SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Mar. 31, 2017

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets as of March 31, 2017

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	561,555	$	169,083	$	1,100,037	$	—		$	1,830,675
Accounts receivable	—		875,842		1,316,862		—			2,192,704
Inventories	—		1,523,578		1,872,884		—			3,396,462
Inter company receivable	10,951,993		7,527,058		14,575,412		(33,054,463		)	—
Other current assets	683		181,602		785,650		—			967,935
Total current assets	11,514,231		10,277,163		19,650,845		(33,054,463		)	8,387,776
Property and equipment, net	—		601,918		1,715,108		—			2,317,026
Goodwill and other intangible assets, net	1,214		119,255		1,226,579		—			1,347,048
Other assets	2,218,599		228,343		2,041,373		(3,946,802		)	541,513
Investment in subsidiaries	3,071,296		3,543,990		16,029,346		(22,644,632		)	—
Total assets	$	16,805,340	$	14,770,669	$	40,663,251	$	(59,645,897	)	$	12,593,363
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	56,177	$	977	$	4,380	$	—		$	61,534
Accounts payable	—		1,758,660		2,726,248		—			4,484,908
Accrued payroll	—		101,206		243,039		—			344,245
Inter company payable	11,282,477		9,882,088		11,889,898		(33,054,463		)	—
Other current liabilities	23,851		776,280		813,809		—			1,613,940
Total current liabilities	11,362,505		12,519,211		15,677,374		(33,054,463		)	6,504,627
Long term liabilities	2,798,302		2,156,994		2,401,966		(3,946,802		)	3,410,460
Flex Ltd. shareholders' equity	2,644,533		94,464		22,550,168		(22,644,632		)	2,644,533
Noncontrolling interests	—		—		33,743		—			33,743
Total shareholders' equity	2,644,533		94,464		22,583,911		(22,644,632		)	2,678,276
Total liabilities and shareholders' equity	$	16,805,340	$	14,770,669	$	40,663,251	$	(59,645,897	)	$	12,593,363

Condensed Consolidating Balance Sheets as of March 31, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	734,869	$	148,201		$	724,500	$	—		$	1,607,570
Accounts receivable	—		729,331			1,315,426		—			2,044,757
Inventories	—		1,482,410			2,009,246		—			3,491,656
Inter company receivable	9,105,728		5,568,392			12,404,722		(27,078,842		)	—
Other current assets	2,951		180,842			987,350		—			1,171,143
Total current assets	9,843,548		8,109,176			17,441,244		(27,078,842		)	8,315,126
Property and equipment, net	—		553,072			1,704,561		—			2,257,633
Goodwill and other intangible assets, net	175		60,895			1,284,750		—			1,345,820
Other assets	2,249,145		267,034			2,004,437		(4,054,214		)	466,402
Investment in subsidiaries	2,815,426		2,987,909			18,175,348		(23,978,683		)	—
Total assets	$	14,908,294	$	11,978,086		$	40,610,340	$	(55,111,739	)	$	12,384,981
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	5,384	$	—		$	65,166
Accounts payable	—		1,401,835			2,846,457		—			4,248,292
Accrued payroll	—		114,509			239,038		—			353,547
Inter company payable	9,562,405		7,999,335			9,517,102		(27,078,842		)	—
Other current liabilities	33,008		869,470			1,002,722		—			1,905,200
Total current liabilities	9,654,249		10,386,095			13,610,703		(27,078,842		)	6,572,205
Long term liabilities	2,683,173		2,063,988			2,514,299		(4,054,214		)	3,207,246
Flex Ltd. shareholders' equity	2,570,872		(471,997		)	24,450,680		(23,978,683		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders' equity	2,570,872		(471,997		)	24,485,338		(23,978,683		)	2,605,530
Total liabilities and shareholders' equity	$	14,908,294	$	11,978,086		$	40,610,340	$	(55,111,739	)	$	12,384,981

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	15,909,037		$	17,841,003		$	(9,887,106	)	$	23,862,934
Cost of sales	—			14,375,249			17,815,088			(9,887,106		)	22,303,231
Restructuring charges	—			16,908			21,850			—			38,758
Gross profit	—			1,516,880			4,065			—			1,520,945
Selling, general and administrative expenses	—			282,821			654,518			—			937,339
Intangible amortization	175			5,967			75,254			—			81,396
Restructuring charges	—			8,716			1,921			—			10,637
Interest and other, net	(195,848		)	1,102,341			(785,768		)	—			120,725
Income before income taxes	195,673			117,035			58,140			—			370,848
Provision for income taxes	11			23,629			27,644			—			51,284
Equity in earnings in subsidiaries	123,902			(244,696		)	233,325			(112,531		)	—
Net income (loss)	$	319,564		$	(151,290	)	$	263,821		$	(112,531	)	$	319,564

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	16,841,405		$	19,286,221		$	(11,708,741	)	$	24,418,885
Cost of sales	—			15,278,265			19,241,300			(11,708,741		)	22,810,824
Gross profit	—			1,563,140			44,921			—			1,608,061
Selling, general and administrative expenses	—			330,194			624,696			—			954,890
Intangible amortization	300			3,598			62,067			—			65,965
Interest and other, net	(191,859		)	1,016,302			(691,912		)	—			132,531
Income before income taxes	191,559			213,046			50,070			—			454,675
Provision for income taxes	26			(41,584		)	52,152			—			10,594
Equity in earnings in subsidiaries	252,548			(173,846		)	397,831			(476,533		)	—
Net income	$	444,081		$	80,784		$	395,749		$	(476,533	)	$	444,081

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	19,016,750	$	19,543,163		$	(12,411,997	)	$	26,147,916
Cost of sales	—			17,502,863		19,511,710			(12,411,997		)	24,602,576
Gross profit	—			1,513,887		31,453			—			1,545,340
Selling, general and administrative expenses	—			258,212		586,261			—			844,473
Intangible amortization	300			3,808		27,927			—			32,035
Interest and other, net	10,086			901,059		(912,968		)	—			(1,823		)
Income (loss) before income taxes	(10,386		)	350,808		330,233			—			670,655
Provision for income taxes	—			14,143		55,711			—			69,854
Equity in earnings in subsidiaries	611,187			564,105		471,575			(1,646,867		)	—
Net income	$	600,801		$	900,770	$	746,097		$	(1,646,867	)	$	600,801

Schedule of condensed consolidating statements of comprehensive income (loss)

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	319,564		$	(151,290	)	$	263,821	$	(112,531	)	$	319,564
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(1,324		)	103,335			44,421		(147,756		)	(1,324		)
Unrealized loss on derivative instruments and other, net of zero tax	9,096			4,819			9,096		(13,915		)	9,096
Comprehensive income (loss)	$	327,336		$	(43,136	)	$	317,338	$	(274,202	)	$	327,336

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	444,081	$	80,784		$	395,749		$	(476,533	)	$	444,081
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	17,846		(21,972		)	(15,735		)	37,707			17,846
Unrealized gain on derivative instruments and other, net of zero tax	26,744		15,188			26,744			(41,932		)	26,744
Comprehensive income	$	488,671	$	74,000		$	406,758		$	(480,758	)	$	488,671

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	600,801		$	900,770		$	746,097		$	(1,646,867	)	$	600,801
Other comprehensive loss:
Foreign currency translation adjustments, net of zero tax	(18,932		)	177,046			221,418			(398,464		)	(18,932		)
Unrealized loss on derivative instruments and other, net of zero tax	(35,417		)	(33,769		)	(35,417		)	69,186			(35,417		)
Comprehensive income	$	546,452		$	1,044,047		$	932,098		$	(1,976,145	)	$	546,452

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	144,580		$	47,905		$	957,424		$	—		$	1,149,909
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(182,132		)	(307,388		)	15			(489,505		)
Acquisition of businesses, net of cash acquired	—			(69,998		)	(119,086		)	—			(189,084		)
Proceeds from divestitures of business, net of cash held in divested business	—			30,655			6,076			—			36,731
Investing cash flows from (to) affiliates	(1,142,988		)	(3,440,099		)	159,426			4,423,661			—
Other investing activities, net	(61,212		)	(12,429		)	13,312			—			(60,329		)
Net cash used in investing activities	(1,204,200		)	(3,674,003		)	(247,660		)	4,423,676			(702,187		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	204,879			107,502			360			—			312,741
Repayments of bank borrowings and long-term debt and capital lease obligations	(128,967		)	(6,695		)	(6,068		)	—			(141,730		)
Payments for repurchases of ordinary shares	(349,532		)	—			—			—			(349,532		)
Proceeds from exercise of stock options	12,438			—			—			—			12,438
Financing cash flows from (to) affiliates	1,164,543			3,606,993			(347,860		)	(4,423,676		)	—
Other financing activities, net	30,000			(51,902		)	(54,122		)	—			(76,024		)
Net cash provided by financing activities	933,361			3,655,898			(407,690		)	(4,423,676		)	(242,107		)
Effect of exchange rates on cash and cash equivalents	(47,055		)	(8,918		)	73,463			—			17,490
Net increase (decrease) in cash and cash equivalents	(173,314		)	20,882			375,537			—			223,105
Cash and cash equivalents, beginning of period	734,869			148,201			724,500			—			1,607,570
Cash and cash equivalents, end of period	$	561,555		$	169,083		$	1,100,037		$	—		$	1,830,675

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	162,275		$	426,639		$	547,531		$	—		$	1,136,445
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(151,383		)	(345,584		)	9			(496,958		)
Acquisition of businesses, net of cash acquired	—			(809,272		)	(107,255		)	—			(916,527		)
Proceeds from divestitures of business, net of cash held in divested business	—			—			5,740			—			5,740
Investing cash flows to affiliates	(1,596,210		)	(1,587,365		)	(1,509,352		)	4,692,927			—
Other investing activities, net	(500		)	(31,011		)	42,880			—			11,369
Net cash used in investing activities	(1,596,710		)	(2,579,031		)	(1,913,571		)	4,692,936			(1,396,376		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	824,618			—			60,084			—			884,702
Repayments of bank borrowings and long-term debt and capital lease obligations	(179,920		)	(3,059		)	(7,242		)	—			(190,221		)
Payments for repurchases of ordinary shares	(420,317		)	—			—			—			(420,317		)
Proceeds from exercise of stock options	61,278			—			—			—			61,278
Financing cash flows from affiliates	1,240,145			2,143,568			1,309,223			(4,692,936		)	—
Other financing activities, net	—			(8,800		)	(77,000		)	—			(85,800		)
Net cash provided by financing activities	1,525,804			2,131,709			1,285,065			(4,692,936		)	249,642
Effect of exchange rates on cash and cash equivalents	34,529			612			(45,690		)	—			(10,549		)
Net increase (decrease) in cash and cash equivalents	125,898			(20,071		)	(126,665		)	—			(20,838		)
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	734,869		$	148,201		$	724,500		$	—		$	1,607,570

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(73,356	)	$	75,775		$	791,615		$	—		$	794,034
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(85,876		)	(153,833		)	(15		)	(239,724		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(20,589		)	(46,265		)	—			(66,854		)
Investing cash flows from (to) affiliates	(1,703,983		)	(1,900,810		)	796,493			2,808,300			—
Other investing activities, net	(1,500		)	(13,821		)	79,683			—			64,362
Net cash provided by (used in) investing activities	(1,705,483		)	(2,021,096		)	676,078			2,808,285			(242,216		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	303,000			4,737			11,805			—			319,542
Repayments of bank borrowings and long-term debt and capital lease obligations	(335,500		)	(3,127		)	(5,529		)	—			(344,156		)
Payments for early repurchase of long-term debt	—			—			—			—			—
Payments for repurchases of ordinary shares	(415,945		)	—			—			—			(415,945		)
Proceeds from exercise of stock options	23,497			—			11			—			23,508
Financing cash flows from (to) affiliates	2,420,952			1,904,164			(1,516,831		)	(2,808,285		)	—
Other financing activities, net	—			—			(98,966		)	—			(98,966		)
Net cash provided by (used in) financing activities	1,996,004			1,905,774			(1,609,510		)	(2,808,285		)	(516,017		)
Effect of exchange rates on cash and cash equivalents	(246,908		)	(2,643		)	248,430			—			(1,121		)
Net increase (decrease) in cash and cash equivalents	(29,743		)	(42,190		)	106,613			—			34,680
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	608,971		$	168,272		$	851,165		$	—		$	1,628,408