Document and Company Informatio
Document and Company Information (USD $) | |||
In Billions, except Share data | 3 Months Ended
Jul. 03, 2009 | Aug. 04, 2009
| Sep. 26, 2008
|
Document And Company Information [Abstract] | |||
Entity Registrant Name | FLEXTRONICS INTERNATIONAL LTD. | ||
Entity Central Index Key | 0000866374 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-07-03 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | 6.2 | ||
Entity Ordinary Shares Outstanding | 810,733,830 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (USD $) | ||
In Thousands | Jul. 03, 2009
| Mar. 31, 2009
|
Current assets: | ||
Cash and cash equivalents | $1,676,579 | $1,821,886 |
Accounts receivable, net of allowance for doubtful accounts of $ 24,226 and $29,020 as of July 3, 2009 and March 31, 2009, respectively | 2,066,718 | 2,316,939 |
Inventories | 2,671,419 | 2,996,785 |
Other current assets | 722,733 | 799,396 |
Total current assets | 7,137,449 | 7,935,006 |
Property and equipment, net | 2,226,362 | 2,333,781 |
Goodwill and other intangible assets, net | 302,373 | 291,491 |
Other assets | 736,671 | 756,662 |
Total assets | 10,402,855 | 11,316,940 |
Current liabilities: | ||
Bank borrowings, current portion of long-term debt and capital lease obligations | 213,050 | 208,403 |
Accounts payable | 3,631,524 | 4,049,534 |
Accrued payroll | 321,860 | 336,123 |
Other current liabilities | 1,644,481 | 1,814,711 |
Total current liabilities | 5,810,915 | 6,408,771 |
Long-term debt and capital lease obligations, net of current portion | 2,533,844 | 2,733,680 |
Other liabilities | 312,310 | 313,321 |
Shareholders' equity | ||
Ordinary shares, no par value; 840,441,564 and 839,412,939 shares issued, and 810,661,842 and 809,633,217 outstanding as of July 3, 2009 and March 31, 2009, respectively | 8,878,947 | 8,862,008 |
Treasury stock, at cost; 29,779,722 shares as of July 3, 2009 and March 31, 2009, respectively | (260,074) | (260,074) |
Accumulated deficit | (6,837,360) | (6,683,317) |
Accumulated other comprehensive loss | (35,727) | (57,449) |
Total shareholders' equity | 1,745,786 | 1,861,168 |
Total liabilities and shareholders' equity | $10,402,855 | $11,316,940 |
1_Condensed Consolidated Balanc
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Thousands, except Share data | Jul. 03, 2009
| Mar. 31, 2009
|
Allowance for doubtful accounts | $24,226 | $29,020 |
Ordinary shares, no par value | 0 | 0 |
Ordinary shares, issued | 840,441,564 | 839,412,939 |
Ordinary shares, outstanding | 810,661,842 | 809,633,217 |
Treasury stock, shares | 29,779,722 | 29,779,722 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (USD $) | ||
In Thousands, except Per Share data | 3 Months Ended
Jul. 03, 2009 | 3 Months Ended
Jun. 27, 2008 |
Net sales | $5,782,679 | $8,350,246 |
Cost of sales | 5,506,575 | 7,867,162 |
Restructuring charges | 52,109 | 26,317 |
Gross profit | 223,995 | 456,767 |
Selling, general and administrative expenses | 201,692 | 248,626 |
Intangible amortization | 23,334 | 25,246 |
Restructuring charges | 12,730 | 2,898 |
Other charges, net | 107,399 | 0 |
Interest and other expense, net | 36,886 | 50,727 |
Income before income taxes | (158,046) | 129,270 |
Provision for (benefit from) income taxes | (4,003) | 10,061 |
Net income (loss) | ($154,043) | $119,209 |
Earnings (loss) per share: | ||
Basic | -0.19 | 0.14 |
Diluted | -0.19 | 0.14 |
Weighted-average shares used in computing per share amounts: | ||
Basic | 810,174 | 836,407 |
Diluted | 810,174 | 840,444 |
2_Condensed Consolidated Statem
Condensed Consolidated Statements of Cash Flows (USD $) | ||
In Thousands | 3 Months Ended
Jul. 03, 2009 | 3 Months Ended
Jun. 27, 2008 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | ($154,043) | $119,209 |
Depreciation, amortization and other impairment charges | 257,075 | 122,388 |
Changes in working capital and other | 3,834 | (250,081) |
Net cash provided by (used in) operating activities | 106,866 | (8,484) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment, net of dispositions | (38,635) | (154,741) |
Acquisition of businesses, net of cash acquired | (8,652) | (158,571) |
Proceeds from divestitures of operations | 0 | 5,269 |
Other investments and notes receivable, net | 1,860 | 24,295 |
Net cash used in investing activities | (45,427) | (283,748) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from bank borrowings and long-term debt | 782,167 | 3,190,519 |
Repayments of bank borrowings, long-term debt and capital lease obligations | (788,055) | (2,873,539) |
Payments for repurchase of long-term debt | (203,183) | 0 |
Net proceeds from issuance of ordinary shares | 1,067 | 2,817 |
Net cash provided by (used in) financing activities | (208,004) | 319,797 |
Effect of exchange rates on cash | 1,258 | 14,215 |
Net increase (decrease) in cash and cash equivalents | (145,307) | 41,780 |
Cash and cash equivalents, beginning of period | 1,821,886 | 1,719,948 |
Cash and cash equivalents, end of period | $1,676,579 | $1,761,728 |
Organization of the Company
Organization of the Company | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Organization of Company [Abstract] | |
ORGANIZATION OF THE COMPANY | 1. ORGANIZATION OF THE COMPANY Flextronics International Ltd. (Flextronics or the Company) was incorporated in the Republic of Singapore in May1990. The Company is a leading provider of advanced design and electronics manufacturing services (EMS) to original equipment manufacturers (OEMs) of a broad range of products in the following markets: infrastructure; mobile communication devices; computing; consumer digital devices; industrial, semiconductor and white goods; automotive, marine and aerospace; and medical devices. The Companys strategy is to provide customers with a full range of cost competitive, vertically-integrated global supply chain services through which the Company designs, builds, ships and services a complete packaged product for its OEM customers. OEM customers leverage the Companys services to meet their product requirements throughout the entire product life cycle. The Companys service offerings include rigid printed circuit board and flexible circuit fabrication, systems assembly and manufacturing (including enclosures, testing services, materials procurement and inventory management), logistics, after-sales services (including product repair, re-manufacturing and maintenance) and multiple component product offerings. Additionally, the Company provides market-specific design and engineering services ranging from contract design services (CDM), where the customer purchases services on a time and materials basis, to original product design and manufacturing services, where the customer purchases a product that was designed, developed and manufactured by the Company (commonly referred to as original design manufacturing, or ODM). ODM products are then sold by the Companys OEM customers under the OEMs brand names. The Companys CDM and ODM services include user interface and industrial design, mechanical engineering and tooling design, electronic system design and printed circuit board design. |
Summary of Accounting Policies
Summary of Accounting Policies | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Summary of Accounting Policies [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | 2. SUMMARY OF ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation 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 RegulationS-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 Companys audited consolidated financial statements as of and for the fiscal year ended March31, 2009 contained in the Companys Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ended July3, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ended March31, 2010. The Company evaluated subsequent events for disclosure through August3, 2009. The Companys third fiscal quarter ends on December31, and the fourth fiscal quarter and year ends on March31 of each year. The first fiscal quarter ended on July3, 2009 and June27, 2008, respectively, and the second fiscal quarters ends on October2, 2009 and ended on September26, 2008, respectively. On April1, 2009, the Company adopted FASB Staff Position No.APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP APB 14-1). FSP APB 14-1 was required to be applied retrospectively. See Note 6 for further information. Inventories The components of inventories, net of applicable lower of cost or market write-downs, were as follows: As of As of July 3, 2009 March 31, 2009 (In thousands) Raw materials $ 1,668,229 $ 1,907,584 Work-in-progress 499,994 524,038 Finished goods 503,196 565,163 $ 2,671,419 $ 2,996,785 Property and Equipment Total depreciation expense associated with property and equipment amounted to approximately $94.5million and $91.9million for the three-month periods ended July3, 2009 and June27, 2008, respectively. Proceeds from the disposition of property and equipment were $7.3million and $21.5 million during the three-month periods ended July3, 2009 and June27, 2008, respectively, and are presented net with purchases of property and equipment within cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows. Goodwill and Other Intangibles The following table summarizes the activity in the Companys goodwill account during the three-month period ended July3, 2009: Amount (In thousands) Balance, beginning of the year $ 36,776 Purchase accounting adjustments (1) 34,122 Balance, end of the quarter $ 70,898 (1) Includes adjustments and reclassifications resulting from managements review of t |
Stock Based Compensation
Stock Based Compensation | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Stock-Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | 3. STOCK-BASED COMPENSATION The Company grants equity compensation awards to acquire the Companys ordinary shares from four plans, and which collectively are referred to as the Companys equity compensation plans below. For further discussion of these Plans, refer to Note 2, Summary of Accounting Policies, of the Notes to Consolidated Financial Statements in the Companys Annual Report on Form 10-K for the fiscal year ended March31, 2009. Compensation expense for the Companys stock options and unvested share bonus awards was as follows: Three-Month Periods Ended July 3, 2009 June 27, 2008 (In thousands) Cost of sales $ 2,640 $ 2,043 Selling, general and administrative expenses 12,564 11,973 Total stock-based compensation expense $ 15,204 $ 14,016 For the three months ended July3, 2009, the Company granted 108,300 stock options and 27,600 unvested share bonus awards, at a weighted average fair value per award of $2.06 and $4.20, respectively. As of July3, 2009, total unrecognized compensation expense related to stock options is $82.2million, net of estimated forfeitures, and will be recognized over a weighted average vesting period of 2.8years. Total unrecognized compensation expense related to unvested share bonus awards is $70.8million, net of estimated forfeitures, and will be recognized over a weighted average vesting period of 2.0years. Approximately $29.6million of the unrecognized compensation cost is related to awards where vesting is contingent upon meeting both a service requirement and achievement of longer-term goals. As of July3, 2009, management believes achievement of these goals is not probable, and these unvested share bonus awards are not expected to vest and the cost is not expected to be recognized. On July14, 2009, the Company launched an exchange offer under which eligible employees have the opportunity to voluntarily exchange their eligible stock options granted under certain of the Companys equity compensation plans for a lesser amount of replacement stock options to be granted under one of the Companys current equity incentive plans with new exercise prices equal to the closing price of the Companys ordinary shares on the date of exchange (the Exchange). The exchange offer is open to all active U.S. and international employees of the Company, except in those jurisdictions where the local law, administrative burden or similar considerations make participation in the program illegal, inadvisable or impractical, and where exclusion otherwise is consistent with the Companys compensation policies with respect to those jurisdictions. The exchange offer is not open to the Companys Board of Directors or its executive officers. To be eligible for exchange an option must: (i)have an exercise price of at least $10.00 per share, (ii)be outstanding, and (iii)have been granted at least 12months prior to the commencement date of the exchange offer. All replacement option grants will be subject to a vesting schedule of two, three or four years from the date of grant of the replacement options depending on the remaining ve |
Earnings Per Share
Earnings Per Share | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Earnings Per Share Disclosure [Abstract] | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE The following table reflects the basic and diluted weighted-average ordinary shares outstanding used to calculate basic and diluted earnings per share: Three-Month Periods Ended July 3, 2009 June 27, 2008 (In thousands, except per share amounts) Basic earnings per share: Net income (loss) $ (154,043 ) $ 119,209 Shares used in computation: Weighted-average ordinary shares outstanding 810,174 836,407 Basic earnings (loss)per share $ (0.19 ) $ 0.14 Diluted earnings per share: Net income (loss) $ (154,043 ) $ 119,209 Shares used in computation: Weighted-average ordinary shares outstanding 810,174 836,407 Weighted-average ordinary share equivalents from stock options and awards (1) 4,037 Weighted-average ordinary share equivalents from convertible notes (2) Weighted-average ordinary shares and ordinary share equivalents outstanding 810,174 840,444 Diluted earnings (loss)per share $ (0.19 ) $ 0.14 (1) As a result of the Companys net loss, ordinary share equivalents from approximately 4.7million options and share bonus awards were excluded from the calculation of diluted earnings (loss)per share for the three-month period ended July, 3, 2009. Ordinary share equivalents from stock options to purchase approximately 57.2 million and 46.9million shares outstanding during the three-month periods ended July3, 2009 and June27, 2008, respectively, were excluded from the computation of diluted earnings per share primarily because the exercise price of these options was greater than the average market price of the Companys ordinary shares during the respective periods. (2) The principal amount of the Companys Zero Coupon Convertible Junior Subordinated Notes will be settled in cash, and the conversion spread (excess of conversion value over face value), if any, will be settled by issuance of shares upon maturity. The conversion price was greater than the average stock price during the three-month periods ended July3, 2009 and June27, 2008, respectively, and accordingly, no ordinary shares were included as common stock equivalents. During December2008, the Company purchased an aggregate principal amount of $260.0million of its outstanding 1% Convertible Subordinated Notes, which resulted in a reduction of the ordinary share equivalents into which such notes were convertible from approximately 32.2million to approximately 15.5million. As the Company has the positive intent and ability to settle the principal amount of these notes in cash, all ordinary share equivalents related to the principal portion of the Notes are excluded from the computation of diluted earnings per share. The Company intends to settle any conversion spread (excess of the conversion value over face value) in stock. The conversion price is $15.525 per share (subject to certain adjustments). During the three-month periods ended July3, 2009 and June27, |
Other Comprehensive Income
Other Comprehensive Income | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Other comprehensive income [Abstract] | |
OTHER COMPREHENSIVE INCOME | 5. OTHER COMPREHENSIVE INCOME The following table summarizes the components of other comprehensive income: Three-Month Periods Ended July 3, 2009 June 27, 2008 (In thousands) Net income (loss) $ (154,043 ) $ 119,209 Other comprehensive income: Foreign currency translation adjustment 10,292 827 Unrealized gain (loss)on derivative instruments, and other income (loss), net of taxes 11,430 6,555 Comprehensive income (loss) $ (132,321 ) $ 126,591 |
Bank Borrowings And Long Term D
Bank Borrowings And Long Term Debt | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Bank Borrowings And Long Term Debt [Abstract] | |
BANK BORROWINGS AND LONG-TERM DEBT | 6. BANK BORROWINGS AND LONG-TERM DEBT Bank borrowings and long-term debt are as follows: As of As of July 3, 2009 March 31, 2009 (In thousands) Short term bank borrowings $ 1,690 $ 1,854 0.00% convertible junior subordinated notes due July2009 193,346 189,045 1.00% convertible subordinated notes due August2010 222,225 218,391 6.50% senior subordinated notes due May2013 299,806 399,622 6.25% senior subordinated notes due November2014 302,172 402,090 Term Loan Agreement, including current portion, due in installments through October2014 1,705,531 1,709,116 Other 19,452 21,416 2,744,222 2,941,534 Current portion (212,372 ) (207,991 ) Non-current portion $ 2,531,850 $ 2,733,543 As of July3, 2009 and March31, 2009, there were no borrowings outstanding under the Companys $2.0billion credit facility. As of July3, 2009, the Company was in compliance with the financial covenants under this credit facility. During June2009, the Company paid approximately $203.2million to purchase an aggregate principal amount of $99.8million of its outstanding 6 1/2% Senior Subordinated Notes due 2013 (the 6 1/2% Notes) and an aggregate principal amount of $99.9million of its outstanding 6 1/4% Senior Subordinated Notes due 2014 (the 6 1/4% Notes and collectively referred to as the Notes) in a cash tender offer (the Offer). The cash paid includes $8.8million in consent fees (as discussed further below) paid to holders of the Notes that were tendered but not purchased as well as to holders that consented but did not tender, which were capitalized and will be recognized as a component of interest expense over the remaining life of the Notes. The Company recognized an immaterial gain during the three-month period ended July3, 2009 associated with the partial extinguishment of the Notes net of approximately $5.3million for estimated transaction costs and the write-down of related debt issuance costs, which is included in Other charges, net in the Condensed Consolidated Statement of Operations. As of July3, 2009, $299.8million of the 6 1/2% Notes and $302.2million of the 6 1/4% Notes remained outstanding. In conjunction with the Offer, the Company obtained consents from the holders of Notes tendered but not purchased as well as to holders that consented but did not tender to certain amendments to the restricted payments covenants and certain related definitions in each of the indentures (the Indentures) under which the Notes were issued. The amendments permit the Company greater flexibility to purchase or make other payments in respect of its equity securities and debt that is subordinated to the Notes and to make certain other restricted payments under each Indenture. Subsequent to July3, 2009, the Company paid $195.0million to redeem the 0% Convertible Junior Subordinated Notes upon their maturity. These notes carried conversion provisions to issue shares to settle any conversion spread (excess of conversion price over the face amount of $1 |
Financial Instruments
Financial Instruments | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | 7. FINANCIAL INSTRUMENTS Foreign Currency Contracts As of July3, 2009, the aggregate notional amount of the Companys outstanding foreign currency forward and swap contracts was $1.9billion as summarized below: Notional Foreign Contract Currency Value in Currency Buy/Sell Amount USD (In thousands) Cash Flow Hedges EUR Sell 13,796 $ 19,211 EUR Buy 2,584 3,635 JPY Buy 2,391,117 24,730 Other Buy N/A 30,788 78,364 Other Forward/Swap Contracts BRL Sell 96,365 49,400 CAD Sell 111,192 99,313 CAD Buy 71,245 62,132 EUR Sell 418,618 588,053 EUR Buy 148,382 208,117 GBP Sell 59,381 97,209 GBP Buy 13,061 21,306 SEK Sell 586,838 76,030 SEK Buy 1,488,768 193,368 Other Sell N/A 67,398 Other Buy N/A 311,748 1,774,074 Total Notional Contract Value in USD $ 1,852,438 As of July3, 2009 and March31, 2009, the fair value of the Companys short-term foreign currency contracts was not material and included in other current assets or other current liabilities, as applicable, in the Condensed Consolidated Balance Sheet. Certain of these contracts are designed to economically hedge the Companys exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as a hedging activity pursuant to the guidance in Statement of Financial Accounting Standard No.133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133). Accordingly, changes in fair value of these instruments are recognized in earnings during the period of change as a component of interest and other expense, net in the Condensed Consolidated Statement of Operations. As of July3, 2009 and March31, 2009, the Company also has included net deferred gains and losses, respectively, in other comprehensive income, a component of shareholders equity in the Condensed Consolidated Balance Sheet, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges pursuant to the guidance in SFAS 133. These deferred gains and losses were not material, and the deferred gains as of July3, 2009 are expected to be recognized as a component of cost of sales in the Condensed Consolidated Statement of Operations 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 expense, net in the Condensed Consolidated Statement of Operations. Interest Rate Swap Agreements The Company is also exposed to variability in cash flows associated with changes in short-term interest rates primarily on borrowings under its revolving credit facility and term loan agreeme |
Trade Receivables Securitizatio
Trade Receivables Securitization | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Trade Receivables Securitization [Abstract] | |
TRADE RECEIVABLES SECURITIZATION | 8. TRADE RECEIVABLES SECURITIZATION The Company continuously sells designated pools of trade receivables under two asset backed securitization programs. Global Asset-Backed Securitization Agreement The Company continuously sells a designated pool of trade receivables to a third-party qualified special purpose entity, which in turn sells an undivided ownership interest to two commercial paper conduits, administered by an unaffiliated financial institution. In addition to these commercial paper conduits, the Company participates in the securitization agreement as an investor in the conduit. The securitization agreement allows the operating subsidiaries participating in the securitization program to receive a cash payment for sold receivables, less a deferred purchase price receivable. The Company continues to service, administer and collect the receivables on behalf of the special purpose entity and receives a servicing fee of 1.00% of serviced receivables per annum. Servicing fees recognized during the three-month periods ended July3, 2009 and June27, 2008 were not material and are included in Interest and other expense, 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 or liabilities are recognized. The maximum investment limit of the two commercial paper conduits is $500.0million, inclusive of $100.0million attributable to an Obligor Specific Tranche, which was incorporated to minimize the impact of excess concentrations of one major customer. The Company pays annual facility and commitment fees ranging from 0.16% to 0.40% (averaging approximately 0.25%) for unused amounts and an additional program fee of 0.10% on outstanding amounts. The third-party special purpose entity is a qualifying special purpose entity as defined in SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (SFAS 140), and accordingly, the Company does not consolidate this entity pursuant to FASB Interpretation No.46 (revised December2003), Consolidation of Variable Interest Entities (FIN 46(R)). As of July3, 2009 and March31, 2009, approximately $414.6million and $422.0 million of the Companys accounts receivable, respectively, had been sold to this third-party qualified special purpose entity. The amounts represent the face amount of the total outstanding trade receivables on all designated customer accounts on those dates. The accounts receivable balances that were sold under this agreement were removed from the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. The Company received net cash proceeds of approximately $258.1million and $298.1million from the commercial paper conduits for the sale of these receivables as of July 3, 2009 and March31, 2009, respectively. The difference between the amount sold to the commercial paper conduits (net of the Companys investment participation) and net cash proceeds received from the commercial paper |
Restructuring Charges
Restructuring Charges | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Restructuring Charges Disclosure [Abstract] | |
RESTRUCTURING CHARGES | 9. RESTRUCTURING CHARGES The Company recognized restructuring charges of approximately $64.8million during the three-month period ended July3, 2009 as part of its restructuring plans previously announced in March2009 in order to rationalize the Companys global manufacturing capacity and infrastructure as a result of current macroeconomic conditions. The costs associated with these restructuring activities include employee severance, costs related to owned and leased facilities and equipment that is no longer in use and is to be disposed of, and other costs associated with the exit of certain contractual arrangements due to facility closures. The restructuring charges by reportable geographic region amounted to approximately $34.6million, $10.0million and $20.3million for Asia, the Americas and Europe, respectively. The Company classified approximately $52.1million of these charges as a component of cost of sales during the three-month period ended July3, 2009. During the three-month period ended July3, 2009 the Company recognized approximately $19.4 million of employee termination costs associated with the involuntary terminations of 1,982 identified employees. The involuntary employee terminations by reportable geographic region amounted to approximately 368, 1,138 and 476 for Asia, the Americas and Europe respectively. Approximately $17.1million of these charges were classified as a component of cost of sales. During the three-month period ended July3, 2009 the Company recognized approximately $31.8 million for the write-down of property and equipment, which is no longer in use, to managements estimate of fair value. Approximately $22.1million of these charges were classified as a component of cost of sales. The restructuring charges recognized during the three-months ended July3, 2009 also included approximately $13.6million for other exit costs, of which $12.9million was classified as a component of cost of sales. Other exit costs were primarily comprised of contractual obligations associated with facility and equipment lease terminations of $11.7million, and facility abandonment and refurbishment costs of $1.9million. The following table summarizes the provisions, respective payments, and remaining accrued balance as of July3, 2009 for charges incurred in fiscal year 2010 and prior periods: Long-Lived Asset Other Severance Impairment Exit Costs Total (In thousands) Balance as of March31, 2009 $ 101,213 $ $ 60,254 $ 161,467 Activities during the first quarter: Provisions incurred in fiscal year 2010 19,369 31,791 13,679 64,839 Cash payments for charges incurred in fiscal year 2010 (7,325 ) (6,243 ) (13,568 ) Cash payments for charges incurred in fiscal year 2009 (41,533 ) (1,015 ) (42,548 ) Cash payments for charges incurred in fiscal year 2008 and prior (9,211 ) (11,549 ) (20,760 ) Non-cash charges incurred during the year (31,791 ) (27 ) (31,818 ) |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES 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 does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its condensed consolidated financial position, results of operations, or cash flows. |
Business And Asset Acquisitions
Business And Asset Acquisitions | |
3 Months Ended
Jul. 03, 2009 USD / shares | |
Business And Asset Acquisitions [Abstract] | |
BUSINESS AND ASSET ACQUISITIONS | 11. BUSINESS AND ASSET ACQUISITIONS During the three-month period ended July3, 2009, the Company paid approximately $8.7million relating to the deferred purchase price from a certain historical acquisition. During the three-month period ended June27, 2008, the Company completed four acquisitions that were not individually, or in the aggregate, significant to the Companys consolidated results of operations and financial position. The acquired businesses complement the Companys design and manufacturing capabilities for the computing, infrastructure, and consumer digital markets, and expanded the Companys power supply capabilities. The aggregate cash paid for these acquisitions totaled approximately $156.2million, net of cash acquired. |