What changed in this filing

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Item 1. Financial Statements

2024-07-29 compared with 2024-04-26 · 95 added, 128 removed, 466 unchanged (32% 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)

2 unchanged sentences

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

Gains on cash flow hedges, net of income taxes

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

Other comprehensive income (loss)

15 unchanged sentences

Deferred income taxes

Liabilities, redeemable noncontrolling interests, and equity

Liabilities, redeemable noncontrolling interests, and shareholders' equity

Current liabilities:

10 unchanged sentences

Redeemable noncontrolling interests

TE Connectivity Ltd.

Shareholders' equity:

3 unchanged sentences

Accumulated other comprehensive loss

Total TE Connectivity Ltd.

shareholders' equity

Noncontrolling interests

Total liabilities, redeemable noncontrolling interests, and equity

Total shareholders' equity

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Quarter Ended March 29, 2024

TE Connectivity

For the Quarter Ended June 28, 2024

Common Shares

2 unchanged sentences

Shareholders'

Income (Loss)

(in millions)

Balance at December 29, 2023

Balance at March 29, 2024

Other comprehensive loss

3 unchanged sentences

Repurchase of common shares

Cancellation of treasury shares

Balance at March 29, 2024

For the Six Months Ended March 29, 2024

TE Connectivity

Purchase of noncontrolling interests

Balance at June 28, 2024

For the Nine Months Ended June 28, 2024

Common Shares

4 unchanged sentences

Balance at September 29, 2023

Noncontrolling interests associated with acquisition

Other comprehensive income

4 unchanged sentences

Cancellation of treasury shares

Balance at March 29, 2024

Purchase of noncontrolling interests

Balance at June 28, 2024

TE CONNECTIVITY LTD.

1 unchanged sentence

(UNAUDITED) (Continued)

For the Quarter Ended March 31, 2023

TE Connectivity

For the Quarter Ended June 30, 2023

Common Shares

3 unchanged sentences

(in millions)

Balance at December 30, 2022

Other comprehensive income

Balance at March 31, 2023

Other comprehensive loss

Share-based compensation expense

2 unchanged sentences

Repurchase of common shares

Cancellation of treasury shares

Balance at March 31, 2023

For the Six Months Ended March 31, 2023

TE Connectivity

Balance at June 30, 2023

For the Nine Months Ended June 30, 2023

Common Shares

10 unchanged sentences

Cancellation of treasury shares

Balance at March 31, 2023

Balance at June 30, 2023

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended

Nine Months Ended

(in millions)

30 unchanged sentences

Effect of currency translation on cash

Net decrease in cash, cash equivalents, and restricted cash

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

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

16 unchanged sentences

Under the merger agreement, we will be merged with and into TE Connectivity plc, which will be the surviving entity.

Completion of the merger is subject to shareholder approval at a special general meeting which we expect to be held in June 2024 and certain other customary closing conditions.

If approved, we expect to implement the change in calendar year 2024 and our shareholders will receive one ordinary share of TE Connectivity plc for each common share of TE Connectivity Ltd.

The merger was approved by shareholders at a special general meeting in June 2024 and is subject to certain closing conditions.

We expect to implement the change on or about September 30, 2024.

Our shareholders will receive one ordinary share of TE Connectivity plc for each common share of TE Connectivity Ltd.

held immediately prior to the merger.

4 unchanged sentences

Securities and Exchange Commission (“SEC”) issued its final climate disclosure rules, The Enhancement and Standardization of Climate-Related Disclosures for Investors , which require all registrants to provide certain climate-related information in their registration statements and annual reports.

The rules require disclosure of, among other things, material climate-related risks;

activities to mitigate or adapt to such risks;

governance and oversight of such risks;

material climate targets and goals, and Scope 1 and/or Scope 2 greenhouse gas emissions, on a phased-in basis, when those emissions are material.

The rules require disclosure of, among other things, material climate-related risks, activities to mitigate or adapt to such risks, governance and oversight of such risks, material climate targets and goals, and Scope 1 and/or Scope 2 greenhouse gas emissions, on a phased-in basis, when those emissions are material.

In addition, the final rules require certain disclosures in the notes to the financial statements, including the effects of severe weather events and other natural conditions.

8 unchanged sentences

We are currently assessing the impact that adoption will have on our Consolidated Financial Statements.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

In November 2023, the FASB issued ASU No.

14 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Restructuring charges, net

Impairment of held for sale businesses and (gain) loss on divestitures, net

(Gain) loss on divestitures and impairment of held for sale businesses, net

Costs related to change in place of incorporation

4 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

3 unchanged sentences

Restructuring charges, net

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Activity in our restructuring reserves was as follows:

14 unchanged sentences

During fiscal 2024, we initiated a restructuring program to optimize our manufacturing footprint and improve the cost structure of the organization, primarily in the Industrial Solutions and Transportation Solutions segments.

During the six months ended March 29, 2024, we recorded restructuring charges of $ 11 million in connection with this program.

We expect to complete all restructuring actions commenced during the six months ended March 29, 2024 by the end of fiscal 2025 and anticipate that additional charges related to actions commenced during the six months ended March 29, 2024 will be insignificant.

During the nine months ended June 28, 2024, we recorded restructuring charges of $ 24 million in connection with this program.

We expect to complete all restructuring actions commenced during the nine months ended June 28, 2024 by the end of fiscal 2025 and anticipate that additional charges related to actions commenced during the nine months ended June 28, 2024 will be insignificant.

Fiscal 2023 Actions

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

In connection with this program, during the six months ended March 29, 2024 and March 31, 2023, we recorded net restructuring charges of $ 12 million and $ 161 million, respectively.

In connection with this program, during the nine months ended June 28, 2024 and June 30, 2023, we recorded net restructuring charges of $ 7 million and $ 200 million, respectively.

We expect to complete all restructuring actions commenced during fiscal 2023 by the end of fiscal 2025 and to incur additional charges of approximately $ 10 million related primarily to employee severance and facility exit costs.

The following table summarizes expected, incurred, and remaining charges for the fiscal 2023 program by segment as of March 29, 2024:

The following table summarizes expected, incurred, and remaining charges for the fiscal 2023 program by segment as of June 28, 2024:

(in millions)

2 unchanged sentences

Communications Solutions

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Pre-Fiscal 2023 Actions

During the six months ended March 29, 2024 and March 31, 2023, we recorded net restructuring charges of $ 18 million and $ 5 million, respectively, related to pre-fiscal 2023 actions.

During the nine months ended June 28, 2024 and June 30, 2023, we recorded net restructuring charges of $ 26 million and $ 8 million, respectively, related to pre-fiscal 2023 actions.

We expect that any additional charges related to restructuring actions commenced prior to fiscal 2023 will be insignificant.

6 unchanged sentences

Restructuring reserves

During the six months ended March 29, 2024, we sold one business for net cash proceeds of $ 38 million.

In connection with the divestiture, we recorded a pre-tax loss on sale of $ 11 million in the six months ended March 29, 2024.

Additionally, during the six months ended March 31, 2023, we recorded a pre-tax impairment charge of $ 60 million when the business was reclassified to held for sale.

During the nine months ended June 28, 2024, we sold one business for net cash proceeds of $ 59 million.

In connection with the divestiture, we recorded a pre-tax gain on sale of $ 10 million in the nine months ended June 28, 2024.

Additionally, during the nine months ended June 30, 2023, we recorded a pre-tax impairment charge of $ 60 million when the business was reclassified to held for sale.

The business sold was reported in our Transportation Solutions segment.

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.

During the nine months ended June 30, 2023, we sold three businesses for net cash proceeds of $ 48 million.

In connection with the divestitures, we recorded pre-tax impairment charges and a net pre-tax loss on sales, which totaled to a net charge of $ 12 million.

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

Change in Place of Incorporation

During the six months ended March 29, 2024, we incurred costs of $ 8 million related to our proposed change in place of incorporation from Switzerland to Ireland.

See Note 1 for additional information regarding the proposed change.

During the six months ended March 29, 2024, we acquired approximately 98.7 % of the outstanding shares of Schaffner Holding AG (“Schaffner”), a leader in electromagnetic solutions based in Switzerland, for CHF 505.00 per share in cash for a purchase price of CHF 294 million (equivalent to $ 339 million), net of cash acquired.

During the nine months ended June 28, 2024, we incurred costs of $ 11 million related to our change in place of incorporation from Switzerland to Ireland.

See Note 1 for additional information regarding the change.

During the quarter ended December 29, 2023, we acquired approximately 98.7 % of the outstanding shares of Schaffner Holding AG (“Schaffner”), a leader in electromagnetic solutions based in Switzerland, for CHF 505.00 per share in cash for a purchase price of CHF 294 million (equivalent to $ 339 million), net of cash acquired.

As a result of the transaction, we recognized a noncontrolling interest with a fair value of $ 5 million as of the acquisition date.

3 unchanged sentences

The amount of these potential adjustments could be significant.

We have initiated a squeeze-out and a delisting of remaining Schaffner shares from the SIX Swiss Exchange and anticipate that both the squeeze-out and delisting procedures will be completed during fiscal 2024.

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

During the quarter ended June 28, 2024, we completed a squeeze-out of the remaining minority shareholders for $ 5 million and the Schaffner shares were delisted from the SIX Swiss Exchange.

We acquired one business for a cash purchase price of $ 108 million, net of cash acquired, during the nine months ended June 30, 2023.

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

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Inventories consisted of the following:

10 unchanged sentences

Currency translation and other

March 29, 2024 (1)

(1) At March 29, 2024 and September 29, 2023, 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 29, 2024, we recognized goodwill in the Industrial Solutions segment in connection with an acquisition.

June 28, 2024 (1)

(1) At June 28, 2024 and September 29, 2023, 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 28, 2024, we recognized goodwill in the Industrial Solutions segment in connection with an acquisition.

See Note 3 for additional information regarding acquisitions.

1 unchanged sentence

Intangible assets consisted of the following:

March 29, 2024

June 28, 2024

September 29, 2023

2 unchanged sentences

Intellectual property

Intangible asset amortization expense was $ 43 million and $ 49 million for the quarters ended March 29, 2024 and March 31, 2023, respectively, and $ 85 million and $ 95 million for the six months ended March 29, 2024 and March 31, 2023, respectively.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

At March 29, 2024, the aggregate amortization expense on intangible assets is expected to be as follows:

Intangible asset amortization expense was $ 41 million and $ 46 million for the quarters ended June 28, 2024 and June 30, 2023, respectively, and $ 126 million and $ 141 million for the nine months ended June 28, 2024 and June 30, 2023, respectively.

At June 28, 2024, the aggregate amortization expense on intangible assets is expected to be as follows:

(in millions)

Remainder of fiscal 2024

As of March 29, 2024, Tyco Electronics Group S.A.

As of June 28, 2024, Tyco Electronics Group S.A.

(“TEGSA”), our wholly-owned subsidiary, had $ 309 million of commercial paper outstanding at a weighted-average interest rate of 5.48 %.

TEGSA had $ 330 million of commercial paper outstanding at a weighted-average interest rate of 5.50 % at September 29, 2023.

During the quarter ended March 29, 2024, we reclassified € 550 million of 0.00 % euro-denominated senior notes due in February 2025 from long-term debt to short-term debt on the Condensed Consolidated Balance Sheet.

During the nine months ended June 28, 2024, we reclassified € 550 million of 0.00 % euro-denominated senior notes due in February 2025 from long-term debt to short-term debt on the Condensed Consolidated Balance Sheet.

TEGSA entered into a new five-year unsecured senior revolving credit facility (“Credit Facility”) in April 2024 with aggregate commitments of $ 1.5 billion, which refinanced and replaced in full TEGSA’s existing $ 1.5 billion five-year unsecured senior revolving credit facility (the “Replaced Credit Facility”).

1 unchanged sentence

See Note 1 for additional information regarding the merger and change in our jurisdiction of incorporation.

TEGSA had no borrowings under the Replaced Credit Facility at March 29, 2024 or September 29, 2023.

TEGSA had no borrowings under the Credit Facility at June 28, 2024 or the Replaced Credit Facility at September 29, 2023.

Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the option of TEGSA, (1) with respect to revolving loans denominated in U.S.

2 unchanged sentences

Based on the applicable credit ratings of TEGSA, this fee ranges from 5.0 to 12.5 basis points of the lenders’ commitments under the Credit Facility.

The fair value of our debt, based on indicative valuations, was approximately $ 4,074 million and $ 3,974 million at March 29, 2024 and September 29, 2023, respectively.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The fair value of our debt, based on indicative valuations, was approximately $ 4,079 million and $ 3,974 million at June 28, 2024 and September 29, 2023, 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)

18 unchanged sentences

Although we have reserved for potential fines and penalties relating to these matters based on our current understanding of the facts, the investigations into these matters have yet to be completed and the final outcome of such investigations and related fines and penalties may differ from amounts currently reserved.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Environmental Matters

1 unchanged sentence

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 29, 2024, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $ 17 million to $ 43 million, and we accrued $ 20 million as the probable loss, which was the best estimate within this range.

As of June 28, 2024, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $ 17 million to $ 43 million, and we accrued $ 21 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 29, 2024, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 180 million, including letters of credit of $ 22 million associated with our divestiture of the Subsea Communications business.

In addition, as of March 29, 2024, we had $ 25 million of performance guarantees associated with the divestiture.

At June 28, 2024, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 185 million, including letters of credit of $ 22 million associated with our divestiture of the Subsea Communications business.

In addition, as of June 28, 2024, we had $ 24 million of performance guarantees associated with the divestiture.

We contractually agreed to continue to honor letters of credit and performance guarantees related to the business’ projects that existed as of the date of sale;

5 unchanged sentences

Our obligation to suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers’ decisions to finance amounts under the arrangement and we are not required to post collateral with the financial institution.

The outstanding payment obligations under our supply chain finance program, which are included in accounts payable on our Condensed Consolidated Balance Sheets, were $ 113 million and $ 109 million at March 29, 2024 and September 29, 2023, respectively.

The outstanding payment obligations under our supply chain finance program, which are included in accounts payable on our Condensed Consolidated Balance Sheets, were $ 106 million and $ 109 million at June 28, 2024 and September 29, 2023, respectively.

Financial Instruments

2 unchanged sentences

The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in foreign currency exchange rates on intercompany and other cash transactions.

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 Condensed Consolidated Statement of Operations within the next twelve months.

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 Condensed Consolidated Statement of Operations within the next twelve months.

Hedge of Net Investment

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 $ 2,723 million and $ 1,709 million at March 29, 2024 and September 29, 2023, respectively.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The aggregate notional value of these hedges was $ 1,556 million and $ 1,709 million at June 28, 2024 and September 29, 2023, 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 $ 3,522 million and $ 3,806 million at March 29, 2024 and September 29, 2023, respectively.

The aggregate notional value of the contracts under this program was $ 4,316 million and $ 3,806 million at June 28, 2024 and September 29, 2023, respectively.

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

11 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

5 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 $ 422 million and $ 459 million at March 29, 2024 and September 29, 2023, respectively, and were designated as cash flow hedges.

These contracts had an aggregate notional value of $ 459 million at both June 28, 2024 and September 29, 2023 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 our commodity swap contracts were as follows:

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Gains recorded in other comprehensive income (loss)

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

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

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

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.

12 unchanged sentences

Net periodic pension benefit cost

Six Months Ended

Nine Months Ended

(in millions)

6 unchanged sentences

Net periodic pension benefit cost

During the six months ended March 29, 2024, we contributed $ 23 million to our non-U.S.

pension plans.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

We recorded an income tax expense of $ 146 million and $ 100 million for the quarters ended March 29, 2024 and March 31, 2023, respectively.

We recorded an income tax benefit of $ 959 million and expense of $ 187 million for the six months ended March 29, 2024 and March 31, 2023, respectively.

The income tax benefit for the six months ended March 29, 2024 included an $ 874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $ 262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland.

In addition, the income tax benefit for the six months ended March 29, 2024 included a $ 118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $ 4 million recorded in selling, general, and administrative expenses for other non-income taxes.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that, as of March 29, 2024, approximately $ 30 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 29, 2024.

During the nine months ended June 28, 2024, we contributed $ 33 million and $ 20 million to our non-U.S.

pension plans, respectively.

We recorded income tax expense of $ 181 million and $ 96 million for the quarters ended June 28, 2024 and June 30, 2023, respectively.

The income tax expense for the quarter ended June 30, 2023 included a $ 19 million net income tax benefit related to a divestiture.

We recorded an income tax benefit of $ 778 million and expense of $ 283 million for the nine months ended June 28, 2024 and June 30, 2023, respectively.

The income tax benefit for the nine months ended June 28, 2024 included an $ 874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $ 262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland.

In addition, the income tax benefit for the nine months ended June 28, 2024 included a $ 118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $ 4 million recorded in selling, general, and administrative expenses for other non-income taxes.

The income tax expense for the nine months ended June 30, 2023 included a $ 19 million net income tax benefit related to a divestiture.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that, as of June 28, 2024, approximately $ 30 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months.

Earnings Per Share

1 unchanged sentence

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

2 unchanged sentences

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

Antidilutive share options

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Shareholders’ Equity

Common Shares

5 unchanged sentences

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 equity.

At March 29, 2024 and September 29, 2023, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $ 798 million and $ 368 million, respectively.

At June 28, 2024 and September 29, 2023, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $ 594 million and $ 368 million, respectively.

Share Repurchase Program

During the six months ended March 29, 2024, our board of directors authorized an increase of $ 1.5 billion in our share repurchase program.

During the nine months ended June 28, 2024, 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 29, 2024, we had $ 1.4 billion of availability remaining under our share repurchase authorization.

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

At June 28, 2024, we had $ 1.0 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 29, 2024, 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 1.7 years.

As of June 28, 2024, 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 1.7 years.

During the quarter ended December 29, 2023, we granted the following share-based awards as part of our annual incentive plan grant:

8 unchanged sentences

No further awards will be granted under the 2007 Plan and all remaining shares available under the 2007 plan have been cancelled.

As of March 29, 2024, we had 20 million shares available for issuance under the 2024 Plan.

As of June 28, 2024, we had 20 million shares available for issuance under the 2024 Plan.

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

1 unchanged sentence

Quarters Ended

Six Months Ended

Nine Months Ended

(in millions)

11 unchanged sentences

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

TE CONNECTIVITY LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Net sales by geographic region (1) and segment were as follows:

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