Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Jan. 23, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | FLEX LTD. | |
Entity Central Index Key | 866,374 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 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) | 535,220,962 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,857,096 | $ 1,607,570 |
Accounts receivable, net of allowance for doubtful accounts of $60,112 and $64,608 as of December 31, 2016 and March 31, 2016, respectively | 2,162,750 | 2,044,757 |
Inventories | 3,493,617 | 3,491,656 |
Other current assets | 1,100,159 | 1,171,143 |
Total current assets | 8,613,622 | 8,315,126 |
Property and equipment, net | 2,321,536 | 2,257,633 |
Goodwill and other intangible assets, net | 1,337,321 | 1,345,820 |
Other assets | 530,570 | 466,402 |
Total assets | 12,803,049 | 12,384,981 |
Current liabilities: | ||
Bank borrowings and current portion of long-term debt | 68,856 | 65,166 |
Accounts payable | 4,699,734 | 4,248,292 |
Accrued payroll | 357,922 | 353,547 |
Other current liabilities | 1,751,245 | 1,905,200 |
Total current liabilities | 6,877,757 | 6,572,205 |
Long-term debt, net of current portion | 2,797,984 | 2,709,389 |
Other liabilities | 485,811 | 497,857 |
Commitments and contingencies (Note 13) | ||
Flex Ltd. shareholders’ equity | ||
Ordinary shares, no par value; 586,818,174 and 595,062,966 issued, and 536,578,819 and 544,823,611 outstanding as of December 31, 2016 and March 31, 2016, respectively | 6,806,797 | 6,987,214 |
Treasury stock, at cost; 50,239,355 shares as of December 31, 2016 and March 31, 2016 | (388,215) | (388,215) |
Accumulated deficit | (3,659,522) | (3,892,212) |
Accumulated other comprehensive loss | (159,165) | (135,915) |
Total Flex Ltd. shareholders’ equity | 2,599,895 | 2,570,872 |
Noncontrolling interests | 41,602 | 34,658 |
Total shareholders’ equity | 2,641,497 | 2,605,530 |
Total liabilities and shareholders’ equity | $ 12,803,049 | $ 12,384,981 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 60,112 | $ 64,608 |
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, issued (shares) | 586,818,174 | 595,062,966 |
Ordinary shares, outstanding (shares) | 536,578,819 | 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 | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,114,999 | $ 6,763,177 | $ 18,000,337 | $ 18,646,187 |
Cost of sales | 5,698,544 | 6,310,710 | 16,864,196 | 17,444,463 |
Gross profit | 416,455 | 452,467 | 1,136,141 | 1,201,724 |
Selling, general and administrative expenses | 231,551 | 240,617 | 715,040 | 666,798 |
Intangible amortization | 18,734 | 19,319 | 62,318 | 43,117 |
Interest and other, net | 22,838 | 21,566 | 71,869 | 60,106 |
Other charges, net | 3,090 | 44,415 | 15,007 | 46,257 |
Income before income taxes | 140,242 | 126,550 | 271,907 | 385,446 |
Provision for (benefit from) income taxes | 10,773 | (22,360) | 39,217 | 2,709 |
Net income | $ 129,469 | $ 148,910 | $ 232,690 | $ 382,737 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.24 | $ 0.27 | $ 0.43 | $ 0.68 |
Diluted (in dollars per share) | $ 0.24 | $ 0.27 | $ 0.42 | $ 0.67 |
Weighted-average shares used in computing per share amounts: | ||||
Basic (in shares) | 539,638 | 554,919 | 542,780 | 561,070 |
Diluted (in shares) | 545,022 | 560,996 | 548,372 | 568,926 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 129,469 | $ 148,910 | $ 232,690 | $ 382,737 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (36,412) | 30,063 | (22,338) | 2,579 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (201) | 10,497 | (912) | 17,782 |
Comprehensive income | $ 92,856 | $ 189,470 | $ 209,440 | $ 403,098 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 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 | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 232,690 | $ 382,737 |
Depreciation, amortization and other impairment charges | 466,813 | 381,949 |
Changes in working capital and other | 313,685 | 175,086 |
Net cash provided by operating activities | 1,013,188 | 939,772 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (413,596) | (418,561) |
Proceeds from the disposition of property and equipment | 28,056 | 4,627 |
Acquisition of businesses, net of cash acquired | (180,259) | (903,845) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 36,073 | 3,603 |
Other investing activities, net | (49,704) | 1,397 |
Net cash used in investing activities | (579,430) | (1,312,779) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from bank borrowings and long-term debt | 205,518 | 755,684 |
Repayments of bank borrowings and long-term debt | (115,089) | (40,706) |
Payments for repurchases of ordinary shares | (259,658) | (331,690) |
Net proceeds from issuance of ordinary shares | 11,978 | 52,950 |
Other financing activities, net | (47,302) | (49,742) |
Net cash (used in) provided by financing activities | (204,553) | 386,496 |
Effect of exchange rates on cash and cash equivalents | 20,321 | (7,703) |
Net increase in cash and cash equivalents | 249,526 | 5,786 |
Cash and cash equivalents, beginning of period | 1,607,570 | 1,628,408 |
Cash and cash equivalents, end of period | 1,857,096 | 1,634,194 |
Non-cash investing & financing activity: | ||
Unpaid purchases of property and equipment | 70,092 | 82,024 |
Customer-related third party banking institution financing net settlement | $ 90,576 | $ 0 |
ORGANIZATION OF THE COMPANY AND
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 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 nine-month periods ended December 31, 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 Company's third quarters end on December 31 of each year, which are comprised of 92 days and 97 days for fiscal years 2017 and 2016, 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 Pronouncements In January 2017, the FASB issued new guidance that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early application permitted. The guidance may result in more asset acquisitions being accounted for as purchases of assets in lieu of business combinations. The Company intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2019. In October 2016, the FASB issued new guidance to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity ("VIE") should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. This guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2018. In October 2016, the FASB issued new guidance intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early adoption permitted in the first interim period of fiscal year 2018. The Company intends to early adopt the new guidance starting in the first quarter of fiscal year 2018, with an expected immaterial impact on its consolidated financial statements. 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 | 9 Months Ended |
Dec. 31, 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 December 31, 2016 As of March 31, 2016 (In thousands) Raw materials $ 2,399,270 $ 2,234,512 Work-in-progress 436,289 561,282 Finished goods 658,058 695,862 $ 3,493,617 $ 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 nine-month period ended December 31, 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) — 39,791 17,727 — 57,518 Divestitures (2) (1,787 ) — (2,640 ) — (4,427 ) Purchase accounting adjustments (3) 794 — — — 794 Foreign currency translation adjustments (4) (30,233 ) — — — (30,233 ) Balance, end of the period $ 408,110 $ 108,025 $ 337,890 $ 111,693 $ 965,718 (1) The goodwill generated from the Company’s business combinations completed during the nine-month period ended December 31, 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 12 for additional information. (2) During the nine-month period ended December 31, 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 recorded in other charges, net 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. (4) During the nine-month period ended December 31, 2016 , the Company recorded $30.2 million of foreign currency translation adjustments primarily related to the goodwill associated with the acquisition of Mirror Controls International ("MCi"), as the U.S. Dollar strengthened against the Euro. The components of acquired intangible assets are as follows: As of December 31, 2016 As of March 31, 2016 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 254,991 $ (96,655 ) $ 158,336 $ 223,046 $ (66,473 ) $ 156,573 Licenses and other intangibles 279,740 (66,473 ) 213,267 285,053 (37,872 ) 247,181 Total $ 534,731 $ (163,128 ) $ 371,603 $ 508,099 $ (104,345 ) $ 403,754 The gross carrying amounts of intangible assets are removed when fully amortized. During the nine-month period ended December 31, 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) $ 17,977 2018 66,810 2019 60,038 2020 51,054 2021 46,953 Thereafter 128,771 Total amortization expense $ 371,603 ____________________________________________________________ (1) Represents estimated amortization for the remaining three -month period ending March 31, 2017 . Other Current Assets Other current assets include approximately $668.9 million and $501.1 million as of December 31, 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 10 for additional information. Included in other current assets, as of March 31, 2016 , was the remaining value of certain assets purchased on behalf of a customer and financed by a third party banking institution in the amount of $83.6 million , 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 . During the three-month period ended December 31, 2016, the Company entered into an agreement with the third party banking institution and the customer granted a waiver of any amounts owed under the financing arrangement which allowed for a net settlement of the related asset and liability. Other Assets During the third quarter of fiscal year 2017, the Company formed a joint venture with RIB Software AG, a provider of technology for the construction industry. This joint venture will offer a fully integrated enterprise software platform for building and housing projects. The Company contributed $60.0 million for a non-controlling interest in this joint venture, and the amount is included in other assets on the condensed consolidated balance sheet using the equity method of accounting. The equity in earnings related to this investment is immaterial to the Company's condensed consolidated statement of operations for the three-month and nine-month periods ended December 31, 2016, and is included in interest and other, net. Other Current Liabilities Other current liabilities include customer working capital advances of $228.0 million and $253.7 million , customer-related accruals of $494.5 million and $479.5 million , and deferred revenue of $311.3 million and $332.3 million as of December 31, 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. As of March 31, 2016, other current liabilities also include the outstanding balance due to the third party banking institution related to the financed equipment discussed above of $122.0 million . As discussed above, during the three-month period ended December 31, 2016, the Company entered into an agreement with the third party banking institution and the customer granted a waiver of any amounts owed under the financing arrangement which provided for a net settlement of the outstanding balance of approximately $90.6 million with the related asset. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Cost of sales $ 2,437 $ 2,407 $ 7,506 $ 6,440 Selling, general and administrative expenses 18,344 21,826 59,805 50,119 Total share-based compensation expense $ 20,781 $ 24,233 $ 67,311 $ 56,559 The 2010 Equity Incentive Plan Total unrecognized compensation expense related to share options under the 2010 Plan is not significant. As of December 31, 2016 , the number of options outstanding and exercisable under the 2010 Plan was 0.2 million each, and at a weighted-average exercise price of $8.97 per share and $8.93 per share, respectively. During the nine-month period ended December 31, 2016 , the Company granted 6.3 million unvested share bonus awards under the 2010 Plan. Of this amount, approximately 5.4 million unvested share bonus awards have an average grant date price of $12.93 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 December 31, 2016 , approximately 15.8 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 nine -month period ended December 31, 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 December 31, 2016 , total unrecognized compensation expense related to unvested share bonus awards under the 2010 Plan is $139.2 million , and will be recognized over a weighted-average remaining vesting period of 2.6 years. Approximately $22.6 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 nine-month period ended December 31, 2016 . As of December 31, 2016 , total unrecognized compensation expense related to share options under the NEXTracker Plan is $9.2 million , and will be recognized over a weighted-average remaining vesting period of 2.1 years. As of December 31, 2016 , the number of options outstanding and exercisable was 1.8 million and 0.4 million , respectively, at a weighted-average exercise price of $3.54 per share and $4.48 per share, respectively. As of December 31, 2016 , approximately 1.6 million unvested share bonus awards were outstanding. The total unrecognized compensation expense related to unvested share bonus awards under the NEXTracker Plan is $10.7 million , and will be recognized over a weighted-average remaining vesting period of 1.8 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 December 31, 2016 , total unrecognized compensation expense related to share options under the BrightBox Plan is $1.5 million , and will be recognized over a weighted-average remaining vesting period of 2.4 years. As of December 31, 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 December 31, 2016 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands, except per share amounts) Net income $ 129,469 $ 148,910 $ 232,690 $ 382,737 Shares used in computation: Weighted-average ordinary shares outstanding 539,638 554,919 542,780 561,070 Basic earnings per share $ 0.24 $ 0.27 $ 0.43 $ 0.68 Diluted earnings per share: Net income $ 129,469 $ 148,910 $ 232,690 $ 382,737 Shares used in computation: Weighted-average ordinary shares outstanding 539,638 554,919 542,780 561,070 Weighted-average ordinary share equivalents from stock options and awards (1) (2) 5,384 6,077 5,592 7,856 Weighted-average ordinary shares and ordinary share equivalents outstanding 545,022 560,996 548,372 568,926 Diluted earnings per share $ 0.24 $ 0.27 $ 0.42 $ 0.67 ____________________________________________________________ (1) Options to purchase ordinary shares of 0.5 million and 2.1 million during the three -month periods ended December 31, 2016 and December 31, 2015 , respectively, and share bonus awards of 0.1 million for the three-month period ended December 31, 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 three-month period ended December 31, 2016 . (2) Options to purchase ordinary shares of 0.7 million and 1.2 million during the nine-month periods ended December 31, 2016 and December 31, 2015 , respectively, and share bonus awards of 3.5 million for the nine-month period ended December 31, 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 nine-month period ended December 31, 2016 . |
BANK BORROWINGS AND LONG TERM D
BANK BORROWINGS AND LONG TERM DEBT | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BANK BORROWINGS AND LONG TERM DEBT | BANK BORROWINGS AND LONG TERM DEBT Bank borrowings and long-term debt are as follows: As of December 31, 2016 As of March 31, 2016 (In thousands) Term Loan, including current portion, due in installments through March 2019 $ 525,000 $ 547,500 4.625% Notes due February 2020 500,000 500,000 Term Loan, including current portion, due in installments through November 2021 700,000 577,500 5.000% Notes due February 2023 500,000 500,000 4.75% Notes due June 2025 595,879 595,589 Other 62,448 71,317 Debt issuance costs (16,487 ) (17,351 ) Total $ 2,866,840 $ 2,774,555 The weighted-average interest rates for the Company’s long-term debt were 3.5% as of December 31, 2016 and March 31, 2016 . On August 30, 2013, the Company entered into a $600 million term loan agreement due August 30, 2018. On November 30, 2016, the Company entered into a new arrangement to extend the maturity date of the agreement from August 30, 2018 to November 30, 2021, and borrowed an incremental amount of $130 million under this term loan, thereby increasing the total amount under the term loan to $700 million . This loan is repayable in quarterly installments of $4.1 million , which will commence October 31, 2017 and continue through September 30, 2021, with the remaining amount due at maturity. Borrowings under this term loan bear interest, at the Company's option, either at (i) LIBOR plus the applicable margin for LIBOR loans ranging between 1.125% and 2.125% , based on the Company's credit ratings or (ii) the base rate (the greatest of the prime rate in effect on each day as published in The Wall Street Journal, the federal funds rate plus 0.5% and LIBOR for a one-month interest period plus 1.00% ) plus an applicable margin ranging between 0.125% and 1.125% , based on the Company's credit rating. This term loan is unsecured, and contains customary restrictions on the Company's and its subsidiaries' ability to (i) incur certain debt, (ii) make certain investments, (iii) make certain acquisitions of other entities, (iv) incur liens, (v) dispose of assets, (vi) make non-cash distributions to shareholders, and (vii) engage in transactions with affiliates. These covenants are subject to a number of exceptions and limitations. This term loan agreement also requires that the Company maintain a maximum ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation and amortization), and a minimum interest coverage ratio, as defined therein, during its term; provided that the requirement to maintain the minimum interest coverage ratio may be suspended in certain circumstances. As of December 31, 2016 , the Company was in compliance with the covenants under this term loan agreement. Repayment of the Company’s long term debt outstanding as of December 31, 2016 is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2017 (1) $ 11,579 2018 58,504 2019 486,317 2020 517,567 2021 64,648 Thereafter 1,744,712 Total $ 2,883,327 _________________________________________________________ (1) Represents scheduled repayment for the remaining three -month period ending March 31, 2017 . On January 23, 2017, the Company entered into a €100 million (approximately $105.4 million as of December 31, 2016), 5 -year, unsecured, term-loan agreement due January 2, 2022. |
INTEREST AND OTHER, NET
INTEREST AND OTHER, NET | 9 Months Ended |
Dec. 31, 2016 | |
INTEREST AND OTHER, NET | |
INTEREST AND OTHER, NET | INTEREST AND OTHER, NET During the three-month and nine-month periods ended December 31, 2016 , the Company recognized interest expense of $26.6 million and $79.9 million , respectively, on its debt obligations outstanding during the periods. During the three-month and nine-month periods ended December 31, 2015 , the Company recognized interest expense of $26.2 million and $71.4 million , respectively. |
OTHER CHARGES, NET
OTHER CHARGES, NET | 9 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES, NET | OTHER CHARGES, NET The Company incurred expenses of $44.4 million and $46.3 million during the three-month and nine-month periods ended December 31, 2015 , respectively, primarily due to $26.8 million loss on disposition of a non-strategic Western European manufacturing facility, which included a non-cash foreign currency translation loss of $25.3 million , and $21.8 million from the impairment of a non-core investment. These were offset by currency translation gains of $4.2 million during the three-month and nine-month periods ended December 31, 2015 . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Foreign Currency Contracts The Company enters into forward contracts and foreign currency swap contracts primarily 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 December 31, 2016 , the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.8 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 1,037,000 — $ 148,969 $ — EUR 36,268 56,358 37,693 64,046 HUF 16,053,300 — 54,006 — ILS 86,441 — 22,413 — INR 1,314,549 — 19,100 — MXN 1,775,000 — 85,636 — MYR 139,000 9,000 31,013 2,008 RON 95,661 — 21,901 — Other N/A N/A 34,172 12,223 454,903 78,277 Other Foreign Currency Contracts BRL — 443,000 — 134,946 CNY 4,319,620 2,035,392 620,177 292,391 DKK 187,400 157,200 26,201 21,979 EUR 874,957 1,385,620 913,218 1,444,927 GBP 35,110 65,145 42,969 79,940 HUF 29,285,732 24,552,611 98,522 82,599 ILS 62,640 59,420 16,241 15,407 INR 4,040,788 677,800 59,242 10,000 MXN 1,718,039 1,155,529 82,888 55,749 MYR 383,028 89,800 85,459 20,036 PLN 122,243 70,681 28,864 16,689 SGD 44,800 11,150 30,846 7,677 Other N/A N/A 54,729 67,304 2,059,356 2,249,644 Total Notional Contract Value in USD $ 2,514,259 $ 2,327,921 As of December 31, 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 December 31, 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 $3.6 million as of December 31, 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 December 31, March 31, Balance Sheet December 31, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 7,681 $ 5,510 Other current liabilities $ 9,933 $ 2,446 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 20,254 $ 17,138 Other current liabilities $ 12,995 $ 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 | 9 Months Ended |
Dec. 31, 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 December 31, 2016 December 31, 2015 Unrealized loss on Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (42,233 ) $ (80,319 ) $ (122,552 ) $ (60,981 ) $ (139,723 ) $ (200,704 ) Other comprehensive gain (loss) before reclassifications (1,354 ) (33,770 ) (35,124 ) 5,941 9,224 15,165 Net (gains) losses reclassified from accumulated other comprehensive loss 1,153 (2,642 ) (1,489 ) 4,556 20,839 25,395 Net current-period other comprehensive gain (loss) (201 ) (36,412 ) (36,613 ) 10,497 30,063 40,560 Ending balance $ (42,434 ) $ (116,731 ) $ (159,165 ) $ (50,484 ) $ (109,660 ) $ (160,144 ) Nine-Month Periods Ended December 31, 2016 December 31, 2015 Unrealized loss on 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 loss before reclassifications (1,031 ) (19,471 ) (20,502 ) (8,478 ) (18,412 ) (26,890 ) Net (gains) losses reclassified from accumulated other comprehensive loss 119 (2,867 ) (2,748 ) 26,260 20,991 47,251 Net current-period other comprehensive gain (loss) (912 ) (22,338 ) (23,250 ) 17,782 2,579 20,361 Ending balance $ (42,434 ) $ (116,731 ) $ (159,165 ) $ (50,484 ) $ (109,660 ) $ (160,144 ) Net losses reclassified from accumulated other comprehensive loss during the nine -month period ended December 31, 2015 relating to derivative instruments and other includes $24.7 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. During the three-month ended December 31, 2015 , the Company recognized a loss of $26.8 million in connection with the disposition of a non-strategic Western European manufacturing facility, which included a $25.3 million cumulative foreign currency translation loss. This loss was offset by the release of certain cumulative foreign currency translation gains of $4.2 million , which has been reclassified from accumulated other comprehensive loss during the period and is included in other charges, net 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 nine-month periods ended December 31, 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 | 9 Months Ended |
Dec. 31, 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 $850.0 million for the Global Program, of which $750.0 million is committed and $100.0 million is uncommitted, and $250.0 million for the North American Program, of which $210.0 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 nine-month periods ended December 31, 2016 and December 31, 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 December 31, 2016 , approximately $1.7 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 $1.0 billion and deferred purchase price receivables of approximately $668.9 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 December 31, 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 December 31, 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 nine-month periods ended December 31, 2016 and December 31, 2015 , cash flows from sales of receivables under the ABS Programs consisted of approximately $4.2 billion and $3.9 billion , for transfers of receivables, respectively (of which approximately $315.1 million and $355.1 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Beginning balance $ 461,544 $ 537,619 $ 501,097 $ 600,672 Transfers of receivables 919,766 920,370 2,442,490 2,671,095 Collections (712,392 ) (923,294 ) (2,274,669 ) (2,737,072 ) Ending balance $ 668,918 $ 534,695 $ 668,918 $ 534,695 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 $209.5 million and $339.1 million as of December 31, 2016 and March 31, 2016 , respectively. For the nine-month periods ended December 31, 2016 and December 31, 2015 , total accounts receivable sold to certain third party banking institutions was approximately $1.0 billion and $1.8 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 | 9 Months Ended |
Dec. 31, 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. During the three-month period ended December 31, 2015 , the Company accrued $81.0 million of contingent consideration related to the acquisition of NEXTracker on the date of acquisition. 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. During the three-month period ended December 31, 2016 , the Company paid $40.6 million of the total contingent consideration following the first year's targets achievement in accordance with the terms of the merger agreement, which is included in other financing activities, net, in the condensed consolidated statements of cash flows. The following table summarizes the activities related to contingent consideration: Three-Month Periods Ended Nine-Month Periods Ended December 31, December 31, December 31, December 31, (In thousands) Beginning balance $ 75,614 $ 4,500 $ 73,423 $ 4,500 Additions to accrual — 81,000 — 81,000 Payments (40,555 ) — (42,776 ) — Fair value adjustments (6,997 ) 4,000 (2,585 ) 4,000 Ending balance $ 28,062 $ 89,500 $ 28,062 $ 89,500 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 10 for a reconciliation of the change in the deferred purchase price receivable during the three-month and nine-month periods ended December 31, 2016 and December 31, 2015 . There were no transfers between levels in the fair value hierarchy during the three-month and nine-month periods ended December 31, 2016 and December 31, 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 December 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) $ — $ 751,027 $ — $ 751,027 Deferred purchase price receivable (Note 10) — — 668,918 668,918 Foreign exchange contracts (Note 8) — 27,935 — 27,935 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 6,686 50,522 — 57,208 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (22,928 ) $ — $ (22,928 ) Contingent consideration in connection with business acquisitions — — (28,062 ) (28,062 ) 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 10) — — 501,097 501,097 Foreign exchange contracts (Note 8) — 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 8) $ — $ (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 December 31, 2016 As of March 31, 2016 Carrying Fair Carrying Fair Fair Value (In thousands) Term Loan, including current portion, due in installments through March 2019 525,000 524,675 547,500 542,709 Level 1 4.625% Notes due February 2020 500,000 525,740 500,000 524,735 Level 1 Term Loan, including current portion, due in installments through November 2021 (1) 700,000 696,941 577,500 573,533 Level 1 5.000% Notes due February 2023 500,000 532,810 500,000 507,500 Level 1 4.750% Notes due June 2025 595,879 639,288 595,589 604,926 Level 1 Total $ 2,820,879 $ 2,919,454 $ 2,720,589 $ 2,753,403 (1) On November 30, 2016, the Company entered into a new arrangement to extend the maturity date of the agreement from August 30, 2018 to November 30, 2021. Refer to note 5 for further details of the arrangement. 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 outstanding €49.7 million (approximately $52.3 million as of December 31, 2016 ), 5 -year, unsecured, term-loan due September 30, 2020 based on the current market rate, and as of December 31, 2016 , the carrying amount approximates fair value. |
BUSINESS AND ASSET ACQUISITIONS
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES | 9 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES | BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES Business and asset acquisitions During the nine-month period ended December 31, 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 $179.7 million , net of cash acquired, of which $ 161.9 million , net of $17.8 million of cash acquired is related to the Bose acquisition. The Company acquired primarily $69.8 million of inventory, $66.0 million of property and equipment, recorded goodwill of $57.5 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 $60.8 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 nine-month periods ended December 31, 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 for the acquisitions completed in fiscal year 2016, collectively, were $29.5 million and $34.4 million , for the three-month and nine-month periods ended December 31, 2015, respectively. The total amount of revenue of these acquisitions, collectively, was not material to the Company’s consolidated financial results for the three-month and nine-month periods ended December 31, 2015 . 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 $111.4 million and $322.0 million for the three-month and nine-month periods ended December 31, 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 nine-month period ended December 31, 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 nine-month period ended December 31, 2016 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and other legal matters One of the Company's Brazilian subsidiaries has received several related assessments for certain sales and import taxes. The first two tax assessments were received in fiscal year 2014 and fiscal year 2016 relating to calendar year 2010 for an alleged total amount of 109 million Brazilian reals (approximately USD $34 million based on the exchange rate as of December 31, 2016 ). These two assessments are in various stages of the review process at the administrative level. During the third quarter of fiscal year 2017, the same Brazilian subsidiary received a third assessment related to calendar year 2011 taxes of an additional 181 million Brazilian reals (approximately USD $56 million based on the exchange rate as of December 31, 2016 ). The Company plans to continue to vigorously oppose all 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 its 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 these assessments or any future assessments that are reasonably possible. The Company does not expect final judicial determination on any 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 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 | 9 Months Ended |
Dec. 31, 2016 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
SHARE REPURCHASES | SHARE REPURCHASES During the three-month and nine-month periods ended December 31, 2016 , the Company repurchased 5.2 million shares at an aggregate purchase price of $75.0 million , and 19.5 million shares at an aggregate purchase price of $255.9 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 December 31, 2016 , shares in the aggregate amount of $375.2 million were available to be repurchased under the current plan. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Net sales: Communications & Enterprise Compute $ 2,102,321 $ 2,469,099 $ 6,400,233 $ 6,640,626 Consumer Technologies Group 1,848,970 2,057,850 4,827,488 5,633,903 Industrial & Emerging Industries 1,140,366 1,214,225 3,672,103 3,490,205 High Reliability Solutions 1,023,342 1,022,003 3,100,513 2,881,453 $ 6,114,999 $ 6,763,177 $ 18,000,337 $ 18,646,187 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 62,109 $ 75,578 $ 176,460 $ 198,400 Consumer Technologies Group 59,282 49,032 139,230 129,045 Industrial & Emerging Industries 39,681 49,230 127,020 110,498 High Reliability Solutions 82,729 82,806 249,972 213,890 Corporate and Other (20,695 ) (20,563 ) (82,395 ) (60,348 ) Total segment income 223,106 236,083 610,287 591,485 Reconciling items: Intangible amortization 18,734 19,319 62,318 43,117 Stock-based compensation 20,781 24,233 67,311 56,559 Inventory impairment and other (1) — — 92,915 — Restructuring (2) 17,421 — 28,960 — Other charges, net 3,090 44,415 15,007 46,257 Interest and other, net 22,838 21,566 71,869 60,106 Income before income taxes $ 140,242 $ 126,550 $ 271,907 $ 385,446 (1) During the fourth quarter of fiscal year 2016, the Company accepted the 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 second quarter of fiscal year 2017, prices for solar panel modules declined significantly. The Company determined that certain solar panel inventory on hand at the end of the second quarter of fiscal year 2017 was not fully recoverable and recorded a charge of $60.0 million to reduce the carrying costs to market in the nine-month period ended December 31, 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 period. The total charge of $92.9 million is included in cost of sales for the nine-month period ended December 31, 2016 but is excluded from segment results above. (2) During the second quarter of fiscal year 2017, the Company 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 S ketch-to-Scale tm initiatives. As part of this plan, approximately $29.0 million was recognized during the nine-month period ended December 31, 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 | 9 Months Ended |
Dec. 31, 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 December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 943,807 $ 63,698 $ 849,591 $ — $ 1,857,096 Accounts receivable — 815,141 1,347,609 — 2,162,750 Inventories — 1,521,272 1,972,345 — 3,493,617 Inter company receivable 10,504,971 7,802,175 14,601,712 (32,908,858 ) — Other current assets 5,796 187,215 907,148 — 1,100,159 Total current assets 11,454,574 10,389,501 19,678,405 (32,908,858 ) 8,613,622 Property and equipment, net — 584,382 1,737,154 — 2,321,536 Goodwill and other intangible assets, net 1,214 85,894 1,250,213 — 1,337,321 Other assets 2,211,872 276,492 2,000,849 (3,958,643 ) 530,570 Investment in subsidiaries 2,562,818 3,456,295 17,947,038 (23,966,151 ) — Total assets $ 16,230,478 $ 14,792,564 $ 42,613,659 $ (60,833,652 ) $ 12,803,049 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 63,365 $ — $ 5,491 $ — $ 68,856 Accounts payable — 1,734,186 2,965,548 — 4,699,734 Accrued payroll — 99,464 258,458 — 357,922 Inter company payable 10,728,155 10,528,081 11,652,622 (32,908,858 ) — Other current liabilities 28,349 785,866 937,030 — 1,751,245 Total current liabilities 10,819,869 13,147,597 15,819,149 (32,908,858 ) 6,877,757 Long term liabilities 2,810,714 2,042,092 2,389,632 (3,958,643 ) 3,283,795 Flex Ltd. shareholders’ equity (deficit) 2,599,895 (397,125 ) 24,363,276 (23,966,151 ) 2,599,895 Noncontrolling interests — — 41,602 — 41,602 Total shareholders’ equity (deficit) 2,599,895 (397,125 ) 24,404,878 (23,966,151 ) 2,641,497 Total liabilities and shareholders’ equity $ 16,230,478 $ 14,792,564 $ 42,613,659 $ (60,833,652 ) $ 12,803,049 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 3,038,002 18,175,348 (24,028,776 ) — Total assets $ 14,908,294 $ 12,028,179 $ 40,610,340 $ (55,161,832 ) $ 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 (421,904 ) 24,450,680 (24,028,776 ) 2,570,872 Noncontrolling interests — — 34,658 — 34,658 Total shareholders’ equity (deficit) 2,570,872 (421,904 ) 24,485,338 (24,028,776 ) 2,605,530 Total liabilities and shareholders’ equity $ 14,908,294 $ 12,028,179 $ 40,610,340 $ (55,161,832 ) $ 12,384,981 Condensed Consolidating Statements of Operations for the Three -Month Period Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,186,855 $ 4,453,753 $ (2,525,609 ) $ 6,114,999 Cost of sales — 3,722,516 4,501,637 (2,525,609 ) 5,698,544 Gross profit (loss) — 464,339 (47,884 ) — 416,455 Selling, general and administrative expenses — 66,738 164,813 — 231,551 Intangible amortization 25 864 17,845 — 18,734 Interest and other, net (370,703 ) 662,422 (265,791 ) — 25,928 Income (loss) from continuing operations before income taxes 370,678 (265,685 ) 35,249 — 140,242 Provision for (benefit from) income taxes — (4,018 ) 14,791 — 10,773 Equity in earnings in subsidiaries (241,209 ) (71,920 ) 4,401 308,728 — Net income (loss) $ 129,469 $ (333,587 ) $ 24,859 $ 308,728 $ 129,469 Condensed Consolidating Statements of Operations for the Three -Month Period Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,597,684 $ 5,718,182 $ (3,552,689 ) $ 6,763,177 Cost of sales — 4,187,076 5,676,323 (3,552,689 ) 6,310,710 Gross profit — 410,608 41,859 — 452,467 Selling, general and administrative expenses — 83,346 157,271 — 240,617 Intangible amortization 75 960 18,284 — 19,319 Interest and other, net 49,358 316,345 (299,722 ) — 65,981 Income (loss) from continuing operations before income taxes (49,433 ) 9,957 166,026 — 126,550 Benefit from income taxes — (8,071 ) (14,289 ) — (22,360 ) Equity in earnings in subsidiaries 198,343 (88,988 ) (10,534 ) (98,821 ) — Net income (loss) $ 148,910 $ (70,960 ) $ 169,781 $ (98,821 ) $ 148,910 Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 12,008,455 $ 13,981,899 $ (7,990,017 ) $ 18,000,337 Cost of sales — 10,822,629 14,031,584 (7,990,017 ) 16,864,196 Gross profit (loss) — 1,185,826 (49,685 ) — 1,136,141 Selling, general and administrative expenses — 212,059 502,981 — 715,040 Intangible amortization 175 2,298 59,845 — 62,318 Interest and other, net (561,290 ) 1,322,198 (674,032 ) — 86,876 Income (loss) from continuing operations before income taxes 561,115 (350,729 ) 61,521 — 271,907 Provision for (benefit from) income taxes 11 (947 ) 40,153 — 39,217 Equity in earnings in subsidiaries (328,414 ) (136,175 ) (69,935 ) 534,524 — Net income (loss) $ 232,690 $ (485,957 ) $ (48,567 ) $ 534,524 $ 232,690 Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 13,126,281 $ 15,168,232 $ (9,648,326 ) $ 18,646,187 Cost of sales — 11,972,388 15,120,401 (9,648,326 ) 17,444,463 Gross profit — 1,153,893 47,831 — 1,201,724 Selling, general and administrative expenses — 213,614 453,184 — 666,798 Intangible amortization 225 2,881 40,011 — 43,117 Interest and other, net (347,663 ) 929,730 (475,704 ) — 106,363 Income from continuing operations before income taxes 347,438 7,668 30,340 — 385,446 Provision for (benefit from) income taxes — (4,630 ) 7,339 — 2,709 Equity in earnings in subsidiaries 35,299 (140,241 ) 42,225 62,717 — Net income (loss) $ 382,737 $ (127,943 ) $ 65,226 $ 62,717 $ 382,737 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended December 31, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 129,469 $ (333,587 ) $ 24,859 $ 308,728 $ 129,469 Other comprehensive income: Foreign currency translation adjustments, net of zero tax (36,412 ) 58,791 35,660 (94,451 ) (36,412 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (201 ) 3,443 (201 ) (3,242 ) (201 ) Comprehensive income (loss) $ 92,856 $ (271,353 ) $ 60,318 $ 211,035 $ 92,856 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended December 31, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 148,910 $ (70,960 ) $ 169,781 $ (98,821 ) $ 148,910 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax 30,063 62,209 50,828 (113,037 ) 30,063 Unrealized gain on derivative instruments and other, net of zero tax 10,497 4,099 10,497 (14,596 ) 10,497 Comprehensive income (loss) $ 189,470 $ (4,652 ) $ 231,106 $ (226,454 ) $ 189,470 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 232,690 $ (485,957 ) $ (48,567 ) $ 534,524 $ 232,690 Other comprehensive income (loss): 0 Foreign currency translation adjustments, net of zero tax (22,338 ) 68,972 57,055 (126,027 ) (22,338 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (912 ) 6,942 (912 ) (6,030 ) (912 ) Comprehensive income (loss) $ 209,440 $ (410,043 ) $ 7,576 $ 402,467 $ 209,440 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 382,737 $ (127,943 ) $ 65,226 $ 62,717 $ 382,737 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax 2,579 5,025 (703 ) (4,322 ) 2,579 Unrealized gain on derivative instruments and other, net of zero tax 17,782 9,884 17,782 (27,666 ) 17,782 Comprehensive income (loss) $ 403,098 $ (113,034 ) $ 82,305 $ 30,729 $ 403,098 Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 520,709 $ (354,918 ) $ 847,430 $ (33 ) $ 1,013,188 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (134,755 ) (250,812 ) 27 (385,540 ) Acquisition of businesses, net of cash acquired — (73,469 ) (106,790 ) — (180,259 ) Proceeds from divestiture of businesses, net of cash held in divested businesses — 20,500 15,573 — 36,073 Investing cash flows to affiliates (840,082 ) (3,334,220 ) (532,400 ) 4,706,702 — Other investing activities, net (61,213 ) (7,823 ) 19,332 — (49,704 ) Net cash used in investing activities (901,295 ) (3,529,767 ) (855,097 ) 4,706,729 (579,430 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 204,916 — 602 — 205,518 Repayments of bank borrowings, long-term debt and capital lease obligations (106,547 ) (4,460 ) (4,082 ) — (115,089 ) Payments for repurchases of ordinary shares (259,658 ) — — — (259,658 ) Net proceeds from issuance of ordinary shares 11,978 — — — 11,978 Financing cash flows from affiliates 790,398 3,813,276 103,022 (4,706,696 ) — Other financing activities, net 30,000 (11,347 ) (65,955 ) — (47,302 ) Net cash provided by financing activities 671,087 3,797,469 33,587 (4,706,696 ) (204,553 ) Effect of exchange rates on cash and cash equivalents (81,563 ) 2,713 99,171 — 20,321 Net increase (decrease) in cash and cash equivalents 208,938 (84,503 ) 125,091 — 249,526 Cash and cash equivalents, beginning of period 734,869 148,201 724,500 — 1,607,570 Cash and cash equivalents, end of period $ 943,807 $ 63,698 $ 849,591 $ — $ 1,857,096 Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 343,182 $ (93,746 ) $ 690,336 $ — $ 939,772 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (128,011 ) (285,928 ) 5 (413,934 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — (809,233 ) (94,612 ) — (903,845 ) Proceeds from divestiture of business, net of cash held in divested business — — 3,603 — 3,603 Investing cash flows to affiliates (1,099,775 ) (923,812 ) (1,087,520 ) 3,111,107 — Other investing activities, net (2,046 ) (23,270 ) 26,713 — 1,397 Net cash used in investing activities (1,101,821 ) (1,884,326 ) (1,437,744 ) 3,111,112 (1,312,779 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 695,309 — 60,375 — 755,684 Repayments of bank borrowings, long-term debt and capital lease obligations (35,638 ) (1,333 ) (3,735 ) — (40,706 ) Payments for repurchases of ordinary shares (331,690 ) — — — (331,690 ) Net proceeds from issuance of ordinary shares 52,950 — — — 52,950 Financing cash flows from affiliates 632,750 1,996,352 482,010 (3,111,112 ) — Other financing activities, net — — (49,742 ) — (49,742 ) Net cash provided by financing activities 1,013,681 1,995,019 488,908 (3,111,112 ) 386,496 Effect of exchange rates on cash and cash equivalents 4,101 2,143 (13,947 ) — (7,703 ) Net decrease (increase) in cash and cash equivalents 259,143 19,090 (272,447 ) — 5,786 Cash and cash equivalents, beginning of period 608,971 168,272 851,165 — 1,628,408 Cash and cash equivalents, end of period $ 868,114 $ 187,362 $ 578,718 $ — $ 1,634,194 |
ORGANIZATION OF THE COMPANY A24
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization of the Company | 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 | 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 nine-month periods ended December 31, 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 Company's third quarters end on December 31 of each year, which are comprised of 92 days and 97 days for fiscal years 2017 and 2016, 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 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 Pronouncements In January 2017, the FASB issued new guidance that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early application permitted. The guidance may result in more asset acquisitions being accounted for as purchases of assets in lieu of business combinations. The Company intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2019. In October 2016, the FASB issued new guidance to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity ("VIE") should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. This guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2018. In October 2016, the FASB issued new guidance intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early adoption permitted in the first interim period of fiscal year 2018. The Company intends to early adopt the new guidance starting in the first quarter of fiscal year 2018, with an expected immaterial impact on its consolidated financial statements. 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) | 9 Months Ended |
Dec. 31, 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 December 31, 2016 As of March 31, 2016 (In thousands) Raw materials $ 2,399,270 $ 2,234,512 Work-in-progress 436,289 561,282 Finished goods 658,058 695,862 $ 3,493,617 $ 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 nine-month period ended December 31, 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) — 39,791 17,727 — 57,518 Divestitures (2) (1,787 ) — (2,640 ) — (4,427 ) Purchase accounting adjustments (3) 794 — — — 794 Foreign currency translation adjustments (4) (30,233 ) — — — (30,233 ) Balance, end of the period $ 408,110 $ 108,025 $ 337,890 $ 111,693 $ 965,718 (1) The goodwill generated from the Company’s business combinations completed during the nine-month period ended December 31, 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 12 for additional information. (2) During the nine-month period ended December 31, 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 recorded in other charges, net 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. (4) During the nine-month period ended December 31, 2016 , the Company recorded $30.2 million of foreign currency translation adjustments primarily related to the goodwill associated with the acquisition of Mirror Controls International ("MCi"), as the U.S. Dollar strengthened against the Euro. |
Schedule of components of acquired intangible assets | The components of acquired intangible assets are as follows: As of December 31, 2016 As of March 31, 2016 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 254,991 $ (96,655 ) $ 158,336 $ 223,046 $ (66,473 ) $ 156,573 Licenses and other intangibles 279,740 (66,473 ) 213,267 285,053 (37,872 ) 247,181 Total $ 534,731 $ (163,128 ) $ 371,603 $ 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) $ 17,977 2018 66,810 2019 60,038 2020 51,054 2021 46,953 Thereafter 128,771 Total amortization expense $ 371,603 ____________________________________________________________ (1) Represents estimated amortization for the remaining three -month period ending March 31, 2017 . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Cost of sales $ 2,437 $ 2,407 $ 7,506 $ 6,440 Selling, general and administrative expenses 18,344 21,826 59,805 50,119 Total share-based compensation expense $ 20,781 $ 24,233 $ 67,311 $ 56,559 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands, except per share amounts) Net income $ 129,469 $ 148,910 $ 232,690 $ 382,737 Shares used in computation: Weighted-average ordinary shares outstanding 539,638 554,919 542,780 561,070 Basic earnings per share $ 0.24 $ 0.27 $ 0.43 $ 0.68 Diluted earnings per share: Net income $ 129,469 $ 148,910 $ 232,690 $ 382,737 Shares used in computation: Weighted-average ordinary shares outstanding 539,638 554,919 542,780 561,070 Weighted-average ordinary share equivalents from stock options and awards (1) (2) 5,384 6,077 5,592 7,856 Weighted-average ordinary shares and ordinary share equivalents outstanding 545,022 560,996 548,372 568,926 Diluted earnings per share $ 0.24 $ 0.27 $ 0.42 $ 0.67 ____________________________________________________________ (1) Options to purchase ordinary shares of 0.5 million and 2.1 million during the three -month periods ended December 31, 2016 and December 31, 2015 , respectively, and share bonus awards of 0.1 million for the three-month period ended December 31, 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 three-month period ended December 31, 2016 . (2) Options to purchase ordinary shares of 0.7 million and 1.2 million during the nine-month periods ended December 31, 2016 and December 31, 2015 , respectively, and share bonus awards of 3.5 million for the nine-month period ended December 31, 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 nine-month period ended December 31, 2016 . |
BANK BORROWINGS AND LONG TERM28
BANK BORROWINGS AND LONG TERM DEBT (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of bank borrowings and long-term debt | Bank borrowings and long-term debt are as follows: As of December 31, 2016 As of March 31, 2016 (In thousands) Term Loan, including current portion, due in installments through March 2019 $ 525,000 $ 547,500 4.625% Notes due February 2020 500,000 500,000 Term Loan, including current portion, due in installments through November 2021 700,000 577,500 5.000% Notes due February 2023 500,000 500,000 4.75% Notes due June 2025 595,879 595,589 Other 62,448 71,317 Debt issuance costs (16,487 ) (17,351 ) Total $ 2,866,840 $ 2,774,555 |
Schedule of the Company's repayments of long-term debt | Repayment of the Company’s long term debt outstanding as of December 31, 2016 is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2017 (1) $ 11,579 2018 58,504 2019 486,317 2020 517,567 2021 64,648 Thereafter 1,744,712 Total $ 2,883,327 _________________________________________________________ (1) Represents scheduled repayment for the remaining three -month period ending March 31, 2017 . |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, 2016 , the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.8 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 1,037,000 — $ 148,969 $ — EUR 36,268 56,358 37,693 64,046 HUF 16,053,300 — 54,006 — ILS 86,441 — 22,413 — INR 1,314,549 — 19,100 — MXN 1,775,000 — 85,636 — MYR 139,000 9,000 31,013 2,008 RON 95,661 — 21,901 — Other N/A N/A 34,172 12,223 454,903 78,277 Other Foreign Currency Contracts BRL — 443,000 — 134,946 CNY 4,319,620 2,035,392 620,177 292,391 DKK 187,400 157,200 26,201 21,979 EUR 874,957 1,385,620 913,218 1,444,927 GBP 35,110 65,145 42,969 79,940 HUF 29,285,732 24,552,611 98,522 82,599 ILS 62,640 59,420 16,241 15,407 INR 4,040,788 677,800 59,242 10,000 MXN 1,718,039 1,155,529 82,888 55,749 MYR 383,028 89,800 85,459 20,036 PLN 122,243 70,681 28,864 16,689 SGD 44,800 11,150 30,846 7,677 Other N/A N/A 54,729 67,304 2,059,356 2,249,644 Total Notional Contract Value in USD $ 2,514,259 $ 2,327,921 |
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 December 31, March 31, Balance Sheet December 31, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 7,681 $ 5,510 Other current liabilities $ 9,933 $ 2,446 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 20,254 $ 17,138 Other current liabilities $ 12,995 $ 18,645 |
ACCUMULATED OTHER COMPREHENSI30
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, 2016 December 31, 2015 Unrealized loss on Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (42,233 ) $ (80,319 ) $ (122,552 ) $ (60,981 ) $ (139,723 ) $ (200,704 ) Other comprehensive gain (loss) before reclassifications (1,354 ) (33,770 ) (35,124 ) 5,941 9,224 15,165 Net (gains) losses reclassified from accumulated other comprehensive loss 1,153 (2,642 ) (1,489 ) 4,556 20,839 25,395 Net current-period other comprehensive gain (loss) (201 ) (36,412 ) (36,613 ) 10,497 30,063 40,560 Ending balance $ (42,434 ) $ (116,731 ) $ (159,165 ) $ (50,484 ) $ (109,660 ) $ (160,144 ) Nine-Month Periods Ended December 31, 2016 December 31, 2015 Unrealized loss on 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 loss before reclassifications (1,031 ) (19,471 ) (20,502 ) (8,478 ) (18,412 ) (26,890 ) Net (gains) losses reclassified from accumulated other comprehensive loss 119 (2,867 ) (2,748 ) 26,260 20,991 47,251 Net current-period other comprehensive gain (loss) (912 ) (22,338 ) (23,250 ) 17,782 2,579 20,361 Ending balance $ (42,434 ) $ (116,731 ) $ (159,165 ) $ (50,484 ) $ (109,660 ) $ (160,144 ) |
TRADE RECEIVABLES SECURITIZAT31
TRADE RECEIVABLES SECURITIZATION (Tables) | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Beginning balance $ 461,544 $ 537,619 $ 501,097 $ 600,672 Transfers of receivables 919,766 920,370 2,442,490 2,671,095 Collections (712,392 ) (923,294 ) (2,274,669 ) (2,737,072 ) Ending balance $ 668,918 $ 534,695 $ 668,918 $ 534,695 |
FAIR VALUE MEASUREMENT OF ASS32
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Dec. 31, 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 Nine-Month Periods Ended December 31, December 31, December 31, December 31, (In thousands) Beginning balance $ 75,614 $ 4,500 $ 73,423 $ 4,500 Additions to accrual — 81,000 — 81,000 Payments (40,555 ) — (42,776 ) — Fair value adjustments (6,997 ) 4,000 (2,585 ) 4,000 Ending balance $ 28,062 $ 89,500 $ 28,062 $ 89,500 |
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 December 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) $ — $ 751,027 $ — $ 751,027 Deferred purchase price receivable (Note 10) — — 668,918 668,918 Foreign exchange contracts (Note 8) — 27,935 — 27,935 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 6,686 50,522 — 57,208 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (22,928 ) $ — $ (22,928 ) Contingent consideration in connection with business acquisitions — — (28,062 ) (28,062 ) 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 10) — — 501,097 501,097 Foreign exchange contracts (Note 8) — 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 8) $ — $ (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 December 31, 2016 As of March 31, 2016 Carrying Fair Carrying Fair Fair Value (In thousands) Term Loan, including current portion, due in installments through March 2019 525,000 524,675 547,500 542,709 Level 1 4.625% Notes due February 2020 500,000 525,740 500,000 524,735 Level 1 Term Loan, including current portion, due in installments through November 2021 (1) 700,000 696,941 577,500 573,533 Level 1 5.000% Notes due February 2023 500,000 532,810 500,000 507,500 Level 1 4.750% Notes due June 2025 595,879 639,288 595,589 604,926 Level 1 Total $ 2,820,879 $ 2,919,454 $ 2,720,589 $ 2,753,403 (1) On November 30, 2016, the Company entered into a new arrangement to extend the maturity date of the agreement from August 30, 2018 to November 30, 2021. Refer to note 5 for further details of the arrangement. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by operating segment | Selected financial information by segment is as follows: Three-Month Periods Ended Nine-Month Periods Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Net sales: Communications & Enterprise Compute $ 2,102,321 $ 2,469,099 $ 6,400,233 $ 6,640,626 Consumer Technologies Group 1,848,970 2,057,850 4,827,488 5,633,903 Industrial & Emerging Industries 1,140,366 1,214,225 3,672,103 3,490,205 High Reliability Solutions 1,023,342 1,022,003 3,100,513 2,881,453 $ 6,114,999 $ 6,763,177 $ 18,000,337 $ 18,646,187 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 62,109 $ 75,578 $ 176,460 $ 198,400 Consumer Technologies Group 59,282 49,032 139,230 129,045 Industrial & Emerging Industries 39,681 49,230 127,020 110,498 High Reliability Solutions 82,729 82,806 249,972 213,890 Corporate and Other (20,695 ) (20,563 ) (82,395 ) (60,348 ) Total segment income 223,106 236,083 610,287 591,485 Reconciling items: Intangible amortization 18,734 19,319 62,318 43,117 Stock-based compensation 20,781 24,233 67,311 56,559 Inventory impairment and other (1) — — 92,915 — Restructuring (2) 17,421 — 28,960 — Other charges, net 3,090 44,415 15,007 46,257 Interest and other, net 22,838 21,566 71,869 60,106 Income before income taxes $ 140,242 $ 126,550 $ 271,907 $ 385,446 (1) During the fourth quarter of fiscal year 2016, the Company accepted the 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 second quarter of fiscal year 2017, prices for solar panel modules declined significantly. The Company determined that certain solar panel inventory on hand at the end of the second quarter of fiscal year 2017 was not fully recoverable and recorded a charge of $60.0 million to reduce the carrying costs to market in the nine-month period ended December 31, 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 period. The total charge of $92.9 million is included in cost of sales for the nine-month period ended December 31, 2016 but is excluded from segment results above. (2) During the second quarter of fiscal year 2017, the Company 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 S ketch-to-Scale tm initiatives. As part of this plan, approximately $29.0 million was recognized during the nine-month period ended December 31, 2016. |
SUPPLEMENTAL GUARANTOR AND NO34
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheets as of December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 943,807 $ 63,698 $ 849,591 $ — $ 1,857,096 Accounts receivable — 815,141 1,347,609 — 2,162,750 Inventories — 1,521,272 1,972,345 — 3,493,617 Inter company receivable 10,504,971 7,802,175 14,601,712 (32,908,858 ) — Other current assets 5,796 187,215 907,148 — 1,100,159 Total current assets 11,454,574 10,389,501 19,678,405 (32,908,858 ) 8,613,622 Property and equipment, net — 584,382 1,737,154 — 2,321,536 Goodwill and other intangible assets, net 1,214 85,894 1,250,213 — 1,337,321 Other assets 2,211,872 276,492 2,000,849 (3,958,643 ) 530,570 Investment in subsidiaries 2,562,818 3,456,295 17,947,038 (23,966,151 ) — Total assets $ 16,230,478 $ 14,792,564 $ 42,613,659 $ (60,833,652 ) $ 12,803,049 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 63,365 $ — $ 5,491 $ — $ 68,856 Accounts payable — 1,734,186 2,965,548 — 4,699,734 Accrued payroll — 99,464 258,458 — 357,922 Inter company payable 10,728,155 10,528,081 11,652,622 (32,908,858 ) — Other current liabilities 28,349 785,866 937,030 — 1,751,245 Total current liabilities 10,819,869 13,147,597 15,819,149 (32,908,858 ) 6,877,757 Long term liabilities 2,810,714 2,042,092 2,389,632 (3,958,643 ) 3,283,795 Flex Ltd. shareholders’ equity (deficit) 2,599,895 (397,125 ) 24,363,276 (23,966,151 ) 2,599,895 Noncontrolling interests — — 41,602 — 41,602 Total shareholders’ equity (deficit) 2,599,895 (397,125 ) 24,404,878 (23,966,151 ) 2,641,497 Total liabilities and shareholders’ equity $ 16,230,478 $ 14,792,564 $ 42,613,659 $ (60,833,652 ) $ 12,803,049 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 3,038,002 18,175,348 (24,028,776 ) — Total assets $ 14,908,294 $ 12,028,179 $ 40,610,340 $ (55,161,832 ) $ 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 (421,904 ) 24,450,680 (24,028,776 ) 2,570,872 Noncontrolling interests — — 34,658 — 34,658 Total shareholders’ equity (deficit) 2,570,872 (421,904 ) 24,485,338 (24,028,776 ) 2,605,530 Total liabilities and shareholders’ equity $ 14,908,294 $ 12,028,179 $ 40,610,340 $ (55,161,832 ) $ 12,384,981 |
Schedule of condensed consolidating statements of operations | Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 12,008,455 $ 13,981,899 $ (7,990,017 ) $ 18,000,337 Cost of sales — 10,822,629 14,031,584 (7,990,017 ) 16,864,196 Gross profit (loss) — 1,185,826 (49,685 ) — 1,136,141 Selling, general and administrative expenses — 212,059 502,981 — 715,040 Intangible amortization 175 2,298 59,845 — 62,318 Interest and other, net (561,290 ) 1,322,198 (674,032 ) — 86,876 Income (loss) from continuing operations before income taxes 561,115 (350,729 ) 61,521 — 271,907 Provision for (benefit from) income taxes 11 (947 ) 40,153 — 39,217 Equity in earnings in subsidiaries (328,414 ) (136,175 ) (69,935 ) 534,524 — Net income (loss) $ 232,690 $ (485,957 ) $ (48,567 ) $ 534,524 $ 232,690 Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 13,126,281 $ 15,168,232 $ (9,648,326 ) $ 18,646,187 Cost of sales — 11,972,388 15,120,401 (9,648,326 ) 17,444,463 Gross profit — 1,153,893 47,831 — 1,201,724 Selling, general and administrative expenses — 213,614 453,184 — 666,798 Intangible amortization 225 2,881 40,011 — 43,117 Interest and other, net (347,663 ) 929,730 (475,704 ) — 106,363 Income from continuing operations before income taxes 347,438 7,668 30,340 — 385,446 Provision for (benefit from) income taxes — (4,630 ) 7,339 — 2,709 Equity in earnings in subsidiaries 35,299 (140,241 ) 42,225 62,717 — Net income (loss) $ 382,737 $ (127,943 ) $ 65,226 $ 62,717 $ 382,737 Condensed Consolidating Statements of Operations for the Three -Month Period Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,186,855 $ 4,453,753 $ (2,525,609 ) $ 6,114,999 Cost of sales — 3,722,516 4,501,637 (2,525,609 ) 5,698,544 Gross profit (loss) — 464,339 (47,884 ) — 416,455 Selling, general and administrative expenses — 66,738 164,813 — 231,551 Intangible amortization 25 864 17,845 — 18,734 Interest and other, net (370,703 ) 662,422 (265,791 ) — 25,928 Income (loss) from continuing operations before income taxes 370,678 (265,685 ) 35,249 — 140,242 Provision for (benefit from) income taxes — (4,018 ) 14,791 — 10,773 Equity in earnings in subsidiaries (241,209 ) (71,920 ) 4,401 308,728 — Net income (loss) $ 129,469 $ (333,587 ) $ 24,859 $ 308,728 $ 129,469 Condensed Consolidating Statements of Operations for the Three -Month Period Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,597,684 $ 5,718,182 $ (3,552,689 ) $ 6,763,177 Cost of sales — 4,187,076 5,676,323 (3,552,689 ) 6,310,710 Gross profit — 410,608 41,859 — 452,467 Selling, general and administrative expenses — 83,346 157,271 — 240,617 Intangible amortization 75 960 18,284 — 19,319 Interest and other, net 49,358 316,345 (299,722 ) — 65,981 Income (loss) from continuing operations before income taxes (49,433 ) 9,957 166,026 — 126,550 Benefit from income taxes — (8,071 ) (14,289 ) — (22,360 ) Equity in earnings in subsidiaries 198,343 (88,988 ) (10,534 ) (98,821 ) — Net income (loss) $ 148,910 $ (70,960 ) $ 169,781 $ (98,821 ) $ 148,910 |
Schedule of condensed consolidating statements of comprehensive income (loss) | Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended December 31, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 129,469 $ (333,587 ) $ 24,859 $ 308,728 $ 129,469 Other comprehensive income: Foreign currency translation adjustments, net of zero tax (36,412 ) 58,791 35,660 (94,451 ) (36,412 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (201 ) 3,443 (201 ) (3,242 ) (201 ) Comprehensive income (loss) $ 92,856 $ (271,353 ) $ 60,318 $ 211,035 $ 92,856 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended December 31, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 148,910 $ (70,960 ) $ 169,781 $ (98,821 ) $ 148,910 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax 30,063 62,209 50,828 (113,037 ) 30,063 Unrealized gain on derivative instruments and other, net of zero tax 10,497 4,099 10,497 (14,596 ) 10,497 Comprehensive income (loss) $ 189,470 $ (4,652 ) $ 231,106 $ (226,454 ) $ 189,470 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2016 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 232,690 $ (485,957 ) $ (48,567 ) $ 534,524 $ 232,690 Other comprehensive income (loss): 0 Foreign currency translation adjustments, net of zero tax (22,338 ) 68,972 57,055 (126,027 ) (22,338 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (912 ) 6,942 (912 ) (6,030 ) (912 ) Comprehensive income (loss) $ 209,440 $ (410,043 ) $ 7,576 $ 402,467 $ 209,440 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 382,737 $ (127,943 ) $ 65,226 $ 62,717 $ 382,737 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax 2,579 5,025 (703 ) (4,322 ) 2,579 Unrealized gain on derivative instruments and other, net of zero tax 17,782 9,884 17,782 (27,666 ) 17,782 Comprehensive income (loss) $ 403,098 $ (113,034 ) $ 82,305 $ 30,729 $ 403,098 |
Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 520,709 $ (354,918 ) $ 847,430 $ (33 ) $ 1,013,188 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (134,755 ) (250,812 ) 27 (385,540 ) Acquisition of businesses, net of cash acquired — (73,469 ) (106,790 ) — (180,259 ) Proceeds from divestiture of businesses, net of cash held in divested businesses — 20,500 15,573 — 36,073 Investing cash flows to affiliates (840,082 ) (3,334,220 ) (532,400 ) 4,706,702 — Other investing activities, net (61,213 ) (7,823 ) 19,332 — (49,704 ) Net cash used in investing activities (901,295 ) (3,529,767 ) (855,097 ) 4,706,729 (579,430 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 204,916 — 602 — 205,518 Repayments of bank borrowings, long-term debt and capital lease obligations (106,547 ) (4,460 ) (4,082 ) — (115,089 ) Payments for repurchases of ordinary shares (259,658 ) — — — (259,658 ) Net proceeds from issuance of ordinary shares 11,978 — — — 11,978 Financing cash flows from affiliates 790,398 3,813,276 103,022 (4,706,696 ) — Other financing activities, net 30,000 (11,347 ) (65,955 ) — (47,302 ) Net cash provided by financing activities 671,087 3,797,469 33,587 (4,706,696 ) (204,553 ) Effect of exchange rates on cash and cash equivalents (81,563 ) 2,713 99,171 — 20,321 Net increase (decrease) in cash and cash equivalents 208,938 (84,503 ) 125,091 — 249,526 Cash and cash equivalents, beginning of period 734,869 148,201 724,500 — 1,607,570 Cash and cash equivalents, end of period $ 943,807 $ 63,698 $ 849,591 $ — $ 1,857,096 Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 343,182 $ (93,746 ) $ 690,336 $ — $ 939,772 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (128,011 ) (285,928 ) 5 (413,934 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — (809,233 ) (94,612 ) — (903,845 ) Proceeds from divestiture of business, net of cash held in divested business — — 3,603 — 3,603 Investing cash flows to affiliates (1,099,775 ) (923,812 ) (1,087,520 ) 3,111,107 — Other investing activities, net (2,046 ) (23,270 ) 26,713 — 1,397 Net cash used in investing activities (1,101,821 ) (1,884,326 ) (1,437,744 ) 3,111,112 (1,312,779 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 695,309 — 60,375 — 755,684 Repayments of bank borrowings, long-term debt and capital lease obligations (35,638 ) (1,333 ) (3,735 ) — (40,706 ) Payments for repurchases of ordinary shares (331,690 ) — — — (331,690 ) Net proceeds from issuance of ordinary shares 52,950 — — — 52,950 Financing cash flows from affiliates 632,750 1,996,352 482,010 (3,111,112 ) — Other financing activities, net — — (49,742 ) — (49,742 ) Net cash provided by financing activities 1,013,681 1,995,019 488,908 (3,111,112 ) 386,496 Effect of exchange rates on cash and cash equivalents 4,101 2,143 (13,947 ) — (7,703 ) Net decrease (increase) in cash and cash equivalents 259,143 19,090 (272,447 ) — 5,786 Cash and cash equivalents, beginning of period 608,971 168,272 851,165 — 1,628,408 Cash and cash equivalents, end of period $ 868,114 $ 187,362 $ 578,718 $ — $ 1,634,194 |
ORGANIZATION OF THE COMPANY A35
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Details) | 3 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Fiscal period duration | 92 days | 91 days | 92 days | 97 days | 91 days | 87 days |
BALANCE SHEET ITEMS - Inventor
BALANCE SHEET ITEMS - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Inventories | ||
Raw materials | $ 2,399,270 | $ 2,234,512 |
Work-in-progress | 436,289 | 561,282 |
Finished goods | 658,058 | 695,862 |
Inventories, total | $ 3,493,617 | $ 3,491,656 |
BALANCE SHEET ITEMS - Goodwill
BALANCE SHEET ITEMS - Goodwill and Other Intangible Assets (Details) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016USD ($)businesssegment | Mar. 31, 2016USD ($) | |
Goodwill [Line Items] | ||
Number of operating segments | segment | 4 | |
Activity in goodwill account | ||
Divestitures | $ (4,400) | |
Number of non-strategic business | business | 2 | |
Gross Carrying Amount | $ 534,731 | $ 508,099 |
Accumulated Amortization | (163,128) | (104,345) |
Net Carrying Amount | 371,603 | 403,754 |
Customer-related intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 254,991 | 223,046 |
Accumulated Amortization | (96,655) | (66,473) |
Net Carrying Amount | 158,336 | 156,573 |
Licenses and other intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 279,740 | 285,053 |
Accumulated Amortization | (66,473) | (37,872) |
Net Carrying Amount | 213,267 | $ 247,181 |
Operating Segments | ||
Activity in goodwill account | ||
Balance, beginning of the year | 942,066 | |
Additions | 57,518 | |
Divestitures | (4,427) | |
Purchase accounting adjustments | 794 | |
Foreign currency translation adjustments | (30,233) | |
Balance, end of the period | 965,718 | |
Operating Segments | HRS | ||
Activity in goodwill account | ||
Balance, beginning of the year | 439,336 | |
Additions | 0 | |
Divestitures | (1,787) | |
Purchase accounting adjustments | 794 | |
Foreign currency translation adjustments | (30,233) | |
Balance, end of the period | $ 408,110 | |
Number of non-strategic business | business | 2 | |
Operating Segments | CTG | ||
Activity in goodwill account | ||
Balance, beginning of the year | $ 68,234 | |
Additions | 39,791 | |
Divestitures | 0 | |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 108,025 | |
Operating Segments | IEI | ||
Activity in goodwill account | ||
Balance, beginning of the year | 322,803 | |
Additions | 17,727 | |
Divestitures | (2,640) | |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 337,890 | |
Operating Segments | CEC | ||
Activity in goodwill account | ||
Balance, beginning of the year | 111,693 | |
Additions | 0 | |
Divestitures | 0 | |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 111,693 | |
Mirror Controls International | Operating Segments | HRS | ||
Activity in goodwill account | ||
Foreign currency translation adjustments | $ 30,200 |
BALANCE SHEET ITEMS - Future A
BALANCE SHEET ITEMS - Future Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Estimated future annual amortization expense for acquired intangible assets | ||
2,017 | $ 17,977 | |
2,018 | 66,810 | |
2,019 | 60,038 | |
2,020 | 51,054 | |
2,021 | 46,953 | |
Thereafter | 128,771 | |
Net Carrying Amount | $ 371,603 | $ 403,754 |
BALANCE SHEET ITEMS - Addition
BALANCE SHEET ITEMS - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($)business | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 25, 2015USD ($) | 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 | $ 83,600 | ||||||
Customer working capital advances | $ 228,000 | $ 228,000 | 253,700 | ||||
Customer related accruals | 494,500 | 494,500 | 479,500 | ||||
Deferred revenue | 311,300 | 311,300 | 332,300 | ||||
Other current liability for purchase of assets on behalf of customer financed by a third party banking institution | 122,000 | ||||||
Customer-related third party banking institution financing net settlement | 90,600 | 90,576 | $ 0 | ||||
Asset-Backed Securitization Programs | |||||||
Components of acquired intangible assets | |||||||
Transferor's interests in transferred financial assets, fair value | 668,918 | $ 668,918 | $ 534,695 | $ 461,544 | $ 501,097 | $ 537,619 | $ 600,672 |
YTWO Formative Joint Venture [Member] | RIB Software AG | |||||||
Components of acquired intangible assets | |||||||
Payments to acquire interest in joint venture | $ 60,000 |
SHARE-BASED COMPENSATION - Loc
SHARE-BASED COMPENSATION - Location of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation | ||||
Share-based compensation expense | $ 20,781 | $ 24,233 | $ 67,311 | $ 56,559 |
Cost of sales | ||||
Share-based compensation | ||||
Share-based compensation expense | 2,437 | 2,407 | 7,506 | 6,440 |
Selling, general and administrative expenses | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 18,344 | $ 21,826 | $ 59,805 | $ 50,119 |
SHARE-BASED COMPENSATION - Ad
SHARE-BASED COMPENSATION - Additional Information (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Dec. 31, 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 | $ 8.97 |
Weighted average exercise price of exercisable shares (usd per share) | $ / shares | $ 8.93 |
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) | 6,300,000 |
Number of shares outstanding (shares) | 15,800,000 |
Unrecognized compensation expense | $ | $ 139.2 |
Share weighted-average remaining vesting period | 2 years 7 months 6 days |
2010 Equity Incentive Plan | Restricted Stock Units | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 5,400,000 |
Average grant date price of unvested share bonus awards (usd per share) | $ / shares | $ 12.93 |
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | |
Share-based compensation | |
Number of shares outstanding (shares) | 2,300,000 |
Unrecognized compensation expense | $ | $ 22.6 |
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) | 1,600,000 |
Unrecognized compensation expense | $ | $ 10.7 |
Share weighted-average remaining vesting period | 1 year 9 months 18 days |
Options granted in period (shares) | 0 |
2014 NEXTracker Equity Incentive Plan | Share options | |
Share-based compensation | |
Share options outstanding (shares) | 1,800,000 |
Options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 3.54 |
Weighted average exercise price of exercisable shares (usd per share) | $ / shares | $ 4.48 |
Share weighted-average remaining vesting period | 2 years 1 month 6 days |
Options exercisable (shares) | 400,000 |
Compensation not yet recognized | $ | $ 9.2 |
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 4 months 24 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 | $ | $ 1.5 |
EARNINGS PER SHARE - Calculati
EARNINGS PER SHARE - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share: | ||||
Net income | $ 129,469 | $ 148,910 | $ 232,690 | $ 382,737 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 539,638 | 554,919 | 542,780 | 561,070 |
Basic earnings per share (in dollars per share) | $ 0.24 | $ 0.27 | $ 0.43 | $ 0.68 |
Diluted earnings per share: | ||||
Net income | $ 129,469 | $ 148,910 | $ 232,690 | $ 382,737 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 539,638 | 554,919 | 542,780 | 561,070 |
Weighted-average ordinary share equivalents from stock options and awards (in shares) | 5,384 | 6,077 | 5,592 | 7,856 |
Weighted-average ordinary shares and ordinary share equivalents outstanding (in shares) | 545,022 | 560,996 | 548,372 | 568,926 |
Diluted earnings per share (in dollars per share) | $ 0.24 | $ 0.27 | $ 0.42 | $ 0.67 |
EARNINGS PER SHARE - Additiona
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
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) | 0.5 | 2.1 | 0.7 | 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) | 0.1 | 3.5 |
BANK BORROWINGS AND LONG TERM44
BANK BORROWINGS AND LONG TERM DEBT - Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,883,327 | |
Debt issuance costs | (16,487) | $ (17,351) |
Total | 2,866,840 | 2,774,555 |
Term Loan, including current portion, due in installments through March 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 525,000 | 547,500 |
4.625% Notes due February 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500,000 | $ 500,000 |
Debt instrument interest rate (as a percent) | 4.625% | 4.625% |
Term Loan, including current portion, due in installments through November 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 700,000 | $ 577,500 |
5.000% Notes due February 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500,000 | $ 500,000 |
Debt instrument interest rate (as a percent) | 5.00% | 5.00% |
4.750% Notes due June 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 595,879 | $ 595,589 |
Debt instrument interest rate (as a percent) | 4.75% | 4.75% |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 62,448 | $ 71,317 |
BANK BORROWINGS AND LONG TERM45
BANK BORROWINGS AND LONG TERM DEBT - Repayment of Long-term Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 11,579 |
2,018 | 58,504 |
2,019 | 486,317 |
2,020 | 517,567 |
2,021 | 64,648 |
Thereafter | 1,744,712 |
Total | $ 2,883,327 |
BANK BORROWINGS AND LONG TERM46
BANK BORROWINGS AND LONG TERM DEBT - Additional Information (Details) $ in Thousands, € in Millions | Jan. 23, 2017EUR (€) | Nov. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2016 | Aug. 30, 2013USD ($) |
Debt Instrument [Line Items] | ||||||
Long-term debt, weighted average interest rate | 3.50% | 3.50% | ||||
Incremental amount borrowed | $ 205,518 | $ 755,684 | ||||
Term Loan, including current portion, due in installments through November 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Loans payable | $ 600,000 | |||||
Term Loan, including current portion, due in installments through November 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Loans payable | 700,000 | |||||
Incremental amount borrowed | $ 130,000 | |||||
Quarterly payment | $ 4,100 | |||||
LIBOR | Term Loan, including current portion, due in installments through November 2021 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.125% | |||||
LIBOR | Term Loan, including current portion, due in installments through November 2021 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.125% | |||||
Federal Funds Rate | Term Loan, including current portion, due in installments through November 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
One-Month LIBOR | Term Loan, including current portion, due in installments through November 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Prime Rate | Term Loan, including current portion, due in installments through November 2021 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.125% | |||||
Prime Rate | Term Loan, including current portion, due in installments through November 2021 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.125% | |||||
Unsecured Debt | Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 105,400 | |||||
Unsecured Debt | Subsequent Event | Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | € | € 100 | |||||
Term of debt instrument | 5 years |
INTEREST AND OTHER, NET (Detail
INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
INTEREST AND OTHER, NET | ||||
Interest expense | $ 26.6 | $ 26.2 | $ 79.9 | $ 71.4 |
OTHER CHARGES, NET (Details)
OTHER CHARGES, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supply Commitment [Line Items] | ||||
Other charges (income), net | $ 3,090 | $ 44,415 | $ 15,007 | $ 46,257 |
Western Europe | Certain manufacturing facilities | ||||
Supply Commitment [Line Items] | ||||
Recognized loss in connection with disposition of a manufacturing facility | 26,800 | 26,800 | ||
Non-Cash foreign currency translation loss | 25,300 | 25,300 | ||
Impairment losses on investments | 21,800 | |||
Foreign currency transaction gain | $ 4,200 | $ 4,200 |
FINANCIAL INSTRUMENTS - Notion
FINANCIAL INSTRUMENTS - Notional Amount (Details) - 9 months ended Dec. 31, 2016 € in Thousands, ₪ in Thousands, ₨ in Thousands, ¥ in Thousands, £ in Thousands, SGD in Thousands, RON in Thousands, PLN in Thousands, MYR in Thousands, MXN in Thousands, HUF in Thousands, DKK in Thousands, BRL in Thousands, $ in Thousands | USD ($) | RON | GBP (£) | DKK | INR (₨) | ILS (₪) | BRL | PLN | MXN | SGD | MYR | HUF | EUR (€) | USD ($) | CNY (¥) |
Notional amount | |||||||||||||||
Deferred losses | $ 3,600 | ||||||||||||||
Forward and Swap Contracts | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | $ 4,800,000 | ||||||||||||||
Forward and Swap Contracts | Buy | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 2,514,259 | ||||||||||||||
Forward and Swap Contracts | Sell | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 2,327,921 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 454,903 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 148,969 | ¥ 1,037,000 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | € 36,268 | 37,693 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | HUF 16,053,300 | 54,006 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | ₪ 86,441 | 22,413 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | ₨ 1,314,549 | 19,100 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | MXN 1,775,000 | 85,636 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | MYR 139,000 | 31,013 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | RON | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | RON 95,661 | 21,901 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 34,172 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 78,277 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 56,358 | 64,046 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 9,000 | 2,008 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | RON | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | RON 0 | 0 | |||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 12,223 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 2,059,356 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | BRL | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | BRL 0 | 0 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 620,177 | 4,319,620 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | DKK | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | DKK 187,400 | 26,201 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 874,957 | 913,218 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | GBP | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | £ 35,110 | 42,969 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 29,285,732 | 98,522 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 62,640 | 16,241 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 4,040,788 | 59,242 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 1,718,039 | 82,888 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 383,028 | 85,459 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | PLN | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | PLN 122,243 | 28,864 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | SGD | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | SGD 44,800 | 30,846 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 54,729 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 2,249,644 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | BRL | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | BRL 443,000 | 134,946 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | CNY | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | 292,391 | ¥ 2,035,392 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | DKK | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | DKK 157,200 | 21,979 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | EUR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | € 1,385,620 | 1,444,927 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | GBP | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | £ 65,145 | 79,940 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | HUF | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | HUF 24,552,611 | 82,599 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | ILS | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | ₪ 59,420 | 15,407 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | INR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | ₨ 677,800 | 10,000 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | MXN | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | MXN 1,155,529 | 55,749 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | MYR | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | MYR 89,800 | 20,036 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | PLN | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | PLN 70,681 | 16,689 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | SGD | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | SGD 11,150 | 7,677 | |||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | Other | |||||||||||||||
Notional amount | |||||||||||||||
Notional contract value | $ 67,304 |
FINANCIAL INSTRUMENTS - Foreig
FINANCIAL INSTRUMENTS - Foreign Currency Risk Management (Details) - Foreign currency contracts - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Other current assets | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | $ 7,681 | $ 5,510 |
Other current assets | Economic hedges | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | 20,254 | 17,138 |
Other current liabilities | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | 9,933 | 2,446 |
Other current liabilities | Economic hedges | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | $ 12,995 | $ 18,645 |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (122,552) | $ (200,704) | $ (135,915) | $ (180,505) |
Other comprehensive gain (loss) before reclassifications | (35,124) | 15,165 | (20,502) | (26,890) |
Net (gains) losses reclassified from accumulated other comprehensive loss | (1,489) | 25,395 | (2,748) | 47,251 |
Net current-period other comprehensive gain (loss) | (36,613) | 40,560 | (23,250) | 20,361 |
Ending balance | (159,165) | (160,144) | (159,165) | (160,144) |
Unrealized loss on derivative instruments and other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (42,233) | (60,981) | (41,522) | (68,266) |
Other comprehensive gain (loss) before reclassifications | (1,354) | 5,941 | (1,031) | (8,478) |
Net (gains) losses reclassified from accumulated other comprehensive loss | 1,153 | 4,556 | 119 | 26,260 |
Net current-period other comprehensive gain (loss) | (201) | 10,497 | (912) | 17,782 |
Ending balance | (42,434) | (50,484) | (42,434) | (50,484) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (80,319) | (139,723) | (94,393) | (112,239) |
Other comprehensive gain (loss) before reclassifications | (33,770) | 9,224 | (19,471) | (18,412) |
Net (gains) losses reclassified from accumulated other comprehensive loss | (2,642) | 20,839 | (2,867) | 20,991 |
Net current-period other comprehensive gain (loss) | (36,412) | 30,063 | (22,338) | 2,579 |
Ending balance | $ (116,731) | $ (109,660) | $ (116,731) | $ (109,660) |
ACCUMULATED OTHER COMPREHENSI52
ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
Unrealized gain (loss) on derivative instruments and other | Reclassification out of accumulated other comprehensive income | ||
Reclassification | ||
Cost of sales | $ 24.7 | |
Western Europe | Certain manufacturing facilities | ||
Reclassification | ||
Recognized loss in connection with disposition of a manufacturing facility | $ 26.8 | 26.8 |
Non-Cash foreign currency translation loss | 25.3 | 25.3 |
Foreign currency transaction gain | $ 4.2 | $ 4.2 |
TRADE RECEIVABLES SECURITIZAT53
TRADE RECEIVABLES SECURITIZATION (Details) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)program | Dec. 31, 2015USD ($) | 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 | 1,700,000,000 | $ 1,700,000,000 | $ 1,400,000,000 | ||
Amount received from accounts receivable sold to third-party | 1,000,000,000 | 1,000,000,000 | 880,800,000 | ||
Cash proceeds from sale of accounts receivable | 4,200,000,000 | 3,900,000,000 | |||
Cash flows from new transfers of receivables | 315,100,000 | 355,100,000 | |||
Activity in the deferred purchase price receivables account | |||||
Beginning balance | 461,544,000 | 537,619,000 | 501,097,000 | 600,672,000 | |
Transfers of receivables | 919,766,000 | 920,370,000 | 2,442,490,000 | 2,671,095,000 | |
Collections | (712,392,000) | (923,294,000) | (2,274,669,000) | (2,737,072,000) | |
Ending balance | $ 668,918,000 | 534,695,000 | $ 668,918,000 | 534,695,000 | |
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 | $ 850,000,000 | $ 850,000,000 | |||
Global Program | Committed | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 750,000,000 | 750,000,000 | |||
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 | 250,000,000 | 250,000,000 | |||
North American Program | Committed | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 210,000,000 | 210,000,000 | |||
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 | 1,000,000,000 | $ 1,800,000,000 | 1,000,000,000 | $ 1,800,000,000 | |
Activity in the deferred purchase price receivables account | |||||
Receivables sold but not yet collected from banking institutions | $ 209,500,000 | $ 209,500,000 | $ 339,100,000 |
FAIR VALUE MEASUREMENT OF ASS54
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 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 ASS55
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Contingent Consideration Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contingent Consideration Liability [Roll Forward] | ||||
Beginning balance | $ 75,614 | $ 4,500 | $ 73,423 | $ 4,500 |
Additions to accrual | 0 | 81,000 | 0 | 81,000 |
Payments | (40,555) | 0 | (42,776) | 0 |
Fair value adjustments | (6,997) | 4,000 | (2,585) | 4,000 |
Ending balance | $ 28,062 | 89,500 | $ 28,062 | $ 89,500 |
Nextracker | ||||
Contingent Consideration Liability [Roll Forward] | ||||
Additions to accrual | $ 81,000 |
FAIR VALUE MEASUREMENT OF ASS56
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Assets and Liabilities Measured at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 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 | $ 751,027 | $ 1,074,132 |
Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 668,918 | 501,097 |
Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 27,935 | 22,648 |
Total Liabilities | (22,928) | (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 | 57,208 | 49,784 |
Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | (28,062) | (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 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 1 | Foreign exchange contracts (Note 8) | ||
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 | 6,686 | 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 | 751,027 | 1,074,132 |
Level 2 | Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 2 | Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 27,935 | 22,648 |
Total Liabilities | (22,928) | (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 | 50,522 | 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 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 668,918 | 501,097 |
Level 3 | Foreign exchange contracts (Note 8) | ||
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 | $ (28,062) | $ (73,423) |
FAIR VALUE MEASUREMENT OF ASS57
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Debt Not Carried at Fair Value (Details) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | |
4.625% Notes due February 2020 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 4.625% | 4.625% | 4.625% |
5.000% Notes due February 2023 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 5.00% | 5.00% | 5.00% |
4.750% Notes due June 2025 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 4.75% | 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% | 4.625% |
Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Debt instrument interest rate (as a percent) | 5.00% | 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% | 4.75% |
Carrying Amount | |||
Other financial instruments | |||
Fair Value | $ 2,820,879 | $ 2,720,589 | |
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 | Term Loan, including current portion, due in installments through November 2021 | |||
Other financial instruments | |||
Fair Value | 700,000 | 577,500 | |
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 | 595,879 | 595,589 | |
Fair Value | |||
Other financial instruments | |||
Fair Value | 2,919,454 | 2,753,403 | |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through March 2019 | |||
Other financial instruments | |||
Fair Value | 524,675 | 542,709 | |
Fair Value | Level 1 | 4.625% Notes due February 2020 | |||
Other financial instruments | |||
Fair Value | 525,740 | 524,735 | |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through November 2021 | |||
Other financial instruments | |||
Fair Value | 696,941 | 573,533 | |
Fair Value | Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Fair Value | 532,810 | 507,500 | |
Fair Value | Level 1 | 4.750% Notes due June 2025 | |||
Other financial instruments | |||
Fair Value | 639,288 | $ 604,926 | |
Mirror Controls International | |||
Other financial instruments | |||
Debt instrument, face amount | € 49,700,000 | $ 52,300 | |
Term of debt instrument | 5 years |
BUSINESS AND ASSET ACQUISITIO58
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)acquisitionbusiness | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | ||||
Number of acquisitions completed | business | 3 | |||
Acquisition of businesses, net of cash acquired | $ 180,259 | $ 903,845 | ||
Net income | $ 129,469 | $ 148,910 | $ 232,690 | 382,737 |
Pro forma net income | 111,400 | 322,000 | ||
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 | $ 161,900 | |||
Cash acquired from acquisitions | 17,800 | |||
Inventory | 69,800 | 69,800 | ||
Property and equipment | 66,000 | 66,000 | ||
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 | $ 179,700 | |||
Goodwill | 57,500 | 57,500 | ||
Intangible assets | 44,900 | 44,900 | ||
Assumed liabilities | $ 60,800 | $ 60,800 | ||
Net income | $ 29,500 | $ 34,400 | ||
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) BRL in Millions, $ in Millions | Dec. 31, 2016USD ($) | Mar. 31, 2016BRL | Dec. 31, 2013BRL | Dec. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016tax_assessment |
Loss Contingencies [Line Items] | ||||||
Income tax examination, number of tax assessments | tax_assessment | 2 | |||||
BRAZIL | Assessment of Sales and Import Taxes | ||||||
Loss Contingencies [Line Items] | ||||||
Income tax examination, estimate of possible loss | $ 34 | BRL 109 | ||||
BRAZIL | Proposed Additional Assessment of Sales and Import Taxes | ||||||
Loss Contingencies [Line Items] | ||||||
Income tax examination, estimate of possible loss | $ 56 | BRL 181 | ||||
Income and Social Contribution Taxes, Interest and Penalties | BRAZIL | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of assessment related to income and social contribution taxes interest and penalties received | $ 100 | |||||
Loss contingency accrual adjustment | $ 0 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2016 | Aug. 24, 2016 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||
Aggregate shares repurchased (in shares) | 5.2 | 19.5 | |
Aggregate purchase value of shares repurchased | $ 75,000,000 | $ 255,900,000 | |
Authorized amount of stock repurchase program | $ 500,000,000 | ||
Amount remaining to be repurchased under the plans | $ 375,200,000 | $ 375,200,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 4 | |||||
Net sales | $ 6,114,999 | $ 6,763,177 | $ 18,000,337 | $ 18,646,187 | ||
Intangible amortization | 18,734 | 19,319 | 62,318 | 43,117 | ||
Stock-based compensation | 20,781 | 24,233 | 67,311 | 56,559 | ||
Inventory impairment and other | 0 | 0 | 92,915 | 0 | ||
Restructuring | 17,421 | 0 | 28,960 | 0 | ||
Other charges, net | 3,090 | 44,415 | 15,007 | 46,257 | ||
Interest and other, net | 22,838 | 21,566 | 71,869 | 60,106 | ||
Income before income taxes | 140,242 | 126,550 | 271,907 | 385,446 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 6,114,999 | 6,763,177 | 18,000,337 | 18,646,187 | ||
Total segment income | 223,106 | 236,083 | 610,287 | 591,485 | ||
Operating Segments | CEC | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 2,102,321 | 2,469,099 | 6,400,233 | 6,640,626 | ||
Total segment income | 62,109 | 75,578 | 176,460 | 198,400 | ||
Operating Segments | Consumer Technologies Group | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,848,970 | 2,057,850 | 4,827,488 | 5,633,903 | ||
Total segment income | 59,282 | 49,032 | 139,230 | 129,045 | ||
Operating Segments | Industrial & Emerging Industries | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,140,366 | 1,214,225 | 3,672,103 | 3,490,205 | ||
Total segment income | 39,681 | 49,230 | 127,020 | 110,498 | ||
Operating Segments | High Reliability Solutions | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,023,342 | 1,022,003 | 3,100,513 | 2,881,453 | ||
Total segment income | 82,729 | 82,806 | 249,972 | 213,890 | ||
Operating Segments | Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Total segment income | (20,695) | $ (20,563) | (82,395) | $ (60,348) | ||
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 NO62
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) $ in Millions | 9 Months Ended |
Dec. 31, 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 NO63
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 1,857,096 | $ 1,607,570 | $ 1,634,194 | $ 1,628,408 |
Accounts receivable | 2,162,750 | 2,044,757 | ||
Inventories | 3,493,617 | 3,491,656 | ||
Inter company receivable | 0 | 0 | ||
Other current assets | 1,100,159 | 1,171,143 | ||
Total current assets | 8,613,622 | 8,315,126 | ||
Property and equipment, net | 2,321,536 | 2,257,633 | ||
Goodwill and other intangible assets, net | 1,337,321 | 1,345,820 | ||
Other assets | 530,570 | 466,402 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 12,803,049 | 12,384,981 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 68,856 | 65,166 | ||
Accounts payable | 4,699,734 | 4,248,292 | ||
Accrued payroll | 357,922 | 353,547 | ||
Inter company payable | 0 | 0 | ||
Other current liabilities | 1,751,245 | 1,905,200 | ||
Total current liabilities | 6,877,757 | 6,572,205 | ||
Long term liabilities | 3,283,795 | 3,207,246 | ||
Flex Ltd. shareholders’ equity (deficit) | 2,599,895 | 2,570,872 | ||
Noncontrolling interests | 41,602 | 34,658 | ||
Total shareholders’ equity | 2,641,497 | 2,605,530 | ||
Total liabilities and shareholders’ equity | 12,803,049 | 12,384,981 | ||
Reportable legal entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 943,807 | 734,869 | 868,114 | 608,971 |
Accounts receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Inter company receivable | 10,504,971 | 9,105,728 | ||
Other current assets | 5,796 | 2,951 | ||
Total current assets | 11,454,574 | 9,843,548 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 1,214 | 175 | ||
Other assets | 2,211,872 | 2,249,145 | ||
Investment in subsidiaries | 2,562,818 | 2,815,426 | ||
Total assets | 16,230,478 | 14,908,294 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 63,365 | 58,836 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll | 0 | 0 | ||
Inter company payable | 10,728,155 | 9,562,405 | ||
Other current liabilities | 28,349 | 33,008 | ||
Total current liabilities | 10,819,869 | 9,654,249 | ||
Long term liabilities | 2,810,714 | 2,683,173 | ||
Flex Ltd. shareholders’ equity (deficit) | 2,599,895 | 2,570,872 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 2,599,895 | 2,570,872 | ||
Total liabilities and shareholders’ equity | 16,230,478 | 14,908,294 | ||
Reportable legal entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 63,698 | 148,201 | 187,362 | 168,272 |
Accounts receivable | 815,141 | 729,331 | ||
Inventories | 1,521,272 | 1,482,410 | ||
Inter company receivable | 7,802,175 | 5,568,392 | ||
Other current assets | 187,215 | 180,842 | ||
Total current assets | 10,389,501 | 8,109,176 | ||
Property and equipment, net | 584,382 | 553,072 | ||
Goodwill and other intangible assets, net | 85,894 | 60,895 | ||
Other assets | 276,492 | 267,034 | ||
Investment in subsidiaries | 3,456,295 | 3,038,002 | ||
Total assets | 14,792,564 | 12,028,179 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 0 | 946 | ||
Accounts payable | 1,734,186 | 1,401,835 | ||
Accrued payroll | 99,464 | 114,509 | ||
Inter company payable | 10,528,081 | 7,999,335 | ||
Other current liabilities | 785,866 | 869,470 | ||
Total current liabilities | 13,147,597 | 10,386,095 | ||
Long term liabilities | 2,042,092 | 2,063,988 | ||
Flex Ltd. shareholders’ equity (deficit) | (397,125) | (421,904) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (397,125) | (421,904) | ||
Total liabilities and shareholders’ equity | 14,792,564 | 12,028,179 | ||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 849,591 | 724,500 | 578,718 | 851,165 |
Accounts receivable | 1,347,609 | 1,315,426 | ||
Inventories | 1,972,345 | 2,009,246 | ||
Inter company receivable | 14,601,712 | 12,404,722 | ||
Other current assets | 907,148 | 987,350 | ||
Total current assets | 19,678,405 | 17,441,244 | ||
Property and equipment, net | 1,737,154 | 1,704,561 | ||
Goodwill and other intangible assets, net | 1,250,213 | 1,284,750 | ||
Other assets | 2,000,849 | 2,004,437 | ||
Investment in subsidiaries | 17,947,038 | 18,175,348 | ||
Total assets | 42,613,659 | 40,610,340 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 5,491 | 5,384 | ||
Accounts payable | 2,965,548 | 2,846,457 | ||
Accrued payroll | 258,458 | 239,038 | ||
Inter company payable | 11,652,622 | 9,517,102 | ||
Other current liabilities | 937,030 | 1,002,722 | ||
Total current liabilities | 15,819,149 | 13,610,703 | ||
Long term liabilities | 2,389,632 | 2,514,299 | ||
Flex Ltd. shareholders’ equity (deficit) | 24,363,276 | 24,450,680 | ||
Noncontrolling interests | 41,602 | 34,658 | ||
Total shareholders’ equity | 24,404,878 | 24,485,338 | ||
Total liabilities and shareholders’ equity | 42,613,659 | 40,610,340 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Inter company receivable | (32,908,858) | (27,078,842) | ||
Other current assets | 0 | 0 | ||
Total current assets | (32,908,858) | (27,078,842) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other assets | (3,958,643) | (4,054,214) | ||
Investment in subsidiaries | (23,966,151) | (24,028,776) | ||
Total assets | (60,833,652) | (55,161,832) | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll | 0 | 0 | ||
Inter company payable | (32,908,858) | (27,078,842) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (32,908,858) | (27,078,842) | ||
Long term liabilities | (3,958,643) | (4,054,214) | ||
Flex Ltd. shareholders’ equity (deficit) | (23,966,151) | (24,028,776) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (23,966,151) | (24,028,776) | ||
Total liabilities and shareholders’ equity | $ (60,833,652) | $ (55,161,832) |
SUPPLEMENTAL GUARANTOR AND NO64
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed consolidating statements of operations | ||||
Net sales | $ 6,114,999 | $ 6,763,177 | $ 18,000,337 | $ 18,646,187 |
Cost of sales | 5,698,544 | 6,310,710 | 16,864,196 | 17,444,463 |
Gross profit | 416,455 | 452,467 | 1,136,141 | 1,201,724 |
Selling, general and administrative expenses | 231,551 | 240,617 | 715,040 | 666,798 |
Intangible amortization | 18,734 | 19,319 | 62,318 | 43,117 |
Interest and other, net | 25,928 | 65,981 | 86,876 | 106,363 |
Income before income taxes | 140,242 | 126,550 | 271,907 | 385,446 |
Provision for (benefit from) income taxes | 10,773 | (22,360) | 39,217 | 2,709 |
Equity in earnings in subsidiaries | 0 | 0 | 0 | 0 |
Net income | 129,469 | 148,910 | 232,690 | 382,737 |
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 | 25 | 75 | 175 | 225 |
Interest and other, net | (370,703) | 49,358 | (561,290) | (347,663) |
Income before income taxes | 370,678 | (49,433) | 561,115 | 347,438 |
Provision for (benefit from) income taxes | 0 | 0 | 11 | 0 |
Equity in earnings in subsidiaries | (241,209) | 198,343 | (328,414) | 35,299 |
Net income | 129,469 | 148,910 | 232,690 | 382,737 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed consolidating statements of operations | ||||
Net sales | 4,186,855 | 4,597,684 | 12,008,455 | 13,126,281 |
Cost of sales | 3,722,516 | 4,187,076 | 10,822,629 | 11,972,388 |
Gross profit | 464,339 | 410,608 | 1,185,826 | 1,153,893 |
Selling, general and administrative expenses | 66,738 | 83,346 | 212,059 | 213,614 |
Intangible amortization | 864 | 960 | 2,298 | 2,881 |
Interest and other, net | 662,422 | 316,345 | 1,322,198 | 929,730 |
Income before income taxes | (265,685) | 9,957 | (350,729) | 7,668 |
Provision for (benefit from) income taxes | (4,018) | (8,071) | (947) | (4,630) |
Equity in earnings in subsidiaries | (71,920) | (88,988) | (136,175) | (140,241) |
Net income | (333,587) | (70,960) | (485,957) | (127,943) |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed consolidating statements of operations | ||||
Net sales | 4,453,753 | 5,718,182 | 13,981,899 | 15,168,232 |
Cost of sales | 4,501,637 | 5,676,323 | 14,031,584 | 15,120,401 |
Gross profit | (47,884) | 41,859 | (49,685) | 47,831 |
Selling, general and administrative expenses | 164,813 | 157,271 | 502,981 | 453,184 |
Intangible amortization | 17,845 | 18,284 | 59,845 | 40,011 |
Interest and other, net | (265,791) | (299,722) | (674,032) | (475,704) |
Income before income taxes | 35,249 | 166,026 | 61,521 | 30,340 |
Provision for (benefit from) income taxes | 14,791 | (14,289) | 40,153 | 7,339 |
Equity in earnings in subsidiaries | 4,401 | (10,534) | (69,935) | 42,225 |
Net income | 24,859 | 169,781 | (48,567) | 65,226 |
Eliminations | ||||
Condensed consolidating statements of operations | ||||
Net sales | (2,525,609) | (3,552,689) | (7,990,017) | (9,648,326) |
Cost of sales | (2,525,609) | (3,552,689) | (7,990,017) | (9,648,326) |
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 (benefit from) income taxes | 0 | 0 | 0 | 0 |
Equity in earnings in subsidiaries | 308,728 | (98,821) | 534,524 | 62,717 |
Net income | $ 308,728 | $ (98,821) | $ 534,524 | $ 62,717 |
SUPPLEMENTAL GUARANTOR AND NO65
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income | $ 129,469 | $ 148,910 | $ 232,690 | $ 382,737 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (36,412) | 30,063 | (22,338) | 2,579 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (201) | 10,497 | (912) | 17,782 |
Comprehensive income | 92,856 | 189,470 | 209,440 | 403,098 |
Reportable legal entities | Parent | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income | 129,469 | 148,910 | 232,690 | 382,737 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (36,412) | 30,063 | (22,338) | 2,579 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (201) | 10,497 | (912) | 17,782 |
Comprehensive income | 92,856 | 189,470 | 209,440 | 403,098 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income | (333,587) | (70,960) | (485,957) | (127,943) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 58,791 | 62,209 | 68,972 | 5,025 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | 3,443 | 4,099 | 6,942 | 9,884 |
Comprehensive income | (271,353) | (4,652) | (410,043) | (113,034) |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income | 24,859 | 169,781 | (48,567) | 65,226 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 35,660 | 50,828 | 57,055 | (703) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (201) | 10,497 | (912) | 17,782 |
Comprehensive income | 60,318 | 231,106 | 7,576 | 82,305 |
Eliminations | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income | 308,728 | (98,821) | 534,524 | 62,717 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (94,451) | (113,037) | (126,027) | (4,322) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (3,242) | (14,596) | (6,030) | (27,666) |
Comprehensive income | $ 211,035 | $ (226,454) | $ 402,467 | $ 30,729 |
SUPPLEMENTAL GUARANTOR AND NO66
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | $ 1,013,188 | $ 939,772 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (385,540) | (413,934) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (180,259) | (903,845) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 36,073 | 3,603 |
Investing cash flows to affiliates | 0 | 0 |
Other investing activities, net | (49,704) | 1,397 |
Net cash used in investing activities | (579,430) | (1,312,779) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 205,518 | 755,684 |
Repayments of bank borrowings and long-term debt | (115,089) | (40,706) |
Payments for repurchases of ordinary shares | (259,658) | (331,690) |
Net proceeds from issuance of ordinary shares | 11,978 | 52,950 |
Financing cash flows from affiliates | 0 | 0 |
Other financing activities, net | (47,302) | (49,742) |
Net cash (used in) provided by financing activities | (204,553) | 386,496 |
Effect of exchange rates on cash and cash equivalents | 20,321 | (7,703) |
Net increase in cash and cash equivalents | 249,526 | 5,786 |
Cash and cash equivalents, beginning of period | 1,607,570 | 1,628,408 |
Cash and cash equivalents, end of period | 1,857,096 | 1,634,194 |
Reportable legal entities | Parent | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 520,709 | 343,182 |
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 | 0 |
Investing cash flows to affiliates | (840,082) | (1,099,775) |
Other investing activities, net | (61,213) | (2,046) |
Net cash used in investing activities | (901,295) | (1,101,821) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 204,916 | 695,309 |
Repayments of bank borrowings and long-term debt | (106,547) | (35,638) |
Payments for repurchases of ordinary shares | (259,658) | (331,690) |
Net proceeds from issuance of ordinary shares | 11,978 | 52,950 |
Financing cash flows from affiliates | 790,398 | 632,750 |
Other financing activities, net | 30,000 | 0 |
Net cash (used in) provided by financing activities | 671,087 | 1,013,681 |
Effect of exchange rates on cash and cash equivalents | (81,563) | 4,101 |
Net increase in cash and cash equivalents | 208,938 | 259,143 |
Cash and cash equivalents, beginning of period | 734,869 | 608,971 |
Cash and cash equivalents, end of period | 943,807 | 868,114 |
Reportable legal entities | Guarantor Subsidiaries | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | (354,918) | (93,746) |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (134,755) | (128,011) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (73,469) | (809,233) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 20,500 | 0 |
Investing cash flows to affiliates | (3,334,220) | (923,812) |
Other investing activities, net | (7,823) | (23,270) |
Net cash used in investing activities | (3,529,767) | (1,884,326) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 0 | 0 |
Repayments of bank borrowings and long-term debt | (4,460) | (1,333) |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from affiliates | 3,813,276 | 1,996,352 |
Other financing activities, net | (11,347) | 0 |
Net cash (used in) provided by financing activities | 3,797,469 | 1,995,019 |
Effect of exchange rates on cash and cash equivalents | 2,713 | 2,143 |
Net increase in cash and cash equivalents | (84,503) | 19,090 |
Cash and cash equivalents, beginning of period | 148,201 | 168,272 |
Cash and cash equivalents, end of period | 63,698 | 187,362 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 847,430 | 690,336 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (250,812) | (285,928) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (106,790) | (94,612) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 15,573 | 3,603 |
Investing cash flows to affiliates | (532,400) | (1,087,520) |
Other investing activities, net | 19,332 | 26,713 |
Net cash used in investing activities | (855,097) | (1,437,744) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 602 | 60,375 |
Repayments of bank borrowings and long-term debt | (4,082) | (3,735) |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from affiliates | 103,022 | 482,010 |
Other financing activities, net | (65,955) | (49,742) |
Net cash (used in) provided by financing activities | 33,587 | 488,908 |
Effect of exchange rates on cash and cash equivalents | 99,171 | (13,947) |
Net increase in cash and cash equivalents | 125,091 | (272,447) |
Cash and cash equivalents, beginning of period | 724,500 | 851,165 |
Cash and cash equivalents, end of period | 849,591 | 578,718 |
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 | 27 | 5 |
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 | 0 |
Investing cash flows to affiliates | 4,706,702 | 3,111,107 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 4,706,729 | 3,111,112 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 0 | 0 |
Repayments of bank borrowings and long-term debt | 0 | 0 |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from affiliates | (4,706,696) | (3,111,112) |
Other financing activities, net | 0 | 0 |
Net cash (used in) provided by financing activities | (4,706,696) | (3,111,112) |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Net increase 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 |