8-KEarnings & ResultsRegulation FDExhibits & Filings

TE Connectivity plc 8-K Report, Financial Results (Jul 15, 2009)

Filed July 15, 2009For Securities:TEL

Summary

TE Connectivity Ltd. (formerly Tyco Electronics Ltd.) filed an 8-K on July 15, 2009, primarily to disclose the completion of the sale of its Wireless Systems business for $675 million in cash, subject to a working capital adjustment. This business is being classified as a discontinued operation for fiscal year 2009 and prior periods have been restated accordingly. The filing also details significant reclassifications of certain expenses, including research, development, and engineering (RD&E) expenses from cost of sales to a separate line item, and intangible asset amortization from selling, general, and administrative (SG&A) expenses to cost of sales. Impairment of long-lived assets was reclassified from impairment of goodwill and long-lived assets to restructuring and other charges. Furthermore, the report provides context and definitions for various non-GAAP financial measures, such as Adjusted Operating Income (Loss), Adjusted Operating Margin, Adjusted Income Tax (Expense) Benefit, Adjusted Income (Loss) from Continuing Operations, and Adjusted Earnings (Loss) Per Share. The company emphasizes that these non-GAAP measures are used to assess core operating performance and provide insights into underlying business trends, and are presented alongside GAAP results for a comprehensive view.

Key Highlights

  • 1Completion of the sale of the Wireless Systems business for $675 million in cash.
  • 2Wireless Systems business classified as a discontinued operation for fiscal year 2009, with prior periods restated.
  • 3Reclassification of Research, Development, and Engineering (RD&E) expenses from cost of sales to a separate line item.
  • 4Intangible asset amortization reclassified from SG&A expenses to cost of sales.
  • 5Impairment of long-lived assets moved from 'impairment of goodwill and long-lived assets' to 'restructuring and other charges, net'.
  • 6Explanation and reconciliation of several non-GAAP financial measures to enhance understanding of core operating performance.
  • 7Unaudited financial information for multiple historical fiscal quarters and years provided for context.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the completion of the sale of TE Connectivity's Wireless Systems business and to provide updated financial information and explanations of accounting reclassifications and non-GAAP measures.

The Wireless Systems business will be reported as a discontinued operation in the third quarter of fiscal year 2009. All previously reported periods have been reclassified to reflect this change, providing a clearer view of the ongoing core business operations.

TE Connectivity has reclassified certain expenses for better presentation. Research, Development, and Engineering (RD&E) expenses are now presented separately, previously included in cost of sales. Intangible asset amortization has moved from SG&A to cost of sales, and impairment of long-lived assets is now under restructuring and other charges.

The company uses non-GAAP measures (like Adjusted Operating Income and Adjusted Earnings Per Share) to offer investors a clearer perspective on the underlying core operating performance and business trends, by excluding unusual items such as litigation reserves, restructuring charges, and impairment charges. These measures are presented alongside GAAP results for a comprehensive financial picture.