UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One) | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended | |
or | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Commission File Number)
(Exact name of registrant as specified in its charter)
|
|
(Address of principal executive offices) | (Registrant’s telephone number) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol | Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
The number of common shares outstanding as of July 19, 2024 was
TE CONNECTIVITY LTD.
INDEX TO FORM 10-Q
i
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TE CONNECTIVITY LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the | For the | ||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||
June 28, | June 30, | June 28, | June 30, | ||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| |||||
(in millions, except per share data) | |||||||||||||
Net sales | $ | | $ | | $ | | $ | | |||||
Cost of sales |
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Gross margin |
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Selling, general, and administrative expenses |
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Research, development, and engineering expenses |
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Acquisition and integration costs |
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Restructuring and other charges, net |
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Operating income | | | | | |||||||||
Interest income | | | | | |||||||||
Interest expense |
| ( | ( |
| ( | ( | |||||||
Other expense, net |
| ( | ( |
| ( | ( | |||||||
Income from continuing operations before income taxes |
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Income tax (expense) benefit |
| ( | ( |
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Income from continuing operations |
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Income (loss) from discontinued operations, net of income taxes |
| — | — |
| ( | | |||||||
Net income | $ | | $ | | $ | | $ | | |||||
Basic earnings per share: | |||||||||||||
Income from continuing operations | $ | | $ | | $ | | $ | | |||||
Income (loss) from discontinued operations |
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| — |
| — |
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Net income |
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Diluted earnings per share: | |||||||||||||
Income from continuing operations | $ | | $ | | $ | | $ | | |||||
Income (loss) from discontinued operations |
| — |
| — |
| — |
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Net income |
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Weighted-average number of shares outstanding: | |||||||||||||
Basic |
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Diluted |
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See Notes to Condensed Consolidated Financial Statements.
1
TE CONNECTIVITY LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
For the | For the | ||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||
| June 28, |
| June 30, |
| June 28, |
| June 30, |
| |||||
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| |||||
(in millions) | |||||||||||||
Net income | $ | | $ | | $ | | $ | | |||||
Other comprehensive income (loss): | |||||||||||||
Currency translation |
| ( | ( | | | ||||||||
Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes |
| — | | ( | | ||||||||
Gains (losses) on cash flow hedges, net of income taxes |
| | ( | | | ||||||||
Other comprehensive income (loss) |
| ( |
| ( |
| |
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Comprehensive income | | | | | |||||||||
Less: comprehensive (income) loss attributable to noncontrolling interests | | ( | ( | ( | |||||||||
Comprehensive income attributable to TE Connectivity Ltd. | $ | | $ | | $ | | $ | |
See Notes to Condensed Consolidated Financial Statements.
2
TE CONNECTIVITY LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 28, | September 29, | ||||||
| 2024 |
| 2023 |
| |||
(in millions, except share | |||||||
data) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | | $ | | |||
Accounts receivable, net of allowance for doubtful accounts of $ |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property, plant, and equipment, net |
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Goodwill |
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Intangible assets, net |
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Deferred income taxes |
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Other assets |
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Total assets | $ | | $ | | |||
Liabilities, redeemable noncontrolling interests, and shareholders' equity | |||||||
Current liabilities: | |||||||
Short-term debt | $ | | $ | | |||
Accounts payable |
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Accrued and other current liabilities |
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Total current liabilities |
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Long-term debt |
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Long-term pension and postretirement liabilities |
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Deferred income taxes |
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Income taxes |
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Other liabilities |
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Total liabilities |
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Commitments and contingencies (Note 9) | |||||||
Redeemable noncontrolling interests | | | |||||
Shareholders' equity: | |||||||
Common shares, CHF |
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Accumulated earnings |
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Treasury shares, at cost, |
| ( |
| ( | |||
Accumulated other comprehensive loss |
| ( |
| ( | |||
Total shareholders' equity | | | |||||
Total liabilities, redeemable noncontrolling interests, and shareholders' equity | $ | | $ | |
See Notes to Condensed Consolidated Financial Statements.
3
TE CONNECTIVITY LTD.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
For the Quarter Ended June 28, 2024 | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | Total | Non- | |||||||||||||||||||||||||||
Common Shares | Treasury Shares | Contributed | Accumulated | Comprehensive | Shareholders' | controlling | Total | ||||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Surplus |
| Earnings |
| Loss |
| Equity |
| Interests |
| Equity |
| |||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at March 29, 2024 |
| | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | | $ | | |||||||||
Net income |
| — |
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Other comprehensive loss |
| — |
| — |
| — |
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| ( |
| ( |
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| ( | |||||||||
Share-based compensation expense |
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Dividends |
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Exercise of share options |
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| — |
| — |
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Restricted share award vestings and other activity |
| — |
| — |
| — |
| |
| ( |
| ( |
| — |
| ( |
| — |
| ( | |||||||||
Repurchase of common shares |
| — |
| — |
| ( |
| ( |
| — |
| — |
| — |
| ( |
| — |
| ( | |||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||
Balance at June 28, 2024 | | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | — | $ | |
For the Nine Months Ended June 28, 2024 | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | Total | Non- | |||||||||||||||||||||||||||
Common Shares | Treasury Shares | Contributed | Accumulated | Comprehensive | Shareholders' | controlling | Total | ||||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Surplus |
| Earnings |
| Loss |
| Equity |
| Interests |
| Equity |
| |||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at September 29, 2023 |
| | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | — | $ | | |||||||||
Noncontrolling interests associated with acquisition | — | — | — | — | — | — | — | — | | | |||||||||||||||||||
Net income |
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Other comprehensive income |
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Share-based compensation expense |
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Dividends | — |
| — |
| — |
| — |
| — | ( |
| — |
| ( |
| — |
| ( | |||||||||||
Exercise of share options |
| — |
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| — |
| — |
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Restricted share award vestings and other activity |
| — |
| — |
| — |
| |
| ( |
| ( |
| — |
| ( |
| — |
| ( | |||||||||
Repurchase of common shares |
| — |
| — |
| ( |
| ( |
| — |
| — |
| — |
| ( |
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| ( | |||||||||
Cancellation of treasury shares | ( |
| ( |
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| — |
| ( |
| — |
| — |
| — |
| — | ||||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||
Balance at June 28, 2024 | | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | — | $ | |
4
TE CONNECTIVITY LTD.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED) (Continued)
For the Quarter Ended June 30, 2023 | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | Total | Non- | |||||||||||||||||||||||||||
Common Shares | Treasury Shares | Contributed | Accumulated | Comprehensive | Shareholders' | controlling | Total | ||||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Surplus |
| Earnings |
| Loss |
| Equity |
| Interests |
| Equity |
| |||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at March 31, 2023 |
| | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | — | $ | | |||||||||
Net income | — |
| — |
| — |
| — |
| — |
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Other comprehensive loss |
| — |
| — |
| — |
| — |
| — |
| — |
| ( |
| ( |
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| ( | |||||||||
Share-based compensation expense |
| — |
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Dividends |
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Exercise of share options |
| — |
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Restricted share award vestings and other activity |
| — |
| — |
| — |
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| ( |
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Repurchase of common shares |
| — |
| — |
| ( |
| ( |
| — |
| — |
| — |
| ( |
| — |
| ( | |||||||||
Balance at June 30, 2023 | | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | — | $ | |
For the Nine Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | Total | Non- | |||||||||||||||||||||||||||
Common Shares | Treasury Shares | Contributed | Accumulated | Comprehensive | Shareholders' | controlling | Total | ||||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Surplus |
| Earnings |
| Loss |
| Equity |
| Interests |
| Equity |
| |||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at September 30, 2022 |
| | $ | |
| ( | $ | ( | $ | — | $ | | $ | ( | $ | | $ | — | $ | | |||||||||
Net income | — | — | — | — | — | | — | | — | | |||||||||||||||||||
Other comprehensive income |
| — |
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Share-based compensation expense |
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Dividends |
| — |
| — |
| — |
| — |
| — |
| ( |
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| ( |
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| ( | |||||||||
Exercise of share options |
| — |
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| — |
| — |
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Restricted share award vestings and other activity |
| — |
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| ( |
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Repurchase of common shares |
| — |
| — |
| ( |
| ( |
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