12 unchanged sentences
During the quarter ended September 25, 2020, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: OTHER INFORMATION
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
7 unchanged sentences
Our Guide to Ethical Conduct also meets the requirements of a code of business conduct and ethics under the listing standards of the NYSE.
−Removed: Our Guide to Ethical Conduct is posted on our website at www.te.com under the heading “Corporate Responsibility—Governance and Environment—Guide to Ethical Conduct.” We also will provide a copy of our Guide to Ethical Conduct to shareholders upon request.
+Added: Our Guide to Ethical Conduct is posted on our website at www.te.com under the heading “Corporate Responsibility—Governance—Compliance.” We also will provide a copy of our Guide to Ethical Conduct to shareholders upon request.
We intend to disclose any amendments to our Guide to Ethical Conduct, as well as any waivers for executive officers or directors, on our website.
25 unchanged sentences
(1) Includes securities issuable upon exercise of outstanding options and rights under the TE Connectivity Ltd.
−Removed: 2007 Stock and Incentive Plan, amended and restated as of March 8, 2017 (the “2017 Plan”), and the Tyco Electronics Limited Savings Related Share Plan.
+Added: 2007 Stock and Incentive Plan, amended and restated as of September 17, 2020 (the “2007 Plan”), and the Tyco Electronics Limited Savings Related Share Plan.
The 2007 Plan provides for the award of annual performance bonuses and long-term performance awards, including share options;
8 unchanged sentences
(3) Does not take into account restricted, performance, or deferred share unit awards that do not have exercise prices.
−Removed: (4) Includes securities remaining available for future issuance under the 2017 Plan, the 2010 Plan, the Tyco Electronics Limited Savings Related Plan, and the Employee Stock Purchase Plan.
−Removed: The 2017 Plan and the 2010 Plan apply weightings of 1.80 and 1.21, respectively, to outstanding nonvested restricted, performance, and deferred share units.
−Removed: The remaining shares issuable under the 2017 Plan, the 2010 Plan, and the Tyco Electronics Limited Savings Plan are increased by forfeitures and cancellations, among other factors.
+Added: (4) Includes securities remaining available for future issuance under the 2007 Plan, the Tyco Electronics Limited Savings Related Plan, and the Employee Stock Purchase Plan.
+Added: The 2007 Plan applies a weighting of 1.80 to outstanding nonvested restricted, performance, deferred share units, and other share-based awards.
+Added: The remaining shares issuable under the 2007 Plan and the Tyco Electronics Limited Savings Plan are increased by forfeitures and cancellations, among other factors.
Amounts include 930,609 shares remaining available for issuance under our Tyco Electronics Limited Savings Related Share Plan and 1,509,673 shares remaining available for issuance under our Employee Stock Purchase Plan.
51 unchanged sentences
August 3, 2017
−Removed: Fifteenth Supplemental Indenture, among Tyco Electronics Group S.A., as issuer, TE Connectivity Ltd., as guarantor, and Deutsche Bank Trust Company Americas, as trustee, dated as of December 5, 2018
−Removed: Current Report on Form 8-K
−Removed: December 6, 2018
−Removed: Tax Sharing Agreement among Tyco International Ltd., Covidien Ltd.
−Removed: and Tyco Electronics Ltd., dated as of June 29, 2007
+Added: Sixteenth Supplemental Indenture among Tyco Electronics Group S.A., as issuer, TE Connectivity Ltd., as guarantor, and Deutsche Bank Trust Company Americas, as trustee, dated February 14, 2020
Current Report on Form 8-K
+Added: February 14, 2020
Amended and Restated Five-Year Senior Credit Agreement dated as of November 14, 2018 among Tyco Electronics Group S.A., as borrower, TE Connectivity Ltd., as guarantor, the lenders party thereto and Bank of America, N.A., as administrative agent
3 unchanged sentences
Annual Incentive Plan (as amended and restated)
−Removed: Annual Report on Form 10-K for the fiscal year ended September 28, 2018
−Removed: November 13, 2018
+Added: Quarterly Report on Form 10-Q for the quarterly period ended December 27, 2019
+Added: January 29, 2020
TE Connectivity Ltd.
−Removed: 2007 Stock and Incentive Plan (amended and restated as of March 8, 2017)
−Removed: Current Report on Form 8-K
−Removed: March 9, 2017
+Added: 2007 Stock and Incentive Plan (amended and restated as of September 17, 2020)
TE Connectivity Ltd.
−Removed: Employee Stock Purchase Plan (amended and restated as of November 13, 2017)
−Removed: Annual Report on Form 10-K for the fiscal year ended September 29, 2017
−Removed: November 14, 2017
+Added: Employee Stock Purchase Plan (amended and restated as of April 8, 2020)
+Added: Quarterly Report on Form 10-Q for the quarterly period ended March 27, 2020
Form of Option Award Terms and Conditions
5 unchanged sentences
Form of Option Award Terms and Conditions for Option Grants Beginning in November 2019
+Added: Annual Report on Form 10-K for the fiscal year ended September 27, 2019
+Added: November 12, 2019
+Added: Form of Option Award Terms and Conditions for Option Grants beginning in September 2020
+Added: Incorporated by Reference Herein
Form of Restricted Unit Award Terms and Conditions
1 unchanged sentence
January 24, 2011
−Removed: Incorporated by Reference Herein
Form of Restricted Stock Unit Award Terms and Conditions for RSU Grants Beginning in November 2017
2 unchanged sentences
Form of Restricted Stock Unit Award Terms and Conditions for RSU Grants Beginning in November 2019
+Added: Annual Report on Form 10-K for the fiscal year ended September 27, 2019
+Added: November 12, 2019
+Added: Form of Restricted Stock Unit Award Terms and Conditions for RSU Grants Beginning in September 2020
Form of Performance Stock Unit Award Terms and Conditions
8 unchanged sentences
Form of Performance Stock Unit Award Terms and Conditions for Performance Cycles Starting in and After Fiscal Year 2019
+Added: Annual Report on Form 10-K for the fiscal year ended September 27, 2019
+Added: November 12, 2019
+Added: Form of Performance Stock Unit Award Terms and Conditions for Performance Cycles Starting in and After Fiscal Year 2021
TE Connectivity Change in Control Severance Plan for Certain U.S.
13 unchanged sentences
November 18, 2009
+Added: Incorporated by Reference Herein
TE Connectivity Ltd.
13 unchanged sentences
December 16, 2015
−Removed: Incorporated by Reference Herein
Employment Agreement between Steven T.
10 unchanged sentences
January 24, 2018
−Removed: Employment Agreement between Kevin N.
−Removed: Rock and TE Connectivity Corporation dated December 15, 2015
−Removed: Quarterly Report on Form 10-Q for the quarterly period ended December 28, 2018
−Removed: January 24, 2019
+Added: Letter Agreement between Kevin N.
+Added: Rock and TE Connectivity Corporation dated October 30, 2020
Credit Support Agreement dated November 2, 2018 by and between Tyco Electronics Group S.A.
and Crown Subsea Communications Holding, Inc.
+Added: Annual Report on Form 10-K for the fiscal year ended September 27, 2019
+Added: November 12, 2019
Subsidiaries of TE Connectivity Ltd.
+Added: Guaranteed Securities
Consent of Independent Registered Public Accounting Firm
6 unchanged sentences
Inline XBRL Taxonomy Extension Calculation Linkbase Document (3)
+Added: Incorporated by Reference Herein
Inline XBRL Taxonomy Extension Definition Linkbase Document (3)
11 unchanged sentences
(4) Formatted in Inline XBRL and contained in exhibit 101
+Added: FORM 10-K SUMMARY
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
29 unchanged sentences
November 10, 2020
+Added: November 10, 2020
Jenkins, Jr., by signing his name hereto, does sign this document on behalf of the above noted individuals, pursuant to powers of attorney duly executed by such individuals, which have been filed as Exhibit 24.1 to this Report.
4 unchanged sentences
Consolidated Statements of Operations for the Fiscal Years Ended September 25, 2020, September 27, 2019, and September 28, 2018
−Removed: Consolidated Statements of Comprehensive Income for the Fiscal Years Ended September 27, 2019, September 28, 2018, and September 29, 2017
+Added: Consolidated Statements of Comprehensive Income (Loss) for the Fiscal Years Ended September 25, 2020, September 27, 2019, and September 28, 2018
Consolidated Balance Sheets as of September 25, 2020 and September 27, 2019
7 unchanged sentences
We have audited the accompanying consolidated balance sheets of TE Connectivity Ltd.
−Removed: and subsidiaries (the "Company") as of September 27, 2019 and September 28, 2018, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows, for each of the three years in the period ended September 27, 2019, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").
+Added: and subsidiaries (the "Company") as of September 25, 2020 and September 27, 2019, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows, for each of the three years in the period ended September 25, 2020, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 25, 2020 and September 27, 2019, and the results of its operations and its cash flows for each of the three years in the period ended September 25, 2020, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of September 25, 2020, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 10, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting.
+Added: Change in Accounting Principle
+Added: As discussed in Note 2 to the financial statements, effective September 28, 2019, the Company adopted FASB Accounting Standards Update 2016-02 which codified Accounting Standards Codification 842, Leases , using the modified retrospective approach.
Basis for Opinion
12 unchanged sentences
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
−Removed: Goodwill —Transportation Solutions Reportable Segment — Refer to Notes 2 and 8 to the financial statements
+Added: Goodwill —Sensors Reporting Unit within the Transportation Solutions Reportable Segment — Refer to Notes 2 and 8 to the financial statements
Critical Audit Matter Description
3 unchanged sentences
These approaches incorporate several assumptions including future growth rates, discount rates, and market activity in assessing fair value and are reporting unit specific.
−Removed: The goodwill balance was $5.7 billion as of September 27, 2019, of which $1.1 billion was allocated to a reporting unit within the Transportation Solutions reportable segment.
−Removed: The fair value of this reporting unit exceeded its carrying amount as of the measurement date and, therefore, no impairment was recognized.
−Removed: We identified goodwill for this reporting unit as a critical audit matter because of the significant judgments made by management to estimate its fair value, especially considering future growth rates were based on an expectation of an increase in net sales in a product portfolio with limited historical operating results and limited available third-party industry reports.
+Added: The goodwill balance was $5.2 billion as of September 25, 2020, of which $0.5 billion was allocated to the Sensors reporting unit within the Transportation Solutions reportable segment.
+Added: As a result of current and projected declines in sales and profitability, due in part to the impact of the COVID-19 pandemic and projected reductions in global automotive production, the Company recorded a partial impairment charge of $900 million during the quarter ended March 27, 2020 for the Sensors reporting unit.
+Added: The fair value of this reporting unit exceeded its carrying amount as of the annual measurement date and, therefore, no additional impairment was recognized.
+Added: We identified goodwill for the Sensors reporting unit as a critical audit matter because of the significant judgments made by management to estimate its fair value, especially considering the reduction of future revenue growth rates and resulting cash flows.
This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to forecasts of future revenue and operating margin and the selection of a discount rate.
How the Critical Audit Matter Was Addressed in the Audit
−Removed: Our audit procedures related to the forecasts of future revenue and operating margin (the “forecasts”), and the selection of a discount rate for a reporting unit within the Transportation Solutions reportable segment included the following, among others:
+Added: Our audit procedures for the $900 million impairment charge and the annual quantitative assessment related to the forecasts of future revenue and operating margin (the “forecasts”), and the selection of a discount rate for the Sensors reporting unit included the following, among others:
• We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over the determination of the fair value, such as controls related to forecasts and management’s selection of the discount rate.
6 unchanged sentences
– Third-party industry reports for similar products.
+Added: – The effects of the COVID-19 pandemic on projections.
• With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate by:
4 unchanged sentences
The Company recognizes deferred income taxes for temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes.
−Removed: A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
+Added: A valuation allowance is provided to offset deferred tax assets
+Added: if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
Future realization of deferred tax assets depends on the existence of sufficient taxable income of the appropriate character prior to expiration.
6 unchanged sentences
• We tested the effectiveness of controls over management’s estimates of the realization of the deferred tax assets, including those over the estimates of taxable income, the approval of tax planning strategies and the determination of whether it is more likely than not that the deferred tax assets will be realized prior to expiration.
+Added: • We evaluated the reasonableness of management’s assessment of the significance and weighting of negative evidence and positive evidence that is objectively verifiable.
• We evaluated management’s ability to accurately estimate taxable income by comparing actual results to management’s historical estimates and evaluating whether there have been any changes that would impact management’s ability to continue accurately estimating taxable income.
1 unchanged sentence
– Historical taxable income.
−Removed: – Internal communications and the Company’s strategic plan approved by management and the board of directors.
+Added: – Internal communications to management and the board of directors.
– Management’s history of carrying out its stated plans and its ability to carry out its plans considering contractual commitments, available financing, or debt covenants.
−Removed: ● We evaluated whether the estimates of future taxable income were consistent with evidence obtained in other areas of the audit.
+Added: • We evaluated whether the estimates of future taxable income were consistent with evidence obtained in other areas of the audit, including the effects of the COVID-19 pandemic on projections.
• We evaluated whether the taxable income in prior carryback years was of the appropriate character and available under the tax law.
10 unchanged sentences
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 25, 2020, based on criteria established in Internal Control—Integrated Framework (2013) issued by COSO.
−Removed: We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the financial statements as of and for the fiscal year ended September 27, 2019, of the Company and our report dated November 12, 2019 expressed an unqualified opinion on those financial statements.
+Added: We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the financial statements as of and for the fiscal year ended September 25, 2020, of the Company and our report dated November 10, 2020 expressed an unqualified opinion on those financial statements and included an explanatory paragraph regarding the Company’s adoption of FASB Accounting Standards Update 2016-02 which codified Accounting Standards Codification 842, Leases .
Basis for Opinion
26 unchanged sentences
Restructuring and other charges, net
+Added: Impairment of goodwill
Operating income
1 unchanged sentence
Interest expense
−Removed: Other income (expense), net
+Added: Other income, net
Income from continuing operations before income taxes
Income tax (expense) benefit
−Removed: Income from continuing operations
+Added: Income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
−Removed: Basic earnings per share:
−Removed: Income from continuing operations
+Added: Net income (loss)
+Added: Basic earnings (loss) per share:
+Added: Income (loss) from continuing operations
Income (loss) from discontinued operations
−Removed: Diluted earnings per share:
−Removed: Income from continuing operations
+Added: Net income (loss)
+Added: Diluted earnings (loss) per share:
+Added: Income (loss) from continuing operations
Income (loss) from discontinued operations
+Added: Net income (loss)
Weighted-average number of shares outstanding:
1 unchanged sentence
TE CONNECTIVITY LTD.
−Removed: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
+Added: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Fiscal Years Ended September 25, 2020, September 27, 2019, and September 28, 2018
(in millions)
+Added: Net income (loss)
Other comprehensive income (loss):
3 unchanged sentences
Other comprehensive income (loss)
−Removed: Comprehensive income
+Added: Comprehensive income (loss)
+Added: comprehensive income attributable to noncontrolling interests
+Added: Comprehensive income (loss) attributable to TE Connectivity Ltd.
See Notes to Consolidated Financial Statements.
8 unchanged sentences
Prepaid expenses and other current assets
−Removed: Assets held for sale
Total current assets
2 unchanged sentences
Deferred income taxes
−Removed: Liabilities and shareholders’ equity
+Added: Liabilities, redeemable noncontrolling interests, and shareholders' equity
Current liabilities:
2 unchanged sentences
Accrued and other current liabilities
−Removed: Liabilities held for sale
Total current liabilities
5 unchanged sentences
Commitments and contingencies (Note 13)
+Added: Redeemable noncontrolling interests
Shareholders' equity:
4 unchanged sentences
Total shareholders' equity
−Removed: Total liabilities and shareholders’ equity
+Added: Total liabilities, redeemable noncontrolling interests, and shareholders' equity
See Notes to Consolidated Financial Statements.
9 unchanged sentences
Adoption of ASU No.
−Removed: Other comprehensive income
+Added: Other comprehensive loss
Share-based compensation expense
2 unchanged sentences
Repurchase of common shares
−Removed: Cancellation of treasury shares
Balance at fiscal year end 2018
5 unchanged sentences
Repurchase of common shares
+Added: Cancellation of treasury shares
Balance at fiscal year end 2019
−Removed: Adoption of ASU No.
−Removed: Other comprehensive loss
+Added: Other comprehensive income
Share-based compensation expense
10 unchanged sentences
Cash flows from operating activities:
+Added: Net income (loss)
(Income) loss from discontinued operations, net of income taxes
−Removed: Income from continuing operations
−Removed: Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
+Added: Income (loss) from continuing operations
+Added: Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities:
+Added: Impairment of goodwill
Depreciation and amortization
Deferred income taxes
+Added: Non-cash lease cost
Provision for losses on accounts receivable and inventories
48 unchanged sentences
● Industrial Solutions —The Industrial Solutions segment is a leading supplier of products that connect and distribute power, data, and signals.
−Removed: Our products are used in the industrial equipment;
−Removed: aerospace, defense, oil, and gas;
+Added: Our products are used in the aerospace, defense, oil, and gas;
+Added: industrial equipment;
and energy markets.
4 unchanged sentences
We have a 52- or 53-week fiscal year that ends on the last Friday of September.
−Removed: Fiscal 2019, 2018, and 2017 were 52 weeks in length and ended on September 27, 2019, September 28, 2018, and September 29, 2017, respectively.
+Added: Fiscal 2020, 2019, and 2018 were each 52 weeks in length and ended on September 25, 2020, September 27, 2019, and September 28, 2018, respectively.
For fiscal years in which there are 53 weeks, the fourth quarter reporting period includes 14 weeks, with the next such occurrence taking place in fiscal 2022.
5 unchanged sentences
Revenue Recognition
−Removed: We account for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , which introduced a single, comprehensive, five-step revenue recognition model.
+Added: We account for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , which is a single, comprehensive, five-step revenue recognition model.
Our revenues are generated principally from the sale of our products.
28 unchanged sentences
Goodwill and Other Intangible Assets
+Added: We account for goodwill and other intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other , as updated by Accounting Standards Update (“ASU”) No.
+Added: 2017-04, Simplifying the Test for Goodwill Impairment .
Intangible assets include both indeterminable-lived residual goodwill and determinable-lived identifiable intangible assets.
Intangible assets with determinable lives primarily include intellectual property, consisting of patents, trademarks, and unpatented technology, and customer relationships.
−Removed: Recoverability estimates range from 1 to 50 years and costs are generally amortized on a straight-line basis.
−Removed: Evaluations of the remaining useful lives of determinable-lived intangible assets are performed on a periodic basis and when events and circumstances warrant.
+Added: Recoverability estimates range from 1 to 50 years and costs are generally
TE CONNECTIVITY LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: amortized on a straight-line basis.
+Added: Evaluations of the remaining useful lives of determinable-lived intangible assets are performed on a periodic basis and when events and circumstances warrant.
At fiscal year end 2020, we had five reporting units, all of which contained goodwill.
2 unchanged sentences
Goodwill impairment is evaluated by comparing the carrying value of each reporting unit to its fair value on the first day of the fourth fiscal quarter of each year or whenever we believe a triggering event requiring a more frequent assessment has occurred.
−Removed: In assessing the existence of a triggering event, management relies on several reporting unit-specific factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and market place data.
+Added: In assessing the existence of a triggering event, management relies on several reporting unit-specific factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and marketplace data.
There are inherent uncertainties related to these factors and management’s judgment in applying these factors to the impairment analysis.
−Removed: When testing for goodwill impairment, we perform a step I goodwill impairment test to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount.
−Removed: If the carrying amount of a reporting unit exceeds its fair value, goodwill may be impaired and a step II goodwill impairment test is performed to measure the amount of impairment, if any.
−Removed: In the step II goodwill impairment test, we compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill.
−Removed: If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess.
−Removed: The implied fair value of goodwill is determined in a manner consistent with how goodwill is recognized in a business combination.
−Removed: We allocate the fair value of a reporting unit to the assets and liabilities of that unit, including intangible assets, as if the reporting unit had been acquired in a business combination.
−Removed: Any excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill.
−Removed: Fair value estimates used in the step I goodwill impairment tests are calculated using an income approach based on the present value of future cash flows of each reporting unit.
−Removed: The income approach has been supported by guideline analyses (a market approach).
+Added: When testing for goodwill impairment, we identify potential impairment by comparing the fair value of a reporting unit with its carrying amount.
+Added: If the carrying amount of a reporting unit exceeds its fair value, a goodwill impairment charge will be recorded for the amount of the excess, limited to the total amount of goodwill allocated to the reporting unit.
+Added: Fair value estimates used in the goodwill impairment tests are calculated using an income approach based on the present value of future cash flows of each reporting unit.
+Added: The income approach is supported by guideline analyses (a market approach).
These approaches incorporate several assumptions including future growth rates, discount rates, income tax rates, and market activity in assessing fair value and are reporting unit specific.
42 unchanged sentences
Derivative financial instruments measured at fair value on a recurring basis are generally valued using level 2 inputs.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Financial instruments other than derivative instruments include cash and cash equivalents, accounts receivable, accounts payable, and debt.
These instruments are recorded on the Consolidated Balance Sheets at book value.
−Removed: For cash and cash equivalents, accounts receivable, and accounts payable, we believe book value approximates fair value due to the short-term nature of these instruments.
+Added: For cash and cash equivalents, accounts receivable, and accounts payable, we believe book value approximates fair value due to the short-
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: term nature of these instruments.
See Note 11 for disclosure of the fair value of debt.
5 unchanged sentences
● Debt— The fair value of debt, including both current and non-current maturities, is derived from quoted market prices or other pricing determinations based on the results of market approach valuation models using observable market data such as recently reported trades, bid and offer information, and benchmark securities (level 2).
+Added: Pension Plans
The funded status of our defined benefit pension plans is recognized on the Consolidated Balance Sheets and is measured as the difference between the fair value of plan assets and the projected benefit obligation at the measurement date.
17 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: We have facility, land, vehicle, and equipment leases that expire at various dates.
+Added: We determine if a contract qualifies as a lease at inception.
+Added: A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
+Added: The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the identified asset and the right to direct the use of the identified asset.
+Added: Lease right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date of the lease based on the present value of remaining lease payments over the lease term.
+Added: Lease ROU assets represent our right to use the underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.
+Added: We do not recognize ROU assets or lease liabilities that arise from short-term leases.
+Added: Since our lease contracts do not contain a readily determinable implicit rate, we determine a fully-collateralized incremental borrowing rate that reflects a similar term to the lease and the economic environment of the applicable country or region in which the asset is leased.
+Added: We have elected to account for fixed lease and non-lease components in our real estate leases as a single lease component;
+Added: other leases generally do not contain non-lease components.
+Added: The non-lease components in our real estate leases include logistics services, warehousing, and other operational costs.
+Added: Many of these costs are variable, fluctuating based on services provided, such as pallets shipped in and out of a location or square footage of space occupied.
+Added: These costs, and any other variable rental costs, are excluded from our ROU assets and lease liabilities, and instead are expensed as incurred.
+Added: Some of our leases may include options to either renew or early terminate the lease.
+Added: The exercise of these options is generally at our sole discretion and would only occur if there is an economic, financial, or business reason to do so.
+Added: Such options are included in the lease term if we determine it is reasonably certain they will be exercised.
Currency Translation
8 unchanged sentences
We recognize termination costs based on requirements established by severance policy, government law, or previous actions.
−Removed: Facility exit costs generally reflect the cost to terminate a facility lease before the end of its term (measured at fair value at the time we cease using the facility) or costs that will continue to be incurred under the facility lease without future economic benefit to us.
+Added: Facility exit costs generally reflect the accelerated rent expense for ROU assets, expected lease termination costs, or costs that will continue to be incurred under the facility lease without future economic benefit to us.
Restructuring activities often result in the disposal or abandonment of assets that require an acceleration of depreciation or impairment reflecting the excess of the assets’ carrying values over fair value.
6 unchanged sentences
The likelihood of a loss with respect to a particular contingency is often difficult to predict, and determining a meaningful estimate of the loss or a range of loss may not be practicable based on information available.
−Removed: In addition, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must continuously be evaluated to determine whether a loss is probable and a reasonable estimate of that loss can be made.
−Removed: When a loss is probable but a reasonable estimate cannot be made, or when a loss is at least reasonably possible, disclosure is provided.
−Removed: Recently Issued Accounting Pronouncements
−Removed: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
−Removed: 2016-02 which codified ASC 842, Leases .
−Removed: This guidance, as subsequently amended, requires lessees to recognize a lease liability and a right-of-use asset for most leases and is effective for us in the first quarter of fiscal 2020.
−Removed: In fiscal 2019, we substantially completed the process of updating policies, internal controls, financial statement disclosures, and systems to incorporate the impact of the new standard in our financial reporting processes.
−Removed: In fiscal 2020, we are adopting the standard using the optional transition method permitted by ASU No.
−Removed: 2018-11, which allows for application of the standard at the adoption date and no restatement of comparative periods.
−Removed: We plan to elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows for the carry forward of historical lease classification of existing and expired leases.
−Removed: We expect to record right-of-use assets and related lease liabilities of approximately $ 530 million on our Consolidated Balance Sheet.
−Removed: Adoption will not have a material impact on our results of operations or cash flows.
+Added: In addition, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and
TE CONNECTIVITY LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: new information must continuously be evaluated to determine whether a loss is probable and a reasonable estimate of that loss can be made.
+Added: When a loss is probable but a reasonable estimate cannot be made, or when a loss is at least reasonably possible, disclosure is provided.
Recently Adopted Accounting Pronouncements
−Removed: In August 2017, the FASB issued ASU No.
−Removed: 2017-12, an update to ASC 815, Derivatives and Hedging .
−Removed: The update improves and simplifies hedge accounting and related disclosures.
−Removed: We elected to early adopt this update, which did not have a material impact on our Consolidated Financial Statements, in fiscal 2019.
−Removed: In October 2016, the FASB issued ASU No.
−Removed: 2016-16, an update to ASC 740, Income Taxes .
−Removed: This guidance requires the recognition of the income tax consequences of intra-entity transfers of assets other than inventory in the period in which the transfer occurs.
−Removed: The update was adopted on a modified retrospective basis in fiscal 2019 and resulted in a $ 443 million cumulative-effect adjustment to beginning accumulated earnings, which represented the net reversal of all balances associated with deferred tax impacts of intra-entity transfers of assets other than inventory.
−Removed: This included a decrease in other assets of $ 798 million, an increase in deferred tax assets of $ 418 million, and a decrease in prepaid expenses and other current assets of $ 63 million on the Consolidated Balance Sheet.
−Removed: In May 2014, the FASB issued ASU No.
−Removed: 2014-09 which codified ASC 606, Revenue from Contracts with Customers .
−Removed: This guidance supersedes ASC 605, Revenue Recognition , and introduces a single, comprehensive, five-step revenue recognition model.
−Removed: ASC 606 also enhances disclosures related to revenue recognition.
−Removed: We adopted ASC 606, as amended, in fiscal 2019 using a modified retrospective approach.
−Removed: Prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for those periods.
−Removed: Transition impacts, which relate primarily to incentive compensation arrangements, were not material to our results of operations or financial position.
−Removed: Because the impact of adoption was immaterial, we have not recorded a cumulative-effect adjustment to beginning accumulated earnings.
+Added: In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No.
+Added: 2017-04, an update to ASC 350.
+Added: The update simplifies the subsequent measurement of goodwill by eliminating step 2 of the goodwill impairment test.
+Added: Under the amendments in the update, goodwill impairment should be tested by comparing the fair value of a reporting unit with its carrying amount.
+Added: An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value;
+Added: however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.
+Added: The amendments are to be applied on a prospective basis.
+Added: We elected to early adopt this update and applied it during the quarter ended March 27, 2020.
+Added: See Note 8 for additional information regarding our interim and annual goodwill impairment tests.
+Added: In February 2016, the FASB issued ASU No.
+Added: 2016-02 which codified ASC 842, Leases .
+Added: This guidance, as subsequently amended, requires lessees to recognize a lease liability and a ROU asset for most leases.
+Added: We adopted ASC 842, as amended, in fiscal 2020 using the optional transition method permitted by ASU No.
+Added: 2018-11, which allows for application of the standard at the adoption date and no restatement of comparative periods.
+Added: We elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the carry forward of historical lease classification of existing and expired leases.
+Added: In addition, we elected to use the hindsight practical expedient in determining the lease term for existing leases.
+Added: As a result of adoption, we recorded ROU assets and related lease liabilities of approximately $ 520 million on the Consolidated Balance Sheet.
+Added: Adoption did not have a material impact on our results of operations or cash flows.
+Added: See Note 12 for additional information regarding leases.
Restructuring and Other Charges, Net
3 unchanged sentences
Gain on divestiture
−Removed: Other charges (credits), net
+Added: Other credits, net
Restructuring and other charges, net
20 unchanged sentences
Employee severance
+Added: Facility and other exit costs
+Added: Property, plant, and equipment
Pre-Fiscal 2018 Actions:
1 unchanged sentence
Facility and other exit costs
−Removed: Property, plant, and equipment
Total fiscal 2020 activity
21 unchanged sentences
Facility and other exit costs
+Added: Property, plant, and equipment
Total fiscal 2018 activity
2 unchanged sentences
Fiscal 2020 Actions
−Removed: During fiscal 2019, we initiated a restructuring program associated with footprint consolidation and structural improvements impacting all segments.
−Removed: In connection with this program, during fiscal 2019, we recorded net restructuring charges of $ 254 million.
−Removed: We expect to complete all restructuring actions commenced during fiscal 2019 by the end of fiscal 2021 and to incur additional charges of approximately $ 35 million related primarily to employee severance and facility exit costs in the Transportation Solutions and Industrial Solutions segments.
+Added: During fiscal 2020, we initiated a restructuring program associated with footprint consolidation and structural improvements, due in part to the COVID-19 pandemic, across all segments.
+Added: In connection with this program, during fiscal 2020, we recorded restructuring charges of $ 250 million.
+Added: We expect to complete all restructuring actions commenced during fiscal 2020 by the end of fiscal 2022 and to incur additional charges of approximately $ 45 million related to all three classes of costs.
The following table summarizes expected, incurred, and remaining charges for the fiscal 2020 program by segment:
4 unchanged sentences
Fiscal 2019 Actions
−Removed: During fiscal 2018, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions and Transportation Solutions segments.
−Removed: In connection with this program, during fiscal 2018, we recorded restructuring charges of $ 142 million.
−Removed: We expect to complete all restructuring actions commenced during fiscal 2018 by the end of fiscal 2020 and anticipate that any additional charges will be insignificant.
+Added: During fiscal 2019, we initiated a restructuring program associated with footprint consolidation and structural improvements impacting all segments.
+Added: In connection with this program, during fiscal 2020 and 2019, we recorded net restructuring charges of $ 5 million and $ 254 million, respectively.
+Added: We expect to complete all restructuring actions commenced during fiscal 2019 by the end of fiscal 2021.
+Added: We anticipate that any additional charges will be insignificant for restructuring actions commenced during fiscal 2019.
Fiscal 2018 Actions
−Removed: During fiscal 2017, we initiated a restructuring program associated with footprint consolidation related to recent acquisitions and structural improvements impacting all segments.
−Removed: In connection with this program, during fiscal 2019, 2018, and 2017, we recorded net restructuring credits of $ 2 million, credits of $ 4 million, and charges of $ 147 million, respectively.
+Added: During fiscal 2018, we initiated a restructuring program associated with footprint consolidation and structural improvements primarily impacting the Industrial Solutions and Transportation Solutions segments.
+Added: In connection with this program, during fiscal 2020 and 2018, we recorded net restructuring charges of $ 4 million and $ 142 million, respectively.
We anticipate that any additional charges will be insignificant for restructuring actions commenced during fiscal 2018.
Pre-Fiscal 2018 Actions
−Removed: During fiscal 2019, 2018, and 2017, we recorded net restructuring charges of $ 3 million, charges of $ 2 million, and credits of $ 1 million, respectively.
+Added: During fiscal 2020, 2019, and 2018, we recorded net restructuring credits of $ 2 million, charges of $ 1 million, and credits of $ 2 million, respectively, related to pre-fiscal 2018 actions.
We anticipate that any additional charges will be insignificant for restructuring actions commenced prior to fiscal 2018.
10 unchanged sentences
In fiscal 2019, we sold our Subsea Communications (“SubCom”) business for net cash proceeds of $ 297 million and incurred a pre-tax loss on sale of $ 86 million, related primarily to the recognition of cumulative translation adjustment losses of $ 67 million and the guarantee liabilities discussed below.
−Removed: The definitive agreement provided that, if the purchaser sells the business within two years of the closing date, we will be entitled to 20 % of the net proceeds of that future sale, as defined in the agreement, in excess of $ 325 million.
−Removed: The sale of the SubCom business, which was previously included in our Communications Solutions segment, represents our exit from the telecommunications market and was significant to our sales and profitability, both to the Communications Solutions segment and to the consolidated company.
+Added: The sale of the SubCom business, which was previously included in our Communications Solutions segment, represented our exit from the telecommunications market and was significant to our sales and profitability, both to the Communications Solutions segment and to the consolidated company.
We concluded that the divestiture was a strategic shift that had a major effect on our operations and financial results.
3 unchanged sentences
In connection with the sale, we contractually agreed to continue to honor performance guarantees and letters of credit related to the SubCom business’ projects that existed as of the date of sale.
−Removed: These guarantees had a combined value of approximately $ 1.55 billion as of fiscal year end 2019 and are expected to expire at various dates through fiscal 2025;
−Removed: however, the majority are expected to expire by fiscal year end 2020.
+Added: These guarantees had a combined value of approximately $ 600 million as of fiscal year end 2020 and are expected to expire at various dates through fiscal 2025.
At the time of sale, we determined that the fair value of these guarantees was $ 12 million, which we recognized by a charge to pre-tax loss on sale.
8 unchanged sentences
Research, development, and engineering expenses
−Removed: Restructuring and other charges (credits), net
−Removed: Operating income (loss)
−Removed: Non-operating income, net
−Removed: Pre-tax income (loss) from discontinued operations
+Added: Restructuring and other charges, net
+Added: Operating loss
+Added: Non-operating expense, net
+Added: Pre-tax loss from discontinued operations
Pre-tax gain (loss) on sale of discontinued operations
−Removed: Income tax (expense) benefit
+Added: Income tax benefit
Income (loss) from discontinued operations, net of income taxes
(1) Included a $ 19 million impairment charge recorded in connection with the sale of our SubCom business.
−Removed: (2) Included a $ 19 million credit related to the SubCom business’ curtailment of a postretirement benefit plan.
TE CONNECTIVITY LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: The following table presents balance sheet information for assets and liabilities held for sale at fiscal year end 2018;
−Removed: there were no such balances at fiscal year end 2019:
−Removed: Fiscal Year End
−Removed: (in millions)
−Removed: Accounts receivable, net
−Removed: Other current assets
−Removed: Property, plant, and equipment, net (1)
−Removed: Total assets held for sale
−Removed: Accounts payable
−Removed: Accrued and other current liabilities
−Removed: Deferred revenue
−Removed: Other liabilities
−Removed: Total liabilities held for sale
−Removed: (1) Included a reduction of $ 19 million related to the impairment charge recorded in connection with the sale of our SubCom business.
+Added: First Sensor AG
+Added: During fiscal 2020, we acquired approximately 72 % of the outstanding shares of First Sensor AG (“First Sensor”), a provider of sensing solutions based in Germany, for € 181 million in cash (equivalent to $ 201 million using an exchange rate of $ 1.11 per €1.00), net of cash acquired.
+Added: As a result of the transaction, we recognized a noncontrolling interest with a fair value of € 96 million (equivalent to $ 107 million) as of the acquisition date.
+Added: The fair value of the noncontrolling interest for First Sensor common shares that were not acquired was determined using the stated price in the Domination and Profit and Loss Transfer Agreement (“DPLTA”) which is considered to be a level 2 observable input under the fair value hierarchy.
+Added: The First Sensor business has been reported as part of our Transportation Solutions segment from the date of acquisition.
+Added: We and First Sensor entered into a DPLTA which was approved by First Sensor shareholders and became effective in July 2020 following registration in the commercial register in Germany.
+Added: Under the terms of the DPLTA, upon its effectiveness, First Sensor minority shareholders can elect either (1) to remain First Sensor minority shareholders and receive recurring annual compensation of € 0.56 per First Sensor share or (2) to put their First Sensor shares in exchange for compensation of € 33.27 per First Sensor share.
+Added: The ultimate amount and timing of any future cash payments related to the DPLTA is uncertain.
+Added: Following the registration of the DPLTA, the First Sensor noncontrolling interest balance of € 96 million (equivalent to $ 108 million using an exchange rate of $ 1.13 per €1.00) was reclassified and is now presented as redeemable noncontrolling interest outside of equity on the Consolidated Balance Sheet as the exercise of the put right by First Sensor minority shareholders is not within our control.
+Added: Other Acquisitions
+Added: During fiscal 2020, we acquired four additional businesses for a combined cash purchase price of $ 135 million, net of cash acquired.
+Added: The acquisitions were reported as part of our Transportation Solutions and Industrial Solutions segments from the date of acquisition.
During fiscal 2019, we acquired three businesses for a combined cash purchase price of $ 296 million, net of cash acquired.
3 unchanged sentences
The acquisitions were reported as part of our Industrial Solutions segment from the date of acquisition.
−Removed: During fiscal 2017, we acquired two businesses for a combined cash purchase price of $ 250 million, net of cash acquired.
−Removed: The acquisitions were reported as part of our Transportation Solutions and Industrial Solutions segments from the date of acquisition.
−Removed: Pending Acquisition
−Removed: During fiscal 2019, we entered into a business combination agreement and commenced a voluntary public tender offer for all outstanding shares of First Sensor AG (“First Sensor”), a provider of sensing solutions based in Germany.
−Removed: The offer was accepted for approximately 72 % of First Sensor’s shares.
−Removed: The transaction, including the assumption of First Sensor’s outstanding net debt and minority interest, is valued at approximately € 307 million.
−Removed: Completion of the offer will be subject to customary closing conditions, including regulatory approvals.
−Removed: We expect to complete the transaction in fiscal 2020.
Inventories consisted of the following:
26 unchanged sentences
Balance at fiscal year end 2019 (1)
+Added: Impairment of goodwill
Purchase price adjustments
2 unchanged sentences
(1) At fiscal year end 2019 and 2018, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $ 2,191 million, $ 669 million, and $ 489 million, respectively.
−Removed: We recognized goodwill in fiscal 2019 and 2018 in connection with recent acquisitions.
+Added: (2) At fiscal year end 2020, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $ 3,091 million, $ 669 million, and $ 489 million, respectively.
+Added: During fiscal 2020, we completed the acquisition of First Sensor and recognized goodwill of $ 215 million in the Transportation Solutions segment.
+Added: Further adjustments to the purchase price allocation may be needed in fiscal 2021.
+Added: In addition, during fiscal 2020 and 2019, we recognized goodwill in connection with other recent acquisitions.
See Note 5 for additional information regarding acquisitions.
−Removed: We completed our annual goodwill impairment test in the fourth quarter of fiscal 2019 and determined that no impairment existed.
+Added: We test goodwill allocated to reporting units for impairment annually during the fourth fiscal quarter, or more frequently if events occur or circumstances exist that indicate that a reporting unit’s carrying value may exceed its fair value.
+Added: As a result of current and projected declines in sales and profitability, due in part to the impact of the COVID-19 pandemic and projected reductions in global automotive production as of March 2020, of the Sensors reporting unit of the Transportation Solutions segment during the quarter ended March 27, 2020, we determined that an indicator of impairment had occurred and goodwill impairment testing of this reporting unit was required.
TE CONNECTIVITY LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: As discussed in Note 2, during the quarter ended March 27, 2020, we adopted ASU No.
+Added: 2017-04 which simplifies the subsequent measurement of goodwill by eliminating step 2 of the goodwill impairment test.
+Added: Under the new standard, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill.
+Added: We determined the fair value of the Sensors reporting unit to be $ 1.0 billion as of March 27, 2020.
+Added: This valuation was based on a discounted cash flows analysis incorporating our estimate of future operating performance, which we consider to be a level 3 unobservable input in the fair value hierarchy, and was corroborated using a market approach valuation.
+Added: The goodwill impairment test indicated that the carrying value of the reporting unit exceeded its fair value by $ 900 million.
+Added: As a result, we recorded a partial impairment charge of $ 900 million in the quarter ended March 27, 2020.
+Added: As of fiscal year end 2020, the Sensors reporting unit had a remaining goodwill allocation of $ 511 million.
+Added: We completed our annual goodwill impairment test in the fourth quarter of fiscal 2020 and determined that no impairment existed.
Intangible Assets, Net
7 unchanged sentences
(in millions)
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Accrued and Other Current Liabilities
5 unchanged sentences
Restructuring reserves
+Added: Lease liability
Income taxes payable
1 unchanged sentence
Interest payable
−Removed: Share repurchase program payable
Accrued and other current liabilities
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Debt was as follows:
2 unchanged sentences
Principal debt:
−Removed: Commercial paper, at a weighted-average interest rate of 2.20 % and 2.35 %, respectively
−Removed: 2.375 % senior notes due 2018
−Removed: 2.35 % senior notes due 2019
+Added: Commercial paper, at a weighted-average interest rate of 2.20 % at fiscal year end 2019
Floating rate senior notes due 2020 (1)
4 unchanged sentences
3.45 % senior notes due 2024
+Added: 0.00 % euro-denominated senior notes due 2025
3.70 % senior notes due 2026
2 unchanged sentences
Unamortized discounts, premiums, and debt issuance costs, net
−Removed: (1) The floating rate senior notes due 2020 bear interest at a rate of three-month London Interbank Offered Rate (“LIBOR”) plus 0.45 % per year.
−Removed: (2) The euro-denominated fixed-to-floating rate senior notes due 2021 bear interest at a rate of 0 % until June 2020 and then at a rate of three-month Euro Interbank Offered Rate (“EURIBOR”) plus 0.30 % per year until maturity.
+Added: Effects of fair value hedge-designated interest rate swap contracts
+Added: (1) The floating rate senior notes due 2020 bore interest at a rate of three-month London Interbank Offered Rate (“LIBOR”) plus 0.45 % per year.
+Added: (2) The euro-denominated fixed-to-floating rate senior notes due 2021 bore interest at a rate of 0 % until June 2020 and then bear interest at a rate of three-month Euro Interbank Offered Rate (“EURIBOR”) plus 0.30 % , with the minimum interest rate of 0 % , per year until maturity.
During fiscal 2020, Tyco Electronics Group S.A.
−Removed: (“TEGSA”), our 100 %-owned subsidiary, issued € 350 million aggregate principal amount of fixed-to-floating rate senior notes due June 2021.
−Removed: In June 2020, we may, at our option, redeem the fixed-to-floating rate senior notes, as a whole, at 100 % of the principal amount.
−Removed: Also, during fiscal 2019, TEGSA issued $ 350 million aggregate principal amount of floating rate senior notes due June 2020.
−Removed: The fixed-to-floating rate senior notes and floating rate senior notes are TEGSA’s unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur.
−Removed: TEGSA has a five-year unsecured senior revolving credit facility (“Credit Facility”) with total commitments of $ 1.5 billion.
−Removed: The Credit Facility was amended in November 2018 primarily to extend the maturity date from December 2020 to November 2023.
−Removed: The amended Credit Facility contains provisions that allow for incremental commitments of up to $ 500 million, an option to temporarily increase the financial ratio covenant following a qualified acquisition, and borrowings in designated currencies.
+Added: (“TEGSA”), our wholly -owned subsidiary, issued € 550 million aggregate principal amount of 0.00 % senior notes due in February 2025.
+Added: The notes are TEGSA’s unsecured senior
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur.
+Added: TEGSA has a five-year unsecured senior revolving credit facility (“Credit Facility”) with a maturity date of November 2023 and total commitments of $ 1.5 billion.
+Added: The Credit Facility contains provisions that allow for incremental commitments of up to $ 500 million, an option to temporarily increase the financial ratio covenant following a qualified acquisition, and borrowings in designated currencies.
TEGSA had no borrowings under the Credit Facility at fiscal year end 2020 or 2019.
1 unchanged sentence
TEGSA is required to pay an annual facility fee ranging from 5.0 to 12.5 basis points based upon the amount of the lenders’ commitments under the Credit Facility and the applicable credit ratings of TEGSA.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The Credit Facility contains a financial ratio covenant providing that if, as of the last day of each fiscal quarter, our ratio of Consolidated Total Debt to Consolidated EBITDA (as defined in the Credit Facility) for the then most recently concluded period of four consecutive fiscal quarters exceeds 3.75 to 1.0, an Event of Default (as defined in the Credit Facility) is triggered.
3 unchanged sentences
Borrowings under the commercial paper program are backed by the Credit Facility.
−Removed: TEGSA’s payment obligations under its senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd.
+Added: TEGSA’s payment obligations under its senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed on an unsecured basis by its parent, TE Connectivity Ltd.
At fiscal year end 2020, principal payments required for debt are as follows:
1 unchanged sentence
The fair value of our debt, based on indicative valuations, was approximately $ 4,550 million and $ 4,278 million at fiscal year end 2020 and 2019, respectively.
+Added: The components of lease cost were as follows:
+Added: (in millions)
+Added: Operating lease cost
+Added: Variable lease cost
+Added: Total lease cost
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: Amounts recognized on the Consolidated Balance Sheet were as follows:
+Added: Fiscal Year End
+Added: ($ in millions)
+Added: Operating lease ROU assets:
+Added: Operating lease liabilities:
+Added: Accrued and other current liabilities
+Added: Other liabilities
+Added: Total operating lease liabilities
+Added: Weighted-average remaining lease term (in years)
+Added: Weighted-average discount rate
+Added: Cash flow information, including significant non-cash transactions, related to leases was as follows:
+Added: (in millions)
+Added: Cash paid for amounts included in the measurement of lease liabilities:
+Added: Payments for operating leases (1)
+Added: ROU assets obtained in exchange for new operating lease liabilities
+Added: (1) These payments are included in cash flows from continuing operating activities, primarily in changes in other liabilities.
+Added: At fiscal year end 2020, the maturities of operating lease liabilities were as follows:
+Added: (in millions)
+Added: Total lease payments
+Added: Present value of lease liabilities
+Added: ASC 840 Comparative Disclosures
+Added: Prior to fiscal 2020, we accounted for our leases in accordance with ASC 840, Leases .
+Added: Under ASC 840, rental expense for operating leases was $ 162 million and $ 141 million for fiscal 2019 and 2018, respectively.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: The following table presents the future minimum lease payments under non-cancelable operating lease obligations as of September 27, 2019 under ASC 840:
+Added: (in millions)
Commitments and Contingencies
7 unchanged sentences
We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: We have facility, land, vehicle, and equipment leases that expire at various dates.
−Removed: Rental expense under these operating leases was $ 162 million, $ 141 million, and $ 147 million for fiscal 2019, 2018, and 2017, respectively.
−Removed: At fiscal year end 2019, future minimum lease payments under non-cancelable operating lease obligations were as follows:
−Removed: (in millions)
−Removed: See “Recently Issued Accounting Pronouncements” in Note 2 for information regarding our adoption of ASC 842, Leases, in fiscal 2020.
In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition.
4 unchanged sentences
See Note 4 for additional information regarding these guarantees and the divestiture of the SubCom business.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Financial Instruments and Fair Value Measurements
We use derivative and non-derivative financial instruments to manage certain exposures to foreign currency, interest rate, investment, and commodity risks.
−Removed: The effects of derivative instruments on the Consolidated Statements of Operations were immaterial for fiscal 2019, 2018, and 2017.
Foreign Currency Exchange Rate Risk
2 unchanged sentences
We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with the cash flow hedge-designated instruments addressing foreign exchange risks will be reclassified into the Consolidated Statement of Operations within the next twelve months .
−Removed: During fiscal 2015, we entered into cross-currency swap contracts with an aggregate notional value of € 1,000 million to reduce our exposure to foreign currency exchange rate risk associated with certain intercompany loans.
+Added: During fiscal 2015, we entered into cross-currency swap contracts to reduce our exposure to foreign currency exchange rate risk associated with certain intercompany loans.
+Added: The aggregate notional value of these contracts was € 700 million and € 1,000 million at fiscal year end 2020 and 2019, respectively.
+Added: Certain contracts were terminated during fiscal 2020;
+Added: the remaining contracts mature in fiscal 2022.
Under the terms of these contracts, which have been designated as cash flow hedges, we make interest payments in euros at 3.50 % per annum and receive interest in U.S.
dollars at a weighted-average rate of 5.34 % per annum.
−Removed: Upon the maturity of these
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: contracts in fiscal 2022, we will pay the notional value of the contracts in euros and receive U.S.
+Added: Upon maturity, we will pay the notional value of the contracts in euros and receive U.S.
dollars from our counterparties.
In connection with the cross-currency swap contracts, both counterparties to each contract are required to provide cash collateral.
−Removed: At fiscal year end 2019, these cross-currency swap contracts were in an asset position of $ 19 million and were recorded in other assets on the Consolidated Balance Sheet.
−Removed: The cross-currency swap contracts were in a liability position of $ 100 million and were recorded in other liabilities on the Consolidated Balance Sheet at fiscal year end 2018.
−Removed: At fiscal year end 2019 and 2018, collateral received from or paid to our counterparties approximated the derivative positions and was recorded in accrued and other current liabilities (when the contracts are in an asset position) or prepaid expenses and other current assets (when the contracts are in a liability position) on the Consolidated Balance Sheets.
+Added: These cross-currency swap contracts were recorded on the Consolidated Balance Sheets as follows:
+Added: Fiscal Year End
+Added: (in millions)
+Added: Other liabilities
+Added: At fiscal year end 2020 and 2019, collateral received from or paid to our counterparties approximated the net derivative position.
+Added: Collateral is recorded in accrued and other current liabilities when the contracts are in a net asset position, or prepaid expenses and other current assets when the contracts are in a net liability position on the Consolidated Balance Sheets.
The impacts of these cross-currency swap contracts were as follows:
6 unchanged sentences
The aggregate notional value of these hedges was $ 3,511 million and $ 3,374 million at fiscal year end 2020 and 2019, respectively.
−Removed: During fiscal 2019, we expanded our cross-currency swap program to hedge our net investment in certain foreign operations.
−Removed: The aggregate notional value of the fiscal 2019 contracts was $ 1,844 million at fiscal year end 2019.
+Added: We also use a cross-currency swap program to hedge our net investment in certain foreign operations.
+Added: The aggregate notional value of the contracts under this program was $ 1,664 million and $ 1,844 million at fiscal year end 2020 and 2019, respectively.
Under the terms of these contracts, we receive interest in U.S.
dollars at a weighted-average rate of 2.4 % per annum and pay no interest.
−Removed: Upon the maturity of these contracts at various dates through fiscal 2023, we will pay the notional value of the contracts in the designated foreign currency and receive U.S.
+Added: Upon the maturity of these contracts at various dates through fiscal 2024, we will pay the notional
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: value of the contracts in the designated foreign currency and receive U.S.
dollars from our counterparties.
We are not required to provide collateral for these contracts.
+Added: These cross-currency swap contracts were recorded on the Consolidated Balance Sheets as follows:
+Added: Fiscal Year End
+Added: (in millions)
+Added: Prepaid expenses and other current assets
+Added: Accrued and other current liabilities
+Added: Other liabilities
The impacts of our hedge of net investment programs were as follows:
1 unchanged sentence
Foreign currency exchange gains (losses) on intercompany loans and external borrowings (1)
−Removed: Gain on cross-currency swap contracts designated as hedges of net investment (2)
−Removed: (1) Foreign currency exchange gains and losses on intercompany loans and external borrowings are recorded as currency translation, a component of accumulated other comprehensive income (loss), and are offset by changes attributable to the translation of the net investment.
−Removed: (2) Gains and losses on cross-currency swap contracts designated as hedges of net investment are recorded as currency translation.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: Gains (losses) on cross-currency swap contracts designated as hedges of net investment (1)
+Added: (1) Recorded as currency translation, a component of accumulated other comprehensive income (loss).
Interest Rate and Investment Risk Management
3 unchanged sentences
We may use forward starting interest rate swap contracts to manage interest rate exposure in periods prior to the anticipated issuance of fixed rate debt.
+Added: During fiscal 2020 and 2019, we entered into forward starting interest rate swap contracts which had an aggregate notional value of $ 450 million and $ 350 million at fiscal year end 2020 and 2019, respectively, and were designated as cash flow hedges.
+Added: These forward starting interest rate swap contracts were recorded on the Consolidated Balance Sheets as follows:
+Added: Fiscal Year End
+Added: (in millions)
+Added: Other liabilities
+Added: The impacts of these forward starting interest rate swap contracts were as follows:
+Added: (in millions)
+Added: Losses recorded in other comprehensive income (loss)
We also utilize investment swap contracts to manage earnings exposure on certain nonqualified deferred compensation liabilities.
2 unchanged sentences
The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in prices of commodities used in production.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
At fiscal year end 2020 and 2019, our commodity hedges had notional values of $ 312 million and $ 316 million, respectively.
1 unchanged sentence
Fair Value Measurements
−Removed: Financial instruments recorded at fair value on a recurring basis, which consist of derivative instruments and marketable securities, were immaterial at fiscal year end 2019 and 2018.
+Added: Financial instruments recorded at fair value on a recurring basis, which consist of marketable securities and derivative instruments not discussed above, were immaterial at fiscal year end 2020 and 2019.
Retirement Plans
2 unchanged sentences
employees, designed in accordance with local customs and practice.
−Removed: The net periodic pension benefit cost for all non-U.S.
+Added: The net periodic pension benefit cost (credit) for all non-U.S.
defined benefit pension plans was as follows:
6 unchanged sentences
Amortization of prior service credit and other
−Removed: Net periodic pension benefit cost
−Removed: Weighted-average assumptions used to determine net pension benefit cost during the fiscal year:
+Added: Net periodic pension benefit cost (credit)
+Added: Weighted-average assumptions used to determine net pension benefit cost (credit) during the fiscal year:
Discount rate
38 unchanged sentences
Amortization of net actuarial loss
−Removed: Current year prior service cost (credit) recorded in accumulated other comprehensive income (loss)
−Removed: Amortization of prior service cost (credit)
−Removed: In fiscal 2019, unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) were primarily the result of lower discount rates, partially offset by favorable asset performance for both non-U.S.
+Added: Current year prior service cost recorded in accumulated other comprehensive income (loss)
+Added: Amortization of prior service credit
+Added: In fiscal 2020, unrecognized actuarial gains recorded in accumulated other comprehensive income (loss) were primarily the result of favorable asset performance for our U.S.
+Added: defined benefit pension plans, partially offset by lower U.S.
+Added: discount rates and unfavorable asset performance for our non-U.S.
defined benefit pension plans as compared to fiscal 2019.
−Removed: In fiscal 2018, unrecognized actuarial gains recorded in accumulated other comprehensive income (loss) were primarily the result of higher discount rates and favorable asset performance for both non-U.S.
+Added: In fiscal 2019, unrecognized actuarial losses recorded in accumulated other comprehensive income (loss) were primarily the result of lower discount rates, partially offset by favorable asset performance for both non-U.S.
defined benefit pension plans as compared to fiscal 2018.
23 unchanged sentences
Equity securities
−Removed: Insurance contracts and other investments
−Removed: Real estate investments
Our common shares are not a direct investment of our pension funds;
36 unchanged sentences
(in millions)
−Removed: equity securities (7)
−Removed: equity securities (7)
Commingled equity funds (1)
19 unchanged sentences
(6) Items to reconcile to fair value of plan assets include amounts receivable for securities sold, amounts payable for securities purchased, and any cash balances, considered to be carried at book value, that are held in the plans.
−Removed: equity securities are valued at the closing price reported on the stock exchange on which the individual securities are traded.
Changes in Level 3 assets in non-U.S.
−Removed: plans were primarily the result of purchases in fiscal 2019 and 2018.
+Added: plans were primarily the result of net investment losses in fiscal 2020 and purchases in 2019.
Defined Contribution Retirement Plans
6 unchanged sentences
The measurement funds correspond to several funds in our 401(k) plans and the account balance fluctuates with the investment returns on those funds.
−Removed: At fiscal year end 2019 and 2018, total deferred compensation liabilities were $ 203 million and $ 189 million, respectively, and were recorded primarily in other liabilities on the Consolidated Balance Sheets.
+Added: At fiscal year end 2020 and 2019, total deferred compensation liabilities were $ 218 million and $ 203 million, respectively, and were recorded in other liabilities on the Consolidated Balance Sheets.
See Note 14 for additional information regarding our risk management strategy related to deferred compensation liabilities.
Postretirement Benefit Plans
−Removed: In addition to providing pension and 401(k) benefits, we also provide certain health care coverage continuation for qualifying retirees from the date of retirement to age 65.
−Removed: The accumulated postretirement benefit obligation was $ 18 million at fiscal year end 2019 and 2018, and the underfunded status of the postretirement benefit plans was included primarily in long-term pension and postretirement liabilities on the Consolidated Balance Sheets.
+Added: In addition to providing pension and 401(k) benefits, we also provide certain health care coverage continuation for qualifying retirees from the date of retirement to age 65 or lifetime, as applicable.
+Added: The accumulated postretirement benefit obligation was $ 17 million and $ 18 million at fiscal year end 2020 and 2019, respectively, and the underfunded status of the postretirement benefit plans was included primarily in long-term pension and postretirement liabilities on the Consolidated Balance Sheets.
Activity during fiscal 2020, 2019, and 2018 was not significant.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Income Tax Expense (Benefit)
4 unchanged sentences
Income tax expense (benefit)
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
components of income from continuing operations before income taxes were as follows:
1 unchanged sentence
Income from continuing operations before income taxes
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The reconciliation between U.S.
9 unchanged sentences
Valuation allowance
+Added: Divestitures and goodwill impairments
Legal entity restructuring and intercompany transactions
1 unchanged sentence
Income tax expense (benefit)
−Removed: federal statutory rate was 21 % for fiscal 2019, 24.58 % for fiscal 2018, and 35 % for fiscal 2017.
+Added: federal statutory rate was 21 % for fiscal 2020 and 2019 and 24.58 % for fiscal 2018.
(2) Excludes items which are separately presented.
−Removed: The income tax benefit for fiscal 2019 included a $ 216 million income tax benefit related to the tax impacts of certain measures of the Switzerland Federal Act on Tax Reform and AHV Financing (“Swiss Tax Reform”), a $ 90 million income tax benefit related to the effective settlement of a tax audit in a non-U.S.
+Added: The income tax expense for fiscal 2020 included $ 355 million of income tax expense related to the tax impacts of certain measures of the Switzerland Federal Act on Tax Reform and AHV Financing (“Swiss Tax Reform”) and an income tax benefit of $ 31 million related to pre-separation tax matters and the termination of the Tax Sharing Agreement.
+Added: See “Swiss Tax Reform” and “Tax Sharing Agreement” below for additional information.
+Added: In addition, the income tax expense for fiscal 2020 included $ 226 million of income tax expense related to increases to the valuation allowance for certain deferred tax assets, related primarily to the COVID-19 pandemic.
+Added: As a result of the pandemic and its negative impact on our current and expected future operating profit and taxable income, we believed it was more likely than not that a portion of our deferred tax assets will not be realized.
+Added: Depending on the duration and severity of COVID-19 disruptions to our business, additional adjustments to our valuation allowance may be required in future periods.
+Added: The pre-tax goodwill impairment charge of $ 900 million recorded during fiscal 2020 resulted in a tax benefit of $ 4 million as the associated goodwill was primarily not deductible for income tax purposes.
+Added: See Note 8 for additional information regarding the impairment of goodwill.
+Added: The income tax benefit for fiscal 2019 included a $ 216 million income tax benefit related to the tax impacts of certain measures of Swiss Tax Reform, a $ 90 million income tax benefit related to the effective settlement of a tax audit in a non-U.S.
jurisdiction, and $ 15 million of income tax expense associated with the tax impacts of certain legal entity restructurings and intercompany transactions.
See “Swiss Tax Reform” below for additional information regarding Swiss Tax Reform.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The income tax benefit for fiscal 2018 included a $ 1,222 million net income tax benefit associated with the tax impacts of certain legal entity restructurings and intercompany transactions that occurred in the quarter ended September 28, 2018.
4 unchanged sentences
See “Tax Cuts and Jobs Act” below for additional information regarding the Act.
−Removed: The income tax expense for fiscal 2017 included a $ 52 million income tax benefit associated with the tax impacts of certain intercompany transactions and the corresponding reduction in the valuation allowance for U.S.
−Removed: tax loss carryforwards, a $ 40 million income tax benefit related to share-based payments and the adoption of ASU No.
−Removed: 2016-09, and a $ 14 million income tax benefit associated with pre-separation tax matters.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Deferred Tax Assets and Liabilities
10 unchanged sentences
Unrecognized income tax benefits
−Removed: Basis difference in subsidiaries
+Added: Lease liabilities
Gross deferred tax assets
2 unchanged sentences
Deferred tax liabilities:
−Removed: Intangible assets
Property, plant, and equipment
+Added: Lease ROU assets
Total deferred tax liabilities
Net deferred tax assets
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Our tax loss and credit carryforwards (tax effected) at fiscal year end 2020 were as follows:
11 unchanged sentences
The valuation allowance for deferred tax assets of $ 4,429 million and $ 4,970 million at fiscal year end 2020 and 2019, respectively, related principally to the uncertainty of the utilization of certain deferred tax assets, primarily tax loss, capital loss, and credit carryforwards in various jurisdictions.
−Removed: During fiscal 2019, tax loss and carryforwards increased
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: primarily as a result of a $ 2,891 million (tax effected) net write-down of investments in subsidiaries in certain jurisdictions, offset by a corresponding increase to the valuation allowance.
+Added: During fiscal 2020, tax loss and credit carryforwards decreased primarily as a result of a $ 818 million (tax effected) recovery of prior years’ net write-downs of investments in subsidiaries in certain jurisdictions, offset by a corresponding decrease to the valuation allowance.
We believe that we will generate sufficient future taxable income to realize the income tax benefits related to the remaining net deferred tax assets on the Consolidated Balance Sheet.
12 unchanged sentences
As of fiscal year end 2020, we had total unrecognized income tax benefits of $ 414 million.
−Removed: If recognized in future years, $ 397 million of these currently unrecognized income tax benefits would impact income tax expense (benefit) and the effective tax rate.
+Added: If recognized in future years, $ 393 million of these currently unrecognized income tax benefits would reduce income tax expense and the effective tax rate.
As of fiscal year end 2019, we had total unrecognized income tax benefits of $ 542 million.
−Removed: If recognized in future years, $ 467 million of these currently unrecognized income tax benefits would impact income tax expense (benefit) and the effective tax rate.
+Added: If recognized in future
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: years, $ 397 million of these currently unrecognized income tax benefits would reduce income tax expense and the effective tax rate.
The following table summarizes the activity related to unrecognized income tax benefits:
7 unchanged sentences
We record accrued interest and penalties related to uncertain tax positions as part of income tax expense (benefit).
−Removed: As of fiscal year end 2019 and 2018, we had $ 42 million and $ 60 million, respectively, of accrued interest and penalties related to uncertain tax positions on the Consolidated Balance Sheets, recorded primarily in income taxes.
−Removed: During fiscal 2019, 2018, and 2017, we recognized income tax benefits of $ 14 million, expense of $ 5 million, and benefits of $ 5 million, respectively, related to interest and penalties on the Consolidated Statements of Operations.
+Added: As of fiscal year end 2020 and 2019, we had $ 42 million of accrued interest and penalties related to uncertain tax positions on the Consolidated Balance Sheets, recorded primarily in income taxes.
+Added: During fiscal 2020, 2019, and 2018, we recognized income tax benefits of $ 1 million, benefits of $ 14 million, and expense of $ 5 million, respectively, related to interest and penalties on the Consolidated Statements of Operations.
We file income tax returns on a unitary, consolidated, or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from 3 to 4 years .
Various state and local income tax returns are currently in the process of examination or administrative appeal.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
subsidiaries file income tax returns in the countries in which they have operations.
24 unchanged sentences
In most jurisdictions, taxing authorities retain the ability to review prior tax years and to adjust any net operating loss and tax credit carryforwards from these years that are utilized in a subsequent period.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that approximately $ 50 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months.
4 unchanged sentences
Swiss Tax Reform eliminates certain preferential tax items and implements new tax rates at both the federal and cantonal levels.
−Removed: Subsequent to the public approval of Swiss Tax Reform, on May 24, 2019, the federal tax authority issued guidance abolishing certain interest deductions effective January 1, 2020.
−Removed: The federal provisions of Swiss Tax Reform were enacted into law in the quarter ended September 27, 2019.
−Removed: Based on our forecast of taxable income and the abolishment of certain interest deductions, we believe it is more likely than not that additional deferred tax assets for tax loss carryforwards in Switzerland will be realized in the future.
+Added: On May 24, 2019, the federal tax authority issued guidance abolishing certain interest deductions effective January 1, 2020.
As a result, during fiscal 2019, we recorded a $ 216 million income tax benefit related primarily to the reduction to the valuation allowance for deferred tax assets.
−Removed: In October 2019, the canton of Schaffhausen enacted Swiss Tax Reform into law.
−Removed: We are currently assessing the impacts of the cantonal implementation, including reductions in tax rates.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: Based on our forecast of taxable income and the abolishment of certain interest deductions, we believed it was more likely than not that additional deferred tax assets for tax loss carryforwards in Switzerland would be realized in the future.
+Added: The federal provisions of Swiss Tax Reform were enacted into law in the quarter ended September 27, 2019.
+Added: In October 2019, the canton of Schaffhausen enacted Swiss Tax Reform into law, including reductions in tax rates.
+Added: During fiscal 2020, we recognized $ 355 million of income tax expense related primarily to cantonal implementation and the resulting write-down of certain deferred tax assets to the lower tax rates.
Tax Cuts and Jobs Act
10 unchanged sentences
Tax Sharing Agreement
−Removed: Under a Tax Sharing Agreement entered into upon our separation from Tyco International plc (“Tyco International”) in fiscal 2007, we, Tyco International, and Covidien plc (“Covidien”) share 31 %, 27 %, and 42 %, respectively, of income tax liabilities that arise from adjustments made by tax authorities to the collective income tax returns for periods prior to and including June 29, 2007.
−Removed: Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications with Tyco International and Covidien.
−Removed: We have substantially settled all U.S.
−Removed: federal income tax matters with the IRS for periods covered under the Tax Sharing Agreement.
−Removed: Certain shared U.S.
−Removed: state and non-U.S.
−Removed: income tax matters remain open.
−Removed: We do not expect these matters will have a material effect on our results of operations, financial position, or cash flows.
−Removed: As a result of subsequent transactions, Tyco International and Covidien now operate as part of Johnson Controls International plc and Medtronic plc, respectively.
−Removed: Earnings Per Share
−Removed: The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows:
+Added: Upon our separation from Tyco International plc in fiscal 2007, we entered into a Tax Sharing Agreement with Tyco International plc (now part of Johnson Controls International plc) and Covidien plc (now part of Medtronic plc) under which we shared certain income tax liabilities for periods prior to and including June 29, 2007.
+Added: Pursuant to the Tax Sharing Agreement, we entered into certain guarantee commitments and indemnifications.
+Added: In fiscal 2020, we, Johnson Controls International plc, and Medtronic plc entered into an agreement to terminate the Tax Sharing Agreement.
+Added: We believe that substantially all income tax matters that may be subject to the Tax Sharing Agreement have been settled with tax authorities and we do not expect any remaining tax matters to have a material effect on our results of operations, financial position, or cash flows.
+Added: Accordingly, during fiscal 2020, we recognized an income tax benefit of $ 31 million and net other income of $ 8 million representing settlement of the remaining shared pre-separation income tax matters and indemnification balances.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: Earnings (Loss) Per Share
+Added: The weighted-average number of shares outstanding used in the computations of basic and diluted earnings (loss) per share were as follows:
(in millions)
Dilutive impact of share-based compensation arrangements
−Removed: The following share options were not included in the computation of diluted earnings per share because the instruments’ underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive:
+Added: For fiscal 2020, there were two million nonvested share awards and options outstanding with underlying exercise prices less than the average market prices of our common shares;
+Added: however, these were excluded from the calculation of diluted loss per share as inclusion would be antidilutive as a result of our loss during the period.
+Added: The following share options were not included in the computation of diluted earnings (loss) per share because the instruments’ underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive:
(in millions)
7 unchanged sentences
dollar, however, as our reporting currency on the Consolidated Financial Statements.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Subject to certain conditions specified in our articles of association, we are authorized to increase our conditional share capital by issuing new shares in aggregate not exceeding 50 % of our authorized shares.
6 unchanged sentences
These capital reductions by cancellation of shares were subject to a notice period and filing with the commercial register in Switzerland.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Contributed Surplus
−Removed: During fiscal 2017, cumulative equity transactions, including dividend activity and treasury share cancellations, reduced our contributed surplus balance to zero with residual activity recorded against accumulated earnings as reflected on the Consolidated Statement of Shareholders’ Equity.
+Added: As a result of cumulative equity transactions, including dividend activity and treasury share cancellations, our contributed surplus balance was reduced to zero with residual activity recorded against accumulated earnings as reflected on the Consolidated Statement of Shareholders’ Equity.
To the extent that the contributed surplus balance continues to be zero, the impact of future transactions that normally would have been recorded as a reduction of contributed surplus will be recorded in accumulated earnings.
5 unchanged sentences
Dividends on our shares must be approved by our shareholders.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Our shareholders approved the following dividends on our common shares:
24 unchanged sentences
At fiscal year end 2020 and 2019, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Consolidated Balance Sheets totaled $ 317 million and $ 308 million, respectively.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Share Repurchase Program
5 unchanged sentences
At fiscal year end 2020, we had $ 1.0 billion of availability remaining under our share repurchase authorization.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Accumulated Other Comprehensive Income (Loss)
8 unchanged sentences
Balance at fiscal year end 2017
−Removed: Other comprehensive income, net of tax:
−Removed: Other comprehensive income before reclassifications
−Removed: Amounts reclassified from accumulated other comprehensive income (loss)
−Removed: Income tax expense
−Removed: Other comprehensive income, net of tax
−Removed: Balance at fiscal year end 2017
Adoption of ASU No.
11 unchanged sentences
Balance at fiscal year end 2019
+Added: Other comprehensive income (loss), net of tax:
+Added: Other comprehensive income (loss) before reclassifications
+Added: Amounts reclassified from accumulated other comprehensive income (loss)
+Added: Income tax expense
+Added: Other comprehensive income (loss), net of tax
+Added: other comprehensive income attributable to noncontrolling interests
+Added: Balance at fiscal year end 2020
(1) Includes hedges of net investment foreign currency exchange gains or losses which offset foreign currency exchange losses or gains attributable to the translation of the net investments.
2 unchanged sentences
See Note 4 for additional information regarding the divestiture of SubCom.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Our equity compensation plans, of which the TE Connectivity Ltd.
−Removed: 2007 Stock and Incentive Plan, amended and restated as of March 8, 2017, is the primary plan, provide for the award of annual performance bonuses and long-term performance awards, including share options;
+Added: 2007 Stock and Incentive Plan, amended and restated as of September 17, 2020 (the “2007 Plan”), is the primary plan, provide for the award of annual performance bonuses and long-term performance awards, including share options;
restricted, performance, and deferred share units;
1 unchanged sentence
As of fiscal year end 2020, our plans provided for a maximum of 77 million shares to be issued as Awards, subject to adjustment as provided under the terms of the plans.
−Removed: A total of 18 million shares remained available for issuance under our plans as of fiscal year end 2019.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: A total of 15 million shares remained available for issuance under the 2007 Plan as of fiscal year end 2020.
Share-Based Compensation Expense
7 unchanged sentences
All restrictions on an award will lapse upon death or disability of the employee.
−Removed: If the employee satisfies retirement requirements, a portion of the award may vest, depending on the terms and conditions of the particular grant.
+Added: If the employee satisfies retirement requirements, all or a portion of the award may vest, depending on the terms and conditions of the particular grant.
Recipients of restricted share units have no voting rights, but do receive dividend equivalents.
9 unchanged sentences
As of fiscal year end 2020, there was $ 72 million of unrecognized compensation expense related to nonvested restricted share awards, which is expected to be recognized over a weighted-average period of 1.8 years.
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Performance Share Awards
4 unchanged sentences
Performance share awards generally vest after a period of three years as determined by the management development and compensation committee.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Performance share award activity was as follows:
9 unchanged sentences
All restrictions on the award will lapse upon death or disability of the employee.
−Removed: If the employee satisfies retirement requirements, a portion of the award may vest, depending on the terms and conditions of the particular grant.
+Added: If the employee satisfies retirement requirements, all or a portion of the award may vest, depending on the terms and conditions of the particular grant.
Options generally vest and become exercisable in equal annual installments over a period of four years and expire ten years after the date of grant.
4 unchanged sentences
Outstanding at fiscal year end 2019
−Removed: ( 1,546,377 )
Outstanding at fiscal year end 2020
1 unchanged sentence
Exercisable at fiscal year end 2020
+Added: TE CONNECTIVITY LTD.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The weighted-average exercise price of share option awards granted during fiscal 2020, 2019, and 2018 was $ 93.39 , $ 76.91 , and $ 93.44 , respectively.
2 unchanged sentences
As of fiscal year end 2020, there was $ 31 million of unrecognized compensation expense related to nonvested share options granted under our share option plans, which is expected to be recognized over a weighted-average period of 1.7 years.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Share-Based Compensation Assumptions
22 unchanged sentences
Corporate expenses, such as headquarters administrative costs, are allocated to the segments based on segment operating income.
−Removed: Intersegment sales were not material and were recorded at selling prices that approximated market prices.
+Added: Intersegment sales are not material.
Corporate assets are allocated to the segments based on segment assets.
7 unchanged sentences
Industrial Solutions:
−Removed: Industrial equipment
Aerospace, defense, oil, and gas
+Added: Industrial equipment
Total Industrial Solutions
3 unchanged sentences
(1) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.
+Added: (2) Effective for fiscal 2020, we are separately presenting net sales in the medical end market.
+Added: Such amounts were previously included in net sales in the industrial equipment end market.
Net sales by geographic region and segment were as follows:
(in millions)
−Removed: Europe/Middle East/Africa (“EMEA”):
+Added: Asia–Pacific:
Transportation Solutions
1 unchanged sentence
Communications Solutions
−Removed: Asia–Pacific:
+Added: Total Asia–Pacific
+Added: Europe/Middle East/Africa (“EMEA”):
Transportation Solutions
1 unchanged sentence
Communications Solutions
−Removed: Total Asia–Pacific
Transportation Solutions
48 unchanged sentences
Restructuring and other charges, net
+Added: Impairment of goodwill
Income (loss) from continuing operations
7 unchanged sentences
Net income (loss)
−Removed: (1) Results for the quarter ended December 28, 2018 included a pre-tax loss of $ 86 million on the sale of our SubCom business which was reported as a discontinued operation on our Consolidated Financial Statements.
−Removed: See Note 4 for additional information regarding discontinued operations.
+Added: (1) Results for the quarter ended December 27, 2019 included $ 355 million of income tax expense related to the tax impacts of certain measures of Swiss Tax Reform.
+Added: See Note 16 for additional information regarding income taxes.
TE CONNECTIVITY LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
+Added: (2) Results for the quarter ended March 27, 2020 included a pre-tax goodwill impairment charge of $ 900 million relating to the Sensors reporting unit in our Transportation Solutions segment.
+Added: See Note 8 for additional information regarding goodwill impairment.
+Added: (3) Results for the quarter ended June 26, 2020 included $ 170 million of income tax expense related to an increase to the valuation allowance for certain non-U.S.
+Added: deferred tax assets.
+Added: See Note 16 for additional information regarding income taxes.
+Added: (4) Results for the quarter ended December 28, 2018 included a pre-tax loss of $ 86 million on the sale of our SubCom business which was reported as a discontinued operation on our Consolidated Financial Statements.
+Added: See Note 4 for additional information regarding discontinued operations.
(5) Results for the quarter ended June 28, 2019 included a $ 214 million income tax benefit related to the tax impacts of certain measures of Swiss Tax Reform and a $ 93 million income tax benefit related to the effective settlement of a tax audit in a non-U.S.
1 unchanged sentence
See Note 16 for additional information regarding income taxes.
−Removed: (3) Results for the quarter ended December 29, 2017 included $ 567 million of income tax expense related to the tax impacts of the Tax Cuts and Jobs Act.
−Removed: See Note 15 for additional information regarding income taxes.
−Removed: (4) Results for the quarter ended September 28, 2018 included a $ 1,222 million net income tax benefit associated with the tax impacts of certain legal entity restructurings and intercompany transactions.
−Removed: See Note 15 for additional information regarding income taxes.
−Removed: Tyco Electronics Group S.A.
−Removed: Tyco Electronics Group S.A.
−Removed: (“TEGSA”), a Luxembourg company and our 100 %-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries.
−Removed: TEGSA is the obligor under our senior notes, commercial paper, and Credit Facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd.
−Removed: The following tables present condensed consolidating financial information for TE Connectivity Ltd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting.
−Removed: Condensed Consolidating Statement of Operations
−Removed: For the Fiscal Year Ended September 27, 2019
−Removed: Consolidating
−Removed: (in millions)
−Removed: Cost of sales
−Removed: Selling, general, and administrative expenses, net (1)
−Removed: Research, development, and engineering expenses
−Removed: Acquisition and integration costs
−Removed: Restructuring and other charges, net
−Removed: Operating income (loss)
−Removed: Interest income
−Removed: Interest expense
−Removed: Other income, net
−Removed: Equity in net income of subsidiaries
−Removed: Equity in net loss of subsidiaries of discontinued operations
−Removed: Intercompany interest income (expense), net
−Removed: Income from continuing operations before income taxes
−Removed: Income tax benefit
−Removed: Income from continuing operations
−Removed: Loss from discontinued operations, net of income taxes
−Removed: Other comprehensive loss
−Removed: Comprehensive income
−Removed: (1) TEGSA selling, general, and administrative expenses include gains of $ 194 million related to intercompany transactions.
−Removed: These gains are offset by corresponding losses recorded by other subsidiaries.
TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: Condensed Consolidating Statement of Operations
−Removed: For the Fiscal Year Ended September 28, 2018
−Removed: Consolidating
−Removed: (in millions)
−Removed: Cost of sales
−Removed: Selling, general, and administrative expenses, net
−Removed: Research, development, and engineering expenses
−Removed: Acquisition and integration costs
−Removed: Restructuring and other charges, net
−Removed: Operating income (loss)
−Removed: Interest income
−Removed: Interest expense
−Removed: Other income, net
−Removed: Equity in net income of subsidiaries
−Removed: Equity in net loss of subsidiaries of discontinued operations
−Removed: Intercompany interest income (expense), net
−Removed: Income from continuing operations before income taxes
−Removed: Income tax benefit
−Removed: Income from continuing operations
−Removed: Loss from discontinued operations, net of income taxes
−Removed: Other comprehensive loss
−Removed: Comprehensive income
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: Condensed Consolidating Statement of Operations
−Removed: For the Fiscal Year Ended September 29, 2017
−Removed: Consolidating
−Removed: (in millions)
−Removed: Cost of sales
−Removed: Selling, general, and administrative expenses, net (1)
−Removed: Research, development, and engineering expenses
−Removed: Acquisition and integration costs
−Removed: Restructuring and other charges, net
−Removed: Operating income (loss)
−Removed: Interest income
−Removed: Interest expense
−Removed: Other expense, net
−Removed: Equity in net income of subsidiaries
−Removed: Equity in net income of subsidiaries of discontinued operations
−Removed: Intercompany interest income (expense), net
−Removed: Income from continuing operations before income taxes
−Removed: Income tax expense
−Removed: Income from continuing operations
−Removed: Income (loss) from discontinued operations, net of income taxes (2)
−Removed: Other comprehensive income
−Removed: Comprehensive income
−Removed: (1) TEGSA selling, general and administrative expenses include losses of $ 1,965 million related to intercompany transactions.
−Removed: These losses are offset by corresponding gains recorded by other subsidiaries.
−Removed: (2) Includes the internal allocation of gains and losses associated with the divestiture of our Broadband Network Solutions business.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: Condensed Consolidating Balance Sheet
−Removed: As of September 27, 2019
−Removed: Consolidating
−Removed: (in millions)
−Removed: Current assets:
−Removed: Cash and cash equivalents
−Removed: Accounts receivable, net
−Removed: Intercompany receivables
−Removed: Prepaid expenses and other current assets
−Removed: Total current assets
−Removed: Property, plant, and equipment, net
−Removed: Intangible assets, net
−Removed: Deferred income taxes
−Removed: Investment in subsidiaries
−Removed: Intercompany loans receivable
−Removed: Liabilities and shareholders’ equity
−Removed: Current liabilities:
−Removed: Short-term debt
−Removed: Accounts payable
−Removed: Accrued and other current liabilities
−Removed: Intercompany payables
−Removed: Total current liabilities
−Removed: Long-term debt
−Removed: Intercompany loans payable
−Removed: Long-term pension and postretirement liabilities
−Removed: Deferred income taxes
−Removed: Other liabilities
−Removed: Total liabilities
−Removed: Total shareholders’ equity
−Removed: Total liabilities and shareholders’ equity
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: Condensed Consolidating Balance Sheet
−Removed: As of September 28, 2018
−Removed: Consolidating
−Removed: (in millions)
−Removed: Current assets:
−Removed: Cash and cash equivalents
−Removed: Accounts receivable, net
−Removed: Intercompany receivables
−Removed: Prepaid expenses and other current assets
−Removed: Assets held for sale
−Removed: Total current assets
−Removed: Property, plant, and equipment, net
−Removed: Intangible assets, net
−Removed: Deferred income taxes
−Removed: Investment in subsidiaries
−Removed: Intercompany loans receivable
−Removed: Liabilities and shareholders’ equity
−Removed: Current liabilities:
−Removed: Short-term debt
−Removed: Accounts payable
−Removed: Accrued and other current liabilities
−Removed: Intercompany payables
−Removed: Liabilities held for sale
−Removed: Total current liabilities
−Removed: Long-term debt
−Removed: Intercompany loans payable
−Removed: Long-term pension and postretirement liabilities
−Removed: Deferred income taxes
−Removed: Other liabilities
−Removed: Total liabilities
−Removed: Total shareholders’ equity
−Removed: Total liabilities and shareholders’ equity
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: C ondensed Consolidating Statement of Cash Flows
−Removed: For the Fiscal Year Ended September 27, 2019
−Removed: Consolidating
−Removed: (in millions)
−Removed: Cash flows from operating activities:
−Removed: Net cash provided by continuing operating activities (1)
−Removed: Net cash used in discontinued operating activities
−Removed: Net cash provided by operating activities
−Removed: Cash flows from investing activities:
−Removed: Capital expenditures
−Removed: Proceeds from sale of property, plant, and equipment
−Removed: Acquisition of businesses, net of cash acquired
−Removed: Proceeds from divestiture of discontinued operation, net of cash retained by sold operation
−Removed: Change in intercompany loans
−Removed: Net cash provided by (used in) continuing investing activities
−Removed: Net cash used in discontinued investing activities
−Removed: Net cash provided by (used in) investing activities
−Removed: Cash flows from financing activities:
−Removed: Changes in parent company equity (2)
−Removed: Net decrease in commercial paper
−Removed: Proceeds from issuance of debt
−Removed: Repayment of debt
−Removed: Proceeds from exercise of share options
−Removed: Repurchase of common shares
−Removed: Payment of common share dividends to shareholders
−Removed: Intercompany distributions (1)
−Removed: Loan activity with parent
−Removed: Transfers to discontinued operations
−Removed: Net cash used in continuing financing activities
−Removed: Net cash provided by discontinued financing activities
−Removed: Net cash used in financing activities
−Removed: Effect of currency translation on cash
−Removed: Net increase in cash, cash equivalents, and restricted cash
−Removed: Cash, cash equivalents, and restricted cash at beginning of fiscal year
−Removed: Cash, cash equivalents, and restricted cash at end of fiscal year
−Removed: (1) During fiscal 2019, other subsidiaries made distributions to TEGSA in the amount of $ 4,311 million and TEGSA made distributions to TE Connectivity Ltd.
−Removed: In the amount of $ 1,260 million.
−Removed: Cash flows are presented based upon the nature of the distributions.
−Removed: (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: Condensed Consolidating Statement of Cash Flows
−Removed: For the Fiscal Year Ended September 28, 2018
−Removed: Consolidating
−Removed: (in millions)
−Removed: Cash flows from operating activities:
−Removed: Net cash provided by continuing operating activities (1)
−Removed: Net cash provided by discontinued operating activities
−Removed: Net cash provided by operating activities
−Removed: Cash flows from investing activities:
−Removed: Capital expenditures
−Removed: Proceeds from sale of property, plant, and equipment
−Removed: Acquisition of businesses, net of cash acquired
−Removed: Intercompany distribution receipts (1)
−Removed: Change in intercompany loans
−Removed: Net cash provided by (used in) continuing investing activities
−Removed: Net cash used in discontinued investing activities
−Removed: Net cash provided by (used in) investing activities
−Removed: Cash flows from financing activities:
−Removed: Changes in parent company equity (2)
−Removed: Net increase in commercial paper
−Removed: Proceeds from issuance of debt
−Removed: Repayment of debt
−Removed: Proceeds from exercise of share options
−Removed: Repurchase of common shares
−Removed: Payment of common share dividends to shareholders
−Removed: Intercompany distributions (1)
−Removed: Loan activity with parent
−Removed: Transfers from discontinued operations
−Removed: Net cash used in continuing financing activities
−Removed: Net cash used in discontinued financing activities
−Removed: Net cash used in financing activities
−Removed: Effect of currency translation on cash
−Removed: Net decrease in cash, cash equivalents, and restricted cash
−Removed: Cash, cash equivalents, and restricted cash at beginning of fiscal year
−Removed: Cash, cash equivalents, and restricted cash at end of fiscal year
−Removed: (1) During fiscal 2018, other subsidiaries made distributions to TEGSA in the amount of $ 505 million and TEGSA made distributions to TE Connectivity Ltd.
−Removed: in the amount of $ 710 million.
−Removed: Cash flows are presented based upon the nature of the distributions.
−Removed: (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.
−Removed: TE CONNECTIVITY LTD.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
−Removed: Condensed Consolidating Statement of Cash Flows
−Removed: For the Fiscal Year Ended September 29, 2017
−Removed: Consolidating
−Removed: (in millions)
−Removed: Cash flows from operating activities:
−Removed: Net cash provided by (used in) continuing operating activities (1)
−Removed: Net cash provided by discontinued operating activities
−Removed: Net cash provided by (used in) operating activities
−Removed: Cash flows from investing activities:
−Removed: Capital expenditures
−Removed: Proceeds from sale of property, plant, and equipment
−Removed: Acquisition of businesses, net of cash acquired
−Removed: Intercompany distribution receipts (1)
−Removed: Change in intercompany loans
−Removed: Net cash used in continuing investing activities
−Removed: Net cash used in discontinued investing activities
−Removed: Net cash used in investing activities
−Removed: Cash flows from financing activities:
−Removed: Changes in parent company equity (2)
−Removed: Net decrease in commercial paper
−Removed: Proceeds from issuance of debt
−Removed: Proceeds from exercise of share options
−Removed: Repurchase of common shares
−Removed: Payment of common share dividends to shareholders
−Removed: Intercompany distributions (1)
−Removed: Loan activity with parent
−Removed: Transfers from discontinued operations
−Removed: Net cash provided by (used in) continuing financing activities
−Removed: Net cash used in discontinued financing activities
−Removed: Net cash provided by (used in) financing activities
−Removed: Effect of currency translation on cash
−Removed: Net increase in cash, cash equivalents, and restricted cash
−Removed: Cash, cash equivalents, and restricted cash at beginning of fiscal year
−Removed: Cash, cash equivalents, and restricted cash at end of fiscal year
−Removed: (1) During fiscal 2017, other subsidiaries made distributions to TEGSA in the amount of $ 696 million and TEGSA made distributions to TE Connectivity Ltd.
−Removed: in the amount of $ 50 million.
−Removed: Cash flows are presented based upon the nature of the distributions.
−Removed: (2) Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.
−Removed: TE CONNECTIVITY LTD.
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.