UsetheselinkstorapidlyreviewthedocumentTECONNECTIVITYLTD.TABLEOFCONTENTSTECONNECTIVITYLTD.

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UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549

FORM10-K

001-33260(CommissionFileNumber)

TECONNECTIVITYLTD.(Exactnameofregistrantasspecifiedinitscharter)

Switzerland(JurisdictionofIncorporation)

98-0518048(I.R.S.EmployerIdentification

No.)

Rheinstrasse20,CH-8200Schaffhausen,Switzerland(Addressofprincipalexecutiveoffices)

+41(0)526336661(Registrant'stelephonenumber)

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Titleofeachclass NameofeachexchangeonwhichregisteredCommonShares,ParValue

CHF0.57 NewYorkStockExchange

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesýNoo

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.YesoNoý

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesýNoo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-Tduringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesýNoo

(MarkOne)

ý ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthefiscalyearendedSeptember30,2016

or

o TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-Kisnotcontainedherein,andwillnotbecontained,tothebestofregistrant'sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.ý

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethedefinitionsof"largeacceleratedfiler,""acceleratedfiler,"and"smallerreportingcompany"inRule12b-2oftheExchangeAct:

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).YesoNoý

Theaggregatemarketvalueoftheregistrant'scommonsharesheldbynon-affiliatesoftheregistrantwas$21.7billionasofMarch25,2016,thelastbusinessdayoftheregistrant'smostrecentlycompletedsecondfiscalquarter.Directorsandexecutiveofficersoftheregistrantareconsideredaffiliatesforpurposesofthiscalculationbutshouldnotnecessarilybedeemedaffiliatesforanyotherpurpose.

ThenumberofcommonsharesoutstandingasofNovember10,2016was355,343,021.

DOCUMENTSINCORPORATEDBYREFERENCE

Portionsoftheregistrant'sProxyStatementtobefiledinconnectionwiththeregistrant's2017annualgeneralmeetingofshareholdersareincorporatedbyreferenceintoPartIIIofthisForm10-K.

Largeacceleratedfilerý Acceleratedfilero Non-acceleratedfilero(Donotcheckifa

smallerreportingcompany)

Smallerreportingcompanyo

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TECONNECTIVITYLTD.TABLEOFCONTENTS

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Page PartI

Item1. Business 1Item1A. RiskFactors 7Item2. Properties 20Item3. LegalProceedings 20

PartII

Item5. MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities

21

Item6. SelectedFinancialData 24Item7. Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations 26Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 49Item8. FinancialStatementsandSupplementaryData 50Item9A. ControlsandProcedures 51

PartIII

Item10. Directors,ExecutiveOfficersandCorporateGovernance 52Item11. ExecutiveCompensation 52Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 52Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 54Item14. PrincipalAccountantFeesandServices 54

PartIV

Item15. ExhibitsandFinancialStatementSchedules 55Signatures 59IndextoConsolidatedFinancialStatements 61

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SPECIALNOTEABOUTFORWARD-LOOKINGSTATEMENTS

Wehavemadeforward-lookingstatementsinthisAnnualReport,includinginthesectionsentitled"Business,""RiskFactors,""LegalProceedings,""Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations,"and"QuantitativeandQualitativeDisclosuresaboutMarketRisk,"thatarebasedonourmanagement'sbeliefsandassumptionsandoninformationcurrentlyavailabletoourmanagement.Forward-lookingstatementsinclude,amongothers,theinformationconcerningourpossibleorassumedfutureresultsofoperations,businessstrategies,financingplans,competitiveposition,potentialgrowthopportunities,potentialoperatingperformanceimprovements,acquisitions,divestitures,theeffectsofcompetition,andtheeffectsoffuturelegislationorregulations.Forward-lookingstatementsincludeallstatementsthatarenothistoricalfactsandcanbeidentifiedbytheuseofforward-lookingterminologysuchasthewords"believe,""expect,""plan,""intend,""anticipate,""estimate,""predict,""potential,""continue,""may,""should,"orthenegativeofthesetermsorsimilarexpressions.

Forward-lookingstatementsinvolverisks,uncertainties,andassumptions.Actualresultsmaydiffermateriallyfromthoseexpressedintheseforward-lookingstatements.Youshouldnotputunduerelianceonanyforward-lookingstatements.Wedonothaveanyintentionorobligationtoupdateforward-lookingstatementsafterwefilethisreportexceptasrequiredbylaw.

Theriskfactorsdiscussedin"RiskFactors"andotherrisksidentifiedinthisAnnualReportcouldcauseourresultstodiffermateriallyfromthoseexpressedinforward-lookingstatements.Theremaybeotherrisksanduncertaintiesthatweareunabletopredictatthistimeorthatwecurrentlydonotexpecttohaveamaterialadverseeffectonourbusiness.

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PARTI

ITEM1.BUSINESS

General

TEConnectivityLtd.("TEConnectivity"orthe"Company,"whichmaybereferredtoas"we,""us,"or"our")isaglobaltechnologyleader.Wedesignandmanufactureconnectivityandsensorsolutionsthatareessentialintoday'sincreasinglyconnectedworld.Wehelpourcustomerssolvetheneedforintelligent,efficient,andhigh-performingproductsandsolutions.

Webecameanindependent,publiclytradedcompanyin2007;however,throughourpredecessorcompanies,wetraceourfoundationsintheconnectivitybusinessbackto1941.WeareorganizedunderthelawsofSwitzerland.TherightsofholdersofoursharesaregovernedbySwisslaw,ourSwissarticlesofassociation,andourSwissorganizationalregulations.

Wehavea52or53-weekfiscalyearthatendsonthelastFridayofSeptember.Fiscal2016wasa53weekyearandendedonSeptember30,2016.Fiscal2015and2014were52weeksinlengthandendedonSeptember25,2015andSeptember26,2014,respectively.

Segments

Weoperatethroughthefollowingreportablesegments:TransportationSolutions,IndustrialSolutions,andCommunicationsSolutions.Webelieveourthreesegmentsserveacombinedmarketofapproximately$170billion.

Ournetsalesbysegmentasapercentageofourtotalnetsaleswereasfollows:

Belowisadescriptionofourreportablesegmentsandtheprimaryproducts,markets,andcompetitorsofeachsegment.SeeNotes1and21totheConsolidatedFinancialStatementsforadditionalinformationregardingoursegments.

Transportation Solutions

TheTransportationSolutionssegmentisaleaderinconnectivityandsensortechnologies.TheprimaryproductssoldbytheTransportationSolutionssegmentincludeterminalsandconnectorsystemsandcomponents;sensors;relays;applicationtooling;andwireandheatshrinktubing.TheTransportationSolutionssegment'sproducts,whichmustwithstandharshconditions,areusedinthefollowingendmarkets:

• Automotive(75%ofsegment'snetsales).Weareoneoftheleadingprovidersofadvancedautomobileconnectivitysolutions.Theautomotiveindustryusesourproductsinautomotivetechnologiesforbodyandchassissystems,convenienceapplications,driverinformation,infotainmentsolutions,miniaturizationsolutions,motorandpowertrainapplications,andsafetyandsecuritysystems.Hybridandelectronicmobilitysolutionsincludein-vehicletechnologies,batterytechnologies,andchargingsolutions.

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Fiscal 2016 2015 2014 TransportationSolutions 53% 52% 51%IndustrialSolutions 26 26 28CommunicationsSolutions 21 22 21Total 100% 100% 100%

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• Commercialtransportation(13%ofsegment'snetsales).Wedeliverreliableconnectivityproductsdesignedtowithstandharshenvironmentalconditionsforon-andoff-highwayvehiclesandrecreationaltransportation,includingconstruction,agriculture,buses,andothervehicles.

• Sensors(12%ofsegment'snetsales).Weofferaportfolioofintelligent,efficient,andhigh-performingsensorsolutionsthatareusedbycustomersacrossmultipleindustries,includingautomotive,industrialequipment,commercialtransportation,medicalsolutions,aerospaceanddefense,andconsumerapplications.

TheTransportationSolutionssegment'smajorcompetitorsincludeYazaki,Delphi,Sumitomo,Sensata,Honeywell,Molex,andAmphenol.

Industrial Solutions

TheIndustrialSolutionssegmentisaleadingsupplierofproductsthatconnectanddistributepower,data,andsignals.TheprimaryproductssoldbytheIndustrialSolutionssegmentincludeterminalsandconnectorsystemsandcomponents;heatshrinktubing;relays;andwireandcable.TheIndustrialSolutionssegment'sproductsareusedinthefollowingmarkets:

• Industrialequipment(44%ofsegment'snetsales).Ourproductsareusedinfactoryautomationandprocesscontrolsystemssuchasindustrialcontrols,robotics,humanmachineinterface,industrialcommunication,andpowerdistribution.Themedicalindustryusesourproductsinimaging,diagnostic,therapeutic,surgical,tubing,andminimallyinvasiveinterventionalapplications.Ourintelligentbuildingproductsareusedtoconnectlighting,HVAC,elevators/escalators,andsecurity.Ourrailproductsareusedinhigh-speedtrains,metros,lightrailvehicles,locomotives,andsignalingswitchingequipment.Also,ourproductsareusedbythesolarandlightingindustry.

• Aerospace,defense,oil,andgas(34%ofsegment'snetsales).Weprovidecomponentsandsolutionsforthecommercialaerospaceindustryfromtheinitialstagesofaircraftdesigntoaftermarketsupport.Ourdefenseproductsincluderuggedizedelectronicinterconnectsservingmilitaryaviation,marine,andgroundvehiclesincludingelectronicwarfareandspacesystems.Ouroilandgasproductsincludecablesandelectronicsusedforharshsubseaenvironmentsintheoffshoreoilandgasandcivilmarineindustriesandinshipboard,subsea,andsonarapplications.

• Energy(22%ofsegment'snetsales).OurproductsareusedbyOEMsandutilitycompaniesintheelectricalpowerindustryandincludeawiderangeofsolutionsfortheelectricalpowergeneration,transmission,distribution,andindustrialmarkets.

TheIndustrialSolutionssegmentcompetesprimarilyagainstAmphenol,Esterline,Molex,Belden,PhoenixContact,Hubbell,CarlisleCompanies,andIntegerHoldings.

Communications Solutions

TheCommunicationsSolutionssegmentisaleadingsupplierofelectroniccomponentsforthedataanddevicesandappliancesmarkets.Wearealsoaleaderindeveloping,manufacturing,installing,andmaintainingsomeoftheworld'smostadvancedsubseafiberopticcommunicationssystems.TheprimaryproductssoldbytheCommunicationsSolutionssegmentincludeterminalsandconnectorsystemsandcomponents;underseatelecommunicationsystems;relays;heatshrinktubing;andantennas.TheCommunicationsSolutionssegment'sproductsareusedinthefollowingmarkets:

• Dataanddevices(40%ofsegment'snetsales).Wedeliverproductsandsolutionsthatareusedinavarietyofequipmentarchitectureswithinthenetworkingequipment,datacenterequipment,andwirelessinfrastructureindustries.Additionally,wedeliverarangeofconnectivitysolutions

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fortheInternetofThings,smartphones,tabletcomputers,notebooks,andvirtualrealityapplicationstohelpourcustomersmeettheircurrentchallengesandfutureinnovations.

• Subseacommunications(35%ofsegment'snetsales).Ourproductsareusedinunderseafiberoptictelecommunicationsystems.Withverticallyintegratedunderseacommunicationssystemsandservices,wesupportthetelecommunicationsandoilandgasindustriesandothercustomersseekingmarineservices.

• Appliances(25%ofsegment'snetsales).Weprovidesolutionstomeetthedailydemandsofhomeappliances.Ourproductsareusedinmanyhouseholdappliances,includingwashers,dryers,refrigerators,airconditioners,dishwashers,cookingappliances,waterheaters,andmicrowaves.Ourexpansiverangeofstandardproductsissupplementedbyanarrayofcustom-designedsolutions.

TheCommunicationsSolutionssegment'smajorcompetitorsincludeAmphenol,Molex,FCIElectronics,JST,andKoreaElectricTerminal(KET).Also,thesubseacommunicationsbusinesscompetesagainstNokia(Alcatel-LucentSubmarineNetworks)andNEC.

Customers

Asanindustryleader,wehaveestablishedcloseworkingrelationshipswithmanyofourcustomers.Theserelationshipsallowustobetteranticipateandrespondtocustomerneedswhendesigningnewproductsandnewtechnicalsolutions.Byworkingwithourcustomersindevelopingnewproductsandtechnologies,webelieveweareabletoidentifyandactontrendsandleverageknowledgeaboutnext-generationtechnologyacrossourproducts.

Ourapproachtoourcustomersisdrivenbyourdedicationtofurtherdevelopourproductfamiliesandensurethatwearegloballypositionedtobestprovideourcustomerswithsalesandengineeringsupport.Webelievethataselectroniccomponenttechnologiescontinuetoproliferate,ourbroadproductportfolioandengineeringcapabilitygiveusapotentialcompetitiveadvantagewhenaddressingtheneedsofourglobalcustomers.

Wemanufactureandsellabroadportfolioofproductstocustomersinvariousindustries.Ourcustomersincludemanyoftheleadersintheirrespectiveindustries,andourrelationshipswiththemtypicallydatebackmanyyears.Webelievethatthisdiversifiedcustomerbaseprovidesusanopportunitytoleverageourskillsandexperienceacrossmarketsandreduceourexposuretoindividualendmarkets,therebyreducingthevariabilityofourfinancialperformance.Additionally,webelievethatthediversityofourcustomerbasereducesthelevelofcyclicalityinourresultsanddistinguishesusfromourcompetitors.

Thereisnosinglecustomerthataccountedforasignificantamountofournetsalesinfiscal2016,2015,or2014.

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SalesandDistribution

Wemaintainastronglocalpresenceineachofthegeographicregionsinwhichweoperate.Ournetsalesbygeographicregion(1)asapercentageofourtotalnetsaleswereasfollows:

SeeNote21totheConsolidatedFinancialStatementsforadditionalgeographicinformationrelatingtoourbusiness.

Wesellourproductsintoapproximately150countriesprimarilythroughdirectsellingeffortstomanufacturers.Wealsosellsomeofourproductsindirectlyviathird-partydistributors.Infiscal2016,ourdirectsalesrepresented80%oftotalnetsales.

Wemaintaindistributioncentersaroundtheworld.Ourglobalcoveragepositionsusnearourcustomers'locationsandallowsustoassisttheminconsolidatingtheirsupplybaseandloweringtheirproductioncosts.Webelieveourbalancedsalesdistributionlowersourexposuretoanyparticulargeographyandimprovesourfinancialprofile.

Productsaregenerallydeliveredtodistributioncentersbyourmanufacturingfacilitiesandthensubsequentlydeliveredtothecustomer.Insomeinstances,however,productisdelivereddirectlyfromourmanufacturingfacilitytothecustomer.Wecontractwithawiderangeoftransportproviderstodeliverourproductsviaroad,rail,sea,andair.

SeasonalityandBacklog

Weexperienceaslightseasonalpatterntoourbusiness.Overall,thethirdandfourthfiscalquartersaretypicallythestrongestquartersofourfiscalyear,whereasthefirstfiscalquarterisnegativelyaffectedbywinterholidaysandthesecondfiscalquartermaybeaffectedbyadversewinterweatherconditionsinsomeofourmarkets.

Certainofourendmarketsexperiencesomeseasonality.Oursalesintotheautomotivemarketaredependentuponglobalautomotiveproduction,andseasonaldeclinesinEuropeanproductionmaynegativelyimpactnetsalesinthefourthfiscalquarter.Also,oursalesintotheenergymarkettypicallyincreaseinthethirdandfourthfiscalquartersascustomeractivityincreases.

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Fiscal 2016 2015 2014

Americas(2) 34% 34% 30%Europe/MiddleEast/Africa("EMEA") 34 33 35Asia–Pacific 32 33 35Total 100% 100% 100%

(1) Netsalestoexternalcustomersareattributedtoindividualcountriesbasedonthelegalentitythatrecordsthesale.

(2) TheAmericasregionincludesoursubseacommunicationsbusiness.

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Customerorderstypicallyfluctuatefromquartertoquarterbaseduponbusinessconditionsandcancellationofunfilledorderspriortoshipmentofgoods.Backlogbyreportablesegmentwasasfollows:

Weexpectthatthemajorityofourbacklogatfiscalyearend2016willbefilledduringfiscal2017.

Competition

Theindustriesinwhichweoperatearehighlycompetitive,andwecompetewiththousandsofcompaniesthatrangefromlargemultinationalcorporationstolocalmanufacturers.Competitionisgenerallyonthebasisofbreadthofproductoffering,productinnovation,price,quality,delivery,andservice.Ourmarketshavegenerallybeengrowingbutwithdownwardpressureonprices.

RawMaterials

Weuseawidevarietyofrawmaterialsinthemanufactureofourproducts.Theprincipalrawmaterialsthatweuseincludeplasticresinsformolding;preciousmetalssuchasgoldandsilverforplating;andothermetalssuchascopper,aluminum,brass,andsteelformanufacturingcable,contacts,andotherpartsthatareusedforcableandcomponentbodiesandinserts.Manyoftheserawmaterialsareproducedinalimitednumberofcountriesaroundtheworldorareonlyavailablefromalimitednumberofsuppliers.Thepricesofthesematerialsaredrivenbyglobalsupplyanddemand.

ResearchandDevelopment

Weareengagedinbothinternalandexternalresearchanddevelopmentinanefforttointroducenewproductstoenhancetheeffectiveness,easeofuse,safety,andreliabilityofourexistingproducts,andtoexpandtheapplicationsforwhichtheusesofourproductsareappropriate.Wecontinuallyevaluatedevelopingtechnologiesinareaswherewemayhavetechnologicalormarketingexpertiseforpossibleinvestmentoracquisition.

Ourresearchanddevelopmentexpensewasasfollows:

Ourcapitalspendingandinvestmentinproductandprocessengineeringanddevelopmentenableustoconsistentlyprovideinnovative,high-qualityproductswithefficientmanufacturingmethods.Infiscal2016,wederivedapproximately20%ofournetsalesfromnewproducts,includingproductextensions,introducedwithinthepreviousthreefiscalyears.

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FiscalYearEnd 2016 2015 (inmillions) TransportationSolutions $ 1,343 $ 1,208IndustrialSolutions 875 814CommunicationsSolutions(1) 1,387 1,310Total $ 3,605 $ 3,332

(1) Includesoursubseacommunicationsbusiness'backlogof$1,047millionand$995millionatfiscalyearend2016and2015,respectively.

Fiscal 2016 2015 2014 (inmillions) TransportationSolutions $ 312 $ 262 $ 196IndustrialSolutions 136 128 128CommunicationsSolutions 118 150 160Total $ 566 $ 540 $ 484

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IntellectualProperty

Patentsandotherproprietaryrightsareimportanttoourbusiness.Wealsorelyupontradesecrets,manufacturingknow-how,continuingtechnologicalinnovations,andlicensingopportunitiestomaintainandimproveourcompetitiveposition.Wereviewthird-partyproprietaryrights,includingpatentsandpatentapplications,asavailable,inanefforttodevelopaneffectiveintellectualpropertystrategy,avoidinfringementofthird-partyproprietaryrights,identifylicensingopportunities,andmonitortheintellectualpropertyclaimsofothers.

Weownalargeportfolioofpatentsthatrelateprincipallytoelectrical,optical,andelectronicproducts.Wealsoownaportfoliooftrademarksandarealicenseeofvariouspatentsandtrademarks.Patentsforindividualproductsextendforvaryingperiodsaccordingtothedateofpatentfilingorgrantandthelegaltermofpatentsinthevariouscountrieswherepatentprotectionisobtained.Trademarkrightsmaypotentiallyextendforlongerperiodsoftimeandaredependentuponnationallawsanduseofthetrademarks.

Whileweconsiderourpatentsandtrademarkstobevaluedassets,wedonotbelievethatourcompetitivepositionorouroperationsaredependentuponorwouldbemateriallyimpactedbyanysinglepatentorgroupofrelatedpatents.

TEConnectivityandTEConnectivity(logo)aretrademarks.©2016TEConnectivityLtd.AllRightsReserved.

ManagementTeamandEmployees

Webelieveourmanagementteamhastheexperiencenecessarytoeffectivelyexecuteourstrategyandadvanceourproductandtechnologyleadership.Ourchiefexecutiveofficer,president,andsegmentleadersaverageover25yearsofindustryexperience.Theyaresupportedbyanexperiencedandtalentedmanagementteamwhoisdedicatedtomaintainingandexpandingourpositionasagloballeaderintheindustry.

Ourstrongemployeebase,alongwiththeircommitmenttouncompromisingvalues,providesthefoundationofourcompany'ssuccess.Wecontinuetoemphasizeemployeedevelopmentandtraining,andweembracediversityandinclusion.

Wehaveemployeeslocatedthroughouttheworld.Asoffiscalyearend2016,weemployedapproximately75,000peopleworldwide,ofwhom23,000wereintheAmericasregion,28,000wereintheEMEAregion,and24,000wereintheAsia–Pacificregion.Ofourtotalemployees,approximately46,000wereemployedinmanufacturing.

GovernmentRegulationandSupervision

TheimportandexportofproductsaresubjecttoregulationbytheUnitedStates("U.S.")andothercountries.Asmallportionofourproducts,includingdefense-relatedproducts,mayrequiregovernmentalimportandexportlicenses,whoseissuancemaybeinfluencedbygeopoliticalandotherevents.Wehaveatradecomplianceorganizationandothersystemsinplacetoapplyforlicensesandotherwisecomplywithsuchregulations.Anyfailuretomaintaincompliancewithdomesticandforeigntraderegulationcouldlimitourabilitytoimportandexportrawmaterialsandfinishedgoodsintoorfromtherelevantjurisdiction.

Environmental

Ouroperationsaresubjecttonumerousenvironmental,health,andsafetylawsandregulations,includingthoseregulatingthedischargeofmaterialsintotheenvironment,greenhousegasemissions,hazardousmaterialsinproducts,andchemicalusage.Wearecommittedtocomplyingwiththeselaws

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andtotheprotectionofouremployeesandtheenvironment.Wemaintainaglobalenvironmental,health,andsafetyprogramthatincludesappropriatepoliciesandstandards;staffdedicatedtoenvironmental,health,andsafetyissues;periodiccomplianceauditing;training;andothermeasures.WealsohaveaprogramforcompliancewiththeEuropeanUnion("EU")RestrictionofHazardousSubstancesandWasteElectricalandElectronicEquipmentDirectives,theChinaRestrictionofHazardousSubstanceslaw,theEURegistration,Evaluation,Authorization,andRestrictionofChemicals("REACH")Regulation,andsimilarlaws.

Compliancewiththeselawshasincreasedourcostsofdoingbusinessinavarietyofwaysandmaycontinuetodosointhefuture.Forexample,lawsregardingproductcontentandchemicalregistrationrequireextensiveandcostlydatacollection,management,andreporting,andlawsregulatinggreenhousegasemissionsarelikelytoincreaseourcostsforenergyandcertainmaterialsandproducts.Wealsohaveprojectsunderwayatanumberofcurrentandformermanufacturingfacilitiestoinvestigateandremediateenvironmentalcontaminationresultingfrompastoperations.Baseduponourexperience,currentinformation,andapplicablelaws,webelievethatitisprobablethatwewillincurremedialcostsintherangeof$17millionto$42million,andthatthebestestimatewithinthisrangeis$20million.Wedonotanticipateanymaterialcapitalexpendituresduringfiscal2017forenvironmentalcontrolfacilitiesorothercostsofcompliancewithlawsorregulationsrelatingtogreenhousegasemissions.

AvailableInformation

Allperiodicandcurrentreports,registrationfilings,andotherfilingsthatwearerequiredtofilewiththeU.S.SecuritiesandExchangeCommission("SEC"),includingAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-K,andamendmentstothosereportsfiledorfurnishedpursuanttoSection13(a)or15(d)oftheSecuritiesExchangeActof1934("ExchangeAct")areavailablefreeofchargethroughourinternetwebsiteatwww.te.com.SuchdocumentsareavailableassoonasreasonablypracticableafterelectronicfilingorfurnishingofthematerialwiththeSEC.TheinformationonourwebsiteisnotincorporatedbyreferenceinthisAnnualReportonForm10-K.

ITEM1A.RISKFACTORS

Youshouldcarefullyconsidertherisksdescribedbelowbeforeinvestinginoursecurities.Therisksdescribedbelowarenottheonlyonesfacingus.Ourbusinessalsoissubjecttogeneralrisksthataffectmanyothercompanies.Additionalrisksnotcurrentlyknowntousorthatwecurrentlybelieveareimmaterialmayalsoimpairourbusinessoperations,financialcondition,andliquidity.

RisksRelatingtotheMacroeconomicEnvironmentandOurGlobalPresence

Conditions in global or regional economies, capital and money markets, and banking systems, and cyclical industry demand may adversely affect ourresults of operations, financial position, and cash flows.

Ourbusinessandoperatingresultshavebeenandwillcontinuetobeaffectedbyeconomicconditionsregionallyorglobally,includingthecostandavailabilityofconsumerandbusinesscredit,enddemandfromconsumerandindustrialmarkets,andconcernsastosovereigndebtlevelsincludingcreditratingdowngradesanddefaultsonsovereigndebtandsignificantbankfailuresordefaults,anyofwhichcouldcauseourcustomerstoexperiencedeteriorationoftheirbusinesses,cashflow,andabilitytoobtainfinancing.Asaresult,existingorpotentialcustomersmaydelayorcancelplanstopurchaseourproductsandmaynotbeabletofulfilltheirobligationstousinatimelyfashionorinfull.Further,ourvendorsmayexperiencesimilarproblems,whichmayimpacttheirabilitytofulfillourordersormeetagreedserviceandqualitylevels.Ifregionalorglobaleconomicconditionsdeteriorate,ourresultsofoperations,financialposition,andcashflowscouldbemateriallyadverselyaffected.Also,

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deteriorationineconomicconditionscouldtriggertherecognitionofimpairmentchargesforourgoodwillorotherlong-livedassets.Impairmentcharges,ifany,maybematerialtoourresultsofoperationsandfinancialposition.

Foreign currency exchange rates may adversely affect our results.

AsignificantportionofourbusinessisconductedoutsidetheU.S.,andchangesintherelativevaluesofcurrenciesmayhaveasignificanteffectonourresultsofoperations,financialposition,andcashflows.

Weareexposedtotheeffectsofchangesinforeigncurrencyexchangeratesonourcostsandrevenue.Approximately54%ofournetsalesforfiscal2016wereinvoicedincurrenciesotherthantheU.S.dollar,andweexpectnon-U.S.dollarrevenuetorepresentasignificantandlikelyincreasedportionofourfuturenetrevenue.Wehaveelectednottohedgethisforeigncurrencyexposure.Therefore,whentheU.S.dollarstrengthensinrelationtothecurrenciesofthecountrieswherewesellourproducts,suchastheeuroorAsiancurrencies,ourU.S.dollarreportedrevenueandincomewilldecrease.

Wemanagecertaincash,intercompany,andotherbalancesheetcurrencyexposuresinpartbyenteringintofinancialderivativecontracts.Inadditiontotheriskofnon-performancebythecounterpartytothesecontracts,oureffortstomanagetheserisksmightnotbesuccessful.

We could suffer significant business interruptions.

Ouroperationsandthoseofoursuppliersandcustomers,andthesupplychainsthatsupporttheiroperations,maybevulnerabletointerruptionbynaturaldisasterssuchasearthquakes,tsunamis,typhoons,orfloods;orotherdisasterssuchasfires,explosions,actsofterrorismorwar,disease,orfailuresofmanagementinformationorothersystemsduetointernalorexternalcauses.Ifabusinessinterruptionoccursandweareunsuccessfulinourcontinuingeffortstominimizetheimpactoftheseevents,ourbusiness,resultsofoperations,financialposition,andcashflowscouldbemateriallyadverselyaffected.

We could be adversely affected by a decline in the market value of our pension plans' investment portfolios or a reduction in returns on plan assets.

Concernsaboutdeteriorationintheglobaleconomy,togetherwithconcernsaboutcredit,inflation,ordeflation,havecausedandcouldcontinuetocausesignificantvolatilityinthepriceofallsecurities,includingfixedincomeandequitysecurities,whichhasreducedandcouldfurtherreducethevalueofourpensionplans'investmentportfolios.Inaddition,theexpectedreturnsonplanassetsmaynotbeachieved.Adecreaseinthevalueofourpensionplans'investmentportfoliosorareductioninreturnsonplanassetscouldhaveanadverseeffectonourresultsofoperations,financialposition,andcashflows.

Disruption in credit markets and volatility in equity markets may affect our ability to access sufficient funding.

Theglobalequitymarketshavebeenvolatileandattimescreditmarketshavebeendisrupted,whichhasreducedtheavailabilityofinvestmentcapitalandcredit.Recentdowngradesofsovereigndebtcreditratingshavesimilarlyaffectedtheavailabilityandcostofcapital.Asaresult,wemaybeunabletoaccessadequatefundingtooperateandgrowourbusiness.Ourinabilitytoaccessadequatefundingortogeneratesufficientcashfromoperationsmayrequireustoreconsidercertainprojectsandcapitalexpenditures.Theextentofanyimpactwilldependonseveralfactors,includingouroperatingcashflows,thedurationoftightcreditconditionsandvolatileequitymarkets,ourcreditratingsandcreditcapacity,thecostoffinancing,andothergeneraleconomicandbusinessconditions.

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We are subject to global risks of political, economic, and military instability.

Ourworkforce;manufacturing,research,administrative,andsalesfacilities;markets;customers;andsuppliersarelocatedthroughouttheworld.Asaresult,weareexposedtorisksthatcouldnegativelyaffectsalesorprofitability,including:

• tariffs,tradebarriers,andtradedisputes;

• regulationsrelatedtocustomsandimport/exportmatters;

• variationsinlengthsofpaymentcyclesandchallengesincollectingaccountsreceivable;

• taxlawandregulatorychangesintheU.S.andEUamongotherjurisdictions,includingtaxlawandregulatorychangesthatmaybeeffectedasaresultoftaxpolicyrecommendationsfromquasi-governmentalorganizations,suchastheOrganisationforEconomicCo-operationandDevelopment("OECD"),examinationsbytaxingauthorities,variationsintaxlawsfromcountrytocountry,changestothetermsofincometaxtreaties,anddifficultiesinthetax-efficientrepatriationofcashgeneratedorheldinanumberofjurisdictions;

• employmentregulationsandlocallaborconditions,includingincreasesinemploymentcosts,particularlyinlow-costregionsinwhichwecurrentlyoperate;

• difficultiesprotectingintellectualproperty;

• instabilityineconomicorpoliticalconditions,includingsovereigndebtlevels,Eurozoneuncertainty,inflation,recession,actualoranticipatedmilitaryorpoliticalconflicts,andanyimpactasaresultoftheproposedexitoftheUnitedKingdomfromtheEU;and

• theimpactofeachoftheforegoingonouroutsourcingandprocurementarrangements.

WehavesizeableoperationsinChina,including15manufacturingsites.Inaddition,approximately17%ofournetsalesinfiscal2016weremadetocustomersinChina.EconomicconditionsinChinahavebeenandmaycontinuetobevolatileanduncertain.Inaddition,thelegalsysteminChinaisstilldevelopingandsubjecttochange.Accordingly,ouroperationsandordersforproductsinChinacouldbeadverselyaffectedbychangestomarketconditionsorinterpretationofChineselaw.

Inaddition,anydowngradebyratingagenciesoflong-termU.S.sovereigndebtordowngradesordefaultsofsovereigndebtofothernationsmaynegativelyaffectglobalfinancialmarketsandeconomicconditions,whichcouldnegativelyaffectourbusiness,financialcondition,andliquidity.

RisksRelatingtotheIndustryinWhichWeOperate

We are dependent on the automotive and other industries.

Wearedependentonendmarketdynamicstosellourproducts,andouroperatingresultscanbeadverselyaffectedbycyclicalandreduceddemandinthesemarkets.Periodicdownturnsinourcustomers'industriescansignificantlyreducedemandforcertainofourproducts,whichcouldhaveamaterialadverseeffectonourresultsofoperations,financialposition,andcashflows.

Approximately40%ofournetsalesforfiscal2016weretocustomersintheautomotiveindustry.Theautomotiveindustryisdominatedbylargemanufacturersthatcanexertsignificantpricepressureontheirsuppliers.Additionally,theautomotiveindustryhashistoricallyexperiencedsignificantdownturnsduringperiodsofdeterioratingglobalorregionaleconomicorcreditconditions.Asasupplierofautomotiveelectronicsproducts,oursalesoftheseproductsandourprofitabilityhavebeenandcouldcontinuetobenegativelyaffectedbysignificantdeclinesinglobalorregionaleconomicandcreditconditionsandchangesintheoperations,products,businessmodels,part-sourcingrequirements,financialcondition,andmarketshareofautomotivemanufacturers,aswellaspotentialconsolidationsamongautomotivemanufacturers.

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Duringfiscal2016,approximately12%ofournetsalesweretocustomersintheindustrialequipmentendmarket,9%ofournetsalesweretocustomersintheaerospace,defense,oil,andgasendmarket,and8%ofournetsalesweretocustomersinthedataanddevicesendmarket.Demandforindustrialequipmentisdependentuponeconomicconditions,includingcustomerinvestmentinintelligentbuildings,factoryautomation,andprocesscontrolsystems,aswellasmarketconditionsinthemedical,railtransportation,solarandlighting,andothermajorindustrialmarketsweserve.Theaerospaceanddefenseindustryhasundergonesignificantfluctuationsindemand,dependingonworldwideeconomicandpoliticalconditions.Demandintheoilandgasmarketisimpactedbyoilpricevolatility.Thedataanddevicesindustrycanexperiencevariabilityindemanddependingontheunderlyingbusinessandconsumerdemandforcomputerandconsumerelectronicsproducts.

We encounter competition in substantially all areas of the electronic components industry.

Weoperateinhighlycompetitivemarketsforelectroniccomponents,andexpectthatbothdirectandindirectcompetitionwillincreaseinthefuture.Ouroverallcompetitivepositiondependsonanumberoffactorsincludingtheprice,quality,andperformanceofourproducts;thelevelofcustomerservice;thedevelopmentofnewtechnology;ourabilitytoparticipateinemergingmarkets;andcustomers'expectationsrelatingtosociallyresponsibleoperations.Thecompetitionweexperienceacrossproductlinesfromothercompaniesrangesinsizefromlarge,diversifiedmanufacturerstosmall,highlyspecializedmanufacturers.Theelectroniccomponentsindustryhasbecomeincreasinglyconcentratedandglobalizedinrecentyears,andourmajorcompetitorshavesignificantfinancialresourcesandtechnologicalcapabilities.Anumberofthesecompetitorscompetewithusprimarilyonprice,andinsomeinstancesmayenjoylowerproductioncostsforcertainproducts.Wecannotprovideassurancethatadditionalcompetitorswillnotenterourmarkets,orthatwewillbeabletocompetesuccessfullyagainstexistingornewcompetitors.Increasedcompetitionmayresultinpricereductions,reducedmargins,orlossofmarketshare,anyofwhichcouldmateriallyandadverselyaffectourresultsofoperations,financialposition,andcashflows.

We are dependent on market acceptance of our new product introductions and product innovations for future revenue.

Substantiallyallofthemarketsinwhichweoperateareimpactedbytechnologicalchangeorchangeinconsumertastesandpreferences,whicharerapidincertainendmarkets.Ouroperatingresultsdependsubstantiallyuponourabilitytocontinuallydesign,develop,introduce,andsellnewandinnovativeproducts;tomodifyexistingproducts;andtocustomizeproductstomeetcustomerrequirementsdrivenbysuchchange.Therearenumerousrisksinherentintheseprocesses,includingtheriskthatwewillbeunabletoanticipatethedirectionoftechnologicalchangeorthatwewillbeunabletodevelopandmarketprofitablenewproductsandapplicationsintimetosatisfycustomerdemands.

Like other suppliers to the electronics industry, we are subject to continuing pressure to lower our prices.

Wehavehistoricallyexperienced,andweexpecttocontinuetoexperience,continuingpressuretolowerourprices.Inrecentyears,wehaveexperiencedpriceerosionaveragingfrom1%to2%eachyear.Inordertomaintainourmargins,wemustcontinuetoreduceourcostsbysimilaramounts.Wecannotprovideassurancethatcontinuingpressurestoreduceourpriceswillnothaveamaterialadverseeffectonourmargins,resultsofoperations,financialposition,andcashflows.

We may be negatively affected as our customers and vendors continue to consolidate.

Manyoftheindustriestowhichwesellourproducts,aswellasmanyoftheindustriesfromwhichwebuymaterials,havebecomemoreconcentratedinrecentyears,includingtheautomotive,dataanddevices,andaerospaceanddefenseindustries.Consolidationofcustomersmayleadtodecreased

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productpurchasesfromus.Inaddition,asourcustomersbuyinlargervolumes,theirvolumebuyingpowerhasincreased,enablingthemtonegotiatemorefavorablepricingandfindalternativesourcesfromwhichtopurchase.Ourmaterialssupplierssimilarlyhaveincreasedtheirabilitytonegotiatefavorablepricing.Thesetrendsmayadverselyaffectthemarginsonourproducts,particularlyforcommoditycomponents.

The life cycles of certain of our products can be very short.

Thelifecyclesofcertainofourproductscanbeveryshortrelativetotheirdevelopmentcycle.Asaresult,theresourcesdevotedtoproductsalesandmarketingmaynotresultinmaterialrevenueand,fromtimetotime,wemayneedtowriteoffexcessorobsoleteinventoryorequipment.Ifweweretoincursignificantengineeringexpensesandinvestmentsininventoryandequipmentthatwewerenotabletorecover,andwewerenotabletocompensateforthoseexpenses,ourresultsofoperations,financialposition,andcashflowscouldbemateriallyandadverselyaffected.

RisksRelatingtoOurOperations

Our results are sensitive to raw material availability, quality, and cost.

Wearealargebuyerofresin,copper,gold,silver,brass,steel,chemicalsandadditives,zinc,andotherpreciousmetals.Manyoftheserawmaterialsareproducedinalimitednumberofcountriesaroundtheworldorareonlyavailablefromalimitednumberofsuppliers.Inaddition,thepriceofmanyoftheserawmaterials,includinggoldandcopper,continuestofluctuate.Ifwehavedifficultyobtainingtheserawmaterials,thequalityofavailablerawmaterialsdeteriorates,ortherearesignificantpriceincreasesfortheserawmaterials,itcouldhaveasubstantialimpactonthepricewepayforrawmaterials.Totheextentwecannotcompensateforcostincreasesthroughproductivityimprovementsorpriceincreasestoourcustomers,ourmarginsmaydecline,materiallyaffectingourresultsofoperations,financialposition,andcashflows.Inaddition,weusefinancialinstrumentstohedgethevolatilityofcertaincommoditiesprices.Thesuccessofourhedgingprogramdependsonaccurateforecastsofplannedconsumptionofthehedgedcommoditymaterials.Wecouldexperienceunanticipatedhedgegainsorlossesiftheseforecastsareinaccurate.

InaccordancewiththeDodd-FrankWallStreetReformandConsumerProtectionAct,theSECestablishedannualdisclosureandreportingrequirementsforthosecompanieswhousetin,tantalum,tungsten,orgold("conflictminerals"or"3TG")minedfromtheDemocraticRepublicofCongo("DRC")andadjoiningcountries(togetherwiththeDRC,the"CoveredCountries")intheirproducts.Theserequirementscouldaffectthesourcing,pricing,andavailabilityof3TGusedinthemanufactureofcertainofourproducts.Asaresult,theremayonlybealimitedpoolofsupplierswhocandemonstratethattheydonotsourceany3TGfromtheCoveredCountries,andwecannotprovideassurancethatwewillbeabletoobtainnon-conflict3TGinsufficientquantitiesoratcompetitiveprices.Further,sinceoursupplychainiscomplex,wemayfacereputationalchallengeswithourcustomersandotherstakeholdersifweareunabletosufficientlyverifytheoriginsandchainofcustodyforallconflictmineralsusedinourproductsthroughourduediligenceprocedures.

We may use components and products manufactured by third parties.

Wemayrelyonthird-partysuppliersforthecomponentsusedinourproducts,andwemayrelyonthird-partymanufacturerstomanufacturecertainofourassembliesandfinishedproducts.Ourresultsofoperations,financialposition,andcashflowscouldbeadverselyaffectedifsuchthirdpartieslacksufficientqualitycontroloriftherearesignificantchangesintheirfinancialorbusinesscondition.Ifthesethirdpartiesfailtodeliverqualityproducts,parts,andcomponentsontimeandatreasonableprices,wecouldhavedifficultiesfulfillingourorders,salesandprofitscoulddecline,andourcommercialreputationcouldbedamaged.

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Our future success is significantly dependent on our ability to attract and retain executive management employees and limitations affecting retention andhiring, including Swiss regulations, could have a negative impact on our business and increase our expenses.

Oursuccessdependstoasignificantextentuponourcontinuedabilitytoretainourexecutivemanagementemployeesandhirenewexecutivemanagementemployeestoreplace,succeed,oraddtomembersofourexecutivemanagementteam.Ourexecutivemanagementteamhassignificantindustryexperienceandwouldbedifficulttoreplace.Competitionforexecutivetalentisintense,andwecompeteforthesepersonnelwithothercompaniesthatareregulatedbythelawsofjurisdictionsthatprovidesignificantlygreaterflexibilitythanSwitzerland,ourjurisdictionofincorporation,incompensationpracticesforexecutivemanagementemployees.

Security breaches and other disruptions to our information technology infrastructure could interfere with our operations, compromise confidentialinformation, and expose us to liability which could materially adversely impact our business and reputation.

Securitybreachesandotherdisruptionstoourinformationtechnologyinfrastructurecouldinterferewithouroperations;compromiseinformationbelongingtous,ouremployees,customers,andsuppliers;andexposeustoliabilitywhichcouldadverselyimpactourbusinessandreputation.Inthenormalcourseofbusiness,werelyoninformationtechnologynetworksandsystems,someofwhicharemanagedbythirdparties,toprocess,transmit,andstoreelectronicinformation,andtomanageorsupportavarietyofbusinessprocessesandactivities.Additionally,wecollectandstorecertaindata,includingproprietarybusinessinformationandcustomerandemployeedata,andmayhaveaccesstoconfidentialorpersonalinformationincertainofourbusinessesthatissubjecttoprivacyandsecuritylaws,regulations,andcustomer-imposedcontrols.Despiteourcybersecuritymeasures(includingemployeeandthird-partytraining,monitoringofnetworksandsystems,andmaintenanceofbackupandprotectivesystems)whicharecontinuouslyreviewedandupgraded,ourinformationtechnologynetworksandinfrastructuremaystillbevulnerabletodamage,disruptions,orshutdownsduetoattackbyhackersorbreaches,employeeerrorormalfeasance,poweroutages,computerviruses,telecommunicationorutilityfailures,systemsfailures,naturaldisasters,orothercatastrophicevents.Anysucheventscouldresultinlegalclaimsorproceedings,liabilityorpenaltiesunderprivacylaws,disruptioninoperations,anddamagetoourreputation,whichcouldmateriallyadverselyaffectourbusiness.Whilewehaveexperienced,andexpecttocontinuetoexperience,thesetypesofthreatstoourinformationtechnologynetworksandinfrastructure,todatenoneofthesethreatshashadamaterialimpactonourbusinessoroperations.

Covenants in our debt instruments may adversely affect us.

Ourfive-yearunsecuredseniorrevolvingcreditfacility("CreditFacility")containsfinancialandothercovenants,suchasalimitontheratioofConsolidatedTotalDebttoConsolidatedEBITDA(asdefinedintheCreditFacility)andlimitsontheamountofsubsidiarydebtandincurrenceofliens.Ouroutstandingnotes'indenturescontaincustomarycovenantsincludinglimitsonincurrenceofliens,saleandlease-backtransactions,andourabilitytoconsolidate,merge,andsellassets.

Althoughnoneofthesecovenantsarepresentlyrestrictivetoouroperations,ourcontinuedabilitytomeettheCreditFacilityfinancialcovenantcanbeaffectedbyeventsbeyondourcontrol,andwecannotprovideassurancethatwewillcontinuetocomplywiththecovenant.AbreachofanyofourcovenantscouldresultinadefaultunderourCreditFacilityorindentures.UpontheoccurrenceofcertaindefaultsunderourCreditFacilityandindentures,thelendersortrusteecouldelecttodeclareallamountsoutstandingthereundertobeimmediatelydueandpayable,andourlenderscouldterminatecommitmentstoextendfurthercreditunderourCreditFacility.Ifthelendersortrusteeacceleratetherepaymentofborrowings,wecannotprovideassurancethatwewillhavesufficientassetsoraccesstolendersorcapitalmarketstorepayorfundtherepaymentofanyamountsoutstanding

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underourCreditFacilityandourotheraffectedindebtedness.Accelerationofanydebtobligationunderanyofourmaterialdebtinstrumentsmaypermittheholdersortrusteeofourothermaterialdebttoacceleratepaymentofdebtobligationstothecreditorsthereunder.

Theindenturesgoverningouroutstandingseniornotescontaincovenantsthatmayrequireustooffertobuybackthenotesforapriceequalto101%oftheprincipalamount,plusaccruedandunpaidinterest,totherepurchasedate,uponachangeofcontroltriggeringevent(asdefinedintheindentures).Wecannotprovideassurancethatwewillhavesufficientfundsavailableoraccesstofundingtorepurchasetenderednotesinthatevent,whichcouldresultinadefaultunderthenotes.Anyfuturedebtthatweincurmaycontaincovenantsregardingrepurchasesintheeventofachangeofcontroltriggeringevent.

The market price of our shares may fluctuate widely.

Themarketpriceofoursharesmayfluctuatewidely,dependinguponmanyfactors,including:

• ourquarterlyorannualearnings;

• changesinquarterlyorannualsalesorearningsguidancethatwemayprovide;

• actualoranticipatedfluctuationsinouroperatingresults;

• volatilityinfinancialmarketsandmarketfluctuationscausedbyglobalandregionaleconomicconditionsandinvestors'concernsaboutpotentialriskstofutureeconomicgrowth;

• changesinearningsestimatesbysecuritiesanalystsorourabilitytomeetthoseestimates;

• changesinaccountingstandards,policies,guidance,interpretations,orprinciples;

• announcementsbyusorourcompetitorsofsignificantacquisitionsordispositions;and

• theoperatingandstockpriceperformanceofcomparablecompaniesandcompaniesthatserveendmarketsimportanttoourbusiness.

RisksRelatingtoStrategicTransactions

Future acquisitions may not be successful.

Weregularlyevaluatethepossibleacquisitionofstrategicbusinesses,productlines,ortechnologieswhichhavethepotentialtostrengthenourmarketpositionorenhanceourexistingproductofferings.Wecannotprovideassurancethatwewillidentifyorsuccessfullycompletetransactionswithacquisitioncandidatesinthefuture.Wealsocannotprovideassurancethatcompletedacquisitionswillbesuccessful.Ifanacquiredbusinessfailstooperateasanticipatedorcannotbesuccessfullyintegratedwithourexistingbusiness,ourresultsofoperations,financialposition,andcashflowscouldbemateriallyandadverselyaffected.

Future acquisitions could require us to issue additional debt or equity.

Ifweweretomakeasubstantialacquisitionwithcash,theacquisitionmayneedtobefinancedinpartthroughfundingfrombanks,publicofferingsorprivateplacementsofdebtorequitysecurities,orotherarrangements.Thisacquisitionfinancingmightdecreaseourratioofearningstofixedchargesandadverselyaffectotherleveragemeasures.Wecannotprovideassurancethatsufficientacquisitionfinancingwouldbeavailabletousonacceptabletermsifandwhenrequired.Ifweweretomakeanacquisitionpartiallyorwhollyfundedbyissuingequitysecuritiesorequity-linkedsecurities,theissuedsecuritiesmayhaveadilutiveeffectontheinterestsoftheholdersofourshares.

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Divestitures of some of our businesses or product lines may have a material adverse effect on our results of operations, financial position, and cash flows.

Wecontinuetoevaluatethestrategicfitofspecificbusinessesandproductswhichmayresultinadditionaldivestitures.Anydivestituresmayresultinsignificantwrite-offs,includingthoserelatedtogoodwillandotherintangibleassets,whichcouldhaveamaterialadverseeffectonourresultsofoperationsandfinancialposition.Divestiturescouldinvolveadditionalrisks,includingdifficultiesintheseparationofoperations,services,products,andpersonnel;thediversionofmanagement'sattentionfromotherbusinessconcerns;thedisruptionofourbusiness;andthepotentiallossofkeyemployees.Therecanbenoassurancethatwewillbesuccessfulinaddressingtheseoranyothersignificantrisksencountered.

RisksRelatingtoIntellectualProperty,Litigation,andRegulations

Our ability to compete effectively depends, in part, on our ability to maintain the proprietary nature of our products and technology.

Theelectronicsindustryischaracterizedbylitigationregardingpatentandotherintellectualpropertyrights.Withinthisindustry,companieshavebecomemoreaggressiveinassertinganddefendingpatentclaimsagainstcompetitors.Therecanbenoassurancethatwewillnotbesubjecttofuturelitigationalleginginfringementorinvalidityofcertainofourintellectualpropertyrightsorthatwewillnothavetopursuelitigationtoprotectourpropertyrights.Dependingontheimportanceofthetechnology,product,patent,trademark,ortradesecretinquestion,anunfavorableoutcomeregardingoneofthesemattersmayhaveamaterialadverseeffectonourresultsofoperations,financialposition,andcashflows.

We are a defendant to a variety of litigation in the course of our business that could cause a material adverse effect on our results of operations, financialposition, and cash flows.

Inthenormalcourseofbusiness,weare,fromtimetotime,adefendantinlitigation,includinglitigationallegingtheinfringementofintellectualpropertyrights,anti-competitivebehavior,productliability,breachofcontract,andemployment-relatedclaims.Incertaincircumstances,patentinfringementandantitrustlawspermitsuccessfulplaintiffstorecovertrebledamages.Thedefenseoftheselawsuitsmaydivertourmanagement'sattention,andwemayincursignificantexpensesindefendingtheselawsuits.Inaddition,wemayberequiredtopaydamageawardsorsettlements,orbecomesubjecttoinjunctionsorotherequitableremedies,thatcouldcauseamaterialadverseeffectonourresultsofoperations,financialposition,andcashflows.

If any of our operations are found not to comply with applicable antitrust or competition laws or applicable trade regulations, our business may suffer.

Ouroperationsaresubjecttoapplicableantitrustandcompetitionlawsinthejurisdictionsinwhichweconductourbusiness,inparticulartheU.S.andtheEU.Theselawsprohibit,amongotherthings,anticompetitiveagreementsandpractices.Ifanyofourcommercialagreementsandpracticeswithrespecttotheelectroniccomponentsorothermarketsarefoundtoviolateorinfringesuchlaws,wemaybesubjecttocivilandotherpenalties.Wemayalsobesubjecttothird-partyclaimsfordamages.Further,agreementsthatinfringetheseantitrustandcompetitionlawsmaybevoidandunenforceable,inwholeorinpart,orrequiremodificationinordertobelawfulandenforceable.Ifweareunabletoenforceourcommercialagreements,whetheratallorinmaterialpart,ourresultsofoperations,financialposition,andcashflowscouldbeadverselyaffected.Further,anyfailuretomaintaincompliancewithtraderegulationscouldlimitourabilitytoimportandexportrawmaterialsandfinishedgoodsintoorfromtherelevantjurisdiction,whichcouldnegativelyimpactourresultsofoperations,financialposition,andcashflows.

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We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, the United Kingdom's Bribery Act, and similar worldwide anti-bribery laws.

TheU.S.ForeignCorruptPracticesAct,theUnitedKingdom'sBriberyAct,andsimilarworldwideanti-briberylawsgenerallyprohibitcompaniesandtheirintermediariesfrommakingimproperpaymentstogovernmentofficialsforthepurposeofobtainingorretainingbusiness.Ourpoliciesmandatecompliancewiththeseanti-briberylaws.Weoperateinmanypartsoftheworldthathaveexperiencedgovernmentalcorruptiontosomedegree,andincertaincircumstances,strictcompliancewithanti-briberylawsmayconflictwithlocalcustomsandpractices.Despiteourtrainingandcomplianceprogram,wecannotprovideassurancethatourinternalcontrolpoliciesandproceduresalwayswillprotectusfromrecklessorcriminalactscommittedbyouremployeesoragents.Violationsoftheselaws,orallegationsofsuchviolations,coulddisruptourbusinessandresultinamaterialadverseeffectonourresultsofoperations,financialposition,andcashflows.

Our operations expose us to the risk of material environmental liabilities, litigation, government enforcement actions, and reputational risk.

Wearesubjecttonumerousfederal,state,andlocalenvironmentalprotectionandhealthandsafetylawsandregulationsinthevariouscountrieswhereweoperateandwhereourproductsaresold.Theselawsandregulationsgovern,amongotherthings:

• thegeneration,storage,use,andtransportationofhazardousmaterials;

• emissionsordischargesofsubstancesintotheenvironment;

• investigationandremediationofhazardoussubstancesormaterialsatvarioussites;

• greenhousegasemissions;

• producthazardousmaterialcontent;and

• thehealthandsafetyofouremployees.

Wemaynothavebeen,orwemaynotatalltimesbe,incompliancewithallenvironmentalandhealthandsafetylawsandregulations.Ifweviolatetheselaws,wecouldbefined,criminallycharged,orotherwisesanctionedbyregulators.Inaddition,environmentalandhealthandsafetylawsarebecomingmorestringent,resultinginincreasedcostsandcomplianceburdens.

Certainenvironmentallawsassessliabilityoncurrentorpreviousownersoroperatorsofrealpropertyforthecostsofinvestigation,removal,andremediationofhazardoussubstancesormaterialsattheirpropertiesoratpropertiesatwhichtheyhavedisposedofhazardoussubstances.Liabilityforinvestigation,removal,andremediationcostsundercertainfederalandstatelawsisretroactive,strict,andjointandseveral.Inadditiontocleanupactionsbroughtbygovernmentalauthorities,privatepartiescouldbringpersonalinjuryorotherclaimsduetothepresenceof,orexposureto,hazardoussubstances.WehavereceivednotificationfromtheU.S.EnvironmentalProtectionAgencyandotherenvironmentalagenciesthatconditionsatanumberofcurrentlyandformerly-ownedoroperatedsiteswhereweandothershavedisposedofhazardoussubstancesrequireinvestigation,cleanup,andotherpossibleremedialactionandrequirethatwereimbursethegovernmentorotherwisepayforthecostsofinvestigationandremediationandfornaturalresourcedamageclaimsfromsuchsites.Wealsohaveindependentlyinvestigatedvarioussitesanddeterminedthatfurtherinvestigationand/orremediationisnecessary.

Whileweplanforfuturecapitalandoperatingexpenditurestomaintaincompliancewithenvironmentallaws,wecannotprovideassurancethatourcostsofcomplyingwithcurrentorfutureenvironmentalprotectionandhealthandsafetylaws,orourliabilitiesarisingfrompastorfuturereleasesof,orexposuresto,hazardoussubstanceswillnotexceedourestimatesoradverselyaffectour

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resultsofoperations,financialposition,andcashflowsorthatwewillnotbesubjecttoadditionalenvironmentalclaimsforpersonalinjury,propertydamage,and/orcleanupinthefuturebasedonourpast,present,orfuturebusinessactivities.

Our products are subject to various requirements related to chemical usage, hazardous material content, and recycling.

TheEU,China,andotherjurisdictionsinwhichourproductsaresoldhaveenactedorareproposingtoenactlawsaddressingenvironmentalandotherimpactsfromproductdisposal,useofhazardousmaterialsinproducts,useofchemicalsinmanufacturing,recyclingofproductsattheendoftheirusefullife,andotherrelatedmatters.TheselawsincludetheEURestrictionofHazardousSubstances,EndofLifeVehicle,andWasteElectricalandElectronicEquipmentDirectives;theEUREACHRegulation;theChinalawonManagementMethodsforControllingPollutionbyElectronicInformationProducts;andvariousotherlaws.Theselawsprohibittheuseofcertainsubstancesinthemanufactureofourproductsanddirectlyandindirectlyimposeavarietyofrequirementsformodificationofmanufacturingprocesses,registration,chemicaltesting,labeling,andothermatters.Theselawscontinuetoproliferateandexpandintheseandotherjurisdictionstoaddressothermaterialsandotheraspectsofourproductmanufacturingandsale.Theselawscouldmakemanufactureorsaleofourproductsmoreexpensiveorimpossibleandcouldlimitourabilitytosellourproductsincertainjurisdictions.

RisksRelatingtoOurSwissJurisdictionofIncorporation

As a Swiss corporation, we have less flexibility with respect to certain aspects of capital management involving the issuance of shares.

AsaSwisscorporation,ourboardofdirectorsmaynotdeclareandpaydividendsordistributionsonoursharesorreclassifyreservesonourstandaloneunconsolidatedSwissbalancesheetwithoutshareholderapprovalandwithoutsatisfyingcertainotherrequirements.Inaddition,ourarticlesofassociationallowustocreateauthorizedsharecapitalthatcanbeissuedbytheboardofdirectors,butthisauthorizationislimitedto(i)authorizedsharecapitalupto50%oftheexistingregisteredshareswithsuchauthorizationvalidforamaximumoftwoyears,whichauthorizationperiodendsonMarch2,2018,approvedbyourshareholdersatourMarch2,2016annualmeetingofshareholders,and(ii)conditionalsharecapitalofupto50%oftheexistingregisteredsharesthatmaybeissuedonlyforspecificpurposes.Additionally,subjecttospecifiedexceptions,Swisslawgrantspreemptiverightstoexistingshareholderstosubscribefornewissuancesofsharesfromauthorizedsharecapitalandadvancesubscriptionrightstoexistingshareholderstosubscribefornewissuancesofsharesfromconditionalsharecapital.Swisslawalsodoesnotprovidemuchflexibilityinthevarioustermsthatcanattachtodifferentclassesofshares,andreservesforapprovalbyshareholdersmanytypesofcorporateactions,includingthecreationofshareswithpreferentialrightswithrespecttoliquidation,dividends,and/orvoting.Moreover,underSwisslaw,wegenerallymaynotissueregisteredsharesforanamountbelowparvaluewithoutpriorshareholderapprovaltodecreasetheparvalueofourregisteredshares.AnysuchactionsforwhichourshareholdersmustvotewillrequirethatwefileapreliminaryproxystatementwiththeSECandconveneameetingofshareholders,whichwoulddelaythetimingtoexecutesuchactions.Suchlimitationsprovidetheboardofdirectorslessflexibilitywithrespecttoourcapitalmanagement.WhilewedonotbelievethatSwisslawrequirementsrelatingtotheissuanceofshareswillhaveamaterialadverseeffectonus,wecannotprovideassurancethatsituationswillnotarisewheresuchflexibilitywouldhaveprovidedsubstantialbenefitstoourshareholdersandsuchlimitationsonourcapitalmanagementflexibilitywouldmakeourstocklessattractivetoinvestors.

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We might not be able to make distributions on our shares without subjecting shareholders to Swiss withholding tax.

InordertomakedistributionsonoursharestoshareholdersfreeofSwisswithholdingtax,weanticipatemakingdistributionstoshareholdersthroughareductionofcontributedsurplus(asdeterminedforSwisstaxandstatutorypurposes)orregisteredsharecapital.VarioustaxlawandcorporatelawproposalsinSwitzerland,ifpassedinthefuture,mayaffectourabilitytopaydividendsordistributionstoourshareholdersfreefromSwisswithholdingtax.Therecanbenoassurancethatwewillbeabletomeetthelegalrequirementsforfuturedistributionstoshareholdersthroughdividendsfromcontributedsurplusorthroughareductionofregisteredsharecapital,orthatSwisswithholdingruleswouldnotbechangedinthefuture.Inaddition,overthelongterm,theamountofregisteredsharecapitalavailableforreductionswillbelimited.OurabilitytopaydividendsordistributionstoourshareholdersfreefromSwisswithholdingtaxisasignificantcomponentofourcapitalmanagementandshareholderreturnpracticesthatwebelieveisimportanttoourshareholders,andanyrestrictiononourabilitytodosocouldmakeourstocklessattractivetoinvestors.

Currency fluctuations between the U.S. dollar and the Swiss franc may limit the amount available for any future distributions on our shares withoutsubjecting shareholders to Swiss withholding tax.

UnderSwisscorporatelaw,whichappliestous,theregisteredsharecapitalinourunconsolidatedSwissstatutoryfinancialstatementsisrequiredtobedenominatedinSwissfrancs.SincedistributionsthatareeffectedthroughareturnofcontributedsurplusorregisteredsharecapitalareexpectedtobepaidinU.S.dollars,shareholderresolutionswithrespecttosuchdistributionsmusttakeintoaccounttheSwissfrancsdenominationoftheregisteredsharecapital.IftheU.S.dollarweretoincreaseinvaluerelativetotheSwissfranc,theU.S.dollaramountofregisteredsharecapitalavailableforfuturedistributionswithoutSwisswithholdingtaxwilldecrease.

We have certain limitations on our ability to repurchase our shares.

TheSwissCodeofObligationsregulatesacorporation'sabilitytoholdorrepurchaseitsownshares.Weandoursubsidiariesmayonlyrepurchasesharestotheextentthatsufficientfreelydistributablereserves(includingcontributedsurplusasdeterminedforSwisstaxandstatutorypurposes)areavailable.Theaggregateparvalueofourregisteredsharesheldbyusandoursubsidiariesmaynotexceed10%ofourregisteredsharecapital.Wemayrepurchaseourregisteredsharesbeyondthestatutorylimitof10%,however,onlyifourshareholdershaveadoptedaresolutionatageneralmeetingofshareholdersauthorizingtheboardofdirectorstorepurchaseregisteredsharesinanamountinexcessof10%andtherepurchasedsharesarededicatedforcancellation.Additionally,varioustaxlawandcorporatelawproposalsinSwitzerland,ifpassedinthefuture,mayaffectourabilitytorepurchaseourshares.Ourabilitytorepurchaseoursharesisasignificantcomponentofourcapitalmanagementandshareholderreturnpracticesthatwebelieveisimportanttoourshareholders,andanyrestrictiononourabilitytorepurchaseoursharescouldmakeourstocklessattractivetoinvestors.

Registered holders of our shares must be registered as shareholders with voting rights in order to vote at shareholder meetings.

OurarticlesofassociationcontainaprovisionregardingvotingrightsthatisrequiredbySwisslawforSwisscompanieslikeusthatissueregisteredshares(asopposedtobearershares).Thisprovisionprovidesthattobeabletoexercisevotingrights,holdersofoursharesmustberegisteredinourshareregister(Aktienbuch)asshareholderswithvotingrights.Onlyshareholderswhoseshareshavebeenregisteredwithvotingrightsontherecorddatemayparticipateinandvoteatourshareholders'meetings,butallshareholderswillbeentitledtodividends,distributions,preemptiverights,advancesubscriptionrights,andliquidationproceeds.Theboardofdirectorsmay,initsdiscretion,refuseto

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registersharesasshareswithvotingrightsifashareholderdoesnotfulfillcertaindisclosurerequirementsassetforthinourarticlesofassociation.Additionally,variousproposalsinSwitzerlandforcorporatelawchanges,ifpassedinthefuture,mayrequireshareholderregistrationinordertoexercisevotingrightsforshareholderswhoholdtheirsharesinstreetnamethroughbrokeragesandbanks.Sucharegistrationrequirementcouldmakeourstocklessattractivetoinvestors.

Certain provisions of our articles of association may reduce the likelihood of any unsolicited acquisition proposal or potential change of control that ourshareholders might consider favorable.

Ourarticlesofassociationcontainprovisionsthatcouldbeconsidered"anti-takeover"provisionsbecausetheywouldmakeitharderforathirdpartytoacquireuswithouttheconsentofourincumbentboardofdirectors.Undertheseprovisions,amongothers:

• shareholdersmayactonlyatshareholdermeetingsandnotbywrittenconsent,and

• restrictionswillapplytoanymergerorotherbusinesscombinationbetweenourcompanyandanyholderof15%ormoreofourissuedvotingshareswhobecamesuchwithoutthepriorapprovalofourboardofdirectors.

Theseprovisionsmayonlybeamendedbytheaffirmativevoteoftheholdersof80%ofourissuedvotingshares,whichcouldhavetheeffectofdiscouraginganunsolicitedacquisitionproposalordelaying,deferring,orpreventingachangeofcontroltransactionthatmightinvolveapremiumprice,orotherwisebeconsideredfavorablebyourshareholders.Ourarticlesofassociationalsocontainprovisionspermittingourboardofdirectorstoissuenewsharesfromauthorizedorconditionalcapital(ineithercase,representingamaximumof50%ofthesharespresentlyregisteredinthecommercialregisterandincaseofissuancesfromauthorizedcapital,untilMarch2,2018unlessre-authorizedbyshareholdersforasubsequenttwo-yearperiod)withoutshareholderapprovalandwithoutregardforshareholders'preemptiverightsoradvancesubscriptionrights,forthepurposeofthedefenseofanactual,threatened,orpotentialunsolicitedtakeoverbid,inrelationtowhichtheboardofdirectors,uponconsultationwithanindependentfinancialadvisor,hasnotrecommendedacceptancetotheshareholders.WenotethatSwisscourtshavenotaddressedwhetherornotatakeoverbidofthisnatureisanacceptablereasonunderSwisslawforwithdrawingorlimitingpreemptiverightswithrespecttoauthorizedsharecapitaloradvancesubscriptionrightswithrespecttoconditionalsharecapital.Inaddition,theNYSE,onwhichoursharesarelisted,requiresshareholderapprovalforissuancesofsharesequalto20%ormoreoftheoutstandingsharesorvotingpower,withlimitedexceptions.

Legislative and regulatory actions and proposals in Switzerland, the U.S., and other jurisdictions could cause a material change in our worldwideeffective corporate tax rate.

VariousU.S.andnon-U.S.legislativeandregulatoryproposalshavebeendirectedatmultinationalcompanieswithoperationsinlowertaxjurisdictions.Therehasbeenheightenedfocusonadoptionofsuchlegislationandonotherinitiatives,suchas:

• theOrganisationforEconomicCo-operationandDevelopment'sinitiativetodevelopagreed-uponbestpracticestopreventbaseerosionandprofitshifting,whichcontemplatechangestonumerouslong-standingtaxprinciplesrelatedtothedistributionofprofitsbetweenaffiliatedentitiesindifferenttaxjurisdictions,

• corporatetaxreforminSwitzerland,whichisproposedinresponsetoOECDandEUconcerns,

• EUandothercountryeffortstoadoptcertainOECDproposalsandmodifiedOECDproposals(includingtheAnti-TaxAvoidanceDirective,stateaidcases,andvarioustransparencyproposals),and

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• taxpolicyintheU.S.,suchastherecentlyissuedfinalandtemporarydebt/equityregulationsunderInternalRevenueCodeSection385,revisionstothemodelincometaxtreaty,andotherinternationaltaxreformproposals.

Iftheseproposalsareadoptedinthemainjurisdictionsinwhichwedobusiness,theycould,amongotherthings,causedoubletaxation,increaseauditrisk,andmateriallyincreaseourworldwidecorporateeffectivetaxrate.Wecannotpredicttheoutcomeofanyspecificlegislativeproposalsorinitiatives,andwecannotprovideassurancethatanysuchlegislationorinitiativewillnotapplytous.

Legislation in the U.S. could adversely impact our results of operations, financial position, and cash flows.

VariousU.S.federalandstatelegislativeproposalshavebeenintroducedinrecentyearsthatmaynegativelyimpactthegrowthofourbusinessbydenyinggovernmentcontractstoU.S.companiesthathavemovedtolower-taxjurisdictions.

WeexpecttheU.S.Congresstocontinuetoconsiderimplementationand/orexpansionofpoliciesthatwouldrestrictthefederalandstategovernmentsfromcontractingwithentitiesthathavecorporatelocationsabroad.Wecannotpredictthelikelihoodthat,orfinalforminwhich,anysuchproposedlegislationmightbecomelaw,thenatureofregulationsthatmaybepromulgatedunderanyfuturelegislativeenactments,theeffectsuchenactmentsandincreasedregulatoryscrutinymayhaveonourbusiness,ortheoutcomeofanyspecificlegislativeproposals.Therefore,wecannotprovideassurancethatanysuchlegislativeactionwillnotapplytous.Inaddition,weareunabletopredictwhetherthefinalformofanypotentiallegislationdiscussedabovealsowouldaffectourindirectsalestoU.S.federalorstategovernmentsorthewillingnessofournon-governmentalcustomerstodobusinesswithus.Asaresultoftheseuncertainties,weareunabletoassessthepotentialimpactofanyproposedlegislationinthisareaandcannotprovideassurancethattheimpactwillnotbemateriallyadversetous.

Swiss law differs from the laws in effect in the U.S. and may afford less protection to holders of our securities.

AsweareorganizedunderthelawsofSwitzerland,itmaynotbepossibletoenforcecourtjudgmentsobtainedintheU.S.againstusinSwitzerlandbasedonthecivilliabilityprovisionsoftheU.S.federalorstatesecuritieslaws.Inaddition,thereissomeuncertaintyastowhetherthecourtsofSwitzerlandwouldrecognizeorenforcejudgmentsofU.S.courtsobtainedagainstusorourdirectorsorofficersbasedonthecivilliabilityprovisionsoftheU.S.federalorstatesecuritieslawsorhearactionsagainstusorthosepersonsbasedonthoselaws.WehavebeenadvisedthattheU.S.andSwitzerlandcurrentlydonothaveatreatyprovidingforthereciprocalrecognitionandenforcementofjudgmentsincivilandcommercialmatters.SomeremediesavailableunderthelawsofU.S.jurisdictions,includingsomeremediesavailableundertheU.S.federalsecuritieslaws,wouldnotbeallowedinSwisscourtsastheyarecontrarytothatnation'spublicpolicy.

SwisscorporatelawdiffersincertainmaterialrespectsfromlawsgenerallyapplicabletoU.S.corporationsandtheirshareholders.Thesedifferencesincludethemannerinwhichdirectorsmustdisclosetransactionsinwhichtheyhaveaninterest,therightsofshareholderstobringclassactionandderivativelawsuits,andthescopeofindemnificationavailabletodirectorsandofficers.Thus,holdersofoursecuritiesmayhavemoredifficultyprotectingtheirintereststhanwouldholdersofsecuritiesofacorporationincorporatedinajurisdictionoftheU.S.

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ITEM2.PROPERTIES

OurprincipalexecutiveofficeislocatedinSchaffhausen,Switzerland.Asoffiscalyearend2016,weownedapproximately19millionsquarefeetandleasedapproximately10millionsquarefeetofmanufacturing,warehousing,andofficespace.Webelieveourfacilitiesaresuitablefortheconductofourbusinessandadequateforourcurrentneeds.

Wemanufactureourproductsinapproximately25countriesworldwide.Ourmanufacturingsitesfocusonvariousaspectsofthemanufacturingprocesses,includingourprimaryprocessesofstamping,plating,molding,extrusion,beaming,andassembly.Weconsidertheproductivecapacityofourmanufacturingfacilitiessufficient.Asoffiscalyearend2016,ourprincipalcentersofmanufacturingoutputbysegmentandgeographicregionwereasfollows:

ITEM3.LEGALPROCEEDINGS

Inthenormalcourseofbusiness,wearesubjecttovariouslegalproceedingsandclaims,includingproductliabilitymatters,employmentdisputes,disputesonagreements,othercommercialdisputes,environmentalmatters,antitrustclaims,andtaxmatters,includingnon-incometaxmatterssuchasvalueaddedtax,salesandusetax,realestatetax,andtransfertax.Inaddition,weoperateinanindustrysusceptibletosignificantpatentlegalclaims.Atanygiventimeinthenormalcourseofbusiness,weareinvolvedaseitheraplaintiffordefendantinanumberofpatentinfringementactions.Ifinfringementofathirdparty'spatentweretobedeterminedagainstus,wemightberequiredtomakesignificantroyaltyorotherpaymentsormightbesubjecttoaninjunctionorotherlimitationonourabilitytomanufactureorselloneormoreproducts.Ifapatentownedbyorlicensedtousweredeterminedtobeinvalidorunenforceable,wemightberequiredtoreducethevalueofthepatentonourConsolidatedBalanceSheetandtorecordacorrespondingcharge,whichcouldbesignificantinamount.

Managementbelievesthattheselegalproceedingsandclaimslikelywillberesolvedoveranextendedperiodoftime.Althoughitisnotfeasibletopredicttheoutcomeoftheseproceedings,baseduponourexperience,currentinformation,andapplicablelaw,wedonotexpectthattheseproceedingswillhaveamaterialeffectonourresultsofoperations,financialposition,orcashflows.

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Transportation

Solutions IndustrialSolutions

CommunicationsSolutions Total

(numberofmanufacturingfacilities) Americas 11 26 7 44EMEA 18 18 3 39Asia–Pacific 7 6 8 21Total 36 50 18 104

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PARTII

ITEM5.MARKETFORREGISTRANT'SCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERSANDISSUERPURCHASESOFEQUITYSECURITIES

MarketInformation

OurcommonsharesarelistedandtradedontheNYSEunderthesymbol"TEL."ThefollowingtablesetsforththehighandlowclosingsalespricesofourcommonsharesasreportedbytheNYSEforthequarterlyperiodsoffiscal2016and2015:

ThenumberofregisteredholdersofourcommonsharesatNovember9,2016was25,611.

DividendsandCashDistributionstoShareholders

Thefollowingtablesetsforththedividendspaidonourcommonsharesduringthequarterlyperiodsoffiscal2016and2015:

Futuredividendsonourcommonsharesorreductionsofregisteredsharecapitalfordistributiontoshareholders,ifany,mustbeapprovedbyourshareholders.Inexercisingtheirdiscretiontorecommendtotheshareholdersthatsuchdividendsordistributionsbeapproved,ourboardofdirectorswillconsiderourresultsofoperations,cashrequirementsandsurplus,financialcondition,statutoryrequirementsofapplicablelaw,contractualrestrictions,andotherfactorsthattheymaydeemrelevant.Wemayfromtimetotimeenterintofinancingagreementsthatcontainfinancialcovenantsandrestrictions,someofwhichmaylimitourabilitytopaydividendsortodistributecapitalreductions.

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MarketPriceRange Fiscal 2016 2015 High Low High Low FirstQuarter $ 67.61 $ 56.85 $ 65.00 $ 51.47SecondQuarter 65.75 52.27 73.42 61.19ThirdQuarter 63.69 57.32 71.73 66.12FourthQuarter 64.54 54.83 64.36 55.53

Fiscal 2016 2015 FirstQuarter $ 0.33(CHF0.32)(1) $ 0.29(CHF0.26)(2)SecondQuarter $ 0.33(CHF0.32)(1) $ 0.29(CHF0.26)(2)ThirdQuarter $ 0.37(CHF0.37)(1) $ 0.33(CHF0.32)(1)FourthQuarter $ 0.37(CHF0.37)(1) $ 0.33(CHF0.32)(1)

(1) PaymentsweredeclaredinU.S.dollars.TheSwissfrancs("CHF")equivalentisbasedonaU.S.dollar/CHFexchangerateonthedateofshareholderapproval.

(2) PaymentsweredeclaredinCHFandpaidinU.S.dollarsbasedonaU.S.dollar/CHFexchangerateshortlybeforeshareholderapproval.

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PerformanceGraph

SetforthbelowisagraphcomparingthecumulativetotalshareholderreturnonourcommonsharesagainstthecumulativereturnontheS&P500IndexandtheDowJonesElectricalComponentsandEquipmentIndex.Thegraphassumestheinvestmentof$100inourcommonsharesandineachindexatfiscalyearend2011andassumesthereinvestmentofalldividendsanddistributions.Thegraphshowsthecumulativetotalreturnforthelastfivefiscalyears.Thecomparisonsinthegraphbelowarebaseduponhistoricaldataandarenotindicativeof,norintendedtoforecast,futureperformanceofourcommonshares.

COMPARISONOFCUMULATIVETOTALRETURNAMONGTECONNECTIVITYLTD.,S&P500INDEX,AND

DOWJONESELECTRICALCOMPONENTSANDEQUIPMENTINDEX

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FiscalYearEnd 2011(1) 2012 2013 2014 2015 2016 TEConnectivityLtd. $ 100.00 $ 123.71 $ 193.20 $ 222.75 $ 225.57 $ 254.30S&P500Index 100.00 130.20 156.32 187.02 185.92 213.44DowJonesElectricalComponentsandEquipmentIndex 100.00 132.48 181.99 203.03 186.47 221.36

(1) $100investedonSeptember30,2011inTEConnectivity'scommonsharesandinindexes.Indexescalculatedonmonth-endbasis.

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IssuerPurchasesofEquitySecurities

ThefollowingtablepresentsinformationaboutourpurchasesofourcommonsharesduringthequarterendedSeptember30,2016:

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Period

TotalNumberofShares

Purchased(1)

AveragePricePaidPerShare(1)

TotalNumberofSharesPurchased

asPartofPubliclyAnnounced

PlansorPrograms(2)

MaximumApproximateDollarValue

ofSharesthatMayYetBePurchasedUnderthePlansorPrograms(2)

June25–July22,2016 1,237,100 $ 58.07 1,237,100 $ 1,125,417,356July23–August26,2016 395,461 60.44 391,693 1,101,746,129August27–September30,2016 1,030 63.07 — 1,101,746,129Total 1,633,591 $ 58.64 1,628,793

(1) ThesecolumnsincludethefollowingtransactionswhichoccurredduringthequarterendedSeptember30,2016:

(i) theacquisitionof4,798commonsharesfromindividualsinordertosatisfytaxwithholdingrequirementsinconnectionwiththevestingofrestrictedshareawardsissuedunderequitycompensationplans;and

(ii) openmarketpurchasestotaling1,628,793commonshares,summarizedonatrade-datebasis,inconjunctionwiththesharerepurchaseprogramannouncedinSeptember2007.

(2) InMarch2016,ourboardofdirectorsauthorizeda$1.0billionincreaseinthesharerepurchaseprogram.Oursharerepurchaseprogramauthorizesustopurchaseaportionofouroutstandingcommonsharesfromtimetotimethroughopenmarketorprivatetransactions,dependingonbusinessandmarketconditions.Thesharerepurchaseprogramdoesnothaveanexpirationdate.

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ITEM6.SELECTEDFINANCIALDATA

Thefollowingtablepresentsselectedconsolidatedfinancialdata.ThedatapresentedbelowshouldbereadinconjunctionwithourConsolidatedFinancialStatementsandaccompanyingnotesand"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"includedelsewhereinthisAnnualReport.Ourconsolidatedfinancialinformationmaynotbeindicativeofourfutureperformance.

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AsoforforFiscal 2016(1) 2015(2) 2014(3) 2013(4) 2012(5) (inmillions,exceptpersharedata) StatementofOperationsData Netsales $ 12,238 $ 12,233 $ 11,973 $ 11,390 $ 11,325Acquisitionandintegrationcosts 22 55 31 14 27Restructuringandothercharges,net 2 152 19 222 104AmountsattributabletoTEConnectivityLtd.: Incomefromcontinuingoperations 1,941 1,238 1,614 1,154 1,003Incomefromdiscontinuedoperations,netofincometaxes 68 1,182 167 122 109Netincome $ 2,009 $ 2,420 $ 1,781 $ 1,276 $ 1,112

PerShareData BasicearningspershareattributabletoTEConnectivityLtd.: Incomefromcontinuingoperations $ 5.30 $ 3.06 $ 3.94 $ 2.76 $ 2.35Netincome 5.49 5.98 4.34 3.05 2.61

DilutedearningspershareattributabletoTEConnectivityLtd.: Incomefromcontinuingoperations $ 5.26 $ 3.01 $ 3.87 $ 2.73 $ 2.33Netincome 5.44 5.89 4.27 3.02 2.59

Dividendsandcashdistributionspaidpercommonshare $ 1.40 $ 1.24 $ 1.08 $ 0.92 $ 0.78

BalanceSheetData Totalassets $ 17,608 $ 20,589 $ 20,132 $ 18,446 $ 19,290Long-termliabilities 6,057 7,429 7,128 6,000 7,166Totalequity $ 8,485 $ 9,585 $ 9,013 $ 8,386 $ 7,977

(1) Fiscal2016resultsincludedapre-taxgainof$144milliononthesaleofourCircuitProtectionDevices("CPD")business;a$1,135millionincometaxbenefitassociatedwiththeeffectivesettlementoftaxmattersfortheyears1997through2000whichresolvedallaspectsofthedisputeddebtmatterwiththeInternalRevenueServicethroughtheyear2007andtherelatedimpactof$604milliontootherexpensepursuanttotheTaxSharingAgreementwithTycoInternationalplc("TycoInternational")andCovidienplc("Covidien");a$91millionincometaxchargerelatedtoanincreasetothevaluationallowanceforcertainU.S.deferredtaxassets;andan$83millionnetincometaxbenefitrelatedtotaxsettlementsincertainothertaxjurisdictions.(SeeNotes3,12,15,and16totheConsolidatedFinancialStatements.)Fiscal2016wasa53weekyear.

(2) Fiscal2015resultsincludeda$216millionincometaxchargeassociatedwiththetaximpactsofcertainintercompanylegalentityrestructuringsmadeinconnectionwithourintegrationofMeasurementSpecialties,Inc.("MeasurementSpecialties");a$201millionincometaxbenefitassociatedwiththeeffectivesettlementofallundisputedtaxmattersfortheyears2001through2007andtherelatedimpactof$84milliontootherexpensepursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien;anda$63millionincometaxbenefitassociatedwiththeeffectivesettlementofallundisputedtaxmattersfortheyears2008through2010.Inaddition,infiscal2015,incomefromdiscontinuedoperations,netofincometaxes

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includedthegainonthesaleofourBroadbandNetworkSolutions("BNS")business.(SeeNotes4,12,15,and16totheConsolidatedFinancialStatements.)

(3) Fiscal2014resultsincludeda$282millionincometaxbenefitrecognizedinconnectionwithareductioninthevaluationallowanceassociatedwithcertaintaxlosscarryforwardsrelatingtoADCTelecommunications,Inc.("ADC").(SeeNote15totheConsolidatedFinancialStatements.)

(4) Fiscal2013resultsincludeda$331millionincometaxbenefitassociatedwiththeeffectivesettlementofallundisputedtaxmattersfortheyears1997through2000andtherelatedimpactof$231milliontootherexpensepursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.

(5) Fiscal2012resultsincluded$75millionofchargesfromtheamortizationofacquisition-relatedfairvalueadjustmentsrelatedprimarilytoacquiredinventoriesandcustomerorderbacklogassociatedwithDeutschGroupSASanda$107millionincometaxbenefitrecognizedinconnectionwithareductioninthevaluationallowanceassociatedwithtaxlosscarryforwardsincertainnon-U.S.locations.

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ITEM7.MANAGEMENT'SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS

ThefollowingdiscussionandanalysisofourfinancialconditionandresultsofoperationsshouldbereadinconjunctionwithourConsolidatedFinancialStatementsandtheaccompanyingnotesincludedelsewhereinthisAnnualReport.Thefollowingdiscussionmaycontainforward-lookingstatementsthatreflectourplans,estimates,andbeliefs.Ouractualresultscoulddiffermateriallyfromthosediscussedintheseforward-lookingstatements.FactorsthatcouldcauseorcontributetothesedifferencesincludethosefactorsdiscussedbelowandelsewhereinthisAnnualReport,particularlyin"RiskFactors"and"Forward-LookingInformation."

OurConsolidatedFinancialStatementshavebeenpreparedinU.S.dollars,inaccordancewithaccountingprinciplesgenerallyacceptedintheU.S.("GAAP").

Thefollowingdiscussionincludesorganicnetsalesgrowthandfreecashflowwhicharenon-GAAPfinancialmeasures.Webelievethesenon-GAAPfinancialmeasures,togetherwithGAAPfinancialmeasures,provideusefulinformationtoinvestorsbecausetheyreflectthefinancialmeasuresthatmanagementusesinevaluatingtheunderlyingresultsofouroperations.See"Non-GAAPFinancialMeasures"formoreinformationaboutthesenon-GAAPfinancialmeasures,includingourreasonsforincludingthemeasuresandmateriallimitationswithrespecttotheusefulnessofthemeasures.

Overview

Weareaglobaltechnologyleader.Wedesignandmanufactureconnectivityandsensorsolutionsthatareessentialintoday'sincreasinglyconnectedworld.Wehelpourcustomerssolvetheneedforintelligent,efficient,andhigh-performingproductsandsolutions.

Fiscal2016highlightsincludedthefollowing:

• Overall,ournetsaleswereflatinfiscal2016ascomparedtofiscal2015,asincreasednetsalesintheTransportationSolutionsandIndustrialSolutionssegmentswereoffsetbydeclinesintheCommunicationsSolutionssegment.Foreigncurrencyexchangeratesnegativelyimpactednetsalesby$254millioninfiscal2016ascomparedtofiscal2015.Onanorganicbasis,ournetsalesincreased1.5%duringfiscal2016ascomparedtofiscal2015.

• Ournetsalesbysegmentwereasfollows:

• TransportationSolutions—Ournetsalesincreased2.4%duetoincreasedsalesintheautomotiveendmarketand,toalesserdegree,thesensorsandcommercialtransportationendmarkets.

• IndustrialSolutions—Ournetsalesincreased1.1%duetoincreasedsalesintheindustrialequipmentendmarketwhichbenefittedfromsalescontributionsfromacquisitions,partiallyoffsetbydecreasedsalesintheaerospace,defense,oil,andgasandtheenergyendmarkets.

• CommunicationsSolutions—Ournetsalesdecreased6.8%dueprimarilytosalesdeclinesinthedataanddevicesendmarket,partiallyoffsetbysalesincreasesinthesubseacommunicationsendmarket.

• Fiscal2016includedanadditionalweekwhichcontributed$238millioninnetsalesand$0.13persharetodilutedearningspershare.

• Duringfiscal2016,ourshareholdersapprovedadividendpaymenttoshareholdersof$1.48perissuedsharepayableinfourquarterlyinstallmentsof$0.37beginningwiththethirdfiscalquarterof2016andendinginthesecondfiscalquarterof2017.

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• Netcashprovidedbycontinuingoperatingactivitieswas$2,019millionandfreecashflowwas$1,585millioninfiscal2016.

• Duringfiscal2016,weacquiredtheCregannaMedicalgroup("Creganna"),agloballeaderinthedesignandmanufactureofminimallyinvasivedeliveryandaccessmedicaldevices.Alsoduringfiscal2016,wecompletedthedivestitureourCPDbusiness.

Outlook

Inthefirstquarteroffiscal2017,weexpectnetsalestobebetween$2.95billionand$3.05billion.ThisreflectssalesgrowthintheIndustrialSolutionsandTransportationSolutionssegments,partiallyoffsetbysalesdeclinesintheCommunicationsSolutionssegmentrelativetothefirstquarteroffiscal2016.Additionalinformationregardingexpectationsforourreportablesegmentsforthefirstquarteroffiscal2017ascomparedtothesameperiodoffiscal2016isasfollows:

• TransportationSolutions—Weexpectournetsalesgrowthintheautomotiveendmarkettoexceedanticipatedgrowthinglobalautomotiveproductionofapproximately2%dueprimarilytogrowthinChinaandtheEMEAregion.Wealsoexpectournetsalestoincreaseinthecommercialtransportationandsensorsendmarkets.

• IndustrialSolutions—Weexpectournetsalestoincreaseintheindustrialequipmentendmarketdueprimarilytorecentacquisitions.Weexpectournetsalesgrowthintheaerospaceanddefensemarkettobepartiallyoffsetbymarketweaknessandsalesdeclinesintheoilandgasmarket.

• CommunicationsSolutions—WeexpectournetsalestodeclineinthedataanddevicesendmarketprimarilyasaresultofthedivestitureofourCPDbusiness.Thisdeclineisexpectedtobepartiallyoffsetbysalesgrowthintheappliancesandsubseacommunicationsendmarkets.

Weexpectdilutedearningspersharefromcontinuingoperationstobeintherangeof$0.84to$0.88pershareinthefirstquarteroffiscal2017.

Forfiscal2017,weexpectnetsalestobebetween$12.3billionand$12.9billion,anincreasefrom$12.2billioninfiscal2016whichincludedanadditionalweek.ThisincreaseisattributabletosalesgrowthintheIndustrialSolutionsandTransportationSolutionssegments,partiallyoffsetbysalesdeclinesintheCommunicationsSolutionssegment.Additionalinformationregardingexpectationsforourreportablesegmentsforfiscal2017comparedtofiscal2016isasfollows:

• TransportationSolutions—Weexpectournetsalesincreaseintheautomotiveendmarkettooutpaceexpectedgrowthinglobalautomotiveproductionofapproximately1%asaresultofincreasedcontentpervehicleandmarketsharegains.Wealsoexpectournetsalestoincreaseinthecommercialtransportationandsensorsendmarkets.

• IndustrialSolutions—Weexpectournetsalestoincreaseintheindustrialequipmentendmarketdueprimarilytorecentacquisitions.Also,weexpectnetsalesgrowthintheaerospaceanddefensemarket.

• CommunicationsSolutions—Weexpectournetsalesgrowthinthesubseacommunicationsandappliancesendmarketstobemorethanoffsetbysalesdeclinesinthedataanddevicesendmarket,dueprimarilytothedivestitureofourCPDbusiness.

Weexpectdilutedearningspersharefromcontinuingoperationstobeintherangeof$3.84to$4.14pershareinfiscal2017.

Theaboveoutlookisbasedonforeignexchangeratesandcommoditypricesthatareconsistentwithcurrentlevels.

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Wearemonitoringthecurrentmacroeconomicenvironment,includingtheproposedexitoftheUnitedKingdomfromtheEU,anditspotentialeffectsonourcustomersandtheendmarketsweserve.Wecontinuetocloselymanageourcostsinlinewitheconomicconditions.Additionally,wearemanagingourcapitalresourcesandmonitoringcapitalavailabilitytoensurethatwehavesufficientresourcestofundfuturecapitalneeds.Seefurtherdiscussionin"LiquidityandCapitalResources."

Acquisitions

Duringfiscal2016,weacquiredfourbusinesses,includingCreganna,foracombinedcashpurchasepriceof$1.3billion,netofcashacquired.

Duringfiscal2015,weacquiredMeasurementSpecialties,aleadingglobaldesignerandmanufacturerofsensorsandsensor-basedsystems.Thetotalvaluepaidwasapproximately$1.7billion,netofcashacquired,andincluded$225millionfortherepaymentofMeasurementSpecialties'debtandaccruedinterest.Alsoduringfiscal2015,weacquiredthreeadditionalbusinessesfor$241millionincash,netofcashacquired.

Duringfiscal2014,weacquiredfivebusinesses,includingtheSEACONGroup("SEACON"),aleadingproviderofunderwaterconnectortechnologyandsystems,for$522millionincash,netofcashacquired.

SeeNote5totheConsolidatedFinancialStatementsforadditionalinformationregardingacquisitions.

Divestiture

Duringfiscal2016,wesoldourCPDbusinessfornetcashproceedsof$333million.Werecognizedapre-taxgainof$144milliononthetransaction.TheCPDbusinesswasreportedaspartoftheDataandDevicesbusinesswithinourCommunicationsSolutionssegment.

ResultsofOperations

NetSales

Thefollowingtablepresentsournetsalesandthepercentageoftotalnetsalesbysegment:

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Fiscal 2016 2015 2014 ($inmillions) TransportationSolutions $ 6,503 53% $ 6,351 52% $ 6,090 51%IndustrialSolutions 3,215 26 3,179 26 3,302 28CommunicationsSolutions 2,520 21 2,703 22 2,581 21Total $ 12,238 100% $ 12,233 100% $ 11,973 100%

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Thefollowingtableprovidesananalysisofthechangeinournetsalescomparedtothepriorfiscalyearbysegment:

Netsaleswereflatinfiscal2016ascomparedtofiscal2015.Organicnetsalesgrowthof1.5%andnetsalescontributionsfromacquisitionsandadivestitureof0.6%wereoffsetbythenegativeimpactofforeigncurrencytranslationof2.1%duetotheweakeningofcertainforeigncurrencies.Organicnetsaleswereadverselyaffectedbypriceerosionof$188millioninfiscal2016.Fiscal2016includedanadditionalweekwhichcontributed$238millioninnetsales.Theimpactoftheadditionalweekwasestimatedusinganaverageweeklysalesfigureforthelastmonthofthefiscalyear.

Netsalesincreased$260million,or2.2%,infiscal2015ascomparedtofiscal2014.Theincreaseinnetsalesresultedfromsalescontributionsfromacquisitionsof5.9%andorganicnetsalesgrowthof3.8%,partiallyoffsetbythenegativeimpactofforeigncurrencytranslationof7.5%duetotheweakeningofcertainforeigncurrencies.Duringfiscal2015,MeasurementSpecialtiescontributednetsalesof$548million.Organicnetsaleswereadverselyaffectedbypriceerosionof$208millioninfiscal2015.

Seefurtherdiscussionofnetsalesbelowunder"SegmentResults."

Net Sales by Geographic Region. Ourbusinessoperatesinthreegeographicregions—theAmericas,EMEA,andAsia–Pacific—andourresultsofoperationsareinfluencedbychangesinforeigncurrencyexchangerates.IncreasesordecreasesinthevalueoftheU.S.dollar,comparedtoothercurrencies,willdirectlyaffectourreportedresultsaswetranslatethosecurrenciesintoU.S.dollarsattheendofeachfiscalperiod.Wesellourproductsintoapproximately150countries,andapproximately54%ofournetsaleswereinvoicedincurrenciesotherthantheU.S.dollarinfiscal2016.Thepercentageofnetsalesinfiscal2016bymajorcurrenciesinvoicedwasasfollows:

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Fiscal 2016 2015 ChangeinNetSalesversusPriorFiscalYear ChangeinNetSalesversusPriorFiscalYear

Total Translation Acquisitions(Divestiture) Organic Total Translation Acquisitions Organic

($inmillions) TransportationSolutions $ 152 2.4%$ (174) $ 16 $ 310 4.9%$ 261 4.3%$ (556) $ 567 $ 250 4.1%IndustrialSolutions 36 1.1 (63) 188 (89) (2.8) (123) (3.7) (258) 142 (7) (0.2)CommunicationsSolutions (183) (6.8) (17) (123) (43) (1.6) 122 4.7 (95) — 217 8.4Total $ 5 —%$ (254) $ 81 $ 178 1.5%$ 260 2.2%$ (909) $ 709 $ 460 3.8%

Currencies Percentage U.S.dollar 46%Euro 28Chineserenminbi 11Japaneseyen 6Allothers 9Total 100%

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Thefollowingtablepresentsournetsalesandthepercentageoftotalnetsalesbygeographicregion:

Thefollowingtableprovidesananalysisofthechangeinournetsalescomparedtothepriorfiscalyearbygeographicregion:

CostofSalesandGrossMargin

Thefollowingtablepresentscostofsalesandgrossmargininformation:

Infiscal2016,grossmargindecreased$54millionascomparedtofiscal2015.Infiscal2016,grossmarginincludedchargesof$10millionfromtheamortizationofacquisition-relatedfairvalueadjustmentstoacquiredinventoriesandcustomerorderbacklogassociatedprimarilywithCreganna.Infiscal2015,grossmarginincludedchargesof$36millionfromtheamortizationofacquisition-relatedfairvalueadjustmentstoacquiredinventoriesandcustomerorderbacklogassociatedprimarilywithMeasurementSpecialties.Excludingthesecharges,thegrossmargindecreasedinfiscal2016dueprimarilytounfavorableproductmixandpriceerosion,partiallyoffsetbylowermaterialcosts.

Grossmarginincreased$115millioninfiscal2015ascomparedtofiscal2014.Infiscal2015,grossmarginincludedchargesof$36millionassociatedwiththeacquisitionofMeasurementSpecialties.Excludingthesecharges,grossmarginincreasedinfiscal2015primarilyasaresultofhighervolumeandimprovedmanufacturingproductivity,partiallyoffsetbythenegativeimpactofchangesinforeigncurrencyexchangeratesandpriceerosion.

Costofsalesandgrossmarginaresubjecttovariabilityinrawmaterialprices,andthepriceofmanyofourrawmaterialscontinuestofluctuate.Infiscal2016,wepurchasedapproximately

30

Fiscal 2016 2015 2014 ($inmillions) Americas $ 4,199 34%$ 4,138 34%$ 3,515 30%EMEA 4,116 34 3,992 33 4,224 35Asia–Pacific 3,923 32 4,103 33 4,234 35Total $ 12,238 100%$ 12,233 100%$ 11,973 100%

Fiscal 2016 2015 ChangeinNetSalesversusPriorFiscalYear ChangeinNetSalesversusPriorFiscalYear

Total Translation Acquisitions(Divestiture) Organic Total Translation Acquisitions Organic

($inmillions) Americas $ 61 1.5% $ (58) $ 104 $ 15 0.4% $ 623 17.7% $ (72) $ 334 $ 361 10.3%EMEA 124 3.1 (141) 71 194 4.9 (232) (5.5) (649) 287 130 3.1Asia–Pacific (180) (4.4) (55) (94) (31) (0.7) (131) (3.1) (188) 88 (31) (0.7)Total $ 5 —% $ (254) $ 81 $ 178 1.5% $ 260 2.2% $ (909) $ 709 $ 460 3.8%

Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 ($inmillions) Costofsales $ 8,205 $ 8,146 $ 8,001 $ 59 $ 145Asapercentageofnetsales 67.0% 66.6% 66.8% 0.4% (0.2)%

Grossmargin $ 4,033 $ 4,087 $ 3,972 $ (54) $ 115Asapercentageofnetsales 33.0% 33.4% 33.2% (0.4)% 0.2%

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170millionpoundsofcopper,115,000troyouncesofgold,and2.4milliontroyouncesofsilver.Thefollowingtablesetsforththeaveragepricesincurredrelatedtocopper,gold,andsilver.

Infiscal2017,weexpecttopurchaseapproximately177millionpoundsofcopper,129,000troyouncesofgold,and2.5milliontroyouncesofsilver.

OperatingExpenses

Thefollowingtablepresentsoperatingexpenseinformation:

Selling, General, and Administrative Expenses. Infiscal2016,selling,general,andadministrativeexpensesdecreased$41millionascomparedtofiscal2015dueprimarilytocostcontrolmeasuresandsavingsattributabletorestructuringactions.

Selling,general,andadministrativeexpensesdecreased$30millioninfiscal2015ascomparedtofiscal2014.Thedecreaseresultedprimarilyfromcostcontrolmeasuresandsavingsattributabletorestructuringactions,partiallyoffsetbyadditionalexpensesassociatedwithMeasurementSpecialties.

Research, Development, and Engineering Expenses. Research,development,andengineeringexpensesincreased$17millioninfiscal2016ascomparedtofiscal2015and$44millioninfiscal2015ascomparedtofiscal2014.Theincreasesresultedfromadditionalexpensesrelatedtoacquisitionsandgrowthinitiatives,primarilyintheTransportationSolutionssegment.

Acquisition and Integration Costs. Infiscal2016,weincurredacquisitionandintegrationcostsof$22millionrelatedprimarilytotheacquisitionsofCregannaandMeasurementSpecialties.Infiscal2015,weincurredacquisitionandintegrationcostsof$55million,relatedprimarilytotheacquisitionsofMeasurementSpecialtiesandSEACON.Infiscal2014,weincurredacquisitionandintegrationcostsof$31million,primarilyinconnectionwiththeacquisitionofSEACON.

Restructuring and Other Charges, Net. Wearecommittedtocontinuousproductivityimprovementsandconsistentlyevaluateopportunitiestosimplifyourglobalmanufacturingfootprint,migratefacilitiestolower-costregions,reducefixedcosts,andeliminateexcesscapacity.Theseinitiativesaredesignedtohelpusmaintainourcompetitivenessintheindustry,improveouroperatingleverage,andpositionusforfuturegrowth.

Duringfiscal2016,weinitiatedarestructuringprogramassociatedwithheadcountreductionsimpactingallsegmentsandproductlineclosuresintheCommunicationsSolutionssegment.Duringfiscal2015,weinitiatedarestructuringprogramassociatedwithheadcountreductionsandproductline

31

Fiscal Measure 2016 2015 2014 Copper Lb. $ 2.49 $ 3.06 $ 3.33Gold Troyoz. 1,212 1,267 1,405Silver Troyoz. 16.08 18.51 23.43

Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 ($inmillions) Selling,general,andadministrativeexpenses $ 1,463 $ 1,504 $ 1,534 $ (41) $ (30)Asapercentageofnetsales 12.0% 12.3% 12.8% (0.3)% (0.5)%

Research,development,andengineeringexpenses $ 644 $ 627 $ 583 $ 17 $ 44Acquisitionandintegrationcosts $ 22 $ 55 $ 31 $ (33) $ 24Restructuringandothercharges,net $ 2 $ 152 $ 19 $ (150) $ 133

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closures,primarilyimpactingtheCommunicationsSolutionsandIndustrialSolutionssegments.Duringfiscal2014,weinitiatedarestructuringprogramassociatedprimarilywithheadcountreductionsandmanufacturingsiteandproductlineclosuresintheCommunicationsSolutionssegment.

Inconnectionwiththeseinitiatives,werecordednetrestructuringchargesof$125million,$93million,and$23millioninfiscal2016,2015,and2014,respectively.Annualizedcostsavingsrelatedtoactionsinitiatedinfiscal2016areexpectedtobeapproximately$150millionandareexpectedtoberealizedbytheendoffiscal2017.Costsavingswillbereflectedprimarilyincostofsalesandselling,general,andadministrativeexpenses.Duringfiscal2017,weexpectnetrestructuringchargestobesimilartofiscal2016levels.Weexpecttotalspending,whichwillbefundedwithcashfromoperations,tobeapproximately$110millioninfiscal2017.

Duringfiscal2016,werecognizedapre-taxgainof$144milliononthesaleofourCPDbusiness.

Duringfiscal2016and2015,weincurrednetotherchargesof$21millionand$59million,respectively,primarilyinconnectionwiththedivestitureofcertainbusinesses.

SeeNote3totheConsolidatedFinancialStatementsforadditionalinformationregardingnetrestructuringandothercharges.

OperatingIncome

Thefollowingtablepresentsoperatingincomeandoperatingmargininformation:

Operatingincomeincludedthefollowing:

Seefurtherdiscussionofoperatingincomebelowunder"SegmentResults."

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Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 ($inmillions) Operatingincome $ 1,902 $ 1,749 $ 1,805 $ 153 $ (56)Operatingmargin 15.5% 14.3% 15.1% 1.2% (0.8)%

Fiscal 2016 2015 2014 (inmillions) Acquisitionrelatedcharges: Acquisitionandintegrationcosts $ 22 $ 55 $ 31Chargesassociatedwiththeamortizationofacquisition-relatedfairvalueadjustments 10 36 4Restructuringchargesrelatedtoacquisitions — 3 —

32 94 35Restructuringandothercharges,net 2 149 19Total $ 34 $ 243 $ 54

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Non-OperatingItems

Thefollowingtablepresentsselectnon-operatinginformation:

Other Income (Expense), Net. Infiscal2016,2015,and2014,werecordednetotherincome(expense)primarilypursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.SeeNote16totheConsolidatedFinancialStatementsforfurtherinformationregardingnetotherincome(expense)andNote12totheConsolidatedFinancialStatementsforinformationregardingtheseparationandrelatedTaxSharingAgreement.

Income Taxes. SeeNote15totheConsolidatedFinancialStatementsforinformationregardingitemsimpactingincometaxexpense(benefit)forfiscal2016,2015,and2014.

Thevaluationallowancefordeferredtaxassetswas$3,096millionand$3,237millionatfiscalyearend2016and2015,respectively.SeeNote15totheConsolidatedFinancialStatementsforfurtherinformationregardingthevaluationallowancefordeferredtaxassets.

Asoffiscalyearend2016,certainsubsidiarieshadapproximately$21billionofcumulativeundistributedearningsthathavebeenretainedindefinitelyandreinvestedinourglobalmanufacturingoperations,includingworkingcapital;property,plant,andequipment;intangibleassets;andresearchanddevelopmentactivities.SeeNote15totheConsolidatedFinancialStatementsforadditionalinformationregardingundistributedearnings.

Income from Discontinued Operations, Net of Income Taxes. Duringfiscal2015,wesoldourBNSbusinessfor$3.0billionincashandrecognizedapre-taxgainof$1.1billiononthetransaction.Duringfiscal2016,werecognizedanadditionalpre-taxgainof$29milliononthedivestiture,relatedprimarilytopensionandnetworkingcapitaladjustments.

Infiscal2006,theformershareholdersofCom-Netinitiatedalawsuitrelatedtoourfiscal2001acquisitionofCom-Net.InconnectionwiththeCom-Netcase,werecordedareserveandpre-taxchargesof$127millionduringfiscal2015.Duringfiscal2016,werecordedpre-taxcreditsof$30million,representingareleaseofexcessreserves.TheseamountsarereflectedinincomefromdiscontinuedoperationsontheConsolidatedStatementsofOperationsastheCom-NetcasewasassociatedwithourformerWirelessSystemsbusinesswhichwassoldin2009.

TheBNSandWirelessSystemsbusinessesmetthediscontinuedoperationscriteriaandwerereportedassuchinallperiodspresentedontheConsolidatedFinancialStatements.Priortoreclassificationtodiscontinuedoperations,theBNSandWirelessSystemsbusinesseswereincludedintheformerNetworkSolutionsandWirelessSystemssegments,respectively.SeeNote4totheConsolidatedFinancialStatementsforadditionalinformationregardingdiscontinuedoperations.

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Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 (inmillions) Interestexpense $ 127 $ 136 $ 127 $ (9) $ 9Otherincome(expense),net (632) (55) 63 (577) (118)Incometaxexpense(benefit) (779) 337 146 (1,116) 191Incomefromdiscontinuedoperations,netofincometaxes 68 1,182 167 (1,114) 1,015

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SegmentResults

TransportationSolutions

Net Sales. ThefollowingtablepresentstheTransportationSolutionssegment'snetsalesandthepercentageoftotalnetsalesbyprimaryindustryendmarket(1):

ThefollowingtableprovidesananalysisofthechangeintheTransportationSolutionssegment'snetsalescomparedtothepriorfiscalyearbyprimaryindustryendmarket:

Infiscal2016,netsalesintheTransportationSolutionssegmentincreased$152million,or2.4%,fromfiscal2015dueprimarilytoorganicnetsalesgrowthof4.9%,partiallyoffsetbythenegativeimpactofforeigncurrencytranslationof2.7%.Fiscal2016includedanadditionalweekwhichcontributed$130millioninnetsales.Ourorganicnetsalesbyprimaryindustryendmarketwereasfollows:

• Automotive—Ourorganicnetsalesincreased5.6%infiscal2016.Theincreasewasdueprimarilytogrowthof8.4%intheAsia–Pacificregionand5.9%intheEMEAregion,partiallyoffsetbyadecreaseof0.9%intheAmericasregion.IntheAsia–Pacificregion,ourgrowthwasdrivenbyincreasedelectronificationandmarketsharegainsinChina.IntheEMEAregion,ourorganicnetsalesincreasedduetoelectronificationandnewmodellaunches.TheAmericasregionwasadverselyimpactedbymarketweaknessinNorthAmericaandmacroeconomicconditionsinSouthAmerica.

• Commercialtransportation—Ourorganicnetsalesincreased2.6%infiscal2016dueprimarilytogrowthintheheavytruckmarketintheEMEAregionandChina.

• Sensors—Ourorganicnetsalesincreased3.1%infiscal2016dueprimarilytoincreasedsalesintheautomotive,aerospaceanddefense,andindustrialequipmentmarkets.

NetsalesintheTransportationSolutionssegmentincreased$261million,or4.3%,infiscal2015ascomparedtofiscal2014asaresultofsalescontributionsfromacquisitionsof9.3%andorganicnetsalesgrowthof4.1%,partiallyoffsetbythenegativeimpactofforeigncurrencytranslationof9.1%.

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Fiscal 2016 2015 2014 ($inmillions) Automotive $ 4,912 75% $ 4,780 75% $ 4,995 82%CommercialTransportation 825 13 820 13 893 15Sensors 766 12 751 12 202 3Total $ 6,503 100% $ 6,351 100% $ 6,090 100%

(1) Industryendmarketinformationispresentedconsistentlywithourinternalmanagementreportingandmayberevisedperiodicallyasmanagementdeemsnecessary.

Fiscal 2016 2015 ChangeinNetSalesversusPriorFiscalYear ChangeinNetSalesversusPriorFiscalYear Total Translation Acquisition Organic Total Translation Acquisitions Organic ($inmillions) Automotive $ 132 2.8% $ (134) $ — $ 266 5.6% $ (215) (4.3)% $ (469) $ — $ 254 5.1%CommercialTransportation 5 0.6 (16) — 21 2.6 (73) (8.2) (66) — (7) (0.8)Sensors 15 2.0 (24) 16 23 3.1 549 271.8 (21) 567 3 1.9Total $ 152 2.4% $ (174) $ 16 $ 310 4.9% $ 261 4.3% $ (556) $ 567 $ 250 4.1%

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MeasurementSpecialtiescontributednetsalesof$548millionduringfiscal2015.Ourorganicnetsalesbyprimaryindustryendmarketwereasfollows:

• Automotive—Ourorganicnetsalesincreased5.1%infiscal2015withgrowthof8.2%intheAsia–Pacificregion,4.4%intheEMEAregion,and0.8%intheAmericasregion.GrowthintheAsia–PacificandEMEAregionsandNorthAmericawasdrivenprimarilybyincreasedcontentpervehicle.ThisgrowthwaspartiallyoffsetbyweaknessinSouthAmericadrivenbylowerproductionvolumesinBrazil.

• Commercialtransportation—Ourorganicnetsalesdecreased0.8%infiscal2015duetolowerdemandintheagriculturemarketacrossallregions,partiallyoffsetbygrowthintheheavytruckmarketindevelopedcountries.

• Sensors—Ourorganicnetsalesincreased1.9%infiscal2015dueprimarilytoincreasedsalesintheautomotivemarketresultingfromnewproductlaunchesinChinaandincreasedvolumeinJapan,partiallyoffsetbymarketweaknessinKoreaandEasternEurope.

Operating Income. ThefollowingtablepresentstheTransportationSolutionssegment'soperatingincomeandoperatingmargininformation:

TheTransportationSolutionssegment'soperatingincomeincludedthefollowing:

OperatingincomeintheTransportationSolutionssegmentwasflatinfiscal2016ascomparedtofiscal2015.Excludingtheitemspresentedinthetableabove,operatingincomedecreasedinfiscal2016primarilyasaresultofpriceerosionandthenegativeimpactofchangesinforeigncurrencyexchangerates,partiallyoffsetbylowermaterialcosts.

Infiscal2015,operatingincomeintheTransportationSolutionssegmentdecreased$52millionascomparedtofiscal2014.Excludingtheitemspresentedinthetableabove,operatingincomeincreasedinfiscal2015dueprimarilytohighervolumeandimprovedmanufacturingproductivity,partiallyoffsetbythenegativeimpactofchangesinforeigncurrencyexchangeratesandpriceerosion.

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Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 ($inmillions) Operatingincome $ 1,191 $ 1,193 $ 1,245 $ (2) $ (52)Operatingmargin 18.3% 18.8% 20.4% (0.5)% (1.6)%

Fiscal 2016 2015 2014 (inmillions) Acquisitionrelatedcharges: Acquisitionandintegrationcosts $ 9 $ 28 $ 4Chargesassociatedwiththeamortizationofacquisition-relatedfairvalueadjustments — 30 —Restructuringchargesrelatedtoacquisitions — 3 —

9 61 4Restructuringandothercharges,net 46 39 4Total $ 55 $ 100 $ 8

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IndustrialSolutions

Net Sales. ThefollowingtablepresentstheIndustrialSolutionssegment'snetsalesandthepercentageoftotalnetsalesbyprimaryindustryendmarket(1):

ThefollowingtableprovidesananalysisofthechangeintheIndustrialSolutionssegment'snetsalescomparedtothepriorfiscalyearbyprimaryindustryendmarket:

NetsalesintheIndustrialSolutionssegmentincreased$36million,or1.1%,infiscal2016ascomparedtofiscal2015duetosalescontributionsfromacquisitionsof5.9%,partiallyoffsetbyorganicnetsalesdeclinesof2.8%andthenegativeimpactofforeigncurrencytranslationof2.0%.Fiscal2016includedanadditionalweekwhichcontributed$65millioninnetsales.Ourorganicnetsalesbyprimaryindustryendmarketwereasfollows:

• Industrialequipment—Ourorganicnetsalesdecreased5.2%infiscal2016asaresultofmarketweaknessintheAmericasandAsia–Pacificregions.

• Aerospace,defense,oil,andgas—Ourorganicnetsalesdecreased3.8%infiscal2016.Thedecreasewasattributabletodeclinesintheoilandgasmarket,partiallyoffsetbygrowthintheaerospaceanddefensemarket.Intheoilandgasmarket,ourorganicnetsalesdecreasewasduetocontinuedmarketweaknessresultingfromdeclinesinoilprices.Intheaerospaceanddefensemarket,ourorganicnetsalesincreaseddueprimarilytostrengthinourcommercialaerospacebusinessresultingfromcustomergrowthandmarketsharegains.

• Energy—Ourorganicnetsalesincreased3.6%infiscal2016primarilyasaresultofgrowthintheAmericasandEMEAregions.

IntheIndustrialSolutionssegment,netsalesdecreased$123million,or3.7%,infiscal2015fromfiscal2014dueprimarilytothenegativeimpactofforeigncurrencytranslationof7.8%,partiallyoffsetbysalescontributionsfromacquisitionsof4.3%.Ourorganicnetsalesbyprimaryindustryendmarketwereasfollows:

• Industrialequipment—Ourorganicnetsalesincreased0.9%infiscal2015asgrowthintheAsia–PacificandEMEAregionswaspartiallyoffsetbylowerdemandintheAmericasregion.

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Fiscal 2016 2015 2014 ($inmillions) IndustrialEquipment $ 1,419 44% $ 1,323 42% $ 1,364 41%Aerospace,Defense,Oil,andGas 1,100 34 1,151 36 1,140 35Energy 696 22 705 22 798 24Total $ 3,215 100% $ 3,179 100% $ 3,302 100%

(1) Industryendmarketinformationispresentedconsistentlywithourinternalmanagementreportingandmayberevisedperiodicallyasmanagementdeemsnecessary.

Fiscal 2016 2015 ChangeinNetSalesversusPriorFiscalYear ChangeinNetSalesversusPriorFiscalYear Total Translation Acquisitions Organic Total Translation Acquisitions Organic ($inmillions) IndustrialEquipment $ 96 7.3%$ (14) $ 179 $ (69) (5.2)%$ (41) (3.0)%$ (96) $ 43 $ 12 0.9%Aerospace,Defense,Oil,andGas (51) (4.4) (15) 9 (45) (3.8) 11 1.0 (71) 99 (17) (1.5)Energy (9) (1.3) (34) — 25 3.6 (93) (11.7) (91) — (2) (0.3)Total $ 36 1.1%$ (63) $ 188 $ (89) (2.8)%$ (123) (3.7)%$ (258) $ 142 $ (7) (0.2)%

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• Aerospace,defense,oil,andgas—Ourorganicnetsalesdecreased1.5%infiscal2015dueprimarilytoweaknessintheoilandgasmarketresultingfromoilpricedeclinesandmarketuncertainty,partiallyoffsetbycontinuedstrengthinourcommercialaerospacebusiness.

• Energy—Ourorganicnetsaleswereflatinfiscal2015asgrowthintheAmericasregionwasoffsetbydeclinesintheAsia–Pacificregion.

Operating Income. ThefollowingtablepresentstheIndustrialSolutionssegment'soperatingincomeandoperatingmargininformation:

TheIndustrialSolutionssegment'soperatingincomeincludedthefollowing:

OperatingincomeintheIndustrialSolutionssegmentdecreased$9millioninfiscal2016ascomparedtofiscal2015.Excludingtheitemspresentedinthetableabove,operatingincomedecreasedinfiscal2016dueprimarilytounfavorableproductmixandpriceerosion,partiallyoffsetbylowermaterialcosts.

Infiscal2015,operatingincomeintheIndustrialSolutionssegmentdecreased$79millionascomparedtofiscal2014.Excludingtheitemspresentedinthetableabove,operatingincomedecreasedinfiscal2015primarilyasaresultofthenegativeimpactofchangesinforeigncurrencyexchangeratesandpriceerosion.

37

Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 ($inmillions) Operatingincome $ 343 $ 352 $ 431 $ (9) $ (79)Operatingmargin 10.7% 11.1% 13.1% (0.4)% (2.0)%

Fiscal 2016 2015 2014 (inmillions) Acquisitionrelatedcharges: Acquisitionandintegrationcosts $ 13 $ 27 $ 27Chargesassociatedwiththeamortizationofacquisition-relatedfairvalueadjustments 10 6 4

23 33 31Restructuringandothercharges,net 31 44 7Total $ 54 $ 77 $ 38

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CommunicationsSolutions

Net Sales. ThefollowingtablepresentstheCommunicationsSolutionssegment'snetsalesandthepercentageoftotalnetsalesbyprimaryindustryendmarket(1):

ThefollowingtableprovidesananalysisofthechangeintheCommunicationsSolutionssegment'snetsalescomparedtothepriorfiscalyearbyprimaryindustryendmarket:

Infiscal2016,netsalesintheCommunicationsSolutionssegmentdecreased$183million,or6.8%,ascomparedtofiscal2015duetosalesdeclinesresultingfromadivestitureof4.6%,organicnetsalesdeclinesof1.6%,andthenegativeimpactofforeigncurrencytranslationof0.6%.Fiscal2016includedanadditionalweekwhichcontributed$43millioninnetsales.Ourorganicnetsalesbyprimaryindustryendmarketwereasfollows:

• Dataanddevices—Ourorganicnetsalesdecreased17.8%infiscal2016asaresultofstrategicexitofcertainlowmarginproductlinesandmarketweaknessinallregions.

• Subseacommunications—Ourorganicnetsalesincreased24.8%infiscal2016duetoincreasedlevelsofprojectactivity.

• Appliances—Ourorganicnetsalesdecreased1.8%infiscal2016dueprimarilytohighinventorylevelsatdistributorsinthefirsthalfoftheyearandlowerdemandintheAsia–PacificandAmericasregions,partiallyoffsetbygrowthintheEMEAregion.

NetsalesintheCommunicationsSolutionssegmentincreased$122million,or4.7%,infiscal2015ascomparedtofiscal2014asaresultoforganicnetsalesgrowthof8.4%,partiallyoffsetbythenegativeimpactofforeigncurrencytranslationof3.7%.Ourorganicnetsalesbyprimaryindustryendmarketwereasfollows:

• Dataanddevices—Ourorganicnetsalesdecreased13.6%infiscal2015duetocontinueddeclinesinoursalesinthefeaturephoneandtabletcomputermarkets,weakdemandinthesmartphonebusiness,andtheexitofcertainlowmarginproductlines.

• Subseacommunications—Ourorganicnetsalesincreased150.5%infiscal2015asaresultofincreasedlevelsofprojectactivity.

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Fiscal 2016 2015 2014 ($inmillions) DataandDevices $ 1,020 40% $ 1,357 50% $ 1,641 64%SubseaCommunications 885 35 709 26 283 11Appliances 615 25 637 24 657 25Total $ 2,520 100% $ 2,703 100% $ 2,581 100%

(1) Industryendmarketinformationispresentedconsistentlywithourinternalmanagementreportingandmayberevisedperiodicallyasmanagementdeemsnecessary.

Fiscal 2016 2015 ChangeinNetSalesversusPriorFiscalYear ChangeinNetSalesversusPriorFiscalYear Total Translation Divestiture Organic Total Translation Organic ($inmillions) DataandDevices $ (337) (24.8)% $ (6) $ (123) $ (208) (17.8)% $ (284) (17.3)% $ (60) $ (224) (13.6)%SubseaCommunications 176 24.8 — — 176 24.8 426 150.5 — 426 150.5Appliances (22) (3.5) (11) — (11) (1.8) (20) (3.0) (35) 15 2.3Total $ (183) (6.8)% $ (17) $ (123) $ (43) (1.6)% $ 122 4.7% $ (95) $ 217 8.4%

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• Appliances—Ourorganicnetsalesincreased2.3%infiscal2015withincreaseddemandintheEMEAregionandareboundintheU.S.market,partiallyoffsetbylowerdemandintheAsia–Pacificregion.

Operating Income. ThefollowingtablepresentstheCommunicationsSolutionssegment'soperatingincomeandoperatingmargininformation:

TheCommunicationsSolutionssegment'soperatingincomeincludedthefollowing:

OperatingincomeintheCommunicationsSolutionssegmentincreased$164millioninfiscal2016ascomparedtofiscal2015,primarilyasaresultofthedivestitureoftheCPDbusiness.Excludingtheitemspresentedinthetableabove,operatingincomeincreasedinfiscal2016asaresultoflowermaterialcostsandsavingsattributabletorestructuringactions,partiallyoffsetbytheimpactofunfavorableproductmix,lowervolume,andpriceerosion.

Infiscal2015,operatingincomeintheCommunicationsSolutionssegmentincreased$75millionascomparedtofiscal2014.Excludingtheitemspresentedinthetableabove,operatingincomeincreasedinfiscal2015,dueprimarilytoimprovedmanufacturingproductivity,partiallyoffsetbypriceerosion.

LiquidityandCapitalResources

Thefollowingtablesummarizesourcashflowfromoperating,investing,andfinancingactivities,asreflectedontheConsolidatedStatementsofCashFlows:

Ourabilitytofundourfuturecapitalneedswillbeaffectedbyourabilitytocontinuetogeneratecashfromoperationsandmaybeaffectedbyourabilitytoaccessthecapitalmarkets,moneymarkets,orothersourcesoffunding,aswellasthecapacityandtermsofourfinancingarrangements.Webelievethatcashgeneratedfromoperationsand,totheextentnecessary,theseothersourcesofpotentialfundingwillbesufficienttomeetouranticipatedcapitalneedsfortheforeseeablefuture.Wemayuseexcesscashtopurchaseaportionofourcommonsharespursuanttoourauthorizedsharerepurchaseprogram;toacquirestrategicbusinessesorproductlines;topaydistributionsordividends

39

Fiscal

Fiscal2016versus2015

Fiscal2015versus2014

2016 2015 2014 ($inmillions) Operatingincome $ 368 $ 204 $ 129 $ 164 $ 75Operatingmargin 14.6% 7.5% 5.0% 7.1% 2.5%

Fiscal 2016 2015 2014 (inmillions)

Restructuringandothercharges(credits),net $ (75)(1) $ 66 $ 8

(1) Includespre-taxgainof$144milliononthesaleofourCPDbusinessduringfiscal2016.

Fiscal 2016 2015 2014 (inmillions) Netcashprovidedbyoperatingactivities $ 1,922 $ 1,913 $ 2,083Netcashprovidedby(usedin)investingactivities (1,581) 636 (1,075)Netcashprovidedby(usedin)financingactivities (3,030) (1,606) 65Effectofcurrencytranslationoncash 7 (71) (19)Netincrease(decrease)incashandcashequivalents $ (2,682) $ 872 $ 1,054

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onourcommonshares;ortoreduceouroutstandingdebt,includingthroughthepossiblerepurchaseofourdebtinaccordancewithapplicablelaw.Thecostoravailabilityoffuturefundingmaybeimpactedbyfinancialmarketconditions.Wewillcontinuetomonitorfinancialmarketsandrespondasnecessarytochangingconditions.

Asoffiscalyearend2016,ourcashandcashequivalentswereheldinsubsidiarieswhicharelocatedinvariouscountriesthroughouttheworld.Undercurrentapplicablelaws,substantiallyalloftheseamountscanberepatriatedtoTycoElectronicsGroupS.A.("TEGSA"),ourLuxembourgsubsidiary,whichistheobligorofsubstantiallyallofourdebt,andtoTEConnectivityLtd.,ourSwissparentcompany;however,therepatriationoftheseamountscouldsubjectustoadditionaltaxexpense.WeprovidefortaxliabilitiesontheConsolidatedFinancialStatementswithrespecttoamountsthatweexpecttorepatriate;however,notaxliabilitiesarerecordedforamountsthatweconsidertoberetainedindefinitelyandreinvestedinourglobalmanufacturingoperations.Asoffiscalyearend2016,wehadapproximately$6.9billionofcash,cashequivalents,andintercompanydeposits,principallyinoursubsidiaries,thatwehavetheabilitytodistributetoTEGSAandTEConnectivityLtd.butweconsidertobepermanentlyreinvested.Weestimatethatuptoapproximately$1.5billionoftaxexpensewouldberecognizedontheConsolidatedFinancialStatementsifourintentiontopermanentlyreinvesttheseamountsweretochange.Ourcurrentplansdonotdemonstrateaneedtorepatriatecash,cashequivalents,andintercompanydepositsthataredesignatedaspermanentlyreinvestedinordertofundouroperations,includinginvestingandfinancingactivities.

CashFlowsfromOperatingActivities

Netcashprovidedbycontinuingoperatingactivitieswas$2,019millioninfiscal2016ascomparedto$1,619millioninfiscal2015.Theincreaseresultedprimarilyfromfavorableeffectsofchangesinaccountsreceivableandinventorylevels,partiallyoffsetbyanincreaseinnetpaymentsrelatedtopre-separationtaxmatters.

Netcashprovidedbycontinuingoperatingactivitiesdecreased$185millionto$1,619millioninfiscal2015ascomparedto$1,804millioninfiscal2014.Thedecreaseresultedprimarilyfromtheunfavorableeffectsofchangesinworkingcapitallevels,partiallyoffsetbyadecreaseinnetpaymentsrelatedtopre-separationtaxmatters.

Pensioncontributionsinfiscal2016,2015,and2014were$67million,$66million,and$87million,respectively.Weexpectpensioncontributionstobe$54millioninfiscal2017,beforeconsiderationofanyvoluntarycontributions.Therewerenovoluntarypensioncontributionsinfiscal2016,2015,and2014.

Theamountofincometaxespaid,netofrefunds,duringfiscal2016,2015,and2014was$806million,$350million,and$259million,respectively.Infiscal2016and2015,thesepaymentsincluded$471millionand$47million,respectively,fortaxdeficienciesrelatedtopre-separationtaxmatters.Alsoduringfiscal2016and2015,wereceivednetreimbursementsof$321millionand$7million,respectively,fromTycoInternationalandCovidienpursuanttotheirindemnificationsforpre-separationtaxmatters.Duringfiscal2014,wemadenetpaymentsof$179milliontoTycoInternationalandCovidienpursuanttoourindemnificationsforpre-separationtaxmatters.SeeNote12totheConsolidatedFinancialStatementsforadditionalinformationrelatedtopre-separationtaxmatters.

Inadditiontonetcashprovidedbyoperatingactivities,weusefreecashflow,anon-GAAPfinancialmeasure,asausefulmeasureofourabilitytogeneratecash.Freecashflowwas$1,585millioninfiscal2016ascomparedto$1,076millioninfiscal2015and$1,477millioninfiscal2014.Theincreaseinfreecashflowinfiscal2016ascomparedtofiscal2015wasdrivenprimarilybyfavorableeffectsofchangesinaccountsreceivableandinventorylevels.Thedecreaseinfreecashflowinfiscal2015ascomparedtofiscal2014wasdrivenprimarilybythechangesinnetcashprovidedbycontinuingoperatingactivitiesdiscussedaboveandhigherproceedsfromthesaleofproperty,plant,andequipmentinfiscal2014.

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Thefollowingtablesetsforthareconciliationofnetcashprovidedbycontinuingoperatingactivities,themostcomparableGAAPfinancialmeasure,tofreecashflow.

CashFlowsfromInvestingActivities

Capitalexpenditureswere$628million,$600million,and$635millioninfiscal2016,2015,and2014,respectively.Weexpectfiscal2017capitalspendinglevelstobeapproximately5%ofnetsales.Webelieveourcapitalfundinglevelsareadequatetosupportnewprograms,andwecontinuetoinvestinourmanufacturinginfrastructuretofurtherenhanceproductivityandmanufacturingcapabilities.

Proceedsfromthesaleofproperty,plant,andequipmentforfiscal2014includedapproximately$100millionrelatedtothesaleofrealestate.

Duringfiscal2016,weacquiredfourbusinesses,includingCreganna,foracombinedcashpurchasepriceof$1.3billion,netofcashacquired.Duringfiscal2015,weacquiredMeasurementSpecialties.Thetotalvaluepaidforthetransactionwasapproximately$1.7billion,netofcashacquired,andincluded$225millionfortherepaymentofMeasurementSpecialties'debtandaccruedinterest.Alsoduringfiscal2015,weacquiredthreeadditionalbusinessesfor$241millionincash,netofcashacquired.Duringfiscal2014,weacquiredfivebusinessesfor$522millionincash,netofcashacquired.SeeadditionalinformationinNote5totheConsolidatedFinancialStatements.

Duringfiscal2016,wereceivednetcashproceedsof$333millionrelatedtothesaleofourCPDbusiness.SeeadditionalinformationinNote3totheConsolidatedFinancialStatements.

Duringfiscal2015,wereceivednetcashproceedsof$3.0billionrelatedtothesaleofourBNSbusiness.SeeadditionalinformationinNote4totheConsolidatedFinancialStatements.

CashFlowsfromFinancingActivitiesandCapitalization

Totaldebtatfiscalyearend2016and2015was$4,070millionand$3,884million,respectively.SeeNote11totheConsolidatedFinancialStatementsforadditionalinformationregardingdebt.

DuringJanuary2016,TEGSA,our100%-ownedsubsidiary,issued$350millionaggregateprincipalamountof3.700%seniornotesdueFebruary15,2026.ThenotesareTEGSA'sunsecuredseniorobligationsandrankequallyinrightofpaymentwithallexistingandanyfutureseniorindebtednessofTEGSAandseniortoanysubordinatedindebtednessthatTEGSAmayincur.

TEGSAhasafive-yearunsecuredseniorrevolvingcreditfacility("CreditFacility")withtotalcommitmentsof$1,500million.TheCreditFacilitywasamendedinDecember2015primarilytoextendthematuritydatefromAugust2018toDecember2020.TEGSAhadnoborrowingsundertheCreditFacilityatfiscalyearend2016and2015.

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Fiscal 2016 2015 2014 (inmillions) Netcashprovidedbycontinuingoperatingactivities $ 2,019 $ 1,619 $ 1,804Excluding: Paymentsrelatedtopre-separationU.S.taxmatters,net 150 40 179PaymentsrelatedtoincometaxesonthesaleoftheBNSbusiness 36 — —

Capitalexpenditures (628) (600) (635)Proceedsfromsaleofproperty,plant,andequipment 8 17 129Freecashflow $ 1,585 $ 1,076 $ 1,477

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TheCreditFacilitycontainsafinancialratiocovenantprovidingthatif,asofthelastdayofeachfiscalquarter,ourratioofConsolidatedTotalDebttoConsolidatedEBITDA(asdefinedintheCreditFacility)forthethenmostrecentlyconcludedperiodoffourconsecutivefiscalquartersexceeds3.75to1.0,anEventofDefault(asdefinedintheCreditFacility)istriggered.TheCreditFacilityandourotherdebtagreementscontainothercustomarycovenants.Noneofourcovenantsarepresentlyconsideredrestrictivetoouroperations.Asoffiscalyearend2016,wewereincompliancewithallofourdebtcovenantsandbelievethatwewillcontinuetobeincompliancewithourexistingcovenantsfortheforeseeablefuture.

Periodically,TEGSAissuescommercialpapertoU.S.institutionalaccreditedinvestorsandqualifiedinstitutionalbuyersinaccordancewithavailableexemptionsfromtheregistrationrequirementsoftheSecuritiesActof1933aspartofourongoingefforttomaintainfinancialflexibilityandtopotentiallydecreasethecostofborrowings.BorrowingsunderthecommercialpaperprogramarebackedbytheCreditFacility.

TEGSA'spaymentobligationsunderitsseniornotes,commercialpaper,andCreditFacilityarefullyandunconditionallyguaranteedbyitsparent,TEConnectivityLtd.

Paymentsofcommonsharedividendstoshareholderswere$509million,$502million,and$443millioninfiscal2016,2015,and2014,respectively.SeeNote18totheConsolidatedFinancialStatementsforadditionalinformationregardingdividendsandcashdistributionsonourcommonshares.

Futuredividendsonourcommonsharesorreductionsofregisteredsharecapitalfordistributiontoshareholders,ifany,mustbeapprovedbyourshareholders.Inexercisingtheirdiscretiontorecommendtotheshareholdersthatsuchdividendsordistributionsbeapproved,ourboardofdirectorswillconsiderourresultsofoperations,cashrequirementsandsurplus,financialcondition,statutoryrequirementsofapplicablelaw,contractualrestrictions,andotherfactorsthattheymaydeemrelevant.

Duringfiscal2016,ourboardofdirectorsauthorizedanincreaseof$1.0billioninthesharerepurchaseprogram.Werepurchasedapproximately43millionofourcommonsharesfor$2,610million,18millionofourcommonsharesfor$1,163million,and11millionofourcommonsharesfor$604millionunderthesharerepurchaseprogramduringfiscal2016,2015,and2014,respectively.Atfiscalyearend2016,wehad$1.1billionofavailabilityremainingunderoursharerepurchaseauthorization.

CommitmentsandContingencies

Thefollowingtableprovidesasummaryofourcontractualobligationsandcommitmentsfordebt,minimumleasepaymentobligationsundernon-cancelableleases,andotherobligationsatfiscalyearend2016:

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PaymentsDuebyFiscalYear Total 2017 2018 2019 2020 2021 Thereafter (inmillions)

Debt(1) $ 4,061 $ 331 $ 708 $ 576 $ 1 $ 250 $ 2,195Interestpaymentsondebt(2) 1,228 152 129 102 92 86 667Operatingleases 444 106 86 66 47 41 98Purchaseobligations(3) 324 309 8 2 1 — 4Totalcontractualcashobligations(4)(5)(6) $ 6,057 $ 898 $ 931 $ 746 $ 141 $ 377 $ 2,964

(1) Debtrepresentsprincipalpayments.SeeNote11totheConsolidatedFinancialStatementsforadditionalinformationregardingdebt.

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LegalProceedings

Inthenormalcourseofbusiness,wearesubjecttovariouslegalproceedingsandclaims,includingpatentinfringementclaims,productliabilitymatters,employmentdisputes,disputesonagreements,othercommercialdisputes,environmentalmatters,antitrustclaims,andtaxmatters,includingnon-incometaxmatterssuchasvalueaddedtax,salesandusetax,realestatetax,andtransfertax.Althoughitisnotfeasibletopredicttheoutcomeoftheseproceedings,baseduponourexperience,currentinformation,andapplicablelaw,wedonotexpectthattheoutcomeoftheseproceedings,eitherindividuallyorintheaggregate,willhaveamaterialeffectonourresultsofoperations,financialposition,orcashflows.

Off-BalanceSheetArrangements

Incertaininstances,wehaveguaranteedtheperformanceofthirdpartiesandprovidedfinancialguaranteesforuncompletedworkandfinancialcommitments.Thetermsoftheseguaranteesvarywithenddatesrangingfromfiscal2017throughthecompletionofsuchtransactions.Theguaranteeswouldbetriggeredintheeventofnonperformance,andthepotentialexposurefornonperformanceundertheguaranteeswouldnothaveamaterialeffectonourresultsofoperations,financialposition,orcashflows.

Indisposingofassetsorbusinesses,weoftenproviderepresentations,warranties,and/orindemnitiestocovervariousrisksincludingunknowndamagetoassets,environmentalrisksinvolvedinthesaleofrealestate,liabilityforinvestigationandremediationofenvironmentalcontaminationatwastedisposalsitesandmanufacturingfacilities,andunidentifiedtaxliabilitiesandlegalfeesrelatedtoperiodspriortodisposition.Wedonotexpectthattheseuncertaintieswillhaveamaterialadverseeffectonourresultsofoperations,financialposition,orcashflows.

Atfiscalyearend2016,wehadoutstandinglettersofcredit,lettersofguarantee,andsuretybondsof$324million.

Inthenormalcourseofbusiness,weareliableforcontractcompletionandproductperformance.Intheopinionofmanagement,suchobligationswillnotsignificantlyaffectourresultsofoperations,financialposition,orcashflows.

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(2) Interestpaymentsexcludetheimpactofourinterestrateswaps.

(3) Purchaseobligationsconsistprimarilyofcommitmentsforpurchasesofgoodsandservices.

(4) Thetableabovedoesnotreflectunrecognizedincometaxbenefitsof$490millionandrelatedaccruedinterestandpenaltiesof$54million,thetimingofwhichisuncertain.SeeNote15totheConsolidatedFinancialStatementsforadditionalinformationregardingunrecognizedincometaxbenefits,interest,andpenalties.

(5) Thetableabovedoesnotreflectpensionobligationstocertainemployeesandformeremployees.Weareobligatedtomakecontributionstoourpensionplans;however,weareunabletodeterminetheamountofplancontributionsduetotheinherentuncertaintiesofobligationsofthistype,includingtiming,interestratecharges,investmentperformance,andamountsofbenefitpayments.Weexpecttocontribute$54milliontopensionplansinfiscal2017,beforeconsiderationofvoluntarycontributions.TheseplansandourestimatesoffuturecontributionsandbenefitpaymentsaremorefullydescribedinNote14totheConsolidatedFinancialStatements.

(6) Otherlong-termliabilitiesof$362millionareexcludedfromthetableaboveasweareunabletoestimatethetimingofpaymentfortheseitems.

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CriticalAccountingPoliciesandEstimates

ThepreparationoftheConsolidatedFinancialStatementsinconformitywithGAAPrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilities,thedisclosureofcontingentassetsandliabilities,andthereportedamountsofrevenueandexpenses.OursignificantaccountingpoliciesaresummarizedinNote2totheConsolidatedFinancialStatements.Thefollowingaccountingpoliciesareconsideredtobethemostcriticalastheyrequiresignificantjudgmentsandassumptionsthatinvolveinherentrisksanduncertainties.Management'sestimatesarebasedontherelevantinformationavailableattheendofeachperiod.

RevenueRecognition

OurrevenuerecognitionpoliciesareinaccordancewithAccountingStandardsCodification("ASC")605,RevenueRecognition.Ourrevenuesaregeneratedprincipallyfromthesaleofourproducts.Revenuefromthesaleofproductsisrecognizedatthetimetitleandtherisksandrewardsofownershippasstothecustomer.Thisgenerallyoccurswhentheproductsreachtheshippingpoint,thesalespriceisfixedanddeterminable,andcollectionisreasonablyassured.Areserveforestimatedreturnsisestablishedatthetimeofsalebasedonhistoricalreturnexperienceandisrecordedasareductionofsales.Otherallowancesincludecustomerquantityandpricediscrepancies.Areserveforotherallowancesisgenerallyestablishedatthetimeofsalebasedonhistoricalexperienceandalsoisrecordedasareductionofsales.

Contractrevenuesforconstructionrelatedprojects,whicharegeneratedintheCommunicationsSolutionssegment,arerecordedprimarilyusingthepercentage-of-completionmethod.Profitsrecognizedoncontractsinprocessarebaseduponestimatedcontractrevenueandrelatedcosttocomplete.Percentage-of-completionismeasuredbasedontheratioofactualcostsincurredtototalestimatedcosts.Revisionsincostestimatesascontractsprogresshavetheeffectofincreasingordecreasingprofitsinthecurrentperiod.Provisionsforanticipatedlossesaremadeintheperiodinwhichtheyfirstbecomedeterminable.Inaddition,provisionsforcreditlossesrelatedtoconstructionrelatedprojectsarerecordedasreductionsofrevenueintheperiodinwhichtheyfirstbecomedeterminable.

GoodwillandOtherIntangibleAssets

Intangibleassetsincludebothindeterminable-livedresidualgoodwillanddeterminable-livedidentifiableintangibleassets.Intangibleassetswithadeterminablelifeprimarilyincludeintellectualproperty,consistingofpatents,trademarks,andunpatentedtechnology,aswellascustomerrelationships.Recoverabilityestimatesrangefrom1to50yearsandcostsaregenerallyamortizedonastraight-linebasis.Anevaluationoftheremainingusefullifeofdeterminable-livedintangibleassetsisperformedonaperiodicbasisandwheneventsandcircumstanceswarrantanevaluation.

Wetestforgoodwillimpairmentatthereportingunitlevel.Areportingunitisgenerallyanoperatingsegmentoronelevelbelowanoperatingsegmentthatconstitutesabusinessforwhichdiscretefinancialinformationisavailableandregularlyreviewedbysegmentmanagement.Atfiscalyearend2016,wehadsixreportingunits,fiveofwhichcontainedgoodwill.Thereweretworeportingunitsineachofourthreesegments.Whenchangesoccurinthecompositionofoneormorereportingunits,goodwillisreassignedtothereportingunitsaffectedbasedontheirrelativefairvalues.Wereviewourreportingunitstructureeachyearaspartofourannualgoodwillimpairmenttest,ormorefrequentlybasedonchangesinourstructure.

Goodwillimpairmentisevaluatedbycomparingthecarryingvalueofeachreportingunittoitsfairvalueonthefirstdayofthefourthfiscalquarterofeachyearorwheneverwebelieveatriggeringeventrequiringamorefrequentassessmenthasoccurred.Inassessingtheexistenceofatriggeringevent,managementreliesonanumberofreportingunit-specificfactorsincludingoperatingresults,

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businessplans,economicprojections,anticipatedfuturecashflows,transactions,andmarketplacedata.Thereareinherentuncertaintiesrelatedtothesefactorsandmanagement'sjudgmentinapplyingthesefactorstotheimpairmentanalysis.

Whentestingforgoodwillimpairment,weperformastepIgoodwillimpairmenttesttoidentifypotentialimpairmentbycomparingthefairvalueofareportingunitwithitscarryingamount.Ifthecarryingamountofareportingunitexceedsitsfairvalue,goodwillmaybeimpairedandastepIIgoodwillimpairmenttestisperformedtomeasuretheamountofimpairment,ifany.InthestepIIgoodwillimpairmenttest,wecomparetheimpliedfairvalueofreportingunitgoodwillwiththecarryingamountofthatgoodwill.Ifthecarryingamountofreportingunitgoodwillexceedstheimpliedfairvalueofthatgoodwill,animpairmentlossisrecognizedinanamountequaltotheexcess.Theimpliedfairvalueofgoodwillisdeterminedinamannerconsistentwithhowgoodwillisrecognizedinabusinesscombination.Weallocatethefairvalueofareportingunittoalloftheassetsandliabilitiesofthatunit,includingintangibleassets,asifthereportingunithadbeenacquiredinabusinesscombination.Anyexcessofthefairvalueofareportingunitovertheamountsassignedtoitsassetsandliabilitiesistheimpliedfairvalueofgoodwill.

FairvalueestimatesusedinthestepIgoodwillimpairmenttestsarecalculatedusinganincomeapproachbasedonthepresentvalueoffuturecashflowsofeachreportingunit.Theincomeapproachgenerallyhasbeensupportedbyguidelineanalyses(amarketapproach).Theseapproachesincorporateanumberofassumptionsincludingfuturegrowthrates,discountrates,incometaxrates,andmarketactivityinassessingfairvalueandarereportingunitspecific.Changesineconomicandoperatingconditionsimpactingtheseassumptionscouldresultingoodwillimpairmentsinfutureperiods.

Wecompletedourannualgoodwillimpairmenttestinthefourthquarteroffiscal2016anddeterminedthatnoimpairmentexisted.

IncomeTaxes

Indeterminingincomeforfinancialstatementpurposes,wemustmakecertainestimatesandjudgments.Theseestimatesandjudgmentsaffectthecalculationofcertaintaxliabilitiesandthedeterminationoftherecoverabilityofcertaindeferredtaxassets,whicharisefromtemporarydifferencesbetweentheincometaxreturnandfinancialstatementrecognitionofrevenueandexpense.

Inevaluatingourabilitytorecoverourdeferredtaxassets,weconsiderallavailablepositiveandnegativeevidenceincludingourpastoperatingresults,theexistenceofcumulativelossesinthemostrecentyears,andourforecastoftaxableincome.Inestimatingfuturetaxableincome,wedevelopassumptionsincludingtheamountoffuturestate,federal,andnon-U.S.pre-taxoperatingincome,thereversaloftemporarydifferences,andtheimplementationoffeasibleandprudenttaxplanningstrategies.Theseassumptionsrequiresignificantjudgmentabouttheforecastsoftaxableincomeandareconsistentwiththeplansandestimatesweareusingtomanagetheunderlyingbusinesses.

Wecurrentlyhaverecordedsignificantvaluationallowancesthatweintendtomaintainuntilitismorelikelythannotthedeferredtaxassetswillberealized.Ourincometaxexpenserecordedinthefuturewillbereducedtotheextentofdecreasesinourvaluationallowances.Therealizationofourremainingdeferredtaxassetsisdependentprimarilyonfuturetaxableincomeintheappropriatejurisdictions.Anyreductioninfuturetaxableincomeincludinganyfuturerestructuringactivitiesmayrequirethatwerecordanadditionalvaluationallowanceagainstourdeferredtaxassets.Anincreaseinthevaluationallowancewouldresultinadditionalincometaxexpenseinsuchperiodandcouldhaveasignificantimpactonourfutureearnings.

Changesintaxlawsandratesalsocouldaffectrecordeddeferredtaxassetsandliabilitiesinthefuture.Managementisnotawareofanysuchchangesthatwouldhaveamaterialeffectonourresultsofoperations,financialposition,orcashflows.

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Inaddition,thecalculationofourtaxliabilitiesincludesestimatesforuncertaintiesintheapplicationofcomplextaxregulationsacrossmultipleglobaljurisdictionswhereweconductouroperations.UndertheuncertaintaxpositionprovisionsofASC740,IncomeTaxes,werecognizeliabilitiesfortaxandrelatedinterestforissuesintheU.S.andothertaxjurisdictionsbasedonourestimateofwhether,andtheextenttowhich,additionaltaxesandrelatedinterestwillbedue.Thesetaxliabilitiesandrelatedinterestarereflectednetoftheimpactofrelatedtaxlosscarryforwards,assuchtaxlosscarryforwardswillbeappliedagainstthesetaxliabilitiesandwillreducetheamountofcashtaxpaymentsdueupontheeventualsettlementwiththetaxauthorities.Theseestimatesmaychangeduetochangingfactsandcircumstances.Duetothecomplexityoftheseuncertainties,theultimateresolutionmayresultinasettlementthatdiffersfromourcurrentestimateofthetaxliabilitiesandrelatedinterest.ThesetaxliabilitiesandrelatedinterestarerecordedinincometaxesandaccruedandothercurrentliabilitiesontheConsolidatedBalanceSheets.

Pension

Ourdefinedbenefitpensionplanexpenseandobligationsaredevelopedfromactuarialassumptions.ThefundedstatusofourplansisrecognizedontheConsolidatedBalanceSheetsandismeasuredasthedifferencebetweenthefairvalueofplanassetsandtheprojectedbenefitobligationatthemeasurementdate.Theprojectedbenefitobligationrepresentstheactuarialpresentvalueofbenefitsprojectedtobepaiduponretirementfactoringinestimatedfuturecompensationlevels.Thefairvalueofplanassetsrepresentsthecurrentmarketvalueofcumulativecompanyandparticipantcontributionsmadetoirrevocabletrustfunds,heldforthesolebenefitofparticipants,whichareinvestedbythetrusteeofthefunds.Thebenefitsunderourdefinedbenefitpensionplansarebasedonvariousfactors,suchasyearsofserviceandcompensation.

Netperiodicpensionbenefitcostisbasedontheutilizationoftheprojectedunitcreditmethodofcalculationandischargedtoearningsonasystematicbasisovertheexpectedaverageremainingservicelivesofcurrentparticipants.

Twocriticalassumptionsindeterminingpensionexpenseandobligationsarethediscountrateandexpectedlong-termreturnonplanassets.Weevaluatetheseassumptionsatleastannually.Otherassumptionsreflectdemographicfactorssuchasretirement,mortality,andemployeeturnover.Theseassumptionsareevaluatedperiodicallyandupdatedtoreflectouractualexperience.Actualresultsmaydifferfromactuarialassumptions.Thediscountraterepresentsthemarketrateforhigh-qualityfixedincomeinvestmentsandisusedtocalculatethepresentvalueoftheexpectedfuturecashflowsforbenefitobligationstobepaidunderourpensionplans.Adecreaseinthediscountrateincreasesthepresentvalueofpensionbenefitobligations.Atfiscalyearend2016,a25basispointdecreaseinthediscountratewouldhaveincreasedthepresentvalueofourpensionobligationsby$127million;a25basispointincreasewouldhavedecreasedthepresentvalueofourpensionobligationsby$113million.Weconsiderthecurrentandexpectedassetallocationsofourpensionplans,aswellashistoricalandexpectedlong-termratesofreturnonthosetypesofplanassets,indeterminingtheexpectedlong-termrateofreturnonplanassets.A50basispointdecreaseorincreaseintheexpectedlong-termreturnonplanassetswouldhaveincreasedordecreased,respectively,ourfiscal2016pensionexpenseby$10million.

Thelong-termtargetassetallocationinourU.S.plans'mastertrustis10%equityand90%fixedincome.Assetre-allocationtomeetthattargetisoccurringoveramulti-yearperiodbasedonthefundedstatus,asdefinedbythePensionProtectionActof2006(the"PensionActFundedStatus"),oftheU.S.plans'mastertrustandmarketconditions.WeexpecttoreachourtargetallocationwhenthePensionActFundedStatusexceeds105%.BasedonthePensionActFundedStatusasoffiscalyearend2016,ourtargetassetallocationis45%equityand55%fixedincome.

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AccountingPronouncements

SeeNote2totheConsolidatedFinancialStatementsforinformationregardingrecentlyissuedandrecentlyadoptedaccountingpronouncements.

Non-GAAPFinancialMeasures

Organicnetsalesgrowthandfreecashflowarenon-GAAPmeasuresandshouldnotbeconsideredreplacementsforresultsinaccordancewithGAAP.Thesenon-GAAPmeasuresmaynotbecomparabletosimilarly-titledmeasuresreportedbyothercompanies.Theprimarylimitationofthesemeasuresisthattheyexcludethefinancialimpactofitemsthatwouldotherwiseeitherincreaseordecreaseourreportedresults.Thislimitationisbestaddressedbyusingthesenon-GAAPmeasuresincombinationwiththemostdirectlycomparableGAAPmeasuresinordertobetterunderstandtheamounts,character,andimpactofanyincreaseordecreaseinreportedamounts.Thefollowingprovidesadditionalinformationregardingthesenon-GAAPmeasures.

OrganicNetSalesGrowth

Organicnetsalesgrowthisausefulmeasureofourunderlyingresultsandtrendsinthebusiness.Itisalsoasignificantcomponentinourincentivecompensationplans.Thedifferencebetweenreportednetsalesgrowth(themostcomparableGAAPmeasure)andorganicnetsalesgrowthconsistsoftheimpactfromforeigncurrencyexchangerates,andacquisitionsanddivestitures,ifany.Organicnetsalesgrowthisausefulmeasureofourperformancebecauseitexcludesitemsthatarenotcompletelyundermanagement'scontrol,suchastheimpactofchangesinforeigncurrencyexchangerates,anditemsthatdonotreflecttheunderlyinggrowthofthecompany,suchasacquisitionanddivestitureactivity.Managementusesorganicnetsalesgrowthtomonitorandevaluateperformance.Also,managementusesorganicnetsalesgrowthtogetherwithGAAPmeasuressuchasnetsalesgrowthandoperatingincomeinitsdecisionmakingprocessesrelatedtotheoperationsofourreportablesegmentsandouroverallcompany.Webelievethatinvestorsbenefitfromhavingaccesstothesamefinancialmeasuresthatmanagementusesinevaluatingoperations.Thetablespresentedin"ResultsofOperations"and"SegmentResults"aboveprovidereconciliationsoforganicnetsalesgrowthtonetsalesgrowthcalculatedunderGAAP.

FreeCashFlow

Freecashflowisausefulmeasureofourabilitytogeneratecash.Thedifferencebetweennetcashprovidedbycontinuingoperatingactivities(themostcomparableGAAPmeasure)andfreecashflowconsistsmainlyofsignificantcashoutflowsandinflowsthatwebelieveareusefultoidentify.Webelievefreecashflowprovidesusefulinformationtoinvestorsasitprovidesinsightintotheprimarycashflowmetricusedbymanagementtomonitorandevaluatecashflowsgeneratedfromouroperations.

Freecashflowisdefinedasnetcashprovidedbycontinuingoperatingactivitiesexcludingvoluntarypensioncontributionsandthecashimpactofspecialitems,ifany,minusnetcapitalexpenditures.Voluntarypensioncontributionsareexcludedbecausethisactivityisdrivenbyeconomicfinancingdecisionsratherthanoperatingactivity.Certainspecialitems,includingnetpaymentsrelatedtopre-separationtaxmatters,arealsoexcludedbymanagementinevaluatingfreecashflow.Netcapitalexpendituresconsistofcapitalexpenditureslessproceedsfromthesaleofproperty,plant,andequipment.Theseitemsaresubtractedbecausetheyrepresentlong-termcommitments.

Inthecalculationoffreecashflow,wesubtractcertaincashitemsthatareultimatelywithinmanagement'sandtheboardofdirectors'discretiontodirectandmayimplythatthereislessormorecashavailableforourprogramsthanthemostcomparableGAAPmeasureindicates.Itshouldnotbeinferredthattheentirefreecashflowamountisavailableforfuturediscretionaryexpenditures,asour

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definitionoffreecashflowdoesnotconsidercertainnon-discretionaryexpenditures,suchasdebtpayments.Inaddition,wemayhaveotherdiscretionaryexpenditures,suchasdiscretionarydividends,sharerepurchases,andbusinessacquisitions,thatarenotconsideredinthecalculationoffreecashflow.

Thetablespresentedin"LiquidityandCapitalResources"aboveprovidereconciliationsoffreecashflowtocashflowsfromcontinuingoperatingactivitiescalculatedunderGAAP.

Forward-LookingInformation

CertainstatementsinthisAnnualReportare"forward-lookingstatements"withinthemeaningoftheU.S.PrivateSecuritiesLitigationReformActof1995.Thesestatementsarebasedonourmanagement'sbeliefsandassumptionsandoninformationcurrentlyavailabletoourmanagement.Forward-lookingstatementsinclude,amongothers,theinformationconcerningourpossibleorassumedfutureresultsofoperations,businessstrategies,financingplans,competitiveposition,potentialgrowthopportunities,potentialoperatingperformanceimprovements,acquisitions,divestitures,theeffectsofcompetition,andtheeffectsoffuturelegislationorregulations.Forward-lookingstatementsincludeallstatementsthatarenothistoricalfactsandcanbeidentifiedbytheuseofforward-lookingterminologysuchasthewords"believe,""expect,""plan,""intend,""anticipate,""estimate,""predict,""potential,""continue,""may,""should,"orthenegativeofthesetermsorsimilarexpressions.

Forward-lookingstatementsinvolverisks,uncertainties,andassumptions.Actualresultsmaydiffermateriallyfromthoseexpressedintheseforward-lookingstatements.Youshouldnotputunduerelianceonanyforward-lookingstatements.Wedonothaveanyintentionorobligationtoupdateforward-lookingstatementsafterwefilethisreportexceptasrequiredbylaw.

Thefollowingandotherrisks,whicharedescribedingreaterdetailin"PartI.Item1A.RiskFactors,"aswellasotherrisksdescribedinthisAnnualReport,couldcauseourresultstodiffermateriallyfromthoseexpressedinforward-lookingstatements:

• conditionsintheglobalorregionaleconomiesandglobalcapitalmarkets,andcyclicalindustryconditions(includingasaresultoftheimpactoftheproposedexitoftheUnitedKingdomfromtheEU);

• conditionsaffectingdemandforproductsintheindustriesweserve,particularlytheautomotiveindustry;

• competitionandpricingpressure;

• marketacceptanceofournewproductintroductionsandproductinnovationsandproductlifecycles;

• rawmaterialavailability,quality,andcost;

• fluctuationsinforeigncurrencyexchangerates;

• financialconditionandconsolidationofcustomersandvendors;

• relianceonthird-partysuppliers;

• risksassociatedwithcurrentandfutureacquisitionsanddivestitures;

• globalrisksofbusinessinterruptionssuchasnaturaldisastersandpolitical,economic,andmilitaryinstability;

• risksassociatedwithsecuritybreachesandotherdisruptionstoourinformationtechnologyinfrastructure;

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• risksrelatedtocompliancewithcurrentandfutureenvironmentalandotherlawsandregulations;

• ourabilitytoprotectourintellectualpropertyrights;

• risksoflitigation;

• ourabilitytooperatewithinthelimitationsimposedbyourdebtinstruments;

• thepossibleeffectsonusofvariousU.S.andnon-U.S.legislativeproposalsandotherinitiativesthat,ifadopted,couldmateriallyincreaseourworldwidecorporateeffectivetaxrateandnegativelyimpactourU.S.governmentcontractsbusiness;

• variousrisksassociatedwithbeingaSwisscorporation;

• theimpactoffluctuationsinthemarketpriceofourshares;and

• theimpactofcertainprovisionsofourarticlesofassociationonunsolicitedtakeoverproposals.

Theremaybeotherrisksanduncertaintiesthatweareunabletopredictatthistimeorthatwecurrentlydonotexpecttohaveamaterialadverseeffectonourbusiness.

ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK

Inthenormalcourseofbusiness,ourfinancialpositionisroutinelysubjecttoavarietyofrisks,includingmarketrisksassociatedwithinterestrateandcurrencymovementsonoutstandingdebtandnon-U.S.dollardenominatedassetsandliabilitiesandcommoditypricemovements.Weutilizeestablishedriskmanagementpoliciesandproceduresinexecutingderivativefinancialinstrumenttransactionstomanageaportionoftheserisks.

Wedonotexecutetransactionsorholdderivativefinancialinstrumentsfortradingorspeculativepurposes.SubstantiallyallcounterpartiestoderivativefinancialinstrumentsarelimitedtomajorfinancialinstitutionswithatleastanA/A2creditrating.Thereisnosignificantconcentrationofexposureswithanyonecounterparty.

ForeignCurrencyExposures

Aspartofmanagingtheexposuretochangesinforeigncurrencyexchangerates,weutilizecross-currencyswapcontracts,foreigncurrencyforwardcontracts,andforeigncurrencyswapcontracts,aportionofwhicharedesignatedascashflowhedges.Theobjectiveofthesecontractsistominimizeimpactstocashflowsandprofitabilityduetochangesinforeigncurrencyexchangeratesonintercompanyandothercashtransactions.A10%appreciationordepreciationoftheunderlyingcurrencyinourcross-currencyswapcontracts,foreigncurrencyforwardcontracts,orforeigncurrencyswapcontractsfromthefiscalyearend2016marketrateswouldhavechangedtheunrealizedvalueofourcontractsby$112million.A10%appreciationordepreciationoftheunderlyingcurrencyinourcross-currencyswapcontracts,foreigncurrencyforwardcontracts,orforeigncurrencyswapcontractsfromthefiscalyearend2015marketrateswouldhavechangedtheunrealizedvalueofourcontractsby$109million.Suchgainsorlossesonthesecontractswouldgenerallybeoffsetbythelossesorgainsontherevaluationorsettlementoftheunderlyingtransactions.

InterestRateandInvestmentExposures

Weissuedebt,asneeded,tofundouroperationsandcapitalrequirements.Suchborrowingscanresultininterestrateexposure.Tomanagetheinterestrateexposure,weuseinterestrateswapstoconvertaportionoffixed-ratedebtintovariable-ratedebt.Weuseforwardstartinginterestrateswapsandoptionstoenterintointerestrateswapstomanageinterestrateexposureinperiodspriortothe

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anticipatedissuanceoffixed-ratedebt.Wealsoutilizeinvestmentswapstomanageearningsexposureoncertainnonqualifieddeferredcompensationliabilities.

Basedonourfloatingratedebtbalancesofapproximately$300millionatfiscalyearend2016and$800millionatfiscalyearend2015,anincreaseinthelevelsoftheU.S.dollarinterestratesby0.5%,withallothervariablesheldconstant,wouldhaveresultedinanincreaseofannualinterestexpenseofapproximately$2millionand$4millioninfiscal2016and2015,respectively.

CommodityExposures

Ourworldwideoperationsandproductlinesmayexposeustorisksfromfluctuationsincommodityprices.Tolimittheeffectsoffluctuationsinthefuturemarketpricepaidandrelatedvolatilityincashflows,weutilizecommodityswapcontractsdesignatedascashflowhedges.Wecontinuallyevaluatethecommoditymarketwithrespecttoourforecastedusagerequirementsoverthenexteighteenmonthsandperiodicallyenterintocommodityswapcontractsinordertohedgeaportionofusagerequirementsoverthatperiod.Atfiscalyearend2016,ourcommodityhedges,whichrelatedtoexpectedpurchasesofgold,silver,andcopper,wereinanetgainpositionof$11millionandhadanotionalvalueof$232million.Atfiscalyearend2015,ourcommodityhedges,whichrelatedtoexpectedpurchasesofgold,silver,andcopper,wereinanetlosspositionof$33millionandhadanotionalvalueof$260million.A10%appreciationordepreciationofthepriceofatroyounceofgold,atroyounceofsilver,andapoundofcopper,fromthefiscalyearend2016priceswouldhavechangedtheunrealizedvalueofourforwardcontractsby$24million.A10%appreciationordepreciationofthepriceofatroyounceofgold,atroyounceofsilver,andapoundofcopper,fromthefiscalyearend2015priceswouldhavechangedtheunrealizedvalueofourforwardcontractsby$23million.

SeeNote13totheConsolidatedFinancialStatementsforadditionalinformationregardingfinancialinstruments.

ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA

ThefollowingConsolidatedFinancialStatementsandschedulespecifiedbythisItem,togetherwiththereportsthereonofDeloitte&ToucheLLP,arepresentedfollowingItem15andthesignaturepagesofthisreport:

FinancialStatements:

ReportsofIndependentRegisteredPublicAccountingFirm

ConsolidatedStatementsofOperationsfortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

ConsolidatedStatementsofComprehensiveIncomefortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

ConsolidatedBalanceSheetsasofSeptember30,2016andSeptember25,2015

ConsolidatedStatementsofEquityfortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

ConsolidatedStatementsofCashFlowsfortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

NotestoConsolidatedFinancialStatements

FinancialStatementSchedule:

ScheduleII—ValuationandQualifyingAccounts

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AllotherfinancialstatementsandscheduleshavebeenomittedsincetheinformationrequiredtobesubmittedhasbeenincludedontheConsolidatedFinancialStatementsandrelatednotesorbecausetheyareeithernotapplicableornotrequiredundertherulesofRegulationS-X.

ITEM9A.CONTROLSANDPROCEDURES

EvaluationofDisclosureControlsandProcedures

Ourmanagement,withtheparticipationofourChiefExecutiveOfficerandChiefFinancialOfficer,evaluatedtheeffectivenessofourdisclosurecontrolsandprocedures(asdefinedinRule13a-15(e)undertheExchangeAct)asofSeptember30,2016.Basedonthatevaluation,ourChiefExecutiveOfficerandChiefFinancialOfficerconcludedthatourdisclosurecontrolsandprocedureswereeffectiveasofSeptember30,2016.

Management'sReportonInternalControlOverFinancialReporting

Ourmanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting(asdefinedinRule13a-15(f)undertheExchangeAct).Management,withtheparticipationofourChiefExecutiveOfficerandChiefFinancialOfficer,evaluatedtheeffectivenessofourinternalcontroloverfinancialreportingbasedontheframeworkinInternalControl—IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.Basedonthisevaluation,managementconcludedourinternalcontroloverfinancialreportingwaseffectiveasofSeptember30,2016.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewithpoliciesandproceduresmaydeteriorate.

Deloitte&ToucheLLP,anindependentregisteredpublicaccountingfirm,hasissuedanattestationreportonourinternalcontroloverfinancialreportingasofSeptember30,2016,whichisincludedinthisAnnualReport.

ChangesinInternalControlOverFinancialReporting

DuringthequarterendedSeptember30,2016,therewerenochangesinourinternalcontroloverfinancialreportingthathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

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PARTIII

ITEM10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE

Informationconcerningdirectors,executiveofficers,andcorporategovernancemaybefoundunderthecaptions"AgendaItemNo.1—ElectionofDirectors,""NomineesforElection,""CorporateGovernance,""TheBoardofDirectorsandBoardCommittees,"and"ExecutiveOfficers"inourdefinitiveproxystatementforour2017AnnualGeneralMeetingofShareholders(the"2017ProxyStatement"),whichwillbefiledwiththeSECwithin120daysafterthecloseofourfiscalyear.Suchinformationisincorporatedhereinbyreference.Theinformationinthe2017ProxyStatementsetforthunderthecaption"Section16(a)BeneficialOwnershipReportingCompliance"isincorporatedhereinbyreference.

CodeofEthics

Wehaveadoptedaguidetoethicalconduct,whichappliestoallofouremployees,officers,anddirectors.OurGuidetoEthicalConductmeetstherequirementsofa"codeofethics"asdefinedbyItem406ofRegulationS-KandappliestoourChiefExecutiveOfficer,ChiefFinancialOfficer,andChiefAccountingOfficer,aswellasallotheremployeesanddirectors,asindicatedabove.OurGuidetoEthicalConductalsomeetstherequirementsofacodeofbusinessconductandethicsunderthelistingstandardsoftheNYSE.OurGuidetoEthicalConductispostedonourwebsiteatwww.te.comundertheheading"CorporateResponsibility—Governance—GuidetoEthicalConduct."WealsowillprovideacopyofourGuidetoEthicalConducttoshareholdersuponrequest.WeintendtodiscloseanyamendmentstoourGuidetoEthicalConduct,aswellasanywaiversforexecutiveofficersordirectors,onourwebsite.

ITEM11.EXECUTIVECOMPENSATION

Informationconcerningexecutivecompensationmaybefoundunderthecaptions"CompensationDiscussionandAnalysis,""ManagementDevelopmentandCompensationCommitteeReport,""CompensationCommitteeInterlocksandInsiderParticipation,""ExecutiveOfficerCompensation,"and"CompensationofNon-EmployeeDirectors"inour2017ProxyStatement.Suchinformationisincorporatedhereinbyreference.

ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDERMATTERS

Theinformationinour2017ProxyStatementsetforthunderthecaption"SecurityOwnershipofCertainBeneficialOwnersandManagement"isincorporatedhereinbyreference.

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EquityCompensationPlanInformation

Thefollowingtableprovidesinformationasoffiscalyearend2016withrespecttocommonsharesissuableunderourequitycompensationplansorequitycompensationplansofTycoInternationalpriortotheseparation:

53

PlanCategory

Numberofsecuritiestobeissuedupon

exerciseofoutstandingoptions,warrants

andrights(a)

Weighted-averageexercisepriceof

outstandingoptions,warrantsandrights

(b)(4)

Numberofsecuritiesremainingavailableforfutureissuanceunderequitycompensationplans(excludingsecuritiesreflectedincolumn(a))

(c)(5) Equitycompensationplansapprovedbysecurityholders: 2007StockandIncentivePlan(1) 10,853,503 $ 45.08 14,108,552

Equitycompensationplansnotapprovedbysecurityholders: EquityawardsunderTycoInternationalLtd.2004StockandIncentivePlanandotherequityincentiveplans(2) 33,128 35.45 —

Equityawardsunderthe2010StockandIncentivePlan(3) 1,299,648 55.86 2,264,490Total 12,186,279 16,373,042

(1) TheTEConnectivityLtd.2007StockandIncentivePlan,asamendedandrestated(the"2007Plan"),providesfortheawardofannualperformancebonusesandlong-termperformanceawards,includingshareoptions;restricted,performance,anddeferredshareunits;andothershare-basedawards(collectively,"Awards")toboardmembers,officers,andnon-officeremployees.The2007Planprovidesforamaximumof59,843,452commonsharestobeissuedasAwards,subjecttoadjustmentasprovidedunderthetermsofthe2007Plan.

(2) IncludescommonsharesthatmaybeissuedbyTEConnectivitypursuanttotheSeparationandDistributionAgreementundershareoptionawardstocurrentandformeremployeesanddirectorsofTycoInternational,whichmayincludeindividualscurrentlyorformerlyemployedbyorservingwithTEConnectivity,TycoInternational,orCovidiensubsequenttotheseparation.

(3) InconnectionwiththeacquisitionofADCinfiscal2011,weassumedequityawardsissuedunderplanssponsoredbyADCandtheremainingpoolofsharesavailableforgrantundertheplans.Subsequenttotheacquisition,weregistered6,764,455sharesrelatedtotheplansviaFormsS-3andS-8andrenamedtheprimaryADCplantheTEConnectivityLtd.2010StockandIncentivePlan(the"2010Plan").Grantsunderthe2010PlanaresettledinTEConnectivitycommonshares.

(4) Doesnottakeintoaccountrestricted,performance,ordeferredshareunitawardsthatdonothaveexerciseprices.

(5) The2007Planandthe2010Planapplyweightingsof1.80and1.21,respectively,tooutstandingnonvestedrestricted,performance,anddeferredshareunits.Theremainingsharesissuableunderboththe2007Planandthe2010Planareincreasedbyforfeituresandcancellations,amongotherfactors.

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ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS,ANDDIRECTORINDEPENDENCE

Theinformationinour2017ProxyStatementsetforthunderthecaptions"CorporateGovernance,""TheBoardofDirectorsandBoardCommittees,"and"CertainRelationshipsandRelatedTransactions"isincorporatedhereinbyreference.

ITEM14.PRINCIPALACCOUNTANTFEESANDSERVICES

Theinformationinour2017ProxyStatementsetforthunderthecaption"AgendaItemNo.7—ElectionofAuditors—AgendaItemNo.7.1"isincorporatedhereinbyreference.

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PARTIV

ITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES

(a) 1.FinancialStatements.SeeItem8.

2. FinancialStatementSchedule.SeeItem8.

3. ExhibitIndex:

55

IncorporatedbyReferenceHereinExhibit

Number Description Form Exhibit FilingDate

2.1 SeparationandDistributionAgreementamongTycoInternationalLtd.,CovidienLtd.andTycoElectronicsLtd.,datedasofJune29,2007

CurrentReportonForm8-K

2.1 July5,2007

2.2 StockandAssetPurchaseAgreement,datedasof

January27,2015,byandamongTEConnectivityLtd.,CommScopeHoldingCompany,Inc.andCommScope,Inc.

CurrentReportonForm8-K

2.1 January29,2015

2.3 † SharePurchaseAgreementdatedasofFebruary1,

2016byandbetweenTEConnectivityLtd.andCregstarHoldcoLimited

QuarterlyReportonForm10-QforthequarterlyperiodendedMarch25,2016

2.1 April21,2016

3.1 ArticlesofAssociationofTEConnectivityLtd.,as

amendedandrestated CurrentReportonForm8-K

3.1 May10,2016

3.2 OrganizationalRegulationsofTEConnectivityLtd.,

asamendedandrestated CurrentReportonForm8-K

3.2 March6,2015

4.1(a) IndentureamongTycoElectronicsGroupS.A.,Tyco

ElectronicsLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofSeptember25,2007

AnnualReportonForm10-KforthefiscalyearendedSeptember28,2007

4.1(a) December14,2007

4.1(b) SecondSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TycoElectronicsLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofSeptember25,2007

AnnualReportonForm10-KforthefiscalyearendedSeptember28,2007

4.1(c) December14,2007

4.1(c) ThirdSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TycoElectronicsLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofSeptember25,2007

AnnualReportonForm10-KforthefiscalyearendedSeptember28,2007

4.1(d) December14,2007

4.1(d) FifthSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TycoElectronicsLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofDecember20,2010

CurrentReportonForm8-K

4.1 December20,2010

4.1(e) SeventhSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TEConnectivityLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofFebruary3,2012

CurrentReportonForm8-K

4.2 February3,2012

4.1(f) EighthSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TEConnectivityLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofNovember25,2013

CurrentReportonForm8-K

4.1 November25,2013

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56

IncorporatedbyReferenceHereinExhibit

Number Description Form Exhibit FilingDate

4.1(g) NinthSupplementalIndentureamongTycoElectronicsGroupS.A.,TEConnectivityLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofJuly31,2014

CurrentReportonForm8-K

4.1 July31,2014

4.1(h) TenthSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TEConnectivityLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedJuly31,2014

CurrentReportonForm8-K

4.2 July31,2014

4.1(i) TwelfthSupplementalIndentureamongTyco

ElectronicsGroupS.A.,TEConnectivityLtd.andDeutscheBankTrustCompanyAmericas,astrustee,datedasofFebruary27,2015

CurrentReportonForm8-K

4.1 February27,2015

4.1(j) ThirteenthSupplementalIndentureamongTyco

ElectronicsGroupS.A.,asissuer,TEConnectivityLtd.,asguarantor,andDeutscheBankTrustCompanyAmericas,astrustee,datedasofJanuary28,2016

CurrentReportonForm8-K

4.1 January28,2016

10.1 TaxSharingAgreementamongTyco

InternationalLtd.,CovidienLtd.andTycoElectronicsLtd.,datedasofJune29,2007

CurrentReportonForm8-K

10.1 July5,2007

10.2 Five-YearSeniorCreditAgreementamongTyco

ElectronicsGroupS.A.,asborrower,TEConnectivityLtd.,asguarantor,thelenderspartiestheretoandDeutscheBankAGNewYorkBranch,asadministrativeagent,datedasofJune24,2011

CurrentReportonForm8-K

10.1 June27,2011

10.3 FirstAmendmenttotheFive-YearSeniorCredit

AgreementdatedasofAugust2,2013amongTycoElectronicsGroupS.A.,asborrower,TEConnectivityLtd.,asguarantor,thelenderspartiestheretoandDeutscheBankAGNewYorkBranch,asadministrativeagent

CurrentReportonForm8-K

10.1 August2,2013

10.4 SecondAmendmenttotheFive-YearSeniorCredit

AgreementdatedasofDecember9,2015byandamongTycoElectronicsGroupS.A.,asborrower,TEConnectivityLtd.,asguarantor,thelenderspartiesthereto,andDeutscheBankAGNewYorkBranch,asexistingadministrativeagent,andBankofAmerica,N.A.,asadministrativeagent

CurrentReportonForm8-K

10.1 December9,2015

10.5 ‡* TEConnectivityLtd.2007StockandIncentivePlan

(asamendedandrestated)

10.6 ‡ TEConnectivityLtd.EmployeeStockPurchasePlan

(asamendedandrestated) AnnualReportonForm10-KforthefiscalyearendedSeptember28,2012

10.4 November13,2012

10.7 ‡ FormofFounders'GrantOptionAwardTermsand

Conditions CurrentReportonForm8-K

10.7 July5,2007

10.8 ‡ FormofOptionAwardTermsandConditions QuarterlyReporton

Form10-QforthequarterlyperiodendedDecember24,2010

10.3 January24,2011

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57

IncorporatedbyReferenceHereinExhibit

Number Description Form Exhibit FilingDate

10.9 ‡ FormofRestrictedUnitAwardTermsand

Conditions QuarterlyReportonForm10-QforthequarterlyperiodendedDecember24,2010

10.4 January24,2011

10.10 ‡ FormofPerformanceStockUnitAwardTermsand

Conditions QuarterlyReportonForm10-QforthequarterlyperiodendedDecember28,2012

10.1 January25,2013

10.11 ‡* FormofPerformanceStockUnitAwardTermsand

ConditionsforPerformanceCyclesStartinginandafterFiscalYear2016

10.12 ‡ TEConnectivityChangeinControlSeverancePlan

forCertainU.S.Executives(asamendedandrestated)

AnnualReportonForm10-KforthefiscalyearendedSeptember25,2015

10.10 November10,2015

10.13 ‡ TEConnectivitySeverancePlanforU.S.Executives

(asamendedandrestated) AnnualReportonForm10-KforthefiscalyearendedSeptember25,2015

10.11 November10,2015

10.14 ‡ TycoElectronicsLtd.DeferredCompensationPlan

forDirectors AnnualReportonForm10-KforthefiscalyearendedSeptember28,2007

10.16 December14,2007

10.15 ‡ TycoElectronicsCorporationSupplementalSavings

andRetirementPlan AnnualReportonForm10-KforthefiscalyearendedSeptember25,2009

10.13 November18,2009

10.16 ‡ TycoElectronicsLtd.UKSavingsRelatedShare

Plan AnnualReportonForm10-KforthefiscalyearendedSeptember28,2007

10.23 December14,2007

10.17 * FormofIndemnificationAgreement 10.18 ‡ TEConnectivityLtd.2010StockandIncentivePlan

(asamendedandrestated) AnnualReportonForm10-KforthefiscalyearendedSeptember26,2014

10.16 November12,2014

10.19 ‡ EmploymentAgreementbetweenThomasJ.Lynch

andTycoElectronicsCorporationdatedDecember15,2015

CurrentReportonForm8-K

10.1 December16,2015

10.20 ‡ EmploymentAgreementbetweenTerrenceR.Curtin

andTycoElectronicsCorporationdatedDecember15,2015

CurrentReportonForm8-K

10.2 December16,2015

10.21 ‡ EmploymentAgreementbetweenJosephB.Donahue

andTycoElectronicsCorporationdatedDecember15,2015

CurrentReportonForm8-K

10.4 December16,2015

10.22 ‡ EmploymentAgreementbetweenRobertN.

ShaddockandTycoElectronicsCorporationdatedDecember15,2015

CurrentReportonForm8-K

10.5 December16,2015

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58

IncorporatedbyReferenceHereinExhibit

Number Description Form Exhibit FilingDate

10.23 ‡ EmploymentAgreementbetweenStevenT.MerktandTycoElectronicsCorporationdatedDecember15,2015

CurrentReportonForm8-K

10.6 December16,2015

10.24 ‡ EmploymentAgreementbetweenHeathA.Mittsand

TycoElectronicsCorporationdatedSeptember30,2016

CurrentReportonForm8-K

10.1 October3,2016

21.1 * SubsidiariesofTEConnectivityLtd. 23.1 * ConsentofIndependentRegisteredPublic

AccountingFirm

24.1 * PowerofAttorney 31.1 * CertificationbytheChiefExecutiveOfficerpursuant

toSection302oftheSarbanes-OxleyActof2002

31.2 * CertificationbytheChiefFinancialOfficerpursuant

toSection302oftheSarbanes-OxleyActof2002

32.1 ** CertificationbytheChiefExecutiveOfficerand

ChiefFinancialOfficerpursuanttoSection906oftheSarbanes-OxleyActof2002

101 * FinancialstatementsfromtheAnnualReporton

Form10-KofTEConnectivityLtd.forthefiscalyearendedSeptember30,2016,filedonNovember15,2016,formattedinXBRL:(i)theConsolidatedStatementsofOperations,(ii)theConsolidatedStatementsofComprehensiveIncome,(iii)theConsolidatedBalanceSheets,(iv)theConsolidatedStatementsofEquity,(v)theConsolidatedStatementsofCashFlows,and(vi)theNotestoConsolidatedFinancialStatements

† TheschedulestotheSharePurchaseAgreementhavebeenomittedfromthisfilingpursuanttoItem601(b)(2)ofRegulationS-K.WewillfurnishcopiesofsuchschedulestotheSECuponitsrequest;provided,however,thatwemayrequestconfidentialtreatmentpursuanttoRule24b-2oftheSecuritiesExchangeActof1934foranyschedulesofurnished.

‡ Managementcontractorcompensatoryplanorarrangement

* Filedherewith

** Furnishedherewith

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SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

Date:November15,2016

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedatesindicated.

59

TECONNECTIVITYLTD.

By:

/s/HEATHA.MITTS

HeathA.MittsExecutiveVicePresidentandChiefFinancialOfficer(PrincipalFinancialOfficer)

Signature Title Date

/s/THOMASJ.LYNCH

ThomasJ.Lynch ChiefExecutiveOfficerandDirector(PrincipalExecutiveOfficer) November15,2016

/s/TERRENCER.CURTIN

TerrenceR.Curtin PresidentandDirector November15,2016

/s/HEATHA.MITTS

HeathA.MittsExecutiveVicePresidentandChiefFinancialOfficer(PrincipalFinancialOfficer)

November15,2016

/s/ROBERTJ.OTT

RobertJ.OttSeniorVicePresidentandCorporateController(PrincipalAccountingOfficer)

November15,2016

*

PierreR.Brondeau Director November15,2016

*

CarolA.Davidson Director November15,2016

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60

Signature Title Date

*

JuergenW.Gromer Director November15,2016

*

WilliamA.Jeffrey Director November15,2016

*

YongNam Director November15,2016

*

DanielJ.Phelan Director November15,2016

*

PaulaA.Sneed Director November15,2016

*

MarkC.Trudeau Director November15,2016

*

JohnC.VanScoter Director November15,2016

*

LauraH.Wright Director November15,2016

* JohnS.Jenkins,Jr.,bysigninghisnamehereto,doessignthisdocumentonbehalfoftheabovenotedindividuals,pursuanttopowersofattorneydulyexecutedbysuchindividuals,whichhavebeenfiledasExhibit24.1tothisReport.

By: /s/JOHNS.JENKINS,JR.

JohnS.Jenkins,Jr.Attorney-in-fact

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TECONNECTIVITYLTD.

INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

61

Page ReportsofIndependentRegisteredPublicAccountingFirm 62

ConsolidatedStatementsofOperationsfortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

65

ConsolidatedStatementsofComprehensiveIncomefortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

66

ConsolidatedBalanceSheetsasofSeptember30,2016andSeptember25,2015 67

ConsolidatedStatementsofEquityfortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

68

ConsolidatedStatementsofCashFlowsfortheFiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

69

NotestoConsolidatedFinancialStatements 70

ScheduleII—ValuationandQualifyingAccounts 127

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REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TotheBoardofDirectorsandShareholdersofTEConnectivityLtd.:

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofTEConnectivityLtd.andsubsidiaries(the"Company")asofSeptember30,2016andSeptember25,2015,andtherelatedconsolidatedstatementsofoperations,comprehensiveincome,equity,andcashflowsforeachofthethreefiscalyearsintheperiodendedSeptember30,2016.OurauditsalsoincludedthefinancialstatementschedulelistedintheIndexatItem15.TheseconsolidatedfinancialstatementsandfinancialstatementschedulearetheresponsibilityoftheCompany'smanagement.Ourresponsibilityistoexpressanopinionontheconsolidatedfinancialstatementsandfinancialstatementschedulebasedonouraudits.

WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion.

Inouropinion,suchconsolidatedfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasofSeptember30,2016andSeptember25,2015,andtheresultsofitsoperationsanditscashflowsforeachofthethreefiscalyearsintheperiodendedSeptember30,2016,inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Also,inouropinion,suchfinancialstatementschedule,whenconsideredinrelationtothebasicconsolidatedfinancialstatementstakenasawhole,presentsfairly,inallmaterialrespects,theinformationsetforththerein.

Wehavealsoaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),theCompany'sinternalcontroloverfinancialreportingasofSeptember30,2016,basedonthecriteriaestablishedinInternalControl—IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommissionandourreportdatedNovember15,2016expressedanunqualifiedopinionontheCompany'sinternalcontroloverfinancialreporting.

/s/Deloitte&ToucheLLP

Philadelphia,PennsylvaniaNovember15,2016

62

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REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TotheBoardofDirectorsandShareholdersofTEConnectivityLtd.:

WehaveauditedtheinternalcontroloverfinancialreportingofTEConnectivityLtd.andsubsidiaries(the"Company")asofSeptember30,2016,basedoncriteriaestablishedinInternalControl—IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.TheCompany'smanagementisresponsibleformaintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting,includedintheaccompanyingManagement'sReportonInternalControlOverFinancialReporting.OurresponsibilityistoexpressanopinionontheCompany'sinternalcontroloverfinancialreportingbasedonouraudit.

WeconductedourauditinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Ourauditincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,testingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk,andperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditprovidesareasonablebasisforouropinion.

Acompany'sinternalcontroloverfinancialreportingisaprocessdesignedby,orunderthesupervisionof,thecompany'sprincipalexecutiveandprincipalfinancialofficers,orpersonsperformingsimilarfunctions,andeffectedbythecompany'sboardofdirectors,management,andotherpersonneltoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany'sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Becauseoftheinherentlimitationsofinternalcontroloverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmaynotbepreventedordetectedonatimelybasis.Also,projectionsofanyevaluationoftheeffectivenessoftheinternalcontroloverfinancialreportingtofutureperiodsaresubjecttotheriskthatthecontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Inouropinion,theCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofSeptember30,2016,basedonthecriteriaestablishedinInternalControl—IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.

Wehavealsoaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),theconsolidatedfinancialstatementsandfinancialstatementscheduleoftheCompanyasofandforthefiscalyearendedSeptember30,2016,andourreportdated

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November15,2016expressedanunqualifiedopiniononthoseconsolidatedfinancialstatementsandfinancialstatementschedule.

/s/Deloitte&ToucheLLP

Philadelphia,PennsylvaniaNovember15,2016

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TECONNECTIVITYLTD.

CONSOLIDATEDSTATEMENTSOFOPERATIONS

FiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

SeeNotestoConsolidatedFinancialStatements.

65

Fiscal 2016 2015 2014 (inmillions,exceptpersharedata) Netsales $ 12,238 $ 12,233 $ 11,973Costofsales 8,205 8,146 8,001Grossmargin 4,033 4,087 3,972

Selling,general,andadministrativeexpenses 1,463 1,504 1,534Research,development,andengineeringexpenses 644 627 583Acquisitionandintegrationcosts 22 55 31Restructuringandothercharges,net 2 152 19Operatingincome 1,902 1,749 1,805

Interestincome 19 17 19Interestexpense (127) (136) (127)Otherincome(expense),net (632) (55) 63Incomefromcontinuingoperationsbeforeincometaxes 1,162 1,575 1,760

Incometax(expense)benefit 779 (337) (146)Incomefromcontinuingoperations 1,941 1,238 1,614

Incomefromdiscontinuedoperations,netofincometaxes 68 1,182 167Netincome $ 2,009 $ 2,420 $ 1,781

Basicearningspershare: Incomefromcontinuingoperations $ 5.30 $ 3.06 $ 3.94Incomefromdiscontinuedoperations 0.19 2.92 0.41Netincome 5.49 5.98 4.34

Dilutedearningspershare: Incomefromcontinuingoperations $ 5.26 $ 3.01 $ 3.87Incomefromdiscontinuedoperations 0.18 2.88 0.40Netincome 5.44 5.89 4.27

Dividendspaidpercommonshare $ 1.40 $ 1.24 $ 1.08

Weighted-averagenumberofsharesoutstanding: Basic 366 405 410Diluted 369 411 417

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TECONNECTIVITYLTD.

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME

FiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

SeeNotestoConsolidatedFinancialStatements.

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Fiscal 2016 2015 2014 (inmillions) Netincome $ 2,009 $ 2,420 $ 1,781Othercomprehensiveloss: Currencytranslation (92) (312) (211)Adjustmentstounrecognizedpensionandpostretirementbenefitcosts,netofincometaxes (88) (46) (123)Gainsoncashflowhedges,netofincometaxes 11 2 14Othercomprehensiveloss (169) (356) (320)

Comprehensiveincome. $ 1,840 $ 2,064 $ 1,461

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TECONNECTIVITYLTD.

CONSOLIDATEDBALANCESHEETS

AsofSeptember30,2016andSeptember25,2015

SeeNotestoConsolidatedFinancialStatements.

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FiscalYearEnd 2016 2015

(inmillions,except

sharedata) Assets Currentassets: Cashandcashequivalents $ 647 $ 3,329Accountsreceivable,netofallowancefordoubtfulaccountsof$17and$18,respectively 2,046 2,120Inventories 1,596 1,615Prepaidexpensesandothercurrentassets 486 476Deferredincometaxes — 345Totalcurrentassets 4,775 7,885

Property,plant,andequipment,net 3,052 2,920Goodwill 5,492 4,824Intangibleassets,net 1,879 1,555Deferredincometaxes 2,111 2,144ReceivablefromTycoInternationalplcandCovidienplc 12 964Otherassets 287 297

TotalAssets $ 17,608 $ 20,589LiabilitiesandShareholders'Equity Currentliabilities: Short-termdebt $ 331 $ 498Accountspayable 1,090 1,143Accruedandothercurrentliabilities 1,437 1,749Deferredrevenue 208 185Totalcurrentliabilities 3,066 3,575

Long-termdebt 3,739 3,386Long-termpensionandpostretirementliabilities 1,502 1,327Deferredincometaxes 207 329Incometaxes 247 1,954Otherliabilities 362 433

TotalLiabilities 9,123 11,004Commitmentsandcontingencies(Note12) Shareholders'Equity: Commonshares,CHF0.57parvalue,382,835,381sharesauthorizedandissued,and414,064,381sharesauthorizedandissued,respectively 168 182

Contributedsurplus 1,801 4,359Accumulatedearnings 8,682 6,673Treasuryshares,atcost,27,554,005and20,071,089shares,respectively (1,624) (1,256)Accumulatedothercomprehensiveloss (542) (373)TotalShareholders'Equity 8,485 9,585TotalLiabilitiesandShareholders'Equity $ 17,608 $ 20,589

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TECONNECTIVITYLTD.

CONSOLIDATEDSTATEMENTSOFEQUITY

FiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

SeeNotestoConsolidatedFinancialStatements.

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CommonShares

TreasuryShares

TEConnectivity

Ltd.Shareholders'

Equity

AccumulatedOther

ComprehensiveIncome(Loss)

ContributedSurplus

AccumulatedEarnings

Non-controllingInterests

TotalEquity

Shares Amount Shares Amount (inmillions) BalanceatSeptember27,2013 429 $ 189 (17) $ (720) $ 6,136 $ 2,472 $ 303 $ 8,380 $ 6 $ 8,386Netincome — — — — — 1,781 — 1,781 — 1,781Othercomprehensiveloss — — — — — — (320) (320) — (320)Share-basedcompensationexpense — — — — 84 — — 84 — 84

Dividendsapproved — — — — (473) — — (473) — (473)Exerciseofshareoptions — — 5 156 — — — 156 — 156Restrictedshareawardvestingsandotheractivity — — 2 125 (122) — — 3 — 3

Repurchaseofcommonshares — — (11) (604) — — — (604) — (604)Cancellationoftreasuryshares (10) (5) 10 399 (394) — — — — —BalanceatSeptember26,2014 419 $ 184 (11) $ (644) $ 5,231 $ 4,253 $ (17) $ 9,007 $ 6 $ 9,013Netincome — — — — — 2,420 — 2,420 — 2,420Othercomprehensiveloss — — — — — — (356) (356) — (356)Share-basedcompensationexpense — — — — 95 — — 95 — 95

Dividendsapproved — — — — (526) — — (526) — (526)Exerciseofshareoptions — — 3 103 — — — 103 — 103Restrictedshareawardvestingsandotheractivity — — 1 143 (138) — — 5 (6) (1)

Repurchaseofcommonshares — — (18) (1,163) — — — (1,163) — (1,163)Cancellationoftreasuryshares (5) (2) 5 305 (303) — — — — —BalanceatSeptember25,2015 414 $ 182 (20) $ (1,256) $ 4,359 $ 6,673 $ (373) $ 9,585 $ — $ 9,585Netincome — — — — — 2,009 — 2,009 — 2,009Othercomprehensiveloss — — — — — — (169) (169) — (169)Share-basedcompensationexpense — — — — 91 — — 91 — 91

Dividendsapproved — — — — (512) — — (512) — (512)Exerciseofshareoptions — — 2 90 — — — 90 — 90Restrictedshareawardvestingsandotheractivity — — 2 146 (145) — — 1 — 1

Repurchaseofcommonshares — — (43) (2,610) — — — (2,610) — (2,610)Cancellationoftreasuryshares (31) (14) 31 2,006 (1,992) — — — — —BalanceatSeptember30,2016 383 $ 168 (28) $ (1,624) $ 1,801 $ 8,682 $ (542) $ 8,485 $ — $ 8,485

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TECONNECTIVITYLTD.

CONSOLIDATEDSTATEMENTSOFCASHFLOWS

FiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

SeeNotestoConsolidatedFinancialStatements.

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Fiscal 2016 2015 2014 (inmillions) CashFlowsFromOperatingActivities: Netincome $ 2,009 $ 2,420 $ 1,781Incomefromdiscontinuedoperations,netofincometaxes (68) (1,182) (167)

Incomefromcontinuingoperations 1,941 1,238 1,614Adjustmentstoreconcileincomefromcontinuingoperationstonetcashprovidedbyoperatingactivities: Depreciationandamortization 585 616 551Non-cashrestructuringcharges 41 21 16Deferredincometaxes 178 40 (281)Provisionforlossesonaccountsreceivableandinventories 17 36 34Taxsharing(income)expense 632 52 (65)Share-basedcompensationexpense 91 89 77Gainondivestiture (144) — —Other 61 105 50Changesinassetsandliabilities,netoftheeffectsofacquisitionsanddivestitures: Accountsreceivable,net 116 (210) (182)Inventories 16 (220) (98)Prepaidexpensesandothercurrentassets 282 36 (14)Accountspayable (100) (22) 71Accruedandothercurrentliabilities (4) (155) (280)Deferredrevenue 26 12 113Incometaxes (1,764) (52) 167Other 45 33 31Netcashprovidedbycontinuingoperatingactivities 2,019 1,619 1,804Netcashprovidedby(usedin)discontinuedoperatingactivities (97) 294 279Netcashprovidedbyoperatingactivities 1,922 1,913 2,083

CashFlowsFromInvestingActivities: Capitalexpenditures (628) (600) (635)Proceedsfromsaleofproperty,plant,andequipment 8 17 129Acquisitionofbusinesses,netofcashacquired (1,336) (1,725) (522)Proceedsfromdivestitureofbusiness,netofcashretainedbysoldbusiness 333 — 3Proceedsfromdivestitureofdiscontinuedoperations,netofcashretainedbysoldoperations (19) 2,957 —Other 61 12 (13)

Netcashprovidedby(usedin)continuinginvestingactivities (1,581) 661 (1,038)Netcashusedindiscontinuedinvestingactivities — (25) (37)Netcashprovidedby(usedin)investingactivities (1,581) 636 (1,075)

CashFlowsFromFinancingActivities: Netincrease(decrease)incommercialpaper 330 (328) (23)Proceedsfromissuanceofdebt 352 617 1,322Repaymentofdebt (501) (473) (360)Proceedsfromexerciseofshareoptions 90 103 156Repurchaseofcommonshares (2,787) (1,023) (578)Paymentofcommonsharedividendstoshareholders (509) (502) (443)Transfers(to)fromdiscontinuedoperations (97) 269 242Other (5) — (9)

Netcashprovidedby(usedin)continuingfinancingactivities (3,127) (1,337) 307Netcashprovidedby(usedin)discontinuedfinancingactivities 97 (269) (242)Netcashprovidedby(usedin)financingactivities (3,030) (1,606) 65

Effectofcurrencytranslationoncash 7 (71) (19)Netincrease(decrease)incashandcashequivalents (2,682) 872 1,054Cashandcashequivalentsatbeginningoffiscalyear 3,329 2,457 1,403Cashandcashequivalentsatendoffiscalyear $ 647 $ 3,329 $ 2,457SupplementalCashFlowInformation: Interestpaid $ 117 $ 128 $ 118Incometaxespaid,netofrefunds 806 350 259

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

1.BasisofPresentation

TheConsolidatedFinancialStatementsreflecttheconsolidatedoperationsofTEConnectivityLtd.anditssubsidiariesandhavebeenpreparedinUnitedStates("U.S.")dollarsinaccordancewithaccountingprinciplesgenerallyacceptedintheU.S.("GAAP").

Description of the Business

TEConnectivityLtd.("TEConnectivity"orthe"Company,"whichmaybereferredtoas"we,""us,"or"our")isaglobaltechnologyleader.Wedesignandmanufactureconnectivityandsensorsolutionsthatareessentialintoday'sincreasinglyconnectedworld.Wehelpourcustomerssolvetheneedforintelligent,efficient,andhigh-performingproductsandsolutions.

Weoperatethroughthreereportablesegments:

• TransportationSolutions.TheTransportationSolutionssegmentisaleaderinconnectivityandsensortechnologies.Ourproducts,whichmustwithstandharshconditions,areusedintheautomotive,commercialtransportation,andsensorsmarkets.

• IndustrialSolutions.TheIndustrialSolutionssegmentisaleadingsupplierofproductsthatconnectanddistributepower,data,andsignals.Ourproductsareusedintheindustrialequipment;aerospace,defense,oil,andgas;andenergymarkets.

• CommunicationsSolutions.TheCommunicationsSolutionssegmentisaleadingsupplierofelectroniccomponentsforthedataanddevicesandappliancesmarkets.Wearealsoaleaderindeveloping,manufacturing,installing,andmaintainingsomeoftheworld'smostadvancedsubseafiberopticcommunicationssystems.

Use of Estimates

ThepreparationoftheConsolidatedFinancialStatementsinconformitywithGAAPrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilities,thedisclosureofcontingentassetsandliabilities,andthereportedamountsofrevenuesandexpenses.SignificantestimatesintheseConsolidatedFinancialStatementsincluderestructuringandothercharges,assetsacquiredandliabilitiesassumedinacquisitions,allowancesfordoubtfulaccountsreceivable,estimatesoffuturecashflowsanddiscountratesassociatedwithassetimpairments,usefullivesfordepreciationandamortization,losscontingencies,netrealizablevalueofinventories,estimatedcontractrevenueandrelatedcosts,legalcontingencies,taxreservesanddeferredtaxassetvaluationallowances,andthedeterminationofdiscountandotherrateassumptionsforpensionbenefitcost.Actualresultscoulddiffermateriallyfromtheseestimates.

Fiscal Year

Wehavea52or53-weekfiscalyearthatendsonthelastFridayofSeptember.Forfiscalyearsinwhichthereare53weeks,thefourthquarterreportingperiodincludes14weeks.Fiscal2016wasa53weekyearandendedonSeptember30,2016.Fiscal2015and2014were52weeksinlengthandendedonSeptember25,2015andSeptember26,2014,respectively.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.SummaryofSignificantAccountingPolicies

Principles of Consolidation

Weconsolidateentitiesinwhichweownorcontrolmorethan50%ofthevotingsharesorotherwisehavetheabilitytocontrolthroughsimilarrights.Allintercompanytransactionshavebeeneliminated.TheresultsofcompaniesacquiredordisposedofareincludedontheConsolidatedFinancialStatementsfromtheeffectivedateofacquisitionoruptothedateofdisposal.

Revenue Recognition

Ourrevenuesaregeneratedprincipallyfromthesaleofourproducts.Revenuefromthesaleofproductsisrecognizedatthetimetitleandtherisksandrewardsofownershippasstothecustomer.Thisgenerallyoccurswhentheproductsreachtheshippingpoint,thesalespriceisfixedanddeterminable,andcollectionisreasonablyassured.

Contractrevenuesforconstructionrelatedprojects,whicharegeneratedintheCommunicationsSolutionssegment,arerecordedprimarilyusingthepercentage-of-completionmethod.Profitsrecognizedoncontractsinprocessarebaseduponestimatedcontractrevenueandrelatedcosttocomplete.Percentage-of-completionismeasuredbasedontheratioofactualcostsincurredtototalestimatedcosts.Revisionsincostestimatesascontractsprogresshavetheeffectofincreasingordecreasingprofitsinthecurrentperiod.Provisionsforanticipatedlossesaremadeintheperiodinwhichtheyfirstbecomedeterminable.Inaddition,provisionsforcreditlossesrelatedtoconstructionrelatedprojectsarerecordedasreductionsofrevenueintheperiodinwhichtheyfirstbecomedeterminable.

Wegenerallywarrantthatourproductswillconformtoour,ormutuallyagreedto,specificationsandthatourproductswillbefreefrommaterialdefectsinmaterialsandworkmanshipforalimitedtime.Welimitourwarrantytothereplacementorrepairofdefectiveparts,orarefundorcreditofthepriceofthedefectiveproduct.Weacceptreturnedgoodsonlywhenthecustomermakesaverifiedclaimandwehaveauthorizedthereturn.Generally,areserveforestimatedreturnsisestablishedatthetimeofsalebasedonhistoricalreturnexperienceandisrecordedasareductionofsales.

Additionally,certainofourlong-termcontractsintheCommunicationsSolutionssegmenthavewarrantyobligations.Estimatedwarrantycostsforeachcontractaredeterminedbasedonthecontracttermsandtechnology-specificconsiderations.Thesecostsareincludedintotalestimatedcontractcostsandareaccruedovertheconstructionperiodoftherespectivecontractsunderpercentage-of-completionaccounting.

Weprovidecertaindistributorswithaninventoryallowanceforreturnsorscrapequaltoapercentageofqualifiedpurchases.Areserveforestimatedreturnsandscrapallowancesisestablishedatthetimeofthesale,basedonanagreeduponfixedpercentageofsalestodistributors,andisrecordedasareductionofsales.

Otherallowancesincludecustomerquantityandpricediscrepancies.Areserveforotherallowancesisgenerallyestablishedatthetimeofsalebasedonhistoricalexperienceandisrecordedasareductionofsales.Webelievewecanreasonablyandreliablyestimatetheamountsoffutureallowances.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.SummaryofSignificantAccountingPolicies(Continued)

Inventories

Inventoriesarerecordedatthelowerofcostormarketvalueusingthefirst-in,first-outcostmethod,exceptforinventoriedcostsincurredintheperformanceoflong-termcontractsprimarilybytheCommunicationsSolutionssegment.

Property, Plant, and Equipment, Net

Property,plant,andequipmentisrecordedatcostlessaccumulateddepreciation.Maintenanceandrepairexpendituresarechargedtoexpensewhenincurred.Depreciationiscalculatedusingthestraight-linemethodovertheestimatedusefullivesoftheassets,whichare10to20yearsforlandimprovements,5to40yearsforbuildingsandimprovements,and1to15yearsformachineryandequipment.

Weperiodicallyevaluate,wheneventsandcircumstanceswarrant,thenetrealizablevalueofproperty,plant,andequipmentandotherlong-livedassets,relyingonanumberoffactorsincludingoperatingresults,businessplans,economicprojections,andanticipatedfuturecashflows.Whenindicatorsofpotentialimpairmentarepresent,thecarryingvaluesoftheassetgroupareevaluatedinrelationtotheoperatingperformanceandestimatedfutureundiscountedcashflowsoftheunderlyingassetgroup.Impairmentofthecarryingvalueisrecognizedwheneveranticipatedfutureundiscountedcashflowestimatesarelessthanthecarryingvalueoftheasset.Fairvalueestimatesarebasedonassumptionsconcerningtheamountandtimingofestimatedfuturecashflowsanddiscountrates,reflectingvaryingdegreesofperceivedrisk.

Goodwill and Other Intangible Assets

Intangibleassetsincludebothindeterminable-livedresidualgoodwillanddeterminable-livedidentifiableintangibleassets.Intangibleassetswithadeterminablelifeprimarilyincludeintellectualproperty,consistingofpatents,trademarks,andunpatentedtechnology,aswellascustomerrelationships.Recoverabilityestimatesrangefrom1to50yearsandcostsaregenerallyamortizedonastraight-linebasis.Anevaluationoftheremainingusefullifeofdeterminable-livedintangibleassetsisperformedonaperiodicbasisandwheneventsandcircumstanceswarrantanevaluation.

Atfiscalyearend2016,wehadsixreportingunits,fiveofwhichcontainedgoodwill.Thereweretworeportingunitsineachofourthreesegments.Whenchangesoccurinthecompositionofoneormorereportingunits,goodwillisreassignedtothereportingunitsaffectedbasedontheirrelativefairvalues.

Goodwillimpairmentisevaluatedbycomparingthecarryingvalueofeachreportingunittoitsfairvalueonthefirstdayofthefourthfiscalquarterofeachyearorwheneverwebelieveatriggeringeventrequiringamorefrequentassessmenthasoccurred.Inassessingtheexistenceofatriggeringevent,managementreliesonanumberofreportingunit-specificfactorsincludingoperatingresults,businessplans,economicprojections,anticipatedfuturecashflows,transactions,andmarketplacedata.Thereareinherentuncertaintiesrelatedtothesefactorsandmanagement'sjudgmentinapplyingthesefactorstotheimpairmentanalysis.

Whentestingforgoodwillimpairment,weperformastepIgoodwillimpairmenttesttoidentifypotentialimpairmentbycomparingthefairvalueofareportingunitwithitscarryingamount.Ifthecarryingamountofareportingunitexceedsitsfairvalue,goodwillmaybeimpairedandastepII

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.SummaryofSignificantAccountingPolicies(Continued)

goodwillimpairmenttestisperformedtomeasuretheamountofimpairment,ifany.InthestepIIgoodwillimpairmenttest,wecomparetheimpliedfairvalueofreportingunitgoodwillwiththecarryingamountofthatgoodwill.Ifthecarryingamountofreportingunitgoodwillexceedstheimpliedfairvalueofthatgoodwill,animpairmentlossisrecognizedinanamountequaltotheexcess.Theimpliedfairvalueofgoodwillisdeterminedinamannerconsistentwithhowgoodwillisrecognizedinabusinesscombination.Weallocatethefairvalueofareportingunittoalloftheassetsandliabilitiesofthatunit,includingintangibleassets,asifthereportingunithadbeenacquiredinabusinesscombination.Anyexcessofthefairvalueofareportingunitovertheamountsassignedtoitsassetsandliabilitiesistheimpliedfairvalueofgoodwill.

FairvalueestimatesusedinthestepIgoodwillimpairmenttestsarecalculatedusinganincomeapproachbasedonthepresentvalueoffuturecashflowsofeachreportingunit.Theincomeapproachgenerallyhasbeensupportedbyguidelineanalyses(amarketapproach).Theseapproachesincorporateanumberofassumptionsincludingfuturegrowthrates,discountrates,incometaxrates,andmarketactivityinassessingfairvalueandarereportingunitspecific.Changesineconomicandoperatingconditionsimpactingtheseassumptionscouldresultingoodwillimpairmentsinfutureperiods.

Research and Development

Researchanddevelopmentexpendituresareexpensedwhenincurredandareincludedinresearch,development,andengineeringexpensesontheConsolidatedStatementsofOperations.Researchanddevelopmentexpensesincludesalaries,directcostsincurred,andbuildingandoverheadexpenses.Theamountsexpensedinfiscal2016,2015,and2014were$566million,$540million,and$484million,respectively.

Income Taxes

IncometaxesarecomputedinaccordancewiththeprovisionsofAccountingStandardsCodification("ASC")740,IncomeTaxes.DeferredtaxliabilitiesandassetsarerecognizedfortheexpectedfuturetaxconsequencesofeventsthathavebeenreflectedontheConsolidatedFinancialStatements.Deferredtaxliabilitiesandassetsaredeterminedbasedonthedifferencesbetweenthebookandtaxbasesofparticularassetsandliabilitiesandoperatinglosscarryforwardsusingtaxratesineffectfortheyearsinwhichthedifferencesareexpectedtoreverse.Avaluationallowanceisprovidedtooffsetdeferredtaxassetsif,basedupontheavailableevidence,itismorelikelythannotthatsomeorallofthedeferredtaxassetswillnotberealized.

Thecalculationofourtaxliabilitiesincludesestimatesforuncertaintiesintheapplicationofcomplextaxregulationsacrossmultipleglobaljurisdictionswhereweconductouroperations.UndertheuncertaintaxpositionprovisionsofASC740,werecognizeliabilitiesfortaxandrelatedinterestforissuesintheU.S.andothertaxjurisdictionsbasedonourestimateofwhether,andtheextenttowhich,additionaltaxesandrelatedinterestwillbedue.Thesetaxliabilitiesandrelatedinterestarereflectednetoftheimpactofrelatedtaxlosscarryforwards,assuchtaxlosscarryforwardswillbeappliedagainstthesetaxliabilitiesandwillreducetheamountofcashtaxpaymentsdueupontheeventualsettlementwiththetaxauthorities.Theseestimatesmaychangeduetochangingfactsandcircumstances.Duetothecomplexityoftheseuncertainties,theultimateresolutionmayresultinasettlementthatdiffersfromourcurrentestimateofthetaxliabilitiesandrelatedinterest.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.SummaryofSignificantAccountingPolicies(Continued)

Financial Instruments

Ourfinancialinstrumentsconsistprimarilyofcashandcashequivalents,accountsreceivable,accountspayable,debt,andderivativefinancialinstruments.

WeaccountforderivativefinancialinstrumentcontractsontheConsolidatedBalanceSheetsatfairvalue.ForinstrumentsnotdesignatedashedgesunderASC815,DerivativesandHedging,thechangesintheinstruments'fairvaluearerecognizedcurrentlyinearnings.Forinstrumentsdesignatedascashflowhedges,theeffectiveportionofchangesinthefairvalueofaderivativeisrecordedinothercomprehensiveincome(loss)andreclassifiedintoearningsinthesameperiodorperiodsduringwhichtheunderlyinghedgeditemaffectsearnings.Ineffectiveportionsofacashflowhedge,includingamountsexcludedfromthehedgingrelationship,arerecognizedcurrentlyinearnings.Changesinthefairvalueofinstrumentsdesignatedasfairvaluehedgesaffectthecarryingvalueoftheassetorliabilityhedged,withchangesinboththederivativeinstrumentandthehedgedassetorliabilitybeingrecognizedcurrentlyinearnings.

Wedeterminethefairvalueofourfinancialinstrumentsbyusingmethodsandassumptionsthatarebasedonmarketconditionsandrisksexistingateachbalancesheetdate.Standardmarketconventionsareusedtodeterminethefairvalueoffinancialinstruments,includingderivatives.

ThecashflowsrelatedtoderivativefinancialinstrumentsarereportedintheoperatingactivitiessectionoftheConsolidatedStatementsofCashFlows.

Ourderivativefinancialinstrumentspresentcertainmarketandcounterpartyrisks.Concentrationofcounterpartyriskismitigated,however,byouruseoffinancialinstitutionsworldwide,substantiallyallofwhichhavelong-termStandard&Poor's,Moody's,and/orFitchcreditratingsofA/A2orhigher.Inaddition,weutilizeonlyconventionalderivativefinancialinstruments.Weareexposedtopotentiallossesifacounterpartyfailstoperformaccordingtothetermsofitsagreement.Withrespecttocounterpartynetassetpositionsrecognizedatfiscalyearend2016,wehaveassessedthelikelihoodofcounterpartydefaultasremote.Wecurrentlyprovideguaranteesfromawholly-ownedsubsidiarytothecounterpartiestoourcommodityswapderivativesandexchangecashcollateralwiththecounterpartiestoourcross-currencyswapcontracts.Thelikelihoodofperformanceontheguaranteeshasbeenassessedasremote.Forallotherderivativefinancialinstruments,wearenotrequiredtoprovide,nordowerequirecounterpartiestoprovide,collateralorothersecurity.

Fair Value Measurements

ASC820,FairValueMeasurementsandDisclosures,specifiesafairvaluehierarchybasedupontheobservableinputsutilizedinvaluationofcertainassetsandliabilities.Observableinputs(highestlevel)reflectmarketdataobtainedfromindependentsources,whileunobservableinputs(lowestlevel)reflectinternallydevelopedmarketassumptions.Fairvaluemeasurementsareclassifiedunderthefollowinghierarchy:

• Level1.Quotedpricesinactivemarketsforidenticalassetsandliabilities.

• Level2.Quotedpricesinactivemarketsforsimilarassetsandliabilities,orotherinputsthatareobservablefortheassetorliability,eitherdirectlyorindirectly,forsubstantiallythefulltermoftheassetorliability.

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NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

2.SummaryofSignificantAccountingPolicies(Continued)

• Level3.Unobservableinputsthataresupportedbylittleornomarketactivityandthataresignificanttothefairvalueoftheassetsandliabilities.Thisincludescertainpricingmodels,discountedcashflowsmethodologies,andsimilartechniquesthatusesignificantunobservableinputs.

Financialassetsandliabilitiesmeasuredatfairvalueonarecurringbasisaregenerallyvaluedusinglevel2inputs.

Financialinstrumentsotherthanderivativeinstrumentsincludecashandcashequivalents,accountsreceivable,accountspayable,anddebt.TheseinstrumentsarerecordedontheConsolidatedBalanceSheetsatbookvalue.Forcashandcashequivalents,accountsreceivable,andaccountspayable,webelievebookvalueapproximatesfairvalueduetotheshort-termnatureoftheseinstruments.SeeNote11fordisclosureofthefairvalueofdebt.Thefollowingisadescriptionofthevaluationmethodologiesusedfortherespectivefinancialinstruments:

• Cashandcashequivalents.Cashandcashequivalentsarevaluedatbookvalue,whichweconsidertobeequivalenttounadjustedquotedprices(level1).

• Accountsreceivable.Accountsreceivablearevaluedbasedonthenetvalueexpectedtoberealized.Thenetrealizablevaluegenerallyrepresentsanobservablecontractualagreement(level2).

• Accountspayable.Accountspayablearevaluedbasedonthenetvalueexpectedtobepaid,generallysupportedbyanobservablecontractualagreement(level2).

• Debt.Thefairvalueofdebt,includingbothcurrentandnon-currentmaturities,isderivedfromquotedmarketpricesorotherpricingdeterminationsbasedontheresultsofmarketapproachvaluationmodelsusingobservablemarketdatasuchasrecentlyreportedtrades,bidandofferinformation,andbenchmarksecurities(level2).

Pension

ThefundedstatusofourdefinedbenefitpensionplansisrecognizedontheConsolidatedBalanceSheetsandismeasuredasthedifferencebetweenthefairvalueofplanassetsandtheprojectedbenefitobligationatthemeasurementdate.Theprojectedbenefitobligationrepresentstheactuarialpresentvalueofbenefitsprojectedtobepaiduponretirementfactoringinestimatedfuturecompensationlevels.Thefairvalueofplanassetsrepresentsthecurrentmarketvalueofcumulativecompanyandparticipantcontributionsmadetoirrevocabletrustfunds,heldforthesolebenefitofparticipants,whichareinvestedbythetrusteeofthefunds.Thebenefitsunderourdefinedbenefitpensionplansarebasedonvariousfactors,suchasyearsofserviceandcompensation.

Netperiodicpensionbenefitcostisbasedontheutilizationoftheprojectedunitcreditmethodofcalculationandischargedtoearningsonasystematicbasisovertheexpectedaverageremainingservicelivesofcurrentparticipants.

Themeasurementofbenefitobligationsandnetperiodicbenefitcostisbasedonestimatesandassumptionsdeterminedbyourmanagement.Thesevaluationsreflectthetermsoftheplansanduseparticipant-specificinformationsuchascompensation,age,andyearsofservice,aswellascertainassumptions,includingestimatesofdiscountrates,expectedreturnonplanassets,rateofcompensationincreases,interestcreditingrates,andmortalityrates.

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2.SummaryofSignificantAccountingPolicies(Continued)

Share-Based Compensation

Wedeterminethefairvalueofshareawardsonthedateofgrant.ShareoptionsarevaluedusingtheBlack-Scholes-Mertonvaluationmodel;restrictedshareawardsandperformanceawardsarevaluedusingourend-of-daysharepriceonthedateofgrant.Thefairvalueisexpensedratablyovertheexpectedserviceperiod,withanallowancemadeforestimatedforfeituresbasedonhistoricalemployeeactivity.Estimatesregardingtheattainmentofperformancecriteriaarereviewedperiodically;thecumulativeimpactofachangeinestimateregardingtheattainmentofperformancecriteriaisrecordedintheperiodinwhichthatchangeismade.

Earnings Per Share

Basicearningspershareiscomputedbydividingnetincomebythebasicweighted-averagenumberofcommonsharesoutstanding.Dilutedearningspershareiscomputedbydividingnetincomebytheweighted-averagenumberofcommonsharesoutstandingadjustedforthepotentiallydilutiveimpactofshare-basedcompensationarrangements.

Currency Translation

Forournon-U.S.dollarfunctionalcurrencysubsidiaries,assetsandliabilitiesaretranslatedintoU.S.dollarsusingfiscalyearendexchangerates.Salesandexpensesaretranslatedataveragemonthlyexchangerates.Foreigncurrencytranslationgainsandlossesareincludedasacomponentofaccumulatedothercomprehensiveincome(loss)withinequity.

Gainsandlossesresultingfromforeigncurrencytransactions,whichareincludedinearnings,wereimmaterialinfiscal2016,2015,and2014.

Restructuring Charges

Restructuringactivitiesinvolveemployee-relatedterminationcosts,facilityexitcosts,andassetimpairmentsresultingfromreductions-in-force,migrationoffacilitiesorproductlinesfromhigher-costtolower-costcountries,orconsolidationoffacilitieswithincountries.Werecognizeterminationcostsbasedonrequirementsestablishedbyseverancepolicy,governmentlaw,orpreviousactions.Facilityexitcostsgenerallyreflectthecosttoterminateafacilityleasebeforetheendofitsterm(measuredatfairvalueatthetimeweceaseusingthefacility)orcoststhatwillcontinuetobeincurredunderthefacilityleasewithoutfutureeconomicbenefittous.Restructuringactivitiesoftenresultinthedisposalorabandonmentofassetsthatrequireanaccelerationofdepreciationorimpairmentreflectingtheexcessoftheassets'carryingvaluesoverfairvalue.

Therecognitionofrestructuringcostsrequirethatwemakecertainjudgmentsandestimatesregardingthenature,timing,andamountofcostsassociatedwiththeplannedexitactivity.Totheextentouractualresultsdifferfromourestimatesandassumptions,wemayberequiredtorevisetheestimatedliabilities,requiringtherecognitionofadditionalrestructuringcostsorthereductionofliabilitiesalreadyrecognized.Attheendofeachreportingperiod,weevaluatetheremainingaccruedbalancestoensurethesebalancesareproperlystatedandtheutilizationofthereservesarefortheirintendedpurposeinaccordancewithdevelopedexitplans.

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2.SummaryofSignificantAccountingPolicies(Continued)

Acquisitions

Weaccountforacquiredbusinessesusingtheacquisitionmethodofaccounting.Thismethodrequires,amongotherthings,thatmostassetsacquiredandliabilitiesassumedberecognizedatfairvalueasoftheacquisitiondate.Weallocatethepurchasepriceofacquiredbusinessestothetangibleandintangibleassetsacquiredandliabilitiesassumedbasedonestimatedfairvalues,orasrequiredbyASC805,BusinessCombinations.Theexcessofthepurchasepriceovertheidentifiableassetsacquiredandliabilitiesassumedisrecordedasgoodwill.Wemayengageindependentthird-partyappraisalfirmstoassistusindeterminingthefairvaluesofassetsacquiredandliabilitiesassumed.Suchvaluationsrequiremanagementtomakesignificantestimatesandassumptions,especiallywithrespecttointangibleassets.

Contingent Liabilities

Werecordalosscontingencywhentheavailableinformationindicatesitisprobablethatwehaveincurredaliabilityandtheamountofthelossisreasonablyestimable.Whenarangeofpossiblelosseswithequallikelihoodexists,werecordthelowendoftherange.Thelikelihoodofalosswithrespecttoaparticularcontingencyisoftendifficulttopredict,anddeterminingameaningfulestimateofthelossorarangeoflossmaynotbepracticablebasedoninformationavailable.Inaddition,itisnotuncommonforsuchmatterstoberesolvedovermanyyears,duringwhichtimerelevantdevelopmentsandnewinformationmustcontinuouslybeevaluatedtodeterminewhetheralossisprobableandareasonableestimateofthatlosscanbemade.Whenalossisprobablebutareasonableestimatecannotbemade,orwhenalossisatleastreasonablypossible,disclosureisprovided.

Recently Issued Accounting Pronouncements

InMarch2016,theFinancialAccountingStandardsBoard("FASB")issuedanupdatetoASC718,Compensation—StockCompensation,tosimplifyvariousaspectsofaccountingforshare-basedpaymentstoemployees.Thisupdateiseffectiveforusinthefirstquarteroffiscal2018;however,weexpecttoearlyadoptthisupdateinthefirstquarteroffiscal2017.Weexpecttheimpactofadoptionoftheprovisionaddressingaccountingforexcesstaxbenefitsanddeficiencieswillincreasenoncurrentdeferredtaxassetsandretainedearningsbyapproximately$170million.AdoptionoftheremainingprovisionsoftheupdatewillnothaveamaterialimpactonourConsolidatedFinancialStatements.

InFebruary2016,theFASBissuedASC842,Leases,requiringlesseestorecognizealeaseliabilityandaright-of-useassetformostleases.Thisguidanceiseffectiveforusinthefirstquarteroffiscal2020.Wewilladoptthenewstandardusingamodifiedretrospectivetransitionapproachwhichrequiresapplicationofthenewguidanceforallperiodspresented.Wearecurrentlyassessingtheimpactthatadoptionwillhaveonourfinancialposition.

InMay2014,theFASBissuedASC606,RevenuefromContractswithCustomers.ThisguidancesupersedesASC605,RevenueRecognition,andintroducesasingle,comprehensive,five-steprevenuerecognitionmodel.ASC606alsoenhancesdisclosuresrelatedtorevenuerecognition.InAugust2015,theFASBdeferredtheeffectivedateofASC606byoneyear.ASC606iseffectiveforusinthefirstquarteroffiscal2019andallowsforeitherafullretrospectiveoramodifiedretrospectiveapproachatadoption.WearecontinuingtoassesstheimpactofadoptingASC606,butdonotexpectadoptiontohaveamaterialimpactonourresultsofoperationsorfinancialposition.

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2.SummaryofSignificantAccountingPolicies(Continued)

Recently Adopted Accounting Pronouncements

InNovember2015,theFASBissuedanupdatetoASC740requiringthatdeferredtaxassetsandliabilitiesbeclassifiedasnon-currentinaclassifiedstatementoffinancialposition.Weelectedtoearlyadoptthisupdateonaprospectivebasisduringfiscal2016.Priorperiodamountswerenotretrospectivelyadjusted.

InApril2015,theFASBissuedanupdatetoASC835,Interest,requiringthatdebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedonthebalancesheetasadirectdeductionfromthecarryingamountofthatdebtliability,consistentwithdebtdiscounts.Weelectedtoearlyadoptthisupdateduringfiscal2016.TheupdatewasappliedonaretrospectivebasisanddidnothaveamaterialimpactontheConsolidatedFinancialStatements.

3.RestructuringandOtherCharges,Net

Netrestructuringandotherchargesconsistedofthefollowing:

RestructuringCharges,Net

Netrestructuringchargesbysegmentwereasfollows:

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Fiscal 2016 2015 2014 (inmillions) Restructuringcharges,net $ 125 $ 93 $ 23Gainondivestiture (144) — —Othercharges(credits),net 21 59 (4)

$ 2 $ 152 $ 19

Fiscal 2016 2015 2014 (inmillions) TransportationSolutions $ 39 $ 6 $ 7IndustrialSolutions 28 29 7CommunicationsSolutions 58 58 9Restructuringcharges,net $ 125 $ 93 $ 23

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3.RestructuringandOtherCharges,Net(Continued)

Activityinourrestructuringreservesissummarizedasfollows:

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BalanceatBeginningofFiscalYear Charges

ChangesinEstimate

CashPayments

Non-CashItems

CurrencyTranslation

andOther(1)

BalanceatEndofFiscalYear

(inmillions) Fiscal2016Activity: Fiscal2016Actions: Employeeseverance $ — $ 86 $ — $ (32) $ — $ — $ 54Facilityandotherexitcosts — 3 — (3) — — —Property,plant,andequipment — 41 — — (41) — —Total — 130 — (35) (41) — 54

Fiscal2015Actions: Employeeseverance 45 3 (4) (31) — — 13Facilityandotherexitcosts 1 — — (1) — — —Total 46 3 (4) (32) — — 13

Fiscal2014Actions: Employeeseverance 4 — — (2) — — 2

Pre-FiscalFiscal2014Actions: Employeeseverance 20 — (6) (6) — 2 10Facilityandotherexitcosts 14 2 — (4) — — 12Total 34 2 (6) (10) — 2 22

Totalfiscal2016activity $ 84 $ 135 $ (10) $ (79) $ (41) $ 2 $ 91Fiscal2015Activity: Fiscal2015Actions: Employeeseverance $ — $ 68 $ — $ (23) $ — $ — $ 45Facilityandotherexitcosts — 3 — (2) — — 1Property,plant,andequipment — 21 — — (21) — —Total — 92 — (25) (21) — 46

Fiscal2014Actions: Employeeseverance 16 — — (7) — (5) 4Facilityandotherexitcosts 1 — — (1) — — —Total 17 — — (8) — (5) 4

Pre-Fiscal2014Actions: Employeeseverance 75 2 (4) (47) — (6) 20Facilityandotherexitcosts 22 3 — (12) — 1 14Total 97 5 (4) (59) — (5) 34

Totalfiscal2015activity $ 114 $ 97 $ (4) $ (92) $ (21) $ (10) $ 84

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3.RestructuringandOtherCharges,Net(Continued)

Fiscal 2016 Actions

Duringfiscal2016,weinitiatedarestructuringprogramassociatedwithheadcountreductionsimpactingallsegmentsandproductlineclosuresintheCommunicationsSolutionssegment.Inconnectionwiththisprogram,duringfiscal2016,werecordedrestructuringchargesof$130million.Weexpecttocompleteallrestructuringactionscommencedduringfiscal2016bytheendoffiscal2019andtoincurtotalchargesofapproximately$171millionwithremainingchargesrelatedprimarilytoemployeeseverance.

Thefollowingtablesummarizesexpected,incurred,andremainingchargesforthefiscal2016programbysegment:

Fiscal 2015 Actions

Duringfiscal2015,weinitiatedarestructuringprogramassociatedwithheadcountreductionsandproductlineclosures,primarilyimpactingtheCommunicationsSolutionsandIndustrialSolutionssegments.Inconnectionwiththisprogram,duringfiscal2016and2015,werecordednetrestructuring

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BalanceatBeginningofFiscalYear Charges

ChangesinEstimate

CashPayments

Non-CashItems

CurrencyTranslation

andOther(1)

BalanceatEndofFiscalYear

(inmillions) Fiscal2014Activity: Fiscal2014Actions: Employeeseverance $ — $ 10 $ — $ (13) $ — $ 19 $ 16Facilityandotherexitcosts — — — — — 1 1Property,plant,andequipment — 9 — — (9) — —Total — 19 — (13) (9) 20 17

Pre-Fiscal2014Actions: Employeeseverance 210 10 (20) (134) — 9 75Facilityandotherexitcosts 27 6 1 (13) — 1 22Property,plant,andequipment — 7 — — (7) — —Total 237 23 (19) (147) (7) 10 97

Totalfiscal2014activity $ 237 $ 42 $ (19) $ (160) $ (16) $ 30 $ 114

(1) Includesnetchargesassociatedwithdiscontinuedoperationsof$36millioninfiscal2014.

TotalExpectedCharges

ChargesIncurredinFiscal2016

RemainingExpectedCharges

(inmillions) TransportationSolutions $ 45 $ 38 $ 7IndustrialSolutions 30 28 2CommunicationsSolutions 96 64 32Total $ 171 $ 130 $ 41

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3.RestructuringandOtherCharges,Net(Continued)

creditsof$1millionandchargesof$92million,respectively.Wedonotexpecttoincuranyadditionalchargesrelatedtorestructuringprogramscommencedinfiscal2015.

Fiscal 2014 Actions

Duringfiscal2014,weinitiatedarestructuringprogramassociatedprimarilywithheadcountreductionsandmanufacturingsiteandproductlineclosuresintheCommunicationsSolutionssegment.Inconnectionwiththisprogram,werecordednetrestructuringchargesof$19millioninfiscal2014.Wedonotexpecttoincuranyadditionalchargesrelatedtorestructuringprogramscommencedinfiscal2014.

Pre-Fiscal 2014 Actions

Duringfiscal2016,2015,and2014,werecordednetrestructuringcreditsof$4million,chargesof$1million,andchargesof$4million,respectively,relatedtopre-fiscal2014actions.Wedonotexpecttoincuranyadditionalchargesrelatedtopre-fiscal2014actions.

Total Restructuring Reserves

RestructuringreservesincludedontheConsolidatedBalanceSheetswereasfollows:

GainonDivestiture

Duringfiscal2016,wesoldourCircuitProtectionDevices("CPD")businessfornetcashproceedsof$333million.Werecognizedapre-taxgainof$144milliononthetransaction.TheCPDbusinesswasreportedinourCommunicationsSolutionssegment.

OtherCharges(Credits),Net

Duringfiscal2016,weincurredcostsof$21million,associatedprimarilywiththedivestitureofcertainbusinesses.

Duringfiscal2015,inconnectionwiththesaleourBroadbandNetworkSolutions("BNS")business,weincurredcostsof$61million,consistingprimarilyof$36millionoflegalandprofessionalfeesand$18millionofchargesassociatedwiththeexitofafacility.Theseamountsarenotdirectlyrelatedtothebusinesssold,andaccordinglyhavebeenrecordedincontinuingoperations.SeeNote4foradditionalinformationregardingthedivestitureofBNS.

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FiscalYearEnd 2016 2015 (inmillions) Accruedandothercurrentliabilities $ 64 $ 60Otherliabilities 27 24Restructuringreserves $ 91 $ 84

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4.DiscontinuedOperations

Thefollowingtablepresentscertaincomponentsofincomefromdiscontinuedoperations,netofincometaxes:

Duringfiscal2015,wesoldourBNSbusinessfor$3.0billionincashandrecognizedapre-taxgainof$1.1billiononthetransaction.IntheU.S.,incometaxesassociatedwiththegainonthesaleofassetswerelargelyoffsetbyincometaxbenefitsrealizedonthesaleofseveralsubsidiaries.Incertainnon-U.S.jurisdictions,thesalewasexemptfromincometaxes.Duringfiscal2016,werecognizedanadditionalpre-taxgainof$29milliononthedivestiture,relatedprimarilytopensionandnetworkingcapitaladjustments.

Infiscal2006,theformershareholdersofCom-Netinitiatedalawsuitrelatedtoourfiscal2001acquisitionofCom-Net.InOctober2015,theCourtofCommonPleasinAlleghenyCounty,Pennsylvaniaenteredfinaljudgmentinfavorofthesellersandagainstusfor$127millionpluscosts.InJuly2016,weenteredintosettlementagreementswiththesellerspursuanttowhichweagreedtopaythesellersanaggregateamountof$96million,paymentofwhichwasmadeinfiscal2016,settlingallmattersindispute.

InconnectionwiththeCom-Netcase,werecordedareserveandpre-taxchargesof$127millionduringfiscal2015.Duringfiscal2016,inconnectionwiththesettlements,werecordedpre-taxcreditsof$30million,representingareleaseofexcessreserves.TheseamountsarereflectedinincomefromdiscontinuedoperationsontheConsolidatedStatementsofOperationsastheCom-NetcasewasassociatedwithourformerWirelessSystemsbusinesswhichwassoldin2009.

TheBNSandWirelessSystemsbusinessesmetthediscontinuedoperationscriteriaandwerereportedassuchinallperiodspresentedontheConsolidatedFinancialStatements.Priortoreclassificationtodiscontinuedoperations,theBNSandWirelessSystemsbusinesseswereincludedintheformerNetworkSolutionsandWirelessSystemssegments,respectively.

5.Acquisitions

Fiscal 2016 Acquisitions

Duringfiscal2016,weacquiredfourbusinesses,includingtheCregannaMedicalgroup,foracombinedcashpurchasepriceof$1.3billion,netofcashacquired.TheacquisitionshavebeenreportedaspartofourIndustrialSolutionsandTransportationSolutionssegmentsfromthedateofacquisition.

Wehavepreliminarilyallocatedthepurchasepriceofacquiredbusinessestotangibleandidentifiableintangibleassetsacquiredandliabilitiesassumedbasedontheirestimatedfairvalues.We

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Fiscal 2016 2015 2014 (inmillions) Netsalesfromdiscontinuedoperations $ — $ 1,595 $ 1,939

Pre-taxincomefromdiscontinuedoperations $ 30 $ 118 $ 224Pre-taxgainonsaleofdiscontinuedoperations 29 1,105 —Incometax(expense)benefit 9 (41) (57)Incomefromdiscontinuedoperations,netofincometaxes $ 68 $ 1,182 $ 167

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5.Acquisitions(Continued)

areintheprocessofcompletingthevaluationofidentifiableintangibleassets,fixedassets,pre-acquisitioncontingencies,andincometaxes.Accordingly,thefairvaluessetforthbelowaresubjecttoadjustmentuponfinalizationofthevaluations.Theamountofthesepotentialadjustmentscouldbesignificant.Weexpecttocompletethepurchasepriceallocationfortheseacquisitionsduringfiscal2017.

Thefollowingtablesummarizesthepreliminaryallocationofthepurchasepricetothefairvalueofidentifiableassetsacquiredandliabilitiesassumedatthedateofacquisition,inaccordancewiththeacquisitionmethodofaccounting:

Thefairvaluesassignedtointangibleassetswerepreliminarilydeterminedthroughtheuseoftheincomeapproach,specificallytherelieffromroyaltyandthemulti-periodexcessearningsmethods.Bothvaluationmethodsrelyonmanagementjudgment,includingexpectedfuturecashflowsresultingfromexistingcustomerrelationships,customerattritionrates,contributoryeffectsofotherassetsutilizedinthebusiness,peergroupcostofcapitalandroyaltyrates,andotherfactors.Usefullivesforintangibleassetsweredeterminedbasedupontheremainingusefuleconomiclivesoftheintangibleassetsthatareexpectedtocontributedirectlyorindirectlytofuturecashflows.

Acquiredintangibleassetsconsistedofthefollowing:

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(inmillions) Cashandcashequivalents $ 75Othercurrentassets 88Goodwill 836Intangibleassets 530Othernon-currentassets 39Totalassetsacquired 1,568

Currentliabilities 35Deferredincometaxes 107Othernon-currentliabilities 15Totalliabilitiesassumed 157Netassetsacquired 1,411

Cashandcashequivalentsacquired (75)Netcashpaid $ 1,336

Amount

Weighted-AverageAmortization

Period (inmillions) (inyears) Customerrelationships $ 300 18Developedtechnology 170 11Tradenamesandtrademarks 45 25Customerorderbacklog 15 3Total $ 530 16

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5.Acquisitions(Continued)

Theacquiredintangibleassetsarebeingamortizedonastraight-linebasisovertheirexpectedusefullives.

Goodwillof$836millionwasrecognizedinthesetransactions,representingtheexcessofthepurchasepriceoverthefairvalueofthetangibleandintangibleassetsacquiredandliabilitiesassumed.Thisgoodwillisattributableprimarilytocostsavingsandothersynergiesrelatedtooperationalefficienciesincludingtheconsolidationofmanufacturing,marketing,andgeneralandadministrativefunctions.ThegoodwillhasbeenallocatedtotheIndustrialSolutionsandTransportationSolutionssegmentsandisnotdeductiblefortaxpurposes.However,priortobeingacquiredbyus,oneofthefiscal2016acquisitionscompletedcertainacquisitionsthatresultedingoodwillwithanestimatedvalueof$15millionthatisdeductibleprimarilyforU.S.taxpurposes,whichwewilldeductthrough2025.

Fiscal2016acquisitionscontributednetsalesof$167millionandoperatingincomeof$8milliontoourConsolidatedStatementofOperationsduringfiscal2016.Theoperatingincomeincluded$10millionofacquisitioncosts,$7millionassociatedwiththeamortizationofacquisition-relatedfairvalueadjustmentsrelatedtoacquiredinventoriesandcustomerorderbacklog,and$2millionofintegrationcosts.

Fiscal 2015 Acquisitions

InOctober2014,weacquired100%oftheoutstandingsharesofMeasurementSpecialties,Inc.("MeasurementSpecialties"),aleadingglobaldesignerandmanufacturerofsensorsandsensor-basedsystems,for$86.00incashpershare.Thetotalvaluepaidwasapproximately$1.7billion,netofcashacquired,andincluded$225millionfortherepaymentofMeasurementSpecialties'debtandaccruedinterest.MeasurementSpecialtiesoffersabroadportfoliooftechnologiesincludingpressure,vibration,force,temperature,humidity,ultrasonic,position,andfluidsensors,forawiderangeofapplicationsandindustries.ThisbusinesshasbeenreportedaspartofourTransportationSolutionssegmentfromthedateofacquisition.

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5.Acquisitions(Continued)

Thefollowingtablesummarizestheallocationofthepurchasepricetothefairvalueofidentifiableassetsacquiredandliabilitiesassumedatthedateofacquisition,inaccordancewiththeacquisitionmethodofaccounting:

Thefairvaluesassignedtointangibleassetsweredeterminedthroughtheuseoftheincomeapproach,specificallytherelieffromroyaltyandthemulti-periodexcessearningsmethods.Thevaluationoftangibleassetswasderivedusingacombinationoftheincome,market,andcostapproaches.Usefullivesforintangibleassetsweredeterminedbasedupontheremainingusefuleconomiclivesoftheintangibleassetsthatareexpectedtocontributedirectlyorindirectlytofuturecashflows.

Acquiredintangibleassetsconsistedofthefollowing:

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(inmillions) Cashandcashequivalents $ 37Accountsreceivable 84Inventories 110Othercurrentassets 20Property,plant,andequipment 95Goodwill 1,064Intangibleassets 547Othernon-currentassets 9Totalassetsacquired 1,966

Short-termdebt 20Accountspayable 48Othercurrentliabilities 67Long-termdebt 203Deferredincometaxes 98Othernon-currentliabilities 9Totalliabilitiesassumed 445Netassetsacquired 1,521

Cashandcashequivalentsacquired (37)Netcashpaid $ 1,484

Amount

Weighted-AverageAmortization

Period (inmillions) (inyears) Customerrelationships $ 370 18Developedtechnology 161 9Tradenamesandtrademarks 4 1Customerorderbacklog 12 <1Total $ 547 15

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5.Acquisitions(Continued)

Theacquiredintangibleassetsarebeingamortizedonastraight-linebasisovertheirexpectedusefullives.

Goodwillof$1,064millionwasrecognizedinthetransaction,representingtheexcessofthepurchasepriceoverthefairvalueofthetangibleandintangibleassetsacquiredandliabilitiesassumed.Thisgoodwillisattributableprimarilytocostsavingsandothersynergiesrelatedtooperationalefficienciesincludingtheconsolidationofmanufacturing,marketing,andgeneralandadministrativefunctions.ThegoodwillhasbeenallocatedtotheTransportationSolutionssegmentandisnotdeductiblefortaxpurposes.However,priortoitsmergerwithus,MeasurementSpecialtiescompletedcertainacquisitionsthatresultedingoodwillwithanestimatedvalueof$23millionthatisdeductibleprimarilyforU.S.taxpurposes,whichwewilldeductthrough2030.

Duringfiscal2015,MeasurementSpecialtiescontributednetsalesof$548milliontoourConsolidatedStatementofOperations.Duetothecomminglednatureofouroperations,itisnotpracticabletoseparatelyidentifyoperatingincomeofMeasurementSpecialtiesonastand-alonebasis.

Duringfiscal2015,weacquiredthreeadditionalbusinessesfor$241millionincash,netofcashacquired.

Fiscal 2014 Acquisitions

Duringfiscal2014,weacquiredfivebusinesses,includingtheSEACONGroup("SEACON"),aleadingproviderofunderwaterconnectortechnologyandsystems,for$522millionincash,netofcashacquired.

Pro Forma Financial Information

Thefollowingunauditedproformafinancialinformationreflectsourconsolidatedresultsofoperationshadthefiscal2016acquisitionsoccurredatthebeginningoffiscal2015andtheMeasurementSpecialtiesacquisitionoccurredatthebeginningoffiscal2014:

Theproformafinancialinformationforthefiscal2016acquisitionswasbasedonourpreliminaryallocationofthepurchasepriceandthereforeissubjecttoadjustmentuponfinalizationofthepurchasepriceallocation.Theproformaadjustments,whichwerenotsignificant,includedinterestexpensebasedonproformachangesinourcombinedcapitalstructure,chargesrelatedtoacquiredcustomerorderbacklog,chargesrelatedtotheamortizationofthefairvalueofacquiredintangibleassets,chargesrelatedtothefairvalueadjustmenttoacquisition-dateinventories,andacquisitionandothercosts,andtherelatedtaxeffects.

Proformaresultsdonotincludeanyanticipatedsynergiesorotheranticipatedbenefitsoftheseacquisitions.Accordingly,theunauditedproformafinancialinformationisnotnecessarilyindicativeofeitherfutureresultsofoperationsorresultsthatmighthavebeenachievedhadtheseacquisitionsoccurredatthebeginningoftheprecedingfiscalyears.

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ProFormaforFiscal 2016 2015 2014 (inmillions,exceptpersharedata) Netsales $ 12,471 $ 12,613 $ 12,429Netincome 2,038 2,448 1,744Dilutedearningspershare 5.52 $ 5.96 $ 4.18

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6.Inventories

Inventoriesconsistedofthefollowing:

7.Property,Plant,andEquipment,Net

Netproperty,plant,andequipmentconsistedofthefollowing:

Depreciationexpensewas$436million,$463million,and$467millioninfiscal2016,2015,and2014,respectively.

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FiscalYearEnd 2016 2015 (inmillions) Rawmaterials $ 241 $ 261Workinprogress 504 535Finishedgoods 669 773Inventoriedcostsonlong-termcontracts 182 46Inventories $ 1,596 $ 1,615

FiscalYearEnd 2016 2015 (inmillions) Landandimprovements $ 159 $ 163Buildingsandimprovements 1,272 1,261Machineryandequipment 6,890 6,692Constructioninprocess 567 521Grossproperty,plant,andequipment 8,888 8,637Accumulateddepreciation (5,836) (5,717)Property,plant,andequipment,net $ 3,052 $ 2,920

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8.Goodwill

Thechangesinthecarryingamountofgoodwillbysegmentwereasfollows:

Duringfiscal2016,weacquiredfourbusinessesandrecognizedgoodwillof$836million,whichbenefitedtheIndustrialSolutionsandTransportationSolutionssegments.Duringfiscal2015,wecompletedtheacquisitionofMeasurementSpecialtiesandrecognizedgoodwillof$1,064million,whichbenefitedtheTransportationSolutionssegment.SeeNote5foradditionalinformationregardingacquisitions.

Duringfiscal2016,netgoodwillof$117millionwaswritten-offinconnectionwiththesaleofourCPDbusiness.SeeNote3foradditionalinformationregardingthedivestitureofCPD.

Wecompletedourannualgoodwillimpairmenttestinthefourthquarteroffiscal2016anddeterminedthatnoimpairmentexisted.

9.IntangibleAssets,Net

Intangibleassetsconsistedofthefollowing:

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Transportation

Solutions IndustrialSolutions

CommunicationsSolutions Total

(inmillions)

Fiscalyearend2014(1) $ 834 $ 2,165 $ 727 $ 3,726Acquisitions 1,066 145 — 1,211Currencytranslation (37) (57) (19) (113)

Fiscalyearend2015(1) 1,863 2,253 708 4,824Acquisitions 60 776 — 836Divestitureofbusiness — — (117) (117)Currencytranslation (20) (24) (7) (51)

Fiscalyearend2016(1) $ 1,903 $ 3,005 $ 584 $ 5,492

(1) Atfiscalyearend2016,2015,and2014,accumulatedimpairmentlossesfortheTransportationSolutionsandIndustrialSolutionssegmentswere$2,191millionand$669million,respectively.AccumulatedimpairmentlossesfortheCommunicationsSolutionssegmentwere$1,514millionatfiscalyearend2016and$1,626millionatfiscalyearend2015and2014.

FiscalYearEnd 2016 2015

GrossCarryingAmount

AccumulatedAmortization

NetCarryingAmount

GrossCarryingAmount

AccumulatedAmortization

NetCarryingAmount

(inmillions) Customerrelationships $ 1,332 $ (212) $ 1,120 $ 1,053 $ (148) $ 905Intellectualproperty 1,300 (563) 737 1,150 (524) 626Other 36 (14) 22 37 (13) 24Total $ 2,668 $ (789) $ 1,879 $ 2,240 $ (685) $ 1,555

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9.IntangibleAssets,Net(Continued)

Duringfiscal2016,thegrosscarryingamountofintangibleassetsincreasedby$530millionasaresultoftheacquisitionoffourbusinesses.SeeNote5foradditionalinformationregardingacquisitions.

Intangibleassetamortizationexpensewas$149million,$153million,and$84millionforfiscal2016,2015,and2014,respectively.Theaggregateamortizationexpenseonintangibleassetsisexpectedtobeasfollows:

10.AccruedandOtherCurrentLiabilities

Accruedandothercurrentliabilitiesconsistedofthefollowing:

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(inmillions) Fiscal2017 $ 170Fiscal2018 170Fiscal2019 167Fiscal2020 160Fiscal2021 157Thereafter 1,055Total $ 1,879

FiscalYearEnd 2016 2015 (inmillions) Accruedpayrollandemployeebenefits $ 431 $ 424Dividendspayabletoshareholders 263 260Incometaxespayable 149 198Sharerepurchaseprogrampayable — 177Restructuringreserves 64 60Interestpayable 56 53Deferredincometaxes — 33Other 474 544Accruedandothercurrentliabilities $ 1,437 $ 1,749

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11.Debt

Debtwasasfollows:

DuringJanuary2016,TycoElectronicsGroupS.A.("TEGSA"),our100%-ownedsubsidiary,issued$350millionaggregateprincipalamountof3.700%seniornotesdueFebruary15,2026.ThenotesareTEGSA'sunsecuredseniorobligationsandrankequallyinrightofpaymentwithallexistingandanyfutureseniorindebtednessofTEGSAandseniortoanysubordinatedindebtednessthatTEGSAmayincur.

TEGSAhasafive-yearunsecuredseniorrevolvingcreditfacility("CreditFacility")withtotalcommitmentsof$1,500million.TheCreditFacilitywasamendedinDecember2015primarilytoextendthematuritydatefromAugust2018toDecember2020.TEGSAhadnoborrowingsundertheCreditFacilityatfiscalyearend2016and2015.

BorrowingsundertheCreditFacilitybearinterestatarateperannumequalto,attheoptionofTEGSA,(1)LIBORplusanapplicablemarginbaseduponthesenior,unsecured,long-termdebtratingofTEGSA,or(2)analternatebaserateequaltothehighestof(i)BankofAmerica,N.A.'sbaserate,(ii)thefederalfundseffectiverateplus1/2of1%,and(iii)one-monthLIBORplus1%,plus,ineachcase,anapplicablemarginbaseduponthesenior,unsecured,long-termdebtratingofTEGSA.TEGSAisrequiredtopayanannualfacilityfeerangingfrom5.0to12.5basispointsbasedupontheamountofthelenders'commitmentsundertheCreditFacilityandtheapplicablecreditratingsofTEGSA.

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FiscalYearEnd 2016 2015 (inmillions) Commercialpaper,ataweighted-averageinterestrateof0.69%atfiscalyearend2016 $ 330 $ —Seniorfloatingratenotesdue2016(1) — 5006.55%seniornotesdue2017 708 7082.375%seniornotesdue2018 325 3252.35%seniornotesdue2019 250 2504.875%seniornotesdue2021 250 2503.50%seniornotesdue2022 500 5001.100%euro-denominatedseniornotesdue2023 618 6143.45%seniornotesdue2024 250 2503.700%seniornotesdue2026 350 —7.125%seniornotesdue2037 477 477Other 3 —Totalprincipaldebt 4,061 3,874

Unamortizeddiscountsanddebtissuancecosts (26) (27)Effectsoffairvaluehedge-designatedinterestrateswaps 35 37Totaldebt $ 4,070 $ 3,884

(1) Theseniorfloatingratenotesdue2016boreinterestatarateofthree-monthLondoninterbankofferedrate("LIBOR")plus0.20%peryear.

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11.Debt(Continued)

TheCreditFacilitycontainsafinancialratiocovenantprovidingthatif,asofthelastdayofeachfiscalquarter,ourratioofConsolidatedTotalDebttoConsolidatedEBITDA(asdefinedintheCreditFacility)forthethenmostrecentlyconcludedperiodoffourconsecutivefiscalquartersexceeds3.75to1.0,anEventofDefault(asdefinedintheCreditFacility)istriggered.TheCreditFacilityandourotherdebtagreementscontainothercustomarycovenants.

Periodically,TEGSAissuescommercialpapertoU.S.institutionalaccreditedinvestorsandqualifiedinstitutionalbuyersinaccordancewithavailableexemptionsfromtheregistrationrequirementsoftheSecuritiesActof1933aspartofourongoingefforttomaintainfinancialflexibilityandtopotentiallydecreasethecostofborrowings.BorrowingsunderthecommercialpaperprogramarebackedbytheCreditFacility.

TEGSA'spaymentobligationsunderitsseniornotes,commercialpaper,andCreditFacilityarefullyandunconditionallyguaranteedbyitsparent,TEConnectivityLtd.

Principalpaymentsrequiredfordebtareasfollows:

Thefairvalueofourdebt,basedonindicativevaluations,wasapproximately$4,424millionand$4,115millionatfiscalyearend2016and2015,respectively.

12.CommitmentsandContingencies

LegalProceedings

Inthenormalcourseofbusiness,wearesubjecttovariouslegalproceedingsandclaims,includingpatentinfringementclaims,productliabilitymatters,employmentdisputes,disputesonagreements,othercommercialdisputes,environmentalmatters,antitrustclaims,andtaxmatters,includingnon-incometaxmatterssuchasvalueaddedtax,salesandusetax,realestatetax,andtransfertax.Althoughitisnotfeasibletopredicttheoutcomeoftheseproceedings,baseduponourexperience,currentinformation,andapplicablelaw,wedonotexpectthattheoutcomeoftheseproceedings,eitherindividuallyorintheaggregate,willhaveamaterialeffectonourresultsofoperations,financialposition,orcashflows.

IncomeTaxMatters

Tax Sharing Agreement

Infiscal2007,webecameanindependent,publiclytradedcompanyowningtheformerelectronicsbusinessesofTycoInternationalplc("TycoInternational").OnJune29,2007,TycoInternational

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(inmillions) Fiscal2017 $ 331Fiscal2018 708Fiscal2019 576Fiscal2020 1Fiscal2021 250Thereafter 2,195Total $ 4,061

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12.CommitmentsandContingencies(Continued)

distributedallofourshares,aswellasitssharesofitsformerhealthcarebusinesses("Covidien"),toitscommonshareholders(the"separation").Asaresultofsubsequenttransactions,TycoInternationalandCovidiennowoperateaspartofJohnsonControlsInternationalplcandMedtronicplc,respectively.

Uponseparation,weenteredintoaTaxSharingAgreement,underwhichwesharedresponsibilityforcertainofour,TycoInternational's,andCovidien'sincometaxliabilitiesbasedonasharingformulaforperiodspriortoandincludingJune29,2007.We,TycoInternational,andCovidienshared31%,27%,and42%,respectively,ofU.S.incometaxliabilitiesthatarosefromadjustmentsmadebytaxauthoritiestoour,TycoInternational's,andCovidien'sU.S.incometaxreturns.PursuanttotheTaxSharingAgreement,weenteredintocertainguaranteecommitmentsandindemnificationswithTycoInternationalandCovidien.

1997-2000 Audit Years

InOctober2012,theInternalRevenueService("IRS")issuedspecialagreementForms870-AD,effectivelysettlingitsauditofalltaxmattersfortheyears1997through2000,excludingoneissueinvolvingthetaxtreatmentofcertainintercompanydebttransactions.TheIRSfieldexaminationassertedthatcertainintercompanyloansoriginatedduringtheyears1997through2000didnotconstitutedebtforU.S.federalincometaxpurposesanddisallowedapproximately$2.7billionofrelatedinterestdeductionsrecognizedduringtheperiodonTycoInternational'sU.S.incometaxreturns.Inaddition,iftheIRSwereultimatelysuccessfulinassertingitsclaim,itlikelywouldhavedisallowedanadditional$6.6billionofinterestdeductionsreflectedonU.S.incometaxreturnsinyearssubsequenttofiscal2000.TycoInternationaldisagreedwiththeIRSpositionandfiledpetitionsintheU.S.TaxCourtcontestingtheIRS'sproposedadjustments.

InJanuary2016,TycoInternationalenteredintoStipulationsofSettledIssues(the"Stipulations")withtheIRSintendedtoresolvealldisputesrelatedtotheintercompanydebtmatterdiscussedabove.TheStipulationswerecontingentupontheAppealsDivisionoftheIRSapplyingthesamesettlementorframeworktoallintercompanydebtissuesonappealforsubsequentauditcycles(years2001through2007).

Duringthesecondquarteroffiscal2016,wemadeapre-paymenttotheIRSof$443million,fordeficienciesforwhichwearetheprimaryobligor,tostoptheaccretionofdeficiencyinterest.Concurrentwithremittingthispayment,wewerereimbursed$305millionbyTycoInternationalandCovidienpursuanttotheirindemnificationsforpre-separationtaxmatters.Inaddition,wepaid$2milliontoCovidienforourshareofdeficienciesforwhichCovidienwastheprimaryobligor.Asaresult,ournetcashpaymentinconnectionwiththedisputeddebtmatterwas$140millionduringthesecondquarteroffiscal2016.

InMay2016,theU.S.TaxCourtenteredordersconsistentwiththeStipulationsanddismissedthepetitionsassettledandtheAppealsDivisionoftheIRSissuedspecialagreementForms870-ADthateffectivelysettledthemattersonappealonthesametermsasthosesetforthintheStipulations.Asaresult,wehaveresolvedallaspectsofthedisputeddebtmatterbeforetheU.S.TaxCourt(forthe1997through2000auditcycle)andbeforetheAppealsDivisionoftheIRSforsubsequentauditcycles(2001through2007).Inaddition,weexpectthetermsoftheresolutionforthedisputeddebtmatterwillbeconsistentlyappliedbytheIRStoallofourU.S.incometaxreturnsfiledsubsequenttofiscal2007.

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12.CommitmentsandContingencies(Continued)

Asaresultofthesedevelopments,infiscal2016,werecognizedanincometaxbenefitof$1,135million,representingareductionintaxreserves,andotherexpenseof$604million,representingareductionofassociatedindemnificationreceivables,pursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.TheU.S.taxlossandcreditcarryforwardsfinalizedasaresultofthesettlementofthedisputeddebtmatterwereassessedforrealizabilityinfiscal2016andincludedinourvaluationallowanceanalysis.SeeNote15forfurtherinformationregardingthevaluationallowancefordeferredtaxassets.

2001-2007 Audit Years

Infiscal2015,theIRSissuedgeneralagreementForms870,effectivelysettlingitsauditsoftaxmattersfortheyears2001through2007,excludingthedisputeddebtmatterwhichwassubsequentlyresolvedduringfiscal2016.Asaresultofthesedevelopments,infiscal2015,werecognizedanincometaxbenefitof$201million,representingareductionintaxreservesforthemattersthatwereeffectivelysettled,andotherexpenseof$84million,representingareductionofassociatedindemnificationreceivables,pursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.

2008-2010 Audit Years

Infiscal2015,theIRSissuedgeneralagreementForms870,effectivelysettlingitsauditsoftaxmattersfortheyears2008through2010,excludingthedisputeddebtmatter.Asdiscussedabove,weexpectthetermsoftheresolutionforthedisputeddebtmatterwillbeconsistentlyappliedbytheIRStoallofourU.S.incometaxreturnsfiledsubsequenttofiscal2007.Asaresultofthesedevelopments,infiscal2015,werecognizedanincometaxbenefitof$63million,representingareductionintaxreservesforthemattersthatwereeffectivelysettled.

EnvironmentalMatters

Weareinvolvedinvariousstagesofinvestigationandcleanuprelatedtoenvironmentalremediationmattersatanumberofsites.Theultimatecostofsitecleanupisdifficulttopredictgiventheuncertaintiesregardingtheextentoftherequiredcleanup,theinterpretationofapplicablelawsandregulations,andalternativecleanupmethods.Asoffiscalyearend2016,weconcludedthatitwasprobablethatwewouldincurremedialcostsintherangeof$17millionto$42million,andthatthebestestimatewithinthisrangewas$20million.Webelievethatanypotentialpaymentofsuchestimatedamountswillnothaveamaterialadverseeffectonourresultsofoperations,financialposition,orcashflows.

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12.CommitmentsandContingencies(Continued)

Leases

Wehavefacility,land,vehicle,andequipmentleasesthatexpireatvariousdates.Rentalexpenseundertheseleaseswas$143million,$141million,and$130millionforfiscal2016,2015,and2014,respectively.Atfiscalyearend2016,theminimumleasepaymentobligationsundernon-cancelableleaseobligationswereasfollows:

Guarantees

Indisposingofassetsorbusinesses,weoftenproviderepresentations,warranties,and/orindemnitiestocovervariousrisksincludingunknowndamagetoassets,environmentalrisksinvolvedinthesaleofrealestate,liabilityforinvestigationandremediationofenvironmentalcontaminationatwastedisposalsitesandmanufacturingfacilities,andunidentifiedtaxliabilitiesandlegalfeesrelatedtoperiodspriortodisposition.Wedonotexpectthattheseuncertaintieswillhaveamaterialadverseeffectonourresultsofoperations,financialposition,orcashflows.

Atfiscalyearend2016,wehadoutstandinglettersofcredit,lettersofguarantee,andsuretybondsof$324million.

Inthenormalcourseofbusiness,weareliableforcontractcompletionandproductperformance.Intheopinionofmanagement,suchobligationswillnotsignificantlyaffectourresultsofoperations,financialposition,orcashflows.

Wegenerallyrecordestimatedproductwarrantycostswhencontractrevenuesarerecognizedunderthepercentage-of-completionmethodforconstructionrelatedcontracts;otherwarrantyreservesarenotsignificant.Theestimationisbasedprimarilyonhistoricalexperienceandactualwarrantyclaims.Amountsaccruedforwarrantyclaimsatfiscalyearend2016and2015were$48millionand$35million,respectively.

13.FinancialInstrumentsandFairValueMeasurements

Weusederivativeandnon-derivativefinancialinstrumentstomanagecertainexposurestoforeigncurrency,interestrate,investment,andcommodityrisks.

TheeffectsofderivativeinstrumentsontheConsolidatedStatementsofOperationswereimmaterialforfiscal2016,2015,and2014.

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(inmillions) Fiscal2017 $ 106Fiscal2018 86Fiscal2019 66Fiscal2020 47Fiscal2021 41Thereafter 98Total $ 444

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13.FinancialInstrumentsandFairValueMeasurements(Continued)

Foreign Exchange Risks and Hedges of Net Investment

Aspartofmanagingtheexposuretochangesinforeigncurrencyexchangerates,weutilizecross-currencyswapcontracts,foreigncurrencyforwardcontracts,andforeigncurrencyswapcontracts,aportionofwhicharedesignatedascashflowhedges.Theobjectiveofthesecontractsistominimizeimpactstocashflowsandprofitabilityduetochangesinforeigncurrencyexchangeratesonintercompanyandothercashtransactions.Weexpectthatsignificantlyallofthebalanceinaccumulatedothercomprehensiveincome(loss)associatedwiththecashflowhedge-designatedinstrumentsaddressingforeignexchangeriskswillbereclassifiedintotheConsolidatedStatementofOperationswithinthenexttwelvemonths.

Duringfiscal2015,weenteredintocross-currencyswapcontractswithanaggregatenotionalvalueof€1,000milliontoreduceourexposuretoforeigncurrencyexchangeriskassociatedwithcertainintercompanyloans.Underthetermsofthesecontracts,whichhavebeendesignatedascashflowhedges,wemakequarterlyinterestpaymentsineurosat3.50%perannumandreceiveinterestinU.S.dollarsataweighted-averagerateof5.33%perannum.Uponthematuritiesofthesecontractsinfiscal2022,wewillpaytheprincipalamountoftheloansineurosandreceiveU.S.dollarsfromourcounterparties.

Wehedgeournetinvestmentincertainforeignoperationsusingintercompanynon-derivativefinancialinstrumentsdenominatedinthesamecurrencies.Theaggregatenotionalvalueofthesehedgeswas$3,480millionand$3,880millionatfiscalyearend2016and2015,respectively.Foreignexchangelossesof$45millionandforeignexchangegainsof$353millionand$156millioninfiscal2016,2015,and2014,respectively,wererecordedascurrencytranslation,acomponentofaccumulatedothercomprehensiveincome(loss),offsettingforeignexchangegainsandlossesattributabletothetranslationofthenetinvestment.SeeNote19foradditionalinformation.

Interest Rate and Investment Risk Management

Weissuedebt,asneeded,tofundouroperationsandcapitalrequirements.Suchborrowingscanresultininterestrateexposure.Tomanagetheinterestrateexposure,weuseinterestrateswapstoconvertaportionoffixed-ratedebtintovariable-ratedebt.Weuseforwardstartinginterestrateswapsandoptionstoenterintointerestrateswapstomanageinterestrateexposureinperiodspriortotheanticipatedissuanceoffixed-ratedebt.Wealsoutilizeinvestmentswapstomanageearningsexposureoncertainnonqualifieddeferredcompensationliabilities.

Commodity Hedges

Aspartofmanagingtheexposuretocertaincommoditypricefluctuations,weutilizecommodityswapcontractsdesignatedascashflowhedges.Theobjectiveofthesecontractsistominimizeimpactstocashflowsandprofitabilityduetochangesinpricesofcommoditiesusedinproduction.

Atfiscalyearend2016and2015,ourcommodityhedgeshadnotionalvaluesof$232millionand$260million,respectively.Weexpectthatsignificantlyallofthebalanceinaccumulatedothercomprehensiveincome(loss)associatedwiththecommodityhedgeswillbereclassifiedintotheConsolidatedStatementofOperationswithinthenexttwelvemonths.

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13.FinancialInstrumentsandFairValueMeasurements(Continued)

Fair Value Measurements

Financialinstrumentsrecordedatfairvalueonarecurringbasis,whichconsistofderivativeinstrumentsandmarketablesecurities,wereimmaterialatfiscalyearend2016and2015.

14.RetirementPlans

Defined Benefit Pension Plans

WehaveanumberofcontributoryandnoncontributorydefinedbenefitretirementplanscoveringcertainofourU.S.andnon-U.S.employees,designedinaccordancewithlocalcustomsandpractice.

ThenetperiodicpensionbenefitcostforallU.S.andnon-U.S.definedbenefitpensionplanswasasfollows:

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U.S.Plans Non-U.S.Plans Fiscal Fiscal 2016 2015 2014 2016 2015 2014 ($inmillions) Servicecost $ 9 $ 9 $ 7 $ 48 $ 45 $ 46Interestcost 50 48 50 52 58 71Expectedreturnonplanassets (59) (67) (63) (68) (72) (67)Amortizationofnetactuarialloss 40 25 25 36 33 23Other — — — (6) (5) (3)Netperiodicpensionbenefitcost $ 40 $ 15 $ 19 $ 62 $ 59 $ 70

Weighted-averageassumptionsusedtodeterminenetpensionbenefitcostduringthefiscalyear:

Discountrate 4.38% 4.34% 4.84% 2.50% 2.77% 3.38%Expectedreturnonplanassets 6.97% 7.20% 7.16% 5.98% 6.46% 5.96%Rateofcompensationincrease —% —% —% 2.81% 2.86% 2.84%

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14.RetirementPlans(Continued)

ThefollowingtablerepresentsthechangesinbenefitobligationandplanassetsandthenetamountrecognizedontheConsolidatedBalanceSheetsforallU.S.andnon-U.S.definedbenefitpensionplans:

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U.S.Plans Non-U.S.Plans Fiscal Fiscal 2016 2015 2016 2015 ($inmillions) Changeinbenefitobligation: Benefitobligationatbeginningoffiscalyear $ 1,170 $ 1,143 $ 2,188 $ 2,276Servicecost 9 9 48 45Interestcost 50 48 52 58Actuarialloss 102 42 368 87Benefitsandadministrativeexpensespaid (81) (74) (85) (71)Currencytranslation — — (63) (213)Other — 2 27 6

Benefitobligationatendoffiscalyear 1,250 1,170 2,535 2,188Changeinplanassets: Fairvalueofplanassetsatbeginningoffiscalyear 879 978 1,167 1,177Actualreturnonplanassets 130 (26) 261 72Employercontributions 1 1 66 65Benefitsandadministrativeexpensespaid (81) (74) (85) (71)Currencytranslation — — (59) (90)Other — — 21 14

Fairvalueofplanassetsatendoffiscalyear 929 879 1,371 1,167Fundedstatus $ (321) $ (291) $ (1,164) $ (1,021)

AmountsrecognizedontheConsolidatedBalanceSheets: Accruedandothercurrentliabilities $ (5) $ (5) $ (20) $ (19)Long-termpensionandpostretirementliabilities (316) (286) (1,144) (1,002)Netamountrecognized $ (321) $ (291) $ (1,164) $ (1,021)

Weighted-averageassumptionsusedtodeterminepensionbenefitobligationatfiscalyearend:

Discountrate 3.58% 4.38% 1.44% 2.50%Rateofcompensationincrease —% —% 2.52% 2.81%

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14.RetirementPlans(Continued)

Thepre-taxamountsrecognizedinaccumulatedothercomprehensiveincome(loss)forallU.S.andnon-U.S.definedbenefitpensionplanswereasfollows:

Infiscal2016,unrecognizedactuariallossesrecordedinaccumulatedothercomprehensiveincome(loss)wereprimarilytheresultoflowerdiscountratespartiallyoffsetbyfavorableassetperformanceforbothU.S.andnon-U.S.definedbenefitpensionplansascomparedtofiscal2015.Infiscal2015,unrecognizedactuariallossesrecordedinaccumulatedothercomprehensiveincome(loss)forU.S.definedbenefitpensionplansweredueprimarilytoachangeinthemortalityassumptionandlowerthanexpectedassetperformance.Unrecognizedactuariallossesrecordedinaccumulatedothercomprehensiveincome(loss)fornon-U.S.definedbenefitpensionplansinfiscal2015wereprincipallytheresultoflowerdiscountratesascomparedtofiscal2014.

Theestimatedamortizationofactuariallossesfromaccumulatedothercomprehensiveincome(loss)intonetperiodicpensionbenefitcostforU.S.andnon-U.S.definedbenefitpensionplansinfiscal2017isexpectedtobe$40millionand$43million,respectively.Theestimatedamortizationofpriorservicecreditfromaccumulatedothercomprehensiveincome(loss)intonetperiodicpensionbenefitcostfornon-U.S.definedbenefitpensionplansinfiscal2017isexpectedtobe$7million.

Indeterminingtheexpectedreturnonplanassets,weconsidertherelativeweightingofplanassetsbyclassandindividualassetclassperformanceexpectations.

TheinvestmentstrategiesforU.S.andnon-U.S.pensionplansaregovernedlocally.Ourinvestmentstrategyforourpensionplansistomanagetheplansonagoingconcernbasis.Currentinvestmentpolicyistoachieveareasonablereturnonassets,subjecttoaprudentlevelofportfoliorisk,forthepurposeofenhancingthesecurityofbenefitsforparticipants.Projectedreturnsarebased

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U.S.Plans Non-U.S.Plans Fiscal Fiscal 2016 2015 2016 2015 (inmillions) Changeinnetloss: Unrecognizednetlossatbeginningoffiscalyear $ 436 $ 325 $ 711 $ 748Currentyearchangerecordedinaccumulatedothercomprehensiveincome(loss) 32 136 164 18Amortizationreclassifiedtoearnings (40) (25) (36) (55)

Unrecognizednetlossatendoffiscalyear $ 428 $ 436 $ 839 $ 711Changeinpriorservicecredit: Unrecognizedpriorservicecreditatbeginningoffiscalyear $ — $ — $ (66) $ (67)Currentyearchangerecordedinaccumulatedothercomprehensiveincome(loss) — — (10) (4)Amortizationreclassifiedtoearnings(1) — — 6 5

Unrecognizedpriorservicecreditatendoffiscalyear $ — $ — $ (70) $ (66)

(1) Amortizationofpriorservicecreditisincludedinotherintheabovetablesummarizingthecomponentsofnetperiodicpensionbenefitcost.

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14.RetirementPlans(Continued)

primarilyonproformaassetallocation,expectedlong-termreturns,andforward-lookingestimatesofactiveportfolioandinvestmentmanagement.

Thelong-termtargetassetallocationinourU.S.plans'mastertrustis10%equityand90%fixedincome.Assetre-allocationtomeetthattargetisoccurringoveramulti-yearperiodbasedonthefundedstatus,asdefinedbythePensionProtectionActof2006(the"PensionActFundedStatus"),oftheU.S.plans'mastertrustandmarketconditions.WeexpecttoreachourtargetallocationwhenthePensionActFundedStatusexceeds105%.BasedonthePensionActFundedStatusasoffiscalyearend2016,ourtargetassetallocationis45%equityand55%fixedincome.

Targetweighted-averageassetallocationandweighted-averageassetallocationforU.S.andnon-U.S.pensionplanswereasfollows:

Ourcommonsharesarenotadirectinvestmentofourpensionfunds;however,thepensionfundsmayindirectlyincludeourshares.Theaggregateamountofourcommonshareswouldnotbeconsideredmaterialrelativetothetotalpensionfundassets.

Ourfundingpolicyistomakecontributionsinaccordancewiththelawsandcustomsofthevariouscountriesinwhichweoperateaswellastomakediscretionaryvoluntarycontributionsfromtimetotime.Weexpecttomaketheminimumrequiredcontributionsof$6millionand$48milliontoourU.S.andnon-U.S.pensionplans,respectively,infiscal2017.Wemayalsomakevoluntarycontributionsatourdiscretion.

Benefitpayments,whichreflectfutureexpectedservice,asappropriate,areexpectedtobepaidasfollows:

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U.S.Plans Non-U.S.Plans

Target

FiscalYearEnd

2016

FiscalYearEnd

2015 Target

FiscalYearEnd

2016

FiscalYearEnd

2015 Assetcategory: Equitysecurities 45% 45% 45% 41% 41% 45%Debtsecurities 55 55 55 38 33 29Insurancecontractsandotherinvestments — — — 19 24 24Realestateinvestments — — — 2 2 2Total 100% 100% 100% 100% 100% 100%

U.S.Plans Non-U.S.Plans (inmillions) Fiscal2017 $ 73 $ 72Fiscal2018 70 73Fiscal2019 71 76Fiscal2020 72 77Fiscal2021 74 80Fiscal2022-2026 373 458

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14.RetirementPlans(Continued)

SetforthbelowistheaccumulatedbenefitobligationforallU.S.andnon-U.S.pensionplansaswellasadditionalinformationrelatedtoplanswithanaccumulatedbenefitobligationinexcessofplanassetsandplanswithaprojectedbenefitobligationinexcessofplanassets.

WevalueourpensionassetsbasedonthefairvaluehierarchyofASC820,FairValueMeasurementsandDisclosures.DetailsofthefairvaluehierarchyaredescribedinNote2.Thefollowingtablepresentsourdefinedbenefitpensionplans'assetcategoriesandtheirassociatedfairvaluewithinthefairvaluehierarchy:

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U.S.Plans Non-U.S.Plans FiscalYearEnd FiscalYearEnd 2016 2015 2016 2015 (inmillions) Accumulatedbenefitobligation $ 1,250 $ 1,170 $ 2,389 $ 2,041Pensionplanswithaccumulatedbenefitobligationsinexcessofplanassets: Accumulatedbenefitobligation 1,250 1,170 2,380 1,994Fairvalueofplanassets 929 879 1,361 1,119

Pensionplanswithprojectedbenefitobligationsinexcessofplanassets: Projectedbenefitobligation 1,250 1,170 2,534 2,188Fairvalueofplanassets 929 879 1,371 1,167

FiscalYearEnd2016 U.S.Plans Non-U.S.Plans Level1 Level2 Level3 Total Level1 Level2 Level3 Total (inmillions) Equity: U.S.equitysecurities(1) $ 248 $ — $ — $ 248 $ 64 $ — $ — $ 64Non-U.S.equitysecurities(1) 190 — — 190 62 — — 62Commingledequityfunds(2) — — — — — 456 — 456

Fixedincome: Governmentbonds(3) — 67 — 67 — 226 — 226Corporatebonds(4) — 397 — 397 — 13 — 13Commingledbondfunds(5) — — — — — 262 — 262

Other(6) — 11 — 11 — 177 91 268Subtotal $ 438 $ 475 $ — 913 $ 126 $ 1,134 $ 91 1,351Itemstoreconciletofairvalueofplanassets(7) 16 20Fairvalueofplanassets $ 929 $ 1,371

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14.RetirementPlans(Continued)

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FiscalYearEnd2015 U.S.Plans Non-U.S.Plans Level1 Level2 Level3 Total Level1 Level2 Level3 Total (inmillions) Equity: U.S.equitysecurities(1) $ 245 $ — $ — $ 245 $ 60 $ — $ — $ 60Non-U.S.equitysecurities(1) 149 — — 149 54 — — 54Commingledequityfunds(2) — — — — — 421 — 421

Fixedincome: Governmentbonds(3) — 64 — 64 — 202 — 202Corporatebonds(4) — 404 — 404 — 13 — 13Commingledbondfunds(5) — — — — — 171 — 171

Other(6) — 3 — 3 — 142 84 226Subtotal $ 394 $ 471 $ — 865 $ 114 $ 949 $ 84 1,147Itemstoreconciletofairvalueofplanassets(7) 14 20Fairvalueofplanassets $ 879 $ 1,167

(1) U.S.andnon-U.S.equitysecuritiesarevaluedattheclosingpricereportedonthestockexchangeonwhichtheindividualsecuritiesaretraded.

(2) Commingledequityfundsarepooledinvestmentsinmultipleequity-typesecurities.Fairvalueiscalculatedastheclosingpriceoftheunderlyinginvestments,anobservablemarketcondition,dividedbythenumberofsharesofthefundoutstanding.

(3) Governmentbondsaremarkedtofairvaluebasedonquotedmarketpricesormarketapproachvaluationmodelsusingobservablemarketdatasuchasquotes,spreads,anddatapointsforyieldcurves.

(4) Corporatebondsaremarkedtofairvaluebasedonquotedmarketpricesormarketapproachvaluationmodelsusingobservablemarketdatasuchasquotes,spreads,anddatapointsforyieldcurves.

(5) Commingledbondfundsarepooledinvestmentsinmultipledebt-typesecurities.Fairvalueiscalculatedastheclosingpriceoftheunderlyinginvestments,anobservablemarketcondition,dividedbythenumberofsharesofthefundoutstanding.

(6) Otherinvestmentsarecomposedofinsurancecontracts,derivatives,short-terminvestments,structuredproductssuchascollateralizedobligationsandmortgage-andasset-backedsecurities,realestateinvestments,andhedgefunds.Insurancecontractsarevaluedusingcashsurrendervalue,orfacevalueofthecontractifacashsurrendervalueisunavailable(level2),asthesevaluesrepresenttheamountthattheplanwouldreceiveonterminationoftheunderlyingcontract.Derivatives,short-terminvestments,andstructuredproductsaremarkedtofairvalueusingmodelsthataresupportedbyobservablemarketbaseddata(level2).Realestateinvestmentsincludeinvestmentsincommingledrealestatefundsandarevaluedatnetassetvaluewhichiscalculatedusingunobservableinputsthataresupportedbylittleornomarketactivity(level3).Hedgefundsarevaluedattheirnetassetvaluewhichiscalculatedusingunobservableinputsthataresupportedbylittleornomarketactivity(level3).

(7) Itemstoreconciletofairvalueofplanassetsincludeamountsreceivableforsecuritiessold,amountspayableforsecuritiespurchased,andanycashbalances,consideredtobecarriedatbookvalue,thatareheldintheplans.

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14.RetirementPlans(Continued)

ChangesinLevel3assetsinnon-U.S.planswereprimarilytheresultofpurchasesinfiscal2016and2015.

Defined Contribution Retirement Plans

Wemaintainseveraldefinedcontributionretirementplans,themostsignificantofwhichislocatedintheU.S.Theseplansinclude401(k)matchingprograms,aswellasqualifiedandnonqualifiedprofitsharingandsharebonusretirementplans.Expenseforthedefinedcontributionplansiscomputedasapercentageofparticipants'compensationandwas$59million,$60million,and$61millionforfiscal2016,2015,and2014,respectively.

Deferred Compensation Plans

Wemaintainnonqualifieddeferredcompensationplans,whichpermiteligibleemployeestodeferaportionoftheircompensation.Arecordkeepingaccountissetupforeachparticipantandtheparticipantchoosesfromavarietyofmeasurementfundsforthedeemedinvestmentoftheiraccounts.Themeasurementfundscorrespondtoanumberoffundsinour401(k)plansandtheaccountbalancefluctuateswiththeinvestmentreturnsonthosefunds.Totaldeferredcompensationliabilitieswere$132millionand$118millionatfiscalyearend2016and2015,respectively.SeeNote13foradditionalinformationregardingourriskmanagementstrategyrelatedtodeferredcompensationliabilities.

Postretirement Benefit Plans

Inadditiontoprovidingpensionand401(k)benefits,wealsoprovidecertainhealthcarecoveragecontinuationforqualifyingretireesfromthedateofretirementtoage65.Theaccumulatedpostretirementbenefitobligationwas$45millionand$40millionatfiscalyearend2016and2015,respectively,andtheunderfundedstatusofthepostretirementbenefitplanswasincludedprimarilyinlong-termpensionandpostretirementliabilitiesontheConsolidatedBalanceSheets.Activityduringfiscal2016,2015,and2014wasnotsignificant.

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15.IncomeTaxes

Significantcomponentsoftheincometaxexpense(benefit)wereasfollows:

TheU.S.andnon-U.S.componentsofincomefromcontinuingoperationsbeforeincometaxeswereasfollows:

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Fiscal 2016 2015 2014 (inmillions) Currentincometaxexpense(benefit): U.S.: Federal $ (1,115) $ (67) $ 128State (163) 12 (3)

Non-U.S. 321 352 302 (957) 297 427

Deferredincometaxexpense(benefit): U.S.: Federal 173 87 (311)State 20 5 (3)

Non-U.S. (15) (52) 33 178 40 (281)

Incometaxexpense(benefit) $ (779) $ 337 $ 146

Fiscal 2016 2015 2014 (inmillions) U.S. $ (115) $ (31) $ (133)Non-U.S. 1,277 1,606 1,893Incomefromcontinuingoperationsbeforeincometaxes $ 1,162 $ 1,575 $ 1,760

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15.IncomeTaxes(Continued)

ThereconciliationbetweenU.S.federalincometaxesatthestatutoryrateandincometaxexpense(benefit)wasasfollows:

Theincometaxbenefitforfiscal2016includeda$1,135millionincometaxbenefitrelatedtotheeffectivesettlementoftaxmattersfortheyears1997through2000whichresolvedallaspectsofthedisputeddebtmatterwiththeIRSthroughtheyear2007,partiallyoffsetbya$91millionincometaxchargerelatedtoanincreasetothevaluationallowanceforcertainU.S.deferredtaxassets.Additionally,thetaxbenefitforfiscal2016includedan$83millionnetincometaxbenefitrelatedtotaxsettlementsincertainothertaxjurisdictions,partiallyoffsetbyanincometaxchargerelatedtocertainlegalentityrestructurings.SeeNote12foradditionalinformationregardingsettlementswiththeIRS.

TheincreasetothevaluationallowancefordeferredtaxassetsprimarilyrelatestocertainU.S.federalandstatetaxlossandcreditcarryforwards.BasedonourforecastoftaxableincomeforcertainU.S.taxreportinggroups,U.S.taxlossandcreditcarryforwardsfinalizedasaresultofsettlementofthedisputeddebtmatterwiththeIRS,andcertaintaxplanningactionsandstrategies,webelieveditwasmorelikelythannotthataportionofourdeferredtaxassetswouldnotberealized.

Theincometaxexpenseforfiscal2015includeda$264millionincometaxbenefitrelatedtotheeffectivesettlementofallundisputedtaxmattersfortheyears2001through2010,partiallyoffsetbya$216millionincometaxchargeassociatedwiththetaximpactsofcertainintercompanylegalentityrestructuringsmadeinconnectionwithourintegrationofMeasurementSpecialties.Also,incometaxexpenseforfiscal2015includedanincometaxchargeof$29millionassociatedwiththetaximpactsofcertainintercompanydividendsrelatedtotherestructuringandsaleofBNS.

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Fiscal 2016 2015 2014 (inmillions) NotionalU.S.federalincometaxexpenseatthestatutoryrate $ 407 $ 551 $ 616Adjustmentstoreconciletotheincometaxexpense(benefit): U.S.stateincometaxexpense(benefit),net (93) 11 (4)Other(income)expense—TaxSharingAgreement(1) 221 18 (23)Taxlawchanges (3) 10 (1)Taxcredits (10) (9) (8)Non-U.S.netearnings(2) (342) (275) (287)Nondeductiblecharges 2 2 3Changeinaccruedincometaxliabilities (1,056) (183) 112Valuationallowance 97 (3) (239)Legalentityrestructuring 39 211 —Divestitures (31) — —Other (10) 4 (23)

Incometaxexpense(benefit) $ (779) $ 337 $ 146

(1) Otherincome(expense),netpursuanttotheTaxSharingAgreementwithTycoInternationalandCovidienisnottaxableordeductible.

(2) Excludesnondeductiblechargesandotheritemswhichareseparatelypresented.

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15.IncomeTaxes(Continued)

Theincometaxexpenseforfiscal2014includedanincometaxbenefitof$282millionrecognizedinconnectionwithareductioninthevaluationallowanceassociatedwithcertaintaxlosscarryforwardsrelatingtoADCTelecommunications,Inc.("ADC"),partiallyoffsetbyanincometaxchargerelatedtoadjustmentstoprioryearincometaxreturns.

Infiscal2014,weacquiredSEACON,anditsU.S.operationswerecombinedwithourADCU.S.federalconsolidatedtaxgroup.Inaddition,theADCU.S.taxgroupwascombinedwithotherU.S.legalentitiesandassets.WereassessedtherealizationoftherevisedADCU.S.taxgroup'staxlossandcreditcarryforwards.Basedonourforecastoftaxableincomeofthereorganizedcombinedtaxgroup,webelieveditwasmorelikelythannotthatataxbenefitwouldberealizedonadditionalU.S.federalandstatenetoperatinglosses.Accordingly,wereducedthevaluationallowanceandrecordedataxbenefitof$282million.

Deferredincometaxesresultfromtemporarydifferencesbetweentheamountofassetsandliabilitiesrecognizedforfinancialreportingandtaxpurposes.Thecomponentsofthenetdeferredincometaxassetwereasfollows:

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FiscalYearEnd 2016 2015 (inmillions) Deferredtaxassets: Accruedliabilitiesandreserves $ 286 $ 262Taxlossandcreditcarryforwards 4,656 4,856Inventories 46 57Pensionandpostretirementbenefits 349 295Deferredrevenue 11 17Interest 470 394Unrecognizedincometaxbenefits 10 378Other 32 4

5,860 6,263Deferredtaxliabilities: Intangibleassets (761) (809)Property,plant,andequipment (15) (1)Other (84) (89)

(860) (899)Netdeferredtaxassetbeforevaluationallowance 5,000 5,364Valuationallowance (3,096) (3,237)Netdeferredtaxasset $ 1,904 $ 2,127

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15.IncomeTaxes(Continued)

Ourtaxlossandcreditcarryforwards(taxeffected)atfiscalyearend2016wereasfollows:

Thevaluationallowancefordeferredtaxassetsof$3,096millionand$3,237millionatfiscalyearend2016and2015,respectively,relatesprincipallytotheuncertaintyoftheutilizationofcertaindeferredtaxassets,primarilytaxloss,capitalloss,andcreditcarryforwardsinvariousjurisdictions.WebelievethatwewillgeneratesufficientfuturetaxableincometorealizetheincometaxbenefitsrelatedtotheremainingnetdeferredtaxassetsontheConsolidatedBalanceSheet.Atfiscalyearend2016,approximately$169millionofthevaluationallowancerelatestoshare-basedcompensationandwillberecordedtoequityifcertainnetoperatinglossesandtaxcreditcarryforwardsareutilized.

Wehaveprovidedincometaxesforearningsthatarecurrentlydistributedaswellasthetaxesassociatedwithseveralsubsidiaries'earningsthatareexpectedtobedistributedinthefuture.NoadditionalprovisionhasbeenmadeforSwissornon-Swissincometaxesontheundistributedearningsofsubsidiariesorforunrecognizeddeferredtaxliabilitiesfortemporarydifferencesrelatedtobasisdifferencesininvestmentsinsubsidiaries,assuchearningsareexpectedtobepermanentlyreinvested,theinvestmentsareessentiallypermanentinduration,orwehaveconcludedthatnoadditionaltaxliabilitywillariseasaresultofthedistributionofsuchearnings.Asoffiscalyearend2016,certainsubsidiarieshadapproximately$21billionofcumulativeundistributedearningsthathavebeenretainedindefinitelyandreinvestedinourglobalmanufacturingoperations,includingworkingcapital;property,plant,andequipment;intangibleassets;andresearchanddevelopmentactivities.Aliabilitycouldariseifourintentiontopermanentlyreinvestsuchearningsweretochangeandamountsaredistributedbysuchsubsidiariesorifsuchsubsidiariesareultimatelydisposed.Itisnotpracticabletoestimatetheadditionalincometaxesrelatedtopermanentlyreinvestedearningsorthebasisdifferencesrelatedtoinvestmentsinsubsidiaries.Asoffiscalyearend2016,wehadapproximately$6.9billionofcash,cashequivalents,andintercompanydeposits,principallyinoursubsidiaries,thatwehavetheabilitytodistributetoTEGSA,ourLuxembourgsubsidiary,whichistheobligorofsubstantiallyallofourdebt,andtoTEConnectivityLtd.,ourSwissparentcompany,butweconsidertobepermanentlyreinvested.Weestimatethatuptoapproximately$1.5billionoftaxexpensewouldberecognizedonthe

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ExpirationPeriod

Through2021

Fiscal2022Through2036

NoExpiration Total

(inmillions) U.S.Federal: Netoperatinglosscarryforwards $ — $ 1,404 $ — $ 1,404Taxcreditcarryforwards 15 124 70 209Capitallosscarryforwards 36 — — 36

U.S.State: Netoperatinglosscarryforwards. 53 55 — 108Taxcreditcarryforwards 12 15 7 34

Non-U.S.: Netoperatinglosscarryforwards 12 5 2,813 2,830Taxcreditcarryforwards — 1 — 1Capitallosscarryforwards 7 — 27 34

Totaltaxlossandcreditcarryforwards $ 135 $ 1,604 $ 2,917 $ 4,656

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15.IncomeTaxes(Continued)

ConsolidatedFinancialStatementsifourintentiontopermanentlyreinvesttheseamountsweretochange.Ourcurrentplansdonotdemonstrateaneedtorepatriatecash,cashequivalents,andintercompanydepositsthataredesignatedaspermanentlyreinvestedinordertofundouroperations,includinginvestingandfinancingactivities.

Uncertain Tax Position Provisions of ASC 740

Asoffiscalyearend2016,wehadtotalunrecognizedincometaxbenefitsof$490million.Ifrecognizedinfutureyears,$370millionofthesecurrentlyunrecognizedincometaxbenefitswouldimpactincometaxexpense(benefit)andtheeffectivetaxrate.Asoffiscalyearend2015,wehadtotalunrecognizedincometaxbenefitsof$1,368million.Ifrecognizedinfutureyears,$1,291millionoftheseunrecognizedincometaxbenefitswouldimpactincometaxexpense(benefit)andtheeffectivetaxrate.Thefollowingtablesummarizestheactivityrelatedtounrecognizedincometaxbenefits:

Werecordaccruedinterestaswellaspenaltiesrelatedtouncertaintaxpositionsaspartofincometaxexpense(benefit).Asoffiscalyearend2016and2015,wehad$54millionand$1,076million,respectively,ofaccruedinterestandpenaltiesrelatedtouncertaintaxpositionsontheConsolidatedBalanceSheets,recordedprimarilyinincometaxes.Thedecreaseintheaccruedinterestandpenaltiesfromfiscalyearend2015wasdueprimarilytotheeffectivesettlementoftaxmattersfortheyears1997through2000whichresolvedallaspectsofthedisputeddebtmatterwiththeIRSthroughtheyear2007.Duringfiscal2016,2015,and2014,werecognizedincometaxbenefitsof$765million,expenseof$7million,andexpenseof$99million,respectively,relatedtointerestandpenaltiesontheConsolidatedStatementsofOperations.

Wefileincometaxreturnsonaunitary,consolidated,orstand-alonebasisinmultiplestateandlocaljurisdictions,whichgenerallyhavestatutesoflimitationsrangingfrom3to4years.Variousstateandlocalincometaxreturnsarecurrentlyintheprocessofexaminationoradministrativeappeal.

Ournon-U.S.subsidiariesfileincometaxreturnsinthecountriesinwhichtheyhaveoperations.Generally,thesecountrieshavestatutesoflimitationsrangingfrom3to10years.Variousnon-U.S.subsidiaryincometaxreturnsarecurrentlyintheprocessofexaminationbytaxingauthorities.

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Fiscal 2016 2015 2014 (inmillions) Balanceatbeginningoffiscalyear $ 1,368 $ 1,595 $ 1,617Additionsrelatedtopriorperiodstaxpositions 75 24 22Reductionsrelatedtopriorperiodstaxpositions (817) (291) (57)Additionsrelatedtocurrentperiodtaxpositions 124 97 32Acquisitions 4 — 7Settlements (205) (29) (14)Reductionsduetolapseofapplicablestatuteoflimitations (59) (28) (12)

Balanceatendoffiscalyear $ 490 $ 1,368 $ 1,595

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15.IncomeTaxes(Continued)

Asoffiscalyearend2016,underapplicablestatutes,thefollowingtaxyearsremainedsubjecttoexaminationinthemajortaxjurisdictionsindicated:

Inmostjurisdictions,taxingauthoritiesretaintheabilitytoreviewpriortaxyearsandtoadjustanynetoperatinglossandtaxcreditcarryforwardsfromtheseyearsthatareutilizedinasubsequentperiod.

Althoughitisdifficulttopredictthetimingorresultsofourworldwideexaminations,weestimatethatuptoapproximately$90millionofunrecognizedincometaxbenefits,excludingtheimpactrelatingtoaccruedinterestandpenalties,couldberesolvedwithinthenexttwelvemonths.

WearenotawareofanyothermattersthatwouldresultinsignificantchangestotheamountofunrecognizedincometaxbenefitsreflectedontheConsolidatedBalanceSheetasoffiscalyearend2016.

16.OtherIncome(Expense),Net

Infiscal2016,2015,and2014,werecordednetotherexpenseof$632million,netotherexpenseof$55million,andnetotherincomeof$63million,respectively,primarilypursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.Thenetotherexpenseinfiscal2016included$604millionrelatedtotheeffectivesettlementoftaxmattersfortheyears1997through2000whichresolvedallaspectsofthedisputeddebtmatterwiththeIRSthroughtheyear2007and$46millionrelatedtoataxsettlementinanotherjurisdiction.Thenetotherexpenseinfiscal2015included$84millionrelatedtotheeffectivesettlementofundisputedtaxmattersfortheyears2001through2007.SeeNote12forfurtherinformationregardingtheTaxSharingAgreementandsettlementswiththeIRS.Thenetotherincomeinfiscal2014included$18millionofincomerelatedtoourshareofasettlementagreemententeredintobyTycoInternationalwithaformersubsidiary,CITGroupInc.,whicharosefromapre-separationclaimforwhichwewereentitledto31%onceresolved.

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Jurisdiction OpenYears China 2006through2016CzechRepublic 2013through2016Germany 2013through2016HongKong 2010through2016Ireland 2011through2016Italy 2010through2016Japan 2010through2016Korea 2011through2016Luxembourg 2011through2016Netherlands 2012through2016Singapore 2011through2016Spain 2012through2016Switzerland 2011through2016UnitedKingdom 2015through2016U.S.—federalandstateandlocal 1998through2016

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17.EarningsPerShare

Theweighted-averagenumberofsharesoutstandingusedinthecomputationofbasicanddilutedearningspersharewereasfollows:

Therewerethreemillionandonemillionshareoptionsthatwerenotincludedinthecomputationofdilutedearningspershareforfiscal2016and2015,respectively,becausetheinstruments'underlyingexercisepricesweregreaterthantheaveragemarketpricesofourcommonsharesandinclusionwouldbeantidilutive.

18.Equity

Common Shares

WeareorganizedunderthelawsofSwitzerland.TherightsofholdersofoursharesaregovernedbySwisslaw,ourSwissarticlesofassociation,andourSwissorganizationalregulations.Accordingly,theparvalueofourcommonsharesisstatedinSwissfrancs("CHF").WecontinuetousetheU.S.dollar,however,asourreportingcurrencyontheConsolidatedFinancialStatements.

Subjecttocertainconditionsspecifiedinourarticlesofassociation,weareauthorizedtoincreaseourconditionalsharecapitalbyissuingnewsharesinaggregatenotexceeding50%ofourauthorizedshares.InMarch2016,ourshareholdersapprovedforaperiodoftwoyearsendingonMarch2,2018,ourboardofdirectors'authorizationtoissueadditionalnewshares,subjecttocertainconditionsspecifiedinthearticlesofassociation,inaggregatenotexceeding50%oftheamountofourauthorizedshares.

Common Shares Held in Treasury

Atfiscalyearend2016,approximately28millioncommonshareswereheldintreasury,ofwhich2millionwereownedbyoneofoursubsidiaries.Atfiscalyearend2015,approximately20millioncommonshareswereheldintreasury,ofwhich6millionwereownedbyoneofoursubsidiaries.SharesheldbothdirectlybyusandbyoursubsidiaryarepresentedastreasurysharesontheConsolidatedBalanceSheets.

Infiscal2016,2015,and2014,ourshareholdersapprovedthecancellationof31million,5million,and10millionshares,respectively,purchasedunderoursharerepurchaseprogram.ThesecapitalreductionsbycancellationofsharesweresubjecttoanoticeperiodandfilingwiththecommercialregisterinSwitzerland.

Contributed Surplus

ContributedsurplusestablishedforSwisstaxandstatutorypurposes("SwissContributedSurplus"),subjecttocertainconditions,isafreelydistributablereserve.DistributionstoshareholdersfromSwiss

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Fiscal 2016 2015 2014 (inmillions) Basic 366 405 410Dilutiveimpactofshare-basedcompensationarrangements 3 6 7

Diluted 369 411 417

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18.Equity(Continued)

ContributedSurplusarefreefromwithholdingtax.Asoffiscalyearend2016and2015,SwissContributedSurpluswasCHF7,878millionandCHF8,392million,respectively(equivalentto$6,992millionand$7,505million,respectively).

Dividends and Distributions to Shareholders

UnderSwisslaw,subjecttocertainconditions,distributionstoshareholdersmadeintheformofareductionofregisteredsharecapitalorfromreservesfromcapitalcontributions(equivalenttoSwissContributedSurplus)areexemptfromSwisswithholdingtax.Distributionsordividendsonoursharesmustbeapprovedbyourshareholders.

Ourshareholdersapprovedthefollowingdividendsonourcommonshares:

Uponshareholders'approvalofadividendpaymentorcashdistributionintheformofacapitalreduction,werecordaliabilitywithacorrespondingchargetocontributedsurplusorcommonshares.Atfiscalyearend2016and2015,theunpaidportionofthedividendsrecordedinaccruedandothercurrentliabilitiesontheConsolidatedBalanceSheetstotaled$263millionand$260million,respectively.

Share Repurchase Program

Duringfiscal2016,ourboardofdirectorsauthorizedanincreaseof$1.0billioninthesharerepurchaseprogram.Commonsharesrepurchasedunderthesharerepurchaseprogramwereasfollows:

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ApprovalDate PaymentType AnnualPaymentPerShare PaymentDatesMarch2013 Dividendpaymentoutofcontributed

surplus CHF0.96(equivalentto$1.00),payableinfourquarterlyinstallmentsof

$0.25 Thirdquarteroffiscal

2013Fourthquarteroffiscal

2013Firstquarteroffiscal2014

Secondquarteroffiscal2014

March2014 Dividendpaymentoutofcontributedsurplus

CHF1.04(equivalentto$1.16),payableinfourquarterlyinstallmentsof$0.29

Thirdquarteroffiscal2014

Fourthquarteroffiscal2014

Firstquarteroffiscal2015Secondquarteroffiscal

2015

March2015 Dividendpaymentoutofcontributedsurplus

$1.32(equivalenttoCHF1.27),payableinfourquarterlyinstallmentsof$0.33

Thirdquarteroffiscal2015

Fourthquarteroffiscal2015

Firstquarteroffiscal2016Secondquarteroffiscal

2016

March2016 Dividendpaymentoutofcontributedsurplus

$1.48(equivalenttoCHF1.48),payableinfourquarterlyinstallmentsof$0.37

Thirdquarteroffiscal2016

Fourthquarteroffiscal2016

Firstquarteroffiscal2017Secondquarteroffiscal

2017

Fiscal 2016 2015 2014 (inmillions) Numberofcommonsharesrepurchased 43 18 11Amountrepurchased $ 2,610 $ 1,163 $ 604

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18.Equity(Continued)

Atfiscalyearend2016,wehad$1.1billionofavailabilityremainingunderoursharerepurchaseauthorization.

19.AccumulatedOtherComprehensiveIncome(Loss)

Thechangesineachcomponentofaccumulatedothercomprehensiveincome(loss)wereasfollows:

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Currency

Translation(1)

UnrecognizedPensionand

PostretirementBenefitCosts

Gains(Losses)onCashFlowHedges

AccumulatedOther

ComprehensiveIncome(Loss)

(inmillions) Balanceatfiscalyearend2013 $ 931 $ (569) $ (59) $ 303Othercomprehensivelossbeforereclassifications (216) (211) (35) (462)Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) 5 44 49 98

Incometaxbenefit — 44 — 44Netothercomprehensiveincome(loss),netoftax (211) (123) 14 (320)

Balanceatfiscalyearend2014 720 (692) (45) (17)Othercomprehensivelossbeforereclassifications (536) (147) (44) (727)Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) 224(2) 75 45 344

Incometaxbenefit — 26 1 27Netothercomprehensiveincome(loss),netoftax (312) (46) 2 (356)

Balanceatfiscalyearend2015 408 (738) (43) (373)Othercomprehensivelossbeforereclassifications (69) (190) (14) (273)Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) (23) 70 32 79

Incometax(expense)benefit — 32 (7) 25Netothercomprehensiveincome(loss),netoftax (92) (88) 11 (169)

Balanceatfiscalyearend2016 $ 316 $ (826) $ (32) $ (542)

(1) Includeshedgesofnetinvestmentforeignexchangegainsorlosseswhichoffsetforeignexchangelossesorgainsattributabletothetranslationofthenetinvestments.

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19.AccumulatedOtherComprehensiveIncome(Loss)(Continued)

20.SharePlans

Ourequitycompensationplans,ofwhichtheTEConnectivityLtd.2007StockandIncentivePlan,asamendedandrestated,istheprimaryplan,providefortheawardofannualperformancebonusesandlong-termperformanceawards,includingshareoptions;restricted,performance,anddeferredshareunits;andothershare-basedawards(collectively,"Awards")andallowfortheuseofunissuedsharesortreasurysharestobeusedtosatisfysuchAwards.Asoffiscalyearend2016,ourplansprovidedforamaximumof67millionsharestobeissuedasAwards,subjecttoadjustmentasprovidedunderthetermsoftheplans.Atotalof16millionsharesremainedavailableforissuanceunderourplansasoffiscalyearend2016.

Share-Based Compensation Expense

Totalshare-basedcompensationexpense,whichwasincludedprimarilyinselling,general,andadministrativeexpensesontheConsolidatedStatementsofOperations,wasasfollows:

Werecognizedarelatedtaxbenefitassociatedwithourshare-basedcompensationarrangementsof$29million,$29million,and$24millioninfiscal2016,2015,and2014,respectively.

Restricted Share Awards

Restrictedshareawards,whicharegenerallyintheformofrestrictedshareunits,aregrantedsubjecttocertainrestrictions.Conditionsofvestingaredeterminedatthetimeofgrant.Allrestrictionsonanawardwilllapseupondeathordisabilityoftheemployee.Iftheemployeesatisfiesretirementrequirements,aportionoftheawardmayvest,dependingonthetermsandconditionsoftheparticulargrant.Recipientsofrestrictedshareunitshavenovotingrights,butdoreceivedividendequivalents.Forgrantsthatvestthroughpassageoftime,thefairvalueoftheawardatthetimeofthegrantisamortizedtoexpenseovertheperiodofvesting.Thefairvalueofrestrictedshareawardsisdeterminedbasedontheclosingvalueofoursharesonthegrantdate.Restrictedshareawardsgenerallyvestinincrementsoveraperiodoffouryearsasdeterminedbythemanagementdevelopmentandcompensationcommittee.

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(2) RepresentsnetcurrencytranslationreclassifiedasaresultofthesaleofBNS.ThisnetlossisincludedinincomefromdiscontinuedoperationsontheConsolidatedStatementofOperations.SeeNote4foradditionalinformationregardingthedivestitureofBNS.

Fiscal 2016 2015 2014 (inmillions) Share-basedcompensationexpense $ 91 $ 89 $ 77

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20.SharePlans(Continued)

Asummaryofrestrictedshareawardactivityispresentedbelow:

Theweighted-averagegrant-datefairvalueofrestrictedshareawardsgrantedduringfiscal2016,2015,and2014was$64.88,$62.45,and$52.21,respectively.

Thetotalfairvalueofrestrictedshareawardsthatvestedduringfiscal2016,2015,and2014was$51million,$58million,and$52million,respectively.

Asoffiscalyearend2016,therewas$74millionofunrecognizedcompensationcostrelatedtononvestedrestrictedshareawards.Thecostisexpectedtoberecognizedoveraweighted-averageperiodof1.6years.

Performance Share Awards

Performanceshareawards,whicharegenerallyintheformofperformanceshareunits,aregrantedwithpay-outsubjecttovestingrequirementsandcertainperformanceconditionsthataredeterminedatthetimeofgrant.Basedonourperformance,thepay-outofperformanceshareunitscanrangefrom0%to200%ofthenumberofunitsoriginallygranted.Thegrant-datefairvalueofperformanceshareawardsisexpensedovertheperiodofperformanceonceachievementoftheperformancecriteriaisdeemedprobable.Recipientsofperformanceshareunitshavenovotingrightsbutdoreceivedividendequivalents.Performanceshareawardsgenerallyvestafteraperiodofthreeyearsasdeterminedbythemanagementdevelopmentandcompensationcommittee.

Asummaryofperformanceshareawardactivityispresentedbelow:

Theweighted-averagegrant-datefairvalueofperformanceshareawardsgrantedduringfiscal2016,2015,and2014was$55.15,$61.65,and$51.63,respectively.

Thetotalfairvalueofperformanceshareawardsthatvestedduringfiscal2016was$15million.Thetotalfairvalueofperformanceshareawardsthatvestedinfiscal2015and2014wasinsignificant.

113

Shares

Weighted-AverageGrant-DateFairValue

Nonvestedatfiscalyearend2015 2,790,934 $ 51.01Granted 886,663 64.88Vested (1,116,283) 45.46Forfeited (274,310) 54.53

Nonvestedatfiscalyearend2016 2,287,004 $ 58.47

Shares

Weighted-AverageGrant-DateFairValue

Outstandingatfiscalyearend2015 700,828 $ 47.32Granted 425,861 55.15Vested (444,429) 34.46Forfeited (55,635) 56.98

Outstandingatfiscalyearend2016 626,625 $ 60.56

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

20.SharePlans(Continued)

Asoffiscalyearend2016,therewas$18millionofunrecognizedcompensationcostrelatedtononvestedperformanceshareawards.Thecostisexpectedtoberecognizedoveraweighted-averageperiodof1.2years.

Share Options

Shareoptionsaregrantedtopurchaseourcommonsharesatpriceswhichareequaltoorgreaterthanthemarketpriceofthecommonsharesonthedatetheoptionisgranted.Conditionsofvestingaredeterminedatthetimeofgrant.Allrestrictionsontheawardwilllapseupondeathordisabilityoftheemployee.Iftheemployeesatisfiesretirementrequirements,aportionoftheawardmayvest,dependingonthetermsandconditionsoftheparticulargrant.Optionsgenerallyvestandbecomeexercisableinequalannualinstallmentsoveraperiodoffouryearsandexpiretenyearsafterthedateofgrant.

Asummaryofshareoptionawardactivityispresentedbelow:

Theweighted-averageexercisepriceofshareoptionawardsgrantedduringfiscal2016,2015,and2014was$65.70,$61.70,and$51.78,respectively.

Thetotalintrinsicvalueofoptionsexercisedduringfiscal2016,2015,and2014was$67million,$107million,and$136million,respectively.Wereceivedcashrelatedtotheexerciseofoptionsof$90million,$103million,and$156millioninfiscal2016,2015,and2014,respectively.TherelatedexcesscashtaxbenefitclassifiedasafinancingcashinflowontheConsolidatedStatementsofCashFlowsforfiscal2016,2015,and2014wasnotmaterial.

Asoffiscalyearend2016,therewas$36millionofunrecognizedcompensationcostrelatedtononvestedshareoptionsgrantedunderourshareoptionplans.Thecostisexpectedtoberecognizedoveraweighted-averageperiodof1.6years.

Share-Based Compensation Assumptions

Thegrant-datefairvalueofeachshareoptiongrantwasestimatedusingtheBlack-Scholes-Mertonoptionpricingmodel.Useofavaluationmodelrequiresmanagementtomakecertainassumptionswith

114

Shares

Weighted-AverageExercisePrice

Weighted-AverageRemainingContractual

Term

AggregateIntrinsicValue

(inyears) (inmillions) Outstandingatfiscalyearend2015 10,124,875 $ 40.05 Granted 1,860,800 65.70 Exercised (2,480,662) 35.68 Expired (61,592) 44.20 Forfeited (339,041) 57.18

Outstandingatfiscalyearend2016 9,104,380 $ 45.79 6.3 $ 172Vestedandexpectedtovestatfiscalyearend2016 8,739,461 $ 45.26 6.3 $ 170Exercisableatfiscalyearend2016 5,189,559 $ 36.16 4.9 $ 147

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

20.SharePlans(Continued)

respecttoselectedmodelinputs.Weemployourhistoricalsharevolatilitywhencalculatingthegrant-datefairvalueofourshareoptiongrantsusingtheBlack-Scholes-Mertonoptionpricingmodel.Currently,wedonothaveexchange-tradedoptionsofsufficientdurationtoemployanimpliedvolatilityassumptioninthecalculationandthereforerelysolelyonthehistoricalvolatilitycalculation.Theaverageexpectedlifewasbasedonthecontractualtermoftheoptionandexpectedemployeeexerciseandpost-vestingemploymentterminationbehavior.Therisk-freeinterestratewasbasedonU.S.Treasuryzero-couponissueswitharemainingtermthatapproximatedtheexpectedlifeassumedatthedateofgrant.Theexpectedannualdividendpersharewasbasedonourexpecteddividendrate.Therecognizedshare-basedcompensationexpensewasnetofestimatedforfeitures,whicharebasedonvoluntaryterminationbehavioraswellasananalysisofactualoptionforfeitures.

Theweighted-averagegrant-datefairvalueofoptionsgrantedandtheweighted-averageassumptionsweusedintheBlack-Scholes-Mertonoptionpricingmodelwereasfollows:

21.SegmentandGeographicData

Weoperatethroughthreereportablesegments:TransportationSolutions,IndustrialSolutions,andCommunicationsSolutions.SeeNote1foradescriptionofthesegmentsinwhichweoperate.Weaggregateouroperatingsegmentsintoreportablesegmentsbaseduponsimilareconomiccharacteristicsandbusinessgroupingsofproducts,services,andcustomers.

Segmentperformanceisevaluatedbasedonnetsalesandoperatingincome.Generally,weconsiderallexpensestobeofanoperatingnatureand,accordingly,allocatethemtoeachreportablesegment.Costsspecifictoasegmentarechargedtothesegment.Corporateexpenses,suchasheadquartersadministrativecosts,areallocatedtothesegmentsbasedonsegmentoperatingincome.Intersegmentsaleswerenotmaterialandwererecordedatsellingpricesthatapproximatemarketprices.Corporateassetsareallocatedtothesegmentsbasedonsegmentassets.

115

Fiscal 2016 2015 2014 Weighted-averagegrant-datefairvalue $ 14.26 $ 18.77 $ 16.81

Assumptions: Expectedsharepricevolatility 26% 36% 39%Riskfreeinterestrate 2.0% 2.0% 1.8%Expectedannualdividendpershare $ 1.32 $ 1.16 $ 1.00Expectedlifeofoptions(inyears) 5.7 6.0 6.0

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

21.SegmentandGeographicData(Continued)

Netsalesandoperatingincomebysegmentwereasfollows:

Nosinglecustomeraccountedforasignificantamountofournetsalesinfiscal2016,2015,and2014.

Aswearenotorganizedbyproductorservice,itisnotpracticabletodisclosenetsalesbyproductorservice.

Depreciationandamortizationandcapitalexpenditureswereasfollows:

Segmentassetsandareconciliationofsegmentassetstototalassetswereasfollows:

116

NetSales OperatingIncome Fiscal Fiscal 2016 2015 2014 2016 2015 2014 (inmillions) TransportationSolutions $ 6,503 $ 6,351 $ 6,090 $ 1,191 $ 1,193 $ 1,245IndustrialSolutions 3,215 3,179 3,302 343 352 431CommunicationsSolutions 2,520 2,703 2,581 368(1) 204 129Total $ 12,238 $ 12,233 $ 11,973 $ 1,902 $ 1,749 $ 1,805

(1) Includespre-taxgainof$144milliononthesaleofourCPDbusinessduringfiscal2016.

DepreciationandAmortization CapitalExpenditures Fiscal Fiscal 2016 2015 2014 2016 2015 2014 (inmillions) TransportationSolutions $ 337 $ 347 $ 285 $ 429 $ 400 $ 379IndustrialSolutions 131 123 102 107 104 143CommunicationsSolutions 117 146 164 92 96 113Total $ 585 $ 616 $ 551 $ 628 $ 600 $ 635

SegmentAssets FiscalYearEnd 2016 2015 2014 (inmillions) TransportationSolutions $ 3,501 $ 3,310 $ 3,062IndustrialSolutions 1,720 1,720 1,735CommunicationsSolutions 1,473 1,625 1,689Totalsegmentassets(1) 6,694 6,655 6,486

Othercurrentassets 1,133 4,150 5,311Othernon-currentassets 9,781 9,784 8,335Totalassets $ 17,608 $ 20,589 $ 20,132

(1) Segmentassetsarecomposedofaccountsreceivable,inventories,andproperty,plant,andequipment.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

21.SegmentandGeographicData(Continued)

Netsalesandnetproperty,plant,andequipmentbygeographicregionwereasfollows:

117

NetSales(1) Property,Plant,andEquipment,Net

Fiscal FiscalYearEnd 2016 2015 2014 2016 2015 2014 (inmillions) Americas: U.S. $ 3,901 $ 3,817 $ 3,119 $ 922 $ 887 $ 837OtherAmericas 298 321 396 93 87 97TotalAmericas 4,199 4,138 3,515 1,015 974 934

Europe/MiddleEast/Africa: Switzerland 2,979 2,992 3,483 62 55 54Germany 127 117 126 334 313 330OtherEurope/MiddleEast/Africa 1,010 883 615 630 588 642TotalEurope/MiddleEast/Africa 4,116 3,992 4,224 1,026 956 1,026

Asia–Pacific: China 2,165 2,367 2,331 491 529 492OtherAsia–Pacific 1,758 1,736 1,903 520 461 468TotalAsia–Pacific 3,923 4,103 4,234 1,011 990 960

Total $ 12,238 $ 12,233 $ 11,973 $ 3,052 $ 2,920 $ 2,920

(1) Netsalestoexternalcustomersisattributedtoindividualcountriesbasedonthelegalentitythatrecordsthesale.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

22.QuarterlyFinancialData(unaudited)

Summarizedquarterlyfinancialdatawasasfollows:

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Fiscal 2016 2015

First

Quarter

SecondQuarter

(1)

ThirdQuarter

(2)

FourthQuarter

(3)

FirstQuarter

(4) SecondQuarter

ThirdQuarter

FourthQuarter

(5) (inmillions,exceptpersharedata) Netsales $ 2,833 $ 2,952 $ 3,121 $ 3,332 $ 3,049 $ 3,082 $ 3,118 $ 2,984Grossmargin 945 962 1,022 1,104 1,020 1,051 1,048 968Acquisitionandintegrationcosts 5 3 11 3 24 14 8 9Restructuringandothercharges(credits),net 40 (99) 31 30 25 38 19 70

Incomefromcontinuingoperations 324 389 791 437 435 316 351 136Income(loss)fromdiscontinuedoperations,netofincometaxes 29 (9) 48 — 37 283 (42) 904

Netincome $ 353 $ 380 $ 839 $ 437 $ 472 $ 599 $ 309 $ 1,040

Basicearningspershare: Incomefromcontinuingoperations $ 0.84 $ 1.07 $ 2.22 $ 1.23 $ 1.07 $ 0.78 $ 0.86 $ 0.34Netincome 0.92 1.04 2.35 1.23 1.16 1.47 0.76 2.60

Dilutedearningspershare: Incomefromcontinuingoperations $ 0.83 $ 1.06 $ 2.19 $ 1.22 $ 1.05 $ 0.77 $ 0.85 $ 0.34Netincome 0.91 1.03 2.32 1.22 1.14 1.45 0.75 2.57

(1) Resultsforthesecondquarteroffiscal2016includedapre-taxgainof$146milliononthesaleofourCPDbusiness.

(2) Resultsforthethirdquarteroffiscal2016includeda$1,135millionincometaxbenefitassociatedwiththeeffectivesettlementoftaxmattersfortheyears1997through2000whichresolvedallaspectsofthedisputeddebtmatterwiththeIRSthroughtheyear2007andtherelatedimpactof$604milliontootherexpensepursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.Inaddition,resultsforthethirdquarteroffiscal2016includeda$91millionincometaxchargerelatedtoanincreasetothevaluationallowanceforcertainU.S.deferredtaxassets,andan$83millionnetincometaxbenefitrelatedtotaxsettlementsincertainothertaxjurisdictionsandtherelatedimpactof$46milliontootherexpensepursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.

(3) Resultsforthefourthquarteroffiscal2016includedanadditionalweek.SeeNote1foradditionalinformationregardingourfiscalyearend.

(4) Resultsforthefirstquarteroffiscal2015included$27millionofchargesfromtheamortizationofacquisition-relatedfairvalueadjustmentstoacquiredinventoriesandcustomerorderbacklogassociatedprimarilywithMeasurementSpecialties.Resultsforthefirstquarteroffiscal2015alsoincludeda$189millionincometaxbenefitassociatedwiththeeffectivesettlementofallundisputedtaxmattersfortheyears2001through2007andtherelatedimpactof$83milliontootherexpensepursuanttotheTaxSharingAgreementwithTycoInternationalandCovidien.

(5) Resultsforthefourthquarteroffiscal2015includeda$216millionincometaxchargeassociatedwiththetaximpactsofcertainintercompanylegalentityrestructuringsmadeinconnectionwithourintegrationofMeasurementSpecialtiesanda$63millionincometaxbenefitassociatedwiththeeffectivesettlementofallundisputedtaxmattersfortheyears2008through2010.Inaddition,inthefourthquarteroffiscal2015,income(loss)fromdiscontinuedoperations,netofincometaxesincludedthegainonthesaleofourBNSbusiness.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.

TycoElectronicsGroupS.A.("TEGSA"),aLuxembourgcompanyandour100%-ownedsubsidiary,isaholdingcompanythatowns,directlyorindirectly,allofouroperatingsubsidiaries.TEGSAistheobligorunderourseniornotes,commercialpaper,andCreditFacility,whicharefullyandunconditionallyguaranteedbyitsparent,TEConnectivityLtd.ThefollowingtablespresentcondensedconsolidatingfinancialinformationforTEConnectivityLtd.,TEGSA,andallothersubsidiariesthatarenotprovidingaguaranteeofdebtbutwhichrepresentassetsofTEGSA,usingtheequitymethodofaccounting.

CondensedConsolidatingStatementofOperationsFortheFiscalYearEndedSeptember30,2016

119

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) Netsales $ — $ — $ 12,238 $ — $ 12,238Costofsales — — 8,205 — 8,205Grossmargin — — 4,033 — 4,033

Selling,general,andadministrativeexpenses,net(1) 168 95 1,200 — 1,463Research,development,andengineeringexpenses — — 644 — 644Acquisitionandintegrationcosts — — 22 — 22Restructuringandothercharges(credits),net 2 (1) 1 — 2Operatingincome(loss) (170) (94) 2,166 — 1,902

Interestincome — — 19 — 19Interestexpense — (126) (1) — (127)Otherexpense,net — — (632) — (632)Equityinnetincomeofsubsidiaries 2,139 2,261 — (4,400) —Equityinnetincomeofsubsidiariesofdiscontinuedoperations 67 168 — (235) —

Intercompanyinterestincome(expense),net (28) 98 (70) — —Incomefromcontinuingoperationsbeforeincometaxes 2,008 2,307 1,482 (4,635) 1,162

Incometaxbenefit — — 779 — 779Incomefromcontinuingoperations 2,008 2,307 2,261 (4,635) 1,941

Income(loss)fromdiscontinuedoperations,netofincometaxes(2) 1 (101) 168 — 68Netincome 2,009 2,206 2,429 (4,635) 2,009

Othercomprehensiveloss (169) (169) (143) 312 (169)Comprehensiveincome $ 1,840 $ 2,037 $ 2,286 $ (4,323) $ 1,840

(1) TEGSAselling,general,andadministrativeexpensesincludelossesof$80millionrelatedtointercompanytransactions.Theselossesareoffsetbycorrespondinggainsrecordedbyothersubsidiaries.

(2) IncludestheinternalallocationofgainsandlossesassociatedwiththedivestitureofourBNSbusiness.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingStatementofOperationsFortheFiscalYearEndedSeptember25,2015

120

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) Netsales $ — $ — $ 12,233 $ — $ 12,233Costofsales — — 8,146 — 8,146Grossmargin — — 4,087 — 4,087

Selling,general,andadministrativeexpenses,net(1) 163 835 506 — 1,504Research,development,andengineeringexpenses — — 627 — 627Acquisitionandintegrationcosts — — 55 — 55Restructuringandothercharges,net — — 152 — 152Operatingincome(loss) (163) (835) 2,747 — 1,749

Interestincome — — 17 — 17Interestexpense — (135) (1) — (136)Otherexpense,net — — (55) — (55)Equityinnetincomeofsubsidiaries 1,398 2,318 — (3,716) —Equityinnetincomeofsubsidiariesofdiscontinuedoperations 1,182 365 — (1,547) —

Intercompanyinterestincome(expense),net 3 50 (53) — —Incomefromcontinuingoperationsbeforeincometaxes 2,420 1,763 2,655 (5,263) 1,575

Incometaxexpense — — (337) — (337)Incomefromcontinuingoperations 2,420 1,763 2,318 (5,263) 1,238

Incomefromdiscontinuedoperations,netofincometaxes — 817 365 — 1,182Netincome 2,420 2,580 2,683 (5,263) 2,420

Othercomprehensiveloss (356) (356) (368) 724 (356)Comprehensiveincome $ 2,064 $ 2,224 $ 2,315 $ (4,539) $ 2,064

(1) TEGSAselling,general,andadministrativeexpensesincludelossesof$846millionrelatedtointercompanytransactions.Theselossesareoffsetbycorrespondinggainsrecordedbyothersubsidiaries.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingStatementofOperationsFortheFiscalYearEndedSeptember26,2014

121

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) Netsales $ — $ — $ 11,973 $ — $ 11,973Costofsales — — 8,001 — 8,001Grossmargin — — 3,972 — 3,972

Selling,general,andadministrativeexpenses,net(1) 131 1,877 (474) — 1,534Research,development,andengineeringexpenses — — 583 — 583Acquisitionandintegrationcosts — — 31 — 31Restructuringandothercharges,net — — 19 — 19Operatingincome(loss) (131) (1,877) 3,813 — 1,805

Interestincome — — 19 — 19Interestexpense — (126) (1) — (127)Otherincome(expense),net 18 (3) 48 — 63Equityinnetincomeofsubsidiaries 1,729 3,672 — (5,401) —Equityinnetincomeofsubsidiariesofdiscontinuedoperations 167 167 — (334) —

Intercompanyinterestincome(expense),net (2) 63 (61) — —Incomefromcontinuingoperationsbeforeincometaxes 1,781 1,896 3,818 (5,735) 1,760

Incometaxexpense — — (146) — (146)Incomefromcontinuingoperations 1,781 1,896 3,672 (5,735) 1,614

Incomefromdiscontinuedoperations,netofincometaxes — — 167 — 167Netincome 1,781 1,896 3,839 (5,735) 1,781

Othercomprehensiveloss (320) (320) (328) 648 (320)Comprehensiveincome $ 1,461 $ 1,576 $ 3,511 $ (5,087) $ 1,461

(1) TEGSAselling,general,andadministrativeexpensesincludelossesof$1,874millionrelatedtointercompanytransactions.Theselossesareoffsetbycorrespondinggainsrecordedbyothersubsidiaries.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingBalanceSheetAsofSeptember30,2016

122

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) Assets Currentassets: Cashandcashequivalents $ — $ — $ 647 $ — $ 647Accountsreceivable,net — — 2,046 — 2,046Inventories — — 1,596 — 1,596Intercompanyreceivables 37 1,314 48 (1,399) —Prepaidexpensesandothercurrentassets 3 17 466 — 486Totalcurrentassets 40 1,331 4,803 (1,399) 4,775

Property,plant,andequipment,net — — 3,052 — 3,052Goodwill — — 5,492 — 5,492Intangibleassets,net — — 1,879 — 1,879Deferredincometaxes — — 2,111 — 2,111Investmentinsubsidiaries 10,053 19,425 — (29,478) —Intercompanyloansreceivable 22 3,739 10,313 (14,074) —ReceivablefromTycoInternationalplcandCovidienplc — — 12 — 12Otherassets — 14 273 — 287TotalAssets $ 10,115 $ 24,509 $ 27,935 $ (44,951) $ 17,608

LiabilitiesandShareholders'Equity Currentliabilities: Short-termdebt $ — $ 330 $ 1 $ — $ 331Accountspayable 1 — 1,089 — 1,090Accruedandothercurrentliabilities 266 57 1,114 — 1,437Deferredrevenue — — 208 — 208Intercompanypayables 1,363 — 36 (1,399) —Totalcurrentliabilities 1,630 387 2,448 (1,399) 3,066

Long-termdebt — 3,737 2 — 3,739Intercompanyloanspayable — 10,314 3,760 (14,074) —Long-termpensionandpostretirementliabilities — — 1,502 — 1,502Deferredincometaxes — — 207 — 207Incometaxes — — 247 — 247Otherliabilities — 18 344 — 362TotalLiabilities 1,630 14,456 8,510 (15,473) 9,123TotalShareholders'Equity 8,485 10,053 19,425 (29,478) 8,485TotalLiabilitiesandShareholders'Equity $ 10,115 $ 24,509 $ 27,935 $ (44,951) $ 17,608

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingBalanceSheetAsofSeptember25,2015

123

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) Assets Currentassets: Cashandcashequivalents $ — $ — $ 3,329 $ — $ 3,329Accountsreceivable,net — — 2,120 — 2,120Inventories — — 1,615 — 1,615Intercompanyreceivables 813 389 66 (1,268) —Prepaidexpensesandothercurrentassets 4 4 468 — 476Deferredincometaxes — — 345 — 345Totalcurrentassets 817 393 7,943 (1,268) 7,885

Property,plant,andequipment,net — — 2,920 — 2,920Goodwill — — 4,824 — 4,824Intangibleassets,net — — 1,555 — 1,555Deferredincometaxes — — 2,144 — 2,144Investmentinsubsidiaries 9,505 19,645 — (29,150) —Intercompanyloansreceivable 22 2,328 8,110 (10,460) —ReceivablefromTycoInternationalplcandCovidienplc — — 964 — 964Otherassets — 27 270 — 297TotalAssets $ 10,344 $ 22,393 $ 28,730 $ (40,878) $ 20,589

LiabilitiesandShareholders'Equity Currentliabilities: Short-termdebt $ — $ 498 $ — $ — $ 498Accountspayable 2 — 1,141 — 1,143Accruedandothercurrentliabilities 442 75 1,232 — 1,749Deferredrevenue — — 185 — 185Intercompanypayables 311 824 133 (1,268) —Totalcurrentliabilities 755 1,397 2,691 (1,268) 3,575

Long-termdebt — 3,385 1 — 3,386Intercompanyloanspayable 4 8,106 2,350 (10,460) —Long-termpensionandpostretirementliabilities — — 1,327 — 1,327Deferredincometaxes — — 329 — 329Incometaxes — — 1,954 — 1,954Otherliabilities — — 433 — 433TotalLiabilities 759 12,888 9,085 (11,728) 11,004TotalShareholders'Equity 9,585 9,505 19,645 (29,150) 9,585TotalLiabilitiesandShareholders'Equity $ 10,344 $ 22,393 $ 28,730 $ (40,878) $ 20,589

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingStatementofCashFlowsFortheFiscalYearEndedSeptember30,2016

124

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) CashFlowsFromOperatingActivities: Netcashprovidedby(usedin)continuingoperatingactivities(1) $ (37) $ 211 $ 2,181 $ (336) $ 2,019

Netcashusedindiscontinuedoperatingactivities — — (97) — (97)

Netcashprovidedby(usedin)operatingactivities (37) 211 2,084 (336) 1,922CashFlowsFromInvestingActivities: Capitalexpenditures — — (628) — (628)Proceedsfromsaleofproperty,plant,andequipment — — 8 — 8Acquisitionofbusinesses,netofcashacquired — — (1,336) — (1,336)Proceedsfromdivestitureofbusiness,netofcashretainedbysoldbusiness — 199 134 — 333

Proceedsfromdivestitureofdiscontinuedoperations,netofcashretainedbysoldoperations(2) — (120) 101 — (19)

Intercompanydistributionreceipts(1) 1,082 1,729 — (2,811) —Changeinintercompanyloans — (1,244) — 1,244 —Other — — 61 — 61Netcashprovidedby(usedin)investingactivities 1,082 564 (1,660) (1,567) (1,581)

CashFlowsFromFinancingActivities: Changesinparentcompanyequity(3) 410 300 (710) — —Netincreaseincommercialpaper — 330 — — 330Proceedsfromissuanceofdebt — 349 3 — 352Repaymentofdebt — (500) (1) — (501)Proceedsfromexerciseofshareoptions — — 90 — 90Repurchaseofcommonshares (2,780) — (7) — (2,787)Paymentofcommonsharedividendstoshareholders (513) — 4 — (509)Intercompanydistributions(1) — (1,250) (1,897) 3,147 —Loanactivitywithparent 1,838 — (594) (1,244) —Transferstodiscontinuedoperations — — (97) — (97)Other — (4) (1) — (5)Netcashusedincontinuingfinancingactivities (1,045) (775) (3,210) 1,903 (3,127)Netcashprovidedbydiscontinuedfinancingactivities — — 97 — 97Netcashusedinfinancingactivities (1,045) (775) (3,113) 1,903 (3,030)

Effectofcurrencytranslationoncash — — 7 — 7Netdecreaseincashandcashequivalents — — (2,682) — (2,682)Cashandcashequivalentsatbeginningoffiscalyear — — 3,329 — 3,329Cashandcashequivalentsatendoffiscalyear $ — $ — $ 647 $ — 647

(1) Duringfiscal2016,othersubsidiariesmadedistributionstoTEGSAintheamountof$1,897millionandTEGSAmadedistributionstoTEConnectivityLtd.intheamountof$1,250million.Cashflowsarepresentedbaseduponthenatureofthedistributions.

(2) IncludestheinternalallocationofproceedsbetweenTEGSAandothersubsidiariesassociatedwiththedivestitureofourBNSbusiness.

(3) Changesinparentcompanyequityincludescashflowsrelatedtocertainintercompanyequityandfundingtransactions,andotherintercompanyactivity.

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TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingStatementofCashFlowsFortheFiscalYearEndedSeptember25,2015

125

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) CashFlowsFromOperatingActivities: Netcashprovidedbycontinuingoperatingactivities(1) $ 1,186 $ 1,270 $ 1,824 $ (2,661) $ 1,619Netcashprovidedbydiscontinuedoperatingactivities — — 294 — 294

Netcashprovidedbyoperatingactivities 1,186 1,270 2,118 (2,661) 1,913CashFlowsFromInvestingActivities: Capitalexpenditures — — (600) — (600)Proceedsfromsaleofproperty,plant,andequipment — — 17 — 17Acquisitionofbusinesses,netofcashacquired — — (1,725) — (1,725)Proceedsfromdivestitureofdiscontinuedoperations,netofcashretainedbysoldoperations — 709 2,248 — 2,957

Changeinintercompanyloans — (1,304) — 1,304 —Other — — 12 — 12Netcashprovidedby(usedin)continuinginvestingactivities — (595) (48) 1,304 661

Netcashusedindiscontinuedinvestingactivities — — (25) — (25)

Netcashprovidedby(usedin)investingactivities — (595) (73) 1,304 636CashFlowsFromFinancingActivities: Changesinparentcompanyequity(2) 80 624 (704) — —Netdecreaseincommercialpaper — (328) — — (328)Proceedsfromissuanceofdebt — 617 — — 617Repaymentofdebt — (250) (223) — (473)Proceedsfromexerciseofshareoptions — — 103 — 103Repurchaseofcommonshares (916) — (107) — (1,023)Paymentofcommonsharedividendstoshareholders (515) — 13 — (502)Intercompanydistributions(1) — (1,335) (1,326) 2,661 —Loanactivitywithparent 165 — 1,139 (1,304) —Transfersfromdiscontinuedoperations — — 269 — 269Other — (4) 4 — —Netcashusedincontinuingfinancingactivities (1,186) (676) (832) 1,357 (1,337)Netcashusedindiscontinuedfinancingactivities — — (269) — (269)

Netcashusedinfinancingactivities (1,186) (676) (1,101) 1,357 (1,606)Effectofcurrencytranslationoncash — — (71) — (71)Netincrease(decrease)incashandcashequivalents — (1) 873 — 872Cashandcashequivalentsatbeginningoffiscalyear — 1 2,456 — 2,457Cashandcashequivalentsatendoffiscalyear $ — $ — $ 3,329 $ — $ 3,329

(1) Duringfiscal2015,othersubsidiariesmadedistributionstoTEGSAintheamountof$1,326millionandTEGSAmadedistributionstoTEConnectivityLtd.intheamountof$1,335million.Cashflowsarepresentedbaseduponthenatureofthedistributions.

(2) Changesinparentcompanyequityincludescashflowsrelatedtocertainintercompanyequityandfundingtransactions,andotherintercompanyactivity.

TableofContents

TECONNECTIVITYLTD.

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS(Continued)

23.TycoElectronicsGroupS.A.(Continued)

CondensedConsolidatingStatementofCashFlowsFortheFiscalYearEndedSeptember26,2014

126

TEConnectivity

Ltd. TEGSA Other

Subsidiaries ConsolidatingAdjustments Total

(inmillions) CashFlowsFromOperatingActivities: Netcashprovidedby(usedin)continuingoperatingactivities(1) $ (296) $ 1,829 $ 2,153 $ (1,882) $ 1,804

Netcashprovidedbydiscontinuedoperatingactivities — — 279 — 279Netcashprovidedby(usedin)operatingactivities (296) 1,829 2,432 (1,882) 2,083

CashFlowsFromInvestingActivities: Capitalexpenditures — — (635) — (635)Proceedsfromsaleofproperty,plant,andequipment — — 129 — 129Acquisitionofbusinesses,netofcashacquired — — (522) — (522)Proceedsfromdivestitureofbusiness,netofcashretainedbysoldbusiness — — 3 — 3

Intercompanydistributionreceipts(1) — 99 — (99) —Changeinintercompanyloans — 347 — (347) —Other — — (13) — (13)Netcashprovidedby(usedin)continuinginvestingactivities — 446 (1,038) (446) (1,038)

Netcashusedindiscontinuedinvestingactivities — — (37) — (37)

Netcashprovidedby(usedin)investingactivities — 446 (1,075) (446) (1,075)CashFlowsFromFinancingActivities: Changesinparentcompanyequity(2) 67 (3,259) 3,192 — —Netdecreaseincommercialpaper — (23) — — (23)Proceedsfromissuanceofdebt — 1,322 — — 1,322Repaymentofdebt — (303) (57) — (360)Proceedsfromexerciseofshareoptions — — 156 — 156Repurchaseofcommonshares (127) — (451) — (578)Paymentofcommonsharedividendstoshareholders (452) — 9 — (443)Intercompanydistributions(1) — — (1,981) 1,981 —Loanactivitywithparent 808 — (1,155) 347 —Transfersfromdiscontinuedoperations — — 242 — 242Other — (11) 2 — (9)Netcashprovidedby(usedin)continuingfinancingactivities 296 (2,274) (43) 2,328 307

Netcashusedindiscontinuedfinancingactivities — — (242) — (242)

Netcashprovidedby(usedin)financingactivities 296 (2,274) (285) 2,328 65

Effectofcurrencytranslationoncash — — (19) — (19)Netincreaseincashandcashequivalents — 1 1,053 — 1,054Cashandcashequivalentsatbeginningoffiscalyear — — 1,403 — 1,403Cashandcashequivalentsatendoffiscalyear $ — $ 1 $ 2,456 $ — $ 2,457

(1) Duringfiscal2014,othersubsidiariesmadedistributionstoTEGSAintheamountof$1,981million.Cashflowsarepresentedbaseduponthenatureofthedistributions.

(2) Changesinparentcompanyequityincludescashflowsrelatedtocertainintercompanyequityandfundingtransactions,andotherintercompanyactivity.

TableofContents

TECONNECTIVITYLTD.

SCHEDULEII—VALUATIONANDQUALIFYINGACCOUNTS

FiscalYearsEndedSeptember30,2016,September25,2015,andSeptember26,2014

127

Description Balanceat

BeginningofYear

AdditionsChargedtoCostsandExpenses

Acquisitions,Divestitures,andOther Deductions

BalanceatEndofYear

(inmillions) Fiscal2016: Allowancefordoubtfulaccountsreceivable $ 18 $ — $ 1 $ (2) $ 17Valuationallowanceondeferredtaxassets 3,237 283 1 (425) 3,096

Fiscal2015: Allowancefordoubtfulaccountsreceivable $ 14 $ 2 $ 3 $ (1) $ 18Valuationallowanceondeferredtaxassets 1,706 1,627 1 (97) 3,237

Fiscal2014: Allowancefordoubtfulaccountsreceivable $ 29 $ 2 $ — $ (17) $ 14Valuationallowanceondeferredtaxassets 1,801 285 — (380) 1,706

Exhibit 10.5

TE CONNECTIVITY LTD.

2007 STOCK AND INCENTIVE PLAN(AMENDED AND RESTATED AS OF SEPTEMBER 16, 2014)

ARTICLE IPURPOSE

1.1 Purpose. ThepurposesofthisTEConnectivityLtd.2007StockandIncentivePlan(AmendedandRestatedasofSeptember16,2014)(the“Plan”)

aretopromotetheinterestsofTEConnectivityLtd.(andanysuccessorthereto)by(i)aidingintherecruitmentandretentionofDirectorsandEmployees,(ii)providingincentivestosuchDirectorsandEmployeesbymeansofperformance-relatedincentivestoachieveshort-termandlong-termperformancegoals,(iii)providingDirectorsandEmployeesanopportunitytoparticipateinthegrowthandfinancialsuccessoftheCompany,and(iv)promotingthegrowthandsuccessoftheCompany’sbusinessbyaligningthefinancialinterestsofDirectorsandEmployeeswiththatoftheotherstockholdersoftheCompany.Towardtheseobjectives,thePlanprovidesforthegrantofStockOptions,StockAppreciationRights,AnnualPerformanceBonuses,LongTermPerformanceAwardsandotherStock-BasedAwards.

1.2 Effective Dates; Shareholder Approval. ThePlanwasoriginallyeffectiveJune29,2007,thedateofthedividenddistributionofTEConnectivityLtd.sharestotheTycoInternationalLtd.shareholdersofrecordonthedistributiondate.ThePlanwasapprovedbytheTEConnectivityLtd.BoardofDirectorsonJune4,2007andadoptedbyTycoInternationalLtd.,astheCompany’ssoleshareholder,onJune4,2007.AnamendmentandrestatementtothePlantoensureitscompliancewithSection409AoftheCodeandtomakecertainotherclarifyingchangeswasadoptedbytheBoardofDirectorsoftheCompanyonJanuary13,2009andapprovedbytheCompany’sshareholdersonJune22,2009.InordertoprovidefortheissuanceofadditionalsharesunderthePlan,anamendedandrestatedPlanwasadoptedbytheBoardofDirectorsoftheCompanyonNovember17,2009andwasapprovedbytheCompany’sshareholdersonMarch10,2010.ThePlanwasfurtheramendedandrestatedonSeptember29,2010.InordertoprovidefortheissuanceofadditionalsharesunderthePlan,anamendedandrestatedPlanwasadoptedbytheBoardofDirectorsoftheCompanyonNovember15,2011andwasapprovedbytheCompany’sshareholdersonMarch17,2012.ThisamendedandrestatedPlanwasadoptedbytheBoardofDirectorsoftheCompanyonSeptember16,2014forthepurposeofaddingcertainadministrativeamendments.ThisPlandocumentalsoincludesamendmentsapprovedbytheBoardonDecember2,2015.

ARTICLE IIDEFINITIONS

ForpurposesofthePlan,thefollowingtermshavethefollowingmeanings,unlessanotherdefinitionisclearlyindicatedbyparticularusageandcontext:

“Acquired Company ”meansanybusiness,corporationorotherentityacquiredbytheCompanyoranySubsidiary.

“Acquired Grantee ”meansthegranteeofastock-basedawardofanAcquiredCompanyandmayincludeacurrentorformerDirectorofan

AcquiredCompany.

“Annual Performance Bonus ”meansanAwardofcashorSharesgrantedunderSection4.4ofthePlanthatispaidsolelyonaccountoftheattainmentofaspecifiedperformancetargetinrelationtooneormorePerformanceMeasures.

“Award ”meansanyformofincentiveorperformanceawardgrantedunderthePlan,whethersinglyorincombination,toaParticipantbythe

CommitteepursuanttoanytermsandconditionsthattheCommitteemayestablishandsetforthintheapplicableAwardCertificate.AwardsgrantedunderthePlanmayconsistof:

(a)“Stock Options ”awardedpursuanttoSection4.3;

(b)“Stock Appreciation Rights ”awardedpursuanttoSection4.3;

(c)“Annual Performance Bonuses ”awardedpursuanttoSection4.4;

(d)“Long Term Performance Awards ”awardedpursuanttoSection4.5;

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(e)“Other Stock-Based Awards ”awardedpursuanttoSection4.6;

(f)“Director Awards ”awardedpursuanttoSection4.7;and

(g)“Substitute Awards ”awardedpursuanttoSection4.8.

“Award Certificate ”meansthedocumentissued,eitherinwritingoranelectronicmedium,bytheCommitteeoritsdesigneetoaParticipant

evidencingthegrantofanAward.

“Board ”meanstheBoardofDirectorsoftheCompany.

“Cause ”meansmisconductthatiswillfullyorwantonlyharmfultotheCompanyoranyofitsSubsidiaries,monetarilyorotherwise,including,withoutlimitation,conductthatviolatestheCompany’sCodeofethicalConduct.

“Change in Control ”meansthefirsttooccurofanyofthefollowingevents:

(a)any“person”(asdefinedinSection13(d)and14(d)oftheExchangeAct,excludingforthispurpose,(i)theCompanyorany

Subsidiaryor(ii)anyemployeebenefitplanoftheCompanyoranySubsidiary(oranypersonorentityorganized,appointedorestablishedbytheCompanyfororpursuanttothetermsofanysuchplanthatacquiresbeneficialownershipofvotingsecuritiesoftheCompany),isorbecomesthe“beneficialowner”(asdefinedinRule13d-3undertheExchangeAct)directlyorindirectlyofsecuritiesoftheCompanyrepresentingmorethan30percentofthecombinedvotingpoweroftheCompany’sthenoutstandingsecurities;provided,however,thatnoChangeinControlwillbedeemedtohaveoccurredasaresultofachangeinownershippercentageresultingsolelyfromanacquisitionofsecuritiesbytheCompany;or

(b)personswho,asoftheEffectiveDateconstitutetheBoard(the“IncumbentDirectors”)ceaseforanyreason(including

withoutlimitation,asaresultofatenderoffer,proxycontest,mergerorsimilartransaction)toconstituteatleastamajoritythereof,providedthatanypersonbecomingaDirectoroftheCompanysubsequenttotheEffectiveDateshallbeconsideredanIncumbentDirectorifsuchperson’selectionornominationforelectionwasapprovedbyavoteofatleast50percentoftheIncumbentDirectors;butprovidedfurther,thatanysuchpersonwhoseinitialassumptionofofficeisinconnectionwithanactualorthreatenedproxycontestrelatingtotheelectionofmembersoftheBoardorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofa“person”(asdefinedinSection13(d)and14(d)oftheExchangeAct)otherthantheBoard,includingbyreasonofagreementintendedtoavoidorsettleanysuchactualorthreatenedcontestorsolicitation,shallnotbeconsideredanIncumbentDirector;or

(c)consummationofareorganization,mergerorconsolidationorsaleorotherdispositionofatleast80percentoftheassetsof

theCompany(a“BusinessCombination”),ineachcase,unless,followingsuchBusinessCombination,allorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialownersofoutstandingvotingsecuritiesoftheCompanyimmediatelypriortosuchBusinessCombinationbeneficiallyowndirectlyorindirectlymorethan50percentofthecombinedvotingpowerofthethenoutstandingvotingsecuritiesentitledtovotegenerallyintheelectionofdirectors,ofthecompanyresultingfromsuchBusinessCombination(including,withoutlimitation,acompanywhich,asaresultofsuchtransaction,ownstheCompanyorallorsubstantiallyalloftheCompany’sassetseitherdirectlyorthroughoneormoreSubsidiaries)insubstantiallythesameproportionsastheirownership,immediatelypriortosuchBusinessCombination,oftheoutstandingvotingsecuritiesoftheCompany;or

(d)consummationofacompleteliquidationordissolutionoftheCompany;

provided,however,thatifandtotheextentthatanyprovisionofthisPlanoranAwardCertificatewouldcauseapaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)tobemadeupontheoccurrenceofa“ChangeinControl,”orwouldchangethetimingand/orformofanypaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)uponaspecifieddateoreventoccurringaftera“ChangeinControl”orupona“ChangeinControlTermination,”thensuchpaymentshallnotbemade,orsuchchangeintimingorformofpaymentshallnotoccur,unlesssuch“ChangeinControl”isalsoa“changeinownershiporeffectivecontrol”oftheCompanywithinthemeaningofCode

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Section409A(2)(A)(v)andapplicableregulationsandrulingsthereunderandsuchpayment,orsuchassociateddateorevent,occursnolaterthantwoyearsafterthedateofsuch“ChangeinControl.”

“Change in Control Termination ”meansaParticipant’sinvoluntaryterminationofemploymentthatoccursduringthe12monthperiod

immediatelyfollowingaChangeinControl.Forthispurpose,aParticipant’sinvoluntaryterminationofemploymentincludesonlythefollowing:

(a)terminationoftheParticipant’semploymentbytheCompanyforanyreasonotherthanforCause,Disabilityordeath;

(b)terminationoftheParticipant’semploymentbytheParticipantafteroneofthefollowingevents,providedthattheParticipant’sterminationofemploymentoccurswithinonehundredandeighty(180)daysaftertheoccurrenceofanysuchevent:

i.theCompany(1)assignsorcausestobeassignedtotheParticipantdutiesinconsistentinanymaterialrespectwith

hisorherpositionasineffectimmediatelypriortotheChangeinControl;(2)makesorcausestobemadeanymaterialadversechangeintheParticipant’sposition,authority,dutiesorresponsibilities;or(3)takesorcausestobetakenanyotheractionwhich,inthereasonablejudgmentoftheParticipant,wouldcausehimorhertoviolatehisorherethicalorprofessionalobligations(afterwrittennoticeofsuchjudgmenthasbeenprovidedbytheParticipanttotheCompanyandtheCompanyhasbeengivena15-dayperiodwithinwhichtocuresuchaction),orwhichresultsinasignificantdiminutioninsuchposition,authority,dutiesorresponsibilities;or

ii.theCompany,withouttheParticipant’sconsent,(1)requirestheParticipanttorelocatetoaprincipalplaceof

employmentmorethanfifty(50)milesfromhisorherexistingplaceofemployment;or(2)reducestheParticipant’sbasesalary,annualbonus,orretirement,welfare,stockincentive,perquisite(ifany)andotherbenefitstakenasawhole.

“Code ”meanstheUnitedStatesInternalRevenueCodeof1986,asamended.

“Committee ”meanstheManagementDevelopmentandCompensationCommitteeoftheBoardoranysuccessorcommitteeorsubcommitteeof

theBoard,whichcommitteeiscomprisedsolelyoftwoormorepersonswhoareoutsidedirectorswithinthemeaningofSection162(m)(4)(C)(i)oftheCodeandtheapplicableregulationsandnonemployeedirectorswithinthemeaningofRule16b-3(b)(3)undertheExchangeAct.

“Common Stock ”meansthecommonstockoftheCompany,$.20(U.S.)parvalue,andsuchothersecuritiesorpropertyasmaybecomesubject

toAwardspursuanttoanadjustmentmadeunderSection5.3ofthePlan.

“Company ”meansTEConnectivityLtd.,aSwisscompany,oranysuccessorthereto.

“Deferred Stock Unit ”meansaUnitgrantedunderSection4.6toacquireSharesuponTerminationofDirectorshiporTerminationofEmployment,subjecttoanyrestrictionsthattheCommittee,initsdiscretion,maydetermine.

“Director ”meansamemberoftheBoardwhoisa“non-employeedirector”withinthemeaningofRule16b-3(b)(3)undertheExchangeAct.

“Director Shares ”meanstheawardoffully-vestedSharestoaDirectorunderSection4.6aspartoftheDirector’sannualcompensation,or

undersuchcircumstancesasaredeemedappropriatebytheBoard.

“Disabled ”or“Disability ”meanstheinabilityoftheDirectororEmployeetoperformthematerialdutiespertainingtosuchDirector’sdirectorshiporsuchEmployee’semploymentduetoaphysicalormentalinjury,infirmityorincapacityfor180days(includingweekendsandholidays)inany365-dayperiod.TheexistenceornonexistenceofaDisabilityshallbedeterminedbyanindependentphysicianselectedbytheCompanyandreasonablyacceptabletotheDirectororEmployee.Notwithstandingtheabove,ifandtotheextentthatanyprovisionofthisPlanoranAwardCertificatewouldcauseapaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)tobemadeupontheoccurrenceofa“Disability”oruponapersonbecoming“Disabled,”orwouldcauseachangeinthetimingorformofpaymentofsuchdeferredcompensationupontheoccurrenceofa“Disability”oruponapersonbecoming“Disabled,”thensuchpaymentshallnotbemade,orsuchchangeintiming

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orformofpaymentshallnotoccur,unlesssuch“Disability”orconditionofbeing“Disabled”satisfiestherequirementsofCodeSection409A(2)(C)andapplicableregulationsandrulingsthereunder.

“Dividend Equivalent ”meansanamountequaltothecashdividendortheFairMarketValueofthestockdividendthatwouldbepaidoneach

ShareunderlyinganAwardiftheShareweredulyissuedandoutstandingonthedateonwhichthedividendispayable.DividendEquivalentswillnotbeawardedinconnectionwithstockoptionorStockAppreciationRightsAwards.

“Effective Date ”meansSeptember16,2014.TheoriginaleffectivedateoftheTEConnectivityLtd.StockandIncentivePlanwas,June29,

2007,thedateofthedividenddistributionofTEConnectivityLtd.sharestotheTycoInternationalLtd.shareholdersofrecordonthedistributiondate.

“Employee ”meansanyindividualwhoperformsservicesasanofficeroremployeeoftheCompanyoraSubsidiary.

“Exchange Act ”meanstheUnitedStatesSecuritiesExchangeActof1934,asamended.

“Exercise Price ”meansthepriceofaShare,asfixedbytheCommittee,whichmaybepurchasedunderaStockOptionorwithrespecttowhichtheamountofanypaymentpursuanttoaStockAppreciationRightisdetermined.

“Fair Market Value ”ofaSharemeanstheclosingsalespriceontheNewYorkStockExchangeonthedateasofwhichthedeterminationof

FairMarketValueisbeingmadeor,ifnosaleisreportedforsuchday,onthenextprecedingdayonwhichasaleofShareswasreported.Notwithstandinganythingtothecontraryherein,theFairMarketValueofaSharewillinnoeventbedeterminedtobelessthanparvalue.

“Fair Market Value Stock Option ”meansaStockOptiontheExercisePriceofwhichisfixedbytheCommitteeatapriceequaltotheFair

MarketValueofaShareonthedateofgrant.

“GAAP ”meansUnitedStatesgenerallyacceptedaccountingprinciples.

“Incentive Stock Option ”meansaStockOptiongrantedunderSection4.3ofthePlanthatmeetstherequirementsofSection422oftheCodeandanyrelatedregulationsandisdesignatedintheAwardCertificatetobeanIncentiveStockOption.

“Key Employee ”meansanEmployeewhoisa“coveredemployee”withinthemeaningofSection162(m)(3)oftheCode.

“Long Term Performance Award ”meansanAwardgrantedunderSection4.5ofthePlanthatispaidsolelyonaccountoftheattainmentofa

specifiedperformancetargetinrelationtooneormorePerformanceMeasuresorotherperformancecriteriaasselectedinthediscretionoftheCommittee.

“Non-Employee Director ”meansanymemberoftheBoard,electedorappointed,whoisnototherwiseanEmployeeoftheCompanyoraSubsidiary.AnindividualwhoiselectedtotheBoardatanannualmeetingofthestockholdersoftheCompanywillbedeemedtobeamemberoftheBoardasofthedateofthemeeting.

“Nonqualified Stock Option ”meansanyStockOptiongrantedunderSection4.3ofthePlanthatisnotanIncentiveStockOption.

“Participant ”meansaDirector,EmployeeorAcquiredGranteewhohasbeengrantedanAwardunderthePlan.

“Performance Cycle ”means,withrespecttoanyAwardthatvestsbasedonPerformanceMeasures,theperiodof12monthsorlongerover

whichthelevelofperformancewillbeassessed.ThefirstPerformanceCycleunderthePlanwillbeginonsuchdateasissetbytheCommittee,initsdiscretion.

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“Performance Measure ”means,withrespecttoanyAnnualPerformanceBonusorLongTermPerformanceAward,thebusinesscriteria

selectedbytheCommitteetomeasurethelevelofperformanceoftheCompanyduringthePerformanceCycle.TheCommitteemayselectasthePerformanceMeasureforaPerformanceCycleanyoneorcombinationofthefollowingCompanymeasures,asinterpretedbytheCommittee,whichmeasures(totheextentapplicable)willbedeterminedinaccordancewithGAAP:

(a)Netoperatingprofitaftertaxes;

(b)Netoperatingprofitaftertaxes,perShare;

(c)Returnoninvestedcapital;

(d)Returnonassetsornetassets;

(e)Totalshareholderreturn;

(f)Relativetotalshareholderreturn(ascomparedwithapeergroupoftheCompany);

(g)Earningsbeforeincometaxes;

(h)EarningsperShare;

(i)Netincome;

(j)Freecashflow;

(k)FreecashflowperShare;

(l)Revenue(oranycomponentthereof);or

(m)Revenuegrowth.

“Performance Unit ”meansaLongTermPerformanceAwarddenominatedindollarUnits.

“Plan ”meanstheTEConnectivityLtd.2007StockandIncentivePlan(AmendedandRestatedasofSeptember16,2014),asitmaybe

amendedfromtimetotime.

“Premium-Priced Stock Option ”meansaStockOptiontheExercisePriceofwhichisfixedbytheCommitteeatapricethatexceedstheFairMarketValueofaShareonthedateofgrant.

“Reporting Person ”meansaDirectororanEmployeewhoissubjecttothereportingrequirementsofSection16(a)oftheExchangeAct.

“Restricted Stock ”meansSharesissuedpursuanttoSection4.6thataresubjecttoanyrestrictionsthattheCommittee,initsdiscretion,may

impose.

“Restricted Unit ”meansaUnitgrantedunderSection4.6toacquireSharesoranequivalentamountincash,whichUnitissubjecttoanyrestrictionsthattheCommittee,initsdiscretion,mayimpose.

“Retirement ”meansTerminationofEmploymentonorafteraParticipanthasattainedagefifty-five(55)andhascompletedatleastfiveyears

ofservicewiththeCompanyanditsSubsidiaries.

“Securities Act ”meanstheUnitedStatesSecuritiesActof1933,asamended.

“Share ”meansashareofCommonStock.

“Stock Appreciation Right ”meansarightgrantedunderSection4.3ofthePlantoanamountincashorSharesequaltoanydifferencebetweentheFairMarketValueoftheSharesasofthedateonwhichtherightisexercisedandtheExercisePrice,wheretheamountofSharesattributabletoeachStockAppreciationRightissetforthonorbeforethegrantdate.

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“Stock-Based Award ”meansanAwardgrantedunderSection4.6ofthePlananddenominatedinShares.

“Stock Option ”meansarightgrantedunderSection4.3ofthePlantopurchasefromtheCompanyastatednumberofSharesataspecified

price.StockOptionsawardedunderthePlanmaybeintheformofIncentiveStockOptionsorNonqualifiedStockOptions.

“Subsidiary ”meansasubsidiarycompany(whereverincorporated)oftheCompany;provided,thatinthecaseofanyAwardthatprovidesdeferredcompensationsubjecttoCodeSection409A,“Subsidiary”shallnotincludeanysubsidiarycompanyasdefinedaboveunlesssuchcompanyiswithinacontrolledgroupofcorporationswiththeCompanyasdefinedinCodeSections1563(a)(1),(2)and(3)wherethephrase“atleast50%”issubstitutedineachplace“atleast80%”appearsoriswiththeCompanypartofagroupoftradesorbusinessesundercommoncontrolasdefinedinCodeSection414(c)andTreas.Reg.§1.414(c)-2wherethephrase“atleast50%”issubstitutedineachplace“atleast80%”appears,provided,however,thatwhentherelevantdeterminationistobebaseduponlegitimatebusinesscriteria(asdescribedinTreas.Reg.§1.409A-1(b)(5)(iii)(E)and§1.409A-1(h)(3)),thephrase“atleast20%”shallbesubstitutedineachplace“atleast50%”appearsasdescribedabovewithrespecttobothacontrolledgroupofcorporationsandtradesorbusinessundercommoncontrol.

“Target Amount ”meanstheamountofPerformanceUnitsthatwillbepaidifthePerformanceMeasureisfully(100%)attained,asdetermined

bytheCommittee.

“Target Vesting Percentage ”meansthepercentageofperformance-basedRestrictedUnitsorSharesofRestrictedStockthatwillvestifthePerformanceMeasureisfully(100%)attained,asdeterminedbytheCommittee.

“Termination of Directorship ”meansthedateofcessationofaDirector’smembershipontheBoardforanyreason,withorwithoutCause,as

determinedbytheCompany;provided,thatifandtotheextentthatanyprovisionofthisPlanoranAwardCertificatewouldcauseapaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)tobemadeupontheoccurrenceofaTerminationofDirectorshiporwouldchangethetimingand/orformofanypaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)uponaperson’sTerminationofDirectorship,thensuchpaymentshallnotbemade,orsuchchangeintimingand/orformofpaymentshallnotoccur,unlesssuchTerminationofDirectorshipwouldbedeemeda“separationfromservice”withinthemeaningofCodeSection409A(a)(2)(A)(i)andapplicableregulationsandrulingsthereunder,andshallnotincludeanyservicesprovidedinthecapacityofanemployeeorotherwise.

“Termination of Employment ”meansthedateofcessationofanEmployee’semploymentrelationshipwiththeCompanyoraSubsidiaryfor

anyreason,withorwithoutCause,asdeterminedbytheCompany;provided,thatifandtotheextentthatanyprovisionofthisPlanoranAwardCertificatewouldcauseapaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)tobemadeupontheoccurrenceofaTerminationofEmploymentorwouldchangethetimingand/orformofanypaymentofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)uponaperson’sTerminationofEmployment,thensuchpaymentshallnotbemadeorsuchchangeintimingand/orformofpaymentshallnotoccur,unlesssuchTerminationofEmploymentwouldbedeemeda“separationfromservice”withinthemeaningofCodeSection409A(a)(2)(A)(i)andapplicableregulationsandrulingsthereunder.EffectiveDecember2,2015,forpurposesofthePlan,aTerminationofEmploymentwillnotbedeemedtohaveoccurredinthecaseofanEmployeewhohasterminatedtheemploymentrelationshipwiththeCompanybutcontinuestoprovideservicestotheCompanyasamemberoftheBoardinanon-executiveboardposition.Insuchcase,theEmployee’sterminationdateforpurposesofthevesting,exerciseandotherapplicableprovisionsofthePlanshallmeantheTerminationofDirectorship.

“Unit ”means,forpurposesofPerformanceUnits,thepotentialrighttoanAwardequaltoaspecifiedamountdenominatedinsuchformasis

deemedappropriateinthediscretionoftheCommitteeand,forpurposesofRestrictedUnitsorDeferredStockUnits,thepotentialrighttoacquireoneShare.

ARTICLE III

ADMINISTRATION

3.1 Committee. ThePlanwillbeadministeredbytheCommittee.

3.2 Authority of the Committee. TheCommitteeor,totheextentrequiredbyapplicablelaw,theBoardwillhavetheauthority,initssoleandabsolutediscretionandsubjecttothetermsofthePlan,to:

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(a)InterpretandadministerthePlanandanyinstrumentoragreementrelatingtothePlan;

(b)PrescribetherulesandregulationsthatitdeemsnecessaryfortheproperoperationandadministrationofthePlan,andamendor

rescindanyexistingrulesorregulationsrelatingtothePlan;

(c)SelectEmployeestoreceiveAwardsunderthePlan;

(d)DeterminetheformofanAward,thenumberofSharessubjecttoeachAward,allthetermsandconditionsofanAward,including,withoutlimitation,theconditionsonexerciseorvesting,thedesignationofStockOptionsasIncentiveStockOptionsorNonqualifiedStockOptions,andthecircumstancesinwhichanAwardmaybesettledincashorSharesormaybecancelled,forfeitedorsuspended,andthetermsoftheAwardCertificate;

(e)DeterminewhetherAwardswillbegrantedsingly,incombinationorintandem;

(f)EstablishandinterpretPerformanceMeasures(or,asapplicable,otherperformancecriteria)inconnectionwithAnnualPerformance

BonusesandLongTermPerformanceAwards,evaluatethelevelofperformanceoveraPerformanceCycleandcertifythelevelofperformanceattainedwithrespecttoPerformanceMeasures(orotherperformancecriteria,asapplicable);

(g)ExceptasprovidedinSection6.1,waiveoramendanyterms,conditions,restrictionsorlimitationsonanAward,exceptthatthe

prohibitionontherepricingofStockOptionsandStockAppreciationRights,asdescribedinSection4.3(g),maynotbewaivedandfurtherprovidedthatanysuchwaiveroramendmentshalleithercomplywiththerequirementsofSection409AorpreserveanyexemptionfromtheapplicationofCodeSection409A;

(h)MakeanyadjustmentstothePlan(includingbutnotlimitedtoadjustmentofthenumberofSharesavailableunderthePlanorany

Award)andanyAwardgrantedunderthePlanasmaybeappropriatepursuanttoSection5.3;

(i)DetermineandsetforthintheapplicableAwardCertificatethecircumstancesunderwhichAwardsmaybedeferredandtheextenttowhichadeferralwillbecreditedwithDividendEquivalentsandinterestthereon;

(j)DeterminewhetheraNonqualifiedStockOptionorRestrictedSharemaybetransferabletofamilymembers,afamilytrustorafamily

partnership;

(k)EstablishanysubplansandmakeanymodificationstothePlanortoAwardsmadehereunder(includingtheestablishmentoftermsandconditionsnototherwiseinconsistentwiththetermsofthePlan)thattheCommitteemaydeterminetobenecessaryoradvisableforgrantsmadeincountriesoutsidetheUnitedStatestocomplywith,ortoachievefavorabletaxtreatmentunder,applicableforeignlawsorregulations;

(l)AppointsuchagentsasitshalldeemappropriateforproperadministrationofthePlan;and

(m)TakeanyandallotheractionsitdeemsnecessaryoradvisablefortheproperoperationoradministrationofthePlan.

3.3 Effect of Determinations. AlldeterminationsoftheCommitteewillbefinal,bindingandconclusiveonallpersonshavinganinterestinthePlan.

3.4 Delegation of Authority. TheBoardor,ifpermittedunderapplicablecorporatelaw,theCommittee,initsdiscretionandconsistentwithapplicable

lawandregulations,maydelegatetotheChiefExecutiveOfficeroftheCompanyoranyotherofficerorgroupofofficersasitdeemstobeadvisable,theauthoritytoselectEmployeestoreceiveanAwardandtodeterminethenumberofSharesunderanysuchAward,subjecttoanytermsandconditionsthattheBoardortheCommitteemayestablish.WhentheBoardortheCommitteedelegatesauthoritypursuanttotheforegoingsentence,itwilllimit,initsdiscretion,thenumberofSharesoraggregatevaluethatmaybesubjecttoAwardsthatthedelegatemaygrant.OnlytheCommitteewillhaveauthoritytograntandadministerAwardstoDirectors,KeyEmployeesandotherReportingPersonsortodelegatesoftheCommittee,andtoestablishandcertifyPerformanceMeasures.

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3.5 Employment of Advisors. TheCommitteemayemployattorneys,consultants,accountantsandotheradvisors,andtheCommittee,theCompanyand

theofficersanddirectorsoftheCompanymayrelyupontheadvice,opinionsorvaluationsoftheadvisorsemployed.

3.6 No Liability. NomemberoftheCommitteeoranypersonactingasadelegateoftheCommitteewithrespecttothePlanwillbeliableforanylossesresultingfromanyaction,interpretationorconstructionmadeingoodfaithwithrespecttothePlanoranyAwardgrantedunderthePlan.

ARTICLE IVAWARDS

4.1 Eligibility. AllParticipantsandEmployeesareeligibletobedesignatedtoreceiveAwardsgrantedunderthePlan,exceptasotherwiseprovidedin

thisArticleIV.

4.2 Form of Awards. AwardswillbeintheformdeterminedbytheCommittee,initsdiscretion,andwillbeevidencedbyanAwardCertificate.AwardsmaybegrantedsinglyorincombinationorintandemwithotherAwards.

4.3 Stock Options and Stock Appreciation Rights. TheCommitteemaygrantStockOptionsandStockAppreciationRightsunderthePlantothoseEmployeeswhomtheCommitteemayfromtimetotimeselect,intheamountsandpursuanttotheothertermsandconditionsthattheCommittee,initsdiscretion,maydetermineandsetforthintheAwardCertificate,subjecttotheprovisionsbelow:

(a) Form. StockOptionsgrantedunderthePlanwill,atthediscretionoftheCommitteeandassetforthintheAwardCertificate,beintheformofIncentiveStockOptions,NonqualifiedStockOptionsoracombinationofthetwo.IfanIncentiveStockOptionandaNonqualifiedStockOptionaregrantedtothesameParticipantunderthePlanatthesametime,theformofeachwillbeclearlyidentified,andtheywillbedeemedtohavebeengrantedinseparategrants.InnoeventwilltheexerciseofoneAwardaffecttherighttoexercisetheotherAward.StockAppreciationRightsmaybegrantedeitheraloneorinconnectionwithconcurrentlyorpreviouslygrantedNonqualifiedStockOptions.

(b) Exercise Price. TheCommitteewillsettheExercisePriceofFairMarketValueStockOptionsorStockAppreciationRightsgrantedunder

thePlanatapricethatisequaltotheFairMarketValueofaShareonthedateofgrant,subjecttoadjustmentasprovidedinSection5.3.TheCommitteewillsettheExercisePriceofPremium-PricedStockOptionsatapricethatishigherthantheFairMarketValueofaShareasofthedateofgrant,providedthatsuchpriceisnohigherthan150percentofsuchFairMarketValue.TheExercisePriceofIncentiveStockOptionswillbeequaltoorgreaterthan110percentoftheFairMarketValueofaShareasofthedateofgrantiftheParticipantreceivingtheStockOptionsownsstockpossessingmorethan10percentofthetotalcombinedvotingpowerofallclassesofstockoftheCompanyoranysubsidiaryorparentcorporationoftheCompany,asdefinedinSection424oftheCode.TheExercisePriceofaStockAppreciationRightgrantedintandemwithaStockOptionwillequaltheExercisePriceoftherelatedStockOption.TheCommitteewillsetforththeExercisePriceofaStockOptionorStockAppreciationRightintheAwardCertificate.StockOptionsgrantedunderthePlanwill,atthediscretionoftheCommitteeandassetforthintheAwardCertificate,beFairMarketValueStockOptions,Premium-PricedStockOptionsoracombinationofFairMarketValueStockOptionsandPremium-PricedStockOptions.

(c) Term and Timing of Exercise. EachStockOptionorStockAppreciationRightgrantedunderthePlanwillbeexercisableinwholeorin

part,subjecttothefollowingconditions,unlessdeterminedotherwisebytheCommittee:

(i)TheCommitteewilldetermineandsetforthintheAwardCertificatethedateonwhichanyAwardofStockOptionsorStockAppreciationRightstoaParticipantmayfirstbeexercised.UnlesstheapplicableAwardCertificateprovidesotherwise,aStockOptionorStockAppreciationRightwillbecomeexercisableinequalannualinstallmentsoveraperiodoffouryearsbeginningimmediatelyafterthedateonwhichtheStockOptionorStockAppreciationRightwasgranted.TherighttoexerciseaStockOptionorStockAppreciationRightwilllapsenolaterthan10yearsafterthedateofgrant,excepttotheextentnecessarytocomplywithapplicablelawsoutsideoftheUnitedStatesortopreservethetaxadvantagesoftheAwardoutsidetheUnitedStates.

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(ii)UnlesstheapplicableAwardCertificateprovidesotherwise,uponthedeathorDisabilityofaParticipantwhohasoutstanding

StockOptionsorStockAppreciationRights,theunvestedStockOptionsorStockAppreciationRightswillvest.UnlesstheapplicableAwardCertificateprovidesotherwise,theParticipant’sStockOptionsandStockAppreciationRightswilllapse,andwillnotthereafterbeexercisable,upontheearlierof(A)theiroriginalexpirationdateor(B)thedatethatisthreeyearsafterthedateonwhichtheParticipantdiesorincursaDisability.

(iii)UnlesstheapplicableAwardCertificateprovidesotherwise,upontheRetirementofaParticipant,aprorataportionofthe

Participant’sStockOptionsandStockAppreciationRightswillvestsothatthetotalnumberofvestedStockOptionsorStockAppreciationRightsheldbytheParticipantatTerminationofEmployment(includingthosethathavealreadyvestedasofsuchdate)willbeequalto(A)thetotalnumberofStockOptionsorStockAppreciationRightsoriginallygrantedtotheParticipantundereachAwardmultipliedby(ii)afraction,thenumeratorofwhichistheperiodoftime(inwholemonths)thathaveelapsedsincethedateofgrant,andthedenominatorofwhichisfouryears(orsuchotherapplicablevestingtermasissetforthintheAwardCertificate).UnlesstheAwardCertificateprovidesotherwise,suchParticipant’sStockOptionsandStockAppreciationRightswilllapse,andwillnotthereafterbeexercisable,upontheearlierof(A)theiroriginalexpirationdateor(B)thedatethatisthreeyearsafterthedateofTerminationofEmployment.

(iv)UpontheTerminationofEmploymentofaParticipantthatdoesnotmeettherequirementsofparagraphs(ii)or(iii)above,or

asotherwiseprovidedinSection5.4(ChangeinControl),anyunvestedStockOptionsorStockAppreciationRightswillbeforfeitedunlesstheAwardCertificateprovidesotherwise.AnyStockOptionsorStockAppreciationRightsthatarevestedasofsuchTerminationofEmploymentwilllapse,andwillnotthereafterbeexercisable,upontheearlierof(A)theiroriginalexpirationdateor(B)thedatethatisninety(90)daysafterthedateofsuchTerminationofEmploymentunlesstheAwardCertificateprovidesotherwise.

(v)StockOptionsandStockAppreciationRightsofadeceasedParticipantmaybeexercisedonlybytheestateoftheParticipant

orbythepersongivenauthoritytoexercisetheStockOptionsorStockAppreciationRightsbytheParticipant’swillorbyoperationoflaw.IfaStockOptionorStockAppreciationRightisexercisedbytheexecutororadministratorofadeceasedParticipant,orbythepersonorpersonstowhomtheStockOptionorStockAppreciationRighthasbeentransferredbytheParticipant’swillortheapplicablelawsofdescentanddistribution,theCompanywillbeundernoobligationtodeliverSharesorcashuntiltheCompanyissatisfiedthatthepersonexercisingtheStockOptionorStockAppreciationRightisthedulyappointedexecutororadministratorofthedeceasedParticipantorthepersontowhomtheStockOptionorStockAppreciationRighthasbeentransferredbytheParticipant’swillorbyapplicablelawsofdescentanddistribution.

(vi)AStockAppreciationRightgrantedintandemwithaStockOptionissubjecttothesametermsandconditionsastherelated

StockOptionandwillbeexercisableonlytotheextentthattherelatedStockOptionisexercisable.

(d) Payment of Exercise Price. TheExercisePriceofaStockOptionmustbepaidinfullwhentheStockOptionisexercised.Stockcertificateswillberegisteredanddeliveredonlyuponreceiptofpayment.PaymentoftheExercisePricemaybemadeincashorbycertifiedcheck,bankdraft,wiretransfer,orpostalorexpressmoneyorder,providedthattheformatisapprovedbytheCompanyoradesignatedthird-partyadministrator.TheCommittee,initsdiscretionmayalsoallowpaymenttobemadebyanyofthefollowingmethods,assetforthintheAwardCertificate:

(i)DeliveringaproperlyexecutedexercisenoticetotheCompanyoritsagent,togetherwithirrevocableinstructionstoabroker

todelivertotheCompany,withinthetypicalsettlementcycleforthesaleofequitysecuritiesontherelevanttradingmarket(orotherwiseinaccordancewiththeprovisionsofRegulationTissuedbytheFederalReserveBoard),theamountofsaleproceedswithrespecttotheportionoftheSharestobeacquiredhavingaFairMarketValueonthedateofexerciseequaltothesumoftheapplicableportionoftheExercisePricebeingsopaid;

(ii)Tendering(actuallyorbyattestation)totheCompanypreviouslyacquiredSharesthathavebeenheldbytheParticipantforat

leastsixmonths,subjecttoparagraph(iv),andthathaveaFairMarketValueonthedaypriortothedateofexerciseequaltotheapplicableportionoftheExercisePrice

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beingsopaid,providedthattheBoardhasspecificallyapprovedtherepurchaseofsuchShares(unlesssuchapprovalisnotrequiredbythetermsofthebye-lawsoftheCompany)andtheCommitteehasdeterminedthat,asofthedateofrepurchase,theCompanyis,andaftertherepurchasewillcontinuetobe,abletopayitsliabilitiesastheybecomedue;or

(iii)ProvidedsuchpaymentmethodhasbeenexpresslyauthorizedbytheBoardortheCommitteeinadvanceandsubjecttoany

requirementsofapplicablelawandregulations,instructingtheCompanytoreducethenumberofSharesthatwouldotherwisebeissuedbysuchnumberofSharesashaveintheaggregateaFairMarketValueonthedateofexerciseequaltotheapplicableportionoftheExercisePricebeingsopaid.

(iv)TheCommittee,inconsiderationofapplicableaccountingstandards,maywaiveanyholdingperiodonSharesrequiredto

tenderpursuanttoclause(ii).

(e) Incentive Stock Options. IncentiveStockOptionsgrantedunderthePlanwillbesubjecttothefollowingadditionalconditions,limitationsandrestrictions:

(i)Eligibility. IncentiveStockOptionsmaybegrantedonlytoEmployeesoftheCompanyoraSubsidiarythatisasubsidiaryor

parentcorporationoftheCompany,withinthemeaningofSection424oftheCode.

(ii)Timing of Grant. NoIncentiveStockOptionwillbegrantedunderthePlanafterthe10-yearanniversaryofthedateonwhichthePlanisadoptedbytheBoardor,ifearlier,thedateonwhichthePlanisapprovedbytheCompany’sstockholders.

(iii)Amount of Award. SubjecttoSection5.3ofthePlan,nomorethan10millionSharesmaybeavailableforgrantintheform

ofIncentiveStockOptions.TheaggregateFairMarketValue(asofthedateofgrant)oftheShareswithrespecttowhichtheIncentiveStockOptionsawardedtoanyEmployeefirstbecomeexercisableduringanycalendaryearmaynotexceed$100,000(U.S.).Forpurposesofthis$100,000(U.S.)limit,theEmployee’sIncentiveStockOptionsunderthisPlanandallotherplansmaintainedbytheCompanyanditsSubsidiarieswillbeaggregated.TotheextentanyIncentiveStockOptionwouldexceedthe$100,000(U.S.)limit,theIncentiveStockOptionwillafterwardsbetreatedasaNonqualifiedStockOptionforallpurposestotheextentrequiredbytheCodeandunderlyingregulationsandrulings.

(iv)Timing of Exercise. IftheCommitteeexercisesitsdiscretionintheAwardCertificatetopermitanIncentiveStockOptionto

beexercisedbyaParticipantmorethanthreemonthsaftertheParticipanthasceasedbeinganEmployee(ormorethan12monthsiftheParticipantispermanentlyandtotallydisabled,withinthemeaningofSection22(e)oftheCode),theIncentiveStockOptionwillafterwardsbetreatedasaNonqualifiedStockOptiontotheextentrequiredbytheCodeandunderlyingregulationsandrulings.Forpurposesofthisparagraph(iv),anEmployee’semploymentrelationshipwillbetreatedascontinuingintactwhiletheEmployeeisonmilitaryleave,sickleaveoranotherapprovedleaveofabsenceiftheperiodofleavedoesnotexceed90days,oralongerperiodtotheextentthattheEmployee’srighttoreemploymentwiththeCompanyoraSubsidiaryisguaranteedbystatuteorbycontract.Iftheperiodofleaveexceeds90daysandtheEmployee’srighttoreemploymentisnotguaranteedbystatuteorcontract,theemploymentrelationshipwillbedeemedtohaveceasedonthe91stdayoftheleave.

(v)Transfer Restrictions. InnoeventwilltheCommitteepermitanIncentiveStockOptiontobetransferredbyanEmployee

otherthanbywillorthelawsofdescentanddistribution,andanyIncentiveStockOptionawardedunderthisPlanwillbeexercisableonlybytheEmployeeduringtheEmployee’slifetime.

(f) Exercise of Stock Appreciation Rights. UponexerciseofaParticipant’sStockAppreciationRights,theCompanywillpaycashorSharesor

acombinationofcashandShares,inthediscretionoftheCommitteeandasdescribedintheAwardCertificate.CashpaymentswillbeequaltotheexcessoftheFairMarketValueofaShareonthedateofexerciseovertheExercisePrice,foreachShareforwhichaStockAppreciationRightwasexercised.IfSharesarepaidfortheStockAppreciationRight,theParticipantwillreceiveanumberofwholeSharesequaltothequotientofthecashpaymentamountdividedbytheFairMarketValueofaShareonthedateofexercise.

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(g) No Repricing. ExceptasotherwiseprovidedinSection5.3,innoeventwilltheCommittee(i)decreasetheExercisePriceofaStock

OptionorStockAppreciationRightafterthedateofgrantor(ii)canceloutstandingStockOptionsorStockAppreciationRightsinexchangeforacashpaymentorforagrantofreplacementStockOptionsorStockAppreciationRightswithalowerExercisePricethanthatofthereplacedStockOptionsorStockAppreciationRightsorotherAwards,withoutfirstobtainingtheapprovaloftheholdersofamajorityoftheShareswhoarepresentinpersonorbyproxyatameetingoftheCompany’sstockholdersandentitledtovote.

4.4 Annual Performance Bonuses. TheCommitteemaygrantAnnualPerformanceBonusesunderthePlanintheformofcashorSharestothe

ReportingPersonsthattheCommitteemayfromtimetotimeselect,intheamountsandpursuanttothetermsandconditionsthattheCommitteemaydetermineandsetforthintheAwardCertificate,subjecttotheprovisionsbelow:

(a) Performance Cycles. AnnualPerformanceBonuseswillbeawardedinconnectionwitha12-monthPerformanceCycle,whichwillbethefiscalyearoftheCompany.

(b) Eligible Participants. Within90daysafterthecommencementofaPerformanceCycle,theCommitteewilldeterminetheReporting

PersonswhowillbeeligibletoreceiveanAnnualPerformanceBonusunderthePlan.

(c) Performance Measures; Targets; Award Criteria.

(i)Within90daysafterthecommencementofaPerformanceCycle,theCommitteewillfixandestablishinwriting(A)thePerformance

MeasuresthatwillapplytothatPerformanceCycle;(B)theTargetAmountpayabletoeachParticipant;and(C)subjecttosubsection(d)below,thecriteriaforcomputingtheamountthatwillbepaidwithrespecttoeachlevelofattainedperformance.TheCommitteewillalsosetforththeminimumlevelofperformance,basedonobjectivefactors,thatmustbeattainedduringthePerformanceCyclebeforeanyAnnualPerformanceBonuswillbepaidandthepercentageoftheTargetAmountthatwillbecomepayableuponattainmentofvariouslevelsofperformancethatequalorexceedtheminimumrequiredlevel.

(ii)TheCommitteemay,initsdiscretion,selectPerformanceMeasuresthatmeasuretheperformanceoftheCompanyoroneormore

businessunits,divisionsorSubsidiariesoftheCompany.TheCommitteemayselectPerformanceMeasuresthatareabsoluteorrelativetotheperformanceofoneormorecomparablecompaniesoranindexofcomparablecompanies.

(iii)TheCommittee,initsdiscretion,may,onacase-by-casebasis,reduce,butnotincrease,theamountpayabletoanyKeyEmployeewith

respecttoanygivenPerformanceCycle,provided,however,thatnoreductionwillresultinanincreaseintheamountpayableunderanyAnnualPerformanceBonusofanotherKeyEmployee.

(d) Payment, Certification. NoAnnualPerformanceBonuswillvestwithrespecttoanyReportingPersonuntiltheCommitteecertifiesin

writingthelevelofperformanceattainedforthePerformanceCycleinrelationtotheapplicablePerformanceMeasures.InapplyingPerformanceMeasures,theCommitteemay,initsdiscretion,excludeunusualorinfrequentlyoccurringitems(includinganyeventlistedinSection5.3andthecumulativeeffectofchangesinthelaw,regulationsoraccountingrules),andmaydeterminenolaterthanninety(90)daysafterthecommencementofanyapplicablePerformanceCycletoexcludeotheritems,eachdeterminedinaccordancewithGAAP(totheextentapplicable)andasidentifiedinthefinancialstatements,notestothefinancialstatementsordiscussionandanalysisofmanagement.

(e) Form of Payment. AnnualPerformanceBonuseswillbepaidincashorShares.AllsuchPerformanceBonusesshallbepaidnolaterthan

the15thdayofthethirdmonthfollowingtheendofthecalendaryear(or,iflater,followingtheendoftheCompany’sfiscalyear)inwhichsuchPerformanceBonusesarenolongersubjecttoasubstantialriskofforfeiture(asdeterminedforpurposesofSection409AoftheCode),excepttotheextentthataParticipanthaselectedtodeferpaymentunderthetermsofadulyauthorizeddeferredcompensationarrangementinwhichcasethetermsofsucharrangementshallgovern.

(f) Section 162(m) of the Code. ItistheintentoftheCompanythatAnnualPerformanceBonusesbe“performance-basedcompensation”for

purposesofSection162(m)oftheCode,thatthisSection4.4beinterpretedinamannerthatsatisfiestheapplicablerequirementsofSection162(m)(C)oftheCodeandrelatedregulations,andthatthePlanbeoperatedsothattheCompanymaytakeafulltaxdeductionforAnnualPerformanceBonuses.IfanyprovisionofthisPlanoranyAnnualPerformanceBonuswouldotherwisefrustrateorconflictwiththisintent,theprovisionwillbeinterpretedanddeemedamendedsoastoavoidthisconflict.

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(g) Retirement, Death, Disability and Other Events. IfaParticipantwouldbeentitledtoanAnnualPerformanceBonusbutforthefactthatthe

Participant’semploymentwiththeCompanyterminatedpriortotheendofthePerformanceCycleasaresultoftheParticipant’sRetirement,deathorDisability,orsuchothereventasdesignatedbytheCommittee,theParticipantmay,intheCommittee’sdiscretion,receiveanAnnualPerformanceBonusAward,proratedfortheportionofthePerformanceCyclethattheParticipantcompletedandwhichispayableatthesametimeaftertheendofthePerformanceCyclethatpaymentstootherAnnualPerformanceBonusAwardrecipientsaremade.

4.5 Long Term Performance Awards. TheCommitteemaygrantLongTermPerformanceAwardsunderthePlanintheformofPerformanceUnits,

RestrictedUnitsorRestrictedStocktoanyEmployeewhotheCommitteemayfromtimetotimeselect,intheamountsandpursuanttothetermsandconditionsthattheCommitteemaydetermineandsetforthintheAwardCertificate,subjecttotheprovisionsbelow:

(a) Performance Cycles. LongTermPerformanceAwardswillbeawardedinconnectionwithaPerformanceCycle,asdeterminedbytheCommitteeinitsdiscretion,provided,however,thataPerformanceCyclemaybenoshorterthan12monthsandnolongerthan5years.

(b) Eligible Participants. Within90daysafterthecommencementofaPerformanceCycle,theCommitteewilldeterminetheEmployeeswho

willbeeligibletoreceiveaLongTermPerformanceAwardforthePerformanceCycle,providedthattheCommitteemaydeterminetheeligibilityofanyEmployeeotherthanaKeyEmployeeaftertheexpirationofthe90-dayperiod.

(c) Performance Measures; Targets; Award Criteria.

(i)Within90daysafterthecommencementofaPerformanceCycle,theCommitteewillfixandestablishinwriting(A)the

PerformanceMeasuresthatwillapplytothatPerformanceCycle;(B)withrespecttoPerformanceUnits,theTargetAmountpayabletoeachParticipant;(C)withrespecttoRestrictedUnitsandRestrictedStock,theTargetVestingPercentageforeachParticipant;and(D)subjecttosubsection(d)below,thecriteriaforcomputingtheamountthatwillbepaidorwillvestwithrespecttoeachlevelofattainedperformance.TheCommitteewillalsosetforththeminimumlevelofperformance,basedonobjectivefactors,thatmustbeattainedduringthePerformanceCyclebeforeanyLongTermPerformanceAwardwillbepaidorvest,andthepercentageofPerformanceUnitsthatwillbecomepayableandthepercentageofperformance-basedRestrictedUnitsorSharesofRestrictedStockthatwillvestuponattainmentofvariouslevelsofperformancethatequalorexceedtheminimumrequiredlevel.

(ii)TheCommitteemay,initsdiscretion,selectPerformanceMeasuresthatmeasuretheperformanceoftheCompanyoroneor

morebusinessunits,divisionsorSubsidiariesoftheCompany.TheCommitteemayselectPerformanceMeasuresthatareabsoluteorrelativetotheperformanceofoneormorecomparablecompaniesoranindexofcomparablecompanies.

(iii)TheCommittee,initsdiscretion,may,onacase-by-casebasis,reduce,butnotincrease,theamountofLongTerm

PerformanceAwardspayabletoanyKeyEmployeewithrespecttoanygivenPerformanceCycle,provided,however,thatnoreductionwillresultinanincreaseinthedollaramountornumberofSharespayableunderanyLongTermPerformanceAwardofanotherKeyEmployee.

(iv)WithrespecttoEmployeeswhoarenotKeyEmployees,theCommitteemayestablish,initsdiscretion,performancecriteria

otherthanthePerformanceMeasuresthatwillbeapplicableforthePerformanceCycle.

(d) Payment, Certification. NoLongTermPerformanceAwardwillvestwithrespecttoanyEmployeeuntiltheCommitteecertifiesinwritingthelevelofperformanceattainedforthePerformanceCycleinrelationtotheapplicablePerformanceMeasures.LongTermPerformanceAwardsawardedtoParticipantswhoarenotKeyEmployeeswillbebasedonthePerformanceMeasures,orotherapplicableperformancecriteria,andpaymentformulasthattheCommittee,initsdiscretion,mayestablishforthesepurposes.ThesePerformanceMeasures,orotherperformancecriteria,andformulasmaybethesameasordifferentthanthePerformanceMeasuresandformulasthatapplytoKeyEmployees.

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InapplyingPerformanceMeasures,theCommitteemay,initsdiscretion,excludeunusualorinfrequentlyoccurringitems(includinganyevent

listedinSection5.3)andthecumulativeeffectofchangesinthelaw,regulationsoraccountingrules,andmaydeterminenolaterthanninety(90)daysafterthecommencementofanyapplicablePerformanceCycletoexcludeotheritems,eachdeterminedinaccordancewithGAAP(totheextentapplicable)andasidentifiedinthefinancialstatements,notestothefinancialstatementsordiscussionandanalysisofmanagement.

(e) Form of Payment. LongTermPerformanceAwardsintheformofPerformanceUnitsmaybepaidincashorfullShares,inthediscretion

oftheCommittee,andassetforthintheAwardCertificate.Performance-basedRestrictedUnitsandRestrictedStockwillbepaidinfullShares.PaymentwithrespecttoanyfractionalSharewillbeincashinanamountbasedontheFairMarketValueoftheShareasofthedatethePerformanceUnitbecomespayable.AllsuchLongTermPerformanceAwardsshallbepaidnolaterthanthe15thdayofthethirdmonthfollowingtheendofthecalendaryear(or,iflater,followingtheendoftheCompany’sfiscalyear)inwhichsuchLongTermPerformanceAwardsarenolongersubjecttoasubstantialriskofforfeiture(asdeterminedforpurposesofCodeSection409A),excepttotheextentthataParticipanthaselectedtodeferpaymentunderthetermsofadulyauthorizeddeferredcompensationarrangement,inwhichcasethetermsofsucharrangementshallgovern.

(f) Section 162(m) of the Code. ItistheintentoftheCompanythatLongTermPerformanceAwardsmadetoKeyEmployeesbe

“performance-basedcompensation”forpurposesofSection162(m)oftheCode,thatthisSection4.5beinterpretedinamannerthatsatisfiestheapplicablerequirementsofSection162(m)(C)oftheCodeandrelatedregulationswithrespecttoLongTermPerformanceawardsmadetoKeyEmployees,andthatthePlanbeoperatedsothattheCompanymaytakeafulltaxdeductionforLongTermPerformanceAwards.IfanyprovisionofthisPlanoranyLongTermPerformanceAwardwouldotherwisefrustrateorconflictwiththisintent,theprovisionwillbeinterpretedanddeemedamendedsoastoavoidthisconflict.

(g) Retirement, Death, Disability and Other Events. IfaParticipantwouldbeentitledtoaLongTermPerformanceAwardbutforthefactthat

theParticipant’semploymentwiththeCompanyterminatedpriortotheendofthePerformanceCycleasaresultoftheParticipant’sRetirement,deathorDisability,orsuchothereventasdesignatedbytheCommittee,theParticipantmay,intheCommittee’sdiscretion,receiveaLongTermPerformanceAward,proratedfortheportionofthePerformanceCyclethattheParticipantcompletedandpayableatthesametimeaftertheendofthePerformanceCyclethatpaymentstootherLongTermPerformanceAwardrecipientsaremade.

4.6 Other Stock-Based Awards. TheCommitteemay,fromtimetotime,grantAwards(otherthanStockOptions,StockAppreciationRights,Annual

PerformanceBonusesorLongTermPerformanceAwards)toanyEmployeewhotheCommitteemayfromtimetotimeselect,whichAwardsconsistof,oraredenominatedin,payablein,valuedinwholeorinpartbyreferenceto,orotherwiserelatedto,Shares.TheseAwardsmayinclude,amongotherforms,RestrictedStock,RestrictedUnits,orDeferredStockUnits.TheCommitteewilldetermine,initsdiscretion,thetermsandconditionsthatwillapplytoAwardsgrantedpursuanttothisSection4.6,whichtermsandconditionswillbesetforthintheapplicableAwardCertificate.

(a) Vesting. UnlesstheAwardCertificateprovidesotherwise,restrictionsonStock-BasedAwardsgrantedunderthisSection4.6willlapseinequalannualinstallmentsoveraperiodoffouryearsbeginningimmediatelyafterthedateofgrant.IftherestrictionsonStock-BasedAwardshavenotlapsedorbeensatisfiedasoftheParticipant’sTerminationofEmployment,theShareswillbeforfeitedbytheParticipantiftheterminationisforanyreasonotherthantheRetirement,deathorDisabilityoftheParticipantoraChangeinControl.UnlesstheAwardCertificateprovidesotherwise,(i)allrestrictionsonStock-BasedAwardsgrantedpursuanttothisSection4.6willlapseuponthedeathorDisabilityoftheParticipant,(ii)intheeventofRetirement,theAwardwillvestproratawithrespecttotheportionofthefour-yearvestingterm(orsuchothervestingtermasissetforthintheAwardCertificate)thattheParticipanthascompletedasoftheParticipant’sTerminationofEmploymentandprovidedthattheParticipanthassatisfiedallotherapplicableconditionsestablishedbytheCommitteewithrespecttosuchproratavesting,and(iii)intheeventofaChangeinControl,Stock-BasedAwardswillbetreatedinaccordancewithSection5.4.Innoeventmaythevestingperiodofatime-basedfull-valueshareawardbelessthanthreeyears(oneitheraclifforgradedvestingbasis),exceptthattheCommitteemayawardupto10percentofthesharesauthorizedforissuanceunderSection5.1withavestingperiodoflessthanthreeyearsundersuchcircumstancesasitdeemsappropriate.

(b) Grant of Restricted Stock. TheCommitteemaygrantRestrictedStocktoanyEmployee,whichShareswillberegisteredinthenameoftheParticipantandheldfortheParticipantbytheCompany.TheParticipantwillhaveallrightsofastockholderwithrespecttotheShares,includingtherighttovoteandtoreceivedividendsorotherdistributions,exceptthattheSharesmaybesubjecttoavestingscheduleandwillbeforfeitediftheParticipantattemptstosell,transfer,assign,pledgeorotherwiseencumberordisposeoftheSharesbeforetherestrictionsaresatisfiedorlapse.

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(c) Grant of Restricted Units. TheCommitteemaygrantRestrictedUnitstoanyEmployee,whichUnitswillbepaidincashorwholeSharesora

combinationofcashandShares,asdeterminedinthediscretionoftheCommittee.TheCommitteewilldeterminethetermsandconditionsapplicabletothegrantofRestrictedUnits,whichtermsandconditionswillbesetforthintheAwardCertificate.ForeachRestrictedUnitthatvests,oneSharewillbepaidoranamountincashequaltotheFairMarketValueofaShare,assetforthintheAwardCertificate,willbedeliveredtotheParticipantontheapplicabledeliverydate.

(d) Grant of Deferred Stock Units. TheCommitteemaygrantDeferredStockUnitstoanyEmployee,whichUnitswillbepaidinwholeSharesupontheEmployee’sTerminationofEmploymentiftherestrictionsontheUnitshavelapsed.OneSharewillbepaidforeachDeferredStockUnitthatbecomespayable.

(e) Dividends and Dividend Equivalents. AtthediscretionoftheCommitteeandassetforthintheapplicableAwardCertificate,dividendsissuedonSharesmaybepaidimmediatelyorwithheldanddeferredintheParticipant’saccount.IntheeventofapaymentofdividendsonCommonStock,theCommitteemaycreditRestrictedUnitswithDividendEquivalentsinaccordancewithtermsandconditionsestablishedinthediscretionoftheCommittee.DividendEquivalentswillbesubjecttosuchvestingtermsasisdeterminedbytheCommitteeandmaybedistributedimmediatelyorwithheldanddeferredintheParticipant’saccountasdeterminedbytheCommitteeandsetforthintheapplicableAwardCertificate.DeferredStockUnitsmay,inthediscretionoftheCommitteeandassetforthintheAwardCertificate,becreditedwithDividendEquivalentsoradditionalDeferredStockUnits.ThenumberofanyDeferredStockUnitscreditedtoaParticipant’saccountuponthepaymentofadividendwillbeequaltothequotientproducedbydividingthecashvalueofthedividendbytheFairMarketValueofoneShareasofthedatethedividendispaid.TheCommitteewilldetermineanytermsandconditionsondeferralofadividendorDividendEquivalent,includingtherateofinteresttobecreditedondeferralandwhetherinterestwillbecompounded.

4.7 Director Awards.

(a)TheCommitteemaygrantDeferredStockUnitstoeachDirectorinsuchanamountastheBoard,initsdiscretion,mayapproveinadvance.EachsuchDeferredStockUnitwillvestasdeterminedbytheCommitteeandsetforthintheAwardCertificateandwillbepaidinShareswithin30daysfollowingtherecipient’sTerminationofDirectorship,subjecttodeferralunderanyapplicabledeferredcompensationplanapprovedbytheCommittee,inwhichcasethetermsofsucharrangementshallgovern.DividendEquivalentsoradditionalDeferredStockUnitswillbecreditedtoeachDirector’saccountwhendividendsarepaidonCommonStocktotheshareholders,andwillbepaidtotheDirectoratthesametimethattheDeferredStockUnitsarepaidtotheDirector.

(b)TheCommitteemaygrantDirectorSharestoeachDirectorinsuchamountsastheBoard,initsdiscretion,mayapproveinadvance.

(c)TheCommitteemay,initsdiscretion,grantStockOptions,StockAppreciationRightsandotherStock-BasedAwardstoDirectors.

4.8 Substitute Awards. TheCommitteemaymakeAwardsunderthePlantoAcquiredGranteesthroughtheassumptionof,orinsubstitutionfor,outstandingStock-BasedAwardspreviouslygrantedtosuchAcquiredGrantees.SuchassumedorsubstitutedAwardswillbesubjecttothetermsandconditionsoftheoriginalawardsmadebytheAcquiredCompany,withsuchadjustmentsthereinastheCommitteeconsidersappropriatetogiveeffecttotherelevantprovisionsofanyagreementfortheacquisitionoftheAcquiredCompany,providedthatanysuchadjustmentwithrespecttoNonqualifiedStockOptionsandStockAppreciationRightsshallsatisfytherequirementsofTreas.Reg.§1.409A-1(b)(5)(v)(D)andotherwiseensurethatsuchawardscontinuetobeexemptfromCodeSection409AandprovidedthatanyadjustmenttoAwardsthataresubjecttoCodeSection409AisincompliancewithCodeSection409Aandtheregulationsandrulingsthereunder.AnygrantofIncentiveStockOptionspursuanttothisSection4.8willbemadeinaccordancewithSection424oftheCodeandanyfinalregulationspublishedthereunder.

4.9 Limit on Individual Grants. SubjecttoSections5.1and5.3,noEmployeemaybegrantedmorethan6millionSharesoveranycalendaryearpursuanttoAwardsofStockOptions,StockAppreciationRightsandperformance-basedRestrictedStockandRestrictedUnits,exceptthatanincentiveAwardofnomorethan10millionSharesmaybemadepursuanttoStockOptions,StockAppreciationRightsandperformance-basedRestrictedStockandRestrictedUnitstoanypersonwhohasbeenhiredwithinthecalendaryearasaKeyEmployee.ThemaximumamountthatmaybepaidincashorSharespursuanttoAnnualPerformanceBonusesorLongTermPerformanceAwardspaidinPerformanceUnitstoanyoneEmployeeis$10million(U.S.)foranyPerformanceCycleof12months.ForanylongerPerformanceCycle,thismaximumwillbeadjustedproportionally.

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4.10 Termination for Cause; Clawback. (a)Notwithstandinganythingtothecontraryherein,ifaParticipantincursaTerminationofDirectorshipor

TerminationofEmploymentforCause,thenallStockOptions,StockAppreciationRights,AnnualPerformanceBonuses,LongTermPerformanceAwards,RestrictedUnits,RestrictedStockandotherStock-BasedAwardswillimmediatelybecancelled.TheexerciseofanyStockOptionorStockAppreciationRightorthepaymentofanyAwardmaybedelayed,intheCommittee’sdiscretion,intheeventthatapotentialterminationforCauseispending,subjecttoensuringanexemptionfromorcompliancewithCodeSection409Aandtheunderlyingregulationsandrulings.IfaParticipantincursaTerminationofEmploymentforCause,ortheCompanybecomesaware(aftertheParticipant’sTerminationofEmployment)ofconductonthepartoftheParticipantthatwouldbegroundsforaTerminationofEmploymentforCause,thentheParticipantwillberequiredtodelivertotheCompany(i)Shares(or,inthediscretionoftheCommittee,cash)inanamountthatisequalinvaluetotheamountofanyprofittheParticipantrealizedupontheexerciseofanOptionduringtheperiodbeginningsix(6)monthspriortotheParticipant’sTerminationofEmploymentandendingonthetwo(2)yearanniversaryofsuchTerminationofEmployment;and(ii)thenumberofShares(or,inthediscretionoftheCommittee,thecashvalueofsaidshares)theParticipantreceivedforRestrictedShares,RestrictedUnitsorotherStock-BasedAwardsthatvestedduringtheperioddescribedin(i)above.

(b)Inaddition,theCommitteeshallhavetheauthoritytoestablishanyothertermsandconditionsapplicabletoAwards(includingthemandatoryreturnofalloranyportionofthevaluepreviouslyrealizedbyaParticipantuponthevestingorexerciseofanAward)asaredeemednecessaryand/orappropriatetorecoveramountsmistakenlypaidtoParticipants(asaresultofincorrectfinancialdataorotherwise),includingprovisionsintendedtocomplywithapplicablerulesadoptedortobeadoptedbytheSecuritiesandExchangeCommission,NewYorkStockExchangeoranyothergovernmentalagencyorstockexchangehavingtheauthoritytoestablishrulesaffectingthepaymentofcompensationunderthisPlan.

ARTICLE VSHARES SUBJECT TO THE PLAN; ADJUSTMENTS

5.1 Shares Available. TheSharesissuableunderthePlanwillbeauthorizedbutunissuedShares,and,totheextentpermissibleunderapplicablelaw,

SharesacquiredbytheCompany,anySubsidiaryoranyotherpersonorentitydesignatedbytheCompany.TheoriginalnumberofsharesissuableunderthePlanonandaftertheoriginaleffectivedateofthePlan(June29,2007)wasfivepercent(5%)oftheSharesoutstandingasofthatdate.OnMarch10,2010,theshareholdersoftheCompanyauthorizedanadditionalfifteenmillion(15,000,000)sharesissuableunderthePlan.OnMarch7,2012,theshareholdersoftheCompanyauthorizedanadditionaltwentymillion(20,000,000)sharesissuableunderthePlan.ThetotalnumberofShareswithrespecttowhichAwardsmaybeissuedunderthePlanonandaftertheEffectiveDatemayequal,butnotexceed,thetotalnumberofsharesremainingfromtheoriginalnumberofsharesissuableunderthePlan,plustheadditionalfifteenmillion(15,000,000)sharesauthorizedonMarch10,2010,plustheadditionaltwentymillion(20,000,000)sharesauthorizedonMarch7,2012,subjecttoadjustmentinaccordancewithSection5.3;providedthatwhenSharesareissuedpursuanttoagrantofRestrictedStock,RestrictedUnits,DeferredStockUnits,PerformanceUnitsoraspaymentofanAnnualPerformanceBonusorotherStock-BasedAward,thetotalnumberofSharesremainingavailableforgrantwillbedecreasedbyamarginofatleast1.8perShareissued.Inaddition,inthecaseofthesettlementofanystock-settledStockAppreciationRight,thetotalnumberofSharesavailableforgrantwillbedecreasedbythetotalnumberofSharesequalinvaluetothetotalvalueoftheStockAppreciationRightonthedayofsettlement.Nomorethan10millionSharesofthetotalSharesissuableunderthePlanmaybeavailableforgrantintheformofIncentiveStockOptions.

5.2 Counting Rules. ThefollowingSharesrelatedtoAwardsunderthisPlanmayagainbeavailableforissuanceunderthePlan,inadditiontotheSharesdescribedinSection5.1:

(a)SharesrelatedtoAwardspaidincash;

(b)SharesrelatedtoAwardsthatexpire,areforfeitedorcancelledorterminateforanyotherreasonwithoutissuanceofShares,andprovidedthateachsuchforfeited,cancelledorterminatedSharethatwasoriginallyissuedpursuanttoagrantofRestrictedStock,RestrictedUnits,DeferredStockUnits,PerformanceUnitsoraspaymentofanAnnualPerformanceBonusorotherStock-BasedAwardshallbecountedas1.8Share;

(c)AnySharesissuedinconnectionwithAwardsthatareassumed,convertedorsubstitutedasaresultoftheacquisitionofanAcquired

CompanybytheCompanyoracombinationoftheCompanywithanothercompany;and

(d)AnySharesofRestrictedStockthatarereturnedtotheCompanyuponaParticipant’sTerminationofEmployment.

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5.3 Adjustments. IntheeventofachangeintheoutstandingSharesbyreasonofastocksplit,reversestocksplit,dividendorotherdistribution(whether

intheformofcash,Shares,othersecuritiesorotherproperty),extraordinarycashdividend,recapitalization,merger,consolidation,split-up,spin-off,reorganization,combination,repurchaseorexchangeofSharesorothersecuritiesorsimilarcorporatetransactionorevent,theCommitteeshallmakeanappropriateadjustmenttopreventdilutionorenlargementofthebenefitsorpotentialbenefitsintendedtobemadeavailableunderthePlan.AnysuchadjustmentwithrespecttoNonqualifiedStockOptionsandStockAppreciationRightsshallsatisfytherequirementsofTreas.Reg.§1.409A-1(b)(5)(v)(D)andotherwiseensurethatsuchawardscontinuetobeexemptfromCodeSection409A,andanyadjustmenttoAwardsthataresubjecttoCodeSection409AshallcomplywithCodeSection409Aandtheregulationsandrulingsthereunder.AnyadjustmentmadebytheCommitteeunderthisSection5.3willbeconclusiveandbindingforallpurposesunderthePlan.

5.4 Change in Control.

(a)UnlessotherwiseprovidedunderthetermsofanapplicableAwardCertificate,(i)alloutstandingStockOptionsandStockAppreciationRightswillbecomeexercisableasoftheeffectivedateofaParticipant’sChangeinControlTerminationiftheAwardsarenototherwisevested,andallconditionswillbewaivedwithrespecttooutstandingRestrictedStock,RestrictedUnitsandotherStock-BasedAwards(otherthanLongTermPerformanceAwards)andDeferredStockUnits,and(ii)eachParticipantwhohasbeengrantedanAnnualPerformanceBonusorLongTermPerformanceAwardthatisoutstandingasofthedateofsuchParticipant’sChangeinControlTerminationwillbedeemedtohaveachievedalevelofperformance,asoftheChangeinControlTermination,thatwouldcauseall(100%)oftheParticipant’sTargetAmountstobecomepayableandallrestrictionsontheParticipant’sRestrictedUnitsandSharesofRestrictedStocktolapse.UnlesstheCommitteedeterminesotherwiseinitsdiscretion(eitherwhentheawardisgrantedoranytimethereafter),intheeventthatAwardsoutstandingasofthedateofaChangeinControlthatarepayableinsharesofCompanyCommonStockwillnotbesubstitutedwithcomparableawardspayableorredeemableinsharesofpublicly-tradedstockaftertheChangeinControl,eachsuchoutstandingAward(i)willbecomefullyvested(attarget,whereapplicable)immediatelypriortotheChangeinControland(ii)eachsuchAwardthatisaStockOptionwillbesettledincash,withouttheParticipant’sconsent,foranamountequaltotheamountthatcouldhavebeenattainedupontheexerciseofsuchAwardimmediatelypriortotheChangeinControlhadsuchAwardbeenexercisableorpayableatsuchtime.

(b)InadditiontotheotheractionsdescribedinSection5.4(a),intheeventofaChangeinControltheCommitteemaytakeanyoneormoreofthefollowingactionswithrespecttoanyoralloutstandingAwards,withouttheconsentoftheParticipant:(i)theCommitteemaydeterminethatoutstandingStockOptionsandStockAppreciationRightsshallbefullyexercisable,andrestrictionsonRestrictedStock,RestrictedUnits,DeferredStockUnitsandotherStock-BasedAwardsshalllapse,asofthedateoftheChangeinControlorsuchothertime(priortoaParticipant’sChangeinControlTermination)astheCommitteedetermines,(ii)theCommitteemayrequirethataParticipantsurrendertheiroutstandingStockOptionsandStockAppreciationRightsinexchangeforoneormorepaymentsbytheCompany,incashorCommonStockasdeterminedbytheCommittee,inanamountequaltotheamountbywhichthethenFairMarketValueofthesharesofCommonStocksubjecttotheParticipant’sunexercisedStockOptionsandStockAppreciationRightsexceedstheexerciseprice,ifany,andonsuchtermsastheCommitteedetermines,(iii)aftergivingParticipantsanopportunitytoexercisetheiroutstandingStockOptionsandStockAppreciationRights,theCommitteemayterminateanyorallunexercisedStockOptionsandStockAppreciationRightsatsuchtimeastheCommitteedeemsappropriate,(iv)theCommitteemaydeterminethatAnnualPerformanceBonusesand/orLongTermPerformanceAwardswillbepaidoutattheirtargetlevel,incashorCommonStockasdeterminedbytheCommittee,or(v)theCommitteemaydeterminethatAwardsthatremainoutstandingaftertheChangeinControlshallbeconvertedtosimilargrantsof,orassumedby,thesurvivingcorporation(oraparentorsubsidiaryofthesurvivingcorporationorsuccessor).Suchacceleration,surrender,termination,settlementorconversionshalltakeplaceasofthedateoftheChangeinControlorsuchotherdateastheCommitteemayspecify.TheCommitteemayspecifyhowanAwardwillbetreatedintheeventofaChangeinControleitherwhentheAwardisgrantedoratanytimethereafter,exceptasotherwiseprovidedherein.

5.5 Fractional Shares. NofractionalShareswillbeissuedunderthePlan.ExceptasotherwiseprovidedinSection4.5(e),ifaParticipantacquirestherighttoreceiveafractionalShareunderthePlan,theParticipantwillreceive,inlieuofthefractionalShare,afullShareasofthedateofsettlement,unlessotherwiseprovidedbytheCommittee.

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ARTICLE VI

AMENDMENT AND TERMINATION

6.1 Amendment. ThePlanmaybeamendedatanytimeandfromtimetotimebytheBoardwithouttheapprovalofstockholdersoftheCompany,exceptthatnomaterialrevisiontothetermsofthePlanwillbeeffectiveuntiltheamendmentisapprovedbythestockholdersoftheCompany.Arevisionis“material”forthispurposeif,amongotherchanges,itmateriallyincreasesthenumberofSharesthatmaybeissuedunderthePlan(otherthananincreasepursuanttoSection5.3ofthePlan),expandsthetypesofAwardsavailableunderthePlan,materiallyexpandstheclassofpersonseligibletoreceiveAwardsunderthePlan,materiallyextendsthetermofthePlan,materiallydecreasestheExercisePriceatwhichStockOptionsorStockAppreciationRightsmaybegranted,reducestheExercisePriceofoutstandingStockOptionsorStockAppreciationRights,orresultsinthereplacementofoutstandingStockOptionsandStockAppreciationRightswithnewAwardsthathaveanExercisePricethatislowerthantheExercisePriceofthereplacedStockOptionsandStockAppreciationRights.NoamendmentofthePlanoranyoutstandingAwardmadewithouttheParticipant’swrittenconsentmayadverselyaffectanyrightofaParticipantwithrespecttoanoutstandingAward.

6.2 Termination. ThePlanwillterminateupontheearlierofthefollowingdatesoreventstooccur:

(a)theadoptionofaresolutionoftheBoardterminatingthePlan;or

(b)thedaybeforethe10thanniversaryoftheadoptionofthePlanbytheCompany’sshareholderasdescribedinSection1.2.NoAwardswillbegrantedunderthisPlanafterithasterminated.TheterminationofthePlan,however,willnotalterorimpairanyoftherightsorobligationsofanypersonunderanyAwardpreviouslygrantedunderthePlanwithoutsuchperson’sconsent.AftertheterminationofthePlan,anypreviouslygrantedAwardswillremainineffectandwillcontinuetobegovernedbythetermsofthePlanandtheapplicableAwardCertificate.

ARTICLE VIIGENERAL PROVISIONS

7.1 Nontransferability of Awards. NoAwardunderthePlanwillbesubjectinanymannertoalienation,anticipation,sale,assignment,pledge,

encumbranceortransfer,andnootherpersonswillotherwiseacquireanyrightstherein,exceptasprovidedbelow.

(a)AnyAwardmaybetransferredby(i)willorbythelawsofdescentordistributionor(ii)underrulestobeestablishedbytheCompany,toaParticipant’sspouseorformerspouseinaccordancewithadomesticrelationsorderordomesticsettlementagreementassociatedwiththedissolutionoftheParticipant’smarriage.

(b)TheCommitteemayprovideintheapplicableAwardCertificatethatalloranypartofaNonqualifiedOptionorSharesofRestrictedStockmay,subjecttothepriorwrittenconsentoftheCommittee,betransferredtoafamilymember.Forpurposesofthissubsection(b),“familymember”includesanychild,stepchild,grandchild,parent,stepparent,grandparent,spouse,formerspouse,sibling,niece,nephew,mother-in-law,father-in-law,son-in-law,daughter-in-law,brother-in-law,orsister-in-lawoftheParticipant,includingadoptiverelationships,anypersonsharingtheParticipant’shousehold(otherthanatenantoremployee),atrustinwhichthesepersonshavemorethan50percentofthebeneficialinterest,afoundationinwhichthesepersons(ortheParticipant)controlthemanagementofassets,andanyotherentityinwhichthesepersons(ortheParticipant)ownmorethan50percentofthevotinginterests.AnytransferredAwardwillbesubjecttoallofthesametermsandconditionsasprovidedinthePlanandtheapplicableAwardCertificate.TheParticipantortheParticipant’sestatewillremainliableforanywithholdingtaxthatmaybeimposedbyanyfederal,stateorlocaltaxauthority.TheCommitteemay,initsdiscretion,disallowallorapartofanytransferofanAwardpursuanttothissubsection(b)unlessanduntiltheParticipantmakesarrangementssatisfactorytotheCommitteeforthepaymentofanywithholdingtax.TheParticipantmustimmediatelynotifytheCommittee,intheformandmannerrequiredbytheCommittee,ofanyproposedtransferofanAwardpursuanttothissubsection(b).NotransferwillbeeffectiveuntiltheCommitteeconsentstothetransferinwriting.

(c)ExceptasotherwiseprovidedintheapplicableAwardCertificate,anyNonqualifiedStockOptiontransferredbyaParticipantpursuanttothissubsection(c)maybeexercisedbythetransfereeonlytotheextentthattheAwardwouldhavebeenexercisablebytheParticipanthadnotransferoccurred.ThetransferofSharesuponexerciseoftheAwardwillbeconditionedonthepaymentofanywithholdingtax.

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(d)RestrictedStockmaybefreelytransferredaftertherestrictionslapseoraresatisfiedandtheSharesaredelivered,provided,however,that

RestrictedStockawardedtoanaffiliateoftheCompanymaybetransferredonlypursuanttoRule144undertheSecuritiesAct,orpursuanttoaneffectiveregistrationforresaleundertheSecuritiesAct.Forpurposesofthissubsection(d),“affiliate”willhavethemeaningassignedtothattermunderRule144.

(e)InnoeventmayaParticipanttransferanIncentiveStockOptionotherthanbywillorthelawsofdescentanddistribution.

7.2 Withholding of Taxes. TheCommittee,initsdiscretion,maysatisfyaParticipant’staxwithholdingobligationsbyanyofthefollowingmethodsoranymethodasitdeterminestobeinaccordancewiththelawsofthejurisdictioninwhichtheParticipantresides,hasdomicileorperformsservices.

(a) Stock Options and Stock Appreciation Rights. AsaconditiontothedeliveryofSharespursuanttotheexerciseofaStockOptionorStockAppreciationRight,theCommitteemayrequirethattheParticipant,atthetimeofexercise,paytotheCompanybycash,certifiedcheck,bankdraft,wiretransferorpostalorexpressmoneyorderanamountsufficienttosatisfyanyapplicabletaxwithholdingobligations.TheCommitteemayalso,initsdiscretion,acceptpaymentoftaxwithholdingobligationsthroughanyoftheExercisePricepaymentmethodsdescribedinSection4.3(d).

(b) Other Awards Payable in Shares. TheParticipantshallsatisfytheParticipant’staxwithholdingobligationsarisinginconnectionwiththereleaseofrestrictionsonRestrictedUnits,RestrictedStockandotherStock-BasedAwardsbypaymenttotheCompanyincashorbycertifiedcheck,bankdraft,wiretransferorpostalorexpressmoneyorder,providedthattheformatisapprovedbytheCompanyoradesignatedthird-partyadministrator.However,subjecttoanyrequirementsofapplicablelaw,theCompanymayalsosatisfytheParticipant’staxwithholdingobligationsbyothermethods,includingsellingorwithholdingSharesthatwouldotherwisebeavailablefordelivery,providedthattheBoardortheCommitteehasspecificallyapprovedsuchpaymentmethodinadvance.

(c) Cash Awards. TheCompanymaysatisfyaParticipant’staxwithholdingobligationarisinginconnectionwiththepaymentofanyAwardincashbywithholdingcashfromsuchpayment.

7.3 Special Forfeiture Provision. TheCommitteemay,initsdiscretion,provideinanAwardCertificatethattheParticipantmaynot,withintwoyearsoftheParticipant’sTerminationofEmploymentwiththeCompany,enterintoanyemploymentorconsultationarrangement(includingserviceasanagent,partner,stockholder,consultant,officerordirector)withanyentityorpersonengagedinanybusinessinwhichtheCompanyoranySubsidiaryisengagedwithoutpriorwrittenapprovaloftheCommitteeif,inthesolejudgmentoftheCommittee,thebusinessiscompetitivewiththeCompanyoranySubsidiaryorbusinessunitorsuchemploymentorconsultationarrangementwouldpresentariskthattheParticipantwouldlikelydiscloseCompanyproprietaryinformation(asdeterminedbytheCommittee).IftheCommitteemakesadeterminationthatthisprohibitionhasbeenviolated,theParticipant(i)willforfeitallrightsunderanyoutstandingStockOptionorStockAppreciationRightthatwasgrantedsubjecttotheAwardCertificateandwillreturntotheCompanytheamountofanyprofitrealizeduponanexerciseofallAwardsduringtheperiod,astheCommitteedeterminesandsetsforthintheAwardCertificate,beginningnoearlierthansixmonthspriortotheParticipant’sTerminationofEmployment,and(ii)willforfeitandreturntotheCompanyanyAnnualPerformanceBonuses,PerformanceUnits,SharesofRestrictedStock,RestrictedUnits(includinganycreditedDividendEquivalents),DeferredStockUnits,andotherStock-BasedAwardsthatareoutstandingonthedateoftheParticipant’sTerminationofEmployment,subjecttotheAwardCertificate,andhavenotvestedorthathadvestedandremainsubjecttothisSection7.3duringaperiod,astheCommitteedeterminesandsetsforthintheAwardCertificate,beginningnoearlierthansixmonthspriortotheParticipant’sTerminationofEmployment.

7.4 No Implied Rights. TheestablishmentandoperationofthePlan,includingtheeligibilityofaParticipanttoparticipateinthePlan,willnotbeconstruedasconferringanylegalorotherrightuponanyDirectorforanycontinuationofdirectorshiporanyEmployeeforthecontinuationofemploymentthroughtheendofanyPerformanceCycleorotherperiod.TheCompanyexpresslyreservestheright,whichmaybeexercisedatanytimeandintheCompany’ssolediscretion,todischargeanyindividualortreathimorherwithoutregardtotheeffectsuchdischargemighthaveuponhimorherasaParticipantinthePlan.

7.5 No Obligation to Exercise Awards. ThegrantofaStockOptionorStockAppreciationRightwillimposenoobligationupontheParticipanttoexercisetheAward.

7.6 No Rights as Stockholders. AParticipantwhoisgrantedanAwardunderthePlanwillhavenorightsasastockholderoftheCompanywithrespecttotheAwardunlessanduntilcertificatesfortheSharesunderlyingtheAwardareregisteredintheParticipant’snameand(otherthaninthecaseofRestrictedStock)deliveredtotheParticipant.TherightofanyParticipanttoreceiveanAwardbyvirtueofparticipationinthePlanwillbenogreaterthantherightofanyunsecuredgeneralcreditoroftheCompany.

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7.7 Indemnification of Committee. TheCompanywillindemnify,tothefullestextentpermittedbylaw,eachpersonmadeorthreatenedtobemadea

partytoanycivilorcriminalactionorproceedingbyreasonofthefactthattheperson,ortheexecutororadministratoroftheperson’sestate,isorwasamemberoftheCommitteeoradelegateoftheCommittee.

7.8 No Required Segregation of Assets. NeithertheCompanynoranySubsidiarywillberequiredtosegregateanyassetsthatmayatanytimeberepresentedbyAwardsgrantedpursuanttothePlan.

7.9 Nature of Payments. AllAwardsmadepursuanttothePlanareinconsiderationofservicesfortheCompanyoraSubsidiary.AnygainrealizedpursuanttoAwardsunderthePlanconstitutesaspecialincentivepaymenttotheParticipantandwillnotbetakenintoaccountascompensationforpurposesofanyotheremployeebenefitplanoftheCompanyoraSubsidiary,exceptastheCommitteeotherwiseprovides.TheadoptionofthePlanwillhavenoeffectonAwardsmadeortobemadeunderanyotherbenefitplancoveringanemployeeoftheCompanyoraSubsidiaryoranypredecessororsuccessoroftheCompanyoraSubsidiary.

7.10 Securities Law Compliance. AwardsunderthePlanareintendedtosatisfytherequirementsofRule16b-3undertheExchangeAct.IfanyprovisionofthisPlanoranygrantofanAwardwouldotherwisefrustrateorconflictwiththisintent,thatprovisionwillbeinterpretedanddeemedamendedsoastoavoidconflict.NoParticipantwillbeentitledtoagrant,exercise,transferorpaymentofanyAwardifthegrant,exercise,transferorpaymentwouldviolatetheprovisionsoftheSarbanes-OxleyActof2002oranyotherapplicablelaw.

7.11 Section 409A Compliance. TotheextenttheCommitteedeterminesthatanyAwardgrantedunderthePlanissubjecttoSection409AoftheCode,theAwardCertificateevidencingsuchAwardwillincorporatethetermsandconditionsrequiredbySection409AoftheCode.Totheextentapplicable,thePlanandtheAwardCertificatewillbeinterpretedinaccordancewithSection409AoftheCodeandDepartmentofTreasuryregulationsandotherinterpretiveguidanceissuedthereunder,includingwithoutlimitationanysuchregulationsorotherguidancethatmaybeissuedaftertheEffectiveDate.NotwithstandinganyprovisionofthePlan,intheeventthattheCommitteedeterminesthatanyAwardmaybesubjecttoSection409AoftheCode,theCommitteemayadoptsuchamendmentstothePlanand/ortheapplicableAwardCertificateoradoptpoliciesandproceduresortakeanyotheractionoractions,includinganactionoramendmentwithretroactiveeffect,thattheCommitteedeterminesisnecessaryorappropriateto(i)exempttheAwardfromtheapplicationofSection409AoftheCodeor(ii)complywiththerequirementsofSection409AoftheCode.AnyAwardthatprovidesforapaymenttoanyParticipantwhoisa“specifiedemployee”ofdeferredcompensationthatissubjecttoCodeSection409A(a)(2)andthatbecomespayableupon,orthatisacceleratedupon,suchParticipant’sTerminationofEmployment,shallalsoprovidethatnosuchpaymentshallbemadeonorbeforethedatewhichissixmonthsfollowingsuchParticipant’sTerminationofEmployment(or,ifearlier,suchParticipant’sdeath).AspecifiedemployeeforthispurposeshallbedeterminedbytheCommitteeoritsdelegateinaccordancewiththeprovisionsofCodeSection409Aandtheregulationsandrulingsthereunder.

7.12 Governing Law, Severability. ThePlanandalldeterminationsmadeandactionstakenunderthePlanwillbegovernedbythelawofSwitzerlandandconstruedaccordingly.IfanyprovisionofthePlanisheldunlawfulorotherwiseinvalidorunenforceableinwholeorinpart,theunlawfulness,invalidityorunenforceabilitywillnotaffectanyotherpartsofthePlan,whichpartswillremaininfullforceandeffect.

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Exhibit 10.11

TE Connectivity Ltd. 2007 Stock and Incentive Plan

TERMS AND CONDITIONS

OFPERFORMANCE STOCK UNIT AWARD

PERFORMANCESTOCKUNITAWARDmadeasof.

1.Grant of Award. TEConnectivityLtd.(the“Company”)hasgrantedyouTEConnectivityPerformanceStockUnits,subjecttothe

provisionsofthisAwardAgreement.TheCompanywillholdthePerformanceStockUnitsinabookkeepingaccountonyourbehalfuntiltheybecomepayableorareforfeitedorcancelled.

2.Payment Amount. EachPerformanceStockUnitrepresentsone(1)ShareofCommonStock.

3.Form of Payment. VestedPerformanceStockUnitswillberedeemedsolelyforShares,subjecttoSection15.

4.Performance Stock Units/Dividends. PerformanceStockUnitsareapromisetodeliverCommonStockuponaspecifieddeliverydate,providedthatcertainvestingandperformancerequirementsaremet,asdescribedinthisAgreementandAppendixA.ForeachPerformanceStockUnitthatisgrantedtoyouunderthisAward(basedonthetargetnumberofunitsawarded),youwillbecreditedwithaDividendEquivalentUnit(DEU)foranycashorstockdividendsdistributedbytheCompanyonCompanyCommonStock.DEUswillbecalculatedatthesamedividendratepaidtootherholdersofCommonStock.ThenumberofDEUsthatwillvestandbedeliveredtoyouintheformofShareswilldependontheactualnumberofunderlyingPerformanceStockUnitsthatareearnedandvested,asmorefullydescribedinthisAgreementandAppendixA.Thus,thenumberofSharesdeliveredinconjunctionwiththeDEUscreditedtoyourPerformanceStockUnitawardwillbeadjusted(upwardordownward)toreflecttheactualnumberofPerformanceStockUnitsthatareearnedandvested.

5.Time of Delivery. ExceptasotherwiseprovidedforinthisAwardAgreement,vestedPerformanceStockUnitsandDividendEquivalentUnitsshallbedeliveredtoparticipantsintheformofSharesassoonasisadministrativelyfeasiblefollowingthespecified“DeliveryDate”,asdescribedinparagraph6below.

6.Normal Vesting. SubjecttotheattainmentoftheperformancemetricsdescribedinAppendixA,yourPerformanceStockUnitAwardwillvestonthelaterof(a)thethirdanniversaryoftheGrantDateor(b)the“CertificationDate”fortheperformanceresultsofthe“PerformanceCycle”,asmorefullydescribedinAppendixA.Exceptasprovidedinparagraphs8,9,10and11below,theDeliveryDateoftheShareswillbeaftertheNovember30thfollowing

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theendofthePerformanceCycle(asdefinedinAppendixA),butinanycase,noearlierthantheCertificationDatefollowingthecloseofthePerformanceCycleandnolaterthan90daysaftersuchNovember30th.NocreditwillbegivenforperiodsfollowingTerminationofEmployment.

7.Termination of Employment. AnyPerformanceStockUnitsandDEUsthathavenotvestedasofyourTerminationofEmployment,otherthanassetforthinparagraphs8, 9, 10 and 11, willimmediatelybeforfeited,andyourrightswithrespecttothosePerformanceStockUnitsandDEUswillend.

8.Death or Disability. IfyoudieorbecomeDisabled,yourPerformanceStockUnitAwardwillvestinfullat100%oftheoriginaltargetsharesgrantedtoyou.SuchvestedPerformanceStockUnitswillbedeliveredtoyouassoonasadministrativelypracticablefollowingthedateofDeathorDisabilityevent,butinnocaseafterthelateroftheendofthecalendaryearinwhichthedeathorDisabilityoccursortwoandahalfmonthsfollowingthedeathorDisabilitydate.Ifyouaredeceased,thepaymentofyourvestedPerformanceStockUnits,consistentwiththedeliverytimingdescribedintheprecedingsentence,willbemadetoyourestateaftertheCommitteeoritsdesigneehasdeterminedthatthepayeeisthedulyappointedexecutororadministratorofyourestate.

9.Retirement. IfyourTerminationofemploymentoccursafteryouhaveattainedage55andhavecompletedatleastfiveyearsofservice,andyouhaveperformedsatisfactorily,asdeterminedinthesolediscretionofyourmanager,andarenotterminatedforCause,(a)yourPerformanceStockUnitAwardwillvestprorata(standardroundingtothenearestUnit,infull-monthincrements)basedon(i)thenumberofwholemonthsthatyouhavecompletedfromthefirstdayofthePerformanceCyclethroughyourTerminationofEmploymentdividedbythirty-six(36),times(ii)thenumberofPerformanceStockUnitsthatareactuallyearnedforthePerformanceCycleinaccordancewiththetermsofAppendixA;and(b)anyremainingPerformanceStockUnitswillbeimmediatelyforfeited.SuchvestedPerformanceStockUnitswillbedeliveredtoyouaftertheNovember30thfollowingthethirdanniversaryofthegrantdate,butinanycase,noearlierthantheCertificationDatefortheperformanceresultsfollowingthecloseofthefiscalyearinwhichyourTerminationofEmploymentoccursandnolaterthan90daysaftersuchNovember30th.Notwithstandingthetermsofthisparagraph9,aTerminationofEmploymentwithin12monthsoftheGrantDatewillresultintheimmediateforfeitureofyourPerformanceStockUnitAward,exceptasotherwiseprovidedforinparagraphs8,10,or11.

10.Change in Control. ExceptasmaybeotherwiseprovidedbytheCommittee,ifyouremploymentisterminatedfollowingaChangeinControl,asdefinedinthePlan,yourPerformanceStockUnitAwardwillbecomevestedasdescribedbelow,providedthat:

(a)youremploymentisterminatedbytheCompanyoraSubsidiaryforanyreasonotherthanCause,DisabilityorDeathinthetwelve-monthperiodfollowingtheChangeinControl;or

(b)youterminateyouremploymentwiththeCompanyoryouremployingSubsidiarywithinthetwelve-monthperiodfollowingtheChangeinControlasaresultof,andwithin180daysfollowing,theoccurrenceofoneofthefollowingevents:

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i.theCompanyoryouremployingSubsidiary(1)assignsorcausestobeassignedtoyoudutiesinconsistentinanymaterialrespectwithyourpositionasineffectimmediatelypriortotheChangeinControl;(2)makesorcausestobemadeanymaterialadversechangeinyourposition,authority,dutiesorresponsibilities;or(3)takesorcausestobetakenanyotheractionwhich,inyourreasonablejudgment,wouldcauseyoutoviolateyourethicalorprofessionalobligations(afterwrittennoticeofsuchjudgmenthasbeenprovidedbyyoutotheCompanyandtheCompanyhasbeengivena15-dayperiodwithinwhichtocuresuchaction),orwhichresultsinasignificantdiminutioninsuchposition,authority,dutiesorresponsibilities;or

ii.theCompanyoryouremployingsubsidiary,withoutyourconsent,(1)requiresyoutorelocatetoaprincipalplaceofemploymentmorethanfifty(50)milesfromyourexistingplaceofemployment;or(2)reducesyourbasesalary,annualbonus,orretirement,welfare,stockincentive,perquisite(ifany)andotherbenefitstakenasawhole.

Ifyoumeettherequirementsdescribedintheprevioussentence,yourPerformanceStockUnitAwardwillvestinfullat100%ofyouroriginaltargetshares(oranyotherequityorcompensationawardgrantedinreplacementofyourPerformanceStockUnitAwardasaresultoftheChangeinControl,asapplicable).SuchvestedPerformanceStockUnits(orotherequityorcompensationawardgrantedinreplacementofyourPerformanceStockUnitAwardasaresultoftheChangeinControl,asapplicable)willbedeliveredonthelaterof(1)assoonasadministrativelypracticableafteryourTerminationofEmploymentfollowingtheChangeinControleventor(2)thedatethatissixmonthsfollowingyourTerminationofEmployment.

11.Termination of Employment with a TE Affiliate as a Result of a Divestiture or Outsourcing. IfthebusinessinwhichyouareemployedisbeingseparatedfromtheCompanyasaresultofaDispositionofAssets,DispositionofaSubsidiaryoranOutsourcingAgreement,and,asoftheclosingdateoftheapplicabletransactionyouaredesignatedinthetransactiondocuments(eitherindividuallyorbyclassification)asaBusinessEmployee(orsimilardesignation)whowillbeterminatingemploymentwiththeCompanyeitherbecause(i)youwillremainwiththeseparatedbusinessafterthetransactionorbetransferredtotheemploymentofthebuyerorOutsourcingAgentasaresultofthetransaction,or(ii)youwillnotbeofferedcontinuedemploymentbytheCompany,buyerorOutsourcingAgentafterthecloseofthetransaction,then(a)yourPerformanceStockUnitAwardwillvestprorata(standardroundingtothenearestUnit,infull-monthincrements)ontheclosingdatebasedon(i)thenumberofwholemonthsfromthefirstdayoftheperformancecyclethroughtheclosingdateoftheapplicabletransactiondividedbythirtysix(36),times(ii)thetargetnumberofPerformanceStockUnitsthatwereoriginallygrantedand(b)anyremainingPerformanceStockUnitswillbeforfeited.InthecaseofaDivestiturethroughaDispositionofAssetsoranOutsourcingAgreementforparticipantswhohavenotreachedRetirementeligibility(asdescribedinparagraph9.above)asofthecloseoftheDispositionofAssetsortheOutsourcingAgreementdate,suchvestedPerformanceStockUnitswillbedeliveredassoonasadministrativelypracticablefollowingthecloseoftheDivestiture.InnoeventwillsuchvestedsharesbedeliveredafterthelateroftheendofthecalendaryearinwhichtheDivestituretakesplaceorthedatethatistwoandahalfmonthsaftertheDivestitureclosingdate.InthecaseofaDivestiture

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throughaDispositionofAssetsoranOutsourcingAgreementforparticipantswhohavereachedRetirementeligibility(asdescribedinparagraph9.above)asofthecloseDispositionofAssetsortheOutsourcingAgreementdate,suchvestedPerformanceStockUnitswillbedeliveredafterthethirdNovember30thfollowingthegrantdate,butinanycase,noearlierthantheCertificationDatefortheperformanceresultsfollowingthecloseofthefiscalyearinwhichyourTerminationoccursandnolaterthan90daysaftersuchNovember30 .InthecaseofaDivestiturethroughaDispositionofaSubsidiary,thevestedPerformanceStockUnitswillbedeliveredassoonasadministrativelypracticablefollowingthecloseoftheDivestiture.InnoeventwillsuchvestedsharesbedeliveredafterthelateroftheendofthecalendaryearinwhichtheDivestituretakesplaceorthedatethatistwoandahalfmonthsaftertheDivestitureclosingdate.Ifyoubecomeentitledtothepro-ratedvestingdescribedinthisSection11,youwillnotbeentitledtoanyfurthervestinginyourPerformanceStockUnitAwardunlessyouaretransferredtoemploymentwiththeCompanyinapositionoutsideofthebusinessthatisbeingseparatedfromtheCompany(withtheintentofcontinuedemploymentwiththeCompanyoutsideoftheseparatedbusiness)aftertheclosingdateoftheapplicabletransaction,butpriortoyourterminationofemploymentasaresultoftheDispositionofAssets,DispositionofaSubsidiaryoranOutsourcingAgreement.

Notwithstandingtheforegoing,youwillnotbeeligibleforthepro-ratavestingif,(i)yourTerminationofEmploymentoccursonorpriortotheclosingdateofsuchDispositionofAssetsorDispositionofaSubsidiary,asapplicable,oronsuchlaterdateasisspecificallyprovidedintheapplicabletransactionagreementorrelatedagreements,orontheeffectivedateofsuchOutsourcingAgreementapplicabletoyou(the“ApplicableEmploymentDate”),and(ii)youareofferedComparableEmploymentwiththebuyer,successorcompanyoroutsourcingagent,asapplicable,butdonotcommencesuchemploymentontheApplicableEmploymentDate.

ForthepurposesofthisSection11,(a)“ComparableEmployment”shallmeanemploymentatabasesalaryrateandbonustargetthatisatleastequaltothebasesalaryrateandbonustargetineffectimmediatelypriortoyourterminationofemploymentandatalocationthatisnomorethan50milesfromyourjoblocationineffectimmediatelypriortoyourterminationofemployment;(b)“DispositionofAssets”shallmeanthedispositionbytheCompanyoraSubsidiaryofalloraportionoftheassetsusedbytheCompanyorSubsidiaryinatradeorbusinesstoanunrelatedcorporationorentity;(c)“DispositionofaSubsidiary”shallmeanthedispositionbytheCompanyoraSubsidiaryofitsinterestinasubsidiaryorcontrolledentitytoanunrelatedindividualorentity,providedthatsuchsubsidiaryorentityceasestobeanaffiliatedcompanyasaresultofsuchdisposition;and(d)“OutsourcingAgreement”shallmeanawrittenagreementbetweentheCompanyoraSubsidiaryandanunrelatedthirdparty(“OutsourcingAgent”)pursuanttowhichtheCompanytransferstheperformanceofservicespreviouslyperformedbyemployeesoftheCompanyorSubsidiarytotheOutsourcingAgent,andtheOutsourcingAgreementincludesanobligationoftheOutsourcingAgenttoofferemploymenttoanyemployeewhoseemploymentisbeingterminatedasaresultoforinconnectionwithsaidOutsourcingAgreement.

12.Responsibility for Taxes. RegardlessofanyactiontheCompanyoryouremployer(the“Employer”)takeswithrespecttoanyorallincometax,socialinsurance,payrolltax,paymentonaccountorothertax-relateditemsrelatedtoyourparticipationinthePlanandlegallyapplicabletoyou(“Tax-RelatedItems”),byacceptingtheAward,youacknowledgethat

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th

theultimateliabilityforallTax-RelatedItemsisandremainsyourresponsibilityandmayexceedtheamountactuallywithheldbytheCompanyortheEmployer.YoufurtheracknowledgethattheCompanyand/ortheEmployerdonotcommittoandareundernoobligationtostructurethetermsofthegrantoranyaspectofthePerformanceStockUnitstoreduceoreliminateyourliabilityforTax-RelatedItemsorachieveanyparticulartaxresult.Further,ifyouhavebecomesubjecttotaxinmorethanonejurisdictionbetweenthedateofgrantandthedateofanyrelevanttaxableevent,youacknowledgethattheCompanyand/ortheEmployer(orformeremployer,asapplicable)mayberequiredtowithholdoraccountforTax-RelatedItemsinmorethanonejurisdiction.

Priortoanyrelevanttaxableortaxwithholdingevent,asapplicable,youwillpayormakeadequatearrangementssatisfactorytotheCompanyand/ortheEmployertosatisfyallTax-RelatedItems.Inthisregard,youauthorizetheCompanyand/ortheEmployer,ortheirrespectiveagents,attheirdiscretion,tosatisfytheobligationswithregardtoallTax-RelatedItemsbyoneoracombinationofthefollowing:

(1)withholdingfromyourwagesorothercashcompensationpaidtoyoubytheCompanyand/ortheEmployer;or

(2)withholdingfromproceedsofthesaleofSharesacquireduponvestingofthePerformanceStockUnitseitherthroughavoluntarysaleorthroughamandatorysalearrangedbytheCompany(onyourbehalfpursuanttothisauthorization);or

(3)withholdinginSharestobeissueduponvestingofthePerformanceStockUnits.

Toavoidnegativeaccountingtreatment,theCompanymaywithholdoraccountforTax-RelatedItemsbyconsideringapplicableminimumstatutory

withholdingamountsorotherapplicablewithholdingrates.IftheobligationforTax-RelatedItemsissatisfiedbywithholdinginShares,fortaxpurposes,youaredeemedtohavebeenissuedthefullnumberofSharessubjecttothevestedPerformanceStockUnits,notwithstandingthatanumberoftheSharesareheldbacksolelyforthepurposeofpayingtheTax-RelatedItemsdueasaresultofanyaspectofyourparticipationinthePlan.

Finally,youshallpaytotheCompanyortheEmployeranyamountofTax-RelatedItemsthattheCompanyortheEmployermayberequiredtowithholdoraccountforasaresultofyourparticipationinthePlanthatcannotbesatisfiedbythemeanspreviouslydescribed.TheCompanymayrefusetoissueordelivertheSharesortheproceedsofthesaleofSharesifyoufailtocomplywithyourobligationsinconnectionwiththeTax-RelatedItems.

Fortaxwithholdingpurposes,thevalueofvestedShareswillbebasedonthefairmarketvaluedefinedastheaverageofthehighandlowofthestockpricereportedonthedateofdeliveryorsuchotherreasonableandpermissibledateasdeterminedbythePlanAdministrator.

13.Transfer of Award. YoumaynottransferanyinterestinPerformanceStockUnitsexcept(a)bywillorthelawsofdescentanddistributionor(b)underrulesestablishedbytheCompany,toyourspouseorformerspouseinaccordancewiththetermsofadomestic

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relationsorderorsettlementagreementassociatedwiththedissolutionofyourmarriagetothatspouseorformerspouse.AnyotherattempttodisposeofyourinterestinPerformanceStockUnitswillbenullandvoid.

14.Covenant; Forfeiture of Award; Agreement to Reimburse Company.

(a)IfyouhavebeenterminatedforCause,anyunvestedPerformanceStockUnitsshallbeimmediatelyforfeitedand,inaddition,youherebyagreeandpromiseimmediatelytodelivertotheCompanythenumberofShares(or,inthediscretionoftheCommittee,thecashvalueofsaidshares)youreceivedforPerformanceStockUnitsthatvestedduringtheperiodsix(6)monthspriortoyourTerminationofEmploymentthroughthedateofTerminationofEmployment.

(b)If,afteryourTerminationofEmployment,theCommitteedeterminesinitssolediscretionthatwhileyouwereaCompanyorSubsidiaryemployeeyouengagedinactivitythatwouldhaveconstitutedgroundsfortheCompanyorSubsidiarytoterminateyouremploymentforCause,thenyouherebyagreeandpromiseimmediatelytodelivertotheCompanythenumberofShares(or,inthediscretionoftheCommittee,thecashvalueofsaidshares)youreceivedforPerformanceStockUnitsthatvestedduringtheperiodsix(6)monthspriortoyourTerminationofEmploymentthroughthedateofTerminationofEmployment.

(c)IftheCommitteedetermines,initssolediscretion,thatatanytimeafteryourTerminationofEmploymentandpriortothesecondanniversaryofyourTerminationofEmploymentyou(i)disclosedbusinessconfidentialorproprietaryinformationrelatedtoanybusinessoftheCompanyorSubsidiaryor(ii)haveenteredintoanemploymentorconsultationarrangement(includinganyarrangementforemploymentorserviceasanagent,partner,stockholder,consultant,officerordirector)withanyentityorpersonengagedinabusinessand(A)suchemploymentorconsultationarrangementwouldlikely(intheCommittee’ssolediscretion)resultinthedisclosureofbusinessconfidentialorproprietaryinformationrelatedtoanybusinessoftheCompanyoraSubsidiarytoabusinessthatiscompetitivewithanyCompanyorSubsidiarybusinessastowhichyouhavehadaccesstobusinessstrategicorconfidentialinformation,and(B)theCommitteehasnotapprovedthearrangementinwriting,thenyouherebyagreeandpromiseimmediatelytodelivertotheCompanythenumberofShares(or,inthediscretionoftheCommittee,thecashvalueofsaidshares)youreceivedforPerformanceStockUnitsthatvestedduringtheperiodsix(6)monthspriortoyourTerminationofEmploymentthroughthedateofTerminationofEmployment.

(d)TheCommitteeshallbeentitledtorequirethatyourepayallorpartofanyamountreceived(whetherincashorstock)pursuanttothetermsofthisAward(i)totheextentitdeemsitnecessaryorappropriatetocomplywithanyfuturerulesoftheSecuritiesandExchangeCommission,NewYorkStockExchangeoranyothergovernmentalagency,astheymaybeamendedfromtimetotime,or(ii)totheextentotherwisedeemedappropriatebytheCommitteetorecoveranyoverpaymentormistakenpaymentthatwasbasedondeficientfinancialinformation,andyouherebyagreeandpromisetopromptlyremittotheCompanyanysuchamount.

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15.Adjustments. Intheeventofanystocksplit,reversestocksplit,dividendorotherdistribution(whetherintheformofcash,Shares,other

securitiesorotherproperty),extraordinarycashdividend,recapitalization,merger,consolidation,split-up,spin-off,reorganization,combination,repurchaseorexchangeofSharesorothersecurities,theissuanceofwarrantsorotherrightstopurchaseSharesorothersecurities,orothersimilarcorporatetransactionorevent,theCommitteeshalladjustthenumberandkindofSharescoveredbythePerformanceStockUnitsandotherrelevantprovisionstotheextentnecessarytopreventdilutionorenlargementofthebenefitsorpotentialbenefitsintendedtobeprovidedbythePerformanceStockUnits.

16.Restrictions on Payment of Shares. PaymentofSharesforyourPerformanceStockUnitsissubjecttotheconditionsthat,totheextentrequiredatthetimeofdelivery,(a)theSharesunderlyingthePerformanceStockUnitswillbedulylisted,uponofficialnoticeofredemption,upontheNYSE,and(b)aRegistrationStatementundertheSecuritiesActof1933withrespecttotheShareswillbeeffective.TheCompanywillnotberequiredtodeliveranyCommonStockuntilallapplicablefederalandstatelawsandregulationshavebeencompliedwithandalllegalmattersinconnectionwiththeissuanceanddeliveryoftheShareshavebeenapprovedbycounseloftheCompany.

17.Disposition of Securities. ByacceptingtheAward,youacknowledgethatyouhavereadandunderstandtheCompany’sinsidertradingpolicy,andareawareofandunderstandyourobligationsunderfederalsecuritieslawsinrespectoftradingintheCompany’ssecurities.TheCompanywillhavetherighttorecover,orreceivereimbursementfor,anycompensationorprofitrealizedonthedispositionofSharesreceivedforPerformanceStockUnitstotheextentthattheCompanyhasarightofrecoveryorreimbursementunderapplicablesecuritieslaws.

18.Plan Terms Govern. TheredemptionofPerformanceStockUnits,thedispositionofanySharesreceivedforPerformanceStockUnits,andthetreatmentofanygainonthedispositionoftheseSharesaresubjecttothetermsofthePlanandanyrulesthattheCommitteemayprescribe.ThePlandocument,asmaybeamendedfromtimetotime,isincorporatedintothisAwardAgreement.CapitalizedtermsusedinthisAwardAgreementhavethemeaningsetforthinthePlan,unlessotherwisestatedinthisAwardAgreement.IntheeventofanyconflictbetweenthetermsofthePlanandthetermsofthisAwardAgreement,thePlanwillcontrol.ByacceptingtheAward,youacknowledgereceiptofthePlanandtheprospectus,asineffectonthedateofthisAwardAgreement.

19.Data Privacy .ByacceptingtheAward,youherebyexplicitlyandunambiguouslyconsenttothecollection,useandtransfer,inelectronicorotherform,ofyourpersonaldataasdescribedinthisAwardAgreementandanyothergrantmaterialsbyandamong,asapplicable,yourEmployer,theCompanyanditsSubsidiaries(orformerSubsidiariesasaredeemednecessary)fortheexclusivepurposeofimplementing,administeringandmanagingyourparticipationinthePlan.

YouunderstandthattheCompanyandtheEmployermayholdcertainpersonalinformationaboutyou,including,butnotlimitedto,yourname,homeaddressandtelephonenumber,dateofbirth,socialinsurancenumberorotheridentificationnumber,salary,nationality,jobtitle,anySharesordirectorshipsheldintheCompany,detailsofallPerformanceStockUnits

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oranyotherentitlementtoSharesawarded,canceled,exercised,vested,unvestedoroutstandinginyourfavor,fortheexclusivepurposeofimplementing,administeringandmanagingthePlan(“Data”).

YouunderstandthatDatamaybetransferredtoanythirdpartiesassistingtheCompanywiththeimplementation,administrationandmanagementofthePlan.YouunderstandthattheserecipientsoftheDatamaybelocatedintheUnitedStatesorelsewhere,andthattherecipients’country(e.g.,theUnitedStates)mayhavedifferentdataprivacylawsandprotectionsthanyourcountry.YouunderstandthatyoumayrequestalistwiththenamesandaddressesofanypotentialrecipientsoftheDatabycontactingyourlocalHumanResourcesRepresentative.YouauthorizetheCompanyandtherecipientsassistingtheCompany(presentlyorinthefuture)withimplementing,administeringandmanagingthePlantoreceive,possess,use,retainandtransfertheData,inelectronicorotherform,forthesolepurposeofimplementing,administeringandmanagingyourparticipationinthePlan.YouunderstandthatDatawillbeheldonlyaslongasisnecessarytoimplement,administerandmanageyourparticipationinthePlan.Youunderstandthatyoumay,atanytime,viewData,requestadditionalinformationaboutthestorageandprocessingofData,requireanynecessaryamendmentstoDataorrefuseorwithdrawtheconsentsherein,inanycasewithoutcost,bycontactinginwritingyourlocalHumanResourcesRepresentative.Youunderstand,however,thatrefusingorwithdrawingyourconsentmayaffectyourabilitytoparticipateinthePlan.Formoreinformationontheconsequencesofyourrefusaltoconsentorwithdrawalofconsent,youunderstandthatyoumaycontactyourlocalHumanResourcesRepresentative.

20.Nature of Grant .ByacceptingtheAward,youacknowledgethat:

(a)thePlanisestablishedvoluntarilybytheCompany,itisdiscretionaryinnatureanditmaybemodified,amended,suspendedorterminatedbytheCompanyatanytime;

(b)thegrantofthePerformanceStockUnitsisvoluntaryandoccasionalanddoesnotcreateanycontractualorotherrighttoreceivefuturegrantsofPerformanceStockUnits,orbenefitsinlieuofPerformanceStockUnits,evenifPerformanceStockUnitshavebeengrantedrepeatedlyinthepast;

(c)alldecisionswithrespecttofuturePerformanceStockUnitgrants,ifany,willbeatthesolediscretionoftheCompany;

(d)yourparticipationinthePlanshallnotcreatearighttofurtheremploymentwiththeEmployerandshallnotinterferewiththeabilityoftheEmployertoterminateyouremploymentrelationshipatanytime;

(e)youarevoluntarilyparticipatinginthePlan;

(f)thePerformanceStockUnitsandtheSharessubjecttothePerformanceStockUnitsareextraordinaryitemsthatdonotconstitutepartofyourordinaryongoingcompensation;

(g)thePerformanceStockUnitsandtheSharessubjecttothePerformanceStockUnitsarenotintendedtoreplaceanypensionrightsorcompensation;

(h)thePerformanceStockUnitsandtheSharessubjecttothePerformanceStockUnitsarenotpartofnormalorexpectedcompensationorsalaryforanypurposes,

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including,butnotlimitedto,calculatinganyseverance,resignation,termination,redundancy,dismissal,endofservicepayments,bonuses,long-serviceawards,pensionorretirementorwelfarebenefitsorsimilarpaymentsandinnoeventshouldbeconsideredascompensationfor,orrelatinginanywayto,pastservicesfortheCompany,theEmployeroranySubsidiaryoftheCompany;

(i)thePerformanceStockUnitgrantandyourparticipationinthePlanwillnotbeinterpretedtoformanemploymentcontractorrelationshipwiththeCompanyoranySubsidiaryoftheCompany;

(j)thefuturevalueoftheunderlyingSharesisunknownandcannotbepredictedwithcertainty;

(k)inconsiderationofthegrantofthePerformanceStockUnits,noclaimorentitlementtocompensationordamagesshallarisefromforfeitureofthePerformanceStockUnitsresultingfromterminationofyouremploymentwiththeCompanyortheEmployer(foranyreasonwhatsoeverandwhetherornotinbreachoflocallaborlaws)andyouirrevocablyreleasetheCompanyandtheEmployerfromanysuchclaimthatmayarise;if,notwithstandingtheforegoing,anysuchclaimisfoundbyacourtofcompetentjurisdictiontohavearisen,youshallbedeemedirrevocablytohavewaivedyourentitlementtopursuesuchclaim;

(l)thePerformanceStockUnitsandthebenefitsunderthePlan,ifany,willnotautomaticallytransfertoanothercompanyinthecaseofamerger,take-overortransferofliability;

(m)paymentofyourPerformanceStockUnitsisnotsecuredbyatrust,insurancecontractorotherfundingmedium,andyoudonothaveanyinterestinanyfundorspecificassetoftheCompanybyreasonofthisAwardortheaccountestablishedonyourbehalf;and

(n)youhavenorightsasastockholderoftheCompanypursuanttothePerformanceStockUnitsuntilSharesareactuallydeliveredtoyou.

21.No Advice Regarding Grant. TheCompanyisnotprovidinganytax,legalorfinancialadvice,noristheCompanymakinganyrecommendationsregardingyourparticipationinthePlanoryouracquisitionorsaleoftheunderlyingShares.Youareherebyadvisedtoconsultwithyourownpersonaltax,legalandfinancialadvisorsregardingyourparticipationinthePlanbeforetakinganyactionrelatedtothePlan.

22.Incorporation of Other Agreements. ThisAwardAgreementandthePlanconstitutetheentireunderstandingbetweenyouandtheCompanyregardingthePerformanceStockUnits.ThisAwardAgreementsupersedesanyprioragreements,commitmentsornegotiationsconcerningthePerformanceStockUnits.

23.Severability. TheinvalidityorunenforceabilityofanyprovisionofthisAwardwillnotaffectthevalidityorenforceabilityoftheotherprovisionsoftheAgreement,whichwillremaininfullforceandeffect.Moreover,ifanyprovisionisfoundtobeexcessivelybroadinduration,scopeorcoveredactivity,theprovisionwillbeconstruedsoastobeenforceabletothemaximumextentcompatiblewithapplicablelaw.

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24.Delayed Payment. NotwithstandinganythinginthisAwardAgreementtothecontrary,iftheEmployee(i)issubjecttoUSFederalincometax

onanypartofthepaymentofthePerformanceStockUnits,(ii)isa“specifiedemployee”withinthemeaningofsection409A(a)(2)(B)oftheInternalRevenueCodeandtheregulationsthereunder,and(iii)isorwillbecomeeligibleforRetirementpriortotheNormalVestingofsomeorallofthePerformanceStockUnits,thenanypaymentofPerformanceStockUnitsthatismadeonaccountofhisseparationfromservicewithinthemeaningofsection409A(a)(2)(A)(i)oftheInternalRevenueCodeandtheregulationsthereundershallbedelayeduntilsixmonthsfollowingsuchseparationfromservice.

25.Language. IfyouhavereceivedthisAwardAgreementoranyotherdocumentrelatedtothePlantranslatedintoalanguageotherthanEnglishandifthemeaningofthetranslatedversionisdifferentthantheEnglishversion,theEnglishversionwillcontrol.

26.Electronic Delivery. TheCompanymay,initssolediscretion,decidetodeliveranydocumentsrelatedtocurrentorfutureparticipationinthePlanbyelectronicmeans.YouherebyconsenttoreceivesuchdocumentsbyelectronicdeliveryandagreetoparticipateinthePlanthroughanon-lineorelectronicsystemestablishedandmaintainedbytheCompanyorathirdpartydesignatedbytheCompany.

27.Imposition of Other Requirements .TheCompanyreservestherighttoimposeotherrequirementsonyourparticipationinthePlan,includingbutnotlimitedtosuchrequirementsasdescribedinAppendixA,ifapplicable,onthePerformanceStockUnitsandonanySharesacquiredunderthePlan,totheextenttheCompanydeterminesitisnecessaryoradvisableinordertocomplywithlocallaworfacilitatetheadministrationofthePlan,andtorequireyoutosignanyadditionalagreementsorundertakingsthatmaybenecessarytoaccomplishtheforegoing.ByacceptingthisAward,youagreetothefollowing:

(i)youhavecarefullyread,fullyunderstandandagreetoallofthetermsandconditionsdescribedinthisAwardAgreementandthePlan;and

(ii)youunderstandandagreethatthisAwardAgreementandthePlanconstitutetheentireunderstandingbetweenyouandtheCompanyregardingtheAward,andthatanyprioragreements,commitmentsornegotiationsconcerningthePerformanceStockUnitsarereplacedandsuperseded.

ThomasJ.LynchChiefExecutiveOfficer,TEConnectivity

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APPENDIX A

PERFORMANCE METRICS APPLICABLE TO

FISCAL YEAR 2016 PERFORMANCE STOCK UNIT AWARDS

1.Purpose—ThisdocumentisAppendixAtothe“TermsandConditionsofPerformanceStockUnitAward”document(your“PSUawardagreement”)whichreflectsthetermsandconditionsofyourFiscalYear2016performancestockunit(“PSU”)awardgrantedonNovember9,2015.ThepurposeofthisAppendixistodescribethetermsunderwhichyouwillearnPSUsgrantedtoyouunderyourFiscalYear2016PSUawardthroughtheapplicablethree-yearperformancecycle.(NotethattheearnedPSUswillnotbedeliveredtoyouunlessyoumeettheapplicablevestingrequirementsdescribedinyourPSUawardagreement.)ForpurposesofyourFiscalYear2016PSUaward,the“PerformanceCycle”isthethree(3)fiscal-yearperiodbeginningwiththefirstdayoffiscalyear2016andendingonthelastdayoffiscalyear2018.

2.Vesting—ThevestingtermsapplicabletoyourFiscalYear2016PSUawardaredescribedinyourPSUawardagreement.ThisAppendixdescribes

howmanyPSUsyouwillearnoverthethree(3)fiscalyearsofthePerformanceCycleundertheCompanyPerformanceMetric,whichwillvestandbedeliveredtoyouintheformofSharesifyoumeettheapplicablevestingrequirementsdescribedinyourPSUawardagreement.

3.PerformanceMetric—TheperformancemetricwhichwillbemeasuredtodeterminehowmanyPSUsyouwillearnoverthethree(3)fiscalyearsof

thePerformanceCycleisrelativeearningspershare(“EPS”)growth.

·Theperformancemetricistheaveragethree-yeargrowthrateof“adjustedEPS”,whichisadjusteddilutedEPSfromcontinuingoperations,evaluatedoverthree(3)years.BloombergNewsreferstothismetricas“DilutedEPSbeforeAbnormalItems”.IndeterminingtheCompany’srelativeperformance,theCompanywillusetheDilutedEPSbeforeAbnormalItemsdatapublishedinBloombergforthecompaniesincludedinthebenchmarkdescribedbelow.

TheCompany’srelativeEPSperformancewillbecalculatedbyrankingitsthree-yearEPSgrowthversusthethree-yearEPSgrowthofalleligibleS&P500Non-Financialcompanies.ThecalculationoftheCompany’srelativeEPSgrowthperformancewillbeconductedunderwrittenproceduresadoptedbytheManagementDevelopmentandCompensationCommittee(the“MDCC”)oftheBoardofDirectorsatthetimethe

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FiscalYear2016PSUawardsweregranted.(TheapprovedcalculationprocedureswillbemadeavailabletoyouuponwrittenrequestsenttoExecutiveCompensation,AttentionDirectorofExecutiveCompensation,1050WestlakesDrive,Berwyn,PAUSA19312.)

4.DeterminationofPSUsEarned—ThenumberofPSUsearnedoverthethree(3)fiscalyearPerformanceCyclewillbedeterminedbasedonthe

Company’srelativeEPSgrowthperformanceforthecycle.Theperformancemetric,asdeterminedattheendofthethree(3)fiscalyearperformancecycle,willbeappliedtothetargetamountofPSUsgrantedtoyouundertheaward.DependingontheCompany’srelativeEPSgrowthperformancefortheperformancecycle,youcanearnfrom0%to200%ofthePSUsgrantedtoyou,basedonthefollowingscale:

Threshold

Target

MaximumPerformance Zone (relativeEPSgrowth%ranking)

25

50th

75

PSUs Earned (%ofPSUseligibletobeearned)

50%

100%

200%

Performancebelowthe25 percentileresultsinzeroPSUsearnedforthefiscalyear.Performancebetweenthe25thand75 percentilewillbeinterpolated.Performanceabovethe75 percentileiscappedat200%.

5.CertificationDate—ThedateonwhichtheMDCCoftheBoardofDirectorscertifiesperformanceresultsforeachfiscalyearinthePerformance

CycleistheCertificationDateforpurposesofthePSUawardagreement.

6.PSUsEarned—OncetheMDCCdeterminesthenumberofPSUsthatyouhaveearnedwithinthePerformanceCycleundertheCompanyPerformanceMetric,thatnumberofunitswillbecreditedtoyourPSUaccount.

7.MDCCDiscretion—AlldecisionsregardingtheinterpretationofyourPSUawardandthecalculationofPSUsearnedunderyourPSUaward,

includingwithoutlimitation,anyandallmattersrelatingtothecalculationoftheCompany’srelativeEPSgrowthperformance,willbemadeinthesoleandabsolutediscretionoftheMDCC.AlldeterminationsoftheMDCCwillbefinal,bindingandconclusiveonallparties.

8.GoverningDocument—ThisAppendixAispartofandincorporatedintothetermsofyourPSUawardagreementandshouldbereadincontextof

theawardagreement.

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th th

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Exhibit 10.17

INDEMNIFICATION AGREEMENT

THISAGREEMENTisenteredinto,effectiveasof[•],byandbetweenTEConnectivityLtd..,aSwisscorporation(the“Company”),and(“Indemnitee”).

WHEREAS,itisessentialtotheCompanytoretainandattractasdirectorsandofficersthemostcapablepersonsavailable;

WHEREAS,Indemniteeisadirectorand/orofficeroftheCompany;

WHEREAS,boththeCompanyandIndemniteerecognizetheincreasedriskoflitigationandotherclaimscurrentlybeingassertedagainstdirectorsandofficersofcorporations;

WHEREAS,theArticlesofAssociationoftheCompanyrequiretheCompanytoindemnifyitsdirectorsandofficerstothefullestextentpermittedbylaw,andpermittheCompanytoadvanceexpensesrelatingtothedefenseofindemnificationmatters,andtheIndemniteehasbeenservingandcontinuestoserveasadirectorand/orofficeroftheCompanyinpartinrelianceontheCompany’sArticlesofAssociation;

WHEREAS,therecognitionofIndemnitee’sneedfor(i)substantialprotectionagainstpersonalliabilitybasedonIndemnitee’srelianceuponaforesaidArticlesofAssociation,(ii)specificcontractualassurancethattheprotectionpromisedbytheArticlesofAssociationwillbeavailabletoIndemnitee(regardlessof,amongotherthings,anyamendmenttoorrevocationoftheArticlesofAssociationoranychangeinthecompositionoftheCompany’sBoardofDirectorsoracquisitiontransactionrelatingtotheCompany),theCompanywishestoprovideinthisAgreementfortheindemnificationofandtheadvancingofexpensestoIndemniteetothefullestextent(whetherpartialorcomplete)permittedunderlawandassetforthinthisAgreement,and,totheextentinsuranceismaintained,toprovideforthecontinuedcoverageofIndemniteeundertheCompany’sdirectors’andofficers’liabilityinsurancepolicies;

NOW,THEREFORE,inconsiderationoftheabovepremisesandofIndemniteecontinuingtoservetheCompanydirectlyor,atitsrequest,withanotherEnterprise,andintendingtobelegallyboundhereby,thepartiesagreeasfollows:

1. Certain Definitions :

(a)Affiliate:anycorporationorotherpersonorentitythatdirectly,orindirectlythroughoneormoreintermediaries,controlsoriscontrolledby,orisundercommoncontrolwith,thepersonspecified.

(b)Board:theBoardofDirectorsoftheCompany.

(c)ChangeinControl:shallbedeemedtohaveoccurredif:

(i)any“person,”assuchtermisusedinSections3(a)(9)and13(d)oftheExchangeAct,becomesa“beneficialowner,”assuchtermis

usedinRule13d-3promulgatedundertheExchangeAct,of50%ormoreoftheVotingStock(asdefinedbelow)oftheCompany;

(ii)themajorityoftheBoardconsistsofindividualsotherthanIncumbentDirectors,whichtermmeansthemembersoftheBoardontheeffectivedateoftheseparationoftheCompanyfromTycoInternationalLtd.,providedthatanypersonbecomingadirectorsubsequenttosuchdatewhoseelectionornominationforelectionwassupportedbythree-quartersofthedirectorswhothencomprisedtheIncumbentDirectorsshallbeconsideredtobeanIncumbentDirector;

(iii)theCompanyadoptsanyplanofliquidationprovidingforthedistributionofallorsubstantiallyallofitsassets;

(iv)allorsubstantiallyalloftheassetsorbusinessoftheCompanyisdisposedofpursuanttoamerger,consolidationorothertransaction

(unlesstheshareholdersoftheCompanyimmediatelypriortosuchamerger,consolidationorothertransactionbeneficiallyown,directlyorindirectly,insubstantiallythesameproportionastheyownedtheVotingStockoftheCompany,alloftheVotingStockorotherownershipinterestsoftheentityorentities,ifany,thatsucceedtothebusinessoftheCompany);or

(iv)theCompanycombineswithanothercompanyandisthesurvivingcorporationbut,immediatelyafterthecombination,the

shareholdersoftheCompanyimmediatelypriortothecombinationhold,directlyorindirectly,50%orlessoftheVotingStockofthecombinedcompany(therebeingexcludedfromthenumberofsharesheldbysuchshareholders,butnotfromtheVotingStockofthecombinedcompany,anysharesreceivedbyAffiliatesofsuchothercompanyinexchangeforstockofsuchothercompany).

(d)Enterprise:theCompanyandanyothercorporation,limitedliabilitycompany,partnership,jointventure,trust,employeebenefitplanorother

enterpriseofwhichIndemniteeisorwasservingattherequestoftheCompanyasadirector,officer,trustee,generalpartner,managingmember,fiduciary,boardofdirectors’committeemember,employeeoragent.

(e)ExchangeAct:theSecuritiesExchangeActof1934,asamended.

(f)Expenses:anyexpense,liability,orloss,includingreasonableattorneys’fees,judgments,fines,ERISAexcisetaxesandpenalties,amountspaidortobepaidinsettlement,anyinterest,assessments,orotherchargesimposedthereon,anyfederal,state,local,orforeigntaxesimposedasaresultoftheactualordeemedreceiptofanypaymentsunderthisAgreement,andallothercostsandobligations,paidorincurredinconnectionwithinvestigating,defending,prosecuting(subjecttoSection2(b)),beinga

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witnessin,participatingin(includingonappeal),orpreparingforanyoftheforegoingin,anyProceedingrelatingtoanyIndemnifiableEvent.ExpensesalsoshallincludeExpensesincurredinconnectionwithanyappealresultingfromanyProceeding,includingwithoutlimitationthepremium,securityfor,andothercostsrelatingtoanycostbond,supersedesbond,orotherappealbondoritsequivalent.

(g)IndemnifiableEvent:(i)anyeventoroccurrencethattakesplaceeitherpriortooraftertheexecutionofthisAgreement,relatedtothefactthatIndemniteeisorwasadirectororofficeroftheCompany,orwhileadirectororofficerisorwasservingattherequestoftheCompanyasadirector,officer,employee,trustee,agent,orfiduciaryofanotherforeignordomesticcorporation,partnership,limitedliabilitycompany,jointventure,employeebenefitplan,trust,orotherEnterprise,orwasadirector,officer,employee,oragentofaforeignordomesticcorporationthatwasapredecessorcorporationoftheCompanyoranotherEnterpriseattherequestofsuchpredecessorcorporation,orrelatedtoanythingdoneornotdonebyIndemniteeinanysuchcapacity,whetherornotthebasisoftheProceedingisallegedactioninanofficialcapacityasadirector,officer,employeeoragentorinanyothercapacitywhileservingasadirector,officer,employee,oragentoftheCompany,asdescribedaboveor(ii)anyeventorfactrelatedtothefactthatIndemniteeisorwasadirector,officer,employee,trustee,agent,orfiduciaryofanotherforeignordomesticcorporation,partnership,limitedliabilitycompany,jointventure,employeebenefitplan,trust,orotherEnterpriseandthatrelatedtothesubjectmatteroftheinvestigationsreferredtointheCompany’sForm10asfiledonJune8,2007oranyotherinvestigation(whetherornottheCompanyisatargetofsuchinvestigation)byanygovernmententitycoveringsubjectmatterthatissubstantiallysimilartothesubjectmatterof,orarisesoutof,theforegoinginvestigations.

(h)IndependentCounsel:thepersonorbodyappointedinconnectionwithSection3.

(i)Proceeding:anythreatened,pending,orcompletedaction,suit,orproceedingoranyalternativedisputeresolutionmechanism(includinganactionbyorintherightoftheCompany),oranyinquiry,hearing,orinvestigation,whetherconductedbytheCompanyoranyotherparty,thatIndemniteeingoodfaithbelievesmightleadtotheinstitutionofanysuchaction,suit,orproceeding,whethercivil,criminal,administrative,investigative,orother.

(j)ReviewingParty:thepersonorbodyappointedinaccordancewithSection3.

(k)VotingStock:capitalstockofanyclassorclasseshavinggeneralvotingpowerunderordinarycircumstances,intheabsenceofcontingencies,toelectthedirectors(orsimilarfunction)ofanEnterprise.

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2. Agreement to Indemnify

(a)GeneralAgreement.IntheeventIndemniteewas,is,orbecomesapartytoorwitnessorotherparticipantin,oristhreatenedtobemadeaparty

toorwitnessorotherparticipantin,aProceedingbyreasonof(orarisinginpartoutof)anIndemnifiableEvent,theCompanyshallindemnifyIndemniteefromandagainstanyandallExpensestothefullestextentpermittedbylaw,asthesameexistsormayhereafterbeamendedorinterpreted.

(b)InitiationofProceeding.NotwithstandinganythinginthisAgreementtothecontrary,Indemniteeshallnotbeentitledtoindemnification

pursuanttothisAgreementinconnectionwithanyProceedinginitiatedbyIndemniteeagainsttheCompanyoranydirectororofficeroftheCompanyunless(i)theCompanyhasjoinedinortheBoardhasconsentedtotheinitiationofsuchProceeding;(ii)theProceedingisonetoenforceindemnificationrightsunderSection5;or(iii)theProceedingisinstitutedafteraChangeinControl(otherthanaChangeinControlapprovedbyamajorityofthedirectorsontheBoardwhoweredirectorsimmediatelypriortosuchChangeinControl)andIndependentCounselhasapproveditsinitiation.

(c)ExpenseAdvances.IfsorequestedbyIndemnitee,theCompanyshalladvance(withinfivebusinessdaysofsuchrequest)anyandallExpensestoIndemnitee(an“ExpenseAdvance”);providedthat,(i)suchExpenseAdvanceshallbemadeonlyupondeliverytotheCompanyofanundertakingbyoronbehalfoftheIndemniteetorepaytheamountthereofifitisultimatelydeterminedthatIndemniteeisnotentitledtobeindemnifiedbytheCompany,and(ii)theCompanyshallnot(unlessacourtofcompetentjurisdictionshalldetermineotherwise)berequiredtomakeanExpenseAdvanceifandtotheextentthattheReviewingPartyhasdeterminedthatIndemniteeisnotpermittedtobeindemnifiedunderapplicablelaw,and(iii)ifandtotheextentthattheReviewingPartydeterminesafterpaymentofoneormoreExpenseAdvancesthatIndemniteewouldnotbepermittedtobesoindemnifiedunderapplicablelaw,theCompanyshallbeentitledtobereimbursedbyIndemnitee(whoherebyagreestoreimbursetheCompany)forallsuchamountstheretoforepaid.IfIndemniteehascommencedorcommenceslegalproceedingsinacourtofcompetentjurisdictiontosecureadeterminationthatIndemniteeshouldbeindemnifiedunderapplicablelaw,asprovidedinSection5,anydeterminationmadebytheReviewingPartythatIndemniteewouldnotbepermittedtobeindemnifiedunderapplicablelawshallnotbebinding,andIndemniteeshallnotberequiredtoreimbursetheCompanyforanyExpenseAdvanceuntilafinaljudicialdeterminationismadewithrespectthereto(astowhichallrightsofappealtherefromhavebeenexhaustedorhavelapsed).Indemnitee’sobligationtoreimbursetheCompanyforExpenseAdvancesshallbeunsecuredandnointerestshallbechargedthereon.

(d)MandatoryIndemnification.NotwithstandinganyotherprovisionofthisAgreement,totheextentthatIndemniteehasbeensuccessfulonthemeritsorotherwiseindefenseofanyProceedingrelatinginwholeorinparttoanIndemnifiableEventorindefenseofanyissueormattertherein,IndemniteeshallbeindemnifiedagainstallExpensesincurredinconnectiontherewith.

(e)PartialIndemnification.IfIndemniteeisentitledunderanyprovisionofthisAgreementtoindemnificationbytheCompanyforsomeoraportionofExpenses,

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butnot,however,forthetotalamountthereof,theCompanyshallneverthelessindemnifyIndemniteefortheportionthereoftowhichIndemniteeisentitled.

(f)ProhibitedIndemnification.NoindemnificationpursuanttothisAgreementshallbepaidbytheCompany:

(i)onaccountofanyProceedinginwhichjudgmentisrenderedagainstIndemniteeforanaccountingofprofitsmadefromthepurchaseorsalebyIndemniteeofsecuritiesoftheCompanypursuanttotheprovisionofSection16(b)oftheExchangeActorsimilarprovisionofanyfederal,state,orlocallaws;

(ii)ifacourtofcompetentjurisdictionbyafinaljudicialdetermination,shalldeterminethatsuchindemnificationisnotpermittedunder

applicablelaw;

(iii)iftheIndemniteehasbeenconvictedofacrimeconstitutingafelonyunderthelawsofthejurisdictionwherethecriminalactionhadbeenbrought;or

(iv)inrespectofanyfraud,dishonestyorintentionalorgrosslynegligentbreachofdutiesofwhichtheIndemniteemaybeguiltyinrelationto

theCompany,providedthat,notwithstandingtheforegoing,theCompanyshallprovideExpenseAdvancestoanIndemniteeforthecosts,chargesandexpensesincurredbyhimindefendinganycivilorcriminalproceedingsagainsthiminrespectofanallegationoffraud,dishonesty,orintentionalorgrosslynegligentbreachofduties,onconditionthatheshallrepaytheadvanceifanysuchallegationisprovedagainsthim.

3. Reviewing Party .PriortoanyChangeinControl,theReviewingPartyshallbeanyappropriatepersonorbodyconsistingofamemberor

membersoftheBoardoranyotherpersonorbodyappointedbytheBoardwhoisnotapartytotheparticularProceedingwithrespecttowhichIndemniteeisseekingindemnification;afteraChangeinControl,theIndependentCounselreferredtobelowshallbecometheReviewingParty.WithrespecttoallmattersarisingafteraChangeinControl(otherthanaChangeinControlapprovedbyamajorityofthedirectorsontheBoardwhoweredirectorsimmediatelypriortosuchChangeinControl)concerningtherightsofIndemniteetoindemnitypaymentsandExpenseAdvancesunderthisAgreementoranyotheragreementorunderapplicablelawortheCompany’sArticlesofAssociationnoworhereafterineffectrelatingtoindemnificationforIndemnifiableEvents,theCompanyshallseeklegaladviceonlyfromIndependentCounselselectedbyIndemniteeandapprovedbytheCompany(whichapprovalshallnotbeunreasonablywithheld),andwhohasnototherwiseperformedservicesfortheCompanyortheIndemnitee(otherthaninconnectionwithindemnificationmatters)withinthelastfiveyears.TheIndependentCounselshallnotincludeanypersonwho,undertheapplicablestandardsofprofessionalconductthenprevailing,wouldhaveaconflictofinterestinrepresentingeithertheCompanyorIndemniteeinanactiontodetermineIndemnitee’srightsunderthis

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Agreement.Suchcounsel,amongotherthings,shallrenderitswrittenopiniontotheCompanyandIndemniteeastowhetherandtowhatextenttheIndemniteeshouldbepermittedtobeindemnifiedunderapplicablelaw.Indoingso,theIndependentCounselmayconsultwith(andrelyupon)counselinanyappropriatejurisdiction(e.g.,_Switzerland)whowouldqualifyasIndependentCounsel(“LocalCounsel”).TheCompanyagreestopaythereasonablefeesoftheIndependentCounselandtheLocalCounselandtoindemnifyfullysuchcounselagainstanyandallexpenses(includingattorneys’fees),claims,liabilities,loss,anddamagesarisingoutoforrelatingtothisAgreementortheengagementofIndependentCounselortheLocalCounselpursuanthereto.

4. Indemnification Process and Appeal .

(a)IndemnificationPayment.IndemniteeshallbeentitledtoindemnificationofExpenses,andshallreceivepaymentthereof,fromtheCompanyinaccordancewiththisAgreementassoonaspracticableafterIndemniteehasmadewrittendemandontheCompanyforindemnification,unlesstheReviewingPartyhasgivenawrittenopiniontotheCompanythatIndemniteeisnotentitledtoindemnificationunderapplicablelaw.

(b)AdjudicationorArbitration.

(i)RegardlessofanyactionbytheReviewingParty,ifIndemniteehasnotreceivedfullindemnificationwithinthirtydaysaftermakingademandinaccordancewithSection4(a)(a“Nonpayment”),IndemniteeshallhavetherighttoenforceitsindemnificationrightsunderthisAgreementbycommencinglitigationinthecourtattheCompany’sdomicileasevidencedinthecommercialregister(the“CourtattheCompany’sdomicile”)orinanyfederalorstatecourtlocatedinNewYorkCounty,StateofNewYork(a“NewYorkCourt”)havingsubjectmatterjurisdictionthereofseekinganinitialdeterminationbythecourtorbychallenginganydeterminationbytheReviewingPartyoranyaspectthereof.AnydeterminationbytheReviewingPartynotchallengedbyIndemniteeinanysuchlitigationshallbebindingontheCompanyandIndemnitee.TheremedyprovidedforinthisSection4shallbeinadditiontoanyotherremediesavailabletoIndemniteeatlaworinequity.TheCompanyandIndemniteeherebyirrevocablyandunconditionally(A)agreethatanyactionorproceedingarisingoutoforinconnectionwiththisAgreementshallbebroughtonlyintheCourtattheCompany’sdomicileorinaNewYorkCourtandnotinanyothercourtintheUnitedStatesorinanyothercountry,(B)consenttosubmittotheexclusivejurisdictionoftheCourtattheCompany’sdomicileortheNewYorkCourtforpurposesofanyactionorproceedingarisingoutoforinconnectionwiththisAgreement,(C)waiveanyobjectiontothelayingofvenueoranysuchactionorproceedingintheCourtattheCompany’sdomicileorintheNewYorkCourt,and(D)waive,andagreenottopleadortomake,anyclaimthatanysuchactionorproceedingbroughtintheCourtattheCompany’sdomicileortheNewYorkCourthasbeenbroughtinanimproperorinconvenientforum.

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(ii)Alternatively,inthecaseofaNonpaymentIndemnitee,athisoption,mayseekanawardinarbitrationtobeconductedbyasingle

arbitratorpursuanttotheCommercialArbitrationRulesoftheAmericanArbitrationAssociation.

(iii)IntheeventthatadeterminationshallhavebeenmadepursuanttoSection3ofthisAgreementthatIndemniteeisnotentitledtoindemnification,anyjudicialproceedingorarbitrationcommencedpursuanttothisSection4(b)shallbeconductedinallrespectsasade novo trial,orarbitration,onthemerits,andIndemniteeshallnotbeprejudicedbyreasonofthatadversedetermination.InanyjudicialproceedingorarbitrationcommencedpursuanttothisSection4(b)theCompanyshallhavetheburdenofprovingIndemniteeisnotentitledtoindemnificationoradvancementofExpenses,asthecasemaybe.IfIndemniteecommencesajudicialproceedingorarbitrationpursuanttothisSection4(b),IndemniteeshallnotberequiredtoreimbursetheCompanyforanyadvancespursuanttoSection2(c)untilafinaldeterminationismadewithrespecttoIndemnitee’sentitlementtoindemnification(astowhichallrightsofappealhavebeenexhaustedorlapsed).

(iv)IntheeventthatIndemnitee,pursuanttothisSection4(b),seeksajudicialadjudicationoforanawardinarbitrationtoenforcehis

rightsunder,ortorecoverdamagesforbreachof,thisAgreement,IndemniteeshallbeentitledtorecoverfromtheCompany,andshallbeindemnifiedbytheCompanyagainst,anyandallExpensesactuallyandreasonablyincurredbyhiminsuchjudicialadjudicationorarbitration.IfitshallbedeterminedinsaidjudicialadjudicationorarbitrationthatIndemniteeisentitledtoreceivepartbutnotalloftheindemnificationoradvancementofExpensessought,theIndemniteeshallbeentitledtorecoverfromtheCompany,andshallbeindemnifiedbytheCompanyagainst,anyandallExpensesreasonablyincurredbyIndemniteeinconnectionwithsuchjudicialadjudicationorarbitration.

(c)DefensetoIndemnification,BurdenofProof,andPresumptions.

(i)ItshallbeadefensetoanyactionbroughtbyIndemniteeagainsttheCompanytoenforcethisAgreement(otherthananactionbroughtto

enforceaclaimforExpensesincurredindefendingaProceedinginadvanceofitsfinaldispositionwheretherequiredundertakinghasbeentenderedtotheCompany)thatitisnotpermissibleunderapplicablelawfortheCompanytoindemnifyIndemniteefortheamountclaimed.

(ii)InconnectionwithanyactionoranydeterminationbytheReviewingPartyorotherwiseastowhetherIndemniteeisentitledtobe

indemnifiedhereunder,theburdenofprovingsuchadefenseordeterminationshallbeontheCompany.

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(iii)NeitherthefailureoftheReviewingPartyortheCompany(includingitsBoard,independentlegalcounsel,oritsstockholders)tohave

madeadeterminationpriortothecommencementofsuchactionbyIndemniteethatindemnificationoftheIndemniteeisproperunderthecircumstancesbecauseIndemniteehasmetthestandardofconductsetforthinapplicablelaw,noranactualdeterminationbytheReviewingPartyorCompany(includingitsBoard,independentlegalcounsel,oritsstockholders)thattheIndemniteehadnotmetsuchapplicablestandardofconduct,shallbeadefensetotheactionorcreatedapresumptionthattheIndemniteehasnotmettheapplicablestandardofconduct.

(iv)ForpurposesofthisAgreement,tothefullestextentpermittedbylaw,theterminationofanyclaim,action,suit,orproceeding,by

judgment,order,settlement(whetherwithorwithoutcourtapproval),conviction,oruponapleaofnolocontendere,oritsequivalent,shallnot,ofitself,createapresumptionthatIndemniteedidnotmeetanyparticularstandardofconductorhaveanyparticularbelieforthatacourthasdeterminedthatindemnificationisnotpermittedbyapplicablelaw.

5. Indemnification for Expenses Incurred in Enforcing Rights .TheCompanyshallindemnifyIndemniteeagainstanyandallExpensesthat

areincurredbyIndemniteeinconnectionwithanyactionbroughtbyIndemnitee:

(a)asprovidedinSection4(b)(iv),forindemnificationoradvancepaymentofExpensesbytheCompanyunderthisAgreementoranyotheragreementorunderapplicablelawortheCompany’sArticlesofAssociationnoworhereafterineffectrelatingtoindemnificationforIndemnifiableEvents,and/or

(b)forrecoveryunderdirectors’andofficers’liabilityinsurancepoliciesmaintainedbytheCompany,butonlyintheeventthatIndemniteeultimatelyisdeterminedtobeentitledtosuchindemnificationorinsurancerecovery,asthecasemaybe.Inaddition,theCompanyshall,ifsorequestedbyIndemnitee,advancetheforegoingExpensestoIndemnitee,subjecttoandinaccordancewithSection2(c).

6. Notification and Defense of Proceeding .

(a)Notice.PromptlyafterreceiptbyIndemniteeofnoticeofthecommencementofanyProceeding,Indemniteeshall,ifaclaiminrespectthereofistobemadeagainsttheCompanyunderthisAgreement,notifytheCompanyofthecommencementthereof;buttheomissionsotonotifytheCompanywillnotrelievetheCompanyfromanyliabilitythatitmayhavetoIndemnitee,exceptasprovidedinSection6(c).

(b)Defense.WithrespecttoanyProceedingastowhichIndemniteenotifiestheCompanyofthecommencementthereof,theCompanywillbeentitledtoparticipate

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intheProceedingatitsownexpenseandexceptasotherwiseprovidedbelow,totheextenttheCompanysowishes,itmayassumethedefensethereofwithcounselreasonablysatisfactorytoIndemnitee.AfternoticefromtheCompanytoIndemniteeofitselectiontoassumethedefenseofanyProceeding,theCompanyshallnotbeliabletoIndemniteeunderthisAgreementorotherwiseforanyExpensessubsequentlyincurredbyIndemniteeinconnectionwiththedefenseofsuchProceedingotherthanreasonablecostsofinvestigationorasotherwiseprovidedbelow.IndemniteeshallhavetherighttoemploylegalcounselinsuchProceeding,butallExpensesrelatedtheretoincurredafternoticefromtheCompanyofitsassumptionofthedefenseshallbeatIndemnitee’sexpenseunless;(i)theemploymentoflegalcounselbyIndemniteehasbeenauthorizedbytheCompany,(ii)IndemniteehasreasonablydeterminedthattheremaybeaconflictofinterestbetweenIndemniteeandtheCompanyinthedefenseoftheProceeding,(iii)afteraChangeinControl(otherthanaChangeinControlapprovedbyamajorityofthedirectorsontheBoardwhoweredirectorsimmediatelypriortosuchChangeinControl),theemploymentofcounselbyIndemniteehasbeenapprovedbytheIndependentCounsel,or(iv)theCompanyshallnotinfacthaveemployedcounseltoassumethedefenseofsuchProceeding,ineachofwhichcasesallExpenseoftheProceedingshallbebornebytheCompany.TheCompanyshallnotbeentitledtoassumethedefenseofanyProceedingbroughtbyoronbehalfoftheCompanyorastowhichIndemniteeshallhavemadethedeterminationprovidedforin(ii),(iii)and(iv)above.

(c)SettlementofClaims.TheCompanyshallnotbeliabletoindemnifyIndemniteeunderthisAgreementorotherwiseforanyamountspaidinsettlementofanyProceedingeffectedwithouttheCompany’swrittenconsent,suchconsentnottobeunreasonablywithheld;provided,however,thatifaChangeinControlhasoccurred(otherthanaChangeinControlapprovedbyamajorityofthedirectorsontheBoardwhoweredirectorsimmediatelypriortosuchChangeinControl),theCompanyshallbeliableforindemnificationofIndemniteeforamountspaidinsettlementiftheIndependentCounselhasapprovedthesettlement.TheCompanyshallnotsettleanyProceedinginanymannerthatwouldimposeanypenaltyorlimitationonIndemniteewithoutIndemnitee’swrittenconsent.TheCompanyshallnotbeliabletoindemnifytheIndemniteeunderthisAgreementwithregardtoanyjudicialawardiftheCompanywasnotgivenareasonableandtimelyopportunity,atitsexpense,toparticipateinthedefenseofsuchaction;theCompany’sliabilityhereundershallnotbeexcusedifparticipationintheProceedingbytheCompanywasbarredbythisAgreement.

7. Establishment of Trust .IntheeventofaChangeinControl(otherthanaChangeinControlapprovedbyamajorityofthedirectorsontheBoardwhoweredirectorsimmediatelypriortosuchChangeinControl)theCompanyshall,uponwrittenrequestbyIndemnitee,createatrustforthebenefitoftheIndemnitee(the“Trust”)andfromtimetotimeuponwrittenrequestofIndemniteeshallfundtheTrustinanamountsufficienttosatisfyanyandallExpensesreasonablyanticipatedatthetimeofeachsuchrequesttobeincurredinconnectionwithinvestigating,preparingfor,participatingin,and/ordefendinganyProceedingrelatingtoanIndemnifiableEvent.TheamountoramountstobedepositedintheTrustpursuanttotheforegoingfundingobligationshallbe

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determinedbytheIndependentCounsel.ThetermsoftheTrustshallprovidethat(i)theTrustshallnotberevokedortheprincipalthereofinvadedwithoutthewrittenconsentoftheIndemnitee,(ii)theTrustee(asdefinedbelow)shalladvance,withinfivebusinessdaysofarequestbytheIndemnitee,anyandallExpensestotheIndemnitee(andtheIndemniteeherebyagreestoreimbursetheTrustunderthesamecircumstancesforwhichtheIndemniteewouldberequiredtoreimbursetheCompanyunderSection2(c)ofthisAgreement),(iii)theTrustshallcontinuetobefundedbytheCompanyinaccordancewiththefundingobligationsetforthabove,(iv)theTrusteeshallpromptlypaytotheIndemniteeallamountsforwhichtheIndemniteeshallbeentitledtoindemnificationpursuanttothisAgreementorotherwise,and(v)allunexpendedfundsintheTrustshallreverttotheCompanyuponafinaldeterminationbytheIndependentCounseloracourtofcompetentjurisdiction,asthecasemaybe,thattheIndemniteehasbeenfullyindemnifiedunderthetermsofthisAgreement.ThetrusteeoftheTrust(the“Trustee”)shallbechosenbytheIndemnitee.NothinginthisSection7shallrelievetheCompanyofanyofitsobligationsunderthisAgreement.AllincomeearnedontheassetsheldintheTrustshallbereportedasincomebytheCompanyforfederal,state,local,andforeigntaxpurposes.TheCompanyshallpayallcostsofestablishingandmaintainingtheTrustandshallindemnifytheTrusteeagainstanyandallexpenses(includingattorney’sfees),claims,liabilities,loss,anddamagesarisingoutoforrelatingtothisAgreementortheestablishmentandmaintenanceoftheTrust.

8. Non-Exclusivity .TherightsofIndemniteehereundershallbeinadditiontoanyotherrightsIndemniteemayhaveundertheCompany’sArticlesofAssociation,applicablelaw,orotherwise;provided,however,thatthisAgreementshallsupersedeanypriorindemnificationagreementbetweentheCompanyandtheIndemnitee.Totheextentthatachangeinapplicablelaw(whetherbystatuteorjudicialdecision)permitsgreaterindemnificationthanwouldbeaffordedcurrentlyundertheCompany’sArticlesofAssociation,applicablelaw,orthisAgreement,itistheintentofthepartiesthatIndemniteeenjoybythisAgreementthegreaterbenefitssoaffordedbysuchchange.

9. Liability Insurance .TotheextenttheCompanymaintainsaninsurancepolicyorpoliciesprovidinggeneraland/ordirectors’andofficers’liabilityinsurance,Indemniteeshallbecoveredbysuchpolicyorpolicies,inaccordancewithitsortheirterms,tothemaximumextentofthecoverageavailableforanyCompanydirectororofficer.

10. Continuation of Contractual Indemnity or Period of Limitations .AllagreementsandobligationsoftheCompanycontainedhereinshallcontinueforsolongasIndemniteeshallbesubjectto,orinvolvedin,anyproceedingforwhichindemnificationisprovidedpursuanttothisAgreement.

11. Amendment of this Agreement .Nosupplement,modification,oramendmentofthisAgreementshallbebindingunlessexecutedinwritingbybothofthepartieshereto.NowaiverofanyoftheprovisionsofthisAgreementshallbebindingunlessintheformofawritingsignedbythepartyagainstwhomenforcementofthewaiverissought,andnosuchwaivershalloperateasacontinuingwaiver.Except,as

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specificallyprovidedherein,nofailuretoexerciseoranydelayinexercisinganyrightorremedyhereundershallconstituteawaiverthereof.

12. Subrogation .IntheeventofpaymentunderthisAgreement,theCompanyshallbesubrogatedtotheextentofsuchpaymenttoalloftherightsofrecoveryofIndemnitee,whoshallexecuteallpapersrequiredandshalldoeverythingthatmaybenecessarytosecuresuchrights,includingtheexecutionofsuchdocumentsnecessarytoenabletheCompanyeffectivelytobringsuittoenforcesuchrights.

13. No Duplication of Payments .TheCompanyshallnotbeliableunderthisAgreementtomakeanypaymentinconnectionwithanyclaimmadeagainstIndemniteetotheextentIndemniteehasotherwisereceivedpayment(underanyinsurancepolicy,ArticlesofAssociation,orotherwise)oftheamountsotherwiseindemnifiablehereunder.

14. Binding Effect .ThisAgreementshallbebindinguponandinuretothebenefitofandbeenforceablebythepartiesheretoandtheirrespectivesuccessors(includinganydirectorindirectsuccessorbypurchase,merger,consolidation,orotherwisetoallorsubstantiallyallofthebusinessand/orassetsoftheCompany),assigns,spouses,heirs,andpersonalandlegalrepresentatives.TheCompanyshallrequireandcauseanysuccessor(whetherdirectorindirectbypurchase,merger,consolidation,orotherwise)toall,substantiallyall,orasubstantialpart,ofthebusinessand/orassetsoftheCompany,bywrittenagreementinformandsubstancesatisfactorytoIndemnitee,expresslytoassumeandagreetoperformthisAgreementinthesamemannerandtothesameextentthattheCompanywouldberequiredtoperformifnosuchsuccessionhadtakenplace.TheindemnificationprovidedunderthisAgreementshallcontinueastoIndemniteeforanyactiontakenornottakenwhileservinginanindemnifiedcapacitypertainingtoanIndemnifiableEventeventhoughhemayhaveceasedtoserveinsuchcapacityatthetimeofanyProceedingorisdeceasedandshallinuretothebenefitoftheheirs,executors,administrators,legateesandassignsofsuchaperson.

15. Severability .Ifanyprovision(orportionthereof)ofthisAgreementshallbeheldbyacourtofcompetentjurisdictiontobeinvalid,void,orotherwiseunenforceable,theremainingprovisionsshallremainenforceabletothefullestextentpermittedbylaw.Furthermore,tothefullestextentpossible,theprovisionsofthisAgreement(including,withoutlimitation,eachportionofthisAgreementcontaininganyprovisionheldtobeinvalid,void,orotherwiseunenforceablethatisnotitselfinvalid,voidorunenforceable)shallbeconstruedsoastogiveeffecttotheintentmanifestedbytheprovisionheldinvalid,voidorunenforceable.

16. Governing Law .ThisAgreementshallbegovernedbyandconstruedandenforcedinaccordancewiththesubstantivelawsofSwitzerlandapplicabletocontractsmadeandtobeperformedinsuchjurisdictionwithoutgivingeffectstoitsprinciplesofconflictsoflaws.

11

17. Notices .Allnotices,demands,andothercommunicationsrequiredorpermittedhereundershallbemadeinwritingandshallbedeemedto

havebeendulygivenifdeliveredbyhand,againstreceipt,ormailed,postageprepaid,certifiedorregisteredmail,returnreceiptrequested,andaddressedtotheCompanyat:

TEConnectivityLtd..Rheinstrasse208200SchaffhausenSwitzerlandAttention:CorporateSecretary

AndtoIndemniteeat:NoticeofchangeofaddressshallbeeffectiveonlywhengiveninaccordancewiththisSection.AllnoticescomplyingwiththisSectionshallbedeemedtohavebeenreceivedonthedateofhanddeliveryoronthedayofactualreceipt.

18. Counterparts .ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument.

12

INWITNESSWHEREOF,thepartiesheretohavedulyexecutedanddeliveredthisAgreementasthedayspecifiedabove.

COMPANYBy:TEConnectivityLtd.Its:INDEMNITEE

13

Exhibit 21.1

Subsidiaries of the RegistrantThefollowingisalistofsubsidiariesoftheRegistrantasofNovember8,2016,omittingsomesubsidiarieswhich,consideredintheaggregate,wouldnotconstituteasignificantsubsidiary.Jurisdiction

Entity NameArgentina

TEConnectivityArgentinaS.R.L.

TycoNetworks(Argentina)S.R.L.

TycoSubmarineSystemsdeArgentinaS.A. Australia

ClareburyPty.Ltd.

GrangehurstEnterprisesPty.Ltd.

MorlynnCeramicsPty.Ltd.

TappatEngineeringPtyLtd

TEConnectivityAustraliaPtyLtd Austria

TycoElectronicsAustriaGmbH Barbados

CorcomWestIndiesLimited

TEConnectivity(Barbados)SRL Belgium

RaychemIndustriesBVBA

TycoElectronicsBelgiumECBVBA Bermuda

TycoElectronicsEtaLimited

TycoElectronicsHoldings(Bermuda)No.7Limited

TycoElectronicsLambda

TycoGlobalNetworksLtd.

TycoTelecommunicationsLtd. Brazil

CelisEletrocomponentesLtda.

SeaconProdutoseServicosOpticoseEletricosLtda.

TycoElectronicsBrasilLtda. British Virgin Islands

CommunicationExpertInternationalInvestmentsLimited

KenabellHoldingLimited Canada

TEConnectivityULC

TycoElectronicsCanadaULC Chile

ADCChileLimitada

TycoElectronicsIndustrialYComercialChileLimitada China

ADCTelecommunicationsEquipment(Shanghai)Co.,Ltd.

DeutschConnectorsManufacturing(Shanghai)Co.,Ltd.

DeutschConnectorsTrading(Shanghai)Co.,Ltd.

IntercontecConnectorSystem(Shanghai)Co.,Ltd.

MEASShenzhenLimited

MeasurementSpecialties(Chengdu)Ltd.

MeasurementSpecialties(China)Ltd.

MeasurementSpecialties(China)Ltd.ProductionBranch

MeasurementTechnology(Chengdu)Ltd.

RaychemShanghaiCableAccessoriesLtd

Raychem(Shanghai)TradingLtd

ShanghaiCIIElectronicsCo.,Ltd(50%)

ShenzhenCenturyManCommunicationEquipmentCo.,Ltd.

SibasElectronics(Xiamen)Co.,Ltd.

TaicangSpeed&SpinSensorsCo.,Ltd.

TEConnectivityConnectors(Suzhou)Co.,Ltd.

TEConnectivity(Kunshan)CompanyLimited

TEConnectivity(Suzhou)Co.,Ltd.

TycoElectronicsAMPGuangdongLtd

TycoElectronicsAMPQingdaoLtd.

TycoElectronicsAMPShanghaiLtd.(92.31%)

TycoElectronics(Dongguan)Ltd

TycoElectronics(Kunshan)Ltd

TycoElectronics(Qingdao)Ltd.

TycoElectronics(Shanghai)Co.,Ltd

TycoElectronics(Shenzhen)Co.Ltd.

TycoElectronics(Suzhou)Ltd.

TycoElectronicsTechnology(SIP)Ltd.

TycoElectronicsTechnology(SIP)Co.,Ltd.BranchNo.1

TycoElectronics(Zhuhai)Ltd

WemaEnvironmentalTechnologies(Shanghai)Co.,Ltd.

WemaEnvironmentalTechnologies(Shenzhen)Co.,Ltd. Colombia

TEConnectivityColombiaS.A.S. Costa Rica

CregannaMedicals.r.l.

TechDeviceCostaRicaLimitada Cyprus

AcalonHoldingsLimited

RaychemTechnologiesLimited Czech Republic

TycoElectronicsCzechs.r.o.

TycoElectronicsECTrutnovs.r.o. Denmark

TEConnectivity(Denmark)ApS Dominican Republic

RaychemDominicanaS.A. Finland

TycoElectronicsFinlandOy France

ButterflyManagementSAS

CarrierKheopsBacSAS

CompagnieDeutschDistributionSAS

CompagnieDeutschSAS

ConnecteursElectriquesDeutschSAS

DeutschFinanceSAS

DeutschGroupSAS

DeutschSAS

MEASEuropeSAS

MEASFranceSAS

TycoElectronicsFranceSAS

TycoElectronicsGroupS.A.(FrenchBranch)

TycoElectronicsHoldingFrance

TycoElectronicsIdento

TycoElectronicsSIMELSAS Germany

CablotecGmbH

ComtecSystemeGmbH

IntercontectPfeifferIndustrie-SteckverbindungenGmbH

IntercontecProduktGmbH

motecMontageGmbH

PfeifferGmbH&CoKG

PfeifferVerwaltungsGmbH

TEConnectivityEMEAHoldingGmbH

TEConnectivityGermanyGmbH

TycoElectronicsECVerwaltungsgesellschaftmbH

TycoElectronicsGermanyHoldingsGmbH

TycoElectronicsRaychemGmbH

TEConnectivitySensorsGermanyGmbH

TycoElectronicsVerwaltungsGmbH Gibraltar

TycoElectronicsChina(Gibraltar)Limited

TycoElectronics(Gibraltar)HoldingLimited

TycoElectronics(Gibraltar)Limited

TycoElectronicsIndia(Gibraltar)Limited Greece

TycoElectronicsHellasMEPE Guernsey

CregstarBidcoLimited Hong Kong

ADCCommunicationsHongKongLimited

AMPProductsPacificLimited

DeutschConnectorsHongKongLimited

F.A.I.Technology(HongKong)Limited

HongKongSensorsTechnologiesLimited

MEASAsiaLimited

RaychemChinaLimited

Raychem(HK)Limited

TEConnectivityHKLimited

TEConnectivity(HKZ)HoldingLimited

TycoElectronicsH.K.Limited

TycoElectronicsHongKongHoldingsNo.1Limited

TycoElectronicsHongKongHoldingsNo.2Limited

TycoElectronicsHongKongHoldingsNo.3Limited

WemaSystemHongKongLimited

WemaSystemProductionandDistributionHKLimited Hungary

TycoElectronicsHungaryTermeloKft India

CIIGuardianInternationalLimited(39.431%)

DeutschIndiaPowerConnectors(Pvt)Ltd

RAYCHEM-RPGPrivateLimited(50%)

TEConnectivityIndiaPrivateLimited

TEConnectivityServicesIndiaPrivateLimited

WemaAutomotiveSystemPrivateLimited Indonesia

PTKRONEIndonesia(70%)

PT.TycoElectronicsIndonesia Ireland

Betatherm(R&D)Limited

CregannaCaptialHoldingIrelandUnlimitedCompany

CregannaFinanceIrelandLimited

CregannaSolutionsUnlimitedCompany

CregannaTactxSingaporeLimited

CregannaUnlimitedCompany

MEASIreland(Betatherm)Limited

TEConnectivityHoldingInternationalIIS.àr.l.(IrelandBranch)

TEConnectivityIrelandLimited

TEConnectivity(Netherlands)HoldingS.ar.l.-IrishBranch

TycoElectronicsGroupS.A.(IrelandBranch)

TycoElectronicsIrelandLimited Isle of Man

CregannaMedicalTechnologyUnlimited

CregannaSolutionsLimited Israel

DeutschIsraelLtd.

RaychemLtd.

TycoElectronicsIsraelLtd. Italy

TycoElectronicsAMPItaliaProductsS.R.L.

TycoElectronicsAMPItaliaS.R.L.

TycoElectronicsItaliaHoldingS.r.l.

TycoNetworks(Italy)Srl Japan

LADDDistributionLimited

Nikkiso-ThermCo.,Ltd.(50.06%)

TycoElectronicsJapanG.K. Kenya

TycoElectronicsUKLtd.(KenyaBranch) Luxembourg

CregannaLuxembourgSARL

TCNHolding(Luxembourg)S.a.r.l.(enliquidation)

TEConnectivityHoldingInternationalS.A.

TEConnectivityHoldingInternationalIIS.ar.l.

TEConnectivityInvestmentsHoldingS.A.

TEConnectivityLATAMHoldingS.àr.l.

TEConnectivityLATAMIS.àr.l.

TEConnectivityLATAMIIS.àr.l.

TEConnectivityMOGEuropeS.ar.l.

TEConnectivityMOGHoldingS.ar.l.

TycoElectronicsFinanceS.ar.l.

TycoElectronicsGroupS.A.

TycoElectronicsHoldingS.ar.l.

TycoElectronicsNetherlands(GermanyHolding)S.àr.l.

TyComHoldingsIISA Malaysia

TEConnectivityManufacturingSdn.Bhd.

TycoElectronics(Malaysia)Sdn.Bhd. Malta

TycoElectronics(AMPKorea)MaltaLimited

TycoElectronics(Korea)MaltaLimited Marshall Islands

C.S.TycoDecisiveInc.

C.S.TycoDependableInc.

C.S.TycoDurableInc.

C.S.TycoRelianceInc.

C.S.TycoResoluteInc.

C.S.TycoResponderInc. Mexico

AMPAmermex,S.A.deC.V.

CimadeAcunaS.A.deC.V.

Corcom,S.A.deC.V.

DeutschServiciosS.deR.L.DeC.V.

KemexHoldingCompany,S.A.deC.V.

Potter&BrumfielddeMexico,S.A.deC.V.

RaychemJuarez,S.A.deC.V.

SeaconGlobalProduction,S.deR.L.deC.V.

TycoElectronicsMexico,S.deR.L.deC.V.

TycoElectronicsTecnologiasS.deR.L.deC.V.

TycoSubmarineSystems,S.A.deC.V. Morocco

TEConnectivityMoroccoSARL Netherlands

AMPTaiwanB.V.

AMPTradingB.V.

TEConnectivityNederlandB.V.

TEConnectivityNetherlandsCooperatiefU.A.

TEConnectivityNetherlands(PolandII)CooperatiefU.A.

TEConnectivityNetherlands(Turkey)B.V.

TycoElectronicsNetherlands(GibraltarChina)CooperatiefU.A.

TycoElectronicsNetherlands(GibraltarIndia)CooperatiefU.A.

TycoElectronicsNetherlandsHoldingB.V.

TycoElectronicsNetherlands(India)CooperatiefU.A.

TycoElectronicsWirelessSystemsB.V.

TycoNetworks(Netherlands)B.V. New Zealand

TycoElectronicsNZLimited Nigeria

TEConnectivityTechnologySolutionsLimited Norway

MEASNorwayAS

PrecisionSubseaAS

TycoElectronicsNorgeAS

WemaSystemAS Panama

TYCOSUBMARINESYSTEMS,INC. Peru

TycoElectronicsDelPeruS.A.C.

TyComNetworks(Peru)S.A. Philippines

TycoElectronicsPhilippines,Inc. Poland

TYCOElectronicsPolskaSp.z.o.o. Portugal

TycoElectronicsComponentesElectromecanicosLda. Russia

TycoElectronicsRUSOOO Saudi Arabia

RaychemSaudiArabiaLimited(49%)

TycoElectronicsSaudiArabiaLimited Singapore

ADCCommunications(SEA)Pte.Ltd.

CregannaMedicalPte.Limited

CromptonInstruments(South-EastAsia)Pte.Ltd.

TycoElectronicsAMPManufacturing(S)PteLtd

TycoElectronicsManufacturingSingaporePteLtd

TycoElectronicsSingaporePteLtd South Africa

TEConnectivitySouthAfricaProprietaryLimited South Korea

AdvancedTubeTechnologies,Ltd.

TycoElectronicsAMPKoreaCo.,Ltd.

TycoElectronicsRaychemKoreaLimited Spain

TEConnectivitySpain,S.L.U.

TEConnectivitySubComS.L.U.

TEConnectivitySubComSpainHoldingS.L.U.

TycoIberia,S.L.

TycoNetworksIberica,S.L. Sweden

TycoElectronicsSvenskaAB

TycoElectronicsSvenskaHoldingsAB Switzerland

JaquetTechnologyGroupAG

MEASSwitzerlandS.ar.l.

TEConnectivityHoldingInternationalIIS.ar.l.,Luxembourg(LU),Schaffhausenbranch

TEConnectivityHoldingInternationalIIS.ar.l.,Luxembourg(LU),SchaffhausenE-Financebranch

TEConnectivityMOGSalesGmbH

TEConnectivityInvestmentsHoldingS.A.,Luxembourg(LU),Schaffhausenbranch

TEConnectivitySolutionsGmbH

TycoElectronicsFinanceAlphaGmbH

TycoElectronics(Schweiz)HoldingIIGmbH

TEConnectivity(Schweiz)ManagementAG

TycoElectronicsServicesGmbH

TycoInternationalServicesGmbH(49.9375%)

WemaSystemAG Taiwan

RaychemPacificCorporation(50%)

TaliqTaiwanLimited

TycoElectronicsHoldings(Bermuda)No.7Limited,TaiwanBranch Thailand

TEConnectivityDistribution(Thailand)Limited

TEConnectivityManufacturing(Thailand)CompanyLimited

WemaEnvironmentalTechnologiesLtd. Tunisia

TEConnectivityTunisiaSarl Turkey

TycoElektronikAMPTicaretLimitedSirketi Ukraine

TycoElectronicsUkraineLimited United Arab Emirates

TycoElectronicsMiddleEastFZE United Kingdom

ADCCommunications(UK)HoldingLtd.

ADCCommunications(UK)Ltd.

AdvancedFiberProductsLimited

CritchleyGroupLimited

DeutschGBLimited

DeutschSubcoLimited

DeutschUK

PolamcoLimited

RaychemLimited

Seacon(Europe)Limited

ServoInterconnectLimited

TEConnectivityLimited

TycoElectronicsCorbyLimited

TycoElectronicsMotorsLtd

TycoElectronicsPrecisionEngineeringLtd.

TycoElectronicsUKHoldingsLtd

TycoElectronicsUKLtd. United States

999ArquesCorp.(37.5%)

AdvancedCathTechnologies,LLC

AdvancedFiberProductsLLC

AmericanSensorTechnologies,Inc.

BrantnerandAssociates,Inc.

BrantnerHoldingCompany

CatheterandDisposableTechnology,Inc.

CodenollTechnologyCorporation(73.988%)

CotsworksLLC(40%)

CregannaFinance(US)LLC

CregannaMedicalDevices,Inc.

CregannaRegulatory,Inc.

HowardA.SchaevitzTechnologies,Inc.

JaquetNorthAmerica,Inc.

LADDDistributionLLC

LSA,LLC

MEASUSHolding,Inc.

MeasurementSpecialtiesForeignHoldingsLLC

MeasurementSpecialties,Inc.

MedicalEngineering&Design,Inc.

MP&E,LLC

PrecisionInterconnectLLC

PrecisionWireComponents,LLC

PrecisionWireHoldingCompany

Produxx,Inc.

RaychemInternationalLLC

RaychemInternationalManufacturingLLC

RochesterWireandCableLLC

SEACONAdvancedProductsLLC

TacPro,LLC

TactxMedical,Inc.

TEConnectivityInc.

TEConnectivityMOGInc.

TEConnectivityPhoenixOptixInc.

TEConnectivitySeaconPhoenixInc.

TEConnectivityUSGroupHoldingInc.

TechDeviceLLC

TechDeviceHoldings,LLC

TheWhitakerLLC

TransoceanicCableShipCompanyLLC

TycoElectronicsCorporation

TycoElectronicsHoldingCorp.

TycoElectronicsIntegratedCableSystemsLLC

TycoElectronicsLatinAmericaHoldingLLC

TycoElectronicsPrintedCircuitGroupLP

TycoElectronicsRIMCHoldingLLC

TycoElectronicsSubseaCommunicationsLLC

WemaAmericasLLC Uruguay

TycoElectronicsUruguayS.A. Venezuela

AMPdeVenezuela,C.A.

TycoElectronicsdeVenezuela,C.A.

TycoSubmarineSystems,C.A. Vietnam

TEConnectivityVietnamHoldingCompanyLimited

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Exhibit23.1

CONSENTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

WeconsenttotheincorporationbyreferenceintheRegistrationStatementsonFormS-3(FileNos.333-193380and333-212771)andFormS-8(FileNos.333-180085,333-144355,333-144369,333-167445,and333-171127)ofourreportsdatedNovember15,2016,relatingtotheconsolidatedfinancialstatementsandfinancialstatementscheduleofTEConnectivityLtd.andsubsidiariesandtheeffectivenessofTEConnectivityLtd.andsubsidiaries'internalcontroloverfinancialreportingappearinginthisAnnualReportonForm10-KofTEConnectivityLtd.andsubsidiariesforthefiscalyearendedSeptember30,2016.

/s/Deloitte&ToucheLLP

Philadelphia,PennsylvaniaNovember15,2016

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Exhibit23.1

CONSENTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

EXHIBIT 24.1

POWER OF ATTORNEYKNOW ALL PERSONS BY THESE PRESENTS:

Thateachpersonwhosesignatureappearsbelow,asaDirectorofTEConnectivityLtd.(the“Company”),aSwisscorporationwithitsgeneralofficesatRheinstrasse20,CH-8200Schaffhausen,Switzerland,doesherebymake,constituteandappointThomasJ.Lynch,ChiefExecutiveOfficer,HeathA.Mitts,ExecutiveVicePresidentandChiefFinancialOfficer,JohnS.Jenkins,Jr.,ExecutiveVicePresidentandGeneralCounsel,oranyoneofthemactingalone,hisorhertrueandlawfulattorneys,withfullpowerofsubstitutionandresubstitution,inhisorhername,placeandstead,inanyandallcapacities,toexecuteandsigntheCompany’sAnnualReportonForm10-KforthefiscalyearendedSeptember30,2016,andanyandallamendmentsthereto,anddocumentsinconnectiontherewith,tobefiledwiththeSecuritiesandExchangeCommissionundertheSecuritiesExchangeActof1934,asamended,givingandgrantinguntosaidattorneysfullpowerandauthoritytodoandperformsuchactionsasfullyastheymighthavedoneorcoulddoifpersonallypresentandexecutinganyofsaiddocuments.

Datedandeffectiveasofthe14 ofNovember2016./s/ThomasJ.Lynch

/s/YongNamThomasJ.Lynch,Director

YongNam,Director /s/PierreR.Brondeau

/s/DanielJ.PhelanPierreR.Brondeau,Director

DanielJ.Phelan,Director /s/TerrenceR.Curtin

/s/PaulaA.SneedTerrenceR.Curtin,Director

PaulaA.Sneed,Director /s/CarolA.Davidson

/s/MarkC.TrudeauCarolA.Davidson,Director

MarkC.Trudeau,Director /s/JuergenW.Gromer

/s/JohnC.VanScoterJuergenW.Gromer,Director

JohnC.VanScoter,Director /s/WilliamA.Jeffrey

/s/LauraH.WrightWilliamA.Jeffrey,Director

LauraH.Wright,Director

th

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Exhibit31.1

CERTIFICATIONOFCHIEFEXECUTIVEOFFICER

I,ThomasJ.Lynch,certifythat:

1. IhavereviewedthisAnnualReportonForm10-KofTEConnectivityLtd.;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and

5. Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions);

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.

Date:November15,2016

/s/THOMASJ.LYNCH

ThomasJ.LynchChiefExecutiveOfficer

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Exhibit31.1

CERTIFICATIONOFCHIEFEXECUTIVEOFFICER

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Exhibit31.2

CERTIFICATIONOFCHIEFFINANCIALOFFICER

I,HeathA.Mitts,certifythat:

1. IhavereviewedthisAnnualReportonForm10-KofTEConnectivityLtd.;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and

5. Theregistrant'sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeoftheregistrant'sboardofdirectors(orpersonsperformingtheequivalentfunctions);

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant'sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant'sinternalcontroloverfinancialreporting.

Date:November15,2016

/s/HEATHA.MITTS

HeathA.MittsExecutiveVicePresidentandChiefFinancialOfficer

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Exhibit31.2

CERTIFICATIONOFCHIEFFINANCIALOFFICER

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Exhibit32.1

TECONNECTIVITYLTD.CERTIFICATIONPURSUANTTO

SECTION906OFTHESARBANES-OXLEYACTOF2002

TheundersignedofficersofTEConnectivityLtd.(the"Company")herebycertifytotheirknowledgethattheCompany'sannualreportonForm10-KforthefiscalyearendedSeptember30,2016(the"Report"),asfiledwiththeSecuritiesandExchangeCommissiononthedatehereof,fullycomplieswiththerequirementsofSection13(a)or15(d),asapplicable,oftheSecuritiesExchangeActof1934,asamended,andthattheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

/s/THOMASJ.LYNCH

ThomasJ.LynchChiefExecutiveOfficerNovember15,2016

/s/HEATHA.MITTS

HeathA.MittsExecutiveVicePresidentandChiefFinancialOfficerNovember15,2016

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Exhibit32.1

TECONNECTIVITYLTD.CERTIFICATIONPURSUANTTOSECTION906OFTHESARBANES-OXLEYACTOF2002