Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Oct. 24, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | FLEX LTD. | |
Entity Central Index Key | 866,374 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (shares) | 540,002,824 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,537,056 | $ 1,607,570 |
Accounts receivable, net of allowance for doubtful accounts of $63,150 and $64,608 as of September 30, 2016 and March 31, 2016, respectively | 2,341,393 | 2,044,757 |
Inventories | 3,562,217 | 3,491,656 |
Other current assets | 1,017,954 | 1,171,143 |
Total current assets | 8,458,620 | 8,315,126 |
Property and equipment, net | 2,335,959 | 2,257,633 |
Goodwill and other intangible assets, net | 1,395,763 | 1,345,820 |
Other assets | 470,792 | 466,402 |
Total assets | 12,661,134 | 12,384,981 |
Current liabilities: | ||
Bank borrowings and current portion of long-term debt | 65,969 | 65,166 |
Accounts payable | 4,514,566 | 4,248,292 |
Accrued payroll | 410,587 | 353,547 |
Other current liabilities | 1,862,545 | 1,905,200 |
Total current liabilities | 6,853,667 | 6,572,205 |
Long-term debt, net of current portion | 2,678,115 | 2,709,389 |
Other liabilities | 525,044 | 497,857 |
Commitments and contingencies (Note 11) | ||
Flex Ltd. shareholders’ equity | ||
Ordinary shares, no par value; 590,804,836 and 595,062,966 issued, and 540,565,481 and 544,823,611 outstanding as of September 30, 2016 and March 31, 2016, respectively | 6,861,624 | 6,987,214 |
Treasury stock, at cost; 50,239,355 shares as of September 30, 2016 and March 31, 2016 | (388,215) | (388,215) |
Accumulated deficit | (3,788,991) | (3,892,212) |
Accumulated other comprehensive loss | (122,552) | (135,915) |
Total Flex Ltd. shareholders’ equity | 2,561,866 | 2,570,872 |
Noncontrolling interests | 42,442 | 34,658 |
Total shareholders’ equity | 2,604,308 | 2,605,530 |
Total liabilities and shareholders’ equity | $ 12,661,134 | $ 12,384,981 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 63,150 | $ 64,608 |
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, issued (shares) | 590,804,836 | 595,062,966 |
Ordinary shares, outstanding (shares) | 540,565,481 | 544,823,611 |
Treasury stock, shares (shares) | 50,239,355 | 50,239,355 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,008,525 | $ 6,316,762 | $ 11,885,338 | $ 11,883,010 |
Cost of sales | 5,694,834 | 5,919,846 | 11,165,652 | 11,133,753 |
Gross profit | 313,691 | 396,916 | 719,686 | 749,257 |
Selling, general and administrative expenses | 243,943 | 216,796 | 483,489 | 426,181 |
Intangible amortization | 21,986 | 16,127 | 43,584 | 23,798 |
Interest and other, net | 24,632 | 22,035 | 49,031 | 38,540 |
Other charges, net | 8,388 | 1,678 | 11,917 | 1,842 |
Income before income taxes | 14,742 | 140,280 | 131,665 | 258,896 |
Provision for income taxes | 17,250 | 17,303 | 28,444 | 25,069 |
Net income (loss) | $ (2,508) | $ 122,977 | $ 103,221 | $ 233,827 |
Earnings (losses) per share | ||||
Basic (in dollars per share) | $ 0 | $ 0.22 | $ 0.19 | $ 0.41 |
Diluted (in dollars per share) | $ 0 | $ 0.22 | $ 0.19 | $ 0.41 |
Weighted-average shares used in computing per share amounts: | ||||
Basic (in shares) | 544,055 | 563,333 | 544,353 | 564,417 |
Diluted (in shares) | 544,055 | 569,655 | 549,934 | 573,288 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (2,508) | $ 122,977 | $ 103,221 | $ 233,827 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 4,213 | (30,267) | 14,074 | (27,484) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (2,059) | (5,544) | (711) | 7,285 |
Comprehensive income (loss) | $ (354) | $ 87,166 | $ 116,584 | $ 213,628 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on derivative instruments and other, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 103,221 | $ 233,827 |
Depreciation, amortization and other impairment charges | 337,387 | 230,894 |
Changes in working capital and other | 102,944 | 197,274 |
Net cash provided by operating activities | 543,552 | 661,995 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (305,936) | (296,401) |
Proceeds from the disposition of property and equipment | 26,561 | 2,383 |
Acquisition of businesses, net of cash acquired | (189,895) | (641,913) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 36,073 | 0 |
Other investing activities, net | 20,357 | (10,516) |
Net cash used in investing activities | (412,840) | (946,447) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from bank borrowings and long-term debt | 75,035 | 595,553 |
Repayments of bank borrowings and long-term debt | (110,592) | (21,090) |
Payments for repurchases of ordinary shares | (184,698) | (241,978) |
Net proceeds from issuance of ordinary shares | 11,344 | 49,074 |
Other financing activities, net | (6,836) | (37,872) |
Net cash provided by (used in) financing activities | (215,747) | 343,687 |
Effect of exchange rates on cash and cash equivalents | 14,521 | (19,216) |
Net increase (decrease) in cash and cash equivalents | (70,514) | 40,019 |
Cash and cash equivalents, beginning of period | 1,607,570 | 1,628,408 |
Cash and cash equivalents, end of period | 1,537,056 | 1,668,427 |
Non-cash investing activity: | ||
Unpaid purchases of property and equipment | $ 67,633 | $ 99,178 |
ORGANIZATION OF THE COMPANY AND
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION | ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION Organization of the Company Flex Ltd. , formerly Flextronics International Ltd., ("Flex", or the "Company") was incorporated in the Republic of Singapore in May 1990. The Company's operations have expanded over the years through a combination of organic growth and acquisitions. The Company is a globally-recognized leading provider of innovative design, engineering, manufacturing, and supply chain services and solutions that span from sketch to scale tm ; from conceptual sketch to full-scale production. The Company designs, builds, ships and services complete packaged consumer electronics and industrial products for original equipment manufacturers ("OEMs"), through its activities in the following segments: High Reliability Solutions ("HRS"), which is comprised of its medical business including consumer health, digital health, disposables, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electronics, connectivity, and clean technologies; and defense and aerospace businesses, focused on commercial aviation, defense and military; Consumer Technologies Group ("CTG"), which includes its mobile devices business, including smart phones; consumer electronics business, including connected living, wearable electronics including digital sport, game consoles, and connectivity devices; and high-volume computing business, including various supply chain solutions for notebook personal computers ("PC"), tablets, and printers; in addition, CTG group is expanding its business relationships to include supply chain optimization for non-electronics products such as shoes and clothing; Industrial and Emerging Industries ("IEI"), which is comprised of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting; and Communications & Enterprise Compute ("CEC"), includes radio access base stations, remote radio heads, and small cells for wireless infrastructure; optical, routing, broadcasting, and switching products for the data and video networks; 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. The Company's strategy is to provide customers with a full range of cost competitive, vertically integrated global supply chain solutions through which the Company can design, build, ship and service a complete packaged product for its OEM customers. This enables the Company's OEM customers to leverage the Company's supply chain solutions to meet their product requirements throughout the entire product life cycle. 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 rigid and 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”) 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, 2016 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-month and six-month periods ended September 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017 . The first quarters for fiscal year 2017 and fiscal year 2016 ended on July 1, 2016 , which is comprised of 92 days in the period, and June 26, 2015 , which is comprised of 87 days in the period, respectively. The second quarters for fiscal year 2017 and fiscal year 2016 ended on September 30, 2016 and September 25, 2015 , which are comprised of 91 days in both periods, respectively. 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. Noncontrolling interests are presented as a separate component of total shareholders' equity in the condensed consolidated balance sheets. The associated noncontrolling owners' interests are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations. The Company has certain non-majority-owned equity investments in non-publicly traded companies that are accounted for using the equity method of accounting. The equity method of accounting is used when the Company has the ability to significantly influence the operating decisions of the issuer, or if the Company has an ownership percentage of a corporation equal to or generally greater than 20% but less than 50%, and for non-majority-owned investments in partnerships when generally greater than 5%. The equity in earnings (losses) of equity method investees are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations. Recently Adopted Accounting Pronouncement In March 2016, the Financial Accounting Standards Board ("FASB") issued new guidance intended to reduce the cost and complexity of the accounting for share-based payments. The new guidance simplifies various aspects of the accounting for share-based payments including income tax effects, withholding requirements and forfeitures. The Company elected to early adopt this new guidance beginning in the first quarter of fiscal year 2017. The guidance eliminates additional paid in capital ("APIC") pools and requires companies to recognize all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. It also addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. Prior to adoption, the Company elected to not deduct tax benefits for stock-based compensation awards on its tax returns, and accordingly, did not have any excess tax benefits or tax deficiencies upon adoption. The Company therefore determined that adoption of the new guidance had no impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. After assessment, it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did not record a retrospective adjustment. The Company finally determined that the adoption of this guidance did not have a significant impact on the consolidated financial position, results of operations and cash flows of the Company. Recently Issued Accounting Pronouncement In August 2016, the FASB issued new guidance intended to address specific cash flow issues with the objective of reducing the existing diversity in practice. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early application permitted. The Company is currently assessing the impact of this update and the timing of adoption. |
BALANCE SHEET ITEMS
BALANCE SHEET ITEMS | 6 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET ITEMS | BALANCE SHEET ITEMS Inventories The components of inventories, net of applicable lower of cost or market write-downs, were as follows: As of September 30, 2016 As of March 31, 2016 (In thousands) Raw materials $ 2,443,372 $ 2,234,512 Work-in-progress 477,896 561,282 Finished goods 640,949 695,862 $ 3,562,217 $ 3,491,656 Goodwill and Other Intangible Assets The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the six-month period ended September 30, 2016 : HRS CTG IEI CEC Amount (In thousands) Balance, beginning of the year $ 439,336 $ 68,234 $ 322,803 $ 111,693 $ 942,066 Additions (1) — 39,822 16,031 — 55,853 Divestitures (2) (1,787 ) — (2,640 ) — (4,427 ) Purchase accounting adjustments (3) 794 — — — 794 Foreign currency translation adjustments (2,592 ) — — — (2,592 ) Balance, end of the period $ 435,751 $ 108,056 $ 336,194 $ 111,693 $ 991,694 (1) The goodwill generated from the Company’s business combinations completed during the six-month period ended September 30, 2016 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired businesses. The goodwill is not deductible for income tax purposes. See note 10 for additional information. (2) During the six-month period ended September 30, 2016 , the Company disposed of two non-strategic businesses within the IEI and HRS segments, and recorded an aggregate reduction of goodwill of $4.4 million accordingly, which is included in the loss on sale in other expense on the condensed consolidated statement of operations. (3) Includes adjustments to estimates resulting from the finalization of management's review of the valuation of assets acquired and liabilities assumed through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company. The components of acquired intangible assets are as follows: As of September 30, 2016 As of March 31, 2016 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 261,695 $ (89,596 ) $ 172,099 $ 223,046 $ (66,473 ) $ 156,573 Licenses and other intangibles 290,020 (58,050 ) 231,970 285,053 (37,872 ) 247,181 Total $ 551,715 $ (147,646 ) $ 404,069 $ 508,099 $ (104,345 ) $ 403,754 The gross carrying amounts of intangible assets are removed when fully amortized. During the six-month period ended September 30, 2016 , the total value of intangible assets increased primarily as a result of three acquisitions. The estimated future annual amortization expense for intangible assets is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2017 (1) $ 40,069 2018 68,052 2019 61,398 2020 52,804 2021 48,562 Thereafter 133,184 Total amortization expense $ 404,069 ____________________________________________________________ (1) Represents estimated amortization for the remaining six -month period ending March 31, 2017 . Other Current Assets Other current assets include approximately $461.5 million and $501.1 million as of September 30, 2016 and March 31, 2016 , respectively, for the deferred purchase price receivable from the Company's Global and North American Asset-Backed Securitization programs. See note 8 for additional information. Also included in other current assets is the remaining value of certain assets purchased on behalf of a customer and financed by a third party banking institution in the amounts of $83.9 million and $83.6 million as of September 30, 2016 and March 31, 2016 , respectively, the nature of which is more fully discussed in Note 17, "Business and Asset Acquisitions" to the Company's Form 10-K for the year ended March 31, 2016 . Other Current Liabilities Other current liabilities include customer working capital advances of $223.9 million and $253.7 million , customer-related accruals of $511.7 million and $479.5 million , and deferred revenue of $302.9 million and $332.3 million as of September 30, 2016 and March 31, 2016 , respectively. The customer working capital advances are not interest-bearing, do not have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production. Other current liabilities also include the outstanding balance due to the third party banking institution related to the financed equipment discussed above of $90.6 million and $122.0 million as of September 30, 2016 and March 31, 2016 , respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company's primary plan used for granting equity compensation awards is the 2010 Equity Incentive Plan (the "2010 Plan"). During fiscal year 2016, in conjunction with the acquisition of NEXTracker Inc. ("NEXTracker"), the Company assumed all of the outstanding, unvested share bonus awards and outstanding, unvested options to purchase shares of common stock of NEXTracker, and converted all of these shares into Flex awards. As a result, the Company now offers the 2014 NEXTracker Equity Incentive Plan (the "NEXTracker Plan"). Further, during the first quarter of fiscal year 2017, in conjunction with an immaterial acquisition, the Company assumed all of the outstanding, unvested options to purchase shares of common stock of the acquiree, and converted all of these shares into Flex awards. As a result, the Company now offers an additional equity compensation plan, the BrightBox Technologies 2013 Plan (the "BrightBox Plan"). The following table summarizes the Company’s share-based compensation expense: Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands) Cost of sales $ 2,636 $ 2,015 $ 5,069 $ 4,033 Selling, general and administrative expenses 20,097 14,185 41,461 28,293 Total share-based compensation expense $ 22,733 $ 16,200 $ 46,530 $ 32,326 The 2010 Equity Incentive Plan Total unrecognized compensation expense related to share options under the 2010 Plan is not significant. As of September 30, 2016 , the number of options outstanding and exercisable under the 2010 Plan was 0.2 million , for both, and at a weighted-average exercise price of $9.27 per share and $9.23 per share, respectively. During the six-month period ended September 30, 2016 , the Company granted 5.9 million unvested share bonus awards under the 2010 Plan. Of this amount, approximately 5.0 million unvested share bonus awards have an average grant date price of $12.81 per share. Further, approximately 0.7 million of these unvested shares represents the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions. The average grant date fair value of these awards contingent on certain market conditions was estimated to be $17.57 per award and was calculated using a Monte Carlo simulation. The remaining 0.2 million of unvested share bonus awards under the 2010 Plan have an average grant date price of $12.82 per share and represents the target amount of grants made to certain executive officers whereby vesting is contingent on meeting certain free cash flow targets. The number of shares under the 2010 Plan, contingent on market conditions that ultimately will vest range from zero up to a maximum of 1.4 million based on a measurement of the percentile rank of the Company’s total shareholder return over a certain specified period against the Standard and Poor’s (“S&P”) 500 Composite Index and will cliff vest after a period of three years, if such market conditions have been met. The number of shares under the 2010 Plan, contingent on free cash flow targets that ultimately will vest range from zero up to a maximum of 0.4 million of the target payment based on a measurement of cumulative three -year increase of free cash flow from operations of the Company, and will cliff vest after a period of three years. As of September 30, 2016 , approximately 15.9 million unvested share bonus awards under the 2010 Plan were outstanding, of which vesting for a targeted amount of 2.3 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 4.6 million based on the achievement levels of the respective conditions. During the six -month period ended September 30, 2016 , 3.5 million shares under the 2010 Plan vested in connection with the share bonus awards with market conditions granted in fiscal year 2014. As of September 30, 2016 , total unrecognized compensation expense related to unvested share bonus awards under the 2010 Plan is $159.5 million , and will be recognized over a weighted-average remaining vesting period of 2.8 years. Approximately $26.3 million of the total unrecognized compensation cost, is related to awards under the 2010 Plan whereby vesting is contingent on meeting certain market conditions. The 2014 NEXTracker Equity Incentive Plan All shares previously granted under the NEXTracker plan are the result of the Company's conversion of all outstanding, unvested shares of NEXTracker into unvested shares of the Company, as part of the acquisition. Therefore, no additional share options or share bonus awards were granted by the Company during the six-month period ended September 30, 2016 . As of September 30, 2016 , total unrecognized compensation expense related to share options under the NEXTracker Plan is $11.1 million , and will be recognized over a weighted-average remaining vesting period of 2.3 years. As of September 30, 2016 , the number of options outstanding and exercisable was 2.2 million and 0.6 million , respectively, at a weighted-average exercise price of $3.44 per share and $2.72 per share, respectively. As of September 30, 2016 , approximately 2.3 million unvested share bonus awards were outstanding. The total unrecognized compensation expense related to unvested share bonus awards under the NEXTracker Plan is $12.2 million , and will be recognized over a weighted-average remaining vesting period of 2.0 years. The BrightBox Technologies 2013 Plan During the first quarter of fiscal year 2017, the Company granted 0.2 million share options under the BrightBox Plan, at an average grant date fair value price of $11.99 per share, and with a vesting period of three years from the vesting commencement date. All shares granted under the BrightBox plan are the result of the Company's conversion of all outstanding, unvested shares of BrightBox into unvested shares of the Company, as part of the acquisition. No additional grants will be made out of this plan in the future. As of September 30, 2016 , total unrecognized compensation expense related to share options under the BrightBox Plan is $1.6 million , and will be recognized over a weighted-average remaining vesting period of 2.6 years. As of September 30, 2016 , the number of options outstanding was 0.2 million , at a weighted-average exercise price of $0.51 per share. No options under this plan were exercisable as of September 30, 2016 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flex Ltd. : Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands, except per share amounts) Net income (loss) $ (2,508 ) $ 122,977 $ 103,221 $ 233,827 Shares used in computation: Weighted-average ordinary shares outstanding 544,055 563,333 544,353 564,417 Basic earnings (losses) per share $ 0.00 $ 0.22 $ 0.19 $ 0.41 Diluted earnings (losses) per share: Net income (loss) $ (2,508 ) $ 122,977 $ 103,221 $ 233,827 Shares used in computation: Weighted-average ordinary shares outstanding 544,055 563,333 544,353 564,417 Weighted-average ordinary share equivalents from stock options and awards (1) (2) — 6,322 5,581 8,871 Weighted-average ordinary shares and ordinary share equivalents outstanding 544,055 569,655 549,934 573,288 Diluted earnings (losses) per share $ 0.00 $ 0.22 $ 0.19 $ 0.41 ____________________________________________________________ (1) As a result of the Company's net loss, ordinary share equivalents from approximately 4.3 million options and share bonus awards were excluded from the calculation of diluted earnings (losses) per share for the three-month period ended September 30, 2016. Options to purchase ordinary shares of 1.7 million and 1.1 million during the three -month periods ended September 30, 2016 and September 25, 2015 , respectively, and share bonus awards of 3.4 million and 5.3 million for the three-month period ended September 30, 2016 and September 25, 2015 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) Options to purchase ordinary shares of 0.9 million and 1.2 million during the six-month periods ended September 30, 2016 and September 25, 2015 , respectively, and share bonus awards of 2.9 million for the six-month period ended September 25, 2015 were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. An immaterial amount of anti-dilutive share bonus awards was excluded for the six-month period ended September 30, 2016 . |
INTEREST AND OTHER, NET
INTEREST AND OTHER, NET | 6 Months Ended |
Sep. 30, 2016 | |
INTEREST AND OTHER, NET | |
INTEREST AND OTHER, NET | INTEREST AND OTHER, NET During the three-month and six-month periods ended September 30, 2016 , the Company recognized interest expense of $26.5 million and $53.4 million , respectively, on its debt obligations outstanding during the periods. During the three-month and six-month periods ended September 25, 2015 , the Company recognized interest expense of $25.1 million and $45.2 million , respectively. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Foreign Currency Contracts The Company primarily enters into forward contracts and foreign currency swap contracts to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of September 30, 2016 , the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.2 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 874,000 — $ 130,927 $ — EUR 23,090 104,160 25,842 118,953 HUF 15,775,600 — 57,280 — ILS 112,280 — 29,891 — INR 1,282,982 — 18,600 — MXN 1,673,000 — 85,680 — MYR 153,000 7,000 36,970 1,691 PLN 62,840 — 16,379 — Other N/A N/A 35,271 12,350 436,840 132,994 Other Foreign Currency Contracts BRL — 392,000 — 120,653 CHF 8,960 21,150 9,210 21,739 CNY 2,582,317 — 386,097 — DKK 167,400 157,200 25,141 23,609 EUR 869,642 1,150,415 973,337 1,287,735 GBP 32,336 58,752 42,023 76,386 HUF 21,422,970 19,425,090 77,786 70,532 ILS 58,900 91,420 15,680 24,338 INR 2,780,000 26,687 41,817 400 MXN 1,808,051 637,803 93,003 32,889 MYR 348,477 20,200 84,204 4,881 PLN 122,136 73,747 31,834 19,222 SEK 225,946 298,985 26,294 34,857 SGD 43,274 3,620 31,775 2,658 Other N/A N/A 45,748 34,906 1,883,949 1,754,805 Total Notional Contract Value in USD $ 2,320,789 $ 1,887,799 As of September 30, 2016 , the fair value of the Company’s short-term foreign currency contracts was not material and is included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of September 30, 2016 and March 31, 2016 , the Company also has included net deferred gains and losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred losses were not material as of September 30, 2016 , and are expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of interest and other, net in the condensed consolidated statements of operations. The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet September 30, March 31, Balance Sheet September 30, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 6,253 $ 5,510 Other current liabilities $ 4,456 $ 2,446 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 5,226 $ 17,138 Other current liabilities $ 6,361 $ 18,645 The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component, net of tax, are as follows: Three-Month Periods Ended September 30, 2016 September 25, 2015 Unrealized loss on derivative Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (40,174 ) $ (84,532 ) $ (124,706 ) $ (55,437 ) $ (109,456 ) $ (164,893 ) Other comprehensive gain (loss) before reclassifications (1,169 ) 4,213 3,044 (13,818 ) (30,267 ) (44,085 ) Net (gain) losses reclassified from accumulated other comprehensive loss (890 ) — (890 ) 8,274 — 8,274 Net current-period other comprehensive gain (loss) (2,059 ) 4,213 2,154 (5,544 ) (30,267 ) (35,811 ) Ending balance $ (42,233 ) $ (80,319 ) $ (122,552 ) $ (60,981 ) $ (139,723 ) $ (200,704 ) Six-Month Periods Ended September 30, 2016 September 25, 2015 Unrealized gain Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (41,522 ) $ (94,393 ) $ (135,915 ) $ (68,266 ) $ (112,239 ) $ (180,505 ) Other comprehensive gain (loss) before reclassifications 324 14,299 14,623 (14,419 ) (27,636 ) (42,055 ) Net (gains) losses reclassified from accumulated other comprehensive loss (1,035 ) (225 ) (1,260 ) 21,704 152 21,856 Net current-period other comprehensive gain (loss) (711 ) 14,074 13,363 7,285 (27,484 ) (20,199 ) Ending balance $ (42,233 ) $ (80,319 ) $ (122,552 ) $ (60,981 ) $ (139,723 ) $ (200,704 ) Net gains reclassified from accumulated other comprehensive loss during the six -month period ended September 30, 2016 relating to derivative instruments and other includes $1.9 million attributable to the Company’s cash flow hedge instruments which were primarily recognized as a component of cost of sales in the condensed consolidated statement of operations. Net losses reclassified from accumulated other comprehensive loss during the six -month period ended September 25, 2015 relating to derivative instruments and other includes $20.7 million attributable to the Company’s cash flow hedge instruments which were recognized as a component of cost of sales in the condensed consolidated statement of operations. Substantially all unrealized losses relating to derivative instruments and other, reclassified from accumulated other comprehensive loss for the three -month and six-month periods ended September 25, 2015 , was recognized as a component of cost of sales in the condensed consolidated statement of operations, which primarily relate to the Company’s foreign currency contracts accounted for as cash flow hedges. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION | 6 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
TRADE RECEIVABLES SECURITIZATION | TRADE RECEIVABLES SECURITIZATION The Company sells trade receivables under two asset-backed securitization programs and under an accounts receivable factoring program. Asset-Backed Securitization Programs The Company continuously sells designated pools of trade receivables under its Global Asset-Backed Securitization Agreement (the “Global Program”) and its North American Asset-Backed Securitization Agreement (the “North American Program,” collectively, the “ABS Programs”) to affiliated special purpose entities, each of which in turn sells 100% of the receivables to unaffiliated financial institutions. These programs allow the operating subsidiaries to receive a cash payment and a deferred purchase price receivable for sold receivables. Following the transfer of the receivables to the special purpose entities, the transferred receivables are isolated from the Company and its affiliates, and upon the sale of the receivables from the special purpose entities to the unaffiliated financial institutions, effective control of the transferred receivables is passed to the unaffiliated financial institutions, which has the right to pledge or sell the receivables. Although the special purpose entities are consolidated by the Company, they are separate corporate entities and their assets are available first to satisfy the claims of their creditors. The investment limits set by the financial institutions are $700.0 million for the Global Program, of which $600.0 million is committed and $100.0 million is uncommitted, and $265.0 million for the North American Program, of which $225.0 million is committed and $40.0 million is uncommitted. Both programs require a minimum level of deferred purchase price receivable to be retained by the Company in connection with the sales. The Company services, administers and collects the receivables on behalf of the special purpose entities and receives a servicing fee of 0.1% to 0.5% of serviced receivables per annum. Servicing fees recognized during the three-month and six-month periods ended September 30, 2016 and September 25, 2015 were not material and are included in interest and other, net within the condensed consolidated statements of operations. As the Company estimates the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets and liabilities are recognized. As of September 30, 2016 , approximately $1.3 billion of accounts receivable had been sold to the special purpose entities under the ABS Programs for which the Company had received net cash proceeds of approximately $851.0 million and deferred purchase price receivables of approximately $461.5 million . As of March 31, 2016 , approximately $1.4 billion of accounts receivable had been sold to the special purpose entities for which the Company had received net cash proceeds of $880.8 million and deferred purchase price receivables of approximately $501.1 million . The portion of the purchase price for the receivables which is not paid by the unaffiliated financial institutions in cash is a deferred purchase price receivable, which is paid to the special purpose entity as payments on the receivables are collected from account debtors. The deferred purchase price receivable represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The deferred purchase price receivables are included in other current assets as of September 30, 2016 and March 31, 2016 , and were carried at the expected recovery amount of the related receivables. The difference between the carrying amount of the receivables sold under these programs and the sum of the cash and fair value of the deferred purchase price receivables received at time of transfer is recognized as a loss on sale of the related receivables and recorded in interest and other, net in the condensed consolidated statements of operations and were immaterial for all periods presented. As of September 30, 2016 and March 31, 2016 , the accounts receivable balances that were sold under the ABS Programs were removed from the condensed consolidated balance sheets and the net cash proceeds received by the Company were included as cash provided by operating activities in the condensed consolidated statements of cash flows. For the six-month periods ended September 30, 2016 and September 25, 2015 , cash flows from sales of receivables under the ABS Programs consisted of approximately $2.8 billion and $2.4 billion , for transfers of receivables, respectively (of which approximately $92.7 million and $255.3 million , respectively, represented new transfers and the remainder proceeds from collections reinvested in revolving-period transfers). The following table summarizes the activity in the deferred purchase price receivables account: Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands) Beginning balance $ 460,334 $ 516,287 $ 501,097 $ 600,672 Transfers of receivables 760,540 983,677 1,522,724 1,750,725 Collections (759,330 ) (962,345 ) (1,562,277 ) (1,813,778 ) Ending balance $ 461,544 $ 537,619 $ 461,544 $ 537,619 Trade Accounts Receivable Sale Programs The Company also sold accounts receivables to certain third-party banking institutions. The outstanding balance of receivables sold and not yet collected was approximately $362.7 million and $339.1 million as of September 30, 2016 and March 31, 2016 , respectively. For the six-month periods ended September 30, 2016 and September 25, 2015 , total accounts receivable sold to certain third party banking institutions was approximately $0.8 billion and $1.2 billion , respectively. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows. |
FAIR VALUE MEASUREMENT OF ASSET
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | 6 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 - Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. The Company has deferred compensation plans for its officers and certain other employees. Amounts deferred under the plans are invested in hypothetical investments selected by the participant or the participant’s investment manager. The Company’s deferred compensation plan assets are for the most part included in other noncurrent assets on the condensed consolidated balance sheets and primarily include investments in equity securities that are valued using active market prices. Level 2 - Applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets) such as cash and cash equivalents and money market funds; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. The Company values foreign exchange forward contracts using level 2 observable inputs which primarily consist of an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. The Company’s cash equivalents are comprised of bank deposits and money market funds, which are valued using level 2 inputs, such as interest rates and maturity periods. Due to their short-term nature, their carrying amount approximates fair value. The Company’s deferred compensation plan assets also include money market funds, mutual funds, corporate and government bonds and certain convertible securities that are valued using prices obtained from various pricing sources. These sources price these investments using certain market indices and the performance of these investments in relation to these indices. As a result, the Company has classified these investments as level 2 in the fair value hierarchy. Level 3 - Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company has accrued for contingent consideration in connection with its business acquisitions, which is measured at fair value based on certain internal models and unobservable inputs. The fair value of the liability was estimated using a simulation-based measurement technique with significant inputs that are not observable in the market and thus represents a level 3 fair value measurement. The significant inputs in the fair value measurement not supported by market activity included the Company's probability assessments of expected future revenue during the earn-out period and associated volatility, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the merger agreement. Significant decreases in expected revenue during the earn-out period, or significant increases in the discount rate or volatility in isolation would result in lower fair value estimates. The interrelationship between these inputs is not considered significant. The following table summarizes the activities related to contingent consideration: Three-Month Periods Ended Six-Month Periods Ended September 30, September 25, September 30, September 25, (In thousands) Beginning balance $ 75,258 $ 4,500 $ 73,423 $ 4,500 Additions to accrual — — — — Payments (2,221 ) — (2,221 ) — Fair value adjustments 2,577 — 4,412 — Ending balance $ 75,614 $ 4,500 $ 75,614 $ 4,500 The Company values deferred purchase price receivables relating to its asset-backed securitization program based on a discounted cash flow analysis using unobservable inputs (i.e., level 3 inputs), which are primarily risk free interest rates adjusted for the credit quality of the underlying creditor. Due to its high credit quality and short term maturity, the fair value approximates carrying value. Significant increases in either of the major unobservable inputs (credit spread, risk free interest rate) in isolation would result in lower fair value estimates, however the impact is not meaningful. The interrelationship between these inputs is also insignificant. Refer to note 8 for a reconciliation of the change in the deferred purchase price receivable during the three-month and six-month periods ended September 30, 2016 and September 25, 2015 . There were no transfers between levels in the fair value hierarchy during the three-month and six-month periods ended September 30, 2016 and September 25, 2015 . Financial Instruments Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet) $ — $ 1,120,831 $ — $ 1,120,831 Deferred purchase price receivable (Note 8) — — 461,544 461,544 Foreign exchange contracts (Note 6) — 11,479 — 11,479 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,497 48,124 — 55,621 Liabilities: 0 Foreign exchange contracts (Note 6) $ — $ (10,817 ) $ — $ (10,817 ) Contingent consideration in connection with business acquisitions — — (75,614 ) (75,614 ) Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet) $ — $ 1,074,132 $ — $ 1,074,132 Deferred purchase price receivable (Note 8) — — 501,097 501,097 Foreign exchange contracts (Note 6) — 22,648 — 22,648 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 9,228 40,556 — 49,784 Liabilities: 0 Foreign exchange contracts (Note 6) $ — $ (21,091 ) $ — $ (21,091 ) Contingent consideration in connection with business acquisitions — — (73,423 ) (73,423 ) Other financial instruments The following table presents the Company’s debt not carried at fair value: As of September 30, 2016 As of March 31, 2016 Carrying Fair Carrying Fair Fair Value (In thousands) Term Loan, including current portion, due in installments through August 2018 $ 570,000 $ 568,222 $ 577,500 $ 573,533 Level 1 Term Loan, including current portion, due in installments through March 2019 525,000 520,406 547,500 542,709 Level 1 4.625% Notes due February 2020 500,000 536,250 500,000 524,735 Level 1 5.000% Notes due February 2023 500,000 550,000 500,000 507,500 Level 1 4.750% Notes due June 2025 595,782 639,000 595,589 604,926 Level 1 Total $ 2,690,782 $ 2,813,878 $ 2,720,589 $ 2,753,403 The term loans and Notes due February 2020, February 2023 and June 2025 are valued based on broker trading prices in active markets. The Company values its €50 million (approximately $56.1 million as of September 30, 2016 ), 5 -year, unsecured, term-loan due September 30, 2020 based on the current market rate, and as of September 30, 2016 , the carrying amount approximates fair value. |
BUSINESS AND ASSET ACQUISITIONS
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES | 6 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES | BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES Business and asset acquisitions During the six-month period ended September 30, 2016 , the Company completed three acquisitions that were not individually, nor in the aggregate, significant to the consolidated financial position, results of operations and cash flows of the Company. Most notably is the Company’s acquisition of two manufacturing and development facilities from Bose Corporation (“Bose”), a global leader in audio systems. The acquisition expanded the Company’s capabilities in the audio market and is included in the CTG segment. The other acquired businesses strengthen the Company's capabilities in the energy market within the IEI segment. The Company paid a total of $189.3 million , net of cash acquired, of which $ 171.6 million , net of $17.8 million of cash acquired is related to the Bose acquisition. The Company acquired primarily $73.6 million of inventory, $66.8 million of property and equipment, recorded goodwill of $52.8 million and intangible assets of $44.9 million substantially related to Bose. The intangibles will amortize over a weighted-average estimated useful life of 7.4 years. In connection with these acquisitions, the Company assumed $57.5 million in other liabilities including additional consideration of $28.0 million payable to Bose by the end of fiscal year 2017. Further, the equity incentive plan of one of the acquirees was assumed as part of the acquisition. The results of operations for each of the acquisitions completed in fiscal year 2017 , including the Bose acquisition, were included in the Company’s consolidated financial results beginning on the date of each acquisition, and the total amount of net income and revenue of the acquisitions, collectively, were immaterial to the Company's consolidated financial results for the three-month and six-month periods ended September 30, 2016. Pro-forma results of operations for the acquisitions completed in fiscal year 2017 have not been presented because the effects, individually and in the aggregate, were not material to the Company’s consolidated financial results for all periods presented. The total amount of net income and revenue for the acquisitions completed in fiscal year 2016, collectively, was not material to the Company’s consolidated financial results for the three-month and six-month period ended September 30, 2016 . On a pro-forma basis, and assuming the fiscal year 2016 acquisitions occurred on the first day of that fiscal year, or April 1, 2015, the Company's net income would have been estimated to be $130.1 million and $243.1 million for the three-month and six-month periods ended September 25, 2015 , respectively. Pro-forma revenue for the acquisitions in fiscal year 2016 has not been presented because the effect, collectively, was not material to the Company’s consolidated revenues for all periods presented. The Company is in the process of evaluating the fair value of the assets and liabilities related to business combinations completed during fiscal year 2017. Additional information, which existed as of the acquisition date, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the date of acquisition. Changes to amounts recorded as assets and liabilities may result in a corresponding adjustment to goodwill during the respective measurement periods. Divestitures During the six-month period ended September 30, 2016 , the Company disposed of two non-strategic businesses within the HRS and IEI segments. The Company received $33.0 million of proceeds, net of an immaterial amount of cash held in one of the divested businesses. The property and equipment and various other assets sold, and liabilities transferred were not material to the Company's consolidated financial results. The loss on disposition was not material to the Company’s consolidated financial results, and is included in other charges, net in the condensed consolidated statements of operations for the six-month period ended September 30, 2016 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and other legal matters During the third quarter of fiscal year 2014, one of the Company's Brazilian subsidiaries received an assessment for certain sales and import taxes. The tax assessment notice was for nine months of calendar year 2010 for an alleged amount of 52 million Brazilian reals (approximately USD $16 million based on the exchange rate as of September 30, 2016 ) plus interest. This assessment is in the second stage of the review process at the administrative level. During the fourth quarter of fiscal year 2016, the same Brazilian subsidiary received a further assessment related to the same import taxes of an additional 57 million Brazilian reals (approximately USD $18 million based on the exchange rate as of September 30, 2016 ) plus interest. This assessment is in the first stage of the review process at the administrative level. The Company plans to continue to vigorously oppose both of these assessments, as well as any future assessments. The Company is unable to determine the likelihood of an unfavorable outcome of these assessments against our Brazilian subsidiary. While the Company believes there is no legal basis for the alleged liabilities, due to the complexities and uncertainty surrounding the administrative-review and judicial processes in Brazil and the nature of the claims, it is unable to reasonably estimate a range of loss for this assessment or any future assessments that are reasonably possible. The Company does not expect final judicial determination on either of these claims for several years. During fiscal year 2015, one of the Company's non-operating Brazilian subsidiaries received an assessment of approximately USD $100 million related to income and social contribution taxes, interest and penalties. During the first quarter of fiscal year 2017, the Company received a final favorable judgment in the judicial process reversing the assessment and the case is now closed. As the Company had previously determined there was no legal basis for the assessment, no adjustment was required to be recorded during the first quarter of fiscal year 2017. In addition, from time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of these matters, which are in excess of amounts already accrued in the Company’s condensed consolidated balance sheets, would not be material to the financial statements as a whole. |
SHARE REPURCHASES
SHARE REPURCHASES | 6 Months Ended |
Sep. 30, 2016 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
SHARE REPURCHASES | SHARE REPURCHASES During the three-month and six-month periods ended September 30, 2016 , the Company repurchased 6.9 million shares at an aggregate purchase price of $90.0 million , and 14.2 million shares at an aggregate purchase price of $181.0 million , respectively, and retired all of these shares. Under the Company’s current share repurchase program, the Board of Directors authorized repurchases of its outstanding ordinary shares for up to $500 million in accordance with the share repurchase mandate approved by the Company’s shareholders at the date of the most recent Annual General Meeting held on August 24, 2016 . As of September 30, 2016 , shares in the aggregate amount of $450.2 million were available to be repurchased under the current plan. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company has four reportable segments: HRS, CTG, IEI, and CEC. These segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 for a description of the various product categories manufactured under each of these segments. An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, restructuring charges, distressed customer charges, other charges (income), net and interest and other, net. Selected financial information by segment is as follows: Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands) Net sales: Communications & Enterprise Compute $ 2,101,922 $ 2,204,966 $ 4,297,912 $ 4,171,528 Consumer Technology Group 1,664,736 2,011,089 2,978,518 3,576,052 Industrial & Emerging Industries 1,242,722 1,145,842 2,531,737 2,275,981 High Reliability Solutions 999,145 954,865 2,077,171 1,859,449 $ 6,008,525 $ 6,316,762 $ 11,885,338 $ 11,883,010 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 52,453 $ 65,758 $ 114,352 $ 122,822 Consumer Technology Group 55,314 41,170 79,948 80,013 Industrial & Emerging Industries 37,363 32,268 87,340 61,268 High Reliability Solutions 78,707 71,199 167,243 131,085 Corporate and Other (26,902 ) (14,075 ) (61,702 ) (39,786 ) Total segment income 196,935 196,320 387,181 355,402 Reconciling items: Intangible amortization 21,986 16,127 43,584 23,798 Stock-based compensation 22,733 16,200 46,530 32,326 Inventory impairment and other (1) 92,915 — 92,915 — Restructuring (2) 11,539 — 11,539 — Other charges, net 8,388 1,678 11,917 1,842 Interest and other, net 24,632 22,035 49,031 38,540 Income before income taxes $ 14,742 $ 140,280 $ 131,665 $ 258,896 (1) During the fourth quarter of fiscal year 2016, the Company accepted return of previously shipped inventory from a former customer, SunEdison, Inc. ("SunEdison"), of approximately $90 million . On April 21, 2016, SunEdison filed a petition for reorganization under bankruptcy law, and as a result, the Company recognized a bad debt reserve of $61.0 million as of March 31, 2016, associated with its outstanding SunEdison receivables. During the three-month period ended September 30, 2016, prices for solar panel modules declined significantly. The Company determined that certain solar panel inventory on hand as of September 30, 2016 was not fully recoverable and recorded a charge of $60.0 million to reduce the carrying costs to market in the three and six-month periods ended September 30, 2016. The Company also recognized a $16.0 million impairment charge for solar module equipment and $16.9 million primarily related to negative margin sales and other associated solar panel direct costs incurred during the same periods. The total charge of $92.9 million is included in cost of sales for the three and six-month periods ended September 30, 2016 but is excluded from segment results above. (2) The Company has initiated a plan to rationalize the current footprint at existing sites including corporate SG&A functions and to continue to shift the talent base in support of its sketch to scale tm initiatives. As part of this plan, approximately $11.5 million was recognized in the quarter ended September 30, 2016. The Company expects to finalize the plan by the end of fiscal year 2017. Corporate and other primarily includes corporate services costs that are not included in the Chief Operating Decision Maker's ("CODM") assessment of the performance of each of the identified reporting segments. Property and equipment on a segment basis is not disclosed as it is not separately identified and is not internally reported by segment to the Company's CODM. |
SUPPLEMENTAL GUARANTOR AND NON-
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Sep. 30, 2016 | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Flex Ltd. (“Parent”) has three tranches of Notes of $500 million , $500 million , and $600 million , respectively, each outstanding, which mature on February 15, 2020, February 15, 2023 and June 15, 2025, respectively. These Notes are senior unsecured obligations, and are guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company’s 100% owned subsidiaries (the “guarantor subsidiaries”). These subsidiary guarantees will terminate upon 1) a sale or other disposition of the guarantor or the sale or disposition of all or substantially all the assets of the guarantor (other than to the Parent or a subsidiary); 2) such guarantor ceasing to be a guarantor or a borrower under the Company’s Term Loan Agreement and the Revolving Line of Credit; 3) defeasance or discharge of the Notes, as provided in the Notes indenture; or 4) if at any time the Notes are rated investment grade, provided that each rating agency confirms that the Notes will continue to be rated investment grade after the Note Guaranties are terminated. In lieu of providing separate financial statements for the guarantor subsidiaries, the Company has included the accompanying condensed consolidating financial statements, which are presented using the equity method of accounting. The principal elimination entries relate to investment in subsidiaries and intercompany balances and transactions, including transactions with the Company’s non-guarantor subsidiaries. Condensed Consolidating Balance Sheets as of September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 823,435 $ 122,531 $ 591,090 $ — $ 1,537,056 Accounts receivable — 941,596 1,399,797 — 2,341,393 Inventories — 1,545,142 2,017,075 — 3,562,217 Inter company receivable 9,952,291 7,457,490 14,178,475 (31,588,256 ) — Other current assets 2,947 179,553 835,454 — 1,017,954 Total current assets 10,778,673 10,246,312 19,021,891 (31,588,256 ) 8,458,620 Property and equipment, net — 576,336 1,759,623 — 2,335,959 Goodwill and other intangible assets, net 1,239 90,316 1,304,208 — 1,395,763 Other assets 2,224,133 276,072 2,001,421 (4,030,834 ) 470,792 Investment in subsidiaries 2,739,759 3,274,766 17,932,399 (23,946,924 ) — Total assets $ 15,743,804 $ 14,463,802 $ 42,019,542 $ (59,566,014 ) $ 12,661,134 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 58,836 $ 946 $ 6,187 $ — $ 65,969 Accounts payable — 1,497,129 3,017,437 — 4,514,566 Accrued payroll — 119,846 290,741 — 410,587 Inter company payable 10,416,283 10,238,176 10,933,797 (31,588,256 ) — Other current liabilities 21,350 796,156 1,045,039 — 1,862,545 Total current liabilities 10,496,469 12,652,253 15,293,201 (31,588,256 ) 6,853,667 Long term liabilities 2,685,469 2,058,750 2,489,774 (4,030,834 ) 3,203,159 Flex Ltd. shareholders’ equity (deficit) 2,561,866 (247,201 ) 24,194,125 (23,946,924 ) 2,561,866 Noncontrolling interests — — 42,442 — 42,442 Total shareholders’ equity (deficit) 2,561,866 (247,201 ) 24,236,567 (23,946,924 ) 2,604,308 Total liabilities and shareholders’ equity $ 15,743,804 $ 14,463,802 $ 42,019,542 $ (59,566,014 ) $ 12,661,134 Condensed Consolidating Balance Sheets as of March 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 734,869 $ 148,201 $ 724,500 $ — $ 1,607,570 Accounts receivable — 729,331 1,315,426 — 2,044,757 Inventories — 1,482,410 2,009,246 — 3,491,656 Inter company receivable 9,105,728 5,568,392 12,404,722 (27,078,842 ) — Other current assets 2,951 180,842 987,350 — 1,171,143 Total current assets 9,843,548 8,109,176 17,441,244 (27,078,842 ) 8,315,126 Property and equipment, net — 553,072 1,704,561 — 2,257,633 Goodwill and other intangible assets, net 175 60,895 1,284,750 — 1,345,820 Other assets 2,249,145 267,034 2,004,437 (4,054,214 ) 466,402 Investment in subsidiaries 2,815,426 3,010,111 18,175,348 (24,000,885 ) — Total assets $ 14,908,294 $ 12,000,288 $ 40,610,340 $ (55,133,941 ) $ 12,384,981 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 58,836 $ 946 $ 5,384 $ — $ 65,166 Accounts payable — 1,401,835 2,846,457 — 4,248,292 Accrued payroll — 114,509 239,038 — 353,547 Inter company payable 9,562,405 7,999,335 9,517,102 (27,078,842 ) — Other current liabilities 33,008 869,470 1,002,722 — 1,905,200 Total current liabilities 9,654,249 10,386,095 13,610,703 (27,078,842 ) 6,572,205 Long term liabilities 2,683,173 2,063,988 2,514,299 (4,054,214 ) 3,207,246 Flex Ltd. shareholders’ equity (deficit) 2,570,872 (449,795 ) 24,450,680 (24,000,885 ) 2,570,872 Noncontrolling interests — — 34,658 — 34,658 Total shareholders’ equity (deficit) 2,570,872 (449,795 ) 24,485,338 (24,000,885 ) 2,605,530 Total liabilities and shareholders’ equity $ 14,908,294 $ 12,000,288 $ 40,610,340 $ (55,133,941 ) $ 12,384,981 Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 3,991,248 $ 5,191,500 $ (3,174,223 ) $ 6,008,525 Cost of sales — 3,686,831 5,182,226 (3,174,223 ) 5,694,834 Gross profit — 304,417 9,274 — 313,691 Selling, general and administrative expenses — 75,351 168,592 — 243,943 Intangible amortization 75 717 21,194 — 21,986 Interest and other, net 125,803 243,460 (336,243 ) — 33,020 Income (loss) from continuing operations before income taxes (125,878 ) (15,111 ) 155,731 — 14,742 Provision for income taxes 11 2,476 14,763 — 17,250 Equity in earnings in subsidiaries 123,381 (63,394 ) (52,231 ) (7,756 ) — Net income (loss) $ (2,508 ) $ (80,981 ) $ 88,737 $ (7,756 ) $ (2,508 ) Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,482,213 $ 5,514,535 $ (3,679,986 ) $ 6,316,762 Cost of sales — 4,141,254 5,458,578 (3,679,986 ) 5,919,846 Gross profit — 340,959 55,957 — 396,916 Selling, general and administrative expenses — 66,682 150,114 — 216,796 Intangible amortization 75 960 15,092 — 16,127 Interest and other, net (131,637 ) 277,002 (121,652 ) — 23,713 Income (loss) from continuing operations before income taxes 131,562 (3,685 ) 12,403 — 140,280 Provision for (benefit from) income taxes — (5,658 ) 22,961 — 17,303 Equity in earnings in subsidiaries (8,585 ) (33,421 ) 16,794 25,212 — Net income (loss) $ 122,977 $ (31,448 ) $ 6,236 $ 25,212 $ 122,977 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 7,821,600 $ 9,528,146 $ (5,464,408 ) $ 11,885,338 Cost of sales — 7,100,113 9,529,947 (5,464,408 ) 11,165,652 Gross profit — 721,487 (1,801 ) — 719,686 Selling, general and administrative expenses — 145,321 338,168 — 483,489 Intangible amortization 150 1,434 42,000 — 43,584 Interest and other, net (190,588 ) 659,777 (408,241 ) — 60,948 Income (loss) from continuing operations before income taxes 190,438 (85,045 ) 26,272 — 131,665 Provision for income taxes 11 3,070 25,363 — 28,444 Equity in earnings in subsidiaries (87,206 ) (64,121 ) (74,336 ) 225,663 — Net income (loss) $ 103,221 $ (152,236 ) $ (73,427 ) $ 225,663 $ 103,221 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 8,528,598 $ 9,450,050 $ (6,095,638 ) $ 11,883,010 Cost of sales — 7,785,313 9,444,078 (6,095,638 ) 11,133,753 Gross profit — 743,285 5,972 — 749,257 Selling, general and administrative expenses — 130,238 295,943 — 426,181 Intangible amortization 150 1,921 21,727 — 23,798 Interest and other, net (397,020 ) 613,414 (176,012 ) — 40,382 Income (loss) from continuing operations before income taxes 396,870 (2,288 ) (135,686 ) — 258,896 Provision for income taxes — 3,441 21,628 — 25,069 Equity in earnings in subsidiaries (163,043 ) (51,830 ) 52,755 162,118 — Net income (loss) $ 233,827 $ (57,559 ) $ (104,559 ) $ 162,118 $ 233,827 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 30, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ (2,508 ) $ (80,981 ) $ 88,737 $ (7,756 ) $ (2,508 ) Other comprehensive income: Foreign currency translation adjustments, net of zero tax 4,213 (7,528 ) (3,368 ) 10,896 4,213 Unrealized gain (loss) on derivative instruments and other, net of zero tax (2,059 ) 1,050 (2,059 ) 1,009 (2,059 ) Comprehensive income (loss) $ (354 ) $ (87,459 ) $ 83,310 $ 4,149 $ (354 ) Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 122,977 $ (31,448 ) $ 6,236 $ 25,212 $ 122,977 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (30,267 ) (33,696 ) (30,633 ) 64,329 (30,267 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (5,544 ) 1,160 (5,544 ) 4,384 (5,544 ) Comprehensive income (loss) $ 87,166 $ (63,984 ) $ (29,941 ) $ 93,925 $ 87,166 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 30, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 103,221 $ (152,236 ) $ (73,427 ) $ 225,663 $ 103,221 Other comprehensive income (loss): 0 Foreign currency translation adjustments, net of zero tax 14,074 10,181 21,395 (31,576 ) 14,074 Unrealized gain (loss) on derivative instruments and other, net of zero tax (711 ) 3,500 (711 ) (2,789 ) (711 ) Comprehensive income (loss) $ 116,584 $ (138,555 ) $ (52,743 ) $ 191,298 $ 116,584 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 233,827 $ (57,559 ) $ (104,559 ) $ 162,118 $ 233,827 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (27,484 ) (57,186 ) (51,530 ) 108,716 (27,484 ) Unrealized gain on derivative instruments and other, net of zero tax 7,285 5,785 7,285 (13,070 ) 7,285 Comprehensive income (loss) $ 213,628 $ (108,960 ) $ (148,804 ) $ 257,764 $ 213,628 Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 157,337 $ (390,057 ) $ 776,305 $ (33 ) $ 543,552 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (92,393 ) (186,982 ) — (279,375 ) Acquisition of businesses, net of cash acquired — (80,339 ) (109,556 ) — (189,895 ) Proceeds from divestiture of businesses, net of cash held in divested businesses — 20,500 15,573 — 36,073 Investing cash flows to affiliates (426,040 ) (2,041,309 ) (669,967 ) 3,137,316 — Other investing activities, net (1,213 ) (7,051 ) 28,621 — 20,357 Net cash used in investing activities (427,253 ) (2,200,592 ) (922,311 ) 3,137,316 (412,840 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 74,944 — 91 — 75,035 Repayments of bank borrowings, long-term debt and capital lease obligations (105,000 ) (3,491 ) (2,101 ) (110,592 ) Payments for repurchases of ordinary shares (184,698 ) — — — (184,698 ) Net proceeds from issuance of ordinary shares 11,344 — — — 11,344 Financing cash flows from affiliates 539,454 2,581,240 16,589 (3,137,283 ) — Other financing activities, net 30,000 (11,347 ) (25,489 ) — (6,836 ) Net cash provided by financing activities 366,044 2,566,402 (10,910 ) (3,137,283 ) (215,747 ) Effect of exchange rates on cash and cash equivalents (7,562 ) (1,423 ) 23,506 — 14,521 Net increase (decrease) in cash and cash equivalents 88,566 (25,670 ) (133,410 ) — (70,514 ) Cash and cash equivalents, beginning of period 734,869 148,201 724,500 — 1,607,570 Cash and cash equivalents, end of period $ 823,435 $ 122,531 $ 591,090 $ — $ 1,537,056 Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 389,949 $ (248,082 ) $ 520,128 $ — $ 661,995 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (88,699 ) (205,330 ) 11 (294,018 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — (559,442 ) (82,471 ) — (641,913 ) Investing cash flows from (to) affiliates (1,326,493 ) (836,415 ) (1,194,368 ) 3,357,276 — Other investing activities, net — (22,822 ) 12,306 — (10,516 ) Net cash used in investing activities (1,326,493 ) (1,507,378 ) (1,469,863 ) 3,357,287 (946,447 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 595,309 209 35 — 595,553 Repayments of bank borrowings, long-term debt and capital lease obligations (17,507 ) (1,039 ) (2,544 ) — (21,090 ) Payments for repurchases of ordinary shares (241,978 ) — — — (241,978 ) Net proceeds from issuance of ordinary shares 49,074 — — — 49,074 Financing cash flows from affiliates 435,540 1,811,532 1,110,215 (3,357,287 ) — Other financing activities, net — — (37,872 ) — (37,872 ) Net cash provided by financing activities 820,438 1,810,702 1,069,834 (3,357,287 ) 343,687 Effect of exchange rates on cash and cash equivalents 24,766 2,955 (46,937 ) — (19,216 ) Net decrease (increase) in cash and cash equivalents (91,340 ) 58,197 73,162 — 40,019 Cash and cash equivalents, beginning of period 608,971 168,272 851,165 — 1,628,408 Cash and cash equivalents, end of period $ 517,631 $ 226,469 $ 924,327 $ — $ 1,668,427 |
ORGANIZATION OF THE COMPANY A22
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncement In March 2016, the Financial Accounting Standards Board ("FASB") issued new guidance intended to reduce the cost and complexity of the accounting for share-based payments. The new guidance simplifies various aspects of the accounting for share-based payments including income tax effects, withholding requirements and forfeitures. The Company elected to early adopt this new guidance beginning in the first quarter of fiscal year 2017. The guidance eliminates additional paid in capital ("APIC") pools and requires companies to recognize all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. It also addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. Prior to adoption, the Company elected to not deduct tax benefits for stock-based compensation awards on its tax returns, and accordingly, did not have any excess tax benefits or tax deficiencies upon adoption. The Company therefore determined that adoption of the new guidance had no impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. After assessment, it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did not record a retrospective adjustment. The Company finally determined that the adoption of this guidance did not have a significant impact on the consolidated financial position, results of operations and cash flows of the Company. Recently Issued Accounting Pronouncement In August 2016, the FASB issued new guidance intended to address specific cash flow issues with the objective of reducing the existing diversity in practice. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early application permitted. The Company is currently assessing the impact of this update and the timing of adoption. |
BALANCE SHEET ITEMS (Tables)
BALANCE SHEET ITEMS (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of components of inventories | The components of inventories, net of applicable lower of cost or market write-downs, were as follows: As of September 30, 2016 As of March 31, 2016 (In thousands) Raw materials $ 2,443,372 $ 2,234,512 Work-in-progress 477,896 561,282 Finished goods 640,949 695,862 $ 3,562,217 $ 3,491,656 |
Schedule of goodwill | The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the six-month period ended September 30, 2016 : HRS CTG IEI CEC Amount (In thousands) Balance, beginning of the year $ 439,336 $ 68,234 $ 322,803 $ 111,693 $ 942,066 Additions (1) — 39,822 16,031 — 55,853 Divestitures (2) (1,787 ) — (2,640 ) — (4,427 ) Purchase accounting adjustments (3) 794 — — — 794 Foreign currency translation adjustments (2,592 ) — — — (2,592 ) Balance, end of the period $ 435,751 $ 108,056 $ 336,194 $ 111,693 $ 991,694 (1) The goodwill generated from the Company’s business combinations completed during the six-month period ended September 30, 2016 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired businesses. The goodwill is not deductible for income tax purposes. See note 10 for additional information. (2) During the six-month period ended September 30, 2016 , the Company disposed of two non-strategic businesses within the IEI and HRS segments, and recorded an aggregate reduction of goodwill of $4.4 million accordingly, which is included in the loss on sale in other expense on the condensed consolidated statement of operations. (3) Includes adjustments to estimates resulting from the finalization of management's review of the valuation of assets acquired and liabilities assumed through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company. |
Schedule of components of acquired intangible assets | The components of acquired intangible assets are as follows: As of September 30, 2016 As of March 31, 2016 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 261,695 $ (89,596 ) $ 172,099 $ 223,046 $ (66,473 ) $ 156,573 Licenses and other intangibles 290,020 (58,050 ) 231,970 285,053 (37,872 ) 247,181 Total $ 551,715 $ (147,646 ) $ 404,069 $ 508,099 $ (104,345 ) $ 403,754 |
Schedule of estimated future annual amortization expense for intangible assets | The estimated future annual amortization expense for intangible assets is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2017 (1) $ 40,069 2018 68,052 2019 61,398 2020 52,804 2021 48,562 Thereafter 133,184 Total amortization expense $ 404,069 ____________________________________________________________ (1) Represents estimated amortization for the remaining six -month period ending March 31, 2017 . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Schedule of share-based compensation expense | The following table summarizes the Company’s share-based compensation expense: Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands) Cost of sales $ 2,636 $ 2,015 $ 5,069 $ 4,033 Selling, general and administrative expenses 20,097 14,185 41,461 28,293 Total share-based compensation expense $ 22,733 $ 16,200 $ 46,530 $ 32,326 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share | The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flex Ltd. : Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands, except per share amounts) Net income (loss) $ (2,508 ) $ 122,977 $ 103,221 $ 233,827 Shares used in computation: Weighted-average ordinary shares outstanding 544,055 563,333 544,353 564,417 Basic earnings (losses) per share $ 0.00 $ 0.22 $ 0.19 $ 0.41 Diluted earnings (losses) per share: Net income (loss) $ (2,508 ) $ 122,977 $ 103,221 $ 233,827 Shares used in computation: Weighted-average ordinary shares outstanding 544,055 563,333 544,353 564,417 Weighted-average ordinary share equivalents from stock options and awards (1) (2) — 6,322 5,581 8,871 Weighted-average ordinary shares and ordinary share equivalents outstanding 544,055 569,655 549,934 573,288 Diluted earnings (losses) per share $ 0.00 $ 0.22 $ 0.19 $ 0.41 ____________________________________________________________ (1) As a result of the Company's net loss, ordinary share equivalents from approximately 4.3 million options and share bonus awards were excluded from the calculation of diluted earnings (losses) per share for the three-month period ended September 30, 2016. Options to purchase ordinary shares of 1.7 million and 1.1 million during the three -month periods ended September 30, 2016 and September 25, 2015 , respectively, and share bonus awards of 3.4 million and 5.3 million for the three-month period ended September 30, 2016 and September 25, 2015 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) Options to purchase ordinary shares of 0.9 million and 1.2 million during the six-month periods ended September 30, 2016 and September 25, 2015 , respectively, and share bonus awards of 2.9 million for the six-month period ended September 25, 2015 were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. An immaterial amount of anti-dilutive share bonus awards was excluded for the six-month period ended September 30, 2016 . |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Summary of aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts | As of September 30, 2016 , the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.2 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 874,000 — $ 130,927 $ — EUR 23,090 104,160 25,842 118,953 HUF 15,775,600 — 57,280 — ILS 112,280 — 29,891 — INR 1,282,982 — 18,600 — MXN 1,673,000 — 85,680 — MYR 153,000 7,000 36,970 1,691 PLN 62,840 — 16,379 — Other N/A N/A 35,271 12,350 436,840 132,994 Other Foreign Currency Contracts BRL — 392,000 — 120,653 CHF 8,960 21,150 9,210 21,739 CNY 2,582,317 — 386,097 — DKK 167,400 157,200 25,141 23,609 EUR 869,642 1,150,415 973,337 1,287,735 GBP 32,336 58,752 42,023 76,386 HUF 21,422,970 19,425,090 77,786 70,532 ILS 58,900 91,420 15,680 24,338 INR 2,780,000 26,687 41,817 400 MXN 1,808,051 637,803 93,003 32,889 MYR 348,477 20,200 84,204 4,881 PLN 122,136 73,747 31,834 19,222 SEK 225,946 298,985 26,294 34,857 SGD 43,274 3,620 31,775 2,658 Other N/A N/A 45,748 34,906 1,883,949 1,754,805 Total Notional Contract Value in USD $ 2,320,789 $ 1,887,799 |
Schedule of fair value of the derivative instruments utilized for foreign currency risk management purposes | The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet September 30, March 31, Balance Sheet September 30, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 6,253 $ 5,510 Other current liabilities $ 4,456 $ 2,446 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 5,226 $ 17,138 Other current liabilities $ 6,361 $ 18,645 |
ACCUMULATED OTHER COMPREHENSI27
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive loss by component, net of tax | The changes in accumulated other comprehensive loss by component, net of tax, are as follows: Three-Month Periods Ended September 30, 2016 September 25, 2015 Unrealized loss on derivative Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (40,174 ) $ (84,532 ) $ (124,706 ) $ (55,437 ) $ (109,456 ) $ (164,893 ) Other comprehensive gain (loss) before reclassifications (1,169 ) 4,213 3,044 (13,818 ) (30,267 ) (44,085 ) Net (gain) losses reclassified from accumulated other comprehensive loss (890 ) — (890 ) 8,274 — 8,274 Net current-period other comprehensive gain (loss) (2,059 ) 4,213 2,154 (5,544 ) (30,267 ) (35,811 ) Ending balance $ (42,233 ) $ (80,319 ) $ (122,552 ) $ (60,981 ) $ (139,723 ) $ (200,704 ) Six-Month Periods Ended September 30, 2016 September 25, 2015 Unrealized gain Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (41,522 ) $ (94,393 ) $ (135,915 ) $ (68,266 ) $ (112,239 ) $ (180,505 ) Other comprehensive gain (loss) before reclassifications 324 14,299 14,623 (14,419 ) (27,636 ) (42,055 ) Net (gains) losses reclassified from accumulated other comprehensive loss (1,035 ) (225 ) (1,260 ) 21,704 152 21,856 Net current-period other comprehensive gain (loss) (711 ) 14,074 13,363 7,285 (27,484 ) (20,199 ) Ending balance $ (42,233 ) $ (80,319 ) $ (122,552 ) $ (60,981 ) $ (139,723 ) $ (200,704 ) |
TRADE RECEIVABLES SECURITIZAT28
TRADE RECEIVABLES SECURITIZATION (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Summary of deferred purchase price receivables | The following table summarizes the activity in the deferred purchase price receivables account: Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands) Beginning balance $ 460,334 $ 516,287 $ 501,097 $ 600,672 Transfers of receivables 760,540 983,677 1,522,724 1,750,725 Collections (759,330 ) (962,345 ) (1,562,277 ) (1,813,778 ) Ending balance $ 461,544 $ 537,619 $ 461,544 $ 537,619 |
FAIR VALUE MEASUREMENT OF ASS29
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of business acquisitions by acquisition, contingent consideration | The following table summarizes the activities related to contingent consideration: Three-Month Periods Ended Six-Month Periods Ended September 30, September 25, September 30, September 25, (In thousands) Beginning balance $ 75,258 $ 4,500 $ 73,423 $ 4,500 Additions to accrual — — — — Payments (2,221 ) — (2,221 ) — Fair value adjustments 2,577 — 4,412 — Ending balance $ 75,614 $ 4,500 $ 75,614 $ 4,500 |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet) $ — $ 1,120,831 $ — $ 1,120,831 Deferred purchase price receivable (Note 8) — — 461,544 461,544 Foreign exchange contracts (Note 6) — 11,479 — 11,479 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,497 48,124 — 55,621 Liabilities: 0 Foreign exchange contracts (Note 6) $ — $ (10,817 ) $ — $ (10,817 ) Contingent consideration in connection with business acquisitions — — (75,614 ) (75,614 ) Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet) $ — $ 1,074,132 $ — $ 1,074,132 Deferred purchase price receivable (Note 8) — — 501,097 501,097 Foreign exchange contracts (Note 6) — 22,648 — 22,648 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 9,228 40,556 — 49,784 Liabilities: 0 Foreign exchange contracts (Note 6) $ — $ (21,091 ) $ — $ (21,091 ) Contingent consideration in connection with business acquisitions — — (73,423 ) (73,423 ) |
Schedule of debt not carried at fair value | The following table presents the Company’s debt not carried at fair value: As of September 30, 2016 As of March 31, 2016 Carrying Fair Carrying Fair Fair Value (In thousands) Term Loan, including current portion, due in installments through August 2018 $ 570,000 $ 568,222 $ 577,500 $ 573,533 Level 1 Term Loan, including current portion, due in installments through March 2019 525,000 520,406 547,500 542,709 Level 1 4.625% Notes due February 2020 500,000 536,250 500,000 524,735 Level 1 5.000% Notes due February 2023 500,000 550,000 500,000 507,500 Level 1 4.750% Notes due June 2025 595,782 639,000 595,589 604,926 Level 1 Total $ 2,690,782 $ 2,813,878 $ 2,720,589 $ 2,753,403 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by operating segment | Selected financial information by segment is as follows: Three-Month Periods Ended Six-Month Periods Ended September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 (In thousands) Net sales: Communications & Enterprise Compute $ 2,101,922 $ 2,204,966 $ 4,297,912 $ 4,171,528 Consumer Technology Group 1,664,736 2,011,089 2,978,518 3,576,052 Industrial & Emerging Industries 1,242,722 1,145,842 2,531,737 2,275,981 High Reliability Solutions 999,145 954,865 2,077,171 1,859,449 $ 6,008,525 $ 6,316,762 $ 11,885,338 $ 11,883,010 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 52,453 $ 65,758 $ 114,352 $ 122,822 Consumer Technology Group 55,314 41,170 79,948 80,013 Industrial & Emerging Industries 37,363 32,268 87,340 61,268 High Reliability Solutions 78,707 71,199 167,243 131,085 Corporate and Other (26,902 ) (14,075 ) (61,702 ) (39,786 ) Total segment income 196,935 196,320 387,181 355,402 Reconciling items: Intangible amortization 21,986 16,127 43,584 23,798 Stock-based compensation 22,733 16,200 46,530 32,326 Inventory impairment and other (1) 92,915 — 92,915 — Restructuring (2) 11,539 — 11,539 — Other charges, net 8,388 1,678 11,917 1,842 Interest and other, net 24,632 22,035 49,031 38,540 Income before income taxes $ 14,742 $ 140,280 $ 131,665 $ 258,896 (1) During the fourth quarter of fiscal year 2016, the Company accepted return of previously shipped inventory from a former customer, SunEdison, Inc. ("SunEdison"), of approximately $90 million . On April 21, 2016, SunEdison filed a petition for reorganization under bankruptcy law, and as a result, the Company recognized a bad debt reserve of $61.0 million as of March 31, 2016, associated with its outstanding SunEdison receivables. During the three-month period ended September 30, 2016, prices for solar panel modules declined significantly. The Company determined that certain solar panel inventory on hand as of September 30, 2016 was not fully recoverable and recorded a charge of $60.0 million to reduce the carrying costs to market in the three and six-month periods ended September 30, 2016. The Company also recognized a $16.0 million impairment charge for solar module equipment and $16.9 million primarily related to negative margin sales and other associated solar panel direct costs incurred during the same periods. The total charge of $92.9 million is included in cost of sales for the three and six-month periods ended September 30, 2016 but is excluded from segment results above. (2) The Company has initiated a plan to rationalize the current footprint at existing sites including corporate SG&A functions and to continue to shift the talent base in support of its sketch to scale tm initiatives. As part of this plan, approximately $11.5 million was recognized in the quarter ended September 30, 2016. |
SUPPLEMENTAL GUARANTOR AND NO31
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheets as of September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 823,435 $ 122,531 $ 591,090 $ — $ 1,537,056 Accounts receivable — 941,596 1,399,797 — 2,341,393 Inventories — 1,545,142 2,017,075 — 3,562,217 Inter company receivable 9,952,291 7,457,490 14,178,475 (31,588,256 ) — Other current assets 2,947 179,553 835,454 — 1,017,954 Total current assets 10,778,673 10,246,312 19,021,891 (31,588,256 ) 8,458,620 Property and equipment, net — 576,336 1,759,623 — 2,335,959 Goodwill and other intangible assets, net 1,239 90,316 1,304,208 — 1,395,763 Other assets 2,224,133 276,072 2,001,421 (4,030,834 ) 470,792 Investment in subsidiaries 2,739,759 3,274,766 17,932,399 (23,946,924 ) — Total assets $ 15,743,804 $ 14,463,802 $ 42,019,542 $ (59,566,014 ) $ 12,661,134 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 58,836 $ 946 $ 6,187 $ — $ 65,969 Accounts payable — 1,497,129 3,017,437 — 4,514,566 Accrued payroll — 119,846 290,741 — 410,587 Inter company payable 10,416,283 10,238,176 10,933,797 (31,588,256 ) — Other current liabilities 21,350 796,156 1,045,039 — 1,862,545 Total current liabilities 10,496,469 12,652,253 15,293,201 (31,588,256 ) 6,853,667 Long term liabilities 2,685,469 2,058,750 2,489,774 (4,030,834 ) 3,203,159 Flex Ltd. shareholders’ equity (deficit) 2,561,866 (247,201 ) 24,194,125 (23,946,924 ) 2,561,866 Noncontrolling interests — — 42,442 — 42,442 Total shareholders’ equity (deficit) 2,561,866 (247,201 ) 24,236,567 (23,946,924 ) 2,604,308 Total liabilities and shareholders’ equity $ 15,743,804 $ 14,463,802 $ 42,019,542 $ (59,566,014 ) $ 12,661,134 Condensed Consolidating Balance Sheets as of March 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 734,869 $ 148,201 $ 724,500 $ — $ 1,607,570 Accounts receivable — 729,331 1,315,426 — 2,044,757 Inventories — 1,482,410 2,009,246 — 3,491,656 Inter company receivable 9,105,728 5,568,392 12,404,722 (27,078,842 ) — Other current assets 2,951 180,842 987,350 — 1,171,143 Total current assets 9,843,548 8,109,176 17,441,244 (27,078,842 ) 8,315,126 Property and equipment, net — 553,072 1,704,561 — 2,257,633 Goodwill and other intangible assets, net 175 60,895 1,284,750 — 1,345,820 Other assets 2,249,145 267,034 2,004,437 (4,054,214 ) 466,402 Investment in subsidiaries 2,815,426 3,010,111 18,175,348 (24,000,885 ) — Total assets $ 14,908,294 $ 12,000,288 $ 40,610,340 $ (55,133,941 ) $ 12,384,981 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 58,836 $ 946 $ 5,384 $ — $ 65,166 Accounts payable — 1,401,835 2,846,457 — 4,248,292 Accrued payroll — 114,509 239,038 — 353,547 Inter company payable 9,562,405 7,999,335 9,517,102 (27,078,842 ) — Other current liabilities 33,008 869,470 1,002,722 — 1,905,200 Total current liabilities 9,654,249 10,386,095 13,610,703 (27,078,842 ) 6,572,205 Long term liabilities 2,683,173 2,063,988 2,514,299 (4,054,214 ) 3,207,246 Flex Ltd. shareholders’ equity (deficit) 2,570,872 (449,795 ) 24,450,680 (24,000,885 ) 2,570,872 Noncontrolling interests — — 34,658 — 34,658 Total shareholders’ equity (deficit) 2,570,872 (449,795 ) 24,485,338 (24,000,885 ) 2,605,530 Total liabilities and shareholders’ equity $ 14,908,294 $ 12,000,288 $ 40,610,340 $ (55,133,941 ) $ 12,384,981 |
Schedule of condensed consolidating statements of operations | Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 7,821,600 $ 9,528,146 $ (5,464,408 ) $ 11,885,338 Cost of sales — 7,100,113 9,529,947 (5,464,408 ) 11,165,652 Gross profit — 721,487 (1,801 ) — 719,686 Selling, general and administrative expenses — 145,321 338,168 — 483,489 Intangible amortization 150 1,434 42,000 — 43,584 Interest and other, net (190,588 ) 659,777 (408,241 ) — 60,948 Income (loss) from continuing operations before income taxes 190,438 (85,045 ) 26,272 — 131,665 Provision for income taxes 11 3,070 25,363 — 28,444 Equity in earnings in subsidiaries (87,206 ) (64,121 ) (74,336 ) 225,663 — Net income (loss) $ 103,221 $ (152,236 ) $ (73,427 ) $ 225,663 $ 103,221 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 8,528,598 $ 9,450,050 $ (6,095,638 ) $ 11,883,010 Cost of sales — 7,785,313 9,444,078 (6,095,638 ) 11,133,753 Gross profit — 743,285 5,972 — 749,257 Selling, general and administrative expenses — 130,238 295,943 — 426,181 Intangible amortization 150 1,921 21,727 — 23,798 Interest and other, net (397,020 ) 613,414 (176,012 ) — 40,382 Income (loss) from continuing operations before income taxes 396,870 (2,288 ) (135,686 ) — 258,896 Provision for income taxes — 3,441 21,628 — 25,069 Equity in earnings in subsidiaries (163,043 ) (51,830 ) 52,755 162,118 — Net income (loss) $ 233,827 $ (57,559 ) $ (104,559 ) $ 162,118 $ 233,827 Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 3,991,248 $ 5,191,500 $ (3,174,223 ) $ 6,008,525 Cost of sales — 3,686,831 5,182,226 (3,174,223 ) 5,694,834 Gross profit — 304,417 9,274 — 313,691 Selling, general and administrative expenses — 75,351 168,592 — 243,943 Intangible amortization 75 717 21,194 — 21,986 Interest and other, net 125,803 243,460 (336,243 ) — 33,020 Income (loss) from continuing operations before income taxes (125,878 ) (15,111 ) 155,731 — 14,742 Provision for income taxes 11 2,476 14,763 — 17,250 Equity in earnings in subsidiaries 123,381 (63,394 ) (52,231 ) (7,756 ) — Net income (loss) $ (2,508 ) $ (80,981 ) $ 88,737 $ (7,756 ) $ (2,508 ) Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,482,213 $ 5,514,535 $ (3,679,986 ) $ 6,316,762 Cost of sales — 4,141,254 5,458,578 (3,679,986 ) 5,919,846 Gross profit — 340,959 55,957 — 396,916 Selling, general and administrative expenses — 66,682 150,114 — 216,796 Intangible amortization 75 960 15,092 — 16,127 Interest and other, net (131,637 ) 277,002 (121,652 ) — 23,713 Income (loss) from continuing operations before income taxes 131,562 (3,685 ) 12,403 — 140,280 Provision for (benefit from) income taxes — (5,658 ) 22,961 — 17,303 Equity in earnings in subsidiaries (8,585 ) (33,421 ) 16,794 25,212 — Net income (loss) $ 122,977 $ (31,448 ) $ 6,236 $ 25,212 $ 122,977 |
Schedule of condensed consolidating statements of comprehensive income (loss) | Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 30, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ (2,508 ) $ (80,981 ) $ 88,737 $ (7,756 ) $ (2,508 ) Other comprehensive income: Foreign currency translation adjustments, net of zero tax 4,213 (7,528 ) (3,368 ) 10,896 4,213 Unrealized gain (loss) on derivative instruments and other, net of zero tax (2,059 ) 1,050 (2,059 ) 1,009 (2,059 ) Comprehensive income (loss) $ (354 ) $ (87,459 ) $ 83,310 $ 4,149 $ (354 ) Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 122,977 $ (31,448 ) $ 6,236 $ 25,212 $ 122,977 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (30,267 ) (33,696 ) (30,633 ) 64,329 (30,267 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (5,544 ) 1,160 (5,544 ) 4,384 (5,544 ) Comprehensive income (loss) $ 87,166 $ (63,984 ) $ (29,941 ) $ 93,925 $ 87,166 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 30, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 103,221 $ (152,236 ) $ (73,427 ) $ 225,663 $ 103,221 Other comprehensive income (loss): 0 Foreign currency translation adjustments, net of zero tax 14,074 10,181 21,395 (31,576 ) 14,074 Unrealized gain (loss) on derivative instruments and other, net of zero tax (711 ) 3,500 (711 ) (2,789 ) (711 ) Comprehensive income (loss) $ 116,584 $ (138,555 ) $ (52,743 ) $ 191,298 $ 116,584 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 233,827 $ (57,559 ) $ (104,559 ) $ 162,118 $ 233,827 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (27,484 ) (57,186 ) (51,530 ) 108,716 (27,484 ) Unrealized gain on derivative instruments and other, net of zero tax 7,285 5,785 7,285 (13,070 ) 7,285 Comprehensive income (loss) $ 213,628 $ (108,960 ) $ (148,804 ) $ 257,764 $ 213,628 |
Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 30, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 157,337 $ (390,057 ) $ 776,305 $ (33 ) $ 543,552 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (92,393 ) (186,982 ) — (279,375 ) Acquisition of businesses, net of cash acquired — (80,339 ) (109,556 ) — (189,895 ) Proceeds from divestiture of businesses, net of cash held in divested businesses — 20,500 15,573 — 36,073 Investing cash flows to affiliates (426,040 ) (2,041,309 ) (669,967 ) 3,137,316 — Other investing activities, net (1,213 ) (7,051 ) 28,621 — 20,357 Net cash used in investing activities (427,253 ) (2,200,592 ) (922,311 ) 3,137,316 (412,840 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 74,944 — 91 — 75,035 Repayments of bank borrowings, long-term debt and capital lease obligations (105,000 ) (3,491 ) (2,101 ) (110,592 ) Payments for repurchases of ordinary shares (184,698 ) — — — (184,698 ) Net proceeds from issuance of ordinary shares 11,344 — — — 11,344 Financing cash flows from affiliates 539,454 2,581,240 16,589 (3,137,283 ) — Other financing activities, net 30,000 (11,347 ) (25,489 ) — (6,836 ) Net cash provided by financing activities 366,044 2,566,402 (10,910 ) (3,137,283 ) (215,747 ) Effect of exchange rates on cash and cash equivalents (7,562 ) (1,423 ) 23,506 — 14,521 Net increase (decrease) in cash and cash equivalents 88,566 (25,670 ) (133,410 ) — (70,514 ) Cash and cash equivalents, beginning of period 734,869 148,201 724,500 — 1,607,570 Cash and cash equivalents, end of period $ 823,435 $ 122,531 $ 591,090 $ — $ 1,537,056 Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 389,949 $ (248,082 ) $ 520,128 $ — $ 661,995 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (88,699 ) (205,330 ) 11 (294,018 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — (559,442 ) (82,471 ) — (641,913 ) Investing cash flows from (to) affiliates (1,326,493 ) (836,415 ) (1,194,368 ) 3,357,276 — Other investing activities, net — (22,822 ) 12,306 — (10,516 ) Net cash used in investing activities (1,326,493 ) (1,507,378 ) (1,469,863 ) 3,357,287 (946,447 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 595,309 209 35 — 595,553 Repayments of bank borrowings, long-term debt and capital lease obligations (17,507 ) (1,039 ) (2,544 ) — (21,090 ) Payments for repurchases of ordinary shares (241,978 ) — — — (241,978 ) Net proceeds from issuance of ordinary shares 49,074 — — — 49,074 Financing cash flows from affiliates 435,540 1,811,532 1,110,215 (3,357,287 ) — Other financing activities, net — — (37,872 ) — (37,872 ) Net cash provided by financing activities 820,438 1,810,702 1,069,834 (3,357,287 ) 343,687 Effect of exchange rates on cash and cash equivalents 24,766 2,955 (46,937 ) — (19,216 ) Net decrease (increase) in cash and cash equivalents (91,340 ) 58,197 73,162 — 40,019 Cash and cash equivalents, beginning of period 608,971 168,272 851,165 — 1,628,408 Cash and cash equivalents, end of period $ 517,631 $ 226,469 $ 924,327 $ — $ 1,668,427 |
ORGANIZATION OF THE COMPANY A32
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Details) | 3 Months Ended | |||
Sep. 30, 2016 | Jul. 01, 2016 | Sep. 25, 2015 | Jun. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Fiscal period duration | 91 days | 92 days | 91 days | 87 days |
BALANCE SHEET ITEMS - Inventor
BALANCE SHEET ITEMS - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Inventories | ||
Raw materials | $ 2,443,372 | $ 2,234,512 |
Work-in-progress | 477,896 | 561,282 |
Finished goods | 640,949 | 695,862 |
Inventories, total | $ 3,562,217 | $ 3,491,656 |
BALANCE SHEET ITEMS - Goodwill
BALANCE SHEET ITEMS - Goodwill and Other Intangible Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jul. 01, 2016USD ($)business | Sep. 30, 2016USD ($)businesssegment | Mar. 31, 2016USD ($) | |
Goodwill [Line Items] | |||
Number of operating segments | segment | 4 | ||
Activity in goodwill account | |||
Balance, beginning of the year | $ 942,066 | $ 942,066 | |
Additions | 55,853 | ||
Divestitures | (4,427) | ||
Purchase accounting adjustments | 794 | ||
Foreign currency translation adjustments | (2,592) | ||
Balance, end of the period | $ 991,694 | ||
Number of non-strategic business | business | 2 | ||
Gross Carrying Amount | $ 551,715 | $ 508,099 | |
Accumulated Amortization | (147,646) | (104,345) | |
Net Carrying Amount | 404,069 | 403,754 | |
HRS | |||
Activity in goodwill account | |||
Balance, beginning of the year | 439,336 | 439,336 | |
Additions | 0 | ||
Divestitures | (1,787) | ||
Purchase accounting adjustments | 794 | ||
Foreign currency translation adjustments | (2,592) | ||
Balance, end of the period | 435,751 | ||
CTG | |||
Activity in goodwill account | |||
Balance, beginning of the year | 68,234 | 68,234 | |
Additions | 39,822 | ||
Divestitures | 0 | ||
Purchase accounting adjustments | 0 | ||
Foreign currency translation adjustments | 0 | ||
Balance, end of the period | 108,056 | ||
IEI | |||
Activity in goodwill account | |||
Balance, beginning of the year | 322,803 | 322,803 | |
Additions | 16,031 | ||
Divestitures | (2,640) | ||
Purchase accounting adjustments | 0 | ||
Foreign currency translation adjustments | 0 | ||
Balance, end of the period | 336,194 | ||
CEC | |||
Activity in goodwill account | |||
Balance, beginning of the year | $ 111,693 | 111,693 | |
Additions | 0 | ||
Divestitures | 0 | ||
Purchase accounting adjustments | 0 | ||
Foreign currency translation adjustments | 0 | ||
Balance, end of the period | 111,693 | ||
Customer-related intangibles | |||
Activity in goodwill account | |||
Gross Carrying Amount | 261,695 | 223,046 | |
Accumulated Amortization | (89,596) | (66,473) | |
Net Carrying Amount | 172,099 | 156,573 | |
Licenses and other intangibles | |||
Activity in goodwill account | |||
Gross Carrying Amount | 290,020 | 285,053 | |
Accumulated Amortization | (58,050) | (37,872) | |
Net Carrying Amount | $ 231,970 | $ 247,181 | |
Operating Segments | HRS | |||
Activity in goodwill account | |||
Number of non-strategic business | business | 2 |
BALANCE SHEET ITEMS - Future A
BALANCE SHEET ITEMS - Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Estimated future annual amortization expense for acquired intangible assets | ||
2,017 | $ 40,069 | |
2,018 | 68,052 | |
2,019 | 61,398 | |
2,020 | 52,804 | |
2,021 | 48,562 | |
Thereafter | 133,184 | |
Net Carrying Amount | $ 404,069 | $ 403,754 |
BALANCE SHEET ITEMS - Addition
BALANCE SHEET ITEMS - Additional Information (Details) $ in Thousands | 6 Months Ended | |||||
Sep. 30, 2016USD ($)business | Jul. 01, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 25, 2015USD ($) | Jun. 26, 2015USD ($) | Mar. 31, 2015USD ($) | |
Components of acquired intangible assets | ||||||
Number of acquisitions completed | business | 3 | |||||
Other current assets related to purchase of assets on behalf of customer financed by a third party banking institution | $ 83,900 | $ 83,600 | ||||
Customer working capital advances | 223,900 | 253,700 | ||||
Customer related accruals | 511,700 | 479,500 | ||||
Deferred revenue | 302,900 | 332,300 | ||||
Other current liability for purchase of assets on behalf of customer financed by a third party banking institution | 90,600 | 122,000 | ||||
Asset-Backed Securitization Programs | ||||||
Components of acquired intangible assets | ||||||
Transferor's interests in transferred financial assets, fair value | $ 461,544 | $ 460,334 | $ 501,097 | $ 537,619 | $ 516,287 | $ 600,672 |
SHARE-BASED COMPENSATION - Loc
SHARE-BASED COMPENSATION - Location of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Share-based compensation | ||||
Share-based compensation expense | $ 22,733 | $ 16,200 | $ 46,530 | $ 32,326 |
Cost of sales | ||||
Share-based compensation | ||||
Share-based compensation expense | 2,636 | 2,015 | 5,069 | 4,033 |
Selling, general and administrative expenses | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 20,097 | $ 14,185 | $ 41,461 | $ 28,293 |
SHARE-BASED COMPENSATION - Ad
SHARE-BASED COMPENSATION - Additional Information (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share options | |
Share-based compensation | |
Options exercisable (shares) | 200,000 |
2010 Equity Incentive Plan | Share options | |
Share-based compensation | |
Share options outstanding (shares) | 200,000 |
Options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 9.27 |
Weighted average exercise price of exercisable shares (usd per share) | $ / shares | $ 9.23 |
2010 Equity Incentive Plan | Restricted Stock Units, Share Bonus Awards with Market Conditions, and Share Bonus Awards With Free Cash Flow Targets | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 5,900,000 |
Number of shares outstanding (shares) | 15,900,000 |
Unrecognized compensation expense | $ | $ 159.5 |
Share weighted-average remaining vesting period | 2 years 9 months 7 days |
2010 Equity Incentive Plan | Restricted Stock Units | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 5,000,000 |
Average grant date price of unvested share bonus awards (usd per share) | $ / shares | $ 12.81 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | |
Share-based compensation | |
Number of shares outstanding (shares) | 2,300,000 |
Unrecognized compensation expense | $ | $ 26.3 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Fiscal 2013 | |
Share-based compensation | |
Shares vested (shares) | 3,500,000 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Minimum | |
Share-based compensation | |
Number of shares that may be issued (shares) | 0 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Maximum | |
Share-based compensation | |
Number of shares that may be issued (shares) | 4,600,000 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Key employees | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 700,000 |
Average grant date price of unvested share bonus awards (usd per share) | $ / shares | $ 17.57 |
Vesting period | 3 years |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Key employees | Minimum | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 0 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Key employees | Maximum | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 1,400,000 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Certain executive officers | |
Share-based compensation | |
Vesting period | 3 years |
Measurement period | 3 years |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Certain executive officers | Minimum | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 0 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Certain executive officers | Maximum | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 400,000 |
2010 Equity Incentive Plan | Share Bonus Awards With Free Cash Flow Targets | Certain executive officers | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 200,000 |
Nonvested average grant date price (usd per share) | $ / shares | $ 12.82 |
2014 NEXTracker Equity Incentive Plan | |
Share-based compensation | |
Number of shares outstanding (shares) | 2,300,000 |
Unrecognized compensation expense | $ | $ 12.2 |
Share weighted-average remaining vesting period | 2 years 7 days |
Options granted in period (shares) | 0 |
2014 NEXTracker Equity Incentive Plan | Share options | |
Share-based compensation | |
Share options outstanding (shares) | 2,200,000 |
Options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 3.44 |
Weighted average exercise price of exercisable shares (usd per share) | $ / shares | $ 2.72 |
Share weighted-average remaining vesting period | 2 years 3 months 26 days |
Options exercisable (shares) | 600,000 |
Compensation not yet recognized | $ | $ 11.1 |
BrightBox Technologies 2013 Plan | Share options | |
Share-based compensation | |
Share options outstanding (shares) | 200,000 |
Options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 0.51 |
Vesting period | 3 years |
Share weighted-average remaining vesting period | 2 years 7 months 3 days |
Options granted in period (shares) | 200,000 |
Options exercisable (shares) | 0 |
Grants in period, weighted average grant date fair value (usd per share) | $ / shares | $ 11.99 |
Compensation not yet recognized | $ | $ 1.6 |
EARNINGS PER SHARE - Calculati
EARNINGS PER SHARE - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Basic earnings per share: | ||||
Net income (loss) | $ (2,508) | $ 122,977 | $ 103,221 | $ 233,827 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 544,055 | 563,333 | 544,353 | 564,417 |
Basic earnings (losses) per share (in dollars per share) | $ 0 | $ 0.22 | $ 0.19 | $ 0.41 |
Diluted earnings (losses) per share: | ||||
Net income (loss) | $ (2,508) | $ 122,977 | $ 103,221 | $ 233,827 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 544,055 | 563,333 | 544,353 | 564,417 |
Weighted-average ordinary share equivalents from stock options and awards (in shares) | 0 | 6,322 | 5,581 | 8,871 |
Weighted-average ordinary shares and ordinary share equivalents outstanding (in shares) | 544,055 | 569,655 | 549,934 | 573,288 |
Diluted earnings (losses) per share (in dollars per share) | $ 0 | $ 0.22 | $ 0.19 | $ 0.41 |
EARNINGS PER SHARE - Additiona
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Anti-diluted securities excluded from the computation of diluted earnings per share | ||||
Ordinary shares excluded from the computation of diluted earnings per share (shares) | 4.3 | |||
Options | ||||
Anti-diluted securities excluded from the computation of diluted earnings per share | ||||
Ordinary shares excluded from the computation of diluted earnings per share (shares) | 1.7 | 1.1 | 0.9 | 1.2 |
Restricted Stock Units | ||||
Anti-diluted securities excluded from the computation of diluted earnings per share | ||||
Ordinary shares excluded from the computation of diluted earnings per share (shares) | 3.4 | 5.3 | 2.9 |
INTEREST AND OTHER, NET (Detail
INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
INTEREST AND OTHER, NET | ||||
Interest expense | $ 26.5 | $ 25.1 | $ 53.4 | $ 45.2 |
FINANCIAL INSTRUMENTS - Notion
FINANCIAL INSTRUMENTS - Notional Amount (Details) - Sep. 30, 2016 - Forward and Swap Contracts € in Thousands, ₪ in Thousands, ₨ in Thousands, ¥ in Thousands, £ in Thousands, SGD in Thousands, SFr in Thousands, SEK in Thousands, PLN in Thousands, MYR in Thousands, MXN in Thousands, HUF in Thousands, DKK in Thousands, BRL in Thousands, $ in Thousands | GBP (£) | DKK | INR (₨) | ILS (₪) | BRL | PLN | MXN | CHF (SFr) | SEK | SGD | MYR | HUF | EUR (€) | USD ($) | CNY (¥) |
Notional amount | |||||||||||||||
Notional Contract Value | $ 4,200,000 | ||||||||||||||
Buy | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 2,320,789 | ||||||||||||||
Sell | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 1,887,799 | ||||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 436,840 | ||||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 130,927 | ¥ 874,000 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | € 23,090 | 25,842 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | HUF 15,775,600 | 57,280 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | ₪ 112,280 | 29,891 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | ₨ 1,282,982 | 18,600 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | MXN 1,673,000 | 85,680 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | MYR 153,000 | 36,970 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | PLN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | PLN 62,840 | 16,379 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 35,271 | ||||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 132,994 | ||||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | 0 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 104,160 | 118,953 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | 0 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | 0 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | 0 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | 0 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 7,000 | 1,691 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | PLN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | 0 | |||||||||||||
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 12,350 | ||||||||||||||
Economic hedges | Buy | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 1,883,949 | ||||||||||||||
Economic hedges | Buy | BRL | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | BRL 0 | 0 | |||||||||||||
Economic hedges | Buy | CHF | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | SFr 8,960 | 9,210 | |||||||||||||
Economic hedges | Buy | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 386,097 | 2,582,317 | |||||||||||||
Economic hedges | Buy | DKK | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | DKK 167,400 | 25,141 | |||||||||||||
Economic hedges | Buy | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 869,642 | 973,337 | |||||||||||||
Economic hedges | Buy | GBP | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | £ 32,336 | 42,023 | |||||||||||||
Economic hedges | Buy | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 21,422,970 | 77,786 | |||||||||||||
Economic hedges | Buy | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 58,900 | 15,680 | |||||||||||||
Economic hedges | Buy | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 2,780,000 | 41,817 | |||||||||||||
Economic hedges | Buy | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 1,808,051 | 93,003 | |||||||||||||
Economic hedges | Buy | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 348,477 | 84,204 | |||||||||||||
Economic hedges | Buy | PLN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 122,136 | 31,834 | |||||||||||||
Economic hedges | Buy | SEK | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | SEK 225,946 | 26,294 | |||||||||||||
Economic hedges | Buy | SGD | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | SGD 43,274 | 31,775 | |||||||||||||
Economic hedges | Buy | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 45,748 | ||||||||||||||
Economic hedges | Sell | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 1,754,805 | ||||||||||||||
Economic hedges | Sell | BRL | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | BRL 392,000 | 120,653 | |||||||||||||
Economic hedges | Sell | CHF | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | SFr 21,150 | 21,739 | |||||||||||||
Economic hedges | Sell | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | 0 | ¥ 0 | |||||||||||||
Economic hedges | Sell | DKK | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | DKK 157,200 | 23,609 | |||||||||||||
Economic hedges | Sell | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | € 1,150,415 | 1,287,735 | |||||||||||||
Economic hedges | Sell | GBP | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | £ 58,752 | 76,386 | |||||||||||||
Economic hedges | Sell | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | HUF 19,425,090 | 70,532 | |||||||||||||
Economic hedges | Sell | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | ₪ 91,420 | 24,338 | |||||||||||||
Economic hedges | Sell | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | ₨ 26,687 | 400 | |||||||||||||
Economic hedges | Sell | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | MXN 637,803 | 32,889 | |||||||||||||
Economic hedges | Sell | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | MYR 20,200 | 4,881 | |||||||||||||
Economic hedges | Sell | PLN | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | PLN 73,747 | 19,222 | |||||||||||||
Economic hedges | Sell | SEK | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | SEK 298,985 | 34,857 | |||||||||||||
Economic hedges | Sell | SGD | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | SGD 3,620 | 2,658 | |||||||||||||
Economic hedges | Sell | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional Contract Value | $ 34,906 |
FINANCIAL INSTRUMENTS - Foreig
FINANCIAL INSTRUMENTS - Foreign Currency Risk Management (Details) - Foreign currency contracts - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Other current assets | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | $ 6,253 | $ 5,510 |
Other current assets | Economic hedges | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | 5,226 | 17,138 |
Other current liabilities | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | 4,456 | 2,446 |
Other current liabilities | Economic hedges | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | $ 6,361 | $ 18,645 |
ACCUMULATED OTHER COMPREHENSI44
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (124,706) | $ (164,893) | $ (135,915) | $ (180,505) |
Other comprehensive gain (loss) before reclassifications | 3,044 | (44,085) | 14,623 | (42,055) |
Net (gain) losses reclassified from accumulated other comprehensive loss | (890) | 8,274 | (1,260) | 21,856 |
Net current-period other comprehensive gain (loss) | 2,154 | (35,811) | 13,363 | (20,199) |
Ending balance | (122,552) | (200,704) | (122,552) | (200,704) |
Unrealized gain (loss) on derivative instruments and other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (40,174) | (55,437) | (41,522) | (68,266) |
Other comprehensive gain (loss) before reclassifications | (1,169) | (13,818) | 324 | (14,419) |
Net (gain) losses reclassified from accumulated other comprehensive loss | (890) | 8,274 | (1,035) | 21,704 |
Net current-period other comprehensive gain (loss) | (2,059) | (5,544) | (711) | 7,285 |
Ending balance | (42,233) | (60,981) | (42,233) | (60,981) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (84,532) | (109,456) | (94,393) | (112,239) |
Other comprehensive gain (loss) before reclassifications | 4,213 | (30,267) | 14,299 | (27,636) |
Net (gain) losses reclassified from accumulated other comprehensive loss | 0 | 0 | (225) | 152 |
Net current-period other comprehensive gain (loss) | 4,213 | (30,267) | 14,074 | (27,484) |
Ending balance | $ (80,319) | $ (139,723) | $ (80,319) | $ (139,723) |
ACCUMULATED OTHER COMPREHENSI45
ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Unrealized gain (loss) on derivative instruments and other | Reclassification out of accumulated other comprehensive income | ||
Reclassification | ||
Cost of sales | $ 1.9 | $ 20.7 |
TRADE RECEIVABLES SECURITIZAT46
TRADE RECEIVABLES SECURITIZATION (Details) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 25, 2015USD ($) | Sep. 30, 2016USD ($)program | Sep. 25, 2015USD ($) | Mar. 31, 2016USD ($) | |
Trade Receivables Securitization disclosures | |||||
Servicing assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Servicing liabilities | 0 | 0 | $ 0 | 0 | |
Asset-Backed Securitization Programs | |||||
Trade Receivables Securitization disclosures | |||||
Number of asset-backed securitization programs | program | 2 | ||||
Percentage of receivables sold to unaffiliated institutions | 100.00% | ||||
Company's accounts receivables sold to third-party | 1,300,000,000 | $ 1,300,000,000 | $ 1,400,000,000 | ||
Amount received from accounts receivable sold to third-party | 851,000,000 | 851,000,000 | 880,800,000 | ||
Cash proceeds from sale of accounts receivable | 2,800,000,000 | 2,400,000,000 | |||
Cash flows from new transfers of receivables | 92,700,000 | 255,300,000 | |||
Activity in the deferred purchase price receivables account | |||||
Beginning balance | 460,334,000 | 516,287,000 | 501,097,000 | 600,672,000 | |
Transfers of receivables | 760,540,000 | 983,677,000 | 1,522,724,000 | 1,750,725,000 | |
Collections | (759,330,000) | (962,345,000) | (1,562,277,000) | (1,813,778,000) | |
Ending balance | $ 461,544,000 | 537,619,000 | $ 461,544,000 | 537,619,000 | |
Asset-Backed Securitization Programs | Minimum | |||||
Trade Receivables Securitization disclosures | |||||
Service fee received, percent | 0.10% | 0.10% | |||
Asset-Backed Securitization Programs | Maximum | |||||
Trade Receivables Securitization disclosures | |||||
Service fee received, percent | 0.50% | 0.50% | |||
Global Program | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | $ 700,000,000 | $ 700,000,000 | |||
Global Program | Committed | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 600,000,000 | 600,000,000 | |||
Global Program | Uncommitted | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 100,000,000 | 100,000,000 | |||
North American Program | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 265,000,000 | 265,000,000 | |||
North American Program | Committed | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 225,000,000 | 225,000,000 | |||
North American Program | Uncommitted | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 40,000,000 | 40,000,000 | |||
Sales of Receivables to Third Party Banks | |||||
Trade Receivables Securitization disclosures | |||||
Company's accounts receivables sold to third-party | 800,000,000 | $ 1,200,000,000 | 800,000,000 | $ 1,200,000,000 | |
Activity in the deferred purchase price receivables account | |||||
Receivables sold but not yet collected from banking institutions | $ 362,700,000 | $ 362,700,000 | $ 339,100,000 |
FAIR VALUE MEASUREMENT OF ASS47
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) | Sep. 30, 2016 | Sep. 25, 2015 |
Fair Value Disclosures [Abstract] | ||
Transfers out of Level 1 and into Level 2 related to assets and liabilities measured on a recurring and nonrecurring basis | $ 0 | $ 0 |
Transfers out of Level 2 and into Level 1 related to assets and liabilities measured on a recurring and nonrecurring basis | 0 | 0 |
Transfers out of Level 1 and into Level 2 related to liabilities measured on a recurring and nonrecurring basis | 0 | 0 |
Transfers out of Level 2 and into Level 1 related to liabilities measured on a recurring and nonrecurring basis | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF ASS48
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Contingent Consideration Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Contingent Consideration Liability [Roll Forward] | ||||
Beginning balance | $ 75,258 | $ 4,500 | $ 73,423 | $ 4,500 |
Additions to accrual | 0 | 0 | 0 | 0 |
Payments | (2,221) | 0 | (2,221) | 0 |
Fair value adjustments | 2,577 | 0 | 4,412 | 0 |
Ending balance | $ 75,614 | $ 4,500 | $ 75,614 | $ 4,500 |
FAIR VALUE MEASUREMENT OF ASS49
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Assets and Liabilities Measured at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 |
Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | $ 1,120,831 | $ 1,074,132 |
Deferred purchase price receivable (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 461,544 | 501,097 |
Foreign exchange contracts (Note 6) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 11,479 | 22,648 |
Total Liabilities | (10,817) | (21,091) |
Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 55,621 | 49,784 |
Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | (75,614) | (73,423) |
Level 1 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 1 | Deferred purchase price receivable (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 1 | Foreign exchange contracts (Note 6) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 1 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 7,497 | 9,228 |
Level 1 | Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | 0 | 0 |
Level 2 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 1,120,831 | 1,074,132 |
Level 2 | Deferred purchase price receivable (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 2 | Foreign exchange contracts (Note 6) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 11,479 | 22,648 |
Total Liabilities | (10,817) | (21,091) |
Level 2 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 48,124 | 40,556 |
Level 2 | Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | 0 | 0 |
Level 3 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 3 | Deferred purchase price receivable (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 461,544 | 501,097 |
Level 3 | Foreign exchange contracts (Note 6) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 3 | Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | $ (75,614) | $ (73,423) |
FAIR VALUE MEASUREMENT OF ASS50
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Debt Not Carried at Fair Value (Details) $ in Thousands | Oct. 01, 2015EUR (€) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) |
4.625% Notes due February 2020 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 4.625% | 4.625% | |
5.000% Notes due February 2023 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 5.00% | 5.00% | |
4.750% Notes due June 2025 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 4.75% | 4.75% | |
Level 1 | 4.625% Notes due February 2020 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 4.625% | 4.625% | |
Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 5.00% | 5.00% | |
Level 1 | 4.750% Notes due June 2025 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 4.75% | 4.75% | |
Carrying Amount | |||
Other financial instruments | |||
Fair Value | $ 2,690,782 | $ 2,720,589 | |
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through August 2018 | |||
Other financial instruments | |||
Fair Value | 570,000 | 577,500 | |
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through March 2019 | |||
Other financial instruments | |||
Fair Value | 525,000 | 547,500 | |
Carrying Amount | Level 1 | 4.625% Notes due February 2020 | |||
Other financial instruments | |||
Fair Value | 500,000 | 500,000 | |
Carrying Amount | Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Fair Value | 500,000 | 500,000 | |
Carrying Amount | Level 1 | 4.750% Notes due June 2025 | |||
Other financial instruments | |||
Fair Value | 595,782 | 595,589 | |
Fair Value | |||
Other financial instruments | |||
Fair Value | 2,813,878 | 2,753,403 | |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through August 2018 | |||
Other financial instruments | |||
Fair Value | 568,222 | 573,533 | |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through March 2019 | |||
Other financial instruments | |||
Fair Value | 520,406 | 542,709 | |
Fair Value | Level 1 | 4.625% Notes due February 2020 | |||
Other financial instruments | |||
Fair Value | 536,250 | 524,735 | |
Fair Value | Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Fair Value | 550,000 | 507,500 | |
Fair Value | Level 1 | 4.750% Notes due June 2025 | |||
Other financial instruments | |||
Fair Value | 639,000 | $ 604,926 | |
Mirror Controls International | |||
Other financial instruments | |||
Debt instrument, face amount | € 50,000,000 | $ 56,100 | |
Term of debt instrument | 5 years |
BUSINESS AND ASSET ACQUISITIO51
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016USD ($)business | Sep. 25, 2015USD ($) | Sep. 30, 2016USD ($)acquisitionbusiness | Sep. 25, 2015USD ($) | Mar. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||||
Number of acquisitions completed | business | 3 | ||||
Acquisition of businesses, net of cash acquired | $ 189,895 | $ 641,913 | |||
Goodwill | $ 991,694 | $ 991,694 | $ 942,066 | ||
Pro forma net income | $ 130,100 | $ 243,100 | |||
Maximum time to complete final allocation of purchase price | 12 months | ||||
Number of non-strategic business | business | 2 | ||||
Proceeds from divestiture of business | $ 33,000 | ||||
Bose | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions completed | business | 2 | ||||
Acquisition of businesses, net of cash acquired | 171,600 | ||||
Cash acquired from acquisitions | 17,800 | ||||
Inventory | $ 73,600 | 73,600 | |||
Property and equipment | 66,800 | 66,800 | |||
Accrual recorded for acquisition | $ 28,000 | ||||
Series of Individually Immaterial Business Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions completed | acquisition | 3 | ||||
Acquisition of businesses, net of cash acquired | $ 189,300 | ||||
Goodwill | 52,800 | 52,800 | |||
Intangible assets | 44,900 | 44,900 | |||
Assumed liabilities | $ 57,500 | $ 57,500 | |||
Customer-related intangibles | Bose | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life | 7 years 4 months 24 days |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - BRAZIL BRL in Millions | Sep. 30, 2016USD ($) | Jul. 01, 2016USD ($) | Mar. 31, 2016BRL | Dec. 31, 2013BRL | Mar. 31, 2015USD ($) |
Assessment of Sales and Import Taxes | |||||
Loss Contingencies [Line Items] | |||||
Income tax examination, estimate of possible loss | $ 16,000,000 | BRL 52 | |||
Proposed Additional Assessment of Sales and Import Taxes | |||||
Loss Contingencies [Line Items] | |||||
Income tax examination, estimate of possible loss | $ 18,000,000 | BRL 57 | |||
Income and Social Contribution Taxes, Interest and Penalties | |||||
Loss Contingencies [Line Items] | |||||
Amount of assessment related to income and social contribution taxes interest and penalties received | $ 100,000,000 | ||||
Loss contingency accrual adjustment | $ 0 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Aug. 24, 2016 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||
Aggregate shares repurchased (in shares) | 6.9 | 14.2 | |
Aggregate purchase value of shares repurchased | $ 90,000,000 | $ 181,000,000 | |
Authorized amount of stock repurchase program | $ 500,000,000 | ||
Amount remaining to be repurchased under the plans | $ 450,200,000 | $ 450,200,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 25, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 25, 2015USD ($) |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 4 | |||||
Net sales | $ 6,008,525 | $ 6,316,762 | $ 11,885,338 | $ 11,883,010 | ||
Intangible amortization | 21,986 | 16,127 | 43,584 | 23,798 | ||
Stock-based compensation | 22,733 | 16,200 | 46,530 | 32,326 | ||
Inventory impairment and other | 92,915 | 0 | 92,915 | 0 | ||
Restructuring | 11,539 | 0 | 11,539 | 0 | ||
Other charges, net | 8,388 | 1,678 | 11,917 | 1,842 | ||
Interest and other, net | 24,632 | 22,035 | 49,031 | 38,540 | ||
Income before income taxes | 14,742 | 140,280 | 131,665 | 258,896 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 6,008,525 | 6,316,762 | 11,885,338 | 11,883,010 | ||
Total segment income | 196,935 | 196,320 | 387,181 | 355,402 | ||
Operating Segments | CEC | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 2,101,922 | 2,204,966 | 4,297,912 | 4,171,528 | ||
Total segment income | 52,453 | 65,758 | 114,352 | 122,822 | ||
Operating Segments | Consumer Technology Group | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,664,736 | 2,011,089 | 2,978,518 | 3,576,052 | ||
Total segment income | 55,314 | 41,170 | 79,948 | 80,013 | ||
Operating Segments | Industrial & Emerging Industries | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,242,722 | 1,145,842 | 2,531,737 | 2,275,981 | ||
Total segment income | 37,363 | 32,268 | 87,340 | 61,268 | ||
Operating Segments | High Reliability Solutions | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 999,145 | 954,865 | 2,077,171 | 1,859,449 | ||
Total segment income | 78,707 | 71,199 | 167,243 | 131,085 | ||
Operating Segments | Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Total segment income | (26,902) | $ (14,075) | (61,702) | $ (39,786) | ||
SunEdison, Inc | ||||||
Segment Reporting Information [Line Items] | ||||||
Inventory impairment and other | 92,900 | |||||
Sales returns | $ 90,000 | |||||
Allowance for sales returns | $ 61,000 | |||||
Inventory adjustments | 60,000 | $ 60,000 | ||||
Impairment of equipment | 16,000 | |||||
Other costs | $ 16,900 |
SUPPLEMENTAL GUARANTOR AND NO55
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2016USD ($)tranche | |
Bank borrowings and long-term debt | |
Number of tranches | tranche | 3 |
Percentage of ownership interest owned in subsidiaries that guarantees indebtedness | 100.00% |
4.625% Notes due February 2020 | |
Bank borrowings and long-term debt | |
Maximum borrowing capacity | $ 500 |
5.000% Notes due February 2023 | |
Bank borrowings and long-term debt | |
Maximum borrowing capacity | 500 |
4.750% Notes due June 2025 | |
Bank borrowings and long-term debt | |
Maximum borrowing capacity | $ 600 |
SUPPLEMENTAL GUARANTOR AND NO56
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 25, 2015 | Mar. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 1,537,056 | $ 1,607,570 | $ 1,668,427 | $ 1,628,408 |
Accounts receivable | 2,341,393 | 2,044,757 | ||
Inventories | 3,562,217 | 3,491,656 | ||
Inter company receivable | 0 | 0 | ||
Other current assets | 1,017,954 | 1,171,143 | ||
Total current assets | 8,458,620 | 8,315,126 | ||
Property and equipment, net | 2,335,959 | 2,257,633 | ||
Goodwill and other intangible assets, net | 1,395,763 | 1,345,820 | ||
Other assets | 470,792 | 466,402 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 12,661,134 | 12,384,981 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 65,969 | 65,166 | ||
Accounts payable | 4,514,566 | 4,248,292 | ||
Accrued payroll | 410,587 | 353,547 | ||
Inter company payable | 0 | 0 | ||
Other current liabilities | 1,862,545 | 1,905,200 | ||
Total current liabilities | 6,853,667 | 6,572,205 | ||
Long term liabilities | 3,203,159 | 3,207,246 | ||
Flex Ltd. shareholders’ equity (deficit) | 2,561,866 | 2,570,872 | ||
Noncontrolling interests | 42,442 | 34,658 | ||
Total shareholders’ equity | 2,604,308 | 2,605,530 | ||
Total liabilities and shareholders’ equity | 12,661,134 | 12,384,981 | ||
Reportable legal entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 823,435 | 734,869 | 517,631 | 608,971 |
Accounts receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Inter company receivable | 9,952,291 | 9,105,728 | ||
Other current assets | 2,947 | 2,951 | ||
Total current assets | 10,778,673 | 9,843,548 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 1,239 | 175 | ||
Other assets | 2,224,133 | 2,249,145 | ||
Investment in subsidiaries | 2,739,759 | 2,815,426 | ||
Total assets | 15,743,804 | 14,908,294 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 58,836 | 58,836 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll | 0 | 0 | ||
Inter company payable | 10,416,283 | 9,562,405 | ||
Other current liabilities | 21,350 | 33,008 | ||
Total current liabilities | 10,496,469 | 9,654,249 | ||
Long term liabilities | 2,685,469 | 2,683,173 | ||
Flex Ltd. shareholders’ equity (deficit) | 2,561,866 | 2,570,872 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 2,561,866 | 2,570,872 | ||
Total liabilities and shareholders’ equity | 15,743,804 | 14,908,294 | ||
Reportable legal entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 122,531 | 148,201 | 226,469 | 168,272 |
Accounts receivable | 941,596 | 729,331 | ||
Inventories | 1,545,142 | 1,482,410 | ||
Inter company receivable | 7,457,490 | 5,568,392 | ||
Other current assets | 179,553 | 180,842 | ||
Total current assets | 10,246,312 | 8,109,176 | ||
Property and equipment, net | 576,336 | 553,072 | ||
Goodwill and other intangible assets, net | 90,316 | 60,895 | ||
Other assets | 276,072 | 267,034 | ||
Investment in subsidiaries | 3,274,766 | 3,010,111 | ||
Total assets | 14,463,802 | 12,000,288 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 946 | 946 | ||
Accounts payable | 1,497,129 | 1,401,835 | ||
Accrued payroll | 119,846 | 114,509 | ||
Inter company payable | 10,238,176 | 7,999,335 | ||
Other current liabilities | 796,156 | 869,470 | ||
Total current liabilities | 12,652,253 | 10,386,095 | ||
Long term liabilities | 2,058,750 | 2,063,988 | ||
Flex Ltd. shareholders’ equity (deficit) | (247,201) | (449,795) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (247,201) | (449,795) | ||
Total liabilities and shareholders’ equity | 14,463,802 | 12,000,288 | ||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 591,090 | 724,500 | 924,327 | 851,165 |
Accounts receivable | 1,399,797 | 1,315,426 | ||
Inventories | 2,017,075 | 2,009,246 | ||
Inter company receivable | 14,178,475 | 12,404,722 | ||
Other current assets | 835,454 | 987,350 | ||
Total current assets | 19,021,891 | 17,441,244 | ||
Property and equipment, net | 1,759,623 | 1,704,561 | ||
Goodwill and other intangible assets, net | 1,304,208 | 1,284,750 | ||
Other assets | 2,001,421 | 2,004,437 | ||
Investment in subsidiaries | 17,932,399 | 18,175,348 | ||
Total assets | 42,019,542 | 40,610,340 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 6,187 | 5,384 | ||
Accounts payable | 3,017,437 | 2,846,457 | ||
Accrued payroll | 290,741 | 239,038 | ||
Inter company payable | 10,933,797 | 9,517,102 | ||
Other current liabilities | 1,045,039 | 1,002,722 | ||
Total current liabilities | 15,293,201 | 13,610,703 | ||
Long term liabilities | 2,489,774 | 2,514,299 | ||
Flex Ltd. shareholders’ equity (deficit) | 24,194,125 | 24,450,680 | ||
Noncontrolling interests | 42,442 | 34,658 | ||
Total shareholders’ equity | 24,236,567 | 24,485,338 | ||
Total liabilities and shareholders’ equity | 42,019,542 | 40,610,340 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Inter company receivable | (31,588,256) | (27,078,842) | ||
Other current assets | 0 | 0 | ||
Total current assets | (31,588,256) | (27,078,842) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other assets | (4,030,834) | (4,054,214) | ||
Investment in subsidiaries | (23,946,924) | (24,000,885) | ||
Total assets | (59,566,014) | (55,133,941) | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll | 0 | 0 | ||
Inter company payable | (31,588,256) | (27,078,842) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (31,588,256) | (27,078,842) | ||
Long term liabilities | (4,030,834) | (4,054,214) | ||
Flex Ltd. shareholders’ equity (deficit) | (23,946,924) | (24,000,885) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (23,946,924) | (24,000,885) | ||
Total liabilities and shareholders’ equity | $ (59,566,014) | $ (55,133,941) |
SUPPLEMENTAL GUARANTOR AND NO57
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Condensed consolidating statements of operations | ||||
Net sales | $ 6,008,525 | $ 6,316,762 | $ 11,885,338 | $ 11,883,010 |
Cost of sales | 5,694,834 | 5,919,846 | 11,165,652 | 11,133,753 |
Gross profit | 313,691 | 396,916 | 719,686 | 749,257 |
Selling, general and administrative expenses | 243,943 | 216,796 | 483,489 | 426,181 |
Intangible amortization | 21,986 | 16,127 | 43,584 | 23,798 |
Interest and other, net | 33,020 | 23,713 | 60,948 | 40,382 |
Income before income taxes | 14,742 | 140,280 | 131,665 | 258,896 |
Provision for income taxes | 17,250 | 17,303 | 28,444 | 25,069 |
Equity in earnings in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | (2,508) | 122,977 | 103,221 | 233,827 |
Reportable legal entities | Parent | ||||
Condensed consolidating statements of operations | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Intangible amortization | 75 | 75 | 150 | 150 |
Interest and other, net | 125,803 | (131,637) | (190,588) | (397,020) |
Income before income taxes | (125,878) | 131,562 | 190,438 | 396,870 |
Provision for income taxes | 11 | 0 | 11 | 0 |
Equity in earnings in subsidiaries | 123,381 | (8,585) | (87,206) | (163,043) |
Net income (loss) | (2,508) | 122,977 | 103,221 | 233,827 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed consolidating statements of operations | ||||
Net sales | 3,991,248 | 4,482,213 | 7,821,600 | 8,528,598 |
Cost of sales | 3,686,831 | 4,141,254 | 7,100,113 | 7,785,313 |
Gross profit | 304,417 | 340,959 | 721,487 | 743,285 |
Selling, general and administrative expenses | 75,351 | 66,682 | 145,321 | 130,238 |
Intangible amortization | 717 | 960 | 1,434 | 1,921 |
Interest and other, net | 243,460 | 277,002 | 659,777 | 613,414 |
Income before income taxes | (15,111) | (3,685) | (85,045) | (2,288) |
Provision for income taxes | 2,476 | (5,658) | 3,070 | 3,441 |
Equity in earnings in subsidiaries | (63,394) | (33,421) | (64,121) | (51,830) |
Net income (loss) | (80,981) | (31,448) | (152,236) | (57,559) |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed consolidating statements of operations | ||||
Net sales | 5,191,500 | 5,514,535 | 9,528,146 | 9,450,050 |
Cost of sales | 5,182,226 | 5,458,578 | 9,529,947 | 9,444,078 |
Gross profit | 9,274 | 55,957 | (1,801) | 5,972 |
Selling, general and administrative expenses | 168,592 | 150,114 | 338,168 | 295,943 |
Intangible amortization | 21,194 | 15,092 | 42,000 | 21,727 |
Interest and other, net | (336,243) | (121,652) | (408,241) | (176,012) |
Income before income taxes | 155,731 | 12,403 | 26,272 | (135,686) |
Provision for income taxes | 14,763 | 22,961 | 25,363 | 21,628 |
Equity in earnings in subsidiaries | (52,231) | 16,794 | (74,336) | 52,755 |
Net income (loss) | 88,737 | 6,236 | (73,427) | (104,559) |
Eliminations | ||||
Condensed consolidating statements of operations | ||||
Net sales | (3,174,223) | (3,679,986) | (5,464,408) | (6,095,638) |
Cost of sales | (3,174,223) | (3,679,986) | (5,464,408) | (6,095,638) |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Intangible amortization | 0 | 0 | 0 | 0 |
Interest and other, net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in earnings in subsidiaries | (7,756) | 25,212 | 225,663 | 162,118 |
Net income (loss) | $ (7,756) | $ 25,212 | $ 225,663 | $ 162,118 |
SUPPLEMENTAL GUARANTOR AND NO58
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 25, 2015 | Sep. 30, 2016 | Sep. 25, 2015 | |
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | $ (2,508) | $ 122,977 | $ 103,221 | $ 233,827 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 4,213 | (30,267) | 14,074 | (27,484) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (2,059) | (5,544) | (711) | 7,285 |
Comprehensive income (loss) | (354) | 87,166 | 116,584 | 213,628 |
Reportable legal entities | Parent | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | (2,508) | 122,977 | 103,221 | 233,827 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 4,213 | (30,267) | 14,074 | (27,484) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (2,059) | (5,544) | (711) | 7,285 |
Comprehensive income (loss) | (354) | 87,166 | 116,584 | 213,628 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | (80,981) | (31,448) | (152,236) | (57,559) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (7,528) | (33,696) | 10,181 | (57,186) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | 1,050 | 1,160 | 3,500 | 5,785 |
Comprehensive income (loss) | (87,459) | (63,984) | (138,555) | (108,960) |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | 88,737 | 6,236 | (73,427) | (104,559) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (3,368) | (30,633) | 21,395 | (51,530) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (2,059) | (5,544) | (711) | 7,285 |
Comprehensive income (loss) | 83,310 | (29,941) | (52,743) | (148,804) |
Eliminations | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | (7,756) | 25,212 | 225,663 | 162,118 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 10,896 | 64,329 | (31,576) | 108,716 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | 1,009 | 4,384 | (2,789) | (13,070) |
Comprehensive income (loss) | $ 4,149 | $ 93,925 | $ 191,298 | $ 257,764 |
SUPPLEMENTAL GUARANTOR AND NO59
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 5) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2016 | Sep. 25, 2015 | |
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | $ 543,552 | $ 661,995 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (279,375) | (294,018) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (189,895) | (641,913) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 36,073 | 0 |
Investing cash flows to affiliates | 0 | 0 |
Other investing activities, net | 20,357 | (10,516) |
Net cash used in investing activities | (412,840) | (946,447) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 75,035 | 595,553 |
Repayments of bank borrowings and long-term debt | (110,592) | (21,090) |
Payments for repurchases of ordinary shares | (184,698) | (241,978) |
Net proceeds from issuance of ordinary shares | 11,344 | 49,074 |
Financing cash flows from affiliates | 0 | 0 |
Other financing activities, net | (6,836) | (37,872) |
Net cash provided by (used in) financing activities | (215,747) | 343,687 |
Effect of exchange rates on cash and cash equivalents | 14,521 | (19,216) |
Net increase (decrease) in cash and cash equivalents | (70,514) | 40,019 |
Cash and cash equivalents, beginning of period | 1,607,570 | 1,628,408 |
Cash and cash equivalents, end of period | 1,537,056 | 1,668,427 |
Reportable legal entities | Parent | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 157,337 | 389,949 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | 0 | 0 |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | 0 | 0 |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 0 | |
Investing cash flows to affiliates | (426,040) | (1,326,493) |
Other investing activities, net | (1,213) | 0 |
Net cash used in investing activities | (427,253) | (1,326,493) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 74,944 | 595,309 |
Repayments of bank borrowings and long-term debt | (105,000) | (17,507) |
Payments for repurchases of ordinary shares | (184,698) | (241,978) |
Net proceeds from issuance of ordinary shares | 11,344 | 49,074 |
Financing cash flows from affiliates | 539,454 | 435,540 |
Other financing activities, net | 30,000 | 0 |
Net cash provided by (used in) financing activities | 366,044 | 820,438 |
Effect of exchange rates on cash and cash equivalents | (7,562) | 24,766 |
Net increase (decrease) in cash and cash equivalents | 88,566 | (91,340) |
Cash and cash equivalents, beginning of period | 734,869 | 608,971 |
Cash and cash equivalents, end of period | 823,435 | 517,631 |
Reportable legal entities | Guarantor Subsidiaries | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | (390,057) | (248,082) |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (92,393) | (88,699) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (80,339) | (559,442) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 20,500 | |
Investing cash flows to affiliates | (2,041,309) | (836,415) |
Other investing activities, net | (7,051) | (22,822) |
Net cash used in investing activities | (2,200,592) | (1,507,378) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 0 | 209 |
Repayments of bank borrowings and long-term debt | (3,491) | (1,039) |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from affiliates | 2,581,240 | 1,811,532 |
Other financing activities, net | (11,347) | 0 |
Net cash provided by (used in) financing activities | 2,566,402 | 1,810,702 |
Effect of exchange rates on cash and cash equivalents | (1,423) | 2,955 |
Net increase (decrease) in cash and cash equivalents | (25,670) | 58,197 |
Cash and cash equivalents, beginning of period | 148,201 | 168,272 |
Cash and cash equivalents, end of period | 122,531 | 226,469 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 776,305 | 520,128 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (186,982) | (205,330) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (109,556) | (82,471) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 15,573 | |
Investing cash flows to affiliates | (669,967) | (1,194,368) |
Other investing activities, net | 28,621 | 12,306 |
Net cash used in investing activities | (922,311) | (1,469,863) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 91 | 35 |
Repayments of bank borrowings and long-term debt | (2,101) | (2,544) |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from affiliates | 16,589 | 1,110,215 |
Other financing activities, net | (25,489) | (37,872) |
Net cash provided by (used in) financing activities | (10,910) | 1,069,834 |
Effect of exchange rates on cash and cash equivalents | 23,506 | (46,937) |
Net increase (decrease) in cash and cash equivalents | (133,410) | 73,162 |
Cash and cash equivalents, beginning of period | 724,500 | 851,165 |
Cash and cash equivalents, end of period | 591,090 | 924,327 |
Eliminations | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | (33) | 0 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | 0 | 11 |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | 0 | 0 |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 0 | |
Investing cash flows to affiliates | 3,137,316 | 3,357,276 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 3,137,316 | 3,357,287 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 0 | 0 |
Repayments of bank borrowings and long-term debt | 0 | |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from affiliates | (3,137,283) | (3,357,287) |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | (3,137,283) | (3,357,287) |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |