What changed in this filing

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Item 1. Financial Statements

2022-07-29 compared with 2022-04-29 · 122 added, 110 removed, 440 unchanged (35% of the section changed)

3 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions, except per share data)

23 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Other comprehensive income:

Other comprehensive income (loss):

Currency translation

Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes

Gains on cash flow hedges, net of income taxes

Other comprehensive income

Gains (losses) on cash flow hedges, net of income taxes

Other comprehensive income (loss)

Comprehensive income

28 unchanged sentences

Shareholders' equity:

Common shares, CHF 0.57 par value, 336,099,881 shares authorized and issued

Common shares, CHF 0.57 par value, 330,830,781 shares authorized and issued , and 336,099,881 shares authorized and issued , respectively

Accumulated earnings

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Quarter Ended March 25, 2022

For the Quarter Ended June 24, 2022

Common Shares

3 unchanged sentences

(in millions)

Balance at December 24, 2021

Other comprehensive income

Balance at March 25, 2022

Other comprehensive loss

Share-based compensation expense

2 unchanged sentences

Repurchase of common shares

Balance at March 25, 2022

For the Six Months Ended March 25, 2022

Cancellation of treasury shares

Balance at June 24, 2022

For the Nine Months Ended June 24, 2022

Common Shares

4 unchanged sentences

Balance at September 24, 2021

Other comprehensive income

Other comprehensive loss

Share-based compensation expense

2 unchanged sentences

Repurchase of common shares

Balance at March 25, 2022

Cancellation of treasury shares

Balance at June 24, 2022

TE CONNECTIVITY LTD.

1 unchanged sentence

(UNAUDITED) (Continued)

For the Quarter Ended March 26, 2021

For the Quarter Ended June 25, 2021

Common Shares

3 unchanged sentences

(in millions)

Balance at December 25, 2020

Balance at March 26, 2021

Other comprehensive income

3 unchanged sentences

Repurchase of common shares

Balance at March 26, 2021

For the Six Months Ended March 26, 2021

Cancellation of treasury shares

Balance at June 25, 2021

For the Nine Months Ended June 25, 2021

Common Shares

9 unchanged sentences

Repurchase of common shares

Balance at March 26, 2021

Cancellation of treasury shares

Balance at June 25, 2021

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended

Nine Months Ended

(in millions)

Cash flows from operating activities:

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

Income from discontinued operations, net of income taxes

Income from continuing operations

17 unchanged sentences

Cash flows from financing activities:

Net increase in commercial paper

Proceeds from issuance of debt

23 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

5 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

13 unchanged sentences

Employee severance

Property, plant, and equipment and inventories

Property, plant, and equipment and other non-cash charges

Fiscal 2021 Actions:

9 unchanged sentences

During fiscal 2022, we initiated a restructuring program associated with footprint consolidation and cost structure improvements across all segments.

During the six months ended March 25, 2022, we recorded restructuring and related charges of $ 53 million in connection with this program.

We expect to complete all restructuring actions commenced during the six months ended March 25, 2022 by the end of fiscal 2024 and to incur additional charges of approximately $ 12 million.

Fiscal 2021 Actions

During fiscal 2021, we initiated a restructuring program across all segments to optimize our manufacturing footprint and improve the cost structure of the organization.

In connection with this program, during the six months ended March 25, 2022 and March 26, 2021, we recorded net restructuring charges of $ 6 million and $ 153 million, respectively.

We expect to complete all restructuring actions commenced during fiscal 2021 by the end of fiscal 2023 and to incur additional charges of approximately $ 8 million related to employee severance and facility exit costs.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2021 program by segment as of March 25, 2022:

During the nine months ended June 24, 2022, we recorded restructuring and related charges of $ 84 million in connection with this program.

We expect to complete all restructuring actions commenced during the nine months ended June 24, 2022 by the end of fiscal 2024 and to incur additional charges of approximately $ 16 million.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2022 program by segment as of June 24, 2022:

(in millions)

2 unchanged sentences

Communications Solutions

Fiscal 2021 Actions

During fiscal 2021, we initiated a restructuring program across all segments to optimize our manufacturing footprint and improve the cost structure of the organization.

In connection with this program, during the nine months ended June 24, 2022 and June 25, 2021, we recorded net restructuring charges of $ 3 million and $ 162 million, respectively.

We expect additional charges related to fiscal 2021 actions to be insignificant.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes charges incurred for the fiscal 2021 program by segment as of June 24, 2022:

(in millions)

Transportation Solutions

Industrial Solutions

Communications Solutions

Pre-Fiscal 2021 Actions

During the six months ended March 25, 2022 and March 26, 2021, we recorded net restructuring credits of $ 4 million and charges of $ 7 million, respectively, related to pre-fiscal 2021 actions.

During the nine months ended June 24, 2022 and June 25, 2021, we recorded net restructuring credits of $ 2 million and charges of $ 8 million, respectively, related to pre-fiscal 2021 actions.

We expect additional charges related to pre-fiscal 2021 actions to be insignificant.

6 unchanged sentences

Restructuring reserves

During the six months ended March 25, 2022, we acquired one business for a cash purchase price of $ 127 million, net of cash acquired.

The acquisition was reported as part of our Communications Solutions segment from the date of acquisition.

We acquired one business for a cash purchase price of $ 106 million, net of cash acquired, during the six months ended March 26, 2021.

The acquisition was reported as part of our Industrial Solutions segment from the date of acquisition.

During the nine months ended June 24, 2022, we acquired two businesses for a combined cash purchase price of $ 141 million, net of cash acquired.

The acquisitions were reported as part of our Communications Solutions segment from the date of acquisition.

We acquired two businesses for a combined cash purchase price of $ 125 million, net of cash acquired, during the nine months ended June 25, 2021.

The acquisitions were reported as part of our Industrial Solutions segment from the date of acquisition.

Inventories consisted of the following:

13 unchanged sentences

Currency translation and other

March 25, 2022 (1)

(1) At March 25, 2022 and September 24, 2021, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $ 3,091 million, $ 669 million, and $ 489 million, respectively.

During the six months ended March 25, 2022, we recognized goodwill in the Communications Solutions segment in connection with a recent acquisition.

Also during the six months ended March 25, 2022, we recognized purchase price adjustments in the Industrial Solutions segment in connection with prior year acquisitions, including two acquisitions that closed late in the fourth quarter of fiscal 2021.

June 24, 2022 (1)

(1) At June 24, 2022 and September 24, 2021, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $ 3,091 million, $ 669 million, and $ 489 million, respectively.

During the nine months ended June 24, 2022, we recognized goodwill in the Communications Solutions segment in connection with recent acquisitions.

Also during the nine months ended June 24, 2022, we recognized purchase price adjustments in the Industrial Solutions segment in connection with prior year acquisitions, including two acquisitions that closed late in the fourth quarter of fiscal 2021.

See Note 3 for additional information regarding acquisitions.

1 unchanged sentence

Intangible assets consisted of the following:

March 25, 2022

June 24, 2022

September 24, 2021

2 unchanged sentences

Intellectual property

Intangible asset amortization expense was $ 49 million and $ 48 million for the quarters ended March 25, 2022 and March 26, 2021, respectively, and $ 97 million and $ 96 million for the six months ended March 25, 2022 and March 26, 2021, respectively.

At March 25, 2022, the aggregate amortization expense on intangible assets is expected to be as follows:

Intangible asset amortization expense was $ 48 million for both the quarters ended June 24, 2022 and June 25, 2021, and $ 145 million and $ 144 million for the nine months ended June 24, 2022 and June 25, 2021, respectively.

At June 24, 2022, the aggregate amortization expense on intangible assets is expected to be as follows:

(in millions)

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the quarter ended March 25, 2022, Tyco Electronics Group S.A.

During the nine months ended June 24, 2022, Tyco Electronics Group S.A.

(“TEGSA”), our wholly-owned subsidiary, issued $ 600 million aggregate principal amount of 2.50 % senior notes due in February 2032.

1 unchanged sentence

The notes are fully and unconditionally guaranteed as to payment on an unsecured basis by TE Connectivity Ltd.

During the quarter ended March 25, 2022, we reclassified € 550 million of 1.10 % senior notes due in March 2023 from long-term debt to short-term debt on the Condensed Consolidated Balance Sheet.

During the six months ended March 25, 2022, TEGSA completed an early redemption of $ 500 million aggregate principal amount of 3.50 % senior notes due in February 2022.

The fair value of our debt, based on indicative valuations, was approximately $ 4,137 million and $ 4,465 million at March 25, 2022 and September 24, 2021, respectively.

During the nine months ended June 24, 2022, we reclassified € 550 million of 1.10 % senior notes due in March 2023 from long-term debt to short-term debt on the Condensed Consolidated Balance Sheet.

During the nine months ended June 24, 2022, TEGSA completed an early redemption of $ 500 million aggregate principal amount of 3.50 % senior notes due in February 2022.

As of June 24, 2022, TEGSA had $ 237 million of commercial paper outstanding at a weighted-average interest rate of 1.92 %.

TEGSA had no commercial paper outstanding at September 24, 2021.

The fair value of our debt, based on indicative valuations, was approximately $ 4,134 million and $ 4,465 million at June 24, 2022 and September 24, 2021, respectively.

The components of lease cost were as follows:

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

3 unchanged sentences

Cash flow information, including significant non-cash transactions, related to leases was as follows:

Six Months Ended

Nine Months Ended

(in millions)

3 unchanged sentences

(1) These payments are included in cash flows from operating activities, primarily in changes in accrued and other current liabilities.

Commitments and Contingencies

Legal Proceedings

In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

use tax, real estate tax, and transfer tax.

Commitments and Contingencies

Legal Proceedings

Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows.

11 unchanged sentences

The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods.

As of March 25, 2022, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $ 18 million to $ 45 million, and we accrued $ 21 million as the probable loss, which was the best estimate within this range.

As of June 24, 2022, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $ 17 million to $ 45 million, and we accrued $ 20 million as the probable loss, which was the best estimate within this range.

We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows.

1 unchanged sentence

We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows.

At March 25, 2022, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 120 million, excluding those related to our Subsea Communications (“SubCom”) business which are discussed below.

At June 24, 2022, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 134 million, excluding those related to our Subsea Communications (“SubCom”) business which are discussed below.

During fiscal 2019, we sold our SubCom business.

In connection with the sale, we contractually agreed to continue to honor performance guarantees and letters of credit related to the SubCom business’ projects that existed as of the date of sale.

These performance guarantees and letters of credit had a combined value of approximately $ 117 million as of March 25, 2022 and are expected to expire at various dates through fiscal 2027.

These performance guarantees and letters of credit had a combined value of approximately $ 116 million as of June 24, 2022 and are expected to expire at various dates through fiscal 2027.

We have contractual recourse against the SubCom business if we are required to perform on any SubCom guarantees;

however, based on historical experience, we do not anticipate having to perform.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Financial Instruments

1 unchanged sentence

We utilize cross-currency swap contracts to reduce our exposure to foreign currency exchange rate risk associated with certain intercompany loans.

The aggregate notional value of these contracts was € 300 million and € 700 million at March 25, 2022 and September 24, 2021, respectively.

Certain contracts were terminated in the six months ended March 25,

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The aggregate notional value of these contracts was € 200 million and € 700 million at June 24, 2022 and September 24, 2021, respectively.

Certain contracts were terminated during the nine months ended June 24, 2022;

the remaining contracts mature in the fourth quarter of fiscal 2022.

9 unchanged sentences

Other liabilities

At March 25, 2022 and September 24, 2021, collateral received from or paid to our counterparties approximated the net derivative position.

At June 24, 2022 and September 24, 2021, collateral received from or paid to our counterparties approximated the net derivative position.

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 Condensed Consolidated Balance Sheets.

1 unchanged sentence

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

4 unchanged sentences

We hedge our net investment in certain foreign operations using intercompany loans and external borrowings denominated in the same currencies.

The aggregate notional value of these hedges was $ 3,166 million and $ 3,798 million at March 25, 2022 and September 24, 2021, respectively.

The aggregate notional value of these hedges was $ 2,203 million and $ 3,798 million at June 24, 2022 and September 24, 2021, respectively.

We also use a cross-currency swap program to hedge our net investment in certain foreign operations.

The aggregate notional value of the contracts under this program was $ 1,691 million and $ 1,430 million at March 25, 2022 and September 24, 2021, respectively.

The aggregate notional value of the contracts under this program was $ 1,767 million and $ 1,430 million at June 24, 2022 and September 24, 2021, respectively.

Under the terms of these contracts, we receive interest in U.S.

3 unchanged sentences

We are not required to provide collateral for these contracts.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

These cross-currency swap contracts were recorded on the Condensed Consolidated Balance Sheets as follows:

4 unchanged sentences

Other liabilities

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The impacts of our hedge of net investment programs were as follows:

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

4 unchanged sentences

We may utilize forward starting interest rate swap contracts to manage interest rate exposure in periods prior to the anticipated issuance of fixed rate debt.

During the six months ended March 25, 2022, we terminated forward starting interest rate swap contracts with an aggregate notional value of $ 450 million as a result of the issuance of our 2.50 % senior notes due in 2032.

During the nine months ended June 24, 2022, we terminated forward starting interest rate swap contracts with an aggregate notional value of $ 450 million as a result of the issuance of our 2.50 % senior notes due in 2032.

At fiscal year end 2021, these forward starting interest rate swap contracts were recorded on the Condensed Consolidated Balance Sheet as follows;

there were no such balances at March 25, 2022:

there were no such balances at June 24, 2022:

September 24,

4 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Gains recorded in other comprehensive income (loss)

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

Commodity Hedges

1 unchanged sentence

The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in prices of commodities used in production.

These contracts had an aggregate notional value of $ 599 million and $ 512 million at March 25, 2022 and September 24, 2021, respectively, and were designated as cash flow hedges.

These contracts had an aggregate notional value of $ 605 million and $ 512 million at

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 24, 2022 and September 24, 2021, respectively, and were designated as cash flow hedges.

These commodity swap contracts were recorded on the Condensed Consolidated Balance Sheets as follows:

4 unchanged sentences

Other liabilities

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The impacts of these commodity swap contracts were as follows:

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Gains recorded in other comprehensive income (loss)

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

Gains reclassified from accumulated other comprehensive income (loss) into cost of sales

13 unchanged sentences

Net periodic pension benefit cost (credit)

Six Months Ended

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Nine Months Ended

(in millions)

6 unchanged sentences

Net periodic pension benefit cost (credit)

During the six months ended March 25, 2022, we contributed $ 18 million to our non-U.S.

During the nine months ended June 24, 2022, we contributed $ 29 million to our non-U.S.

pension plans.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We recorded income tax expense of $ 136 million and $ 106 million for the quarters ended March 25, 2022 and March 26, 2021, respectively.

The income tax expense for the quarter ended March 25, 2022 included $ 27 million of income tax expense related to the write-down of certain deferred tax assets to the lower tax rate enacted in the canton of Schaffhausen on December 27, 2021.

In addition, the income tax expense for the quarter ended March 25, 2022 included a $ 19 million income tax benefit related to the tax impacts of an intercompany transaction.

Our estimated annual effective tax rate for fiscal 2022 includes a total income tax benefit of approximately $ 75 million related to this transaction, with a portion recognized in the first six months of fiscal 2022 and the remainder to be recognized in the remaining quarters of fiscal 2022.

We recorded income tax expense of $ 246 million and $ 166 million for the six months ended March 25, 2022 and March 26, 2021, respectively.

The income tax expense for the six months ended March 25, 2022 included a $ 36 million income tax benefit related to the tax impacts of the intercompany transaction discussed above and $ 27 million of income tax expense related to the write-down of certain deferred tax assets to the lower tax rate enacted in the canton of Schaffhausen.

In addition, the income tax expense for the six months ended March 25, 2022 included $ 12 million of income tax expense related to an income tax audit of an acquired entity.

As we are entitled to indemnification of pre-acquisition period tax obligations under the terms of the purchase agreement, we recorded an associated indemnification receivable and other income of $ 11 million during the six months ended March 25, 2022.

The income tax expense for the six months ended March 26, 2021 included a $ 29 million income tax benefit related to an Internal Revenue Service approved change in the tax method of depreciating or amortizing certain assets .

During the quarter ended March 25, 2022, we completed additional intercompany transactions that resulted in a non-U.S.

We recorded income tax expense of $ 116 million and $ 124 million for the quarters ended June 24, 2022 and June 25, 2021, respectively.

The income tax expense for the quarter ended June 24, 2022 included a $ 21 million income tax benefit related to the tax impacts of an intercompany transaction.

Our estimated annual effective tax rate for fiscal 2022 includes a total income tax benefit of approximately $ 75 million related to this transaction, with a portion recognized in the nine months ended June 24, 2022 and the remainder to be recognized in the fourth quarter of fiscal 2022.

We recorded income tax expense of $ 362 million and $ 290 million for the nine months ended June 24, 2022 and June 25, 2021, respectively.

The income tax expense for the nine months ended June 24, 2022 included a $ 57 million income tax benefit related to the tax impacts of the intercompany transaction discussed above and $ 27 million of income tax expense related to the write-down of certain deferred tax assets to the lower corporate tax rate enacted in the canton of Schaffhausen.

In addition, the income tax expense for the nine months ended June 24, 2022 included $ 12 million of income tax expense related to an income tax audit of an acquired entity.

The income tax expense for the nine months ended June 25, 2021 included a $ 29 million income tax benefit related to an Internal Revenue Service approved change in the tax method of depreciating or amortizing certain assets .

During the nine months ended June 24, 2022, we completed additional intercompany transactions that resulted in a non-U.S.

subsidiary recording an increase in deferred tax assets for tax loss and credit carryforwards of approximately $ 4.0 billion.

1 unchanged sentence

therefore, we recognized a corresponding increase to the valuation allowance.

Accordingly, there was no impact to the Condensed Consolidated Statement of Operations for the quarter ended March 25, 2022 or Condensed Consolidated Balance Sheet as of March 25, 2022.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that approximately $ 100 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months.

We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of March 25, 2022.

Accordingly, there was no impact to the Condensed Consolidated Statement of Operations for the nine months ended June 24, 2022 or Condensed Consolidated Balance Sheet as of June 24, 2022.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that, as of June 24, 2022, approximately $ 100 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Earnings Per Share

1 unchanged sentence

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Dilutive impact of share-based compensation arrangements

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the quarter and six months ended March 25, 2022, one million 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.

For both the quarter and nine months ended June 24, 2022, one million 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.

Shareholders’ Equity

1 unchanged sentence

In March 2022, our shareholders approved the cancellation of approximately five million shares purchased under our share repurchase program during the period beginning September 26, 2020 and ending September 24, 2021.

The capital reduction by cancellation of these shares is subject to a notice period and filing with the commercial register in Switzerland and is not yet reflected on the Condensed Consolidated Balance Sheet.

The capital reduction by cancellation of these shares was subject to a notice period and filing with the commercial register in Switzerland and became effective in May 2022.

We paid cash dividends to shareholders as follows:

Quarters Ended

Six Months Ended

Nine Months Ended

Dividends paid per common share

1 unchanged sentence

Upon shareholders’ approval of a dividend payment, we record a liability with a corresponding charge to shareholders’ equity.

At March 25, 2022 and September 24, 2021, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $ 723 million and $ 327 million, respectively.

At June 24, 2022 and September 24, 2021, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $ 538 million and $ 327 million, respectively.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Share Repurchase Program

During the quarter ended June 24, 2022, our board of directors authorized an increase of $ 1.5 billion in our share repurchase program.

Common shares repurchased under the share repurchase program were as follows:

Six Months Ended

Nine Months Ended

(in millions)

1 unchanged sentence

Repurchase value

At March 25, 2022, we had $ 839 million of availability remaining under our share repurchase authorization.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

At June 24, 2022, we had $ 2.0 billion of availability remaining under our share repurchase authorization.

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

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Share-based compensation expense

As of March 25, 2022, there was $ 180 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.0 years.

As of June 24, 2022, there was $ 160 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 1.8 years.

During the quarter ended December 24, 2021, we granted the following share-based awards as part of our annual incentive plan grant:

3 unchanged sentences

Performance share awards

As of March 25, 2022, we had 11 million shares available for issuance under the TE Connectivity Ltd.

As of June 24, 2022, we had 11 million shares available for issuance under the TE Connectivity Ltd.

2007 Stock and Incentive Plan, amended and restated as of September 17, 2020.

10 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

15 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

15 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

3 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.

What changed 10-Q

Item 1. Financial Statements