TE Connectivity Reports Second Quarter 2017 Financial Results

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 31,

March 25,

March 31,

March 25,

2017

2016

2017

2016

(in millions, except per share data)

Net sales

$            3,227

$            2,952

$            6,290

$            5,785

Cost of sales 

2,119

1,990

4,117

3,878

Gross margin

1,108

962

2,173

1,907

Selling, general, and administrative expenses

412

367

784

707

Research, development, and engineering expenses

162

156

320

318

Acquisition and integration costs

2

3

4

8

Restructuring and other charges (credits), net

59

(99)

106

(59)

   Operating income  

473

535

959

933

Interest income

6

4

11

10

Interest expense

(32)

(32)

(63)

(62)

Other income (expense), net

(2)

12

(2)

20

   Income from continuing operations before income taxes

445

519

905

901

Income tax expense

(39)

(130)

(93)

(188)

   Income from continuing operations

406

389

812

713

Income (loss) from discontinued operations, net of income taxes

(1)

(9)

2

20

Net income

$               405

$               380

$               814

$               733

Basic earnings per share:

   Income from continuing operations

$              1.14

$              1.07

$              2.28

$              1.90

   Income (loss) from discontinued operations

-

(0.02)

0.01

0.05

   Net income  

1.14

1.04

2.29

1.95

Diluted earnings per share:

   Income from continuing operations

$              1.13

$              1.06

$              2.26

$              1.88

   Income (loss) from discontinued operations

-

(0.02)

0.01

0.05

   Net income  

1.13

1.03

2.27

1.93

Dividends paid per common share

$              0.37

$              0.33

$              0.74

$              0.66

Weighted-average number of shares outstanding: 

   Basic

356

364

356

375

   Diluted

359

368

359

379

TE CONNECTIVITY LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31,

September 30,

2017

2016

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

$               773

$               647

Accounts receivable, net of allowance for doubtful accounts of $18 and $17, respectively

2,244

2,046

Inventories

1,660

1,596

Prepaid expenses and other current assets

469

486

  Total current assets

5,146

4,775

Property, plant, and equipment, net

3,046

3,052

Goodwill

5,382

5,492

Intangible assets, net

1,768

1,879

Deferred income taxes

2,280

2,111

Other assets

434

299

Total Assets

$          18,056

$          17,608

Liabilities and Shareholders' Equity

Current liabilities:

Short-term debt

$               879

$               331

Accounts payable

1,226

1,090

Accrued and other current liabilities

1,701

1,437

Deferred revenue

129

208

Total current liabilities

3,935

3,066

Long-term debt

3,073

3,739

Long-term pension and postretirement liabilities

1,474

1,502

Deferred income taxes

197

207

Income taxes

276

247

Other liabilities

348

362

Total Liabilities

9,303

9,123

Commitments and contingencies

Shareholders' equity:

Common shares, CHF 0.57 par value, 382,835,381 shares authorized and issued

168

168

Contributed surplus

1,147

1,801

Accumulated earnings 

9,661

8,682

Treasury shares, at cost, 27,525,920 and 27,554,005 shares, respectively

(1,639)

(1,624)

Accumulated other comprehensive loss

(584)

(542)

Total Shareholders' Equity

8,485

Total Liabilities and Shareholders' Equity

$          18,056

$          17,608

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 31,

March 25,

March 31,

March 25,

2017

2016

2017

2016

(in millions)

Cash Flows From Operating Activities:

Net income

$               405

$               380

$               814

$               733

(Income) loss from discontinued operations, net of income taxes

1

9

(2)

(20)

Income from continuing operations

406

389

812

713

Adjustments to reconcile income from continuing operations to net cash 

provided by operating activities:

Depreciation and amortization

152

144

312

290

Deferred income taxes

(49)

6

(118)

(52)

Provision for losses on accounts receivable and inventories

5

2

9

23

Share-based compensation expense

23

21

47

43

Gain on divestiture

-

(146)

-

(146)

Other 

8

34

12

43

Changes in assets and liabilities, net of the effects of acquisitions

and divestitures:

Accounts receivable, net

(185)

(228)

(215)

9

Inventories

(10)

38

(69)

(61)

Prepaid expenses and other current assets

1

286

32

302

Accounts payable

84

15

148

(16)

Accrued and other current liabilities

83

(8)

13

(138)

Deferred revenue

(24)

1

(83)

(70)

Income taxes

5

(424)

33

(396)

Other

22

26

(8)

3

Net cash provided by continuing operating activities

521

156

925

547

Net cash used in discontinued operating activities

-

(1)

-

(2)

Net cash provided by operating activities

521

155

925

545

Cash Flows From Investing Activities:

Capital expenditures

(159)

(131)

(289)

(270)

Proceeds from sale of property, plant, and equipment

4

-

8

1

Acquisition of business, net of cash acquired

-

(6)

-

(6)

Proceeds from divestiture of business, net of cash retained by business sold

-

261

-

261

Other

12

12

(16)

29

Net cash provided by (used in) investing activities

(143)

136

(297)

15

Cash Flows From Financing Activities:

Net increase (decrease) in commercial paper

(172)

150

(162)

150

Proceeds from issuance of debt

89

350

89

350

Repayment of debt

-

(500)

-

(500)

Proceeds from exercise of share options

39

27

64

61

Repurchase of common shares

(105)

(1,274)

(198)

(2,523)

Payment of common share dividends to shareholders

(131)

(118)

(263)

(245)

Other

(3)

(3)

(22)

(32)

Net cash used in continuing financing activities

(283)

(1,368)

(492)

(2,739)

Net cash provided by discontinued financing activities

-

1

-

2

Net cash used in financing activities

(283)

(1,367)

(492)

(2,737)

Effect of currency translation on cash

13

3

(10)

(2)

Net increase (decrease) in cash and cash equivalents

108

(1,073)

126

(2,179)

Cash and cash equivalents at beginning of period

665

2,223

647

3,329

Cash and cash equivalents at end of period

$               773

$            1,150

$               773

$            1,150

Supplemental Cash Flow Information:

Interest paid

$                 26

$                 20

$                 66

$                 62

Income taxes paid, net of refunds

81

547

177

635

TE CONNECTIVITY LTD.

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 31,

March 25,

March 31,

March 25,

2017

2016

2017

2016

(in millions)

Net cash provided by continuing operating activities

$               521

$               156

$               925

$               547

Excluding:

Payments related to pre-separation U.S. tax matters, net

-

139

-

140

Payments related to income taxes on the sale of the

Broadband Network Solutions business

-

2

-

9

Cash (collected) paid pursuant to collateral requirements

related to cross currency swaps

21

43

(39)

19

Capital expenditures, net

(155)

(131)

(281)

(269)

Free cash flow ⁽¹⁾

$               387

$               209

$               605

$               446

⁽¹⁾ Free cash flow is a non-GAAP measure. See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

CONSOLIDATED SEGMENT DATA (UNAUDITED)

For the Quarters Ended 

For the Six Months Ended 

March 31,

March 25,

March 31,

March 25,

2017

2016

2017

2016

($ in millions)

Net Sales

Net Sales

Net Sales

Net Sales

Transportation Solutions

$          1,755

$          1,608

$          3,430

$          3,115

Industrial Solutions

853

738

1,648

1,447

Communications Solutions

619

606

1,212

1,223

Total

$          3,227

$          2,952

$          6,290

$          5,785

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

$             300

17.1%

$             289

18.0%

$             643

18.7%

$             550

17.7%

Industrial Solutions

86

10.1

63

8.5

153

9.3

129

8.9

Communications Solutions

87

14.1

183

30.2

163

13.4

254

20.8

Total

$             473

14.7%

$             535

18.1%

$             959

15.2%

$             933

16.1%

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Income ⁽¹⁾

Margin ⁽¹⁾

Income ⁽¹⁾

Margin ⁽¹⁾

Income ⁽¹⁾

Margin ⁽¹⁾

Income ⁽¹⁾

Margin ⁽¹⁾

Transportation Solutions

$             333

19.0%

$             305

19.0%

$             701

20.4%

$             585

18.8%

Industrial Solutions

108

12.7

84

11.4

198

12.0

162

11.2

Communications Solutions

94

15.2

51

8.4

172

14.2

137

11.2

Total

$             535

16.6%

$             440

14.9%

$          1,071

17.0%

$             884

15.3%

⁽¹⁾ Adjusted operating income and adjusted operating margin are non-GAAP measures. See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

RECONCILIATION OF NET SALES GROWTH (UNAUDITED)

Change in Net Sales for the Quarter Ended March 31, 2017

 versus Net Sales for the Quarter Ended March 25, 2016

Net

Organic Net

Acquisitions

Sales Growth

Sales Growth ⁽¹⁾

Translation ⁽²⁾

(Divestiture)

($ in millions)

Transportation Solutions ⁽³⁾:

Automotive

$                 94

7.7%

$               112

9.3%

$                (18)

$                    -

Commercial transportation

40

19.2

44

21.0

(4)

-

Sensors

13

7.0

6

3.5

(3)

10

Total

147

9.1

162

10.1

(25)

10

Industrial Solutions ⁽³⁾:

Industrial equipment

110

35.7

14

4.4

(8)

104

Aerospace, defense, oil, and gas

(5)

(1.8)

(1)

(0.3)

(5)

1

Energy

10

6.4

11

7.0

(1)

-

Total

115

15.6

24

3.3

(14)

105

Communications Solutions ⁽³⁾:

Data and devices

(26)

(10.0)

14

4.9

(6)

(34)

Subsea communications

21

10.5

21

10.5

-

-

Appliances

18

12.2

21

14.1

(3)

-

Total

13

2.1

56

9.2

(9)

(34)

Total 

$               275

9.3%

$               242

8.2%

$                (48)

$                 81

Change in Net Sales for the Six Months Ended March 31, 2017

 versus Net Sales for the Six Months Ended March 25, 2016

Net

Organic Net

Acquisitions

Sales Growth

Sales Growth ⁽¹⁾

Translation ⁽²⁾

(Divestiture)

($ in millions)

Transportation Solutions⁽³⁾:

Automotive

$               229

9.7%

$               256

10.9%

$                (27)

$                    -

Commercial transportation

67

17.0

73

18.5

(6)

-

Sensors

19

5.2

4

1.2

(6)

21

Total

315

10.1

333

10.7

(39)

21

Industrial Solutions ⁽³⁾:

Industrial equipment

204

34.2

16

2.6

(10)

198

Aerospace, defense, oil, and gas

(5)

(1.0)

1

0.2

(7)

1

Energy

2

0.6

6

1.9

(4)

-

Total

201

13.9

23

1.6

(21)

199

Communications Solutions ⁽³⁾:

Data and devices

(59)

(11.3)

17

3.3

(6)

(70)

Subsea communications

12

2.8

12

2.8

-

-

Appliances

36

13.0

42

14.2

(6)

-

Total

(11)

(0.9)

71

5.8

(12)

(70)

Total 

$               505

8.7%

$               427

7.5%

$                (72)

$               150

⁽¹⁾ Organic net sales growth is a non-GAAP measure. See description of non-GAAP measures contained in this release.

⁽²⁾ Represents the change in net sales resulting from changes in foreign currency exchange rates.

⁽³⁾ Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 31, 2017

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges ⁽¹⁾

Charges, Net ⁽¹⁾

Items ⁽²⁾

(Non-GAAP) ⁽³⁾

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               300

$                    -

$                 33

$                    -

$               333

Industrial Solutions

86

3

19

-

108

Communications Solutions

87

-

7

-

94

    Total 

$               473

$                   3

$                 59

$                    -

$               535

Operating Margin

14.7%

16.6%

Other Expense, Net

$                  (2)

$                    -

$                    -

$                    -

$                  (2)

Income Tax Expense

$                (39)

$                    -

$                (17)

$                (22)

$                (78)

Income from Continuing Operations 

$               406

$                   3

$                 42

$                (22)

$               429

Diluted Earnings per Share from 

   Continuing Operations 

$              1.13

$              0.01

$              0.12

$             (0.06)

$              1.19

⁽¹⁾ The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

⁽²⁾ Income tax benefits associated with the tax impacts of certain intercompany transactions.

⁽³⁾ See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 25, 2016

(UNAUDITED)

Adjustments

Restructuring

Acquisition

and Other

Related

Charges

Tax

Adjusted

U.S. GAAP

Charges ⁽¹⁾

(Credits), Net ^{(1) (2)}

Items

(Non-GAAP) ⁽³⁾

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               289

$                   1

$                       15

$                    -

$               305

Industrial Solutions

63

3

18

-

84

Communications Solutions

183

-

(132)

-

51

    Total 

$               535

$                   4

$                     (99)

$                    -

$               440

Operating Margin

18.1%

14.9%

Other Income, Net

$                 12

$                    -

$                         -

$                    -

$                 12

Income Tax Expense

$              (130)

$                  (1)

$                       35

$                   3

$                (93)

Income from Continuing Operations 

$               389

$                   3

$                     (64)

$                   3

$               331

Diluted Earnings per Share from 

   Continuing Operations 

$              1.06

$              0.01

$                  (0.17)

$              0.01

$              0.90

⁽¹⁾ The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

⁽²⁾ Includes the gain on the divestiture of our Circuit Protection Devices business.

⁽³⁾ See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Six Months Ended March 31, 2017

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges ⁽¹⁾

Charges, Net ⁽¹⁾

Items ⁽²⁾

(Non-GAAP) ⁽³⁾

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               643

$                   1

$                 57

$                    -

$               701

Industrial Solutions

153

5

40

-

198

Communications Solutions

163

-

9

-

172

    Total 

$               959

$                   6

$               106

$                    -

$            1,071

Operating Margin

15.2%

17.0%

Other Expense, Net

$                  (2)

$                    -

$                    -

$                    -

$                  (2)

Income Tax Expense

$                (93)

$                  (1)

$                (30)

$                (52)

$              (176)

Income from Continuing Operations 

$               812

$                   5

$                 76

$                (52)

$               841

Diluted Earnings per Share from 

   Continuing Operations

$              2.26

$              0.01

$              0.21

$             (0.14)

$              2.34

⁽¹⁾ The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

⁽²⁾ Income tax benefits associated with the tax impacts of certain intercompany transactions and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards.

⁽³⁾ See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Six Months Ended March 25, 2016

(UNAUDITED)

Adjustments

Restructuring

Acquisition

and Other

Related

Charges

Tax

Adjusted

U.S. GAAP

Charges ⁽¹⁾

(Credits), Net ^{(1) (2)}

Items ⁽³⁾

(Non-GAAP) ⁽⁴⁾

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               550

$                   4

$                       31

$                    -

$               585

Industrial Solutions

129

6

27

-

162

Communications Solutions

254

-

(117)

-

137

    Total 

$               933

$                 10

$                     (59)

$                    -

$               884

Operating Margin

16.1%

15.3%

Other Income, Net

$                 20

$                    -

$                         -

$                    -

$                 20

Income Tax Expense

$              (188)

$                  (3)

$                       23

$                (25)

$              (193)

Income from Continuing Operations 

$               713

$                   7

$                     (36)

$                (25)

$               659

Diluted Earnings per Share from 

   Continuing Operations

$              1.88

$              0.02

$                  (0.09)

$             (0.07)

$              1.74

⁽¹⁾ The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

⁽²⁾ Includes the gain on the divestiture of our Circuit Protection Devices business.

⁽³⁾ Includes income tax benefits related to deferred tax assets recognized in connection with the sale of the Circuit Protection Devices business.

⁽⁴⁾ See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 24, 2016

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges ^{(1) (2)}

Charges, Net ⁽²⁾

Items ⁽³⁾

(Non-GAAP) ⁽⁴⁾

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               297

$                   2

$                 21

$                    -

$               320

Industrial Solutions

95

16

1

-

112

Communications Solutions

60

-

9

-

69

    Total 

$               452

$                 18

$                 31

$                    -

$               501

Operating Margin

14.5%

16.1%

Other Expense, Net

$              (651)

$                    -

$                    -

$               650

$                  (1)

Income Tax (Expense) Benefit

$            1,019

$                  (3)

$                (10)

$           (1,086)

$                (80)

Income from Continuing Operations 

$               791

$                 15

$                 21

$              (436)

$               391

Diluted Earnings per Share from 

   Continuing Operations 

$              2.19

$              0.04

$              0.06

$             (1.21)

$              1.08

⁽¹⁾ Includes $11 million of acquisition and integration costs and $7 million of non-cash amortization associated with fair value adjustments related to acquired inventories and customer order backlog recorded in cost of sales.

⁽²⁾ The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

⁽³⁾ Includes $1,135 million of income tax benefits associated with the settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007, as well as the related impact of $604 million to other expense pursuant to the tax sharing agreement with Tyco International and Covidien. Also includes income tax charges related to a $91 million increase in the valuation allowance for certain U.S. deferred tax assets; and an $83 million net income tax benefit related to tax settlements in certain other tax jurisdictions, as well as the related impact of $46 million to other expense pursuant to the tax sharing agreement with Tyco International and Covidien.

⁽⁴⁾ See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 30, 2016

(UNAUDITED)

Adjustments

Restructuring

Acquisition

and Other

Related

Charges

Tax

Adjusted

U.S. GAAP

Charges ^{(1) (2)}

(Credits), Net ⁽²⁾

Items ⁽³⁾

(Non-GAAP) ⁽⁴⁾

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$            1,191

$                   9

$                 46

$                    -

$            1,246

Industrial Solutions

343

23

31

-

397

Communications Solutions

368

-

(75)

-

293

    Total 

$            1,902

$                 32

$                   2

$                    -

$            1,936

Operating Margin

15.5%

15.8%

Other Income (Expense), Net

$              (632)

$                    -

$                    -

$               650

$                 18

Income Tax (Expense) Benefit

$               779

$                  (7)

$                  (2)

$           (1,111)

$              (341)

Income from Continuing Operations 

$            1,941

$                 25

$                    -

$              (461)

$            1,505

Diluted Earnings per Share from 

   Continuing Operations

$              5.26

$              0.07

$                    -

$             (1.25)

$              4.08

⁽¹⁾ Includes $22 million of acquisition and integration costs and $10 million of non-cash amortization associated with fair value adjustments related to acquired inventories and customer order backlog recorded in cost of sales.

⁽²⁾ The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

⁽³⁾ Includes $1,135 million of income tax benefits associated with the settlement of tax matters for the years 1997 through 2000 which resolved all aspects of the disputed debt matter with the IRS through the year 2007, as well as the related impact of $604 million to other expense pursuant to the tax sharing agreement with Tyco International and Covidien. Also includes income tax charges related to a $91 million increase in the valuation allowance for certain U.S. deferred tax assets; and an $83 million net income tax benefit related to tax settlements in certain other tax jurisdictions, as well as the related impact of $46 million to other expense pursuant to the tax sharing agreement with Tyco International and Covidien.

⁽⁴⁾ See description of non-GAAP measures contained in this release.

TE CONNECTIVITY LTD.

IMPACT OF ADDITIONAL WEEK (UNAUDITED)

For the Year Ended September 30, 2016

Change in Net Sales for Fiscal 2016
versus Net Sales for Fiscal 2015

Change in Organic Net Sales for Fiscal 2016
versus Organic Net Sales for Fiscal 2015 ⁽²⁾

Fiscal 2016

Fiscal 2015

Adjustment

Adjustment

Adjustment

53 Weeks

Impact of

52 Weeks

53 Weeks

Impact of

52 Weeks

53 Weeks

Impact of

52 Weeks

U.S. GAAP

53rd Week

(Non-GAAP) ^{(1) (2)}

U.S. GAAP

53rd Week

(Non-GAAP) ^{(1) (2)}

(Non-GAAP) ⁽²⁾

53rd Week

(Non-GAAP) ^{(1) (2)}

 ($ in millions)

Net Sales:

Transportation Solutions

Automotive

$            4,912

$              (102)

$            4,810

$            4,780

2.8%

(2.2)%

0.6%

5.6%

(2.2)%

3.4%

Commercial transportation

825

(15)

810

820

0.6

(1.8)

(1.2)

2.6

(1.8)

0.8

Sensors

766

(13)

753

751

2.0

(1.7)

0.3

3.1

(1.7)

1.4

Total

6,503

(130)

6,373

6,351

2.4

(2.1)

0.3

4.9

(2.1)

2.8

Industrial Solutions

Industrial equipment

1,419

(32)

1,387

1,323

7.3

(2.5)

4.8

(5.2)

(2.1)

(7.3)

Aerospace, defense, oil, and gas

1,100

(20)

1,080

1,151

(4.4)

(1.8)

(6.2)

(3.8)

(1.7)

(5.5)

Energy

696

(13)

683

705

(1.3)

(1.8)

(3.1)

3.6

(1.9)

1.7

Total

3,215

(65)

3,150

3,179

1.1

(2.0)

(0.9)

(2.8)

(1.9)

(4.7)

Communications Solutions

Data and devices

1,020

(21)

999

1,357

(24.8)

(1.6)

(26.4)

(17.8)

(1.7)

(19.5)

Subsea communications

885

(11)

874

709

24.8

(1.5)

23.3

24.8

(1.3)

23.5

Appliances

615

(11)

604

637

(3.5)

(1.7)

(5.2)

(1.8)

(1.9)

(3.7)

Total

2,520

(43)

2,477

2,703

(6.8)

(1.6)

(8.4)

(1.6)

(1.7)

(3.3)

Total

$          12,238

$              (238)

$          12,000

$          12,233

-%

(1.9)%

(1.9)%

1.5%

(2.0)%

(0.5)%

Adjustments

Adjustment

Acquisition

Restructuring

Related

and Other

53 Weeks

Impact of

52 Weeks

U.S. GAAP

Charges ⁽³⁾

Charges, Net 

Tax Items ⁽⁴⁾

(Non-GAAP) ⁽²⁾

53rd Week

(Non-GAAP) ^{(1) (2)}

 ($ in millions, except per share data)