Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 25, 2015 | Oct. 20, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | FLEXTRONICS INTERNATIONAL LTD. | |
Entity Central Index Key | 866,374 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 25, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 556,305,165 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 25, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,668,427 | $ 1,628,408 |
Accounts receivable, net of allowance for doubtful accounts | 2,546,810 | 2,337,515 |
Inventories | 3,561,326 | 3,488,752 |
Other current assets | 1,208,931 | 1,286,225 |
Total current assets | 8,985,494 | 8,740,900 |
Property and equipment, net | 2,218,030 | 2,092,167 |
Goodwill and other intangible assets, net | 981,838 | 415,175 |
Other assets | 474,977 | 417,382 |
Total assets | 12,660,339 | 11,665,624 |
Current liabilities: | ||
Bank borrowings and current portion of long-term debt | 47,972 | 46,162 |
Accounts payable | 4,787,941 | 4,561,194 |
Accrued payroll | 401,000 | 339,739 |
Other current liabilities | 1,795,867 | 1,809,128 |
Total current liabilities | 7,032,780 | 6,756,223 |
Long-term debt, net of current portion | 2,618,178 | 2,037,571 |
Other liabilities | $ 553,806 | $ 475,580 |
Commitments and contingencies (Note 13) | ||
Flextronics International Ltd. shareholders’ equity | ||
Ordinary shares, no par value; 607,536,479 and 613,562,761 issued, and 557,297,124 and 563,323,406 outstanding as of September 25, 2015 and March 31, 2015, respectively | $ 7,111,513 | $ 7,265,827 |
Treasury stock, at cost; 50,239,355 shares as of September 25, 2015 and March 31, 2015 | (388,215) | (388,215) |
Accumulated deficit | (4,102,466) | (4,336,293) |
Accumulated other comprehensive loss | (200,704) | (180,505) |
Total Flextronics International Ltd. shareholders’ equity | 2,420,128 | 2,360,814 |
Noncontrolling interests | 35,447 | 35,436 |
Total shareholders’ equity | 2,455,575 | 2,396,250 |
Total liabilities and shareholders’ equity | $ 12,660,339 | $ 11,665,624 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 25, 2015 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, issued | 607,536,479 | 613,562,761 |
Ordinary shares, outstanding | 557,297,124 | 563,323,406 |
Treasury stock, 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. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,316,762 | $ 6,528,517 | $ 11,883,010 | $ 13,171,262 |
Cost of sales | 5,919,846 | 6,151,436 | 11,133,753 | 12,413,396 |
Gross profit | 396,916 | 377,081 | 749,257 | 757,866 |
Selling, general and administrative expenses | 216,796 | 204,590 | 426,181 | 413,867 |
Intangible amortization | 16,127 | 8,232 | 23,798 | 15,183 |
Interest and other, net | 22,035 | 12,506 | 38,540 | 31,143 |
Other charges (income), net | 1,678 | (2,584) | 1,842 | (46,593) |
Income before income taxes | 140,280 | 154,337 | 258,896 | 344,266 |
Provision for income taxes | 17,303 | 15,434 | 25,069 | 31,476 |
Net income | $ 122,977 | $ 138,903 | $ 233,827 | $ 312,790 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.22 | $ 0.24 | $ 0.41 | $ 0.53 |
Diluted (in dollars per share) | $ 0.22 | $ 0.23 | $ 0.41 | $ 0.52 |
Weighted-average shares used in computing per share amounts: | ||||
Basic (in shares) | 563,333 | 585,760 | 564,417 | 586,497 |
Diluted (in shares) | 569,655 | 595,871 | 573,288 | 598,586 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 122,977 | $ 138,903 | $ 233,827 | $ 312,790 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (30,267) | (5,683) | (27,484) | (9,828) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (5,544) | (2,433) | 7,285 | 8,292 |
Comprehensive income | $ 87,166 | $ 130,787 | $ 213,628 | $ 311,254 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on derivative instruments and other, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 233,827 | $ 312,790 |
Depreciation, amortization and other impairment charges | 230,894 | 260,328 |
Changes in working capital and other | 197,274 | (266,873) |
Net cash provided by operating activities | 661,995 | 306,245 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (296,401) | (167,204) |
Proceeds from the disposition of property and equipment | 2,383 | 28,809 |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (641,913) | (38,082) |
Other investing activities, net | (10,516) | (28,855) |
Net cash used in investing activities | (946,447) | (205,332) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from bank borrowings and long-term debt | 595,553 | 11,387 |
Repayments of bank borrowings and long-term debt | (21,090) | (9,185) |
Payments for repurchases of ordinary shares | (241,978) | (206,771) |
Net proceeds from issuance of ordinary shares | 49,074 | 11,412 |
Other financing activities, net | (37,872) | 3,382 |
Net cash provided by (used in) financing activities | 343,687 | (189,775) |
Effect of exchange rates on cash and cash equivalents | (19,216) | 9,486 |
Net increase (decrease) in cash and cash equivalents | 40,019 | (79,376) |
Cash and cash equivalents, beginning of period | 1,628,408 | 1,593,728 |
Cash and cash equivalents, end of period | 1,668,427 | 1,514,352 |
Non-cash investing activity: | ||
Unpaid purchases of property and equipment | $ 99,178 | $ 51,814 |
ORGANIZATION OF THE COMPANY AND
ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION | 6 Months Ended |
Sep. 25, 2015 | |
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 Flextronics International Ltd. ("Flex", or the "Company") was incorporated in the Republic of Singapore in May 1990. The Company's operations have expanded over the years through a combination of organic growth and acquisitions. The Company is a globally-recognized leading provider of innovative design, engineering, manufacturing, and supply chain services and solutions that span from sketch to scale ; from conceptual sketch to full-scale production. The Company designs, builds, ships and services complete packaged consumer electronics and industrial products for original equipment manufacturers ("OEMs"), through its activities in the following reportable segments: High Reliability Solutions ("HRS"), which is comprised of medical business including medical equipment, disposables, drug delivery, and diagnostics; our automotive business, including automotive electronics, automotive lighting, and power electronics; and defense and aerospace businesses focused on defense, civil aviation, and homeland security; Consumer Technology Group ("CTG"), which includes mobile devices business, including smart phones; consumer electronics business, including connected living, wearable electronics, digital health, game consoles, and connectivity devices; and high-volume computing business, including various supply chain solutions for notebook personal computing, tablets, and printers; Industrial and Emerging Industries ("IEI"), which is comprised of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting; and Integrated Network Solutions ("INS"), which includes radio access base stations, remote radio heads, and small cells for wireless infrastructure; optical, routing, broadcasting and switching products for the data and video network; server and storage platforms for both enterprise and cloud based deployments; next generation storage and security appliance products; and rack level solutions, converged infrastructure and software defined product solutions. The Company's strategy is to provide customers with a full range of cost competitive, vertically integrated global supply chain solutions through which the Company can design, build, ship and service a complete packaged product for its OEM customers. This enables our OEM customers to leverage the Company's supply chain solutions to meet their product requirements throughout the entire product life cycle. The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance) and supply chain management software solutions and component product offerings (including rigid and flexible printed circuit boards and power adapters and chargers). Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, 2015 contained in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month and six-month periods ended September 25, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016 . The first quarters for fiscal year 2016 and fiscal year 2015 ended on June 26, 2015 and June 27, 2014 , respectively. The second quarters for fiscal year 2016 and fiscal year 2015 ended on September 25, 2015 and September 26, 2014 , respectively. The accompanying unaudited condensed consolidated financial statements include the financial position and results of operations of a majority-owned subsidiary of the Company. Noncontrolling interests are presented as a separate component of total shareholders' equity in the condensed consolidated balance sheets. The operating results of the subsidiary attributable to the noncontrolling interests are immaterial for all of the periods presented, and are included in other charges (income), net in the condensed consolidated statements of operations. Recent Accounting Pronouncement In September 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. Under previous guidance, the acquirer retrospectively adjusted the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill, and would have to revise comparative information for prior periods presented in financial statements as needed. The update requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new guidance is effective for the Company beginning fiscal year 2017, with early application permitted. The Company is currently assessing the impact of this update and the timing of adoption. In July 2015, the FASB issued new guidance to simplify the measurement of inventory, by requiring that inventory be measured at the lower of cost and net realizable value. Prior to the issuance of the new guidance, inventory was measured at the lower of cost or market. This guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact of this update and the timing of adoption. In May 2014, the FASB issued new guidance which requires an entity to recognize revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. In order to meet this requirement, the entity must apply the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of the standard by a year. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019. The Company is in the process of assessing the impact on its consolidated financial statements. |
BALANCE SHEET ITEMS
BALANCE SHEET ITEMS | 6 Months Ended |
Sep. 25, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET ITEMS | BALANCE SHEET ITEMS Inventories The components of inventories, net of applicable lower of cost or market write-downs, were as follows: As of As of (In thousands) Raw materials $ 2,265,927 $ 2,330,428 Work-in-progress 669,280 557,786 Finished goods 626,119 600,538 $ 3,561,326 $ 3,488,752 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 25, 2015 : HRS CTG IEI INS Amount (In thousands) Balance, beginning of the year $ 93,138 $ 68,234 $ 64,221 $ 108,038 $ 333,631 Additions (1) 292,608 — 2,982 3,575 299,165 Purchase accounting adjustments (2) 125 — — — 125 Foreign currency translation adjustments (5,562 ) — — — (5,562 ) Balance, end of the period $ 380,309 $ 68,234 $ 67,203 $ 111,613 $ 627,359 (1) The goodwill generated from the Company’s business combinations completed during the six-month period ended September 25, 2015 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired businesses. The goodwill is not deductible for income tax purposes. See note 12 for additional information. (2) Includes adjustments based on management's estimates resulting from their review and finalization of the valuation of assets and liabilities acquired through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company. The components of acquired intangible assets are as follows: As of September 25, 2015 As of March 31, 2015 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 279,204 $ (93,401 ) $ 185,803 $ 133,853 $ (80,506 ) $ 53,347 Licenses and other intangibles 190,742 (22,066 ) 168,676 39,985 (11,788 ) 28,197 Total $ 469,946 $ (115,467 ) $ 354,479 $ 173,838 $ (92,294 ) $ 81,544 The gross carrying amounts of intangible assets are removed when the recorded amounts have been fully amortized. During the six-month period ended September 25, 2015 , the total value of intangibles assets increased primarily in connection with the Company's acquisition of Mirror Controls International ("MCi"). This acquisition contributed an additional $131.4 million in customer-related intangible assets, and $148.6 million in licenses and other intangibles assets. See note 12 for additional information. The estimated future annual amortization expense for intangible assets is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2016 (1) $ 30,583 2017 54,734 2018 48,934 2019 44,593 2020 39,971 Thereafter 135,664 Total amortization expense $ 354,479 ____________________________________________________________ (1) Represents estimated amortization for the remaining six -month period ending March 31, 2016 . Other Current Assets Other current assets includes approximately $537.6 million and $600.7 million as of September 25, 2015 and March 31, 2015 , respectively, for the deferred purchase price receivable from the Company's Global and North American Asset-Backed Securitization programs. See note 10 for additional information. In connection with a prior acquisition, the Company entered into an agreement with a customer and a third party banking institution to procure certain manufacturing equipment that was financed by the third party banking institution, acting as an agent of the customer. The manufacturing equipment was used exclusively for the benefit of this customer. The Company cannot be required to pay cash by either the customer or the third party banking institution. During fiscal year 2015, the Company ceased manufacturing of the product related to the financed equipment. As a result, the Company as an agent on behalf of the customer is in the process of dispositioning the equipment and forwarding the proceeds to the third party banking institution reducing the outstanding obligation. Included in other current assets is the value of the certain assets purchased on behalf of a customer and financed by a third party banking institution in the amounts of $83.7 million and $169.2 million as of September 25, 2015 and March 31, 2015 , respectively. Additionally, other current assets as of September 25, 2015 includes an amount of $73.6 million relating to these assets that have been sold to third parties but not yet collected. During the six-month period ended September 25, 2015 , the Company disposed of all of the assets and the remaining amount of $83.7 million reflects the shortfall between the original purchase price of these assets and the amount recovered by selling them to third parties. The Company expects this amount to be funded by the customer, which in turn would be paid back to the third party banking institution. Other Current Liabilities Other current liabilities includes customer working capital advances of $147.1 million and $189.6 million , customer-related accruals of $506.2 million and $454.8 million , and deferred revenue of $278.4 million and $272.6 million as of September 25, 2015 and March 31, 2015 , 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. Other current liabilities also includes the outstanding balance due to the third party banking institution related to the financed equipment discussed above, that amounted to $161.5 million and $197.7 million as of September 25, 2015 and March 31, 2015 , respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 25, 2015 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The following table summarizes the Company’s share-based compensation expense: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands) Cost of sales $ 2,015 $ 1,868 $ 4,033 $ 3,478 Selling, general and administrative expenses 14,185 9,051 28,293 19,122 Total share-based compensation expense $ 16,200 $ 10,919 $ 32,326 $ 22,600 Total unrecognized compensation expense related to share options is not significant. As of September 25, 2015 , the number of options outstanding and exercisable was 5.8 million at a weighted-average exercise price of $5.44 per share. During the six-month period ended September 25, 2015 , the Company granted 6.1 million unvested share bonus awards under the Company's 2010 Equity Incentive Plan. Of this amount, approximately 5.2 million unvested share bonus awards have an average grant date price of $11.97 per share. Further, approximately 0.7 million of these unvested shares represents the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions. The average grant date fair value of these awards contingent on certain market conditions was estimated to be $14.96 per award and was calculated using a Monte Carlo simulation. The remaining 0.2 million of unvested shares bonus awards have an average grant date price of $12.10 per share and represents the target amount of grants made to certain executive officers whereby vesting is contingent on meeting certain free cash flow targets. The number of shares contingent on market conditions that ultimately will vest range from zero up to a maximum of 1.4 million based on a measurement of the percentile rank of the Company’s total shareholder return over a certain specified period against the Standard and Poor’s (“S&P”) 500 Composite Index and will cliff vest after a period of three years, if such market conditions have been met. The number of shares contingent on free cash flow targets that ultimately will vest range from zero up to a maximum of 0.4 million of the target payment based on a measurement of cumulative three -year increase of free cash flow from operations of the Company, and will cliff vest after a period of three years. As of September 25, 2015 , approximately 17.3 million unvested share bonus awards were outstanding, of which vesting for a targeted amount of 3.7 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 7.4 million based on the achievement levels of the respective conditions. During the six -month period ended September 25, 2015 , 2.2 million shares vested in connection with the share bonus awards with market conditions granted in fiscal year 2013, and 0.5 million shares vested in connection with the share bonus awards with market conditions granted in fiscal year 2012. As of September 25, 2015 , total unrecognized compensation expense related to unvested share bonus awards is $122.5 million , net of estimated forfeitures, and will be recognized over a weighted-average remaining vesting period of 2.76 years. Approximately $20.0 million of the total unrecognized compensation cost, net of estimated forfeitures, is related to awards whereby vesting is contingent on meeting certain market conditions. Subsequent to September 25, 2015, in conjunction with the acquisition of NEXTracker Inc. ("NEXTracker"), the Company agreed to assume all of the outstanding, unvested restricted stock units and outstanding, unvested options to purchase shares of common stock of NEXTracker. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Sep. 25, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flextronics International Ltd.: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands, except per share amounts) Net income $ 122,977 $ 138,903 $ 233,827 $ 312,790 Shares used in computation: Weighted-average ordinary shares outstanding 563,333 585,760 564,417 586,497 Basic earnings per share 0.22 0.24 0.41 0.53 Diluted earnings per share: Net income $ 122,977 $ 138,903 $ 233,827 $ 312,790 Shares used in computation: Weighted-average ordinary shares outstanding 563,333 585,760 564,417 586,497 Weighted-average ordinary share equivalents from stock options and awards (1) (2) 6,322 10,111 8,871 12,089 Weighted-average ordinary shares and ordinary share equivalents outstanding 569,655 595,871 573,288 598,586 Diluted earnings per share 0.22 0.23 0.41 0.52 ____________________________________________________________ (1) Options to purchase ordinary shares of 1.1 million and 7.0 million during the three -month periods ended September 25, 2015 and September 26, 2014 , respectively, and share bonus awards of 5.3 million and 0.8 million for the three-month periods ended September 25, 2015 and September 26, 2014 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) Options to purchase ordinary shares of 1.2 million and 12.1 million during the six-month periods ended September 25, 2015 and September 26, 2014 , respectively, and share bonus awards of 2.9 million and 0.4 million for the six-month periods ended September 25, 2015 and September 26, 2014 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. |
BANK BORROWINGS AND LONG TERM D
BANK BORROWINGS AND LONG TERM DEBT | 6 Months Ended |
Sep. 25, 2015 | |
Debt Disclosure [Abstract] | |
BANK BORROWINGS AND LONG TERM DEBT | BANK BORROWINGS AND LONG TERM DEBT Bank borrowings and long-term debt are as follows: As of September 25, 2015 As of March 31, 2015 (In thousands) Term Loan, including current portion, due in installments through August 2018 $ 588,750 $ 592,500 Term Loan, including current portion, due in installments through March 2019 468,750 475,000 4.625% Notes due February 2020 500,000 500,000 5.000% Notes due February 2023 500,000 500,000 4.750% Notes due June 2025 595,402 — Other 13,248 16,233 Total $ 2,666,150 $ 2,083,733 The weighted-average interest rates for the Company’s long-term debt were 3.5% and 3.2% as of September 25, 2015 and March 31, 2015 , respectively, On June 8, 2015, the Company issued $600 million of 4.750% Notes ("Notes") due June 15, 2025 in a private offering pursuant to Rule 144A and Regulation S under the Securities Act, at a discount of 99.213% , and an effective rate of approximately 4.850% . The Company received net proceeds of approximately $595.3 million from the issuance which will be used for general corporate purposes. The Company incurred approximately $7.9 million of costs in conjunction with the issuance of the Notes. The issuance costs were capitalized and will be amortized over the life of the Notes. Interest on the Notes is payable semi-annually, commencing on December 15, 2015 . The Notes are senior unsecured obligations of the Company, rank equally with all of the Company's other existing and future senior and unsecured debt obligations, and are guaranteed, jointly and severally, fully and unconditionally on an unsecured basis, by each of the Company's 100% owned subsidiaries that guarantees indebtedness under, or is a borrower under, the Company's Term Loan Agreement and Revolving Line of Credit. At any time prior to March 15, 2025 , the Company may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus an applicable premium and accrued and unpaid interest, if any, to the applicable redemption date. Upon the occurrence of a change of control repurchase event (as defined in the Notes indenture), the Company must offer to repurchase the Notes at a repurchase price equal to 101% of the principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, to the applicable repurchase date. The indenture governing the Notes contains covenants that, among other things, restrict the ability of the Company and certain of the Company's subsidiaries to create liens; enter into sale-leaseback transactions; create, incur, issue, assume or guarantee any funded debt; and consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person, or permit any other person to consolidate, merge, combine or amalgamate with or into the Company. These covenants are subject to a number of significant limitations and exceptions set forth in the indenture. The indenture also provides for customary events of default, including, but not limited to, cross defaults to certain specified other debt of the Company and its subsidiaries. In the case of an event of default arising from specified events of bankruptcy or insolvency, all outstanding Notes will become due and payable immediately without further action or notice. If any other event of default under the agreement occurs or is continuing, the applicable trustee or holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare all of the Notes to be due and payable immediately, but upon certain conditions such declaration and its consequences may be rescinded and annulled by the holders of a majority in principal amount of the Notes. As of September 25, 2015 , the Company was in compliance with the covenants in the indenture governing the Notes. In connection with the issuance of the Notes, the Company entered into a registration rights agreement under which it has agreed to consummate an offer registered with the Securities and Exchange Commission to issue new notes having terms substantially identical to the Notes (except that the new notes will not be subject to restrictions on transfer) in exchange for outstanding Notes. In some circumstances, the Company may be required to file a shelf registration statement to cover resale of the Notes. If the Company fails to satisfy these obligations, the Company may be required to pay additional interest to holders of the Notes under certain circumstances. Repayment of the Company’s long term debt outstanding as of September 25, 2015 is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2016 (1) $ 30,000 2017 52,500 2018 52,500 2019 922,500 2020 500,000 Thereafter 1,108,650 Total $ 2,666,150 ____________________________________________________________ (1) Represents scheduled repayment for the remaining six -month period ending March 31, 2016 . On September 30, 2015, the Company amended its $2.0 billion credit facility to increase the $500 million term loan maturing in March 2019 by an additional borrowing of $100.0 million . All other terms remained unchanged. On October 1, 2015, the Company entered into a €50 million (approximately $56.0 million as of September 25, 2015), 5 -year, unsecured, term-loan agreement due September 30, 2020. |
INTEREST AND OTHER, NET
INTEREST AND OTHER, NET | 6 Months Ended |
Sep. 25, 2015 | |
INTEREST AND OTHER, NET | |
INTEREST AND OTHER, NET | INTEREST AND OTHER, NET During the three-month and six-month periods ended September 25, 2015 , the Company recognized interest expense of $25.1 million and $45.2 million , respectively, on its debt obligations outstanding during the periods. During the three-month and six-month periods ended September 26, 2014 , the Company recognized interest expense of $19.0 million and $37.5 million , respectively. During the three-month and six-month periods ended September 25, 2015 , the Company recognized interest income of $4.3 million and $7.8 million , respectively. During the three-month and six-month periods ended September 26, 2014 , the Company recognized interest income of $4.8 million and $10.1 million , respectively. During the three-month and six-month periods ended September 25, 2015 , the Company recognized gains on foreign exchange transactions of $12.4 million and $14.6 million , respectively. During the three-month and six-month periods ended September 26, 2014 , the Company recognized gains on foreign exchange transactions of $6.8 million and $5.4 million , respectively. During the three-month and six-month periods ended September 25, 2015 , the Company incurred $8.1 million of acquisition-related costs. |
OTHER CHARGES (INCOME), NET
OTHER CHARGES (INCOME), NET | 6 Months Ended |
Sep. 25, 2015 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER CHARGES (INCOME), NET During the three-month and six-month periods ended September 25, 2015, the Company incurred expenses of $1.6 million related to a refund in connection with the disposition of a certain manufacturing facility in Western Europe. During the six -month period ended September 26, 2014 , an amendment to a customer contract to reimburse a customer for certain performance provisions was executed which included the removal of a $55.0 million contractual obligation recognized during fiscal year 2014. Accordingly, the Company reversed the charge recognized in fiscal year 2014 with a corresponding credit to other charges (income), net in the consolidated statement of operations. Further, during the six -month period ended September 26, 2014 , the Company recognized a loss of $11.0 million in connection with the disposition of a manufacturing facility in Western Europe. The Company received $11.5 million in cash for the sale of $27.2 million in net assets of the facility. The loss also includes $4.6 million of transaction costs, partially offset by a credit of $9.3 million for the release of cumulative foreign translation gains triggered by the disposition. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Sep. 25, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Foreign Currency Contracts The Company primarily enters into forward contracts and foreign currency swap contracts to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of September 25, 2015 , the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.9 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 1,543,000 — $ 241,709 $ — EUR 4,790 60,780 5,367 69,534 HUF 13,758,000 — 49,370 — ILS 176,700 — 44,759 — MXN 1,414,000 — 82,580 — MYR 196,000 — 45,094 — Other N/A N/A 52,524 500 521,403 70,034 Other Foreign Currency Contracts BRL — 686,000 — 165,929 CAD 19,200 12,500 14,403 9,377 CHF 16,919 43,701 17,320 44,712 CNY 4,719,018 3,236,303 738,966 512,000 DKK 197,200 155,700 29,614 23,382 EUR 597,631 1,007,752 670,293 1,130,041 GBP 32,393 59,840 49,449 91,382 HUF 20,332,000 20,408,000 72,961 73,234 ILS 62,000 85,100 15,705 21,556 JPY 2,256,614 1,700,061 18,807 14,079 MXN 1,473,560 331,830 86,059 19,380 MYR 384,331 94,650 88,423 21,776 SEK 474,290 886,483 56,315 105,026 SGD 43,268 8,348 30,353 5,856 Other N/A N/A 91,499 52,884 1,980,167 2,290,614 Total Notional Contract Value in USD $ 2,501,570 $ 2,360,648 As of September 25, 2015 , the fair value of the Company’s short-term foreign currency contracts was not material and is included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of September 25, 2015 and March 31, 2015 , the Company also has included net deferred losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to the effective portion of changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred losses totaled $9.7 million as of September 25, 2015 , 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 25, March 31, Balance Sheet September 25, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 2,507 $ 2,896 Other current liabilities $ 11,923 $ 19,729 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 17,119 $ 22,933 Other current liabilities $ 14,581 $ 11,328 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 period presented. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Sep. 25, 2015 | |
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 25, 2015 September 26, 2014 Unrealized gain Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (55,437 ) $ (109,456 ) $ (164,893 ) $ (22,124 ) $ (97,452 ) $ (119,576 ) Other comprehensive loss before reclassifications (13,818 ) (30,267 ) (44,085 ) (2,965 ) (3,099 ) (6,064 ) Net (gains) losses reclassified from accumulated other comprehensive loss 8,274 — 8,274 532 (2,584 ) (2,052 ) Net current-period other comprehensive loss (5,544 ) (30,267 ) (35,811 ) (2,433 ) (5,683 ) (8,116 ) Ending balance $ (60,981 ) $ (139,723 ) $ (200,704 ) $ (24,557 ) $ (103,135 ) $ (127,692 ) Six-Month Periods Ended September 25, 2015 September 26, 2014 Unrealized gain Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (68,266 ) $ (112,239 ) $ (180,505 ) $ (32,849 ) $ (93,307 ) $ (126,156 ) Other comprehensive gain (loss) before reclassifications (14,419 ) (27,636 ) (42,055 ) (1,965 ) 2,008 43 Net (gains) losses reclassified from accumulated other comprehensive loss 21,704 152 21,856 10,257 (11,836 ) (1,579 ) Net current-period other comprehensive gain (loss) 7,285 (27,484 ) (20,199 ) 8,292 (9,828 ) (1,536 ) Ending balance $ (60,981 ) $ (139,723 ) $ (200,704 ) $ (24,557 ) $ (103,135 ) $ (127,692 ) Net losses reclassified from accumulated other comprehensive loss during the six -month period ended September 25, 2015 relating to derivative instruments and other includes $20.7 million attributable to the Company’s cash flow hedge instruments which were recognized as a component of cost of sales in the condensed consolidated statement of operations. During the six -month period ended September 26, 2014 , the Company recognized a loss of $11.0 million in connection with the disposition of a manufacturing facility in Western Europe. This loss includes the settlement of unrealized losses of $4.2 million on an insignificant defined benefit plan associated with the disposed facility offset by the release of cumulative foreign currency translation gains of $9.3 million , both of which have been reclassified from accumulated other comprehensive loss during the period. The loss on sale is included in other charges (income), net in the condensed consolidated statement of operations. Additionally, net gains reclassified from accumulated other comprehensive loss during the six-month period ended September 26, 2014 includes $2.6 million in connection with cumulative translation gains related to the liquidation of a foreign entity, which is included in other charges (income), net in the condensed consolidated statement of operations. Substantially all unrealized losses relating to derivative instruments and other, reclassified from accumulated other comprehensive loss for the three -month and six-month periods ended September 26, 2014 , was recognized as a component of cost of sales in the condensed consolidated statement of operations, which primarily relate to the Company’s foreign currency contracts accounted for as cash flow hedges. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION | 6 Months Ended |
Sep. 25, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
TRADE RECEIVABLES SECURITIZATION | TRADE RECEIVABLES SECURITIZATION The Company sells trade receivables under two asset-backed securitization programs and under an accounts receivable factoring program. Asset-Backed Securitization Programs The Company continuously sells designated pools of trade receivables under its Global Asset-Backed Securitization Agreement (the “Global Program”) and its North American Asset-Backed Securitization Agreement (the “North American Program,” collectively, the “ABS Programs”) to affiliated special purpose entities, each of which in turn sells 100% of the receivables to unaffiliated financial institutions. These programs allow the operating subsidiaries to receive a cash payment and a deferred purchase price receivable for sold receivables. Following the transfer of the receivables to the special purpose entities, the transferred receivables are isolated from the Company and its affiliates, and upon the sale of the receivables from the special purpose entities to the unaffiliated financial institutions, effective control of the transferred receivables is passed to the unaffiliated financial institutions, which has the right to pledge or sell the receivables. Although the special purpose entities are consolidated by the Company, they are separate corporate entities and their assets are available first to satisfy the claims of their creditors. The investment limits set by the financial institutions are $700.0 million for the Global Program, of which $600.0 million is committed and $100.0 million is uncommitted, and $265.0 million for the North American Program, of which $225.0 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 25, 2015 and September 26, 2014 were not material and are included in interest and other, net within the condensed consolidated statements of operations. As the Company estimates the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets and liabilities are recognized. As of September 25, 2015 , approximately $1.4 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 $890.0 million and deferred purchase price receivables of approximately $537.6 million . As of March 31, 2015 , approximately $1.3 billion of accounts receivable had been sold to the special purpose entities for which the Company had received net cash proceeds of $740.7 million and deferred purchase price receivables of approximately $600.7 million . The portion of the purchase price for the receivables which is not paid by the unaffiliated financial institutions in cash is a deferred purchase price receivable, which is paid to the special purpose entity as payments on the receivables are collected from account debtors. The deferred purchase price receivable represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The deferred purchase price receivables are included in other current assets as of September 25, 2015 and March 31, 2015 , and were carried at the expected recovery amount of the related receivables. The difference between the carrying amount of the receivables sold under these programs and the sum of the cash and fair value of the deferred purchase price receivables received at time of transfer is recognized as a loss on sale of the related receivables and recorded in interest and other, net in the condensed consolidated statements of operations and were immaterial for all periods presented. As of September 25, 2015 and March 31, 2015 , the accounts receivable balances that were sold under the ABS Programs were removed from the condensed consolidated balance sheets and the net cash proceeds received by the Company were included as cash provided by operating activities in the condensed consolidated statements of cash flows. For the six-month periods ended September 25, 2015 and September 26, 2014 , cash flows from sales of receivables under the ABS Programs consisted of approximately $2.4 billion and $2.1 billion , for transfers of receivables, respectively (of which approximately $255.3 million and $76.5 million , respectively, represented new transfers and the remainder proceeds from collections reinvested in revolving-period transfers). The following table summarizes the activity in the deferred purchase price receivables account: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands) Beginning balance $ 516,287 $ 463,124 $ 600,672 $ 470,908 Transfers of receivables 983,677 720,921 1,750,725 1,499,781 Collections (962,345 ) (757,988 ) (1,813,778 ) (1,544,632 ) Ending balance $ 537,619 $ 426,057 $ 537,619 $ 426,057 Trade Accounts Receivable Sale Programs The Company also sold accounts receivables to certain third-party banking institutions. The outstanding balance of receivables sold and not yet collected was approximately $339.1 million and $485.6 million as of September 25, 2015 and March 31, 2015 , respectively. For the six-month periods ended September 25, 2015 and September 26, 2014 , total accounts receivable sold to certain third party banking institutions was approximately $1.2 billion and $2.3 billion , respectively. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows. |
FAIR VALUE MEASUREMENT OF ASSET
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | 6 Months Ended |
Sep. 25, 2015 | |
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. During the three-month period ended September 26, 2014 , the Company accrued for certain contingent consideration in connection with its business acquisitions, which is measured at fair value based on internal cash flow models and other inputs. During the six-month period ended September 25, 2015 , no additions to accrual, payments or fair value adjustments were incurred. The following table summarizes the activities related to contingent consideration: Three-Month Periods Ended Six-Month Periods Ended September 25, September 26, September 25, September 26, (In thousands) Beginning balance $ 4,500 $ 11,300 $ 4,500 $ 11,300 Additions to accrual — 4,500 — 4,500 Payments — — — — Fair value adjustments — — — — Ending balance $ 4,500 $ 15,800 $ 4,500 $ 15,800 The Company values deferred purchase price receivables relating to its asset-backed securitization program based on a discounted cash flow analysis using unobservable inputs (i.e., level 3 inputs), which are primarily risk free interest rates adjusted for the credit quality of the underlying creditor. Due to its high credit quality and short term maturity the fair value approximates carrying value. Significant increases in either of the major unobservable inputs (credit spread, risk free interest rate) in isolation would result in lower fair value estimates, however the impact is not meaningful. The interrelationship between these inputs is also insignificant. Refer to note 10 for a reconciliation of the change in the deferred purchase price receivable during the three-month and six-month periods ended September 25, 2015 and September 26, 2014 . There were no transfers between levels in the fair value hierarchy during the three-month and six-month periods ended September 25, 2015 and September 26, 2014 . 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 25, 2015 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) $ — $ 447,217 $ — $ 447,217 Deferred purchase price receivable (Note 10) — — 537,619 537,619 Foreign exchange contracts (Note 8) — 19,626 — 19,626 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 8,939 37,676 — 46,615 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (26,504 ) $ — $ (26,504 ) Contingent consideration in connection with business acquisitions — — (4,500 ) (4,500 ) Fair Value Measurements as of March 31, 2015 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) $ — $ 674,859 $ — $ 674,859 Deferred purchase price receivable (Note 10) — — 600,672 600,672 Foreign exchange contracts (Note 8) — 25,829 — 25,829 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 9,068 37,041 — 46,109 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (31,057 ) $ — $ (31,057 ) Contingent consideration in connection with business acquisitions — — (4,500 ) (4,500 ) Other financial instruments The following table presents the Company’s debt not carried at fair value: As of September 25, 2015 As of March 31, 2015 Carrying Fair Carrying Fair Fair Value (In thousands) Term Loan, including current portion, due in installments through August 2018 $ 588,750 $ 586,177 $ 592,500 $ 582,131 Level 1 Term Loan, including current portion, due in installments through March 2019 468,750 466,992 475,000 465,500 Level 1 4.625% Notes due February 2020 500,000 520,625 500,000 523,750 Level 1 5.000% Notes due February 2023 500,000 502,750 500,000 543,150 Level 1 4.750% Notes due June 2025 595,402 585,000 — — Level 1 Total $ 2,652,902 $ 2,661,544 $ 2,067,500 $ 2,114,531 The term loans and Notes due February 2020, February 2023 and June 2025 are valued based on broker trading prices in active markets. |
BUSINESS AND ASSETS ACQUISITION
BUSINESS AND ASSETS ACQUISITIONS | 6 Months Ended |
Sep. 25, 2015 | |
Business Combinations [Abstract] | |
BUSINESS AND ASSETS ACQUISITIONS | BUSINESS AND ASSETS ACQUISITIONS Acquisition of Mirror Controls International On June 29, 2015 , the Company completed its acquisition of MCi, and paid approximately $555.2 million , net of $27.7 million of cash acquired. This acquisition expanded the Company's capabilities in the automotive market, and was included in the HRS segment. The allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed was based on their estimated fair values as of the date of acquisition. The excess of the purchase price over the tangible and identifiable intangible assets acquired and liabilities assumed has been allocated to goodwill. The following represents the Company's preliminary allocation of the total purchase price to the acquired assets and liabilities of MCi (in thousands): Current assets: Accounts receivable $ 41,392 Inventories 19,169 Other current assets 2,790 Total current assets 63,351 Property and equipment, net 39,256 Other assets 942 Intangibles 280,000 Goodwill 290,478 Total assets $ 674,027 Current liabilities: Accounts payable $ 28,002 Accrued liabilities & other current liabilities 20,677 Total current liabilities 48,679 Other liabilities 70,190 Total aggregate purchase price $ 555,158 The intangible assets of $280.0 million is comprised of customer relationships of $131.4 million and licenses and other intangibles assets of $148.6 million . Customer relationships are amortized over a weighted-average estimated useful life of 8 years and licenses and other intangibles assets are amortized over a weighted-average estimated useful life of 10 years. In addition to accounts receivable and inventories, the Company acquired $39.3 million of machinery and equipment and assumed $70.2 million of other liabilities primarily comprised of deferred tax liabilities. The Company incurred $6.7 million in acquisition-related costs related to the acquisition of MCi during the three-month period ended September 25, 2015. Acquisition of a facility from Alcatel-Lucent On July 1, 2015 , the Company acquired an optical transport facility from Alcatel-Lucent for approximately $67.5 million , which expanded its capabilities in the telecom market and was included in the INS segment. The Company acquired primarily $55.0 million of inventory, $10.0 million of property and equipment primarily comprised of a building and land, and recorded goodwill and intangible assets for a customer relationship of $3.6 million and $2.1 million , respectively, and assumed $3.2 million in other net liabilities in connection with this acquisition. The customer relationship intangible will amortize over a weighted-average estimated useful life of 5 years. Acquisition-related costs for this acquisition were immaterial. Other business acquisitions Additionally, during the six-month period ended September 25, 2015 , the Company completed three acquisitions that were not individually, nor in the aggregate, significant to the consolidated financial position, results of operations and cash flows of the Company. Two of the acquired businesses expanded the Company’s capabilities in the medical devices market, particularly precision plastics and molding within the HRS segment, and the other strengthened capabilities in the household industrial market within the IEI segment. The Company paid $15.3 million , net of $0.1 million of cash held by the acquirees. The Company primarily acquired $2.0 million of property and equipment, assumed liabilities of $0.6 million and recorded goodwill and intangibles of $18.9 million . The results of operations for each of the acquisitions in fiscal year 2016 were included in the Company’s consolidated financial results beginning on the date of each acquisition, and the amount of revenue and earnings of the acquisitions, collectively, were immaterial to the Company’s consolidated financial results for all periods presented. Proforma results of operations for the acquisitions in fiscal year 2016 have not been presented because the effects of the acquisitions, collectively, were immaterial to the Company’s consolidated financial results for all periods presented. The Company is in the process of evaluating the fair value of the assets and liabilities related to business combinations completed during the recent periods. Additional information, which existed as of the acquisition date, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the date of acquisition. Changes to amounts recorded as assets and liabilities may result in a corresponding adjustment to goodwill during the respective measurement periods. On September 28, 2015 , the Company completed the acquisition of NEXTracker and paid approximately $245.0 million net of cash acquired, with potential contingent consideration of up to a maximum of $97.2 million upon achievement of future revenue performance targets. The financial results of NEXTracker will be included in the consolidated financial statements of the Company as part of the IEI segment beginning in the third quarter of fiscal year 2016. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 25, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and other legal matters On December 11, 2013, Xilinx, Inc. (plaintiff) filed a lawsuit in Santa Clara County, California, Superior Court against Flextronics International Ltd.; Flextronics International USA, Inc.; and Flextronics Corporation (Case No. 113CV257431). The complaint asserted various claims, including fraud, negligent misrepresentation, breach of contract, and unfair competition, based on specific alleged incidents concerning our purchases and sales of Xilinx products. The plaintiff sought an unspecified amount of compensatory, statutory, punitive, and other forms of damages, injunctive relief, and attorneys' fees and costs. The parties settled this action in August 2015 and it has been dismissed; the terms of the settlement were not material to the Company’s financial statements as a whole. During the fourth quarter of fiscal year 2014, one of the Company's Brazilian subsidiaries received an assessment for certain sales and import taxes. The tax assessment notice is for nine months of calendar year 2010 for an alleged amount of 50 million Brazilian reals (approximately $12 million based on the exchange rate as of September 25, 2015) plus interest. This assessment is in the second stage of the review process at the administrative level, and the Company plans to continue to vigorously oppose it as well as any future assessments. The Company is, however, unable to determine the likelihood of an unfavorable outcome of these assessments against our Brazilian subsidiary. While the Company believes there is no legal basis for the alleged liabilities, due to the complexities and uncertainty surrounding the administrative-review and judicial processes in Brazil and the nature of the claims, it is unable to reasonably estimate a range of loss for this assessment or any future assessments that are reasonably possible. The Company does not expect final judicial determination on these matters for several years. During fiscal year 2015, one of the Company's non-operating Brazilian subsidiaries received an assessment of approximately $100 million related to income and social contribution taxes, interest and penalties. The Company believes there is no legal basis for the assessment and expects that any losses are remote. The Company plans to vigorously defend itself through the administrative and judicial processes. In addition, from time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of these matters, which are in excess of amounts already accrued in the Company’s condensed consolidated balance sheets, would not be material to the financial statements as a whole. |
SHARE REPURCHASES
SHARE REPURCHASES | 6 Months Ended |
Sep. 25, 2015 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
SHARE REPURCHASES | SHARE REPURCHASES During the three-month and six-month periods ended September 25, 2015 , the Company repurchased 12.8 million shares at an aggregate purchase price of $138.0 million , and 20.6 million shares at an aggregate purchase price of $232.4 million , respectively, and retired all of these shares. Under the Company’s current share repurchase program, the Board of Directors authorized repurchases of its outstanding ordinary shares for up to $500 million in accordance with the share repurchase mandate approved by the Company’s shareholders at the date of the most recent Extraordinary General Meeting held on August 20, 2015 . As of September 25, 2015 , shares in the aggregate amount of $422.5 million were available to be repurchased under the current plan. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Sep. 25, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company has four reportable segments: HRS, CTG, IEI, and INS. These segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 for a description of the various product categories manufactured under each of these segments. An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, other charges (income), net and interest and other, net. Selected financial information by segment is as follows: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands) Net sales: Integrated Network Solutions $ 2,204,966 $ 2,340,707 $ 4,171,528 $ 4,781,133 Consumer Technology Group 2,011,089 2,209,543 3,576,052 4,431,683 Industrial & Emerging Industries 1,145,842 1,097,202 2,275,981 2,221,668 High Reliability Solutions 954,865 881,065 1,859,449 1,736,778 $ 6,316,762 $ 6,528,517 $ 11,883,010 $ 13,171,262 Segment income and reconciliation of income before tax: Integrated Network Solutions $ 65,758 $ 57,643 $ 122,822 $ 130,354 Consumer Technology Group 41,170 53,336 80,013 83,200 Industrial & Emerging Industries 32,268 35,582 61,268 82,906 High Reliability Solutions 71,199 48,801 131,085 102,944 Corporate and Other (14,075 ) (11,952 ) (39,786 ) (32,805 ) Total segment income 196,320 183,410 355,402 366,599 Reconciling items: Intangible amortization 16,127 8,232 23,798 15,183 Stock-based compensation 16,200 10,919 32,326 22,600 Other charges (income), net 1,678 (2,584 ) 1,842 (46,593 ) Interest and other, net 22,035 12,506 38,540 31,143 Income before income taxes $ 140,280 $ 154,337 $ 258,896 $ 344,266 Asset information on a segment basis is not disclosed, as property and equipment is not allocated to each segment. Corporate and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified reporting segments. |
SUPPLEMENTAL GUARANTOR AND NON-
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Sep. 25, 2015 | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Flextronics International Ltd. (“Parent”) has three tranches of Notes of $500 million , $500 million , and $600 million , respectively, each outstanding, which mature on February 15, 2020, February 15, 2023 and June 15, 2025, respectively. These Notes are senior unsecured obligations, and are guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company’s 100% owned subsidiaries (the “guarantor subsidiaries”). These subsidiary guarantees will terminate upon 1) a sale or other disposition of the guarantor or the sale or disposition of all or substantially all the assets of the guarantor (other than to the Parent or a subsidiary); 2) such guarantor ceasing to be a guarantor or a borrower under the Company’s Term Loan Agreement and the Revolving Line of Credit; 3) defeasance or discharge of the Notes, as provided in the Notes indenture; or 4) if at any time the Notes are rated investment grade. In lieu of providing separate financial statements for the guarantor subsidiaries, the Company has included the accompanying condensed consolidating financial statements, which are presented using the equity method of accounting. The principal elimination entries relate to investment in subsidiaries and intercompany balances and transactions, including transactions with the Company’s non-guarantor subsidiaries. During the three-month period ended September 25, 2015, and in conjunction with the new $600 million Notes, a new entity was added as a guarantor subsidiary for all three tranches of the Notes. Accordingly, the Company recast the condensed consolidating financial statements presented below to reflect this change. Condensed Consolidating Balance Sheets as of September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 517,631 $ 226,469 $ 924,327 $ — $ 1,668,427 Accounts receivable — 1,352,781 1,194,029 — 2,546,810 Inventories — 1,494,305 2,067,021 — 3,561,326 Inter company receivable 8,919,282 5,578,552 12,359,980 (26,857,814 ) — Other current assets 3,749 202,794 1,002,388 — 1,208,931 Total current assets 9,440,662 8,854,901 17,547,745 (26,857,814 ) 8,985,494 Property and equipment, net — 506,394 1,711,636 — 2,218,030 Goodwill and other intangible assets, net 325 62,580 918,933 — 981,838 Other assets 2,259,454 198,711 2,139,936 (4,123,124 ) 474,977 Investment in subsidiaries 1,654,260 2,412,432 16,883,121 (20,949,813 ) — Total assets $ 13,354,701 $ 12,035,018 $ 39,201,371 $ (51,930,751 ) $ 12,660,339 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 43,125 $ 941 $ 3,906 $ — $ 47,972 Accounts payable — 1,514,042 3,273,899 — 4,787,941 Accrued payroll — 121,059 279,941 — 401,000 Inter company payable 8,213,861 8,993,273 9,650,680 (26,857,814 ) — Other current liabilities 30,642 855,909 909,316 — 1,795,867 Total current liabilities 8,287,628 11,485,224 14,117,742 (26,857,814 ) 7,032,780 Long term liabilities 2,646,945 2,109,106 2,539,057 (4,123,124 ) 3,171,984 Flextronics International Ltd. shareholders’ equity (deficit) 2,420,128 (1,559,312 ) 22,509,125 (20,949,813 ) 2,420,128 Noncontrolling interests — — 35,447 — 35,447 Total shareholders’ equity (deficit) 2,420,128 (1,559,312 ) 22,544,572 (20,949,813 ) 2,455,575 Total liabilities and shareholders’ equity $ 13,354,701 $ 12,035,018 $ 39,201,371 $ (51,930,751 ) $ 12,660,339 Condensed Consolidating Balance Sheets as of March 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 608,971 $ 168,272 $ 851,165 $ — $ 1,628,408 Accounts receivable — 1,208,632 1,128,883 — 2,337,515 Inventories — 1,729,593 1,759,159 — 3,488,752 Inter company receivable 6,417,410 4,759,062 10,099,057 (21,275,529 ) — Other current assets 8,143 202,161 1,075,921 — 1,286,225 Total current assets 7,034,524 8,067,720 14,914,185 (21,275,529 ) 8,740,900 Property and equipment, net — 471,052 1,621,115 — 2,092,167 Goodwill and other intangible assets, net 475 64,831 349,869 — 415,175 Other assets 2,223,402 155,172 2,131,523 (4,092,715 ) 417,382 Investment in subsidiaries 1,799,956 1,681,521 16,641,212 (20,122,689 ) — Total assets $ 11,058,357 $ 10,440,296 $ 35,657,904 $ (45,490,933 ) $ 11,665,624 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 40,000 $ 917 $ 5,245 $ — $ 46,162 Accounts payable — 1,758,305 2,802,889 — 4,561,194 Accrued payroll — 112,692 227,047 — 339,739 Inter company payable 6,559,569 7,250,235 7,465,725 (21,275,529 ) — Other current liabilities 30,553 845,156 933,419 — 1,809,128 Total current liabilities 6,630,122 9,967,305 11,434,325 (21,275,529 ) 6,756,223 Long term liabilities 2,067,421 2,102,483 2,435,962 (4,092,715 ) 2,513,151 Flextronics International Ltd. shareholders’ equity (deficit) 2,360,814 (1,629,492 ) 21,752,181 (20,122,689 ) 2,360,814 Noncontrolling interests — — 35,436 — 35,436 Total shareholders’ equity (deficit) 2,360,814 (1,629,492 ) 21,787,617 (20,122,689 ) 2,396,250 Total liabilities and shareholders’ equity $ 11,058,357 $ 10,440,296 $ 35,657,904 $ (45,490,933 ) $ 11,665,624 Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,482,213 $ 5,514,535 $ (3,679,986 ) $ 6,316,762 Cost of sales — 4,141,254 5,458,578 (3,679,986 ) 5,919,846 Gross profit — 340,959 55,957 — 396,916 Selling, general and administrative expenses — 66,682 150,114 — 216,796 Intangible amortization 75 960 15,092 — 16,127 Interest and other, net (132,637 ) 277,355 (121,005 ) — 23,713 Income (loss) from continuing operations before income taxes 132,562 (4,038 ) 11,756 — 140,280 Provision for income taxes — (5,658 ) 22,961 — 17,303 Equity in earnings in subsidiaries (9,585 ) (33,969 ) 16,621 26,933 — Net income (loss) $ 122,977 $ (32,349 ) $ 5,416 $ 26,933 $ 122,977 Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 26, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,732,749 $ 5,184,889 $ (3,389,121 ) $ 6,528,517 Cost of sales — 4,403,702 5,136,855 (3,389,121 ) 6,151,436 Gross profit — 329,047 48,034 — 377,081 Selling, general and administrative expenses — 62,825 141,765 — 204,590 Intangible amortization 75 834 7,323 — 8,232 Interest and other, net (68,309 ) 288,590 (210,359 ) — 9,922 Income (loss) from continuing operations before income taxes 68,234 (23,202 ) 109,305 — 154,337 Provision for income taxes — 8,142 7,292 — 15,434 Equity in earnings in subsidiaries 70,669 (50,729 ) 50,147 (70,087 ) — Net income (loss) $ 138,903 $ (82,073 ) $ 152,160 $ (70,087 ) $ 138,903 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 8,528,598 $ 9,450,050 $ (6,095,638 ) $ 11,883,010 Cost of sales — 7,785,313 9,444,078 (6,095,638 ) 11,133,753 Gross profit — 743,285 5,972 — 749,257 Selling, general and administrative expenses — 130,238 295,943 — 426,181 Intangible amortization 150 1,921 21,727 — 23,798 Interest and other, net (398,020 ) 613,767 (175,365 ) — 40,382 Income (loss) from continuing operations before income taxes 397,870 (2,641 ) (136,333 ) — 258,896 Provision for income taxes — 3,441 21,628 — 25,069 Equity in earnings in subsidiaries (164,043 ) (52,516 ) 52,584 163,975 — Net income (loss) $ 233,827 $ (58,598 ) $ (105,377 ) $ 163,975 $ 233,827 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 26, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 9,537,544 $ 9,961,077 $ (6,327,359 ) $ 13,171,262 Cost of sales — 8,859,138 9,881,617 (6,327,359 ) 12,413,396 Gross profit — 678,406 79,460 — 757,866 Selling, general and administrative expenses — 124,627 289,240 — 413,867 Intangible amortization 150 1,687 13,346 — 15,183 Interest and other, net (51,777 ) 547,193 (510,866 ) — (15,450 ) Income from continuing operations before income taxes 51,627 4,899 287,740 — 344,266 Provision for income taxes — 14,789 16,687 — 31,476 Equity in earnings in subsidiaries 261,163 13,647 86,579 (361,389 ) — Net income $ 312,790 $ 3,757 $ 357,632 $ (361,389 ) $ 312,790 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 122,977 $ (32,349 ) $ 5,416 $ 26,933 $ 122,977 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (30,267 ) (33,696 ) (30,633 ) 64,329 (30,267 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (5,544 ) 1,160 (5,544 ) 4,384 (5,544 ) Comprehensive income (loss) $ 87,166 $ (64,885 ) $ (30,761 ) $ 95,646 $ 87,166 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 26, 2014 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 138,903 $ (82,073 ) $ 152,160 $ (70,087 ) $ 138,903 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (5,683 ) 77,712 65,611 (143,323 ) (5,683 ) Unrealized loss on derivative instruments and other, net of zero tax (2,433 ) (2,058 ) (2,433 ) 4,491 (2,433 ) Comprehensive income (loss) $ 130,787 $ (6,419 ) $ 215,338 $ (208,919 ) $ 130,787 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 233,827 $ (58,598 ) $ (105,377 ) $ 163,975 $ 233,827 Other comprehensive income (loss): 0 Foreign currency translation adjustments, net of zero tax (27,484 ) (57,186 ) (51,530 ) 108,716 (27,484 ) Unrealized gain on derivative instruments and other, net of zero tax 7,285 5,785 7,285 (13,070 ) 7,285 Comprehensive income (loss) $ 213,628 $ (109,999 ) $ (149,622 ) $ 259,621 $ 213,628 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 26, 2014 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income $ 312,790 $ 3,757 $ 357,632 $ (361,389 ) $ 312,790 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (9,828 ) 93,662 71,337 (164,999 ) (9,828 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax 8,292 (228 ) 8,292 (8,064 ) 8,292 Comprehensive income $ 311,254 $ 97,191 $ 437,261 $ (534,452 ) $ 311,254 Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 389,949 $ (247,462 ) $ 519,508 $ — $ 661,995 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (88,699 ) (205,330 ) 11 (294,018 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — (559,442 ) (82,471 ) — (641,913 ) Investing cash flows to affiliates (1,326,493 ) (836,415 ) (1,193,747 ) 3,356,655 — Other investing activities, net — (22,822 ) 12,306 — (10,516 ) Net cash used in investing activities (1,326,493 ) (1,507,378 ) (1,469,242 ) 3,356,666 (946,447 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 595,309 209 35 — 595,553 Repayments of bank borrowings, long-term debt and capital lease obligations (17,507 ) (1,039 ) (2,544 ) — (21,090 ) Payments for repurchases of ordinary shares (241,978 ) — — — (241,978 ) Net proceeds from issuance of ordinary shares 49,074 — — — 49,074 Financing cash flows from affiliates 435,540 1,810,912 1,110,214 (3,356,666 ) — Other financing activities, net — — (37,872 ) — (37,872 ) Net cash provided by financing activities 820,438 1,810,082 1,069,833 (3,356,666 ) 343,687 Effect of exchange rates on cash and cash equivalents 24,766 2,955 (46,937 ) — (19,216 ) Net increase (decrease) in cash and cash equivalents (91,340 ) 58,197 73,162 — 40,019 Cash and cash equivalents, beginning of period 608,971 168,272 851,165 — 1,628,408 Cash and cash equivalents, end of period $ 517,631 $ 226,469 $ 924,327 $ — $ 1,668,427 Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 26, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 24,949 $ (200,703 ) $ 481,999 $ — $ 306,245 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (73,455 ) (64,929 ) (11 ) (138,395 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — — (38,082 ) — (38,082 ) Investing cash flows from (to) affiliates (833,951 ) (924,184 ) 255,111 1,503,024 — Other investing activities, net — (6,134 ) (22,721 ) — (28,855 ) Net cash provided by (used in) investing activities (833,951 ) (1,003,773 ) 129,379 1,503,013 (205,332 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt — — 11,387 — 11,387 Repayments of bank borrowings, long-term debt and capital lease obligations (6,250 ) (888 ) (2,047 ) — (9,185 ) Payments for repurchases of ordinary shares (206,771 ) — — — (206,771 ) Net proceeds from issuance of ordinary shares 11,412 — — — 11,412 Financing cash flows from (to) affiliates 925,410 1,317,706 (740,103 ) (1,503,013 ) — Other financing activities, net — — 3,382 — 3,382 Net cash provided by (used in) financing activities 723,801 1,316,818 (727,381 ) (1,503,013 ) (189,775 ) Effect of exchange rates on cash and cash equivalents (83,374 ) (1,139 ) 93,999 — 9,486 Net decrease (increase) in cash and cash equivalents (168,575 ) 111,203 (22,004 ) — (79,376 ) Cash and cash equivalents, beginning of period 638,714 210,462 744,552 — 1,593,728 Cash and cash equivalents, end of period $ 470,139 $ 321,665 $ 722,548 $ — $ 1,514,352 |
BALANCE SHEET ITEMS (Tables)
BALANCE SHEET ITEMS (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of components of inventories | The components of inventories, net of applicable lower of cost or market write-downs, were as follows: As of As of (In thousands) Raw materials $ 2,265,927 $ 2,330,428 Work-in-progress 669,280 557,786 Finished goods 626,119 600,538 $ 3,561,326 $ 3,488,752 |
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 25, 2015 : HRS CTG IEI INS Amount (In thousands) Balance, beginning of the year $ 93,138 $ 68,234 $ 64,221 $ 108,038 $ 333,631 Additions (1) 292,608 — 2,982 3,575 299,165 Purchase accounting adjustments (2) 125 — — — 125 Foreign currency translation adjustments (5,562 ) — — — (5,562 ) Balance, end of the period $ 380,309 $ 68,234 $ 67,203 $ 111,613 $ 627,359 (1) The goodwill generated from the Company’s business combinations completed during the six-month period ended September 25, 2015 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired businesses. The goodwill is not deductible for income tax purposes. See note 12 for additional information. (2) Includes adjustments based on management's estimates resulting from their review and finalization of the valuation of assets and liabilities acquired through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company. |
Schedule of components of acquired intangible assets | The components of acquired intangible assets are as follows: As of September 25, 2015 As of March 31, 2015 Gross Accumulated Net Gross Accumulated Net (In thousands) Intangible assets: Customer-related intangibles $ 279,204 $ (93,401 ) $ 185,803 $ 133,853 $ (80,506 ) $ 53,347 Licenses and other intangibles 190,742 (22,066 ) 168,676 39,985 (11,788 ) 28,197 Total $ 469,946 $ (115,467 ) $ 354,479 $ 173,838 $ (92,294 ) $ 81,544 |
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) 2016 (1) $ 30,583 2017 54,734 2018 48,934 2019 44,593 2020 39,971 Thereafter 135,664 Total amortization expense $ 354,479 ____________________________________________________________ (1) Represents estimated amortization for the remaining six -month period ending March 31, 2016 . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
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 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands) Cost of sales $ 2,015 $ 1,868 $ 4,033 $ 3,478 Selling, general and administrative expenses 14,185 9,051 28,293 19,122 Total share-based compensation expense $ 16,200 $ 10,919 $ 32,326 $ 22,600 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share | The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flextronics International Ltd.: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands, except per share amounts) Net income $ 122,977 $ 138,903 $ 233,827 $ 312,790 Shares used in computation: Weighted-average ordinary shares outstanding 563,333 585,760 564,417 586,497 Basic earnings per share 0.22 0.24 0.41 0.53 Diluted earnings per share: Net income $ 122,977 $ 138,903 $ 233,827 $ 312,790 Shares used in computation: Weighted-average ordinary shares outstanding 563,333 585,760 564,417 586,497 Weighted-average ordinary share equivalents from stock options and awards (1) (2) 6,322 10,111 8,871 12,089 Weighted-average ordinary shares and ordinary share equivalents outstanding 569,655 595,871 573,288 598,586 Diluted earnings per share 0.22 0.23 0.41 0.52 ____________________________________________________________ (1) Options to purchase ordinary shares of 1.1 million and 7.0 million during the three -month periods ended September 25, 2015 and September 26, 2014 , respectively, and share bonus awards of 5.3 million and 0.8 million for the three-month periods ended September 25, 2015 and September 26, 2014 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) Options to purchase ordinary shares of 1.2 million and 12.1 million during the six-month periods ended September 25, 2015 and September 26, 2014 , respectively, and share bonus awards of 2.9 million and 0.4 million for the six-month periods ended September 25, 2015 and September 26, 2014 , respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. |
BANK BORROWINGS AND LONG TERM27
BANK BORROWINGS AND LONG TERM DEBT (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of bank borrowings and long-term debt | Bank borrowings and long-term debt are as follows: As of September 25, 2015 As of March 31, 2015 (In thousands) Term Loan, including current portion, due in installments through August 2018 $ 588,750 $ 592,500 Term Loan, including current portion, due in installments through March 2019 468,750 475,000 4.625% Notes due February 2020 500,000 500,000 5.000% Notes due February 2023 500,000 500,000 4.750% Notes due June 2025 595,402 — Other 13,248 16,233 Total $ 2,666,150 $ 2,083,733 |
Schedule of the Company's repayments of long-term debt | Repayment of the Company’s long term debt outstanding as of September 25, 2015 is as follows: Fiscal Year Ending March 31, Amount (In thousands) 2016 (1) $ 30,000 2017 52,500 2018 52,500 2019 922,500 2020 500,000 Thereafter 1,108,650 Total $ 2,666,150 ____________________________________________________________ (1) Represents scheduled repayment for the remaining six -month period ending March 31, 2016 . |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
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 25, 2015 , the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.9 billion as summarized below: Foreign Currency Amount Notional Contract Value in USD Currency Buy Sell Buy Sell (In thousands) Cash Flow Hedges CNY 1,543,000 — $ 241,709 $ — EUR 4,790 60,780 5,367 69,534 HUF 13,758,000 — 49,370 — ILS 176,700 — 44,759 — MXN 1,414,000 — 82,580 — MYR 196,000 — 45,094 — Other N/A N/A 52,524 500 521,403 70,034 Other Foreign Currency Contracts BRL — 686,000 — 165,929 CAD 19,200 12,500 14,403 9,377 CHF 16,919 43,701 17,320 44,712 CNY 4,719,018 3,236,303 738,966 512,000 DKK 197,200 155,700 29,614 23,382 EUR 597,631 1,007,752 670,293 1,130,041 GBP 32,393 59,840 49,449 91,382 HUF 20,332,000 20,408,000 72,961 73,234 ILS 62,000 85,100 15,705 21,556 JPY 2,256,614 1,700,061 18,807 14,079 MXN 1,473,560 331,830 86,059 19,380 MYR 384,331 94,650 88,423 21,776 SEK 474,290 886,483 56,315 105,026 SGD 43,268 8,348 30,353 5,856 Other N/A N/A 91,499 52,884 1,980,167 2,290,614 Total Notional Contract Value in USD $ 2,501,570 $ 2,360,648 |
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 25, March 31, Balance Sheet September 25, March 31, (In thousands) Derivatives designated as hedging instruments Foreign currency contracts Other current assets $ 2,507 $ 2,896 Other current liabilities $ 11,923 $ 19,729 Derivatives not designated as hedging instruments Foreign currency contracts Other current assets $ 17,119 $ 22,933 Other current liabilities $ 14,581 $ 11,328 |
ACCUMULATED OTHER COMPREHENSI29
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
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 25, 2015 September 26, 2014 Unrealized gain Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (55,437 ) $ (109,456 ) $ (164,893 ) $ (22,124 ) $ (97,452 ) $ (119,576 ) Other comprehensive loss before reclassifications (13,818 ) (30,267 ) (44,085 ) (2,965 ) (3,099 ) (6,064 ) Net (gains) losses reclassified from accumulated other comprehensive loss 8,274 — 8,274 532 (2,584 ) (2,052 ) Net current-period other comprehensive loss (5,544 ) (30,267 ) (35,811 ) (2,433 ) (5,683 ) (8,116 ) Ending balance $ (60,981 ) $ (139,723 ) $ (200,704 ) $ (24,557 ) $ (103,135 ) $ (127,692 ) Six-Month Periods Ended September 25, 2015 September 26, 2014 Unrealized gain Foreign currency Total Unrealized gain Foreign currency Total (In thousands) Beginning balance $ (68,266 ) $ (112,239 ) $ (180,505 ) $ (32,849 ) $ (93,307 ) $ (126,156 ) Other comprehensive gain (loss) before reclassifications (14,419 ) (27,636 ) (42,055 ) (1,965 ) 2,008 43 Net (gains) losses reclassified from accumulated other comprehensive loss 21,704 152 21,856 10,257 (11,836 ) (1,579 ) Net current-period other comprehensive gain (loss) 7,285 (27,484 ) (20,199 ) 8,292 (9,828 ) (1,536 ) Ending balance $ (60,981 ) $ (139,723 ) $ (200,704 ) $ (24,557 ) $ (103,135 ) $ (127,692 ) |
TRADE RECEIVABLES SECURITIZAT30
TRADE RECEIVABLES SECURITIZATION (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Summary of deferred purchase price receivables | The following table summarizes the activity in the deferred purchase price receivables account: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands) Beginning balance $ 516,287 $ 463,124 $ 600,672 $ 470,908 Transfers of receivables 983,677 720,921 1,750,725 1,499,781 Collections (962,345 ) (757,988 ) (1,813,778 ) (1,544,632 ) Ending balance $ 537,619 $ 426,057 $ 537,619 $ 426,057 |
FAIR VALUE MEASUREMENT OF ASS31
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of business acquisitions by acquisition, contingent consideration | he following table summarizes the activities related to contingent consideration: Three-Month Periods Ended Six-Month Periods Ended September 25, September 26, September 25, September 26, (In thousands) Beginning balance $ 4,500 $ 11,300 $ 4,500 $ 11,300 Additions to accrual — 4,500 — 4,500 Payments — — — — Fair value adjustments — — — — Ending balance $ 4,500 $ 15,800 $ 4,500 $ 15,800 |
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 25, 2015 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) $ — $ 447,217 $ — $ 447,217 Deferred purchase price receivable (Note 10) — — 537,619 537,619 Foreign exchange contracts (Note 8) — 19,626 — 19,626 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 8,939 37,676 — 46,615 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (26,504 ) $ — $ (26,504 ) Contingent consideration in connection with business acquisitions — — (4,500 ) (4,500 ) Fair Value Measurements as of March 31, 2015 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) $ — $ 674,859 $ — $ 674,859 Deferred purchase price receivable (Note 10) — — 600,672 600,672 Foreign exchange contracts (Note 8) — 25,829 — 25,829 Deferred compensation plan assets: 0 Mutual funds, money market accounts and equity securities 9,068 37,041 — 46,109 Liabilities: 0 Foreign exchange contracts (Note 8) $ — $ (31,057 ) $ — $ (31,057 ) Contingent consideration in connection with business acquisitions — — (4,500 ) (4,500 ) |
Schedule of debt not carried at fair value | The following table presents the Company’s debt not carried at fair value: As of September 25, 2015 As of March 31, 2015 Carrying Fair Carrying Fair Fair Value (In thousands) Term Loan, including current portion, due in installments through August 2018 $ 588,750 $ 586,177 $ 592,500 $ 582,131 Level 1 Term Loan, including current portion, due in installments through March 2019 468,750 466,992 475,000 465,500 Level 1 4.625% Notes due February 2020 500,000 520,625 500,000 523,750 Level 1 5.000% Notes due February 2023 500,000 502,750 500,000 543,150 Level 1 4.750% Notes due June 2025 595,402 585,000 — — Level 1 Total $ 2,652,902 $ 2,661,544 $ 2,067,500 $ 2,114,531 |
BUSINESS AND ASSETS ACQUISITI32
BUSINESS AND ASSETS ACQUISITIONS BUSINESS AND ASSETS ACQUISITIONS (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following represents the Company's preliminary allocation of the total purchase price to the acquired assets and liabilities of MCi (in thousands): Current assets: Accounts receivable $ 41,392 Inventories 19,169 Other current assets 2,790 Total current assets 63,351 Property and equipment, net 39,256 Other assets 942 Intangibles 280,000 Goodwill 290,478 Total assets $ 674,027 Current liabilities: Accounts payable $ 28,002 Accrued liabilities & other current liabilities 20,677 Total current liabilities 48,679 Other liabilities 70,190 Total aggregate purchase price $ 555,158 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by operating segment | Selected financial information by segment is as follows: Three-Month Periods Ended Six-Month Periods Ended September 25, 2015 September 26, 2014 September 25, 2015 September 26, 2014 (In thousands) Net sales: Integrated Network Solutions $ 2,204,966 $ 2,340,707 $ 4,171,528 $ 4,781,133 Consumer Technology Group 2,011,089 2,209,543 3,576,052 4,431,683 Industrial & Emerging Industries 1,145,842 1,097,202 2,275,981 2,221,668 High Reliability Solutions 954,865 881,065 1,859,449 1,736,778 $ 6,316,762 $ 6,528,517 $ 11,883,010 $ 13,171,262 Segment income and reconciliation of income before tax: Integrated Network Solutions $ 65,758 $ 57,643 $ 122,822 $ 130,354 Consumer Technology Group 41,170 53,336 80,013 83,200 Industrial & Emerging Industries 32,268 35,582 61,268 82,906 High Reliability Solutions 71,199 48,801 131,085 102,944 Corporate and Other (14,075 ) (11,952 ) (39,786 ) (32,805 ) Total segment income 196,320 183,410 355,402 366,599 Reconciling items: Intangible amortization 16,127 8,232 23,798 15,183 Stock-based compensation 16,200 10,919 32,326 22,600 Other charges (income), net 1,678 (2,584 ) 1,842 (46,593 ) Interest and other, net 22,035 12,506 38,540 31,143 Income before income taxes $ 140,280 $ 154,337 $ 258,896 $ 344,266 |
SUPPLEMENTAL GUARANTOR AND NO34
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Sep. 25, 2015 | |
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheets as of September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 517,631 $ 226,469 $ 924,327 $ — $ 1,668,427 Accounts receivable — 1,352,781 1,194,029 — 2,546,810 Inventories — 1,494,305 2,067,021 — 3,561,326 Inter company receivable 8,919,282 5,578,552 12,359,980 (26,857,814 ) — Other current assets 3,749 202,794 1,002,388 — 1,208,931 Total current assets 9,440,662 8,854,901 17,547,745 (26,857,814 ) 8,985,494 Property and equipment, net — 506,394 1,711,636 — 2,218,030 Goodwill and other intangible assets, net 325 62,580 918,933 — 981,838 Other assets 2,259,454 198,711 2,139,936 (4,123,124 ) 474,977 Investment in subsidiaries 1,654,260 2,412,432 16,883,121 (20,949,813 ) — Total assets $ 13,354,701 $ 12,035,018 $ 39,201,371 $ (51,930,751 ) $ 12,660,339 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 43,125 $ 941 $ 3,906 $ — $ 47,972 Accounts payable — 1,514,042 3,273,899 — 4,787,941 Accrued payroll — 121,059 279,941 — 401,000 Inter company payable 8,213,861 8,993,273 9,650,680 (26,857,814 ) — Other current liabilities 30,642 855,909 909,316 — 1,795,867 Total current liabilities 8,287,628 11,485,224 14,117,742 (26,857,814 ) 7,032,780 Long term liabilities 2,646,945 2,109,106 2,539,057 (4,123,124 ) 3,171,984 Flextronics International Ltd. shareholders’ equity (deficit) 2,420,128 (1,559,312 ) 22,509,125 (20,949,813 ) 2,420,128 Noncontrolling interests — — 35,447 — 35,447 Total shareholders’ equity (deficit) 2,420,128 (1,559,312 ) 22,544,572 (20,949,813 ) 2,455,575 Total liabilities and shareholders’ equity $ 13,354,701 $ 12,035,018 $ 39,201,371 $ (51,930,751 ) $ 12,660,339 Condensed Consolidating Balance Sheets as of March 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 608,971 $ 168,272 $ 851,165 $ — $ 1,628,408 Accounts receivable — 1,208,632 1,128,883 — 2,337,515 Inventories — 1,729,593 1,759,159 — 3,488,752 Inter company receivable 6,417,410 4,759,062 10,099,057 (21,275,529 ) — Other current assets 8,143 202,161 1,075,921 — 1,286,225 Total current assets 7,034,524 8,067,720 14,914,185 (21,275,529 ) 8,740,900 Property and equipment, net — 471,052 1,621,115 — 2,092,167 Goodwill and other intangible assets, net 475 64,831 349,869 — 415,175 Other assets 2,223,402 155,172 2,131,523 (4,092,715 ) 417,382 Investment in subsidiaries 1,799,956 1,681,521 16,641,212 (20,122,689 ) — Total assets $ 11,058,357 $ 10,440,296 $ 35,657,904 $ (45,490,933 ) $ 11,665,624 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Bank borrowings and current portion of long-term debt $ 40,000 $ 917 $ 5,245 $ — $ 46,162 Accounts payable — 1,758,305 2,802,889 — 4,561,194 Accrued payroll — 112,692 227,047 — 339,739 Inter company payable 6,559,569 7,250,235 7,465,725 (21,275,529 ) — Other current liabilities 30,553 845,156 933,419 — 1,809,128 Total current liabilities 6,630,122 9,967,305 11,434,325 (21,275,529 ) 6,756,223 Long term liabilities 2,067,421 2,102,483 2,435,962 (4,092,715 ) 2,513,151 Flextronics International Ltd. shareholders’ equity (deficit) 2,360,814 (1,629,492 ) 21,752,181 (20,122,689 ) 2,360,814 Noncontrolling interests — — 35,436 — 35,436 Total shareholders’ equity (deficit) 2,360,814 (1,629,492 ) 21,787,617 (20,122,689 ) 2,396,250 Total liabilities and shareholders’ equity $ 11,058,357 $ 10,440,296 $ 35,657,904 $ (45,490,933 ) $ 11,665,624 |
Schedule of condensed consolidating statements of operations | Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,482,213 $ 5,514,535 $ (3,679,986 ) $ 6,316,762 Cost of sales — 4,141,254 5,458,578 (3,679,986 ) 5,919,846 Gross profit — 340,959 55,957 — 396,916 Selling, general and administrative expenses — 66,682 150,114 — 216,796 Intangible amortization 75 960 15,092 — 16,127 Interest and other, net (132,637 ) 277,355 (121,005 ) — 23,713 Income (loss) from continuing operations before income taxes 132,562 (4,038 ) 11,756 — 140,280 Provision for income taxes — (5,658 ) 22,961 — 17,303 Equity in earnings in subsidiaries (9,585 ) (33,969 ) 16,621 26,933 — Net income (loss) $ 122,977 $ (32,349 ) $ 5,416 $ 26,933 $ 122,977 Condensed Consolidating Statements of Operations for the Three -Month Period Ended September 26, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 4,732,749 $ 5,184,889 $ (3,389,121 ) $ 6,528,517 Cost of sales — 4,403,702 5,136,855 (3,389,121 ) 6,151,436 Gross profit — 329,047 48,034 — 377,081 Selling, general and administrative expenses — 62,825 141,765 — 204,590 Intangible amortization 75 834 7,323 — 8,232 Interest and other, net (68,309 ) 288,590 (210,359 ) — 9,922 Income (loss) from continuing operations before income taxes 68,234 (23,202 ) 109,305 — 154,337 Provision for income taxes — 8,142 7,292 — 15,434 Equity in earnings in subsidiaries 70,669 (50,729 ) 50,147 (70,087 ) — Net income (loss) $ 138,903 $ (82,073 ) $ 152,160 $ (70,087 ) $ 138,903 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 8,528,598 $ 9,450,050 $ (6,095,638 ) $ 11,883,010 Cost of sales — 7,785,313 9,444,078 (6,095,638 ) 11,133,753 Gross profit — 743,285 5,972 — 749,257 Selling, general and administrative expenses — 130,238 295,943 — 426,181 Intangible amortization 150 1,921 21,727 — 23,798 Interest and other, net (398,020 ) 613,767 (175,365 ) — 40,382 Income (loss) from continuing operations before income taxes 397,870 (2,641 ) (136,333 ) — 258,896 Provision for income taxes — 3,441 21,628 — 25,069 Equity in earnings in subsidiaries (164,043 ) (52,516 ) 52,584 163,975 — Net income (loss) $ 233,827 $ (58,598 ) $ (105,377 ) $ 163,975 $ 233,827 Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 26, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net sales $ — $ 9,537,544 $ 9,961,077 $ (6,327,359 ) $ 13,171,262 Cost of sales — 8,859,138 9,881,617 (6,327,359 ) 12,413,396 Gross profit — 678,406 79,460 — 757,866 Selling, general and administrative expenses — 124,627 289,240 — 413,867 Intangible amortization 150 1,687 13,346 — 15,183 Interest and other, net (51,777 ) 547,193 (510,866 ) — (15,450 ) Income from continuing operations before income taxes 51,627 4,899 287,740 — 344,266 Provision for income taxes — 14,789 16,687 — 31,476 Equity in earnings in subsidiaries 261,163 13,647 86,579 (361,389 ) — Net income $ 312,790 $ 3,757 $ 357,632 $ (361,389 ) $ 312,790 |
Schedule of condensed consolidating statements of comprehensive income (loss) | Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 233,827 $ (58,598 ) $ (105,377 ) $ 163,975 $ 233,827 Other comprehensive income (loss): 0 Foreign currency translation adjustments, net of zero tax (27,484 ) (57,186 ) (51,530 ) 108,716 (27,484 ) Unrealized gain on derivative instruments and other, net of zero tax 7,285 5,785 7,285 (13,070 ) 7,285 Comprehensive income (loss) $ 213,628 $ (109,999 ) $ (149,622 ) $ 259,621 $ 213,628 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 26, 2014 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income $ 312,790 $ 3,757 $ 357,632 $ (361,389 ) $ 312,790 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (9,828 ) 93,662 71,337 (164,999 ) (9,828 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax 8,292 (228 ) 8,292 (8,064 ) 8,292 Comprehensive income $ 311,254 $ 97,191 $ 437,261 $ (534,452 ) $ 311,254 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 25, 2015 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 122,977 $ (32,349 ) $ 5,416 $ 26,933 $ 122,977 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (30,267 ) (33,696 ) (30,633 ) 64,329 (30,267 ) Unrealized gain (loss) on derivative instruments and other, net of zero tax (5,544 ) 1,160 (5,544 ) 4,384 (5,544 ) Comprehensive income (loss) $ 87,166 $ (64,885 ) $ (30,761 ) $ 95,646 $ 87,166 Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three -Month Period Ended September 26, 2014 Parent Guarantor Non- Eliminations Consolidated (in thousands) Net income (loss) $ 138,903 $ (82,073 ) $ 152,160 $ (70,087 ) $ 138,903 Other comprehensive income (loss): Foreign currency translation adjustments, net of zero tax (5,683 ) 77,712 65,611 (143,323 ) (5,683 ) Unrealized loss on derivative instruments and other, net of zero tax (2,433 ) (2,058 ) (2,433 ) 4,491 (2,433 ) Comprehensive income (loss) $ 130,787 $ (6,419 ) $ 215,338 $ (208,919 ) $ 130,787 |
Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 25, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 389,949 $ (247,462 ) $ 519,508 $ — $ 661,995 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (88,699 ) (205,330 ) 11 (294,018 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — (559,442 ) (82,471 ) — (641,913 ) Investing cash flows to affiliates (1,326,493 ) (836,415 ) (1,193,747 ) 3,356,655 — Other investing activities, net — (22,822 ) 12,306 — (10,516 ) Net cash used in investing activities (1,326,493 ) (1,507,378 ) (1,469,242 ) 3,356,666 (946,447 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt 595,309 209 35 — 595,553 Repayments of bank borrowings, long-term debt and capital lease obligations (17,507 ) (1,039 ) (2,544 ) — (21,090 ) Payments for repurchases of ordinary shares (241,978 ) — — — (241,978 ) Net proceeds from issuance of ordinary shares 49,074 — — — 49,074 Financing cash flows from affiliates 435,540 1,810,912 1,110,214 (3,356,666 ) — Other financing activities, net — — (37,872 ) — (37,872 ) Net cash provided by financing activities 820,438 1,810,082 1,069,833 (3,356,666 ) 343,687 Effect of exchange rates on cash and cash equivalents 24,766 2,955 (46,937 ) — (19,216 ) Net increase (decrease) in cash and cash equivalents (91,340 ) 58,197 73,162 — 40,019 Cash and cash equivalents, beginning of period 608,971 168,272 851,165 — 1,628,408 Cash and cash equivalents, end of period $ 517,631 $ 226,469 $ 924,327 $ — $ 1,668,427 Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 26, 2014 Parent Guarantor Non-Guarantor Eliminations Consolidated (In thousands) Net cash provided by (used in) operating activities $ 24,949 $ (200,703 ) $ 481,999 $ — $ 306,245 Cash flows from investing activities: Purchases of property and equipment, net of proceeds from disposal — (73,455 ) (64,929 ) (11 ) (138,395 ) Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business — — (38,082 ) — (38,082 ) Investing cash flows from (to) affiliates (833,951 ) (924,184 ) 255,111 1,503,024 — Other investing activities, net — (6,134 ) (22,721 ) — (28,855 ) Net cash provided by (used in) investing activities (833,951 ) (1,003,773 ) 129,379 1,503,013 (205,332 ) Cash flows from financing activities: Proceeds from bank borrowings and long-term debt — — 11,387 — 11,387 Repayments of bank borrowings, long-term debt and capital lease obligations (6,250 ) (888 ) (2,047 ) — (9,185 ) Payments for repurchases of ordinary shares (206,771 ) — — — (206,771 ) Net proceeds from issuance of ordinary shares 11,412 — — — 11,412 Financing cash flows from (to) affiliates 925,410 1,317,706 (740,103 ) (1,503,013 ) — Other financing activities, net — — 3,382 — 3,382 Net cash provided by (used in) financing activities 723,801 1,316,818 (727,381 ) (1,503,013 ) (189,775 ) Effect of exchange rates on cash and cash equivalents (83,374 ) (1,139 ) 93,999 — 9,486 Net decrease (increase) in cash and cash equivalents (168,575 ) 111,203 (22,004 ) — (79,376 ) Cash and cash equivalents, beginning of period 638,714 210,462 744,552 — 1,593,728 Cash and cash equivalents, end of period $ 470,139 $ 321,665 $ 722,548 $ — $ 1,514,352 |
BALANCE SHEET ITEMS (Details)
BALANCE SHEET ITEMS (Details) - USD ($) $ in Thousands | Sep. 25, 2015 | Mar. 31, 2015 |
Inventories | ||
Raw materials | $ 2,265,927 | $ 2,330,428 |
Work-in-progress | 669,280 | 557,786 |
Finished goods | 626,119 | 600,538 |
Inventories, total | $ 3,561,326 | $ 3,488,752 |
BALANCE SHEET ITEMS (Details 2)
BALANCE SHEET ITEMS (Details 2) $ in Thousands | 6 Months Ended | |
Sep. 25, 2015USD ($)segment | Mar. 31, 2015USD ($) | |
Goodwill [Line Items] | ||
Number of operating segments | segment | 4 | |
Activity in goodwill account | ||
Balance, beginning of the year | $ 333,631 | |
Additions | 299,165 | |
Purchase accounting adjustments | 125 | |
Foreign currency translation adjustments | (5,562) | |
Balance, end of the period | 627,359 | |
Gross Carrying Amount | 469,946 | $ 173,838 |
Accumulated Amortization | (115,467) | (92,294) |
Total amortization expense | 354,479 | 81,544 |
HRS | ||
Activity in goodwill account | ||
Balance, beginning of the year | 93,138 | |
Additions | 292,608 | |
Purchase accounting adjustments | 125 | |
Foreign currency translation adjustments | (5,562) | |
Balance, end of the period | 380,309 | |
CTG | ||
Activity in goodwill account | ||
Balance, beginning of the year | 68,234 | |
Additions | 0 | |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 68,234 | |
IEI | ||
Activity in goodwill account | ||
Balance, beginning of the year | 64,221 | |
Additions | 2,982 | |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 67,203 | |
INS | ||
Activity in goodwill account | ||
Balance, beginning of the year | 108,038 | |
Additions | 3,575 | |
Purchase accounting adjustments | 0 | |
Foreign currency translation adjustments | 0 | |
Balance, end of the period | 111,613 | |
Customer-related intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 279,204 | 133,853 |
Accumulated Amortization | (93,401) | (80,506) |
Total amortization expense | 185,803 | 53,347 |
Licenses and other intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 190,742 | 39,985 |
Accumulated Amortization | (22,066) | (11,788) |
Total amortization expense | 168,676 | $ 28,197 |
Mirror Controls International | ||
Activity in goodwill account | ||
Balance, end of the period | 290,478 | |
Mirror Controls International | Customer-related intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | 131,400 | |
Mirror Controls International | Licenses and other intangibles | ||
Activity in goodwill account | ||
Gross Carrying Amount | $ 148,600 |
BALANCE SHEET ITEMS (Details 3)
BALANCE SHEET ITEMS (Details 3) - USD ($) $ in Thousands | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 31, 2015 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 31, 2014 |
Estimated future annual amortization expense for acquired intangible assets | ||||||
2,016 | $ 30,583 | |||||
2,017 | 54,734 | |||||
2,018 | 48,934 | |||||
2,019 | 44,593 | |||||
2,020 | 39,971 | |||||
Thereafter | 135,664 | |||||
Total amortization expense | 354,479 | $ 81,544 | ||||
Other current assets related to purchase of assets on behalf of customer financed by a third party banking institution | 83,700 | 169,200 | ||||
Other receivables relating to assets sold to third parties but not yet collected | 73,600 | |||||
Customer working capital advances | 147,100 | 189,600 | ||||
Customer related accruals | 506,200 | 454,800 | ||||
Deferred revenue | 278,400 | 272,600 | ||||
Other current liability for purchase of assets on behalf of customer financed by a third party banking institution | 161,500 | 197,700 | ||||
Asset-Backed Securitization Programs | ||||||
Estimated future annual amortization expense for acquired intangible assets | ||||||
Transferor's interests in transferred financial assets, fair value | $ 537,619 | $ 516,287 | $ 600,672 | $ 426,057 | $ 463,124 | $ 470,908 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Share-based compensation | ||||
Share-based compensation expense | $ 16,200 | $ 10,919 | $ 32,326 | $ 22,600 |
Cost of sales | ||||
Share-based compensation | ||||
Share-based compensation expense | 2,015 | 1,868 | 4,033 | 3,478 |
Selling, general and administrative expenses | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 14,185 | $ 9,051 | $ 28,293 | $ 19,122 |
SHARE-BASED COMPENSATION (Det39
SHARE-BASED COMPENSATION (Details 2) $ / shares in Units, $ in Millions | 6 Months Ended |
Sep. 25, 2015USD ($)$ / sharesshares | |
Share options | |
Share-based compensation | |
Share options outstanding (in shares) | 5,800,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 5.44 |
Options exercisable (shares) | 5,800,000 |
Weighted average exercise price of exercisable shares (in dollars per share) | $ / shares | $ 5.44 |
Restricted Stock Units, Share Bonus Awards with Market Conditions, and Share Bonus Awards With Free Cash Flow Targets | |
Share-based compensation | |
Unvested share bonus awards granted | 6,100,000 |
Number of shares outstanding | 17,300,000 |
Unrecognized compensation expense | $ | $ 122.5 |
Share weighted-average remaining vesting period | 2 years 9 months 4 days |
Share bonus awards | |
Share-based compensation | |
Unvested share bonus awards granted | 5,200,000 |
Average grant date price of unvested share bonus awards (in dollars per share) | $ / shares | $ 11.97 |
Share Bonus Awards with Market Conditions | |
Share-based compensation | |
Number of shares outstanding | 3,700,000 |
Unrecognized compensation expense | $ | $ 20 |
Share Bonus Awards with Market Conditions | Fiscal 2013 | |
Share-based compensation | |
Shares vested | 2,200,000 |
Share Bonus Awards with Market Conditions | Minimum | |
Share-based compensation | |
Number of shares that may be issued | 0 |
Share Bonus Awards with Market Conditions | Maximum | |
Share-based compensation | |
Number of shares that may be issued | 7,400,000 |
Share Bonus Awards with Market Conditions | Key employees | |
Share-based compensation | |
Unvested share bonus awards granted | 700,000 |
Vesting period | 3 years |
Share Bonus Awards with Market Conditions | Key employees | Minimum | |
Share-based compensation | |
Unvested share bonus awards granted | 0 |
Share Bonus Awards with Market Conditions | Key employees | Maximum | |
Share-based compensation | |
Unvested share bonus awards granted | 1,400,000 |
Share Bonus Awards with Market Conditions | Certain executive officers | |
Share-based compensation | |
Vesting period | 3 years |
Measurement period | 3 years |
Share Bonus Awards with Market Conditions | Certain executive officers | Minimum | |
Share-based compensation | |
Unvested share bonus awards granted | 0 |
Share Bonus Awards with Market Conditions | Certain executive officers | Maximum | |
Share-based compensation | |
Unvested share bonus awards granted | 400,000 |
Share Bonus Awards With Free Cash Flow Targets | Certain executive officers | |
Share-based compensation | |
Unvested share bonus awards granted | 200,000 |
Average grant date price of unvested share bonus awards (in dollars per share) | $ / shares | $ 14.96 |
Nonvested average grant date price (in dollars per share) | $ / shares | $ 12.10 |
Half of the share bonus awards with market conditions | Fiscal 2012 | |
Share-based compensation | |
Shares vested | 500,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Basic earnings per share: | ||||
Net income | $ 122,977 | $ 138,903 | $ 233,827 | $ 312,790 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 563,333 | 585,760 | 564,417 | 586,497 |
Basic earnings per share (in dollars per share) | $ 0.22 | $ 0.24 | $ 0.41 | $ 0.53 |
Diluted earnings per share: | ||||
Net income | $ 122,977 | $ 138,903 | $ 233,827 | $ 312,790 |
Shares used in computation: | ||||
Weighted-average ordinary shares outstanding (in shares) | 563,333 | 585,760 | 564,417 | 586,497 |
Weighted-average ordinary share equivalents from stock options and awards (in shares) | 6,322 | 10,111 | 8,871 | 12,089 |
Weighted-average ordinary shares and ordinary share equivalents outstanding (in shares) | 569,655 | 595,871 | 573,288 | 598,586 |
Diluted earnings per share (in dollars per share) | $ 0.22 | $ 0.23 | $ 0.41 | $ 0.52 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Options | ||||
Anti-diluted securities excluded from the computation of diluted earnings per share | ||||
Ordinary shares excluded from the computation of diluted earnings per share | 1.1 | 7 | 1.2 | 12.1 |
Share bonus awards | ||||
Anti-diluted securities excluded from the computation of diluted earnings per share | ||||
Ordinary shares excluded from the computation of diluted earnings per share | 5.3 | 0.8 | 2.9 | 0.4 |
BANK BORROWINGS AND LONG TERM42
BANK BORROWINGS AND LONG TERM DEBT (Details) - USD ($) $ in Thousands | Sep. 25, 2015 | Jun. 08, 2015 | Mar. 31, 2015 |
Debt Instrument [Line Items] | |||
Total | $ 2,666,150 | $ 2,083,733 | |
Term Loan, including current portion, due in installments through August 2018 | |||
Debt Instrument [Line Items] | |||
Total | 588,750 | 592,500 | |
Term Loan, including current portion, due in installments through March 2019 | |||
Debt Instrument [Line Items] | |||
Total | 468,750 | 475,000 | |
4.625% Notes due February 2020 | |||
Debt Instrument [Line Items] | |||
Total | $ 500,000 | $ 500,000 | |
Debt instrument interest rate (as a percent) | 4.625% | 4.625% | |
5.000% Notes due February 2023 | |||
Debt Instrument [Line Items] | |||
Total | $ 500,000 | $ 500,000 | |
Debt instrument interest rate (as a percent) | 5.00% | 5.00% | |
4.750% Notes due June 2025 | |||
Debt Instrument [Line Items] | |||
Total | $ 595,402 | $ 595,300 | $ 0 |
Debt instrument interest rate (as a percent) | 4.75% | 4.75% | 4.75% |
Other | |||
Debt Instrument [Line Items] | |||
Total | $ 13,248 | $ 16,233 |
BANK BORROWINGS AND LONG TERM43
BANK BORROWINGS AND LONG TERM DEBT (Details 2) - USD ($) $ in Thousands | Sep. 25, 2015 | Mar. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,016 | $ 30,000 | |
2,017 | 52,500 | |
2,018 | 52,500 | |
2,019 | 922,500 | |
2,020 | 500,000 | |
Thereafter | 1,108,650 | |
Total | $ 2,666,150 | $ 2,083,733 |
BANK BORROWINGS AND LONG TERM44
BANK BORROWINGS AND LONG TERM DEBT (Details 3) | Oct. 01, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 08, 2015USD ($) | Sep. 25, 2015USD ($) | Oct. 01, 2015EUR (€) | Mar. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Long-term debt, weighted average interest rate | 3.50% | 3.20% | ||||
Long-term debt | $ 2,666,150,000 | $ 2,083,733,000 | ||||
4.750% Notes due June 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 600,000,000 | |||||
Debt instrument interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||
Debt instrument, redemption price (as a percent) | 99.213% | |||||
Effective interest rate | 4.85% | |||||
Long-term debt | $ 595,300,000 | $ 595,402,000 | $ 0 | |||
Debt issuance cost | $ 7,900,000 | |||||
Redemption price as a percentage of principal amount | 100.00% | |||||
Percentage of Notes principal that may be redeemed upon occurrence of a change of control repurchase event | 101.00% | |||||
4.750% Notes due June 2025 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of principal amount of the then outstanding Notes due and payable | 25.00% | |||||
Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 500,000,000 | |||||
Line of credit borrowing capacity | 2,000,000,000 | |||||
Increase in debt instrument | $ 100,000,000 | |||||
Mirror Controls International | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 56,000,000 | € 50,000,000 | ||||
Term of Debt instrument | 5 years |
INTEREST AND OTHER, NET (Detail
INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Business Acquisitions | ||||
Interest expense | $ 25.1 | $ 19 | $ 45.2 | $ 37.5 |
Interest income | 4.3 | 4.8 | 7.8 | 10.1 |
Recognized gains on foreign exchange transactions | 12.4 | $ 6.8 | 14.6 | $ 5.4 |
Acquisition related costs | 8.1 | $ 8.1 | ||
Mirror Controls International | ||||
Business Acquisitions | ||||
Acquisition related costs | $ 6.7 |
OTHER CHARGES (INCOME), NET (De
OTHER CHARGES (INCOME), NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 25, 2015 | Sep. 25, 2015 | Sep. 26, 2014 | |
Commitments | |||
Refund given on disposition of assets | $ 1.6 | $ 1.6 | |
Supply commitment | |||
Commitments | |||
Other charges (income), net | $ 55 |
OTHER CHARGES (INCOME), NET (47
OTHER CHARGES (INCOME), NET (Details 2) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Other charges (income), net | ||
Proceeds from sale of facility | $ 2,383 | $ 28,809 |
Certain manufacturing facilities | ||
Other charges (income), net | ||
Recognized loss in connection with disposition of a manufacturing facility | $ 11,000 | 11,000 |
Proceeds from sale of facility | 11,500 | |
Net assets sold | 27,200 | |
Transactions costs in connection with a disposition of a manufacturing facility | 4,600 | |
Foreign currency translation gain | $ 9,300 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - 6 months ended Sep. 25, 2015 € in Thousands, ₪ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SGD in Thousands, SFr in Thousands, SEK in Thousands, MYR in Thousands, MXN in Thousands, HUF in Thousands, DKK in Thousands, CAD in Thousands, BRL in Thousands, $ in Thousands | USD ($) | SGD | GBP (£) | MYR | BRL | ILS (₪) | SEK | HUF | CAD | USD ($) | JPY (¥) | EUR (€) | CHF (SFr) | MXN | CNY (¥) | DKK |
Notional amount | ||||||||||||||||
Deferred losses | $ 9,700 | |||||||||||||||
Forward and Swap Contracts | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | $ 4,900,000 | |||||||||||||||
Forward and Swap Contracts | Buy | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 2,501,570 | |||||||||||||||
Forward and Swap Contracts | Sell | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 2,360,648 | |||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 521,403 | |||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | CNY | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 241,709 | ¥ 1,543,000 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | EUR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 5,367 | 4,790 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | HUF | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | HUF 13,758,000 | 49,370 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | ILS | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | ₪ 176,700 | 44,759 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MXN | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 82,580 | MXN 1,414,000 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MYR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | MYR 196,000 | 45,094 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | Other | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 52,524 | |||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 70,034 | |||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | CNY | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 0 | 0 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | EUR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 69,534 | 60,780 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | HUF | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 0 | 0 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | ILS | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 0 | 0 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MXN | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 0 | 0 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MYR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 0 | 0 | ||||||||||||||
Forward and Swap Contracts | Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | Other | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 500 | |||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 1,980,167 | |||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | BRL | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | BRL 0 | 0 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | CAD | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | CAD 19,200 | 14,403 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | CHF | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 17,320 | SFr 16,919 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | CNY | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 738,966 | 4,719,018 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | DKK | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 29,614 | DKK 197,200 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | EUR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 670,293 | € 597,631 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | GBP | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | £ 32,393 | 49,449 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | HUF | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 20,332,000 | 72,961 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | ILS | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 62,000 | 15,705 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | JPY | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 18,807 | ¥ 2,256,614 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | MXN | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 86,059 | 1,473,560 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | MYR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 384,331 | 88,423 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | SEK | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | SEK 474,290 | 56,315 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | SGD | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | SGD 43,268 | 30,353 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Buy | Other | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 91,499 | |||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 2,290,614 | |||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | BRL | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | BRL 686,000 | 165,929 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | CAD | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | CAD 12,500 | 9,377 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | CHF | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 44,712 | SFr 43,701 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | CNY | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 512,000 | ¥ 3,236,303 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | DKK | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 23,382 | DKK 155,700 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | EUR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 1,130,041 | € 1,007,752 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | GBP | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | £ 59,840 | 91,382 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | HUF | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | HUF 20,408,000 | 73,234 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | ILS | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | ₪ 85,100 | 21,556 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | JPY | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 14,079 | ¥ 1,700,061 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | MXN | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | 19,380 | MXN 331,830 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | MYR | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | MYR 94,650 | 21,776 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | SEK | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | SEK 886,483 | 105,026 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | SGD | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | SGD 8,348 | 5,856 | ||||||||||||||
Forward and Swap Contracts | Economic hedges | Sell | Other | ||||||||||||||||
Notional amount | ||||||||||||||||
Notional Contract Value | $ 52,884 |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details 2) - Foreign currency contracts - USD ($) $ in Thousands | Sep. 25, 2015 | Mar. 31, 2015 |
Other current assets | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | $ 2,507 | $ 2,896 |
Other current assets | Economic hedges | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives | 17,119 | 22,933 |
Other current liabilities | Derivatives designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | 11,923 | 19,729 |
Other current liabilities | Economic hedges | ||
Fair Values of Derivative Instruments | ||
Liability Derivatives | $ 14,581 | $ 11,328 |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (164,893) | $ (119,576) | $ (180,505) | $ (126,156) |
Other comprehensive loss before reclassifications | (44,085) | (6,064) | (42,055) | 43 |
Net (gains) losses reclassified from accumulated other comprehensive loss | 8,274 | (2,052) | 21,856 | (1,579) |
Net current-period other comprehensive gain (loss) | (35,811) | (8,116) | (20,199) | (1,536) |
Ending balance | (200,704) | (127,692) | (200,704) | (127,692) |
Unrealized gain (loss) on derivative instruments and other | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (55,437) | (22,124) | (68,266) | (32,849) |
Other comprehensive loss before reclassifications | (13,818) | (2,965) | (14,419) | (1,965) |
Net (gains) losses reclassified from accumulated other comprehensive loss | 8,274 | 532 | 21,704 | 10,257 |
Net current-period other comprehensive gain (loss) | (5,544) | (2,433) | 7,285 | 8,292 |
Ending balance | (60,981) | (24,557) | (60,981) | (24,557) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (109,456) | (97,452) | (112,239) | (93,307) |
Other comprehensive loss before reclassifications | (30,267) | (3,099) | (27,636) | 2,008 |
Net (gains) losses reclassified from accumulated other comprehensive loss | 0 | (2,584) | 152 | (11,836) |
Net current-period other comprehensive gain (loss) | (30,267) | (5,683) | (27,484) | (9,828) |
Ending balance | $ (139,723) | $ (103,135) | $ (139,723) | $ (103,135) |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Reclassification | ||||
Other charges (income), net | $ (22,035) | $ (12,506) | $ (38,540) | $ (31,143) |
Net gains reclassified from AOCI | (8,274) | 2,052 | (21,856) | 1,579 |
Certain manufacturing facilities | ||||
Reclassification | ||||
Recognized loss in connection with disposition of a manufacturing facility | 11,000 | 11,000 | ||
Unrealized gain (loss) on derivative instruments and other | ||||
Reclassification | ||||
Net gains reclassified from AOCI | $ (8,274) | $ (532) | (21,704) | (10,257) |
Unrealized gain (loss) on derivative instruments and other | Reclassification out of accumulated other comprehensive income | ||||
Reclassification | ||||
Cost of sales | 20,700 | |||
Other charges (income), net | 4,200 | |||
Foreign currency transaction and translation adjustment net of tax | Reclassification out of accumulated other comprehensive income | ||||
Reclassification | ||||
Net gains reclassified from AOCI | $ 2,600 | |||
Foreign currency transaction and translation adjustment net of tax | Reclassification out of accumulated other comprehensive income | Certain manufacturing facilities | ||||
Reclassification | ||||
Other charges (income), net | $ 9,300 |
TRADE RECEIVABLES SECURITIZAT52
TRADE RECEIVABLES SECURITIZATION (Details) | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2015USD ($) | Sep. 26, 2014USD ($) | Sep. 25, 2015USD ($)program | Sep. 26, 2014USD ($) | Mar. 31, 2015USD ($) | |
Trade Receivables Securitization disclosures | |||||
Servicing assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Servicing Liability | 0 | 0 | $ 0 | 0 | |
Asset-Backed Securitization Programs | |||||
Trade Receivables Securitization disclosures | |||||
Number of asset-backed securitization programs | program | 2 | ||||
Percentage of receivables sold to unaffiliated institutions | 100.00% | ||||
Company's accounts receivables sold to third-party | 1,400,000,000 | $ 1,400,000,000 | $ 1,300,000,000 | ||
Amount received from accounts receivable sold to third-party | 890,000,000 | 890,000,000 | 740,700,000 | ||
Cash proceeds from sale of accounts receivable | 2,400,000,000 | 2,100,000,000 | |||
Cash flows from new transfers of receivables | 255,300,000 | 76,500,000 | |||
Activity in the deferred purchase price receivables account | |||||
Beginning balance | 516,287,000 | 463,124,000 | 600,672,000 | 470,908,000 | |
Transfers of receivables | 983,677,000 | 720,921,000 | 1,750,725,000 | 1,499,781,000 | |
Collections | (962,345,000) | (757,988,000) | (1,813,778,000) | (1,544,632,000) | |
Ending balance | $ 537,619,000 | 426,057,000 | $ 537,619,000 | 426,057,000 | |
Asset-Backed Securitization Programs | Minimum | |||||
Trade Receivables Securitization disclosures | |||||
Service fee received, percent | 0.10% | 0.10% | |||
Asset-Backed Securitization Programs | Maximum | |||||
Trade Receivables Securitization disclosures | |||||
Service fee received, percent | 0.50% | 0.50% | |||
Global Program | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | $ 700,000,000 | $ 700,000,000 | |||
Global Program | Committed | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 600,000,000 | 600,000,000 | |||
Global Program | Uncommitted | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 100,000,000 | 100,000,000 | |||
North American Program | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 265,000,000 | 265,000,000 | |||
North American Program | Committed | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 225,000,000 | 225,000,000 | |||
North American Program | Uncommitted | |||||
Trade Receivables Securitization disclosures | |||||
Investment limits with financial institution | 40,000,000 | 40,000,000 | |||
Sales of Receivables to Third Party Banks | |||||
Trade Receivables Securitization disclosures | |||||
Company's accounts receivables sold to third-party | 1,200,000,000 | $ 2,300,000,000 | 1,200,000,000 | $ 2,300,000,000 | |
Receivables sold but not yet collected from banking institutions | $ 339,100,000 | $ 339,100,000 | $ 485,600,000 |
FAIR VALUE MEASUREMENT OF ASS53
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Details) - USD ($) | Sep. 25, 2015 | Sep. 26, 2014 |
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 ASS54
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Contingent Consideration Liability [Roll Forward] | ||||
Beginning balance | $ 4,500 | $ 11,300 | $ 4,500 | $ 11,300 |
Additions to accrual | 0 | 4,500 | 0 | 4,500 |
Payments | 0 | 0 | 0 | 0 |
Fair value adjustments | 0 | 0 | 0 | 0 |
Ending balance | $ 4,500 | $ 15,800 | $ 4,500 | $ 15,800 |
FAIR VALUE MEASUREMENT OF ASS55
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Details 3) - Recurring Basis - USD ($) $ in Thousands | Sep. 25, 2015 | Mar. 31, 2015 |
Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | $ 447,217 | $ 674,859 |
Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 537,619 | 600,672 |
Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 19,626 | 25,829 |
Total Liabilities | (26,504) | (31,057) |
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 | 46,615 | 46,109 |
Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | (4,500) | (4,500) |
Level 1 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 1 | Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 1 | Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 1 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 8,939 | 9,068 |
Level 1 | Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | 0 | 0 |
Level 2 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 447,217 | 674,859 |
Level 2 | Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 2 | Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 19,626 | 25,829 |
Total Liabilities | (26,504) | (31,057) |
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 | 37,676 | 37,041 |
Level 2 | Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | 0 | 0 |
Level 3 | Money market funds and time deposits | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 3 | Deferred purchase price receivable (Note 10) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 537,619 | 600,672 |
Level 3 | Foreign exchange contracts (Note 8) | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Assets | 0 | 0 |
Level 3 | Contingent consideration in connection with business acquisitions | ||
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis | ||
Total Liabilities | $ (4,500) | $ (4,500) |
FAIR VALUE MEASUREMENT OF ASS56
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Details 4) - USD ($) $ in Thousands | Sep. 25, 2015 | Jun. 08, 2015 | Mar. 31, 2015 |
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% | 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% | ||
Carrying Amount | |||
Other financial instruments | |||
Fair Value | $ 2,652,902 | $ 2,067,500 | |
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through August 2018 | |||
Other financial instruments | |||
Fair Value | 588,750 | 592,500 | |
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through March 2019 | |||
Other financial instruments | |||
Fair Value | 468,750 | 475,000 | |
Carrying Amount | Level 1 | 4.625% Notes due February 2020 | |||
Other financial instruments | |||
Fair Value | 500,000 | 500,000 | |
Carrying Amount | Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Fair Value | 500,000 | 500,000 | |
Carrying Amount | Level 1 | 4.750% Notes due June 2025 | |||
Other financial instruments | |||
Fair Value | 595,402 | 0 | |
Fair Value | |||
Other financial instruments | |||
Fair Value | 2,661,544 | 2,114,531 | |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through August 2018 | |||
Other financial instruments | |||
Fair Value | 586,177 | 582,131 | |
Fair Value | Level 1 | Term Loan, including current portion, due in installments through March 2019 | |||
Other financial instruments | |||
Fair Value | 466,992 | 465,500 | |
Fair Value | Level 1 | 4.625% Notes due February 2020 | |||
Other financial instruments | |||
Fair Value | 520,625 | 523,750 | |
Fair Value | Level 1 | 5.000% Notes due February 2023 | |||
Other financial instruments | |||
Fair Value | 502,750 | 543,150 | |
Fair Value | Level 1 | 4.750% Notes due June 2025 | |||
Other financial instruments | |||
Fair Value | $ 585,000 | $ 0 |
BUSINESS AND ASSETS ACQUISITI57
BUSINESS AND ASSETS ACQUISITIONS (Details) $ in Thousands | Sep. 28, 2015USD ($) | Jun. 29, 2015USD ($) | Sep. 25, 2015USD ($) | Sep. 25, 2015USD ($)acquisition | Sep. 26, 2014USD ($) | Jun. 26, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 27, 2014USD ($) | Mar. 31, 2014USD ($) |
Business Acquisitions | |||||||||
Acquisition of businesses, net of cash acquired | $ 641,913 | $ 38,082 | |||||||
Current assets: | |||||||||
Goodwill | $ 627,359 | 627,359 | $ 333,631 | ||||||
Current liabilities: | |||||||||
Acquisition related costs | 8,100 | 8,100 | |||||||
Gross Carrying Amount | 469,946 | 469,946 | 173,838 | ||||||
Goodwill and intangibles | 981,838 | 981,838 | 415,175 | ||||||
Potential contingent consideration | $ 4,500 | 4,500 | $ 15,800 | $ 4,500 | 4,500 | $ 11,300 | $ 11,300 | ||
Maximum time to complete final allocation of purchase price | 12 months | ||||||||
Alcatel-Lucent | |||||||||
Business Acquisitions | |||||||||
Acquisition of businesses, net of cash acquired | $ 67,500 | ||||||||
Current assets: | |||||||||
Inventories | 55,000 | 55,000 | |||||||
Property and equipment, net | 10,000 | 10,000 | |||||||
Intangibles | 2,100 | 2,100 | |||||||
Goodwill | 3,600 | 3,600 | |||||||
Current liabilities: | |||||||||
Net liabilities assumed in acquisition | 3,200 | 3,200 | |||||||
Series of Individually Immaterial Business Acquisitions | |||||||||
Business Acquisitions | |||||||||
Purchase consideration net cash | $ 15,300 | ||||||||
Number of acquisitions completed | acquisition | 3 | ||||||||
Cash acquired from acquisitions | $ 100 | ||||||||
Current assets: | |||||||||
Property and equipment, net | 2,000 | 2,000 | |||||||
Current liabilities: | |||||||||
Assumed liabilities | 600 | 600 | |||||||
Goodwill and intangibles | 18,900 | 18,900 | |||||||
Mirror Controls International | |||||||||
Business Acquisitions | |||||||||
Acquisition of businesses, net of cash acquired | $ 555,200 | ||||||||
Cash acquired | $ 27,700 | ||||||||
Current assets: | |||||||||
Accounts receivable | 41,392 | 41,392 | |||||||
Inventories | 19,169 | 19,169 | |||||||
Other current assets | 2,790 | 2,790 | |||||||
Total current assets | 63,351 | 63,351 | |||||||
Property and equipment, net | 39,256 | 39,256 | |||||||
Other assets | 942 | 942 | |||||||
Intangibles | 280,000 | 280,000 | |||||||
Goodwill | 290,478 | 290,478 | |||||||
Total assets | 674,027 | 674,027 | |||||||
Current liabilities: | |||||||||
Accounts payable | 28,002 | 28,002 | |||||||
Accrued liabilities & other current liabilities | 20,677 | 20,677 | |||||||
Total current liabilities | 48,679 | 48,679 | |||||||
Other liabilities | 70,190 | 70,190 | |||||||
Total aggregate purchase price | 555,158 | 555,158 | |||||||
Acquisition related costs | 6,700 | ||||||||
Subsequent Event | Nextracker | |||||||||
Business Acquisitions | |||||||||
Acquisition of businesses, net of cash acquired | $ 245,000 | ||||||||
Current liabilities: | |||||||||
Potential contingent consideration | $ 97,200 | ||||||||
Customer-related intangibles | |||||||||
Current liabilities: | |||||||||
Gross Carrying Amount | 279,204 | $ 279,204 | 133,853 | ||||||
Customer-related intangibles | Alcatel-Lucent | |||||||||
Current liabilities: | |||||||||
Weighted average useful life | 5 years | ||||||||
Customer-related intangibles | Mirror Controls International | |||||||||
Current liabilities: | |||||||||
Gross Carrying Amount | 131,400 | $ 131,400 | |||||||
Weighted average useful life | 8 years | ||||||||
Licenses and other intangibles | |||||||||
Current liabilities: | |||||||||
Gross Carrying Amount | 190,742 | $ 190,742 | $ 39,985 | ||||||
Licenses and other intangibles | Mirror Controls International | |||||||||
Current liabilities: | |||||||||
Gross Carrying Amount | $ 148,600 | $ 148,600 | |||||||
Weighted average useful life | 10 years |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - 6 months ended Sep. 25, 2015 BRL in Millions, $ in Millions | BRL | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Income tax examination, estimate of possible loss | BRL 50 | $ 12 |
Amount of assessment related to income and social contribution taxes interest and penalties received | $ 100 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 25, 2015 | Sep. 25, 2015 | Aug. 20, 2015 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||
Aggregate shares repurchased (in shares) | 12.8 | 20.6 | |
Aggregate purchase value of shares repurchased | $ 138,000,000 | $ 232,400,000 | |
Authorized amount of stock repurchase program | $ 500,000,000 | ||
Amount remaining to be repurchased under the plans | $ 422,500,000 | $ 422,500,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015USD ($) | Sep. 26, 2014USD ($) | Sep. 25, 2015USD ($)segment | Sep. 26, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 4 | |||
Net sales | $ 6,316,762 | $ 6,528,517 | $ 11,883,010 | $ 13,171,262 |
Intangible amortization | 16,127 | 8,232 | 23,798 | 15,183 |
Stock-based compensation | 16,200 | 10,919 | 32,326 | 22,600 |
Other charges (income), net | 1,678 | (2,584) | 1,842 | (46,593) |
Interest and other, net | 22,035 | 12,506 | 38,540 | 31,143 |
Income before income taxes | 140,280 | 154,337 | 258,896 | 344,266 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6,316,762 | 6,528,517 | 11,883,010 | 13,171,262 |
Total segment income | 196,320 | 183,410 | 355,402 | 366,599 |
Operating Segments | Integrated Network Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,204,966 | 2,340,707 | 4,171,528 | 4,781,133 |
Total segment income | 65,758 | 57,643 | 122,822 | 130,354 |
Operating Segments | Consumer Technology Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,011,089 | 2,209,543 | 3,576,052 | 4,431,683 |
Total segment income | 41,170 | 53,336 | 80,013 | 83,200 |
Operating Segments | Industrial & Emerging Industries | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,145,842 | 1,097,202 | 2,275,981 | 2,221,668 |
Total segment income | 32,268 | 35,582 | 61,268 | 82,906 |
Operating Segments | High Reliability Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 954,865 | 881,065 | 1,859,449 | 1,736,778 |
Total segment income | 71,199 | 48,801 | 131,085 | 102,944 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment income | $ (14,075) | $ (11,952) | $ (39,786) | $ (32,805) |
SUPPLEMENTAL GUARANTOR AND NO61
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details) $ in Millions | 6 Months Ended |
Sep. 25, 2015USD ($)tranche | |
Bank borrowings and long-term debt | |
Number of tranches | tranche | 3 |
Percentage of ownership interest owned in subsidiaries that guarantees indebtedness | 100.00% |
4.625% Notes due February 2020 | |
Bank borrowings and long-term debt | |
Maximum borrowing capacity | $ 500 |
5.000% Notes due February 2023 | |
Bank borrowings and long-term debt | |
Maximum borrowing capacity | 500 |
4.750% Notes due June 2025 | |
Bank borrowings and long-term debt | |
Maximum borrowing capacity | $ 600 |
SUPPLEMENTAL GUARANTOR AND NO62
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands | Sep. 25, 2015 | Mar. 31, 2015 | Sep. 26, 2014 | Mar. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 1,668,427 | $ 1,628,408 | $ 1,514,352 | $ 1,593,728 |
Accounts receivable | 2,546,810 | 2,337,515 | ||
Inventories | 3,561,326 | 3,488,752 | ||
Inter company receivable | 0 | 0 | ||
Other current assets | 1,208,931 | 1,286,225 | ||
Total current assets | 8,985,494 | 8,740,900 | ||
Property and equipment, net | 2,218,030 | 2,092,167 | ||
Goodwill and other intangible assets, net | 981,838 | 415,175 | ||
Other assets | 474,977 | 417,382 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 12,660,339 | 11,665,624 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 47,972 | 46,162 | ||
Accounts payable | 4,787,941 | 4,561,194 | ||
Accrued payroll | 401,000 | 339,739 | ||
Inter company payable | 0 | 0 | ||
Other current liabilities | 1,795,867 | 1,809,128 | ||
Total current liabilities | 7,032,780 | 6,756,223 | ||
Long term liabilities | 3,171,984 | 2,513,151 | ||
Flextronics International Ltd. shareholders’ equity (deficit) | 2,420,128 | 2,360,814 | ||
Noncontrolling interests | 35,447 | 35,436 | ||
Total shareholders’ equity | 2,455,575 | 2,396,250 | ||
Total liabilities and shareholders’ equity | 12,660,339 | 11,665,624 | ||
Reportable legal entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 517,631 | 608,971 | 470,139 | 638,714 |
Accounts receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Inter company receivable | 8,919,282 | 6,417,410 | ||
Other current assets | 3,749 | 8,143 | ||
Total current assets | 9,440,662 | 7,034,524 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 325 | 475 | ||
Other assets | 2,259,454 | 2,223,402 | ||
Investment in subsidiaries | 1,654,260 | 1,799,956 | ||
Total assets | 13,354,701 | 11,058,357 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 43,125 | 40,000 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll | 0 | 0 | ||
Inter company payable | 8,213,861 | 6,559,569 | ||
Other current liabilities | 30,642 | 30,553 | ||
Total current liabilities | 8,287,628 | 6,630,122 | ||
Long term liabilities | 2,646,945 | 2,067,421 | ||
Flextronics International Ltd. shareholders’ equity (deficit) | 2,420,128 | 2,360,814 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 2,420,128 | 2,360,814 | ||
Total liabilities and shareholders’ equity | 13,354,701 | 11,058,357 | ||
Reportable legal entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 226,469 | 168,272 | 321,665 | 210,462 |
Accounts receivable | 1,352,781 | 1,208,632 | ||
Inventories | 1,494,305 | 1,729,593 | ||
Inter company receivable | 5,578,552 | 4,759,062 | ||
Other current assets | 202,794 | 202,161 | ||
Total current assets | 8,854,901 | 8,067,720 | ||
Property and equipment, net | 506,394 | 471,052 | ||
Goodwill and other intangible assets, net | 62,580 | 64,831 | ||
Other assets | 198,711 | 155,172 | ||
Investment in subsidiaries | 2,412,432 | 1,681,521 | ||
Total assets | 12,035,018 | 10,440,296 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 941 | 917 | ||
Accounts payable | 1,514,042 | 1,758,305 | ||
Accrued payroll | 121,059 | 112,692 | ||
Inter company payable | 8,993,273 | 7,250,235 | ||
Other current liabilities | 855,909 | 845,156 | ||
Total current liabilities | 11,485,224 | 9,967,305 | ||
Long term liabilities | 2,109,106 | 2,102,483 | ||
Flextronics International Ltd. shareholders’ equity (deficit) | (1,559,312) | (1,629,492) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (1,559,312) | (1,629,492) | ||
Total liabilities and shareholders’ equity | 12,035,018 | 10,440,296 | ||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 924,327 | 851,165 | 722,548 | 744,552 |
Accounts receivable | 1,194,029 | 1,128,883 | ||
Inventories | 2,067,021 | 1,759,159 | ||
Inter company receivable | 12,359,980 | 10,099,057 | ||
Other current assets | 1,002,388 | 1,075,921 | ||
Total current assets | 17,547,745 | 14,914,185 | ||
Property and equipment, net | 1,711,636 | 1,621,115 | ||
Goodwill and other intangible assets, net | 918,933 | 349,869 | ||
Other assets | 2,139,936 | 2,131,523 | ||
Investment in subsidiaries | 16,883,121 | 16,641,212 | ||
Total assets | 39,201,371 | 35,657,904 | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 3,906 | 5,245 | ||
Accounts payable | 3,273,899 | 2,802,889 | ||
Accrued payroll | 279,941 | 227,047 | ||
Inter company payable | 9,650,680 | 7,465,725 | ||
Other current liabilities | 909,316 | 933,419 | ||
Total current liabilities | 14,117,742 | 11,434,325 | ||
Long term liabilities | 2,539,057 | 2,435,962 | ||
Flextronics International Ltd. shareholders’ equity (deficit) | 22,509,125 | 21,752,181 | ||
Noncontrolling interests | 35,447 | 35,436 | ||
Total shareholders’ equity | 22,544,572 | 21,787,617 | ||
Total liabilities and shareholders’ equity | 39,201,371 | 35,657,904 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Inter company receivable | (26,857,814) | (21,275,529) | ||
Other current assets | 0 | 0 | ||
Total current assets | (26,857,814) | (21,275,529) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other assets | (4,123,124) | (4,092,715) | ||
Investment in subsidiaries | (20,949,813) | (20,122,689) | ||
Total assets | (51,930,751) | (45,490,933) | ||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll | 0 | 0 | ||
Inter company payable | (26,857,814) | (21,275,529) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (26,857,814) | (21,275,529) | ||
Long term liabilities | (4,123,124) | (4,092,715) | ||
Flextronics International Ltd. shareholders’ equity (deficit) | (20,949,813) | (20,122,689) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (20,949,813) | (20,122,689) | ||
Total liabilities and shareholders’ equity | $ (51,930,751) | $ (45,490,933) |
SUPPLEMENTAL GUARANTOR AND NO63
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Condensed consolidating statements of operations | ||||
Net sales | $ 6,316,762 | $ 6,528,517 | $ 11,883,010 | $ 13,171,262 |
Cost of sales | 5,919,846 | 6,151,436 | 11,133,753 | 12,413,396 |
Gross profit | 396,916 | 377,081 | 749,257 | 757,866 |
Selling, general and administrative expenses | 216,796 | 204,590 | 426,181 | 413,867 |
Intangible amortization | 16,127 | 8,232 | 23,798 | 15,183 |
Interest and other, net | 23,713 | 9,922 | 40,382 | (15,450) |
Income before income taxes | 140,280 | 154,337 | 258,896 | 344,266 |
Provision for income taxes | 17,303 | 15,434 | 25,069 | 31,476 |
Equity in earnings in subsidiaries | 0 | 0 | 0 | 0 |
Net income | 122,977 | 138,903 | 233,827 | 312,790 |
Reportable legal entities | Parent | ||||
Condensed consolidating statements of operations | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Intangible amortization | 75 | 75 | 150 | 150 |
Interest and other, net | (132,637) | (68,309) | (398,020) | (51,777) |
Income before income taxes | 132,562 | 68,234 | 397,870 | 51,627 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in earnings in subsidiaries | (9,585) | 70,669 | (164,043) | 261,163 |
Net income | 122,977 | 138,903 | 233,827 | 312,790 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed consolidating statements of operations | ||||
Net sales | 4,482,213 | 4,732,749 | 8,528,598 | 9,537,544 |
Cost of sales | 4,141,254 | 4,403,702 | 7,785,313 | 8,859,138 |
Gross profit | 340,959 | 329,047 | 743,285 | 678,406 |
Selling, general and administrative expenses | 66,682 | 62,825 | 130,238 | 124,627 |
Intangible amortization | 960 | 834 | 1,921 | 1,687 |
Interest and other, net | 277,355 | 288,590 | 613,767 | 547,193 |
Income before income taxes | (4,038) | (23,202) | (2,641) | 4,899 |
Provision for income taxes | (5,658) | 8,142 | 3,441 | 14,789 |
Equity in earnings in subsidiaries | (33,969) | (50,729) | (52,516) | 13,647 |
Net income | (32,349) | (82,073) | (58,598) | 3,757 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed consolidating statements of operations | ||||
Net sales | 5,514,535 | 5,184,889 | 9,450,050 | 9,961,077 |
Cost of sales | 5,458,578 | 5,136,855 | 9,444,078 | 9,881,617 |
Gross profit | 55,957 | 48,034 | 5,972 | 79,460 |
Selling, general and administrative expenses | 150,114 | 141,765 | 295,943 | 289,240 |
Intangible amortization | 15,092 | 7,323 | 21,727 | 13,346 |
Interest and other, net | (121,005) | (210,359) | (175,365) | (510,866) |
Income before income taxes | 11,756 | 109,305 | (136,333) | 287,740 |
Provision for income taxes | 22,961 | 7,292 | 21,628 | 16,687 |
Equity in earnings in subsidiaries | 16,621 | 50,147 | 52,584 | 86,579 |
Net income | 5,416 | 152,160 | (105,377) | 357,632 |
Eliminations | ||||
Condensed consolidating statements of operations | ||||
Net sales | (3,679,986) | (3,389,121) | (6,095,638) | (6,327,359) |
Cost of sales | (3,679,986) | (3,389,121) | (6,095,638) | (6,327,359) |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Intangible amortization | 0 | 0 | 0 | 0 |
Interest and other, net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in earnings in subsidiaries | 26,933 | (70,087) | 163,975 | (361,389) |
Net income | $ 26,933 | $ (70,087) | $ 163,975 | $ (361,389) |
SUPPLEMENTAL GUARANTOR AND NO64
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2015 | Sep. 26, 2014 | Sep. 25, 2015 | Sep. 26, 2014 | |
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | $ 122,977 | $ 138,903 | $ 233,827 | $ 312,790 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (30,267) | (5,683) | (27,484) | (9,828) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (5,544) | (2,433) | 7,285 | 8,292 |
Comprehensive income | 87,166 | 130,787 | 213,628 | 311,254 |
Reportable legal entities | Parent | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | 122,977 | 138,903 | 233,827 | 312,790 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (30,267) | (5,683) | (27,484) | (9,828) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (5,544) | (2,433) | 7,285 | 8,292 |
Comprehensive income | 87,166 | 130,787 | 213,628 | 311,254 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | (32,349) | (82,073) | (58,598) | 3,757 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (33,696) | 77,712 | (57,186) | 93,662 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | 1,160 | (2,058) | 5,785 | (228) |
Comprehensive income | (64,885) | (6,419) | (109,999) | 97,191 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | 5,416 | 152,160 | (105,377) | 357,632 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | (30,633) | 65,611 | (51,530) | 71,337 |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | (5,544) | (2,433) | 7,285 | 8,292 |
Comprehensive income | (30,761) | 215,338 | (149,622) | 437,261 |
Eliminations | ||||
Condensed consolidating statements of comprehensive income (loss) | ||||
Net income (loss) | 26,933 | (70,087) | 163,975 | (361,389) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of zero tax | 64,329 | (143,323) | 108,716 | (164,999) |
Unrealized gain (loss) on derivative instruments and other, net of zero tax | 4,384 | 4,491 | (13,070) | (8,064) |
Comprehensive income | $ 95,646 | $ (208,919) | $ 259,621 | $ (534,452) |
SUPPLEMENTAL GUARANTOR AND NO65
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 5) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 25, 2015 | Sep. 26, 2014 | |
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | $ 661,995 | $ 306,245 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (294,018) | (138,395) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (641,913) | (38,082) |
Investing cash flows to affiliates | 0 | 0 |
Other investing activities, net | (10,516) | (28,855) |
Net cash used in investing activities | (946,447) | (205,332) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 595,553 | 11,387 |
Repayments of bank borrowings and long-term debt | (21,090) | (9,185) |
Payments for repurchases of ordinary shares | (241,978) | (206,771) |
Net proceeds from issuance of ordinary shares | 49,074 | 11,412 |
Financing cash flows from (to) affiliates | 0 | 0 |
Other financing activities, net | (37,872) | 3,382 |
Net cash provided by (used in) financing activities | 343,687 | (189,775) |
Effect of exchange rates on cash and cash equivalents | (19,216) | 9,486 |
Net increase (decrease) in cash and cash equivalents | 40,019 | (79,376) |
Cash and cash equivalents, beginning of period | 1,628,408 | 1,593,728 |
Cash and cash equivalents, end of period | 1,668,427 | 1,514,352 |
Reportable legal entities | Parent | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 389,949 | 24,949 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | 0 | 0 |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | 0 | 0 |
Investing cash flows to affiliates | (1,326,493) | (833,951) |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | (1,326,493) | (833,951) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 595,309 | 0 |
Repayments of bank borrowings and long-term debt | (17,507) | (6,250) |
Payments for repurchases of ordinary shares | (241,978) | (206,771) |
Net proceeds from issuance of ordinary shares | 49,074 | 11,412 |
Financing cash flows from (to) affiliates | 435,540 | 925,410 |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 820,438 | 723,801 |
Effect of exchange rates on cash and cash equivalents | 24,766 | (83,374) |
Net increase (decrease) in cash and cash equivalents | (91,340) | (168,575) |
Cash and cash equivalents, beginning of period | 608,971 | 638,714 |
Cash and cash equivalents, end of period | 517,631 | 470,139 |
Reportable legal entities | Guarantor Subsidiaries | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | (247,462) | (200,703) |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (88,699) | (73,455) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (559,442) | 0 |
Investing cash flows to affiliates | (836,415) | (924,184) |
Other investing activities, net | (22,822) | (6,134) |
Net cash used in investing activities | (1,507,378) | (1,003,773) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 209 | 0 |
Repayments of bank borrowings and long-term debt | (1,039) | (888) |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from (to) affiliates | 1,810,912 | 1,317,706 |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 1,810,082 | 1,316,818 |
Effect of exchange rates on cash and cash equivalents | 2,955 | (1,139) |
Net increase (decrease) in cash and cash equivalents | 58,197 | 111,203 |
Cash and cash equivalents, beginning of period | 168,272 | 210,462 |
Cash and cash equivalents, end of period | 226,469 | 321,665 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 519,508 | 481,999 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | (205,330) | (64,929) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | (82,471) | (38,082) |
Investing cash flows to affiliates | (1,193,747) | 255,111 |
Other investing activities, net | 12,306 | (22,721) |
Net cash used in investing activities | (1,469,242) | 129,379 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 35 | 11,387 |
Repayments of bank borrowings and long-term debt | (2,544) | (2,047) |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from (to) affiliates | 1,110,214 | (740,103) |
Other financing activities, net | (37,872) | 3,382 |
Net cash provided by (used in) financing activities | 1,069,833 | (727,381) |
Effect of exchange rates on cash and cash equivalents | (46,937) | 93,999 |
Net increase (decrease) in cash and cash equivalents | 73,162 | (22,004) |
Cash and cash equivalents, beginning of period | 851,165 | 744,552 |
Cash and cash equivalents, end of period | 924,327 | 722,548 |
Eliminations | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property and equipment, net of proceeds from disposal | 11 | (11) |
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business | 0 | 0 |
Investing cash flows to affiliates | 3,356,655 | 1,503,024 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 3,356,666 | 1,503,013 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings and long-term debt | 0 | 0 |
Repayments of bank borrowings and long-term debt | 0 | 0 |
Payments for repurchases of ordinary shares | 0 | 0 |
Net proceeds from issuance of ordinary shares | 0 | 0 |
Financing cash flows from (to) affiliates | (3,356,666) | (1,503,013) |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | (3,356,666) | (1,503,013) |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |