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SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)
 9 Months Ended
Dec. 31, 2016
SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS  
Schedule of condensed consolidating balance sheets
Condensed Consolidating Balance Sheets as of December 31, 2016
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
ASSETS
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
943,807

 
$
63,698

 
$
849,591

 
$
—

 
$
1,857,096

Accounts receivable
—

 
815,141

 
1,347,609

 
—

 
2,162,750

Inventories
—

 
1,521,272

 
1,972,345

 
—

 
3,493,617

Inter company receivable
10,504,971

 
7,802,175

 
14,601,712

 
(32,908,858
)
 
—

Other current assets
5,796

 
187,215

 
907,148

 
—

 
1,100,159

Total current assets
11,454,574

 
10,389,501

 
19,678,405

 
(32,908,858
)
 
8,613,622

Property and equipment, net
—

 
584,382

 
1,737,154

 
—

 
2,321,536

Goodwill and other intangible assets, net
1,214

 
85,894

 
1,250,213

 
—

 
1,337,321

Other assets
2,211,872

 
276,492

 
2,000,849

 
(3,958,643
)
 
530,570

Investment in subsidiaries
2,562,818

 
3,456,295

 
17,947,038

 
(23,966,151
)
 
—

Total assets
$
16,230,478

 
$
14,792,564

 
$
42,613,659

 
$
(60,833,652
)
 
$
12,803,049

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Bank borrowings and current portion of long-term debt
$
63,365

 
$
—

 
$
5,491

 
$
—

 
$
68,856

Accounts payable
—

 
1,734,186

 
2,965,548

 
—

 
4,699,734

Accrued payroll
—

 
99,464

 
258,458

 
—

 
357,922

Inter company payable
10,728,155

 
10,528,081

 
11,652,622

 
(32,908,858
)
 
—

Other current liabilities
28,349

 
785,866

 
937,030

 
—

 
1,751,245

Total current liabilities
10,819,869

 
13,147,597

 
15,819,149

 
(32,908,858
)
 
6,877,757

Long term liabilities
2,810,714

 
2,042,092

 
2,389,632

 
(3,958,643
)
 
3,283,795

Flex Ltd. shareholders’ equity (deficit)
2,599,895

 
(397,125
)
 
24,363,276

 
(23,966,151
)
 
2,599,895

Noncontrolling interests
—

 
—

 
41,602

 
—

 
41,602

Total shareholders’ equity (deficit)
2,599,895

 
(397,125
)
 
24,404,878

 
(23,966,151
)
 
2,641,497

Total liabilities and shareholders’ equity
$
16,230,478

 
$
14,792,564

 
$
42,613,659

 
$
(60,833,652
)
 
$
12,803,049



Condensed Consolidating Balance Sheets as of March 31, 2016
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
ASSETS
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
734,869

 
$
148,201

 
$
724,500

 
$
—

 
$
1,607,570

Accounts receivable
—

 
729,331

 
1,315,426

 
—

 
2,044,757

Inventories
—

 
1,482,410

 
2,009,246

 
—

 
3,491,656

Inter company receivable
9,105,728

 
5,568,392

 
12,404,722

 
(27,078,842
)
 
—

Other current assets
2,951

 
180,842

 
987,350

 
—

 
1,171,143

Total current assets
9,843,548

 
8,109,176

 
17,441,244

 
(27,078,842
)
 
8,315,126

Property and equipment, net
—

 
553,072

 
1,704,561

 
—

 
2,257,633

Goodwill and other intangible assets, net
175

 
60,895

 
1,284,750

 
—

 
1,345,820

Other assets
2,249,145

 
267,034

 
2,004,437

 
(4,054,214
)
 
466,402

Investment in subsidiaries
2,815,426

 
3,038,002

 
18,175,348

 
(24,028,776
)
 
—

Total assets
$
14,908,294

 
$
12,028,179

 
$
40,610,340

 
$
(55,161,832
)
 
$
12,384,981

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Bank borrowings and current portion of long-term debt
$
58,836

 
$
946

 
$
5,384

 
$
—

 
$
65,166

Accounts payable
—

 
1,401,835

 
2,846,457

 
—

 
4,248,292

Accrued payroll
—

 
114,509

 
239,038

 
—

 
353,547

Inter company payable
9,562,405

 
7,999,335

 
9,517,102

 
(27,078,842
)
 
—

Other current liabilities
33,008

 
869,470

 
1,002,722

 
—

 
1,905,200

Total current liabilities
9,654,249

 
10,386,095

 
13,610,703

 
(27,078,842
)
 
6,572,205

Long term liabilities
2,683,173

 
2,063,988

 
2,514,299

 
(4,054,214
)
 
3,207,246

Flex Ltd. shareholders’ equity (deficit)
2,570,872

 
(421,904
)
 
24,450,680

 
(24,028,776
)
 
2,570,872

Noncontrolling interests
—

 
—

 
34,658

 
—

 
34,658

Total shareholders’ equity (deficit)
2,570,872

 
(421,904
)
 
24,485,338

 
(24,028,776
)
 
2,605,530

Total liabilities and shareholders’ equity
$
14,908,294

 
$
12,028,179

 
$
40,610,340

 
$
(55,161,832
)
 
$
12,384,981
Schedule of condensed consolidating statements of operations
Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2016

 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net sales
$
—

 
$
12,008,455

 
$
13,981,899

 
$
(7,990,017
)
 
$
18,000,337

Cost of sales
—

 
10,822,629

 
14,031,584

 
(7,990,017
)
 
16,864,196

Gross profit (loss)
—

 
1,185,826

 
(49,685
)
 
—

 
1,136,141

Selling, general and administrative expenses
—

 
212,059

 
502,981

 
—

 
715,040

Intangible amortization
175

 
2,298

 
59,845

 
—

 
62,318

Interest and other, net
(561,290
)
 
1,322,198

 
(674,032
)
 
—

 
86,876

Income (loss) from continuing operations before income taxes
561,115

 
(350,729
)
 
61,521

 
—

 
271,907

Provision for (benefit from) income taxes
11

 
(947
)
 
40,153

 
—

 
39,217

Equity in earnings in subsidiaries
(328,414
)
 
(136,175
)
 
(69,935
)
 
534,524

 
—

Net income (loss)
$
232,690

 
$
(485,957
)
 
$
(48,567
)
 
$
534,524

 
$
232,690



Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2015

 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net sales
$
—

 
$
13,126,281

 
$
15,168,232

 
$
(9,648,326
)
 
$
18,646,187

Cost of sales
—

 
11,972,388

 
15,120,401

 
(9,648,326
)
 
17,444,463

Gross profit
—

 
1,153,893

 
47,831

 
—

 
1,201,724

Selling, general and administrative expenses
—

 
213,614

 
453,184

 
—

 
666,798

Intangible amortization
225

 
2,881

 
40,011

 
—

 
43,117

Interest and other, net
(347,663
)
 
929,730

 
(475,704
)
 
—

 
106,363

Income from continuing operations before income taxes
347,438

 
7,668

 
30,340

 
—

 
385,446

Provision for (benefit from) income taxes
—

 
(4,630
)
 
7,339

 
—

 
2,709

Equity in earnings in subsidiaries
35,299

 
(140,241
)
 
42,225

 
62,717

 
—

Net income (loss)
$
382,737

 
$
(127,943
)
 
$
65,226

 
$
62,717

 
$
382,737




Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2016
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net sales
$
—

 
$
4,186,855

 
$
4,453,753

 
$
(2,525,609
)
 
$
6,114,999

Cost of sales
—

 
3,722,516

 
4,501,637

 
(2,525,609
)
 
5,698,544

Gross profit (loss)
—

 
464,339

 
(47,884
)
 
—

 
416,455

Selling, general and administrative expenses
—

 
66,738

 
164,813

 
—

 
231,551

Intangible amortization
25

 
864

 
17,845

 
—

 
18,734

Interest and other, net
(370,703
)
 
662,422

 
(265,791
)
 
—

 
25,928

Income (loss) from continuing operations before income taxes
370,678

 
(265,685
)
 
35,249

 
—

 
140,242

Provision for (benefit from) income taxes
—

 
(4,018
)
 
14,791

 
—

 
10,773

Equity in earnings in subsidiaries
(241,209
)
 
(71,920
)
 
4,401

 
308,728

 
—

Net income (loss)
$
129,469

 
$
(333,587
)
 
$
24,859

 
$
308,728

 
$
129,469


 
Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2015
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net sales
$
—

 
$
4,597,684

 
$
5,718,182

 
$
(3,552,689
)
 
$
6,763,177

Cost of sales
—

 
4,187,076

 
5,676,323

 
(3,552,689
)
 
6,310,710

Gross profit
—

 
410,608

 
41,859

 
—

 
452,467

Selling, general and administrative expenses
—

 
83,346

 
157,271

 
—

 
240,617

Intangible amortization
75

 
960

 
18,284

 
—

 
19,319

Interest and other, net
49,358

 
316,345

 
(299,722
)
 
—

 
65,981

Income (loss) from continuing operations before income taxes
(49,433
)
 
9,957

 
166,026

 
—

 
126,550

Benefit from income taxes
—

 
(8,071
)
 
(14,289
)
 
—

 
(22,360
)
Equity in earnings in subsidiaries
198,343

 
(88,988
)
 
(10,534
)
 
(98,821
)
 
—

Net income (loss)
$
148,910

 
$
(70,960
)
 
$
169,781

 
$
(98,821
)
 
$
148,910
Schedule of condensed consolidating statements of comprehensive income (loss)
Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2016
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
129,469


$
(333,587
)

$
24,859


$
308,728


$
129,469

Other comprehensive income:
 

 
 

 
 

 
 

 
 

Foreign currency translation adjustments, net of zero tax
(36,412
)
 
58,791

 
35,660

 
(94,451
)
 
(36,412
)
Unrealized gain (loss) on derivative instruments and other, net of zero tax
(201
)
 
3,443

 
(201
)
 
(3,242
)
 
(201
)
Comprehensive income (loss)
$
92,856

 
$
(271,353
)
 
$
60,318

 
$
211,035

 
$
92,856


 
Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2015
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
148,910


$
(70,960
)

$
169,781


$
(98,821
)

$
148,910

Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Foreign currency translation adjustments, net of zero tax
30,063

 
62,209

 
50,828

 
(113,037
)
 
30,063

Unrealized gain on derivative instruments and other, net of zero tax
10,497

 
4,099

 
10,497

 
(14,596
)
 
10,497

Comprehensive income (loss)
$
189,470

 
$
(4,652
)
 
$
231,106

 
$
(226,454
)
 
$
189,470

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2016

 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
232,690

 
$
(485,957
)
 
$
(48,567
)
 
$
534,524

 
$
232,690

Other comprehensive income (loss):
0

 
 

 
 

 
 

 
 

Foreign currency translation adjustments, net of zero tax
(22,338
)
 
68,972

 
57,055

 
(126,027
)
 
(22,338
)
Unrealized gain (loss) on derivative instruments and other, net of zero tax
(912
)
 
6,942

 
(912
)
 
(6,030
)
 
(912
)
Comprehensive income (loss)
$
209,440

 
$
(410,043
)
 
$
7,576

 
$
402,467

 
$
209,440



Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2015

 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
382,737

 
$
(127,943
)
 
$
65,226

 
$
62,717

 
$
382,737

Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Foreign currency translation adjustments, net of zero tax
2,579

 
5,025

 
(703
)
 
(4,322
)
 
2,579

Unrealized gain on derivative instruments and other, net of zero tax
17,782

 
9,884

 
17,782

 
(27,666
)
 
17,782

Comprehensive income (loss)
$
403,098

 
$
(113,034
)
 
$
82,305

 
$
30,729

 
$
403,098
Schedule of condensed consolidating statements of cash flows
Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2016
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(In thousands)
Net cash provided by (used in) operating activities
$
520,709

 
$
(354,918
)
 
$
847,430

 
$
(33
)
 
$
1,013,188

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment, net of proceeds from disposal
—

 
(134,755
)
 
(250,812
)
 
27

 
(385,540
)
Acquisition of businesses, net of cash acquired
—

 
(73,469
)
 
(106,790
)
 
—

 
(180,259
)
Proceeds from divestiture of businesses, net of cash held in divested businesses
—

 
20,500

 
15,573

 
—

 
36,073

Investing cash flows to affiliates
(840,082
)
 
(3,334,220
)
 
(532,400
)
 
4,706,702

 
—

Other investing activities, net
(61,213
)
 
(7,823
)
 
19,332

 
—

 
(49,704
)
Net cash used in investing activities
(901,295
)
 
(3,529,767
)
 
(855,097
)
 
4,706,729

 
(579,430
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from bank borrowings and long-term debt
204,916

 
—

 
602

 
—

 
205,518

Repayments of bank borrowings, long-term debt and capital lease obligations
(106,547
)
 
(4,460
)
 
(4,082
)
 
—

 
(115,089
)
Payments for repurchases of ordinary shares
(259,658
)
 
—

 
—

 
—

 
(259,658
)
Net proceeds from issuance of ordinary shares
11,978

 
—

 
—

 
—

 
11,978

Financing cash flows from affiliates
790,398

 
3,813,276

 
103,022

 
(4,706,696
)
 
—

Other financing activities, net
30,000

 
(11,347
)
 
(65,955
)
 
—

 
(47,302
)
Net cash provided by financing activities
671,087

 
3,797,469

 
33,587

 
(4,706,696
)
 
(204,553
)
Effect of exchange rates on cash and cash equivalents
(81,563
)
 
2,713

 
99,171

 
—

 
20,321

Net increase (decrease) in cash and cash equivalents
208,938

 
(84,503
)
 
125,091

 
—

 
249,526

Cash and cash equivalents, beginning of period
734,869

 
148,201

 
724,500

 
—

 
1,607,570

Cash and cash equivalents, end of period
$
943,807

 
$
63,698

 
$
849,591

 
$
—

 
$
1,857,096


 
Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2015
 

 
Parent
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
 
(In thousands)
Net cash provided by (used in) operating activities
$
343,182

 
$
(93,746
)
 
$
690,336

 
$
—

 
$
939,772

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment, net of proceeds from disposal
—

 
(128,011
)
 
(285,928
)
 
5

 
(413,934
)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business
—

 
(809,233
)
 
(94,612
)
 
—

 
(903,845
)
Proceeds from divestiture of business, net of cash held in divested business
—

 
—

 
3,603

 
—

 
3,603

Investing cash flows to affiliates
(1,099,775
)
 
(923,812
)
 
(1,087,520
)
 
3,111,107

 
—

Other investing activities, net
(2,046
)
 
(23,270
)
 
26,713

 
—

 
1,397

Net cash used in investing activities
(1,101,821
)
 
(1,884,326
)
 
(1,437,744
)
 
3,111,112

 
(1,312,779
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from bank borrowings and long-term debt
695,309

 
—

 
60,375

 
—

 
755,684

Repayments of bank borrowings, long-term debt and capital lease obligations
(35,638
)
 
(1,333
)
 
(3,735
)
 
—

 
(40,706
)
Payments for repurchases of ordinary shares
(331,690
)
 
—

 
—

 
—

 
(331,690
)
Net proceeds from issuance of ordinary shares
52,950

 
—

 
—

 
—

 
52,950

Financing cash flows from affiliates
632,750

 
1,996,352

 
482,010

 
(3,111,112
)
 
—

Other financing activities, net
—

 
—

 
(49,742
)
 
—

 
(49,742
)
Net cash provided by financing activities
1,013,681

 
1,995,019

 
488,908

 
(3,111,112
)
 
386,496

Effect of exchange rates on cash and cash equivalents
4,101

 
2,143

 
(13,947
)
 
—

 
(7,703
)
Net decrease (increase) in cash and cash equivalents
259,143

 
19,090

 
(272,447
)
 
—

 
5,786

Cash and cash equivalents, beginning of period
608,971

 
168,272

 
851,165

 
—

 
1,628,408

Cash and cash equivalents, end of period
$
868,114

 
$
187,362

 
$
578,718

 
$
—

 
$
1,634,194