SCHAFFHAUSEN, Switzerland,
Jan. 27, 2021 /PRNewswire/ -- TE
Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal
first quarter ended Dec. 25,
2020.
First Quarter Highlights
- Net sales were $3.5 billion, up
11% on a reported basis, and 6% on an organic basis year over
year.
- Orders of approximately $4
billion, up 25% year over year.
- GAAP earnings per share (EPS) from continuing operations were
$1.13, and adjusted EPS were
$1.47, up 21% year over year.
- Cash flow from continuing operating activities was $640 million and free cash flow was $529 million, with $286
million returned to shareholders.
"Our strong first quarter performance reflects our global team's
ability to adapt to ongoing dynamic market conditions to deliver
double-digit sales and EPS growth that exceeded our expectations,"
said TE Connectivity CEO Terrence
Curtin. "These results demonstrate the strength and
resilience of our portfolio, our employees' commitment to our
customers and the benefit of our leadership position in long-term
global growth trends. In particular, our Transportation segment
continued to outperform the market due to content growth driven by
electric vehicles, along with data connectivity and autonomy
trends. Our Communications segment also exhibited strength due to
demand in high-speed cloud applications and growth in the
appliances market. As we are seeing continued signs of
improvement in the majority of our end markets, we expect to
deliver continued sales and earnings growth in the second
quarter."
Second Quarter FY21 Outlook
For the second quarter of fiscal 2021, the company expects net
sales of approximately $3.5
billion, reflecting an approximate 10% increase on a
reported basis and an increase of mid-single digits on an organic
basis year over year. GAAP EPS from continuing operations are
expected to be approximately $1.38 with adjusted EPS of approximately
$1.47, up 14% year over year.
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 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 Jan. 27,
2021.
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 approximately
80,000 employees, including more than 7,500 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 (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. 25, 2020 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
|
|
December 25,
|
|
December 27,
|
|
2020
|
|
2019
|
|
(in millions,
except per share data)
|
Net
sales
|
$
|
3,522
|
|
$
|
3,168
|
Cost of
sales
|
|
2,376
|
|
|
2,138
|
Gross
margin
|
|
1,146
|
|
|
1,030
|
Selling, general, and
administrative expenses
|
|
361
|
|
|
367
|
Research,
development, and engineering expenses
|
|
162
|
|
|
161
|
Acquisition and
integration costs
|
|
8
|
|
|
7
|
Restructuring and
other charges, net
|
|
167
|
|
|
24
|
Operating
income
|
|
448
|
|
|
471
|
Interest
income
|
|
3
|
|
|
6
|
Interest
expense
|
|
(15)
|
|
|
(12)
|
Other income
(expense), net
|
|
(1)
|
|
|
5
|
Income from
continuing operations before income taxes
|
|
435
|
|
|
470
|
Income tax
expense
|
|
(60)
|
|
|
(447)
|
Income from
continuing operations
|
|
375
|
|
|
23
|
Income from
discontinued operations, net of income taxes
|
|
6
|
|
|
3
|
Net
income
|
$
|
381
|
|
$
|
26
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1.13
|
|
$
|
0.07
|
Income from
discontinued operations
|
|
0.02
|
|
|
0.01
|
Net income
|
|
1.15
|
|
|
0.08
|
|
|
|
|
|
|
Diluted earnings
per share:
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1.13
|
|
$
|
0.07
|
Income from
discontinued operations
|
|
0.02
|
|
|
0.01
|
Net income
|
|
1.14
|
|
|
0.08
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
Basic
|
|
331
|
|
|
335
|
Diluted
|
|
333
|
|
|
337
|
TE CONNECTIVITY
LTD.
|
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 25,
|
|
September 25,
|
|
2020
|
|
2020
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,098
|
|
$
|
945
|
Accounts receivable,
net of allowance for doubtful accounts of $33 and $29,
respectively
|
|
2,640
|
|
|
2,377
|
Inventories
|
|
2,066
|
|
|
1,950
|
Prepaid expenses and
other current assets
|
|
677
|
|
|
512
|
Total current
assets
|
|
6,481
|
|
|
5,784
|
Property, plant, and
equipment, net
|
|
3,768
|
|
|
3,650
|
Goodwill
|
|
5,387
|
|
|
5,224
|
Intangible assets,
net
|
|
1,613
|
|
|
1,593
|
Deferred income
taxes
|
|
2,198
|
|
|
2,178
|
Other
assets
|
|
819
|
|
|
813
|
Total
assets
|
$
|
20,266
|
|
$
|
19,242
|
Liabilities,
redeemable noncontrolling interests, and shareholders'
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
|
685
|
|
$
|
694
|
Accounts
payable
|
|
1,629
|
|
|
1,276
|
Accrued and other
current liabilities
|
|
1,769
|
|
|
1,720
|
Total current
liabilities
|
|
4,083
|
|
|
3,690
|
Long-term
debt
|
|
3,516
|
|
|
3,452
|
Long-term pension and
postretirement liabilities
|
|
1,329
|
|
|
1,336
|
Deferred income
taxes
|
|
144
|
|
|
143
|
Income
taxes
|
|
266
|
|
|
252
|
Other
liabilities
|
|
949
|
|
|
874
|
Total
liabilities
|
|
10,287
|
|
|
9,747
|
Commitments and
contingencies
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
118
|
|
|
112
|
Shareholders'
equity:
|
|
|
|
|
|
Common shares, CHF
0.57 par value, 338,953,381 shares authorized and issued,
respectively
|
|
149
|
|
|
149
|
Accumulated
earnings
|
|
10,672
|
|
|
10,348
|
Treasury shares, at
cost, 7,836,597 and 8,295,878 shares, respectively
|
|
(655)
|
|
|
(669)
|
Accumulated other
comprehensive loss
|
|
(305)
|
|
|
(445)
|
Total
shareholders' equity
|
|
9,861
|
|
|
9,383
|
Total liabilities,
redeemable noncontrolling interests, and shareholders'
equity
|
$
|
20,266
|
|
$
|
19,242
|
TE CONNECTIVITY
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
December 25,
|
|
December 27,
|
|
2020
|
|
2019
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
381
|
|
$
|
26
|
Income from
discontinued operations, net of income taxes
|
|
(6)
|
|
|
(3)
|
Income from
continuing operations
|
|
375
|
|
|
23
|
Adjustments to
reconcile income from continuing operations to net cash provided by
operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
187
|
|
|
174
|
Deferred income
taxes
|
|
(42)
|
|
|
394
|
Non-cash lease
cost
|
|
30
|
|
|
27
|
Provision for losses
on accounts receivable and inventories
|
|
6
|
|
|
20
|
Share-based
compensation expense
|
|
19
|
|
|
22
|
Other
|
|
21
|
|
|
10
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
Accounts receivable,
net
|
|
(299)
|
|
|
(24)
|
Inventories
|
|
(145)
|
|
|
(176)
|
Prepaid expenses and
other current assets
|
|
(87)
|
|
|
(23)
|
Accounts
payable
|
|
349
|
|
|
94
|
Accrued and other
current liabilities
|
|
88
|
|
|
(185)
|
Income
taxes
|
|
17
|
|
|
10
|
Other
|
|
121
|
|
|
45
|
Net cash provided by
operating activities
|
|
640
|
|
|
411
|
Cash flows from
investing activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(142)
|
|
|
(176)
|
Proceeds from sale of
property, plant, and equipment
|
|
1
|
|
|
2
|
Acquisition of
businesses, net of cash acquired
|
|
(107)
|
|
|
(115)
|
Other
|
|
2
|
|
|
—
|
Net cash used in
investing activities
|
|
(246)
|
|
|
(289)
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net decrease in
commercial paper
|
|
—
|
|
|
(9)
|
Repayment of
debt
|
|
(30)
|
|
|
—
|
Proceeds from
exercise of share options
|
|
75
|
|
|
14
|
Repurchase of common
shares
|
|
(119)
|
|
|
(139)
|
Payment of common
share dividends to shareholders
|
|
(159)
|
|
|
(154)
|
Other
|
|
(19)
|
|
|
(26)
|
Net cash used in
financing activities
|
|
(252)
|
|
|
(314)
|
Effect of currency
translation on cash
|
|
11
|
|
|
7
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
|
153
|
|
|
(185)
|
Cash, cash
equivalents, and restricted cash at beginning of
period
|
|
945
|
|
|
927
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
1,098
|
|
$
|
742
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
Interest paid on
debt, net
|
$
|
4
|
|
$
|
4
|
Income taxes paid,
net of refunds
|
|
85
|
|
|
43
|
TE CONNECTIVITY
LTD.
|
RECONCILIATION OF
FREE CASH FLOW (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
December 25,
|
|
December 27,
|
|
2020
|
|
2019
|
|
(in
millions)
|
Net cash provided by
continuing operating activities
|
$
|
640
|
|
$
|
411
|
Excluding:
|
|
|
|
|
|
Cash paid pursuant to
collateral requirements related to cross-currency swap
contracts
|
|
30
|
|
|
6
|
Capital expenditures,
net
|
|
(141)
|
|
|
(174)
|
Free cash flow
(1)
|
$
|
529
|
|
$
|
243
|
|
|
|
|
|
|
(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
|
|
|
December 25,
|
|
|
December 27,
|
|
|
2020
|
|
|
2019
|
|
|
($ in
millions)
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
Transportation
Solutions
|
$
|
2,224
|
|
|
|
|
$
|
1,868
|
|
|
|
Industrial
Solutions
|
|
873
|
|
|
|
|
|
927
|
|
|
|
Communications
Solutions
|
|
425
|
|
|
|
|
|
373
|
|
|
|
Total
|
$
|
3,522
|
|
|
|
|
$
|
3,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Income
|
|
Margin
|
|
Income
|
|
Margin
|
Transportation
Solutions
|
$
|
308
|
|
13.8
|
%
|
|
$
|
316
|
|
16.9
|
%
|
Industrial
Solutions
|
|
76
|
|
8.7
|
|
|
|
115
|
|
12.4
|
|
Communications
Solutions
|
|
64
|
|
15.1
|
|
|
|
40
|
|
10.7
|
|
Total
|
$
|
448
|
|
12.7
|
%
|
|
$
|
471
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
Adjusted
|
|
Adjusted
|
|
Adjusted
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Income
(1)
|
|
Margin
(1)
|
|
Income
(1)
|
|
Margin
(1)
|
Transportation
Solutions
|
$
|
431
|
|
19.4
|
%
|
|
$
|
325
|
|
17.4
|
%
|
Industrial
Solutions
|
|
118
|
|
13.5
|
|
|
|
132
|
|
14.2
|
|
Communications
Solutions
|
|
75
|
|
17.6
|
|
|
|
45
|
|
12.1
|
|
Total
|
$
|
624
|
|
17.7
|
%
|
|
$
|
502
|
|
15.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 25, 2020
|
|
versus Net Sales
for the Quarter Ended December 27, 2019
|
|
Net
Sales
|
|
|
Organic Net
Sales
|
|
|
|
|
|
|
Growth
(Decline)
|
|
|
Growth (Decline)
(1)
|
|
|
Translation
(2)
|
|
Acquisitions
|
|
($ in
millions)
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
224
|
|
15.9
|
%
|
|
$
|
161
|
|
11.3
|
%
|
|
$
|
63
|
|
$
|
—
|
Commercial
transportation
|
|
73
|
|
28.3
|
|
|
|
65
|
|
24.9
|
|
|
|
8
|
|
|
—
|
Sensors
|
|
59
|
|
28.8
|
|
|
|
7
|
|
3.2
|
|
|
|
5
|
|
|
47
|
Total
|
|
356
|
|
19.1
|
|
|
|
233
|
|
12.3
|
|
|
|
76
|
|
|
47
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace, defense,
oil, and gas
|
|
(59)
|
|
(19.1)
|
|
|
|
(68)
|
|
(22.0)
|
|
|
|
6
|
|
|
3
|
Industrial
equipment
|
|
32
|
|
12.2
|
|
|
|
21
|
|
7.7
|
|
|
|
11
|
|
|
—
|
Medical
|
|
(23)
|
|
(12.8)
|
|
|
|
(24)
|
|
(13.4)
|
|
|
|
1
|
|
|
—
|
Energy
|
|
(4)
|
|
(2.3)
|
|
|
|
(7)
|
|
(3.7)
|
|
|
|
3
|
|
|
—
|
Total
|
|
(54)
|
|
(5.8)
|
|
|
|
(78)
|
|
(8.4)
|
|
|
|
21
|
|
|
3
|
Communications
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data and
devices
|
|
15
|
|
6.8
|
|
|
|
10
|
|
4.7
|
|
|
|
5
|
|
|
—
|
Appliances
|
|
37
|
|
24.0
|
|
|
|
33
|
|
21.1
|
|
|
|
4
|
|
|
—
|
Total
|
|
52
|
|
13.9
|
|
|
|
43
|
|
11.5
|
|
|
|
9
|
|
|
—
|
Total
|
$
|
354
|
|
11.2
|
%
|
|
$
|
198
|
|
6.2
|
%
|
|
$
|
106
|
|
$
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 December 25, 2020
|
|
(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
|
$
|
308
|
|
|
$
|
5
|
|
$
|
118
|
|
$
|
—
|
|
$
|
431
|
|
Industrial
Solutions
|
|
76
|
|
|
|
4
|
|
|
38
|
|
|
—
|
|
|
118
|
|
Communications
Solutions
|
|
64
|
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
75
|
|
Total
|
$
|
448
|
|
|
$
|
9
|
|
$
|
167
|
|
$
|
—
|
|
$
|
624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
$
|
(1)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(60)
|
|
|
$
|
(2)
|
|
$
|
(32)
|
|
$
|
(29)
|
|
$
|
(123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
375
|
|
|
$
|
7
|
|
$
|
135
|
|
$
|
(29)
|
|
$
|
488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
continuing operations
|
$
|
1.13
|
|
|
$
|
0.02
|
|
$
|
0.41
|
|
$
|
(0.09)
|
|
$
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Income
tax benefits related to an Internal Revenue Service approved change
in the tax method of depreciating or amortizing certain
assets.
|
|
(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 December 27, 2019
|
|
(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
|
$
|
316
|
|
|
$
|
5
|
|
$
|
4
|
|
$
|
—
|
|
$
|
325
|
|
Industrial
Solutions
|
|
115
|
|
|
|
2
|
|
|
15
|
|
|
—
|
|
|
132
|
|
Communications
Solutions
|
|
40
|
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
45
|
|
Total
|
$
|
471
|
|
|
$
|
7
|
|
$
|
24
|
|
$
|
—
|
|
$
|
502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
15.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
5
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(447)
|
|
|
$
|
(1)
|
|
$
|
—
|
|
$
|
355
|
|
$
|
(93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
95.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
23
|
|
|
$
|
6
|
|
$
|
24
|
|
$
|
355
|
|
$
|
408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
continuing operations
|
$
|
0.07
|
|
|
$
|
0.02
|
|
$
|
0.07
|
|
$
|
1.05
|
|
$
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Income
tax expense related to the tax impacts of certain measures of Swiss
tax reform.
|
|
(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 March 27, 2020
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Impairment
|
|
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
of Goodwill
(1)
|
|
Tax 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 Year Ended
September 25, 2020
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Impairment
|
|
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
of Goodwill
(1)
|
|
Tax Items
(2)
|
|
(Non-GAAP)
(4)
|
|
|
($ in millions,
except per share data)
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
(93)
|
|
|
$
|
32
|
|
$
|
113
|
|
$
|
900
|
|
$
|
—
|
|
$
|
952
|
|
Industrial
Solutions
|
|
412
|
|
|
|
8
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
522
|
|
Communications
Solutions
|
|
218
|
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
260
|
|
Total
|
$
|
537
|
|
|
$
|
40
|
|
$
|
257
|
|
$
|
900
|
|
$
|
—
|
|
$
|
1,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
$
|
20
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(8)
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(783)
|
|
|
$
|
(8)
|
|
$
|
(46)
|
|
$
|
(4)
|
|
$
|
550
|
|
$
|
(291)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
149.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing
operations
|
$
|
(259)
|
|
|
$
|
32
|
|
$
|
211
|
|
$
|
896
|
|
$
|
542
|
|
$
|
1,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share from
continuing operations (3)
|
$
|
(0.78)
|
|
|
$
|
0.10
|
|
$
|
0.63
|
|
$
|
2.68
|
|
$
|
1.62
|
|
$
|
4.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $355 million of income tax expense related to the tax
impacts of certain measures of Swiss tax reform and $226 million of
income tax expense related to increases to the valuation allowance
for certain deferred tax assets, partially offset by a $31 million
income tax benefit related to pre-separation tax matters and the
termination of the tax sharing agreement with Tyco International
and Covidien.
|
|
(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
FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
|
|
TO FORWARD-LOOKING
GAAP FINANCIAL MEASURES
|
|
As of January 27,
2021
|
|
(UNAUDITED)
|
|
|
|
|
|
Outlook
for
|
|
|
Quarter
Ending
|
|
|
March
26,
|
|
|
2021
|
|
Diluted earnings
per share from continuing operations
|
$
|
1.38
|
|
Restructuring and
other charges, net
|
|
0.07
|
|
Acquisition-related
charges
|
|
0.02
|
|
Adjusted diluted
earnings per share from continuing operations
(1)
|
$
|
1.47
|
|
|
|
|
|
(1)See
description of non-GAAP financial measures.
|
View original content to download
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SOURCE TE Connectivity Ltd.