April 28, 2010
Second Quarter Results
- Net Sales of $2.96 Billion Increased 27 Percent Year-Over-Year and 2 Percent Sequentially
- GAAP Operating Income of $398 Million; Adjusted Operating Income of $410 Million, Up From $72 Million in Prior-Year Period and a 24 Percent Increase Sequentially; Adjusted Operating Margin of 13.9 Percent
- Diluted Earnings Per Share From Continuing Operations (GAAP EPS) of $0.66; Adjusted EPS of $0.64, Up From $0.14 in Prior-Year Period and a 36 Percent Increase Sequentially
- Cash From Continuing Operations of $500 Million; Free Cash Flow of $422 Million
Third Quarter and Full Year Outlook
- Company Expects Third Quarter Sales of $3.0 to $3.1 Billion, Up 20 to 24 Percent Year-Over-Year
- Third Quarter GAAP EPS Expected to be $0.56 to $0.60; Adjusted EPS Expected to be $0.61 to $0.65, Compared to $0.17 in Prior-Year Quarter
- Full Year Sales Expected to be $11.8 to $12.0 Billion, Up 15 to 17 Percent Year-Over-Year
- Full Year GAAP EPS Expected to be $2.12 to $2.20; Adjusted EPS Expected to be $2.32 to $2.40, Compared to $0.83 in the Prior Year
SCHAFFHAUSEN, Switzerland, April 28 /PRNewswire-FirstCall/ -- Tyco Electronics Ltd. (NYSE:TEL) today reported results for the fiscal second quarter ended Mar. 26, 2010. The company reported a net sales increase of 27 percent year-over-year, and 2 percent sequentially, to $2.96 billion. GAAP EPS were $0.66 for the quarter, compared to a loss per share of $7.07 in the prior-year period. Included in the GAAP EPS were $0.02 per share of restructuring and other charges and $0.04 per share of income related to tax items. This compares to $7.21 per share of net charges in the prior-year quarter. Adjusted EPS were $0.64 in the quarter, compared to $0.14 in the prior-year quarter.
"We had an outstanding second quarter," said Tyco Electronics Chief Executive Officer Tom Lynch. "Sales were up 27 percent year-over-year as we capitalized on continued strength in the consumer markets served by our Electronic Components segment. We improved our adjusted operating margin to 13.9 percent and generated a half billion dollars of cash from operations, with $422 million of free cash flow.
"I am encouraged by the strength of demand in most of our end markets and pleased with our progress in improving operating margins. We now expect sales to be in the $3.0 to $3.1 billion range per quarter for the balance of the year, and expect our operating margins to remain above 13 percent in the second half of the year."
The following discussion includes non-GAAP financial measures which are described at the end of this press release. For a reconciliation of these non-GAAP financial measures, see the attached tables. All dollar amounts are pre-tax and stated in millions.
Mar. 26, Dec. 25, Mar. 27,
($ in millions) 2010 2009 2009
--------- --------- ---------
Net Sales $2,957 $2,892 $2,337
Operating Income
(Loss) $398 $269 $(3,797)
Restructuring and
Other Charges $(12) $(63) $(187)
Impairment of
Goodwill $0 $0 $(3,547)
Other Items $0 $0 $(135)
--- --- -----
Adjusted Operating
Income $410 $332 $72
Operating Margin 13.5% 9.3% NM
Adjusted Operating
Margin 13.9% 11.5% 3.1%
% Change % Change
($ in millions) Sequential YoY
---------- ---
Net Sales 2% 27%
Operating Income
(Loss) 48% NM
Restructuring and
Other Charges
Impairment of
Goodwill
Other Items
Adjusted Operating
Income 24% 469%
Operating Margin
Adjusted Operating
Margin
Sales grew 27 percent compared to the prior-year quarter and 2 percent sequentially. Organically, sales increased 23 percent compared to the prior year and 5 percent sequentially. By segment, and on an organic basis, sales in the Electronic Components segment increased 7 percent sequentially, with broad-based growth in consumer and industrial markets. Sales in the Specialty Products segment grew 6 percent sequentially, primarily reflecting growth in aerospace and defense and touch systems markets. Sales declined 1 percent sequentially in the Network Solutions segment due to a seasonal decline in the energy market. In the Subsea Communications segment, sales increased 4 percent sequentially.
The adjusted operating margin improved to 13.9 percent, compared to 11.5 percent in the prior quarter and 3.1 percent a year ago. The year-over-year operating margin improvement was due to volume increases in Electronic Components, productivity gains, cost reductions initiated in 2009 and a favorable sales mix.
CASH FLOW
Cash from continuing operations was $500 million during the quarter, compared to $461 million in the year-ago period. Free cash flow was $422 million, compared to $370 million in the prior-year period. The increase in free cash flow was primarily driven by higher income levels.
ORDERS
Total company orders increased 51 percent compared to the prior year and 3 percent sequentially. The book-to-bill ratio was 1.03 in the quarter. Excluding the company's Subsea Communications segment, which is a project-oriented business with uneven order patterns, orders increased 56 percent year-over-year and 3 percent sequentially and the book-to-bill ratio was 1.10.
ADDITIONAL ITEM
At the company's Annual General Meeting of Shareholders held on March 10, 2010, shareholders approved a quarterly dividend of $0.16 per share for the four fiscal quarters beginning with the third quarter of 2010, subject to required filings with the Swiss Commercial Register.
THIRD QUARTER AND FULL YEAR FISCAL 2010 OUTLOOK
For the third quarter, the company expects sales of $3.0 to $3.1 billion, an increase of 20 to 24 percent over the prior-year period. GAAP operating income is expected to be $365 to $390 million, which includes restructuring and other charges of approximately $30 million. Adjusted operating income is expected to be $395 to $420 million. GAAP EPS are expected to be $0.56 to $0.60, including restructuring and other charges of approximately $0.05 per share. Adjusted EPS are expected to be $0.61 to $0.65, compared to adjusted EPS of $0.17 in the prior-year period.
For the full fiscal year, the company expects sales of $11.8 to $12.0 billion, an increase of 15 to 17 percent over the prior year. GAAP EPS are expected to be $2.12 to $2.20, including restructuring and other charges of approximately $0.20 per share. Adjusted EPS are expected to be $2.32 to $2.40, compared to adjusted EPS of $0.83 in the prior-year period. This outlook assumes current foreign exchange rates.
ABOUT TYCO ELECTRONICS
Tyco Electronics Ltd. is a leading global provider of engineered electronic components, network solutions, specialty products and subsea communication systems, with fiscal 2009 sales of $10.3 billion to customers in more than 150 countries. We design, manufacture and market products for customers in a broad array of industries including automotive; data communication systems and consumer electronics; telecommunications; aerospace, defense and marine; medical; energy; and lighting. With approximately 7,000 engineers and worldwide manufacturing, sales and customer service capabilities, Tyco Electronics' commitment is our customers' advantage. More information on Tyco Electronics can be found at http://www.tycoelectronics.com/.
CONFERENCE CALL AND WEBCAST
-- The company will hold a conference call for investors today beginning
at 8:30 a.m. EDT.
-- Internet users will be able to access the company's earnings webcast,
including slide materials, at the "Investors" section of Tyco
Electronics' website: http://investors.tycoelectronics.com/.
-- For both "listen-only" telephone participants and those participants
who wish to take part in the question-and-answer portion of the call,
the dial-in number in the United States is (800) 230-1092. The
telephone dial-in number for participants outside the United States is
(612) 288-0337.
-- An audio replay of the conference call will be available beginning at
10:30 a.m. on April 28, 2010 and ending at 11:59 p.m. on May 5, 2010.
The dial-in number for participants in the United States is (800)
475-6701. For participants outside the United States, the replay
dial-in number is (320) 365-3844. The replay access code for all
callers is 148770.
NON-GAAP MEASURES
"Organic Sales Growth," "Adjusted Operating Income," "Adjusted Operating Margin," "Adjusted Other Income, Net," "Adjusted Income Tax (Expense) Benefit," "Adjusted Income from Continuing Operations," "Adjusted Earnings Per Share," and "Free Cash Flow" (FCF) are non-GAAP measures and should not be considered replacements for GAAP results.
"Organic Sales Growth" is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net sales growth (the most comparable GAAP measure) and Organic Sales Growth (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures. Organic Sales Growth is a useful measure of the company's performance because it excludes items that: i) are not completely under management's control, such as the impact of foreign currency exchange; or ii) do not reflect the underlying growth of the company, such as acquisition and divestiture activity. The limitation of this measure is that it excludes items that have an impact on the company's sales. This limitation is best addressed by using organic sales growth in combination with the GAAP results. See the accompanying tables to this press release for the reconciliation presenting the components of Organic Sales Growth.
The company has presented its operating income before special items including charges related to legal settlements and reserves, restructuring charges, impairment charges, and other income or charges ("Adjusted Operating Income"). The company utilizes Adjusted Operating Income to assess segment level core operating performance and to provide insight to management in evaluating segment operating plan execution and underlying market conditions. It is also a significant component in the company's incentive compensation plans. Adjusted Operating Income is a useful measure for investors because it better reflects the company's underlying operating results, trends and the comparability of these results between periods. The difference between Adjusted Operating Income and operating income (the most comparable GAAP measure) consists of the impact of charges related to legal settlements and reserves, restructuring charges, impairment charges, and other income or charges that may mask the underlying operating results and/or business trends. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease the company's reported operating income. This limitation is best addressed by using Adjusted Operating Income in combination with operating income (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.
The company has presented its operating margin before special items including charges related to legal settlements and reserves, restructuring charges, impairment charges, and other income or charges ("Adjusted Operating Margin"). The company presents Adjusted Operating Margin before special items to give investors a perspective on the underlying business results. Because the company cannot predict the amount and timing of such items and the associated charges or gains that will be recorded in the company's financial statements, it is difficult to include the impact of those items in the forecast.
The company has presented other income, net before special items including tax sharing income related to certain proposed adjustments to prior period tax returns ("Adjusted Other Income, Net"). The company presents Adjusted Other Income, Net as it believes that it is appropriate for investors to consider results excluding these items in addition to its results in accordance with GAAP. The difference between Adjusted Other Income, Net and other income, net (the most comparable GAAP measure) consists of tax sharing income related to certain proposed adjustments to prior period tax returns. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease other income, net. This limitation is best addressed by using Adjusted Other Income, Net in combination with other income, net (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease in reported amounts.
The company has presented income tax (expense) benefit after adjusting for the tax effect of special items including charges related to restructuring, impairment charges, and other income or charges, and certain significant special tax items ("Adjusted Income Tax (Expense) Benefit"). The company presents Adjusted Income Tax (Expense) Benefit to provide investors further information regarding the tax effects of adjustments used in determining the non-GAAP financial measure Adjusted Income from Continuing Operations (as defined below). The difference between Adjusted Income Tax (Expense) Benefit and income tax (expense) benefit (the most comparable GAAP measure) is the tax effect of adjusting items and certain significant special tax items. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease income tax (expense) benefit. This limitation is best addressed by using Adjusted Income Tax (Expense) Benefit in combination with income tax (expense) benefit (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease in reported amounts.
The company has presented income from continuing operations attributable to Tyco Electronics Ltd. before special items including charges related to legal settlements and reserves, restructuring charges, impairment charges, tax sharing income related to certain proposed adjustments to prior period tax returns, certain significant special tax items, other income or charges, and, if applicable, related tax effects ("Adjusted Income from Continuing Operations"). The company presents Adjusted Income from Continuing Operations as it believes that it is appropriate for investors to consider results excluding these items in addition to its results in accordance with GAAP. Adjusted Income from Continuing Operations provides additional information regarding the company's underlying operating results, trends and the comparability of these results between periods. The difference between Adjusted Income from Continuing Operations and income from continuing operations attributable to Tyco Electronics Ltd. (the most comparable GAAP measure) consists of the impact of charges related to legal settlements and reserves, restructuring charges, impairment charges, tax sharing income related to certain proposed adjustments to prior period tax returns, certain significant special tax items, other income or charges, and, if applicable, related tax effects. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease the company's reported results. This limitation is best addressed by using Adjusted Income from Continuing Operations in combination with income from continuing operations attributable to Tyco Electronics Ltd. (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease in reported amounts.
The company has presented diluted earnings per share from continuing operations attributable to Tyco Electronics Ltd. before special items, including charges related to legal settlements and reserves, restructuring charges, impairment charges, tax sharing income related to certain proposed adjustments to prior period tax returns, certain significant special tax items, other income or charges, and, if applicable, related tax effects ("Adjusted Earnings Per Share"). The company presents Adjusted Earnings Per Share because it believes that it is appropriate for investors to consider results excluding these items in addition to its results in accordance with GAAP. The company believes such a measure provides a picture of its results that is more comparable among periods since it excludes the impact of special items, which may recur, but tend to be irregular as to timing, thereby making comparisons between periods more difficult. This limitation is best addressed by using Adjusted Earnings Per Share in combination with diluted earnings per share from continuing operations attributable to Tyco Electronics Ltd. (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.
"Free Cash Flow" (FCF) is a useful measure of the company's cash generation which is free from any significant existing obligation. The difference between cash flows from operating activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash outflows that the company believes are useful to identify. FCF permits management and investors to gain insight into the amount that management employs to measure cash that is free from any significant existing obligation. The difference reflects the impact from:
-- net capital expenditures, -- voluntary pension contributions, and -- cash impact of special items.
Net capital expenditures are subtracted because they represent long-term commitments. Voluntary pension contributions are subtracted from the GAAP measure because this activity is driven by economic financing decisions rather than operating activity. The company forecasts its cash flow results excluding any voluntary pension contributions because it has not yet made a determination about the amount and timing of any future such contributions. In addition, the company's forecast excludes the cash impact of special items because the company cannot predict the amount and timing of such items.
The limitation associated with using FCF is that it subtracts cash items that are ultimately within management's and the Board of Directors' discretion to direct and that therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow results.
FCF as presented herein may not be comparable to similarly-titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company's financial statements as filed with the Securities and Exchange Commission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company's total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF.
Because the company does not predict the amount and timing of special items that might occur in the future, and its forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, the company does not provide reconciliations to GAAP of its forward-looking financial measures.
FORWARD-LOOKING STATEMENTS
This release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Tyco Electronics has no intention and is under no obligation to update or alter (and expressly disclaims any such intention or obligation to do so) its forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as developments in the credit markets; conditions affecting demand for products, particularly the automotive industry and the telecommunications, computer and consumer electronics industries; future goodwill impairment; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; political, economic and military instability in countries in which we operate; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in Tyco Electronics' Annual Report on Form 10-K for the fiscal year ended Sept. 25, 2009 and Quarterly Report on Form 10-Q for the quarterly period ended Dec. 25, 2009, as well as in Tyco Electronics' Current Reports on Form 8-K and other reports filed by Tyco Electronics with the Securities and Exchange Commission.
TYCO ELECTRONICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Quarters For the Six Months
Ended Ended
---------------- ------------------
March March March March
26, 27, 26, 27,
2010 2009 2010 2009
---- ---- ---- ----
(in millions, except per share data)
Net sales $2,957 $2,337 $5,849 $5,050
Cost of sales 1,999 1,803 4,050 3,792
----- ----- ----- -----
Gross margin 958 534 1,799 1,258
Selling, general,
and
administrative
expenses 406 329 774 740
Research,
development, and
engineering
expenses 142 131 280 275
Pre-separation
litigation
charges, net - 135 - 144
Restructuring and
other charges,
net 12 189 78 266
Impairment of
goodwill - 3,547 - 3,547
Operating income
(loss) 398 (3,797) 667 (3,714)
Interest income 6 3 10 9
Interest expense (38) (41) (77) (83)
Other income, net 75 3 83 2
--- --- --- ---
Income (loss) from
continuing
operations before
income taxes 441 (3,832) 683 (3,786)
Income tax
(expense) benefit (135) 594 (204) 580
---- --- ---- ---
Income (loss) from
continuing
operations 306 (3,238) 479 (3,206)
Income (loss) from
discontinued
operations, net
of income taxes - 1 - (66)
--- --- --- ---
Net income (loss) 306 (3,237) 479 (3,272)
Less: net income
attributable to
noncontrolling
interests (2) (1) (3) (3)
--- --- --- ---
Net income (loss)
attributable to
Tyco Electronics
Ltd. $304 $(3,238) $476 $(3,275)
==== ======= ==== =======
Amounts
attributable to
Tyco Electronics
Ltd.:
Income (loss) from
continuing
operations $304 $(3,239) $476 $(3,209)
Income (loss) from
discontinued
operations - 1 - (66)
--- --- --- ---
Net income (loss) $304 $(3,238) $476 $(3,275)
==== ======= ==== =======
Basic earnings
(loss) per share
attributable to
Tyco Electronics
Ltd.:
Income (loss) from
continuing
operations $0.67 $(7.07) $1.04 $(6.99)
Income (loss) from
discontinued
operations - - - (0.15)
--- --- --- -----
Net income (loss) $0.67 $(7.07) $1.04 $(7.14)
===== ====== ===== ======
Diluted earnings
(loss) per share
attributable to
Tyco Electronics
Ltd.:
Income (loss) from
continuing
operations $0.66 $(7.07) $1.03 $(6.99)
Income (loss) from
discontinued
operations - - - (0.15)
--- --- --- -----
Net income (loss) $0.66 $(7.07) $1.03 $(7.14)
===== ====== ===== ======
Weighted-average
number of shares
outstanding:
Basic 457 458 458 459
Diluted 461 458 461 459
TYCO ELECTRONICS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September
March 26, 25,
2010 2009
---- ----
(in millions, except
share data)
Assets
Current Assets:
Cash and cash equivalents $1,839 $1,521
Accounts receivable, net of
allowance for doubtful accounts of
$41 and $48, respectively 2,042 1,975
Inventories 1,550 1,435
Prepaid expenses and other current
assets 527 487
Deferred income taxes 153 161
--- ---
Total current assets 6,111 5,579
Property, plant, and equipment, net 2,896 3,111
Goodwill 3,175 3,160
Intangible assets, net 397 407
Deferred income taxes 2,539 2,518
Receivable from Tyco International
Ltd. and Covidien plc 1,210 1,211
Other assets 224 234
---
Total Assets $16,552 $16,220
======= =======
Liabilities and Shareholders' Equity
Current Liabilities:
Current maturities of long-term
debt $101 $101
Accounts payable 1,304 1,068
Accrued and other current
liabilities 1,713 1,243
Deferred revenue 162 203
--- ---
Total current liabilities 3,280 2,615
Long-term debt 2,313 2,316
Long-term pension and
postretirement liabilities 1,089 1,129
Deferred income taxes 174 188
Income taxes 2,365 2,312
Other liabilities 535 634
---
Total Liabilities 9,756 9,194
----- -----
Commitments and contingencies
Shareholders' Equity:
Common shares, 468,215,574 shares
authorized and issued, CHF 2.09 par
value, at March 26, 2010;
468,215,574 shares authorized and
issued, CHF 2.43 par value, at
September 25, 2009 599 1,049
Contributed surplus 8,137 8,135
Accumulated deficit (1,798) (2,274)
Treasury shares, at cost, 14,699,794
and 9,425,172 shares, respectively (467) (349)
Accumulated other comprehensive
income 317 455
--- ---
Total Tyco Electronics Ltd.
shareholders' equity 6,788 7,016
Noncontrolling interests 8 10
--- ---
Total Shareholders' Equity 6,796 7,026
----- -----
Total Liabilities and Shareholders'
Equity $16,552 $16,220
======= =======
TYCO ELECTRONICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Quarters
Ended
----------------
March March
26, 27,
2010 2009
---- ----
(in millions)
Cash Flows From Operating Activities:
Net income (loss) $306 $(3,237)
(Income) loss from discontinued operations, net
of income taxes - (1)
--- ---
Income (loss) from continuing operations 306 (3,238)
Adjustments to reconcile net cash provided by
operating activities:
Impairment of goodwill - 3,547
Non-cash restructuring and other charges, net (3) 13
Depreciation and amortization 128 125
Deferred income taxes 102 (609)
Provision for losses on accounts receivable and
inventories 5 11
Tax sharing income (75) (3)
Other 18 16
Changes in assets and liabilities, net of the
effects of acquisitions and divestitures:
Accounts receivable, net (70) 337
Inventories (109) 323
Inventoried costs on long-term contracts (5) (31)
Prepaid expenses and other current assets (1) 61
Accounts payable 98 (345)
Accrued and other current liabilities 101 201
Income taxes - 6
Deferred revenue (12) (7)
Other 17 54
--- ---
Net cash provided by continuing operating
activities 500 461
Net cash used in discontinued operating
activities - (37)
--- ---
Net cash provided by operating activities 500 424
--- ---
Cash Flows From Investing Activities:
Capital expenditures (81) (94)
Proceeds from sale of property, plant, and
equipment 3 3
Acquisition of business, net of cash acquired (55) -
Proceeds from divestiture of discontinued
operations, net of cash retained by operations
sold - 6
Proceeds from divestiture of businesses, net of
cash retained by businesses sold - 6
Other (2) 1
--- ---
Net cash used in continuing investing
activities (135) (78)
Net cash used in discontinued investing
activities - (1)
--- ---
Net cash used in investing activities (135) (79)
---- ---
Cash Flows From Financing Activities:
Net decrease in commercial paper - (249)
Proceeds from long-term debt - 251
Repayment of long-term debt - (100)
Repurchase of common shares (147) -
Payment of common share dividends and cash
distributions to shareholders (72) (73)
Transfer to discontinued operations - (32)
Other (1) -
--- ---
Net cash used in continuing financing
activities (220) (203)
Net cash provided by discontinued financing
activities - 37
--- ---
Net cash used in financing activities (220) (166)
---- ----
Effect of currency translation on cash (1) (2)
Net increase (decrease) in cash and cash
equivalents 144 177
Less: net decrease in cash and cash equivalents
related to discontinued operations - 1
Cash and cash equivalents at beginning of
period 1,695 549
----- ---
Cash and cash equivalents at end of period $1,839 $727
====== ====
Supplemental Cash Flow Information:
Income taxes paid, net of refunds $32 $10
Reconciliation to Free Cash Flow:
Net cash provided by continuing operating
activities $500 $461
Capital expenditures, net (78) (91)
--- ---
Free cash flow (1) $422 $370
==== ====
For the Six Months
Ended
------------------
March March
26, 27,
2010 2009
---- ----
(in millions)
Cash Flows From Operating Activities:
Net income (loss) $479 $(3,272)
(Income) loss from discontinued
operations, net of income taxes - 66
--- ---
Income (loss) from continuing operations 479 (3,206)
Adjustments to reconcile net cash
provided by operating activities:
Impairment of goodwill - 3,547
Non-cash restructuring and other
charges, net 16 23
Depreciation and amortization 266 252
Deferred income taxes 155 (679)
Provision for losses on accounts
receivable and inventories - 38
Tax sharing income (83) (5)
Other 38 34
Changes in assets and liabilities, net of
the effects of acquisitions and
divestitures:
Accounts receivable, net (146) 832
Inventories (129) 207
Inventoried costs on long-term contracts (25) (59)
Prepaid expenses and other current assets 26 215
Accounts payable 260 (544)
Accrued and other current liabilities 4 (156)
Income taxes - 28
Deferred revenue (40) (59)
Other 9 25
--- ---
Net cash provided by continuing operating
activities 830 493
Net cash used in discontinued operating
activities - (36)
--- ---
Net cash provided by operating activities 830 457
--- ---
Cash Flows From Investing Activities:
Capital expenditures (157) (209)
Proceeds from sale of property, plant,
and equipment 5 7
Acquisition of business, net of cash
acquired (55) -
Proceeds from divestiture of discontinued
operations, net of cash retained by
operations sold - 29
Proceeds from divestiture of businesses,
net of cash retained by businesses sold 12 6
Other (4) (3)
--- ---
Net cash used in continuing investing
activities (199) (170)
Net cash used in discontinued investing
activities - (2)
--- ---
Net cash used in investing activities (199) (172)
---- ----
Cash Flows From Financing Activities:
Net decrease in commercial paper - (649)
Proceeds from long-term debt - 442
Repayment of long-term debt - (119)
Repurchase of common shares (165) (152)
Payment of common share dividends and
cash distributions to shareholders (146) (147)
Transfer to discontinued operations - (32)
Other (2) (3)
--- ---
Net cash used in continuing financing
activities (313) (660)
Net cash provided by discontinued
financing activities - 37
--- ---
Net cash used in financing activities (313) (623)
---- ----
Effect of currency translation on cash - (26)
Net increase (decrease) in cash and cash
equivalents 318 (364)
Less: net decrease in cash and cash
equivalents related to discontinued
operations - 1
Cash and cash equivalents at beginning of
period 1,521 1,090
----- -----
Cash and cash equivalents at end of
period $1,839 $727
====== ====
Supplemental Cash Flow Information:
Income taxes paid, net of refunds $48 $72
Reconciliation to Free Cash Flow:
Net cash provided by continuing operating
activities $830 $493
Capital expenditures, net (152) (202)
---- ----
Free cash flow (1) $678 $291
==== ====
(1) Free cash flow is a non-GAAP measure. See description of non-
GAAP measures contained in this release.
TYCO ELECTRONICS LTD.
CONSOLIDATED SEGMENT DATA (UNAUDITED)
For the Quarters Ended
----------------------
March 26, March 27,
2010 2009
---- ----
($ in millions)
Net Sales:
Electronic Components $1,984 $1,280
Network Solutions 394 402
Specialty Products 371 346
Subsea Communications 208 309
Total $2,957 $2,337
====== ======
Operating Income (Loss):
Electronic Components $262 13.2% $(3,654) NM (1)
Network Solutions 42 10.7% 21 5.2%
Specialty Products 49 13.2% (83) NM (1)
Subsea Communications 45 21.6% 54 17.5%
Pre-separation
litigation charges, net - (135)
Total $398 13.5% $(3,797) NM (1)
==== =======
For the Six Months Ended
------------------------
March 26, March 27,
2010 2009
---- ----
($ in millions)
Net Sales:
Electronic Components $3,895 $2,905
Network Solutions 816 858
Specialty Products 729 713
Subsea Communications 409 574
Total $5,849 $5,050
====== ======
Operating Income (Loss):
Electronic Components $425 10.9% $(3,672) NM (1)
Network Solutions 62 7.6% 65 7.6%
Specialty Products 100 13.7% (55) NM (1)
Subsea Communications 80 19.6% 92 16.0%
Pre-separation
litigation charges, net - (144)
Total $667 11.4% $(3,714) NM (1)
==== =======
(1) Not meaningful.
TYCO ELECTRONICS LTD.
NET SALES GROWTH RECONCILIATION (UNAUDITED)
Change in Net Sales for the
Quarter Ended March 26, 2010
versus Net Sales for the
Quarter Ended March 27, 2009
----------------------------
Translation
Organic (1) (2)
----------- ------------
($ in millions)
Electronic Components
(3):
Automotive $433 77.8% $55
DataComm 18 8.2 4
Industrial 47 29.4 9
Appliance 51 56.1 4
Computer 18 18.6 2
Consumer Devices 30 39.2 (1)
Other 46 45.8 4
--- ----
Total 643 50.2 77
--- ---- ---
Network Solutions (3):
Energy (12) (6.7) 12
Enterprise Networks 7 7.9 7
Service Providers (17) (15.1) 6
Other - 5.9 1
--- ---
Total (22) (5.7) 26
--- ---- ---
Specialty Products (3):
Aerospace, Defense, and
Marine (13) (8.0) 4
Touch Systems 5 6.4 3
Circuit Protection 26 67.2 3
Medical (3) (5.2) -
--- ----
Total 15 4.1 10
--- --- ---
Subsea Communications (99) (32.8) (2)
--- ----- ---
Total $537 23.0% $111
==== ==== ====
Change in Net Sales for the
Quarter Ended March 26, 2010
versus Net Sales for the
Quarter Ended March 27, 2009
----------------------------
Divestiture Total
----------- -----
($ in millions)
Electronic Components
(3):
Automotive $- $488 90.4%
DataComm (7) 15 7.0
Industrial - 56 35.0
Appliance - 55 60.4
Computer (1) 19 19.2
Consumer Devices (7) 22 28.9
Other (1) 49 49.0
---
Total (16) 704 55.0
--- --- ----
Network Solutions (3):
Energy (12) (12) (6.4)
Enterprise Networks - 14 15.2
Service Providers - (11) (9.4)
Other - 1 20.0
---
Total (12) (8) (2.0)
--- --- ----
Specialty Products (3):
Aerospace, Defense, and
Marine - (9) (5.6)
Touch Systems - 8 9.8
Circuit Protection - 29 74.4
Medical - (3) (4.7)
---
Total - 25 7.2
--- --- ---
Subsea Communications - (101) (32.7)
--- ---- -----
Total $(28) $620 26.5%
==== ==== ====
Percentage of
Segment's
Total
Net Sales for
the
Quarter Ended
March 26, 2010
--------------
Electronic Components
(3):
Automotive 52%
DataComm 12
Industrial 11
Appliance 7
Computer 6
Consumer Devices 5
Other 7
Total 100%
---
Network Solutions (3):
Energy 45
Enterprise Networks 27
Service Providers 27
Other 1
Total 100%
---
Specialty Products (3):
Aerospace, Defense, and
Marine 42
Touch Systems 24
Circuit Protection 18
Medical 16
Total 100%
---
Subsea Communications
Total
Change in Net Sales for the
Six Months Ended March 26, 2010
versus Net Sales for the
Six Months Ended March 27, 2009
-------------------------------
Translation
Organic (1) (2)
----------- ------------
($ in millions)
Electronic
Components (3):
Automotive $663 50.8% $127
DataComm (19) (4.0) 14
Industrial 33 9.5 20
Appliance 67 33.2 7
Computer 11 5.2 5
Consumer Devices 40 21.2 -
Other 52 23.5 14
Total 847 29.1 187
--- ---- ---
Network Solutions
(3):
Energy (40) (10.1) 30
Enterprise Networks 2 0.7 12
Service Providers (50) (20.5) 14
Other - 3.1 2
Total (88) (10.5) 58
--- ----- ---
Specialty Products
(3):
Aerospace, Defense,
and Marine (39) (11.9) 10
Touch Systems 6 3.4 6
Circuit Protection 35 35.4 5
Medical (10) (7.8) 3
Total (8) (1.4) 24
--- ---- ---
Subsea
Communications (165) (28.8) -
---- ----- ---
Total $586 11.6% $269
==== ==== ====
Change in Net Sales for the
Six Months Ended March 26, 2010
versus Net Sales for the
Six Months Ended March 27, 2009
-------------------------------
Divestiture Total
----------- -----
($ in millions)
Electronic
Components (3):
Automotive $- $790 63.0%
DataComm (18) (23) (4.9)
Industrial - 53 15.1
Appliance - 74 36.8
Computer (3) 13 5.9
Consumer Devices (20) 20 10.7
Other (3) 63 28.3
--- ----
Total (44) 990 34.1
--- --- ----
Network Solutions
(3):
Energy (12) (22) (5.5)
Enterprise Networks - 14 7.1
Service Providers - (36) (14.6)
Other - 2 18.2
--- ----
Total (12) (42) (4.9)
--- --- ----
Specialty Products
(3):
Aerospace, Defense,
and Marine - (29) (9.0)
Touch Systems - 12 7.3
Circuit Protection - 40 40.8
Medical - (7) (5.5)
--- ----
Total - 16 2.2
--- --- ---
Subsea
Communications - (165) (28.7)
--- ---- -----
Total $(56) $799 15.8%
==== ==== ====
Percentage of
Segment's
Total
Net Sales for
the
Six Months
Ended
March 26, 2010
--------------
Electronic
Components (3):
Automotive 52%
DataComm 11
Industrial 10
Appliance 8
Computer 6
Consumer Devices 5
Other 8
---
Total 100%
---
Network Solutions
(3):
Energy 47
Enterprise Networks 26
Service Providers 26
Other 1
---
Total 100%
---
Specialty Products
(3):
Aerospace, Defense,
and Marine 40
Touch Systems 24
Circuit Protection 19
Medical 17
---
Total 100%
---
Subsea
Communications
Total
(1) Represents the change in net sales resulting from volume and
price changes, before consideration of acquisitions, divestitures,
and the impact of changes in foreign currency exchange rates.
Organic net sales growth is a non-GAAP measure. See description
of non-GAAP measures contained in this release.
(2) Represents the change in net sales resulting from changes in
foreign currency exchange rates.
(3) Industry end market information about net sales is presented
consistently with our internal management reporting and may be
periodically revised as management deems necessary.
TYCO ELECTRONICS LTD.
NET SALES GROWTH RECONCILIATION (UNAUDITED)
Change in Net Sales for the
Quarter Ended March 26, 2010
versus Net Sales for the
Quarter Ended December 25, 2009
-------------------------------
Translation
Organic (1) (2)
----------- ------------
($ in millions)
Electronic Components
(3):
Automotive $51 4.9% $(38)
DataComm 14 6.6 (3)
Industrial 34 18.2 (6)
Appliance 18 14.1 (2)
Computer 4 3.5 -
Consumer Devices (9) (8.1) (2)
Other 14 10.4 (2)
Total 126 6.6 (53)
--- --- ---
Network Solutions (3):
Energy (10) (5.2) (6)
Enterprise Networks - 0.3 (1)
Service Providers 6 4.9 (5)
Other - 6.0 -
Total (4) (1.0) (12)
--- ---- ---
Specialty Products (3):
Aerospace, Defense, and
Marine 12 7.9 (3)
Touch Systems 5 5.2 (2)
Circuit Protection (1) (1.0) (1)
Medical 4 7.5 (1)
Total 20 5.6 (7)
--- --- ---
Subsea Communications 8 3.9 (1)
--- --- ---
Total $150 5.2% $(73)
==== === ====
Change in Net Sales for the
Quarter Ended March 26, 2010
versus Net Sales for the
Quarter Ended December 25, 2009
-------------------------------
Divestiture Total
----------- -----
($ in millions)
Electronic Components
(3):
Automotive $- $13 1.3%
DataComm - 11 5.0
Industrial - 28 14.9
Appliance - 16 12.3
Computer - 4 3.5
Consumer Devices - (11) (10.1)
Other - 12 8.8
Total - 73 3.8
--- --- ---
Network Solutions (3):
Energy (12) (28) (13.7)
Enterprise Networks - (1) (0.9)
Service Providers - 1 1.0
Other - - -
Total (12) (28) (6.6)
--- --- ----
Specialty Products (3):
Aerospace, Defense, and
Marine - 9 6.3
Touch Systems - 3 3.4
Circuit Protection - (2) (2.9)
Medical - 3 5.2
Total - 13 3.6
--- --- ---
Subsea Communications - 7 3.5
--- --- ---
Total $(12) $65 2.2%
==== === ===
Percentage
of
Segment's
Total Net
Sales for
the Quarter
Ended March
26, 2010
-----------
Electronic Components
(3):
Automotive 52%
DataComm 12
Industrial 11
Appliance 7
Computer 6
Consumer Devices 5
Other 7
Total 100%
---
Network Solutions (3):
Energy 45
Enterprise Networks 27
Service Providers 27
Other 1
Total 100%
---
Specialty Products (3):
Aerospace, Defense, and
Marine 42
Touch Systems 24
Circuit Protection 18
Medical 16
Total 100%
---
Subsea Communications
Total
(1) Represents the change in net sales resulting from volume and
price changes, before consideration of acquisitions, divestitures,
and the impact of changes in foreign currency exchange rates.
Organic net sales growth is a non-GAAP measure. See description
of non-GAAP measures contained in this release.
(2) Represents the change in net sales resulting from changes in
foreign currency exchange rates.
(3) Industry end market information about net sales is presented
consistently with our internal management reporting and may be
periodically revised as management deems necessary.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 26, 2010
(UNAUDITED)
Adjustments
-----------
Restructuring
and Other
U.S. GAAP Charges, Net
--------- ------------
($ in millions, except per share data)
Operating Income:
Electronic Components $262 $8
Network Solutions 42 -
Specialty Products 49 4
Subsea Communications 45 -
Total $398 $12
==== ===
Operating Margin 13.5%
====
Other Income, Net $75 $-
=== ===
Income Tax Expense $(135) $(1)
===== ===
Income from Continuing
Operations Attributable to
Tyco Electronics Ltd. $304 $11
==== ===
Diluted Earnings per Share
from Continuing Operations
Attributable to Tyco
Electronics Ltd. $0.66 $0.02
===== =====
Adjustments
-----------
Tax Adjusted
(Non-GAAP)
Items (1) (2)
--------- -----------
($ in millions, except per share data)
Operating Income:
Electronic Components $- $270
Network Solutions - 42
Specialty Products - 53
Subsea Communications - 45
Total $- $410
=== ====
Operating Margin 13.9%
====
Other Income, Net $(64) $11
==== ===
Income Tax Expense $46 $(90)
=== ====
Income from Continuing
Operations
Attributable to Tyco
Electronics Ltd. $(18) $297
==== ====
Diluted Earnings per
Share from Continuing
Operations
Attributable to Tyco
Electronics Ltd. $(0.04) $0.64
====== =====
(1) Includes income tax expense related to certain proposed
adjustments to prior year tax returns and the related impact to
other income pursuant to the Tax Sharing Agreement with Tyco
International and Covidien. Also includes an income tax benefit
recognized in connection with a reduction in the valuation allowance
associated with certain tax loss carryforwards.
(2) See description of non-GAAP measures contained in this release.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 27, 2009
(UNAUDITED)
Adjustments
-----------
Restructuring
Impairment
and Other of
Charges, Net
U.S. GAAP (1) Goodwill
--------- ------------- --------
($ in millions, except per share data)
Operating Income (Loss):
Electronic Components $(3,654) $166 $3,435
Network Solutions 21 8 -
Specialty Products (83) 12 112
Subsea Communications 54 1 -
Pre-separation
litigation charges, net (135) - -
Total $(3,797) $187 $3,547
======= ==== ======
Operating Margin NM (4)
======
Other Income, Net $3 $- $-
=== === ===
Income Tax (Expense)
Benefit $594 $(43) $(523)
==== ==== =====
Income (Loss) from
Continuing Operations
Attributable to Tyco
Electronics Ltd. $(3,239) $144 $3,024
======= ==== ======
Diluted Earnings (Loss)
per Share from
Continuing Operations
Attributable to Tyco
Electronics Ltd. $(7.07) $0.31 $6.60
====== ===== =====
Adjustments
-----------
Other
Items, Adjusted
(Non-GAAP)
Net (2) (3)
------- -----------
($ in millions, except per share data)
Operating Income
(Loss):
Electronic
Components $- $(53)
Network
Solutions - 29
Specialty
Products - 41
Subsea
Communications - 55
Pre-separation
litigation
charges, net 135 -
Total $135 $72
==== ===
Operating Margin 3.1%
===
Other Income,
Net $- $3
=== ===
Income Tax
(Expense)
Benefit $- $28
=== ===
Income (Loss)
from Continuing
Operations
Attributable to
Tyco
Electronics
Ltd. $135 $64
==== ===
Diluted Earnings
(Loss) per
Share from
Continuing
Operations
Attributable to
Tyco
Electronics
Ltd. $0.29 $0.14
===== =====
(1) Includes $189 million recorded in net restructuring and other
charges and a $2 million credit recorded in cost of sales.
(2) Consists of $135 million of costs related to the settlement of
pre-separation securities litigation.
(3) See description of non-GAAP measures contained in this release.
(4) Not meaningful.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Six Months Ended March 26, 2010
(UNAUDITED)
Adjustments
-----------
Restructuring
and Other
Charges, Net
U.S. GAAP (1)
--------- -------------
($ in millions, except per share data)
Operating Income:
Electronic Components $425 $52
Network Solutions 62 17
Specialty Products 100 4
Subsea Communications 80 2
Total $667 $75
==== ===
Operating Margin 11.4%
====
Other Income, Net $83 $-
=== ===
Income Tax Expense $(204) $(17)
===== ====
Income from Continuing
Operations Attributable to Tyco
Electronics Ltd. $476 $58
==== ===
Diluted Earnings per Share from
Continuing Operations
Attributable to Tyco
Electronics Ltd. $1.03 $0.13
===== =====
Adjustments
-----------
Tax Adjusted
Items (Non-GAAP)
(2) (3)
------ -----------
($ in millions, except per share data)
Operating Income:
Electronic Components $- $477
Network Solutions - 79
Specialty Products - 104
Subsea Communications - 82
Total $- $742
=== ====
Operating Margin 12.7%
====
Other Income, Net $(64) $19
==== ===
Income Tax Expense $46 $(175)
=== =====
Income from Continuing
Operations Attributable
to Tyco Electronics
Ltd. $(18) $516
==== ====
Diluted Earnings per
Share from Continuing
Operations Attributable
to Tyco Electronics
Ltd. $(0.04) $1.12
====== =====
(1) Includes $78 million recorded in net restructuring and other
charges and a $3 million credit recorded in cost of sales.
(2) Includes income tax expense related to certain proposed
adjustments to prior year tax returns and the related impact to
other income pursuant to the Tax Sharing Agreement with Tyco
International and Covidien. Also includes an income tax benefit
recognized in connection with a reduction in the valuation allowance
associated with certain tax loss carryforwards.
(3) See description of non-GAAP measures contained in this release.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Six Months Ended March 27, 2009
(UNAUDITED)
Adjustments
-----------
Restructuring
and Other Impairment of
Charges, Net
U.S. GAAP (1) Goodwill
--------- ------------- --------
($ in millions, except per share data)
Operating Income
(Loss):
Electronic
Components $(3,672) $208 $3,435
Network Solutions 65 27 -
Specialty Products (55) 26 112
Subsea
Communications 92 4 -
Pre-separation
litigation charges,
net (144) - -
Total $(3,714) $265 $3,547
======= ==== ======
Operating Margin NM (5)
======
Other Income, Net $2 $- $-
=== === ===
Income Tax (Expense)
Benefit $580 $(66) $(523)
==== ==== =====
Income (Loss) from
Continuing
Operations
Attributable to
Tyco Electronics
Ltd. $(3,209) $199 $3,024
======= ==== ======
Diluted Earnings
(Loss) per Share
from Continuing
Operations
Attributable to
Tyco Electronics
Ltd. (4) $(6.99) $0.43 $6.57
====== ===== =====
Adjustments
-----------
Other
Items, Adjusted
(Non-GAAP)
Net (2) (3)
------- -----------
($ in millions, except per share data)
Operating Income
(Loss):
Electronic
Components $- $(29)
Network
Solutions - 92
Specialty
Products 8 91
Subsea
Communications - 96
Pre-separation
litigation
charges, net 144 -
Total $152 $250
==== ====
Operating Margin 5.0%
===
Other Income,
Net $- $2
=== ===
Income Tax
(Expense)
Benefit $(3) $(12)
=== ====
Income (Loss)
from Continuing
Operations
Attributable to
Tyco
Electronics
Ltd. $149 $163
==== ====
Diluted Earnings
(Loss) per
Share from
Continuing
Operations
Attributable to
Tyco
Electronics
Ltd. (4) $0.32 $0.35
===== =====
(1) Includes $266 million recorded in net restructuring and other
charges and a $1 million credit recorded in cost of sales.
(2) Consists of $8 million of costs related to a product liability
matter from several years ago recorded in selling, general, and
administrative expenses and $144 million of costs related to pre-
separation securities litigation.
(3) See description of non-GAAP measures contained in this release.
(4) GAAP diluted shares excludes 1 million of non-vested restricted
share awards and non-vested options as the inclusion of these
securities would have been anti-dilutive. Such amounts are included
in non-GAAP diluted shares.
(5) Not meaningful.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
For the Quarter Ended December 25, 2009
(UNAUDITED)
Adjustment
----------
Restructuring
and Other Adjusted
Charges, Net (Non-GAAP)
U.S. GAAP (1) (2)
--------- ------------- -----------
($ in millions, except per share data)
Operating Income:
Electronic Components $163 $44 $207
Network Solutions 20 17 37
Specialty Products 51 - 51
Subsea Communications 35 2 37
Total $269 $63 $332
==== === ====
Operating Margin 9.3% 11.5%
=== ====
Other Income, Net $8 $- $8
=== === ===
Income Tax Expense $(69) $(16) $(85)
==== ==== ====
Income from Continuing
Operations
Attributable to Tyco
Electronics Ltd. $172 $47 $219
==== === ====
Diluted Earnings per
Share from Continuing
Operations
Attributable to Tyco
Electronics Ltd. $0.37 $0.10 $0.47
===== ===== =====
(1) Includes $66 million recorded in net restructuring and other
charges and a $3 million credit recorded in cost of sales.
(2) See description of non-GAAP measures contained in this release.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
For the Quarter Ended June 26, 2009
(UNAUDITED)
Adjustments
-----------
Restructuring
and Other Adjusted
(Non-GAAP)
U.S. GAAP Charges, Net (1)
--------- ------------ -----------
($ in millions, except per share data)
Operating Income:
Electronic Components $(82) $46 $(36)
Network Solutions 31 15 46
Specialty Products 42 1 43
Subsea Communications 73 1 74
---
Total $64 $63 $127
=== === ====
Operating Margin 2.6% 5.1%
=== ===
Other Income, Net $5 $- $5
=== === ===
Income Tax Expense $(3) $(12) $(15)
=== ==== ====
Income from
Continuing
Operations
Attributable to Tyco
Electronics Ltd. $26 $51 $77
=== === ===
Diluted Earnings per
Share from
Continuing
Operations
Attributable to Tyco
Electronics Ltd. $0.06 $0.11 $0.17
===== ===== =====
(1) See description of non-GAAP measures contained in this release.
TYCO ELECTRONICS LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 25, 2009
(UNAUDITED)
Adjustments
-----------
Restructuring
and Other Impairment of
Charges, Net
U.S. GAAP (1) Goodwill
--------- ------------- --------
($ in millions, except per share data)
Operating Income
(Loss):
Electronic
Components $(3,716) $278 $3,435
Network Solutions 133 56 -
Specialty Products 34 31 112
Subsea
Communications 219 8 -
Pre-separation
litigation
charges, net (144) - -
--- ---
Total $(3,474) $373 $3,547
======= ==== ======
Operating Margin NM (6)
======
Other Income
(Expense), Net $(48) $- $-
==== === ===
Income Tax
(Expense) Benefit $576 $(87) $(523)
==== ==== =====
Income (Loss) from
Continuing
Operations
Attributable to
Tyco Electronics
Ltd. $(3,100) $286 $3,024
======= ==== ======
Diluted Earnings
(Loss) per Share
from Continuing
Operations
Attributable to
Tyco Electronics
Ltd. (5) $(6.75) $0.62 $6.57
====== ===== =====
Adjustments
-----------
Other
Tax Items, Adjusted
Items (Non-GAAP)
(2) Net (3) (4)
------ ------- -----------
($ in millions, except per share data)
Operating Income
(Loss):
Electronic
Components $- $- $(3)
Network Solutions - - 189
Specialty Products - 8 185
Subsea
Communications - - 227
Pre-separation
litigation charges,
net - 144 -
--- ---
Total $- $152 $598
=== ==== ====
Operating Margin 5.8%
===
Other Income
(Expense), Net $86 $(22) $16
=== ==== ===
Income Tax (Expense)
Benefit $(46) $(3) $(83)
==== === ====
Income (Loss) from
Continuing
Operations
Attributable to
Tyco Electronics
Ltd. $40 $130 $380
=== ==== ====
Diluted Earnings
(Loss) per Share
from Continuing
Operations
Attributable to
Tyco Electronics
Ltd. (5) $0.09 $0.28 $0.83
===== ===== =====
(1) Includes $375 million recorded in net restructuring and other
charges and a $2 million credit recorded in cost of sales.
(2) Includes an income tax benefit primarily related to proposed
adjustments to prior year tax returns, and charges to other expense
pursuant to the Tax Sharing Agreement with Tyco International and
Covidien.
(3) Consists of $144 million of costs related to the settlement of
pre-separation securities litigation and $8 million of costs
related to a product liability matter from several years ago
recorded in selling, general, and administrative expenses. Also
includes net gain related to retirement of debt of $19 million.
(4) See description of non-GAAP measures contained in this release.
(5) GAAP diluted shares excludes 1 million of non-vested restricted
share awards and non-vested options as the inclusion of these
securities would have been anti-dilutive. Such amounts are included
in non-GAAP diluted shares.
(6) Not meaningful.
Source: Tyco Electronics Ltd.
CONTACT: Media Relations, Sheri Woodruff, Office, +1-610-893-9555,
Mobile, +1-609-933-9243, swoodruff@tycoelectronics.com; Investor Relations,
John Roselli, Office, +1-610-893-9559, john.roselli@tycoelectronics.com, or
Keith Kolstrom, Office, +1-610-893-9551, keith.kolstrom@tycoelectronics.com,
all of Tyco Electronics Ltd.
Web Site: http://www.tycoelectronics.com/
