What changed in this filing

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Item 1. Financial Statements

2023-04-28 compared with 2023-01-27 · 162 added, 73 removed, 395 unchanged (37% of the section changed)

3 unchanged sentences

Quarters Ended

Six Months Ended

(in millions, except per share data)

11 unchanged sentences

Income from continuing operations

Loss from discontinued operations, net of income taxes

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

Basic earnings per share:

Income from continuing operations

Income from discontinued operations

Income (loss) from discontinued operations

Diluted earnings per share:

Income from continuing operations

Income from discontinued operations

Income (loss) from discontinued operations

Weighted-average number of shares outstanding:

3 unchanged sentences

Quarters Ended

Six Months Ended

(in millions)

14 unchanged sentences

Cash and cash equivalents

Accounts receivable, net of allowance for doubtful accounts of $ 45

Accounts receivable, net of allowance for doubtful accounts of $ 46 and $ 45 , respectively

Prepaid expenses and other current assets

17 unchanged sentences

Shareholders' equity:

Common shares, CHF 0.57 par value, 330,830,781 shares authorized and issued

Common shares, CHF 0.57 par value, 322,470,281 shares authorized and issued , and 330,830,781 shares authorized and issued , respectively

Accumulated earnings

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Quarter Ended December 30, 2022

For the Quarter Ended March 31, 2023

Common Shares

3 unchanged sentences

(in millions)

Balance at December 30, 2022

Other comprehensive income

Share-based compensation expense

Exercise of share options

Restricted share award vestings and other activity

Repurchase of common shares

Cancellation of treasury shares

Balance at March 31, 2023

For the Six Months Ended March 31, 2023

Common Shares

Treasury Shares

Comprehensive

Shareholders'

(in millions)

Balance at September 30, 2022

4 unchanged sentences

Repurchase of common shares

Cancellation of treasury shares

Balance at March 31, 2023

TE CONNECTIVITY LTD.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(UNAUDITED) (Continued)

For the Quarter Ended March 25, 2022

Common Shares

Treasury Shares

Comprehensive

Shareholders'

(in millions)

Balance at December 24, 2021

For the Quarter Ended December 24, 2021

Other comprehensive income

Share-based compensation expense

Exercise of share options

Restricted share award vestings and other activity

Repurchase of common shares

Balance at March 25, 2022

For the Six Months Ended March 25, 2022

Common Shares

9 unchanged sentences

Repurchase of common shares

Balance at December 24, 2021

Balance at March 25, 2022

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Quarters Ended

Six Months Ended

(in millions)

Cash flows from operating activities:

Loss from discontinued operations, net of income taxes

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

Income from continuing operations

5 unchanged sentences

Share-based compensation expense

Impairment of held for sale businesses

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

11 unchanged sentences

Cash flows from financing activities:

Net increase (decrease) in commercial paper

Net decrease in commercial paper

Proceeds from issuance of debt

Repayment of debt

22 unchanged sentences

Quarters Ended

Six Months Ended

(in millions)

3 unchanged sentences

Restructuring and other charges, net

Restructuring Charges, Net

Net restructuring and related charges by segment were as follows:

Quarters Ended

Six Months Ended

(in millions)

13 unchanged sentences

Employee severance

Facility and other exit costs

Property, plant, and equipment

7 unchanged sentences

Fiscal 2023 Actions

During fiscal 2023, we initiated a restructuring program associated with cost structure improvements primarily in the Transportation Solutions and Communications Solutions segments.

During the quarter ended December 30, 2022, we recorded restructuring charges of $ 105 million in connection with this program.

We expect to complete all restructuring actions commenced during the quarter ended December 30, 2022 by the end of fiscal 2024, and we expect additional charges related to the actions commenced during the quarter ended December 30, 2022 to be insignificant.

During fiscal 2023, we initiated a restructuring program associated with cost structure improvements across all segments.

During the six months ended March 31, 2023, we recorded restructuring charges of $ 161 million in connection with this program.

We expect to complete all restructuring actions commenced during the six months ended March 31, 2023 by the end of fiscal 2025 and to incur additional charges of approximately $ 19 million related to employee severance, facility exit costs, and accelerated depreciation on property, plant, and equipment.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2023 program by segment as of March 31, 2023:

(in millions)

Transportation Solutions

Industrial Solutions

Communications Solutions

Fiscal 2022 Actions

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

In connection with this program, during the quarter ended December 24, 2021, we recorded restructuring and related charges of $ 33 million.

In connection with this program, during the six months ended March 31, 2023 and March 25, 2022, we recorded net restructuring and related charges of $ 5 million and $ 53 million, respectively.

We expect to complete all restructuring actions commenced during fiscal 2022 by the end of fiscal 2024 and to incur additional charges of approximately $ 16 million related primarily to employee severance and facility exit costs.

The following table summarizes charges incurred for the fiscal 2022 program by segment as of December 30, 2022:

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes expected, incurred, and remaining charges for the fiscal 2022 program by segment as of March 31, 2023:

(in millions)

3 unchanged sentences

Pre-Fiscal 2022 Actions

During the quarter ended December 30, 2022, we recorded restructuring credits of $ 1 million related to pre-fiscal 2022 actions.

We expect that any additional charges related to restructuring actions commenced prior to 2022 will be insignificant.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the six months ended March 25, 2022, we recorded net restructuring charges of $ 2 million related to pre-fiscal 2022 actions.

We expect that any additional charges related to restructuring actions commenced prior to fiscal 2022 will be insignificant.

Total Restructuring Reserves

5 unchanged sentences

Restructuring reserves

On December 30, 2022, we acquired one business for a cash purchase price of $ 109 million, net of cash acquired.

Due to the timing of the transaction, which was reported as part of our Industrial Solutions segment, we preliminarily allocated the purchase price to goodwill and identifiable intangible assets.

Our valuation of identifiable intangible assets, assets acquired, and liabilities assumed is currently in process;

therefore, the current allocation is subject to adjustment upon finalization of the valuations.

The amount of these potential adjustments could be significant.

We acquired one business for a cash purchase price of $ 125 million, net of cash acquired, during the quarter ended December 24, 2021.

During the six months ended March 31, 2023, we sold two businesses for net cash proceeds of $ 51 million.

In connection with the divestitures, we recorded pre-tax impairment charges and a net pre-tax gain on sales, which totaled to a net charge of $ 2 million.

The businesses sold were both reported in our Industrial Solutions segment.

Additionally, during the six months ended March 31, 2023, we recorded a pre-tax impairment charge of $ 60 million in connection with a held for sale business in the Transportation Solutions segment.

During the six months ended March 25, 2022, we sold two businesses for net cash proceeds of $ 16 million and recognized a net pre-tax gain of $ 10 million on the transactions.

The businesses sold were reported in our Transportation Solutions and Industrial Solutions segments.

During the six months ended March 31, 2023, we acquired one business for a cash purchase price of $ 108 million, net of cash acquired.

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

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

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

Also during the quarter ended December 24, 2021, we finalized the purchase price allocation of certain fiscal 2021 acquisitions, which included the recognition of $ 25 million of cash acquired.

Also during the six months ended March 25, 2022, we finalized the purchase price allocation of certain fiscal 2021 acquisitions, which included the recognition of $ 25 million of cash acquired.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Inventories consisted of the following:

4 unchanged sentences

Finished goods

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The changes in the carrying amount of goodwill by segment were as follows:

4 unchanged sentences

Currency translation and other

December 30, 2022 (1)

(1) At December 30, 2022 and September 30, 2022, 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 quarter ended December 30, 2022, we recognized goodwill in the Industrial Solutions segment in connection with a recent acquisition.

March 31, 2023 (1)

(1) At March 31, 2023 and September 30, 2022, 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 31, 2023, we recognized goodwill in the Industrial Solutions segment in connection with a recent acquisition.

See Note 3 for additional information regarding acquisitions.

1 unchanged sentence

Intangible assets consisted of the following:

December 30, 2022

March 31, 2023

September 30, 2022

2 unchanged sentences

Intellectual property

Intangible asset amortization expense was $ 46 million and $ 48 million for the quarters ended December 30, 2022 and December 24, 2021, respectively.

At December 30, 2022, the aggregate amortization expense on intangible assets is expected to be as follows:

(in millions)

Remainder of fiscal 2023

Intangible asset amortization expense was $ 49 million for both the quarters ended March 31, 2023 and March 25, 2022, and $ 95 million and $ 97 million for the six months ended March 31, 2023 and March 25, 2022, respectively.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of December 30, 2022, Tyco Electronics Group S.A.

(“TEGSA”), our wholly-owned subsidiary, had $ 231 million of commercial paper outstanding at a weighted-average interest rate of 4.70 %.

At March 31, 2023, the aggregate amortization expense on intangible assets is expected to be as follows:

(in millions)

Remainder of fiscal 2023

During the quarter ended March 31, 2023, Tyco Electronics Group S.A.

(“TEGSA”), our wholly-owned subsidiary, issued $ 500 million aggregate principal amount of 4.50 % senior notes due in February 2026.

The 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.

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

During the quarter ended March 31, 2023, TEGSA repaid, at maturity, € 550 million of 1.10 % senior notes due in March 2023.

As of March 31, 2023, TEGSA had $ 285 million of commercial paper outstanding at a weighted-average interest rate of 5.5 %.

TEGSA had $ 370 million of commercial paper outstanding at a weighted-average interest rate of 3.45 % at September 30, 2022.

The fair value of our debt, based on indicative valuations, was approximately $ 4,046 million and $ 3,990 million at December 30, 2022 and September 30, 2022, respectively.

The fair value of our debt, based on indicative valuations, was approximately $ 3,966 million and $ 3,990 million at March 31, 2023 and September 30, 2022, respectively.

The components of lease cost were as follows:

Quarters Ended

Six Months Ended

(in millions)

2 unchanged sentences

Total lease cost

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Quarters Ended

Six Months Ended

(in millions)

7 unchanged sentences

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.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Trade Compliance Matters

12 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 December 30, 2022, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $ 17 million to $ 44 million, and we accrued $ 20 million as the probable loss, which was the best estimate within this range.

As of March 31, 2023, 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.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

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

At December 30, 2022, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 170 million, excluding those related to our former Subsea Communications (“SubCom”) business which are discussed below.

At March 31, 2023, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 171 million, excluding those related to our former 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 $ 59 million as of December 30, 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 $ 58 million as of March 31, 2023 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;

5 unchanged sentences

additionally, all related collateral positions were settled.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The impacts of these cross-currency swap contracts were as follows:

Quarter Ended

Six 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 $ 2,247 million and $ 1,658 million at December 30, 2022 and September 30, 2022, respectively.

The aggregate notional value of these hedges was $ 3,210 million and $ 1,658 million at March 31, 2023 and September 30, 2022, 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 $ 2,237 million and $ 1,873 million at December 30, 2022 and September 30, 2022, respectively.

The aggregate notional value of the contracts under this program was $ 3,782 million and $ 1,873 million at March 31, 2023 and September 30, 2022, 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:

6 unchanged sentences

Quarters Ended

Six Months Ended

(in millions)

2 unchanged sentences

(1) Recorded as currency translation, a component of accumulated other comprehensive income (loss), and offset by changes attributable to the translation of the net investment.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Interest Rate Risk Management

3 unchanged sentences

Quarter Ended

Six Months Ended

(in millions)

3 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.

These contracts had an aggregate notional value of $ 542 million and $ 566 million at December 30, 2022 and September 30, 2022, respectively, and were designated as cash flow hedges.

These contracts had an aggregate notional value of $ 492 million and $ 566 million at

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2023 and September 30, 2022, respectively, and were designated as cash flow hedges.

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

6 unchanged sentences

Quarters Ended

Six Months Ended

(in millions)

2 unchanged sentences

We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with commodity hedges will be reclassified into the Condensed Consolidated Statement of Operations within the next twelve months.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Retirement Plans

11 unchanged sentences

Net periodic pension benefit cost (credit)

During the quarter ended December 30, 2022, we contributed $ 10 million to our non-U.S.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Six Months Ended

(in millions)

Operating expense:

Other (income) expense:

Interest cost

Expected returns on plan assets

Amortization of net actuarial loss

Amortization of prior service credit

Net periodic pension benefit cost (credit)

During the six months ended March 31, 2023, we contributed $ 21 million to our non-U.S.

pension plans.

We recorded income tax expense of $ 87 million and $ 110 million for the quarters ended December 30, 2022 and December 24, 2021, respectively.

The income tax expense for the quarter ended December 24, 2021 included a $ 17 million income tax benefit related to the tax impacts of an intercompany transaction and $ 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 quarter ended December 24, 2021.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that, as of December 30, 2022, approximately $ 20 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 December 30, 2022.

We recorded income tax expense of $ 100 million and $ 136 million for the quarters ended March 31, 2023 and March 25, 2022, 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 and a $ 19 million income tax benefit related to the tax impacts of an intercompany transaction.

We recorded income tax expense of $ 187 million and $ 246 million for the six months ended March 31, 2023 and March 25, 2022, 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.

During the quarter ended March 31, 2023, we completed tax returns for certain non-U.S.

entities which resulted in the recognition of additional deferred tax assets for tax loss carryforwards of $ 313 million.

As we do not expect these subsidiaries to generate sufficient future taxable income to realize the deferred tax assets, 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 31, 2023 or Condensed Consolidated Balance Sheet as of March 31, 2023.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that, as of March 31, 2023, approximately $ 20 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

(in millions)

Dilutive impact of share-based compensation arrangements

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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:

Quarters Ended

Six Months Ended

(in millions)

1 unchanged sentence

Shareholders’ Equity

Common Shares

In March 2023, our shareholders approved, for a period of one year ending March 15, 2024, our board of directors’ authorization to issue additional new shares to a maximum of 120 % and/or reduce shares to a minimum of 80 % of the existing share capital, subject to certain conditions specified in our articles of association.

Common Shares Held in Treasury

In March 2023, our shareholders approved the cancellation of approximately eight and a half million shares purchased under our share repurchase program during the period beginning September 25, 2021 and ending September 30, 2022.

The capital reduction by cancellation of these shares, which was subject to filing with the commercial register in Switzerland, approval by our board of directors, and other requirements, became effective in March 2023.

We paid cash dividends to shareholders as follows:

Quarters Ended

Six Months Ended

Dividends paid per common share

In March 2023, our shareholders approved a dividend payment to shareholders of $ 2.36 per share, payable in four equal quarterly installments of $ 0.59 per share beginning in the third quarter of fiscal 2023 and ending in the second quarter of fiscal 2024.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

At December 30, 2022 and September 30, 2022, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $ 177 million and $ 356 million, respectively.

At March 31, 2023 and September 30, 2022, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $ 744 million and $ 356 million, respectively.

Share Repurchase Program

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

Quarters Ended

Six Months Ended

(in millions)

1 unchanged sentence

Repurchase value

At December 30, 2022, we had $ 1.4 billion of availability remaining under our share repurchase authorization.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

At March 31, 2023, we had $ 1.2 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

(in millions)

Share-based compensation expense

As of December 30, 2022, there was $ 210 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 March 31, 2023, there was $ 179 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 1.7 years.

During the quarter ended December 30, 2022, we granted the following share-based awards as part of our annual incentive plan grant:

3 unchanged sentences

Performance share awards

As of December 30, 2022, we had 8 million shares available for issuance under the TE Connectivity Ltd.

As of March 31, 2023, we had eight million shares available for issuance under the TE Connectivity Ltd.

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

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Share-Based Compensation Assumptions

4 unchanged sentences

Expected life of options (in years)

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Segment and Geographic Data

4 unchanged sentences

Prior period segment results have been restated to conform to the current segment reporting structure.

As a result of the restatement, which was not significant, $ 7 million and $ 30 million of net sales and $ 3 million and $ 13 million of operating income for the first quarter and full year of fiscal 2022, respectively, were transferred from the Industrial Solutions segment to the Communications Solutions segment.

As a result of the realignment, $ 14 million of net sales and $ 6 million of operating income for the first six months of fiscal 2022 were reflected in the Communications Solutions segment.

Net sales by segment (1) and industry end market (2) were as follows:

Quarters Ended

Six Months Ended

(in millions)

15 unchanged sentences

Quarters Ended

Six Months Ended

(in millions)

15 unchanged sentences

Quarters Ended

Six 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