“Organic Sales Growth,” “Adjusted Operating Margin,” “Adjusted  Operating Income,” “Adjusted Earnings Per Share,” and “Free Cash  Flow” (FCF) are non-GAAP measures and should not be considered  replacements for GAAP* results. (*U.S. Generally Accepted  Accounting Principles)  “Organic Sales Growth” is a useful measure used by us to measure  the underlying results and trends in the business. The di ff erence  between reported net sales growth (the most comparable GAAP  measure) and Organic Sales Growth (the non-GAAP measure)  consists of the impact from foreign currency exchange rates and  acquisitions and divestitures, if any. Organic Sales Growth is a useful  measure of our performance because it excludes items that: i) are  not completely under management’s control, such as the impact  of changes in foreign currency exchange rates; or ii) do not reflect  the underlying growth of the company, such as acquisition and  divestiture activity. The limitation of this measure is that it excludes  items that have an impact on our sales. This limitation is best  addressed by using Organic Sales Growth in combination with the  GAAP results.  We present operating margin before special items including charges  or income related to legal settlements and reserves, restructuring  and other charges, acquisition related charges, impairment charges  and other income or charges, if any (“Adjusted Operating Margin”).  We present Adjusted Operating Margin before special items to give  investors a perspective on the underlying business results. It also  is a significant component in our incentive compensation plans.  This measure should be considered in conjunction with operating  margin calculated using our GAAP results in order to understand the  amounts, character and impact of adjustments to operating margin. We present operating income before special items including charges  or income related to legal settlements and reserves, restructuring  and other charges, acquisition related charges, impairment charges  and other income or charges, if any (“Adjusted Operating Income”).  We utilize Adjusted Operating Income to assess segment-level core  operating performance and to provide insight to management  in evaluating segment operating plan execution and underlying  market conditions. It also is a significant component in our  incentive compensation plans. Adjusted Operating Income is a  useful measure for investors because it provides insight into our  underlying operating results, trends and the comparability of  these results between periods. The di ff erence between Adjusted  Operating Income and operating income (the most comparable  GAAP measure) consists of the impact of charges or income  related to legal settlements and reserves, restructuring and other  charges, acquisition related charges, impairment charges and other  income or charges, if any, that may mask the underlying operating  results and/or business trends. The limitation of this measure is  that it excludes the financial impact of items that would otherwise  either increase or decrease our reported operating income. This  limitation is best addressed by using Adjusted Operating Income in  combination with operating income (the most comparable GAAP  measure) in order to better understand the amounts, character and  impact of any increase or decrease on reported results. We present diluted earnings per share from continuing operations  attributable to TE Connectivity Ltd. before special items, including  charges or income related to legal settlements and reserves,  restructuring and other charges, acquisition related charges,  impairment charges, tax sharing income related to certain proposed  adjustments to prior period tax returns and other tax items, certain  significant special tax items, other income or charges, if any, and, if  applicable, related tax e ff ects (“Adjusted Earnings Per Share”). We  present Adjusted Earnings Per Share because we believe that it is  appropriate for investors to consider results excluding these items  in addition to results in accordance with GAAP. We believe such a  measure provides a picture of our results that is more comparable  Because we do not predict the amount and timing of special  items that might occur in the future, and our forecasts  are developed at a level of detail different than that used  to prepare GAAP-based financial measures, we do not  provide reconciliations to GAAP of our forward-looking financial measures. FCF as presented herein may not be comparable to similarly-titled  measures reported by other companies. The primary limitation  of this measure is that it excludes items that have an impact on  our GAAP cash flow. Also, it subtracts certain cash items that  are ultimately within management’s and the Board of Directors’  discretion to direct and may imply that there is less or more cash  available for our programs than the most comparable GAAP  measure indicates. This limitation is best addressed by using FCF  in combination with the GAAP cash flow results. It should not be  inferred that the entire free cash flow amount is available for future  discretionary expenditures, as our definition of free cash flow  does not consider certain non-discretionary expenditures, such  as debt payments. In addition, we may have other discretionary  expenditures, such as discretionary dividends, share repurchases  and business acquisitions, that are not considered in the calculation  of free cash flow.  FCF is defined as net cash provided by continuing operating  activities excluding voluntary pension contributions and the cash  impact of special items, if any, minus net capital expenditures. Net  capital expenditures consist of capital expenditures less proceeds  from the sale of property, plant and equipment. They are subtracted  because they represent long-term commitments. Voluntary pension  contributions are excluded from the GAAP measure because this  activity is driven by economic financing decisions rather than  operating activity. Certain special items, including net payments  related to pre-separation tax matters, also are considered by  management in evaluating free cash flow. We believe investors  should also consider these items in evaluating our free cash flow.  We forecast our cash flow results excluding any voluntary pension  contributions because we have not yet made a determination about  the amount and timing of any such future contributions. In addition,  our forecast excludes the cash impact of special items because we  cannot predict the amount and timing of such items.  “Free Cash Flow” (FCF) is a useful measure of our ability to  generate cash. It also is a significant component in our incentive  compensation plans. The di ff erence between net cash provided  by continuing operating activities (the most comparable GAAP  measure) and FCF (the non-GAAP measure) consists mainly of  significant cash outflows and inflows that we believe are useful to  identify. We believe free cash flow provides useful information to  investors as it provides insight into the primary cash flow metric  used by management to monitor and evaluate cash flows generated  from our operations.  among periods since it excludes the impact of special items, which  may recur, but tend to be irregular as to timing, thereby making  comparisons between periods more di ffi cult. It also is a significant  component in our incentive compensation plans. The limitation  of this measure is that it excludes the financial impact of items  that would otherwise either increase or decrease our reported  results. This limitation is best addressed by using Adjusted Earnings  Per Share in combination with diluted earnings per share from  continuing operations attributable to TE Connectivity Ltd. (the  most comparable GAAP measure) in order to better understand  the amounts, character and impact of any increase or decrease on  reported results.  NON-GAAP MEASURES