TE Connectivity Ltd. Files 10-Q for Period Ending December 29, 2023

TL;DR

<b>TE Connectivity Ltd. has filed its Q1 2024 10-Q report, detailing financial performance and activities for the period ending December 29, 2023.</b>

AI Summary

TE Connectivity Ltd. (TEL) filed a Quarterly Report (10-Q) with the SEC on January 26, 2024. TE Connectivity Ltd. filed a 10-Q report for the period ending December 29, 2023. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on September 27th. TE Connectivity Ltd. was formerly known as Tyco Electronics Ltd. The filing includes data related to various financial statement line items and hedging activities.

Why It Matters

For investors and stakeholders tracking TE Connectivity Ltd., this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and operational updates for TE Connectivity Ltd. Understanding the details within this report is crucial for assessing the company's financial health, strategic direction, and potential risks moving forward.

Risk Assessment

Risk Level: low — TE Connectivity Ltd. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not inherently contain significant new risks beyond those typically associated with a publicly traded company.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand TE Connectivity's current operational and financial standing.

Key Numbers

• 2023-12-29 — Period End Date (Conformed period of report)
• 2024-01-26 — Filing Date (Filed as of date)
• 20231229 — Report Period End (Conformed period of report)
• 20240126 — Filing Date (Filed as of date)

Key Players & Entities

• TE Connectivity Ltd. (company) — Filer name
• Tyco Electronics Ltd. (company) — Former company name
• 2023-12-29 (date) — Period of report
• 2024-01-26 (date) — Filing date
• 2024-01-26 (date) — Date as of change
• 0001385157 (company) — Central Index Key
• 5065 (industry) — Standard Industrial Classification
• CH-8200 (location) — Business address zip code

FAQ

Key Dates

• 2024-01-26: Filing Date — Submission of the 10-Q report for the period ending December 29, 2023.
• 2023-12-29: Period End Date — End of the reporting period for the 10-Q filing.
• 2007-01-04: Name Change — Date TE Connectivity Ltd. changed its name from Tyco Electronics Ltd.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure of financial performance. (This filing provides the latest quarterly financial data for TE Connectivity Ltd.)

Filing Documents

• tel-20231229x10q.htm (10-Q) — 2181KB
• tel-20231229xex22d1.htm (EX-22.1) — 5KB
• tel-20231229xex31d1.htm (EX-31.1) — 16KB
• tel-20231229xex31d2.htm (EX-31.2) — 19KB
• tel-20231229xex32d1.htm (EX-32.1) — 10KB
• tel-20231229xex10d1.htm (EX-10.1) — 200KB
• tel-20231229x10q003.jpg (GRAPHIC) — 6KB
• 0001558370-24-000581.txt (&nbsp;) — 8776KB
• tel-20231229.xsd (EX-101.SCH) — 43KB
• tel-20231229_cal.xml (EX-101.CAL) — 65KB
• tel-20231229_def.xml (EX-101.DEF) — 194KB
• tel-20231229_lab.xml (EX-101.LAB) — 436KB
• tel-20231229_pre.xml (EX-101.PRE) — 320KB
• tel-20231229x10q_htm.xml (XML) — 1661KB

Financial Statements

Financial Statements 1 Condensed Consolidated Statements of Operations for the Quarters Ended December 29, 2023 and December 30, 2022 (unaudited) 1 Condensed Consolidated Statements of Comprehensive Income for the Quarters Ended December 29, 2023 and December 30, 2022 (unaudited) 2 Condensed Consolidated Balance Sheets as of December 29, 2023 and September 29, 2023 (unaudited) 3 Condensed Consolidated Statements of Equity for the Quarters Ended December 29, 2023 and December 30, 2022 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Quarters Ended December 29, 2023 and December 30, 2022 (unaudited) 5 Notes to Condensed Consolidated Financial Statements (unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 5. Other Information 36 Item 6. Exhibits 36

Signatures

Signatures 37 i Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TE CONNECTIVITY LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended December 29, December 30, 2023 2022 (in millions, except per share data) Net sales $ 3,831 $ 3,841 Cost of sales 2,507 2,654 Gross margin 1,324 1,187 Selling, general, and administrative expenses 424 392 Research, development, and engineering expenses 173 173 Acquisition and integration costs 8 9 Restructuring and other charges, net 21 111 Operating income 698 502 Interest income 22 9 Interest expense ( 18 ) ( 21 ) Other expense, net ( 3 ) ( 5 ) Income from continuing operations before income taxes 699 485 Income tax (expense) benefit 1,105 ( 87 ) Income from continuing operations 1,804 398 Loss from discontinued operations, net of income taxes ( 1 ) ( 1 ) Net income $ 1,803 $ 397 Basic earnings per share: Income from continuing operations $ 5.80 $ 1.26 Loss from discontinued operations — — Net income 5.80 1.25 Diluted earnings per share: Income from continuing operations $ 5.76 $ 1.25 Loss from discontinued operations — — Net income 5.76 1.24 Weighted-average number of shares outstanding: Basic 311 317 Diluted 313 319 See Notes to Condensed Consolidated Financial Statements. 1 Table of Contents TE CONNECTIVITY LTD. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) For the Quarters Ended December 29, December 30, 2023 2022 (in millions) Net income $ 1,803 $ 397 Other comprehensive income: Currency translation 163 305 Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes ( 18 ) 2 Gains on cash flow hedges, net of income taxes 28 69 Other comprehensive income 173 376 Comprehensive income 1,976 773 Less: comprehensive income attributable to noncontrolling interests ( 4 ) ( 9

Legal Proceedings

Legal Proceedings In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. 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. Trade Compliance Matters We have been investigating our past compliance with relevant U.S. trade controls and have made voluntary disclosures of apparent trade controls violations to the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") and the U.S. State Department's Directorate of Defense Trade Controls ("DDTC"). We are cooperating with the BIS and DDTC on these matters, and the resulting investigations are ongoing. We have also been contacted by the U.S. Department of Justice concerning aspects of these matters. We are unable to predict the timing and final outcome of the agencies' investigations. An unfavorable outcome may include fines or penalties imposed in response to our disclosures, but we are not yet able to reasonably estimate the extent of any such fines or penalties. 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. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remed