Tyco Electronics Group S.A. (“TEGSA”), a Luxembourg company and our 100%-owned subsidiary, is a holding company that owns, directly or indirectly, all of our operating subsidiaries. TEGSA is the obligor under our senior notes, commercial paper, and Credit Facility, which are fully and unconditionally guaranteed by its parent, TE Connectivity Ltd. The following tables present condensed consolidating financial information for TE Connectivity Ltd., TEGSA, and all other subsidiaries that are not providing a guarantee of debt but which represent assets of TEGSA, using the equity method of accounting.

(1)	TEGSA selling, general, and administrative expenses include gains of $194 million related to intercompany transactions. These gains are offset by corresponding losses recorded by other subsidiaries.

Condensed Consolidating Statement of Operations

For the Fiscal Year Ended September 28, 2018


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Net sales	$	—	$	—	$	13,988	$	—	$	13,988
Cost of sales		—		—		9,243		—		9,243
Gross margin		—		—		4,745		—		4,745
Selling, general, and administrative expenses, net		154		6		1,434		—		1,594
Research, development, and engineering expenses		—		—		680		—		680
Acquisition and integration costs		—		—		14		—		14
Restructuring and other charges, net		—		—		126		—		126
Operating income (loss)		(154)		(6)		2,491		—		2,331
Interest income		—		2		13		—		15
Interest expense		—		(105)		(2)		—		(107)
Other income, net		—		—		1		—		1
Equity in net income of subsidiaries		2,808		2,841		—		(5,649)		—
Equity in net loss of subsidiaries of discontinued operations		(19)		(19)		—		38		—
Intercompany interest income (expense), net		(70)		76		(6)		—		—
Income from continuing operations before income taxes		2,565		2,789		2,497		(5,611)		2,240
Income tax benefit		—		—		344		—		344
Income from continuing operations		2,565		2,789		2,841		(5,611)		2,584
Loss from discontinued operations, net of income taxes		—		—		(19)		—		(19)
Net income		2,565		2,789		2,822		(5,611)		2,565
Other comprehensive loss		(108)		(108)		(82)		190		(108)
Comprehensive income	$	2,457	$	2,681	$	2,740	$	(5,421)	$	2,457

Condensed Consolidating Statement of Operations

For the Fiscal Year Ended September 29, 2017


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Net sales	$	—	$	—	$	12,185	$	—	$	12,185
Cost of sales		—		—		8,002		—		8,002
Gross margin		—		—		4,183		—		4,183
Selling, general, and administrative expenses, net⁽¹⁾		184		1,911		(552)		—		1,543
Research, development, and engineering expenses		—		—		611		—		611
Acquisition and integration costs		—		—		6		—		6
Restructuring and other charges, net		—		—		147		—		147
Operating income (loss)		(184)		(1,911)		3,971		—		1,876
Interest income		—		—		16		—		16
Interest expense		—		(129)		(1)		—		(130)
Other expense, net		—		—		(42)		—		(42)
Equity in net income of subsidiaries		1,756		3,686		—		(5,442)		—
Equity in net income of subsidiaries of discontinued operations		143		156		—		(299)		—
Intercompany interest income (expense), net		(32)		110		(78)		—		—
Income from continuing operations before income taxes		1,683		1,912		3,866		(5,741)		1,720
Income tax expense		—		—		(180)		—		(180)
Income from continuing operations		1,683		1,912		3,686		(5,741)		1,540
Income (loss) from discontinued operations, net of income taxes⁽²⁾		—		(13)		156		—		143
Net income		1,683		1,899		3,842		(5,741)		1,683
Other comprehensive income		382		382		375		(757)		382
Comprehensive income	$	2,065	$	2,281	$	4,217	$	(6,498)	$	2,065

(1)	TEGSA selling, general and administrative expenses include losses of $1,965 million related to intercompany transactions. These losses are offset by corresponding gains recorded by other subsidiaries.

(2)	Includes the internal allocation of gains and losses associated with the divestiture of our Broadband Network Solutions business.

Condensed Consolidating Balance Sheet

As of September 27, 2019


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	—	$	—	$	927	$	—	$	927
Accounts receivable, net		—		—		2,320		—		2,320
Inventories		—		—		1,836		—		1,836
Intercompany receivables		49		2,959		60		(3,068)		—
Prepaid expenses and other current assets		4		36		431		—		471
Total current assets		53		2,995		5,574		(3,068)		5,554
Property, plant, and equipment, net		—		—		3,574		—		3,574
Goodwill		—		—		5,740		—		5,740
Intangible assets, net		—		—		1,596		—		1,596
Deferred income taxes		—		—		2,776		—		2,776
Investment in subsidiaries		13,865		28,336		—		(42,201)		—
Intercompany loans receivable		—		2,562		16,033		(18,595)		—
Other assets		—		72		382		—		454
Total assets	$	13,918	$	33,965	$	35,675	$	(63,864)	$	19,694
Liabilities and shareholders’ equity
Current liabilities:
Short-term debt	$	—	$	568	$	2	$	—	$	570
Accounts payable		1		—		1,356		—		1,357
Accrued and other current liabilities		328		57		1,228		—		1,613
Intercompany payables		3,019		—		49		(3,068)		—
Total current liabilities		3,348		625		2,635		(3,068)		3,540
Long-term debt		—		3,395		—		—		3,395
Intercompany loans payable		—		16,033		2,562		(18,595)		—
Long-term pension and postretirement liabilities		—		—		1,367		—		1,367
Deferred income taxes		—		—		156		—		156
Income taxes		—		—		239		—		239
Other liabilities		—		47		380		—		427
Total liabilities		3,348		20,100		7,339		(21,663)		9,124
Total shareholders’ equity		10,570		13,865		28,336		(42,201)		10,570
Total liabilities and shareholders’ equity	$	13,918	$	33,965	$	35,675	$	(63,864)	$	19,694

Condensed Consolidating Balance Sheet

As of September 28, 2018


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	—	$	—	$	848	$	—	$	848
Accounts receivable, net		—		—		2,361		—		2,361
Inventories		—		—		1,857		—		1,857
Intercompany receivables		37		2,391		48		(2,476)		—
Prepaid expenses and other current assets		5		112		544		—		661
Assets held for sale		—		—		472		—		472
Total current assets		42		2,503		6,130		(2,476)		6,199
Property, plant, and equipment, net		—		—		3,497		—		3,497
Goodwill		—		—		5,684		—		5,684
Intangible assets, net		—		—		1,704		—		1,704
Deferred income taxes		—		—		2,144		—		2,144
Investment in subsidiaries		13,626		26,613		—		(40,239)		—
Intercompany loans receivable		2		6,535		17,887		(24,424)		—
Other assets		—		—		1,158		—		1,158
Total assets	$	13,670	$	35,651	$	38,204	$	(67,139)	$	20,386
Liabilities and shareholders’ equity
Current liabilities:
Short-term debt	$	—	$	961	$	2	$	—	$	963
Accounts payable		2		—		1,546		—		1,548
Accrued and other current liabilities		400		36		1,275		—		1,711
Intercompany payables		2,437		—		39		(2,476)		—
Liabilities held for sale		—		—		188		—		188
Total current liabilities		2,839		997		3,050		(2,476)		4,410
Long-term debt		—		3,033		4		—		3,037
Intercompany loans payable		—		17,888		6,536		(24,424)		—
Long-term pension and postretirement liabilities		—		—		1,102		—		1,102
Deferred income taxes		—		—		207		—		207
Income taxes		—		—		312		—		312
Other liabilities		—		107		380		—		487
Total liabilities		2,839		22,025		11,591		(26,900)		9,555
Total shareholders’ equity		10,831		13,626		26,613		(40,239)		10,831
Total liabilities and shareholders’ equity	$	13,670	$	35,651	$	38,204	$	(67,139)	$	20,386

Condensed Consolidating Statement of Cash Flows

For the Fiscal Year Ended September 27, 2019


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Cash flows from operating activities:
Net cash provided by continuing operating activities⁽¹⁾	$	998	$	4,107	$	2,920	$	(5,571)	$	2,454
Net cash used in discontinued operating activities		—		—		(32)		—		(32)
Net cash provided by operating activities		998		4,107		2,888		(5,571)		2,422
Cash flows from investing activities:
Capital expenditures		—		—		(749)		—		(749)
Proceeds from sale of property, plant, and equipment		—		—		43		—		43
Acquisition of businesses, net of cash acquired		—		—		(283)		—		(283)
Proceeds from divestiture of discontinued operation, net of cash retained by sold operation		—		312		(15)		—		297
Change in intercompany loans		—		1,483		—		(1,483)		—
Other		—		—		2		—		2
Net cash provided by (used in) continuing investing activities		—		1,795		(1,002)		(1,483)		(690)
Net cash used in discontinued investing activities		—		—		(2)		—		(2)
Net cash provided by (used in) investing activities		—		1,795		(1,004)		(1,483)		(692)
Cash flows from financing activities:
Changes in parent company equity⁽²⁾		78		(4,642)		4,564		—		—
Net decrease in commercial paper		—		(51)		—		—		(51)
Proceeds from issuance of debt		—		746		—		—		746
Repayment of debt		—		(691)		—		—		(691)
Proceeds from exercise of share options		—		—		85		—		85
Repurchase of common shares		(1,052)		—		(39)		—		(1,091)
Payment of common share dividends to shareholders		(608)		—		—		—		(608)
Intercompany distributions⁽¹⁾		—		(1,260)		(4,311)		5,571		—
Loan activity with parent		584		—		(2,067)		1,483		—
Transfers to discontinued operations		—		—		(34)		—		(34)
Other		—		(4)		(29)		—		(33)
Net cash used in continuing financing activities		(998)		(5,902)		(1,831)		7,054		(1,677)
Net cash provided by discontinued financing activities		—		—		34		—		34
Net cash used in financing activities		(998)		(5,902)		(1,797)		7,054		(1,643)
Effect of currency translation on cash		—		—		(8)		—		(8)
Net increase in cash, cash equivalents, and restricted cash		—		—		79		—		79
Cash, cash equivalents, and restricted cash at beginning of fiscal year		—		—		848		—		848
Cash, cash equivalents, and restricted cash at end of fiscal year	$	—	$	—	$	927	$	—	$	927

(1)	During fiscal 2019, other subsidiaries made distributions to TEGSA in the amount of $4,311 million and TEGSA made distributions to TE Connectivity Ltd. In the amount of $1,260 million. Cash flows are presented based upon the nature of the distributions.

(2)	Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.

Condensed Consolidating Statement of Cash Flows

For the Fiscal Year Ended September 28, 2018


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Cash flows from operating activities:
Net cash provided by continuing operating activities⁽¹⁾	$	486	$	343	$	2,625	$	(1,153)	$	2,301
Net cash provided by discontinued operating activities		—		—		150		—		150
Net cash provided by operating activities		486		343		2,775		(1,153)		2,451
Cash flows from investing activities:
Capital expenditures		—		—		(935)		—		(935)
Proceeds from sale of property, plant, and equipment		—		—		23		—		23
Acquisition of businesses, net of cash acquired		—		—		(153)		—		(153)
Intercompany distribution receipts⁽¹⁾		—		794		—		(794)		—
Change in intercompany loans		—		62		—		(62)		—
Other		—		—		(8)		—		(8)
Net cash provided by (used in) continuing investing activities		—		856		(1,073)		(856)		(1,073)
Net cash used in discontinued investing activities		—		—		(21)		—		(21)
Net cash provided by (used in) investing activities		—		856		(1,094)		(856)		(1,094)
Cash flows from financing activities:
Changes in parent company equity⁽²⁾		112		(170)		58		—		—
Net increase in commercial paper		—		270		—		—		270
Proceeds from issuance of debt		—		119		—		—		119
Repayment of debt		—		(708)		—		—		(708)
Proceeds from exercise of share options		—		—		100		—		100
Repurchase of common shares		(478)		—		(401)		—		(879)
Payment of common share dividends to shareholders		(594)		—		6		—		(588)
Intercompany distributions⁽¹⁾		—		(710)		(505)		1,215		—
Loan activity with parent		474		—		(1,268)		794		—
Transfers from discontinued operations		—		—		129		—		129
Other		—		—		(36)		—		(36)
Net cash used in continuing financing activities		(486)		(1,199)		(1,917)		2,009		(1,593)
Net cash used in discontinued financing activities		—		—		(129)		—		(129)
Net cash used in financing activities		(486)		(1,199)		(2,046)		2,009		(1,722)
Effect of currency translation on cash		—		—		(5)		—		(5)
Net decrease in cash, cash equivalents, and restricted cash		—		—		(370)		—		(370)
Cash, cash equivalents, and restricted cash at beginning of fiscal year		—		—		1,218		—		1,218
Cash, cash equivalents, and restricted cash at end of fiscal year	$	—	$	—	$	848	$	—	$	848

(1)	During fiscal 2018, other subsidiaries made distributions to TEGSA in the amount of $505 million and TEGSA made distributions to TE Connectivity Ltd. in the amount of $710 million. Cash flows are presented based upon the nature of the distributions.

(2)	Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.

Condensed Consolidating Statement of Cash Flows

For the Fiscal Year Ended September 29, 2017


	TE
	Connectivity				Other		Consolidating
	Ltd.		TEGSA		Subsidiaries		Adjustments		Total
	(in millions)
Cash flows from operating activities:
Net cash provided by (used in) continuing operating activities⁽¹⁾	$	(180)	$	102	$	2,581	$	(230)	$	2,273
Net cash provided by discontinued operating activities		—		—		48		—		48
Net cash provided by (used in) operating activities		(180)		102		2,629		(230)		2,321
Cash flows from investing activities:
Capital expenditures		—		—		(679)		—		(679)
Proceeds from sale of property, plant, and equipment		—		—		19		—		19
Acquisition of businesses, net of cash acquired		—		—		(250)		—		(250)
Intercompany distribution receipts⁽¹⁾		—		516		—		(516)		—
Change in intercompany loans		—		(1,369)		—		1,369		—
Other		—		(12)		13		—		1
Net cash used in continuing investing activities		—		(865)		(897)		853		(909)
Net cash used in discontinued investing activities		—		—		(23)		—		(23)
Net cash used in investing activities		—		(865)		(920)		853		(932)
Cash flows from financing activities:
Changes in parent company equity⁽²⁾		97		559		(656)		—		—
Net decrease in commercial paper		—		(330)		—		—		(330)
Proceeds from issuance of debt		—		589		—		—		589
Proceeds from exercise of share options		—		—		117		—		117
Repurchase of common shares		—		—		(614)		—		(614)
Payment of common share dividends to shareholders		(550)		—		4		—		(546)
Intercompany distributions⁽¹⁾		—		(50)		(696)		746		—
Loan activity with parent		633		—		736		(1,369)		—
Transfers from discontinued operations		—		—		25		—		25
Other		—		(5)		(25)		—		(30)
Net cash provided by (used in) continuing financing activities		180		763		(1,109)		(623)		(789)
Net cash used in discontinued financing activities		—		—		(25)		—		(25)
Net cash provided by (used in) financing activities		180		763		(1,134)		(623)		(814)
Effect of currency translation on cash		—		—		(4)		—		(4)
Net increase in cash, cash equivalents, and restricted cash		—		—		571		—		571
Cash, cash equivalents, and restricted cash at beginning of fiscal year		—		—		647		—		647
Cash, cash equivalents, and restricted cash at end of fiscal year	$	—	$	—	$	1,218	$	—	$	1,218

(1)	During fiscal 2017, other subsidiaries made distributions to TEGSA in the amount of $696 million and TEGSA made distributions to TE Connectivity Ltd. in the amount of $50 million. Cash flows are presented based upon the nature of the distributions.

(2)	Changes in parent company equity includes cash flows related to certain intercompany equity and funding transactions, and other intercompany activity.