TE CONNECTIVITY LTD., 10-Q filed on 1/24/2019
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
 3 Months Ended
Dec. 28, 2018
Jan. 18, 2019
Document and Entity Information    
Entity Registrant Name TE Connectivity Ltd.  
Entity Central Index Key 0001385157  
Document Type 10-Q  
Document Period End Date Dec. 28, 2018  
Amendment Flag false  
Current Fiscal Year End Date --09-27  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   338,854,434
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS    
Net sales $ 3,347 $ 3,336
Cost of sales 2,233 2,172
Gross margin 1,114 1,164
Selling, general, and administrative expenses 389 377
Research, development, and engineering expenses 161 165
Acquisition and integration costs 5 2
Restructuring and other charges, net 75 34
Operating income 484 586
Interest income 5 4
Interest expense (27) (26)
Other income (expense), net (1) 2
Income from continuing operations before income taxes 461 566
Income tax expense (78) (599)
Income (loss) from continuing operations 383 (33)
Loss from discontinued operations, net of income taxes (107) (7)
Net income (loss) $ 276 $ (40)
Basic earnings (loss) per share:    
Income (loss) from continuing operations (in dollars per share) $ 1.12 $ (0.09)
Loss from discontinued operations (in dollars per share) (0.31) (0.02)
Net income (loss) (in dollars per share) 0.81 (0.11)
Diluted earnings (loss) per share:    
Income (loss) from continuing operations (in dollars per share) 1.11 (0.09)
Loss from discontinued operations (in dollars per share) (0.31) (0.02)
Net income (loss) (in dollars per share) $ 0.80 $ (0.11)
Weighted-average number of shares outstanding:    
Basic (in shares) 342 352
Diluted (in shares) 344 352
v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME    
Net income (loss) $ 276 $ (40)
Other comprehensive income:    
Currency translation 19 67
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes 6 7
Gains on cash flow hedges, net of income taxes 24 2
Other comprehensive income 49 76
Comprehensive income $ 325 $ 36
v3.10.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 28, 2018
Sep. 28, 2018
Current assets:    
Cash and cash equivalents $ 505 $ 848
Accounts receivable, net of allowance for doubtful accounts of $26 and $22, respectively 2,380 2,361
Inventories 1,986 1,857
Prepaid expenses and other current assets 507 661
Current assets held for sale   472
Total current assets 5,378 6,199
Property, plant, and equipment, net 3,550 3,497
Goodwill 5,648 5,684
Intangible assets, net 1,648 1,704
Deferred income taxes 2,580 2,144
Other assets 384 1,158
Total Assets 19,188 20,386
Current liabilities:    
Short-term debt 585 963
Accounts payable 1,538 1,548
Accrued and other current liabilities 1,348 1,711
Current liabilities held for sale   188
Total current liabilities 3,471 4,410
Long-term debt 3,382 3,037
Long-term pension and postretirement liabilities 1,101 1,102
Deferred income taxes 207 207
Income taxes 335 312
Other liabilities 456 487
Total Liabilities 8,952 9,555
Commitments and contingencies (Note 8)
Shareholders' equity:    
Common shares, CHF 0.57 par value, 357,069,981 shares authorized and issued 157 157
Accumulated earnings 11,886 12,114
Treasury shares, at cost, 17,727,608 and 12,279,603 shares, respectively (1,550) (1,134)
Accumulated other comprehensive loss (257) (306)
Total Shareholders' Equity 10,236 10,831
Total Liabilities and Shareholders' Equity $ 19,188 $ 20,386
v3.10.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)
$ in Millions
Dec. 28, 2018
SFr / shares
Dec. 28, 2018
USD ($)
shares
Sep. 28, 2018
SFr / shares
Sep. 28, 2018
USD ($)
shares
CONDENSED CONSOLIDATED BALANCE SHEETS        
Accounts receivable, allowance for doubtful accounts (in dollars) | $   $ 26   $ 22
Common shares, par value (in currency per share) | SFr / shares SFr 0.57   SFr 0.57  
Common shares, shares authorized   357,069,981   357,069,981
Common shares, shares issued   357,069,981   357,069,981
Treasury shares   17,727,608   12,279,603
v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
shares in Millions, $ in Millions
Common Shares
Treasury Shares
Contributed Surplus
Accumulated Earnings
Accumulated Other Comprehensive Loss
Total
Balance at Sep. 29, 2017 $ 157 $ (421)   $ 10,175 $ (160) $ 9,751
Balance (in shares) at Sep. 29, 2017 357 (5)        
Increase (Decrease) in Equity:            
Net income (loss)       (40)   (40)
Other comprehensive income         76 76
Share-based compensation expense     $ 29     29
Exercise of share options   $ 54       54
Exercise of share options (in shares)   1        
Restricted share award vestings and other activity   $ 92 (29) (88)   (25)
Repurchase of common shares   $ (214)       $ (214)
Repurchase of common shares (in shares)   (2)       (2)
Balance at Dec. 29, 2017 $ 157 $ (489)   10,047 (84) $ 9,631
Balance (in shares) at Dec. 29, 2017 357 (6)        
Balance at Sep. 28, 2018 $ 157 $ (1,134)   12,114 (306) 10,831
Balance (in shares) at Sep. 28, 2018 357 (12)        
Increase (Decrease) in Equity:            
Adoption of ASU No. 2016-16 | ASU 2016-16       (443)   (443)
Net income (loss)       276   276
Other comprehensive income         49 49
Share-based compensation expense     23     23
Exercise of share options   $ 7       7
Restricted share award vestings and other activity   72 $ (23) (61)   (12)
Repurchase of common shares   $ (495)       $ (495)
Repurchase of common shares (in shares)   (6)       (6)
Balance at Dec. 28, 2018 $ 157 $ (1,550)   $ 11,886 $ (257) $ 10,236
Balance (in shares) at Dec. 28, 2018 357 (18)        
v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Cash Flows From Operating Activities:    
Net income (loss) $ 276 $ (40)
Loss from discontinued operations, net of income taxes 107 7
Income (loss) from continuing operations 383 (33)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities:    
Depreciation and amortization 168 162
Deferred income taxes (11) 510
Provision for losses on accounts receivable and inventories 23 17
Share-based compensation expense 23 28
Other 18 (6)
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:    
Accounts receivable, net (26) (139)
Inventories (119) (177)
Prepaid expenses and other current assets 67 (45)
Accounts payable (9) 161
Accrued and other current liabilities (190) (239)
Income taxes 15 7
Other (14) 37
Net cash provided by continuing operating activities 328 283
Net cash provided by (used in) discontinued operating activities (31) 67
Net cash provided by operating activities 297 350
Cash Flows From Investing Activities:    
Capital expenditures (210) (237)
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation 288  
Other 4  
Net cash provided by (used in) continued investing activities 82 (237)
Net cash used in discontinued investing activities (2) (4)
Net cash provided by (used in) investing activities 80 (241)
Cash Flows From Financing Activities:    
Net increase in commercial paper 63 241
Proceeds from issuance of debt 350 119
Repayment of debt (441) (708)
Proceeds from exercise of share options 7 54
Repurchase of common shares (519) (167)
Payment of common share dividends to shareholders (150) (141)
Transfers (to) from discontinued operations (33) 63
Other (29) (32)
Net cash used in continuing financing activities (752) (571)
Net cash provided by (used in) discontinued financing activities 33 (63)
Net cash used in financing activities (719) (634)
Effect of currency translation on cash (1) 11
Net decrease in cash, cash equivalents, and restricted cash (343) (514)
Cash, cash equivalents, and restricted cash at beginning of period 848 1,218
Cash, cash equivalents, and restricted cash at end of period $ 505 $ 704
v3.10.0.1
Basis of Presentation and Accounting Policies
 3 Months Ended
Dec. 28, 2018
Basis of Presentation and Accounting Policies  
Basis of Presentation and Accounting Policies

1. Basis of Presentation and Accounting Policies

Basis of Presentation

        The unaudited Condensed Consolidated Financial Statements of TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") have been prepared in United States ("U.S.") dollars, in accordance with accounting principles generally accepted in the U.S. ("GAAP") and the instructions to Form 10-Q under the Securities Exchange Act of 1934. In management's opinion, the unaudited Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire fiscal year or any subsequent interim period.

        The year-end balance sheet data was derived from audited financial statements, but does not include all of the information and disclosures required by GAAP. These financial statements should be read in conjunction with our audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the fiscal year ended September 28, 2018.

        Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2019 and fiscal 2018 are to our fiscal years ending September 27, 2019 and ended September 28, 2018, respectively.

Revenue Recognition

        We account for revenue in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, which introduced a single, comprehensive, five-step revenue recognition model. Our revenues are generated principally from the sale of our products. Revenue is recognized as performance obligations under the terms of a contract, such as a purchase order with a customer, are satisfied; generally this occurs with the transfer of control. We transfer control and recognize revenue when we ship product to our customers, the customers accept and have legal title for the product, and we have a right to payment for such product. Revenue is measured as the amount of consideration that we expect to receive in exchange for those products and excludes taxes assessed by governmental authorities and collected from customers concurrent with the sale of products. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. Since we typically invoice our customers when we satisfy our performance obligations, we do not have material contract assets or contract liabilities. Our credit terms are customary and do not contain significant financing components that extend beyond one year of fulfillment of performance obligations. We apply the practical expedient of ASC 606 with respect to financing components and do not evaluate contracts in which payment is due within one year of satisfaction of the related performance obligation. Since our performance obligations to deliver products are part of contracts that generally have original durations of one year or less, we have elected to use the optional exemption to not disclose the aggregate amount of transaction prices associated with unsatisfied or partially satisfied performance obligations as of December 28, 2018. See Note 15 for net sales disaggregated by industry end market and geographic region which is summarized by segment and that we consider meaningful to depict the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors.

        We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We do not account for these warranties as separate performance obligations.

        Although products are generally sold at fixed prices, certain distributors and customers receive incentives or awards, such as sales rebates, return allowances, scrap allowances, and other rights, which are accounted for as variable consideration. We estimate these amounts in the same period revenue is recognized based on the expected value to be provided to customers and reduce revenue accordingly. Our estimates of variable consideration and ultimate determination of the estimated amounts to include in the transaction price are based primarily on our assessment of anticipated performance and historical and forecasted information that is reasonably available to us.

Recently Adopted Accounting Pronouncements

        In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-12, an update to ASC 815, Derivatives and Hedging. The update improves and simplifies hedge accounting and related disclosures. We elected to early adopt this update, which did not have a material impact on our Condensed Consolidated Financial Statements, in the quarter ended December 28, 2018.

        In October 2016, the FASB issued ASU No. 2016-16, an update to ASC 740, Income Taxes. This guidance requires the recognition of the income tax consequences of intra-entity transfers of assets other than inventory in the period in which the transfer occurs. The update was adopted on a modified retrospective basis in the quarter ended December 28, 2018 and resulted in a $443 million cumulative-effect adjustment to beginning accumulated earnings, which represented the net reversal of all balances associated with deferred tax impacts of intra-entity transfers of assets other than inventory. This included a decrease in other assets of $798 million, an increase in deferred tax assets of $418 million, and a decrease in prepaid expenses and other current assets of $63 million on the Condensed Consolidated Balance Sheet.

        In May 2014, the FASB issued ASU No. 2014-09 which codified ASC 606, Revenue from Contracts with Customers. This guidance supersedes ASC 605, Revenue Recognition, and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. We adopted ASC 606, as amended, in the quarter ended December 28, 2018 using a modified retrospective approach. Prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for those periods. Transition impacts, which relate primarily to incentive compensation arrangements, were not material to our results of operations or financial position. Because the impact of adoption was immaterial, we have not recorded a cumulative-effect adjustment to beginning accumulated earnings.

v3.10.0.1
Restructuring and Other Charges, Net
 3 Months Ended
Dec. 28, 2018
Restructuring and Other Charges, Net  
Restructuring and Other Charges, Net

2. Restructuring and Other Charges, Net

        Net restructuring charges by segment were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Transportation Solutions

 

$
21

 

$
4

 

Industrial Solutions

 

 
35

 

 
22

 

Communications Solutions

 

 
19

 

 
8

 

​

​

​  

​  

​

​  

​  

​

Restructuring charges, net

 

$
75

 

$
34

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

        Activity in our restructuring reserves was as follows:

                                                                                                                                                                                    

 

 

Balance at
September 28,
2018

 

Charges

 

Changes
in
Estimate

 

Cash
Payments

 

Non-Cash
Items

 

Currency
Translation

 

Balance at
December 28,
2018

 

 

 

(in millions)

 

Fiscal 2019 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

—

 

$
67

 

$

—

 

$
(4

)

$

—

 

$

—

 

$
63

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 
114

 

 
1

 

 

—

 

 
(16

)

 

—

 

 
(2

)

 
97

 

Facility and other exit costs

 

 
4

 

 
1

 

 

—

 

 
(1

)

 

—

 

 

—

 

 
4

 

Property, plant and equipment

 

 

—

 

 
1

 

 

—

 

 

—

 

 
(1

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 
118

 

 
3

 

 

—

 

 
(17

)

 
(1

)

 
(2

)

 
101

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Pre-Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 
49

 

 
4

 

 
(1

)

 
(8

)

 

—

 

 
(1

)

 
43

 

Facility and other exit costs

 

 

—

 

 
1

 

 

—

 

 
(1

)

 

—

 

 

—

 

 

—

 

Property, plant and equipment

 

 

—

 

 
1

 

 

—

 

 

—

 

 
(1

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 
49

 

 
6

 

 
(1

)

 
(9

)

 
(1

)

 
(1

)

 
43

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Activity

 

$
167

 

$
76

 

$
(1

)

$
(30

)

$
(2

)

$
(3

)

$
207

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Fiscal 2019 Actions

        During fiscal 2019, we initiated a restructuring program associated with footprint consolidation and structural improvements impacting all segments. In connection with this program, during the quarter ended December 28, 2018, we recorded restructuring charges of $67 million. We expect to complete all restructuring actions commenced during the quarter ended December 28, 2018 by the end of fiscal 2020 and to incur additional charges of approximately $10 million primarily in the Industrial Solutions segment.

Fiscal 2018 Actions

        During fiscal 2018, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions and Transportation Solutions segments. In connection with this program, during the quarters ended December 28, 2018 and December 29, 2017, we recorded restructuring charges of $3 million and $22 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2018 by the end of fiscal 2020 and to incur additional charges of approximately $10 million primarily in the Industrial Solutions segment.

Pre-Fiscal 2018 Actions

        Prior to fiscal 2018, we initiated a restructuring program associated with footprint consolidation related to recent acquisitions and structural improvements impacting all segments. Also prior to fiscal 2018, we initiated a restructuring program associated with headcount reductions impacting all segments and product line closures in the Communications Solutions segment. During the quarters ended December 28, 2018 and December 29, 2017, we recorded net restructuring charges of $5 million and $12 million, respectively, related to pre-fiscal 2018 actions. We expect additional charges related to pre-fiscal 2018 actions to be insignificant.

Total Restructuring Reserves

        Restructuring reserves included on the Condensed Consolidated Balance Sheets were as follows:

                                                                                                                                                                                    

 

 

December 28,
2018

 

September 28,
2018

 

 

 

(in millions)

 

Accrued and other current liabilities

 

$
183

 

$
141

 

Other liabilities

 

 
24

 

 
26

 

​

​

​  

​  

​

​  

​  

​

Restructuring reserves

 

$
207

 

$
167

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Discontinued Operations
 3 Months Ended
Dec. 28, 2018
Discontinued Operations  
Discontinued Operations

3. Discontinued Operations

        During the quarter ended December 28, 2018, we sold our Subsea Communications ("SubCom") business for net cash proceeds of $288 million and incurred a pre-tax loss on sale of $96 million, related primarily to the recognition of cumulative translation adjustment losses of $67 million. The transaction is subject to a final working capital adjustment. The SubCom business met the held for sale and discontinued operations criteria and was reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the SubCom business was included in the Communications Solutions segment.

        In connection with the sale, we contractually agreed to continue to honor performance guarantees and letters of credit related to the SubCom business' projects that existed as of the date of sale. These guarantees have a combined value of approximately $1.7 billion and are expected to expire at various dates through fiscal 2025; however, the majority are expected to expire within two years. At the time of sale, we determined that the fair value of these guarantees was $12 million, which we recognized by a charge to pre-tax loss on sale. Also, under the terms of the definitive agreement, we are required to issue up to $300 million of new performance guarantees, subject to certain limitations, for projects entered into by the SubCom business following the sale for a period of up to three years. During the quarter ended December 28, 2018, we issued a guarantee of $70 million for a new project. We have contractual recourse against the SubCom business if we are required to perform on any SubCom guarantees; however, based on historical experience, we do not anticipate having to perform.

        The following table presents the summarized components of loss from discontinued operations, net of income taxes, for the SubCom business and prior divestitures:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Net sales

 

$
41

 

$
143

 

Cost of sales

 

 
(50

)

 
(132

)

Selling, general, and administrative expenses

 

 
(4

)

 
(7

)

Research, development, and engineering expenses

 

 
(3

)

 
(10

)

Restructuring and other charges, net

 

 
(3

)

 

—

 

​

​

​  

​  

​

​  

​  

​

Pre-tax loss from discontinued operations

 

 
(19

)

 
(6

)

Pre-tax loss on sale of discontinued operations

 

 
(96

)

 

—

 

Income tax (expense) benefit

 

 
8

 

 
(1

)

​

​

​  

​  

​

​  

​  

​

Loss from discontinued operations, net of income taxes

 

$
(107

)

$
(7

)

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

        The following table presents balance sheet information for assets and liabilities held for sale at September 28, 2018; there were no such balances at December 28, 2018:

                                                                                                                                                                                    

 

 

September 28,
2018

 

 

 

(in millions)

 

Accounts receivable, net

 

$
72

 

Inventories

 

 
130

 

Other current assets

 

 
32

 

Property, plant, and equipment, net

 

 
221

 

Other assets

 

 
17

 

​

​

​  

​  

​

Total assets held for sale

 

$
472

 

​

​

​  

​  

​

​

​

​  

​  

​

Accounts payable

 


$
63

 

Accrued and other current liabilities

 

 
26

 

Deferred revenue

 

 
60

 

Other liabilities

 

 
39

 

​

​

​  

​  

​

Total liabilities held for sale

 

$
188

 

​

​

​  

​  

​

​

​

​  

​  

​

 

v3.10.0.1
Inventories
 3 Months Ended
Dec. 28, 2018
Inventories  
Inventories

4. Inventories

        Inventories consisted of the following:

                                                                                                                                                                                                      

 

 

December 28,
2018

 

September 28,
2018

 

 

 

(in millions)

 

Raw materials

 

$
306

 

$
276

 

Work in progress

 

 
735

 

 
656

 

Finished goods

 

 
945

 

 
925

 

​

​

​  

​  

​

​  

​  

​

Inventories

 

$
1,986

 

$
1,857

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Goodwill
 3 Months Ended
Dec. 28, 2018
Goodwill  
Goodwill

5. Goodwill

        The changes in the carrying amount of goodwill by segment were as follows:

                                                                                                                                                                                    

 

 

Transportation
Solutions

 

Industrial
Solutions

 

Communications
Solutions

 

Total

 

 

 

(in millions)

 

September 28, 2018(1)

 

$
1,993

 

$
3,104

 

$
587

 

$
5,684

 

Currency translation and other

 

 
(13

)

 
(19

)

 
(4

)

 
(36

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

December 28, 2018(1)

 

$
1,980

 

$
3,085

 

$
583

 

$
5,648

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

  

(1)          At December 28, 2018 and September 28, 2018, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $489 million, respectively.

 

v3.10.0.1
Intangible Assets, Net
 3 Months Ended
Dec. 28, 2018
Intangible Assets, Net  
Intangible Assets, Net

6. Intangible Assets, Net

        Intangible assets consisted of the following:

                                                                                                                                                                                                      

 

 

December 28, 2018

 

September 28, 2018

 

 

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

 

 

(in millions)

 

Customer relationships

 

$
1,457

 

$
(410

)

$
1,047

 

$
1,468

 

$
(389

)

$
1,079

 

Intellectual property

 

 
1,257

 

 
(673

)

 
584

 

 
1,261

 

 
(653

)

 
608

 

Other

 

 
34

 

 
(17

)

 
17

 

 
33

 

 
(16

)

 
17

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

$
2,748

 

$
(1,100

)

$
1,648

 

$
2,762

 

$
(1,058

)

$
1,704

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

        Intangible asset amortization expense was $45 million for the quarters ended December 28, 2018 and December 29, 2017.

        At December 28, 2018, the aggregate amortization expense on intangible assets is expected to be as follows:

                                                                                                                                                                                                      

 

 

(in millions)

 

Remainder of fiscal 2019

 

$
136

 

Fiscal 2020

 

 
175

 

Fiscal 2021

 

 
172

 

Fiscal 2022

 

 
172

 

Fiscal 2023

 

 
171

 

Fiscal 2024

 

 
140

 

Thereafter

 

 
682

 

​

​

​  

​  

​

Total

 

$
1,648

 

​

​

​  

​  

​

​

​

​  

​  

​

 

v3.10.0.1
Debt
 3 Months Ended
Dec. 28, 2018
Debt  
Debt

7. Debt

        During November 2018, Tyco Electronics Group S.A. ("TEGSA"), our 100%-owned subsidiary, issued $350 million aggregate principal amount of senior floating rate notes due June 2020. The notes bear interest at a rate of three-month London Interbank Offered Rate ("LIBOR") plus 0.45% per year. The notes are TEGSA's unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur.

        During December 2018, TEGSA repaid, at maturity, $325 million 2.375% senior notes due 2018.

        TEGSA has a five-year unsecured senior revolving credit facility ("Credit Facility") with total commitments of $1,500 million. The Credit Facility was amended in November 2018 primarily to extend the maturity date from December 2020 to November 2023. The amended Credit Facility contains provisions that allow for incremental commitments of up to $500 million, an option to temporarily increase the financial ratio covenant following a qualified acquisition, and borrowings in designated currencies. TEGSA had no borrowings under the Credit Facility at December 28, 2018 or September 28, 2018.

        As of December 28, 2018, TEGSA had $333 million of commercial paper outstanding at a weighted-average interest rate of 2.94%. TEGSA had $270 million of commercial paper outstanding at a weighted-average interest rate of 2.35% at September 28, 2018.

        The fair value of our debt, based on indicative valuations, was approximately $4,091 million and $4,149 million at December 28, 2018 and September 28, 2018, respectively.

v3.10.0.1
Commitments and Contingencies
 3 Months Ended
Dec. 28, 2018
Commitments and Contingencies  
Commitments and Contingencies

8. Commitments and Contingencies

Legal Proceedings

        In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows.

Environmental Matters

        We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of December 28, 2018, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $15 million to $44 million, and we accrued $17 million as the probable loss, which was the best estimate within this range. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows.

Guarantees

        In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows.

        At December 28, 2018, we had outstanding letters of credit, letters of guarantee, and surety bonds of $286 million.

        We sold our SubCom business during the quarter ended December 28, 2018. In connection with the sale, we contractually agreed to honor certain performance guarantees and letters of credit related to the SubCom business. See Note 3 for additional information regarding these guarantees and the divestiture of the SubCom business.

v3.10.0.1
Financial Instruments
 3 Months Ended
Dec. 28, 2018
Financial Instruments  
Financial Instruments

9. Financial Instruments

Foreign Currency Exchange Rate Risk

        During fiscal 2015, we entered into cross-currency swap contracts with an aggregate notional value of €1,000 million to reduce our exposure to foreign currency exchange rate risk associated with certain intercompany loans. Under the terms of these contracts, which have been designated as cash flow hedges, we make interest payments in euros at 3.50% per annum and receive interest in U.S. dollars at a weighted-average rate of 5.33% per annum. Upon maturity of these contracts in fiscal 2022, we will pay the notional value of the contracts in euros and receive U.S. dollars from our counterparties. In connection with the cross-currency swap contracts, we are required to post cash collateral with our counterparties.

        At December 28, 2018 and September 28, 2018, our cross-currency swap contracts were in liability positions of $64 million and $100 million, respectively, and were recorded in other liabilities on the Condensed Consolidated Balance Sheets. At December 28, 2018 and September 28, 2018, collateral paid to our counterparties approximated the derivative positions and was recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. The impacts of our cross-currency swap contracts were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Gains (losses) recorded in other comprehensive income (loss)

 

$
19

 

$
(10

)

Gains (losses) excluded from the hedging relationship(1)

 

 
17

 

 
(19

)

  

(1)          Gains and losses excluded from the hedging relationship are recognized prospectively in selling, general, and administrative expenses and are offset by losses and gains generated as a result of re-measuring certain intercompany loans to the U.S. dollar.

Hedge of Net Investment

        During fiscal 2019, we expanded our cross-currency swap program to hedge our net investment in certain foreign operations. The aggregate notional value of this program was $952 million at December 28, 2018. Under the terms of these contracts, we receive interest in U.S. dollars at a weighted-average rate of 3.06% per annum and pay no interest. Upon maturity of these contracts at various dates through fiscal 2022, we will pay the notional value of the contracts in the designated foreign currency and receive U.S. dollars from our counterparties.

        In addition to the cross-currency swap program, we hedge our net investment in certain foreign operations using intercompany loans and external borrowings denominated in the same currencies. The aggregate notional value of these hedges was $3,189 million and $4,064 million at December 28, 2018 and September 28, 2018, respectively.

        The impacts of our hedging programs were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Foreign currency exchange gains (losses) on intercompany loans and external borrowings(1)

 

$
76

 

$
(66

)

Losses on cross-currency swaps designated as hedge of net investment(2)

 

 
(5

)

 

—

 

  

(1)          Foreign currency exchange gains and losses on intercompany loans and external borrowings are recorded as currency translation, a component of accumulated other comprehensive income (loss), and are offset by changes attributable to the translation of the net investment.

(2)          Gains and losses on cross-currency swaps designated as hedge of net investment are recorded as currency translation.

 

v3.10.0.1
Retirement Plans
 3 Months Ended
Dec. 28, 2018
Retirement Plans  
Retirement Plans

10. Retirement Plans

        The net periodic pension benefit cost for all non-U.S. and U.S. defined benefit pension plans was as follows:

                                                                                                                                                                                    

 

 

Non-U.S. Plans

 

U.S. Plans

 

 

 

For the
Quarters Ended

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Service cost

 

$
12

 

$
12

 

$
3

 

$
3

 

Interest cost

 

 
11

 

 
10

 

 
12

 

 
11

 

Expected return on plan assets

 

 
(16

)

 
(17

)

 
(14

)

 
(15

)

Amortization of net actuarial loss

 

 
6

 

 
6

 

 
4

 

 
6

 

Amortization of prior service credit

 

 
(2

)

 
(2

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net periodic pension benefit cost

 

$
11

 

$
9

 

$
5

 

$
5

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

        The components of net periodic pension benefit cost other than service cost are included in net other income (expense) on the Condensed Consolidated Statements of Operations.

v3.10.0.1
Income Taxes
 3 Months Ended
Dec. 28, 2018
Income Taxes  
Income Taxes

11. Income Taxes

        We recorded income tax expense of $78 million and $599 million for the quarters ended December 28, 2018 and December 29, 2017, respectively. The income tax expense for the quarter ended December 29, 2017 included $567 million of income tax expense related to the tax impacts of the Tax Cuts and Jobs Act (the "Act") and a $61 million net income tax benefit related to certain legal entity restructurings. During the quarter ended December 29, 2017, the period of enactment of the Act, we were required to revalue our U.S. federal deferred tax assets and liabilities at a U.S. federal corporate tax rate of 21% and we recorded income tax expense of $567 million primarily in connection with the write-down of our U.S. federal deferred tax asset for net operating loss and interest carryforwards. Included in the expense of $567 million was an income tax benefit of $34 million related to the reduction in the existing valuation allowance recorded against certain U.S. federal tax credit carryforwards.

        We record accrued interest and penalties related to uncertain tax positions as part of income tax expense. As of December 28, 2018 and September 28, 2018, we had $63 million and $60 million, respectively, of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheets, recorded primarily in income taxes.

        Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that up to approximately $125 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months.

        We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of December 28, 2018.

Tax Sharing Agreement

        Under a Tax Sharing Agreement, we, Tyco International plc ("Tyco International"), and Covidien plc ("Covidien") share 31%, 27%, and 42%, respectively, of income tax liabilities that arise from adjustments made by tax authorities to the collective income tax returns for periods prior to and including June 29, 2007. Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien. We have substantially settled all U.S. federal income tax matters with the IRS for periods covered under the Tax Sharing Agreement. Certain shared U.S. state and non-U.S. income tax matters remain open. We do not expect these matters will have a material effect on our results of operations, financial position, or cash flows. As a result of subsequent transactions, Tyco International and Covidien now operate as part of Johnson Controls International plc and Medtronic plc, respectively.

v3.10.0.1
Earnings (Loss) Per Share
 3 Months Ended
Dec. 28, 2018
Earnings (Loss) Per Share  
Earnings (Loss) Per Share

12. Earnings (Loss) Per Share

        The weighted-average number of shares outstanding used in the computations of basic and diluted earnings (loss) per share were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Basic

 

 
342

 

 
352

 

Dilutive impact of share-based compensation arrangements

 

 
2

 

 

—

 

​

​

​  

​  

​

​  

​  

​

Diluted

 

 
344

 

 
352

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

        There were one million share options that were not included in the computation of diluted earnings (loss) per share for the quarters ended December 28, 2018 and December 29, 2017 because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive.

        For the quarter ended December 29, 2017, there were three million nonvested share awards and options outstanding with underlying exercise prices less than the average market prices of our common shares; however, these were excluded from the calculation of diluted loss per share as inclusion would be antidilutive as a result of our loss during the period.

v3.10.0.1
Shareholders' Equity
 3 Months Ended
Dec. 28, 2018
Shareholders' Equity  
Shareholders' Equity

13. Shareholders' Equity

Dividends

        We paid cash dividends to shareholders of $0.44 and $0.40 per share during the quarters ended December 28, 2018 and December 29, 2017, respectively.

        Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to shareholders' equity. At December 28, 2018 and September 28, 2018, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $149 million and $303 million, respectively.

Share Repurchase Program

        During the quarter ended December 28, 2018, our board of directors authorized an increase of $1.5 billion in the share repurchase program. Common shares repurchased under the share repurchase program were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Number of common shares repurchased

 

 
6

 

 
2

 

Repurchase value

 

$
495

 

$
214

 

        At December 28, 2018, we had $2.0 billion of availability remaining under our share repurchase authorization.

v3.10.0.1
Share Plans
 3 Months Ended
Dec. 28, 2018
Share Plans  
Share Plans

14. Share Plans

        Share-based compensation expense, which was included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Share-based compensation expense

 

$
23

 

$
28

 

        As of December 28, 2018, there was $179 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.3 years.

        During the quarter ended December 28, 2018, we granted the following share-based awards as part of our annual incentive plan grant:

                                                                                                                                                                                    

 

 

Shares

 

Grant-Date
Fair Value

 

 

 

(in millions)

 

 

 

Share options

 

 
1.6

 

$
13.36

 

Restricted share awards

 

 
0.6

 

 
76.66

 

Performance share awards

 

 
0.2

 

 
76.66

 

        As of December 28, 2018, we had 17 million shares available for issuance under our stock and incentive plans, of which the TE Connectivity Ltd. 2007 Stock and Incentive Plan, amended and restated as of March 8, 2017, was the primary plan.

Share-Based Compensation Assumptions

        The assumptions we used in the Black-Scholes-Merton option pricing model for the options granted as part of our annual incentive plan grant were as follows:

                                                                                                                                                                                    

Expected share price volatility

 

 
20

%

Risk free interest rate

 

 
3.0

%

Expected annual dividend per share

 

$
1.76

 

Expected life of options (in years)

 

 
5.2

 

 

v3.10.0.1
Segment and Geographic Data
 3 Months Ended
Dec. 28, 2018
Segment and Geographic Data  
Segment and Geographic Data

15. Segment and Geographic Data

        Net sales by segment(1) and industry end market(2) were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Transportation Solutions:

 

 

 

 

 

 

 

Automotive

 

$
1,469

 

$
1,517

 

Commercial transportation

 

 
297

 

 
300

 

Sensors

 

 
220

 

 
215

 

​

​

​  

​  

​

​  

​  

​

Total Transportation Solutions

 

 
1,986

 

 
2,032

 

​

​

​  

​  

​

​  

​  

​

Industrial Solutions:

 

 

 

 

 

 

 

Industrial equipment

 

 
483

 

 
471

 

Aerospace, defense, oil, and gas

 

 
285

 

 
254

 

Energy

 

 
160

 

 
157

 

​

​

​  

​  

​

​  

​  

​

Total Industrial Solutions

 

 
928

 

 
882

 

​

​

​  

​  

​

​  

​  

​

Communications Solutions:

 

 

 

 

 

 

 

Data and devices

 

 
257

 

 
238

 

Appliances

 

 
176

 

 
184

 

​

​

​  

​  

​

​  

​  

​

Total Communications Solutions

 

 
433

 

 
422

 

​

​

​  

​  

​

​  

​  

​

Total

 

$
3,347

 

$
3,336

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

  

(1)          Intersegment sales were not material and were recorded at selling prices that approximated market prices.

(2)          Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.

        Net sales by geographic region(1) and segment were as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Europe/Middle East/Africa ("EMEA"):

 

 

 

 

 

 

 

Transportation Solutions

 

$
756

 

$
808

 

Industrial Solutions

 

 
350

 

 
344

 

Communications Solutions

 

 
65

 

 
66

 

​

​

​  

​  

​

​  

​  

​

Total EMEA

 

 
1,171

 

 
1,218

 

​

​

​  

​  

​

​  

​  

​

Asia–Pacific:

 

 

 

 

 

 

 

Transportation Solutions

 

 
764

 

 
805

 

Industrial Solutions

 

 
155

 

 
163

 

Communications Solutions

 

 
254

 

 
252

 

​

​

​  

​  

​

​  

​  

​

Total Asia–Pacific

 

 
1,173

 

 
1,220

 

​

​

​  

​  

​

​  

​  

​

Americas:

 

 

 

 

 

 

 

Transportation Solutions

 

 
466

 

 
419

 

Industrial Solutions

 

 
423

 

 
375

 

Communications Solutions

 

 
114

 

 
104

 

​

​

​  

​  

​

​  

​  

​

Total Americas

 

 
1,003

 

 
898

 

​

​

​  

​  

​

​  

​  

​

Total

 

$
3,347

 

$
3,336

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

  

(1)          Net sales to external customers are attributed to individual countries based on the legal entity that records the sale.

        Operating income by segment was as follows:

                                                                                                                                                                                    

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Transportation Solutions

 

$
332

 

$
417

 

Industrial Solutions

 

 
100

 

 
102

 

Communications Solutions

 

 
52

 

 
67

 

​

​

​  

​  

​

​  

​  

​

Total

 

$
484

 

$
586

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Tyco Electronics Group S.A.
 3 Months Ended
Dec. 28, 2018
Tyco Electronics Group S.A.  
Tyco Electronics Group S.A.

16. Tyco Electronics Group S.A.

        Tyco Electronics Group S.A. ("TEGSA"), a Luxembourg company and our 100%-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries. TEGSA is the obligor under our senior notes, commercial paper, and Credit Facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The following tables present condensed consolidating financial information for TE Connectivity Ltd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting.

Condensed Consolidating Statement of Operations (unaudited)
For the Quarter Ended December 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Net sales

 

$

—

 

$

—

 

$
3,347

 

$

—

 

$
3,347

 

Cost of sales

 

 

—

 

 

—

 

 
2,233

 

 

—

 

 
2,233

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Gross margin

 

 

—

 

 

—

 

 
1,114

 

 

—

 

 
1,114

 

Selling, general, and administrative expenses, net(1)

 

 
35

 

 
(107

)

 
461

 

 

—

 

 
389

 

Research, development, and engineering expenses

 

 

—

 

 

—

 

 
161

 

 

—

 

 
161

 

Acquisition and integration costs

 

 

—

 

 

—

 

 
5

 

 

—

 

 
5

 

Restructuring and other charges, net

 

 

—

 

 

—

 

 
75

 

 

—

 

 
75

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Operating income (loss)

 

 
(35

)

 
107

 

 
412

 

 

—

 

 
484

 

Interest income

 

 

—

 

 

—

 

 
5

 

 

—

 

 
5

 

Interest expense

 

 

—

 

 
(27

)

 

—

 

 

—

 

 
(27

)

Other expense, net

 

 

—

 

 

—

 

 
(1

)

 

—

 

 
(1

)

Equity in net income of subsidiaries

 

 
441

 

 
389

 

 

—

 

 
(830

)

 

—

 

Equity in net loss of subsidiaries of discontinued operations

 

 
(107

)

 
(49

)

 

—

 

 
156

 

 

—

 

Intercompany interest income (expense), net

 

 
(23

)

 
(28

)

 
51

 

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income from continuing operations before income taxes

 

 
276

 

 
392

 

 
467

 

 
(674

)

 
461

 

Income tax expense

 

 

—

 

 

—

 

 
(78

)

 

—

 

 
(78

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income from continuing operations

 

 
276

 

 
392

 

 
389

 

 
(674

)

 
383

 

Loss from discontinued operations, net of income taxes

 

 

—

 

 
(58

)

 
(49

)

 

—

 

 
(107

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net income

 

 
276

 

 
334

 

 
340

 

 
(674

)

 
276

 

Other comprehensive income

 

 
49

 

 
49

 

 
35

 

 
(84

)

 
49

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Comprehensive income

 

$
325

 

$
383

 

$
375

 

$
(758

)

$
325

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

  

(1)          TEGSA selling, general, and administrative expenses include gains of $110 million related to intercompany transactions. These gains are offset by corresponding losses recorded by other subsidiaries.

Condensed Consolidating Statement of Operations (unaudited)
For the Quarter Ended December 29, 2017

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Net sales

 

$

—

 

$

—

 

$
3,336

 

$

—

 

$
3,336

 

Cost of sales

 

 

—

 

 

—

 

 
2,172

 

 

—

 

 
2,172

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Gross margin

 

 

—

 

 

—

 

 
1,164

 

 

—

 

 
1,164

 

Selling, general, and administrative expenses, net

 

 
47

 

 
(3

)

 
333

 

 

—

 

 
377

 

Research, development, and engineering expenses

 

 

—

 

 

—

 

 
165

 

 

—

 

 
165

 

Acquisition and integration costs

 

 

—

 

 

—

 

 
2

 

 

—

 

 
2

 

Restructuring and other charges, net

 

 

—

 

 

—

 

 
34

 

 

—

 

 
34

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Operating income (loss)

 

 
(47

)

 
3

 

 
630

 

 

—

 

 
586

 

Interest income

 

 

—

 

 

—

 

 
4

 

 

—

 

 
4

 

Interest expense

 

 

—

 

 
(26

)

 

—

 

 

—

 

 
(26

)

Other income, net

 

 

—

 

 

—

 

 
2

 

 

—

 

 
2

 

Equity in net income of subsidiaries

 

 
27

 

 
22

 

 

—

 

 
(49

)

 

—

 

Equity in net loss of subsidiaries of discontinued operations

 

 
(7

)

 
(7

)

 

—

 

 
14

 

 

—

 

Intercompany interest income (expense), net

 

 
(13

)

 
28

 

 
(15

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income (loss) from continuing operations before income taxes

 

 
(40

)

 
20

 

 
621

 

 
(35

)

 
566

 

Income tax expense

 

 

—

 

 

—

 

 
(599

)

 

—

 

 
(599

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income (loss) from continuing operations

 

 
(40

)

 
20

 

 
22

 

 
(35

)

 
(33

)

Loss from discontinued operations, net of income taxes

 

 

—

 

 

—

 

 
(7

)

 

—

 

 
(7

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net income (loss)

 

 
(40

)

 
20

 

 
15

 

 
(35

)

 
(40

)

Other comprehensive income

 

 
76

 

 
76

 

 
87

 

 
(163

)

 
76

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Comprehensive income

 

$
36

 

$
96

 

$
102

 

$
(198

)

$
36

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Condensed Consolidating Balance Sheet (unaudited)
As of December 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

$

—

 

$
505

 

$

—

 

$
505

 

Accounts receivable, net

 

 

—

 

 

—

 

 
2,380

 

 

—

 

 
2,380

 

Inventories

 

 

—

 

 

—

 

 
1,986

 

 

—

 

 
1,986

 

Intercompany receivables

 

 
51

 

 
3,096

 

 
60

 

 
(3,207

)

 

—

 

Prepaid expenses and other current assets

 

 
4

 

 
68

 

 
435

 

 

—

 

 
507

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current assets

 

 
55

 

 
3,164

 

 
5,366

 

 
(3,207

)

 
5,378

 

Property, plant, and equipment, net

 

 

—

 

 

—

 

 
3,550

 

 

—

 

 
3,550

 

Goodwill

 

 

—

 

 

—

 

 
5,648

 

 

—

 

 
5,648

 

Intangible assets, net

 

 

—

 

 

—

 

 
1,648

 

 

—

 

 
1,648

 

Deferred income taxes

 

 

—

 

 

—

 

 
2,580

 

 

—

 

 
2,580

 

Investment in subsidiaries

 

 
13,557

 

 
26,537

 

 

—

 

 
(40,094

)

 

—

 

Intercompany loans receivable

 

 
2

 

 
1,598

 

 
13,646

 

 
(15,246

)

 

—

 

Other assets

 

 

—

 

 
1

 

 
383

 

 

—

 

 
384

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Assets

 

$
13,614

 

$
31,300

 

$
32,821

 

$
(58,547

)

$
19,188

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Liabilities and Shareholders' Equity

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

—

 

$
583

 

$
2

 

$

—

 

$
585

 

Accounts payable

 

 
2

 

 

—

 

 
1,536

 

 

—

 

 
1,538

 

Accrued and other current liabilities

 

 
220

 

 
53

 

 
1,075

 

 

—

 

 
1,348

 

Intercompany payables

 

 
3,156

 

 

—

 

 
51

 

 
(3,207

)

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current liabilities

 

 
3,378

 

 
636

 

 
2,664

 

 
(3,207

)

 
3,471

 

Long-term debt

 

 

—

 

 
3,379

 

 
3

 

 

—

 

 
3,382

 

Intercompany loans payable

 

 

—

 

 
13,648

 

 
1,598

 

 
(15,246

)

 

—

 

Long-term pension and postretirement liabilities

 

 

—

 

 

—

 

 
1,101

 

 

—

 

 
1,101

 

Deferred income taxes

 

 

—

 

 

—

 

 
207

 

 

—

 

 
207

 

Income taxes

 

 

—

 

 

—

 

 
335

 

 

—

 

 
335

 

Other liabilities

 

 

—

 

 
80

 

 
376

 

 

—

 

 
456

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities

 

 
3,378

 

 
17,743

 

 
6,284

 

 
(18,453

)

 
8,952

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Shareholders' Equity

 

 
10,236

 

 
13,557

 

 
26,537

 

 
(40,094

)

 
10,236

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities and Shareholders' Equity

 

$
13,614

 

$
31,300

 

$
32,821

 

$
(58,547

)

$
19,188

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

Condensed Consolidating Balance Sheet (unaudited)
As of September 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

$

—

 

$
848

 

$

—

 

$
848

 

Accounts receivable, net

 

 

—

 

 

—

 

 
2,361

 

 

—

 

 
2,361

 

Inventories

 

 

—

 

 

—

 

 
1,857

 

 

—

 

 
1,857

 

Intercompany receivables

 

 
37

 

 
2,391

 

 
48

 

 
(2,476

)

 

—

 

Prepaid expenses and other current assets

 

 
5

 

 
112

 

 
544

 

 

—

 

 
661

 

Current assets held for sale

 

 

—

 

 

—

 

 
472

 

 

—

 

 
472

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current assets

 

 
42

 

 
2,503

 

 
6,130

 

 
(2,476

)

 
6,199

 

Property, plant, and equipment, net

 

 

—

 

 

—

 

 
3,497

 

 

—

 

 
3,497

 

Goodwill

 

 

—

 

 

—

 

 
5,684

 

 

—

 

 
5,684

 

Intangible assets, net

 

 

—

 

 

—

 

 
1,704

 

 

—

 

 
1,704

 

Deferred income taxes

 

 

—

 

 

—

 

 
2,144

 

 

—

 

 
2,144

 

Investment in subsidiaries

 

 
13,626

 

 
26,613

 

 

—

 

 
(40,239

)

 

—

 

Intercompany loans receivable

 

 
2

 

 
6,535

 

 
17,887

 

 
(24,424

)

 

—

 

Other assets

 

 

—

 

 

—

 

 
1,158

 

 

—

 

 
1,158

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Assets

 

$
13,670

 

$
35,651

 

$
38,204

 

$
(67,139

)

$
20,386

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Liabilities and Shareholders' Equity

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

—

 

$
961

 

$
2

 

$

—

 

$
963

 

Accounts payable

 

 
2

 

 

—

 

 
1,546

 

 

—

 

 
1,548

 

Accrued and other current liabilities

 

 
400

 

 
36

 

 
1,275

 

 

—

 

 
1,711

 

Intercompany payables

 

 
2,437

 

 

—

 

 
39

 

 
(2,476

)

 

—

 

Current liabilities held for sale

 

 

—

 

 

—

 

 
188

 

 

—

 

 
188

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current liabilities

 

 
2,839

 

 
997

 

 
3,050

 

 
(2,476

)

 
4,410

 

Long-term debt

 

 

—

 

 
3,033

 

 
4

 

 

—

 

 
3,037

 

Intercompany loans payable

 

 

—

 

 
17,888

 

 
6,536

 

 
(24,424

)

 

—

 

Long-term pension and postretirement liabilities

 

 

—

 

 

—

 

 
1,102

 

 

—

 

 
1,102

 

Deferred income taxes

 

 

—

 

 

—

 

 
207

 

 

—

 

 
207

 

Income taxes

 

 

—

 

 

—

 

 
312

 

 

—

 

 
312

 

Other liabilities

 

 

—

 

 
107

 

 
380

 

 

—

 

 
487

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities

 

 
2,839

 

 
22,025

 

 
11,591

 

 
(26,900

)

 
9,555

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Shareholders' Equity

 

 
10,831

 

 
13,626

 

 
26,613

 

 
(40,239

)

 
10,831

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities and Shareholders' Equity

 

$
13,670

 

$
35,651

 

$
38,204

 

$
(67,139

)

$
20,386

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

Condensed Consolidating Statement of Cash Flows (unaudited)
For the Quarter Ended December 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) continuing operating activities

 

$
(73

)

$
(9

)

$
410

 

$

—

 

$
328

 

Net cash used in discontinued operating activities

 

 

—

 

 

—

 

 
(31

)

 

—

 

 
(31

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) operating activities

 

 
(73

)

 
(9

)

 
379

 

 

—

 

 
297

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

—

 

 
(210

)

 

—

 

 
(210

)

Proceeds from divestiture of discontinued operation, net of cash retained by sold operation

 

 

—

 

 
303

 

 
(15

)

 

—

 

 
288

 

Change in intercompany loans

 

 

—

 

 
(25

)

 

—

 

 
25

 

 

—

 

Other

 

 

—

 

 

—

 

 
4

 

 

—

 

 
4

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing investing activities

 

 

—

 

 
278

 

 
(221

)

 
25

 

 
82

 

Net cash used in discontinued investing activities

 

 

—

 

 

—

 

 
(2

)

 

—

 

 
(2

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) investing activities

 

 

—

 

 
278

 

 
(223

)

 
25

 

 
80

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in parent company equity(1)

 

 
23

 

 
(240

)

 
217

 

 

—

 

 

—

 

Net increase in commercial paper

 

 

—

 

 
63

 

 

—

 

 

—

 

 
63

 

Proceeds from issuance of debt

 

 

—

 

 
350

 

 

—

 

 

—

 

 
350

 

Repayment of debt

 

 

—

 

 
(441

)

 

—

 

 

—

 

 
(441

)

Proceeds from exercise of share options

 

 

—

 

 

—

 

 
7

 

 

—

 

 
7

 

Repurchase of common shares

 

 
(519

)

 

—

 

 

—

 

 

—

 

 
(519

)

Payment of common share dividends to shareholders

 

 
(150

)

 

—

 

 

—

 

 

—

 

 
(150

)

Transfer to discontinued operations

 

 

—

 

 

—

 

 
(33

)

 

—

 

 
(33

)

Loan activity with parent

 

 
719

 

 

—

 

 
(694

)

 
(25

)

 

—

 

Other

 

 

—

 

 
(1

)

 
(28

)

 

—

 

 
(29

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing financing activities

 

 
73

 

 
(269

)

 
(531

)

 
(25

)

 
(752

)

Net cash provided by discontinued financing activities

 

 

—

 

 

—

 

 
33

 

 

—

 

 
33

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) financing activities

 

 
73

 

 
(269

)

 
(498

)

 
(25

)

 
(719

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Effect of currency translation on cash

 

 

—

 

 

—

 

 
(1

)

 

—

 

 
(1

)

Net decrease in cash, cash equivalents, and restricted cash

 

 

—

 

 

—

 

 
(343

)

 

—

 

 
(343

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

—

 

 

—

 

 
848

 

 

—

 

 
848

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash, cash equivalents, and restricted cash at end of period

 

$

—

 

$

—

 

$
505

 

$

—

 

$
505

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

  

(1)          Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.

Condensed Consolidating Statement of Cash Flows (unaudited)
For the Quarter Ended December 29, 2017

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) continuing operating activities(1)

 

$
(51

)

$
(10

)

$
351

 

$
(7

)

$
283

 

Net cash provided by discontinued operating activities

 

 

—

 

 

—

 

 
67

 

 

—

 

 
67

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) operating activities

 

 
(51

)

 
(10

)

 
418

 

 
(7

)

 
350

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

—

 

 
(237

)

 

—

 

 
(237

)

Change in intercompany loans

 

 

—

 

 
335

 

 

—

 

 
(335

)

 

—

 

Intercompany distribution receipts(1)

 

 

—

 

 
23

 

 

—

 

 
(23

)

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing investing activities

 

 

—

 

 
358

 

 
(237

)

 
(358

)

 
(237

)

Net cash used in discontinued investing activities

 

 

—

 

 

—

 

 
(4

)

 

—

 

 
(4

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) investing activities

 

 

—

 

 
358

 

 
(241

)

 
(358

)

 
(241

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in parent company equity(2)

 

 
30

 

 

—

 

 
(30

)

 

—

 

 

—

 

Net increase in commercial paper

 

 

—

 

 
241

 

 

—

 

 

—

 

 
241

 

Proceeds from issuance of debt

 

 

—

 

 
119

 

 

—

 

 

—

 

 
119

 

Repayment of debt

 

 

—

 

 
(708

)

 

—

 

 

—

 

 
(708

)

Proceeds from exercise of share options

 

 

—

 

 

—

 

 
54

 

 

—

 

 
54

 

Repurchase of common shares

 

 
(108

)

 

—

 

 
(59

)

 

—

 

 
(167

)

Payment of common share dividends to shareholders

 

 
(143

)

 

—

 

 
2

 

 

—

 

 
(141

)

Transfer from discontinued operations

 

 

—

 

 

—

 

 
63

 

 

—

 

 
63

 

Intercompany distributions(1)

 

 

—

 

 

—

 

 
(30

)

 
30

 

 

—

 

Loan activity with parent

 

 
272

 

 

—

 

 
(607

)

 
335

 

 

—

 

Other

 

 

—

 

 

—

 

 
(32

)

 

—

 

 
(32

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing financing activities

 

 
51

 

 
(348

)

 
(639

)

 
365

 

 
(571

)

Net cash used in discontinued financing activities

 

 

—

 

 

—

 

 
(63

)

 

—

 

 
(63

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) financing activities

 

 
51

 

 
(348

)

 
(702

)

 
365

 

 
(634

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Effect of currency translation on cash

 

 

—

 

 

—

 

 
11

 

 

—

 

 
11

 

Net decrease in cash, cash equivalents, and restricted cash

 

 

—

 

 

—

 

 
(514

)

 

—

 

 
(514

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

—

 

 

—

 

 
1,218

 

 

—

 

 
1,218

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash, cash equivalents, and restricted cash at end of period

 

$

—

 

$

—

 

$
704

 

$

—

 

$
704

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

  

(1)          During fiscal 2018, other subsidiaries made distributions to TEGSA in the amount of $30 million. Cash flows are presented based upon the nature of the distributions.

(2)          Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.

 

v3.10.0.1
Basis of Presentation and Accounting Policies
 3 Months Ended
Dec. 28, 2018
Basis of Presentation and Accounting Policies  
Revenue Recognition

Revenue Recognition

        We account for revenue in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, which introduced a single, comprehensive, five-step revenue recognition model. Our revenues are generated principally from the sale of our products. Revenue is recognized as performance obligations under the terms of a contract, such as a purchase order with a customer, are satisfied; generally this occurs with the transfer of control. We transfer control and recognize revenue when we ship product to our customers, the customers accept and have legal title for the product, and we have a right to payment for such product. Revenue is measured as the amount of consideration that we expect to receive in exchange for those products and excludes taxes assessed by governmental authorities and collected from customers concurrent with the sale of products. Shipping and handling costs are treated as fulfillment costs and are included in cost of sales. Since we typically invoice our customers when we satisfy our performance obligations, we do not have material contract assets or contract liabilities. Our credit terms are customary and do not contain significant financing components that extend beyond one year of fulfillment of performance obligations. We apply the practical expedient of ASC 606 with respect to financing components and do not evaluate contracts in which payment is due within one year of satisfaction of the related performance obligation. Since our performance obligations to deliver products are part of contracts that generally have original durations of one year or less, we have elected to use the optional exemption to not disclose the aggregate amount of transaction prices associated with unsatisfied or partially satisfied performance obligations as of December 28, 2018. See Note 15 for net sales disaggregated by industry end market and geographic region which is summarized by segment and that we consider meaningful to depict the nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors.

        We generally warrant that our products will conform to our, or mutually agreed to, specifications and that our products will be free from material defects in materials and workmanship for a limited time. We limit our warranty to the replacement or repair of defective parts, or a refund or credit of the price of the defective product. We do not account for these warranties as separate performance obligations.

        Although products are generally sold at fixed prices, certain distributors and customers receive incentives or awards, such as sales rebates, return allowances, scrap allowances, and other rights, which are accounted for as variable consideration. We estimate these amounts in the same period revenue is recognized based on the expected value to be provided to customers and reduce revenue accordingly. Our estimates of variable consideration and ultimate determination of the estimated amounts to include in the transaction price are based primarily on our assessment of anticipated performance and historical and forecasted information that is reasonably available to us.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

        In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-12, an update to ASC 815, Derivatives and Hedging. The update improves and simplifies hedge accounting and related disclosures. We elected to early adopt this update, which did not have a material impact on our Condensed Consolidated Financial Statements, in the quarter ended December 28, 2018.

        In October 2016, the FASB issued ASU No. 2016-16, an update to ASC 740, Income Taxes. This guidance requires the recognition of the income tax consequences of intra-entity transfers of assets other than inventory in the period in which the transfer occurs. The update was adopted on a modified retrospective basis in the quarter ended December 28, 2018 and resulted in a $443 million cumulative-effect adjustment to beginning accumulated earnings, which represented the net reversal of all balances associated with deferred tax impacts of intra-entity transfers of assets other than inventory. This included a decrease in other assets of $798 million, an increase in deferred tax assets of $418 million, and a decrease in prepaid expenses and other current assets of $63 million on the Condensed Consolidated Balance Sheet.

        In May 2014, the FASB issued ASU No. 2014-09 which codified ASC 606, Revenue from Contracts with Customers. This guidance supersedes ASC 605, Revenue Recognition, and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. We adopted ASC 606, as amended, in the quarter ended December 28, 2018 using a modified retrospective approach. Prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for those periods. Transition impacts, which relate primarily to incentive compensation arrangements, were not material to our results of operations or financial position. Because the impact of adoption was immaterial, we have not recorded a cumulative-effect adjustment to beginning accumulated earnings.

v3.10.0.1
Restructuring and Other Charges, Net (Tables)
 3 Months Ended
Dec. 28, 2018
Restructuring and Other Charges, Net  
Net restructuring charges by segment

 

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Transportation Solutions

 

$
21

 

$
4

 

Industrial Solutions

 

 
35

 

 
22

 

Communications Solutions

 

 
19

 

 
8

 

​

​

​  

​  

​

​  

​  

​

Restructuring charges, net

 

$
75

 

$
34

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

Summary of activity in restructuring reserves

 

 

 

Balance at
September 28,
2018

 

Charges

 

Changes
in
Estimate

 

Cash
Payments

 

Non-Cash
Items

 

Currency
Translation

 

Balance at
December 28,
2018

 

 

 

(in millions)

 

Fiscal 2019 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

$

—

 

$
67

 

$

—

 

$
(4

)

$

—

 

$

—

 

$
63

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 
114

 

 
1

 

 

—

 

 
(16

)

 

—

 

 
(2

)

 
97

 

Facility and other exit costs

 

 
4

 

 
1

 

 

—

 

 
(1

)

 

—

 

 

—

 

 
4

 

Property, plant and equipment

 

 

—

 

 
1

 

 

—

 

 

—

 

 
(1

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 
118

 

 
3

 

 

—

 

 
(17

)

 
(1

)

 
(2

)

 
101

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Pre-Fiscal 2018 Actions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee severance

 

 
49

 

 
4

 

 
(1

)

 
(8

)

 

—

 

 
(1

)

 
43

 

Facility and other exit costs

 

 

—

 

 
1

 

 

—

 

 
(1

)

 

—

 

 

—

 

 

—

 

Property, plant and equipment

 

 

—

 

 
1

 

 

—

 

 

—

 

 
(1

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

 
49

 

 
6

 

 
(1

)

 
(9

)

 
(1

)

 
(1

)

 
43

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Activity

 

$
167

 

$
76

 

$
(1

)

$
(30

)

$
(2

)

$
(3

)

$
207

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

Restructuring reserves included on Condensed Consolidated Balance Sheets

 

 

 

December 28,
2018

 

September 28,
2018

 

 

 

(in millions)

 

Accrued and other current liabilities

 

$
183

 

$
141

 

Other liabilities

 

 
24

 

 
26

 

​

​

​  

​  

​

​  

​  

​

Restructuring reserves

 

$
207

 

$
167

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Discontinued Operations (Tables)
 3 Months Ended
Dec. 28, 2018
Discontinued Operations  
Schedule of components of income (loss) from discontinued operations, net of income taxes and balance sheet information for assets and liabilities held for sale

 

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Net sales

 

$
41

 

$
143

 

Cost of sales

 

 
(50

)

 
(132

)

Selling, general, and administrative expenses

 

 
(4

)

 
(7

)

Research, development, and engineering expenses

 

 
(3

)

 
(10

)

Restructuring and other charges, net

 

 
(3

)

 

—

 

​

​

​  

​  

​

​  

​  

​

Pre-tax loss from discontinued operations

 

 
(19

)

 
(6

)

Pre-tax loss on sale of discontinued operations

 

 
(96

)

 

—

 

Income tax (expense) benefit

 

 
8

 

 
(1

)

​

​

​  

​  

​

​  

​  

​

Loss from discontinued operations, net of income taxes

 

$
(107

)

$
(7

)

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

        The following table presents balance sheet information for assets and liabilities held for sale at September 28, 2018; there were no such balances at December 28, 2018:

                                                                                                                                                                                    

 

 

September 28,
2018

 

 

 

(in millions)

 

Accounts receivable, net

 

$
72

 

Inventories

 

 
130

 

Other current assets

 

 
32

 

Property, plant, and equipment, net

 

 
221

 

Other assets

 

 
17

 

​

​

​  

​  

​

Total assets held for sale

 

$
472

 

​

​

​  

​  

​

​

​

​  

​  

​

Accounts payable

 


$
63

 

Accrued and other current liabilities

 

 
26

 

Deferred revenue

 

 
60

 

Other liabilities

 

 
39

 

​

​

​  

​  

​

Total liabilities held for sale

 

$
188

 

​

​

​  

​  

​

​

​

​  

​  

​

 

v3.10.0.1
Inventories (Tables)
 3 Months Ended
Dec. 28, 2018
Inventories  
Schedule of inventories

 

 

 

December 28,
2018

 

September 28,
2018

 

 

 

(in millions)

 

Raw materials

 

$
306

 

$
276

 

Work in progress

 

 
735

 

 
656

 

Finished goods

 

 
945

 

 
925

 

​

​

​  

​  

​

​  

​  

​

Inventories

 

$
1,986

 

$
1,857

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Goodwill (Tables)
 3 Months Ended
Dec. 28, 2018
Goodwill  
Changes in the carrying amount of goodwill by segment

 

 

 

Transportation
Solutions

 

Industrial
Solutions

 

Communications
Solutions

 

Total

 

 

 

(in millions)

 

September 28, 2018(1)

 

$
1,993

 

$
3,104

 

$
587

 

$
5,684

 

Currency translation and other

 

 
(13

)

 
(19

)

 
(4

)

 
(36

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

December 28, 2018(1)

 

$
1,980

 

$
3,085

 

$
583

 

$
5,648

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

  

(1)          At December 28, 2018 and September 28, 2018, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $2,191 million, $669 million, and $489 million, respectively.

 

v3.10.0.1
Intangible Assets, Net (Tables)
 3 Months Ended
Dec. 28, 2018
Intangible Assets, Net  
Schedule of finite-lived intangible assets

 

 

 

December 28, 2018

 

September 28, 2018

 

 

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

 

 

(in millions)

 

Customer relationships

 

$
1,457

 

$
(410

)

$
1,047

 

$
1,468

 

$
(389

)

$
1,079

 

Intellectual property

 

 
1,257

 

 
(673

)

 
584

 

 
1,261

 

 
(653

)

 
608

 

Other

 

 
34

 

 
(17

)

 
17

 

 
33

 

 
(16

)

 
17

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total

 

$
2,748

 

$
(1,100

)

$
1,648

 

$
2,762

 

$
(1,058

)

$
1,704

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

Schedule of finite-lived intangible assets, future amortization expense

 

 

 

(in millions)

 

Remainder of fiscal 2019

 

$
136

 

Fiscal 2020

 

 
175

 

Fiscal 2021

 

 
172

 

Fiscal 2022

 

 
172

 

Fiscal 2023

 

 
171

 

Fiscal 2024

 

 
140

 

Thereafter

 

 
682

 

​

​

​  

​  

​

Total

 

$
1,648

 

​

​

​  

​  

​

​

​

​  

​  

​

 

v3.10.0.1
Financial Instruments (Tables)
 3 Months Ended
Dec. 28, 2018
Cash flow hedges  
Schedule of impacts of hedging program

 

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Gains (losses) recorded in other comprehensive income (loss)

 

$
19

 

$
(10

)

Gains (losses) excluded from the hedging relationship(1)

 

 
17

 

 
(19

)

 

  

(1)          Gains and losses excluded from the hedging relationship are recognized prospectively in selling, general, and administrative expenses and are offset by losses and gains generated as a result of re-measuring certain intercompany loans to the U.S. dollar.

 

Net investment hedges  
Schedule of impacts of hedging program

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Foreign currency exchange gains (losses) on intercompany loans and external borrowings(1)

 

$
76

 

$
(66

)

Losses on cross-currency swaps designated as hedge of net investment(2)

 

 
(5

)

 

—

 

 

 

(1)          Foreign currency exchange gains and losses on intercompany loans and external borrowings are recorded as currency translation, a component of accumulated other comprehensive income (loss), and are offset by changes attributable to the translation of the net investment.

(2)          Gains and losses on cross-currency swaps designated as hedge of net investment are recorded as currency translation.

 

v3.10.0.1
Retirement Plans (Tables)
 3 Months Ended
Dec. 28, 2018
Retirement Plans  
Net periodic pension benefit cost

 

 

Non-U.S. Plans

 

U.S. Plans

 

 

 

For the
Quarters Ended

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Service cost

 

$
12

 

$
12

 

$
3

 

$
3

 

Interest cost

 

 
11

 

 
10

 

 
12

 

 
11

 

Expected return on plan assets

 

 
(16

)

 
(17

)

 
(14

)

 
(15

)

Amortization of net actuarial loss

 

 
6

 

 
6

 

 
4

 

 
6

 

Amortization of prior service credit

 

 
(2

)

 
(2

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net periodic pension benefit cost

 

$
11

 

$
9

 

$
5

 

$
5

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Earnings (Loss) Per Share (Tables)
 3 Months Ended
Dec. 28, 2018
Earnings (Loss) Per Share  
Schedule of weighted-average shares outstanding, basic and diluted

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Basic

 

 
342

 

 
352

 

Dilutive impact of share-based compensation arrangements

 

 
2

 

 

—

 

​

​

​  

​  

​

​  

​  

​

Diluted

 

 
344

 

 
352

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Shareholders' Equity (Tables)
 3 Months Ended
Dec. 28, 2018
Shareholders' Equity  
Schedule of common shares repurchased

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Number of common shares repurchased

 

 
6

 

 
2

 

Repurchase value

 

$
495

 

$
214

 

 

v3.10.0.1
Share Plans (Tables)
 3 Months Ended
Dec. 28, 2018
Share Plans  
Share-based compensation expense

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Share-based compensation expense

 

$
23

 

$
28

 

 

Summary of share-based award activity

        During the quarter ended December 28, 2018, we granted the following share-based awards as part of our annual incentive plan grant:

 

 

Shares

 

Grant-Date
Fair Value

 

 

 

(in millions)

 

 

 

Share options

 

 
1.6

 

$
13.36

 

Restricted share awards

 

 
0.6

 

 
76.66

 

Performance share awards

 

 
0.2

 

 
76.66

 

 

Weighted-average assumptions

 

Expected share price volatility

 

 
20

%

Risk free interest rate

 

 
3.0

%

Expected annual dividend per share

 

$
1.76

 

Expected life of options (in years)

 

 
5.2

 

 

v3.10.0.1
Segment and Geographic Data (Tables)
 3 Months Ended
Dec. 28, 2018
Segment and Geographic Data  
Schedule of net sales by segment

Net sales by segment(1) and industry end market(2) were as follows:

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Transportation Solutions:

 

 

 

 

 

 

 

Automotive

 

$
1,469

 

$
1,517

 

Commercial transportation

 

 
297

 

 
300

 

Sensors

 

 
220

 

 
215

 

​

​

​  

​  

​

​  

​  

​

Total Transportation Solutions

 

 
1,986

 

 
2,032

 

​

​

​  

​  

​

​  

​  

​

Industrial Solutions:

 

 

 

 

 

 

 

Industrial equipment

 

 
483

 

 
471

 

Aerospace, defense, oil, and gas

 

 
285

 

 
254

 

Energy

 

 
160

 

 
157

 

​

​

​  

​  

​

​  

​  

​

Total Industrial Solutions

 

 
928

 

 
882

 

​

​

​  

​  

​

​  

​  

​

Communications Solutions:

 

 

 

 

 

 

 

Data and devices

 

 
257

 

 
238

 

Appliances

 

 
176

 

 
184

 

​

​

​  

​  

​

​  

​  

​

Total Communications Solutions

 

 
433

 

 
422

 

​

​

​  

​  

​

​  

​  

​

Total

 

$
3,347

 

$
3,336

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

 

(1)          Intersegment sales were not material and were recorded at selling prices that approximated market prices.

(2)          Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.

Schedule of net sales by geographic region and segment

 

Net sales by geographic region(1) and segment were as follows:

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Europe/Middle East/Africa ("EMEA"):

 

 

 

 

 

 

 

Transportation Solutions

 

$
756

 

$
808

 

Industrial Solutions

 

 
350

 

 
344

 

Communications Solutions

 

 
65

 

 
66

 

​

​

​  

​  

​

​  

​  

​

Total EMEA

 

 
1,171

 

 
1,218

 

​

​

​  

​  

​

​  

​  

​

Asia–Pacific:

 

 

 

 

 

 

 

Transportation Solutions

 

 
764

 

 
805

 

Industrial Solutions

 

 
155

 

 
163

 

Communications Solutions

 

 
254

 

 
252

 

​

​

​  

​  

​

​  

​  

​

Total Asia–Pacific

 

 
1,173

 

 
1,220

 

​

​

​  

​  

​

​  

​  

​

Americas:

 

 

 

 

 

 

 

Transportation Solutions

 

 
466

 

 
419

 

Industrial Solutions

 

 
423

 

 
375

 

Communications Solutions

 

 
114

 

 
104

 

​

​

​  

​  

​

​  

​  

​

Total Americas

 

 
1,003

 

 
898

 

​

​

​  

​  

​

​  

​  

​

Total

 

$
3,347

 

$
3,336

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

 

(1)          Net sales to external customers are attributed to individual countries based on the legal entity that records the sale.

 

Schedule of operating income by segment

 

 

For the
Quarters Ended

 

 

 

December 28,
2018

 

December 29,
2017

 

 

 

(in millions)

 

Transportation Solutions

 

$
332

 

$
417

 

Industrial Solutions

 

 
100

 

 
102

 

Communications Solutions

 

 
52

 

 
67

 

​

​

​  

​  

​

​  

​  

​

Total

 

$
484

 

$
586

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

 

v3.10.0.1
Tyco Electronics Group S.A. (Tables)
 3 Months Ended
Dec. 28, 2018
Tyco Electronics Group S.A.  
Condensed Consolidating Statement of Operations

 

Condensed Consolidating Statement of Operations (unaudited)
For the Quarter Ended December 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Net sales

 

$

—

 

$

—

 

$
3,347

 

$

—

 

$
3,347

 

Cost of sales

 

 

—

 

 

—

 

 
2,233

 

 

—

 

 
2,233

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Gross margin

 

 

—

 

 

—

 

 
1,114

 

 

—

 

 
1,114

 

Selling, general, and administrative expenses, net(1)

 

 
35

 

 
(107

)

 
461

 

 

—

 

 
389

 

Research, development, and engineering expenses

 

 

—

 

 

—

 

 
161

 

 

—

 

 
161

 

Acquisition and integration costs

 

 

—

 

 

—

 

 
5

 

 

—

 

 
5

 

Restructuring and other charges, net

 

 

—

 

 

—

 

 
75

 

 

—

 

 
75

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Operating income (loss)

 

 
(35

)

 
107

 

 
412

 

 

—

 

 
484

 

Interest income

 

 

—

 

 

—

 

 
5

 

 

—

 

 
5

 

Interest expense

 

 

—

 

 
(27

)

 

—

 

 

—

 

 
(27

)

Other expense, net

 

 

—

 

 

—

 

 
(1

)

 

—

 

 
(1

)

Equity in net income of subsidiaries

 

 
441

 

 
389

 

 

—

 

 
(830

)

 

—

 

Equity in net loss of subsidiaries of discontinued operations

 

 
(107

)

 
(49

)

 

—

 

 
156

 

 

—

 

Intercompany interest income (expense), net

 

 
(23

)

 
(28

)

 
51

 

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income from continuing operations before income taxes

 

 
276

 

 
392

 

 
467

 

 
(674

)

 
461

 

Income tax expense

 

 

—

 

 

—

 

 
(78

)

 

—

 

 
(78

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income from continuing operations

 

 
276

 

 
392

 

 
389

 

 
(674

)

 
383

 

Loss from discontinued operations, net of income taxes

 

 

—

 

 
(58

)

 
(49

)

 

—

 

 
(107

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net income

 

 
276

 

 
334

 

 
340

 

 
(674

)

 
276

 

Other comprehensive income

 

 
49

 

 
49

 

 
35

 

 
(84

)

 
49

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Comprehensive income

 

$
325

 

$
383

 

$
375

 

$
(758

)

$
325

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

 

(1)          TEGSA selling, general, and administrative expenses include gains of $110 million related to intercompany transactions. These gains are offset by corresponding losses recorded by other subsidiaries.

 

 

Condensed Consolidating Statement of Operations (unaudited)
For the Quarter Ended December 29, 2017

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Net sales

 

$

—

 

$

—

 

$
3,336

 

$

—

 

$
3,336

 

Cost of sales

 

 

—

 

 

—

 

 
2,172

 

 

—

 

 
2,172

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Gross margin

 

 

—

 

 

—

 

 
1,164

 

 

—

 

 
1,164

 

Selling, general, and administrative expenses, net

 

 
47

 

 
(3

)

 
333

 

 

—

 

 
377

 

Research, development, and engineering expenses

 

 

—

 

 

—

 

 
165

 

 

—

 

 
165

 

Acquisition and integration costs

 

 

—

 

 

—

 

 
2

 

 

—

 

 
2

 

Restructuring and other charges, net

 

 

—

 

 

—

 

 
34

 

 

—

 

 
34

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Operating income (loss)

 

 
(47

)

 
3

 

 
630

 

 

—

 

 
586

 

Interest income

 

 

—

 

 

—

 

 
4

 

 

—

 

 
4

 

Interest expense

 

 

—

 

 
(26

)

 

—

 

 

—

 

 
(26

)

Other income, net

 

 

—

 

 

—

 

 
2

 

 

—

 

 
2

 

Equity in net income of subsidiaries

 

 
27

 

 
22

 

 

—

 

 
(49

)

 

—

 

Equity in net loss of subsidiaries of discontinued operations

 

 
(7

)

 
(7

)

 

—

 

 
14

 

 

—

 

Intercompany interest income (expense), net

 

 
(13

)

 
28

 

 
(15

)

 

—

 

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income (loss) from continuing operations before income taxes

 

 
(40

)

 
20

 

 
621

 

 
(35

)

 
566

 

Income tax expense

 

 

—

 

 

—

 

 
(599

)

 

—

 

 
(599

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Income (loss) from continuing operations

 

 
(40

)

 
20

 

 
22

 

 
(35

)

 
(33

)

Loss from discontinued operations, net of income taxes

 

 

—

 

 

—

 

 
(7

)

 

—

 

 
(7

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net income (loss)

 

 
(40

)

 
20

 

 
15

 

 
(35

)

 
(40

)

Other comprehensive income

 

 
76

 

 
76

 

 
87

 

 
(163

)

 
76

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Comprehensive income

 

$
36

 

$
96

 

$
102

 

$
(198

)

$
36

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

Condensed Consolidating Balance Sheet

 

Condensed Consolidating Balance Sheet (unaudited)
As of December 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

$

—

 

$
505

 

$

—

 

$
505

 

Accounts receivable, net

 

 

—

 

 

—

 

 
2,380

 

 

—

 

 
2,380

 

Inventories

 

 

—

 

 

—

 

 
1,986

 

 

—

 

 
1,986

 

Intercompany receivables

 

 
51

 

 
3,096

 

 
60

 

 
(3,207

)

 

—

 

Prepaid expenses and other current assets

 

 
4

 

 
68

 

 
435

 

 

—

 

 
507

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current assets

 

 
55

 

 
3,164

 

 
5,366

 

 
(3,207

)

 
5,378

 

Property, plant, and equipment, net

 

 

—

 

 

—

 

 
3,550

 

 

—

 

 
3,550

 

Goodwill

 

 

—

 

 

—

 

 
5,648

 

 

—

 

 
5,648

 

Intangible assets, net

 

 

—

 

 

—

 

 
1,648

 

 

—

 

 
1,648

 

Deferred income taxes

 

 

—

 

 

—

 

 
2,580

 

 

—

 

 
2,580

 

Investment in subsidiaries

 

 
13,557

 

 
26,537

 

 

—

 

 
(40,094

)

 

—

 

Intercompany loans receivable

 

 
2

 

 
1,598

 

 
13,646

 

 
(15,246

)

 

—

 

Other assets

 

 

—

 

 
1

 

 
383

 

 

—

 

 
384

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Assets

 

$
13,614

 

$
31,300

 

$
32,821

 

$
(58,547

)

$
19,188

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Liabilities and Shareholders' Equity

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

—

 

$
583

 

$
2

 

$

—

 

$
585

 

Accounts payable

 

 
2

 

 

—

 

 
1,536

 

 

—

 

 
1,538

 

Accrued and other current liabilities

 

 
220

 

 
53

 

 
1,075

 

 

—

 

 
1,348

 

Intercompany payables

 

 
3,156

 

 

—

 

 
51

 

 
(3,207

)

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current liabilities

 

 
3,378

 

 
636

 

 
2,664

 

 
(3,207

)

 
3,471

 

Long-term debt

 

 

—

 

 
3,379

 

 
3

 

 

—

 

 
3,382

 

Intercompany loans payable

 

 

—

 

 
13,648

 

 
1,598

 

 
(15,246

)

 

—

 

Long-term pension and postretirement liabilities

 

 

—

 

 

—

 

 
1,101

 

 

—

 

 
1,101

 

Deferred income taxes

 

 

—

 

 

—

 

 
207

 

 

—

 

 
207

 

Income taxes

 

 

—

 

 

—

 

 
335

 

 

—

 

 
335

 

Other liabilities

 

 

—

 

 
80

 

 
376

 

 

—

 

 
456

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities

 

 
3,378

 

 
17,743

 

 
6,284

 

 
(18,453

)

 
8,952

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Shareholders' Equity

 

 
10,236

 

 
13,557

 

 
26,537

 

 
(40,094

)

 
10,236

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities and Shareholders' Equity

 

$
13,614

 

$
31,300

 

$
32,821

 

$
(58,547

)

$
19,188

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

 

Condensed Consolidating Balance Sheet (unaudited)
As of September 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

$

—

 

$
848

 

$

—

 

$
848

 

Accounts receivable, net

 

 

—

 

 

—

 

 
2,361

 

 

—

 

 
2,361

 

Inventories

 

 

—

 

 

—

 

 
1,857

 

 

—

 

 
1,857

 

Intercompany receivables

 

 
37

 

 
2,391

 

 
48

 

 
(2,476

)

 

—

 

Prepaid expenses and other current assets

 

 
5

 

 
112

 

 
544

 

 

—

 

 
661

 

Current assets held for sale

 

 

—

 

 

—

 

 
472

 

 

—

 

 
472

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current assets

 

 
42

 

 
2,503

 

 
6,130

 

 
(2,476

)

 
6,199

 

Property, plant, and equipment, net

 

 

—

 

 

—

 

 
3,497

 

 

—

 

 
3,497

 

Goodwill

 

 

—

 

 

—

 

 
5,684

 

 

—

 

 
5,684

 

Intangible assets, net

 

 

—

 

 

—

 

 
1,704

 

 

—

 

 
1,704

 

Deferred income taxes

 

 

—

 

 

—

 

 
2,144

 

 

—

 

 
2,144

 

Investment in subsidiaries

 

 
13,626

 

 
26,613

 

 

—

 

 
(40,239

)

 

—

 

Intercompany loans receivable

 

 
2

 

 
6,535

 

 
17,887

 

 
(24,424

)

 

—

 

Other assets

 

 

—

 

 

—

 

 
1,158

 

 

—

 

 
1,158

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Assets

 

$
13,670

 

$
35,651

 

$
38,204

 

$
(67,139

)

$
20,386

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Liabilities and Shareholders' Equity

 

 


 

 

 


 

 

 


 

 

 


 

 

 


 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term debt

 

$

—

 

$
961

 

$
2

 

$

—

 

$
963

 

Accounts payable

 

 
2

 

 

—

 

 
1,546

 

 

—

 

 
1,548

 

Accrued and other current liabilities

 

 
400

 

 
36

 

 
1,275

 

 

—

 

 
1,711

 

Intercompany payables

 

 
2,437

 

 

—

 

 
39

 

 
(2,476

)

 

—

 

Current liabilities held for sale

 

 

—

 

 

—

 

 
188

 

 

—

 

 
188

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total current liabilities

 

 
2,839

 

 
997

 

 
3,050

 

 
(2,476

)

 
4,410

 

Long-term debt

 

 

—

 

 
3,033

 

 
4

 

 

—

 

 
3,037

 

Intercompany loans payable

 

 

—

 

 
17,888

 

 
6,536

 

 
(24,424

)

 

—

 

Long-term pension and postretirement liabilities

 

 

—

 

 

—

 

 
1,102

 

 

—

 

 
1,102

 

Deferred income taxes

 

 

—

 

 

—

 

 
207

 

 

—

 

 
207

 

Income taxes

 

 

—

 

 

—

 

 
312

 

 

—

 

 
312

 

Other liabilities

 

 

—

 

 
107

 

 
380

 

 

—

 

 
487

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities

 

 
2,839

 

 
22,025

 

 
11,591

 

 
(26,900

)

 
9,555

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Shareholders' Equity

 

 
10,831

 

 
13,626

 

 
26,613

 

 
(40,239

)

 
10,831

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Total Liabilities and Shareholders' Equity

 

$
13,670

 

$
35,651

 

$
38,204

 

$
(67,139

)

$
20,386

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

Condensed Consolidating Statement of Cash Flows

 

Condensed Consolidating Statement of Cash Flows (unaudited)
For the Quarter Ended December 28, 2018

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) continuing operating activities

 

$
(73

)

$
(9

)

$
410

 

$

—

 

$
328

 

Net cash used in discontinued operating activities

 

 

—

 

 

—

 

 
(31

)

 

—

 

 
(31

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) operating activities

 

 
(73

)

 
(9

)

 
379

 

 

—

 

 
297

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

—

 

 
(210

)

 

—

 

 
(210

)

Proceeds from divestiture of discontinued operation, net of cash retained by sold operation

 

 

—

 

 
303

 

 
(15

)

 

—

 

 
288

 

Change in intercompany loans

 

 

—

 

 
(25

)

 

—

 

 
25

 

 

—

 

Other

 

 

—

 

 

—

 

 
4

 

 

—

 

 
4

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing investing activities

 

 

—

 

 
278

 

 
(221

)

 
25

 

 
82

 

Net cash used in discontinued investing activities

 

 

—

 

 

—

 

 
(2

)

 

—

 

 
(2

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) investing activities

 

 

—

 

 
278

 

 
(223

)

 
25

 

 
80

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in parent company equity(1)

 

 
23

 

 
(240

)

 
217

 

 

—

 

 

—

 

Net increase in commercial paper

 

 

—

 

 
63

 

 

—

 

 

—

 

 
63

 

Proceeds from issuance of debt

 

 

—

 

 
350

 

 

—

 

 

—

 

 
350

 

Repayment of debt

 

 

—

 

 
(441

)

 

—

 

 

—

 

 
(441

)

Proceeds from exercise of share options

 

 

—

 

 

—

 

 
7

 

 

—

 

 
7

 

Repurchase of common shares

 

 
(519

)

 

—

 

 

—

 

 

—

 

 
(519

)

Payment of common share dividends to shareholders

 

 
(150

)

 

—

 

 

—

 

 

—

 

 
(150

)

Transfer to discontinued operations

 

 

—

 

 

—

 

 
(33

)

 

—

 

 
(33

)

Loan activity with parent

 

 
719

 

 

—

 

 
(694

)

 
(25

)

 

—

 

Other

 

 

—

 

 
(1

)

 
(28

)

 

—

 

 
(29

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing financing activities

 

 
73

 

 
(269

)

 
(531

)

 
(25

)

 
(752

)

Net cash provided by discontinued financing activities

 

 

—

 

 

—

 

 
33

 

 

—

 

 
33

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) financing activities

 

 
73

 

 
(269

)

 
(498

)

 
(25

)

 
(719

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Effect of currency translation on cash

 

 

—

 

 

—

 

 
(1

)

 

—

 

 
(1

)

Net decrease in cash, cash equivalents, and restricted cash

 

 

—

 

 

—

 

 
(343

)

 

—

 

 
(343

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

—

 

 

—

 

 
848

 

 

—

 

 
848

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash, cash equivalents, and restricted cash at end of period

 

$

—

 

$

—

 

$
505

 

$

—

 

$
505

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

 

(1)          Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.

 

Condensed Consolidating Statement of Cash Flows (unaudited)
For the Quarter Ended December 29, 2017

                                                                                                                                                                                    

 

 

TE
Connectivity
Ltd.

 

TEGSA

 

Other
Subsidiaries

 

Consolidating
Adjustments

 

Total

 

 

 

(in millions)

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) continuing operating activities(1)

 

$
(51

)

$
(10

)

$
351

 

$
(7

)

$
283

 

Net cash provided by discontinued operating activities

 

 

—

 

 

—

 

 
67

 

 

—

 

 
67

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) operating activities

 

 
(51

)

 
(10

)

 
418

 

 
(7

)

 
350

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

—

 

 
(237

)

 

—

 

 
(237

)

Change in intercompany loans

 

 

—

 

 
335

 

 

—

 

 
(335

)

 

—

 

Intercompany distribution receipts(1)

 

 

—

 

 
23

 

 

—

 

 
(23

)

 

—

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing investing activities

 

 

—

 

 
358

 

 
(237

)

 
(358

)

 
(237

)

Net cash used in discontinued investing activities

 

 

—

 

 

—

 

 
(4

)

 

—

 

 
(4

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) investing activities

 

 

—

 

 
358

 

 
(241

)

 
(358

)

 
(241

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in parent company equity(2)

 

 
30

 

 

—

 

 
(30

)

 

—

 

 

—

 

Net increase in commercial paper

 

 

—

 

 
241

 

 

—

 

 

—

 

 
241

 

Proceeds from issuance of debt

 

 

—

 

 
119

 

 

—

 

 

—

 

 
119

 

Repayment of debt

 

 

—

 

 
(708

)

 

—

 

 

—

 

 
(708

)

Proceeds from exercise of share options

 

 

—

 

 

—

 

 
54

 

 

—

 

 
54

 

Repurchase of common shares

 

 
(108

)

 

—

 

 
(59

)

 

—

 

 
(167

)

Payment of common share dividends to shareholders

 

 
(143

)

 

—

 

 
2

 

 

—

 

 
(141

)

Transfer from discontinued operations

 

 

—

 

 

—

 

 
63

 

 

—

 

 
63

 

Intercompany distributions(1)

 

 

—

 

 

—

 

 
(30

)

 
30

 

 

—

 

Loan activity with parent

 

 
272

 

 

—

 

 
(607

)

 
335

 

 

—

 

Other

 

 

—

 

 

—

 

 
(32

)

 

—

 

 
(32

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) continuing financing activities

 

 
51

 

 
(348

)

 
(639

)

 
365

 

 
(571

)

Net cash used in discontinued financing activities

 

 

—

 

 

—

 

 
(63

)

 

—

 

 
(63

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Net cash provided by (used in) financing activities

 

 
51

 

 
(348

)

 
(702

)

 
365

 

 
(634

)

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Effect of currency translation on cash

 

 

—

 

 

—

 

 
11

 

 

—

 

 
11

 

Net decrease in cash, cash equivalents, and restricted cash

 

 

—

 

 

—

 

 
(514

)

 

—

 

 
(514

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

—

 

 

—

 

 
1,218

 

 

—

 

 
1,218

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

Cash, cash equivalents, and restricted cash at end of period

 

$

—

 

$

—

 

$
704

 

$

—

 

$
704

 

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

​  

​  

​

 

 

(1)          During fiscal 2018, other subsidiaries made distributions to TEGSA in the amount of $30 million. Cash flows are presented based upon the nature of the distributions.

(2)          Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.

v3.10.0.1
Basis of Presentation and Accounting Policies (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Sep. 28, 2018
Revenue Recognition    
Practical expedient with respect to financing components true  
Optional exemption not to disclose aggregate amount of transaction prices associated with unsatisfied or partially satisfied performance obligations true  
Recently Adopted Accounting Pronouncements    
Other assets $ 384 $ 1,158
Deferred tax assets 2,580 2,144
Prepaid expenses and other current assets 507 $ 661
ASU 2016-16    
Recently Adopted Accounting Pronouncements    
Cumulative-effect adjustment 443  
Other assets (798)  
Deferred tax assets 418  
Prepaid expenses and other current assets $ (63)  
v3.10.0.1
Restructuring and Other Charges, Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Restructuring and other charges, net    
Restructuring charges, net $ 75 $ 34
Transportation Solutions    
Restructuring and other charges, net    
Restructuring charges, net 21 4
Industrial Solutions    
Restructuring and other charges, net    
Restructuring charges, net 35 22
Communications Solutions    
Restructuring and other charges, net    
Restructuring charges, net $ 19 $ 8
v3.10.0.1
Restructuring and Other Charges, Net - Restructuring Reserve Activity (Details)
$ in Millions
 3 Months Ended
Dec. 28, 2018
USD ($)
Restructuring reserve  
Restructuring reserve at the beginning of the period $ 167
Charges 76
Changes in Estimate (1)
Cash Payments (30)
Non-Cash Items (2)
Currency Translation (3)
Restructuring reserve at the end of the period 207
Fiscal 2019 Actions | Employee severance  
Restructuring reserve  
Charges 67
Cash Payments (4)
Restructuring reserve at the end of the period 63
Fiscal 2018 Actions  
Restructuring reserve  
Restructuring reserve at the beginning of the period 118
Charges 3
Cash Payments (17)
Non-Cash Items (1)
Currency Translation (2)
Restructuring reserve at the end of the period 101
Fiscal 2018 Actions | Employee severance  
Restructuring reserve  
Restructuring reserve at the beginning of the period 114
Charges 1
Cash Payments (16)
Currency Translation (2)
Restructuring reserve at the end of the period 97
Fiscal 2018 Actions | Facility and other exit costs  
Restructuring reserve  
Restructuring reserve at the beginning of the period 4
Charges 1
Cash Payments (1)
Restructuring reserve at the end of the period 4
Fiscal 2018 Actions | Property, plant, and equipment  
Restructuring reserve  
Charges 1
Non-Cash Items (1)
Pre-Fiscal 2018 Actions  
Restructuring reserve  
Restructuring reserve at the beginning of the period 49
Charges 6
Changes in Estimate (1)
Cash Payments (9)
Non-Cash Items (1)
Currency Translation (1)
Restructuring reserve at the end of the period 43
Pre-Fiscal 2018 Actions | Employee severance  
Restructuring reserve  
Restructuring reserve at the beginning of the period 49
Charges 4
Changes in Estimate (1)
Cash Payments (8)
Currency Translation (1)
Restructuring reserve at the end of the period 43
Pre-Fiscal 2018 Actions | Facility and other exit costs  
Restructuring reserve  
Charges 1
Cash Payments (1)
Pre-Fiscal 2018 Actions | Property, plant, and equipment  
Restructuring reserve  
Charges 1
Non-Cash Items $ (1)
v3.10.0.1
Restructuring and Other Charges, Net - Actions (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Restructuring Charges    
Charges Incurred $ 75 $ 34
Fiscal 2019 Actions    
Restructuring Charges    
Charges Incurred 67  
Additional Expected Charges 10  
Fiscal 2018 Actions    
Restructuring Charges    
Charges Incurred 3 22
Additional Expected Charges 10  
Pre-Fiscal 2018 Actions    
Restructuring Charges    
Charges Incurred $ 5 $ 12
v3.10.0.1
Restructuring and Other Charges, Net - Restructuring Reserve Balances (Details) - USD ($)
$ in Millions
Dec. 28, 2018
Sep. 28, 2018
Restructuring reserves included on the Condensed Consolidated Balance Sheets    
Accrued and other current liabilities $ 183 $ 141
Other liabilities 24 26
Restructuring reserves $ 207 $ 167
v3.10.0.1
Discontinued Operations - Subsea (Details)
$ in Millions
 3 Months Ended
Dec. 28, 2018
USD ($)
Discontinued Operations  
Net cash proceeds $ 288
Pre tax loss on sale (96)
Discontinued Operations, Disposed of by Sale | Subsea Communications  
Discontinued Operations  
Net cash proceeds 288
Pre tax loss on sale (96)
Cumulative translation adjustment losses 67
Existing guarantees value $ 1,700
Maximum remaining term for majority of existing guarantees 2 years
Fair value of existing guarantees $ 12
New performance guarantee issued 70
Discontinued Operations, Disposed of by Sale | Subsea Communications | Maximum  
Discontinued Operations  
New performance guarantees issuable amount $ 300
Period for issuance of new performance guarantees 3 years
v3.10.0.1
Discontinued Operations - Summary Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Sep. 28, 2018
Income (loss) from discontinued operations, net of income taxes      
Net sales $ 41 $ 143  
Cost of sales (50) (132)  
Selling, general, and administrative expenses (4) (7)  
Research, development, and engineering expenses (3) (10)  
Restructuring and other charges, net (3)    
Pre-tax loss from discontinued operations (19) (6)  
Pre-tax loss on sale of discontinued operations (96)    
Income tax (expense) benefit 8 (1)  
Loss from discontinued operations, net of income taxes $ (107) $ (7)  
Balance sheet information for assets and liabilities held for sale      
Accounts receivable, net     $ 72
Inventories     130
Other current assets     32
Property, plant, and equipment, net     221
Other assets     17
Total assets held for sale     472
Accounts payable     63
Accrued and other current liabilities     26
Deferred revenue     60
Other liabilities     39
Total liabilities held for sale     $ 188
v3.10.0.1
Inventories (Details) - USD ($)
$ in Millions
Dec. 28, 2018
Sep. 28, 2018
Inventories    
Raw materials $ 306 $ 276
Work in progress 735 656
Finished goods 945 925
Inventories $ 1,986 $ 1,857
v3.10.0.1
Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Sep. 28, 2018
Goodwill:    
Goodwill, beginning balance $ 5,684  
Currency translation and other (36)  
Goodwill, ending balance 5,648  
Transportation Solutions    
Goodwill:    
Goodwill, beginning balance 1,993  
Currency translation and other (13)  
Goodwill, ending balance 1,980  
Accumulated impairment losses 2,191 $ 2,191
Industrial Solutions    
Goodwill:    
Goodwill, beginning balance 3,104  
Currency translation and other (19)  
Goodwill, ending balance 3,085  
Accumulated impairment losses 669 669
Communications Solutions    
Goodwill:    
Goodwill, beginning balance 587  
Currency translation and other (4)  
Goodwill, ending balance 583  
Accumulated impairment losses $ 489 $ 489
v3.10.0.1
Intangible Assets, Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Sep. 28, 2018
Finite-Lived Intangible Assets      
Gross Carrying Amount $ 2,748   $ 2,762
Accumulated Amortization (1,100)   (1,058)
Net Carrying Amount 1,648   1,704
Finite-lived intangible assets, amortization expense 45 $ 45  
Aggregate amortization expense on intangible assets      
Remainder of fiscal 2019 136    
Fiscal 2020 175    
Fiscal 2021 172    
Fiscal 2022 172    
Fiscal 2023 171    
Fiscal 2024 140    
Thereafter 682    
Customer relationships      
Finite-Lived Intangible Assets      
Gross Carrying Amount 1,457   1,468
Accumulated Amortization (410)   (389)
Net Carrying Amount 1,047   1,079
Intellectual property      
Finite-Lived Intangible Assets      
Gross Carrying Amount 1,257   1,261
Accumulated Amortization (673)   (653)
Net Carrying Amount 584   608
Other      
Finite-Lived Intangible Assets      
Gross Carrying Amount 34   33
Accumulated Amortization (17)   (16)
Net Carrying Amount $ 17   $ 17
v3.10.0.1
Debt (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Dec. 31, 2018
Nov. 30, 2018
Dec. 28, 2018
Dec. 29, 2017
Sep. 28, 2018
Debt          
Ownership percentage in TEGSA     100.00%    
Repayments of debt     $ 441 $ 708  
Fair value of debt     $ 4,091   $ 4,149
Senior floating rate notes due June 2020          
Debt          
Debt instrument principal amount   $ 350      
Senior floating rate notes due June 2020 | LIBOR          
Debt          
Debt instrument description of variable rate basis   three-month London Interbank Offered Rate      
Debt instrument basis spread on variable rate (as a percent)   0.45%      
2.375% senior notes due 2018          
Debt          
Repayments of debt $ 325        
Debt instrument, interest rate (as a percent) 2.375%        
Five-year credit facility          
Debt          
Revolving credit facility term     5 years    
Maximum borrowing capacity     $ 1,500    
Incremental borrowing capacity     500    
Borrowings under the Credit Facility     0   0
Commercial paper          
Debt          
Total principal debt     $ 333   $ 270
Weighted-average interest rate (as a percent)     2.94%   2.35%
v3.10.0.1
Commitments and Contingencies (Details)
$ in Millions
Dec. 28, 2018
USD ($)
Loss Contingencies  
Accrual environmental loss contingency, estimate of probable loss $ 17
Minimum  
Loss Contingencies  
Accrual environmental loss contingency, estimate of probable loss 15
Maximum  
Loss Contingencies  
Accrual environmental loss contingency, estimate of probable loss 44
Outstanding Letters of Credit, Letters of Guarantee and Surety Bonds  
Guarantees and Product Warranties  
Guarantor obligations, maximum exposure $ 286
v3.10.0.1
Financial Instruments (Details)
€ in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 28, 2018
USD ($)
Dec. 29, 2017
USD ($)
Sep. 28, 2018
USD ($)
Sep. 25, 2015
EUR (€)
Cash flow hedges | Cross-currency swap contracts        
Financial Instruments        
Notional amount | €       € 1,000
Interest paid in foreign currency, fixed interest rate       3.50%
Interest received in U.S. dollars, weighted-average fixed interest rate       5.33%
Fair Value of Liability Positions $ 64   $ 100  
Gains (losses) recorded in other comprehensive income (loss) 19 $ (10)    
Gains (losses) excluded from the hedging relationship 17 (19)    
Net investment hedges | Intercompany loans and external borrowings        
Financial Instruments        
Notional amount of non derivative instruments 3,189   $ 4,064  
Foreign currency exchange gains (losses) 76 $ (66)    
Net investment hedges | Cross-currency swap contracts        
Financial Instruments        
Notional amount $ 952      
Interest paid in foreign currency, fixed interest rate 0.00%      
Interest received in U.S. dollars, weighted-average fixed interest rate 3.06%      
Foreign currency exchange gains (losses) $ (5)      
v3.10.0.1
Retirement Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Non-U.S. Plans    
Defined Benefit Plan, Net Periodic Pension Benefit Cost    
Service cost $ 12 $ 12
Interest cost 11 10
Expected return on plan assets (16) (17)
Amortization of net actuarial loss 6 6
Amortization of prior service credit (2) (2)
Net periodic pension benefit cost 11 9
U.S. Plans    
Defined Benefit Plan, Net Periodic Pension Benefit Cost    
Service cost 3 3
Interest cost 12 11
Expected return on plan assets (14) (15)
Amortization of net actuarial loss 4 6
Net periodic pension benefit cost $ 5 $ 5
v3.10.0.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Sep. 28, 2018
Income Taxes      
Income tax expense $ 78 $ 599  
Income tax expense related to tax impacts of Tax Cuts and Jobs Act   567  
Net income tax benefit related to certain legal entity restructurings   $ 61  
U.S. federal corporate income tax rate   21.00%  
Income tax benefit related to the reduction in the valuation allowance recorded against certain U.S. federal tax credit carryforwards   $ 34  
Accrued interest and penalties related to uncertain tax positions 63   $ 60
Unrecognized income tax benefits, approximate amount that could be resolved in next twelve months $ 125    
Liabilities sharing percent, entity 31.00%    
Liabilities sharing percent, Tyco International 27.00%    
Liabilities sharing percent, Covidien 42.00%    
v3.10.0.1
Earnings (Loss) Per Share (Details) - shares
shares in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Earnings (Loss) Per Share    
Basic (in shares) 342 352
Dilutive impact of share-based compensation arrangements (in shares) 2  
Diluted (in shares) 344 352
Share options    
Antidilutive shares excluded from computation of earnings per share    
Antidilutive share options 1 1
Nonvested share awards and options, antidilutive due to loss in period    
Antidilutive shares excluded from computation of earnings per share    
Antidilutive share options   3
v3.10.0.1
Shareholders' Equity (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Sep. 29, 2017
Shareholders' Equity      
Cash dividend paid (in dollars per share) $ 0.44 $ 0.40  
Unpaid portion of the dividend payment recorded in accrued and other current liabilities $ 149   $ 303
Share repurchase program, increase in authorized amount $ 1,500    
Number of common shares repurchased 6 2  
Repurchase value $ 495 $ 214  
Amount available for repurchase, at end of period $ 2,000    
v3.10.0.1
Share Plans (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Share Based Compensation Arrangements:    
Share-based compensation expense $ 23 $ 28
Shares available for issuance 17.0  
Share Based Compensation Expenses Not Recognized    
Share-based compensation, share-based awards, total compensation expense not yet recognized $ 179  
Share-based compensation, share-based awards, total compensation expense not yet recognized, expected period for recognition 2 years 3 months 18 days  
Share options    
Share Based Compensation Arrangements:    
Share options granted 1.6  
Options granted, grant-date fair value (in dollars per share) $ 13.36  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology    
Expected share price volatility (as a percent) 20.00%  
Risk free interest rate (as a percent) 3.00%  
Expected annual dividend per share $ 1.76  
Expected life of options (in years) 5 years 2 months 12 days  
Restricted share awards    
Share Based Compensation Arrangements:    
Shares granted 0.6  
Shares granted, grant-date fair value (in dollars per share) $ 76.66  
Performance share awards    
Share Based Compensation Arrangements:    
Shares granted 0.2  
Shares granted, grant-date fair value (in dollars per share) $ 76.66  
v3.10.0.1
Segment and Geographic Data - Net Sales by Segment and Industry End Market (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Segment and Geographic Data    
Net Sales $ 3,347 $ 3,336
Transportation Solutions    
Segment and Geographic Data    
Net Sales 1,986 2,032
Transportation Solutions | Automotive    
Segment and Geographic Data    
Net Sales 1,469 1,517
Transportation Solutions | Commercial transportation    
Segment and Geographic Data    
Net Sales 297 300
Transportation Solutions | Sensors    
Segment and Geographic Data    
Net Sales 220 215
Industrial Solutions    
Segment and Geographic Data    
Net Sales 928 882
Industrial Solutions | Industrial equipment    
Segment and Geographic Data    
Net Sales 483 471
Industrial Solutions | Aerospace, defense, oil, and gas    
Segment and Geographic Data    
Net Sales 285 254
Industrial Solutions | Energy    
Segment and Geographic Data    
Net Sales 160 157
Communications Solutions    
Segment and Geographic Data    
Net Sales 433 422
Communications Solutions | Data and devices    
Segment and Geographic Data    
Net Sales 257 238
Communications Solutions | Appliances    
Segment and Geographic Data    
Net Sales $ 176 $ 184
v3.10.0.1
Segment and Geographic Data - Net Sales by Geographic Region and Segment (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Segment and Geographic Data    
Net Sales $ 3,347 $ 3,336
Transportation Solutions    
Segment and Geographic Data    
Net Sales 1,986 2,032
Industrial Solutions    
Segment and Geographic Data    
Net Sales 928 882
Communications Solutions    
Segment and Geographic Data    
Net Sales 433 422
EMEA    
Segment and Geographic Data    
Net Sales 1,171 1,218
EMEA | Transportation Solutions    
Segment and Geographic Data    
Net Sales 756 808
EMEA | Industrial Solutions    
Segment and Geographic Data    
Net Sales 350 344
EMEA | Communications Solutions    
Segment and Geographic Data    
Net Sales 65 66
Asia-Pacific    
Segment and Geographic Data    
Net Sales 1,173 1,220
Asia-Pacific | Transportation Solutions    
Segment and Geographic Data    
Net Sales 764 805
Asia-Pacific | Industrial Solutions    
Segment and Geographic Data    
Net Sales 155 163
Asia-Pacific | Communications Solutions    
Segment and Geographic Data    
Net Sales 254 252
Americas    
Segment and Geographic Data    
Net Sales 1,003 898
Americas | Transportation Solutions    
Segment and Geographic Data    
Net Sales 466 419
Americas | Industrial Solutions    
Segment and Geographic Data    
Net Sales 423 375
Americas | Communications Solutions    
Segment and Geographic Data    
Net Sales $ 114 $ 104
v3.10.0.1
Segment and Geographic Data - Operating Income by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Segment and Geographic Data    
Operating income $ 484 $ 586
Transportation Solutions    
Segment and Geographic Data    
Operating income 332 417
Industrial Solutions    
Segment and Geographic Data    
Operating income 100 102
Communications Solutions    
Segment and Geographic Data    
Operating income $ 52 $ 67
v3.10.0.1
Tyco Electronics Group S.A. - Operations (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Tyco Electronics Group S.A.    
Ownership percentage in TEGSA 100.00%  
Statement of Operations Detail:    
Net sales $ 3,347 $ 3,336
Cost of sales 2,233 2,172
Gross margin 1,114 1,164
Selling, general, and administrative expenses, net 389 377
Research, development, and engineering expenses 161 165
Acquisition and integration costs 5 2
Restructuring and other charges, net 75 34
Operating income 484 586
Interest income 5 4
Interest expense (27) (26)
Other income (expense), net (1) 2
Income from continuing operations before income taxes 461 566
Income tax expense (78) (599)
Income (loss) from continuing operations 383 (33)
Loss from discontinued operations, net of income taxes (107) (7)
Net income (loss) 276 (40)
Other comprehensive income 49 76
Comprehensive income 325 36
Consolidating Adjustments    
Statement of Operations Detail:    
Equity in net income of subsidiaries (830) (49)
Equity in net loss of subsidiaries of discontinued operations 156 14
Income from continuing operations before income taxes (674) (35)
Income (loss) from continuing operations (674) (35)
Net income (loss) (674) (35)
Other comprehensive income (84) (163)
Comprehensive income (758) (198)
TE Connectivity Ltd. | Consolidating Reportable entities    
Statement of Operations Detail:    
Selling, general, and administrative expenses, net 35 47
Operating income (35) (47)
Equity in net income of subsidiaries 441 27
Equity in net loss of subsidiaries of discontinued operations (107) (7)
Intercompany interest income (expense), net (23) (13)
Income from continuing operations before income taxes 276 (40)
Income (loss) from continuing operations 276 (40)
Net income (loss) 276 (40)
Other comprehensive income 49 76
Comprehensive income 325 36
TEGSA | Consolidating Reportable entities    
Statement of Operations Detail:    
Selling, general, and administrative expenses, net (107) (3)
Operating income 107 3
Interest expense (27) (26)
Equity in net income of subsidiaries 389 22
Equity in net loss of subsidiaries of discontinued operations (49) (7)
Intercompany interest income (expense), net (28) 28
Income from continuing operations before income taxes 392 20
Income (loss) from continuing operations 392 20
Loss from discontinued operations, net of income taxes (58)  
Net income (loss) 334 20
Other comprehensive income 49 76
Comprehensive income 383 96
Intercompany transaction gains 110  
Other Subsidiaries | Consolidating Reportable entities    
Statement of Operations Detail:    
Net sales 3,347 3,336
Cost of sales 2,233 2,172
Gross margin 1,114 1,164
Selling, general, and administrative expenses, net 461 333
Research, development, and engineering expenses 161 165
Acquisition and integration costs 5 2
Restructuring and other charges, net 75 34
Operating income 412 630
Interest income 5 4
Other income (expense), net (1) 2
Intercompany interest income (expense), net 51 (15)
Income from continuing operations before income taxes 467 621
Income tax expense (78) (599)
Income (loss) from continuing operations 389 22
Loss from discontinued operations, net of income taxes (49) (7)
Net income (loss) 340 15
Other comprehensive income 35 87
Comprehensive income $ 375 $ 102
v3.10.0.1
Tyco Electronics Group S.A. - Balance Sheet (Details) - USD ($)
$ in Millions
Dec. 28, 2018
Sep. 28, 2018
Dec. 29, 2017
Sep. 29, 2017
Current assets:        
Cash and cash equivalents $ 505 $ 848 $ 704 $ 1,218
Accounts receivable, net 2,380 2,361    
Inventories 1,986 1,857    
Prepaid expenses and other current assets 507 661    
Current assets held for sale   472    
Total current assets 5,378 6,199    
Property, plant, and equipment, net 3,550 3,497    
Goodwill 5,648 5,684    
Intangible assets, net 1,648 1,704    
Deferred income taxes 2,580 2,144    
Other assets 384 1,158    
Total Assets 19,188 20,386    
Current liabilities:        
Short-term debt 585 963    
Accounts payable 1,538 1,548    
Accrued and other current liabilities 1,348 1,711    
Current liabilities held for sale   188    
Total current liabilities 3,471 4,410    
Long-term debt 3,382 3,037    
Long-term pension and postretirement liabilities 1,101 1,102    
Deferred income taxes 207 207    
Income taxes 335 312    
Other liabilities 456 487    
Total Liabilities 8,952 9,555    
Total Shareholders' Equity 10,236 10,831 9,631 9,751
Total Liabilities and Shareholders' Equity 19,188 20,386    
Consolidating Adjustments        
Current assets:        
Intercompany receivables (3,207) (2,476)    
Total current assets (3,207) (2,476)    
Investment in subsidiaries (40,094) (40,239)    
Intercompany loans receivable (15,246) (24,424)    
Total Assets (58,547) (67,139)    
Current liabilities:        
Intercompany payables (3,207) (2,476)    
Total current liabilities (3,207) (2,476)    
Intercompany loans payable (15,246) (24,424)    
Total Liabilities (18,453) (26,900)    
Total Shareholders' Equity (40,094) (40,239)    
Total Liabilities and Shareholders' Equity (58,547) (67,139)    
TE Connectivity Ltd. | Consolidating Reportable entities        
Current assets:        
Intercompany receivables 51 37    
Prepaid expenses and other current assets 4 5    
Total current assets 55 42    
Investment in subsidiaries 13,557 13,626    
Intercompany loans receivable 2 2    
Total Assets 13,614 13,670    
Current liabilities:        
Accounts payable 2 2    
Accrued and other current liabilities 220 400    
Intercompany payables 3,156 2,437    
Total current liabilities 3,378 2,839    
Total Liabilities 3,378 2,839    
Total Shareholders' Equity 10,236 10,831    
Total Liabilities and Shareholders' Equity 13,614 13,670    
TEGSA | Consolidating Reportable entities        
Current assets:        
Intercompany receivables 3,096 2,391    
Prepaid expenses and other current assets 68 112    
Total current assets 3,164 2,503    
Investment in subsidiaries 26,537 26,613    
Intercompany loans receivable 1,598 6,535    
Other assets 1      
Total Assets 31,300 35,651    
Current liabilities:        
Short-term debt 583 961    
Accrued and other current liabilities 53 36    
Total current liabilities 636 997    
Long-term debt 3,379 3,033    
Intercompany loans payable 13,648 17,888    
Other liabilities 80 107    
Total Liabilities 17,743 22,025    
Total Shareholders' Equity 13,557 13,626    
Total Liabilities and Shareholders' Equity 31,300 35,651    
Other Subsidiaries | Consolidating Reportable entities        
Current assets:        
Cash and cash equivalents 505 848 $ 704 $ 1,218
Accounts receivable, net 2,380 2,361    
Inventories 1,986 1,857    
Intercompany receivables 60 48    
Prepaid expenses and other current assets 435 544    
Current assets held for sale   472    
Total current assets 5,366 6,130    
Property, plant, and equipment, net 3,550 3,497    
Goodwill 5,648 5,684    
Intangible assets, net 1,648 1,704    
Deferred income taxes 2,580 2,144    
Intercompany loans receivable 13,646 17,887    
Other assets 383 1,158    
Total Assets 32,821 38,204    
Current liabilities:        
Short-term debt 2 2    
Accounts payable 1,536 1,546    
Accrued and other current liabilities 1,075 1,275    
Intercompany payables 51 39    
Current liabilities held for sale   188    
Total current liabilities 2,664 3,050    
Long-term debt 3 4    
Intercompany loans payable 1,598 6,536    
Long-term pension and postretirement liabilities 1,101 1,102    
Deferred income taxes 207 207    
Income taxes 335 312    
Other liabilities 376 380    
Total Liabilities 6,284 11,591    
Total Shareholders' Equity 26,537 26,613    
Total Liabilities and Shareholders' Equity $ 32,821 $ 38,204    
v3.10.0.1
Tyco Electronics Group S.A. - Cash Flows (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2018
Dec. 29, 2017
Cash Flows From Operating Activities:    
Net cash provided by (used in) continuing operating activities $ 328 $ 283
Net cash provided by (used in) discontinued operating activities (31) 67
Net cash provided by operating activities 297 350
Cash Flows From Investing Activities:    
Capital expenditures (210) (237)
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation 288  
Other 4  
Net cash provided by (used in) continued investing activities 82 (237)
Net cash used in discontinued investing activities (2) (4)
Net cash provided by (used in) investing activities 80 (241)
Cash Flows From Financing Activities:    
Net increase in commercial paper 63 241
Proceeds from issuance of debt 350 119
Repayment of debt (441) (708)
Proceeds from exercise of share options 7 54
Repurchase of common shares (519) (167)
Payment of common share dividends to shareholders (150) (141)
Transfers (to) from discontinued operations (33) 63
Other (29) (32)
Net cash used in continuing financing activities (752) (571)
Net cash provided by (used in) discontinued financing activities 33 (63)
Net cash used in financing activities (719) (634)
Effect of currency translation on cash (1) 11
Net decrease in cash, cash equivalents, and restricted cash (343) (514)
Cash, cash equivalents, and restricted cash at beginning of period 848 1,218
Cash, cash equivalents, and restricted cash at end of period 505 704
Consolidating Adjustments    
Cash Flows From Operating Activities:    
Net cash provided by (used in) continuing operating activities   (7)
Net cash provided by operating activities   (7)
Cash Flows From Investing Activities:    
Change in intercompany loans 25 (335)
Intercompany distribution receipts   (23)
Net cash provided by (used in) continued investing activities 25 (358)
Net cash provided by (used in) investing activities 25 (358)
Cash Flows From Financing Activities:    
Intercompany distributions   30
Loan activity with parent (25) 335
Net cash used in continuing financing activities (25) 365
Net cash used in financing activities (25) 365
TE Connectivity Ltd. | Consolidating Reportable entities    
Cash Flows From Operating Activities:    
Net cash provided by (used in) continuing operating activities (73) (51)
Net cash provided by operating activities (73) (51)
Cash Flows From Financing Activities:    
Changes in parent company equity 23 30
Repurchase of common shares (519) (108)
Payment of common share dividends to shareholders (150) (143)
Loan activity with parent 719 272
Net cash used in continuing financing activities 73 51
Net cash used in financing activities 73 51
TEGSA | Consolidating Reportable entities    
Cash Flows From Operating Activities:    
Net cash provided by (used in) continuing operating activities (9) (10)
Net cash provided by operating activities (9) (10)
Cash Flows From Investing Activities:    
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation 303  
Change in intercompany loans (25) 335
Intercompany distribution receipts   23
Net cash provided by (used in) continued investing activities 278 358
Net cash provided by (used in) investing activities 278 358
Cash Flows From Financing Activities:    
Changes in parent company equity (240)  
Net increase in commercial paper 63 241
Proceeds from issuance of debt 350 119
Repayment of debt (441) (708)
Other (1)  
Net cash used in continuing financing activities (269) (348)
Net cash used in financing activities (269) (348)
Other Subsidiaries | Consolidating Reportable entities    
Cash Flows From Operating Activities:    
Net cash provided by (used in) continuing operating activities 410 351
Net cash provided by (used in) discontinued operating activities (31) 67
Net cash provided by operating activities 379 418
Cash Flows From Investing Activities:    
Capital expenditures (210) (237)
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation (15)  
Other 4  
Net cash provided by (used in) continued investing activities (221) (237)
Net cash used in discontinued investing activities (2) (4)
Net cash provided by (used in) investing activities (223) (241)
Cash Flows From Financing Activities:    
Changes in parent company equity 217 (30)
Proceeds from exercise of share options 7 54
Repurchase of common shares   (59)
Payment of common share dividends to shareholders   2
Transfers (to) from discontinued operations (33) 63
Intercompany distributions   (30)
Loan activity with parent (694) (607)
Other (28) (32)
Net cash used in continuing financing activities (531) (639)
Net cash provided by (used in) discontinued financing activities 33 (63)
Net cash used in financing activities (498) (702)
Effect of currency translation on cash (1) 11
Net decrease in cash, cash equivalents, and restricted cash (343) (514)
Cash, cash equivalents, and restricted cash at beginning of period 848 1,218
Cash, cash equivalents, and restricted cash at end of period $ 505 $ 704