10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2011

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 0-7491

MOLEX INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware	36-2369491
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2222 Wellington Court, Lisle, Illinois 60532

(Address of principal executive offices)

Registrant’s telephone number, including area code: (630) 969-4550

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

On January 18, 2012, the following numbers of shares of the Company’s common stock were outstanding:

Common Stock	95,560,076
Class A Common Stock	80,389,577
Class B Common Stock	94,255

Molex Incorporated

INDEX

		Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
	Condensed Consolidated Balance Sheets as of December 31, 2011 and June 30, 2011		3
	Condensed Consolidated Statements of Income for the three and six months ended December 31, 2011 and 2010		4
	Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2011 and 2010		5
	Notes to Condensed Consolidated Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		27
Item 4.	Controls and Procedures		28
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		29
Item 6.	Exhibits		30
SIGNATURES			31
Section 302 Certification of Chief Executive Officer
Section 302 Certification of Chief Financial Officer
Section 906 Certification of Chief Executive Officer
Section 906 Certification of Chief Financial Officer

2

PART I

Item  1. Financial Statements

Molex Incorporated

Condensed Consolidated Balance Sheets

(in thousands)

	Dec. 31, 2011			June 30, 2011
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	607,336		$	532,599
Marketable securities		11,230			13,947
Accounts receivable, less allowances of $38,525 and $42,297 respectively		708,197			811,449
Inventories		552,264			535,953
Deferred income taxes		130,759			129,158
Other current assets		39,084			32,239
Total current assets		2,048,870			2,055,345
Property, plant and equipment, net		1,135,735			1,168,448
Goodwill		166,409			149,452
Non-current deferred income taxes		37,273			38,178
Other assets		181,831			186,429
Total assets	$	3,570,118		$	3,597,852
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and short-term borrowings	$	127,631		$	119,764
Accounts payable		317,103			359,812
Accrued expenses:
Accrual for unauthorized activities in Japan		188,601			182,460
Income taxes payable		27,672			2,383
Other		215,233			217,628
Total current liabilities		876,240			882,047
Other non-current liabilities		20,538			23,879
Accrued pension and postretirement benefits		93,056			100,866
Long-term debt		196,671			222,794
Total liabilities		1,186,505			1,229,586
Commitments and contingencies
Stockholders’ equity:
Common stock		11,319			11,285
Additional paid-in capital		690,572			674,494
Retained earnings		2,482,317			2,408,083
Treasury stock		(1,110,147	)		(1,106,039	)
Accumulated other comprehensive income		309,552			380,443
Total stockholders’ equity		2,383,613			2,368,266
Total liabilities and stockholders’ equity	$	3,570,118		$	3,597,852

See accompanying notes to condensed consolidated financial statements.

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Molex Incorporated

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except per share data)

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Net revenue	$	857,598		$	901,465		$	1,793,583		$	1,799,137
Cost of sales		594,661			630,420			1,237,918			1,253,016
Gross profit		262,937			271,045			555,665			546,121
Selling, general and administrative		163,073			159,044			332,298			316,100
Unauthorized activities in Japan		2,723			2,713			5,645			8,255
Total operating expenses		165,796			161,757			337,943			324,355
Income from operations		97,141			109,288			217,722			221,766
Interest (expense) income, net		(2,094	)		(1,788	)		(3,485	)		(3,123	)
Other income		1,482			4,792			1,758			4,441
Total other (expense) income, net		(612	)		3,004			(1,727	)		1,318
Income before income taxes		96,529			112,292			215,995			223,084
Income taxes		32,513			34,009			71,462			69,697
Net income	$	64,016		$	78,283		$	144,533		$	153,387
Earnings per share:
Basic	$	0.36		$	0.45		$	0.82		$	0.88
Diluted	$	0.36		$	0.45		$	0.82		$	0.88
Dividends declared per share	$	0.2000		$	0.1750		$	0.4000		$	0.3275
Average common shares outstanding:
Basic		175,830			174,664			175,656			174,510
Diluted		176,985			175,556			176,778			175,329

See accompanying notes to condensed consolidated financial statements.

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Molex Incorporated

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Six Months Ended December 31,
	2011			2010
Operating activities:
Net income	$	144,533		$	153,387
Add non-cash items included in net income:
Depreciation and amortization		121,174			120,804
Share-based compensation		11,402			11,460
Other non-cash items		5,213			7,275
Changes in assets and liabilities:
Accounts receivable		94,400			3,221
Inventories		(26,442	)		(67,631	)
Accounts payable		(40,976	)		(36,945	)
Other current assets and liabilities		(7,183	)		(11,280	)
Other assets and liabilities		(10,608	)		2,184
Cash provided from operating activities		291,513			182,475
Investing activities:
Capital expenditures		(95,055	)		(132,728	)
Acquisitions		(24,000	)		—
Proceeds from sales of property, plant and equipment		2,202			1,400
Proceeds from sales or maturities of marketable securities		6,553			5,203
Purchases of marketable securities		(4,787	)		(3,612	)
Cash used for investing activities		(115,087	)		(129,737	)
Financing activities:
Proceeds from revolving credit facility		75,000			50,000
Payments on revolving credit facility		(220,000	)		(15,000	)
Payments on short-term loans		(27,389	)		(11,479	)
Proceeds from issuance of long-term debt		150,000			—
Payments of long-term debt		(287	)		(24,572	)
Cash dividends paid		(70,186	)		(53,186	)
Exercise of stock options		2,630			1,820
Other financing activities		(2,087	)		(1,954	)
Cash used for financing activities		(92,319	)		(54,371	)
Effect of exchange rate changes on cash		(9,370	)		17,671
Net increase in cash and cash equivalents		74,737			16,038
Cash and cash equivalents, beginning of period		532,599			376,352
Cash and cash equivalents, end of period	$	607,336		$	392,390

See accompanying notes to condensed consolidated financial statements.

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Molex Incorporated

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation

Molex Incorporated (together with its subsidiaries, except where the context otherwise requires, “we,” “us,” and “our”) manufactures electronic components, including electrical and fiber optic interconnection products and systems, switches and integrated products in 40 manufacturing locations in 16 countries.

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring accruals considered necessary for a fair statement of results for the interim period have been included. Operating results for the three and six months ended December 31, 2011 are not necessarily an indication of the results that may be expected for the year ending June 30, 2012. The Condensed Consolidated Balance Sheet as of June 30, 2011 was derived from our audited consolidated financial statements for the year ended June 30, 2011. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2011.

The preparation of the unaudited financial statements in conformity with GAAP requires the use of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and related disclosures. Significant estimates and assumptions are used in the estimation of income taxes, pension and retiree health care benefit obligations, stock options, accrual for unauthorized activities in Japan, allowances for accounts receivable and inventory and impairment reviews for goodwill, intangible and other long-lived assets. Estimates are revised periodically. Actual results could differ from these estimates. Material subsequent events are evaluated and disclosed through the report issuance date.

2. Unauthorized Activities in Japan

As previously reported in our Annual Report on Form 10-K for the year ended June 30, 2011, we investigated unauthorized activities at Molex Japan Ltd. Based on the results of the completed investigation, we recorded an accrued liability of $165.8 million for accounting purposes for the effect of unauthorized activities pending the resolution of the legal proceedings reported in Note 14.

We believe these unauthorized activities and related losses occurred from at least as early as 1988 through 2010. The accrued liability for these unauthorized activities was $188.6 million as of December 31, 2011, including $22.8 million in cumulative foreign currency translation, which was recorded as a component of other comprehensive income. To the extent we prevail in not having to pay all or any portion of the unauthorized loans ($165.8 million), we would recognize a gain. In addition, we have a contingent liability of $45.9 million for other loan-related expenses, interest expense and delay damages on the outstanding unauthorized loans.

3. Restructuring Costs and Asset Impairments

On June 30, 2010 we completed a multi-year restructuring plan designed to reduce costs and to improve return on invested capital in connection with a new global organization that was effective July 1, 2007. A majority of the plan related to facilities located in North America, Europe and Japan and, in general, the movement of manufacturing activities from these plants to lower-cost facilities.

6

Changes in the restructuring accrual balance are summarized as follows (in thousands):

Balance at June 30, 2011	$	14,049
Cash payments		(752	)
Non-cash related costs		(569	)
Balance at September 30, 2011	$	12,728
Cash payments		(806	)
Non-cash related costs		(353	)
Balance at December 31, 2011	$	11,569

4. Acquisitions

During the second quarter of fiscal 2012, we completed an asset purchase of a specialty wire and cable company for $24.0 million and recorded goodwill of $18.0 million. The purchase price allocation for this acquisition is preliminary and subject to revision as more detailed analysis is completed and additional information about the fair value of assets and liabilities becomes available.

During the third quarter of fiscal 2011, we completed an asset acquisition of an active optical cable business for $24.6 million and recorded goodwill of $14.6 million. The purchase price includes contingent consideration up to $5.8 million payable through fiscal 2013 upon the seller meeting certain criteria. The purchase price allocation for this acquisition is complete.

5. Earnings Per Share

A reconciliation of the basic average common shares outstanding to diluted average common shares outstanding is as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Net income	$	64,016	$	78,283	$	144,533	$	153,387
Basic average common shares outstanding		175,830		174,664		175,656		174,510
Effect of dilutive stock options		1,155		892		1,122		819
Diluted weighted average common shares outstanding		176,985		175,556		176,778		175,329
Earnings per share:
Basic	$	0.36	$	0.45	$	0.82	$	0.88
Diluted	$	0.36	$	0.45	$	0.82	$	0.88

Excluded from the computations above were anti-dilutive shares of 5.1 million and 5.8 million for the three and six months ended December 31, 2011, respectively, compared with 7.4 million and 6.4 million for the same prior year periods.

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6. Comprehensive Income

Total comprehensive income is summarized as follows (in thousands):

	Three Months Ended December 31,					Six Months Ended December 31,
	2011			2010		2011			2010
Net income	$	64,016		$	78,283	$	144,533		$	153,387
Translation adjustments		(7,551	)		14,045		(66,275	)		86,011
Pension liability remeasurement		—			11,824		—			11,824
Unrealized investment (loss) gain		(3,492	)		2,452		(4,616	)		790
Total comprehensive income	$	52,973		$	106,604	$	73,642		$	252,012

7. Inventories

Inventories are valued at the lower of first-in, first-out cost or market. Inventories, net of allowances, consist of the following (in thousands):

	Dec. 31, 2011		June 30, 2011
Raw materials	$	98,076	$	91,362
Work in process		152,185		143,888
Finished goods		302,003		300,703
Total inventories	$	552,264	$	535,953

8. Pensions and Other Postretirement Benefits

The components of pension benefit cost are as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Service cost	$	1,381		$	451		$	2,762		$	2,648
Interest cost		2,123			487			4,246			2,454
Expected return on plan assets		(2,166	)		(472	)		(4,332	)		(2,284	)
Amortization of prior service cost		65			13			130			66
Recognized actuarial losses		290			893			580			1,786
Amortization of transition obligation		10			9			20			18
Benefit cost	$	1,703		$	1,381		$	3,406		$	4,688

The components of retiree health care benefit cost are as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Service cost	$	274		$	342		$	548		$	684
Interest cost		586			617			1,172			1,234
Amortization of prior service cost		(516	)		(516	)		(1,032	)		(1,032	)
Recognized actuarial losses		82			333			164			666
Benefit cost	$	426		$	776		$	852		$	1,552

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9. Debt

Total debt consisted of the following (in thousands):

	Average Interest Rate	Maturity	December 31, 2011		June 30, 2011
Long-term debt:
Private Placement	2.91 – 4.28%	2016 – 2021	$	150,000	$	—
U.S. Credit Facility	1.77%	2016		40,000		185,000
Unsecured bonds and term loans	1.31 – 1.65%	2012 – 2013		65,394		89,342
Other debt	Varies	2012 – 2013		1,331		1,528
Total long-term debt				256,725		275,870
Less current portion of long-term debt:
Unsecured bonds and term loans	1.31 – 1.65%			59,043		52,156
Other debt	Varies			1,011		920
Long-term debt, less current portion				196,671		222,794
Short-term borrowings
Overdraft loan	2.48%	2012		64,150		62,060
Other short-term borrowings	Varies			3,427		4,628
Total short-term borrowings				67,577		66,688
Total debt			$	324,302	$	342,558

On August 18, 2011, we issued senior notes totaling $150.0 million through an unregistered, private placement of debt (the Private Placement). The Private Placement consists of three $50.0 million series notes: Series A with an interest rate of 2.91% matures on August 18, 2016; Series B with an interest rate of 3.59% matures on August 18, 2018; and Series C with an interest rate of 4.28% matures on August 18, 2021. The Note Purchase Agreement contains customary covenants regarding liens, debt, substantial asset sales and mergers. The Note Purchase Agreement also requires us to maintain financial covenants pertaining to, among other things, our consolidated leverage and interest rate coverage. As of December 31, 2011, we were in compliance with these covenants and the balance of the senior notes was $150.0 million.

In June 2009, we entered into a $195.0 million unsecured, three-year revolving credit facility in the United States, amended in January 2010, September 2010 and March 2011, that was initially scheduled to mature in June 2012 (the U.S. Credit Facility). In connection with the September 2010 amendment, we increased the credit line on the U.S. Credit Facility to $270.0 million. In March 2011, we further amended the credit facility to increase the credit line to $350.0 million and extend the term to March 2016. Borrowings under the U.S. Credit Facility bear interest at a fluctuating interest rate (based on London InterBank Offered Rate) plus an applicable percentage based on our consolidated leverage. The applicable percentage was 150 basis points as of December 31, 2011. The Credit Agreement contains customary covenants regarding liens, debt, substantial asset sales and mergers, dividends and investments. The Credit Agreement also requires us to maintain financial covenants pertaining to, among other things, our consolidated leverage and fixed charge coverage. As of December 31, 2011, we were in compliance with these covenants and had outstanding borrowings of $40.0 million.

In September 2011, Molex Japan renewed a ¥5.0 billion overdraft loan, with a six month term and an interest rate of approximately 2.48%. At December 31, 2011, the balance of the overdraft loan, which requires full repayment by the end of the term if not renewed, approximated $64.2 million.

In March 2010, Molex Japan entered into a ¥3.0 billion syndicated term loan for three years, with interest rates equivalent to the six month Tokyo Interbank Offered Rate plus 75 basis points and scheduled principal payments of ¥0.5 billion every six months. At December 31, 2011, the balance of the syndicated term loan approximated $19.2 million, of which $12.9 million was current.

In September 2009, Molex Japan issued unsecured bonds totaling ¥10.0 billion with a term of three years, an interest rate of approximately 1.65% and scheduled principal payments of ¥1.6 billion every six months. At December 31, 2011, the outstanding balance of the unsecured bonds approximated $46.2 million which is classified as current.

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Certain assets, including equipment, secure a portion of our long-term debt. Principal payments on long-term debt obligations are due in the following calendar years (in thousands):

2012	$	60,054
2013		6,671
2014		—
2015		—
2016		90,000
Thereafter		100,000
Total long-term debt obligations	$	256,725

We had available lines of credit totaling $405.7 million at December 31, 2011, including a $350.0 million unsecured, five-year revolving credit facility with $310.0 million available as of December 31, 2011. The lines of credit expire between 2012 and 2021.

10. Income Taxes

The effective tax rate was 33.7% for the three months ended December 31, 2011 and 30.3% for the three months ended December 31, 2010. During the three months ended December 31, 2011, we recorded a one-time charge for additional income tax expense of $2.7 million. This charge reflects the cumulative effect of a reduction in future tax benefits from deferred tax assets in Japan resulting from the decrease in the Japanese statutory corporate tax rate. The reduction in the Japanese statutory tax rate was enacted in November 2011.

We are subject to tax in U.S. Federal, state and foreign tax jurisdictions. We have substantially completed all U.S. federal income tax matters for tax years through 2007. The tax years 2008 and after remain open to examination by all major taxing jurisdictions to which we are subject.

It is our practice to recognize interest and penalties related to income tax matters in tax expense. As of December 31, 2011, there were no material interest or penalty amounts to accrue.

11. Fair Value Measurements

The following table summarizes our financial assets and liabilities as of December 31, 2011, which are measured at fair value on a recurring basis (in thousands):

	Total Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale and trading securities	$	23,325	$	23,325	$	—	$	—
Derivative financial instruments, net		5,896		—		5,896		—

We determine the fair value of our marketable and available for sale securities based on quoted market prices (Level 1). We generally use derivatives for hedging purposes, which are valued based on Level 2 inputs in the fair value hierarchy. The fair value of our financial instruments is determined by a mark-to-market valuation based on forward curves using observable market prices.

The carrying value of our long-term debt approximates fair value.

12. Derivative Instruments and Hedging Activities

We use derivative instruments to manage our foreign exchange and commodity cost exposures. All derivative instruments are recognized at fair value in other current assets or liabilities.

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Derivatives Not Designated as Hedging Instruments

We use one-month foreign currency forward contracts (forward contracts) to offset the impact of exchange rate volatility on certain assets and liabilities, including intercompany receivables and payables denominated in non-functional currencies. These forward contracts have not been designated as hedges, and the gains or losses on these forward contracts, along with the offsetting losses or gains due to the fluctuation of exchange rates on the underlying foreign currency denominated assets and liabilities, are recognized in other income (expense). The notional amounts of the forward contracts were $232.9 million and $175.6 million at December 31, 2011 and June 30, 2011, respectively, with corresponding fair values of a $0.9 million asset at December 31, 2011 and a $2.7 million asset at June 30, 2011.

Cash Flow Hedges

We use derivatives in the form of call options to hedge the variability of gold and copper costs. These derivative instruments are designated as cash flow hedges and hedge approximately 60% of our planned gold and copper purchases. Gains and losses of the effective hedges are recorded as a component of accumulated other comprehensive income and reclassified to cost of sales during the period the product containing the commodity is sold. The fair values of the call options were $6.2 million and $7.8 million at December 31, 2011 and June 30, 2011, respectively. These call options have maturities of 12 months or less.

For the three and six months ended December 31, 2011 and 2010, the impact to accumulated other comprehensive income (AOCI) and earnings from cash flow hedges follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Unrealized (loss) gain recognized in AOCI		(6,089	)		4,795			(4,587	)		4,073
Gain (loss) reclassified into earnings		3,564			(132	)		5,409			2,004

At December 31, 2011, $6.1 million is expected to be reclassified from AOCI to cost of sales within the next 12 months.

13. New Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (the FASB) issued updated guidance on the periodic testing of goodwill for impairment. This guidance will allow companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This new guidance is effective for us beginning July 1, 2012, with early adoption permitted. This new guidance will not have a material impact on our consolidated financial statements.

In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220). This new guidance requires the components of net income and other comprehensive income to be either presented in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. This new guidance eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for us for the quarter ended September 30, 2012 and will amend our presentation of the components of comprehensive income.

14. Contingencies

We are currently a party to various legal proceedings, claims and investigations including those disclosed in this note. While management presently believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially adversely impact our financial position or overall trends in operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. If unfavorable final outcomes were to occur, then there exists the possibility of a material adverse impact.

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Employment and Benefits Litigation

In 2009, Molex Automotive SARL (MAS), decided to close a facility it operated in Villemur-sur-Tarn, France. MAS submitted a social plan to MAS’s labor representatives providing for payments to approximately 280 terminated employees. This social plan was adopted by MAS in 2009 and payments were made to those employees until September 2010. In September 2010, former employees of MAS who were covered under the social plan filed suit against MAS and AGS (a state fund for wage guarantee) in the Toulouse Labor Court, requesting additional compensation. The total amount sought by the former employees is approximately €24.0 million ($31.1 million). Molex International initiated liquidation of MAS, and pursuant to a court proceeding, a liquidator was appointed in November 2010. One of the liquidator’s responsibilities is to assess and respond to the lawsuits involving MAS. In June 2011, the former employees of MAS noticed Molex Incorporated (Molex) as a defendant to the Toulouse Labor Court proceedings. In their court submission, the former employees claim that Molex was a co-employer of the former employees and thus jointly liable for any additional compensation the court awards. The former employees also claim that there was no economic justification for their dismissal, that MAS decided to close the facility before it consulted with the employees and their representatives and that MAS did not adequately comply with its obligation to assist the terminated employees in obtaining alternative employment. The liquidator has filed a submission on behalf of MAS and argues that the dismissal was economically justified, that the former employees have not proven the damages they are seeking but nonetheless Molex was co-employer and thus liable for any additional payments that may be awarded to the former employees. AGS filed its submission, adopting essentially the same substantive position as the liquidator on the dismissal of the former employees but arguing that Molex was the employer.

Molex filed its briefs in reply on January 6, 2012 arguing the plaintiff’s claims be dismissed. In the reply briefs, Molex argued it was not the co-employer of the plaintiffs and the court should find that it lacks jurisdiction over Molex to hear the dispute. In the alternative, Molex argued there was no breach of the information consultation process with the employees and their representatives, the dismissals were valid and based on economic grounds, MAS complied with its redeployment obligations and the court dismiss the claims for damages. Molex also argued if the court were to award compensation, then any judgment against Molex be several but not jointly with MAS, and the amount awarded to plaintiffs not exceed six months’ salary, approximately €2.0 million ($2.6 million). The Toulouse Labor Court has scheduled two hearings, one on March 5, 2012 for employees who fall within the executives section and another on April 5, 2012 for all other employees. We intend to vigorously contest the attempt by the former employees to seek additional compensation from Molex.

Molex Japan Co., Ltd

As we previously reported in our fiscal 2010 Annual Report on Form 10-K, we launched an investigation into unauthorized activities at Molex Japan Co., Ltd. in April 2010. We learned that an individual working in Molex Japan’s finance group obtained unauthorized loans from third party lenders, that included in at least one instance the attempted unauthorized pledge of Molex Japan facilities as security, in Molex Japan’s name that were used to cover losses resulting from unauthorized trading, including margin trading, in Molex Japan’s name. We also learned that the individual misappropriated funds from Molex Japan’s accounts to cover losses from unauthorized trading. The individual admitted to forging documentation in arranging and concealing the transactions. We retained outside legal counsel, and they retained forensic accountants, to investigate the matter. The investigation has been completed.

On August 31, 2010, Mizuho Bank (Mizuho), which holds the unauthorized loans, filed a complaint in Tokyo District Court requesting the court to find Molex Japan liable for the payment of the outstanding unauthorized loans and to enter a judgment for such payment. Mizuho is claiming payment of outstanding principal borrowings of ¥3 billion ($38.5 million), ¥5 billion ($64.2 million), ¥5 billion ($64.2 million) and ¥2 billion ($25.7 million), other loan-related expenses of approximately ¥106 million ($1.4 million) and interest and delay damages of approximately ¥3.5 billion ($44.5 million) as of December 31, 2011. On October 13, 2010, Molex Japan filed a written answer requesting the court to dismiss the complaint and subsequently both parties have submitted additional briefs to the court. In addition, the parties have begun to submit witness statements. The next court hearing is scheduled for February 29, 2012. We intend to vigorously contest the enforceability of the outstanding unauthorized loans and any attempt by the lender to obtain payment. See Note 2 for accounting treatment of the accrual for unauthorized activities in Japan.

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As we reported on April 29, 2011, the Securities and Exchange Commission (the SEC) has informed us that the SEC has issued a formal order of private investigation in connection with the activities in Molex Japan. We are fully cooperating with the SEC’s investigation.

15. Segments and Related Information

Our reportable segments consist of the Connector and Custom & Electrical segments:

• The Connector segment designs and manufactures products for high-speed, high-density, high signal-integrity applications as well as fine-pitch, low-profile connectors for the consumer and commercial markets. It also designs and manufactures products that withstand environments such as heat, cold, dust, dirt, liquid and vibration for automotive and other transportation applications.

• The Custom & Electrical segment designs and manufactures integrated and customizable electronic components, including connectors, across all industries that provide original, differentiated solutions to customer requirements. It also leverages expertise in the use of signal, power and interface technology in industrial automation and other harsh environment applications.

Information by segment is summarized as follows (in thousands):

	Connector		Custom & Electrical		Corporate & Other			Total
For the three months ended:
December 31, 2011:
Revenues from external customers	$	602,885	$	254,713	$	—		$	857,598
Income (loss) from operations		77,351		47,597		(27,807	)		97,141
Depreciation & amortization		49,333		6,753		3,847			59,933
Capital expenditures		43,673		4,235		4,343			52,251
December 31, 2010:
Revenues from external customers	$	665,230	$	236,046	$	189		$	901,465
Income (loss) from operations		105,915		32,005		(28,632	)		109,288
Depreciation & amortization		50,669		6,886		4,141			61,696
Capital expenditures		58,229		1,526		1,781			61,536
For the six months ended:
December 31, 2011:
Revenues from external customers	$	1,281,665	$	511,507	$	411		$	1,793,583
Income (loss) from operations		183,613		89,505		(55,396	)		217,722
Depreciation & amortization		99,408		13,880		7,886			121,174
Capital expenditures		78,375		11,149		5,531			95,055
December 31, 2010:
Revenues from external customers	$	1,326,366	$	472,077	$	694		$	1,799,137
Income (loss) from operations		204,562		74,571		(57,367	)		221,766
Depreciation & amortization		98,205		14,409		8,190			120,804
Capital expenditures		116,985		8,780		6,963			132,728

Corporate & Other includes expenses primarily related to corporate operations that are not allocated to segments such as executive management, human resources, legal, finance and information technology. We also include in Corporate & Other the investigative and legal costs related to the unauthorized activities in Japan and the assets of certain plants that are not specific to a particular division.

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Segment assets, which are comprised of accounts receivable, inventory and fixed assets, are summarized as follows (in thousands):

	Connector		Custom & Electrical		Corporate & Other		Total
December 31, 2011	$	1,818,260	$	468,381	$	109,555	$	2,396,196
June 30, 2011		1,913,675		503,443		98,732		2,515,850

The reconciliation of segment assets to consolidated total assets is as follows (in thousands):

	Dec. 31, 2011		June 30, 2011
Segment assets	$	2,396,196	$	2,515,850
Other current assets		788,409		707,943
Other non-current assets		385,513		374,059
Consolidated total assets	$	3,570,118	$	3,597,852

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Molex Incorporated

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless otherwise indicated or the content otherwise requires, the terms “we,” “us” and “our” and other similar terms in this Quarterly Report on Form 10-Q refer to Molex Incorporated and its subsidiaries.

The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and accompanying notes contained herein and our consolidated financial statements and accompanying notes and management’s discussion and analysis of results of operations and financial condition contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2011. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those described below under the heading “Cautionary Statement Regarding Forward-Looking Information.”

Overview

Our core business is the manufacture and sale of electromechanical components. Our products are used by a large number of leading original equipment manufacturers (OEMs) throughout the world. We design, manufacture and sell more than 100,000 products including terminals, connectors, planar cables, cable assemblies, interconnection systems, backplanes, integrated products and mechanical and electronic switches in 40 manufacturing locations in 16 countries. We also provide manufacturing services to integrate specific components into a customer’s product.

We have two global product segments: Connector and Custom & Electrical.

• The Connector segment manufactures and sells products for high-speed, high-density, high signal-integrity applications as well as fine-pitch, low-profile connectors for the consumer and commercial markets. It also designs and manufactures products that withstand environments such as heat, cold, dust, dirt, liquid and vibration for automotive and other transportation applications.

• The Custom & Electrical segment designs and manufactures integrated and customizable electronic components across all industries that provide original, differentiated solutions to customer requirements. It also leverages expertise in the use of signal, power and interface technology in industrial automation and other harsh environment applications.

Net revenue decreased during the three months ended December 31, 2011 compared with the prior year period primarily due to slower customer demand caused by uncertainties in the global economy, particularly in the industrial and consumer markets, and the impact of supply chain disruptions from the floods in Thailand, which occurred during October and November 2011. Net revenue for the six months ended December 31, 2011 was consistent with the prior year period as strong demand in the infotech and automotive markets during the first quarter partially offset the slower demand during the second quarter. Despite the lower net revenue, gross margins improved during the three and six months ended December 31, 2011 due to a favorable mix of product sales. We increased prices during the six months ended December 31, 2011 to partially offset rising material costs, which also improved gross margins compared with the prior year period. Despite the gross margin improvements and specific cost control efforts, income from operations decreased during the three and six months ended December 31, 2011 based on the lower net revenue compared with the prior year periods.

The markets in which we compete are highly competitive. Our financial results may be influenced by the following factors: our ability to successfully execute our business strategy; competition for customers; raw material prices; product and price competition; economic conditions in various geographic regions; foreign currency exchange rates; interest rates; changes in technology; fluctuations in customer demand; patent and intellectual property issues; availability of credit and general market liquidity; natural disasters; litigation results; investigations and legal proceedings and regulatory developments. Our ability to execute our business strategy successfully will require that we meet a number of challenges, including our ability to accurately forecast sales demand and calibrate manufacturing to such demand, manage volatile raw material costs, develop, manufacture and successfully market

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new and enhanced products and product lines, control operating costs and attract, motivate and retain key personnel to manage our operational, financial and management information systems. Our sales are also dependent on end markets impacted by consumer, industrial and infrastructure spending, and our operating results can be adversely affected by reduced demand in those end markets.

Unauthorized Activities in Japan

As previously reported in our Annual Report on Form 10-K for the year ended June 30, 2011, we investigated unauthorized activities at Molex Japan Ltd. Based on the results of the completed investigation, we recorded an accrued liability of $165.8 million for accounting purposes for the effect of unauthorized activities pending the resolution of the legal proceedings reported in Note 14 of the Notes to the Condensed Consolidated Financial Statements.

We believe these unauthorized activities and related losses occurred from at least as early as 1988 through 2010. The accrued liability for these unauthorized activities was $188.6 million as of December 31, 2011, including $22.8 million in cumulative foreign currency translation, which was recorded as a component of other comprehensive income. To the extent we prevail in not having to pay all or any portion of the unauthorized loans ($165.8 million), we would recognize a gain. In addition, we have a contingent liability of $45.9 million for other loan-related expenses, interest expense and delay damages on the outstanding unauthorized loans.

Critical Accounting Policies and Estimates

This discussion and analysis of financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States. The preparation of these financial statements requires the use of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and related disclosures. In preparing these financial statements, we have made our best estimates and judgments of certain amounts included in the financial statements. Estimates are revised periodically. Actual results could differ from these estimates.

The information concerning our critical accounting policies can be found under Management’s Discussion of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended June 30, 2011 filed with the Securities and Exchange Commission, which is incorporated by reference in this Form 10-Q.

Results of Operations

The following table sets forth consolidated statements of income data as a percentage of net revenue for the three months ended December 31 (in thousands):

	2011			Percentage of Revenue			2010		Percentage of Revenue
Net revenue	$	857,598			100.0	%	$	901,465		100.0	%
Cost of sales		594,661			69.3	%		630,420		69.9	%
Gross profit		262,937			30.7	%		271,045		30.1	%
Selling, general & administrative		163,073			19.0	%		159,044		17.6	%
Unauthorized activities in Japan		2,723			0.4	%		2,713		0.4	%
Income from operations		97,141			11.3	%		109,288		12.1	%
Other (expense) income, net		(612	)		0.0	%		3,004		0.4	%
Income before income taxes		96,529			11.3	%		112,292		12.5	%
Income taxes		32,513			3.8	%		34,009		3.8	%
Net income	$	64,016			7.5	%	$	78,283		8.7	%

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The following table sets forth consolidated statements of income data as a percentage of net revenue for the six months ended December 31 (in thousands):

	2011			Percentage of Revenue			2010		Percentage of Revenue
Net revenue	$	1,793,583			100.0	%	$	1,799,137		100.0	%
Cost of sales		1,237,918			69.0	%		1,253,016		69.6	%
Gross profit		555,665			31.0	%		546,121		30.4	%
Selling, general & administrative		332,298			18.5	%		316,100		17.6	%
Unauthorized activities in Japan		5,645			0.4	%		8,255		0.5	%
Income from operations		217,722			12.1	%		221,766		12.3	%
Other (expense) income, net		(1,727	)		(0.1	%)		1,318		0.1	%
Income before income taxes		215,995			12.0	%		223,084		12.4	%
Income taxes		71,462			4.0	%		69,697		3.9	%
Net income	$	144,533			8.0	%	$	153,387		8.5	%

Net Revenue

We sell our products in five primary markets. Our connectors, interconnecting devices and assemblies are used principally in the telecommunications, infotech, consumer, industrial and automotive markets. Our products are used in a wide range of applications including notebook computers, computer peripheral equipment, mobile products such as smartphones and tablets, digital electronics such as cameras and flat panel display televisions, automobile engine control units and adaptive braking systems, factory robotics and diagnostic equipment.

Net revenue during the second quarter of fiscal 2012 declined as global economic uncertainty affected end demand and our customers managed inventory lower. Our consumer and infotech markets were impacted more than our other markets by the disruption from the floods in Thailand, which occurred in October and November 2011. The increase (decrease) in net revenue from each market during the second quarter of fiscal 2012 compared with the second quarter of fiscal 2011 (comparable quarter) and the first quarter of fiscal 2012 (sequential quarter) follows:

	Comparable Quarter			Sequential Quarter
Telecommunications		(5	)%		2	%
Infotech		3			(14	)
Consumer		(11	)		(14	)
Industrial		(14	)		(12	)
Automotive		1			(6	)

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Telecommunications market net revenue decreased against the comparable quarter due to decreases in demand for certain mobile products partially offset by increased infrastructure spending on networking. Telecommunications market net revenue increased against the sequential quarter as improvements in infrastructure spending offset the slightly weaker demand for mobile products.

Infotech market net revenue increased against the comparable quarter primarily due to increased content and demand for tablet devices and servers. Infotech market net revenue decreased against the sequential quarter as the strong demand from the first quarter weakened due to global economic uncertainty and the supply chain disruptions caused by the floods in Thailand.

Consumer market net revenue decreased against both the comparable and sequential quarters due to global economic uncertainty and the supply chain disruptions caused by the floods in Thailand, which affected the consumer market net revenue during the second quarter. The decrease against the comparable quarter was primarily due to lower demand in home entertainment, partially offset by increased demand in gaming equipment. Net revenue decreased against the sequential quarter as the first quarter benefitted from pre-holiday production volumes in home entertainment.

Industrial market net revenue decreased against the comparable and sequential quarters due to softening demand for semiconductor and production equipment from our customers’ decreased production, companies’ reluctance to invest in automation projects or deferral of projects in the current economic environment and relatively high levels of inventory in the distribution channel.

Automotive market net revenue increased modestly against the comparable quarter due to higher global automobile production and our customers’ increasing electronic content in automobiles, such as navigational and entertainment systems, mobile communication and products to improve fuel efficiency. The automotive market decreased against the sequential quarter due to slowing automobile production, particularly in Europe.

The following table shows the percentage of our net revenue by geographic region:

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Americas		26	%		23	%		25	%		24	%
Asia Pacific		61			63			62			63
Europe		13			14			13			13
Total		100	%		100	%		100	%		100	%

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The following table provides an analysis of the change in net revenue compared with the prior fiscal year period (in thousands):

	Three Months Ended Dec. 31, 2011			Six Months Ended Dec. 31, 2011
Net revenue for prior year period	$	901,465		$	1,799,137
Components of net revenue change:
Organic net revenue change		(61,949	)		(80,544	)
Currency translation		15,252			68,127
Acquisitions		2,830			6,863
Total change in net revenue from prior year period		(43,867	)		(5,554	)
Net revenue for current year period	$	857,598		$	1,793,583
Organic net revenue change as a percentage of net revenue for prior year period		(6.9	)%		(4.5	)%

Organic net revenue decreased during the three and six months ended December 31, 2011 compared with the prior year periods as customer demand decreased in the consumer, industrial and telecommunications markets based on uncertainties about end customer demand. We completed an asset acquisition of an active optical cable business during the third quarter of fiscal 2011. The asset acquisition of the specialty wire and cable company completed at the end of the second quarter of fiscal 2012 did not affect net revenue for the three months ended December 31, 2011.

Foreign currency translation increased net revenue approximately $15.3 million and $68.1 million for the three and six months ended December 31, 2011, respectively, principally due to a stronger Japanese yen. The following tables show the effect on the change in geographic net revenue from foreign currency translations to the U.S. dollar (in thousands):

	Three Months Ended December 31, 2011								Six Months Ended December 31, 2011
	Local Currency			Currency Translation		Net Change			Local Currency			Currency Translation		Net Change
Americas	$	10,286		$	33	$	10,319		$	14,121		$	417	$	14,538
Asia Pacific		(56,683	)		14,531		(42,152	)		(64,869	)		51,419		(13,450	)
Europe		(13,138	)		688		(12,450	)		(22,148	)		16,291		(5,857	)
Corporate & other		416			—		416			(785	)		—		(785	)
Net change	$	(59,119	)	$	15,252	$	(43,867	)	$	(73,681	)	$	68,127	$	(5,554	)

The change in net revenue on a local currency basis was as follows:

	Three Months Ended Dec. 31, 2011			Six Months Ended Dec. 31, 2011
Americas		5.0	%		3.3	%
Asia Pacific		(10.0	)		(5.8	)
Europe		(10.5	)		(9.0	)
Total		(6.6	)%		(4.1	)%

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Gross Profit

The following table provides a summary of gross profit and gross margin for the three and six months ended December 31 (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Gross profit	$	262,937		$	271,045		$	555,665		$	546,121
Gross margin		30.7	%		30.1	%		31.0	%		30.4	%

The decrease in gross profit for the three months ended December 31, 2011 was primarily due to lower net revenue. Despite the lower net revenue, gross margin improved during the three and six months ended December 31, 2011 due to a favorable mix of product sales. Gross profit and gross margin for the six months ended December 31, 2011 also improved due to price increases to partially offset rising material costs. The increases in gross margin were partially offset by the impact of price erosion and material price increases.

A significant portion of our material cost is comprised of copper and gold. We purchased approximately 10.5 million pounds of copper and approximately 53,900 troy ounces of gold during the first two quarters of fiscal 2012. The following table shows the change in average prices related to our purchases of copper and gold for the three and six months ended December 31 (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Copper (price per pound)	$	3.41	$	3.93	$	3.78	$	3.57
Gold (price per troy ounce)		1,683.00		1,370.00		1,693.00		1,298.00

Generally, we are able to pass through to our customers only a small portion of changes in the cost of copper and gold. However, we mitigate the impact of any significant increases in copper and gold prices by hedging with call options a portion of our projected net global purchases of copper and gold. The hedges reduced cost of sales by $3.6 million and $5.4 million for the three and six months ended December 31, 2011, respectively, and reduced cost of sales by $2.0 million for the six months ended December 31, 2010. The hedges did not materially affect operating results for the three months ended December 31, 2010.

The effect of certain significant impacts on gross profit compared with the prior year periods was as follows for the three and six months ended December 31 (in thousands):

	Three Months Ended Dec. 31, 2011			Six Months Ended Dec. 31, 2011
Price erosion	$	(20,765	)	$	(44,783	)
Currency translation		5,565			22,540
Currency transaction		(8,595	)		(26,013	)

Price erosion is measured as the reduction in prices of our products year over year, which reduces our gross profit, particularly in our Connector segment, where we have the largest impacts of price erosion. A significant portion of our price erosion occurred in mobile phone connector products as our customers introduced new versions of mobile products. Mobile phones and smartphones are part of our telecommunications market.

The increase in gross profit due to currency translation during the three and six months ended December 31, 2011, was primarily due to a stronger Japanese yen against other currencies compared with the prior year periods.

Certain products that we manufacture in Japan and Europe are sold in other regions of the world at selling prices primarily denominated in or closely linked to the U.S. dollar. As a result, changes in currency exchange rates may affect our cost of sales reported in U.S. dollars without a corresponding effect on net revenue. The decrease in gross profit due to currency transactions was primarily due to a stronger Japanese yen and a general weakening of the U.S dollar against most currencies during the three and six months ended December 31, 2011.

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Operating Expenses

Operating expenses were as follows as of December 31 (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Selling, general and administrative	$	163,073		$	159,044		$	332,298		$	316,100
Unauthorized activities in Japan		2,723			2,713			5,645			8,255
Selling, general and administrative as a percentage of revenue		19.0	%		17.6	%		18.5	%		17.6	%

Selling, general and administrative expenses increased $4.0 million and $16.2 million for the three and six months ended December 31, 2011, compared with the prior year periods. The increase is primarily due to foreign currency translation. The impact of foreign currency translation increased selling, general and administrative expenses approximately $8.9 million and $10.8 million for the three and six months ended December 31, 2011, respectively, versus the prior year periods. Excluding the impact of foreign currency translation, selling, general and administrative expenses decreased $4.9 million for the three months ended December 31, 2011 compared with the prior year period as specific efforts to contain costs offset increases in research and development expenditures. Excluding the impact of foreign currency translation, selling, general and administrative expenses increased $5.4 million for the six months ended December 31, 2011 compared with the prior year period primarily due to investments in research and development to drive future growth.

Research and development expenditures, which are classified as selling, general and administrative expense, were approximately $44.8 million, or 5.2% of net revenue and $88.7 million, or 4.9% of net revenue for the three and six months ended December 31, 2011, respectively, compared with $42.2 million, or 4.7% of net revenue and $82.7 million, or 4.6% of net revenue, for the comparable prior year periods.

Unauthorized activities in Molex Japan for the three and six months ended December 31, 2011 represent investigative and legal fees. See Note 2 of the Notes to the Condensed Consolidated Financial Statements.

Other (Expense) Income

Other (expense) income consists primarily of net interest expense, investment income and currency exchange gains or losses. We recorded net expense of $0.6 million and $1.7 million for the three and six months ended December 31, 2011, respectively, as investment income partially offset interest expense and foreign currency gains or losses in both periods. Other income of $3.0 million and $1.3 million for the three and six months ended December 31, 2010 was primarily due to investment income, partially offset by foreign currency exchange losses from a general weakening of the U.S. dollar against other currencies.

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Effective Tax Rate

The effective tax rate was 33.7% for the three months ended December 31, 2011. During the three months ended December 31, 2011, we recorded a one-time charge for additional income tax expense of $2.7 million. This charge reflects the cumulative effect of a reduction in future tax benefits from deferred tax assets in Japan resulting from the decrease in the Japanese statutory corporate tax rate. The reduction in the Japanese statutory tax rate was enacted in November 2011.

Our effective tax rate reflects tax benefits derived from significant operations outside the United States, which, other than Japan, are generally taxed at rates lower than the U.S. statutory rate of 35.0%. A change in the mix of income before income taxes from these various jurisdictions can have a significant impact on our periodic effective rate.

The effective tax rate was 30.3% for the three months ended December 31, 2010.

Backlog

Our order backlog on December 31, 2011 was approximately $346.3 million compared with order backlog of $413.7 million at December 31, 2010 and $387.2 million at September 30, 2011. Orders for the three months ended December 31, 2011 were $815.3 million compared with $871.7 million for the prior year period, representing slower customer demand caused by uncertainties in the global economy. Orders were flat or declined in all of our primary markets compared with the prior year period, but the largest declines were in our telecommunications and consumer markets. Our consumer and infotech markets were impacted more than our other markets by the disruption from the floods in Thailand, which occurred in October and November 2011.

Segments

The following table sets forth information on net revenue by segment as of the three months ended December 31 (in thousands):

	2011		Percentage of Revenue			2010		Percentage of Revenue
Connector	$	602,885		70.3	%	$	665,230		73.8	%
Custom & Electrical		254,713		29.7			236,046		26.2
Corporate & Other		—		—			189		—
Total	$	857,598		100.0	%	$	901,465		100.0	%

The following table sets forth information on net revenue by segment as of the six months ended December 31 (in thousands):

	2011		Percentage of Revenue			2010		Percentage of Revenue
Connector	$	1,281,665		71.5	%	$	1,326,366		73.7	%
Custom & Electrical		511,507		28.5			472,077		26.2
Corporate & Other		411		—			694		0.1
Total	$	1,793,583		100.0	%	$	1,799,137		100.0	%

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Connector

The following table provides an analysis of the change in net revenue compared with the prior fiscal year (in thousands):

	Three Months Ended Dec. 31,  2011			Six Months Ended Dec. 31, 2011
Net revenue for prior year period	$	665,230		$	1,326,366
Components of net revenue change:
Organic net revenue change		(76,722	)		(100,636	)
Currency translation		14,377			55,935
Total change in net revenue from prior year period		(62,345	)		(44,701	)
Net revenue for current year period	$	602,885		$	1,281,665
Organic net revenue change as a percentage of net revenue for prior year period		(11.5	)%		(7.6	)%

The Connector segment sells primarily to the telecommunication, infotech, consumer and automotive markets. Organic net revenue and segment net revenue decreased during the three and six months ended December 31, 2011 compared with the prior year periods. The decrease was primarily due to slower customer demand, particularly in the telecommunications and consumer markets. Price erosion, which is generally higher in the Connector segment compared with our other segment, also negatively impacted organic net revenue and segment net revenue. The decrease was partially offset by foreign currency translation, which favorably impacted net revenue by $14.4 million and $55.9 million for the three and six months ended December 31, 2011, respectively.

The following table provides information on income from operations and operating margins for the Connector segment for the periods indicated (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Income from operations	$	77,351		$	105,915		$	183,613		$	204,562
Operating margin		12.8	%		15.9	%		14.3	%		15.4	%

Connector segment income from operations declined over the prior year periods primarily due to lower net revenue and higher commodity costs. We increased prices to partially offset rising material costs and minimize the decline in gross profit and gross margin. Lower production levels due to decreasing customer demand also led to lower absorption of our fixed costs. Foreign currency translation increased selling, general and administrative expenses primarily due to a stronger Japanese yen against other currencies during the three and six months ended December 31, 2011, compared with the prior year periods.

23

Custom & Electrical

The following table provides an analysis of the change in net revenue compared with the prior fiscal year (in thousands):

	Three Months Ended Dec. 31,  2011			Six Months Ended Dec. 31, 2011
Net revenue for prior year period	$	236,046		$	472,077
Components of net revenue change:
Organic net revenue change		14,961			20,356
Currency translation		876			12,211
Acquisitions		2,830			6,863
Total change in net revenue from prior year period		18,667			39,430
Net revenue for current year period	$	254,713		$	511,507
Organic net revenue change as a percentage of net revenue for prior year period		6.3	%		4.3	%

The Custom & Electrical segment sells primarily to the industrial, telecommunications and infotech markets. Custom & Electrical segment net revenue increased in the three and six months ended December 31, 2011 compared with the prior year periods due to increased customer demand in the infotech market and favorable foreign currency translation. We completed an asset acquisition of an active optical cable business during the third quarter of fiscal 2011. The asset acquisition of the specialty wire and cable company completed at the end of the second quarter of fiscal 2012 did not affect net revenue for the three months ended December 31, 2011.

The following table provides information on income from operations and operating margins for the Custom & Electrical segment for the periods indicated (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Income from operations	$	47,597		$	32,005		$	89,505		$	74,571
Operating margin		18.7	%		13.6	%		17.5	%		15.8	%

Custom & Electrical income from operations increased compared with the prior year periods due to increased net revenue and efforts to control costs. Gross margin increased primarily due to favorable mix of product sales, higher absorption and foreign currency translation. Selling, general and administrative expenses as a percent of net revenue for the three and six months ended December 31, 2011 improved over the same prior year periods, due primarily to increased net revenue and specific cost containment actions.

Non-GAAP Financial Measures

Organic net revenue growth, which is included in the discussion above, is a non-GAAP financial measure. The tables presented in Results of Operations above provide reconciliations of U.S. GAAP reported net revenue growth (the most directly comparable GAAP financial measure) to organic net revenue growth.

We believe organic net revenue growth provides useful information to investors because it reflects the underlying growth from the ongoing activities of our business and provides investors with a view of our operations from management’s perspective. We use organic net revenue growth to monitor and evaluate performance, as it is an important measure of the underlying results of our operations. It excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition activity. Management uses organic net revenue growth together with GAAP measures such as net revenue growth and operating income in its decision making processes related to the operations of our reporting segments and our overall company.

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Financial Condition and Liquidity

We fund capital projects and working capital needs principally out of operating cash flows and cash reserves. Cash, cash equivalents and marketable securities totaled $618.6 million and $546.5 million at December 31, 2011 and June 30, 2011, respectively, of which $605.0 million was in non-U.S. accounts, including $197.0 million in China, as of December 31, 2011. Transferring cash, cash equivalents, or marketable securities to U.S. accounts from non-U.S. accounts could subject us to additional U.S. repatriation income tax. The primary source of our cash flow is cash generated by operations. Principal uses of cash are capital expenditures, dividend payments and business investments. Our long-term financing strategy is to primarily rely on internal sources of funds for investing in plant, equipment and acquisitions.

On August 18, 2011, we issued senior notes totaling $150.0 million through a private placement of debt (the Private Placement). The Private Placement consists of three $50.0 million series notes: Series A with an interest rate of 2.91% matures on August 18, 2016; Series B with an interest rate of 3.59% matures on August 18, 2018; and Series C with an interest rate of 4.28% matures on August 18, 2021. The Note Purchase Agreement requires us to maintain financial covenants pertaining to, among other things, our consolidated leverage and interest rate coverage. As of December 31, 2011, we were in compliance with these covenants.

In June 2009, we entered into a $195.0 million unsecured, three-year revolving credit facility in the United States, amended in January 2010, September 2010 and March 2011, that was initially scheduled to mature in June 2012 (the U.S. Credit Facility). In connection with the September 2010 amendment, we increased the credit line on the U.S. Credit Facility to $270.0 million. In March 2011, we further amended the credit facility to increase the credit line to $350.0 million and extend the term to March 2016.

Total debt including obligations under capital leases totaled $324.3 million and $342.6 million at December 31, 2011 and June 30, 2011, respectively. We had available lines of credit totaling $405.7 million at December 31, 2011, including a $350.0 million unsecured, five-year revolving credit facility with $310.0 million available as of December 31, 2011. The credit facility requires us to maintain financial covenants pertaining to, among other things, our consolidated leverage and fixed charge coverage. As of December 31, 2011, we were in compliance with these covenants. Additionally, we have three unsecured borrowing agreements in Japan totaling ¥10.1 billion ($129.5 million) as of December 31, 2011, with weighted average fixed interest rates of 1.56%. See Note 9 of the Notes to the Condensed Consolidated Financial Statements.

Cash Flows

Our cash and cash equivalents balance increased $74.7 million during the six months ended December 31, 2011. Our primary source of cash was operating cash flows of $291.5 million, the majority of which is generated outside the United States. We used cash during the period to fund capital expenditures of $95.1 million and pay dividends of $70.2 million. The translation of our cash to U.S. dollars decreased our cash balance by $9.4 million compared with the balance as of June 30, 2011.

Below is a table setting forth the key lines of our Consolidated Statements of Cash Flows (in thousands):

	Six Months Ended December 31,
	2011			2010
Cash provided from operating activities	$	291,513		$	182,475
Cash used for investing activities		(115,087	)		(129,737	)
Cash used for financing activities		(92,319	)		(54,371	)
Effect of exchange rate changes on cash		(9,370	)		17,671
Net increase in cash and cash equivalents	$	74,737		$	16,038

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Operating Activities

Cash provided from operating activities increased by $109.0 million from the prior year period due mainly to a $132.4 million decrease in working capital needs in the current year period compared with the prior year. Working capital needs decreased during the six months ended December 31, 2011 compared with the prior year period as we collected outstanding receivable balances and maintained inventory levels after increasing inventory in the prior year due to customer demand and the conversion from air shipment to sea shipment. Working capital is defined as current assets minus current liabilities.

Investing Activities

Cash used for investing activities decreased by $14.7 million from the prior year period due mainly to a $37.7 million decrease in capital expenditures, partially offset by a $24.0 million acquisition of a specialty wire and cable company in the second quarter of fiscal 2012. Capital expenditures were $95.1 million for the six months ended December 31, 2011 compared with $132.7 million in the prior year period.

Financing Activities

Cash used for financing activities increased $37.9 million during the six months ended December 31, 2011, compared with the prior year period primarily due to the increased quarterly cash dividend and net payments on debt.

Our quarterly cash dividend was $0.2000 per share in fiscal 2012, an increase of 14.3% from the previous cash dividend of $0.1750 per share in the prior fiscal year. The increase was effective to shareholders of record on June 30, 2011.

We issued senior notes totaling $150.0 million on August 18, 2011. Proceeds were used to pay down a portion of the U.S. Credit Facility. Net borrowings on the revolving credit facility were $20.0 million for the three months ended December 31, 2011 and net payments were $145.0 million for the six months ended December 31, 2011, compared with net borrowings of $25.0 million and $35.0 million in the prior year periods.

As part of our growth strategy, in the future we may acquire other companies in the same or complementary lines of business and pursue other business ventures. The timing and size of any new business ventures or acquisitions we complete may impact our cash requirements. To the extent we are required to pay all or any portion of the unauthorized loans in Japan our cash requirements may also be impacted.

Contractual Obligations and Commercial Commitments

We have contractual obligations and commercial commitments as described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Contractual Obligations and Commercial Commitments” of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the Commission) for the year ended June 30, 2011. In addition, we have obligations under open purchase orders and the long-term liabilities reflected in our consolidated balance sheet, which principally consist of pension and retiree health care benefit obligations. Since June 30, 2011, there have been no material changes in our contractual obligations and commercial commitments arising outside of the ordinary course of business other than the Private Placement. The Private Placement consists of three $50.0 million series notes: Series A that matures on August 18, 2016; Series B that matures on August 18, 2018; and Series C that matures on August 18, 2021. See Note 9 of the Notes to the Condensed Consolidated Financial Statements.

Cautionary Statement Regarding Forward-Looking Information

This Quarterly Report contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about our future performance, business, beliefs, and management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, web casts, phone calls, and conference calls. Words such as “expect,” “anticipate,” “outlook,” “forecast,” “could,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “should,” “may,”

26

“assume,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. We describe our respective risks, uncertainties, and assumptions that could affect the outcome or results of operations in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2011 (Form 10-K). You should carefully consider the risks described in our Form 10-K. Such risks are not the only ones we are facing; additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. If any of the risks occur, our business, financial condition or operating results could be materially adversely affected.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to management at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied, or forecast by our forward-looking statements. Reference is made in particular to forward-looking statements regarding growth strategies, industry trends, financial results, cost reduction initiatives, unauthorized activities in Japan, acquisition synergies, manufacturing strategies, product development and sales, regulatory approvals, competitive strengths, natural disasters and investigations and legal proceedings. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this quarterly report, whether as a result of new information, future events, changes in assumptions, or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to market risk associated with changes in foreign currency exchange rates, interest rates and certain commodity prices.

We mitigate our foreign currency exchange rate risk principally through the establishment of local production facilities in the markets we serve. This creates a “natural hedge” since purchases and sales within a specific country are both denominated in the same currency and therefore no exposure exists to hedge with a foreign exchange forward or option contract (collectively, “foreign exchange contracts”). Natural hedges exist in most countries in which we operate, although the percentage of natural offsets, compared with offsets that need to be hedged by foreign exchange contracts, will vary from country to country.

We also monitor our foreign currency exposure in each country and implement strategies to respond to changing economic and political environments. Examples of these strategies include the prompt payment of intercompany balances utilizing a global netting system, the establishment of contra-currency accounts in several international subsidiaries, and the development of natural hedges and use of foreign exchange contracts to protect or preserve the value of cash flows. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for discussion of foreign exchange contracts in use at December 31, 2011 and June 30, 2011.

We have implemented a formalized treasury risk management policy that describes procedures and controls over derivative financial and commodity instruments. Under the policy, we do not use derivative financial or commodity instruments for speculative or trading purposes, and the use of such instruments is subject to strict approval levels by senior management. Typically, the use of derivative instruments is limited to hedging activities related to specific foreign currency cash flows, net receivable and payable balances and call options on certain commodities. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for discussion of derivative instruments in use at December 31, 2011 and June 30, 2011.

The translation of the financial statements of the non-North American operations is impacted by fluctuations in foreign currency exchange rates. Consolidated net revenue and income from operations was impacted by the translation of our international financial statements into U.S. dollars resulting in increased net revenue of $68.1 million and increased income from operations of $11.7 million for the six months ended December 31, 2011, compared with the estimated results for the comparable period in the prior year.

Our $11.2 million of marketable securities at December 31, 2011 are principally invested in time deposits.

Interest rate exposure is generally limited to our marketable securities, five-year unsecured credit facility and syndicated term loan. We do not actively manage the risk of interest rate fluctuations. Our marketable securities mature in less than 12 months. We had $40.0 million outstanding on our $350.0 million credit facility with an interest rate of approximately 1.77% at December 31, 2011.

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Due to the nature of our operations, we are not subject to significant concentration risks relating to customers or products.

We monitor the environmental laws and regulations in the countries in which we operate. We have implemented an environmental program to reduce the generation of potentially hazardous materials during our manufacturing process and believe we continue to meet or exceed local government regulations.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management has evaluated, under the supervision and with the participation of our chief executive officer (CEO) and chief financial officer (CFO), the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on that evaluation, our CEO and CFO have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective in ensuring that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms, and (2) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

During the three months ended December 31, 2011, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) or in other factors that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including the CEO and CFO, do not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, will be detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by intentionally falsified documentation, by collusion of two or more individuals within Molex or third parties, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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PART II

Item 1. Legal Proceedings

Currently, we are involved in a number of legal proceedings. For a discussion of contingencies related to legal proceedings, see Note 14 of the Notes to the Condensed Consolidated Financial Statements, which is hereby incorporated by reference.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share purchases of Molex Common and/or Class A Common Stock for the quarter ended December 31, 2011 were as follows (in thousands, except price per share data):

	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan
October 1 – October 31
Common Stock		—	$	—		—
Class A Common Stock		140	$	17.66		—
November 1 – November 30
Common Stock		—	$	—		—
Class A Common Stock		*	$	19.62		—
December 1 – December 31
Common Stock		—	$	—		—
Class A Common Stock		—	$	—		—
Total		140	$	17.67		—

The shares purchased represent exercises of employee stock options.

* Less than 1,000 shares.

29

Item 6. Exhibits

Number	Description
10.1	2008 Molex Stock Incentive Plan, as amended and restated. Incorporated by reference to Appendix A to our 2011 Proxy Statement (File No. 000-07491).
31	Rule 13a-14(a)/15d-14(a) Certifications
	31.1 Section 302 certification by Chief Executive Officer
	31.2 Section 302 certification by Chief Financial Officer
32	Section 1350 Certifications
	32.1 Section 906 certification by Chief Executive Officer
	32.2 Section 906 certification by Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	MOLEX INCORPORATED
	(Registrant)
Date: January 26, 2012	/S/ DAVID D. JOHNSON
	David D. Johnson
	Executive Vice President, Treasurer and
	Chief Financial Officer
	(Principal Financial Officer)

31

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT OF 2002

I, Martin P. Slark, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Molex Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 26, 2012	/S/ MARTIN P. SLARK
	Martin P. Slark
	Vice Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT OF 2002

I, David D. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Molex Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 26, 2012	/S/ DAVID D. JOHNSON
	David D. Johnson
	Executive Vice President, Treasurer and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, I, Martin P. Slark, hereby certify that, to the best of my knowledge:

1. The quarterly report of Molex Incorporated on Form 10-Q for the quarter ended December 31, 2011 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in that Report fairly presents, in all material respects, the financial condition and results of operations of Molex Incorporated.

Date: January 26, 2012	/S/ MARTIN P. SLARK
	Martin P. Slark
	Vice Chairman and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this certification has been provided to Molex Incorporated and will be retained by Molex Incorporated and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION BY THE CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, I, David D. Johnson, by certify that, to the best of my knowledge:

1. The quarterly report of Molex Incorporated on Form 10-Q for the quarter ended December 31, 2011 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in that Report fairly presents, in all material respects, the financial condition and results of operations of Molex Incorporated.

Date: January 26, 2012	/S/ DAVID D. JOHNSON
	David D. Johnson
	Executive Vice President, Treasurer and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this certification has been provided to Molex Incorporated and will be retained by Molex Incorporated and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Debt (Details) In Thousands, unless otherwise specified				6 Months Ended			6 Months Ended		6 Months Ended		6 Months Ended
	Dec. 31, 2011 USD ($)	Sep. 30, 2011 JPY (¥)	Jun. 30, 2011 USD ($)	Dec. 31, 2011 Private Placement [Member] USD ($)	Dec. 31, 2011 U.S Credit Facility [Member] USD ($)	Jun. 30, 2011 U.S Credit Facility [Member] USD ($)	Dec. 31, 2011 Unsecured bonds and term loans [Member] USD ($)	Jun. 30, 2011 Unsecured bonds and term loans [Member] USD ($)	Dec. 31, 2011 Other debt [Member] USD ($)	Jun. 30, 2011 Other debt [Member] USD ($)	Dec. 31, 2011 Overdraft loans [Member]
Long-term debt:
Average interest rate					1.77%						2.48%
Debt instrument maturity year											2012
Minimum interest rate				2.91%			1.31%
Maximum interest rate				4.28%			1.65%
Debt instrument maturity year minimum				2016	2016		2012		2012
Debt instrument maturity year maximum				2021			2013		2013
Long-term debt	$ 196,671		$ 222,794	$ 150,000	$ 40,000	$ 185,000	$ 65,394	$ 89,342	$ 1,331	$ 1,528
Total long-term debt	256,725		275,870
Current portion of long-term debt and short-term borrowings	127,631		119,764				59,043	52,156	1,011	920
Overdraft loans	64,150	5,000,000	62,060
Other -short term borrowings	3,427		4,628
Total short-term Borrowings	67,577		66,688
Total debt	$ 324,302		$ 342,558

XML

Segment and Related Information (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Segment Reporting Information [Line Items]
Total assets	$ 3,570,118	$ 3,597,852
Segment Assets [Member]
Segment Reporting Information [Line Items]
Total assets	2,396,196	2,515,850
Connector [Member]
Segment Reporting Information [Line Items]
Total assets	1,818,260	1,913,675
Custom & Electrical [Member]
Segment Reporting Information [Line Items]
Total assets	468,381	503,443
Corporate & Other [Member]
Segment Reporting Information [Line Items]
Total assets	$ 109,555	$ 98,732

XML

Contingencies (Details) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2009 USD ($) employees	Jun. 30, 2009 EUR (€)	Dec. 31, 2011 USD ($)	Dec. 31, 2011 EUR (€)	Dec. 31, 2011 JPY (¥)	Dec. 31, 2011 Borrowing One [Member] USD ($)	Dec. 31, 2011 Borrowing One [Member] JPY (¥)	Dec. 31, 2011 Borrowing Two [Member] USD ($)	Dec. 31, 2011 Borrowing Two [Member] JPY (¥)	Dec. 31, 2011 Borrowing Three [Member] USD ($)	Dec. 31, 2011 Borrowing Three [Member] JPY (¥)	Dec. 31, 2011 Borrowing Four [Member] USD ($)	Dec. 31, 2011 Borrowing Four [Member] JPY (¥)
Debt Instrument [Line Items]
Outstanding Principal payments claimed by the bank						$ 38.5	¥ 3,000.0	$ 64.2	¥ 5,000.0	$ 64.2	¥ 5,000.0	$ 25.7	¥ 2,000.0
Contingencies (Textual) [Abstract]
Number of terminated employees	280	280
Amount sought by former employees from company	31.1	24.0
Claiming for loan related expenses			1.4		106.0
Claiming for interest and delay damages			44.5		3,500.0
Amount awarded to plaintiffs			$ 2.6	€ 2.0

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Restructuring Costs And Asset Impairments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2011	Sep. 30, 2011
Changes in the accrued severance
Accrued severance, beginning balance	$ 12,728	$ 14,049
Cash payments	(806)	(752)
Non-cash related costs	(353)	(569)
Accrued severance, ending balance	$ 11,569	$ 12,728

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Inventories (Tables)

6 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

	Dec. 31, 2011		June 30, 2011
Raw materials	$	98,076	$	91,362
Work in process		152,185		143,888
Finished goods		302,003		300,703
Total inventories	$	552,264	$	535,953

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Effective tax rate	33.70%	30.30%
Accrual of interest and penalties on unrecognized tax benefits	$ 0
Change in enacted tax rate	$ 2.7

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Inventories
Raw materials	$ 98,076	$ 91,362
Work in progress	152,185	143,888
Finished goods	302,003	300,703
Total inventories	$ 552,264	$ 535,953

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Segment and Related Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Schedule of product reportable segment
Revenues from external customers	$ 857,598	$ 901,465	$ 1,793,583	$ 1,799,137
Income (loss) from operations	97,141	109,288	217,722	221,766
Depreciation and amortization	59,933	61,696	121,174	120,804
Capital expenditures	52,251	61,536	95,055	132,728
Connector [Member]
Schedule of product reportable segment
Revenues from external customers	602,885	665,230	1,281,665	1,326,366
Income (loss) from operations	77,351	105,915	183,613	204,562
Depreciation and amortization	49,333	50,669	99,408	98,205
Capital expenditures	43,673	58,229	78,375	116,985
Custom & Electrical [Member]
Schedule of product reportable segment
Revenues from external customers	254,713	236,046	511,507	472,077
Income (loss) from operations	47,597	32,005	89,505	74,571
Depreciation and amortization	6,753	6,886	13,880	14,409
Capital expenditures	4,235	1,526	11,149	8,780
Corporate & Other [Member]
Schedule of product reportable segment
Revenues from external customers		189	411	694
Income (loss) from operations	(27,807)	(28,632)	(55,396)	(57,367)
Depreciation and amortization	3,847	4,141	7,886	8,190
Capital expenditures	$ 4,343	$ 1,781	$ 5,531	$ 6,963

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Acquisitions

6 Months Ended

Dec. 31, 2011

Acquisitions [Abstract]

Acquisitions

4. Acquisitions

During the second quarter of fiscal 2012, we completed an asset purchase of a specialty wire and cable company for $24.0 million and recorded goodwill of $18.0 million. The purchase price allocation for this acquisition is preliminary and subject to revision as more detailed analysis is completed and additional information about the fair value of assets and liabilities becomes available.

During the third quarter of fiscal 2011, we completed an asset acquisition of an active optical cable business for $24.6 million and recorded goodwill of $14.6 million. The purchase price includes contingent consideration up to $5.8 million payable through fiscal 2013 upon the seller meeting certain criteria. The purchase price allocation for this acquisition is complete.

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Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Financial assets and liabilities measured at fair value on a recurring basis
Available for sale and trading securities	$ 23,325
Derivative financial instruments, net	5,896
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets and liabilities measured at fair value on a recurring basis
Available for sale and trading securities	23,325
Derivative financial instruments, net	0
Significant Other Observable Inputs (Level 2) [Member]
Financial assets and liabilities measured at fair value on a recurring basis
Available for sale and trading securities	0
Derivative financial instruments, net	5,896
Significant Unobservable Inputs (Level 3) [Member]
Financial assets and liabilities measured at fair value on a recurring basis
Available for sale and trading securities	0
Derivative financial instruments, net	$ 0

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Derivative Instruments And Hedging Activities (Tables)

6 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities [Abstract]

Accumulated other comprehensive income (AOCI) and earnings from cash flow hedges

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Unrealized (loss) gain recognized in AOCI		(6,089	)		4,795			(4,587	)		4,073
Gain (loss) reclassified into earnings		3,564			(132	)		5,409			2,004

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Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Financial assets and liabilities measured at fair value on a recurring basis

	Total Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale and trading securities	$	23,325	$	23,325	$	—	$	—
Derivative financial instruments, net		5,896		—		5,896		—

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Derivative Instruments And Hedging Activities (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Accumulated other comprehensive income (AOCI) and earnings from cash flow hedges
Unrealized (loss) gain recognized in AOCI	$ (6,089)	$ 4,795	$ (4,587)	$ 4,073
Gain (loss) reclassified into earnings	$ 3,564	$ (132)	$ 5,409	$ 2,004

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Segments and Related Information (Tables)

6 Months Ended

Dec. 31, 2011

Segments and Related Information [Abstract]

Schedule of product reportable segment

	Connector		Custom & Electrical		Corporate & Other			Total
For the three months ended:
December 31, 2011:
Revenues from external customers	$	602,885	$	254,713	$	—		$	857,598
Income (loss) from operations		77,351		47,597		(27,807	)		97,141
Depreciation & amortization		49,333		6,753		3,847			59,933
Capital expenditures		43,673		4,235		4,343			52,251
December 31, 2010:
Revenues from external customers	$	665,230	$	236,046	$	189		$	901,465
Income (loss) from operations		105,915		32,005		(28,632	)		109,288
Depreciation & amortization		50,669		6,886		4,141			61,696
Capital expenditures		58,229		1,526		1,781			61,536
For the six months ended:
December 31, 2011:
Revenues from external customers	$	1,281,665	$	511,507	$	411		$	1,793,583
Income (loss) from operations		183,613		89,505		(55,396	)		217,722
Depreciation & amortization		99,408		13,880		7,886			121,174
Capital expenditures		78,375		11,149		5,531			95,055
December 31, 2010:
Revenues from external customers	$	1,326,366	$	472,077	$	694		$	1,799,137
Income (loss) from operations		204,562		74,571		(57,367	)		221,766
Depreciation & amortization		98,205		14,409		8,190			120,804
Capital expenditures		116,985		8,780		6,963			132,728

Schedule of segment assets

	Connector		Custom & Electrical		Corporate & Other		Total
December 31, 2011	$	1,818,260	$	468,381	$	109,555	$	2,396,196
June 30, 2011		1,913,675		503,443		98,732		2,515,850

Reconciliation of segment assets to consolidated total assets

	Dec. 31, 2011		June 30, 2011
Segment assets	$	2,396,196	$	2,515,850
Other current assets		788,409		707,943
Other non-current assets		385,513		374,059
Consolidated total assets	$	3,570,118	$	3,597,852

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Basis of Presentation (Details)	6 Months Ended
	Dec. 31, 2011 countries locations
Basis of Presentation (Textual) [Abstract]
Number of manufacturing locations	40
Number of countries including whose products are integrated in different manufacturing locations	16

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Restructuring Costs and Asset Impairments

6 Months Ended

Dec. 31, 2011

Restructuring Costs and Asset Impairments [Abstract]

Restructuring Costs and Asset Impairments

3. Restructuring Costs and Asset Impairments

On June 30, 2010 we completed a multi-year restructuring plan designed to reduce costs and to improve return on invested capital in connection with a new global organization that was effective July 1, 2007. A majority of the plan related to facilities located in North America, Europe and Japan and, in general, the movement of manufacturing activities from these plants to lower-cost facilities.

Changes in the restructuring accrual balance are summarized as follows (in thousands):

Balance at June 30, 2011	$	14,049
Cash payments		(752	)
Non-cash related costs		(569	)
Balance at September 30, 2011	$	12,728
Cash payments		(806	)
Non-cash related costs		(353	)
Balance at December 31, 2011	$	11,569

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Unauthorized Activities in Japan (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Dec. 31, 2011	Jun. 30, 2011
Unauthorized Activities In Japan (Textual) [Abstract]
Accrued liability for potential net losses	$ 188.6	$ 165.8
Cumulative foreign currency translation	22.8
Contingent liability	$ 45.9

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Debt (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Principal payments on long-term debt obligations
2012	$ 60,054
2013	6,671
2014	0
2015	0
2016	90,000
Thereafter	100,000
Total long-term debt obligations	$ 256,725	$ 275,870

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Current assets:
Cash and cash equivalents	$ 607,336	$ 532,599
Marketable securities	11,230	13,947
Accounts receivable, less allowances of $38,525 and $42,297 respectively	708,197	811,449
Inventories	552,264	535,953
Deferred income taxes	130,759	129,158
Other current assets	39,084	32,239
Total current assets	2,048,870	2,055,345
Property, plant and equipment, net	1,135,735	1,168,448
Goodwill	166,409	149,452
Non-current deferred income taxes	37,273	38,178
Other assets	181,831	186,429
Total assets	3,570,118	3,597,852
Current liabilities:
Current portion of long-term debt and short-term borrowings	127,631	119,764
Accounts payable	317,103	359,812
Accrued expenses:
Accrual for unauthorized activities in Japan	188,601	182,460
Income taxes payable	27,672	2,383
Other	215,233	217,628
Total current liabilities	876,240	882,047
Other non-current liabilities	20,538	23,879
Accrued pension and postretirement benefits	93,056	100,866
Long-term debt	196,671	222,794
Total liabilities	1,186,505	1,229,586
Commitments and contingencies
Stockholders' equity:
Common stock	11,319	11,285
Additional paid-in capital	690,572	674,494
Retained earnings	2,482,317	2,408,083
Treasury stock	(1,110,147)	(1,106,039)
Accumulated other comprehensive income	309,552	380,443
Total stockholders' equity	2,383,613	2,368,266
Total liabilities and stockholders' equity	$ 3,570,118	$ 3,597,852

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Derivative Instruments and Hedging Activities (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Jun. 30, 2011
Derivative Instruments and Hedging Activities [Abstract]
Notional amounts of the forward contracts	$ 232,900,000		$ 232,900,000		$ 175,600,000
Fair values of asset foreign currency forward contracts	900,000		900,000		2,700,000
Fair values of the call options	6,200,000		6,200,000		7,800,000
Percentage of Planned purchases hedged			60.00%
Maturity period of call option			12 months or less
Unrealized (loss) gain recognized in AOCI	(6,089,000)	4,795,000	(4,587,000)	4,073,000
Period of reclassification of loss from AOCI to cost of sales			12 months
Gain (loss) reclassified into earnings	$ 3,564,000	$ (132,000)	$ 5,409,000	$ 2,004,000

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Basis of Presentation

6 Months Ended

Dec. 31, 2011

Basis of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

Molex Incorporated (together with its subsidiaries, except where the context otherwise requires, “we,” “us,” and “our”) manufactures electronic components, including electrical and fiber optic interconnection products and systems, switches and integrated products in 40 manufacturing locations in 16 countries.

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring accruals considered necessary for a fair statement of results for the interim period have been included. Operating results for the three and six months ended December 31, 2011 are not necessarily an indication of the results that may be expected for the year ending June 30, 2012. The Condensed Consolidated Balance Sheet as of June 30, 2011 was derived from our audited consolidated financial statements for the year ended June 30, 2011. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2011.

The preparation of the unaudited financial statements in conformity with GAAP requires the use of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and related disclosures. Significant estimates and assumptions are used in the estimation of income taxes, pension and retiree health care benefit obligations, stock options, accrual for unauthorized activities in Japan, allowances for accounts receivable and inventory and impairment reviews for goodwill, intangible and other long-lived assets. Estimates are revised periodically. Actual results could differ from these estimates. Material subsequent events are evaluated and disclosed through the report issuance date.

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Reconciliation of basic average common shares outstanding to diluted average common shares outstanding
Net income	$ 64,016	$ 78,283	$ 144,533	$ 153,387
Basic average common shares	175,830,000	174,664,000	175,656,000	174,510,000
Effect of dilutive stock options	1,155,000	892,000	1,122,000	819,000
Diluted weighted average common shares outstanding	176,985,000	175,556,000	176,778,000	175,329,000
Earnings per Share:
Basic	$ 0.36	$ 0.45	$ 0.82	$ 0.88
Diluted	$ 0.36	$ 0.45	$ 0.82	$ 0.88
Earnings Per Share (Textual) [Abstract]
Shares excluded from calculation of earnings per share	5,100,000	7,400,000	5,800,000	6,400,000

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Restructuring Costs and Asset Impairments (Tables)

6 Months Ended

Dec. 31, 2011

Restructuring Costs and Asset Impairments [Abstract]

Changes in the accrued severance

Balance at June 30, 2011	$	14,049
Cash payments		(752	)
Non-cash related costs		(569	)
Balance at September 30, 2011	$	12,728
Cash payments		(806	)
Non-cash related costs		(353	)
Balance at December 31, 2011	$	11,569

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Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Summary of total comprehensive income
Net income	$ 64,016	$ 78,283	$ 144,533	$ 153,387
Translation adjustment	(7,551)	14,045	(66,275)	86,011
Pension liability remeasurement	0	11,824	0	11,824
Unrealized investment (loss) gain	(3,492)	2,452	(4,616)	790
Total comprehensive income	$ 52,973	$ 106,604	$ 73,642	$ 252,012

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Comprehensive Income (Tables)

6 Months Ended

Dec. 31, 2011

Comprehensive Income [Abstract]

Comprehensive Income

	Three Months Ended December 31,					Six Months Ended December 31,
	2011			2010		2011			2010
Net income	$	64,016		$	78,283	$	144,533		$	153,387
Translation adjustments		(7,551	)		14,045		(66,275	)		86,011
Pension liability remeasurement		—			11,824		—			11,824
Unrealized investment (loss) gain		(3,492	)		2,452		(4,616	)		790
Total comprehensive income	$	52,973		$	106,604	$	73,642		$	252,012

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Unauthorized Activities in Japan

6 Months Ended

Dec. 31, 2011

Unauthorized Activities In Country One [Abstract]

Unauthorized Activities in Japan

2. Unauthorized Activities in Japan

As previously reported in our Annual Report on Form 10-K for the year ended June 30, 2011, we investigated unauthorized activities at Molex Japan Ltd. Based on the results of the completed investigation, we recorded an accrued liability of $165.8 million for accounting purposes for the effect of unauthorized activities pending the resolution of the legal proceedings reported in Note 14.

We believe these unauthorized activities and related losses occurred from at least as early as 1988 through 2010. The accrued liability for these unauthorized activities was $188.6 million as of December 31, 2011, including $22.8 million in cumulative foreign currency translation, which was recorded as a component of other comprehensive income. To the extent we prevail in not having to pay all or any portion of the unauthorized loans ($165.8 million), we would recognize a gain. In addition, we have a contingent liability of $45.9 million for other loan-related expenses, interest expense and delay damages on the outstanding unauthorized loans.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Condensed Consolidated Balance Sheets [Abstract]
Allowances for accounts receivable	$ 38,525	$ 42,297

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Derivative Instruments and Hedging Activities

6 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

12. Derivative Instruments and Hedging Activities

We use derivative instruments to manage our foreign exchange and commodity cost exposures. All derivative instruments are recognized at fair value in other current assets or liabilities.

Derivatives Not Designated as Hedging Instruments

We use one-month foreign currency forward contracts (forward contracts) to offset the impact of exchange rate volatility on certain assets and liabilities, including intercompany receivables and payables denominated in non-functional currencies. These forward contracts have not been designated as hedges, and the gains or losses on these forward contracts, along with the offsetting losses or gains due to the fluctuation of exchange rates on the underlying foreign currency denominated assets and liabilities, are recognized in other income (expense). The notional amounts of the forward contracts were $232.9 million and $175.6 million at December 31, 2011 and June 30, 2011, respectively, with corresponding fair values of a $0.9 million asset at December 31, 2011 and a $2.7 million asset at June 30, 2011.

Cash Flow Hedges

We use derivatives in the form of call options to hedge the variability of gold and copper costs. These derivative instruments are designated as cash flow hedges and hedge approximately 60% of our planned gold and copper purchases. Gains and losses of the effective hedges are recorded as a component of accumulated other comprehensive income and reclassified to cost of sales during the period the product containing the commodity is sold. The fair values of the call options were $6.2 million and $7.8 million at December 31, 2011 and June 30, 2011, respectively. These call options have maturities of 12 months or less.

For the three and six months ended December 31, 2011 and 2010, the impact to accumulated other comprehensive income (AOCI) and earnings from cash flow hedges follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Unrealized (loss) gain recognized in AOCI		(6,089	)		4,795			(4,587	)		4,073
Gain (loss) reclassified into earnings		3,564			(132	)		5,409			2,004

At December 31, 2011, $6.1 million is expected to be reclassified from AOCI to cost of sales within the next 12 months.

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Document and Entity Information	6 Months Ended
	Dec. 31, 2011	Jan. 31, 2012
Entity Registrant Name	MOLEX INC
Entity Central Index Key	0000067472
Document Type	10-Q
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		95,560,076
Class A Common Stock
Entity Common Stock, Shares Outstanding		80,389,577
Class B Common Stock
Entity Common Stock, Shares Outstanding		94,255

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New Accounting Pronouncements

6 Months Ended

Dec. 31, 2011

New Accounting Pronouncements [Abstract]

New Accounting Pronouncements

13. New Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (the FASB) issued updated guidance on the periodic testing of goodwill for impairment. This guidance will allow companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This new guidance is effective for us beginning July 1, 2012, with early adoption permitted. This new guidance will not have a material impact on our consolidated financial statements.

In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220). This new guidance requires the components of net income and other comprehensive income to be either presented in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. This new guidance eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for us for the quarter ended September 30, 2012 and will amend our presentation of the components of comprehensive income.

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Condensed Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Condensed Consolidated Statements of Income [Abstract]
Net revenue	$ 857,598	$ 901,465	$ 1,793,583	$ 1,799,137
Cost of sales	594,661	630,420	1,237,918	1,253,016
Gross profit	262,937	271,045	555,665	546,121
Selling, general and administrative	163,073	159,044	332,298	316,100
Unauthorized activities in Japan	2,723	2,713	5,645	8,255
Total operating expenses	165,796	161,757	337,943	324,355
Income from operations	97,141	109,288	217,722	221,766
Interest (expense) income, net	(2,094)	(1,788)	(3,485)	(3,123)
Other income	1,482	4,792	1,758	4,441
Total other (expense) income, net	(612)	3,004	(1,727)	1,318
Income before income taxes	96,529	112,292	215,995	223,084
Income taxes	32,513	34,009	71,462	69,697
Net income	$ 64,016	$ 78,283	$ 144,533	$ 153,387
Earnings per share:
Basic	$ 0.36	$ 0.45	$ 0.82	$ 0.88
Diluted	$ 0.36	$ 0.45	$ 0.82	$ 0.88
Dividends declared per share	$ 0.2000	$ 0.1750	$ 0.4000	$ 0.3275
Average common shares outstanding:
Basic	175,830	174,664	175,656	174,510
Diluted	176,985	175,556	176,778	175,329

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Inventories

6 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

7. Inventories

Inventories are valued at the lower of first-in, first-out cost or market. Inventories, net of allowances, consist of the following (in thousands):

	Dec. 31, 2011		June 30, 2011
Raw materials	$	98,076	$	91,362
Work in process		152,185		143,888
Finished goods		302,003		300,703
Total inventories	$	552,264	$	535,953

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Comprehensive Income

6 Months Ended

Dec. 31, 2011

Comprehensive Income [Abstract]

Comprehensive Income

6. Comprehensive Income

Total comprehensive income is summarized as follows (in thousands):

	Three Months Ended December 31,					Six Months Ended December 31,
	2011			2010		2011			2010
Net income	$	64,016		$	78,283	$	144,533		$	153,387
Translation adjustments		(7,551	)		14,045		(66,275	)		86,011
Pension liability remeasurement		—			11,824		—			11,824
Unrealized investment (loss) gain		(3,492	)		2,452		(4,616	)		790
Total comprehensive income	$	52,973		$	106,604	$	73,642		$	252,012

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Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Reconciliation of basic average common shares outstanding to diluted average common shares outstanding

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Net income	$	64,016	$	78,283	$	144,533	$	153,387
Basic average common shares outstanding		175,830		174,664		175,656		174,510
Effect of dilutive stock options		1,155		892		1,122		819
Diluted weighted average common shares outstanding		176,985		175,556		176,778		175,329
Earnings per share:
Basic	$	0.36	$	0.45	$	0.82	$	0.88
Diluted	$	0.36	$	0.45	$	0.82	$	0.88

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Contingencies

6 Months Ended

Dec. 31, 2011

Contingencies [Abstract]

Contingencies

14. Contingencies

We are currently a party to various legal proceedings, claims and investigations including those disclosed in this note. While management presently believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially adversely impact our financial position or overall trends in operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. If unfavorable final outcomes were to occur, then there exists the possibility of a material adverse impact.

Employment and Benefits Litigation

In 2009, Molex Automotive SARL (MAS), decided to close a facility it operated in Villemur-sur-Tarn, France. MAS submitted a social plan to MAS’s labor representatives providing for payments to approximately 280 terminated employees. This social plan was adopted by MAS in 2009 and payments were made to those employees until September 2010. In September 2010, former employees of MAS who were covered under the social plan filed suit against MAS and AGS (a state fund for wage guarantee) in the Toulouse Labor Court, requesting additional compensation. The total amount sought by the former employees is approximately €24.0 million ($31.1 million). Molex International initiated liquidation of MAS, and pursuant to a court proceeding, a liquidator was appointed in November 2010. One of the liquidator’s responsibilities is to assess and respond to the lawsuits involving MAS. In June 2011, the former employees of MAS noticed Molex Incorporated (Molex) as a defendant to the Toulouse Labor Court proceedings. In their court submission, the former employees claim that Molex was a co-employer of the former employees and thus jointly liable for any additional compensation the court awards. The former employees also claim that there was no economic justification for their dismissal, that MAS decided to close the facility before it consulted with the employees and their representatives and that MAS did not adequately comply with its obligation to assist the terminated employees in obtaining alternative employment. The liquidator has filed a submission on behalf of MAS and argues that the dismissal was economically justified, that the former employees have not proven the damages they are seeking but nonetheless Molex was co-employer and thus liable for any additional payments that may be awarded to the former employees. AGS filed its submission, adopting essentially the same substantive position as the liquidator on the dismissal of the former employees but arguing that Molex was the employer.

Molex filed its briefs in reply on January 6, 2012 arguing the plaintiff’s claims be dismissed. In the reply briefs, Molex argued it was not the co-employer of the plaintiffs and the court should find that it lacks jurisdiction over Molex to hear the dispute. In the alternative, Molex argued there was no breach of the information consultation process with the employees and their representatives, the dismissals were valid and based on economic grounds, MAS complied with its redeployment obligations and the court dismiss the claims for damages. Molex also argued if the court were to award compensation, then any judgment against Molex be several but not jointly with MAS, and the amount awarded to plaintiffs not exceed six months’ salary, approximately €2.0 million ($2.6 million). The Toulouse Labor Court has scheduled two hearings, one on March 5, 2012 for employees who fall within the executives section and another on April 5, 2012 for all other employees. We intend to vigorously contest the attempt by the former employees to seek additional compensation from Molex.

Molex Japan Co., Ltd

As we previously reported in our fiscal 2010 Annual Report on Form 10-K, we launched an investigation into unauthorized activities at Molex Japan Co., Ltd. in April 2010. We learned that an individual working in Molex Japan’s finance group obtained unauthorized loans from third party lenders, that included in at least one instance the attempted unauthorized pledge of Molex Japan facilities as security, in Molex Japan’s name that were used to cover losses resulting from unauthorized trading, including margin trading, in Molex Japan’s name. We also learned that the individual misappropriated funds from Molex Japan’s accounts to cover losses from unauthorized trading. The individual admitted to forging documentation in arranging and concealing the transactions. We retained outside legal counsel, and they retained forensic accountants, to investigate the matter. The investigation has been completed.

On August 31, 2010, Mizuho Bank (Mizuho), which holds the unauthorized loans, filed a complaint in Tokyo District Court requesting the court to find Molex Japan liable for the payment of the outstanding unauthorized loans and to enter a judgment for such payment. Mizuho is claiming payment of outstanding principal borrowings of ¥3 billion ($38.5 million), ¥5 billion ($64.2 million), ¥5 billion ($64.2 million) and ¥2 billion ($25.7 million), other loan-related expenses of approximately ¥106 million ($1.4 million) and interest and delay damages of approximately ¥3.5 billion ($44.5 million) as of December 31, 2011. On October 13, 2010, Molex Japan filed a written answer requesting the court to dismiss the complaint and subsequently both parties have submitted additional briefs to the court. In addition, the parties have begun to submit witness statements. The next court hearing is scheduled for February 29, 2012. We intend to vigorously contest the enforceability of the outstanding unauthorized loans and any attempt by the lender to obtain payment. See Note 2 for accounting treatment of the accrual for unauthorized activities in Japan.

As we reported on April 29, 2011, the Securities and Exchange Commission (the SEC) has informed us that the SEC has issued a formal order of private investigation in connection with the activities in Molex Japan. We are fully cooperating with the SEC’s investigation.

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Income Taxes

6 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

10. Income Taxes

The effective tax rate was 33.7% for the three months ended December 31, 2011 and 30.3% for the three months ended December 31, 2010. During the three months ended December 31, 2011, we recorded a one-time charge for additional income tax expense of $2.7 million. This charge reflects the cumulative effect of a reduction in future tax benefits from deferred tax assets in Japan resulting from the decrease in the Japanese statutory corporate tax rate. The reduction in the Japanese statutory tax rate was enacted in November 2011.

We are subject to tax in U.S. Federal, state and foreign tax jurisdictions. We have substantially completed all U.S. federal income tax matters for tax years through 2007. The tax years 2008 and after remain open to examination by all major taxing jurisdictions to which we are subject.

It is our practice to recognize interest and penalties related to income tax matters in tax expense. As of December 31, 2011, there were no material interest or penalty amounts to accrue.

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Pensions and Other Postretirement Benefits

6 Months Ended

Dec. 31, 2011

Pensions and Other Postretirement Benefits [Abstract]

Pensions and Other Postretirement Benefits

8. Pensions and Other Postretirement Benefits

The components of pension benefit cost are as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Service cost	$	1,381		$	451		$	2,762		$	2,648
Interest cost		2,123			487			4,246			2,454
Expected return on plan assets		(2,166	)		(472	)		(4,332	)		(2,284	)
Amortization of prior service cost		65			13			130			66
Recognized actuarial losses		290			893			580			1,786
Amortization of transition obligation		10			9			20			18
Benefit cost	$	1,703		$	1,381		$	3,406		$	4,688

The components of retiree health care benefit cost are as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Service cost	$	274		$	342		$	548		$	684
Interest cost		586			617			1,172			1,234
Amortization of prior service cost		(516	)		(516	)		(1,032	)		(1,032	)
Recognized actuarial losses		82			333			164			666
Benefit cost	$	426		$	776		$	852		$	1,552

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Debt

6 Months Ended

Dec. 31, 2011

Debt [Abstract]

Debt

9. Debt

Total debt consisted of the following (in thousands):

	Average Interest Rate	Maturity	December 31, 2011		June 30, 2011
Long-term debt:
Private Placement	2.91 – 4.28%	2016 – 2021	$	150,000	$	—
U.S. Credit Facility	1.77%	2016		40,000		185,000
Unsecured bonds and term loans	1.31 – 1.65%	2012 – 2013		65,394		89,342
Other debt	Varies	2012 – 2013		1,331		1,528
Total long-term debt				256,725		275,870
Less current portion of long-term debt:
Unsecured bonds and term loans	1.31 – 1.65%			59,043		52,156
Other debt	Varies			1,011		920
Long-term debt, less current portion				196,671		222,794
Short-term borrowings
Overdraft loan	2.48%	2012		64,150		62,060
Other short-term borrowings	Varies			3,427		4,628
Total short-term borrowings				67,577		66,688
Total debt			$	324,302	$	342,558

On August 18, 2011, we issued senior notes totaling $150.0 million through an unregistered, private placement of debt (the Private Placement). The Private Placement consists of three $50.0 million series notes: Series A with an interest rate of 2.91% matures on August 18, 2016; Series B with an interest rate of 3.59% matures on August 18, 2018; and Series C with an interest rate of 4.28% matures on August 18, 2021. The Note Purchase Agreement contains customary covenants regarding liens, debt, substantial asset sales and mergers. The Note Purchase Agreement also requires us to maintain financial covenants pertaining to, among other things, our consolidated leverage and interest rate coverage. As of December 31, 2011, we were in compliance with these covenants and the balance of the senior notes was $150.0 million.

In June 2009, we entered into a $195.0 million unsecured, three-year revolving credit facility in the United States, amended in January 2010, September 2010 and March 2011, that was initially scheduled to mature in June 2012 (the U.S. Credit Facility). In connection with the September 2010 amendment, we increased the credit line on the U.S. Credit Facility to $270.0 million. In March 2011, we further amended the credit facility to increase the credit line to $350.0 million and extend the term to March 2016. Borrowings under the U.S. Credit Facility bear interest at a fluctuating interest rate (based on London InterBank Offered Rate) plus an applicable percentage based on our consolidated leverage. The applicable percentage was 150 basis points as of December 31, 2011. The Credit Agreement contains customary covenants regarding liens, debt, substantial asset sales and mergers, dividends and investments. The Credit Agreement also requires us to maintain financial covenants pertaining to, among other things, our consolidated leverage and fixed charge coverage. As of December 31, 2011, we were in compliance with these covenants and had outstanding borrowings of $40.0 million.

In September 2011, Molex Japan renewed a ¥5.0 billion overdraft loan, with a six month term and an interest rate of approximately 2.48%. At December 31, 2011, the balance of the overdraft loan, which requires full repayment by the end of the term if not renewed, approximated $64.2 million.

In March 2010, Molex Japan entered into a ¥3.0 billion syndicated term loan for three years, with interest rates equivalent to the six month Tokyo Interbank Offered Rate plus 75 basis points and scheduled principal payments of ¥0.5 billion every six months. At December 31, 2011, the balance of the syndicated term loan approximated $19.2 million, of which $12.9 million was current.

In September 2009, Molex Japan issued unsecured bonds totaling ¥10.0 billion with a term of three years, an interest rate of approximately 1.65% and scheduled principal payments of ¥1.6 billion every six months. At December 31, 2011, the outstanding balance of the unsecured bonds approximated $46.2 million which is classified as current.

Certain assets, including equipment, secure a portion of our long-term debt. Principal payments on long-term debt obligations are due in the following calendar years (in thousands):

2012	$	60,054
2013		6,671
2014		—
2015		—
2016		90,000
Thereafter		100,000
Total long-term debt obligations	$	256,725

We had available lines of credit totaling $405.7 million at December 31, 2011, including a $350.0 million unsecured, five-year revolving credit facility with $310.0 million available as of December 31, 2011. The lines of credit expire between 2012 and 2021.

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Fair Value Measurements

6 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

11. Fair Value Measurements

The following table summarizes our financial assets and liabilities as of December 31, 2011, which are measured at fair value on a recurring basis (in thousands):

	Total Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale and trading securities	$	23,325	$	23,325	$	—	$	—
Derivative financial instruments, net		5,896		—		5,896		—

We determine the fair value of our marketable and available for sale securities based on quoted market prices (Level 1). We generally use derivatives for hedging purposes, which are valued based on Level 2 inputs in the fair value hierarchy. The fair value of our financial instruments is determined by a mark-to-market valuation based on forward curves using observable market prices.

The carrying value of our long-term debt approximates fair value.

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Acquisitions (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2011
Acquisitions (Textual) [Abstract]
Purchase of asset by the company	$ 24.0	$ 24.6
Goodwill recorded	18.0	14.6
Contingent consideration		$ 5.8

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New Accounting Pronouncements (Policies)

6 Months Ended

Dec. 31, 2011

New Accounting Pronouncements [Abstract]

Goodwill for impairment

In September 2011, the Financial Accounting Standards Board (the FASB) issued updated guidance on the periodic testing of goodwill for impairment. This guidance will allow companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This new guidance is effective for us beginning July 1, 2012, with early adoption permitted. This new guidance will not have a material impact on our consolidated financial statements.

Comprehensive Income

In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220). This new guidance requires the components of net income and other comprehensive income to be either presented in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. This new guidance eliminates the current option to report other comprehensive income and its components in the statement of stockholders’ equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for us for the quarter ended September 30, 2012 and will amend our presentation of the components of comprehensive income.

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Pensions And Other Postretirement Benefits (Tables)

6 Months Ended

Dec. 31, 2011

Defined Benefit Plan Disclosure [Line Items]

Components of pension and retiree health care benefit cost

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Service cost	$	1,381		$	451		$	2,762		$	2,648
Interest cost		2,123			487			4,246			2,454
Expected return on plan assets		(2,166	)		(472	)		(4,332	)		(2,284	)
Amortization of prior service cost		65			13			130			66
Recognized actuarial losses		290			893			580			1,786
Amortization of transition obligation		10			9			20			18
Benefit cost	$	1,703		$	1,381		$	3,406		$	4,688

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Service cost	$	274		$	342		$	548		$	684
Interest cost		586			617			1,172			1,234
Amortization of prior service cost		(516	)		(516	)		(1,032	)		(1,032	)
Recognized actuarial losses		82			333			164			666
Benefit cost	$	426		$	776		$	852		$	1,552

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Segment and Related Information (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated total assets	$ 3,570,118	$ 3,597,852
Other current assets	2,048,870	2,055,345
Segment Assets [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated total assets	2,396,196	2,515,850
Other Current Assets [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Other current assets	788,409	707,943
Other non current assets [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Other non current assets	$ 385,513	$ 374,059

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Debt (Details Textual)	1 Months Ended	6 Months Ended													6 Months Ended
	Mar. 31, 2010 JPY (¥)	Dec. 31, 2011 USD ($)	Sep. 30, 2011 JPY (¥)	Aug. 18, 2011 USD ($)	Jun. 30, 2011 USD ($)	Sep. 30, 2009 JPY (¥)	Aug. 18, 2011 Senior notes matures on Aug 18, 2016 [Member] USD ($)	Aug. 18, 2011 Senior notes matures on Aug 18 ,2018 [Member] USD ($)	Aug. 18, 2011 Senior notes matures on Aug 18, 2021 [Member] USD ($)	Dec. 31, 2011 U.S Credit Facility [Member] USD ($)	Mar. 31, 2011 U.S Credit Facility [Member] USD ($)	Sep. 30, 2010 U.S Credit Facility [Member] USD ($)	Jun. 30, 2009 U.S Credit Facility [Member] USD ($)	Dec. 31, 2011 Overdraft loans [Member]	Sep. 30, 2011 Syndicated term loan [Member] JPY (¥)	Mar. 31, 2011 Syndicated term loan [Member] JPY (¥)	Sep. 30, 2010 Syndicated term loan [Member] JPY (¥)	Sep. 30, 2011 Unsecured bonds [Member] JPY (¥)	Mar. 31, 2011 Unsecured bonds [Member] JPY (¥)	Sep. 30, 2010 Unsecured bonds [Member] JPY (¥)	Mar. 31, 2010 Unsecured bonds [Member] JPY (¥)	Sep. 30, 2009 Unsecured bonds [Member]
Debt Instrument [Line Items]
Senior notes issued				$ 150,000,000			$ 50,000,000	$ 50,000,000	$ 50,000,000
Interest rate, stated percentage							2.91%	3.59%	4.28%	1.77%				2.48%								1.65%
Revolving credit facility		350,000,000									350,000,000	270,000,000	195,000,000
Applicable percentage based on consolidated leverage	0.75%									1.50%
Line of credit facility amount outstanding										40,000,000
Scheduled principal payment															500,000,000	500,000,000	500,000,000	1,600,000,000	1,600,000,000	1,600,000,000	1,600,000,000
Maturity period of revolving credit facility		5 years
Debt (Textual) [Abstract]
Senior notes, outstanding		150,000,000
Overdraft loans		64,150,000	5,000,000,000		62,060,000
Maturity period of overdraft loan		6 months
Syndicated term loan to bank	3,000,000,000	19,200,000
Maturity period of term loan		3 years
Syndicated term loan frequency of principle payment		6 months
Syndicated term loan to bank, current		12,900,000
Term loan interest rate description	interest rates equivalent to 6 month Tokyo Interbank Offered Rate (TIBOR) plus 75 basis points
Unsecured bonds						10,000,000,000
Maturity period of unsecured bonds		3 years
Unsecured bond outstanding		46,200,000
Unsecured bond current		46,200,000
Available lines of credit expiring between 2012 and 2021		405,700,000
Available lines of credit expiring between 2012 and 2021, unsecured portion		$ 310,000,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Operating activities:
Net income	$ 144,533	$ 153,387
Add non-cash items included in net income:
Depreciation and amortization	121,174	120,804
Share-based compensation	11,402	11,460
Other non-cash items	5,213	7,275
Changes in assets and liabilities:
Accounts receivable	94,400	3,221
Inventories	(26,442)	(67,631)
Accounts payable	(40,976)	(36,945)
Other current assets and liabilities	(7,183)	(11,280)
Other assets and liabilities	(10,608)	2,184
Cash provided from operating activities	291,513	182,475
Investing activities:
Capital expenditures	(95,055)	(132,728)
Acquisitions	(24,000)
Proceeds from sales of property, plant and equipment	2,202	1,400
Proceeds from sales or maturities of marketable securities	6,553	5,203
Purchases of marketable securities	(4,787)	(3,612)
Cash used for investing activities	(115,087)	(129,737)
Financing activities:
Proceeds from revolving credit facility	75,000	50,000
Payments on revolving credit facility	(220,000)	(15,000)
Payments on short-term loans	(27,389)	(11,479)
Proceeds from issuance of long-term debt	150,000
Payments of long-term debt	(287)	(24,572)
Cash dividends paid	(70,186)	(53,186)
Exercise of stock options	2,630	1,820
Other financing activities	(2,087)	(1,954)
Cash used for financing activities	(92,319)	(54,371)
Effect of exchange rate changes on cash	(9,370)	17,671
Net increase in cash and cash equivalents	74,737	16,038
Cash and cash equivalents, beginning of period	532,599	376,352
Cash and cash equivalents, end of period	$ 607,336	$ 392,390

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Earnings Per Share

6 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

A reconciliation of the basic average common shares outstanding to diluted average common shares outstanding is as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Net income	$	64,016	$	78,283	$	144,533	$	153,387
Basic average common shares outstanding		175,830		174,664		175,656		174,510
Effect of dilutive stock options		1,155		892		1,122		819
Diluted weighted average common shares outstanding		176,985		175,556		176,778		175,329
Earnings per share:
Basic	$	0.36	$	0.45	$	0.82	$	0.88
Diluted	$	0.36	$	0.45	$	0.82	$	0.88

Excluded from the computations above were anti-dilutive shares of 5.1 million and 5.8 million for the three and six months ended December 31, 2011, respectively, compared with 7.4 million and 6.4 million for the same prior year periods.

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Debt (Tables)

6 Months Ended

Dec. 31, 2011

Debt [Abstract]

Components of debt

	Average Interest Rate	Maturity	December 31, 2011		June 30, 2011
Long-term debt:
Private Placement	2.91 – 4.28%	2016 – 2021	$	150,000	$	—
U.S. Credit Facility	1.77%	2016		40,000		185,000
Unsecured bonds and term loans	1.31 – 1.65%	2012 – 2013		65,394		89,342
Other debt	Varies	2012 – 2013		1,331		1,528
Total long-term debt				256,725		275,870
Less current portion of long-term debt:
Unsecured bonds and term loans	1.31 – 1.65%			59,043		52,156
Other debt	Varies			1,011		920
Long-term debt, less current portion				196,671		222,794
Short-term borrowings
Overdraft loan	2.48%	2012		64,150		62,060
Other short-term borrowings	Varies			3,427		4,628
Total short-term borrowings				67,577		66,688
Total debt			$	324,302	$	342,558

Principal payments on long-term debt obligations

2012	$	60,054
2013		6,671
2014		—
2015		—
2016		90,000
Thereafter		100,000
Total long-term debt obligations	$	256,725

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Pensions And Other Postretirement Benefits (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Pension benefit cost [Member]
Pension benefit cost
Service cost	$ 1,381	$ 451	$ 2,762	$ 2,648
Interest cost	2,123	487	4,246	2,454
Expected return on plan assets	(2,166)	(472)	(4,332)	(2,284)
Amortization of prior service cost	65	13	130	66
Recognized actuarial losses	290	893	580	1,786
Amortization of transition obligation	10	9	20	18
Benefit cost	1,703	1,381	3,406	4,688
Retiree health care benefit cost [Member]
Pension benefit cost
Service cost	274	342	548	684
Interest cost	586	617	1,172	1,234
Amortization of prior service cost	(516)	(516)	(1,032)	(1,032)
Recognized actuarial losses	82	333	164	666
Benefit cost	$ 426	$ 776	$ 852	$ 1,552

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Segments and Related Information

6 Months Ended

Dec. 31, 2011

Segments and Related Information [Abstract]

Segment and Related Information

15. Segments and Related Information

Our reportable segments consist of the Connector and Custom & Electrical segments:

• The Connector segment designs and manufactures products for high-speed, high-density, high signal-integrity applications as well as fine-pitch, low-profile connectors for the consumer and commercial markets. It also designs and manufactures products that withstand environments such as heat, cold, dust, dirt, liquid and vibration for automotive and other transportation applications.

• The Custom & Electrical segment designs and manufactures integrated and customizable electronic components, including connectors, across all industries that provide original, differentiated solutions to customer requirements. It also leverages expertise in the use of signal, power and interface technology in industrial automation and other harsh environment applications.

Information by segment is summarized as follows (in thousands):

	Connector		Custom & Electrical		Corporate & Other			Total
For the three months ended:
December 31, 2011:
Revenues from external customers	$	602,885	$	254,713	$	—		$	857,598
Income (loss) from operations		77,351		47,597		(27,807	)		97,141
Depreciation & amortization		49,333		6,753		3,847			59,933
Capital expenditures		43,673		4,235		4,343			52,251
December 31, 2010:
Revenues from external customers	$	665,230	$	236,046	$	189		$	901,465
Income (loss) from operations		105,915		32,005		(28,632	)		109,288
Depreciation & amortization		50,669		6,886		4,141			61,696
Capital expenditures		58,229		1,526		1,781			61,536
For the six months ended:
December 31, 2011:
Revenues from external customers	$	1,281,665	$	511,507	$	411		$	1,793,583
Income (loss) from operations		183,613		89,505		(55,396	)		217,722
Depreciation & amortization		99,408		13,880		7,886			121,174
Capital expenditures		78,375		11,149		5,531			95,055
December 31, 2010:
Revenues from external customers	$	1,326,366	$	472,077	$	694		$	1,799,137
Income (loss) from operations		204,562		74,571		(57,367	)		221,766
Depreciation & amortization		98,205		14,409		8,190			120,804
Capital expenditures		116,985		8,780		6,963			132,728

Corporate & Other includes expenses primarily related to corporate operations that are not allocated to segments such as executive management, human resources, legal, finance and information technology. We also include in Corporate & Other the investigative and legal costs related to the unauthorized activities in Japan and the assets of certain plants that are not specific to a particular division.

Segment assets, which are comprised of accounts receivable, inventory and fixed assets, are summarized as follows (in thousands):

	Connector		Custom & Electrical		Corporate & Other		Total
December 31, 2011	$	1,818,260	$	468,381	$	109,555	$	2,396,196
June 30, 2011		1,913,675		503,443		98,732		2,515,850

The reconciliation of segment assets to consolidated total assets is as follows (in thousands):

	Dec. 31, 2011		June 30, 2011
Segment assets	$	2,396,196	$	2,515,850
Other current assets		788,409		707,943
Other non-current assets		385,513		374,059
Consolidated total assets	$	3,570,118	$	3,597,852