Summary
TE Connectivity plc (TEL) filed an 8-K on October 31, 2018, primarily to disclose significant operational and financial information under Regulation FD. A key announcement is the definitive agreement to sell its Subsea Communications business for $325 million, with an expected closing in the quarter ending December 28, 2018. This business, previously part of the Communications Solutions segment, has been reclassified as discontinued operations for all periods presented, impacting historical financial reporting. The filing also emphasizes TE Connectivity's use of non-GAAP financial measures, which management utilizes for internal planning and to provide investors with a clearer view of operational performance and cash generation trends. These adjusted measures, such as Organic Net Sales Growth and Adjusted Earnings Per Share, exclude items like foreign currency fluctuations, acquisitions/divestitures, and restructuring charges, aiming to offer a more comparable and insightful view of the company's underlying business performance. Investors are encouraged to consider these non-GAAP measures alongside their GAAP counterparts.
Key Highlights
- 1TE Connectivity to sell its Subsea Communications business for $325 million, with closing expected in Q4 FY2018.
- 2The Subsea Communications business has been classified as 'discontinued operations' and its historical financial data has been reclassified accordingly.
- 3The company provided extensive unaudited financial information, including consolidated statements of operations and segment results for multiple historical fiscal quarters and years.
- 4TE Connectivity detailed its use of various non-GAAP financial measures, such as Organic Net Sales Growth and Adjusted Earnings Per Share, explaining their utility for performance assessment.
- 5Management uses non-GAAP measures for internal planning, forecasting, and decision-making, believing they enhance the understanding of operating performance and cash generation trends.
- 6The filing incorporates by reference financial information previously furnished, covering periods from fiscal year 2016 through fiscal quarters ending in 2018.
- 7A standard forward-looking statement disclaimer is included, highlighting risks and uncertainties that could materially affect future results, including the successful completion and benefits of the divestiture.