High Reliability Solutions ("HRS"), which is comprised of health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies.


•	High Reliability Solutions ("HRS"), which is comprised of our health solutions business, including surgical equipment, drug delivery, diagnostics, telemedicine, disposable devices, imaging and monitoring, patient mobility and ophthalmology; and our automotive business, including vehicle electrification, connectivity, autonomous, and smart technologies;


•	Industrial and Emerging Industries ("IEI"), which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, smart solar energy; and industrial, including semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks;

•

Communications & Enterprise Compute ("CEC"), which includes our telecom business of radio access base stations, remote radio heads and small cells for wireless infrastructure; our networking business, which includes optical, routing, and switching products for data and video networks; our server and storage platforms for both enterprise and cloud-based deployments; next generation storage and security appliance products; and rack-level solutions, converged infrastructure and software-defined product solutions; and


•	Consumer Technologies Group ("CTG"), which includes our consumer-related businesses in IoT enabled devices, audio and consumer power electronics, mobile devices; and various supply chain solutions for consumer, computing and printing devices.

The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance) and supply chain management software solutions and component product offerings (including flexible printed circuit boards and power adapters and chargers).

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or ~~��GAAP”~~“GAAP”) for interim financial information and in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, ~~2018~~2019 contained in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the ~~three and six-month~~three-month periods ended ~~September~~June 28, ~~2018~~2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, ~~2019.~~2020.

The first quarters for fiscal years ~~2019~~2020 and ~~2018~~2019 ended on June 28, 2019, which is comprised of 89 days in the period, and June 29, 2018, which is comprised of 90 days in the period, ~~and June 30, 2017, which is comprised of 91 days in the period,~~ respectively. ~~The second quarters for fiscal years 2019 and 2018 ended on September 28, 2018 and September 29, 2017, which are comprised of 91 days in both periods.~~

The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. The associated noncontrolling owners' interest in the income or losses of these

companies is not material to the Company's results of operations for all periods presented, and is classified as a component of interest and other, net, in the condensed consolidated statements of operations.

~~Recently Adopted Accounting Pronouncement~~

~~In January 2017,~~As previously disclosed, the ~~FASB issued Accounting Standard Update (ASU) No. 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”~~Company has made certain immaterial corrections to ~~clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted~~net sales previously reported for ~~as acquisitions (or disposals) of assets or businesses. The Company adopted the guidance on a prospective basis during~~ the first quarter of fiscal year 2019 primarily to reflect revenue from certain contracts with customers on a net basis. As a result, net sales and cost of sales in the accompanying Condensed Consolidated Statement of Operations for the three-month period ended June 29, 2018 are $25 million lower than previously reported for the first quarter of fiscal year 2019. These corrections had no impact on gross profit, segment income or net income for the period presented. Amounts presented for the first quarter of fiscal year 2019 related to the disaggregation of revenue in the CTG segment in Note 4, and CTG segment net sales and total net sales in Note 16, have also been restated accordingly. The Company evaluated these corrections, considering both qualitative and quantitative factors, and concluded they are immaterial to the previously issued financial statements.

Recently Adopted Accounting Pronouncement

In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases, and subsequent updates (collectively, referred to as Accounting Standard Codification 842 or “ASC 842”). ASC 842 requires a lessee to recognize a right of use (“ROU”) asset and lease liability. Leases will be classified as finance or operating, with classification affecting the recognition of expense and presentation in the income statement.

The Company adopted ASC 842 on April 1, 2019 using the modified retrospective method on the effective date. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before our adoption date. The Company has elected to adopt the package of transition practical expedients and, therefore, has not reassessed (1) whether existing or expired contracts contain a lease, (2) lease classification for existing or expired leases or (3) the accounting for initial direct costs that were previously capitalized. In addition, the Company has elected the short term lease recognition and measurement exemption for all classes of assets, which ~~did~~allows the Company to not recognize ROU assets and lease liabilities for leases with a lease term of 12 months or less and with no purchase option the Company is reasonably certain of exercising. The Company has also elected the practical expedient to account for the lease and nonlease components as a single lease component, for all classes of underlying assets. Therefore, the lease payments used to measure the lease liability include all of the fixed considerations in the contract. Lease payments included in the measurement of the lease liability comprise the following: fixed payments (including in-substance fixed payments), and variable payments that depend on an index or rate (initially measured using the index or rate at the lease commencement date).As the Company cannot determine the interest rate implicit in the lease for its leases, as such the Company uses its estimate of the incremental borrowing rate as of the commencement date in determining the present value of lease payments. The Company’s estimated incremental borrowing rate is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term for all of the Company’s leases includes the noncancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.

The adoption of ASC 842 had a material impact to ~~its financial position as there were no acquisitions during~~ the ~~period.~~

~~In August 2016,~~Company’s consolidated balance sheet, but did not materially impact the ~~FASB issued ASU 2016-15, "Statement~~consolidated statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)." The ASU is intended to address specific cash flow issues with the objective of reducing the existing diversity in practice and provide guidance on how certain cash receipts and payments are presented and classified in theincome or consolidated statement of cash flows. The ~~majority~~most significant changes to the consolidated balance sheet relate to the recognition of new ROU assets and lease liabilities for operating leases. The Company’s accounting for finance leases remains substantially unchanged and the balances are not material for any periods presented.

As a result of adopting ASC 842 as of April 1, 2019, the Company recognized additional operating liabilities of $705 million with a corresponding ROU asset of $669 million and a deferred gain of $22 million for sale leaseback transactions to prior year retained earnings.

In October 2018, the FASB issued ASU 2018-16 “Derivatives and Hedging (Topic 815): Inclusion of the ~~guidance in ASU 2016-15 is consistent with our current cash flow classification. However, cash receipts~~Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes” to expand the lists of eligible benchmark interest rates to include OIS based on SOFR to facilitate the ~~deferred purchase price~~marketplace transition from the Company's asset-backed securitization programs described in note 10 will be classified as cash flows from investing activities instead of the Company's former presentation as cash flows from operations.LIBOR. The Company adopted the guidance during the first quarter of fiscal year 2019 using a monthly approach to track cash flows on deferred purchase price and retrospectively adjusted cash flows from operating and investing activities for fiscal year 2018. Commencing with the quarter ending September 28, 2018, the Company changed to a method based on daily activity and retrospectively adjusted cash flows from operating and investing activities for the six-month period ended September 29, 2017. The Company recorded $1.8 billion of cash receipts on the deferred purchase price from the Company's asset-backed securitization programs for the six-month period ended September 28, 2018 and reclassified $2.5 billion of cash receipts on the deferred purchase price for the six-month period ended September 29, 2017, from cash flows from operating activities to cash flows from investing activities.

In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This guidance generally requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. This guidance also requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The Company adopted this guidance on April 1, 20182020 with an ~~insignificant~~immaterial impact on the Company's financial position, results of operations orand cash flows.

In ~~February~~August 2018, the FASB issued ASU ~~2018-03 "Technical Corrections~~2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement”, which amends ASC 820 to add, remove, and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard comes as an addition to ASU 2016-01 which themodify fair value measurement disclosure requirements. The Company adopted inthe guidance during the first quarter of fiscal year ~~2019. This update includes amendments~~2020 with an immaterial impact on the Company's financial position, results of operations and cash flows.

In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvement to ~~clarify certain~~Nonemployee Share-Based Payment Accounting" with the objective of simplifying several aspects of the ~~guidance issued~~accounting for

nonemployee share-based payment transactions in ~~Update 2016-01.~~current GAAP. The Company adopted this guidance during the ~~second~~first quarter of fiscal year ~~2019~~2020 with an immaterial impact on its consolidated financial statements.

In ~~May 2014,~~August 2017, the FASB issued ASU ~~2014-09 "Revenue from Contracts with Customers~~2017-12 "Derivatives and Hedging (Topic ~~606)" (also referred~~815): Targeted Improvements to as Accounting Standard Codification 606 ("ASC 606")) which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for ~~such goods or services. In order to meet this requirement, the entity must apply the following steps: (i) identify the contracts~~Hedging Activities" with the ~~customers; (ii) identify performance obligations~~objective of improving the financial reporting of hedging relationships and simplifying the application of the hedge accounting guidance in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, disclosures required for revenue recognition include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract.

current GAAP. The Company adopted this guidance during the ~~standard~~first quarter of fiscal year 2020 with an immaterial impact on ~~April 1,~~its consolidated financial statements.

Recently Issued Accounting Pronouncements

In November 2018, ~~using~~ the ~~modified retrospective approach by applying~~FASB issued ASU 2018-19 “Codification Improvements to Topic 326: Financial Instruments - Credit Losses” to introduce an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. The guidance to all open contracts at the adoption date and has implemented revised accounting policies, new operational and financial reporting processes, enhanced systems capabilities and relevant internal controls.

~~As part of adopting ASC 606, revenue~~is effective for ~~certain customer contracts where~~ the Company ~~is manufacturing products for which there is no alternative use and the Company has an enforceable right to payment including a reasonable profit for work-~~

in-progress inventory will be recognized over time (i.e., as we manufacture the product) instead of upon shipment of products. In addition to the following disclosures, note 3 provides further disclosures required by the new standard.

~~The cumulative effect of change made to our April 1, 2018 consolidated balance sheet for the adoption of ASC 606 was as follows:~~

Condensed Consolidated Balance Sheet
Impact of Adopting ASC 606
(In thousands)
(Unaudited) Balance at March 31, 2018 Adjustments Balance at April 1, 2018

ASSETS
Contract assets —
412,787
412,787
Inventories 3,799,829
(409,252 ) 3,390,577
Other current assets 1,380,466
(51,479 ) 1,328,987

LIABILITIES AND SHAREHOLDERS’ EQUITY
Other current liabilities 1,719,418
(87,897 ) 1,631,521
Other liabilities 531,587
2,098
533,685

Accumulated deficit (3,144,114 ) (37,855 ) (3,181,969 )

The adoption of ASC 606 resulted in the establishment of contract asset and contract liability balance sheet accounts and in the reclassification to these new accounts from certain asset and liability accounts, primarily inventories. The increase in accumulated deficit in the table above reflects $37.9 million of net adjustments to the balance sheet as of April 1, 2018, resulting from the adoption of ASC 606 primarily related to certain customer contracts requiring an over-time method of revenue recognition. The declines in inventories and other current asset reflect reclassifications to contract assets due to the earlier recognition of certain costs of products sold for over-time contracts. The decline in other current liabilities is primarily due to the reclassification of payments from customers in advance of work performed to contract assets to reflect the net position of the related over-time contracts.

~~The following tables summarize the impacts of ASC 606 adoption on the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations:~~

Condensed Consolidated Balance Sheet
As of September 28, 2018
Impact of Adopting ASC 606
(In thousands)
(Unaudited) As Reported Adjustments Balance without ASC 606 Adoption
ASSETS
Contract assets 418,158
(418,158 ) —
Inventories 4,442,855
415,623
4,858,478
Other current assets 935,030
8,059
943,089

LIABILITIES AND SHAREHOLDERS’ EQUITY
Other current liabilities 1,456,519
34,327
1,490,846

Accumulated deficit (2,902,492 ) (38,520 ) (2,941,012 )

Condensed Consolidated Statement of Operations
Impact of Adopting ASC 606
Three-months ended September 28, 2018 Six-months ended September 28, 2018
(In thousands, except per share amounts)
(Unaudited) As Reported Adjustments Balance without ASC 606 Adoption As Reported Adjustments Balance without ASC 606 Adoption

Net sales $ 6,710,604
$ (115,533 ) $ 6,595,071
$ 13,134,560
$ (27,237 ) $ 13,107,323
Cost of sales 6,308,303
(111,917 ) 6,196,386
12,354,405
(26,573 ) 12,327,832
Gross profit 402,301
(3,616 ) 398,685
780,155
(664 ) 779,491
Net income $ 86,885
$ (3,616 ) $ 83,269
$ 202,920
$ (664 ) $ 202,256

~~To align contractual terms across the vast majority of customers to allow the Company to efficiently and accurately manage its contracts,~~beginning in the first quarter of fiscal year ~~2019,~~2021 with early adoption permitted. The Company is currently assessing and expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2021.

In October 2018, the FASB issued ASU 2018-17 “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” to provide a new private company variable interest entity exemption and change how decision makers apply the variable interest criteria. The guidance is effective for the Company ~~waived certain contractual rights to bill profit for work in progress~~beginning in the ~~event~~first quarter of ~~a contract termination which is expected~~fiscal year 2021 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to be infrequent. These modifications resulted in revenue from these customers being recognized upon shipment of products, rather than over time (i.e., as we manufacture products) as further explained in note 3. The result ofadopt the amendments for the six-month period ended September 28, 2018, was to reduce revenue and gross profit by approximately $132.7 million and $9.3 million, respectively, compared to amounts that would have been reported both (i) under ASC 606 had we not amended the contracts, and (ii) had we not adopted ASC 606.

For the three-month period ended September 28, 2018 the as reported revenue was approximately $115.5 million higher, and the gross profit $3.6 million higher, than they would have been without ASC 606 adoption primarily due to additional inventory build up as of September 28, 2018 for those customer contracts that meet the criteria for over-time recognition (see note 3) partially offset by a declineguidance when it becomes effective in the ~~aggregate average gross profit margin for those customers due to the increasing mix~~first quarter of ~~lower margin customers included in the CTG segment.~~

For the six-month period ended September 28, 2018 the as reported revenue was approximately $27.2 million higher and the gross profit approximately $0.7 million higher than it would have been without ASC 606 adoption. Additional revenue of $160.0 million was reported under ASC 606 due to the accelerated timing of recognition of revenue for contracts which meet the criteria for over-time recognition (see note 3). Approximately $10.0 million of additional gross profit was recognized on the customers qualifying for accelerated revenue recognition. These increases were offset by reductions of $132.7 million of revenue and $9.3 million of gross profit respectively as a result of the waiver of contracts noted above. There was no material tax impact for the three and six-month periods ended September 28, 2018 from adopting ASC 606.

~~The Company applies the following practical expedients:~~

~~The Company elected to not disclose information about remaining performance obligations as its performance obligations generally have an expected duration of one~~fiscal year ~~or less.~~

In accordance with ASC 606-10-25-18B the Company will account for certain shipping and handling as activities to fulfill the promise to transfer the good, instead of a promised service to its customer.

In accordance with ASC 606-10-32-18 the Company elected to not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less.

~~Recently Issued Accounting Pronouncements~~2021.

In August 2018, the FASB issued ASU 2018-15 "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” to provide guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, as well as requires additional quantitative and qualitative disclosures. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company is still evaluating the impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020.

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement”, which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The guidance is effective for the Company beginning in the first quarter of fiscal year 20202021 with early adoption permitted. The Company expects ~~the new guidance will have an immaterial impact on its consolidated financial statements, and it intends~~ to early adopt the guidance, ~~when it becomes effective in the first quarter of fiscal year 2020.~~

In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting" with the objective of simplifying several aspects of the accounting for nonemployee share-based payment transactions in current GAAP. The guidance is effective for the Company beginning in the first quarter ofduring fiscal year 2020, ~~with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements,~~ and ~~it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020.~~

In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" with the objective of improving the financial reporting of hedging relationships and simplifying the application of the hedge accounting guidance in current GAAP. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020.

In January 2017, the FASB issued ASU 2017-04 "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" to simplify the subsequent measurement of goodwill by eliminating step 2 from the goodwill impairment test. This guidance requires that the change be applied on a prospective basis, and it is effective for the Company beginning in the first quarter of fiscal year 2021, with early application permitted. The Company is currently assessing the impact of the new guidance and the timing of adoption.

In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)" intended to improve financial reporting on leasing transactions. The new lease guidance will require entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. The guidance will also enhance existing disclosure requirements relating to those leases. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASC 842. Specifically, under the amendments in ASU 2018-11, (1) entities may electdoes not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and nonlease components when certain conditions are met. Also in July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases", which clarifies how to apply certain aspects of the new leases standard, ASC 842. The amendments address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. The amendments have the same effective date and transition requirements as the new leases standard. The Company intends to adopt the new lease guidance when it becomes effective in the first quarter of fiscal year 2020 using a modified retrospective approach. The Company believes the new guidance will haveexpect a material impact onto its condensed consolidated ~~balance sheets upon adoption.~~financial statements.

2. BALANCE SHEET ITEMS

Inventories

The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows:



	As of June 28, 2019		As of March 31, 2019
	(In thousands)
Raw materials	$	2,897,291	$	2,922,101
Work-in-progress	383,473		366,135
Finished goods	464,936		434,618
	$	3,745,700	$	3,722,854

As of September 28, 2018 As of March 31, 2018
(In thousands)
Raw materials $ 3,512,523
$ 2,760,410
Work-in-progress 407,998
450,569
Finished goods 522,334
588,850
$ 4,442,855
$ 3,799,829

Due to the adoption of ASC 606, amounts that would have been reported as inventory under prior guidance are now included in contract assets or liabilities, depending on the net position of the contract, as disclosed in note 1. As a result of this accounting change, work-in-progress and finished goods as of September 28, 2018 are $415.6 million less than they would have been, had we not adopted ASC 606. The comparative information as of March 31, 2018, has not been restated and continues to be reported under the accounting standards in effect at that time.

Goodwill and Other Intangible Assets

The following table summarizes the activity in the Company’s goodwill account for each of its four ~~segments~~reporting units (which align to the Company's reportable segments) during the ~~six-month~~three-month period ended ~~September~~June 28, ~~2018:~~ 2019:


	HRS			CTG			IEI			CEC			Amount			HRS			IEI		CEC		CTG		Total
	(In thousands)															(In thousands)
Balance, beginning of the year	$	550,983		$	107,748		$	337,707		$	124,732		$	1,121,170		$	507,209		$	333,257	$	129,325	$	103,264	$	1,073,055
Divestitures ~~(1)~~	(4,006		)	(4,412		)	(4,120		)	(6,391		)	(18,929		)	(1,102		)	—		—		—		(1,102		)
Foreign currency translation adjustments ~~(2)~~	(19,718		)	—			—			—			(19,718		)	5,278			—		—		—		5,278
Balance, end of the period	$	527,259		$	103,336		$	333,587		$	118,341		$	1,082,523		$	511,385		$	333,257	$	129,325	$	103,264	$	1,077,231



Singapore		Not Applicable
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)



2 Changi South Lane,
Singapore		486123
(Address of registrant’s principal executive offices)		(Zip Code)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary Shares, No Par Value	FLEX	The Nasdaq Stock Market LLC



Large ~~accelerated~~Accelerated Filer	☒	Accelerated filerx	☐	Non-accelerated filer	☐	~~Accelerated filer~~ o	~~Non-accelerated filer~~ o	Smaller reporting companyo	☐
Emerging growth companyo	☐



~~Class~~		~~Outstanding at October 25, 2018~~
~~Ordinary Shares, No Par Value~~		~~526,586,420~~



		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	3
	Report of Independent Registered Public Accounting Firm	3
	Condensed Consolidated Balance Sheets (unaudited) — June 28, 2019 and March 31, 2019	4
	~~Report of Independent Registered Public Accounting Firm~~	4
	Condensed Consolidated ~~Balance Sheets~~Statements of Operations (unaudited) — ~~September~~Three-Month Periods Ended June 28, ~~2018~~2019 and ~~March 31,~~June 29, 2018	5
	Condensed Consolidated Statements of ~~Operations~~Comprehensive Income (unaudited) — Three-Month ~~and Six-Month~~ Periods Ended ~~September~~June 28, ~~2018~~2019 and ~~September~~June 29, ~~2017~~2018	6
	Condensed Consolidated Statements of ~~Comprehensive Income~~Shareholders' Equity (unaudited) — Three-Month ~~and Six-Month~~ Periods Ended ~~September~~June 28, ~~2018~~2019 and ~~September~~June 29, ~~2017~~2018	7
	Condensed Consolidated Statements of Cash Flows (unaudited) — Three-Month ~~and Six-Month~~ Periods Ended ~~September~~June 28, ~~2018~~2019 and ~~September~~June 29, ~~2017~~2018	89
	Notes to Condensed Consolidated Financial Statements (unaudited)	910
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	40

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44
Signatures		45



/s/ DELOITTE & TOUCHE LLP
San Jose, California
~~November 2, 2018~~July 26, 2019


	As of September 28, 2018			As of March 31, 2018			As of June 28, 2019			As of March 31, 2019
	(In thousands, except share amounts) (Unaudited)						(In thousands, except share amounts) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,377,720		$	1,472,424		$	1,920,451		$	1,696,625
Accounts receivable, net of allowance for doubtful accounts of $62,650 and $60,051 as of September 28, 2018 and March 31, 2018, respectively	2,859,409			2,517,695
Accounts receivable, net of allowance for doubtful accounts of $88,628 and $91,396 as of June 28, 2019 and March 31, 2019, respectively							2,570,239			2,612,961
Contract assets	418,158			—			240,559			216,202
Inventories	4,442,855			3,799,829			3,745,700			3,722,854
Other current assets	935,030			1,380,466			909,564			854,790
Total current assets	10,033,172			9,170,414			9,386,513			9,103,432
Property and equipment, net	2,277,885			2,239,506			2,309,873			2,336,213
Operating lease right-of-use assets, net							656,267			—
Goodwill	1,082,523			1,121,170			1,077,231			1,073,055
Other intangible assets, net	375,407			424,433			314,716			330,995
Other assets	957,217			760,332			684,498			655,672
Total assets	$	14,726,204		$	13,715,855		$	14,429,098		$	13,499,367

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	55,640		$	43,011		$	275,937		$	632,611
Accounts payable	6,236,018			5,122,303			5,193,043			5,147,236
Accrued payroll	406,368			383,332			377,412			391,591
Other current liabilities	1,456,519			1,719,418			1,591,123			1,426,075
Total current liabilities	8,154,545			7,268,064			7,437,515			7,597,513
Long-term debt, net of current portion	2,869,551			2,897,631			2,961,794			2,421,904
Operating lease liabilities, non-current							555,074			—
Other liabilities	532,561			531,587			472,900			507,590
Shareholders’ equity
Ordinary shares, no par value; 579,126,478 and 578,317,848 issued, and 528,887,123 and 528,078,493 outstanding as of September 28, 2018 and March 31, 2018, respectively	6,616,635			6,636,747
Treasury stock, at cost; 50,239,355 shares as of September 28, 2018 and March 31, 2018	(388,215		)	(388,215		)
Ordinary shares, no par value; 564,278,524 and 566,787,620 issued, and 514,039,169 and 516,548,265 outstanding as of June 28, 2019 and March 31, 2019, respectively							6,487,381			6,523,750
Treasury stock, at cost; 50,239,355 shares as of June 28, 2019 and March 31, 2019							(388,215		)	(388,215		)
Accumulated deficit	(2,902,492		)	(3,144,114		)	(2,945,117		)	(3,012,012		)
Accumulated other comprehensive loss	(156,381		)	(85,845		)	(152,234		)	(151,163		)
Total shareholders’ equity	3,169,547			3,018,573			3,001,815			2,972,360
Total liabilities and shareholders’ equity	$	14,726,204		$	13,715,855		$	14,429,098		$	13,499,367


	Three-Month Periods Ended					Six-Month Periods Ended						Three-Month Periods Ended
	September 28, 2018		September 29, 2017			September 28, 2018			September 29, 2017			June 28, 2019		June 29, 2018
	(In thousands, except per share amounts) (Unaudited)											(In thousands, except per share amounts) (Unaudited)
Net sales	$	6,710,604	$	6,270,420		$	13,134,560		$	12,278,692		$	6,175,939	$	6,398,956
Cost of sales	6,308,303		5,877,095			12,354,405			11,478,435			5,775,775		6,021,102
Restructuring charges												47,405		—
Gross profit	402,301		393,325			780,155			800,257			352,759		377,854
Selling, general and administrative expenses	227,683		274,149			490,565			524,960			209,624		262,882
Intangible amortization	18,234		16,376			36,751			36,277			17,082		18,517
Restructuring charges												8,787		—
Interest and other, net	41,060		27,554			82,802			54,430			51,694		41,742
Other charges (income), net	6,530		(143,167		)	(80,394		)	(179,332		)	1,463		(86,924		)
Income before income taxes	108,794		218,413			250,431			363,922			64,109		141,637
Provision for income taxes	21,909		13,327			47,511			34,126			19,237		25,602
Net income	$	86,885	$	205,086		$	202,920		$	329,796		$	44,872	$	116,035

Earnings per share:
Basic	$	0.16	$	0.39		$	0.38		$	0.62		$	0.09	$	0.22
Diluted	$	0.16	$	0.38		$	0.38		$	0.61		$	0.09	$	0.22
Weighted-average shares used in computing per share amounts:
Basic	531,503		531,313			530,426			530,790			514,238		529,380
Diluted	534,458		536,019			535,027			536,311			517,550		535,454



	Ordinary Shares								Accumulated Other Comprehensive Loss									Total
	Shares Outstanding		Amount			Accumulated Deficit			Unrealized Gain (Loss) on Derivative Instruments and Other			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss			Shareholders' Equity
	(In thousands) Unaudited
BALANCE AT MARCH 31, 2019	516,548		$	6,135,535		$	(3,012,012	)	$	(41,556	)	$	(109,607	)	$	(151,163	)	$	2,972,360
Repurchase of Flex Ltd. ordinary shares at cost	(5,025	)	(51,999		)	—			—			—			—			(51,999		)
Exercise of stock options	117		403			—			—			—			—			403
Issuance of Flex Ltd. vested shares under restricted share unit awards	2,399		—			—			—			—			—			—
Net income	—		—			44,872			—			—			—			44,872
Stock-based compensation, net of tax	—		15,227			—			—			—			—			15,227
Cumulative effect on opening equity of adopting accounting standards	—		—			22,023			—			—			—			22,023
Total other comprehensive income (loss)	—		—			—			(5,475		)	4,404			(1,071		)	(1,071		)
BALANCE AT JUNE 28, 2019	514,039		$	6,099,166		$	(2,945,117	)	$	(47,031	)	$	(105,203	)	$	(152,234	)	$	3,001,815



Condensed Consolidated Balance Sheet
	Impact of Adopting ASC 606
(In thousands) (Unaudited)	Balance at March 31, 2018		Adjustments		Balance at April 1, 2018

ASSETS
Contract assets	—		412,787		412,787
Inventories	3,799,829		(409,252	)	3,390,577
Other current assets	1,380,466		(51,479	)	1,328,987

LIABILITIES AND SHAREHOLDERS’ EQUITY
Other current liabilities	1,719,418		(87,897	)	1,631,521
Other liabilities	531,587		2,098		533,685

Accumulated deficit	(3,144,114	)	(37,855	)	(3,181,969	)



Condensed Consolidated Statement of Operations
	Impact of Adopting ASC 606
	Three-months ended September 28, 2018							Six-months ended September 28, 2018
(In thousands, except per share amounts) (Unaudited)	As Reported		Adjustments			Balance without ASC 606 Adoption		As Reported		Adjustments			Balance without ASC 606 Adoption

Net sales	$	6,710,604	$	(115,533	)	$	6,595,071	$	13,134,560	$	(27,237	)	$	13,107,323
Cost of sales	6,308,303		(111,917		)	6,196,386		12,354,405		(26,573		)	12,327,832
Gross profit	402,301		(3,616		)	398,685		780,155		(664		)	779,491
Net income	$	86,885	$	(3,616	)	$	83,269	$	202,920	$	(664	)	$	202,256


~~(1)~~	During the six-month period ended September 28, 2018, the Company divested its China-based Multek operations, and as a result, recorded an aggregate reduction of goodwill of $18.9 million, which is included in the loss on sale recorded in other charges (income), net on the condensed consolidated statement of operation. See note 12 for additional information.


~~(2)~~	During the six-month period ended September 28, 2018, the Company recorded $19.7 million of foreign currency translation adjustments primarily related to the goodwill associated with the acquisition of Mirror Controls International ("MCi") and AGM Automotive ("AGM"), as the U.S. Dollar fluctuated against foreign currencies.



	As of June 28, 2019							As of March 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Intangible assets:
Customer-related intangibles	$	297,389	$	(122,884	)	$	174,505	$	297,306	$	(113,627	)	$	183,679
Licenses and other intangibles	266,493		(126,282		)	140,211		274,604		(127,288		)	147,316
Total	$	563,882	$	(249,166	)	$	314,716	$	571,910	$	(240,915	)	$	330,995


Fiscal Year Ending March 31,	Amount		Amount
	(In thousands)		(In thousands)
2019 (1)	$	35,987
2020	66,906
2020 (1)			$	47,807
2021	62,515		60,793
2022	53,678		52,261
2023	45,421		44,529
2024			42,964
Thereafter	110,900		66,362
Total amortization expense	$	375,407	$	314,716



Fiscal Year Ended March 31,	Operating Leases
2020 (1)	$	124,615
2021	130,200
2022	109,199
2023	92,762
2024	78,452
Thereafter	262,057
Total undiscounted lease payments	797,285
Less: imputed interest	107,044
Total lease liabilities	$	690,241



Fiscal Year Ending March 31,	Operating Leases
	(In thousands)
2020	$	155,391
2021	113,245
2022	93,777
2023	81,335
2024	67,341
Thereafter	171,828
Total minimum lease payments	$	682,917



	Three-Month Period Ended June 28, 2019
	HRS		IEI		CEC		CTG		Total
Timing of Transfer
Point in time	$	923,727	$	1,115,059	$	1,359,365	$	1,024,626	$	4,422,777
Over time	254,316		521,855		499,484		477,507		1,753,162
Total segment	$	1,178,043	$	1,636,914	$	1,858,849	$	1,502,133	$	6,175,939


(1)	Represents estimated amortization for the remaining ~~six-month~~nine-month period ending March 31, ~~2019.~~2020.



Lease cost	Three-Month Period Ended
	June 28, 2019
Operating lease cost	$	45,704
Total lease cost	$	45,704



	As of June 28, 2019
Operating Leases:
Operating lease right of use assets	$	656,267
Operating lease liabilities	(690,241		)

Weighted-average remaining lease term (In years)
Operating leases	7

Weighted-average discount rate
Operating leases	4.0		%



Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	43,040


(1)	Represents estimated lease payments for the remaining nine-month period ending March 31, 2020.



	Contract Assets
Beginning balance, April 1, 2018	$	—
Cumulative effect adjustment at April 1, 2018	412,787
Revenue recognized	3,566,140
Amounts collected or invoiced	(3,560,769		)
Ending balance, September 28, 2018	$	418,158

Three-month Period Ended September 28, 2018

	HRS		CTG		IEI		CEC		Total
Timing of Transfer
Point in time	$	893,141	$	1,203,696	$	1,089,319	$	1,519,041	$	4,705,197
Over time	314,830		592,187		476,634		621,756		2,005,407
Total segment	$	1,207,971	$	1,795,883	$	1,565,953	$	2,140,797	$	6,710,604



	Three-Month Period Ended June 29, 2018
	HRS		IEI		CEC		CTG		Total
Timing of Transfer
Point in time	$	1,005,180	$	1,063,898	$	1,493,507	$	1,298,137	$	4,860,722
Over time	210,245		382,413		460,779		484,797		1,538,234
Total segment	$	1,215,425	$	1,446,311	$	1,954,286	$	1,782,934	$	6,398,956

Six-month Period Ended September 28, 2018

	HRS		CTG		IEI		CEC		Total
Timing of Transfer
Point in time	$	1,898,321	$	2,504,333	$	2,153,218	$	3,012,548	$	9,568,420
Over time	525,075		1,099,484		859,046		1,082,535		3,566,140
Total segment	$	2,423,396	$	3,603,817	$	3,012,264	$	4,095,083	$	13,134,560


(1)	An immaterial ~~amount~~number of options to purchase ordinary shares were excluded from the computation of diluted earnings per share during the three-month ~~and six-month~~ periods ended ~~September~~June 28, ~~2018~~2019 and ~~September~~June 29, ~~2017,~~2018, respectively, due to their anti-dilutive impact on the weighted-average ordinary share equivalents.


(1)	The balance as of June 28, 2019 reflects the outstanding drawdown from the $200 million term loan facility entered in July 2018. There was no outstanding balance as of June 28, 2019 related to the short-term bank borrowings facility entered in February 2019.


(1)	Represents estimated repayments for the remaining nine-month period ending March 31, 2020.


(1)	Interest expenses on debt obligations for the three-month period ended June 28, 2019 includes debt extinguishment cost of $4.1 million related to the partial repayments of the Notes due February 2020 and Term Loan due November 2021.



	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	1,741,500	—	$	252,923	$	—
EUR	45,320	—	51,279		—
HUF	34,791,000	—	122,360		—
ILS	191,000	—	53,226		—
JPY	33,525,000	—	300,000		—
MXN	4,564,000	—	238,323		—
MYR	265,000	43,000	63,940		10,375
PLN	162,000	—	43,262		—
RON	247,000	—	59,518		—
Other	N/A	N/A	42,325		3,640
			1,227,156		14,015
Other Foreign Currency Contracts
BRL	—	721,000	—		187,448
CAD	76,286	53,135	58,052		40,435
CNY	3,294,464	553,285	477,927		80,355
EUR	1,793,083	2,068,220	2,038,027		2,348,603
GBP	38,873	51,524	49,287		65,328
HUF	59,355,877	56,809,178	208,756		199,799
ILS	162,500	25,400	45,284		7,078
INR	8,058,300	7,262,247	116,523		104,995
JPY	3,006,895	4,989,750	27,880		46,307
MXN	3,059,758	2,119,949	159,774		110,699
MYR	724,260	386,510	174,752		93,259
SEK	399,558	457,749	42,538		49,440
SGD	57,378	34,869	42,402		25,768
Other	N/A	N/A	59,544		41,126
			3,500,746		3,400,640

Total Notional Contract Value in USD			$	4,727,902	$	3,414,655



	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	June 28, 2019		March 31, 2019		Balance Sheet Location	June 28, 2019		March 31, 2019
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	7,720	$	10,503	Other current liabilities	$	14,291	$	10,282
Foreign currency contracts	Other assets	$	18,454	$	—	Other liabilities	$	—	$	—

Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	20,883	$	16,774	Other current liabilities	$	20,405	$	17,144


	Fair Value Measurements as of September 28, 2018										Fair Value Measurements as of June 28, 2019
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(In thousands)										(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	451,551		$	—	$	451,551		$	—	$	945,578		$	—	$	945,578
Foreign exchange contracts (Note 8)	—		20,287			—		20,287
Foreign exchange contracts (Note 10)											—		47,057			—		47,057
Deferred compensation plan assets:								0										0
Mutual funds, money market accounts and equity securities	6,267		76,021			—		82,288			—		82,430			—		82,430
Liabilities:								0.003										0.003
Foreign exchange contracts (Note 8)	$	—	$	(32,880	)	$	—	$	(32,880	)
Foreign exchange contracts (Note 10)											$	—	$	(34,696	)	$	—	$	(34,696	)

	Fair Value Measurements as of March 31, 2018										Fair Value Measurements as of March 31, 2019
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(In thousands)										(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	452,622		$	—	$	452,622		$	—	$	473,888		$	—	$	473,888
Foreign exchange contracts (Note 8)	—		43,334			—		43,334
Foreign exchange contracts (Note 10)											—		27,277			—		27,277
Deferred compensation plan assets:								0										0
Mutual funds, money market accounts and equity securities	7,196		67,532			—		74,728			2,845		76,852			—		79,697
Liabilities:								0										0
Foreign exchange contracts (Note 8)	$	—	$	(25,311	)	$	—	$	(25,311	)
Foreign exchange contracts (Note 10)											$	—	$	(27,426	)	$	—	$	(27,426	)



	As of June 28, 2019				As of March 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In thousands)
4.625% Notes due February 2020	$	250,008	$	252,819	$	500,000	$	499,950	Level 1
Term Loan due November 2021	421,563		424,725		671,563		670,724		Level 1
Term Loan, including current portion, due in installments through June 2022	452,250		454,511		458,531		457,958		Level 1
5.000% Notes due February 2023	500,000		526,881		500,000		499,950		Level 1
Term Loan due April 2024 - three-month Yen LIBOR plus 0.50%	311,455		311,455		—		—		Level 2
4.750% Notes due June 2025	596,925		619,267		596,815		599,940		Level 1
4.875% Notes due June 2029	448,232		455,449		—		—		Level 1
India Facilities	102,108		102,108		170,206		170,206		Level 2
Euro Term Loan due September 2020	52,972		52,972		52,746		52,746		Level 2
Euro Term Loan due January 2022	113,766		113,766		112,524		112,524		Level 2
Total	$	3,249,279	$	3,313,953	$	3,062,385	$	3,063,998



	Severance			Long-Lived Asset Impairment			Other Exit Costs			Total
	(In thousands)
Balance as of March 31, 2019	$	23,234		$	—		$	9,200		$	32,434
Provision for charges incurred during the three-month period ended June 28, 2019	21,018			17,820			17,354			56,192
Cash payments for charges incurred in the fiscal year 2019 and prior	(7,408		)	—			(1,650		)	(9,058		)
Cash payments for charges incurred during the three-month period ended June 28, 2019	(2,755		)	—			—			(2,755		)
Non-cash charges incurred during the three-month period ended June 28, 2019	—			(17,820		)	(7,794		)	(25,614		)
Balance as of June 28, 2019	34,089			—			17,110			51,199
Less: Current portion (classified as other current liabilities)	34,089			—			17,110			51,199
Accrued restructuring costs, net of current portion (classified as other liabilities)	$	—		$	—		$	—		$	—


	As of				As of				As of				As of
Property and equipment, net:	September 28, 2018				March 31, 2018				June 28, 2019				March 31, 2019
	(In millions)								(In millions)
Mexico									$	542	23	%	$	537	23	%
China	$	524	23	%	$	492	22	%	493		21	%	523		22	%
Mexico	519		23	%	587		26	%
U.S.	325		14	%	305		14	%	383		17	%	361		15	%
India	167		7	%	78		3	%	225		10	%	219		9	%
Malaysia	147		6	%	153		7	%	131		6	%	138		6	%
Hungary	138		6	%	150		7	%	101		4	%	103		4	%
Other	458		20	%	475		21	%	435		19	%	454		21	%
	$	2,278			$	2,240			$	2,310			$	2,336



Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
June 30, 2018 - July 2, 2018 (2)	—	$	—	—	$	410,064,509
July 3, 2018 - August 31, 2018 (2) (3)	2,292,015	$	13.86	2,292,015	$	481,740,042
September 1, 2018 - September 28, 2018 (3)	2,137,446	$	13.20	2,137,446	$	453,520,121
Total	4,429,461			4,429,461