TE Connectivity Reports Third Quarter 2017 Financial Results
Net sales and earnings per share exceed guidance; company raises full year sales and earnings outlook
Jul 26, 2017
SCHAFFHAUSEN, Switzerland, July 26, 2017 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal third quarter that ended June 30, 2017.
Third Quarter Highlights
- Net sales were $3.4 billion, up 8 percent, as reported and organically, from third quarter of 2016;
- Orders, excluding the company's SubCom business, were $3.3 billion, up 12 percent from the prior year;
- Diluted earnings per share from continuing operations were $1.21;
- Adjusted earnings per share were $1.24;
- Cash flow from continuing operating activities was $524 million, with free cash flow of $408 million, and $324 million returned to shareholders.
Third Quarter Results
For the third quarter, the company reported net sales of $3.4 billion, with growth of 8 percent year-over-year. Diluted earnings per share (EPS) from continuing operations (GAAP EPS) were $1.21 and adjusted EPS were $1.24. Cash flow from continuing operating activities was $524 million, and free cash flow was $408 million. The company returned $324 million to shareholders in the quarter through dividends and share repurchases. Orders for the quarter, excluding the company's SubCom business, totaled $3.3 billion, up 12 percent from the prior year, with a book-to-bill ratio of 1.06.
"Our teams continued to deliver strong financial performance and growth across all segments and regions, reflecting our strategy to create safer, sustainable, productive and connected solutions for our customers," said TE Connectivity Chief Executive Officer Terrence Curtin. "This quarter's results were driven by content growth in Transportation Solutions; strength in our Industrial Solutions segment, particularly in factory automation and medical applications; and strong results in our Communications Solutions segment, especially in areas connected to cloud solutions.
"In connection with these results, we are raising the midpoint of our fiscal 2017 sales and adjusted EPS guidance to $12.9 billion and $4.73 respectively, representing 7 percent organic sales growth and 20 percent adjusted EPS growth versus the prior year," Curtin added. "This increase in our guidance is due to above market growth in all of our segments and strong execution of our strategy."
During the third quarter, the company announced a definitive agreement to acquire Hirschmann Car Communication, which focuses on vehicle connectivity technology used in antenna and infotainment systems and acquired MicroGroup, a producer of specialized shafts for medical applications. These acquisitions will enable further content growth in key applications for the automotive and medical markets.
2017 Outlook
For the fiscal fourth quarter of 2017, the company expects net sales of $3.2 billion to $3.3 billion, reflecting an increase of 5 percent on an as reported basis and 4 percent organically, at the midpoint versus the fourth quarter of 2016, excluding the additional week in fiscal year 2016. GAAP EPS are expected to be $1.07 to $1.09, including net restructuring, acquisition-related and other charges of $0.07. TE expects adjusted EPS of $1.14 to $1.16, which includes a $0.09 favorable impact from growth and margin improvements year-over-year, offset by a $0.08 tax rate impact due to an unusually low tax rate in the prior year.
For the full year, the company expects net sales of $12.85 billion to $12.95 billion, reflecting 8 percent growth on an as reported basis and 7 percent organically at the mid-point versus the prior year, excluding the additional week in fiscal year 2016. GAAP EPS are expected to be $4.54 to $4.56, including net restructuring, acquisition-related and other charges of $0.34 and a tax-related benefit of $0.16. TE expects adjusted EPS of $4.72 to $4.74 reflecting 20 percent growth at the mid-point compared to 2016, when excluding the additional week.
Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a conference call today beginning at 8:30 a.m. ET. The dial-in information is provided here:
- At TE Connectivity's website: http://investors.te.com.
- By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 230-1059, and for international callers, the dial-in number is (612) 234-9959.
- An audio replay of the conference call will be available beginning at 10:30 a.m. ET on July 26, 2017, and ending at 11:59 p.m. ET on August 2, 2017. The dial-in number for participants in the United States is (800) 475-6701. For participants outside the United States, the dial-in number is (320) 365-3844. The replay access code for all callers is 426345.
About TE Connectivity
TE Connectivity (NYSE: TEL) is a global technology leader with revenues of approximately $13 billion. Our commitment to innovation enables advancements in transportation, industrial applications, medical technology, energy, data communications, and the home. TE's unmatched breadth of connectivity and sensor solutions, proven in the harshest of environments, helps build a safer, greener, smarter and more connected world. With 75,000 people – including more than 7,000 engineers – working alongside customers in nearly 150 countries, we help ensure that EVERY CONNECTION COUNTS – www.TE.com
Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.
The following provides additional information regarding our non-GAAP financial measures:
- Organic Net Sales Growth – represents net sales growth (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth is a useful measure of our performance because it excludes items that are not completely under management's control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
- Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition related charges, and other income or charges, if any. We utilize these measures to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.
- Adjusted Other Income, Net – represents net other income (the most comparable GAAP financial measure) before special items including tax sharing income related to adjustments to prior period tax returns and other items, if any.
- Adjusted Income Tax Expense and Adjusted Effective Tax Rate – represent income tax expense and effective tax rate, respectively (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition related charges, other income or charges, and certain significant tax items, if any.
- Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition related charges, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.
- Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition related charges, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
- Net Sales Excluding the Impact of the Additional Week, Net Sales Growth Excluding the Impact of the Additional Week, Organic Net Sales Growth Excluding the Impact of the Additional Week, Adjusted Operating Income Excluding the Impact of the Additional Week, Adjusted Operating Margin Excluding the Impact of the Additional Week, and Adjusted Earnings Per Share Excluding the Impact of the Additional Week – represent certain GAAP and non-GAAP financial measures excluding the impact of the additional week in the fourth quarter of the fiscal year for fiscal years which are 53 weeks in length. The impact of the additional week is estimated using an average weekly sales figure for the last month of the fiscal year.
- Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by continuing operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations.
Free Cash Flow is defined as net cash provided by continuing operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including net payments related to pre-separation tax matters and cash paid (collected) pursuant to collateral requirements related to cross currency swaps, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments.
In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management's and the Board of Directors' discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive and data and devices industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2016 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
|
TE CONNECTIVITY LTD. | |||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
|
For the Quarters Ended |
For the Nine Months Ended | ||||||
|
June 30, |
June 24, |
June 30, |
June 24, | ||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(in millions, except per share data) | |||||||
|
Net sales |
$ 3,367 |
$ 3,121 |
$ 9,657 |
$ 8,906 | |||
|
Cost of sales |
2,229 |
2,099 |
6,346 |
5,977 | |||
|
Gross margin |
1,138 |
1,022 |
3,311 |
2,929 | |||
|
Selling, general, and administrative expenses |
412 |
367 |
1,196 |
1,074 | |||
|
Research, development, and engineering expenses |
170 |
161 |
490 |
479 | |||
|
Acquisition and integration costs |
1 |
11 |
5 |
19 | |||
|
Restructuring and other charges (credits), net |
19 |
31 |
125 |
(28) | |||
|
Operating income |
536 |
452 |
1,495 |
1,385 | |||
|
Interest income |
3 |
2 |
14 |
12 | |||
|
Interest expense |
(32) |
(31) |
(95) |
(93) | |||
|
Other expense, net |
(4) |
(651) |
(6) |
(631) | |||
|
Income (loss) from continuing operations before income taxes |
503 |
(228) |
1,408 |
673 | |||
|
Income tax (expense) benefit |
(71) |
1,019 |
(164) |
831 | |||
|
Income from continuing operations |
432 |
791 |
1,244 |
1,504 | |||
|
Income from discontinued operations, net of income taxes |
3 |
48 |
5 |
68 | |||
|
Net income |
$ 435 |
$ 839 |
$ 1,249 |
$ 1,572 | |||
|
Basic earnings per share: |
|||||||
|
Income from continuing operations |
$ 1.22 |
$ 2.22 |
$ 3.50 |
$ 4.08 | |||
|
Income from discontinued operations |
0.01 |
0.13 |
0.01 |
0.18 | |||
|
Net income |
1.23 |
2.35 |
3.52 |
4.26 | |||
|
Diluted earnings per share: |
|||||||
|
Income from continuing operations |
$ 1.21 |
$ 2.19 |
$ 3.47 |
$ 4.03 | |||
|
Income from discontinued operations |
0.01 |
0.13 |
0.01 |
0.18 | |||
|
Net income |
1.22 |
2.32 |
3.48 |
4.21 | |||
|
Dividends paid per common share |
$ 0.40 |
$ 0.37 |
$ 1.14 |
$ 1.03 | |||
|
Weighted-average number of shares outstanding: |
|||||||
|
Basic |
355 |
357 |
355 |
369 | |||
|
Diluted |
358 |
361 |
359 |
373 | |||
|
TE CONNECTIVITY LTD. | |||
|
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||
|
June 30, |
September 30, | ||
|
2017 |
2016 | ||
|
(in millions, except share data) | |||
|
Assets |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 755 |
$ 647 | |
|
Accounts receivable, net of allowance for doubtful accounts of $20 and $17, respectively |
2,271 |
2,046 | |
|
Inventories |
1,787 |
1,596 | |
|
Prepaid expenses and other current assets |
541 |
486 | |
|
Total current assets |
5,354 |
4,775 | |
|
Property, plant, and equipment, net |
3,165 |
3,052 | |
|
Goodwill |
5,516 |
5,492 | |
|
Intangible assets, net |
1,790 |
1,879 | |
|
Deferred income taxes |
2,287 |
2,111 | |
|
Other assets |
408 |
299 | |
|
Total Assets |
$ 18,520 |
$ 17,608 | |
|
Liabilities and Shareholders' Equity |
|||
|
Current liabilities: |
|||
|
Short-term debt |
$ 878 |
$ 331 | |
|
Accounts payable |
1,309 |
1,090 | |
|
Accrued and other current liabilities |
1,623 |
1,437 | |
|
Deferred revenue |
62 |
208 | |
|
Total current liabilities |
3,872 |
3,066 | |
|
Long-term debt |
3,113 |
3,739 | |
|
Long-term pension and postretirement liabilities |
1,494 |
1,502 | |
|
Deferred income taxes |
197 |
207 | |
|
Income taxes |
283 |
247 | |
|
Other liabilities |
420 |
362 | |
|
Total Liabilities |
9,379 |
9,123 | |
|
Commitments and contingencies |
|||
|
Shareholders' equity: |
|||
|
Common shares, CHF 0.57 par value, 357,069,981 shares authorized and issued, and |
|||
|
382,835,381 shares authorized and issued, respectively |
157 |
168 | |
|
Contributed surplus |
- |
1,801 | |
|
Accumulated earnings |
9,747 |
8,682 | |
|
Treasury shares, at cost, 3,380,507and 27,554,005 shares, respectively |
(257) |
(1,624) | |
|
Accumulated other comprehensive loss |
(506) |
(542) | |
|
Total Shareholders' Equity |
9,141 |
8,485 | |
|
Total Liabilities and Shareholders' Equity |
$ 18,520 |
$ 17,608 | |
|
TE CONNECTIVITY LTD. | |||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
|
For the Quarters Ended |
For the Nine Months Ended | ||||||
|
June 30, |
June 24, |
June 30, |
June 24, | ||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(in millions) | |||||||
|
Cash Flows From Operating Activities: |
|||||||
|
Net income |
$ 435 |
$ 839 |
$ 1,249 |
$ 1,572 | |||
|
Income from discontinued operations, net of income taxes |
(3) |
(48) |
(5) |
(68) | |||
|
Income from continuing operations |
432 |
791 |
1,244 |
1,504 | |||
|
Adjustments to reconcile income from continuing operations to net cash |
|||||||
|
provided by operating activities: |
|||||||
|
Depreciation and amortization |
157 |
148 |
469 |
438 | |||
|
Deferred income taxes |
(28) |
214 |
(146) |
162 | |||
|
Provision for losses on accounts receivable and inventories |
6 |
4 |
15 |
27 | |||
|
Tax sharing expense |
5 |
651 |
6 |
632 | |||
|
Share-based compensation expense |
26 |
23 |
73 |
66 | |||
|
(Gain) loss on divestiture |
- |
3 |
- |
(143) | |||
|
Other |
6 |
22 |
17 |
84 | |||
|
Changes in assets and liabilities, net of the effects of acquisitions |
|||||||
|
and divestitures: |
|||||||
|
Accounts receivable, net |
(45) |
6 |
(260) |
15 | |||
|
Inventories |
(126) |
59 |
(195) |
(2) | |||
|
Prepaid expenses and other current assets |
(38) |
- |
(6) |
302 | |||
|
Accounts payable |
69 |
12 |
217 |
(4) | |||
|
Accrued and other current liabilities |
43 |
70 |
56 |
(68) | |||
|
Deferred revenue |
(67) |
48 |
(150) |
(22) | |||
|
Income taxes |
21 |
(1,339) |
54 |
(1,735) | |||
|
Other |
63 |
3 |
55 |
6 | |||
|
Net cash provided by continuing operating activities |
524 |
715 |
1,449 |
1,262 | |||
|
Net cash provided by (used in) discontinued operating activities |
(1) |
3 |
(1) |
1 | |||
|
Net cash provided by operating activities |
523 |
718 |
1,448 |
1,263 | |||
|
Cash Flows From Investing Activities: |
|||||||
|
Capital expenditures |
(163) |
(150) |
(452) |
(420) | |||
|
Proceeds from sale of property, plant, and equipment |
4 |
2 |
12 |
3 | |||
|
Acquisition of businesses, net of cash acquired |
(77) |
(988) |
(77) |
(994) | |||
|
Proceeds from divestiture of business, net of cash retained by sold business |
4 |
65 |
4 |
326 | |||
|
Other |
(9) |
(1) |
(25) |
28 | |||
|
Net cash used in investing activities |
(241) |
(1,072) |
(538) |
(1,057) | |||
|
Cash Flows From Financing Activities: |
|||||||
|
Net increase (decrease) in commercial paper |
- |
150 |
(162) |
300 | |||
|
Proceeds from issuance of debt |
- |
- |
89 |
350 | |||
|
Repayment of debt |
- |
- |
- |
(500) | |||
|
Proceeds from exercise of share options |
22 |
16 |
86 |
77 | |||
|
Repurchase of common shares |
(178) |
(134) |
(376) |
(2,657) | |||
|
Payment of common share dividends to shareholders |
(142) |
(132) |
(405) |
(377) | |||
|
Other |
(2) |
3 |
(24) |
(29) | |||
|
Net cash used in continuing financing activities |
(300) |
(97) |
(792) |
(2,836) | |||
|
Net cash provided by (used in) discontinued financing activities |
1 |
(3) |
1 |
(1) | |||
|
Net cash used in financing activities |
(299) |
(100) |
(791) |
(2,837) | |||
|
Effect of currency translation on cash |
(1) |
(2) |
(11) |
(4) | |||
|
Net increase (decrease) in cash and cash equivalents |
(18) |
(456) |
108 |
(2,635) | |||
|
Cash and cash equivalents at beginning of period |
773 |
1,150 |
647 |
3,329 | |||
|
Cash and cash equivalents at end of period |
$ 755 |
$ 694 |
$ 755 |
$ 694 | |||
|
Supplemental Cash Flow Information: |
|||||||
|
Interest paid |
$ 40 |
$ 40 |
$ 106 |
$ 102 | |||
|
Income taxes paid, net of refunds |
79 |
107 |
256 |
742 | |||
|
TE CONNECTIVITY LTD. | |||||||
|
RECONCILIATION OF FREE CASH FLOW (UNAUDITED) | |||||||
|
For the Quarters Ended |
For the Nine Months Ended | ||||||
|
June 30, |
June 24, |
June 30, |
June 24, | ||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
(in millions) | |||||||
|
Net cash provided by continuing operating activities |
$ 524 |
$ 715 |
$ 1,449 |
$ 1,262 | |||
|
Excluding: |
|||||||
|
Payments (receipts) related to pre-separation U.S. |
|||||||
|
tax matters, net |
(15) |
5 |
(23) |
145 | |||
|
Payments related to income taxes on the sale of the |
|||||||
|
Broadband Network Solutions business |
- |
17 |
- |
26 | |||
|
Cash paid pursuant to collateral requirements related |
|||||||
|
to cross currency swaps |
58 |
- |
19 |
19 | |||
|
Capital expenditures, net |
(159) |
(148) |
(440) |
(417) | |||
|
Free cash flow (1) |
$ 408 |
$ 589 |
$ 1,005 |
$ 1,035 | |||
|
(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. | |||||||
|
TE CONNECTIVITY LTD. | |||||||||||
|
CONSOLIDATED SEGMENT DATA (UNAUDITED) | |||||||||||
|
For the Quarters Ended |
For the Nine Months Ended | ||||||||||
|
June 30, |
June 24, |
June 30, |
June 24, | ||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||
|
($ in millions) | |||||||||||
|
Net Sales |
Net Sales |
Net Sales |
Net Sales |
||||||||
|
Transportation Solutions |
$ 1,765 |
$ 1,652 |
$ 5,195 |
$ 4,767 |
|||||||
|
Industrial Solutions |
905 |
849 |
2,553 |
2,296 |
|||||||
|
Communications Solutions |
697 |
620 |
1,909 |
1,843 |
|||||||
|
Total |
$ 3,367 |
$ 3,121 |
$ 9,657 |
$ 8,906 |
|||||||
|
Operating |
Operating |
Operating |
Operating |
Operating |
Operating |
Operating |
Operating | ||||
|
Income |
Margin |
Income |
Margin |
Income |
Margin |
Income |
Margin | ||||
|
Transportation Solutions |
$ 328 |
18.6% |
$ 297 |
18.0% |
$ 971 |
18.7% |
$ 847 |
17.8% | |||
|
Industrial Solutions |
98 |
10.8 |
95 |
11.2 |
251 |
9.8 |
224 |
9.8 | |||
|
Communications Solutions |
110 |
15.8 |
60 |
9.7 |
273 |
14.3 |
314 |
17.0 | |||
|
Total |
$ 536 |
15.9% |
$ 452 |
14.5% |
$ 1,495 |
15.5% |
$ 1,385 |
15.6% | |||
|
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 |
$ 332 |
18.8% |
$ 320 |
19.4% |
$ 1,033 |
19.9% |
$ 905 |
19.0% | |||
|
Industrial Solutions |
115 |
12.7 |
112 |
13.2 |
313 |
12.3 |
274 |
11.9 | |||
|
Communications Solutions |
112 |
16.1 |
69 |
11.1 |
284 |
14.9 |
206 |
11.2 | |||
|
Total |
$ 559 |
16.6% |
$ 501 |
16.1% |
$ 1,630 |
16.9% |
$ 1,385 |
15.6% | |||
|
(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. | |||||||||||
|
TE CONNECTIVITY LTD. | |||||||||
|
RECONCILIATION OF NET SALES GROWTH (UNAUDITED) | |||||||||
|
Change in Net Sales for the Quarter Ended June 30, 2017 | |||||||||
|
versus Net Sales for the Quarter Ended June 24, 2016 | |||||||||
|
Net |
Organic Net |
||||||||
|
Sales Growth |
Sales Growth (1) |
Translation (2) |
Acquisitions | ||||||
|
($ in millions) | |||||||||
|
Transportation Solutions (3): |
|||||||||
|
Automotive |
$ 49 |
3.9% |
$ 70 |
5.6% |
$ (21) |
$ - | |||
|
Commercial transportation |
45 |
20.7 |
50 |
23.1 |
(5) |
- | |||
|
Sensors |
19 |
10.0 |
14 |
7.2 |
(4) |
9 | |||
|
Total |
113 |
6.8 |
134 |
8.1 |
(30) |
9 | |||
|
Industrial Solutions (3): |
|||||||||
|
Industrial equipment |
61 |
15.4 |
40 |
10.2 |
(7) |
28 | |||
|
Aerospace, defense, oil, and gas |
(5) |
(1.8) |
(2) |
(0.6) |
(3) |
- | |||
|
Energy |
- |
- |
4 |
1.7 |
(4) |
- | |||
|
Total |
56 |
6.6 |
42 |
4.9 |
(14) |
28 | |||
|
Communications Solutions (3): |
|||||||||
|
Data and devices |
10 |
4.3 |
14 |
5.8 |
(4) |
- | |||
|
Subsea communications |
48 |
21.5 |
48 |
21.5 |
- |
- | |||
|
Appliances |
19 |
11.7 |
22 |
13.6 |
(3) |
- | |||
|
Total |
77 |
12.4 |
84 |
13.5 |
(7) |
- | |||
|
Total |
$ 246 |
7.9% |
$ 260 |
8.3% |
$ (51) |
$ 37 | |||
|
Change in Net Sales for the Nine Months Ended June 30, 2017 | |||||||||
|
versus Net Sales for the Nine Months Ended June 24, 2016 | |||||||||
|
Net |
Organic Net |
Acquisitions | |||||||
|
Sales Growth |
Sales Growth (1) |
Translation (2) |
(Divestiture) | ||||||
|
($ in millions) | |||||||||
|
Transportation Solutions (3): |
|||||||||
|
Automotive |
$ 277 |
7.7% |
$ 326 |
9.1% |
$ (49) |
$ - | |||
|
Commercial transportation |
113 |
18.5 |
123 |
20.1 |
(10) |
- | |||
|
Sensors |
38 |
6.8 |
18 |
3.2 |
(10) |
30 | |||
|
Total |
428 |
9.0 |
467 |
9.8 |
(69) |
30 | |||
|
Industrial Solutions (3): |
|||||||||
|
Industrial equipment |
265 |
26.7 |
56 |
5.7 |
(17) |
226 | |||
|
Aerospace, defense, oil, and gas |
(10) |
(1.2) |
(1) |
(0.1) |
(10) |
1 | |||
|
Energy |
2 |
0.4 |
9 |
1.8 |
(7) |
- | |||
|
Total |
257 |
11.2 |
64 |
2.8 |
(34) |
227 | |||
|
Communications Solutions (3): |
|||||||||
|
Data and devices |
(49) |
(6.5) |
34 |
4.1 |
(13) |
(70) | |||
|
Subsea communications |
60 |
9.3 |
60 |
9.3 |
- |
- | |||
|
Appliances |
55 |
12.5 |
63 |
14.0 |
(8) |
- | |||
|
Total |
66 |
3.6 |
157 |
8.5 |
(21) |
(70) | |||
|
Total |
$ 751 |
8.4% |
$ 688 |
7.7% |
$ (124) |
$ 187 | |||
|
(1) Organic net sales growth is a non-GAAP financial measure. See description of non-GAAP financial measures. | |||||||||
|
(2) Represents the change in net sales resulting from changes in foreign currency exchange rates. | |||||||||
|
(3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary. | |||||||||
|
TE CONNECTIVITY LTD. | |||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |||||||||
|
For the Quarter Ended June 30, 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 |
$ 328 |
$ 1 |
$ 3 |
$ - |
$ 332 | ||||
|
Industrial Solutions |
98 |
3 |
14 |
- |
115 | ||||
|
Communications Solutions |
110 |
- |
2 |
- |
112 | ||||
|
Total |
$ 536 |
$ 4 |
$ 19 |
$ - |
$ 559 | ||||
|
Operating Margin |
15.9% |
16.6% | |||||||
|
Other Income (Expense), Net |
$ (4) |
$ - |
$ - |
$ 7 |
$ 3 | ||||
|
Income Tax Expense |
$ (71) |
$ (1) |
$ (3) |
$ (14) |
$ (89) | ||||
|
Effective Tax Rate |
14.1% |
16.7% | |||||||
|
Income from Continuing Operations |
$ 432 |
$ 3 |
$ 16 |
$ (7) |
$ 444 | ||||
|
Diluted Earnings per Share from |
|||||||||
|
Continuing Operations |
$ 1.21 |
$ 0.01 |
$ 0.04 |
$ (0.02) |
$ 1.24 | ||||
|
(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 | |||||||||
|
(2) Income tax benefits associated with pre-separation tax matters and the related impact to other expense pursuant to the tax sharing agreement with | |||||||||
|
(3) See description of non-GAAP financial measures. | |||||||||
|
TE CONNECTIVITY LTD. | |||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |||||||||
|
For the Quarter Ended June 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) | ||||
|
Effective Tax Rate |
446.9% |
17.0% | |||||||
|
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 | |||||||||
|
(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 | |||||||||
|
(3) Includes $1,135 million of income tax benefits associated with the settlement of tax matters for the years 1997 through 2000 which resolved all | |||||||||
|
(4) See description of non-GAAP financial measures. | |||||||||
|
TE CONNECTIVITY LTD. | |||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |||||||||
|
For the Nine Months Ended June 30, 2017 | |||||||||
|
(UNAUDITED) | |||||||||
|
Adjustments |
|||||||||
|
Acquisition |
Restructuring |
||||||||
|
Related |
and Other |
Tax |
Adjusted | ||||||
|
U.S. GAAP |
Charges (1) |
Charges, Net (1) |
Items (2) |
(Non-GAAP) (3) | |||||
|
($ in millions, except per share data) | |||||||||
|
Operating Income: |
|||||||||
|
Transportation Solutions |
$ 971 |
$ 2 |
$ 60 |
$ - |
$ 1,033 | ||||
|
Industrial Solutions |
251 |
8 |
54 |
- |
313 | ||||
|
Communications Solutions |
273 |
- |
11 |
- |
284 | ||||
|
Total |
$ 1,495 |
$ 10 |
$ 125 |
$ - |
$ 1,630 | ||||
|
Operating Margin |
15.5% |
16.9% | |||||||
|
Other Income (Expense), Net |
$ (6) |
$ - |
$ - |
$ 7 |
$ 1 | ||||
|
Income Tax Expense |
$ (164) |
$ (2) |
$ (33) |
$ (66) |
$ (265) | ||||
|
Effective Tax Rate |
11.6% |
17.1% | |||||||
|
Income from Continuing Operations |
$ 1,244 |
$ 8 |
$ 92 |
$ (59) |
$ 1,285 | ||||
|
Diluted Earnings per Share from |
|||||||||
|
Continuing Operations |
$ 3.47 |
$ 0.02 |
$ 0.26 |
$ (0.16) |
$ 3.58 | ||||
|
(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 | |||||||||
|
(2) Includes income tax benefits associated with the tax impacts of certain intercompany transactions and the corresponding reduction in the valuation | |||||||||
|
(3) See description of non-GAAP financial measures. | |||||||||
|
TE CONNECTIVITY LTD. | |||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |||||||||
|
For the Nine Months Ended June 24, 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 |
$ 847 |
$ 6 |
$ 52 |
$ - |
$ 905 | ||||
|
Industrial Solutions |
224 |
22 |
28 |
- |
274 | ||||
|
Communications Solutions |
314 |
- |
(108) |
- |
206 | ||||
|
Total |
$ 1,385 |
$ 28 |
$ (28) |
$ - |
$ 1,385 | ||||
|
Operating Margin |
15.6% |
15.6% | |||||||
|
Other Income (Expense), Net |
$ (631) |
$ - |
$ - |
$ 650 |
$ 19 | ||||
|
Income Tax (Expense) Benefit |
$ 831 |
$ (6) |
$ 13 |
$ (1,111) |
$ (273) | ||||
|
Effective Tax Rate |
(123.5)% |
20.6% | |||||||
|
Income from Continuing Operations |
$ 1,504 |
$ 22 |
$ (15) |
$ (461) |
$ 1,050 | ||||
|
Diluted Earnings per Share from |
|||||||||
|
Continuing Operations |
$ 4.03 |
$ 0.06 |
$ (0.04) |
$ (1.24) |
$ 2.82 | ||||
|
(1) Includes $19 million of acquisition and integration costs and $9 million of non-cash amortization associated with fair value adjustments related to | |||||||||
|
(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 | |||||||||
|
(3) Includes $1,135 million of income tax benefits associated with the settlement of tax matters for the years 1997 through 2000 which resolved all | |||||||||
|
(4) See description of non-GAAP financial measures. | |||||||||
|
TE CONNECTIVITY LTD. | |||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |||||||
|
For the Quarter Ended September 30, 2016 | |||||||
|
(UNAUDITED) | |||||||
|
Adjustments |
|||||||
|
Restructuring |
|||||||
|
Acquisition |
and Other |
||||||
|
Related |
Charges |
Adjusted | |||||
|
U.S. GAAP |
Charges (1) |
(Credits), Net (1) |
(Non-GAAP) (2) | ||||
|
($ in millions, except per share data) | |||||||
|
Operating Income: |
|||||||
|
Transportation Solutions |
$ 344 |
$ 3 |
$ (6) |
$ 341 | |||
|
Industrial Solutions |
119 |
1 |
3 |
123 | |||
|
Communications Solutions |
54 |
- |
33 |
87 | |||
|
Total |
$ 517 |
$ 4 |
$ 30 |
$ 551 | |||
|
Operating Margin |
15.5% |
16.5% | |||||
|
Other Expense, Net |
$ (1) |
$ - |
$ - |
$ (1) | |||
|
Income Tax Expense |
$ (52) |
$ (1) |
$ (15) |
$ (68) | |||
|
Effective Tax Rate |
10.6% |
13.0% | |||||
|
Income from Continuing Operations |
$ 437 |
$ 3 |
$ 15 |
$ 455 | |||
|
Diluted Earnings per Share from |
|||||||
|
Continuing Operations |
$ 1.22 |
$ 0.01 |
$ 0.04 |
$ 1.27 | |||
|
(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 | |||||||
|
(2) See description of non-GAAP financial measures. | |||||||
|
TE CONNECTIVITY LTD. | |||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |||||||||
|
For the Year Ended September 30, 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) | ||||
|
Effective Tax Rate |
(67.0)% |
18.5% | |||||||
|
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 | |||||||||
|
(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 | |||||||||
|
(3) Includes $1,135 million of income tax benefits associated with the settlement of tax matters for the years 1997 through 2000 which resolved all | |||||||||
|
(4) See description of non-GAAP financial measures. | |||||||||
|
TE CONNECTIVITY LTD. | |||||||||||||||||||
|
IMPACT OF ADDITIONAL WEEK (UNAUDITED) | |||||||||||||||||||
|
For the Quarter Ended September 30, 2016 | |||||||||||||||||||
|
Change in Net Sales for the Quarter Ended |
Change in Organic Net Sales for the Quarter Ended | ||||||||||||||||||
|
For the Quarter Ended September 30, 2016 |
For the |
||||||||||||||||||
|
Adjustment |
Adjustment |
Adjustment |
|||||||||||||||||
|
14 Weeks |
Impact of |
13 Weeks |
14 Weeks |
Impact of |
13 Weeks |
14 Weeks |
Impact of |
13 Weeks | |||||||||||
|
U.S. GAAP |
14th Week |
(Non-GAAP) (1)(2) |
U.S. GAAP |
14th Week |
(Non-GAAP) (1)(2) |
(Non-GAAP) (2) |
14th Week |
(Non-GAAP) (1)(2) | |||||||||||
|
($ in millions) | |||||||||||||||||||
|
Net Sales: |
|||||||||||||||||||
|
Transportation Solutions |
|||||||||||||||||||
|
Automotive |
$ 1,311 |
$ (102) |
$ 1,209 |
$ 1,128 |
16.2% |
(9.0)% |
7.2% |
15.3% |
(9.0)% |
6.3% | |||||||||
|
Commercial Transportation |
215 |
(15) |
200 |
190 |
13.2 |
(7.9) |
5.3 |
12.1 |
(7.9) |
4.2 | |||||||||
|
Sensors |
210 |
(13) |
197 |
190 |
10.5 |
(6.8) |
3.7 |
4.2 |
(6.5) |
(2.3) | |||||||||
|
Total |
1,736 |
(130) |
1,606 |
1,508 |
15.1 |
(8.6) |
6.5 |
13.4 |
(8.5) |
4.9 | |||||||||
|
Industrial Solutions |
|||||||||||||||||||
|
Industrial Equipment |
427 |
(32) |
395 |
343 |
24.5 |
(9.3) |
15.2 |
0.7 |
(7.8) |
(7.1) | |||||||||
|
Aerospace, Defense, Oil, and Gas |
299 |
(20) |
279 |
276 |
8.3 |
(7.2) |
1.1 |
8.0 |
(7.1) |
0.9 | |||||||||
|
Energy |
193 |
(13) |
180 |
173 |
11.6 |
(7.6) |
4.0 |
13.4 |
(7.6) |
5.8 | |||||||||
|
Total |
919 |
(65) |
854 |
792 |
16.0 |
(8.2) |
7.8 |
6.0 |
(7.5) |
(1.5) | |||||||||
|
Communications Solutions |
|||||||||||||||||||
|
Data and Devices |
262 |
(21) |
241 |
323 |
(18.9) |
(6.5) |
(25.4) |
(5.8) |
(7.5) |
(13.3) | |||||||||
|
Subsea Communications |
239 |
(11) |
228 |
202 |
18.3 |
(5.4) |
12.9 |
18.3 |
(5.2) |
13.1 | |||||||||
|
Appliances |
176 |
(11) |
165 |
159 |
10.7 |
(6.9) |
3.8 |
10.4 |
(7.4) |
3.0 | |||||||||
|
Total |
677 |
(43) |
634 |
684 |
(1.0) |
(6.3) |
(7.3) |
5.9 |
(6.8) |
(0.9) | |||||||||
|
Total |
$ 3,332 |
$ (238) |
$ 3,094 |
$ 2,984 |
11.7% |
(8.0)% |
3.7% |
9.8% |
(7.9)% |
1.9% | |||||||||
|
Adjustments |
Adjustment |
||||||||||||||||||
|
Acquisition |
Restructuring |
||||||||||||||||||
|
Related |
and Other |
14 Weeks |
Impact of |
13 Weeks |
|||||||||||||||
|
U.S. GAAP |
Charges |
Charges, Net |
(Non-GAAP) (2) |
14th Week |
(Non-GAAP) (1)(2) |
||||||||||||||
|
($ in millions, except per share data) |
|||||||||||||||||||
|
Operating Income |
$ 517 |
$ 4 |
$ 30 |
$ 551 |
$ (55) |
$ 496 |
|||||||||||||
|
Operating Margin |
15.5% |
16.5% |
16.0% |
||||||||||||||||
|
Diluted Earnings per Share from |
|||||||||||||||||||
|
Continuing Operations |
$ 1.22 |
$ 0.01 |
$ 0.04 |
$ 1.27 |
$ (0.13) |
$ 1.14 |
|||||||||||||
|
(1) Excludes the impact of an additional week in the fourth quarter of fiscal 2016. The impact of the additional week was estimated using an average weekly sales figure for the last month of the fiscal year. | |||||||||||||||||||
|
(2) See description of non-GAAP financial measures. | |||||||||||||||||||
|
TE CONNECTIVITY LTD. | |||||||||||||||||||
|
IMPACT OF ADDITIONAL WEEK (UNAUDITED) | |||||||||||||||||||
|
For the Year Ended September 30, 2016 | |||||||||||||||||||
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Change in Net Sales for Fiscal 2016 |
Change in Organic Net Sales for Fiscal 2016 | ||||||||||||||||||
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Fiscal 2016 |
Fiscal 2015 |
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Adjustment |
Adjustment |
Adjustment |
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53 Weeks |
Impact of |
52 Weeks |
53 Weeks |
Impact of |
52 Weeks |
53 Weeks |
Impact of |
52 Weeks | |||||||||||
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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) | |||||||||||
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($ in millions) | |||||||||||||||||||
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Net Sales: |
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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 | |||||||||
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Industrial Solutions |
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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) | |||||||||
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Energy |
696 |
(13) |
683 |
705 |
(1.3) |
(1.8) |
(3.1) |
3.6 |
(1.9) |
1.7 | |||||||||
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Total |
3,215 |
(65) |
3,150 |
3,179 |
1.1 |
(2.0) |
(0.9) |
(2.8) |
(1.9) |
(4.7) | |||||||||
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Communications Solutions |
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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 |
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Acquisition |
Restructuring |
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Related |
and Other |
53 Weeks |
Impact of |
52 Weeks |
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U.S. GAAP |
Charges (3) |
Charges, Net |
Tax Items (4) |
(Non-GAAP) (2) |
53rd Week |
(Non-GAAP) (1)(2) |
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($ in millions, except per share data) |
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Operating Income |
$ 1,902 |
$ 32 |
$ 2 |
$ - |
$ 1,936 |
$ (55) |
$ 1,881 |
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Operating Margin |
15.5% |
15.8% |
15.7% |
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Diluted Earnings per Share from |
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|
Continuing Operations |
$ 5.26 |
$ 0.07 |
$ - |
$ (1.25) |
$ 4.08 |
$ (0.13) |
$ 3.95 |
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(1) Excludes the impact of an additional week in the fourth quarter of fiscal 2016. The impact of the additional week was estimated using an average weekly sales figure for the last month of the fiscal year. | |||||||||||||||||||
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(2) See description of non-GAAP financial measures. | |||||||||||||||||||
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(3) 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. | |||||||||||||||||||
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(4) 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, | |||||||||||||||||||
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TE CONNECTIVITY LTD. | |||
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RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES | |||
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TO FORWARD-LOOKING GAAP FINANCIAL MEASURES | |||
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As of July 26, 2017 | |||
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(UNAUDITED) | |||
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Outlook for |
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Quarter Ending |
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September 29, |
Outlook for | ||
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2017 |
Fiscal 2017 | ||
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Diluted earnings per share from continuing operations (GAAP) |
$1.07 - $1.09 |
$4.54 - 4.56 | |
|
Restructuring and other charges, net |
0.06 |
0.31 | |
|
Acquisition related charges |
0.01 |
0.03 | |
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Tax items |
- |
(0.16) | |
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Adjusted diluted earnings per share from continuing operations (non-GAAP) (1) |
$1.14 - 1.16 |
$4.72 - 4.74 | |
|
Net sales growth (GAAP) |
(5) - (1)% |
5 - 6% | |
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Impact of additional week in fiscal 2016 |
8 |
2 | |
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Net sales growth excluding the impact of the additional week in fiscal 2016 (non-GAAP) (1) |
3 - 7% |
7 - 8% | |
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Translation |
- |
1 | |
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(Acquisitions) divestitures, net |
(1) |
(2) | |
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Organic net sales growth excluding the impact of the additional week in fiscal 2016 (non- |
2 - 6% |
6 - 7% | |
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Effective tax rate (GAAP) |
18.5% |
13.8% | |
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Effective tax rate adjustments (2) |
0.5 |
4.2 | |
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Adjusted effective tax rate (non-GAAP) (1) |
19.0% |
18.0% | |
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(1) See description of non-GAAP financial measures. | |||
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(2) Includes adjustments for special tax items and the tax effect of acquisition related charges and restructuring and other charges, calculated based on | |||
SOURCE TE Connectivity Ltd.
For further information: Media Relations: B.J. Talley, TE Connectivity, 610-893-9553, bj.talley@te.com ; Investor Relations: Sujal Shah, TE Connectivity, 610-893-9790, sujal.shah@te.com