Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Jul. 26, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | FLEX LTD. | |
Entity Central Index Key | 866,374 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
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) | 532,376,353 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,582,197 | $ 1,830,675 |
Accounts receivable, net of allowance for doubtful accounts of $57,842 and $57,302 as of June 30, 2017 and March 31, 2017, respectively | 2,325,845 | 2,192,704 |
Inventories | 3,601,175 | 3,396,462 |
Other current assets | 1,049,092 | 967,935 |
Total current assets | 8,558,309 | 8,387,776 |
Property and equipment, net | 2,346,440 | 2,317,026 |
Goodwill | 1,039,069 | 984,867 |
Other intangible assets, net | 453,957 | 362,181 |
Other assets | 619,213 | 541,513 |
Total assets | 13,016,988 | 12,593,363 |
Current liabilities: | ||
Bank borrowings and current portion of long-term debt | 45,661 | 61,534 |
Accounts payable | 4,781,036 | 4,484,908 |
Accrued payroll | 359,353 | 344,245 |
Other current liabilities | 1,572,198 | 1,613,940 |
Total current liabilities | 6,758,248 | 6,504,627 |
Long-term debt, net of current portion | 2,918,871 | 2,890,609 |
Other liabilities | 530,091 | 519,851 |
Flex Ltd. shareholders’ equity | ||
Ordinary shares, no par value; 582,889,873 and 581,534,129 issued, and 532,650,518 and 531,294,774 outstanding as of June 30, 2017 and March 31, 2017, respectively | 6,677,832 | 6,733,539 |
Treasury stock, at cost; 50,239,355 shares as of June 30, 2017 and March 31, 2017 | (388,215) | (388,215) |
Accumulated deficit | (3,447,938) | (3,572,648) |
Accumulated other comprehensive loss | (119,476) | (128,143) |
Total Flex Ltd. shareholders’ equity | 2,722,203 | 2,644,533 |
Noncontrolling interests | 87,575 | 33,743 |
Total shareholders’ equity | 2,809,778 | 2,678,276 |
Total liabilities and shareholders’ equity | $ 13,016,988 | $ 12,593,363 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 57,842 | $ 57,302 |
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, issued (shares) | 582,889,873 | 581,534,129 |
Ordinary shares, outstanding (shares) | 532,650,518 | 531,294,774 |
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 | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 6,008,272 | $ 5,876,813 |
Cost of sales | 5,601,340 | 5,470,818 |
Gross profit | 406,932 | 405,995 |
Selling, general and administrative expenses | 250,811 | 239,546 |
Intangible amortization | 19,901 | 21,598 |
Interest and other, net | 26,876 | 24,399 |
Other charges (income), net | (36,165) | 3,529 |
Income before income taxes | 145,509 | 116,923 |
Provision for income taxes | 20,799 | 11,194 |
Net income | $ 124,710 | $ 105,729 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.24 | $ 0.19 |
Diluted (in dollars per share) | $ 0.23 | $ 0.19 |
Weighted-average shares used in computing per share amounts: | ||
Basic (in shares) | 530,268 | 544,631 |
Diluted (in shares) | 538,633 | 551,029 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 124,710 | $ 105,729 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of zero tax | 10,836 | 9,861 |
Unrealized (loss) gain on derivative instruments and other, net of zero tax | (2,169) | 1,348 |
Comprehensive income | $ 133,377 | $ 116,938 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Unrealized gain (loss) on derivative instruments and other, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 124,710 | $ 105,729 |
Depreciation, amortization and other impairment charges | 131,396 | 129,500 |
Changes in working capital and other | (117,590) | 28,703 |
Net cash provided by operating activities | 138,516 | 263,932 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (124,851) | (159,103) |
Proceeds from the disposition of property and equipment | 5,476 | 15,722 |
Acquisition of businesses, net of cash acquired | (213,718) | (9,492) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | (616) | 14,828 |
Other investing activities, net | (18,549) | 26,261 |
Net cash used in investing activities | (352,258) | (111,784) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from bank borrowings and long-term debt | 0 | 75,018 |
Repayments of bank borrowings and long-term debt | (7,554) | (92,222) |
Payments for repurchases of ordinary shares | (73,864) | (94,715) |
Net proceeds from issuance of ordinary shares | 696 | 3,966 |
Other financing activities, net | 57,628 | 12,901 |
Net cash used in financing activities | (23,094) | (95,052) |
Effect of exchange rates on cash and cash equivalents | (11,642) | 14,669 |
Net (decrease) increase in cash and cash equivalents | (248,478) | 71,765 |
Cash and cash equivalents, beginning of period | 1,830,675 | 1,607,570 |
Cash and cash equivalents, end of period | 1,582,197 | 1,679,335 |
Non-cash investing activity: | ||
Unpaid purchases of property and equipment | 84,472 | 85,571 |
Non-cash proceeds from sale of Wink | $ 59,000 | $ 0 |
ORGANIZATION OF THE COMPANY AND
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2017 | |
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., ("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, provider of Sketch-to-Scale tm services - innovative design, engineering, manufacturing, and supply chain services and solutions - from conceptual sketch to full-scale production. The Company designs, builds, ships and services complete packaged consumer and industrial products, from athletic shoes to electronics, for companies of all sizes in various industries and end-markets, through its activities in the following segments: • Communications & Enterprise Compute ("CEC"), which includes telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; networking business which includes 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; • Consumer Technologies Group ("CTG"), which includes consumer-related businesses in connected living, wearables, gaming, augmented and virtual reality, fashion, and mobile devices; and including various supply chain solutions for notebook personal computers ("PC"), tablets, and printers; in addition, CTG is expanding its business relationships to include supply chain optimization for non-electronics products such as footwear and clothing; • Industrial and Emerging Industries ("IEI"), which is comprised of energy and metering, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation and kiosks, and lighting; and • High Reliability Solutions ("HRS"), which is comprised of medical business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies; and defense and aerospace businesses, focused on commercial aviation, defense and military. 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, 2017 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 period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018 . The first quarters for fiscal year 2018 and fiscal year 2017 ended on June 30, 2017 , which is comprised of 91 days in the period, and July 1, 2016 , which is comprised of 92 days in the period, 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 a voting 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 periods presented, and are included in interest and other, net in the condensed consolidated statements of operations. Recently Adopted Accounting Pronouncement In July 2015, the FASB issued new guidance to simplify the measurement of inventory, by requiring that inventory be measured at the lower of cost and net realizable value. Prior to the issuance of the new guidance, inventory was measured at the lower of cost or market. The Company adopted the guidance effective April 1, 2017 and it did not have a material impact on its condensed consolidated financial statements. 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 adopted the guidance effective April 1, 2017 and it did not have a material impact on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued new guidance which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In order to meet this requirement, the entity must apply the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. The guidance is effective for the Company beginning in the first quarter of fiscal year 2019. The Company is in process of implementation activities in accordance with the planned effective date. These activities are focused on the review of significant customer contracts, identification and development of additional systems capabilities to enable the Company to make reasonable estimates of revenue as products are manufactured, and the design and implementation of relevant internal controls. The Company has determined that the new standard will change the timing of revenue recognition for a significant portion of its business. Under the new standard, revenue for a significant majority of electronics manufacturing services customer contracts will be recognized earlier than under the current accounting rules (where Flex recognizes revenue based on shipping and delivery). This change will also have material impacts to the Company’s balance sheet, primarily related to a reduction in finished goods and work-in-process inventories and a corresponding increase in contract assets for unbilled receivables. The new guidance allows for two transition methods in application - (i) retrospective to each prior reporting period presented, or (ii) prospective with the cumulative effect of adoption recognized on April 1, 2018, the first day of the Company's fiscal year 2019. The Company has not yet concluded upon its selection of the transition method. |
BALANCE SHEET ITEMS
BALANCE SHEET ITEMS | 3 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET ITEMS | BALANCE SHEET ITEMS Inventories The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows: As of June 30, 2017 As of March 31, 2017 (In thousands) Raw materials $ 2,527,603 $ 2,537,623 Work-in-progress 471,773 279,493 Finished goods 601,799 579,346 $ 3,601,175 $ 3,396,462 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 three-month period ended June 30, 2017 : HRS CTG IEI CEC Amount (In thousands) Balance, beginning of the year $ 420,935 $ 111,223 $ 337,707 $ 115,002 $ 984,867 Additions (1) 36,627 — — — 36,627 Divestitures (2) — (3,475 ) — — (3,475 ) Foreign currency translation adjustments (3) 21,050 — — — 21,050 Balance, end of the period $ 478,612 $ 107,748 $ 337,707 $ 115,002 $ 1,039,069 (1) The goodwill generated from the Company’s acquisition of AGM Automotive ("AGM") completed during the three-month period ended June 30, 2017 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired business. The goodwill is not deductible for income tax purposes. See note 12 for additional information. (2) During the three-month period ended June 30, 2017 , the Company disposed of Wink Labs Inc. ("Wink"), a business within the CTG segment, and recorded an aggregate reduction of goodwill of $3.5 million accordingly, which is included as an offset to the gain on sale recorded in other charges (income), net on the condensed consolidated statement of operations. (3) During the three-month period ended June 30, 2017 , the Company recorded $21.1 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 fluctuated against the Euro. The components of acquired intangible assets are as follows: As of June 30, 2017 As of March 31, 2017 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 373,694 $ (117,189 ) $ 256,505 $ 260,704 $ (105,912 ) $ 154,792 Licenses and other intangibles 278,237 (80,785 ) 197,452 283,897 (76,508 ) 207,389 Total $ 651,931 $ (197,974 ) $ 453,957 $ 544,601 $ (182,420 ) $ 362,181 The gross carrying amounts of intangible assets are removed when fully amortized. During the three-month period ended June 30, 2017 , the total value of intangible assets increased primarily as a result of the Company's initial estimated value of $108.0 million for customer related intangibles acquired with the AGM acquisition in the HRS segment, which will amortize over a weighted-average estimated useful life of 10 years. The increase was partially offset by $7.5 million for the divestiture of Wink in the CTG segment. The assigned value is subject to change as the Company completes the valuation. The estimated future annual amortization expense for intangible assets is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2018 (1) $ 59,369 2019 72,587 2020 63,414 2021 59,227 2022 50,646 Thereafter 148,714 Total amortization expense $ 453,957 ____________________________________________________________ (1) Represents estimated amortization for the remaining nine -month period ending March 31, 2018 . Other Current Assets Other current assets include approximately $547.5 million and $506.5 million as of June 30, 2017 and March 31, 2017 , 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. Other Assets During the three-month period ended June 30, 2017 , the Company sold Wink to an unrelated third-party venture backed company in exchange for contingent consideration fair valued at $59.0 million . This estimated consideration was based on the value of the acquirer as of the most recent third-party funding of which the Company participated. The Company recognized a non-cash gain on sale of $38.7 million , which is recorded in other charges (income), net on the condensed consolidated statement of income. The contingent consideration is expected to be settled in the fourth quarter of fiscal year 2018 . As of June 30, 2017 the total investment is $69.0 million and is included in other assets on the condensed consolidated balance sheet. Other Current Liabilities Other current liabilities include customer working capital advances of $200.9 million and $231.3 million , customer-related accruals of $476.2 million and $501.9 million , and deferred revenue of $305.2 million and $280.7 million as of June 30, 2017 and March 31, 2017 , 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. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2017 | |
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"). The following table summarizes the Company’s share-based compensation expense: Three-Month Periods Ended June 30, 2017 July 1, 2016 (In thousands) Cost of sales $ 3,319 $ 2,433 Selling, general and administrative expenses 18,477 21,364 Total share-based compensation expense $ 21,796 $ 23,797 Total unrecognized compensation expense related to share options under the 2010 Plan and other immaterial plans was $7.8 million , and will be recognized over a weighted-average remaining vesting period of 1.8 years. As of June 30, 2017 , the number of options outstanding and exercisable under the 2010 Plan and other immaterial plans was 1.8 million and 0.5 million , respectively, at a weighted-average exercise price of $3.66 per share and $6.00 per share, respectively. During the three-month period ended June 30, 2017 , the Company granted 4.8 million unvested share bonus awards under the 2010 Plan. Of this amount, approximately 4.0 million unvested share bonus awards have an average grant date price of $16.39 per share and vest over four years. Further, approximately 0.6 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 is still pending; however, the expense for the three-month period ended June 30, 2017 is immaterial as these awards were granted on the last day of the quarter. The number of shares under the 2010 Plan, contingent on market conditions that ultimately will vest will range from zero up to a maximum of 1.2 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. No additional share options under the immaterial plans were granted by the Company during the three-month period ended June 30, 2017 . As of June 30, 2017 , approximately 16.9 million unvested share bonus awards under the 2010 Plan and other immaterial plans were outstanding, of which vesting for a targeted amount of 2.1 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 4.2 million based on the achievement levels of the respective conditions. During the three -month period ended June 30, 2017 , 1.4 million shares under the 2010 Plan vested in connection with the share bonus awards with market conditions granted in fiscal year 2015. As of June 30, 2017 , total unrecognized compensation expense related to unvested share bonus awards under the 2010 Plan and other immaterial plans was approximately $194.7 million , and will be recognized over a weighted-average remaining vesting period of 2.9 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table reflects 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 June 30, 2017 July 1, 2016 (In thousands, except per share amounts) Net income $ 124,710 $ 105,729 Shares used in computation: Weighted-average ordinary shares outstanding 530,268 544,631 Basic earnings per share $ 0.24 $ 0.19 Diluted earnings per share: Net income $ 124,710 $ 105,729 Shares used in computation: Weighted-average ordinary shares outstanding 530,268 544,631 Weighted-average ordinary share equivalents from stock options and awards (1) 8,365 6,398 Weighted-average ordinary shares and ordinary share equivalents outstanding 538,633 551,029 Diluted earnings per share $ 0.23 $ 0.19 ____________________________________________________________ (1) Options to purchase ordinary shares of 0.1 million and 1.0 million during the three -month periods ended June 30, 2017 and July 1, 2016 , respectively, and share bonus awards of 0.1 million and 0.8 million for the three-month periods ended June 30, 2017 and July 1, 2016 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 3 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS During the period ended June 30, 2017 , a majority owned subsidiary issued additional equity interests to certain third-party investors and received $59.0 million of proceeds, which is included in other financing activities in the condensed consolidated statement of cash flows. As a result, third-party investors now hold approximately 40% ownership of the subsidiary. The Company continues to own a majority of the subsidiary's outstanding equity and controls its board of directors. Accordingly, the consolidated financial statements include the financial position and results of operations of this subsidiary as of June 30, 2017 and March 31, 2017 . The Company has recognized the carrying value of the noncontrolling interest as a component of total shareholders' equity. The noncontrolling interest in the operating losses of the subsidiary is immaterial for all periods presented and are classified as a component of interest and other, net, in the Company's condensed consolidated statements of operations. |
BANK BORROWINGS AND LONG TERM D
BANK BORROWINGS AND LONG TERM DEBT | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 As of March 31, 2017 (In thousands) 4.625% Notes due February 2020 $ 500,000 $ 500,000 Term Loan, including current portion, due in installments through November 2021 700,000 700,000 Term Loan, including current portion, due in installments through June 2022 502,500 502,500 5.000% Notes due February 2023 500,000 500,000 4.75% Notes due June 2025 596,078 595,979 Other 182,046 169,671 Debt issuance costs (16,092 ) (16,007 ) Total $ 2,964,532 $ 2,952,143 The weighted-average interest rates for the Company’s long-term debt were 3.3% and 3.5% as of June 30, 2017 and March 31, 2017 . On June 30, 2017, the Company entered into a five -year credit facility consisting of a $1.75 billion revolving credit facility and a $502.5 million term loan, which is due to mature on June 30, 2022 (the "2022 Credit Facility"). This 2022 Credit Facility replaced the Company's $2.1 billion credit facility, which was due to mature on March 2019 . The outstanding principal of the term loan portion of the 2022 Credit Facility is repayable in quarterly installments of approximately $6.3 million from September 30, 2017 through June 30, 2020 and of approximately $12.6 million from September 30, 2020 through March 31, 2022 with the remainder due upon maturity. The Company determined that effectively extending the maturity date of the revolving credit and repaying the term loan due March 2019 qualify as a debt modification and consequently all unamortized debt issuance costs related to the $2.1 billion credit facility are capitalized and will be amortized over the terms of the 2022 Credit Facility. Borrowings under the 2022 Credit Facility bear interest, at the Company’s option, either at (i) the Base Rate, which is defined as the greatest of (a) the Administrative Agent’s prime rate, (b) the federal funds effective rate, plus 0.50% and (c) the LIBOR (the London Interbank Offered Rate) rate that would be calculated as of each day in respect of a proposed LIBOR loan with a one-month interest period, plus 1.0% ; plus, in the case of each of clauses (a) through (c), an applicable margin ranging from 0.125% to 0.875% per annum, based on the Company’s credit ratings (as determined by Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch Ratings Inc.) or (ii) LIBOR plus the applicable margin for LIBOR loans ranging between 1.125% and 1.875% per annum, based on the Company’s credit ratings. The 2022 Credit Facility is unsecured, and contains customary restrictions on the ability of the Company and its subsidiaries 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 significant exceptions and limitations. The 2022 Credit Facility 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 during the term of the 2022 Credit Facility. As of June 30, 2017 , the Company was in compliance with the covenants under the 2022 Credit Facility agreement. The Company has three tranches of Notes, the 4.625% Notes due 2020, the 5.000% Notes due 2023 and the 4.75% Notes due 2025. These Notes are senior unsecured obligations, and prior to June 30, 2017, were guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company's 100% owned subsidiaries (the "guarantor subsidiaries"). Upon the termination of the $2.1 billion credit facility, all guarantor subsidiaries were released from their guarantees under each indenture for each Note. As a result, the Company will no longer be providing supplemental guarantor and non-guarantor condensed consolidating financial statements. Repayment of the Company’s long term debt outstanding as of June 30, 2017 is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2018 (1) $ 37,373 2019 46,670 2020 542,801 2021 111,917 2022 803,406 Thereafter 1,438,457 Total $ 2,980,624 _________________________________________________________ (1) Represents scheduled repayment for the remaining nine -month period ending March 31, 2018 . |
INTEREST AND OTHER, NET
INTEREST AND OTHER, NET | 3 Months Ended |
Jun. 30, 2017 | |
INTEREST AND OTHER, NET | |
INTEREST AND OTHER, NET | INTEREST AND OTHER, NET During the three-month periods ended June 30, 2017 and July 1, 2016 , the Company recognized interest expense of $29.0 million and $26.9 million , respectively, on its debt obligations outstanding during the period. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 , 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 1,311,000 — $ 192,834 $ — EUR 26,612 102,211 30,241 116,798 HUF 18,375,520 — 67,488 — INR 1,577,358 — 23,600 — MXN 2,353,300 — 131,348 — MYR 167,400 39,000 39,058 9,100 RON 103,510 — 25,844 — SGD 29,800 — 21,554 — Other N/A N/A 45,783 5,396 577,750 131,294 Other Foreign Currency Contracts BRL — 415,000 — 125,537 CAD 19,008 33,755 14,551 25,840 CHF 8,450 31,056 8,800 32,343 CNY 1,533,318 — 224,000 — DKK 180,600 158,800 27,596 24,265 EUR 1,024,136 1,383,812 1,162,529 1,570,311 GBP 35,834 65,131 46,370 84,278 HUF 20,442,171 19,619,207 75,078 72,055 INR 3,960,000 142,487 61,348 2,200 MXN 2,241,024 547,954 125,082 30,584 MYR 354,828 81,400 82,790 18,993 PLN 137,723 78,591 36,938 21,078 SEK 157,797 214,117 18,333 24,978 Other N/A N/A 82,219 57,243 1,965,634 2,089,705 Total Notional Contract Value in USD $ 2,543,384 $ 2,220,999 As of June 30, 2017 , the fair value of the Company’s short-term foreign currency contracts was 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 June 30, 2017 and March 31, 2017 , 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 gains were $11.2 million as of June 30, 2017 , 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 June 30, March 31, Balance Sheet June 30, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 11,411 $ 11,936 Other current liabilities $ 2,624 $ 1,814 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 10,668 $ 10,086 Other current liabilities $ 8,411 $ 9,928 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 | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 July 1, 2016 Unrealized loss on Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (32,426 ) $ (95,717 ) $ (128,143 ) $ (41,522 ) $ (94,393 ) $ (135,915 ) Other comprehensive gain before reclassifications 3,020 10,836 13,856 1,493 10,086 11,579 Net gains reclassified from accumulated other comprehensive loss (5,189 ) — (5,189 ) (145 ) (225 ) (370 ) Net current-period other comprehensive gain (loss) (2,169 ) 10,836 8,667 1,348 9,861 11,209 Ending balance $ (34,595 ) $ (84,881 ) $ (119,476 ) $ (40,174 ) $ (84,532 ) $ (124,706 ) Substantially all unrealized gains relating to derivative instruments and other, reclassified from accumulated other comprehensive loss for the three-month period ended June 30, 2017 are expected to be 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 | 3 Months Ended |
Jun. 30, 2017 | |
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 periods ended June 30, 2017 and July 1, 2016 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 June 30, 2017 , approximately $1.6 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 $547.5 million . As of March 31, 2017 , approximately $1.5 billion of accounts receivable had been sold to the special purpose entities for which the Company had received net cash proceeds of $1.0 billion and deferred purchase price receivables of approximately $506.5 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 June 30, 2017 and March 31, 2017 , 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 June 30, 2017 and March 31, 2017 , 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 three-month periods ended June 30, 2017 and July 1, 2016 , cash flows from sales of receivables under the ABS Programs consisted of approximately $1.5 billion and $1.4 billion , for transfers of receivables, respectively (of which approximately $67.2 million and $59.5 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 June 30, 2017 July 1, 2016 (In thousands) Beginning balance $ 506,522 $ 501,097 Transfers of receivables 847,004 762,184 Collections (806,034 ) (802,947 ) Ending balance $ 547,492 $ 460,334 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 on accounts where the Company has continuing involvement was approximately $217.4 million and $225.2 million as of June 30, 2017 and March 31, 2017 , respectively. For the three-month periods ended June 30, 2017 and July 1, 2016 , total accounts receivable sold to certain third party banking institutions was approximately $229.5 million and $453.0 million , 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 | 3 Months Ended |
Jun. 30, 2017 | |
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 as applicable, which is measured at fair value based on certain internal models and unobservable inputs. The significant inputs in the fair value measurement not supported by market activity included the Company's probability assessments of expected future revenue during the earn-out period and associated volatility, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the merger agreement. Significant decreases in expected revenue during the earn-out period, or significant increases in the discount rate or volatility in isolation would result in lower fair value estimates. The interrelationship between these inputs is not considered significant. The following table summarizes the activities related to contingent consideration payable for historic acquisitions: Three-Month Periods Ended June 30, July 1, (In thousands) Beginning balance $ 22,426 $ 73,423 Additions to accrual — — Payments — — Fair value adjustments (7,000 ) 1,835 Ending balance $ 15,426 $ 75,258 In connection with the acquisition of NEXTracker, Inc. in fiscal year 2016, the Company has an obligation to pay additional cash consideration to the former shareholders contingent upon NEXTracker, Inc.'s achievement of revenue targets during the two years after acquisition (ending on September 30, 2017). During the quarter ended June 30, 2017, the Company adjusted the estimated remaining amount to be paid based on current revenue forecasts for the quarter ending September 29, 2017 resulting in a $7.0 million credit to the condensed consolidated statement of operations. 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 material. 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 periods ended June 30, 2017 and July 1, 2016 . There were no transfers between levels in the fair value hierarchy during the three-month periods ended June 30, 2017 and July 1, 2016 . 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 June 30, 2017 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) $ — $ 576,460 $ — $ 576,460 Deferred purchase price receivable (Note 10) — — 547,492 547,492 Foreign exchange contracts (Note 8) — 22,079 — 22,079 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,806 56,041 — 63,847 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (11,035 ) $ — $ (11,035 ) Contingent consideration in connection with business acquisitions — — (15,426 ) (15,426 ) Fair Value Measurements as of March 31, 2017 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) $ — $ 1,066,841 $ — $ 1,066,841 Deferred purchase price receivable (Note 10) — — 506,522 506,522 Foreign exchange contracts (Note 8) — 22,022 — 22,022 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,062 52,680 — 59,742 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (11,742 ) $ — $ (11,742 ) Contingent consideration in connection with business acquisitions — — (22,426 ) (22,426 ) Other financial instruments The following table presents the Company’s major debts not carried at fair value: As of June 30, 2017 As of March 31, 2017 Carrying Fair Carrying Fair Fair Value (In thousands) 4.625% Notes due February 2020 $ 500,000 $ 526,370 $ 500,000 $ 526,255 Level 1 Term Loan, including current portion, due in installments through November 2021 700,000 699,125 700,000 699,566 Level 1 Term Loan, including current portion, due in installments through June 2022 (1) 502,500 503,405 502,500 503,756 Level 1 5.000% Notes due February 2023 500,000 546,820 500,000 534,820 Level 1 4.750% Notes due June 2025 596,078 639,876 595,979 633,114 Level 1 Euro Term Loan due September 2020 55,977 55,977 53,075 53,075 Level 1 Euro Term Loan due January 2022 114,093 114,093 107,357 107,357 Level 1 Total $ 2,968,648 $ 3,085,666 $ 2,958,911 $ 3,057,943 (1) On June 30, 2017, the Company entered into a new arrangement and extended the maturity date of the agreement from March 31, 2019 to June 30, 2022. Refer to note 6 for further details of the arrangement. The Company values its Euro Term Loans due September 2020 and January 2022 based on the current market rate, and as of June 30, 2017 , the carrying amounts approximates fair values. The Term Loans due November 2021 and June 2022, and the Notes due February 2020, February 2023 and June 2025 are valued based on broker trading prices in active markets. |
BUSINESS AND ASSET ACQUISITIONS
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES | 3 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES | BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES Business and asset acquisitions In April 2017, the Company completed its acquisition of AGM, which expanded its capabilities in the automotive market, and is included within the HRS segment. The Company paid $213.7 million , net of cash acquired. A summary of the allocation of the total purchase consideration is presented as follows (in thousands): Purchase Consideration Net Tangible Assets Acquired Purchased Intangible Assets Goodwill AGM $ 213,718 $ 69,091 $ 108,000 $ 36,627 The Company is in the process of finalizing its valuation of the fair value of the assets and liabilities acquired from AGM. 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. The results of operations of the AGM acquisition were included in the Company’s condensed consolidated financial results beginning on the date of acquisition, and the total amount of net income and revenue were immaterial to the Company's condensed consolidated financial results for the three-month period ended June 30, 2017 . Pro-forma results of operations have not been presented because the effects were not material to the Company’s condensed consolidated financial results for all periods presented. |
SHARE REPURCHASES
SHARE REPURCHASES | 3 Months Ended |
Jun. 30, 2017 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
SHARE REPURCHASES | SHARE REPURCHASES During the three-month period ended June 30, 2017 , the Company repurchased 4.5 million shares at an aggregate purchase price of $73.9 million 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 June 30, 2017 , shares in the aggregate amount of $211.5 million were available to be repurchased under the current plan. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Jun. 30, 2017 | |
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, other charges (income), net and interest and other, net. Selected financial information by segment is as follows: Three-Month Periods Ended June 30, 2017 July 1, 2016 (In thousands) Net sales: Communications & Enterprise Compute $ 1,973,333 $ 2,195,990 Consumer Technologies Group 1,511,969 1,313,782 Industrial & Emerging Industries 1,390,599 1,289,015 High Reliability Solutions 1,132,371 1,078,026 $ 6,008,272 $ 5,876,813 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 48,603 $ 61,899 Consumer Technologies Group 18,004 24,634 Industrial & Emerging Industries 55,376 49,977 High Reliability Solutions 90,212 88,536 Corporate and Other (34,278 ) (34,800 ) Total segment income 177,917 190,246 Reconciling items: Intangible amortization 19,901 21,598 Stock-based compensation 21,796 23,797 Other charges (income), net (36,165 ) 3,529 Interest and other, net 26,876 24,399 Income before income taxes $ 145,509 $ 116,923 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. |
ORGANIZATION OF THE COMPANY A22
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization of the Company | Organization of the Company Flex 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, provider of Sketch-to-Scale tm services - innovative design, engineering, manufacturing, and supply chain services and solutions - from conceptual sketch to full-scale production. The Company designs, builds, ships and services complete packaged consumer and industrial products, from athletic shoes to electronics, for companies of all sizes in various industries and end-markets, through its activities in the following segments: • Communications & Enterprise Compute ("CEC"), which includes telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; networking business which includes 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; • Consumer Technologies Group ("CTG"), which includes consumer-related businesses in connected living, wearables, gaming, augmented and virtual reality, fashion, and mobile devices; and including various supply chain solutions for notebook personal computers ("PC"), tablets, and printers; in addition, CTG is expanding its business relationships to include supply chain optimization for non-electronics products such as footwear and clothing; • Industrial and Emerging Industries ("IEI"), which is comprised of energy and metering, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation and kiosks, and lighting; and • High Reliability Solutions ("HRS"), which is comprised of medical business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies; and defense and aerospace businesses, focused on commercial aviation, defense and military. 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, 2017 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 period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018 . The first quarters for fiscal year 2018 and fiscal year 2017 ended on June 30, 2017 , which is comprised of 91 days in the period, and July 1, 2016 , which is comprised of 92 days in the period, 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 a voting 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 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 July 2015, the FASB issued new guidance to simplify the measurement of inventory, by requiring that inventory be measured at the lower of cost and net realizable value. Prior to the issuance of the new guidance, inventory was measured at the lower of cost or market. The Company adopted the guidance effective April 1, 2017 and it did not have a material impact on its condensed consolidated financial statements. 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 adopted the guidance effective April 1, 2017 and it did not have a material impact on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued new guidance which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In order to meet this requirement, the entity must apply the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. The guidance is effective for the Company beginning in the first quarter of fiscal year 2019. The Company is in process of implementation activities in accordance with the planned effective date. These activities are focused on the review of significant customer contracts, identification and development of additional systems capabilities to enable the Company to make reasonable estimates of revenue as products are manufactured, and the design and implementation of relevant internal controls. The Company has determined that the new standard will change the timing of revenue recognition for a significant portion of its business. Under the new standard, revenue for a significant majority of electronics manufacturing services customer contracts will be recognized earlier than under the current accounting rules (where Flex recognizes revenue based on shipping and delivery). This change will also have material impacts to the Company’s balance sheet, primarily related to a reduction in finished goods and work-in-process inventories and a corresponding increase in contract assets for unbilled receivables. The new guidance allows for two transition methods in application - (i) retrospective to each prior reporting period presented, or (ii) prospective with the cumulative effect of adoption recognized on April 1, 2018, the first day of the Company's fiscal year 2019. The Company has not yet concluded upon its selection of the transition method. |
BALANCE SHEET ITEMS (Tables)
BALANCE SHEET ITEMS (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of components of inventories | The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows: As of June 30, 2017 As of March 31, 2017 (In thousands) Raw materials $ 2,527,603 $ 2,537,623 Work-in-progress 471,773 279,493 Finished goods 601,799 579,346 $ 3,601,175 $ 3,396,462 |
Schedule of goodwill | The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the three-month period ended June 30, 2017 : HRS CTG IEI CEC Amount (In thousands) Balance, beginning of the year $ 420,935 $ 111,223 $ 337,707 $ 115,002 $ 984,867 Additions (1) 36,627 — — — 36,627 Divestitures (2) — (3,475 ) — — (3,475 ) Foreign currency translation adjustments (3) 21,050 — — — 21,050 Balance, end of the period $ 478,612 $ 107,748 $ 337,707 $ 115,002 $ 1,039,069 (1) The goodwill generated from the Company’s acquisition of AGM Automotive ("AGM") completed during the three-month period ended June 30, 2017 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired business. The goodwill is not deductible for income tax purposes. See note 12 for additional information. (2) During the three-month period ended June 30, 2017 , the Company disposed of Wink Labs Inc. ("Wink"), a business within the CTG segment, and recorded an aggregate reduction of goodwill of $3.5 million accordingly, which is included as an offset to the gain on sale recorded in other charges (income), net on the condensed consolidated statement of operations. (3) During the three-month period ended June 30, 2017 , the Company recorded $21.1 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 fluctuated against the Euro. |
Schedule of components of acquired intangible assets | The components of acquired intangible assets are as follows: As of June 30, 2017 As of March 31, 2017 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 373,694 $ (117,189 ) $ 256,505 $ 260,704 $ (105,912 ) $ 154,792 Licenses and other intangibles 278,237 (80,785 ) 197,452 283,897 (76,508 ) 207,389 Total $ 651,931 $ (197,974 ) $ 453,957 $ 544,601 $ (182,420 ) $ 362,181 |
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) 2018 (1) $ 59,369 2019 72,587 2020 63,414 2021 59,227 2022 50,646 Thereafter 148,714 Total amortization expense $ 453,957 ____________________________________________________________ (1) Represents estimated amortization for the remaining nine -month period ending March 31, 2018 . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 July 1, 2016 (In thousands) Cost of sales $ 3,319 $ 2,433 Selling, general and administrative expenses 18,477 21,364 Total share-based compensation expense $ 21,796 $ 23,797 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 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 June 30, 2017 July 1, 2016 (In thousands, except per share amounts) Net income $ 124,710 $ 105,729 Shares used in computation: Weighted-average ordinary shares outstanding 530,268 544,631 Basic earnings per share $ 0.24 $ 0.19 Diluted earnings per share: Net income $ 124,710 $ 105,729 Shares used in computation: Weighted-average ordinary shares outstanding 530,268 544,631 Weighted-average ordinary share equivalents from stock options and awards (1) 8,365 6,398 Weighted-average ordinary shares and ordinary share equivalents outstanding 538,633 551,029 Diluted earnings per share $ 0.23 $ 0.19 ____________________________________________________________ (1) Options to purchase ordinary shares of 0.1 million and 1.0 million during the three -month periods ended June 30, 2017 and July 1, 2016 , respectively, and share bonus awards of 0.1 million and 0.8 million for the three-month periods ended June 30, 2017 and July 1, 2016 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. |
BANK BORROWINGS AND LONG TERM26
BANK BORROWINGS AND LONG TERM DEBT (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of bank borrowings and long-term debt | Bank borrowings and long-term debt are as follows: As of June 30, 2017 As of March 31, 2017 (In thousands) 4.625% Notes due February 2020 $ 500,000 $ 500,000 Term Loan, including current portion, due in installments through November 2021 700,000 700,000 Term Loan, including current portion, due in installments through June 2022 502,500 502,500 5.000% Notes due February 2023 500,000 500,000 4.75% Notes due June 2025 596,078 595,979 Other 182,046 169,671 Debt issuance costs (16,092 ) (16,007 ) Total $ 2,964,532 $ 2,952,143 |
Schedule of the Company's repayments of long-term debt | Repayment of the Company’s long term debt outstanding as of June 30, 2017 is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2018 (1) $ 37,373 2019 46,670 2020 542,801 2021 111,917 2022 803,406 Thereafter 1,438,457 Total $ 2,980,624 _________________________________________________________ (1) Represents scheduled repayment for the remaining nine -month period ending March 31, 2018 . |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Summary of aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts | As of June 30, 2017 , 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 1,311,000 — $ 192,834 $ — EUR 26,612 102,211 30,241 116,798 HUF 18,375,520 — 67,488 — INR 1,577,358 — 23,600 — MXN 2,353,300 — 131,348 — MYR 167,400 39,000 39,058 9,100 RON 103,510 — 25,844 — SGD 29,800 — 21,554 — Other N/A N/A 45,783 5,396 577,750 131,294 Other Foreign Currency Contracts BRL — 415,000 — 125,537 CAD 19,008 33,755 14,551 25,840 CHF 8,450 31,056 8,800 32,343 CNY 1,533,318 — 224,000 — DKK 180,600 158,800 27,596 24,265 EUR 1,024,136 1,383,812 1,162,529 1,570,311 GBP 35,834 65,131 46,370 84,278 HUF 20,442,171 19,619,207 75,078 72,055 INR 3,960,000 142,487 61,348 2,200 MXN 2,241,024 547,954 125,082 30,584 MYR 354,828 81,400 82,790 18,993 PLN 137,723 78,591 36,938 21,078 SEK 157,797 214,117 18,333 24,978 Other N/A N/A 82,219 57,243 1,965,634 2,089,705 Total Notional Contract Value in USD $ 2,543,384 $ 2,220,999 |
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 June 30, March 31, Balance Sheet June 30, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 11,411 $ 11,936 Other current liabilities $ 2,624 $ 1,814 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 10,668 $ 10,086 Other current liabilities $ 8,411 $ 9,928 |
ACCUMULATED OTHER COMPREHENSI28
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 July 1, 2016 Unrealized loss on Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (32,426 ) $ (95,717 ) $ (128,143 ) $ (41,522 ) $ (94,393 ) $ (135,915 ) Other comprehensive gain before reclassifications 3,020 10,836 13,856 1,493 10,086 11,579 Net gains reclassified from accumulated other comprehensive loss (5,189 ) — (5,189 ) (145 ) (225 ) (370 ) Net current-period other comprehensive gain (loss) (2,169 ) 10,836 8,667 1,348 9,861 11,209 Ending balance $ (34,595 ) $ (84,881 ) $ (119,476 ) $ (40,174 ) $ (84,532 ) $ (124,706 ) |
TRADE RECEIVABLES SECURITIZAT29
TRADE RECEIVABLES SECURITIZATION (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 July 1, 2016 (In thousands) Beginning balance $ 506,522 $ 501,097 Transfers of receivables 847,004 762,184 Collections (806,034 ) (802,947 ) Ending balance $ 547,492 $ 460,334 |
FAIR VALUE MEASUREMENT OF ASS30
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of business acquisitions by acquisition, contingent consideration | The following table summarizes the activities related to contingent consideration payable for historic acquisitions: Three-Month Periods Ended June 30, July 1, (In thousands) Beginning balance $ 22,426 $ 73,423 Additions to accrual — — Payments — — Fair value adjustments (7,000 ) 1,835 Ending balance $ 15,426 $ 75,258 |
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 June 30, 2017 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) $ — $ 576,460 $ — $ 576,460 Deferred purchase price receivable (Note 10) — — 547,492 547,492 Foreign exchange contracts (Note 8) — 22,079 — 22,079 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,806 56,041 — 63,847 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (11,035 ) $ — $ (11,035 ) Contingent consideration in connection with business acquisitions — — (15,426 ) (15,426 ) Fair Value Measurements as of March 31, 2017 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) $ — $ 1,066,841 $ — $ 1,066,841 Deferred purchase price receivable (Note 10) — — 506,522 506,522 Foreign exchange contracts (Note 8) — 22,022 — 22,022 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,062 52,680 — 59,742 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (11,742 ) $ — $ (11,742 ) Contingent consideration in connection with business acquisitions — — (22,426 ) (22,426 ) |
Schedule of debt not carried at fair value | The following table presents the Company’s major debts not carried at fair value: As of June 30, 2017 As of March 31, 2017 Carrying Fair Carrying Fair Fair Value (In thousands) 4.625% Notes due February 2020 $ 500,000 $ 526,370 $ 500,000 $ 526,255 Level 1 Term Loan, including current portion, due in installments through November 2021 700,000 699,125 700,000 699,566 Level 1 Term Loan, including current portion, due in installments through June 2022 (1) 502,500 503,405 502,500 503,756 Level 1 5.000% Notes due February 2023 500,000 546,820 500,000 534,820 Level 1 4.750% Notes due June 2025 596,078 639,876 595,979 633,114 Level 1 Euro Term Loan due September 2020 55,977 55,977 53,075 53,075 Level 1 Euro Term Loan due January 2022 114,093 114,093 107,357 107,357 Level 1 Total $ 2,968,648 $ 3,085,666 $ 2,958,911 $ 3,057,943 (1) On June 30, 2017, the Company entered into a new arrangement and extended the maturity date of the agreement from March 31, 2019 to June 30, 2022. Refer to note 6 for further details of the arrangement. |
BUSINESS AND ASSET ACQUISITIO31
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | A summary of the allocation of the total purchase consideration is presented as follows (in thousands): Purchase Consideration Net Tangible Assets Acquired Purchased Intangible Assets Goodwill AGM $ 213,718 $ 69,091 $ 108,000 $ 36,627 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by operating segment | Selected financial information by segment is as follows: Three-Month Periods Ended June 30, 2017 July 1, 2016 (In thousands) Net sales: Communications & Enterprise Compute $ 1,973,333 $ 2,195,990 Consumer Technologies Group 1,511,969 1,313,782 Industrial & Emerging Industries 1,390,599 1,289,015 High Reliability Solutions 1,132,371 1,078,026 $ 6,008,272 $ 5,876,813 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 48,603 $ 61,899 Consumer Technologies Group 18,004 24,634 Industrial & Emerging Industries 55,376 49,977 High Reliability Solutions 90,212 88,536 Corporate and Other (34,278 ) (34,800 ) Total segment income 177,917 190,246 Reconciling items: Intangible amortization 19,901 21,598 Stock-based compensation 21,796 23,797 Other charges (income), net (36,165 ) 3,529 Interest and other, net 26,876 24,399 Income before income taxes $ 145,509 $ 116,923 |
BALANCE SHEET ITEMS - Inventor
BALANCE SHEET ITEMS - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Inventories | ||
Raw materials | $ 2,527,603 | $ 2,537,623 |
Work-in-progress | 471,773 | 279,493 |
Finished goods | 601,799 | 579,346 |
Inventories, total | $ 3,601,175 | $ 3,396,462 |
BALANCE SHEET ITEMS - Goodwill
BALANCE SHEET ITEMS - Goodwill and Other Intangible Assets (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017USD ($)segment | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($) | |
Goodwill [Line Items] | |||
Number of operating segments | segment | 4 | ||
Activity in goodwill account | |||
Balance, beginning of the year | $ 984,867 | ||
Balance, end of the period | 1,039,069 | ||
Gross Carrying Amount | 651,931 | $ 544,601 | |
Accumulated Amortization | (197,974) | (182,420) | |
Net Carrying Amount | 453,957 | 362,181 | |
Customer-related intangibles | |||
Activity in goodwill account | |||
Gross Carrying Amount | 373,694 | 260,704 | |
Accumulated Amortization | (117,189) | (105,912) | |
Net Carrying Amount | 256,505 | 154,792 | |
Licenses and other intangibles | |||
Activity in goodwill account | |||
Gross Carrying Amount | 278,237 | 283,897 | |
Accumulated Amortization | (80,785) | (76,508) | |
Net Carrying Amount | 197,452 | $ 207,389 | |
Operating Segments | |||
Activity in goodwill account | |||
Balance, beginning of the year | 984,867 | ||
Additions | 36,627 | ||
Divestitures | (3,475) | ||
Foreign currency translation adjustments | 21,050 | ||
Balance, end of the period | 1,039,069 | ||
Operating Segments | HRS | |||
Activity in goodwill account | |||
Balance, beginning of the year | 420,935 | ||
Additions | 36,627 | ||
Divestitures | 0 | ||
Foreign currency translation adjustments | 21,050 | ||
Balance, end of the period | 478,612 | ||
Operating Segments | CTG | |||
Activity in goodwill account | |||
Balance, beginning of the year | 111,223 | ||
Additions | 0 | ||
Divestitures | (3,475) | ||
Foreign currency translation adjustments | 0 | ||
Balance, end of the period | 107,748 | ||
Operating Segments | IEI | |||
Activity in goodwill account | |||
Balance, beginning of the year | 337,707 | ||
Additions | 0 | ||
Divestitures | 0 | ||
Foreign currency translation adjustments | 0 | ||
Balance, end of the period | 337,707 | ||
Operating Segments | CEC | |||
Activity in goodwill account | |||
Balance, beginning of the year | 115,002 | ||
Additions | 0 | ||
Divestitures | 0 | ||
Foreign currency translation adjustments | 0 | ||
Balance, end of the period | 115,002 | ||
Mirror Controls International | Operating Segments | HRS | |||
Activity in goodwill account | |||
Foreign currency translation adjustments | 21,100 | ||
AGM Automotive | |||
Activity in goodwill account | |||
Intangible assets acquired during period | $ 108,000 | ||
AGM Automotive | Operating Segments | HRS | |||
Activity in goodwill account | |||
Intangible assets acquired during period | $ 108,000 | ||
AGM Automotive | Operating Segments | Customer-related intangibles | HRS | |||
Activity in goodwill account | |||
Weighted average useful life | 10 years | ||
Wink Labs Inc | |||
Activity in goodwill account | |||
Divestitures | $ (3,500) | ||
Wink Labs Inc | Operating Segments | CTG | |||
Activity in goodwill account | |||
Decrease in intangible assets due to divestiture | $ 7,500 |
BALANCE SHEET ITEMS - Future A
BALANCE SHEET ITEMS - Future Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Estimated future annual amortization expense for acquired intangible assets | ||
2,018 | $ 59,369 | |
2,019 | 72,587 | |
2,020 | 63,414 | |
2,021 | 59,227 | |
2,022 | 50,646 | |
Thereafter | 148,714 | |
Net Carrying Amount | $ 453,957 | $ 362,181 |
BALANCE SHEET ITEMS - Addition
BALANCE SHEET ITEMS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jul. 01, 2016 | Mar. 31, 2016 | |
Components of acquired intangible assets | ||||
Customer working capital advances | $ 200,900 | $ 231,300 | ||
Customer related accruals | 476,200 | 501,900 | ||
Deferred revenue | 305,200 | 280,700 | ||
Asset-Backed Securitization Programs | ||||
Components of acquired intangible assets | ||||
Transferor's interests in transferred financial assets, fair value | 547,492 | $ 506,522 | $ 460,334 | $ 501,097 |
Other assets | Third-Party Private Company | ||||
Components of acquired intangible assets | ||||
Investment in subsidiaries | 69,000 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wink Labs Inc | Third-Party Private Company | ||||
Components of acquired intangible assets | ||||
Shares of investment received as consideration | 59,000 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wink Labs Inc | Other charges (income) | Third-Party Private Company | ||||
Components of acquired intangible assets | ||||
Gain on sale of non-core business | $ 38,700 |
SHARE-BASED COMPENSATION - Loc
SHARE-BASED COMPENSATION - Location of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based compensation | ||
Share-based compensation expense | $ 21,796 | $ 23,797 |
Cost of sales | ||
Share-based compensation | ||
Share-based compensation expense | 3,319 | 2,433 |
Selling, general and administrative expenses | ||
Share-based compensation | ||
Share-based compensation expense | $ 18,477 | $ 21,364 |
SHARE-BASED COMPENSATION - Add
SHARE-BASED COMPENSATION - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Share options | |
Share-based compensation | |
Compensation not yet recognized | $ | $ 7.8 |
Share weighted-average remaining vesting period | 1 year 9 months 11 days |
Share options outstanding (shares) | 1,800,000 |
Options exercisable (shares) | 500,000 |
Options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 3.66 |
Weighted average exercise price of exercisable shares (usd per share) | $ / shares | $ 6 |
Restricted Stock Units, Share Bonus Awards with Market Conditions, and Share Bonus Awards With Free Cash Flow Targets | |
Share-based compensation | |
Share weighted-average remaining vesting period | 2 years 11 months 12 days |
Unvested share bonus awards granted (shares) | 4,800,000 |
Number of shares outstanding (shares) | 16,900,000 |
Unrecognized compensation expense | $ | $ 194.7 |
Restricted Stock Units | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 4,000,000 |
Average grant date price of unvested share bonus awards (usd per share) | $ / shares | $ 16.39 |
Vesting period | 4 years |
Share Bonus Awards with Market Conditions | |
Share-based compensation | |
Number of shares outstanding (shares) | 2,100,000 |
Share Bonus Awards with Market Conditions | Fiscal 2013 | |
Share-based compensation | |
Shares vested (shares) | 1,400,000 |
Share Bonus Awards with Market Conditions | Minimum | |
Share-based compensation | |
Number of shares that may be issued (shares) | 0 |
Share Bonus Awards with Market Conditions | Maximum | |
Share-based compensation | |
Number of shares that may be issued (shares) | 4,200,000 |
Share Bonus Awards with Market Conditions | Key employees | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 600,000 |
Vesting period | 3 years |
Share Bonus Awards with Market Conditions | Key employees | Minimum | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 0 |
Share Bonus Awards with Market Conditions | Key employees | Maximum | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 1,200,000 |
EARNINGS PER SHARE - Calculati
EARNINGS PER SHARE - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Basic earnings per share: | ||
Net income | $ 124,710 | $ 105,729 |
Shares used in computation: | ||
Weighted-average ordinary shares outstanding (in shares) | 530,268 | 544,631 |
Basic earnings per share (in dollars per share) | $ 0.24 | $ 0.19 |
Diluted earnings per share: | ||
Net income | $ 124,710 | $ 105,729 |
Shares used in computation: | ||
Weighted-average ordinary shares outstanding (in shares) | 530,268 | 544,631 |
Weighted-average ordinary share equivalents from stock options and awards (in shares) | 8,365 | 6,398 |
Weighted-average ordinary shares and ordinary share equivalents outstanding (in shares) | 538,633 | 551,029 |
Diluted earnings per share (in dollars per share) | $ 0.23 | $ 0.19 |
EARNINGS PER SHARE - Additiona
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Options | ||
Anti-diluted securities excluded from the computation of diluted earnings per share | ||
Ordinary shares excluded from the computation of diluted earnings per share (in shares) | 0.1 | 1 |
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 (in shares) | 0.1 | 0.8 |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - Subsidiary $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Noncontrolling Interest [Line Items] | |
Proceeds from issuance of additional equity interest | $ 59 |
Ownership percentage | 40.00% |
BANK BORROWINGS AND LONG TERM42
BANK BORROWINGS AND LONG TERM DEBT - Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,980,624 | |
Debt issuance costs | (16,092) | $ (16,007) |
Total | 2,964,532 | 2,952,143 |
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 June 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 700,000 | $ 700,000 |
Term Loan, including current portion, due in installments through June 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 502,500 | 502,500 |
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 | $ 596,078 | $ 595,979 |
Debt instrument interest rate (as a percent) | 4.75% | 4.75% |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 182,046 | $ 169,671 |
BANK BORROWINGS AND LONG TERM43
BANK BORROWINGS AND LONG TERM DEBT - Repayment of Long-term Debt (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 37,373 |
2,019 | 46,670 |
2,020 | 542,801 |
2,021 | 111,917 |
2,022 | 803,406 |
Thereafter | 1,438,457 |
Total | $ 2,980,624 |
BANK BORROWINGS AND LONG TERM44
BANK BORROWINGS AND LONG TERM DEBT - Additional Information (Details) $ in Millions | Jun. 30, 2017USD ($)tranche | Jun. 30, 2017USD ($) | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt, weighted average interest rate | 3.30% | 3.30% | 3.50% |
2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Periodic principal payment, up to June 30, 2020 | $ 6.3 | ||
Periodic principal payment, after June 30, 2020 | $ 12.6 | ||
Number of tranches | tranche | 3 | ||
Term of debt instrument | 5 years | ||
Term Loan, including current portion, due in installments through March 2019 | |||
Debt Instrument [Line Items] | |||
Amount of debt extinguished | $ 2,100 | ||
Federal Funds Rate | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
One-Month LIBOR | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Revolving Credit Facility | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | $ 1,750 | 1,750 | |
Term Loan | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | $ 502.5 | $ 502.5 | |
External credit rating | Federal Funds Rate | 2022 Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
External credit rating | Federal Funds Rate | 2022 Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.875% | ||
External credit rating | One-Month LIBOR | 2022 Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
External credit rating | One-Month LIBOR | 2022 Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.875% | ||
Tranche One | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate (as a percent) | 4.625% | 4.625% | |
Tranche Two | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate (as a percent) | 5.00% | 5.00% | |
Tranche Three | 2022 Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate (as a percent) | 4.75% | 4.75% |
INTEREST AND OTHER, NET (Detail
INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
INTEREST AND OTHER, NET | ||
Interest expense | $ 29 | $ 26.9 |
FINANCIAL INSTRUMENTS - Notion
FINANCIAL INSTRUMENTS - Notional Amount (Details) - 3 months ended Jun. 30, 2017 € in Thousands, ₨ in Thousands, ¥ in Thousands, £ in Thousands, SGD in Thousands, SFr in Thousands, SEK in Thousands, RON in Thousands, PLN in Thousands, MYR in Thousands, MXN in Thousands, HUF in Thousands, DKK in Thousands, CAD in Thousands, BRL in Thousands, $ in Thousands | USD ($) | MXN | EUR (€) | DKK | INR (₨) | PLN | GBP (£) | CHF (SFr) | CAD | SGD | RON | CNY (¥) | MYR | BRL | USD ($) | SEK | HUF |
Notional amount | |||||||||||||||||
Deferred losses | $ 11,200 | ||||||||||||||||
Forward and Swap Contracts | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | $ 4,800,000 | ||||||||||||||||
Buy | Forward and Swap Contracts | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 2,543,384 | ||||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 577,750 | ||||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | CNY | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | ¥ 1,311,000 | 192,834 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | EUR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | € 26,612 | 30,241 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | HUF | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 67,488 | HUF 18,375,520 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | INR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | ₨ 1,577,358 | 23,600 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | MXN | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | MXN 2,353,300 | 131,348 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | MYR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | MYR 167,400 | 39,058 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | RON | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | RON 103,510 | 25,844 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | SGD | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | SGD 29,800 | 21,554 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Other | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 45,783 | ||||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 1,965,634 | ||||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | BRL | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | BRL 0 | 0 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CAD | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | CAD 19,008 | 14,551 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CHF | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | SFr 8,450 | 8,800 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CNY | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 1,533,318 | 224,000 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | DKK | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | DKK 180,600 | 27,596 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | EUR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 1,024,136 | 1,162,529 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | GBP | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | £ 35,834 | 46,370 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | HUF | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 75,078 | 20,442,171 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | INR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 3,960,000 | 61,348 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MXN | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 2,241,024 | 125,082 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MYR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 354,828 | 82,790 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | PLN | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | PLN 137,723 | 36,938 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | SEK | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 18,333 | SEK 157,797 | |||||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | Other | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 82,219 | ||||||||||||||||
Sell | Forward and Swap Contracts | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 2,220,999 | ||||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 131,294 | ||||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | CNY | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | EUR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 102,211 | 116,798 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | HUF | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | INR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | MXN | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | MYR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 39,000 | 9,100 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | RON | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | RON 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | SGD | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | SGD 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Other | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 5,396 | ||||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 2,089,705 | ||||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | BRL | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | BRL 415,000 | 125,537 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CAD | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | CAD 33,755 | 25,840 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CHF | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | SFr 31,056 | 32,343 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CNY | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | ¥ 0 | 0 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | DKK | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | DKK 158,800 | 24,265 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | EUR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | € 1,383,812 | 1,570,311 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | GBP | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | £ 65,131 | 84,278 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | HUF | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 72,055 | HUF 19,619,207 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | INR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | ₨ 142,487 | 2,200 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MXN | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | MXN 547,954 | 30,584 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MYR | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | MYR 81,400 | 18,993 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | PLN | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | PLN 78,591 | 21,078 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | SEK | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | 24,978 | SEK 214,117 | |||||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | Other | |||||||||||||||||
Notional amount | |||||||||||||||||
Notional contract value | $ 57,243 |
FINANCIAL INSTRUMENTS - Foreig
FINANCIAL INSTRUMENTS - Foreign Currency Risk Management (Details) - Foreign currency contracts - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Other current assets | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | $ 11,411 | $ 11,936 |
Other current assets | Derivatives not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | 10,668 | 10,086 |
Other current liabilities | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | 2,624 | 1,814 |
Other current liabilities | Derivatives not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | $ 8,411 | $ 9,928 |
ACCUMULATED OTHER COMPREHENSI48
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,678,276 | |
Ending balance | 2,809,778 | |
Unrealized loss on derivative instruments and other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (32,426) | $ (41,522) |
Other comprehensive gain before reclassifications | 3,020 | 1,493 |
Net gains reclassified from accumulated other comprehensive loss | (5,189) | (145) |
Net current-period other comprehensive gain (loss) | (2,169) | 1,348 |
Ending balance | (34,595) | (40,174) |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (95,717) | (94,393) |
Other comprehensive gain before reclassifications | 10,836 | 10,086 |
Net gains reclassified from accumulated other comprehensive loss | 0 | (225) |
Net current-period other comprehensive gain (loss) | 10,836 | 9,861 |
Ending balance | (84,881) | (84,532) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (128,143) | (135,915) |
Other comprehensive gain before reclassifications | 13,856 | 11,579 |
Net gains reclassified from accumulated other comprehensive loss | (5,189) | (370) |
Net current-period other comprehensive gain (loss) | 8,667 | 11,209 |
Ending balance | $ (119,476) | $ (124,706) |
TRADE RECEIVABLES SECURITIZAT49
TRADE RECEIVABLES SECURITIZATION (Details) | 3 Months Ended | ||
Jun. 30, 2017USD ($)program | Jul. 01, 2016USD ($) | Mar. 31, 2017USD ($) | |
Trade Receivables Securitization disclosures | |||
Servicing assets | $ 0 | $ 0 | |
Servicing liabilities | $ 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 | $ 1,600,000,000 | $ 1,500,000,000 | |
Amount received from accounts receivable sold to third-party | 1,000,000,000 | 1,000,000,000 | |
Cash proceeds from sale of accounts receivable | 1,500,000,000 | 1,400,000,000 | |
Cash flows from new transfers of receivables | 67,200,000 | 59,500,000 | |
Activity in the deferred purchase price receivables account | |||
Beginning balance | 506,522,000 | 501,097,000 | |
Transfers of receivables | 847,004,000 | 762,184,000 | |
Collections | (806,034,000) | (802,947,000) | |
Ending balance | $ 547,492,000 | 460,334,000 | |
Asset-Backed Securitization Programs | Minimum | |||
Trade Receivables Securitization disclosures | |||
Service fee received, percent | 0.10% | ||
Asset-Backed Securitization Programs | Maximum | |||
Trade Receivables Securitization disclosures | |||
Service fee received, percent | 0.50% | ||
Global Program | |||
Trade Receivables Securitization disclosures | |||
Investment limits with financial institution | $ 850,000,000 | ||
Global Program | Committed | |||
Trade Receivables Securitization disclosures | |||
Investment limits with financial institution | 750,000,000 | ||
Global Program | Uncommitted | |||
Trade Receivables Securitization disclosures | |||
Investment limits with financial institution | 100,000,000 | ||
North American Program | |||
Trade Receivables Securitization disclosures | |||
Investment limits with financial institution | 250,000,000 | ||
North American Program | Committed | |||
Trade Receivables Securitization disclosures | |||
Investment limits with financial institution | 210,000,000 | ||
North American Program | Uncommitted | |||
Trade Receivables Securitization disclosures | |||
Investment limits with financial institution | 40,000,000 | ||
Sales of Receivables to Third Party Banks | |||
Trade Receivables Securitization disclosures | |||
Company's accounts receivables sold to third-party | 229,500,000 | $ 453,000,000 | |
Activity in the deferred purchase price receivables account | |||
Receivables sold but not yet collected from banking institutions | $ 217,400,000 | $ 225,200,000 |
FAIR VALUE MEASUREMENT OF ASS50
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in amount of contingent consideration liability | $ 0 | $ 0 |
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 |
Nextracker | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term of revenue targets after acquisition | 2 years | |
Cost of sales | Nextracker | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in amount of contingent consideration liability | $ 7,000,000 |
FAIR VALUE MEASUREMENT OF ASS51
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Contingent Consideration Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Contingent Consideration Liability [Roll Forward] | ||
Beginning balance | $ 22,426 | $ 73,423 |
Additions to accrual | 0 | 0 |
Payments | 0 | 0 |
Fair value adjustments | (7,000) | 1,835 |
Ending balance | $ 15,426 | $ 75,258 |
FAIR VALUE MEASUREMENT OF ASS52
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Assets and Liabilities Measured at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | $ 576,460 | $ 1,066,841 |
Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 547,492 | 506,522 |
Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 22,079 | 22,022 |
Total Liabilities | (11,035) | (11,742) |
Contingent consideration | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | (15,426) | (22,426) |
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 | 63,847 | 59,742 |
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 | Contingent consideration | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | 0 | 0 |
Level 1 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 7,806 | 7,062 |
Level 2 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 576,460 | 1,066,841 |
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 | 22,079 | 22,022 |
Total Liabilities | (11,035) | (11,742) |
Level 2 | Contingent consideration | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | 0 | 0 |
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 | 56,041 | 52,680 |
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 | 547,492 | 506,522 |
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 | Contingent consideration | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | (15,426) | (22,426) |
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 |
FAIR VALUE MEASUREMENT OF ASS53
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Debt Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
4.625% Notes due February 2020 | ||
Other financial instruments | ||
Debt instrument interest rate (as a percent) | 4.625% | 4.625% |
5.000% Notes due February 2023 | ||
Other financial instruments | ||
Debt instrument interest rate (as a percent) | 5.00% | 5.00% |
4.750% Notes due June 2025 | ||
Other financial instruments | ||
Debt instrument interest rate (as a percent) | 4.75% | 4.75% |
Level 1 | 4.625% Notes due February 2020 | ||
Other financial instruments | ||
Debt instrument interest rate (as a percent) | 4.625% | 4.625% |
Level 1 | 5.000% Notes due February 2023 | ||
Other financial instruments | ||
Debt instrument interest rate (as a percent) | 5.00% | 5.00% |
Level 1 | 4.750% Notes due June 2025 | ||
Other financial instruments | ||
Debt instrument interest rate (as a percent) | 4.75% | 4.75% |
Carrying Amount | ||
Other financial instruments | ||
Fair Value | $ 2,968,648 | $ 2,958,911 |
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 June 2022 | ||
Other financial instruments | ||
Fair Value | 700,000 | 700,000 |
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through June 2022 | ||
Other financial instruments | ||
Fair Value | 502,500 | 502,500 |
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 | 596,078 | 595,979 |
Carrying Amount | Level 1 | Euro Term Loan due September 2020 | ||
Other financial instruments | ||
Fair Value | 55,977 | 53,075 |
Carrying Amount | Level 1 | Euro Term Loan due January 2022 | ||
Other financial instruments | ||
Fair Value | 114,093 | 107,357 |
Fair Value | ||
Other financial instruments | ||
Fair Value | 3,085,666 | 3,057,943 |
Fair Value | Level 1 | 4.625% Notes due February 2020 | ||
Other financial instruments | ||
Fair Value | 526,370 | 526,255 |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through June 2022 | ||
Other financial instruments | ||
Fair Value | 699,125 | 699,566 |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through June 2022 | ||
Other financial instruments | ||
Fair Value | 503,405 | 503,756 |
Fair Value | Level 1 | 5.000% Notes due February 2023 | ||
Other financial instruments | ||
Fair Value | 546,820 | 534,820 |
Fair Value | Level 1 | 4.750% Notes due June 2025 | ||
Other financial instruments | ||
Fair Value | 639,876 | 633,114 |
Fair Value | Level 1 | Euro Term Loan due September 2020 | ||
Other financial instruments | ||
Fair Value | 55,977 | 53,075 |
Fair Value | Level 1 | Euro Term Loan due January 2022 | ||
Other financial instruments | ||
Fair Value | $ 114,093 | $ 107,357 |
BUSINESS AND ASSET ACQUISITIO54
BUSINESS AND ASSET ACQUISITIONS & DIVESTITURES (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Apr. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,039,069 | $ 984,867 | |
AGM Automotive | |||
Business Acquisition [Line Items] | |||
Purchase Consideration | $ 213,718 | ||
Net Tangible Assets Acquired | 69,091 | ||
Purchased Intangible Assets | 108,000 | ||
Goodwill | $ 36,627 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - USD ($) shares in Millions | 3 Months Ended | |
Jun. 30, 2017 | Aug. 24, 2016 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | ||
Aggregate shares repurchased (in shares) | 4.5 | |
Aggregate purchase value of shares repurchased | $ 73,900,000 | |
Authorized amount of stock repurchase program | $ 500,000,000 | |
Amount remaining to be repurchased under the plans | $ 211,500,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017USD ($)segment | Jul. 01, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 4 | |
Net sales | $ 6,008,272 | $ 5,876,813 |
Intangible amortization | 19,901 | 21,598 |
Stock-based compensation | 21,796 | 23,797 |
Other charges, net | (36,165) | 3,529 |
Interest and other, net | 26,876 | 24,399 |
Income before income taxes | 145,509 | 116,923 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6,008,272 | 5,876,813 |
Total segment income | 177,917 | 190,246 |
Operating Segments | CEC | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,973,333 | 2,195,990 |
Total segment income | 48,603 | 61,899 |
Operating Segments | Consumer Technologies Group | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,511,969 | 1,313,782 |
Total segment income | 18,004 | 24,634 |
Operating Segments | Industrial & Emerging Industries | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,390,599 | 1,289,015 |
Total segment income | 55,376 | 49,977 |
Operating Segments | High Reliability Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,132,371 | 1,078,026 |
Total segment income | 90,212 | 88,536 |
Operating Segments | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total segment income | $ (34,278) | $ (34,800) |