What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-11-13 compared with 2022-11-15 · 50 added, 43 removed, 170 unchanged (35% of the section changed)

7 unchanged sentences

We have a 52- or 53-week fiscal year that ends on the last Friday of September.

Fiscal 2022 was 53 weeks in length and ended on September 30, 2022;

fiscal 2021 and 2020 were each 52 weeks in length and ended on September 24, 2021 and September 25, 2020, respectively.

Fiscal 2023, 2022, and 2021 ended on September 29, 2023, September 30, 2022, and September 24, 2021, respectively.

Fiscal 2023 and 2021 were each 52 weeks in length.

Fiscal 2022 was 53 weeks in length.

For fiscal years in which there are 53 weeks, the fourth fiscal quarter includes 14 weeks.

We operate through three reportable segments:

Effective for fiscal 2023, we realigned certain product lines from the Industrial Solutions segment to the Communications Solutions segment.

We continue to operate through three reportable segments:

Transportation Solutions, Industrial Solutions, and Communications Solutions.

Overall, our markets have returned to levels similar to those prior to the COVID-19 pandemic.

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

See Note 20 to the consolidated financial statements for additional information.

As of fiscal year end 2023, we believe our three segments serve a combined market of approximately $200 billion.

9 unchanged sentences

● Automotive (72% of segment’s net sales)— We are one of the leading providers of advanced automobile connectivity solutions.

The automotive industry uses our products in automotive technologies for body and chassis systems, convenience applications, driver information, infotainment solutions, miniaturization solutions, motor and powertrain applications, and safety and security systems.

The automotive industry uses our products in automotive technologies for body and chassis systems, convenience applications, driver information, infotainment solutions, miniaturization solutions,

motor and powertrain applications, and safety and security systems.

Hybrid and electronic mobility solutions include in-vehicle technologies, battery technologies, and charging solutions.

19 unchanged sentences

The Communications Solutions segment is a leading supplier of electronic components for the data and devices and the appliances markets.

The primary products sold by the Communications Solutions segment include terminals and connector systems and components, relays, antennas, and heat shrink tubing.

The primary products sold by the Communications Solutions segment include terminals and connector systems and components, antennas, heat shrink tubing, and relays.

The Communications Solutions segment’s products are used in the following end markets:

Data and devices (61% of segment’s net sales)— We deliver products and solutions that are used in a variety of equipment architectures within the networking equipment, data center equipment, and wireless infrastructure industries.

Additionally, we deliver a range of connectivity solutions for the Internet of Things, smartphones, tablet computers, notebooks, virtual reality, and artificial intelligence applications to help our customers meet their current challenges and future innovations.

Additionally, we deliver a range of connectivity solutions for the Internet of Things, smartphones,

tablet computers, notebooks, virtual reality, and artificial intelligence applications to help our customers meet their current challenges and future innovations.

Appliances (39% of segment’s net sales)— We provide solutions to meet the daily demands of home appliances.

32 unchanged sentences

Also, our sales in the energy market typically increase in the third and fourth fiscal quarters as customer activity increases.

Customer orders and demand may fluctuate as a result of economic and market conditions, including the impacts of the COVID-19 pandemic, supply chain disruptions, and inflationary cost pressures.

Customer orders and demand may fluctuate as a result of economic and market conditions, including supply chain disruptions and inflationary cost pressures.

Backlog by reportable segment was as follows:

13 unchanged sentences

The principal raw materials that we use include plastic resins for molding;

precious metals such as gold and silver for plating;

precious metals such as gold, silver, and palladium for plating;

and other metals such as copper, aluminum, brass, and steel for manufacturing cable, contacts, and other parts that are used for cable and component bodies and inserts.

1 unchanged sentence

The prices of these materials are driven by global supply and demand.

In recent years, raw material prices and availability have been affected by worldwide economic conditions, including the impacts of the COVID-19 pandemic, supply chain disruptions, and inflationary cost pressures.

In recent years, raw material prices and availability have been affected by worldwide economic conditions, including supply chain disruptions and inflationary cost pressures.

Intellectual Property

10 unchanged sentences

As of fiscal year end 2023, we employed approximately 90,000 people worldwide, including contract employees.

Approximately 27,000 were in the Asia–Pacific region, 37,000 were in the EMEA region, and 28,000 were in the Americas region.

Approximately 38,000 were in the EMEA region, 25,000 were in the Asia–Pacific region, and 27,000 were in the Americas region.

Of our total employees, approximately 54,000 were employed in manufacturing.

Our strong employee base, along with their commitment to uncompromising values, provides the foundation of our company’s success.

Our core values—integrity, accountability, teamwork, and innovation—govern us.

Our core values—integrity, accountability, inclusion, teamwork, and innovation—govern us.

They guide our decisions and our actions, both individually and as an organization.

1 unchanged sentence

We track and report internally on key talent metrics including workforce demographics, critical role pipeline data, diversity data, and engagement and inclusion indices.

We aspire to have more than 26% women in leadership roles by fiscal 2025 and are committed to increasing the total number of women across all levels of the organization.

Additionally, as part of its charter, the management development and compensation committee of our board of directors oversees our policies and practices related to the management of human capital resources including talent management, culture, diversity, and inclusion.

We aspire to have 30% of leadership roles filled by women by fiscal 2026 and are committed to increasing the total number of women across all levels of the organization.

As part of its charter, the management development and compensation committee of our board of directors oversees our policies and practices related to the management of human capital resources including talent management, culture, diversity, and inclusion.

We embrace diversity and inclusion.

A truly innovative workforce needs to be diverse and leverage the skills and perspectives of a wealth of backgrounds and experiences.

We are committed to a work environment where all employees are engaged, feel differences are valued and mutually-respected, and believe that all opinions count.

To drive our business outcomes globally, we believe we must build a workforce and supplier network that represents our global markets and the customers we serve.

We are also committed to a work environment where all employees are engaged, feel differences are valued and mutually-respected, and believe that all opinions count.

Our people reflect our customers and markets.

As such, our people reflect our customers and markets.

Our employees are in over 50 countries representing approximately 135 nationalities, and our total employee population is over 40% women.

2 unchanged sentences

The ERGs provide a space where employees can foster connections and develop in a supportive environment.

As of fiscal year end 2022, we had eight ERGs—ALIGN (lesbian, gay, bisexual, transgender, and queer/questioning employees and their allies), Women in Networking, TE Young Professionals, African Heritage, Asian Heritage, Latin Heritage, THRIVE (employees and their allies with mental, emotional, and physical disabilities), and TE Veterans.

Our ERGs have a total of over 8,000 members.

During fiscal 2022, we conducted our third annual employee engagement survey, which was a fully digital, enterprise-wide survey available in 17 languages and focused on measuring engagement, inclusion, and leadership effectiveness.

We had a participation rate of over 85% in fiscal 2022 and year over year improvement in all three indices of engagement, inclusion, and leadership effectiveness.

As of fiscal year end 2023, we had eight ERGs—ALIGN (lesbian, gay, bisexual, transgender, and queer employees (LGBTQ+) and their allies), Women in Networking, TE Young Professionals, African Heritage, Asian Heritage, Latin Heritage, THRIVE (employees with mental, emotional, and physical disabilities and their allies), and TE Veterans.

Our ERGs have a total of approximately 9,500 members.

During fiscal 2023, we conducted our fourth annual employee engagement survey, which was a fully digital, enterprise-wide survey available in 20 languages and focused on measuring engagement, inclusion, and leadership effectiveness.

We had a participation rate of over 85% in fiscal 2023.

Our inclusion and leadership effectiveness scores were consistent with fiscal 2022 results;

however, our engagement score decreased slightly.

Our engagement and inclusion scores were once again favorable when compared to Glint Inc.’s external global manufacturing benchmark .

By fiscal 2025, we aspire to be in the top tier of this benchmark on engagement and inclusion.

In addition to the overall improvement in our leadership effectiveness index, all nine scores within the index also increased from fiscal 2021 levels.

We continue to emphasize employee development and training to support engagement and retention.

7 unchanged sentences

We are focused on both the recruitment of diverse candidates and the development of our diverse employees to provide the opportunity to advance their careers and move into leadership positions within the company.

On an annual basis, we conduct an organization and leadership review process with our chief executive officer and all segment, business unit, and function leaders focusing on our high-performing and high-potential talent, diverse talent, and the succession for our most critical

Also, our board of directors reviews and assesses management development plans for senior executives and the succession plans relating to those positions.

We are committed to the safety, health, human rights, and well-being of our employees.

We are committed to the safety, health, well-being, and human rights of our employees.

We continuously evaluate opportunities to raise safety and health standards through our environmental, health, and safety team.

Compliance audits and internal processes are in place to stay ahead of workplace hazards, and we aim to reduce our Occupational Safety and Health Administration (“OSHA”) total recordable incident rate—a rate equivalent to the number of incidents per 100 employees or 200,000 work hours—to 0.12 by fiscal 2025.

During the COVID-19 pandemic, we took additional actions to protect the physical and mental health and well-being of our global employees.

We have utilized our workplace flexibility guidelines, promoted our Wellbeing Connection program and health care benefits to support the needs of all employees, and instituted additional safety measures at all factories and sites.

We are striving to implement a global human rights program.

We have recently instituted a global human rights policy and a human trafficking and modern slavery policy.

We remain focused on the protection of global human rights and have instituted several policies to guide us including our global human rights policy and our human trafficking and modern slavery policy.

During fiscal 2023, we undertook a human rights risk assessment to identify areas of strength and risk for our operations and value chain, and we have developed a roadmap to strengthen our human rights approach.

We apply high standards of human rights and require that our suppliers do the same.

13 unchanged sentences

Environmental

Our operations are subject to numerous environmental, health, and safety laws and regulations, including those regulating the discharge of materials into the environment, greenhouse gas emissions, hazardous materials in products, and chemical usage.

Our operations are subject to numerous environmental, health, and safety laws and regulations, including those regulating the discharge of materials into the environment, greenhouse gas (“GHG”) emissions, hazardous materials in products, and chemical usage.

We are committed to complying with these laws and to the protection of our employees and the environment.

8 unchanged sentences

Compliance with these laws has increased our costs of doing business in a variety of ways and may continue to do so in the future.

For example, laws regarding product content and chemical registration require extensive and costly data collection, management, and reporting, and laws regulating greenhouse gas emissions may increase our costs for energy and certain materials and products.

For example, laws regarding product content and chemical registration require extensive and costly data collection, management, and reporting, and laws regulating GHG emissions may increase our costs for energy and certain materials and products.

We also have projects underway at a number of current and former manufacturing sites to investigate and remediate environmental contamination resulting from past operations.

Based upon our experience, available information, and applicable laws, as of fiscal year end 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 do not anticipate any material capital expenditures during fiscal 2023 for environmental control facilities or other costs of compliance with laws or regulations relating to greenhouse gas emissions.

We do not anticipate any material capital expenditures during fiscal 2024 for environmental control facilities or other costs of compliance with laws or regulations relating to GHG emissions.

Sustainability

1 unchanged sentence

Our One Connected World strategy guides how we balance investor and customer expectations and drive improved environmental sustainability.

Our sustainability initiatives in our operations began more than ten years ago.

From fiscal 2010 to 2022, we achieved more than a 20% reduction in absolute energy usage, more than a 25% reduction in absolute water usage, and more than a 50% reduction in absolute greenhouse gas emissions (Scopes 1 and 2).

Over the last few years, we have recycled approximately 80% of the waste materials from our operations.

We have challenged ourselves to find new ways to continue to drive sustainability improvements.

In fiscal 2022, we:

● continued to make progress on our goal to further reduce our absolute greenhouse gas emissions (Scopes 1 and 2) by more than 40%, from our fiscal 2020 baseline, by fiscal 2030;

● made progress towards our target to decrease water withdrawals by 15%, from our fiscal 2021 baseline, by fiscal 2025 at 30 sites with extremely high and high water stress;

● made progress towards our target to decrease hazardous waste disposed by 15%, from our fiscal 2021 baseline, by fiscal 2025;

● remained committed to sourcing renewable energy, developing and implementing energy efficiency projects, and strengthening operating standards;

● worked with key suppliers to reduce Scope 3 emissions.

Our sustainability initiatives began several years ago and have continued to evolve.

From fiscal 2020 to 2023, we achieved more than a 20% reduction in energy use intensity, more than a 15% reduction in total water withdrawal, and more than a 60% reduction in absolute GHG emissions for Scopes 1 and 2.

We have challenged ourselves to find new ways to

continue to drive sustainability improvements.

We have also committed to near-term, company-wide emissions reductions in line with climate science and Science Based Targets initiative (“SBTi”) objectives.

We have established a number of mid-term goals and long-term ambitions including the following:

Targeted Fiscal Year

Baseline Fiscal Year

of Achievement

70%+ reduction in absolute GHG emissions for Scopes 1 and 2

15% reduction in water withdrawals at target sites with extremely high and high water stress

15% reduction in hazardous waste disposed

80% renewable electricity use in our operations

While sustainability is embedded in our operations, we are exploring opportunities with our direct suppliers and logistics service providers to strengthen the environmental sustainability of our supply chain.

The majority of our greenhouse gas emissions are from the goods and services we use in our operations.

In addition to improving the sustainability of our operations and working with our suppliers to reduce their greenhouse gas emissions, we help our customers produce smaller, lighter, and more energy-efficient products, reducing the environmental impact of the products our customers make through the life of their products.

With every product that comes out of our facilities, we support a safer, sustainable, productive, and connected future.

The majority of our GHG emissions are from the goods and services we use in our operations.

In addition to improving the sustainability of our operations and working with our suppliers to reduce their GHG emissions, we help our customers produce smaller, lighter, and more energy-efficient products, reducing the environmental impact of the products our customers make through the life of their products.

We support a safer, sustainable, productive, and connected future through the products that come out of our facilities.

Additional information regarding our sustainability initiatives and progress is available in our annual Corporate Responsibility Report and Task Force on Climate-Related Financial Disclosures (“TCFD”) Report located on our website at www.te.com under the heading “Corporate Responsibility.” The contents of our Corporate Responsibility Report and TCFD Report are not incorporated by reference in this Annual Report on Form 10-K.

4 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-K

Item 1. Business