TE Connectivity plc Leases Disclosure
11. Leases
The components of lease cost were as follows:
Fiscal | ||||||||||
| 2025 |
| 2024 |
| 2023 |
| ||||
| (in millions) |
| ||||||||
Operating lease cost | $ | 145 | $ | 134 | $ | 129 | ||||
Variable lease cost | 57 | 53 | 55 | |||||||
Total lease cost | $ | 202 | $ | 187 | $ | 184 | ||||
Amounts recognized on the Consolidated Balance Sheets were as follows:
Fiscal Year End | |||||||
| 2025 |
| 2024 | ||||
| ($ in millions) | ||||||
Operating lease ROU assets: | |||||||
$ | 479 | $ | 433 | ||||
Operating lease liabilities: | |||||||
$ | 126 | $ | 128 | ||||
365 | 313 | ||||||
Total operating lease liabilities | $ | 491 | $ | 441 | |||
Weighted-average remaining lease term (in years) | 5.7 | 5.5 | |||||
Weighted-average discount rate | 3.4 | % | 3.4 | % | |||
Cash flow information, including significant non-cash transactions, related to leases was as follows:
Fiscal | ||||||||||
| 2025 |
| 2024 |
| 2023 |
| ||||
| (in millions) |
| ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||
Payments for operating leases(1) | $ | 148 | $ | 141 | $ | 127 | ||||
ROU assets, including modifications of existing leases, obtained in exchange for operating lease liabilities | 183 | 180 | 106 | |||||||
| (1) | These payments are included in cash flows from operating activities, primarily in changes in accrued and other current liabilities. |
At fiscal year end 2025, the maturities of operating lease liabilities were as follows:
| (in millions) |
| ||
Fiscal 2026 | $ | 126 | ||
Fiscal 2027 | 107 | |||
Fiscal 2028 | 86 | |||
Fiscal 2029 | 62 | |||
Fiscal 2030 | 50 | |||
Thereafter | 117 | |||
Total lease payments | 548 | |||
Less: interest | (57) | |||
Present value of lease liabilities | $ | 491 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 10, 2025 | Showing above |
| 2024 | Nov 12, 2024 | |
| 2023 | Nov 13, 2023 | |
| 2022 | Nov 15, 2022 | |
| 2021 | Nov 9, 2021 | |
| 2020 | Nov 10, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.