XML 46 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1
SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Mar. 31, 2017
Share-based compensation  
Schedule of share-based compensation expense
The following table summarizes the Company's share-based compensation expense for all Equity Incentive Plans:

 
Fiscal Year Ended March 31,
 
2017
 
2016
 
2015
 
(In thousands)
Cost of sales
$
10,023

 
$
8,986

 
$
7,503

Selling, general and administrative expenses
72,243

 
68,594

 
42,767

Total share-based compensation expense
$
82,266

 
$
77,580

 
$
50,270
2010 Equity Incentive Plan  
Share-based compensation  
Summary of option activity
The following is a summary of option activity for the Company's 2010 Plan ("Price" reflects the weighted-average exercise price):
 
Fiscal Year Ended March 31,
 
2017
2016
2015
 
Options
 
Price
 
Options
 
Price
 
Options
 
Price
Outstanding, beginning of fiscal year
2,369,636

 
$
8.31

 
15,992,894

 
$
7.81

 
23,612,872

 
$
8.57

Granted
—

 
—

 
—

 
—

 
15,000

 
11.11

Exercised
(1,573,356
)
 
6.89

 
(10,006,774
)
 
6.10

 
(3,600,900
)
 
6.53

Forfeited
(653,953
)
 
12.39

 
(3,616,484
)
 
12.23

 
(4,034,078
)
 
13.17

Outstanding, end of fiscal year
142,327

 
$
8.97

 
2,369,636

 
$
8.31

 
15,992,894

 
$
7.81

Options exercisable, end of fiscal year
138,950

 
$
8.93

 
2,359,527

 
$
8.30

 
15,959,173

 
$
7.81
Schedule of composition of options outstanding and exercisable
The following table presents the composition of options outstanding and exercisable under the 2010 Plan as of March 31, 2017:
 
 
Options Outstanding
Options Exercisable
Range of Exercise Prices
 
Number of
Shares
Outstanding
 
Weighted
Average
Remaining
Contractual
Life
(In Years)
 
Weighted
Average
Exercise
Price
 
Number of
Shares
Exercisable
 
Weighted
Average
Remaining
Contractual
Life
(In Years)
 
Weighted
Average
Exercise
Price
$3.39 - $5.75
 
15,759

 
0.42
 
$
5.03

 
15,759

 
0.42
 
$
5.03

$5.87 - $7.07
 
11,003

 
1.43
 
6.63

 
11,003

 
1.43
 
6.63

$7.08 - $10.59
 
62,564

 
0.97
 
8.16

 
62,564

 
0.97
 
8.16

$10.67 - $11.41
 
45,501

 
1.14
 
11.16

 
42,124

 
0.91
 
11.16

$11.53 - $13.98
 
7,500

 
0.61
 
12.47

 
7,500

 
0.61
 
12.47

$3.39 - $13.98
 
142,327

 
0.99
 
$
8.97

 
138,950

 
0.91
 
$
8.93

Options vested and expected to vest
 
142,014

 
0.98
 
$
8.97

 
 
 

 
Schedule of share bonus award activity
The following table summarizes the Company's share bonus award activity under the 2010 Plan ("Price" reflects the weighted-average grant-date fair value):
 
Fiscal Year Ended March 31,
 
2017
2016
2015
 
Shares
 
Price
 
Shares
 
Price
 
Shares
 
Price
Unvested share bonus awards outstanding, beginning of fiscal year
17,000,076


$
10.77


18,993,252


$
9.01


21,848,120

 
$
7.32

Granted (1)
6,578,366


13.46


7,619,722


12.23


6,963,125

 
11.75

Vested (1)
(6,922,946
)

9.44


(8,529,378
)

7.93


(7,246,056
)
 
6.97

Forfeited
(956,914
)

11.20


(1,083,520
)

9.67


(2,571,937
)
 
7.70

Unvested share bonus awards outstanding, end of fiscal year
15,698,582


$
12.44


17,000,076


$
10.77


18,993,252

 
$
9.01



(1) Excluded from the fiscal year 2017 amounts are 1.7 million of share bonus awards representing the number of awards achieved above target levels based on the achievement of certain market conditions, as further described in the table below. These awards were issued and immediately vested in accordance with the terms and conditions of the underlying awards.
Schedule of share bonus awards with market conditions
Of the 15.7 million unvested share bonus awards outstanding under the 2010 Plan as of the fiscal year ended 2017, approximately 2.1 million of unvested share bonus awards under the 2010 Plan represents the target amount of grants made to certain key employees whereby vesting is contingent on meeting certain market conditions summarized as follows:

 
 
Targeted
number of
awards as of
March 31, 2017
(in shares)
 
 
 
 
 
Range of shares
that may be issued
 
 
 
 
Average
grant date
fair value
(per share)
 
 
 
 
 
 
 
 
Assessment dates
Year of grant
 
Market condition
 
Minimum
 
Maximum
 
Fiscal 2017
 
722,213

 
$
17.57

 
Vesting ranges from zero to 200% based on measurement of Flex's total shareholder return against both the Standard and Poor's ("S&P") 500 Composite Index and an Extended Electronics Manufacturing Services ("EMS") Group Index.
 
—

 
1,444,426

 
May 2019
Fiscal 2016
 
712,977

 
$
14.96

 
Vesting ranges from zero to 200% based on measurement of Flex's total shareholder return against both the S&P 500 Composite Index and an EMS Group Index.
 
—

 
1,425,954

 
May 2018
Fiscal 2015
 
686,520

 
$
14.77

 
Vesting ranges from zero to 200% based on measurement of Flex's total shareholder return against both the S&P 500 Composite Index and an EMS Group Index.
 
—

 
1,373,040

 
May 2017
Totals
 
2,121,710

 
 

 
 
 
 

 
4,243,420

 
 
2010 Equity Incentive Plan | Options  
Share-based compensation  
Schedule of weighted-average assumptions
The fair value of the Company's share options granted to employees for fiscal year 2015 was estimated using the following weighted-average assumptions:

 
Fiscal Year Ended
March 31,
 
2015
Expected term
6.3 years
Expected volatility
46.9%
Expected dividends
0.0%
Risk-free interest rate
2.3%
Weighted-average fair value
$4.85
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions  
Share-based compensation  
Schedule of weighted-average assumptions
The fair value of the Company's share-bonus awards under the 2010 Plan, whereby vesting is contingent on meeting certain market conditions, for fiscal years 2017, 2016 and 2015 was estimated using the following weighted-average assumptions:

 
Fiscal Year Ended March 31,
 
2017
 
2016
 
2015
Expected volatility
25.8
%
 
26.0
%
 
29.4
%
Average peer volatility
25.1
%
 
23.0
%
 
25.9
%
Average peer correlation
0.6

 
0.6

 
0.6

Expected dividends
0.0
%
 
0.0
%
 
0.0
%
Risk-free interest rate
0.9
%
 
1.2
%
 
0.9
%
2014 NEXTracker Equity Incentive Plan  
Share-based compensation  
Schedule of weighted-average assumptions
The fair value of the Company's share options granted to employees under the NEXTracker Plan for fiscal year 2016 was estimated using the following weighted-average assumptions:
 
Fiscal Year Ended
March 31, 2016
Expected term
2.9 years
Expected volatility
28.8%
Expected dividends
0.0%
Risk-free interest rate
0.9%
Weighted-average fair value
$7.76
Summary of option activity
The following is a summary of option activity for the NEXTracker Plan ("Price" reflects the weighted-average exercise price):
 
Fiscal Year Ended March 31,
 
2017
 
2016
 
Options

Price
 
Options
 
Price
Outstanding, beginning of fiscal year
2,741,854


$
3.44

 
—

 
$
—

Granted
—


—

 
3,205,806

 
3.28

Exercised
(709,845
)

2.24

 
(237,380
)
 
0.99

Forfeited
(395,993
)

4.64

 
(226,572
)
 
3.75

Outstanding, end of fiscal year
1,636,016


$
3.61

 
2,741,854

 
$
3.44

Options exercisable, end of fiscal year
369,015


$
5.00

 
223,869

 
$
4.95
Schedule of composition of options outstanding and exercisable
The following table presents the composition of options outstanding and exercisable under the NEXTracker Plan as of March 31, 2017:


Options Outstanding

Options Exercisable
Range of Exercise Prices

Number of
Shares
Outstanding

Weighted
Average
Remaining
Contractual
Life
(In Years)

Weighted
Average
Exercise
Price

Number of
Shares
Exercisable

Weighted
Average
Remaining
Contractual
Life
(In Years)

Weighted
Average
Exercise
Price
$0.08 - $5.24

1,223,059


8.50

$
1.30


229,584


8.50

$
1.70

$5.25 - $10.65

412,957


8.50

10.65


139,431


8.50

10.65

$0.08 - $10.65

1,636,016


8.50

$
3.61


369,015


8.50

$
5.00

Options vested and expected to vest

1,636,016


8.50

$
3.61
2014 NEXTracker Equity Incentive Plan | Share bonus awards  
Share-based compensation  
Schedule of share bonus award activity
The following table summarizes the Company's share bonus award activity under the NEXTracker Plan ("Price" reflects the weighted-average grant-date fair value):

Fiscal Year Ended March 31,

2017
2016

Shares

Price
Shares
 
Price
Unvested share bonus awards outstanding, beginning of fiscal year
2,309,096


$
10.27

—

 
$
—

Granted
—


—

2,393,195

 
10.27

Vested
(705,738
)

10.19

(31,925
)
 
10.27

Forfeited
(59,921
)

10.27

(52,174
)
 
10.27

Unvested share bonus awards outstanding, end of fiscal year
1,543,437


$
10.23

2,309,096

 
$
10.27