8-KEarnings & ResultsRegulation FDExhibits & Filings

TE Connectivity plc 8-K Report, Financial Results (Dec 17, 2024)

Filed December 17, 2024For Securities:TEL

Summary

TE Connectivity plc (TEL) has announced a significant reorganization of its business segments, effective for the first quarter of fiscal year 2025. This restructuring aims to better align the company's operations with its strategic objectives. Key changes include the integration of the former Communications Solutions segment into the Industrial Solutions segment, the creation of a new 'automation and connected living' business by combining appliance and industrial equipment operations, and the realignment of certain product lines into the Transportation Solutions segment. This filing also provides recast historical segment financial data to reflect the new structure, aiding investor comparability. While these recast financials are unaudited and do not alter previously reported consolidated results, they offer a clearer view of performance under the new reporting framework. The company continues to emphasize the use of Adjusted Operating Income, a non-GAAP measure, for assessing segment performance and operational trends, alongside GAAP results.

Key Highlights

  • 1TE Connectivity plc is implementing a new business segment structure effective Q1 FY2025.
  • 2The former Communications Solutions segment is now integrated into the Industrial Solutions segment.
  • 3A new 'automation and connected living' business has been formed by combining appliance and industrial equipment operations.
  • 4The Transportation Solutions segment will now include realigned product lines and businesses.
  • 5The company has provided recast historical segment financial data to reflect the new structure for enhanced comparability.
  • 6Recast financial information is unaudited and does not impact previously reported consolidated financial statements.
  • 7Adjusted Operating Income, a non-GAAP measure, is being used to assess segment performance, with reconciliations provided.

Frequently Asked Questions

TE Connectivity has reorganized its segments to align with its fiscal 2025 strategy. The Communications Solutions segment is now part of Industrial Solutions. Appliance and industrial equipment businesses are combined into a new 'automation and connected living' business. Some product lines have also been shifted into the Transportation Solutions segment.

The reorganization is intended to align the company's organizational structure with its fiscal 2025 strategy, aiming for better operational focus and strategic execution.

TE Connectivity has recast prior period segment results to reflect the new structure. This recast information is provided for comparability and is unaudited, meaning it does not impact previously reported consolidated financial statements.

Adjusted Operating Income is a non-GAAP financial measure that excludes certain items like restructuring charges and acquisition-related costs from operating income. The company uses it to assess segment-level operating performance and trends, believing it provides meaningful insights to management and investors alongside GAAP results.