TE Connectivity plc (TEL) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that TE Connectivity plc surfaced in its latest filing.

• In fiscal 2025, approximately 60% of net sales were invoiced in foreign currencies, and we have elected not to hedge this exposure.fiscal 2025
• We have 19 principal manufacturing sites in China and approximately 25% of our net sales in fiscal 2025 were to customers in China, amid volatile economic conditions and evolving legal and regulatory systems, as well as significant U.S.-China trade uncertainty including recent or proposed tariffs.fiscal 2025
• As of September 26, 2026, current attribution rules cease to apply, so our non-U.S. subsidiaries will not be treated as Controlled Foreign Corporations.September 26, 2026
• Ireland implemented OECD global minimum tax rules effective fiscal 2025.fiscal 2025
• During fiscal 2025, approximately 41% of net sales were to customers in the automotive end market; 13% to digital data networks; 12% to automation and connected living; and 9% to aerospace, defense, and marine.fiscal 2025
• Our Credit Facility limits the ratio of Consolidated Total Debt to Consolidated EBITDA, restricts subsidiary debt and incurrence of liens, and contains cross-default provisions.
• Outstanding notes indentures limit incurrence of liens, sale and lease-back transactions, and ability to consolidate, merge, and sell assets. A change of control triggering event requires us to offer to repurchase senior notes at 101% of principal plus accrued interest.
• We have received notifications from the U.S. Environmental Protection Agency and other environmental agencies regarding conditions at currently and formerly owned or operated sites requiring investigation, cleanup, and other possible remedial action, and we are required to reimburse the government for such costs and natural resource damage claims.
• Directors' authority to allot shares up to authorized but unissued share capital expires five years from September 30, 2024.September 30, 2024
• Irish Capital Acquisitions Tax (CAT) could apply to a gift or inheritance of ordinary shares, with children having a tax-free threshold of €400,000 per lifetime.