8-KEarnings & ResultsRegulation FDExhibits & Filings

TE Connectivity plc 8-K Report, Financial Results (Nov 29, 2010)

Filed November 29, 2010For Securities:TEL

Summary

TE Connectivity plc (formerly Tyco Electronics Ltd.) filed an 8-K on November 29, 2010, primarily to announce a significant reorganization of its business segments, effective for the first quarter of fiscal year 2011. This restructuring aims to better align the company's operations with its strategic objectives. Key changes include the integration of Aerospace, Defense, and Marine businesses into a new 'Transportation Connectivity' segment, the consolidation of various product lines like Medical, Circuit Protection, and Touch Systems into 'Communications and Industrial Solutions,' and the incorporation of the Subsea Communications segment into 'Network Solutions.' The company also noted its intention to integrate the anticipated acquisition of ADC Telecommunications, Inc. into the Network Solutions segment. This filing also incorporated by reference unaudited financial information related to these new segment structures. This includes consolidated segment results, net sales by industry end market, and consolidated adjusted operating income (loss) by segment for historical periods dating back to late 2008. The company provided a clear definition and rationale for its use of 'Adjusted Operating Income' as a non-GAAP measure, explaining its utility in assessing core operating performance and comparability, while also cautioning investors to use it in conjunction with GAAP measures.

Key Highlights

  • 1TE Connectivity plc (formerly Tyco Electronics Ltd.) is reorganizing its business segments effective fiscal Q1 2011.
  • 2The restructuring aims to align operations with the company's strategy.
  • 3New segments include 'Transportation Connectivity,' 'Communications and Industrial Solutions,' and 'Network Solutions.'
  • 4Aerospace, Defense, and Marine businesses are now part of 'Transportation Connectivity.'
  • 5Medical Products, Circuit Protection, and Touch Systems are consolidated into 'Communications and Industrial Solutions.'
  • 6Subsea Communications is integrated into 'Network Solutions.'
  • 7The company anticipates integrating the acquisition of ADC Telecommunications, Inc. into the Network Solutions segment.
  • 8The filing includes historical segment data reflecting the new structure and provides a reconciliation for Adjusted Operating Income, a non-GAAP measure.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce a significant reorganization of TE Connectivity's business segments, effective from the first quarter of fiscal year 2011. It also provides historical financial data reflecting this new structure and clarifies the company's use of Adjusted Operating Income as a non-GAAP financial measure.

The company has reorganized its segments into three main categories: Transportation Connectivity (including Automotive and Aerospace, Defense, and Marine); Communications and Industrial Solutions (including DataComm, Industrial Products, Consumer Devices, Lighting, Alternative Energy, Medical Products, Circuit Protection, and Touch Systems); and Network Solutions (including Subsea Communications, Telecom Service Providers, Enterprise Networks, and Energy businesses).

Adjusted Operating Income is a non-GAAP financial measure that excludes special items such as legal settlements, restructuring charges, impairment charges, acquisition costs, and other income/charges. TE Connectivity presents this measure to provide investors with a clearer view of the company's core operating performance and to enhance comparability between periods, as these excluded items can sometimes mask underlying business trends.

The filing indicates that TE Connectivity expects to integrate ADC Telecommunications, Inc. into its newly formed Network Solutions segment upon the completion of the acquisition. This suggests a strategic move to strengthen its offerings within the network solutions market.