327
|
Acquisition and
integration costs
|
|
12
|
|
|
7
|
|
|
19
|
|
|
12
|
Restructuring and
other charges, net
|
|
22
|
|
|
42
|
|
|
46
|
|
|
117
|
Impairment of
goodwill
|
|
900
|
|
|
-
|
|
|
900
|
|
|
-
|
Operating income
(loss)
|
|
(415)
|
|
|
530
|
|
|
56
|
|
|
1,014
|
Interest
income
|
|
5
|
|
|
4
|
|
|
11
|
|
|
9
|
Interest
expense
|
|
(11)
|
|
|
(15)
|
|
|
(23)
|
|
|
(42)
|
Other income,
net
|
|
11
|
|
|
1
|
|
|
16
|
|
|
-
|
Income (loss) from
continuing operations before income taxes
|
|
(410)
|
|
|
520
|
|
|
60
|
|
|
981
|
Income tax
expense
|
|
(42)
|
|
|
(91)
|
|
|
(489)
|
|
|
(169)
|
Income (loss) from
continuing operations
|
|
(452)
|
|
|
429
|
|
|
(429)
|
|
|
812
|
Income (loss) from
discontinued operations, net of income taxes
|
|
(4)
|
|
|
10
|
|
|
(1)
|
|
|
(97)
|
Net income
(loss)
|
$
|
(456)
|
|
$
|
439
|
|
$
|
(430)
|
|
$
|
715
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(1.35)
|
|
$
|
1.27
|
|
$
|
(1.28)
|
|
$
|
2.39
|
Income (loss) from
discontinued operations
|
|
(0.01)
|
|
|
0.03
|
|
|
-
|
|
|
(0.29)
|
Net income
(loss)
|
|
(1.37)
|
|
|
1.30
|
|
|
(1.29)
|
|
|
2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(1.35)
|
|
$
|
1.26
|
|
$
|
(1.28)
|
|
$
|
2.37
|
Income (loss) from
discontinued operations
|
|
(0.01)
|
|
|
0.03
|
|
|
-
|
|
|
(0.28)
|
Net income
(loss)
|
|
(1.37)
|
|
|
1.29
|
|
|
(1.29)
|
|
|
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
334
|
|
|
338
|
|
|
334
|
|
|
340
|
Diluted
|
|
334
|
|
|
340
|
|
|
334
|
|
|
342
|
TE CONNECTIVITY
LTD.
|
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 27,
|
|
September 27,
|
|
2020
|
|
2019
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
796
|
|
$
|
927
|
Accounts receivable,
net of allowance for doubtful accounts of $32 and $25,
respectively
|
|
2,461
|
|
|
2,320
|
Inventories
|
|
2,001
|
|
|
1,836
|
Prepaid expenses and
other current assets
|
|
457
|
|
|
471
|
Total current
assets
|
|
5,715
|
|
|
5,554
|
Property, plant, and
equipment, net
|
|
3,558
|
|
|
3,574
|
Goodwill
|
|
5,235
|
|
|
5,740
|
Intangible assets,
net
|
|
1,547
|
|
|
1,596
|
Deferred income
taxes
|
|
2,382
|
|
|
2,776
|
Other
assets
|
|
930
|
|
|
454
|
Total
assets
|
$
|
19,367
|
|
$
|
19,694
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
|
603
|
|
$
|
570
|
Accounts
payable
|
|
1,390
|
|
|
1,357
|
Accrued and other
current liabilities
|
|
1,966
|
|
|
1,613
|
Total current
liabilities
|
|
3,959
|
|
|
3,540
|
Long-term
debt
|
|
3,752
|
|
|
3,395
|
Long-term pension and
postretirement liabilities
|
|
1,359
|
|
|
1,367
|
Deferred income
taxes
|
|
126
|
|
|
156
|
Income
taxes
|
|
228
|
|
|
239
|
Other
liabilities
|
|
772
|
|
|
427
|
Total
liabilities
|
|
10,196
|
|
|
9,124
|
Commitments and
contingencies
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
TE Connectivity Ltd.
shareholders' equity:
|
|
|
|
|
|
Common shares, CHF
0.57 par value, 350,951,381 shares authorized and issued
|
|
154
|
|
|
154
|
Accumulated
earnings
|
|
11,122
|
|
|
12,256
|
Treasury shares, at
cost, 19,877,795 and 15,862,337 shares, respectively
|
|
(1,639)
|
|
|
(1,337)
|
Accumulated other
comprehensive loss
|
|
(571)
|
|
|
(503)
|
Total TE Connectivity
Ltd. shareholders' equity
|
|
9,066
|
|
|
10,570
|
Noncontrolling
interests
|
|
105
|
|
|
-
|
Total
equity
|
|
9,171
|
|
|
10,570
|
Total liabilities
and equity
|
$
|
19,367
|
|
$
|
19,694
|
TE CONNECTIVITY
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
For the Six Months
Ended
|
|
March 27,
|
|
March 29,
|
|
March 27,
|
|
March 29,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(456)
|
|
$
|
439
|
|
$
|
(430)
|
|
$
|
715
|
(Income) loss from
discontinued operations, net of income taxes
|
|
4
|
|
|
(10)
|
|
|
1
|
|
|
97
|
Income (loss) from
continuing operations
|
|
(452)
|
|
|
429
|
|
|
(429)
|
|
|
812
|
Adjustments to
reconcile income (loss) from continuing operations to net cash
provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
goodwill
|
|
900
|
|
|
-
|
|
|
900
|
|
|
-
|
Depreciation and
amortization
|
|
180
|
|
|
173
|
|
|
354
|
|
|
341
|
Deferred income
taxes
|
|
(49)
|
|
|
(17)
|
|
|
345
|
|
|
(28)
|
Non-cash lease
cost
|
|
25
|
|
|
-
|
|
|
52
|
|
|
-
|
Provision for losses
on accounts receivable and inventories
|
|
(2)
|
|
|
5
|
|
|
18
|
|
|
28
|
Share-based
compensation expense
|
|
15
|
|
|
15
|
|
|
37
|
|
|
38
|
Other
|
|
1
|
|
|
14
|
|
|
11
|
|
|
32
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(116)
|
|
|
(81)
|
|
|
(140)
|
|
|
(107)
|
Inventories
|
|
25
|
|
|
49
|
|
|
(151)
|
|
|
(70)
|
Prepaid expenses and
other current assets
|
|
48
|
|
|
24
|
|
|
25
|
|
|
91
|
Accounts
payable
|
|
(45)
|
|
|
(35)
|
|
|
49
|
|
|
(44)
|
Accrued and other
current liabilities
|
|
5
|
|
|
(16)
|
|
|
(180)
|
|
|
(206)
|
Income
taxes
|
|
(9)
|
|
|
6
|
|
|
1
|
|
|
21
|
Other
|
|
(45)
|
|
|
(11)
|
|
|
-
|
|
|
(25)
|
Net cash provided by
continuing operating activities
|
|
481
|
|
|
555
|
|
|
892
|
|
|
883
|
Net cash provided by
(used in) discontinued operating activities
|
|
-
|
|
|
1
|
|
|
-
|
|
|
(30)
|
Net cash provided by
operating activities
|
|
481
|
|
|
556
|
|
|
892
|
|
|
853
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(133)
|
|
|
(191)
|
|
|
(309)
|
|
|
(401)
|
Proceeds from sale of
property, plant, and equipment
|
|
1
|
|
|
12
|
|
|
3
|
|
|
13
|
Acquisition of
businesses, net of cash acquired
|
|
(244)
|
|
|
8
|
|
|
(359)
|
|
|
8
|
Proceeds from
divestiture of discontinued operation, net of cash retained by sold
operation
|
|
-
|
|
|
9
|
|
|
-
|
|
|
297
|
Other
|
|
(2)
|
|
|
(3)
|
|
|
(2)
|
|
|
-
|
Net cash used in
continuing investing activities
|
|
(378)
|
|
|
(165)
|
|
|
(667)
|
|
|
(83)
|
Net cash used in
discontinued investing activities
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2)
|
Net cash used in
investing activities
|
|
(378)
|
|
|
(165)
|
|
|
(667)
|
|
|
(85)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in commercial paper
|
|
(210)
|
|
|
27
|
|
|
(219)
|
|
|
90
|
Proceeds from
issuance of debt
|
|
593
|
|
|
-
|
|
|
593
|
|
|
350
|
Repayment of
debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(441)
|
Proceeds from
exercise of share options
|
|
13
|
|
|
10
|
|
|
27
|
|
|
17
|
Repurchase of common
shares
|
|
(269)
|
|
|
(220)
|
|
|
(408)
|
|
|
(739)
|
Payment of common
share dividends to shareholders
|
|
(153)
|
|
|
(149)
|
|
|
(307)
|
|
|
(299)
|
Transfers (to) from
discontinued operations
|
|
-
|
|
|
1
|
|
|
-
|
|
|
(32)
|
Other
|
|
(5)
|
|
|
(1)
|
|
|
(31)
|
|
|
(30)
|
Net cash used in
continuing financing activities
|
|
(31)
|
|
|
(332)
|
|
|
(345)
|
|
|
(1,084)
|
Net cash provided by
(used in) discontinued financing activities
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
32
|
Net cash used in
financing activities
|
|
(31)
|
|
|
(333)
|
|
|
(345)
|
|
|
(1,052)
|
Effect of currency
translation on cash
|
|
(18)
|
|
|
2
|
|
|
(11)
|
|
|
1
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
|
54
|
|
|
60
|
|
|
(131)
|
|
|
(283)
|
Cash, cash
equivalents, and restricted cash at beginning of
period
|
|
742
|
|
|
505
|
|
|
927
|
|
|
848
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
796
|
|
$
|
565
|
|
$
|
796
|
|
$
|
565
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on
debt, net
|
$
|
20
|
|
$
|
33
|
|
$
|
24
|
|
$
|
52
|
Income taxes paid,
net of refunds
|
|
101
|
|
|
102
|
|
|
144
|
|
|
177
|
TE CONNECTIVITY
LTD.
|
RECONCILIATION OF
FREE CASH FLOW (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
For the Six Months
Ended
|
|
March 27,
|
|
March 29,
|
|
March 27,
|
|
March 29,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in
millions)
|
Net cash provided by
continuing operating activities
|
$
|
481
|
|
$
|
555
|
|
$
|
892
|
|
$
|
883
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
Cash collected
pursuant to collateral requirements related to cross-currency swap
contracts
|
|
(38)
|
|
|
(32)
|
|
|
(32)
|
|
|
(82)
|
Capital expenditures,
net
|
|
(132)
|
|
|
(179)
|
|
|
(306)
|
|
|
(388)
|
Free cash flow
(1)
|
$
|
311
|
|
$
|
344
|
|
$
|
554
|
|
$
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Six Months
Ended
|
|
|
March 27,
|
|
|
March 29,
|
|
|
March 27,
|
|
|
March 29,
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
($ in
millions)
|
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
Transportation
Solutions
|
$
|
1,857
|
|
|
|
|
$
|
1,971
|
|
|
|
|
$
|
3,725
|
|
|
|
|
$
|
3,957
|
|
|
|
Industrial
Solutions
|
|
962
|
|
|
|
|
|
1,007
|
|
|
|
|
|
1,889
|
|
|
|
|
|
1,935
|
|
|
|
Communications
Solutions
|
|
376
|
|
|
|
|
|
434
|
|
|
|
|
|
749
|
|
|
|
|
|
867
|
|
|
|
Total
|
$
|
3,195
|
|
|
|
|
$
|
3,412
|
|
|
|
|
$
|
6,363
|
|
|
|
|
$
|
6,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Income
(Loss)
|
|
Margin
|
|
Income
|
|
Margin
|
|
Income
(Loss)
|
|
Margin
|
|
Income
|
|
Margin
|
Transportation
Solutions
|
$
|
(606)
|
|
(32.6)
|
%
|
|
$
|
316
|
|
16.0
|
%
|
|
$
|
(290)
|
|
(7.8)
|
%
|
|
$
|
648
|
|
16.4
|
%
|
Industrial
Solutions
|
|
142
|
|
14.8
|
|
|
|
137
|
|
13.6
|
|
|
|
257
|
|
13.6
|
|
|
|
237
|
|
12.2
|
|
Communications
Solutions
|
|
49
|
|
13.0
|
|
|
|
77
|
|
17.7
|
|
|
|
89
|
|
11.9
|
|
|
|
129
|
|
14.9
|
|
Total
|
$
|
(415)
|
|
(13.0)
|
%
|
|
$
|
530
|
|
15.5
|
%
|
|
$
|
56
|
|
0.9
|
%
|
|
$
|
1,014
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
322
|
|
17.3
|
%
|
|
$
|
344
|
|
17.5
|
%
|
|
$
|
647
|
|
17.4
|
%
|
|
$
|
700
|
|
17.7
|
%
|
Industrial
Solutions
|
|
145
|
|
15.1
|
|
|
|
159
|
|
15.8
|
|
|
|
277
|
|
14.7
|
|
|
|
297
|
|
15.3
|
|
Communications
Solutions
|
|
52
|
|
13.8
|
|
|
|
78
|
|
18.0
|
|
|
|
97
|
|
13.0
|
|
|
|
149
|
|
17.2
|
|
Total
|
$
|
519
|
|
16.2
|
%
|
|
$
|
581
|
|
17.0
|
%
|
|
$
|
1,021
|
|
16.0
|
%
|
|
$
|
1,146
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 27, 2020
|
|
versus Net Sales
for the Quarter Ended March 29, 2019
|
|
Net
Sales
|
|
|
Organic Net
Sales
|
|
|
|
|
|
|
Growth
(Decline)
|
|
|
Growth (Decline)
(1)
|
|
|
Translation
(2)
|
|
Acquisitions
|
|
($ in
millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
(60)
|
|
(4.2)
|
%
|
|
$
|
(29)
|
|
(2.1)
|
%
|
|
$
|
(31)
|
|
$
|
-
|
Commercial
transportation
|
|
(30)
|
|
(9.3)
|
|
|
|
(36)
|
|
(11.1)
|
|
|
|
(8)
|
|
|
14
|
Sensors
|
|
(24)
|
|
(10.8)
|
|
|
|
(33)
|
|
(14.9)
|
|
|
|
(3)
|
|
|
12
|
Total
|
|
(114)
|
|
(5.8)
|
|
|
|
(98)
|
|
(5.0)
|
|
|
|
(42)
|
|
|
26
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace, defense,
oil, and gas
|
|
(13)
|
|
(3.9)
|
|
|
|
(10)
|
|
(2.9)
|
|
|
|
(3)
|
|
|
-
|
Industrial
equipment
|
|
(46)
|
|
(14.1)
|
|
|
|
(40)
|
|
(12.5)
|
|
|
|
(6)
|
|
|
-
|
Medical
|
|
10
|
|
5.7
|
|
|
|
10
|
|
5.7
|
|
|
|
-
|
|
|
-
|
Energy
|
|
4
|
|
2.3
|
|
|
|
10
|
|
5.6
|
|
|
|
(6)
|
|
|
-
|
Total
|
|
(45)
|
|
(4.5)
|
|
|
|
(30)
|
|
(3.0)
|
|
|
|
(15)
|
|
|
-
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
(33)
|
|
(13.1)
|
|
|
|
(33)
|
|
(13.1)
|
|
|
|
-
|
|
|
-
|
Appliances
|
|
(25)
|
|
(13.7)
|
|
|
|
(22)
|
|
(11.9)
|
|
|
|
(3)
|
|
|
-
|
Total
|
|
(58)
|
|
(13.4)
|
|
|
|
(55)
|
|
(12.6)
|
|
|
|
(3)
|
|
|
-
|
Total
|
$
|
(217)
|
|
(6.4)
|
%
|
|
$
|
(183)
|
|
(5.4)
|
%
|
|
$
|
(60)
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net
Sales for the Six Months Ended
March 27, 2020
|
|
versus Net Sales
for the Six Months Ended March 29, 2019
|
|
Net
Sales
|
|
|
Organic Net
Sales
|
|
|
|
|
|
|
Growth
(Decline)
|
|
|
Growth (Decline)
(1)
|
|
|
Translation
(2)
|
|
Acquisitions
|
|
($ in
millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
(124)
|
|
(4.3)
|
%
|
|
$
|
(72)
|
|
(2.5)
|
%
|
|
$
|
(52)
|
|
$
|
-
|
Commercial
transportation
|
|
(69)
|
|
(11.1)
|
|
|
|
(81)
|
|
(13.2)
|
|
|
|
(15)
|
|
|
27
|
Sensors
|
|
(39)
|
|
(8.8)
|
|
|
|
(58)
|
|
(13.1)
|
|
|
|
(5)
|
|
|
24
|
Total
|
|
(232)
|
|
(5.9)
|
|
|
|
(211)
|
|
(5.3)
|
|
|
|
(72)
|
|
|
51
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace, defense,
oil, and gas
|
|
11
|
|
1.8
|
|
|
|
17
|
|
2.8
|
|
|
|
(6)
|
|
|
-
|
Industrial
equipment
|
|
(98)
|
|
(15.3)
|
|
|
|
(87)
|
|
(13.7)
|
|
|
|
(11)
|
|
|
-
|
Medical
|
|
21
|
|
6.1
|
|
|
|
22
|
|
6.3
|
|
|
|
(1)
|
|
|
-
|
Energy
|
|
20
|
|
6.0
|
|
|
|
29
|
|
8.7
|
|
|
|
(9)
|
|
|
-
|
Total
|
|
(46)
|
|
(2.4)
|
|
|
|
(19)
|
|
(1.0)
|
|
|
|
(27)
|
|
|
-
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
(71)
|
|
(14.0)
|
|
|
|
(71)
|
|
(14.0)
|
|
|
|
-
|
|
|
-
|
Appliances
|
|
(47)
|
|
(13.1)
|
|
|
|
(43)
|
|
(11.7)
|
|
|
|
(4)
|
|
|
-
|
Total
|
|
(118)
|
|
(13.6)
|
|
|
|
(114)
|
|
(13.1)
|
|
|
|
(4)
|
|
|
-
|
Total
|
$
|
(396)
|
|
(5.9)
|
%
|
|
$
|
(344)
|
|
(5.1)
|
%
|
|
$
|
(103)
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 27, 2020
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Impairment
|
|
Tax
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
of Goodwill
(1)
|
|
Items
(2)
|
|
(Non-GAAP)
(4)
|
|
|
($ in millions,
except per share data)
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
(606)
|
|
|
$
|
10
|
|
$
|
18
|
|
$
|
900
|
|
$
|
-
|
|
$
|
322
|
|
Industrial
Solutions
|
|
142
|
|
|
|
2
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
145
|
|
Communications
Solutions
|
|
49
|
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
52
|
|
Total
|
$
|
(415)
|
|
|
$
|
12
|
|
$
|
22
|
|
$
|
900
|
|
$
|
-
|
|
$
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
(13.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
11
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(8)
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(42)
|
|
|
$
|
(2)
|
|
$
|
(4)
|
|
$
|
(4)
|
|
$
|
(31)
|
|
$
|
(83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(10.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing
operations
|
$
|
(452)
|
|
|
$
|
10
|
|
$
|
18
|
|
$
|
896
|
|
$
|
(39)
|
|
$
|
433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share from
continuing operations (3)
|
$
|
(1.35)
|
|
|
$
|
0.03
|
|
$
|
0.05
|
|
$
|
2.67
|
|
$
|
(0.12)
|
|
$
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 an income tax benefit related to pre-separation tax
matters and the termination of the tax sharing agreement with Tyco
International and Covidien, as well as the related impact to net
other income.
|
|
(3) U.S.
GAAP diluted shares excludes one million of nonvested share awards
and options outstanding as the inclusion of these securities would
have been antidilutive because of our loss during the period. Such
amounts are included in adjusted (non-GAAP) diluted
shares.
|
|
(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 March 29, 2019
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Tax
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
316
|
|
|
$
|
4
|
|
$
|
24
|
|
$
|
-
|
|
$
|
344
|
|
Industrial
Solutions
|
|
137
|
|
|
|
5
|
|
|
17
|
|
|
-
|
|
|
159
|
|
Communications
Solutions
|
|
77
|
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
78
|
|
Total
|
$
|
530
|
|
|
$
|
9
|
|
$
|
42
|
|
$
|
-
|
|
$
|
581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
1
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(91)
|
|
|
$
|
(2)
|
|
$
|
(10)
|
|
$
|
15
|
|
$
|
(88)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
429
|
|
|
$
|
7
|
|
$
|
32
|
|
$
|
15
|
|
$
|
483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
continuing operations
|
$
|
1.26
|
|
|
$
|
0.02
|
|
$
|
0.09
|
|
$
|
0.04
|
|
$
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 income tax expense associated with the tax impacts of
certain legal entity restructurings and intercompany
transactions.
|
|
(3) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
LTD.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
|
|
For the Six Months
Ended March 27, 2020
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Impairment
|
|
Tax
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
of Goodwill
(1)
|
|
Items
(2)
|
|
(Non-GAAP)
(4)
|
|
|
($ in millions,
except per share data)
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
(290)
|
|
|
$
|
15
|
|
$
|
22
|
|
$
|
900
|
|
$
|
-
|
|
$
|
647
|
|
Industrial
Solutions
|
|
257
|
|
|
|
4
|
|
|
16
|
|
|
-
|
|
|
-
|
|
|
277
|
|
Communications
Solutions
|
|
89
|
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|
-
|
|
|
97
|
|
Total
|
$
|
56
|
|
|
$
|
19
|
|
$
|
46
|
|
$
|
900
|
|
$
|
-
|
|
$
|
1,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
16
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(8)
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(489)
|
|
|
$
|
(3)
|
|
$
|
(4)
|
|
$
|
(4)
|
|
$
|
324
|
|
$
|
(176)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
815.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(429)
|
|
|
$
|
16
|
|
$
|
42
|
|
$
|
896
|
|
$
|
316
|
|
$
|
841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share from
continuing operations (3)
|
$
|
(1.28)
|
|
|
$
|
0.05
|
|
$
|
0.13
|
|
$
|
2.67
|
|
$
|
0.94
|
|
$
|
2.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 income tax expense related to the tax impacts of certain
measures of Swiss tax reform. Also includes an income tax benefit
related to pre-separation tax matters and the termination of the
tax sharing agreement with Tyco International and Covidien, as well
as the related impact to net other income.
|
|
(3) U.S.
GAAP diluted shares excludes two million of nonvested share awards
and options outstanding as the inclusion of these securities would
have been antidilutive because of our loss during the period. Such
amounts are included in adjusted (non-GAAP) diluted
shares.
|
|
(4) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
LTD.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
|
|
For the Six Months
Ended March 29, 2019
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Tax
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
648
|
|
|
$
|
7
|
|
$
|
45
|
|
$
|
-
|
|
$
|
700
|
|
Industrial
Solutions
|
|
237
|
|
|
|
8
|
|
|
52
|
|
|
-
|
|
|
297
|
|
Communications
Solutions
|
|
129
|
|
|
|
-
|
|
|
20
|
|
|
-
|
|
|
149
|
|
Total
|
$
|
1,014
|
|
|
$
|
15
|
|
$
|
117
|
|
$
|
-
|
|
$
|
1,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(169)
|
|
|
$
|
(3)
|
|
$
|
(29)
|
|
$
|
15
|
|
$
|
(186)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
812
|
|
|
$
|
12
|
|
$
|
88
|
|
$
|
15
|
|
$
|
927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
continuing operations
|
$
|
2.37
|
|
|
$
|
0.04
|
|
$
|
0.26
|
|
$
|
0.04
|
|
$
|
2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 income tax expense associated with the tax impacts of
certain legal entity restructurings and intercompany
transactions.
|
|
(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 June 28, 2019
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Tax
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
308
|
|
|
$
|
6
|
|
$
|
53
|
|
$
|
-
|
|
$
|
367
|
|
Industrial
Solutions
|
|
156
|
|
|
|
3
|
|
|
8
|
|
|
-
|
|
|
167
|
|
Communications
Solutions
|
|
56
|
|
|
|
-
|
|
|
6
|
|
|
-
|
|
|
62
|
|
Total
|
$
|
520
|
|
|
$
|
9
|
|
$
|
67
|
|
$
|
-
|
|
$
|
596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
2
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit
|
$
|
245
|
|
|
$
|
(1)
|
|
$
|
(17)
|
|
$
|
(307)
|
|
$
|
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(47.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
758
|
|
|
$
|
8
|
|
$
|
50
|
|
$
|
(307)
|
|
$
|
509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
continuing operations
|
$
|
2.24
|
|
|
$
|
0.02
|
|
$
|
0.15
|
|
$
|
(0.91)
|
|
$
|
1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $214 million income tax benefit related to the tax
impacts of certain measures of Swiss tax reform and a $93 million
income tax benefit related to the effective settlement of a tax
audit in a non-U.S. jurisdiction.
|
|
(3) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
LTD.
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
|
|
For the Year Ended
September 27, 2019
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
|
|
|
|
|
|
|
|
Related
Charges
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
and
Other
|
|
and
Other
|
|
Tax
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Items
(1)(2)
|
|
Charges, Net
(1)
|
|
Items
(3)
|
|
(Non-GAAP)
(4)
|
|
|
($ in millions,
except per share data)
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
1,226
|
|
|
$
|
31
|
|
$
|
144
|
|
$
|
-
|
|
$
|
1,401
|
|
Industrial
Solutions
|
|
543
|
|
|
|
15
|
|
|
63
|
|
|
-
|
|
|
621
|
|
Communications
Solutions
|
|
209
|
|
|
|
1
|
|
|
48
|
|
|
-
|
|
|
258
|
|
Total
|
$
|
1,978
|
|
|
$
|
47
|
|
$
|
255
|
|
$
|
-
|
|
$
|
2,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
2
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit
|
$
|
15
|
|
|
$
|
(9)
|
|
$
|
(61)
|
|
$
|
(291)
|
|
$
|
(346)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(0.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1,946
|
|
|
$
|
38
|
|
$
|
194
|
|
$
|
(291)
|
|
$
|
1,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
continuing operations
|
$
|
5.72
|
|
|
$
|
0.11
|
|
$
|
0.57
|
|
$
|
(0.86)
|
|
$
|
5.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 acquisition-related charges of $30 million and a write-off
of spare parts of $17 million.
|
|
(3)
Includes a $216 million income tax benefit related to the tax
impacts of certain measures of Swiss tax reform, a $90 million
income tax benefit related to the effective settlement of a tax
audit in a non-U.S. jurisdiction, and $15 million of income tax
expense associated with the tax impacts of certain legal entity
restructurings and intercompany transactions.
|
|
(4) See
description of non-GAAP financial measures.
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/te-connectivity-announces-second-quarter-results-for-fiscal-year-2020-301047862.html
SOURCE TE Connectivity Ltd.