Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 28, 2018 | Oct. 25, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | FLEX LTD. | |
Entity Central Index Key | 866,374 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (shares) | 526,586,420 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,377,720 | $ 1,472,424 |
Accounts receivable, net of allowance for doubtful accounts of $62,650 and $60,051 as of September 28, 2018 and March 31, 2018, respectively | 2,859,409 | 2,517,695 |
Contract assets | 418,158 | 0 |
Inventories | 4,442,855 | 3,799,829 |
Other current assets | 935,030 | 1,380,466 |
Total current assets | 10,033,172 | 9,170,414 |
Property and equipment, net | 2,277,885 | 2,239,506 |
Goodwill | 1,082,523 | 1,121,170 |
Other intangible assets, net | 375,407 | 424,433 |
Other assets | 957,217 | 760,332 |
Total assets | 14,726,204 | 13,715,855 |
Current liabilities: | ||
Bank borrowings and current portion of long-term debt | 55,640 | 43,011 |
Accounts payable | 6,236,018 | 5,122,303 |
Accrued payroll | 406,368 | 383,332 |
Other current liabilities | 1,456,519 | 1,719,418 |
Total current liabilities | 8,154,545 | 7,268,064 |
Long-term debt, net of current portion | 2,869,551 | 2,897,631 |
Other liabilities | 532,561 | 531,587 |
Shareholders’ equity | ||
Ordinary shares, no par value; 579,126,478 and 578,317,848 issued, and 528,887,123 and 528,078,493 outstanding as of September 28, 2018 and March 31, 2018, respectively | 6,616,635 | 6,636,747 |
Treasury stock, at cost; 50,239,355 shares as of September 28, 2018 and March 31, 2018 | (388,215) | (388,215) |
Accumulated deficit | (2,902,492) | (3,144,114) |
Accumulated other comprehensive loss | (156,381) | (85,845) |
Total shareholders’ equity | 3,169,547 | 3,018,573 |
Total liabilities and shareholders’ equity | $ 14,726,204 | $ 13,715,855 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 62,650 | $ 60,051 |
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, issued (shares) | 579,126,478 | 578,317,848 |
Ordinary shares, outstanding (shares) | 528,887,123 | 528,078,493 |
Treasury stock, shares (shares) | 50,239,355 | 50,239,355 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,710,604 | $ 6,270,420 | $ 13,134,560 | $ 12,278,692 |
Cost of sales | 6,308,303 | 5,877,095 | 12,354,405 | 11,478,435 |
Gross profit | 402,301 | 393,325 | 780,155 | 800,257 |
Selling, general and administrative expenses | 227,683 | 274,149 | 490,565 | 524,960 |
Intangible amortization | 18,234 | 16,376 | 36,751 | 36,277 |
Interest and other, net | 41,060 | 27,554 | 82,802 | 54,430 |
Other income, net | 6,530 | (143,167) | (80,394) | (179,332) |
Income before income taxes | 108,794 | 218,413 | 250,431 | 363,922 |
Provision for income taxes | 21,909 | 13,327 | 47,511 | 34,126 |
Net income | $ 86,885 | $ 205,086 | $ 202,920 | $ 329,796 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.16 | $ 0.39 | $ 0.38 | $ 0.62 |
Diluted (in dollars per share) | $ 0.16 | $ 0.38 | $ 0.38 | $ 0.61 |
Weighted-average shares used in computing per share amounts: | ||||
Basic (in shares) | 531,503 | 531,313 | 530,426 | 530,790 |
Diluted (in shares) | 534,458 | 536,019 | 535,027 | 536,311 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 86,885 | $ 205,086 | $ 202,920 | $ 329,796 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (6,622) | 9,478 | (50,708) | 20,314 |
Unrealized loss on derivative instruments and other, net of zero tax | 21,075 | (13,875) | (19,828) | (16,044) |
Comprehensive income | $ 101,338 | $ 200,689 | $ 132,384 | $ 334,066 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on derivative instruments and other, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 202,920 | $ 329,796 |
Depreciation, amortization and other impairment charges | 269,062 | 264,718 |
Changes in working capital and other | (2,092,964) | (2,614,917) |
Net cash used in operating activities | (1,707,596) | (2,171,977) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (363,373) | (264,030) |
Proceeds from the disposition of property and equipment | 12,973 | 36,123 |
Acquisition of businesses, net of cash acquired | 0 | (273,167) |
Proceeds from divestiture of businesses, net of cash held in divested businesses | 264,438 | (2,949) |
Cash collections of deferred purchase price | 1,812,945 | 2,452,782 |
Other investing activities, net | (24,411) | (114,063) |
Net cash provided by investing activities | 1,702,572 | 1,834,696 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from bank borrowings and long-term debt | 650,023 | 0 |
Repayments of bank borrowings and long-term debt | (652,600) | (26,483) |
Payments for repurchases of ordinary shares | (59,980) | (145,005) |
Net proceeds from issuance of ordinary shares | 131 | 1,211 |
Other financing activities, net | 0 | 60,591 |
Net cash used in financing activities | (62,426) | (109,686) |
Effect of exchange rates on cash and cash equivalents | (27,254) | (14,206) |
Net decrease in cash and cash equivalents | (94,704) | (461,173) |
Cash and cash equivalents, beginning of period | 1,472,424 | 1,830,675 |
Cash and cash equivalents, end of period | 1,377,720 | 1,369,502 |
Non-cash investing activities: | ||
Unpaid purchases of property and equipment | 182,901 | 125,187 |
Non-cash proceeds from sale of Wink | 0 | 59,000 |
Leased Asset to AutoLab (Note 2) | 76,531 | 0 |
Elementum | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Gain from deconsolidation of AutoLab | 0 | (151,574) |
Non-cash investing activities: | ||
Non-cash investment in AutoLab (Note 2) | 0 | 132,679 |
AutoLab | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Gain from deconsolidation of AutoLab | (86,614) | 0 |
Non-cash investing activities: | ||
Non-cash investment in AutoLab (Note 2) | $ 127,641 | $ 0 |
ORGANIZATION OF THE COMPANY AND
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION | 6 Months Ended |
Sep. 28, 2018 | |
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 enterprise products, 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, and mobile devices; and including various supply chain solutions for notebook personal computers, tablets, and printers; • Industrial and Emerging Industries ("IEI"), which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, electric vehicle infrastructure, smart solar energy, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation, and kiosks; and • High Reliability Solutions ("HRS"), which is comprised of health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies. The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance) and supply chain management software solutions and component product offerings (including flexible printed circuit boards and power adapters and chargers). Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, 2018 contained in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six -month periods ended September 28, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019 . The first quarters for fiscal years 2019 and 2018 ended on June 29, 2018, which is comprised of 90 days in the period, and June 30, 2017, which is comprised of 91 days in the period, respectively. The second quarters for fiscal years 2019 and 2018 ended on September 28, 2018 and September 29, 2017 , which are comprised of 91 days in both periods. The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. The associated noncontrolling owners' interest in the income or losses of these companies is not material to the Company's results of operations for all periods presented, and is classified as a component of interest and other, net, in the condensed consolidated statements of operations. Recently Adopted Accounting Pronouncement In January 2017, the FASB issued Accounting Standard Update (ASU) No. 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business” to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted the guidance on a prospective basis during the first quarter of fiscal year 2019, which did not have a material impact to its financial position as there were no acquisitions during the period. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)." The ASU is intended to address specific cash flow issues with the objective of reducing the existing diversity in practice and provide guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows. The majority of the guidance in ASU 2016-15 is consistent with our current cash flow classification. However, cash receipts on the deferred purchase price from the Company's asset-backed securitization programs described in note 10 will be classified as cash flows from investing activities instead of the Company's former presentation as cash flows from operations. The Company adopted the guidance during the first quarter of fiscal year 2019 using a monthly approach to track cash flows on deferred purchase price and retrospectively adjusted cash flows from operating and investing activities for fiscal year 2018. Commencing with the quarter ending September 28, 2018, the Company changed to a method based on daily activity and retrospectively adjusted cash flows from operating and investing activities for the six -month period ended September 29, 2017. The Company recorded $1.8 billion of cash receipts on the deferred purchase price from the Company's asset-backed securitization programs for the six -month period ended September 28, 2018 and reclassified $2.5 billion of cash receipts on the deferred purchase price for the six -month period ended September 29, 2017, from cash flows from operating activities to cash flows from investing activities. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This guidance generally requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. This guidance also requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The Company adopted this guidance on April 1, 2018 with an insignificant impact on the Company's financial position, results of operations or cash flows. In February 2018, the FASB issued ASU 2018-03 "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard comes as an addition to ASU 2016-01 which the Company adopted in the first quarter of fiscal year 2019. This update includes amendments to clarify certain aspects of the guidance issued in Update 2016-01. The Company adopted this guidance during the second quarter of fiscal year 2019 with an immaterial impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" (also referred to as Accounting Standard Codification 606 ("ASC 606")) which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In order to meet this requirement, the entity must apply the following steps: (i) identify the contracts 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 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 Company adopted the standard on April 1, 2018 using the modified retrospective approach by applying the guidance to all open contracts at the adoption date and has implemented revised accounting policies, new operational and financial reporting processes, enhanced systems capabilities and relevant internal controls. As part of adopting ASC 606, revenue for certain customer contracts where the Company is manufacturing products for which there is no alternative use and the Company has an enforceable right to payment including a reasonable profit for work-in-progress inventory will be recognized over time (i.e., as we manufacture the product) instead of upon shipment of products. In addition to the following disclosures, note 3 provides further disclosures required by the new standard. The cumulative effect of change made to our April 1, 2018 consolidated balance sheet for the adoption of ASC 606 was as follows: Condensed Consolidated Balance Sheet Impact of Adopting ASC 606 (In thousands) Balance at March 31, 2018 Adjustments Balance at April 1, 2018 ASSETS Contract assets — 412,787 412,787 Inventories 3,799,829 (409,252 ) 3,390,577 Other current assets 1,380,466 (51,479 ) 1,328,987 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 1,719,418 (87,897 ) 1,631,521 Other liabilities 531,587 2,098 533,685 Accumulated deficit (3,144,114 ) (37,855 ) (3,181,969 ) The adoption of ASC 606 resulted in the establishment of contract asset and contract liability balance sheet accounts and in the reclassification to these new accounts from certain asset and liability accounts, primarily inventories. The increase in accumulated deficit in the table above reflects $37.9 million of net adjustments to the balance sheet as of April 1, 2018, resulting from the adoption of ASC 606 primarily related to certain customer contracts requiring an over-time method of revenue recognition. The declines in inventories and other current asset reflect reclassifications to contract assets due to the earlier recognition of certain costs of products sold for over-time contracts. The decline in other current liabilities is primarily due to the reclassification of payments from customers in advance of work performed to contract assets to reflect the net position of the related over-time contracts. The following tables summarize the impacts of ASC 606 adoption on the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations: Condensed Consolidated Balance Sheet As of September 28, 2018 Impact of Adopting ASC 606 (In thousands) As Reported Adjustments Balance without ASC 606 Adoption ASSETS Contract assets 418,158 (418,158 ) — Inventories 4,442,855 415,623 4,858,478 Other current assets 935,030 8,059 943,089 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 1,456,519 34,327 1,490,846 Accumulated deficit (2,902,492 ) (38,520 ) (2,941,012 ) Condensed Consolidated Statement of Operations Impact of Adopting ASC 606 Three-months ended September 28, 2018 Six-months ended September 28, 2018 (In thousands, except per share amounts) As Reported Adjustments Balance without ASC 606 Adoption As Reported Adjustments Balance without ASC 606 Adoption Net sales $ 6,710,604 $ (115,533 ) $ 6,595,071 $ 13,134,560 $ (27,237 ) $ 13,107,323 Cost of sales 6,308,303 (111,917 ) 6,196,386 12,354,405 (26,573 ) 12,327,832 Gross profit 402,301 (3,616 ) 398,685 780,155 (664 ) 779,491 Net income $ 86,885 $ (3,616 ) $ 83,269 $ 202,920 $ (664 ) $ 202,256 To align contractual terms across the vast majority of customers to allow the Company to efficiently and accurately manage its contracts, in the first quarter of fiscal year 2019, the Company waived certain contractual rights to bill profit for work in progress in the event of a contract termination which is expected to be infrequent. These modifications resulted in revenue from these customers being recognized upon shipment of products, rather than over time (i.e., as we manufacture products) as further explained in note 3. The result of the amendments for the six-month period ended September 28, 2018 , was to reduce revenue and gross profit by approximately $132.7 million and $9.3 million , respectively, compared to amounts that would have been reported both (i) under ASC 606 had we not amended the contracts, and (ii) had we not adopted ASC 606. For the three-month period ended September 28, 2018 the as reported revenue was approximately $115.5 million higher, and the gross profit $3.6 million higher, than they would have been without ASC 606 adoption primarily due to additional inventory build up as of September 28, 2018 for those customer contracts that meet the criteria for over-time recognition (see note 3) partially offset by a decline in the aggregate average gross profit margin for those customers due to the increasing mix of lower margin customers included in the CTG segment. For the six-month period ended September 28, 2018 the as reported revenue was approximately $27.2 million higher and the gross profit approximately $0.7 million higher than it would have been without ASC 606 adoption. Additional revenue of $160.0 million was reported under ASC 606 due to the accelerated timing of recognition of revenue for contracts which meet the criteria for over-time recognition (see note 3). Approximately $10.0 million of additional gross profit was recognized on the customers qualifying for accelerated revenue recognition. These increases were offset by reductions of $132.7 million of revenue and $9.3 million of gross profit respectively as a result of the waiver of contracts noted above. There was no material tax impact for the three and six-month periods ended September 28, 2018 from adopting ASC 606. The Company applies the following practical expedients: • The Company elected to not disclose information about remaining performance obligations as its performance obligations generally have an expected duration of one year or less. • In accordance with ASC 606-10-25-18B the Company will account for certain shipping and handling as activities to fulfill the promise to transfer the good, instead of a promised service to its customer. • In accordance with ASC 606-10-32-18 the Company elected to not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15 "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” to provide guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e. a service contract. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, as well as requires additional quantitative and qualitative disclosures. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company is still evaluating the impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement”, which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting" with the objective of simplifying several aspects of the accounting for nonemployee share-based payment transactions in current GAAP. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" with the objective of improving the financial reporting of hedging relationships and simplifying the application of the hedge accounting guidance in current GAAP. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In January 2017, the FASB issued ASU 2017-04 "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" to simplify the subsequent measurement of goodwill by eliminating step 2 from the goodwill impairment test. This guidance requires that the change be applied on a prospective basis, and it is effective for the Company beginning in the first quarter of fiscal year 2021, with early application permitted. The Company is currently assessing the impact of the new guidance and the timing of adoption. In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)" intended to improve financial reporting on leasing transactions. The new lease guidance will require entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. The guidance will also enhance existing disclosure requirements relating to those leases. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASC 842. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and nonlease components when certain conditions are met. Also in July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases", which clarifies how to apply certain aspects of the new leases standard, ASC 842. The amendments address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. The amendments have the same effective date and transition requirements as the new leases standard. The Company intends to adopt the new lease guidance when it becomes effective in the first quarter of fiscal year 2020 using a modified retrospective approach. The Company believes the new guidance will have a material impact on its consolidated balance sheets upon adoption. |
BALANCE SHEET ITEMS
BALANCE SHEET ITEMS | 6 Months Ended |
Sep. 28, 2018 | |
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 September 28, 2018 As of March 31, 2018 (In thousands) Raw materials $ 3,512,523 $ 2,760,410 Work-in-progress 407,998 450,569 Finished goods 522,334 588,850 $ 4,442,855 $ 3,799,829 Due to the adoption of ASC 606, amounts that would have been reported as inventory under prior guidance are now included in contract assets or liabilities, depending on the net position of the contract, as disclosed in note 1. As a result of this accounting change, work-in-progress and finished goods as of September 28, 2018 are $415.6 million less than they would have been, had we not adopted ASC 606. The comparative information as of March 31, 2018, has not been restated and continues to be reported under the accounting standards in effect at that time. Goodwill and Other Intangible Assets The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the six-month period ended September 28, 2018 : HRS CTG IEI CEC Amount (In thousands) Balance, beginning of the year $ 550,983 $ 107,748 $ 337,707 $ 124,732 $ 1,121,170 Divestitures (1) (4,006 ) (4,412 ) (4,120 ) (6,391 ) (18,929 ) Foreign currency translation adjustments (2) (19,718 ) — — — (19,718 ) Balance, end of the period $ 527,259 $ 103,336 $ 333,587 $ 118,341 $ 1,082,523 (1) During the six-month period ended September 28, 2018 , the Company divested its China-based Multek operations, and as a result, recorded an aggregate reduction of goodwill of $18.9 million , which is included in the loss on sale recorded in other charges (income), net on the condensed consolidated statement of operation. See note 12 for additional information. (2) During the six-month period ended September 28, 2018 , the Company recorded $19.7 million of foreign currency translation adjustments primarily related to the goodwill associated with the acquisition of Mirror Controls International ("MCi") and AGM Automotive ("AGM"), as the U.S. Dollar fluctuated against foreign currencies. In accordance with accounting guidance on goodwill and other intangible assets, the Company evaluates goodwill for impairment at the reporting unit level annually, and whenever circumstances occur indicating that goodwill might be impaired. The performance of the test involves a two -step process. The first step of the impairment test involves comparing the fair value of each of the Company's reporting units with the reporting unit's carrying amount, including goodwill. The Company generally determines the fair value of its reporting units based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis. If the carrying amount of a reporting unit exceeds the reporting unit's fair value using these approaches, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the Company's reporting unit's goodwill with the carrying amount of that goodwill. During October 2018, the Company's market capitalization declined significantly. The Company believes the significant drop in market value constitutes a “triggering event” in accordance with the applicable accounting literature, and accordingly commenced an interim impairment test. The Company is in the process of completing the first step of the test, and based on preliminary results believes that it is probable that the fair value of the CTG reporting unit is lower than its carrying value. The Company is in the process of finalizing the long-term financial projections necessary to complete the first step of the goodwill impairment test. If it is determined that the goodwill of any of the reporting units is in fact impaired, the Company will then proceed to the second step of the impairment test in which it will measure the fair value of such reporting unit’s identified tangible and intangible assets and liabilities in order to determine the implied fair value of its goodwill and any resulting goodwill impairment. As of the date of the filing of this Form 10-Q, the Company has not finalized its impairment analysis due to the limited time period from the first indication of potential impairment to the date of this filing and the complexities involved in developing long-term cash flow forecasts and in estimating the fair value of each reporting unit’s assets and liabilities. Accounting guidance provides that in circumstances in which step two of the impairment analysis has not been completed, a company should recognize an estimated impairment charge to the extent that it determines that it is probable that an impairment loss has occurred and such impairment loss can be reasonably estimated. As of the date of the filing of this Form 10-Q, such impairment loss is not reasonably estimable and thus no impairment charge has been recognized by the Company. The Company will complete its impairment analysis during the quarter ending December 31, 2018, which may result in a material impairment of its recorded goodwill. The components of acquired intangible assets are as follows: As of September 28, 2018 As of March 31, 2018 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 303,361 $ (98,112 ) $ 205,249 $ 306,943 $ (79,051 ) $ 227,892 Licenses and other intangibles 287,024 (116,866 ) 170,158 304,007 (107,466 ) 196,541 Total $ 590,385 $ (214,978 ) $ 375,407 $ 610,950 $ (186,517 ) $ 424,433 The gross carrying amounts of intangible assets are removed when fully amortized. The estimated future annual amortization expense for intangible assets is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2019 (1) $ 35,987 2020 66,906 2021 62,515 2022 53,678 2023 45,421 Thereafter 110,900 Total amortization expense $ 375,407 ____________________________________________________________ (1) Represents estimated amortization for the remaining six-month period ending March 31, 2019 . Other Current Assets Other current assets include approximately $304.3 million and $445.4 million as of September 28, 2018 and March 31, 2018 , respectively, for the deferred purchase price receivable from the Company's Asset-Backed Securitization programs. See note 10 for additional information. Assets held for sale related to the China-based Multek operations previously recorded in other current assets have been removed from the condensed consolidated balance sheet as of September 28, 2018, following the execution of the divestiture. See note 12 for additional information. Investments The Company has an investment portfolio that consists of strategic investments in privately held companies, and certain venture capital funds which are included within other assets. These privately held companies range from startups to more mature companies with established revenue streams and business models. The primary purpose of these investments is to create an ecosystem of partnerships with customers developing emerging technologies aligned to the Company's corporate strategy with bringing in future opportunities for exclusive manufacturing. Non-majority-owned investments in entities are accounted for using the equity method when the Company has an investment in common stock or in-substance common stock, and either (a) has the ability to significantly influence the operating decisions of the issuer, or (b) if the Company has a voting percentage 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. Cost method is used for investments which the Company does not have the ability to significantly influence the operating decisions of the investee. The Company monitors these investments for impairment indicators and makes appropriate reductions in carrying values as required whenever events or changes in circumstances indicate that the assets may be impaired. The factors the Company considers in its evaluation of potential impairment of its investments include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operation or working capital deficiencies. Fair values of these investments, when required, are estimated using unobservable inputs, primarily comparable company multiples and discounted cash flow projections. For investments accounted for under cost method that do not have readily determinable fair values, the Company has elected, per ASU 2016-01, to measure them at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. AutoLab AI (now known as Bright Machines) During the first quarter of fiscal year 2019, the Company transferred existing employees and equipment with a net book value of approximately $40 million along with certain related software and Intellectual Property ("IP"), into the newly created AutoLab AI (“AutoLab”), in exchange for shares of preferred stock and a controlling financial interest in AutoLab. AutoLab is a privately held software-as-a service (SaaS) and hardware company focused on developing and deploying an automation solution worldwide. The Company has concluded that AutoLab does not qualify as a variable interest entity for purposes of evaluating whether it has a controlling financial interest. Subsequent to the initial formation and prior to June 29, 2018, AutoLab received equity funding from third party investors and expanded the board of directors, resulting in dilution of the Company's voting interest below 50% . As a result, the Company concluded it no longer holds a controlling financial interest in AutoLab and accordingly, deconsolidated the entity. The fair value of the Company’s non-controlling interest in AutoLab upon deconsolidation was approximately $127.6 million as of the date of deconsolidation. The Company accounts for its investment in AutoLab under the equity method, with the carrying amount included in other assets on the condensed consolidated balance sheet. The value of the Company’s interest on the date of deconsolidation was based on management’s estimate of the fair value of AutoLab at that time. Management relied on a multi-stage process which involved calculating the enterprise and equity value of AutoLab, then allocating the equity value of the entity to the Company’s securities. The enterprise value of AutoLab was estimated based on the value implied by the equity funding AutoLab received from third parties in the same period (i.e., level 2 inputs). The Company recognized a gain on deconsolidation of approximately $87.3 million with no material tax impact, which is included in other charges (income), net on the condensed consolidated statement of operations. In addition, during the first quarter of fiscal year 2019, the Company leased approximately $76.5 million of fixed assets to AutoLab under a five -year lease term based on an interest rate of 4.20% per year. The leases were concluded to be sales-type leases and as such, the Company derecognized the associated assets from property and equipment, net and recorded a total net investment in the lease of $88.2 million in other current assets and other assets, based on the present value of lease receivables. The Company recorded an immaterial gain related to this leasing transaction, which is included in cost of sales on the condensed consolidated statement of operations. Pro-forma financials have not been presented because the effects were not material to the Company’s condensed consolidated financial position and results of operation for all periods presented. AutoLab became a related party to the Company starting on the date of deconsolidation. The Company has engaged AutoLab as a strategic partner to develop and deploy automation solutions for Flex and has entered into a 5 -year subscription agreement. Subscription fees under the AutoLab agreement were immaterial for the six -month period ended September 28, 2018 . As of September 28, 2018 , and March 31, 2018, the Company's investments in non-majority owned companies totaled $557.2 million and $411.1 million , respectively. The equity in the earnings or losses of the Company's equity method investments, including AutoLab, was not material to the consolidated results of operations for any period presented and is included in interest and other, net. Other Current Liabilities Other current liabilities include customer working capital advances of $226.5 million and $153.6 million , customer-related accruals of $369.8 million and $439.0 million , and deferred revenue of $247.1 million and $329.0 million as of September 28, 2018 and March 31, 2018 , 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. Liabilities held for sale related to the China-based Multek operations previously recorded in other current liabilities have been removed from the condensed consolidated balance sheet as of September 28, 2018, following the execution of the divestiture. See note 12 for additional information. |
REVENUE
REVENUE | 6 Months Ended |
Sep. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition The Company provides a comprehensive suite of services for its customers that range from advanced product design to manufacturing and logistics to after-sales services. The first step in its process for revenue recognition is to identify a contract with a customer. A contract is defined as an agreement between two parties that create enforceable rights and obligations and can be written, verbal, or implied. The Company generally enters into master supply agreements (“MSA”) with its customers that provide the framework under which business will be conducted. This includes matters such as warranty, indemnification, transfer of title and risk of loss, liability for excess and obsolete inventory, pricing formulas, payment terms, etc., and the level of business under those agreements may not be guaranteed. In those instances, we bid on a program-by-program basis and typically receive customer purchase orders for specific quantities and timing of products. As a result, the Company considers its contract with a customer to be the combination of the MSA and the purchase order, or any other similar documents such as a statement of work, product addenda, emails or other communications that embody the commitment by the customer. In determining the appropriate amount of revenue to recognize, the Company applies 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 Company satisfies a performance obligation. Further, the Company assesses whether control of the product or services promised under the contract is transferred to the customer at a point in time (PIT) or over time (OT). The Company is first required to evaluate whether its contracts meet the criteria for OT recognition. The Company has determined that for a portion of its contracts the Company is manufacturing products for which there is no alternative use (due to the unique nature of the customer-specific product and IP restrictions) and the Company has an enforceable right to payment including a reasonable profit for work-in-progress inventory with respect to these contracts. As a result, revenue is recognized under these contracts OT based on the cost-to-cost method as it best depicts the transfer of control to the customer measured based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation. For all other contracts that do not meet these criteria, the Company recognizes revenue when it has transferred control of the related manufactured products which generally occurs upon delivery and passage of title to the customer. Customer Contracts and Related Obligations Certain of the Company’s customer agreements include potential price adjustments which may result in variable consideration. These price adjustments include, but are not limited to, sharing of cost savings, committed price reductions, material margins earned over the period that are contractually required to be paid to the customers, rebates, refunds tied to performance metrics such as on-time delivery, and other periodic pricing resets that may be refundable to customers. The Company estimates the variable consideration related to these price adjustments as part of the total transaction price and recognizes revenue in accordance with the pattern applicable to the performance obligation, subject to a constraint. The Company constrains the amount of revenues recognized for these contractual provisions based on its best estimate of the amount which will not result in a significant reversal of revenue in a future period. The Company determines the amounts to be recognized based on the amount of potential refund required by the contract, historical experience and other surrounding facts and circumstances. Often these obligations are settled with the customer in a period after shipment through various methods which include reduction of prices for future purchases, issuance of a payment to the customer, or issuance of a credit note applied against the customer’s accounts receivable balance. In many instances, the agreement is silent on the settlement mechanism. Any difference between the amount accrued upon shipment for potential refunds and the actual amount agreed to with the customer is recorded as an increase or decrease in revenue. These potential price adjustments are included as part of other current liabilities on the consolidated balance sheet and disclosed as part of customer related accruals in note 2. Performance Obligations The Company derives its revenues primarily from manufacturing services, and to a lesser extent, from innovative design, engineering, and supply chain services and solutions. A performance obligation is an implicitly or explicitly promised good or service that is material in the context of the contract and is both capable of being distinct (customer can benefit from the good or service on its own or together with other readily available resources) and distinct within the context of the contract (separately identifiable from other promises). The Company considers all activities typically included in its contracts, and identifies those activities representing a promise to transfer goods or services to a customer. These include, but are not limited to, design and engineering services, prototype products, tooling, etc. Each promised good or service with regards to these identified activities is accounted for as a separate performance obligation only if it is distinct - i.e., the customer can benefit from it on its own or together with other resources that are readily available to the customer. Certain activities on the other hand are determined not to constitute a promise to transfer goods or service, and therefore do not represent separate performance obligations for revenue recognition (e.g., procurement of materials and standard workmanship warranty). A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's contracts have a single performance obligation as the promise to transfer the individual good or service is not separately identifiable from other promises in the contract and is, therefore, not distinct. Promised goods or services that are immaterial in the context of the contract are not separately assessed as performance obligations. In the event that more than one performance obligation is identified in a contract, the Company is required to allocate the transaction price between the performance obligations. The allocation would generally be performed on the basis of a relative standalone price for each distinct good or service. This standalone price most often represents the price that Flex would sell similar goods or services separately. Contract Balances A contract asset is recognized when the Company has recognized revenue, but not issued an invoice for payment. Contract assets are classified separately on the condensed consolidated balance sheet and transferred to receivables when rights to payment become unconditional. The following table summarizes the activity in the Company's contract assets during the six -month period ended September 28, 2018 (in thousands): Contract Assets Beginning balance, April 1, 2018 $ — Cumulative effect adjustment at April 1, 2018 412,787 Revenue recognized 3,566,140 Amounts collected or invoiced (3,560,769 ) Ending balance, September 28, 2018 $ 418,158 A contract liability is recognized when the Company receives payments in advance of the satisfaction of performance and is included in other current liabilities on the condensed consolidated balance sheets. Contract liabilities were $247.1 million and $265.3 million as of September 28, 2018 and April 1, 2018, respectively. Disaggregation of Revenue The following table presents the Company’s revenue disaggregated based on timing of transfer - point in time and overtime - for the three-month and six -month periods ended September 28, 2018 (in thousands), respectively: Three-month Period Ended September 28, 2018 HRS CTG IEI CEC Total Timing of Transfer Point in time $ 893,141 $ 1,203,696 $ 1,089,319 $ 1,519,041 $ 4,705,197 Over time 314,830 592,187 476,634 621,756 2,005,407 Total segment $ 1,207,971 $ 1,795,883 $ 1,565,953 $ 2,140,797 $ 6,710,604 Six-month Period Ended September 28, 2018 HRS CTG IEI CEC Total Timing of Transfer Point in time $ 1,898,321 $ 2,504,333 $ 2,153,218 $ 3,012,548 $ 9,568,420 Over time 525,075 1,099,484 859,046 1,082,535 3,566,140 Total segment $ 2,423,396 $ 3,603,817 $ 3,012,264 $ 4,095,083 $ 13,134,560 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 28, 2018 | |
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 2017 Equity Incentive Plan (the "2017 Plan"). The following table summarizes the Company’s share-based compensation expense: Three-Month Periods Ended Six-Month Periods Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 (In thousands) Cost of sales $ 4,767 $ 4,985 $ 10,171 $ 8,304 Selling, general and administrative expenses 14,314 15,479 29,863 33,956 Total share-based compensation expense $ 19,081 $ 20,464 $ 40,034 $ 42,260 Total unrecognized compensation expense related to share options under all plans was $4.3 million and will be recognized over a weighted-average remaining vesting period of 1.9 years. As of September 28, 2018 , the number of options outstanding and exercisable under all plans was 1.1 million and 0.6 million , respectively, at a weighted-average exercise price of $3.40 per share and $4.02 per share, respectively. During the six-month period ended September 28, 2018 , the Company granted 5.5 million unvested restricted share unit awards. Of this amount, approximately 4.2 million are plain-vanilla unvested restricted share unit awards with no performance or market conditions with an average grant date price of $14.02 per award and will vest over four years. Further, approximately 1.3 million unvested shares represent the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions. The average grant date fair value of these awards contingent on certain market conditions was estimated to be $14.00 per award and was calculated using a Monte Carlo simulation. The number of shares contingent on market conditions that ultimately will vest will range from zero up to a maximum of 2.6 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. As of September 28, 2018 , approximately 14.1 million unvested restricted share unit awards under all plans were outstanding, of which vesting for a targeted amount of 2.6 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 5.2 million based on the achievement levels of the respective conditions. During the six -month period ended September 28, 2018 , 0.6 million shares vested in connection with the restricted share unit awards with market conditions granted in fiscal year 2016. As of September 28, 2018 , total unrecognized compensation expense related to unvested restricted share unit awards under all plans was approximately $168.6 million , and will be recognized over a weighted-average remaining vesting period of 2.7 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Sep. 28, 2018 | |
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 Six-Month Periods Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 (In thousands, except per share amounts) Basic earnings per share: Net income $ 86,885 $ 205,086 $ 202,920 $ 329,796 Shares used in computation: Weighted-average ordinary shares outstanding 531,503 531,313 530,426 530,790 Basic earnings per share 0.16 0.39 0.38 0.62 Diluted earnings per share: Net income $ 86,885 $ 205,086 $ 202,920 $ 329,796 Shares used in computation: Weighted-average ordinary shares outstanding 531,503 531,313 530,426 530,790 Weighted-average ordinary share equivalents from stock options and awards (1) (2) 2,955 4,706 4,601 5,521 Weighted-average ordinary shares and ordinary share equivalents outstanding 534,458 536,019 535,027 536,311 Diluted earnings per share 0.16 0.38 0.38 0.61 ____________________________________________________________ (1) An immaterial amount of options to purchase ordinary shares were excluded from the computation of diluted earnings per share during the three-month and six-month periods ended September 28, 2018 and September 29, 2017 , respectively, due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) Restricted share unit awards of 3.1 million for the three-month and six-month periods ended September 28, 2018 were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. An immaterial amount of anti-dilutive restricted share unit awards was excluded for the three-month and six-month periods ended September 29, 2017 . |
INTEREST AND OTHER, NET
INTEREST AND OTHER, NET | 6 Months Ended |
Sep. 28, 2018 | |
INTEREST AND OTHER, NET | |
INTEREST AND OTHER, NET | INTEREST AND OTHER, NET During the three and six-month periods ended September 28, 2018 , the Company recognized interest expense of $35.1 million and $68.7 million , respectively, on its debt obligations outstanding during the periods. During the three and six-month periods ended September 29, 2017 , the Company recognized interest expense of $ 29.6 million and $ 58.6 million , respectively, on its debt obligations outstanding during the periods. |
OTHER CHARGES (INCOME), NET
OTHER CHARGES (INCOME), NET | 6 Months Ended |
Sep. 28, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER CHARGES (INCOME), NET During the six-month period ended September 28, 2018 , the Company recognized other income of $80.4 million , primarily driven by a $87.3 million gain on the deconsolidation of AutoLab. Refer to note 2 for further details of the deconsolidation. During the six-month period ended September 29, 2017 , the Company deconsolidated Elementum SCM (Cayman) Ltd and recognized a gain on deconsolidation of approximately $151.6 million with no related tax impact, which is included in other charges (income), net on the condensed consolidated statement of operations. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Sep. 28, 2018 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Foreign Currency Contracts The Company enters into short-term foreign currency derivatives contracts, including forward, swap, and options contracts to hedge only those currency exposures associated with certain assets and liabilities, primarily accounts receivable and accounts payable, and cash flows denominated in non-functional currencies. Gains and losses on the Company's derivative contracts are designed to offset losses and gains on the assets, liabilities and transactions hedged, and accordingly, generally do not subject the Company to risk of significant accounting losses. The Company hedges committed exposures and does not engage in speculative transactions. The credit risk of these derivative contracts is minimized since the contracts are with large financial institutions and accordingly, fair value adjustments related to the credit risk of the counterparty financial institution were not material. As of September 28, 2018 , the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $8.3 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 2,258,000 — $ 328,494 $ — EUR 74,296 38,747 87,302 45,635 HUF 27,835,000 — 101,026 — ILS 179,000 5,250 49,890 1,463 MXN 4,590,000 — 242,508 — MYR 405,700 45,000 98,135 10,885 RON 180,700 — 45,570 — SGD 47,500 — 34,799 — Other N/A N/A 37,295 5,436 1,025,019 63,419 Other Foreign Currency Contracts CAD 394,519 416,218 304,213 320,945 CNY 1,552,000 — 226,025 — EUR 1,722,006 1,884,924 2,023,008 2,214,953 GBP 36,557 64,161 48,180 84,499 HUF 89,504,773 97,417,006 324,854 353,571 ILS 224,300 — 62,516 — INR 5,735,497 8,205,341 79,226 113,127 MXN 2,611,896 2,050,476 137,997 108,335 MYR 643,720 341,430 155,710 82,589 SEK 467,158 546,573 52,141 62,010 SGD 88,850 49,740 65,092 36,440 Other N/A N/A 89,580 256,393 3,568,542 3,632,862 Total Notional Contract Value in USD $ 4,593,561 $ 3,696,281 As of September 28, 2018 , 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 September 28, 2018 , and March 31, 2018 , 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. Deferred losses were $11.8 million as of September 28, 2018 , and are expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of interest and other, net in the condensed consolidated statements of operations. The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet September 28, March 31, Balance Sheet September 28, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 10,317 $ 19,422 Other current liabilities $ 24,621 $ 7,065 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 9,970 $ 23,912 Other current liabilities $ 8,259 $ 18,246 The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Sep. 28, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component, net of tax, are as follows: Three-Month Periods Ended September 28, 2018 September 29, 2017 Unrealized loss on Foreign currency Total Unrealized loss on derivative Foreign currency Total (In thousands) Beginning balance $ (76,649 ) $ (94,185 ) $ (170,834 ) $ (34,595 ) $ (84,881 ) $ (119,476 ) Other comprehensive gain (loss) before reclassifications 945 (6,622 ) (5,677 ) (3,865 ) 9,478 5,613 Net (gains) losses reclassified from accumulated other comprehensive loss 20,130 — 20,130 (10,010 ) — (10,010 ) Net current-period other comprehensive gain (loss) 21,075 (6,622 ) 14,453 (13,875 ) 9,478 (4,397 ) Ending balance $ (55,574 ) $ (100,807 ) $ (156,381 ) $ (48,470 ) $ (75,403 ) $ (123,873 ) Six-Month Periods Ended September 28, 2018 September 29, 2017 Unrealized loss on Foreign currency Total Unrealized loss on derivative Foreign currency Total (In thousands) Beginning balance $ (35,746 ) $ (50,099 ) $ (85,845 ) $ (32,426 ) $ (95,717 ) $ (128,143 ) Other comprehensive gain (loss) before reclassifications (40,714 ) (50,708 ) (91,422 ) (845 ) 20,314 19,469 Net (gains) losses reclassified from accumulated other comprehensive loss 20,886 — — 20,886 (15,199 ) — (15,199 ) Net current-period other comprehensive gain (loss) (19,828 ) (50,708 ) (70,536 ) (16,044 ) 20,314 4,270 Ending balance $ (55,574 ) $ (100,807 ) $ (156,381 ) $ (48,470 ) $ (75,403 ) $ (123,873 ) Substantially all unrealized losses relating to derivative instruments and other, reclassified from accumulated other comprehensive loss for the three and six-month periods ended September 28, 2018 were recognized as a component of cost of sales in the condensed consolidated statement of operations, which primarily relate to the Company’s foreign currency contracts accounted for as cash flow hedges. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION | 6 Months Ended |
Sep. 28, 2018 | |
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 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. 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, which are included in other current assets as of September 28, 2018 and March 31, 2018 , 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. 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 $950.0 million for the Global Program, of which $775.0 million is committed and $175.0 million is uncommitted, and $250.0 million for the North American Program, of which $210.0 million is committed and $40.0 million is uncommitted. Both programs require a minimum level of deferred purchase price receivable to be retained by the Company in connection with the sales. The Company services, administers and collects the receivables on behalf of the special purpose entities and receives a servicing fee of 0.1% to 0.5% of serviced receivables per annum. Servicing fees recognized during the three-month and six-month periods ended September 28, 2018 , and September 29, 2017 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. The Company's deferred purchase price receivables relating to its asset-backed securitization program are recorded initially at fair value 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. As of September 28, 2018 , and March 31, 2018 , 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 during the six-month periods ended September 28, 2018 and September 29, 2017 were included as cash provided by operating activities in the condensed consolidated statements of cash flows. We recognize these proceeds net of the deferred purchase price, consisting of a receivable from the purchasers that entitles us to certain collections on the receivable. We recognize the collection of the deferred purchase price in net cash provided by investing activities in the condensed consolidated statements of cash flows as cash collections of deferred purchase price. As of September 28, 2018 , approximately $1.3 billion of accounts receivable had been sold to the special purpose entities under the ABS Programs for which the Company had received net cash proceeds of approximately $1.0 billion and deferred purchase price receivables of $304.3 million . As of March 31, 2018 , 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 $1.1 billion and deferred purchase price receivables of $445.4 million . The deferred purchase price balances as of September 28, 2018 and March 31, 2018, also represent the non-cash beneficial interest obtained in exchange for securitized receivables. For the six-month periods ended September 28, 2018 and September 29, 2017 , cash flows from sales of receivables under the ABS Programs consisted of approximately $3.7 billion and $4.0 billion , respectively, for transfers of receivables, and approximately $1.8 billion and $2.5 billion , respectively, for collection on deferred purchase price receivables. The Company's cash flows from transfer of receivables consist primarily of proceeds from collections reinvested in revolving-period transfers. Cash flows from new transfers were not significant for all periods presented. Trade Accounts Receivable Sale Program 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 $463.2 million and $286.4 million as of September 28, 2018 and March 31, 2018 , respectively. For the six-month periods ended September 28, 2018 and September 29, 2017 , total accounts receivable sold to certain third-party banking institutions was approximately $1.4 billion and $0.6 billion , respectively, primarily due to certain customers transferring from the ABS Programs to the Trade Account Receivable Sale Program. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows. |
FAIR VALUE MEASUREMENT OF ASSET
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | 6 Months Ended |
Sep. 28, 2018 | |
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. All contingent considerations have been paid as of March 31, 2018. There were no transfers between levels in the fair value hierarchy during the six-month periods ended September 28, 2018 and September 29, 2017 . Financial Instruments Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 28, 2018 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) $ — $ 451,551 $ — $ 451,551 Foreign exchange contracts (Note 8) — 20,287 — 20,287 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 6,267 76,021 — 82,288 Liabilities: 0.003 Foreign exchange contracts (Note 8) $ — $ (32,880 ) $ — $ (32,880 ) Fair Value Measurements as of March 31, 2018 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) $ — $ 452,622 $ — $ 452,622 Foreign exchange contracts (Note 8) — 43,334 — 43,334 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,196 67,532 — 74,728 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (25,311 ) $ — $ (25,311 ) Other financial instruments The following table presents the Company’s major debts not carried at fair value: As of September 28, 2018 As of March 31, 2018 Carrying Fair Carrying Fair Fair Value (In thousands) 4.625% Notes due February 2020 $ 500,000 $ 507,031 $ 500,000 $ 513,596 Level 1 Term Loan, including current portion, due in installments through November 2021 679,688 683,086 687,813 689,966 Level 1 Term Loan, including current portion, due in installments through June 2022 471,094 473,449 483,656 485,470 Level 1 5.000% Notes due February 2023 500,000 513,830 500,000 525,292 Level 1 4.750% Notes due June 2025 596,599 605,146 596,387 627,407 Level 1 Euro Term Loan due September 2020 55,804 55,804 59,443 59,443 Level 1 Euro Term Loan due January 2022 117,481 117,481 123,518 123,518 Level 1 Total $ 2,920,666 $ 2,955,827 $ 2,950,817 $ 3,024,692 The Company values its Euro Term Loans due September 2020 and January 2022 based on the current market rate, and as of September 28, 2018 , the carrying amounts approximate 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 DIVESTITURES
BUSINESS AND ASSET DIVESTITURES | 6 Months Ended |
Sep. 28, 2018 | |
Business Combinations [Abstract] | |
BUSINESS AND ASSET DIVESTITURES | BUSINESS AND ASSET DIVESTITURES During the three-month period ended September 28, 2018, the Company divested its China-based Multek operations, for proceeds of approximately $264.4 million , net of cash. The Company transferred approximately $231.4 million of net assets, primarily property and equipment, accounts receivable, and accounts payable. Further, the Company incurred various selling transaction costs as part of this divestiture and allocated approximately $19.0 million of goodwill to the divested business. This transaction resulted in the recognition of an immaterial loss which is included in other charges (income), net in the condensed consolidated statements of operations as of September 28, 2018 . Pro-forma results of operations for this divestiture have not been presented because the effect was not material to the Company's consolidated financial results for all periods presented. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and other legal matters In connection with the matters described below, the Company has accrued for loss contingencies where it believes that losses are probable and estimable. The amounts accrued are not material. Although it is reasonably possible that actual losses could be in excess of the Company’s accrual, the Company is unable to estimate a reasonably possible loss or range of loss in excess of its accrual, except as discussed below, due to various reasons, including, among others, that: (i) the proceedings are in early stages or no claims has been asserted, (ii) specific damages have not been sought in all of these matters, (iii) damages, if asserted, are considered unsupported and/or exaggerated, (iv) there is uncertainty as to the outcome of pending appeals, motions, or settlements, (v) there are significant factual issues to be resolved, and/or (vi) there are novel legal issues or unsettled legal theories presented. Any such excess loss could have a material adverse effect on the Company’s results of operations or cash flows for a particular period or on the Company’s financial condition. In addition, the Company provides design and engineering services to its customers and also designs and makes its own products. As a consequence of these activities, its customers are requiring the Company to take responsibility for intellectual property to a greater extent than in its manufacturing and assembly businesses. Although the Company believes that its intellectual property assets and licenses are sufficient for the operation of its business as it currently conducts it, from time to time third parties do assert patent infringement claims against the Company or its customers. If and when third parties make assertions regarding the ownership or right to use intellectual property, the Company could be required to either enter into licensing arrangements or to resolve the issue through litigation. Such license rights might not be available to the Company on commercially acceptable terms, if at all, and any such litigation might not be resolved in its favor. Additionally, litigation could be lengthy and costly and could materially harm the Company's financial condition regardless of the outcome. The Company also could be required to incur substantial costs to redesign a product or re-perform design services. From time to time, the Company enters into IP licenses (e.g., patent licenses and software licenses) with third parties which obligate the Company to report covered behavior to the licensor and pay license fees to the licensor for certain activities or products, or that enable our use of third party technologies. The Company may also decline to enter into licenses for intellectual property that it does not think is useful for or used in its operations, or for which its customers or suppliers have licenses or have assumed responsibility. Given the diverse and varied nature of its business and the location of its business around the world, certain activities the Company performs, such as providing assembly services in China and India, may fall outside the scope of those licenses or may not be subject to the applicable intellectual property rights. The Company's licensors may disagree and claim royalties are owed for such activities. In addition, the basis (e.g. base price) for any royalty amounts owed are audited by licensors and may be challenged. Some of these disagreements may lead to claims and litigation that might not be resolved in the Company's favor. Additionally, litigation could be lengthy and costly and could materially harm the Company's financial condition regardless of the outcome. In March 2018, the Company received an inquiry from a licensor referencing a patent license agreement, and requesting information relating to royalties for products that it assembles for a customer in China. If any of these inquiries result in a claim, the Company intends to contest and defend against any such claim vigorously. If a claim is asserted and the Company is unsuccessful in its defense, a material loss is reasonably possible. The Company cannot predict or estimate an amount or reasonable range of outcomes with respect to the matter. On May 8, 2018, a putative class action was filed in the Northern District of California against the Company and certain officers alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, promulgated thereunder, alleging misstatements and/or omissions in certain of the Company’s financial results, press releases and SEC filings made during the putative class period of January 26, 2017 through April 26, 2018. On October 1, 2018, the Court appointed lead plaintiff and lead plaintiff’s counsel in the case. On October 15, 2018, the Court issued an order providing that lead plaintiff shall file an amended complaint by November 30, 2018 and that defendants shall respond to the amended complaint by January 10, 2019, and setting the hearing on defendants’ motion to dismiss for March 21, 2019. The Court also set a case management conference for December 12, 2018. The Company believes that the claims are without merit and intends to vigorously defend this case. On April 21, 2016, SunEdison, Inc. (together with certain of its subsidiaries, "SunEdison") filed for protection under Chapter 11 of the U.S. Bankruptcy Code. During the fiscal year ended March 31, 2016, the Company recognized a bad debt reserve charge of $61.0 million associated with its outstanding SunEdison receivables and accepted return of previously shipped inventory of approximately $90.0 million . SunEdison stated in schedules filed with the Bankruptcy Court that, within the 90 days preceding SunEdison's bankruptcy filing, the Company received approximately $98.6 million of inventory and cash transfers of $69.2 million , which in aggregate represents the Company's estimate of the maximum reasonably possible contingent loss. On April 15, 2018, a subsidiary of the Company together with its subsidiaries and affiliates, entered into a tolling agreement with the trustee of the SunEdison Litigation Trust to toll any applicable statute of limitations or other time-related defense that might exist in regards to any potential claims that either party might be able to assert against the other for a period that will end at the earlier to occur of: (a) 60 days after a party provides written notice of termination; (b) six years from the effective date of April 15, 2018; or (c) such other date as the parties may agree in writing. No preference claims have been asserted against the Company and consideration has been given to the related contingencies based on the facts currently known. The Company has a number of affirmative and direct defenses to any potential claims for recovery and intends to vigorously defend any such claim, if asserted. One of the Company's Brazilian subsidiaries has received related assessments for certain sales and import taxes. There are six tax assessments totaling 346 million Brazilian reals (approximately USD $85.24 million based on the exchange rate as of September 28, 2018 ). The assessments are in various stages of the review process at the administrative level and no tax proceeding has been finalized yet. The Company believes there is no legal basis for these assessments and has meritorious defenses and will continue to vigorously oppose all of these assessments, as well as any future assessments. The Company does not expect final judicial determination on any of these claims for several years. In addition to the matters discussed above, from time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of these matters, which are in excess of amounts already accrued in the Company’s consolidated balance sheets, would not be material to the financial statements as a whole. |
SHARE REPURCHASES
SHARE REPURCHASES | 6 Months Ended |
Sep. 28, 2018 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
SHARE REPURCHASES | SHARE REPURCHASES During the three-month and six-month periods ended September 28, 2018 , the Company repurchased 4.4 million shares at an aggregate purchase price of $60.0 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 16, 2018 . As of September 28, 2018 , shares in the aggregate amount of $453.5 million were available to be repurchased under the current plan. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Sep. 28, 2018 | |
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, customer related asset impairments charges, the new revenue standard adoption impact, contingencies and other, other charges (income), net and interest and other, net. Selected financial information by segment is in the table below. For the six-month period ended September 28, 2018 , we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, as further described in note 1 to the condensed consolidated financial statements. The comparative information for the three and six-month periods ended September 29, 2017 has not been restated and continues to be reported under the accounting standards in effect at the time: Three-Month Periods Ended Six-Month Periods Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 (In thousands) Net sales: Communications & Enterprise Compute $ 2,140,797 $ 1,901,057 $ 4,095,083 $ 3,874,390 Consumer Technologies Group 1,795,883 1,755,143 3,603,817 3,267,112 Industrial & Emerging Industries 1,565,953 1,454,539 3,012,264 2,845,138 High Reliability Solutions 1,207,971 1,159,681 2,423,396 2,292,052 $ 6,710,604 $ 6,270,420 $ 13,134,560 $ 12,278,692 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 62,855 $ 42,733 $ 108,873 $ 91,335 Consumer Technologies Group 31,212 30,722 57,769 48,726 Industrial & Emerging Industries 65,857 50,945 117,218 106,322 High Reliability Solutions 89,589 92,364 183,123 182,576 Corporate and Other (25,983 ) (28,438 ) (55,745 ) (62,716 ) Total segment income 223,530 188,326 411,238 366,243 Reconciling items: Intangible amortization 18,234 16,376 36,751 36,277 Stock-based compensation 19,081 20,464 40,034 42,260 Customer related asset impairments (1) 30,100 4,753 47,464 4,753 New revenue standard adoption impact (Note 1 & Note 3) — — 9,291 — Contingencies and other (2) (269 ) 43,933 24,859 43,933 Other charges (income), net (Note 7) 6,530 (143,167 ) (80,394 ) (179,332 ) Interest and other, net 41,060 27,554 82,802 54,430 Income before income taxes $ 108,794 $ 218,413 $ 250,431 $ 363,922 (1) Customer related asset impairments for the three and six-month periods ended September 28, 2018 relate to additional provision for doubtful accounts receivable, inventory and impairment of other assets for certain customers experiencing significant financial difficulties as well as $30 million of exit costs primarily related to our estimated impairment of fixed assets considered not recoverable in conjunction with the wind-down of our NIKE footwear manufacturing operations in Mexico. (2) Contingencies and other during the three and six-month periods ended September 28, 2018 primarily consists of costs incurred relating to the independent investigation undertaken by the Audit Committee of the Company’s Board of Directors which was completed in June 2018, along with certain restructuring charges incurred during our first quarter of fiscal year 2019 offset by certain immaterial reversals in the second quarter of fiscal year 2019. During the three and six-month periods ended September 29, 2017 , the Company incurred charges in connection with certain legal matters, for loss contingencies where it believed that losses were probable and estimable. Additionally, the Company incurred various other charges predominately related to damages incurred from a typhoon that impacted a China facility, along with certain restructuring charges primarily related to severance for rationalization at existing sites and corporate functions. 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. |
BANK BORROWINGS AND LONG TERM D
BANK BORROWINGS AND LONG TERM DEBT | 6 Months Ended |
Sep. 28, 2018 | |
Debt Disclosure [Abstract] | |
BANK BORROWINGS AND LONG TERM DEBT | BANK BORROWINGS AND LONG TERM DEBT Term Loan Facility due September 2023 In July 2018, the Company entered into a $200 million term loan facility (the "Facility"). The Facility will be used to fund capital expenditure to support our expansion plan for India. The availability period during which drawdown can be made will be from the date of the agreement to and including June 30, 2019. The maximum maturity of each drawdown will be 5 years from the funded Capex shipment date. As a result, the longest maturity date of any future drawdown under the Facility will be June 30, 2024. Borrowings under this term loan bear interest at LIBOR plus a margin of 1.15% . The Facility is unsecured, guaranteed by the Company, 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 certain exceptions and limitations. This Facility agreement also requires that the Company maintain a maximum ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation and amortization), and a minimum interest coverage ratio, as defined therein, during its term. As of September 28, 2018, the Company was in compliance with the covenants under this term loan agreement. |
ORGANIZATION OF THE COMPANY A_2
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 enterprise products, 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, and mobile devices; and including various supply chain solutions for notebook personal computers, tablets, and printers; • Industrial and Emerging Industries ("IEI"), which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, electric vehicle infrastructure, smart solar energy, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation, and kiosks; and • High Reliability Solutions ("HRS"), which is comprised of health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies. The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance) and supply chain management software solutions and component product offerings (including flexible printed circuit boards and power adapters and chargers). Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, 2018 contained in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six -month periods ended September 28, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019 . The first quarters for fiscal years 2019 and 2018 ended on June 29, 2018, which is comprised of 90 days in the period, and June 30, 2017, which is comprised of 91 days in the period, respectively. The second quarters for fiscal years 2019 and 2018 ended on September 28, 2018 and September 29, 2017 , which are comprised of 91 days in both periods. The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. The associated noncontrolling owners' interest in the income or losses of these companies is not material to the Company's results of operations for all periods presented, and is classified as a component of interest and other, net, in the condensed consolidated statements of operations. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncement In January 2017, the FASB issued Accounting Standard Update (ASU) No. 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business” to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted the guidance on a prospective basis during the first quarter of fiscal year 2019, which did not have a material impact to its financial position as there were no acquisitions during the period. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)." The ASU is intended to address specific cash flow issues with the objective of reducing the existing diversity in practice and provide guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows. The majority of the guidance in ASU 2016-15 is consistent with our current cash flow classification. However, cash receipts on the deferred purchase price from the Company's asset-backed securitization programs described in note 10 will be classified as cash flows from investing activities instead of the Company's former presentation as cash flows from operations. The Company adopted the guidance during the first quarter of fiscal year 2019 using a monthly approach to track cash flows on deferred purchase price and retrospectively adjusted cash flows from operating and investing activities for fiscal year 2018. Commencing with the quarter ending September 28, 2018, the Company changed to a method based on daily activity and retrospectively adjusted cash flows from operating and investing activities for the six -month period ended September 29, 2017. The Company recorded $1.8 billion of cash receipts on the deferred purchase price from the Company's asset-backed securitization programs for the six -month period ended September 28, 2018 and reclassified $2.5 billion of cash receipts on the deferred purchase price for the six -month period ended September 29, 2017, from cash flows from operating activities to cash flows from investing activities. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This guidance generally requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. This guidance also requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The Company adopted this guidance on April 1, 2018 with an insignificant impact on the Company's financial position, results of operations or cash flows. In February 2018, the FASB issued ASU 2018-03 "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard comes as an addition to ASU 2016-01 which the Company adopted in the first quarter of fiscal year 2019. This update includes amendments to clarify certain aspects of the guidance issued in Update 2016-01. The Company adopted this guidance during the second quarter of fiscal year 2019 with an immaterial impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" (also referred to as Accounting Standard Codification 606 ("ASC 606")) which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In order to meet this requirement, the entity must apply the following steps: (i) identify the contracts 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 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 Company adopted the standard on April 1, 2018 using the modified retrospective approach by applying the guidance to all open contracts at the adoption date and has implemented revised accounting policies, new operational and financial reporting processes, enhanced systems capabilities and relevant internal controls. As part of adopting ASC 606, revenue for certain customer contracts where the Company is manufacturing products for which there is no alternative use and the Company has an enforceable right to payment including a reasonable profit for work-in-progress inventory will be recognized over time (i.e., as we manufacture the product) instead of upon shipment of products. In addition to the following disclosures, note 3 provides further disclosures required by the new standard. The cumulative effect of change made to our April 1, 2018 consolidated balance sheet for the adoption of ASC 606 was as follows: Condensed Consolidated Balance Sheet Impact of Adopting ASC 606 (In thousands) Balance at March 31, 2018 Adjustments Balance at April 1, 2018 ASSETS Contract assets — 412,787 412,787 Inventories 3,799,829 (409,252 ) 3,390,577 Other current assets 1,380,466 (51,479 ) 1,328,987 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 1,719,418 (87,897 ) 1,631,521 Other liabilities 531,587 2,098 533,685 Accumulated deficit (3,144,114 ) (37,855 ) (3,181,969 ) The adoption of ASC 606 resulted in the establishment of contract asset and contract liability balance sheet accounts and in the reclassification to these new accounts from certain asset and liability accounts, primarily inventories. The increase in accumulated deficit in the table above reflects $37.9 million of net adjustments to the balance sheet as of April 1, 2018, resulting from the adoption of ASC 606 primarily related to certain customer contracts requiring an over-time method of revenue recognition. The declines in inventories and other current asset reflect reclassifications to contract assets due to the earlier recognition of certain costs of products sold for over-time contracts. The decline in other current liabilities is primarily due to the reclassification of payments from customers in advance of work performed to contract assets to reflect the net position of the related over-time contracts. The following tables summarize the impacts of ASC 606 adoption on the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations: Condensed Consolidated Balance Sheet As of September 28, 2018 Impact of Adopting ASC 606 (In thousands) As Reported Adjustments Balance without ASC 606 Adoption ASSETS Contract assets 418,158 (418,158 ) — Inventories 4,442,855 415,623 4,858,478 Other current assets 935,030 8,059 943,089 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 1,456,519 34,327 1,490,846 Accumulated deficit (2,902,492 ) (38,520 ) (2,941,012 ) Condensed Consolidated Statement of Operations Impact of Adopting ASC 606 Three-months ended September 28, 2018 Six-months ended September 28, 2018 (In thousands, except per share amounts) As Reported Adjustments Balance without ASC 606 Adoption As Reported Adjustments Balance without ASC 606 Adoption Net sales $ 6,710,604 $ (115,533 ) $ 6,595,071 $ 13,134,560 $ (27,237 ) $ 13,107,323 Cost of sales 6,308,303 (111,917 ) 6,196,386 12,354,405 (26,573 ) 12,327,832 Gross profit 402,301 (3,616 ) 398,685 780,155 (664 ) 779,491 Net income $ 86,885 $ (3,616 ) $ 83,269 $ 202,920 $ (664 ) $ 202,256 To align contractual terms across the vast majority of customers to allow the Company to efficiently and accurately manage its contracts, in the first quarter of fiscal year 2019, the Company waived certain contractual rights to bill profit for work in progress in the event of a contract termination which is expected to be infrequent. These modifications resulted in revenue from these customers being recognized upon shipment of products, rather than over time (i.e., as we manufacture products) as further explained in note 3. The result of the amendments for the six-month period ended September 28, 2018 , was to reduce revenue and gross profit by approximately $132.7 million and $9.3 million , respectively, compared to amounts that would have been reported both (i) under ASC 606 had we not amended the contracts, and (ii) had we not adopted ASC 606. For the three-month period ended September 28, 2018 the as reported revenue was approximately $115.5 million higher, and the gross profit $3.6 million higher, than they would have been without ASC 606 adoption primarily due to additional inventory build up as of September 28, 2018 for those customer contracts that meet the criteria for over-time recognition (see note 3) partially offset by a decline in the aggregate average gross profit margin for those customers due to the increasing mix of lower margin customers included in the CTG segment. For the six-month period ended September 28, 2018 the as reported revenue was approximately $27.2 million higher and the gross profit approximately $0.7 million higher than it would have been without ASC 606 adoption. Additional revenue of $160.0 million was reported under ASC 606 due to the accelerated timing of recognition of revenue for contracts which meet the criteria for over-time recognition (see note 3). Approximately $10.0 million of additional gross profit was recognized on the customers qualifying for accelerated revenue recognition. These increases were offset by reductions of $132.7 million of revenue and $9.3 million of gross profit respectively as a result of the waiver of contracts noted above. There was no material tax impact for the three and six-month periods ended September 28, 2018 from adopting ASC 606. The Company applies the following practical expedients: • The Company elected to not disclose information about remaining performance obligations as its performance obligations generally have an expected duration of one year or less. • In accordance with ASC 606-10-25-18B the Company will account for certain shipping and handling as activities to fulfill the promise to transfer the good, instead of a promised service to its customer. • In accordance with ASC 606-10-32-18 the Company elected to not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15 "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” to provide guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e. a service contract. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, as well as requires additional quantitative and qualitative disclosures. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company is still evaluating the impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement”, which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting" with the objective of simplifying several aspects of the accounting for nonemployee share-based payment transactions in current GAAP. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" with the objective of improving the financial reporting of hedging relationships and simplifying the application of the hedge accounting guidance in current GAAP. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2020. In January 2017, the FASB issued ASU 2017-04 "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" to simplify the subsequent measurement of goodwill by eliminating step 2 from the goodwill impairment test. This guidance requires that the change be applied on a prospective basis, and it is effective for the Company beginning in the first quarter of fiscal year 2021, with early application permitted. The Company is currently assessing the impact of the new guidance and the timing of adoption. In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)" intended to improve financial reporting on leasing transactions. The new lease guidance will require entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. The guidance will also enhance existing disclosure requirements relating to those leases. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASC 842. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and nonlease components when certain conditions are met. Also in July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases", which clarifies how to apply certain aspects of the new leases standard, ASC 842. The amendments address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. The amendments have the same effective date and transition requirements as the new leases standard. The Company intends to adopt the new lease guidance when it becomes effective in the first quarter of fiscal year 2020 using a modified retrospective approach. The Company believes the new guidance will have a material impact on its consolidated balance sheets upon adoption. |
ORGANIZATION OF THE COMPANY A_3
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of change made to our April 1, 2018 consolidated balance sheet for the adoption of ASC 606 was as follows: Condensed Consolidated Balance Sheet Impact of Adopting ASC 606 (In thousands) Balance at March 31, 2018 Adjustments Balance at April 1, 2018 ASSETS Contract assets — 412,787 412,787 Inventories 3,799,829 (409,252 ) 3,390,577 Other current assets 1,380,466 (51,479 ) 1,328,987 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 1,719,418 (87,897 ) 1,631,521 Other liabilities 531,587 2,098 533,685 Accumulated deficit (3,144,114 ) (37,855 ) (3,181,969 ) The adoption of ASC 606 resulted in the establishment of contract asset and contract liability balance sheet accounts and in the reclassification to these new accounts from certain asset and liability accounts, primarily inventories. The increase in accumulated deficit in the table above reflects $37.9 million of net adjustments to the balance sheet as of April 1, 2018, resulting from the adoption of ASC 606 primarily related to certain customer contracts requiring an over-time method of revenue recognition. The declines in inventories and other current asset reflect reclassifications to contract assets due to the earlier recognition of certain costs of products sold for over-time contracts. The decline in other current liabilities is primarily due to the reclassification of payments from customers in advance of work performed to contract assets to reflect the net position of the related over-time contracts. The following tables summarize the impacts of ASC 606 adoption on the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations: Condensed Consolidated Balance Sheet As of September 28, 2018 Impact of Adopting ASC 606 (In thousands) As Reported Adjustments Balance without ASC 606 Adoption ASSETS Contract assets 418,158 (418,158 ) — Inventories 4,442,855 415,623 4,858,478 Other current assets 935,030 8,059 943,089 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 1,456,519 34,327 1,490,846 Accumulated deficit (2,902,492 ) (38,520 ) (2,941,012 ) Condensed Consolidated Statement of Operations Impact of Adopting ASC 606 Three-months ended September 28, 2018 Six-months ended September 28, 2018 (In thousands, except per share amounts) As Reported Adjustments Balance without ASC 606 Adoption As Reported Adjustments Balance without ASC 606 Adoption Net sales $ 6,710,604 $ (115,533 ) $ 6,595,071 $ 13,134,560 $ (27,237 ) $ 13,107,323 Cost of sales 6,308,303 (111,917 ) 6,196,386 12,354,405 (26,573 ) 12,327,832 Gross profit 402,301 (3,616 ) 398,685 780,155 (664 ) 779,491 Net income $ 86,885 $ (3,616 ) $ 83,269 $ 202,920 $ (664 ) $ 202,256 |
BALANCE SHEET ITEMS (Tables)
BALANCE SHEET ITEMS (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
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 September 28, 2018 As of March 31, 2018 (In thousands) Raw materials $ 3,512,523 $ 2,760,410 Work-in-progress 407,998 450,569 Finished goods 522,334 588,850 $ 4,442,855 $ 3,799,829 |
Schedule of goodwill | The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the six-month period ended September 28, 2018 : HRS CTG IEI CEC Amount (In thousands) Balance, beginning of the year $ 550,983 $ 107,748 $ 337,707 $ 124,732 $ 1,121,170 Divestitures (1) (4,006 ) (4,412 ) (4,120 ) (6,391 ) (18,929 ) Foreign currency translation adjustments (2) (19,718 ) — — — (19,718 ) Balance, end of the period $ 527,259 $ 103,336 $ 333,587 $ 118,341 $ 1,082,523 (1) During the six-month period ended September 28, 2018 , the Company divested its China-based Multek operations, and as a result, recorded an aggregate reduction of goodwill of $18.9 million , which is included in the loss on sale recorded in other charges (income), net on the condensed consolidated statement of operation. See note 12 for additional information. (2) During the six-month period ended September 28, 2018 , the Company recorded $19.7 million of foreign currency translation adjustments primarily related to the goodwill associated with the acquisition of Mirror Controls International ("MCi") and AGM Automotive ("AGM"), as the U.S. Dollar fluctuated against foreign currencies. |
Schedule of components of acquired intangible assets | The components of acquired intangible assets are as follows: As of September 28, 2018 As of March 31, 2018 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 303,361 $ (98,112 ) $ 205,249 $ 306,943 $ (79,051 ) $ 227,892 Licenses and other intangibles 287,024 (116,866 ) 170,158 304,007 (107,466 ) 196,541 Total $ 590,385 $ (214,978 ) $ 375,407 $ 610,950 $ (186,517 ) $ 424,433 |
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) 2019 (1) $ 35,987 2020 66,906 2021 62,515 2022 53,678 2023 45,421 Thereafter 110,900 Total amortization expense $ 375,407 ____________________________________________________________ (1) Represents estimated amortization for the remaining six-month period ending March 31, 2019 . |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets | The following table summarizes the activity in the Company's contract assets during the six -month period ended September 28, 2018 (in thousands): Contract Assets Beginning balance, April 1, 2018 $ — Cumulative effect adjustment at April 1, 2018 412,787 Revenue recognized 3,566,140 Amounts collected or invoiced (3,560,769 ) Ending balance, September 28, 2018 $ 418,158 |
Disaggregation of Revenue | The following table presents the Company’s revenue disaggregated based on timing of transfer - point in time and overtime - for the three-month and six -month periods ended September 28, 2018 (in thousands), respectively: Three-month Period Ended September 28, 2018 HRS CTG IEI CEC Total Timing of Transfer Point in time $ 893,141 $ 1,203,696 $ 1,089,319 $ 1,519,041 $ 4,705,197 Over time 314,830 592,187 476,634 621,756 2,005,407 Total segment $ 1,207,971 $ 1,795,883 $ 1,565,953 $ 2,140,797 $ 6,710,604 Six-month Period Ended September 28, 2018 HRS CTG IEI CEC Total Timing of Transfer Point in time $ 1,898,321 $ 2,504,333 $ 2,153,218 $ 3,012,548 $ 9,568,420 Over time 525,075 1,099,484 859,046 1,082,535 3,566,140 Total segment $ 2,423,396 $ 3,603,817 $ 3,012,264 $ 4,095,083 $ 13,134,560 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Schedule of share-based compensation expense | The following table summarizes the Company’s share-based compensation expense: Three-Month Periods Ended Six-Month Periods Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 (In thousands) Cost of sales $ 4,767 $ 4,985 $ 10,171 $ 8,304 Selling, general and administrative expenses 14,314 15,479 29,863 33,956 Total share-based compensation expense $ 19,081 $ 20,464 $ 40,034 $ 42,260 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
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 Six-Month Periods Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 (In thousands, except per share amounts) Basic earnings per share: Net income $ 86,885 $ 205,086 $ 202,920 $ 329,796 Shares used in computation: Weighted-average ordinary shares outstanding 531,503 531,313 530,426 530,790 Basic earnings per share 0.16 0.39 0.38 0.62 Diluted earnings per share: Net income $ 86,885 $ 205,086 $ 202,920 $ 329,796 Shares used in computation: Weighted-average ordinary shares outstanding 531,503 531,313 530,426 530,790 Weighted-average ordinary share equivalents from stock options and awards (1) (2) 2,955 4,706 4,601 5,521 Weighted-average ordinary shares and ordinary share equivalents outstanding 534,458 536,019 535,027 536,311 Diluted earnings per share 0.16 0.38 0.38 0.61 ____________________________________________________________ (1) An immaterial amount of options to purchase ordinary shares were excluded from the computation of diluted earnings per share during the three-month and six-month periods ended September 28, 2018 and September 29, 2017 , respectively, due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) Restricted share unit awards of 3.1 million for the three-month and six-month periods ended September 28, 2018 were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. An immaterial amount of anti-dilutive restricted share unit awards was excluded for the three-month and six-month periods ended September 29, 2017 . |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Summary of aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts | As of September 28, 2018 , the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $8.3 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 2,258,000 — $ 328,494 $ — EUR 74,296 38,747 87,302 45,635 HUF 27,835,000 — 101,026 — ILS 179,000 5,250 49,890 1,463 MXN 4,590,000 — 242,508 — MYR 405,700 45,000 98,135 10,885 RON 180,700 — 45,570 — SGD 47,500 — 34,799 — Other N/A N/A 37,295 5,436 1,025,019 63,419 Other Foreign Currency Contracts CAD 394,519 416,218 304,213 320,945 CNY 1,552,000 — 226,025 — EUR 1,722,006 1,884,924 2,023,008 2,214,953 GBP 36,557 64,161 48,180 84,499 HUF 89,504,773 97,417,006 324,854 353,571 ILS 224,300 — 62,516 — INR 5,735,497 8,205,341 79,226 113,127 MXN 2,611,896 2,050,476 137,997 108,335 MYR 643,720 341,430 155,710 82,589 SEK 467,158 546,573 52,141 62,010 SGD 88,850 49,740 65,092 36,440 Other N/A N/A 89,580 256,393 3,568,542 3,632,862 Total Notional Contract Value in USD $ 4,593,561 $ 3,696,281 |
Schedule of fair value of the derivative instruments utilized for foreign currency risk management purposes | The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet September 28, March 31, Balance Sheet September 28, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 10,317 $ 19,422 Other current liabilities $ 24,621 $ 7,065 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 9,970 $ 23,912 Other current liabilities $ 8,259 $ 18,246 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive loss by component, net of tax | The changes in accumulated other comprehensive loss by component, net of tax, are as follows: Three-Month Periods Ended September 28, 2018 September 29, 2017 Unrealized loss on Foreign currency Total Unrealized loss on derivative Foreign currency Total (In thousands) Beginning balance $ (76,649 ) $ (94,185 ) $ (170,834 ) $ (34,595 ) $ (84,881 ) $ (119,476 ) Other comprehensive gain (loss) before reclassifications 945 (6,622 ) (5,677 ) (3,865 ) 9,478 5,613 Net (gains) losses reclassified from accumulated other comprehensive loss 20,130 — 20,130 (10,010 ) — (10,010 ) Net current-period other comprehensive gain (loss) 21,075 (6,622 ) 14,453 (13,875 ) 9,478 (4,397 ) Ending balance $ (55,574 ) $ (100,807 ) $ (156,381 ) $ (48,470 ) $ (75,403 ) $ (123,873 ) Six-Month Periods Ended September 28, 2018 September 29, 2017 Unrealized loss on Foreign currency Total Unrealized loss on derivative Foreign currency Total (In thousands) Beginning balance $ (35,746 ) $ (50,099 ) $ (85,845 ) $ (32,426 ) $ (95,717 ) $ (128,143 ) Other comprehensive gain (loss) before reclassifications (40,714 ) (50,708 ) (91,422 ) (845 ) 20,314 19,469 Net (gains) losses reclassified from accumulated other comprehensive loss 20,886 — — 20,886 (15,199 ) — (15,199 ) Net current-period other comprehensive gain (loss) (19,828 ) (50,708 ) (70,536 ) (16,044 ) 20,314 4,270 Ending balance $ (55,574 ) $ (100,807 ) $ (156,381 ) $ (48,470 ) $ (75,403 ) $ (123,873 ) |
FAIR VALUE MEASUREMENT OF ASS_2
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 28, 2018 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) $ — $ 451,551 $ — $ 451,551 Foreign exchange contracts (Note 8) — 20,287 — 20,287 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 6,267 76,021 — 82,288 Liabilities: 0.003 Foreign exchange contracts (Note 8) $ — $ (32,880 ) $ — $ (32,880 ) Fair Value Measurements as of March 31, 2018 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) $ — $ 452,622 $ — $ 452,622 Foreign exchange contracts (Note 8) — 43,334 — 43,334 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 7,196 67,532 — 74,728 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (25,311 ) $ — $ (25,311 ) |
Schedule of debt not carried at fair value | The following table presents the Company’s major debts not carried at fair value: As of September 28, 2018 As of March 31, 2018 Carrying Fair Carrying Fair Fair Value (In thousands) 4.625% Notes due February 2020 $ 500,000 $ 507,031 $ 500,000 $ 513,596 Level 1 Term Loan, including current portion, due in installments through November 2021 679,688 683,086 687,813 689,966 Level 1 Term Loan, including current portion, due in installments through June 2022 471,094 473,449 483,656 485,470 Level 1 5.000% Notes due February 2023 500,000 513,830 500,000 525,292 Level 1 4.750% Notes due June 2025 596,599 605,146 596,387 627,407 Level 1 Euro Term Loan due September 2020 55,804 55,804 59,443 59,443 Level 1 Euro Term Loan due January 2022 117,481 117,481 123,518 123,518 Level 1 Total $ 2,920,666 $ 2,955,827 $ 2,950,817 $ 3,024,692 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Sep. 28, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by operating segment | Selected financial information by segment is in the table below. For the six-month period ended September 28, 2018 , we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings, as further described in note 1 to the condensed consolidated financial statements. The comparative information for the three and six-month periods ended September 29, 2017 has not been restated and continues to be reported under the accounting standards in effect at the time: Three-Month Periods Ended Six-Month Periods Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 (In thousands) Net sales: Communications & Enterprise Compute $ 2,140,797 $ 1,901,057 $ 4,095,083 $ 3,874,390 Consumer Technologies Group 1,795,883 1,755,143 3,603,817 3,267,112 Industrial & Emerging Industries 1,565,953 1,454,539 3,012,264 2,845,138 High Reliability Solutions 1,207,971 1,159,681 2,423,396 2,292,052 $ 6,710,604 $ 6,270,420 $ 13,134,560 $ 12,278,692 Segment income and reconciliation of income before tax: Communications & Enterprise Compute $ 62,855 $ 42,733 $ 108,873 $ 91,335 Consumer Technologies Group 31,212 30,722 57,769 48,726 Industrial & Emerging Industries 65,857 50,945 117,218 106,322 High Reliability Solutions 89,589 92,364 183,123 182,576 Corporate and Other (25,983 ) (28,438 ) (55,745 ) (62,716 ) Total segment income 223,530 188,326 411,238 366,243 Reconciling items: Intangible amortization 18,234 16,376 36,751 36,277 Stock-based compensation 19,081 20,464 40,034 42,260 Customer related asset impairments (1) 30,100 4,753 47,464 4,753 New revenue standard adoption impact (Note 1 & Note 3) — — 9,291 — Contingencies and other (2) (269 ) 43,933 24,859 43,933 Other charges (income), net (Note 7) 6,530 (143,167 ) (80,394 ) (179,332 ) Interest and other, net 41,060 27,554 82,802 54,430 Income before income taxes $ 108,794 $ 218,413 $ 250,431 $ 363,922 (1) Customer related asset impairments for the three and six-month periods ended September 28, 2018 relate to additional provision for doubtful accounts receivable, inventory and impairment of other assets for certain customers experiencing significant financial difficulties as well as $30 million of exit costs primarily related to our estimated impairment of fixed assets considered not recoverable in conjunction with the wind-down of our NIKE footwear manufacturing operations in Mexico. (2) Contingencies and other during the three and six-month periods ended September 28, 2018 primarily consists of costs incurred relating to the independent investigation undertaken by the Audit Committee of the Company’s Board of Directors which was completed in June 2018, along with certain restructuring charges incurred during our first quarter of fiscal year 2019 offset by certain immaterial reversals in the second quarter of fiscal year 2019. During the three and six-month periods ended September 29, 2017 , the Company incurred charges in connection with certain legal matters, for loss contingencies where it believed that losses were probable and estimable. Additionally, the Company incurred various other charges predominately related to damages incurred from a typhoon that impacted a China facility, along with certain restructuring charges primarily related to severance for rationalization at existing sites and corporate functions. |
ORGANIZATION OF THE COMPANY A_4
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash collections of deferred purchase price | $ 1,812,945 | $ 2,452,782 | |||
Cash reclassified to investing activities | 1,702,572 | 1,834,696 | |||
Cash reclassified from operating activities | (1,707,596) | (2,171,977) | |||
Accumulated deficit | $ (2,902,492) | (2,902,492) | $ (3,144,114) | ||
Net sales | 6,710,604 | $ 6,270,420 | 13,134,560 | 12,278,692 | |
Gross profit | 402,301 | 393,325 | 780,155 | $ 800,257 | |
Cumulative adjustment to revenue, modification of contract | 132,700 | ||||
Cumulative adjustment to gross profit, modification of contract | 9,300 | ||||
Cumulative adjustment to additional revenue for over-time revenue recognition | 160,000 | ||||
Cumulative adjustment to gross profit for over-time revenue recognition | 10,000 | ||||
Accounting Standards Update 2016-15 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash reclassified from operating activities | $ (800,000) | ||||
Adjustments | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accumulated deficit | (38,520) | (38,520) | $ (37,855) | ||
Net sales | (115,533) | (27,237) | |||
Gross profit | $ (3,616) | $ (664) |
ORGANIZATION OF THE COMPANY A_5
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | $ 418,158 | $ 0 | $ 0 |
Inventories | 4,442,855 | 3,799,829 | |
Other current assets | 935,030 | 1,380,466 | |
Other current liabilities | 1,456,519 | 1,719,418 | |
Other liabilities | 532,561 | 531,587 | |
Accumulated deficit | (2,902,492) | (3,144,114) | |
Balance without ASC 606 Adoption | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | 0 | 412,787 | |
Inventories | 4,858,478 | 3,390,577 | |
Other current assets | 943,089 | 1,328,987 | |
Other current liabilities | 1,490,846 | 1,631,521 | |
Other liabilities | 533,685 | ||
Accumulated deficit | (2,941,012) | $ (3,181,969) | |
Accounting Standards Update 2014-09 | Adjustments | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | (418,158) | 412,787 | |
Inventories | 415,623 | (409,252) | |
Other current assets | 8,059 | (51,479) | |
Other current liabilities | 34,327 | (87,897) | |
Other liabilities | 2,098 | ||
Accumulated deficit | $ (38,520) | $ (37,855) |
ORGANIZATION OF THE COMPANY A_6
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION - Condensed Consolidates Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | $ 6,710,604 | $ 6,270,420 | $ 13,134,560 | $ 12,278,692 |
Cost of sales | 6,308,303 | 5,877,095 | 12,354,405 | 11,478,435 |
Gross profit | 402,301 | 393,325 | 780,155 | 800,257 |
Net income | 86,885 | 205,086 | 202,920 | 329,796 |
Selling, general and administrative expenses | 227,683 | $ 274,149 | 490,565 | $ 524,960 |
Balance without ASC 606 Adoption | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 6,595,071 | 13,107,323 | ||
Cost of sales | 6,196,386 | 12,327,832 | ||
Gross profit | 398,685 | 779,491 | ||
Net income | 83,269 | 202,256 | ||
Accounting Standards Update 2014-09 | Adjustments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | (115,533) | (27,237) | ||
Cost of sales | (111,917) | (26,573) | ||
Gross profit | (3,616) | (664) | ||
Net income | $ (3,616) | $ (664) |
BALANCE SHEET ITEMS - Inventor
BALANCE SHEET ITEMS - Inventories (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
Inventories | ||
Raw materials | $ 3,512,523 | $ 2,760,410 |
Work-in-progress | 407,998 | 450,569 |
Finished goods | 522,334 | 588,850 |
Inventories, total | 4,442,855 | 3,799,829 |
Adjustments | Accounting Standards Update 2014-09 | ||
Inventories | ||
Inventories, total | $ 415,623 | $ (409,252) |
BALANCE SHEET ITEMS - Goodwill
BALANCE SHEET ITEMS - Goodwill and Other Intangible Assets (Details) $ in Thousands | 6 Months Ended | |
Sep. 28, 2018USD ($)segment | Mar. 31, 2018USD ($) | |
Goodwill [Line Items] | ||
Number of operating segments | segment | 4 | |
Activity in goodwill account | ||
Balance, beginning of the year | $ 1,121,170 | |
Divestitures | 18,929 | |
Foreign currency translation adjustments | (19,718) | |
Balance, end of the period | 1,082,523 | |
Gross Carrying Amount | 590,385 | $ 610,950 |
Accumulated Amortization | (214,978) | (186,517) |
Net Carrying Amount | 375,407 | 424,433 |
HRS | ||
Activity in goodwill account | ||
Balance, beginning of the year | 550,983 | |
Divestitures | 4,006 | |
Balance, end of the period | 527,259 | |
CTG | ||
Activity in goodwill account | ||
Balance, beginning of the year | 107,748 | |
Divestitures | 4,412 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 103,336 | |
IEI | ||
Activity in goodwill account | ||
Balance, beginning of the year | 337,707 | |
Divestitures | 4,120 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 333,587 | |
CEC | ||
Activity in goodwill account | ||
Balance, beginning of the year | 124,732 | |
Divestitures | 6,391 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 118,341 | |
Customer-related intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 303,361 | 306,943 |
Accumulated Amortization | (98,112) | (79,051) |
Net Carrying Amount | 205,249 | 227,892 |
Licenses and other intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 287,024 | 304,007 |
Accumulated Amortization | (116,866) | (107,466) |
Net Carrying Amount | $ 170,158 | $ 196,541 |
BALANCE SHEET ITEMS - Future A
BALANCE SHEET ITEMS - Future Amortization (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
Estimated future annual amortization expense for acquired intangible assets | ||
2,019 | $ 35,987 | |
2,020 | 66,906 | |
2,021 | 62,515 | |
2,022 | 53,678 | |
2,023 | 45,421 | |
Thereafter | 110,900 | |
Net Carrying Amount | $ 375,407 | $ 424,433 |
BALANCE SHEET ITEMS - Addition
BALANCE SHEET ITEMS - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018USD ($) | Sep. 28, 2018USD ($) | Apr. 01, 2018USD ($) | Mar. 31, 2018USD ($) | |
Components of acquired intangible assets | ||||
Inventories | $ 4,442,855 | $ 4,442,855 | $ 3,799,829 | |
AutoLab lease term | 5 years | |||
Monthly interest rate | 0.042 | |||
Deferred revenue | 247,100 | $ 247,100 | $ 265,300 | 329,000 |
AutoLab | ||||
Components of acquired intangible assets | ||||
Other consideration transferred | $ 40,000 | |||
Voting interest (percentage) | 50.00% | |||
Equity method investment | $ 127,600 | 127,600 | ||
Gain from deconsolidation of a subsidiary entity | 87,300 | |||
Fixed assets leased in sales-type lease | 76,500 | 76,500 | ||
Net investment in lease | $ 88,200 | 88,200 | ||
Subscription agreement period | 5 years | |||
Asset-Backed Securitization Programs | ||||
Components of acquired intangible assets | ||||
Preferred purchase price receivable from asset-backed securitization programs | $ 304,300 | 304,300 | 445,400 | |
Other Assets | Third-Party Private Company | ||||
Components of acquired intangible assets | ||||
Investment in subsidiaries | 557,200 | 557,200 | 411,100 | |
Working capital advances | ||||
Components of acquired intangible assets | ||||
Deferred revenue | 226,500 | 226,500 | 153,600 | |
Customer-related accruals | ||||
Components of acquired intangible assets | ||||
Deferred revenue | $ 369,800 | $ 369,800 | $ 439,000 |
REVENUE - Contract Assets (Deta
REVENUE - Contract Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 28, 2018 | Apr. 01, 2018 | Mar. 31, 2018 | |
Contract Assets [Roll Forward] | |||
Beginning balance, April 1, 2018 | $ 0 | ||
Cumulative effect adjustment | 412,787 | ||
Revenue recognized | 3,566,140 | ||
Amounts collected or invoiced | (3,560,769) | ||
Ending balance, September 28, 2018 | 418,158 | ||
Deferred revenue | $ 247,100 | $ 265,300 | $ 329,000 |
SHARE-BASED COMPENSATION - Loc
SHARE-BASED COMPENSATION - Location of Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Cost of sales | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 4,767 | $ 4,985 | $ 10,171 | $ 8,304 |
Selling, general and administrative expenses | ||||
Share-based compensation | ||||
Share-based compensation expense | 14,314 | 15,479 | 29,863 | 33,956 |
Segment Reconciling Items | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 19,081 | $ 20,464 | $ 40,034 | $ 42,260 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 6,710,604 | $ 6,270,420 | $ 13,134,560 | $ 12,278,692 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,705,197 | 9,568,420 | ||
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,005,407 | 3,566,140 | ||
HRS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,207,971 | 2,423,396 | ||
HRS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 893,141 | 1,898,321 | ||
HRS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 314,830 | 525,075 | ||
CTG | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,795,883 | 3,603,817 | ||
CTG | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,203,696 | 2,504,333 | ||
CTG | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 592,187 | 1,099,484 | ||
IEI | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,565,953 | 3,012,264 | ||
IEI | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,089,319 | 2,153,218 | ||
IEI | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 476,634 | 859,046 | ||
CEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,140,797 | 4,095,083 | ||
CEC | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,519,041 | 3,012,548 | ||
CEC | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 621,756 | $ 1,082,535 |
SHARE-BASED COMPENSATION - Add
SHARE-BASED COMPENSATION - Additional Information (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Sep. 28, 2018USD ($)$ / sharesshares | |
Share options | |
Share-based compensation | |
Compensation not yet recognized | $ | $ 4.3 |
Share weighted-average remaining vesting period | 1 year 10 months 13 days |
Share options outstanding (shares) | 1,100,000 |
Options exercisable (shares) | 600,000 |
Options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 3.40 |
Weighted average exercise price of exercisable shares (usd per share) | $ / shares | $ 4.02 |
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 8 months 12 days |
Unvested share bonus awards granted (shares) | 5,500,000 |
Number of shares outstanding (shares) | 14,100,000 |
Unrecognized compensation expense | $ | $ 168.6 |
Restricted Stock Units | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 4,200,000 |
Average grant date price of unvested share bonus awards (usd per share) | $ / shares | $ 14.02 |
Vesting period | 4 years |
Share Bonus Awards with Market Conditions | |
Share-based compensation | |
Number of shares outstanding (shares) | 2,600,000 |
Share Bonus Awards with Market Conditions | Fiscal 2015 | |
Share-based compensation | |
Shares vested (shares) | 600,000 |
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) | 5,200,000 |
Share Bonus Awards with Market Conditions | Key employees | |
Share-based compensation | |
Unvested share bonus awards granted (shares) | 1,300,000 |
Average grant date price of unvested share bonus awards (usd per share) | $ / shares | $ 14 |
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) | 2,600,000 |
EARNINGS PER SHARE - Calculati
EARNINGS PER SHARE - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Basic earnings per share: | ||||
Net income | $ 86,885 | $ 205,086 | $ 202,920 | $ 329,796 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 531,503 | 531,313 | 530,426 | 530,790 |
Basic earnings per share (in dollars per share) | $ 0.16 | $ 0.39 | $ 0.38 | $ 0.62 |
Diluted earnings per share: | ||||
Net income | $ 86,885 | $ 205,086 | $ 202,920 | $ 329,796 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 531,503 | 531,313 | 530,426 | 530,790 |
Weighted-average ordinary share equivalents from stock options and awards (in shares) | 2,955 | 4,706 | 4,601 | 5,521 |
Weighted-average ordinary shares and ordinary share equivalents outstanding (in shares) | 534,458 | 536,019 | 535,027 | 536,311 |
Diluted earnings per share (in dollars per share) | $ 0.16 | $ 0.38 | $ 0.38 | $ 0.61 |
EARNINGS PER SHARE - Additiona
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Sep. 28, 2018 | Sep. 28, 2018 | |
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) | 3.1 | 3.1 |
INTEREST AND OTHER, NET (Detail
INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
INTEREST AND OTHER, NET | ||||
Interest expense | $ 35.1 | $ 29.6 | $ 68.7 | $ 58.6 |
OTHER CHARGES (INCOME), NET (De
OTHER CHARGES (INCOME), NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Other income, net | $ (6,530) | $ 143,167 | $ 80,394 | $ 179,332 |
AutoLab | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain from deconsolidation of a subsidiary entity | $ 87,300 | |||
Elementum | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain from deconsolidation of a subsidiary entity | $ 151,600 |
FINANCIAL INSTRUMENTS - Notion
FINANCIAL INSTRUMENTS - Notional Amount (Details) - 6 months ended Sep. 28, 2018 € in Thousands, ₪ in Thousands, ₨ in Thousands, ¥ in Thousands, £ in Thousands, kr in Thousands, RM in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, in Thousands | USD ($) | INR (₨) | ILS (₪) | MYR (RM) | CAD ($) | CNY (¥) | EUR (€) | USD ($) | SGD ($) | RON ( ) | MXN ($) | GBP (£) | HUF (Ft) | DKK (kr) |
Notional amount | ||||||||||||||
Deferred losses | $ 11,800 | |||||||||||||
Forward and Swap Contracts | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | $ 8,300,000 | |||||||||||||
Buy | Forward and Swap Contracts | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 4,593,561 | |||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 1,025,019 | |||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | CNY | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | ¥ 2,258,000 | 328,494 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | EUR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | € 74,296 | 87,302 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | HUF | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 101,026 | Ft 27,835,000 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | ILS | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | ₨ 179,000 | 49,890 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | MXN | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | RM 4,590,000 | 242,508 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | MYR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 98,135 | 405,700 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | RON | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 45,570 | $ 180,700 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | SGD | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 34,799 | 47,500 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Other | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 37,295 | |||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 3,568,542 | |||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CNY | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 1,552,000 | 226,025 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | EUR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 2,023,008 | kr 1,722,006 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | HUF | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 324,854 | £ 89,504,773 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | ILS | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 62,516 | 224,300 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MXN | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | ₪ 2,611,896 | 137,997 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MYR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 643,720 | 155,710 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | RON | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 52,141 | $ 467,158 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | SGD | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 88,850 | 65,092 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | Other | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 89,580 | |||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CAD | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | $ 394,519 | 304,213 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | INR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 79,226 | 5,735,497 | ||||||||||||
Buy | Forward and Swap Contracts | Derivatives not designated as hedging instruments | GBP | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 36,557 | 48,180 | ||||||||||||
Sell | Forward and Swap Contracts | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 3,696,281 | |||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 63,419 | |||||||||||||
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 | 38,747 | 45,635 | ||||||||||||
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 | ILS | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 5,250 | 1,463 | ||||||||||||
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 | 10,885 | 45,000 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | RON | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 0 | 0 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | SGD | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 0 | $ 0 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Other | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 5,436 | |||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 3,632,862 | |||||||||||||
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 | EUR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 2,214,953 | kr 1,884,924 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | HUF | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 353,571 | 97,417,006 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | ILS | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 0 | £ 0 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MXN | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | ₪ 2,050,476 | 108,335 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | MYR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | ₨ 341,430 | 82,589 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | RON | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 62,010 | $ 546,573 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | SGD | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | RM 49,740 | 36,440 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | Other | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 256,393 | |||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | CAD | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | $ 416,218 | 320,945 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | INR | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | 113,127 | Ft 8,205,341 | ||||||||||||
Sell | Forward and Swap Contracts | Derivatives not designated as hedging instruments | GBP | ||||||||||||||
Notional amount | ||||||||||||||
Notional contract value | € 64,161 | $ 84,499 |
FINANCIAL INSTRUMENTS - Foreig
FINANCIAL INSTRUMENTS - Foreign Currency Risk Management (Details) - Foreign currency contracts - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
Other current assets | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | $ 10,317 | $ 19,422 |
Other current assets | Derivatives not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | 9,970 | 23,912 |
Other current liabilities | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | 24,621 | 7,065 |
Other current liabilities | Derivatives not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | $ 8,259 | $ 18,246 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 3,018,573 | |||
Ending balance | $ 3,169,547 | 3,169,547 | ||
Unrealized loss on derivative instruments and other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (76,649) | $ (34,595) | (35,746) | $ (32,426) |
Other comprehensive gain (loss) before reclassifications | 945 | (3,865) | (40,714) | (845) |
Net (gains) losses reclassified from accumulated other comprehensive loss | 20,130 | (10,010) | 20,886 | (15,199) |
Net current-period other comprehensive gain (loss) | 21,075 | (13,875) | (19,828) | (16,044) |
Ending balance | (55,574) | (48,470) | (55,574) | (48,470) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (94,185) | (84,881) | (50,099) | (95,717) |
Other comprehensive gain (loss) before reclassifications | (6,622) | 9,478 | (50,708) | 20,314 |
Net (gains) losses reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive gain (loss) | (6,622) | 9,478 | (50,708) | 20,314 |
Ending balance | (100,807) | (75,403) | (100,807) | (75,403) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (170,834) | (119,476) | (85,845) | (128,143) |
Other comprehensive gain (loss) before reclassifications | (5,677) | 5,613 | (91,422) | 19,469 |
Net (gains) losses reclassified from accumulated other comprehensive loss | 20,130 | (10,010) | 20,886 | (15,199) |
Net current-period other comprehensive gain (loss) | 14,453 | (4,397) | (70,536) | 4,270 |
Ending balance | $ (156,381) | $ (123,873) | $ (156,381) | $ (123,873) |
TRADE RECEIVABLES SECURITIZAT_2
TRADE RECEIVABLES SECURITIZATION (Details) | 6 Months Ended | |||
Sep. 28, 2018USD ($)program | Sep. 29, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Trade Receivables Securitization disclosures | ||||
Servicing assets | $ 0 | $ 0 | ||
Servicing liabilities | 0 | $ 0 | ||
Cash collections of deferred purchase price | $ 1,812,945,000 | $ 2,452,782,000 | ||
Asset-Backed Securitization Programs | ||||
Trade Receivables Securitization disclosures | ||||
Number of asset-backed securitization programs | program | 2 | |||
Percentage of receivables sold to unaffiliated institutions | 100.00% | |||
Company's accounts receivables sold to third-party | $ 1,300,000,000 | $ 1,500,000,000 | ||
Amount received from accounts receivable sold to third-party | 1,000,000,000 | 1,100,000,000 | ||
Transferor's interests in transferred financial assets, fair value | 304,300,000 | 445,400,000 | ||
Cash proceeds from sale of accounts receivable | 3,700,000,000 | 4,000,000,000 | ||
Cash collections of deferred purchase price | $ 1,800,000,000 | 2,500,000,000 | ||
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 | $ 950,000,000 | |||
Global Program | Committed | ||||
Trade Receivables Securitization disclosures | ||||
Investment limits with financial institution | 775,000,000 | |||
Global Program | Uncommitted | ||||
Trade Receivables Securitization disclosures | ||||
Investment limits with financial institution | 175,000,000 | |||
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 | 1,400,000,000 | $ 600,000,000 | ||
Receivables sold but not yet collected from banking institutions | $ 463,200,000 | $ 286,400,000 |
FAIR VALUE MEASUREMENT OF ASS_3
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) | Sep. 28, 2018 | Sep. 29, 2017 |
Fair Value Disclosures [Abstract] | ||
Transfers out of Level 1 and into Level 2 related to assets and liabilities measured on a recurring and nonrecurring basis | $ 0 | $ 0 |
Transfers out of Level 2 and into Level 1 related to assets and liabilities measured on a recurring and nonrecurring basis | 0 | 0 |
Transfers out of Level 1 and into Level 2 related to liabilities measured on a recurring and nonrecurring basis | 0 | 0 |
Transfers out of Level 2 and into Level 1 related to liabilities measured on a recurring and nonrecurring basis | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF ASS_4
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Assets and Liabilities Measured at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | $ 451,551 | $ 452,622 |
Foreign exchange contracts | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 20,287 | 43,334 |
Total Liabilities | (32,880) | (25,311) |
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 | 82,288 | 74,728 |
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 | Foreign exchange contracts | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 1 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 6,267 | 7,196 |
Level 2 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 451,551 | 452,622 |
Level 2 | Foreign exchange contracts | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 20,287 | 43,334 |
Total Liabilities | (32,880) | (25,311) |
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 | 76,021 | 67,532 |
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 | Foreign exchange contracts | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF ASS_5
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Debt Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Mar. 31, 2018 |
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 | $ 2,920,666 | $ 2,950,817 |
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 | 679,688 | 687,813 |
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through June 2022 | ||
Other financial instruments | ||
Fair Value | 471,094 | 483,656 |
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 | 596,599 | 596,387 |
Carrying Amount | Level 1 | Euro Term Loan due September 2020 | ||
Other financial instruments | ||
Fair Value | 55,804 | 59,443 |
Carrying Amount | Level 1 | Euro Term Loan due January 2022 | ||
Other financial instruments | ||
Fair Value | 117,481 | 123,518 |
Fair Value | ||
Other financial instruments | ||
Fair Value | 2,955,827 | 3,024,692 |
Fair Value | Level 1 | 4.625% Notes due February 2020 | ||
Other financial instruments | ||
Fair Value | 507,031 | 513,596 |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through June 2022 | ||
Other financial instruments | ||
Fair Value | 683,086 | 689,966 |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through June 2022 | ||
Other financial instruments | ||
Fair Value | 473,449 | 485,470 |
Fair Value | Level 1 | 5.000% Notes due February 2023 | ||
Other financial instruments | ||
Fair Value | 513,830 | 525,292 |
Fair Value | Level 1 | 4.750% Notes due June 2025 | ||
Other financial instruments | ||
Fair Value | 605,146 | 627,407 |
Fair Value | Level 1 | Euro Term Loan due September 2020 | ||
Other financial instruments | ||
Fair Value | 55,804 | 59,443 |
Fair Value | Level 1 | Euro Term Loan due January 2022 | ||
Other financial instruments | ||
Fair Value | $ 117,481 | $ 123,518 |
BUSINESS AND ASSET DIVESTITUR_2
BUSINESS AND ASSET DIVESTITURES (Details) - Disposal - Multek $ in Millions | 3 Months Ended |
Sep. 28, 2018USD ($) | |
Business Acquisition [Line Items] | |
Proceeds from divestiture of businesses | $ 264.4 |
Net assets transferred | 231.4 |
Goodwill | $ 19 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, R$ in Millions | 6 Months Ended | 12 Months Ended | |
Sep. 28, 2018BRL (R$)tax_assessment | Sep. 28, 2018USD ($)tax_assessment | Mar. 31, 2016USD ($) | |
BRAZIL | Assessment of Sales and Import Taxes | |||
Loss Contingencies [Line Items] | |||
Income tax examination, number of tax assessments | tax_assessment | 6 | 6 | |
Income tax examination, estimate of possible loss | R$ 346 | $ 85,240 | |
Pending Litigation | SunEdison filed Chapter 11 | Collectibility of Receivables | |||
Loss Contingencies [Line Items] | |||
Inventory value allegedly received by the Company | $ 98,600 | ||
Cash allegedly received by the Company | 69,200 | ||
SunEdison, Inc | |||
Loss Contingencies [Line Items] | |||
Loss in period from bad debt write off | 61,000 | ||
Decrease in receivable due from return of previously shipped inventory | $ 90,000 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) shares in Millions | 3 Months Ended | 6 Months Ended |
Sep. 28, 2018USD ($)shares | Sep. 28, 2018USD ($)shares | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | ||
Aggregate shares repurchased and retired (in shares) | shares | 4.4 | 4.4 |
Aggregate purchase price of shares repurchased and retired | $ 60,000,000 | $ 60,000,000 |
Authorized amount of stock repurchase program | 500,000,000 | 500,000,000 |
Amount remaining to be repurchased under the plans | $ 453,500,000 | $ 453,500,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | Sep. 28, 2018USD ($)segment | Sep. 29, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 4 | |||
Net sales | $ 6,710,604 | $ 6,270,420 | $ 13,134,560 | $ 12,278,692 |
Intangible amortization | 18,234 | 16,376 | 36,751 | 36,277 |
Net revenue standard adoption impact | 9,300 | |||
Other income, net | 6,530 | (143,167) | (80,394) | (179,332) |
Interest and other, net | 41,060 | 27,554 | 82,802 | 54,430 |
Income before income taxes | 108,794 | 218,413 | 250,431 | 363,922 |
Exit costs | 30,000 | |||
CEC | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,140,797 | 4,095,083 | ||
Consumer Technologies Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,795,883 | 3,603,817 | ||
Industrial & Emerging Industries | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,565,953 | 3,012,264 | ||
High Reliability Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,207,971 | 2,423,396 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6,710,604 | 6,270,420 | 13,134,560 | 12,278,692 |
Total segment income | 223,530 | 188,326 | 411,238 | 366,243 |
Operating Segments | CEC | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,140,797 | 1,901,057 | 4,095,083 | 3,874,390 |
Total segment income | 62,855 | 42,733 | 108,873 | 91,335 |
Operating Segments | Consumer Technologies Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,795,883 | 1,755,143 | 3,603,817 | 3,267,112 |
Total segment income | 31,212 | 30,722 | 57,769 | 48,726 |
Operating Segments | Industrial & Emerging Industries | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,565,953 | 1,454,539 | 3,012,264 | 2,845,138 |
Total segment income | 65,857 | 50,945 | 117,218 | 106,322 |
Operating Segments | High Reliability Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,207,971 | 1,159,681 | 2,423,396 | 2,292,052 |
Total segment income | 89,589 | 92,364 | 183,123 | 182,576 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment income | (25,983) | (28,438) | (55,745) | (62,716) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Intangible amortization | 18,234 | 16,376 | 36,751 | 36,277 |
Stock-based compensation | 19,081 | 20,464 | 40,034 | 42,260 |
Distressed customers asset impairments | 30,100 | 4,753 | 47,464 | 4,753 |
Net revenue standard adoption impact | 0 | 0 | 9,291 | 0 |
Contingencies and other | (269) | 43,933 | 24,859 | 43,933 |
Other income, net | (6,530) | 143,167 | 80,394 | 179,332 |
Interest and other, net | (41,060) | (27,554) | (82,802) | (54,430) |
Income before income taxes | $ 108,794 | $ 218,413 | $ 250,431 | $ 363,922 |
BANK BORROWINGS AND LONG TERM_2
BANK BORROWINGS AND LONG TERM DEBT (Details) - Term Loan - 2023 - USD ($) $ in Millions | 6 Months Ended | |
Sep. 28, 2018 | Jul. 31, 2018 | |
Debt Instrument [Line Items] | ||
Term of debt instrument | 5 years | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.15% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 200 |