What changed in this filing

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Item 1. Business

2024-11-12 compared with 2023-11-13 · 39 added, 31 removed, 189 unchanged (27% of the section changed)

TE Connectivity Ltd.

(“TE Connectivity” or the “Company,” which may be referred to as “we,” “us,” or “our”) is a global industrial technology leader creating a safer, sustainable, productive, and connected future.

Our broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications, and the home.

We are a global industrial technology leader creating a safer, sustainable, productive, and connected future.

Our broad range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology, and more.

References in this report to “TE Connectivity,” the “Company,” “we,” “us,” or “our” refer to TE Connectivity Ltd.

before September 30, 2024 and to TE Connectivity plc on or after September 30, 2024.

We became an independent, publicly traded company in 2007;

however, through our predecessor companies, we trace our foundations in the connectivity business back to 1941.

We are organized under the laws of Switzerland.

The rights of holders of our shares are governed by Swiss law, our Swiss articles of association, and our Swiss organizational regulations.

During fiscal 2024, we were organized under the laws of Switzerland and the rights of holders of our shares were governed by Swiss law, our Swiss articles of association, and our Swiss organizational regulations.

In fiscal 2024, our board of directors and shareholders approved a change in our jurisdiction of incorporation from Switzerland to Ireland.

In connection with the change, we entered into a merger agreement with our wholly-owned subsidiary, TE Connectivity plc, a public limited company incorporated under Irish law.

Under the merger agreement, we were merged with and into TE Connectivity plc, which was the surviving entity, in order to effect our change in jurisdiction of incorporation from Switzerland to Ireland.

The merger and change in jurisdiction of incorporation were completed on September 30, 2024.

Effective for fiscal 2025, we are organized under the laws of Ireland.

We do not anticipate any material changes in our operations or financial results as a result of the merger and change in place of incorporation.

See Notes 1 and 21 to the Consolidated Financial Statements for additional information regarding the change in place of incorporation.

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

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

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:

During fiscal 2024, we operated through three reportable segments:

Transportation Solutions, Industrial Solutions, and Communications Solutions.

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.

We believe our three segments served a combined market of approximately $190 billion as of fiscal year end 2024.

Our net sales by segment as a percentage of our total net sales were as follows:

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● Automotive (75% 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.

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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, antennas, heat shrink tubing, and relays.

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

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

Data and devices (65% 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, virtual reality and artificial intelligence/machine learning applications to help our customers meet their current challenges and future innovations.

Appliances (35% of segment’s net sales)— We provide solutions to meet the daily demands of home appliances.

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The Communications Solutions segment’s major competitors include Amphenol, Molex, JST, and Korea Electric Terminal (KET).

New Segment Structure Effective for Fiscal 2025

Effective for the first quarter of fiscal 2025, we will reorganize our management and segments to align the organization around our fiscal 2025 strategy.

In this Annual Report, results for fiscal 2024 and prior periods are reported on the basis under which we managed our business in fiscal 2024 and do not reflect the fiscal 2025 segment reorganization.

See Note 21 to the Consolidated Financial Statements for additional information regarding our new segment structure.

As an industry leader, we have established close working relationships with many of our customers.

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We have experienced, and expect to continue to experience, downward pressure on prices.

However, as a result of increased costs, certain of our businesses implemented price increases in fiscal 2023 and 2022.

However, as a result of increased costs, certain of our businesses implemented price increases in recent years.

Raw Materials

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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 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.

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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.

Our employees are in over 50 countries representing approximately 145 nationalities, and our total employee population is approximately 40% women.

Additionally, during fiscal 2024, we achieved our fiscal 2026 goal of having at least 30% of leadership roles filled by women.

Our employee resource groups (“ERGs”) are company-sponsored, voluntary, employee-led groups that focus on diverse talent segments or shared experiences of employees.

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As of fiscal year end 2024, 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 ERGs have over 10,500 members worldwide.

During fiscal 2024, we conducted our fifth annual employee engagement survey, which was a fully digital, enterprise-wide survey available in 21 languages and focused on measuring engagement, inclusion, wellbeing, and leadership effectiveness.

We had a participation rate of 87% in fiscal 2024 and year over year improvement in all four indices of engagement, inclusion, wellbeing, and leadership effectiveness.

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

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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.

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

Our All in on Safety initiative asks employees to complete training, review our safety policies, and sign a personal commitment to uphold a safe work environment.

We aspire to be an incident-free workplace and, as such, we have compliance audits and internal processes in place to stay ahead of workplace hazards.

We reduced 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 0.11 in fiscal 2024.

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.

During fiscal 2024, we created a Human Rights Steering Committee of cross-functional leaders to assess and mitigate the areas of greatest 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.

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From fiscal 2020 to 2024, we achieved more than a 20% reduction in energy use intensity, more than a 20% reduction in total water withdrawal, and more than a 70% 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:

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

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

These reduction goals were validated by SBTi and we are currently listed on their “Companies Taking Action” target dashboard which shows companies and financial institutions that have set science-based targets, or have committed to developing such targets.

Our mid-term goals and long-term ambitions, certain of which have already been achieved, include the following:

Targeted Fiscal Year

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

30% reduction in absolute GHG emissions for Scope 3

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

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80% renewable electricity use in our operations

We continue to assess our goals and ambitions and periodically update our environmental commitments.

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.

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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.

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

Available Information

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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