# EDGAR Filing Document

**Accession Number:** 0001385157
**File Stem:** 0001558370-23-000648
**Filing Date:** 2023-1
**Character Count:** 176590
**Document Hash:** 0e0966e3a7b8af5d76650b93ba214238
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-000648.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0001558370-23-000648

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 74

**CONFORMED PERIOD OF REPORT**: 20221230

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TE Connectivity Ltd.
- **CENTRAL INDEX KEY:** 0001385157
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065]
- **IRS NUMBER:** 980518048
- **STATE OF INCORPORATION:** V8
- **FISCAL YEAR END:** 0929

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33260
- **FILM NUMBER:** 23560120

**BUSINESS ADDRESS:**
- **STREET 1:** MUHLENSTRASSE 26
- **CITY:** SCHAFFHAUSEN
- **STATE:** V8
- **ZIP:** CH-8200
- **BUSINESS PHONE:** 41 0 52 633 6661

**MAIL ADDRESS:**
- **STREET 1:** MUHLENSTRASSE 26
- **CITY:** SCHAFFHAUSEN
- **STATE:** V8
- **ZIP:** CH-8200

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Tyco Electronics Ltd.
- **DATE OF NAME CHANGE:** 20070104

?xml version='1.0' encoding='UTF-8'?

[**Table of Contents**](#TOC)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

---

| | |
|:---|:---|
| **(Mark One)** |  |
| ☒ | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **For the Quarterly Period Ended December 30, 2022** | **For the Quarterly Period Ended December 30, 2022** |
| **or** | **or** |
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**001-33260**

(Commission File Number)

![Graphic](tel-20221230x10q003.jpg)

**TE CONNECTIVITY LTD.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Switzerland**<br>(Jurisdiction of Incorporation) | **98-0518048**<br>(I.R.S. Employer Identification No.) |
| **Mühlenstrasse 26, CH-8200 Schaffhausen, Switzerland**<br>(Address of principal executive offices) | **+41 (0)52 633 66 61**<br>(Registrant's telephone number) |

---

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol** | **Name of each exchange on which registered** |
| Common Shares, Par Value CHF 0.57 | TEL | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of common shares outstanding as of January 20, 2023 was 316,456,616.

------

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**INDEX TO FORM 10-Q**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [**Part I.**](#PARTIFINANCIALINFORMATION_451732) | [**Financial Information**](#PARTIFINANCIALINFORMATION_451732) |  |
| [Item 1.](#ITEM1FINANCIALSTATEMENTS_76926) | [Financial Statements](#ITEM1FINANCIALSTATEMENTS_76926) | 1 |
|  | [Condensed Consolidated Statements of Operations for the Quarters Ended December 30, 2022 and December 24, 2021 (unaudited)](#CONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATI) | 1 |
|  | [Condensed Consolidated Statements of Comprehensive Income for the Quarters Ended December 30, 2022 and December 24, 2021 (unaudited)](#CONDENSEDCONSOLIDATEDSTATEMENTSOFCOMPREH) | 2 |
|  | [Condensed Consolidated Balance Sheets as of December 30, 2022 and September 30, 2022 (unaudited)](#CONDENSEDCONSOLIDATEDBALANCESHEETS_17346) | 3 |
|  | [Condensed Consolidated Statements of Shareholders' Equity for the Quarters Ended December 30, 2022 and December 24, 2021 (unaudited)](#CONDENSEDCONSOLIDATEDSTATEMENTSOFSHAREHO) | 4 |
|  | [Condensed Consolidated Statements of Cash Flows for the Quarters Ended December 30, 2022 and December 24, 2021 (unaudited)](#CONDENSEDCONSOLIDATEDSTATEMENTSOFCASHFLO) | 5 |
|  | [Notes to Condensed Consolidated Financial Statements (unaudited)](#NOTESTOCONDENSEDCONSOLFINSTMTS) | 6 |
| [Item 2.](#ITEM2MANAGEMENTSDISCUSSIONANDANALYSISOFF) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ITEM2MANAGEMENTSDISCUSSIONANDANALYSISOFF) | 19 |
| [Item 3.](#ITEM3QUANTITATIVEANDQUALITATIVEDISCLOSUR) | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM3QUANTITATIVEANDQUALITATIVEDISCLOSUR) | 34 |
| [Item 4.](#ITEM4CONTROLSANDPROCEDURES_750034) | [Controls and Procedures](#ITEM4CONTROLSANDPROCEDURES_750034) | 34 |
| [**Part II.**](#PARTIIOTHERINFORMATION_218064) | [**Other Information**](#PARTIIOTHERINFORMATION_218064) |  |
| [Item 1.](#ITEM1LEGALPROCEEDINGS_317193) | [Legal Proceedings](#ITEM1LEGALPROCEEDINGS_317193) | 35 |
| [Item 1A.](#ITEM1ARISKFACTORS_356550) | [Risk Factors](#ITEM1ARISKFACTORS_356550) | 35 |
| [Item 2.](#ITEM2UNREGISTEREDSALESOFEQUITYSECURITIES) | [Unregistered Sales of Equity Securities and Use of Proceeds](#ITEM2UNREGISTEREDSALESOFEQUITYSECURITIES) | 35 |
| [Item 6.](#ITEM6EXHIBITS_240792) | [Exhibits](#ITEM6EXHIBITS_240792) | 36 |
| [Signatures](#SIGNATURES_216744) |  | 37 |

---

i

[**Table of Contents**](#TOC)

**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**TE CONNECTIVITY LTD.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions, except per share data)** | **(in millions, except per share data)** |
| **Net sales** | $3841 | $3818 |
| Cost of sales | 2654 | 2588 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Gross margin** | 1187 | 1230 |
| Selling, general, and administrative expenses | 392 | 363 |
| Research, development, and engineering expenses | 173 | 175 |
| Acquisition and integration costs | 9 | 8 |
| Restructuring and other charges, net | 111 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Operating income** | 502 | 672 |
| Interest income | 9 | 2 |
| Interest expense | (21) | (12) |
| Other income (expense), net | (5) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income from continuing operations before income taxes** | 485 | 677 |
| Income tax expense | (87) | (110) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income from continuing operations** | 398 | 567 |
| Loss from discontinued operations, net of income taxes | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income**  | $397 | $566 |
| **Basic earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations | $1.26 | $1.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from discontinued operations |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 1.25 | 1.73 |
| **Diluted earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations | $1.25 | $1.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from discontinued operations |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 1.24 | 1.72 |
| **Weighted-average number of shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 317 | 327 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 319 | 330 |

---

See Notes to Condensed Consolidated Financial Statements.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| **Net income** | $397 | $566 |
| **Other comprehensive income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation | 305 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | 2 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on cash flow hedges, net of income taxes | 69 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | 376 | 23 |
| **Comprehensive income** | 773 | 589 |
| Less: comprehensive (income) loss attributable to noncontrolling interests | (9) | 6 |
| **Comprehensive income attributable to TE Connectivity Ltd.** | $764 | $595 |

---

See Notes to Condensed Consolidated Financial Statements.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **December 30,**<br>**2022** | **September 30,**<br>**2022** |
|  | **(in millions, except share** | **(in millions, except share** |
|  | **data)** | **data)** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $793 | $1088 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts of $45  | 2910 | 2865 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 2927 | 2676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 688 | 639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 7318 | 7268 |
| Property, plant, and equipment, net | 3781 | 3567 |
| Goodwill | 5511 | 5258 |
| Intangible assets, net | 1357 | 1288 |
| Deferred income taxes | 2591 | 2498 |
| Other assets | 795 | 903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $21353 | $20782 |
| **Liabilities, redeemable noncontrolling interests, and shareholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | $820 | $914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1751 | 1593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 1849 | 2125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4420 | 4632 |
| Long-term debt | 3398 | 3292 |
| Long-term pension and postretirement liabilities | 728 | 695 |
| Deferred income taxes | 228 | 244 |
| Income taxes | 319 | 304 |
| Other liabilities | 792 | 718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 9885 | 9885 |
| Commitments and contingencies (Note 9) |  |  |
| Redeemable noncontrolling interests | 104 | 95 |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares, CHF 0.57 par value, 330,830,781 shares authorized and issued | 146 | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated earnings | 13200 | 12832 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares, at cost, 14,065,031 and 12,749,540 shares, respectively | (1854) | (1681) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (128) | (495) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 11364 | 10802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities, redeemable noncontrolling interests, and shareholders' equity** | $21353 | $20782 |

---

See Notes to Condensed Consolidated Financial Statements.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

**(UNAUDITED)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** | **For the Quarter Ended December 30, 2022** |
|  | **Common Shares** | **Common Shares** | **Treasury Shares** | **Treasury Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | <br><br>**Contributed**<br>**Surplus** | <br>**Accumulated**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | <br>**Total**<br>**Shareholders'**<br>**Equity** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Balance at September 30, 2022** | 331 | $146 | (13) | $(1681) | $— | $12832 | $(495) | $10802 |
| Net income |  |  |  |  |  | 397 |  | 397 |
| Other comprehensive income |  |  |  |  |  |  | 367 | 367 |
| Share-based compensation expense |  |  |  |  | 32 |  |  | 32 |
| Exercise of share options |  |  |  | 11 |  |  |  | 11 |
| Restricted share award vestings and other activity |  |  | 1 | 49 | (32) | (29) |  | (12) |
| Repurchase of common shares |  |  | (2) | (233) |  |  |  | (233) |
| **Balance at December 30, 2022** | 331 | $146 | (14) | $(1854) | $— | $13200 | $(128) | $11364 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** | **For the Quarter Ended December 24, 2021** |
|  | **Common Shares** | **Common Shares** | **Treasury Shares** | **Treasury Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | <br><br>**Contributed**<br>**Surplus** | <br>**Accumulated**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | <br>**Total**<br>**Shareholders'**<br>**Equity** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Balance at September 24, 2021** | 336 | $148 | (9) | $(1055) | $— | $11709 | $(168) | $10634 |
| Net income |  |  |  |  |  | 566 |  | 566 |
| Other comprehensive income |  |  |  |  |  |  | 29 | 29 |
| Share-based compensation expense |  |  |  |  | 32 |  |  | 32 |
| Exercise of share options |  |  |  | 22 |  |  |  | 22 |
| Restricted share award vestings and other activity |  |  | 1 | 5 | (32) | 10 |  | (17) |
| Repurchase of common shares |  |  | (2) | (246) |  |  |  | (246) |
| **Balance at December 24, 2021** | 336 | $148 | (10) | $(1274) | $— | $12285 | $(139) | $11020 |

---

See Notes to Condensed Consolidated Financial Statements.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| **Cash flows from operating activities:** |  |  |
| Net income | $397 | $566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations, net of income taxes | 1 | 1 |
| Income from continuing operations | 398 | 567 |
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 187 | 198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (35) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease cost | 34 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for losses on accounts receivable and inventories | 51 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 32 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 49 | (9) |
| Changes in assets and liabilities, net of the effects of acquisitions and divestitures: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (54) | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (324) | (264) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (86) | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 149 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | (39) | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 25 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 194 | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 581 | 532 |
| **Cash flows from investing activities:** |  |  |
| Capital expenditures | (183) | (172) |
| Proceeds from sale of property, plant, and equipment | 1 | 54 |
| Acquisition of businesses, net of cash acquired | (109) | (100) |
| Proceeds from divestiture of businesses, net of cash retained by businesses sold |  | 16 |
| Other | 26 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (265) | (199) |
| **Cash flows from financing activities:** |  |  |
| Net increase (decrease) in commercial paper | (139) | 479 |
| Repayment of debt | (4) | (555) |
| Proceeds from exercise of share options | 11 | 22 |
| Repurchase of common shares | (287) | (304) |
| Payment of common share dividends to shareholders | (178) | (163) |
| Other | (24) | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (621) | (552) |
| Effect of currency translation on cash | 10 | (2) |
| **Net decrease in cash, cash equivalents, and restricted cash** | (295) | (221) |
| **Cash, cash equivalents, and restricted cash at beginning of period** | 1088 | 1203 |
| **Cash, cash equivalents, and restricted cash at end of period** | $793 | $982 |

---

See Notes to Condensed Consolidated Financial Statements.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**1. Basis of Presentation**

The unaudited Condensed Consolidated Financial Statements of TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") have been prepared in United States ("U.S.") dollars, in accordance with accounting principles generally accepted in the U.S. ("GAAP") and the instructions to Form 10-Q under the Securities Exchange Act of 1934. In management's opinion, the unaudited Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire fiscal year or any subsequent interim period.

The year-end balance sheet data was derived from audited financial statements, but does not include all of the information and disclosures required by GAAP. These financial statements should be read in conjunction with our audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022.

Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2023 and fiscal 2022 are to our fiscal years ending September 29, 2023 and ended September 30, 2022, respectively.

**2. Restructuring and Other Charges, Net**

Net restructuring and other charges consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Restructuring charges, net | $104 | $21 |
| Impairment of held for sale businesses and (gain) loss on divestitures, net | 6 | (9) |
| Other charges, net | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges, net | $111 | $12 |

---

Net restructuring and related charges by segment were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Transportation Solutions | $74 | $5 |
| Industrial Solutions | 6 | 8 |
| Communications Solutions | 24 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges, net | 104 | 21 |
| Plus: charges included in cost of sales<sup>(1)</sup> |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and related charges, net | $104 | $33 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Charges included in cost of sales were attributable to inventory-related charges within the Industrial Solutions segment.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

Activity in our restructuring reserves was as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Balance at**<br>**September 30,**<br>**2022** | <br>**Charges** | <br>**Changes in**<br>**Estimate** | <br>**Cash**<br>**Payments** | <br>**Non-Cash**<br>**Items** | <br>**Currency**<br>**Translation** | **Balance at**<br>**December 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fiscal 2023 Actions: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee severance | $— | $101 | $— | $(6) | $— | $1 | $96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment |  | 4 |  |  | (4) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | 105 |  | (6) | (4) | 1 | 96 |
| Fiscal 2022 Actions: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee severance | 108 | 4 | (7) | (13) |  | 5 | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility and other exit costs | 1 | 3 |  | (2) |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 109 | 7 | (7) | (15) |  | 5 | 99 |
| Pre-Fiscal 2022 Actions: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee severance | 112 |  | 1 | (11) |  | 7 | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility and other exit costs | 7 |  | (2) | (2) |  | 1 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 119 |  | (1) | (13) |  | 8 | 113 |
| Total Activity | $228 | $112 | $(8) | $(34) | $(4) | $14 | $308 |

---

**Fiscal 2023 Actions**

During fiscal 2023, we initiated a restructuring program associated with cost structure improvements primarily in the Transportation Solutions and Communications Solutions segments. During the quarter ended December 30, 2022, we recorded restructuring charges of $105 million in connection with this program. We expect to complete all restructuring actions commenced during the quarter ended December 30, 2022 by the end of fiscal 2024, and we expect additional charges related to the actions commenced during the quarter ended December 30, 2022 to be insignificant.

**Fiscal 2022 Actions**

During fiscal 2022, we initiated a restructuring program associated with footprint consolidation and cost structure improvements across all segments. In connection with this program, during the quarter ended December 24, 2021, we recorded restructuring and related charges of $33 million. We expect to complete all restructuring actions commenced during fiscal 2022 by the end of fiscal 2024 and to incur additional charges of approximately $21 million related primarily to employee severance and facility exit costs.

The following table summarizes charges incurred for the fiscal 2022 program by segment as of December 30, 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Total**<br>**Expected**<br>**Charges** | **Cumulative**<br>**Charges**<br>**Incurred** | **Remaining**<br>**Expected**<br>**Charges** |
|  |  | **(in millions)** |  |
| Transportation Solutions | $97 | $86 | $11 |
| Industrial Solutions | 55 | 52 | 3 |
| Communications Solutions | 30 | 23 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $182 | $161 | $21 |

---

**Pre-Fiscal 2022 Actions**

During the quarter ended December 30, 2022, we recorded restructuring credits of $1 million related to pre-fiscal 2022 actions. We expect that any additional charges related to restructuring actions commenced prior to 2022 will be insignificant.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**Total Restructuring Reserves**

Restructuring reserves included on the Condensed Consolidated Balance Sheets were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 30,**<br>**2022** | **September 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** |
| Accrued and other current liabilities | $268 | $182 |
| Other liabilities | 40 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring reserves | $308 | $228 |

---

**3. Acquisitions**

On December 30, 2022, we acquired one business for a cash purchase price of $109 million, net of cash acquired. Due to the timing of the transaction, which was reported as part of our Industrial Solutions segment, we preliminarily allocated the purchase price to goodwill and identifiable intangible assets. Our valuation of identifiable intangible assets, assets acquired, and liabilities assumed is currently in process; therefore, the current allocation is subject to adjustment upon finalization of the valuations. The amount of these potential adjustments could be significant.

We acquired one business for a cash purchase price of $125 million, net of cash acquired, during the quarter ended December 24, 2021. The acquisition was reported as part of our Communications Solutions segment from the date of acquisition. Also during the quarter ended December 24, 2021, we finalized the purchase price allocation of certain fiscal 2021 acquisitions, which included the recognition of $25 million of cash acquired.

**4. Inventories**

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 30,**<br>**2022** | **September 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** |
| Raw materials | $486 | $390 |
| Work in progress | 1283 | 1066 |
| Finished goods | 1158 | 1220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | $2927 | $2676 |

---

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**5. Goodwill**

The changes in the carrying amount of goodwill by segment were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Transportation**<br>**Solutions** | **Industrial**<br>**Solutions** | **Communications**<br>**Solutions** | <br>**Total** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| September 30, 2022<sup>(1)</sup> | $1439 | $3118 | $701 | $5258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition |  | 79 |  | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation and other | 48 | 104 | 22 | 174 |
| December 30, 2022<sup>(1)</sup> | $1487 | $3301 | $723 | $5511 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) At December 30, 2022 and September 30, 2022, accumulated impairment losses for the Transportation Solutions, Industrial Solutions, and Communications Solutions segments were $3,091 million, $669 million, and $489 million, respectively.

During the quarter ended December 30, 2022, we recognized goodwill in the Industrial Solutions segment in connection with a recent acquisition. See Note 3 for additional information regarding acquisitions.

**6. Intangible Assets, Net**

Intangible assets consisted of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 30, 2022** | **December 30, 2022** | **December 30, 2022** | **September 30, 2022** | **September 30, 2022** | **September 30, 2022** |
|  | **Gross**<br>**Carrying**<br>**Amount** | <br>**Accumulated**<br>**Amortization** | **Net**<br>**Carrying**<br>**Amount** | **Gross**<br>**Carrying**<br>**Amount** | <br>**Accumulated**<br>**Amortization** | **Net**<br>**Carrying**<br>**Amount** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Customer relationships | $1781 | $(751) | $1030 | $1642 | $(687) | $955 |
| Intellectual property | 1218 | (902) | 316 | 1174 | (852) | 322 |
| Other | 17 | (6) | 11 | 16 | (5) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3016 | $(1659) | $1357 | $2832 | $(1544) | $1288 |

---

Intangible asset amortization expense was $46 million and $48 million for the quarters ended December 30, 2022 and December 24, 2021, respectively.

At December 30, 2022, the aggregate amortization expense on intangible assets is expected to be as follows:

---

| | |
|:---|:---|
|  | **(in millions)** |
| Remainder of fiscal 2023 | $148 |
| Fiscal 2024 | 167 |
| Fiscal 2025 | 152 |
| Fiscal 2026 | 146 |
| Fiscal 2027 | 127 |
| Fiscal 2028 | 95 |
| Thereafter | 522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1357 |

---

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**7. Debt**

As of December 30, 2022, Tyco Electronics Group S.A. ("TEGSA"), our wholly-owned subsidiary, had $231 million of commercial paper outstanding at a weighted-average interest rate of 4.70%. TEGSA had $370 million of commercial paper outstanding at a weighted-average interest rate of 3.45% at September 30, 2022.

The fair value of our debt, based on indicative valuations, was approximately $4,046 million and $3,990 million at December 30, 2022 and September 30, 2022, respectively.

**8. Leases**

The components of lease cost were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Operating lease cost | $34 | $31 |
| Variable lease cost | 12 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease cost | $46 | $43 |

---

Cash flow information, including significant non-cash transactions, related to leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for operating leases<sup>(1)</sup> | $32 | $34 |
| Right-of-use assets, including modifications of existing leases, obtained in exchange for operating lease liabilities | 35 | 36 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) These payments are included in cash flows from operating activities, primarily in changes in accrued and other current liabilities.

**9. Commitments and Contingencies**

**Legal Proceedings**

In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**Trade Compliance Matters**

We have been investigating our past compliance with relevant U.S. trade controls and have made voluntary disclosures of apparent trade controls violations to the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") and the U.S. State Department's Directorate of Defense Trade Controls ("DDTC"). We are cooperating with the BIS and DDTC on these matters, and the resulting investigations are ongoing. We have also been contacted by the U.S. Department of Justice concerning aspects of these matters. We are unable to predict the timing and final outcome of the agencies' investigations. An unfavorable outcome may include fines or penalties imposed in response to our disclosures, but we are not yet able to reasonably estimate the extent of any such fines or penalties. Although we have reserved for potential fines and penalties relating to these matters based on our current understanding of the facts, the investigations into these matters have yet to be completed and the final outcome of such investigations and related fines and penalties may differ from amounts currently reserved.

**Environmental Matters**

We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of December 30, 2022, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $17 million to $44 million, and we accrued $20 million as the probable loss, which was the best estimate within this range. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows.

**Guarantees**

In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows.

At December 30, 2022, we had outstanding letters of credit, letters of guarantee, and surety bonds of $170 million, excluding those related to our former Subsea Communications ("SubCom") business which are discussed below.

During fiscal 2019, we sold our SubCom business. In connection with the sale, we contractually agreed to continue to honor performance guarantees and letters of credit related to the SubCom business' projects that existed as of the date of sale. These performance guarantees and letters of credit had a combined value of approximately $59 million as of December 30, 2022 and are expected to expire at various dates through fiscal 2027. We have contractual recourse against the SubCom business if we are required to perform on any SubCom guarantees; however, based on historical experience, we do not anticipate having to perform.

**10. Financial Instruments**

**Foreign Currency Exchange Rate Risk**

We may utilize cross-currency swap contracts to reduce our exposure to foreign currency exchange rate risk associated with certain intercompany loans. As of fiscal year end 2022, all such cross-currency swap contracts had been terminated or matured and were settled; additionally, all related collateral positions were settled.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

The impacts of these cross-currency swap contracts were as follows:

---

| | |
|:---|:---|
|  | **For the**<br>**Quarter Ended**<br>**December 24,**<br>**2021** |
|  | **(in millions)** |
| Losses recorded in other comprehensive income (loss) | $(3) |
| Gains excluded from the hedging relationship<sup>(1)</sup> | 29 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Gains excluded from the hedging relationship are recognized prospectively in selling, general, and administrative expenses and are offset by losses generated as a result of re-measuring certain intercompany loans to the U.S. dollar.

**Hedge of Net Investment**

We hedge our net investment in certain foreign operations using intercompany loans and external borrowings denominated in the same currencies. The aggregate notional value of these hedges was $2,247 million and $1,658 million at December 30, 2022 and September 30, 2022, respectively.

We also use a cross-currency swap program to hedge our net investment in certain foreign operations. The aggregate notional value of the contracts under this program was $2,237 million and $1,873 million at December 30, 2022 and September 30, 2022, respectively. Under the terms of these contracts, we receive interest in U.S. dollars at a weighted-average rate of 1.73% per annum and pay no interest. Upon the maturity of these contracts at various dates through fiscal 2027, we will pay the notional value of the contracts in the designated foreign currency and receive U.S. dollars from our counterparties. We are not required to provide collateral for these contracts.

These cross-currency swap contracts were recorded on the Condensed Consolidated Balance Sheets as follows:

---

| | | |
|:---|:---|:---|
|  | **December 30,**<br>**2022** | **September 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** |
| Prepaid expenses and other current assets | $36 | $55 |
| Other assets | 66 | 172 |
| Accrued and other current liabilities | 3 |  |
| Other liabilities | 14 |  |

---

The impacts of our hedge of net investment programs were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Foreign currency exchange gains (losses) on intercompany loans and external borrowings<sup>(1)</sup> | $(165) | $108 |
| Gains (losses) on cross-currency swap contracts designated as hedges of net investment<sup>(1)</sup> | (137) | 37 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Recorded as currency translation, a component of accumulated other comprehensive income (loss), and offset by changes attributable to the translation of the net investment.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**Interest Rate Risk Management**

We may utilize forward starting interest rate swap contracts to manage interest rate exposure in periods prior to the anticipated issuance of fixed rate debt. During fiscal 2022, we terminated forward starting interest rate swap contracts as a result of the issuance of our 2.50% senior notes due in 2032.

The impacts of these forward starting interest rate swap contracts were as follows:

---

| | |
|:---|:---|
|  | **For the**<br>**Quarter Ended**<br>**December 24,**<br>**2021** |
|  | **(in millions)** |
| Gains recorded in other comprehensive income (loss) | $2 |

---

**Commodity Hedges**

As part of managing the exposure to certain commodity price fluctuations, we utilize commodity swap contracts. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in prices of commodities used in production. These contracts had an aggregate notional value of $542 million and $566 million at December 30, 2022 and September 30, 2022, respectively, and were designated as cash flow hedges. These commodity swap contracts were recorded on the Condensed Consolidated Balance Sheets as follows:

---

| | | |
|:---|:---|:---|
|  | **December 30,**<br>**2022** | **September 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** |
| Prepaid expenses and other current assets | $13 | $2 |
| Other assets | 2 |  |
| Accrued and other current liabilities | 27 | 77 |
| Other liabilities | 1 | 7 |

---

The impacts of these commodity swap contracts were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Gains recorded in other comprehensive income (loss) | $47 | $15 |
| Gains (losses) reclassified from accumulated other comprehensive income (loss) into cost of sales | (29) | 15 |

---

We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with commodity hedges will be reclassified into the Condensed Consolidated Statement of Operations within the next twelve months.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**11. Retirement Plans**

The net periodic pension benefit cost (credit) for all non-U.S. and U.S. defined benefit pension plans was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Non-U.S. Plans** | **Non-U.S. Plans** | **U.S. Plans** | **U.S. Plans** |
|  | **For the** | **For the** | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Operating expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service cost | $7 | $10 | $2 | $2 |
| Other (income) expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest cost | 14 | 9 | 9 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected returns on plan assets | (11) | (15) | (9) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of net actuarial loss | 1 | 6 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service credit | (1) | (1) |  |  |
| Net periodic pension benefit cost (credit) | $10 | $9 | $3 | $(2) |

---

During the quarter ended December 30, 2022, we contributed $10 million to our non-U.S. pension plans.

**12. Income Taxes**

We recorded income tax expense of $87 million and $110 million for the quarters ended December 30, 2022 and December 24, 2021, respectively. The income tax expense for the quarter ended December 24, 2021 included a $17 million income tax benefit related to the tax impacts of an intercompany transaction and $12 million of income tax expense related to an income tax audit of an acquired entity. As we are entitled to indemnification of pre-acquisition period tax obligations under the terms of the purchase agreement, we recorded an associated indemnification receivable and other income of $11 million during the quarter ended December 24, 2021.

Although it is difficult to predict the timing or results of our worldwide examinations, we estimate that, as of December 30, 2022, approximately $20 million of unrecognized income tax benefits, excluding the impact relating to accrued interest and penalties, could be resolved within the next twelve months.

We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the Condensed Consolidated Balance Sheet as of December 30, 2022.

**13. Earnings Per Share**

The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **For the** | **For the** |  |
|  |  | **Quarters Ended** | **Quarters Ended** |  |
|  |  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |  |
|  |  | **(in millions)** | **(in millions)** |  |
| Basic |  | 317 | 327 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dilutive impact of share-based compensation arrangements |  | 2 | 3 |  |
| Diluted |  | 319 | 330 |  |

---

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

The following share options were not included in the computation of diluted earnings per share because the instruments' underlying exercise prices were greater than the average market prices of our common shares and inclusion would be antidilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **For the** | **For the** |  |
|  |  | **Quarters Ended** | **Quarters Ended** |  |
|  |  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |  |
|  |  | **(in millions)** | **(in millions)** |  |
| Antidilutive share options |  | 2 | 1 |  |

---

**14. Shareholders' Equity**

**Dividends**

We paid cash dividends to shareholders as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
| Dividends paid per common share | $0.56 | $0.50 |

---

Upon shareholders' approval of a dividend payment, we record a liability with a corresponding charge to shareholders' equity. At December 30, 2022 and September 30, 2022, the unpaid portion of the dividends recorded in accrued and other current liabilities on the Condensed Consolidated Balance Sheets totaled $177 million and $356 million, respectively.

**Share Repurchase Program**

Common shares repurchased under the share repurchase program were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Number of common shares repurchased | 2 | 2 |
| Repurchase value | $233 | $246 |

---

At December 30, 2022, we had $1.4 billion of availability remaining under our share repurchase authorization.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**15. Share Plans**

Share-based compensation expense, which was included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Share-based compensation expense | $32 | $32 |

---

As of December 30, 2022, there was $210 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 2.0 years.

During the quarter ended December 30, 2022, we granted the following share-based awards as part of our annual incentive plan grant:

---

| | | |
|:---|:---|:---|
|  | <br>**Shares** | **Grant-Date**<br>**Fair Value** |
|  | **(in millions)** |  |
| Share options | 0.9 | $35.79 |
| Restricted share awards | 0.4 | 124.52 |
| Performance share awards | 0.2 | 124.52 |

---

As of December 30, 2022, we had 8 million shares available for issuance under the TE Connectivity Ltd. 2007 Stock and Incentive Plan, amended and restated as of September 17, 2020.

**Share-Based Compensation Assumptions**

The assumptions we used in the Black-Scholes-Merton option pricing model for the options granted as part of our annual incentive plan grant were as follows:

---

| | |
|:---|:---|
| Expected share price volatility | 31% |
| Risk-free interest rate | 4.0% |
| Expected annual dividend per share | $2.24 |
| Expected life of options (in years) | 5.1 |

---

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

**16. Segment and Geographic Data**

Effective for fiscal 2023, we realigned certain product lines from the Industrial Solutions segment to the Communications Solutions segment. We continue to operate through three reporting segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The following segment information reflects our current segment reporting structure. Prior period segment results have been restated to conform to the current segment reporting structure. As a result of the restatement, which was not significant, $7 million and $30 million of net sales and $3 million and $13 million of operating income for the first quarter and full year of fiscal 2022, respectively, were transferred from the Industrial Solutions segment to the Communications Solutions segment.

Net sales by segment<sup>(1)</sup> and industry end market<sup>(2)</sup> were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Transportation Solutions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Automotive  | $1649 | $1520 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial transportation  | 348 | 365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sensors  | 262 | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Transportation Solutions  | 2259 | 2158 |
| Industrial Solutions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial equipment  | 434 | 455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Aerospace, defense, and marine | 264 | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Energy  | 189 | 188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical | 173 | 167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Industrial Solutions  | 1060 | 1052 |
| Communications Solutions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data and devices  | 329 | 356 |
| &nbsp;&nbsp;&nbsp;&nbsp;Appliances  | 193 | 252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Communications Solutions  | 522 | 608 |
| Total  | $3841 | $3818 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Intersegment sales were not material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.

[**Table of Contents**](#TOC)

**TE CONNECTIVITY LTD.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Continued)**

Net sales by geographic region<sup>(1)</sup> and segment were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Asia–Pacific: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation Solutions | $924 | $928 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial Solutions | 189 | 205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Communications Solutions | 294 | 337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Asia–Pacific | 1407 | 1470 |
| Europe/Middle East/Africa ("EMEA"): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation Solutions | 812 | 771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial Solutions | 444 | 450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Communications Solutions | 70 | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total EMEA | 1326 | 1314 |
| Americas: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation Solutions | 523 | 459 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial Solutions | 427 | 397 |
| &nbsp;&nbsp;&nbsp;&nbsp;Communications Solutions | 158 | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Americas | 1108 | 1034 |
| Total | $3841 | $3818 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Net sales to external customers are attributed to individual countries based on the legal entity that records the sale.

Operating income by segment was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Transportation Solutions | $282 | $395 |
| Industrial Solutions | 156 | 120 |
| Communications Solutions | 64 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total  | $502 | $672 |

---

[**Table of Contents**](#TOC)

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying notes included elsewhere in this Quarterly Report on Form 10-Q. The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in these forward-looking statements as a result of many factors, including but not limited to those under the heading "Forward-Looking Information" and "Part II. Item 1A. Risk Factors."

Our Condensed Consolidated Financial Statements have been prepared in United States ("U.S.") dollars, in accordance with accounting principles generally accepted in the U.S. ("GAAP").

The following discussion includes organic net sales growth (decline) which is a non-GAAP financial measure. See "Non-GAAP Financial Measure" for additional information regarding this measure.

**Overview**

TE Connectivity Ltd. ("TE Connectivity" or the "Company," which may be referred to as "we," "us," or "our") is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications, and the home.

**Summary of Performance in the First Quarter of Fiscal 2023**

● Our net sales increased 0.6% in the first quarter of fiscal 2023 as compared to the same period of fiscal 2022 due to sales growth in the Transportation Solutions segment and, to a lesser degree, the Industrial Solutions segment, largely offset by declines in the Communications Solutions segment. On an organic basis, our net sales increased 8.2% during the first quarter of fiscal 2023 as compared to the same period of fiscal 2022.

● Our net sales by segment were as follows:

● *Transportation Solutions* —Our net sales increased 4.7% in the first quarter of fiscal 2023 due primarily to sales increases in the automotive end market.

● *Industrial Solutions* —Our net sales increased 0.8% in the first quarter of fiscal 2023 primarily as a result of sales increases in the aerospace, defense, and marine end market and, to a lesser degree, the medical end market, largely offset by declines in the industrial equipment end market.

● *Communications Solutions* —Our net sales decreased 14.1% in the first quarter of fiscal 2023 due to sales declines in the appliances and the data and devices end markets.

● Net cash provided by operating activities was $581 million in the first quarter of fiscal 2023.

**Economic Conditions**

Our business and operating results have been and will continue to be affected by worldwide economic conditions. The global economy has been impacted by the COVID-19 pandemic and the military conflict between Russia and Ukraine as well as supply chain disruptions and inflationary cost pressures. See "Russia-Ukraine Military Conflict" and "COVID-19 Pandemic" for additional information. We are monitoring the current environment and its potential effects on our customers and the end markets we serve.

[**Table of Contents**](#TOC)

Our business operates globally and changes in foreign currency exchange rates may have a significant impact on our results. Foreign currency translation negatively impacted our net sales by $299 million in the first quarter of fiscal 2023 as compared to the same period in fiscal 2022, and we expect translation to continue to have a negative impact on our operating results in the second quarter of fiscal 2023 as a result of continued strength of the U.S. dollar against other currencies. We expect translation to negatively impact our net sales by approximately $400 million in fiscal 2023 as compared to fiscal 2022.

We have experienced inflationary cost pressures including increased costs for transportation, energy, and raw materials. However, we have been able to partially mitigate increased costs and supply chain disruptions through price increases or productivity. We have implemented select price increases and have initiated additional price increases for certain products. Also, we have taken and continue to focus on actions to manage costs, including restructuring and other cost reduction initiatives such as reducing discretionary spending and travel. Additionally, we are managing our capital resources and monitoring capital availability to ensure that we have sufficient resources to fund our future capital needs. See further discussion in "Liquidity and Capital Resources."

**Russia-Ukraine Military Conflict**

We are monitoring the continuing military conflict between Russia and Ukraine, escalating tensions in surrounding countries, and associated sanctions. We suspended our business operations in Russia, and our operations in Ukraine have been reduced to focus on the safety of our employees. Neither Russia nor Ukraine represents a material portion of our business, and the military conflict did not have a significant impact on our business, financial condition, or results of operations during the first quarter of fiscal 2023.

The full impact of the military conflict on our business operations and financial performance remains uncertain. The extent to which the conflict may impact our business in future periods will depend on future developments, including the severity and duration of the conflict, its impact on regional and global economic conditions, and supply chain disruptions. We will continue to actively monitor the conflict and assess the related sanctions and other effects and may take further actions if necessary.

**COVID-19 Pandemic**

The COVID-19 pandemic has affected nearly all regions around the world, most recently and significantly China, and has resulted in business slowdowns or shutdowns. Although the pandemic has impacted certain aspects of our business, we do not expect that it will have a significant impact on our businesses globally in the near term.

The COVID-19 pandemic has impacted and continues to impact our business operations globally, causing disruption in our suppliers' and customers' supply chains and a reduction in demand for certain products from direct customers or end markets. In addition, the pandemic had far-reaching impacts on many additional aspects of our operations, both directly and indirectly, including with respect to its impacts on customer behaviors, business and manufacturing operations, inventory, our employees, and the market generally.

The extent to which the pandemic will continue to impact our business and the markets we serve will depend on future developments which may include the resurgence of the spread of the virus and variant strains of the virus as well as the success of public health advancements. While certain of our operations in China were impacted in the first quarter of fiscal 2023 and were shut down for a period of time in fiscal 2022, we do not expect the COVID-19 pandemic to have a significant impact on our businesses globally in fiscal 2023. However, it may have a negative impact on our financial condition and results of operations in future periods.

We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, or local authorities or that we determine are in the best interests of our employees, customers, suppliers, shareholders, and the communities in which we operate.

**Outlook**

In the second quarter of fiscal 2023, we expect our net sales to be approximately $3.9 billion as compared to $4.0 billion in the second quarter of fiscal 2022. This represents an increase in net sales relative to the first quarter of fiscal 2023

[**Table of Contents**](#TOC)

with growth in the Transportation Solutions and Industrial Solutions segments, partially offset by a decline in the Communications Solutions segment. We expect diluted earnings per share from continuing operations to be approximately $1.44 per share in the second quarter of fiscal 2023. This outlook reflects the negative impact of foreign currency exchange rates on net sales and earnings per share of approximately $165 million and $0.11 per share, respectively, in the second quarter of fiscal 2023 as compared to the second quarter of fiscal 2022. Also, this outlook is based on foreign currency exchange rates and commodity prices that are consistent with current levels.

**Acquisition**

During the first quarter of fiscal 2023, we acquired one business for a cash purchase price of $109 million, net of cash acquired. The acquisition was reported as part of our Industrial Solutions segment from the date of acquisition. See Note 3 to the Condensed Consolidated Financial Statements for additional information regarding acquisitions.

**Results of Operations**

**Net Sales**

The following table presents our net sales and the percentage of total net sales by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the**  | **For the**  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,** | **December 30,** | **December 24,** | **December 24,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Transportation Solutions | $2259 | 58% | $2158 | 56% |
| Industrial Solutions | 1060 | 28 | 1052 | 28 |
| Communications Solutions | 522 | 14 | 608 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3841 | 100% | $3818 | 100% |

---

The following table provides an analysis of the change in our net sales by segment:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** |
|  | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** |
|  | **Net Sales** | **Net Sales** | **Organic Net Sales** | **Organic Net Sales** | | |
|  | **Growth (Decline)** | **Growth (Decline)** | **Growth (Decline)** | **Growth (Decline)** | <br>**Translation** | <br>**Acquisitions** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Transportation Solutions | $101 | 4.7% | $310 | 14.4% | $(209) | $— |
| Industrial Solutions | 8 | 0.8 | 72 | 6.8 | (64) |  |
| Communications Solutions | (86) | (14.1) | (69) | (11.4) | (26) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $23 | 0.6% | $313 | 8.2% | $(299) | $9 |

---

Net sales increased $23 million, or 0.6%, in the first quarter of fiscal 2023 as compared to the first quarter of fiscal 2022. The increase in net sales resulted primarily from organic net sales growth of 8.2%, largely offset by the negative impact of foreign currency translation of 7.8% due to the weakening of certain foreign currencies. In the first quarter of fiscal 2023, pricing actions positively affected organic net sales by $129 million.

See further discussion of net sales below under "Segment Results."

***Net Sales by Geographic Region.*** Our business operates in three geographic regions—Asia–Pacific, Europe/Middle East/Africa ("EMEA"), and the Americas—and our results of operations are influenced by changes in foreign currency exchange rates. Increases or decreases in the value of the U.S. dollar, compared to other currencies, will directly affect our reported results as we translate those currencies into U.S. dollars at the end of each fiscal period.

Approximately 60% of our net sales were invoiced in currencies other than the U.S. dollar in the first quarter of fiscal 2023.

[**Table of Contents**](#TOC)

The following table presents our net sales and the percentage of total net sales by geographic region<sup>(1)</sup>:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the**  | **For the**  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,** | **December 30,** | **December 24,** | **December 24,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Asia–Pacific | $1407 | 37% | $1470 | 39% |
| EMEA | 1326 | 34 | 1314 | 34 |
| Americas | 1108 | 29 | 1034 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3841 | 100% | $3818 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Net sales to external customers are attributed to individual countries based on the legal entity that records the sale.

The following table provides an analysis of the change in our net sales by geographic region:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** |
|  | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** |
|  | **Net Sales** | **Net Sales** | **Organic Net Sales** | **Organic Net Sales** | | |
|  | **Growth (Decline)** | **Growth (Decline)** | **Growth** | **Growth** | <br>**Translation** | <br>**Acquisitions** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Asia–Pacific | $(63) | (4.3)% | $86 | 5.8% | $(149) | $— |
| EMEA | 12 | 0.9 | 161 | 12.2 | (149) |  |
| Americas | 74 | 7.2 | 66 | 6.4 | (1) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $23 | 0.6% | $313 | 8.2% | $(299) | $9 |

---

**Cost of Sales and Gross Margin**

The following table presents cost of sales and gross margin information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the**  | **For the**  | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Cost of sales | $2654 | $2588 | $66 |
| &nbsp;&nbsp;&nbsp;&nbsp;As a percentage of net sales | 69.1% | 67.8% |  |
| Gross margin | $1187 | $1230 | $(43) |
| &nbsp;&nbsp;&nbsp;&nbsp;As a percentage of net sales | 30.9% | 32.2% |  |

---

Gross margin decreased $43 million in the first quarter of fiscal 2023 as compared to the same period of fiscal 2022. The decrease was primarily a result of the negative impact of foreign currency translation and inflationary pressure on material and operating costs, partially offset by the positive impact of pricing actions.

[**Table of Contents**](#TOC)

We use a wide variety of raw materials in the manufacture of our products, and cost of sales and gross margin are subject to variability in raw material prices. In recent years, raw material prices and availability have been impacted by worldwide economic conditions, including the COVID-19 pandemic, supply chain disruptions, and inflationary cost pressures. As a result, we have experienced shortages and price increases in some of our input materials—including copper, gold, silver, and palladium—however, we have been able to initiate pricing actions which have partially offset these impacts. The following table presents the average prices incurred related to copper, gold, silver, and palladium:

---

| | | | |
|:---|:---|:---|:---|
|  | | **For the**  | **For the**  |
|  | | **Quarters Ended** | **Quarters Ended** |
|  | <br>**Measure** | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
| Copper | Lb. | $4.18 | $3.80 |
| Gold | Troy oz. | 1821 | 1797 |
| Silver | Troy oz. | 24.26 | 23.56 |
| Palladium | Troy oz. | 2083 | 2356 |

---

We expect to purchase approximately 195 million pounds of copper, 125,000 troy ounces of gold, 2.6 million troy ounces of silver, and 9,000 troy ounces of palladium in fiscal 2023.

**Operating Expenses**

The following table presents operating expense information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the**  | **For the**  | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Selling, general, and administrative expenses | $392 | $363 | $29 |
| &nbsp;&nbsp;&nbsp;&nbsp;As a percentage of net sales | 10.2% | 9.5% |  |
| Restructuring and other charges, net | $111 | $12 | $99 |

---

***Selling, General, and Administrative Expenses.*** Selling, general, and administrative expenses increased $29 million in the first quarter of fiscal 2023 from the same period of fiscal 2022 due primarily to a gain on the sale of real estate in the first quarter of fiscal 2022 and the impact of inflation, partially offset by the positive impact of foreign currency translation.

***Restructuring and Other Charges, Net.*** We are committed to continuous productivity improvements, and we evaluate opportunities to simplify our global manufacturing footprint, migrate facilities to lower-cost regions, reduce fixed costs, and eliminate excess capacity. These initiatives are designed to help us maintain our competitiveness in the industry, improve our operating leverage, and position us for future growth.

During fiscal 2023, we initiated a restructuring program associated with cost structure improvements primarily in the Transportation Solutions and Communications Solutions segments. We incurred net restructuring charges of $104 million during the first quarter of fiscal 2023. Annualized cost savings related to the fiscal 2023 actions commenced during the first quarter of fiscal 2023 are expected to be approximately $86 million and are expected to be realized by the end of fiscal 2025. Cost savings will be reflected primarily in cost of sales and selling, general, and administrative expenses. In fiscal 2023, we expect total restructuring charges and spending, which will be funded with cash from operations, to exceed fiscal 2022 levels. As a result of market conditions, we are reevaluating our restructuring actions. We may broaden the scope of our cost reduction initiatives and accelerate cost reduction and footprint consolidation activities.

See Note 2 to the Condensed Consolidated Financial Statements for additional information regarding net restructuring and other charges.

[**Table of Contents**](#TOC)

**Operating Income**

The following table presents operating income and operating margin information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the**  | **For the**  | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Operating income | $502 | $672 | $(170) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating margin | 13.1% | 17.6% |  |

---

Operating income included the following:

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Acquisition-related charges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration costs | $9 | $8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charges associated with the amortization of acquisition-related fair value adjustments |  | 8 |
|  | 9 | 16 |
| Restructuring and other charges, net | 111 | 12 |
| Restructuring-related charges recorded in cost of sales |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $120 | $40 |

---

See discussion of operating income below under "Segment Results."

**Non-Operating Items**

The following table presents select non-operating information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the**  | **For the**  | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Income tax expense | $87 | $110 | $(23) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective tax rate | 17.9% | 16.2% |  |

---

***Income Taxes.*** See Note 12 to the Condensed Consolidated Financial Statements for discussion of income taxes.

[**Table of Contents**](#TOC)

**Segment Results**

Effective for fiscal 2023, we realigned certain product lines from the Industrial Solutions segment to the Communications Solutions segment. Prior period segment results have been restated to conform to the current segment reporting structure. See Note 16 to the Condensed Consolidated Financial Statements for additional information regarding our segments.

**Transportation Solutions**

***Net Sales.*** The following table presents the Transportation Solutions segment's net sales and the percentage of total net sales by industry end market<sup>(1)</sup>:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the**  | **For the**  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,** | **December 30,** | **December 24,** | **December 24,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Automotive | $1649 | 73% | $1520 | 70% |
| Commercial transportation | 348 | 15 | 365 | 17 |
| Sensors | 262 | 12 | 273 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $2259 | 100% | $2158 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.

The following table provides an analysis of the change in the Transportation Solutions segment's net sales by industry end market:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** |
|  | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** |
|  | **Net Sales** | **Net Sales** | **Organic Net Sales** | **Organic Net Sales** | |
|  | **Growth (Decline)** | **Growth (Decline)** | **Growth** | **Growth** | <br>**Translation** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Automotive | $129 | 8.5% | $294 | 19.6% | $(165) |
| Commercial transportation | (17) | (4.7) | 9 | 2.6 | (26) |
| Sensors | (11) | (4.0) | 7 | 2.6 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $101 | 4.7% | $310 | 14.4% | $(209) |

---

Net sales in the Transportation Solutions segment increased $101 million, or 4.7%, in the first quarter of fiscal 2023 from the first quarter of fiscal 2022 due to organic net sales growth of 14.4%, partially offset by the negative impact of foreign currency translation of 9.7%. In the first quarter of fiscal 2023, pricing actions positively affected organic net sales by $91 million. Our organic net sales by industry end market were as follows:

● *Automotive—* Our organic net sales increased 19.6% in the first quarter of fiscal 2023 with growth of 21.4% in the EMEA region, 19.1% in the Americas region, and 18.6% in the Asia–Pacific region. Our organic net sales growth across all regions was attributable primarily to increased content per vehicle .

● *Commercial transportation—* Our organic net sales increased 2.6% in the first quarter of fiscal 2023 due to growth in the Americas and EMEA regions, partially offset by declines in the Asia–Pacific region.

● *Sensors—* Our organic net sales increased 2.6% in the first quarter of fiscal 2023 as a result of growth in transportation applications , partially offset by declines in industrial applications.

[**Table of Contents**](#TOC)

***Operating Income.*** The following table presents the Transportation Solutions segment's operating income and operating margin information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the**  | **For the**  | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Operating income | $282 | $395 | $(113) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating margin | 12.5% | 18.3% |  |

---

Operating income in the Transportation Solutions segment decreased $113 million in the first quarter of fiscal 2023 as compared to the first quarter of fiscal 2022. Excluding the items below, operating income decreased primarily as a result of inflationary pressure on material and operating costs and the negative impact of foreign currency translation, partially offset by the positive impact of pricing actions and higher volume.

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Acquisition and integration costs | $2 | $3 |
| Restructuring and other charges (credits), net | 74 | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $76 | $(3) |

---

**Industrial Solutions**

***Net Sales.*** The following table presents the Industrial Solutions segment's net sales and the percentage of total net sales by industry end market<sup>(1)</sup>:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the**  | **For the**  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,** | **December 30,** | **December 24,** | **December 24,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Industrial equipment  | $434 | 41% | $455 | 43% |
| Aerospace, defense, and marine | 264 | 25 | 242 | 23 |
| Energy | 189 | 18 | 188 | 18 |
| Medical | 173 | 16 | 167 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1060 | 100% | $1052 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.

The following table provides an analysis of the change in the Industrial Solutions segment's net sales by industry end market:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** |
|  | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** |
|  | **Net Sales** | **Net Sales** | **Organic Net Sales** | **Organic Net Sales** | |
|  | **Growth (Decline)** | **Growth (Decline)** | **Growth** | **Growth** | <br>**Translation** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Industrial equipment | $(21) | (4.6)% | $15 | 3.4% | $(36) |
| Aerospace, defense, and marine | 22 | 9.1 | 34 | 14.3 | (12) |
| Energy | 1 | 0.5 | 15 | 8.0 | (14) |
| Medical | 6 | 3.6 | 8 | 4.8 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $8 | 0.8% | $72 | 6.8% | $(64) |

---

[**Table of Contents**](#TOC)

In the Industrial Solutions segment, net sales increased $8 million, or 0.8%, in the first quarter of fiscal 2023 as compared to the first quarter of fiscal 2022 due to organic net sales growth of 6.8%, largely offset by the negative impact of foreign currency translation of 6.0%. In the first quarter of fiscal 2023, pricing actions positively affected organic net sales by $34 million. Our organic net sales by industry end market were as follows:

● *Industrial equipment—* Our organic net sales increased 3.4% in the first quarter of fiscal 2023 due primarily to growth in automation applications .

● *Aerospace, defense, and marine—* Our organic net sales increased 14.3% in the first quarter of fiscal 2023 primarily as a result of growth in the commercial aerospace and the defense markets.

● *Energy—* Our organic net sales increased 8.0% in the first quarter of fiscal 2023 due primarily to growth in the Americas and EMEA regions.

● *Medical—* Our organic net sales increased 4.8% in the first quarter of fiscal 2023 due to growth in interventional medical applications as well as surgical and imaging applications.

***Operating Income.*** The following table presents the Industrial Solutions segment's operating income and operating margin information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the** | **For the** | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Operating income | $156 | $120 | $36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating margin | 14.7% | 11.4% |  |

---

Operating income in the Industrial Solutions segment increased $36 million in the first quarter of fiscal 2023 as compared to the same period of fiscal 2022. Excluding the items below, operating income increased primarily as a result of the positive impact of pricing actions.

---

| | | |
|:---|:---|:---|
|  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Acquisition-related charges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration costs | $6 | $4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charges associated with the amortization of acquisition-related fair value adjustments |  | 8 |
|  | 6 | 12 |
| Restructuring and other charges, net | 13 | 10 |
| Restructuring-related charges recorded in cost of sales |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $19 | $34 |

---

[**Table of Contents**](#TOC)

**Communications Solutions**

***Net Sales.*** The following table presents the Communications Solutions segment's net sales and the percentage of total net sales by industry end market<sup>(1)</sup>:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the**  | **For the**  | **For the**  | **For the**  |
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,** | **December 30,** | **December 24,** | **December 24,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Data and devices | $329 | 63% | $356 | 59% |
| Appliances | 193 | 37 | 252 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $522 | 100% | $608 | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Industry end market information is presented consistently with our internal management reporting and may be revised periodically as management deems necessary.

The following table provides an analysis of the change in the Communications Solutions segment's net sales by industry end market:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** | **Change in Net Sales for the Quarter Ended December 30, 2022** |
|  | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** | **versus Net Sales for the Quarter Ended December 24, 2021** |
|  | **Net Sales** | **Net Sales** | **Organic Net Sales** | **Organic Net Sales** | | |
|  | **Decline** | **Decline** | **Decline** | **Decline** | <br>**Translation** | <br>**Acquisitions** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Data and devices | $(27) | (7.6)% | $(22) | (6.3)% | $(14) | $9 |
| Appliances | (59) | (23.4) | (47) | (18.3) | (12) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $(86) | (14.1)% | $(69) | (11.4)% | $(26) | $9 |

---

Net sales in the Communications Solutions segment decreased $86 million, or 14.1%, in the first quarter of fiscal 2023 as compared to the first quarter of fiscal 2022 due primarily to organic net sales declines of 11.4% and the negative impact of foreign currency translation of 4.3%. Our organic net sales by industry end market were as follows:

● *Data and devices* —Our organic net sales decreased 6.3% in the first quarter of fiscal 2023 as a result of market declines in all regions and reduced demand resulting from high inventory levels at distributors .

● *Appliances* —Our organic net sales decreased 18.3% in the first quarter of fiscal 2023 due to market declines across all regions.

***Operating Income.*** The following table presents the Communications Solutions segment's operating income and operating margin information:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the** | **For the** | |
|  | **Quarters Ended** | **Quarters Ended** | |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** | <br>**Change** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Operating income | $64 | $157 | $(93) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating margin | 12.3% | 25.8% |  |

---

[**Table of Contents**](#TOC)

Operating income in the Communications Solutions segment decreased $93 million in the first quarter of fiscal 2023 as compared to the same period of fiscal 2022. Excluding the items below, operating income decreased due primarily to lower volume and inflationary pressure on material and operating costs.

---

| | | |
|:---|:---|:---|
|  | **For the** | **For the** |
|  | **Quarters Ended** | **Quarters Ended** |
|  | **December 30,**<br>**2022** | **December 24,**<br>**2021** |
|  | **(in millions)** | **(in millions)** |
| Acquisition and integration costs | $1 | $1 |
| Restructuring and other charges, net | 24 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $25 | $9 |

---

**Liquidity and Capital Resources**

Our ability to fund our future capital needs will be affected by our ongoing ability to generate cash from operations and may be affected by our access to capital markets, money markets, or other sources of funding, as well as the capacity and terms of our financing arrangements. We believe that cash generated from operations and, to the extent necessary, these other sources of potential funding will be sufficient to meet our anticipated capital needs for the foreseeable future, including the payment of €550 million of 1.10% senior notes due in March 2023. We may use excess cash to purchase a portion of our common shares pursuant to our authorized share repurchase program, to acquire strategic businesses or product lines, to pay dividends on our common shares, or to reduce our outstanding debt. The cost or availability of future funding may be impacted by financial market conditions. We will continue to monitor financial markets and respond as necessary to changing conditions. We believe that we have sufficient financial resources and liquidity which will enable us to meet our ongoing working capital and other cash flow needs.

**Cash Flows from Operating Activities**

In the first quarter of fiscal 2023, net cash provided by operating activities increased $49 million to $581 million from $532 million in the first quarter of fiscal 2022. The increase resulted primarily from the impact of changes in working capital levels, partially offset by lower pre-tax income. The amount of income taxes paid, net of refunds, during the first quarters of fiscal 2023 and 2022 was $98 million and $71 million, respectively.

**Cash Flows from Investing Activities**

Capital expenditures were $183 million and $172 million in the first quarters of fiscal 2023 and 2022, respectively. We expect fiscal 2023 capital spending levels to be approximately 5% of net sales. We believe our capital funding levels are adequate to support new programs, and we continue to invest in our manufacturing infrastructure to further enhance productivity and manufacturing capabilities.

During the first quarter of fiscal 2023, we acquired one business for a cash purchase price of $109 million, net of cash acquired. We acquired one business for a cash purchase price of $125 million, net of cash acquired, during the first quarter of fiscal 2022. See Note 3 to the Condensed Consolidated Financial Statements for additional information regarding acquisitions.

**Cash Flows from Financing Activities and Capitalization**

Total debt at December 30, 2022 and September 30, 2022 was $4,218 million and $4,206 million, respectively. See Note 7 to the Condensed Consolidated Financial Statements for additional information regarding debt.

As of December 30, 2022, Tyco Electronics Group S.A. ("TEGSA"), our wholly-owned subsidiary, had $231 million of commercial paper outstanding at a weighted-average interest rate of 4.70%. TEGSA had $370 million of commercial paper outstanding at a weighted-average interest rate of 3.45% at September 30, 2022.

[**Table of Contents**](#TOC)

TEGSA has a five-year unsecured senior revolving credit facility ("Credit Facility") with a maturity date of June 2026 and total commitments of $1.5 billion. TEGSA had no borrowings under the Credit Facility at December 30, 2022 or September 30, 2022.

The Credit Facility contains a financial ratio covenant providing that if, as of the last day of each fiscal quarter, our ratio of Consolidated Total Debt to Consolidated EBITDA (as defined in the Credit Facility) for the then most recently concluded period of four consecutive fiscal quarters exceeds 3.75 to 1.0, an Event of Default (as defined in the Credit Facility) is triggered. The Credit Facility and our other debt agreements contain other customary covenants. None of our covenants are presently considered restrictive to our operations. As of December 30, 2022, we were in compliance with all of our debt covenants and believe that we will continue to be in compliance with our existing covenants for the foreseeable future.

In addition to the Credit Facility, TEGSA is the borrower under our senior notes and commercial paper. TEGSA's payment obligations under its senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed on an unsecured basis by its parent, TE Connectivity Ltd.

Payments of common share dividends to shareholders were $178 million and $163 million in the first quarters of fiscal 2023 and 2022, respectively.

We repurchased approximately two million of our common shares for $233 million and approximately two million of our common shares for $246 million under the share repurchase program during the first quarters of fiscal 2023 and 2022, respectively. At December 30, 2022, we had $1.4 billion of availability remaining under our share repurchase authorization.

**Summarized Guarantor Financial Information**

As discussed above, our senior notes, commercial paper, and Credit Facility are issued by TEGSA and are fully and unconditionally guaranteed on an unsecured basis by TEGSA's parent, TE Connectivity Ltd. In addition to being the issuer of our debt securities, TEGSA owns, directly or indirectly, all of our operating subsidiaries. The following tables present summarized financial information, excluding investments in and equity in earnings of our non-guarantor subsidiaries, for TE Connectivity Ltd. and TEGSA on a combined basis.

---

| | | |
|:---|:---|:---|
|  | **December 30,**<br>**2022** | **September 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** |
| **Balance Sheet Data:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | $820 | $1400 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent assets<sup>(1)</sup> | 2786 | 2769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1156 | 1937 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent liabilities<sup>(2)</sup> | 12152 | 15871 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes $2,723 million and $2,601 million as of December 30, 2022 and September 30, 2022, respectively, of intercompany loans receivable from non-guarantor subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes $8,744 million and $12,582 million as of December 30, 2022 and September 30, 2022, respectively, of intercompany loans payable to non-guarantor subsidiaries.

[**Table of Contents**](#TOC)

---

| | | |
|:---|:---|:---|
|  | **For the** <br>**Quarter Ended**<br>**December 30,**<br>**2022** | **For the** <br>**Fiscal Year Ended**<br>**September 30,**<br>**2022** |
|  | **(in millions)** | **(in millions)** |
| **Statement of Operations Data:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from continuing operations | $(288) | $(35) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | (288) | (35) |

---

**Guarantees**

In certain instances, we have guaranteed the performance of third parties and provided financial guarantees for uncompleted work and financial commitments. The terms of these guarantees vary with end dates ranging from fiscal 2023 through the completion of such transactions. The guarantees would be triggered in the event of nonperformance, and the potential exposure for nonperformance under the guarantees would not have a material effect on our results of operations, financial position, or cash flows.

In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows.

At December 30, 2022, we had outstanding letters of credit, letters of guarantee, and surety bonds of $170 million, excluding those related to our former Subsea Communications ("SubCom") business which are discussed below.

During fiscal 2019, we sold our SubCom business. In connection with the sale, we contractually agreed to continue to honor performance guarantees and letters of credit related to the SubCom business' projects that existed as of the date of sale. These performance guarantees and letters of credit had a combined value of approximately $59 million as of December 30, 2022 and are expected to expire at various dates through fiscal 2027. We have contractual recourse against the SubCom business if we are required to perform on any SubCom guarantees; however, based on historical experience, we do not anticipate having to perform.

**Commitments and Contingencies**

**Legal Proceedings**

In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows.

**Trade Compliance Matters**

We have been investigating our past compliance with relevant U.S. trade controls and have made voluntary disclosures of apparent trade controls violations to the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") and the U.S. State Department's Directorate of Defense Trade Controls ("DDTC"). We are cooperating with the BIS and DDTC on these matters, and the resulting investigations are ongoing. We have also been contacted by the U.S. Department of Justice concerning aspects of these matters. We are unable to predict the timing and final outcome of the agencies' investigations. An unfavorable outcome may include fines or penalties imposed in response to our disclosures, but we are not yet able to reasonably estimate the extent of any such fines or penalties. Although we have reserved for potential fines and penalties relating to these matters based on our current understanding of the facts, the investigations into these matters have yet to be completed and the final outcome of such investigations and related fines and penalties may differ from amounts currently reserved.

[**Table of Contents**](#TOC)

**Critical Accounting Policies and Estimates**

The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses.

Our accounting policies for revenue recognition, goodwill and other intangible assets, income taxes, and pension plans are based on, among other things, judgments and assumptions made by management. For additional information regarding these policies and the underlying accounting assumptions and estimates used in these policies, refer to "Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates" and the Consolidated Financial Statements and accompanying notes contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. There were no significant changes to this information during the first quarter of fiscal 2023.

**Non-GAAP Financial Measure**

**Organic Net Sales Growth (Decline)**

We present organic net sales growth (decline) as we believe it is appropriate for investors to consider this adjusted financial measure in addition to results in accordance with GAAP. Organic net sales growth (decline) represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic net sales growth (decline) is a useful measure of our performance because it excludes items that are not completely under management's control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity.

Organic net sales growth (decline) provides useful information about our results and the trends of our business. Management uses this measure to monitor and evaluate performance. Also, management uses this measure together with GAAP financial measures in its decision-making processes related to the operations of our reportable segments and our overall company. It is also a significant component in our incentive compensation plans. We believe that investors benefit from having access to the same financial measures that management uses in evaluating operations. The tables presented in "Results of Operations" and "Segment Results" provide reconciliations of organic net sales growth (decline) to net sales growth (decline) calculated in accordance with GAAP.

Organic net sales growth (decline) is a non-GAAP financial measure and should not be considered a replacement for results in accordance with GAAP. This non-GAAP financial measure may not be comparable to similarly-titled measures reported by other companies. The primary limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using organic net sales growth (decline) in combination with net sales growth (decline) to better understand the amounts, character, and impact of any increase or decrease in reported amounts.

**Forward-Looking Information**

Certain statements in this Quarterly Report on Form 10-Q are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These statements are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include, among others, the information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, acquisitions, divestitures, the effects of competition, and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," and "should," or the negative of these terms or similar expressions.

[**Table of Contents**](#TOC)

Forward-looking statements involve risks, uncertainties, and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. We do not have any intention or obligation to update forward-looking statements after we file this report except as required by law.

The following and other risks, which are described in greater detail in "Part I. Item 1A. Risk Factors," in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, and in this report, could cause our results to differ materially from those expressed in forward-looking statements:

● conditions in the global or regional economies and global capital markets, and cyclical industry conditions, including recession, inflation, and higher interest rates;

● conditions affecting demand for products in the industries we serve, particularly the automotive industry;

● risk of future goodwill impairment;

● competition and pricing pressure;

● market acceptance of our new product introductions and product innovations and product life cycles;

● raw material availability, quality, and cost;

● fluctuations in foreign currency exchange rates and impacts of offsetting hedges;

● financial condition and consolidation of customers and vendors;

● reliance on third-party suppliers;

● risks associated with current and future acquisitions and divestitures;

● global risks of business interruptions due to natural disasters or other disasters such as the COVID-19 pandemic, which have impacted and could continue to negatively impact our results of operations as well as customer behaviors, business, and manufacturing operations as well as our facilities and the facilities of our suppliers, and other aspects of our business;

● global risks of political, economic, and military instability, including the continuing military conflict between Russia and Ukraine resulting from Russia's invasion of Ukraine or escalating tensions in surrounding countries, and volatile and uncertain economic conditions in China;

● risks associated with security breaches and other disruptions to our information technology infrastructure;

● risks related to compliance with current and future environmental and other laws and regulations;

● risks associated with compliance with applicable antitrust or competition laws or applicable trade regulations;

● our ability to protect our intellectual property rights;

● risks of litigation;

● our ability to operate within the limitations imposed by our debt instruments;

[**Table of Contents**](#TOC)

● the possible effects on us of various non-U.S. and U.S. legislative proposals and other initiatives that, if adopted, could materially increase our worldwide corporate effective tax rate, increase global cash taxes, and negatively impact our U.S. government contracts business;

● various risks associated with being a Swiss corporation;

● the impact of fluctuations in the market price of our shares; and

● the impact of certain provisions of our articles of association on unsolicited takeover proposals.

There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

There have been no significant changes in our exposures to market risk during the first quarter of fiscal 2023. For further discussion of our exposures to market risk, refer to "Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022.

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934), as of December 30, 2022. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 30, 2022.

**Changes in Internal Control Over Financial Reporting**

During the quarter ended December 30, 2022, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

[**Table of Contents**](#TOC)

**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

There have been no material developments in our legal proceedings since we filed our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. Refer to "Part I. Item 3. Legal Proceedings" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 for additional information regarding legal proceedings.

**ITEM 1A. RISK FACTORS**

There have been no material changes in our risk factors from those disclosed in "Part I. Item 1A. Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. The risk factors described in our Annual Report on Form 10-K, in addition to other information in this report, could materially affect our business operations, financial condition, or liquidity. Additional risks and uncertainties not currently known to us or that we currently believe are immaterial may also impair our business operations, financial condition, and liquidity.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Issuer Purchases of Equity Securities**

The following table presents information about our purchases of our common shares during the quarter ended December 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Period** | <br>**Total Number**<br>**of Shares**<br>**Purchased**<sup>(1)</sup> | <br>**Average Price**<br>**Paid Per**<br>**Share**<sup>(1)</sup> | <br>**Total Number of**<br>**Shares Purchased**<br>**as Part of**<br>**Publicly Announced**<br>**Plans or**<br>**Programs**<sup>(2)</sup> | **Maximum**<br>**Approximate**<br>**Dollar Value**<br>**of Shares that May**<br>**Yet Be Purchased**<br>**Under the Plans**<br>**or Programs**<sup>(2)</sup> |
| October 1–October 28, 2022 | 662985 | $113.53 | 662700 | $1606222029 |
| October 29–December 2, 2022 | 741809 | 123.11 | 624500 | 1529778679 |
| December 3–December 30, 2022 | 766670 | 118.58 | 690200 | 1448209608 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 2171464 | 118.59 | 1977400 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) These columns include the following transactions which occurred during the quarter ended December 30, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition of 194,064 common shares from individuals in order to satisfy tax withholding requirements in connection with the vesting of restricted share awards issued under equity compensation plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) open market purchases totaling 1,977,400 common shares, summarized on a trade-date basis, in conjunction with the share repurchase program announced in September 2007.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Our share repurchase program authorizes us to purchase a portion of our outstanding common shares from time to time through open market or private transactions, depending on business and market conditions. The share repurchase program does not have an expiration date .

[**Table of Contents**](#TOC)

**ITEM 6. EXHIBITS**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Exhibit Number** |  | &nbsp;&nbsp;**Exhibit** |
| &nbsp;&nbsp;3.1 |  | &nbsp;&nbsp;[Organizational Regulations of TE Connectivity Ltd., as amended and restated (incorporated by reference to Exhibit 3.1 to TE Connectivity's Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2022)](https://www.sec.gov/Archives/edgar/data/1385157/000155837022018547/tel-20221208xex3d1.htm) |
| &nbsp;&nbsp;10.1 | &nbsp;&nbsp;\*‡ | &nbsp;&nbsp;[Employment Agreement between Aaron Stucki and TE Connectivity Corporation dated October 1, 2020](tel-20221230xex10d1.htm) |
| &nbsp;&nbsp;22.1 | &nbsp;&nbsp;\* | &nbsp;&nbsp;[Guaranteed Securities](tel-20221230xex22d1.htm) |
| &nbsp;&nbsp;31.1 | &nbsp;&nbsp;\* | &nbsp;&nbsp;[Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](tel-20221230xex31d1.htm) |
| &nbsp;&nbsp;31.2 | &nbsp;&nbsp;\* | &nbsp;&nbsp;[Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](tel-20221230xex31d2.htm) |
| &nbsp;&nbsp;32.1 | &nbsp;&nbsp;\*\* | &nbsp;&nbsp;[Certification by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](tel-20221230xex32d1.htm) |
| &nbsp;&nbsp;101.INS |  | &nbsp;&nbsp;Inline XBRL Instance Document<sup>(1)</sup> |
| &nbsp;&nbsp;101.SCH |  | &nbsp;&nbsp;Inline XBRL Taxonomy Extension Schema Document |
| &nbsp;&nbsp;101.CAL |  | &nbsp;&nbsp;Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| &nbsp;&nbsp;101.DEF |  | &nbsp;&nbsp;Inline XBRL Taxonomy Extension Definition Linkbase Document |
| &nbsp;&nbsp;101.LAB |  | &nbsp;&nbsp;Inline XBRL Taxonomy Extension Label Linkbase Document |
| &nbsp;&nbsp;101.PRE |  | &nbsp;&nbsp;Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| &nbsp;&nbsp;104 |  | &nbsp;&nbsp;Cover Page Interactive Data File<sup>(2)</sup> |

---

‡Management contract or compensatory plan or arrangement

\*Filed herewith

\*\* Furnished herewith

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Formatted in Inline XBRL and contained in exhibit 101

[**Table of Contents**](#TOC)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| TE CONNECTIVITY LTD. | TE CONNECTIVITY LTD. |
| By: | /s/ Heath A. Mitts<br>Heath A. Mitts<br>*Executive Vice President and Chief Financial*<br>*Officer (Principal Financial Officer)* |

---

Date: January 27, 2023

## Exhibit 10.1

**Exhibit 10.1**

**EMPLOYMENT AGREEMENT**

**EMPLOYMENT AGREEMENT** (this "<u>A</u>g<u>reement</u>"), dated as of October 1, 2020, by and between TE Connectivity Corporation, a Pennsylvania corporation (the "<u>Com</u>p<u>any</u>"), and Aaron Stucki (the "<u>Executive</u>").

<u>W I T N E S S E T H</u> :

WHEREAS, the Executive serves as **President, Communications Solutions** of the Company; and

WHEREAS, the Executive and the Company mutually desire to document the terms and conditions of Executive's

employment in this employment agreement (the "Employment Agreement").

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for good and valuable

consideration, the receipt of which is hereby acknowledged, the parties hereto, each intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Em</u>p<u>lo</u>y<u>ment</u>. On the terms and subject to the conditions set forth herein, the Company hereby agrees to continue

the employment of the Executive, and the Executive hereby agrees to continue his employment with the Company, for the Employment Term (as defined below). During the Employment Term, the Executive shall serve as the **President, Communications Solutions** of the Company and shall report to the **Chief Executive Officer** or such person or persons as from time to time may be designated by the Company (the "<u>Re</u>p<u>ortin</u>g <u>Officer</u>"), performing such duties and responsibilities as are customarily attendant to such position with respect to the business of the Company and such other duties and responsibilities as may from time to time be assigned to the Executive by the Reporting Officer consistent with such position. Upon notice from the Company, the Executive's title, Reporting Officer and duties and responsibilities may be changed as is deemed necessary and appropriate by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Performance</u>. The Executive shall serve the Company and its subsidiaries and affiliates faithfully and to the best of Executive's ability and shall devote full business time, energy, experience and talents to the business of the Company and its subsidiaries and affiliates, as applicable, and will not engage in any other employment activities for any direct or indirect remuneration without the written approval of the Board; p<u>rovided</u>, <u>however</u>, that it shall not be a violation of this Agreement for the Executive to

(i) manage personal investments or to engage in or serve such civic, community, charitable, educational, or religious organizations as

Executive may select, so long as such service does not create a conflict of interest with, or interfere with the performance of, the Executive's duties hereunder or conflict with the Executive's covenants under Section 6 of this Agreement, or result in a violation of any applicable laws, regulations or articles of association (including the articles of association of TE Connectivity Ltd.), in each case as determined in the sole judgment of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Em</u>p<u>lo</u>y<u>ment Term</u>. This Agreement shall be effective commencing on the date hereof (the "<u>Commencement Date</u>") until terminated by either party providing appropriate notice to the other party (such period, the "<u>Em</u>p<u>lo</u>y<u>ment Term</u>"). The Executive's employment with the Company shall be on an "at-will" basis, which means that the Executive's employment is terminable by either the Company or the Executive at any time for any reason or no reason, with or without cause or notice (other than any notice required under Section 7 hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Princi</u>p<u>al Location</u>. The Executive's principal place of employment shall be the Company's offices located in **Schaffhausen, Switzerland** or such other location as is mutually agreed between the parties, subject to required travel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Com</u>p<u>ensation and Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Base Salary</u>. As compensation for the Executive's services hereunder and in consideration of the Executive's other agreements hereunder, during the Employment Term, the Company shall pay the Executive an annual base salary, payable in equal installments in accordance with Company payroll procedures, in an amount equal to **$525,000.00,** subject to annual review by the Management Development and Compensation Committee (the "MDCC") of the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Annual Cash Bonus</u>. During the Employment Term, the Executive shall be entitled to participate in the Company's Annual Incentive Plan or Annual Performance Bonus Plan, as applicable (the "Bonus Plan"), with a bonus target equal to **85%** subject to annual review by the MDCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Annual E</u>q<u>uit</u>y <u>Incentive Awards</u>. During the Employment Term, the Executive shall be entitled to participate in the Company's 2007 Stock and Incentive Plan (the "SIP"), or such other equity incentive plan as is deemed appropriate by the MDCC, and to receive annual long-term equity incentive awards in a form and amount determined by the MDCC. The Company's award cycle under the SIP currently takes place in the November timeframe each year.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Benefits</u>. During the Employment Term, the Executive shall, subject to and in accordance with the terms

and conditions of the applicable plan documents and all applicable laws, be entitled to participate in all of the employee benefit, fringe and perquisite plans, practices, policies and arrangements that the Company makes available from time to time to its employees generally, under terms consistent with other similarly-situated executives. Such employee benefit plans and programs currently include, but are not limited to, the Tyco Electronics Retirement Savings and Investment Plan, the Tyco Electronics Supplemental Savings and Retirement Plan, the TE Connectivity Health and Welfare Plan (including medical, dental, vision, flexible spending accounts for healthcare and dependent care, life insurance, accidental death and dismemberment insurance, long-term disability and short term disability), Business Travel Medical Insurance, Business Travel Accident Insurance, and the TE Employee Stock Purchase Plan. The Company may amend or terminate the employee benefit plans and programs at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Severance Benefits</u>*.*** During the Employment Term, the Executive shall not be entitled to participate in the Company's Severance Plan for U.S. Officers and Executives or any other severance pay plan, program, or policy of the Company or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Chan</u>g<u>e in Control Severance Plan</u>. During the Employment Term, the Executive shall not be entitled to

participate in the Company's Change in Control Severance Plan for Certain U.S. Officers and Executives or any other change of control plan, program, or policy of the Company or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Vacation and Paid Time Off</u>. The Executive shall be entitled to vacation and paid time off in accordance

with the standard policies of the Company for executives as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Business Ex</u>p<u>enses</u>. The Executive shall be reimbursed by the Company for all reasonable and necessary

business expenses actually incurred by the Executive in performing his duties hereunder. All payments under this paragraph (i) of this Section 5 will be made in accordance with policies established by the Company from time to time and subject to receipt by the Company of appropriate documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Re</u>q<u>uired Stock Ownership</u>. The Executive acknowledges and agrees to adhere to the Company's executive

stock ownership guidelines as set forth in the Company's Stock Ownership Policy, as may be amended from time to time in the Company's sole discretion, which currently requires, among other things, that the Executive shall acquire and hold three times his annual base salary in Company stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Covenants of the Executive</u>. The Executive is party to a "TE Connectivity Confidentiality and Invention Assignment Agreement" (executed upon Executive's employment with the Company) and a "Limited Non-Competition Agreement" (executed upon Executive's initial acceptance of the terms and conditions of the Annual Incentive Plan). Executive acknowledges that the terms and conditions of those agreements remain in full force and effect as described in the agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Termination of Em</u>p<u>lo</u>y<u>ment</u>. The employment of the Executive hereunder and the Employment Term may

be terminated at any time (i) by the Company without Cause (as defined herein) on twelve months written notice to the Executive, (ii) by the Company with Cause or due to the Executive's Disability (as defined herein) on written notice to the Executive, (iii) by the Executive for any reason upon thirty (30) days written notice (which notice period may be waived by the Company in its discretion, in which case, such termination shall be effective on any date prior to the end of such thirty (30) day period as selected by the Company), (iv) by the Executive with Good Reason following a Change in Control (as defined in the Company's Change in Control Severance Plan for Certain U.S. Officers and Executives ("CIC Plan")) on twelve months written notice to the Company, provided that such termination occurs during the period beginning 60 days prior to the date of a Change in Control and ending two years after the date of such Change in Control, or (v) without action by the Company, the Executive or any other person or entity, immediately upon the Executive's death. If the Executive's employment is terminated for any reason under this Section 7(a), the

Company shall be obligated to pay or provide to the Executive (or his estate, as applicable): (A) any base salary payable to the Executive pursuant to this Agreement, accrued up to and including the date on which the Executive's employment terminates, (B) any employee benefits to which the Executive is entitled upon termination of his employment with the Company in accordance with the terms and conditions of the applicable plans of the Company, (C) reimbursement for any unreimbursed business expenses incurred by the Executive prior to his date of termination pursuant to Section 5(f), and (D) payment for accrued but unused vacation and/or paid time off as of the date of his termination, in accordance with Company policy ((A)-(D) collectively, the "<u>Accrued Amounts</u>").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Notice Period Provisions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Com</u>p<u>ensation and Benefits durin</u>g <u>the Notice Period</u>. Except as otherwise provided in

this Section 7, Executive shall continue to be paid his base salary and continue to participate in the Company's incentive compensation and benefit plans (in accordance with the applicable plan terms), as more fully described in Section 5, during the applicable notice period, if any, as described in Section 7 (a) above (such notice period or any part thereof referred to herein as the "Notice Period"), through the Executive's termination date, except that Executive will not be granted any additional long-term equity incentive awards during the Notice Period. For avoidance of doubt, during the Notice Period, Executive will continue to participate in the Annual Incentive Plan or Annual Performance Bonus Plan, as applicable, at the same bonus target award level in effect prior to the Notice Period and under the applicable terms and conditions of the applicable plan through Executive's date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Duties and Res</u>p<u>onsibilities durin</u>g <u>Notice Period.</u> At any time after the Executive or the Company has given notice to the other party to terminate the Executive's employment in accordance with the terms of Section 7(a), provided that the Company continues to pay the Executive's salary and to provide all benefits (or pay a sum in lieu of the value of one or more such benefits) to which the Executive is contractually entitled until the termination of the Executive's employment, the Company shall be entitled in its discretion, during the Notice Period: (A) to require the Executive not to enter or attend his place of work or any other premises of the Company or any affiliates thereof; (B) to require the Executive not to carry out his duties or responsibilities under this Agreement; (C) to require the Executive to return to the Company all property belonging to the Company or any affiliates thereof or to its/their clients or customers (including summaries, extracts or copies); (D) to require the Executive to undertake work from his home and/or to carry out exceptional duties or special projects outside the normal scope of his duties and responsibilities for the Company or any affiliates thereof; (E) to appoint one or more persons to undertake the Executive's duties and/or responsibilities and/or assume his position; (F) to instruct the Executive not to communicate with clients, customers, suppliers, investors, employees, directors, consultants, agents or representatives of the Company or any affiliates thereof; (G) to require the

Executive to keep the Company informed of his whereabouts so that the Executive can be contacted should the need arise for the Executive to perform any duties or responsibilities under this Agreement or exceptional duties or special projects outside of the normal scope of his duties; and/or (H) to remove Executive as a Section 16 officer or member of executive management for purposes of Swiss law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Paid Time Off.</u> Any paid time off which has accrued to the Executive at the start of his Notice Period and any paid time off entitlement which continues to accrue during his Notice Period shall be deemed to be taken by the Executive during the Notice Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)<u>Em</u>p<u>lo</u>y<u>ment Status durin</u>g <u>Notice Period/Prohibition a</u>g<u>ainst Work for a Third Party.</u> For

the avoidance of doubt, during any Notice Period, the Executive shall remain an employee of the Company and continue to receive his normal rate of pay and all contractual benefits in accordance with this Agreement and be bound by all his express and implied duties save as varied in accordance with the provisions of this Section 7(b). During the Notice Period, the Executive shall not undertake any work for any third party (as an employee or otherwise) whether paid or unpaid without written permission from the Company. If the Company grants such permission, the Company's obligation to continue to treat the Executive as an employee of the Company and to continue to provide the normal rate of pay and all contractual benefits as an employee of the Company for the remainder of the Notice Period shall immediately cease, and the Company shall have the right to terminate the Notice Period as it deems appropriate in its discretion in light of the circumstances of third party work at issue. This paragraph shall not apply to any unpaid volunteer work performed by Executive for a civic, community, charitable, educational, or religious organization, provided that such work does not interfere with Executive's ability to make himself available for full-time work with the Company as deemed necessary by the Company in its discretion during the Notice Period. In addition, Executive may accept a compensated role as a member of a board of directors of a for-profit entity, provided that the Executive provides written notice to the Company of the role and the Company consents to Executive's acceptance of the role. Such consent will not be unreasonably withheld as long as the Company determines, in its sole discretion, that the role will not interfere with Executive's ability to make himself available for full-time work with the Company during the Notice Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Pa</u>y<u>ment in Consideration of Release and Restrictive Covenants</u>. If the Executive's employment is

terminated for the reasons described in Sections 7(a)(i) or 7(a)(iv), the Company shall provide the Executive with cash consideration in exchange for the Executive's execution, and compliance with the terms, of the restrictive covenants and release of claims set forth in the separation agreement described in Section 7(d). The amount of such cash consideration shall be equal to the sum of the Executive's annual base salary (as described in Section 5(a)) and the current target annual bonus (as described in Section 5(b)), in each case, as in effect immediately prior to the date of the Executive's termination of employment, and subject to a maximum aggregate amount not exceeding the total amount of compensation (including base salary, Bonus Plan awards and the value of annual equity incentive awards granted) of the Executive during the last full fiscal year when the Executive was employed. Such consideration shall be payable in equal installments over a twelve-month period following the date of such termination in accordance with the Company's payroll practices, subject to reduction for any applicable tax withholding and/or pursuant to any terms of the separation agreement described in Section 7(d).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Se</u>p<u>aration A</u>g<u>reement and Release of Claims</u>. As a condition of receiving any consideration for which the Executive otherwise qualifies under Section 7(b) and 7(c), the Executive agrees (i) to execute, deliver and not revoke, within thirty (30) days following the commencement of the applicable Notice Period, a separation agreement containing restrictive covenants running in favor of the Company and its affiliates, and a general release of the Company and its subsidiaries and their respective affiliates and their respective employees, officers, directors, owners and members from any and all claims, obligations and liabilities of any kind whatsoever, including, without limitation, those arising from or in connection with the Executive's employment or termination of employment with the Company or any of its subsidiaries or affiliates or this Agreement (including, without limitation, civil rights claims), in such form as is requested by the Company, such separation agreement and general release to be delivered, and to have become fully irrevocable, on or before the end of such thirty (30)-day period, and (ii) not to apply for unemployment compensation chargeable to the Company during the period with respect to which the Executive is receiving such consideration. If such a general release described in clause (i) of the immediately preceding sentence has not been executed and delivered and become irrevocable on or before the end of such thirty (30)-day period, no amounts or benefits under Section 7(b) shall be or become payable. As a further condition to receiving the consideration described in Section 7(c), Executive may be required by the Company to execute a confirmation of the general release within thirty (30) days following the Executive's termination of employment. To the extent that any payments or benefits to the Executive under Section 7(b) or 7(c) are subject to Section 409A of the Code and the Executive's employment is terminated within 60 days of the end of a calendar year, payments of such amounts shall not be made until the calendar year following the year in which the Executive's employment is terminated (but with the first payment being a lump sum payment covering all payment periods from the date of termination through the date of such first payment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>No Additional Ri</u>g<u>hts</u>. The Executive acknowledges and agrees that, except as specifically described in this Section 7, all of the Executive's rights to any compensation, benefits, bonuses or other payments from the Company and its subsidiaries and affiliates after termination of the Employment Term shall cease upon such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Offset</u>. To the extent permitted by Section 409A of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), any consideration to which the Executive is otherwise entitled pursuant to this Section 7 shall be (i) reduced by amounts outstanding under any indebtedness, obligations or liabilities owed by the Executive to the Company; (ii) reduced and offset by any severance pay or benefits, or similar amounts, payable to the Executive due to his termination of employment under any labor, social or other governmental plan, program, law or policy, and should such other payments or benefits described in this clause be payable, payments under this Agreement shall be reduced accordingly or, alternatively, payments previously paid or provided under this Agreement will be treated as having been paid or provided to satisfy such other obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Resi</u>g<u>nation as Officer or Director</u>. Upon a termination of employment, unless requested otherwise by the

Company, the Executive shall resign each position (if any) that the Executive then holds as a director or officer of the Company or of

any affiliates of the Company. The Executive's execution of this Agreement shall be deemed the grant by the Executive to the officers of the Company of a limited power of attorney to sign in the Executive's name and on the Executive's behalf any such documentation as may be required to be executed solely for the limited purposes of effectuating such resignations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Definitions of Certain Terms</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"<u>Cause</u>" shall have the meaning given that term in the Company's Severance Plan for U.S. Officers and Executives, as such plan may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"<u>Disability</u>" shall mean a "Permanent Disability" as that term is defined in the Company's Severance Plan for U.S. Officers and Executives, as such plan may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)"<u>Good Reason</u>" shall have the meaning given that term in the CIC Plan, as such plan may be amended from time to time and will only apply after the occurrence of a "Change in Control", as defined in the CIC Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>E</u>q<u>uit</u>y <u>Awards</u>. The treatment of Executive's outstanding equity awards will be governed by the applicable equity award agreements and other governing award and plan documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Notices</u>. All notices, requests, demands, claims, consents and other communications which are required, permitted or otherwise delivered hereunder shall in every case be in writing and shall be deemed properly served if: (a) delivered personally, (b) sent by registered or certified mail, in all such cases with first class postage prepaid, return receipt requested, or (c) delivered by a recognized overnight courier service, to the parties at the addresses as set forth below:

------

---

| | |
|:---|:---|
| If to the Company: | TE Connectivity Corporation<br>1050 Westlakes Drive<br>Berwyn, Pennsylvania 19312 |
|  | Attention: Senior Vice President, Global Human Resources |
| If to the Executive: | At the Executive's residence address as maintained by the Company in the regular course of its business for payroll purposes. |

---

or to such other address as shall be furnished in writing by either party to the other party; p<u>rovided</u> that such notice or change in address shall be effective only when actually received by the other party. Date of service of any such notices or other communications shall be: (a) the date such notice is personally delivered, (b) three days after the date of mailing if sent by certified or registered mail, or (c) one business day after date of delivery to the overnight courier if sent by overnight courier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Section 409A.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The intent of the parties is that payments and benefits under this Agreement comply with or be exempt

from Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively "<u>Code Section 409A</u>"), and the Company shall have complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption from (or compliance with) the requirements of Code Section 409A. If for any reason, such as imprecision in drafting, any provision of this Agreement (or of any award of compensation, including, without limitation, equity compensation or benefits) does not accurately reflect its intended establishment of an exemption from (or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by the Company in a manner consistent with such intent, as determined in the discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)A termination of employment shall not be deemed to have occurred for purposes of any provision of this

Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Code Section 409A upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Code Section 409A, and, for purposes of any such provision of this Agreement, references to a "termination," "termination of employment" or like terms shall mean such a separation from service. The determination of whether and when a separation from service has occurred for purposes of this Agreement shall be made in accordance with the presumptions set forth in Section 1.409A1(h) of the Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Any provision of this Agreement to the contrary notwithstanding, if at the time of the Executive's separation from service, the Company determines that the Executive is a "specified employee," within the meaning of Code Section 409A, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of such separation from service would be considered nonqualified deferred compensation under Code Section 409A, such payment or benefit shall be paid or provided at the date which is the earlier of (i) six (6) months and one day after such separation from service, and (ii) the date of the Executive's death (the "<u>Dela</u>y <u>Period</u>"). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 9(c) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or provided to the Executive in a lump-sum with interest at the prime rate as published by <u>The Wall Street Journal</u> on the first business day of the Delay Period, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Any reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including, without limitation, that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits that the Company is obligated to pay or provide, in any given calendar year shall not affect the expenses that the Company is obligated to reimburse, or the in-kind benefits that the Company is obligated to pay or provide, in any other calendar year, p<u>rovided</u> that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; (iii) the Executive's right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company's obligations to make such reimbursements or to provide such in-kind benefits apply later than the Executive's remaining lifetime (or if longer, through the sixth (6th) anniversary of the Commencement Date).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)For purposes of Code Section 409A, the Executive's right to receive any installment payments shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (for example, "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion of the Company. In no event may the Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment is subject to Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption from, or the conditions of, Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Sa</u>y <u>on Pa</u>y <u>Limitations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Sa</u>y <u>on Pa</u>y <u>Re</u>q<u>uirements</u>. Under Swiss say on pay law, the maximum aggregate amount of compensation of the executive management must be approved by the General Meeting of Shareholders of TE Connectivity Ltd. (the "GM") as a public Swiss company. At each GM, the Company presents to the Company's shareholders for approval the maximum aggregate amount of compensation that can be paid to the executive management in the next succeeding fiscal year. If the GM does not approve the maximum aggregate amount of compensation of the executive management, the Company will determine whether and to what extent the Executive's compensation in that fiscal year will be affected. If the Executive's compensation is affected, this Employment Agreement continues to be effective subject to paragraph (b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Non-Ap</u>p<u>roval b</u>y <u>GM.</u> If the GM refuses to approve the proposed maximum aggregate compensation of the executive management, and Executive's compensation is subject to the approval of the GM, the Executive by signing this

Employment Agreement (i) agrees to accept a modification - as determined by the Company - of the compensation and benefits under this Employment Agreement, and (ii) if the Company decides to pay compensation on a provisional basis in view of what a following GM may approve, the Executive will have to repay any amount of compensation received but subsequently not approved by any following GM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>General.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Governin</u>g <u>Law</u>. This Agreement and the legal relations thus created between the parties hereto shall be

governed by, and construed in accordance with, the internal laws of the Commonwealth of Pennsylvania, without giving effect to any choice of law or conflict of law provision or rule (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the Commonwealth of Pennsylvania. The parties hereto acknowledge and agree that this Agreement was executed and delivered in the Commonwealth of Pennsylvania.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Construction and Severability</u>. Whenever possible, each provision of this Agreement shall be construed and interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by, or invalid, illegal or unenforceable in any respect under, any applicable law or rule in any jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other jurisdiction, and the parties undertake to implement all efforts which are necessary, desirable and sufficient to amend, supplement or substitute all and any such prohibited, invalid, illegal or unenforceable provisions with enforceable and valid provisions in such jurisdiction which would produce as nearly as may be possible the result previously intended by the parties without renegotiation of any material terms and conditions stipulated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Coo</u>p<u>eration</u>. During the Employment Term and thereafter, the Executive shall cooperate with the Company and be reasonably available to the Company with respect to continuing and/or future matters related to the Executive's employment period with the Company and/or its subsidiaries or affiliates, whether such matters are business-related, legal, regulatory or otherwise (including, without limitation, the Executive appearing at the Company's request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into the Executive's possession). Following the Employment Term, the Company shall reimburse the Executive for all reasonable out of pocket expenses incurred by the Executive in rendering such services that are approved by the Company. In addition, if more than an incidental cooperation is required at any time after the termination of the Executive's employment, the Executive shall be paid (other than for the time of actual testimony) a per day fee based on his base salary described in Section 5(a) at the time of such termination divided by 225.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Successors and Assi</u>g<u>ns</u>. This Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and the Executive and the Executive's heirs, executors, administrators, and successors; p<u>rovided</u> that the services provided by the Executive under this Agreement are of a personal nature, and rights and obligations of the Executive under this Agreement shall not be assignable or delegable, except for any death payments otherwise due the Executive,

------

which shall be payable to the estate of the Executive; p<u>rovided further</u> the Company may assign this Agreement to, and all rights hereunder shall inure to the benefit of, any subsidiary or affiliate of the Company or any person, firm or corporation resulting from the reorganization of the Company or succeeding to the business or assets of the Company by purchase, merger, consolidation or otherwise; and p<u>rovided further</u> that in the event of the Executive's death, any unpaid amount due to the Executive under this Agreement shall be paid to his estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Executive's Re</u>p<u>resentations</u>. The Executive hereby represents and warrants to the Company that: (i) the execution, delivery and performance of this Agreement by the Executive do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which the Executive is bound; (ii) the Executive is not a party to or bound by any employment agreement, noncompetition or nonsolicitation agreement or confidentiality agreement with any other person or entity besides the Company and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of the Executive, enforceable in

accordance with its terms. **THE EXECUTIVE HEREBY ACKNOWLEDGES AND REPRESENTS THAT THE EXECUTIVE HAS CONSULTED WITH INDEPENDENT LEGAL COUNSEL REGARDING THE EXECUTIVE'S RIGHTS AND**

**OBLIGATIONS UNDER THIS AGREEMENT, TO THE EXTENT DETERMINED NECESSARY OR APPROPRIATE BY THE EXECUTIVE, AND THAT THE EXECUTIVE FULLY UNDERSTANDS THE TERMS AND CONDITIONS CONTAINED HEREIN.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Com</u>p<u>liance with Rules and Policies</u>. The Executive shall perform all services in accordance with the policies, procedures and rules established by the Company and the Board, including, but not limited to, the Company's Guide to Ethical Conduct. In addition, the Executive shall comply with all laws, rules and regulations that are generally applicable to the Company or its subsidiaries or affiliates and their respective employees, directors and officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Withholding Taxes. All amounts payable hereunder shall be subject to the withholding of all applicable taxes and deductions required by any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Entire A</u>g<u>reement</u>. This Agreement constitutes the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and terminates and supersedes any and all prior agreements, understandings and representations, whether written or oral, by or between the parties hereto or their affiliates which may have related to the subject matter hereof in any way, including, without limitation, and any other existing employment agreement or change of control agreement, which is hereby terminated and cancelled and of no further force or effect as of the Commencement Date, without the payment of any additional consideration by or to either of the parties hereto; provided, however, that the agreements referenced in Section 6, any agreement between the parties addressing the terms and conditions of Executive's expatriate assignment or relocation, as applicable, and any agreement issued under the terms of any compensation or employee benefit plan described herein or in which the Executive is otherwise a participant shall not be affected by this Section 10(h). Notwithstanding any provision of this Agreement to the contrary, neither the assignment of the Executive to a different Reporting Officer due to a reorganization or an internal restructuring of the Company or its subsidiaries or affiliates nor a change in the Reporting Officer's title shall constitute a modification or a breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Duration</u>. Notwithstanding the Employment Term hereunder, this Agreement shall continue for so long as any obligations remain under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Survival</u>. The covenants set forth in the agreements referenced in Section 6 and the covenants set forth in Section 10(c) of this Agreement shall survive and shall continue to be binding upon the Executive notwithstanding the termination of this Agreement for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Amendment and Waiver</u>. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and the Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company's right to terminate the Employment Term for Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any similar or dissimilar requirement, provision or condition of this Agreement at the same or any prior or subsequent time. Pursuit by either party of any available remedy, either in law or equity, or any action of any kind, does not constitute waiver of any other remedy or action. Such remedies and actions are cumulative and not exclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Counter</u>p<u>arts</u>. This Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)<u>Section References</u>. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. The words Section and paragraph herein shall refer to provisions of this Agreement unless expressly indicated otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)<u>No Strict Construction</u>. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring either party hereto by virtue of the authorship of any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)<u>Time of the Essence</u>; <u>Com</u>p<u>utation of Time</u>. Time is of the essence for each and every provision of this Agreement. Whenever the last day for the exercise of any privilege or the discharge or any duty hereunder shall fall upon a Saturday, Sunday, or any date on which banks in Berwyn, Pennsylvania are authorized to be closed, the party having such privilege or duty may exercise such privilege or discharge such duty on the next succeeding day which is a regular business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)<u>No Third-Part</u>y <u>Beneficiaries</u>. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement and their respective heirs, executors, administrators, successors or permitted assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)<u>Forfeiture and Clawback</u>. The Executive acknowledges and agrees that, notwithstanding anything in this Agreement to the contrary, this Agreement and all amounts payable hereunder shall be subject to any applicable compensation, clawback and recoupment policies implemented by the Board, as may be in effect from time to time.

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have hereunto executed this Agreement

as of the day and year first written above.

---

| |
|:---|
| &nbsp;&nbsp;TE CONNECTIVITY CORPORATION |
| By: |

---

<u>/s/ Tim Murphy</u>

---

| |
|:---|
| &nbsp;&nbsp;<br>Name:Tim Murphy |
| By: |

---

<u>/s/ Aaron Stucki</u>

Name:Aaron Stucki

------

## Exhibit 22.1

**Exhibit 22.1**

**GUARANTEED SECURITIES**

Pursuant to Item 601(b)(22) of Regulation S-K, set forth below are registered securities issued by Tyco Electronics Group S.A. ("TEGSA") (Issuer) and guaranteed by TEGSA's parent, TE Connectivity Ltd. (Guarantor), as of December 30, 2022.

---

| |
|:---|
| &nbsp;&nbsp;**Description of securities** |
| &nbsp;&nbsp;1.10% euro-denominated senior notes due 2023 |
| &nbsp;&nbsp;3.45% senior notes due 2024 |
| &nbsp;&nbsp;0.00% euro-denominated senior notes due 2025 |
| &nbsp;&nbsp;3.70% senior notes due 2026 |
| &nbsp;&nbsp;3.125% senior notes due 2027 |
| &nbsp;&nbsp;0.00% euro-denominated senior notes due 2029 |
| &nbsp;&nbsp;2.50% senior notes due 2032 |
| &nbsp;&nbsp;7.125% senior notes due 2037 |

---

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

I, Terrence R. Curtin, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of TE Connectivity Ltd.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: January 27, 2023 |  |
|  | /s/ Terrence R. Curtin |
|  | Terrence R. Curtin |
|  | *Chief Executive Officer* |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

I, Heath A. Mitts, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of TE Connectivity Ltd.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: January 27, 2023 |  |
|  | /s/ Heath A. Mitts |
|  | Heath A. Mitts |
|  | *Executive Vice President and Chief Financial Officer* |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**TE CONNECTIVITY LTD.**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

The undersigned officers of TE Connectivity Ltd. (the "Company") hereby certify to their knowledge that the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 30, 2022 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Terrence R. Curtin |
| Terrence R. Curtin |
| *Chief Executive Officer* |
| January 27, 2023 |
| /s/ Heath A. Mitts |
| Heath A. Mitts |
| *Executive Vice President and Chief Financial Officer* |
| January 27, 2023 |

---

------