Flex (FLEX) 10-Q 2 Feb 10 2010 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	9 Months Ended Dec. 31, 2009
Document and Company Information [Abstract]
Entity Registrant Name	FLEXTRONICS INTERNATIONAL LTD.
Entity Central Index Key	0000866374
Document Type	10-Q
Document Period End Date	2009-12-31
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 Ordinary Shares Outstanding	812,618,605

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands	Dec. 31, 2009	Mar. 31, 2009
Current assets:
Cash and cash equivalents	$2,241,870	$1,821,886
Accounts receivable, net of allowance for doubtful accounts of $15,863 and $29,020 as of December 31, 2009 and March 31, 2009, respectively	2,416,812	2,316,939
Inventories	2,781,707	2,996,785
Other current assets	878,428	799,396
Total current assets	8,318,817	7,935,006
Property and equipment, net	2,139,380	2,333,781
Goodwill and other intangible assets, net	267,385	291,491
Other assets	272,200	756,662
Total assets	10,997,782	11,316,940
Current liabilities:
Bank borrowings, current portion of long-term debt and capital lease obligations	255,928	208,403
Accounts payable	4,428,427	4,049,534
Accrued payroll	332,634	336,123
Other current liabilities	1,476,295	1,814,711
Total current liabilities	6,493,284	6,408,771
Long-term debt and capital lease obligations, net of current portion	2,294,733	2,733,680
Other liabilities	307,605	313,321
Shareholders' equity
Ordinary shares, no par value; 842,398,327 and 839,412,939 shares issued, and 812,618,605 and 809,633,217 outstanding as of December 31, 2009 and March 31, 2009, respectively	8,909,420	8,862,008
Treasury stock, at cost; 29,779,722 shares as of December 31, 2009 and March 31, 2009, respectively	(260,074)	(260,074)
Accumulated deficit	(6,724,831)	(6,683,317)
Accumulated other comprehensive loss	(22,355)	(57,449)
Total shareholders' equity	1,902,160	1,861,168
Total liabilities and shareholders' equity	$10,997,782	$11,316,940

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Mar. 31, 2009
Current assets:
Allowance for doubtful accounts	$15,863	$29,020
Shareholders' equity
Ordinary shares, no par value	$0	$0
Ordinary shares, issued	842,398,327	839,412,939
Ordinary shares, outstanding	812,618,605	809,633,217
Treasury stock, shares	29,779,722	29,779,722

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008	9 Months Ended Dec. 31, 2009	9 Months Ended Dec. 31, 2008
Net sales	$6,556,137	$8,153,289	$18,170,577	$25,366,051
Cost of sales	6,173,461	7,855,950	17,199,814	24,168,167
Restructuring charges	9,624	0	74,136	26,317
Gross profit	373,052	297,339	896,627	1,171,567
Selling, general and administrative expenses	205,614	275,922	583,551	783,235
Intangible amortization	21,440	32,613	67,484	108,176
Goodwill impairment charge	0	5,949,977	0	5,949,977
Restructuring charges	162	0	13,079	2,898
Other charges (income), net	0	3,196	199,398	15,133
Interest and other expense, net	40,555	65,233	115,533	175,350
Income (loss) before income taxes	105,281	(6,029,602)	(82,418)	(5,863,202)
Provision for (benefit from) income taxes	12,411	2,947	(40,904)	23,067
Net income (loss)	$92,870	($6,032,549)	($41,514)	($5,886,269)
Earnings per share:
Basic	0.11	-7.45	-0.05	-7.14
Diluted	0.11	-7.45	-0.05	-7.14
Weighted-average shares used in computing per share amounts:
Basic	812,367	809,536	811,302	824,737
Diluted	825,545	809,536	811,302	824,737

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	9 Months Ended Dec. 31, 2009	9 Months Ended Dec. 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($41,514)	($5,886,269)
Depreciation, amortization and other impairment charges	586,392	435,467
Goodwill impairment charge	0	5,949,977
Gain on repurchase of 1% Convertible Subordinated Notes	0	(22,325)
Provision for doubtful accounts	27,239	66,588
Changes in working capital and other, net of acquisitions	177,591	487,797
Net cash provided by operating activities	749,708	1,031,235
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net of dispositions	(120,399)	(373,266)
Acquisition of businesses, net of cash acquired	(66,294)	(199,584)
Proceeds from divestitures of operations	0	5,269
Other investments and notes receivable, net	259,753	(8,085)
Net cash provided by (used in) investing activities	73,060	(575,666)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings and long-term debt	785,111	9,317,918
Repayments of bank borrowings, long-term debt and capital lease obligations	(997,001)	(9,289,583)
Payments for repurchase of long-term debt	(203,183)	(226,199)
Payments for repurchases of ordinary shares	0	(260,074)
Net proceeds from issuance of ordinary shares	4,559	12,842
Net cash used in financing activities	(410,514)	(445,096)
Effect of exchange rates on cash	7,730	65,858
Net increase in cash and cash equivalents	419,984	76,331
Cash and cash equivalents, beginning of period	1,821,886	1,719,948
Cash and cash equivalents, end of period	$2,241,870	$1,796,279

Organization of the Company

Organization of the Company
	9 Months Ended Dec. 31, 2009 USD / shares
Organization of the 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 May 1990. 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
	9 Months Ended Dec. 31, 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 Form10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month and nine-month periods ended December 31, 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 February 2, 2010. The Companys third fiscal quarter ends on December31, and the fourth fiscal quarter and year ends on March31 of each year. The first fiscal quarters ended on July 3, 2009 and June 27, 2008, respectively, and the second fiscal quarters ended on October 2, 2009 and September 26, 2008, respectively. Customer Credit Risk The Company has an established customer credit policy, through which it manages customer credit exposures through credit evaluations, credit limit setting, monitoring, and enforcement of credit limits for new and existing customers. The Company performs ongoing credit evaluations of its customers financial condition and makes provisions for doubtful accounts based on the outcome of those credit evaluations. The Company evaluates the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collections and the age of past due receivables. To the extent the Company identifies exposures as a result of credit or customer evaluations, the Company also reviews other customer related exposures, including but not limited to inventory and related contractual obligations. During the three-month and nine-month periods ended December 31, 2008, the Company incurred $145.3 million and $262.7 million of charges, respectively, for Nortel and other customers that filed for bankruptcy or restructuring protection or otherwise were experiencing significant financial and liquidity difficulties. Of these charges, the Company classified approximately $98.0 million and $194.7 million in cost of sales related to the write-down of inventory and associated contractual obligations and $47.3 million and $68.0 million as selling, general and administrative expenses for provisions for doubtful accounts and other claims, respectively. In November 2009, the Company agreed to a settlement with Nortel primarily related to pre-bankruptcy petition claims. As a result, the Company revised its estimates related to the recovery of Norte

Stock Based Compensation

Stock Based Compensation
	9 Months Ended Dec. 31, 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 Note2, Summary of Accounting Policies, of the Notes to Consolidated Financial Statements in the Companys Annual Report on Form10-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 Nine-Month Periods Ended December 31, December 31, 2009 2008 2009 2008 (In thousands) (In thousands) Cost of sales $ 2,712 $ 2,607 $ 7,727 $ 6,798 Selling, general and administrative expenses 11,275 15,179 34,458 42,500 Total stock-based compensation expense $ 13,987 $ 17,786 $ 42,185 $ 49,298 On July 14, 2009, the Company launched an exchange offer under which eligible employees had 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 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 was 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 made participation in the program illegal, inadvisable or impractical, and where exclusion otherwise was consistent with the Companys compensation policies with respect to those jurisdictions. The Exchange offer was not open to the Companys Board of Directors or its executive officers. To be eligible for exchange an option must: (i) have had an exercise price of at least $10.00 per share, (ii) have been outstanding, and (iii) have been granted at least 12 months prior to the commencement date of the Exchange offer. All replacement option grants were subject to a vesting schedule of two, three or four years from the date of grant of the replacement options depending on the remaining vesting period of the option grants surrendered for cancellation in the Exchange. The number of replacement options an eligible employee received in exchange for an eligible option grant was determined by an exchange ratio applicable to that option. Stock options with exercise prices between $10.00 and $11.99 were exchangeable for new options at a rate of 1.5 existing options per new option grant, and stock options with exercise prices of $12.00 or more were exchangeable at a rate of 2.4 existing options per new option grant. Outstanding options covering approximately 29.8 million shares were eligible to participate in the Exchange. The Exchange was completed on August 11, 2009. Approximately 27.9 million stock options were tendered in the Exchange, and approximately 16.9 million replacement options were granted with an exercise price of $5.57, a weighted average vesting term of 1.58 years, and a con

Earnings Per Share

Earnings Per Share
	9 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [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 December 31, Nine-Month Periods Ended December 31, 2009 2008 2009 2008 (In thousands, except per share amounts) Basic earnings per share: Net income (loss) $ 92,870 $ (6,032,549) $ (41,514) $ (5,886,269) Shares used in computation: Weighted-average ordinary shares outstanding 812,367 809,536 811,302 824,737 Basic earnings (loss) per share $ 0.11 $ (7.45) $ (0.05) $ (7.14) Diluted earnings per share: Net income (loss) $ 92,870 $ (6,032,549) $ (41,514) $ (5,886,269) Shares used in computation: Weighted-average ordinary shares outstanding 812,367 809,536 811,302 824,737 Weighted-average ordinary share equivalents from stock options and awards (1) 13,178 Weighted-average ordinary share equivalents from convertible notes (2) Weighted-average ordinary shares and ordinary share equivalents outstanding 825,545 809,536 811,302 824,737 Diluted earnings (loss) per share $ 0.11 $ (7.45) $ (0.05) $ (7.14) (1) As a result of the Companys net loss for the nine-month period ended December 31, 2009, ordinary share equivalents from approximately 7.9 million options and share bonus awards were excluded from the calculation of diluted earnings (loss) per share. Ordinary share equivalents from stock options to purchase approximately 26.8 million and 42.7 million shares outstanding during the three-month and nine-month periods ended December 31, 2009, respectively, and 73.3 million and 68.2 million shares outstanding during the three-month and nine-month periods ended December 31, 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) On July 31, 2009, the principal amount of the Companys Zero Coupon Convertible Junior Subordinated Notes was settled in cash upon maturity. These notes carried conversion provisions to issue shares to settle any conversion spread (excess of the conversion value over the conversion price) in stock. The conversion price was $10.50 per share. On the maturity date the Companys stock price was less than the conversion price, and therefore no shares were issued. During December 2008, the Company purchased an aggregate principal amount of $260.0 million 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 32.2 million to approximately 15.5 million. 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

Other Comprehensive Income

Other Comprehensive Income
	9 Months Ended Dec. 31, 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 Nine-Month Periods Ended December 31, December 31, 2009 2008 2009 2008 (In thousands) (In thousands) Net income (loss) $ 92,870 $ (6,032,549) $ (41,514) $ (5,886,269) Other comprehensive income: Foreign currency translation adjustment (11,468) (25,219) 16,461 (44,404) Unrealized gain (loss) on derivative instruments, and other income (loss), net of taxes 4,645 (34,091) 18,633 (25,896) Comprehensive income (loss) $ 86,047 $ (6,091,859) $ (6,420) $ (5,956,569)

Bank Borrowings and Long Term D

Bank Borrowings and Long Term Debt
	9 Months Ended Dec. 31, 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 December 31, 2009 March 31, 2009 (In thousands) 0.00% convertible junior subordinated notes due July 2009 $ - $ 189,045 1.00% convertible subordinated notes due August 2010 230,147 218,391 6.50% senior subordinated notes due May 2013 299,806 399,622 6.25% senior subordinated notes due November 2014 302,172 402,090 Term Loan Agreement, including current portion, due in installments through October 2014 1,696,110 1,709,116 Other 20,066 23,270 2,548,301 2,941,534 Current portion (255,273) (207,991) Non-current portion $ 2,293,028 $ 2,733,543 As of December 31, 2009 and March 31, 2009, there were no borrowings outstanding under the Companys $2.0 billion credit facility, and the Company was in compliance with the financial covenants under this credit facility. On July 31, 2009, the Company paid $195.0 million to redeem the Zero Coupon Convertible Junior Subordinated Notes upon their maturity. These notes carried conversion provisions to issue shares to settle any conversion spread (excess of the conversion value over the conversion price) in stock. The conversion price was $10.50 per share. On the maturity date, the Companys stock price was less than the conversion price, and therefore no shares were issued. During June 2009, the Company paid approximately $203.2 million to purchase an aggregate principal amount of $99.8 million of its outstanding 6.5% Senior Subordinated Notes due 2013 and an aggregate principal amount of $99.9 million of its outstanding 6.25% Senior Subordinated Notes due 2014 collectively referred to as the Notes in a cash tender offer (the Offer). The cash paid included $8.8 million 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 are being recognized as a component of interest expense over the remaining life of the Notes. The Company recognized an immaterial gain during the nine-month period ended December 31, 2009 associated with the partial extinguishment of the Notes, net of approximately $5.3 million for 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. In conjunction with the Offer, the Company obtained consents 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. Adjustments to Beginning Accumulated Deficit and Interest Expense On April 1, 2009, the Company adopted a new accounting standard related to accounting for convertible debt instruments that may be settled in cash upon conversion.

Financial Instruments

Financial Instruments
	9 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments [Abstract]
FINANCIAL INSTRUMENTS	7. FINANCIAL INSTRUMENTS Foreign Currency Contracts As of December 31, 2009, the aggregate notional amount of the Companys outstanding foreign currency forward and swap contracts was $2.1 billion as summarized below: Foreign Contract Currency Value in Currency Buy/Sell Amount USD Cash Flow Hedges EUR Buy 19,209 $ 27,516 EUR Sell 14,243 20,896 HUF Buy 10,079,200 53,021 MXN Buy 1,363,000 104,555 Other Buy N/A 60,927 266,915 Other Forward/Swap Contracts BRL Sell 128,500 73,766 CAD Buy 56,008 53,235 CAD Sell 95,011 89,935 CNY Buy 485,092 71,000 EUR Buy 171,681 249,203 EUR Sell 339,511 487,631 GBP Sell 41,973 66,585 HUF Buy 8,768,000 46,123 MYR Buy 181,173 52,895 SEK Buy 2,406,645 335,122 SEK Sell 367,493 51,127 Other Buy N/A 176,310 Other Sell N/A 100,506 1,853,438 Total Notional Contract Value in USD $ 2,120,353 As of December 31, 2009 and March31, 2009, the fair value of the Companys short-term foreign currency contracts was not material and is included in Other current assets or Other current liabilities, as applicable, in the Condensed Consolidated Balance 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 treated as hedges under the accounting standards. 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 December 31, 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. These deferred gains and losses were not material, and the deferred gains as of December 31, 2009 are expected to be recognized as a component of gross profit 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 agreement. During fiscal years 2009 and 2008, the Company entered into interest rate swap agreements to mitigate the exposure to interest rate risk resulting from unfavorab

Trade Receivables Securitizatio

Trade Receivables Securitization
	9 Months Ended Dec. 31, 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 and nine-month periods ended December 31, 2009 and December 31, 2008 were not material and are included in Interest and other expense, net within the Condensed Consolidated Statements of Operations. As the Company estimates that the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets or liabilities are recognized. During October 2009, the agreement was amended such that the Obligor Specific Tranche (OST) in the amount of $100.0 million was removed, and the maximum investment limit of the two commercial paper conduits was increased to $500.0 million exclusive of the OST. Additionally, the Company now pays commitment and program fees totaling 1.5% per annum under the facility to the extent funded through the issuance of commercial paper. The third-party special purpose entity is a qualifying special purpose entity, and accordingly, the Company does not consolidate this entity. As of December 31, 2009 and March 31, 2009, approximately $677.2million and $422.0million 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 $399.2 million and $298.1million from the commercial paper conduits for the sale of these receivables as of December 31, 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 conduits is recognized as a loss on sale of the receivables and recorded in Interest and other expense, net in the Condensed Consolidated Statements of Operations. The Company has a recourse obligation that is limited to the deferr

Restructuring Charges

Restructuring Charges
	9 Months Ended Dec. 31, 2009 USD / shares
Restructuring Charges [Abstract]
RESTRUCTURING CHARGES	9. RESTRUCTURING CHARGES The Company recognized restructuring charges of approximately $9.8 million and $87.2 million during the three-month and nine-month periods ended December 31, 2009 as part of its restructuring plans previously announced in March 2009 in order to rationalize the Companys global manufacturing capacity and infrastructure in response to 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 for the nine-month period amounted to approximately $39.7 million, $19.9 million and $27.6 million for Asia, the Americas and Europe, respectively. The Company classified approximately $9.6 million and $74.1 million of these charges as a component of cost of sales during the three-month and nine-month periods ended December 31, 2009, respectively. During the nine-month period ended December 31, 2009 the Company recognized approximately $33.1 million of employee termination costs associated with the involuntary terminations of 4,286 identified employees. The involuntary employee terminations by reportable geographic region for the nine-month period ended December 31, 2009, amounted to approximately 1,325, 2,094 and 867 for Asia, the Americas and Europe, respectively. Approximately $29.2 million of these charges were classified as a component of cost of sales. During the nine-month period ended December 31, 2009, the Company recognized approximately $38.4 million for the write-down of property and equipment, which is no longer in use, to managements estimate of fair value. Approximately $28.7 million of these charges were classified as a component of cost of sales. The restructuring charges recognized during the nine-month period ended December 31, 2009 also included approximately $15.7 million for other exit costs, the majority of which were classified as a component of cost of sales. Other exit costs were primarily comprised of contractual obligations associated with facility and equipment lease terminations and facility abandonment and refurbishment costs. The following table summarizes the provisions, respective payments, and remaining accrued balance as of December 31, 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-c

Other Charges

Other Charges (Income), Net
	9 Months Ended Dec. 31, 2009 USD / shares
Other Charges (Income), Net [Abstract]
Other Charges (Income), Net	10. OTHER CHARGES (INCOME), NET During the nine-month period ended December 31, 2009, the Company recognized impairment charges totaling approximately $199.4 million related to our equity investments and notes receivable. Refer to Note 2, Summary of Accounting Policies for further discussion. During the three-month and nine-month periods ended December 31, 2008, the Company recognized $25.5 million and $37.5 million, respectively, in charges for the other-than-temporary impairment of certain of the Companys investments in companies that were experiencing significant financial and liquidity difficulties. Refer to Note 2, Summary of Accounting Policies to the Consolidated Financial Statements in the Companys Annual Report on Form10-K for the fiscal year ended March31, 2009 for further discussion. These charges were partially offset by a gain of approximately $22.3 million associated with the partial extinguishment of the Companys 1% Convertible Subordinated Notes due August 1, 2010, adjusted for the retrospective adoption of a new accounting standard as discussed in Note 6.

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	11. 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
	9 Months Ended Dec. 31, 2009 USD / shares
Business and Asset Acquisitions [Abstract]
BUSINESS AND ASSET ACQUISITIONS	12. BUSINESS AND ASSET ACQUISITIONS During the nine-month period ended December 31, 2009, the Company paid approximately $66.3 million, net of cash acquired, for contingent consideration, deferred purchase price payments related to four historical acquisitions, and payments for two completed acquisitions. The completed acquisitions were not individually, nor in the aggregate, significant to the Companys consolidated results of operations and financial position. The acquired businesses expanded the Companys capabilities in the medical and automotive market segments. The purchase price for certain historical acquisitions completed prior to fiscal 2010 is subject to adjustments for contingent consideration and generally has not been recorded as part of the purchase price, pending the outcome of the contingency. Contingent considerations and provisional fair value adjustments for acquisitions completed in fiscal year 2010 are subject to change as certain information as of the date of the respective acquisition is evaluated during the measurement period, not to exceed one year subsequent to the acquisition date. During the nine-month period ended December 31, 2008, the Company completed six acquisitions that were not individually, nor 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, industrial and consumer digital market segments, and expanded the Companys power supply capabilities. The aggregate cash paid for these acquisitions totaled approximately $197.1 million, net of cash acquired. The Company recorded goodwill of $112.0 million from these acquisitions. The purchase prices for these acquisitions were allocated on the basis of the estimated fair value of assets acquired and liabilities assumed. The Company paid approximately $2.4 million relating to a contingent purchase price adjustment from a certain historical acquisition. The purchase price for certain acquisitions prior to fiscal 2010 is subject to adjustment for contingent consideration, based upon the business achieving specified levels of earnings through fiscal year 2010. Generally, the contingent consideration for these acquisitions has not been recorded as part of the purchase price, pending the outcome of the contingency.