Investor Relations

Email Alerts

Email Address *
Mailing Lists *









Contact IR

Institutional Investors:
Direct Line: 610-893-9435
Click Here to Email

Address:
TE Connectivity
1050 Westlakes Drive
Berwyn, PA 19312

TE Connectivity Main Switchboard:
US 610-893-9800

Connect With Us

TE Connectivity announces second quarter results for fiscal year 2021

April 21, 2021
Significant growth in sales and EPS year over year, exceeding company expectations

SCHAFFHAUSEN, Switzerland, April 21, 2021 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal second quarter ended March 26, 2021.

Second Quarter Highlights

  • Net sales were $3.7 billion, up 17% on a reported basis, and 11% on an organic basis year over year.
  • Orders of $4.6 billion, up 36% year over year.
  • GAAP diluted earnings per share (EPS) from continuing operations were $1.51, and adjusted EPS were $1.57, up 22% year over year.
  • Cash flow from operating activities was $580 million and free cash flow was $477 million, with approximately $340 million returned to shareholders.

"I am very pleased with our performance as well as our team's ability to deliver double digit sales growth and record quarterly adjusted EPS that exceeded our expectations," said TE Connectivity CEO Terrence Curtin. "We delivered strong earnings this quarter, and year-to-date generated free cash flow of $1 billion, also a record for the first half of a fiscal year. It is also encouraging that we are benefiting from both a recovering economic backdrop as well as our leadership positions in long-term technology trends that drive content growth. I am proud of our team's perseverance to serve our customers through a global economic recovery and resulting challenges in the broader supply chain."

Third Quarter FY21 Outlook
For the third quarter of fiscal 2021, the company expects net sales of approximately $3.7 billion, compared to $2.5 billion in the prior year. GAAP diluted EPS from continuing operations are expected to be approximately $1.51, compared to a loss of $0.18 in the prior year.  Adjusted EPS are expected to be approximately $1.57, compared to adjusted EPS of $0.59 in the prior year.  

Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast
The company will hold a conference call today beginning at 8:30 a.m. ET. The dial-in information is provided here:

  • At TE Connectivity's website: investors.te.com
  • By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (866) 211-4092, and for international callers, the dial-in number is (647) 689-6620.
  • A replay of the conference call will be available on TE Connectivity's investor website at investors.te.com at 11:30 a.m. ET on April 21, 2021.

About TE Connectivity
TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications, and the home. With approximately 80,000 employees, including more than 7,500 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Twitter.

Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

  • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management's control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
  • Adjusted Operating Income (Loss) and Adjusted Operating Margin – represent operating income (loss) and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income (loss) and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income (Loss) is a significant component in our incentive compensation plans.
  • Adjusted Other Income (Expense), Net – represents net other income (expense) (the most comparable GAAP financial measure) before special items including tax sharing income related to adjustments to prior period tax returns and other items, if any.
  • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any.
  • Adjusted Income (Loss) from Continuing Operations – represents income (loss) from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.
  • Adjusted Earnings (Loss) Per Share – represents diluted earnings (loss) per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
  • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by continuing operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by continuing operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including net payments related to pre-separation tax matters and cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management's and the Board of Directors' discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results, and the impact on our operations resulting from the coronavirus disease 2019 ("COVID-19"). Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of COVID-19 negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation, including the effects of Swiss tax reform. In addition, the extent to which COVID-19 will impact our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted. Such developments may include the geographic spread of the virus, the severity of the virus, the duration of the outbreak, the impact on our suppliers' and customers' supply chains, the actions that may be taken by various governmental authorities in response to the outbreak in jurisdictions in which we operate, and the possible impact on the global economy and local economies in which we operate.  More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept. 25, 2020 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

 

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


























For the Quarters Ended


For the Six Months Ended


March 26,


March 27,


March 26,


March 27,


2021


2020


2021


2020


(in millions, except per share data)

Net sales

$

3,738


$

3,195


$

7,260


$

6,363

Cost of sales 


2,528



2,166



4,904



4,304

Gross margin


1,210



1,029



2,356



2,059

Selling, general, and administrative expenses


401



352



762



719

Research, development, and engineering expenses


174



158



336



319

Acquisition and integration costs


6



12



14



19

Restructuring and other charges, net


17



22



184



46

Impairment of goodwill




900





900

Operating income (loss)


612



(415)



1,060



56

Interest income


8



5



11



11

Interest expense


(13)



(11)



(28)



(23)

Other income, net


4



11



3



16

Income (loss) from continuing operations before income taxes


611



(410)



1,046



60

Income tax expense


(106)



(42)



(166)



(489)

Income (loss) from continuing operations


505



(452)



880



(429)

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


1



(4)



7



(1)

Net income (loss)

$

506


$

(456)


$

887


$

(430)













Basic earnings (loss) per share:












Income (loss) from continuing operations

$

1.53


$

(1.35)


$

2.66


$

(1.28)

Income (loss) from discontinued operations




(0.01)



0.02



Net income (loss)


1.53



(1.37)



2.68



(1.29)













Diluted earnings (loss) per share:












Income (loss) from continuing operations

$

1.51


$

(1.35)


$

2.64


$

(1.28)

Income (loss) from discontinued operations




(0.01)



0.02



Net income (loss)


1.51



(1.37)



2.66



(1.29)













Weighted-average number of shares outstanding: 












Basic


331



334



331



334

Diluted


334



334



333



334

 

TE CONNECTIVITY LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)














March 26,


September 25,


2021


2020


(in millions, except share data)

Assets






Current assets:






Cash and cash equivalents

$

1,748


$

945

Accounts receivable, net of allowance for doubtful accounts of $35 and $29, respectively


2,921



2,377

Inventories


2,134



1,950

Prepaid expenses and other current assets


619



512

Total current assets


7,422



5,784

Property, plant, and equipment, net


3,662



3,650

Goodwill


5,342



5,224

Intangible assets, net


1,548



1,593

Deferred income taxes


2,204



2,178

Other assets


789



813

Total assets

$

20,967


$

19,242

Liabilities, redeemable noncontrolling interests, and shareholders' equity






Current liabilities:






Short-term debt

$

919


$

694

Accounts payable


1,793



1,276

Accrued and other current liabilities


2,327



1,720

Total current liabilities


5,039



3,690

Long-term debt


3,602



3,452

Long-term pension and postretirement liabilities


1,299



1,336

Deferred income taxes


140



143

Income taxes


277



252

Other liabilities


827



874

Total liabilities


11,184



9,747

Commitments and contingencies






Redeemable noncontrolling interests


114



112

Shareholders' equity:






Common shares, CHF 0.57 par value, 338,953,381 shares authorized and issued


149



149

Accumulated earnings 


10,541



10,348

Treasury shares, at cost, 8,520,155 and 8,295,878 shares, respectively


(775)



(669)

Accumulated other comprehensive loss


(246)



(445)

Total shareholders' equity


9,669



9,383

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

$

20,967


$

19,242

 

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


























For the Quarters Ended


For the Six Months Ended


March 26,


March 27,


March 26,


March 27,


2021


2020


2021


2020


(in millions)

Cash flows from operating activities:












Net income (loss)

$

506


$

(456)


$

887


$

(430)

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


(1)



4



(7)



1

Income (loss) from continuing operations


505



(452)



880



(429)

Adjustments to reconcile income (loss) from continuing operations to net cash provided by
operating activities:












Impairment of goodwill




900





900

Depreciation and amortization


193



180



380



354

Deferred income taxes


(6)



(49)



(48)



345

Non-cash lease cost


29



25



59



52

Provision for losses on accounts receivable and inventories


16



(2)



22



18

Share-based compensation expense


30



15



49



37

Other 


(41)



1



(20)



11

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












Accounts receivable, net


(268)



(116)



(567)



(140)

Inventories


(67)



25



(212)



(151)

Prepaid expenses and other current assets


57



48



(30)



25

Accounts payable


161



(45)



510



49

Accrued and other current liabilities


37



5



125



(180)

Income taxes


17



(9)



34



1

Other


(83)



(45)



38



Net cash provided by operating activities


580



481



1,220



892

Cash flows from investing activities:












Capital expenditures


(142)



(133)



(284)



(309)

Proceeds from sale of property, plant, and equipment


57



1



58



3

Acquisition of businesses, net of cash acquired




(244)



(107)



(359)

Other


8



(2)



10



(2)

Net cash used in investing activities


(77)



(378)



(323)



(667)

Cash flows from financing activities:












Net decrease in commercial paper




(210)





(219)

Proceeds from issuance of debt


661



593



661



593

Repayment of debt


(250)





(280)



Proceeds from exercise of share options


44



13



119



27

Repurchase of common shares


(140)



(269)



(259)



(408)

Payment of common share dividends to shareholders


(159)



(153)



(318)



(307)

Other


(5)



(5)



(24)



(31)

Net cash provided by (used in) financing activities


151



(31)



(101)



(345)

Effect of currency translation on cash


(4)



(18)



7



(11)

Net increase (decrease) in cash, cash equivalents, and restricted cash


650



54



803



(131)

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


1,098



742



945



927

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

$

1,748


$

796


$

1,748


$

796













Supplemental cash flow information:












Interest paid on debt, net

$

29


$

20


$

33


$

24

Income taxes paid, net of refunds


96



101



181



144

 

TE CONNECTIVITY LTD.

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)


























For the Quarters Ended


For the Six Months Ended


March 26,


March 27,


March 26,


March 27,


2021


2020


2021


2020


(in millions)

Net cash provided by continuing operating activities

$

580


$

481


$

1,220


$

892

Excluding:












Cash (collected) paid pursuant to collateral requirements related to cross-
currency swap contracts


(18)



(38)



12



(32)

Capital expenditures, net


(85)



(132)



(226)



(306)

Free cash flow (1)

$

477


$

311


$

1,006


$

554



(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


CONSOLIDATED SEGMENT DATA (UNAUDITED)



















































For the Quarters Ended



For the Six Months Ended



March 26,



March 27,



March 26,



March 27,



2021



2020



2021



2020



($ in millions)



Net Sales





Net Sales





Net Sales





Net Sales




Transportation Solutions

$

2,287





$

1,857





$

4,511





$

3,725




Industrial Solutions


952






962






1,825






1,889




Communications Solutions


499






376






924






749




Total

$

3,738





$

3,195





$

7,260





$

6,363





















































Operating


Operating


Operating


Operating


Operating


Operating


Operating


Operating


Income


Margin


Income (Loss)


Margin


Income


Margin


Income (Loss)


Margin

Transportation Solutions

$

398


17.4

%


$

(606)


(32.6)

%


$

706


15.7

%


$

(290)


(7.8)

%

Industrial Solutions


111


11.7




142


14.8




187


10.2




257


13.6


Communications Solutions


103


20.6




49


13.0




167


18.1




89


11.9


Total

$

612


16.4

%


$

(415)


(13.0)

%


$

1,060


14.6

%


$

56


0.9

%


















































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

$

413


18.1

%


$

322


17.3

%


$

844


18.7

%


$

647


17.4

%

Industrial Solutions


119


12.5




145


15.1




237


13.0




277


14.7


Communications Solutions


105


21.0




52


13.8




180


19.5




97


13.0


Total

$

637


17.0

%


$

519


16.2

%


$

1,261


17.4

%


$

1,021


16.0

%



(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)






































Change in Net Sales for the Quarter Ended March 26, 2021


versus Net Sales for the Quarter Ended March 27, 2020


Net Sales



Organic Net Sales





Acquisitions/


Growth (Decline)



Growth (Decline) (1)



Translation (2)


(Divestiture)


($ in millions)

Transportation Solutions (3):


















Automotive

$

265


19.4

%


$

184


13.5

%


$

81


$

Commercial transportation


88


29.9




73


24.8




15



Sensors


77


38.9




27


13.4




8



42

Total


430


23.2




284


15.3




104



42

Industrial Solutions (3):


















Aerospace, defense, oil, and gas


(51)


(16.0)




(66)


(20.8)




7



8

Industrial equipment


59


21.1




44


15.7




15



Medical


(25)


(13.4)




(25)


(13.4)






Energy


7


3.9




7


4.0




9



(9)

Total


(10)


(1.0)




(40)


(4.2)




31



(1)

Communications Solutions (3):


















Data and devices


60


27.5




52


24.0




8



Appliances


63


39.9




56


35.3




7



Total


123


32.7




108


28.7




15



Total 

$

543


17.0

%


$

352


11.0

%


$

150


$

41
























































Change in Net Sales for the Six Months Ended March 26, 2021


versus Net Sales for the Six Months Ended March 27, 2020


Net Sales



Organic Net Sales





Acquisitions/


Growth (Decline)



Growth (Decline) (1)



Translation (2)


(Divestiture)


($ in millions)

Transportation Solutions (3):


















Automotive

$

489


17.7

%


$

345


12.4

%


$

144


$

Commercial transportation


161


29.2




138


24.9




23



Sensors


136


33.7




34


8.2




13



89

Total


786


21.1




517


13.8




180



89

Industrial Solutions (3):


















Aerospace, defense, oil, and gas


(110)


(17.5)




(134)


(21.4)




13



11

Industrial equipment


91


16.8




65


11.8




26



Medical


(48)


(13.2)




(49)


(13.5)




1



Energy


3


0.8





0.1




12



(9)

Total


(64)


(3.4)




(118)


(6.3)




52



2

Communications Solutions (3):


















Data and devices


75


17.2




62


14.4




13



Appliances


100


32.1




89


28.3




11



Total


175


23.4




151


20.2




24



Total 

$

897


14.1

%


$

550


8.6

%


$

256


$

91



(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

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

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

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Quarter Ended March 26, 2021


(UNAUDITED)



































Adjustments









Acquisition-


Restructuring








Related


and Other


Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


(Non-GAAP) (2)



($ in millions, except per share data)


Operating income:














Transportation Solutions

$

398



$

5


$

10


$

413


Industrial Solutions


111




3



5



119


Communications Solutions


103






2



105


Total 

$

612



$

8


$

17


$

637
















Operating margin


16.4

%









17.0

%















Other income, net

$

4



$


$


$

4
















Income tax expense

$

(106)



$

(2)


$

(2)


$

(110)
















Effective tax rate


17.3

%









17.3

%















Income from continuing operations

$

505



$

6


$

15


$

526
















Diluted earnings per share from
continuing operations

$

1.51



$

0.02


$

0.04


$

1.57




(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) See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Quarter Ended March 27, 2020


(UNAUDITED)















































Adjustments









Acquisition-


Restructuring













Related


and Other


Impairment




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


of Goodwill (1)


Tax Items (2)


(Non-GAAP) (4)



($ in millions, except per share data)


Operating income (loss):




















Transportation Solutions

$

(606)



$

10


$

18


$

900


$


$

322


Industrial Solutions


142




2



1







145


Communications Solutions


49






3







52


Total 

$

(415)



$

12


$

22


$

900


$


$

519






















Operating margin


(13.0)

%















16.2

%





















Other income, net

$

11



$


$


$


$

(8)


$

3






















Income tax expense

$

(42)



$

(2)


$

(4)


$

(4)


$

(31)


$

(83)






















Effective tax rate


(10.2)

%















16.1

%





















Income (loss) from continuing operations

$

(452)



$

10


$

18


$

896


$

(39)


$

433






















Diluted earnings (loss) per share from
continuing operations (3)

$

(1.35)



$

0.03


$

0.05


$

2.67


$

(0.12)


$

1.29




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

(2) Includes an income tax benefit related to pre-separation tax matters and the termination of the tax sharing agreement with Tyco International and Covidien, as well as the related impact to net other income.

(3) U.S. GAAP diluted shares excludes one million of nonvested share awards and options outstanding as the inclusion of these securities would have been antidilutive because of our loss during the period. Such amounts are included in adjusted (non-GAAP) diluted shares.

(4) See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Six Months Ended March 26, 2021


(UNAUDITED)









































Adjustments









Acquisition-


Restructuring










Related


and Other




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


Tax Items (2)


(Non-GAAP) (3)



($ in millions, except per share data)


Operating income:

















Transportation Solutions

$

706



$

10


$

128


$


$

844


Industrial Solutions


187




7



43





237


Communications Solutions


167






13





180


Total 

$

1,060



$

17


$

184


$


$

1,261



















Operating margin


14.6

%












17.4

%


















Other income, net

$

3



$


$


$


$

3



















Income tax expense

$

(166)



$

(4)


$

(34)


$

(29)


$

(233)



















Effective tax rate


15.9

%












18.7

%


















Income from continuing operations

$

880



$

13


$

150


$

(29)


$

1,014



















Diluted earnings per share from
continuing operations

$

2.64



$

0.04


$

0.45


$

(0.09)


$

3.05




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

(2) Income tax benefits related to an Internal Revenue Service approved change in the tax method of depreciating or amortizing certain assets.

(3) See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Six Months Ended March 27, 2020


(UNAUDITED)















































Adjustments









Acquisition-


Restructuring












Related


and Other


Impairment




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


of Goodwill (1)


Tax Items (2)


(Non-GAAP) (4)



($ in millions, except per share data)


Operating income (loss):




















Transportation Solutions

$

(290)



$

15


$

22


$

900


$


$

647


Industrial Solutions


257




4



16







277


Communications Solutions


89






8







97


Total 

$

56



$

19


$

46


$

900


$


$

1,021






















Operating margin


0.9

%















16.0

%





















Other income, net

$

16



$


$


$


$

(8)


$

8






















Income tax expense

$

(489)



$

(3)


$

(4)


$

(4)


$

324


$

(176)






















Effective tax rate


815.0

%















17.3

%





















Income (loss) from continuing operations

$

(429)



$

16


$

42


$

896


$

316


$

841






















Diluted earnings (loss) per share from
continuing operations (3)

$

(1.28)



$

0.05


$

0.13


$

2.67


$

0.94


$

2.50




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

(2) Includes income tax expense related to the tax impacts of certain measures of Swiss tax reform. Also includes an income tax benefit related to pre-separation tax matters and the termination of the tax sharing agreement with Tyco International and Covidien, as well as the related impact to net other income.

(3) U.S. GAAP diluted shares excludes two million of nonvested share awards and options outstanding as the inclusion of these securities would have been antidilutive because of our loss during the period. Such amounts are included in adjusted (non-GAAP) diluted shares.

(4) See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Quarter Ended June 26, 2020


(UNAUDITED)









































Adjustments









Acquisition-


Restructuring










Related


and Other




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


Tax Items (2)


(Non-GAAP) (4)



($ in millions, except per share data)


Operating income (loss):

















Transportation Solutions

$

(1)



$

6


$

55


$


$

60


Industrial Solutions


70




2



40





112


Communications Solutions


65






3





68


Total 

$

134



$

8


$

98


$


$

240



















Operating margin


5.3

%












9.4

%


















Other income, net

$

4



$


$


$


$

4



















Income tax expense

$

(185)



$

(1)


$

(21)


$

170


$

(37)



















Effective tax rate


145.7

%












15.9

%


















Income (loss) from continuing operations

$

(58)



$

7


$

77


$

170


$

196



















Diluted earnings (loss) per share from
continuing operations (3)

$

(0.18)



$

0.02


$

0.23


$

0.51


$

0.59




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

(2) Income tax expense related to an increase to the valuation allowance for certain non-U.S. deferred tax assets.

(3) U.S. GAAP diluted shares excludes one million of nonvested share awards and options outstanding as the inclusion of these securities would have been antidilutive because of our loss during the period. Such amounts are included in adjusted (non-GAAP) diluted shares.

(4) See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Year Ended September 25, 2020


(UNAUDITED)















































Adjustments









Acquisition-


Restructuring












Related


and Other


Impairment




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


of Goodwill (1)


Tax Items (2)


(Non-GAAP) (4)



($ in millions, except per share data)


Operating income (loss):




















Transportation Solutions

$

(93)



$

32


$

113


$

900


$


$

952


Industrial Solutions


412




8



102







522


Communications Solutions


218






42







260


Total 

$

537



$

40


$

257


$

900


$


$

1,734






















Operating margin


4.4

%















14.2

%





















Other income, net

$

20



$


$


$


$

(8)


$

12






















Income tax expense

$

(783)



$

(8)


$

(46)


$

(4)


$

550


$

(291)






















Effective tax rate


149.4

%















17.0

%





















Income (loss) from continuing operations

$

(259)



$

32


$

211


$

896


$

542


$

1,422






















Diluted earnings (loss) per share from
continuing operations (3)

$

(0.78)



$

0.10


$

0.63


$

2.68


$

1.62


$

4.26




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

(2) Includes $355 million of income tax expense related to the tax impacts of certain measures of Swiss tax reform and $226 million of income tax expense related to increases to the valuation allowance for certain deferred tax assets, partially offset by a $31 million income tax benefit related to pre-separation tax matters and the termination of the tax sharing agreement with Tyco International and Covidien.

(3) U.S. GAAP diluted shares excludes two million of nonvested share awards and options outstanding as the inclusion of these securities would have been antidilutive because of our loss during the period. Such amounts are included in adjusted (non-GAAP) diluted shares.

(4) See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES


TO FORWARD-LOOKING GAAP FINANCIAL MEASURES


As of April 21, 2021


(UNAUDITED)






Outlook for



Quarter Ending



June 25,



2021


Diluted earnings per share from continuing operations

$

1.51


Restructuring and other charges, net


0.04


Acquisition-related charges


0.02


Adjusted diluted earnings per share from continuing operations (1)

$

1.57










Net sales growth (decline)


45.2

%

Translation


(5.1)


(Acquisitions) divestitures, net


0.4


Organic net sales growth (decline) (1)


40.5

%





(1) See description of non-GAAP financial measures.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/te-connectivity-announces-second-quarter-results-for-fiscal-year-2021-301273117.html

SOURCE TE Connectivity Ltd.