XML 44 R30.htm IDEA: XBRL DOCUMENT v3.22.1
SEGMENT REPORTING
 12 Months Ended
Mar. 31, 2022
Segment Reporting, Measurement Disclosures [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company's Chief Executive Officer is our CODM who evaluates how we allocate resources, assesses performance and make strategic and operational decisions. Based on such evaluation, the Company determined as of and for the period ended March 31, 2022, that Flex has three operating and reportable segments. See note 1 and note 7 for further details on the segment change that took place in the fourth quarter of fiscal year 2022.
The FAS segment is optimized for speed to market based on a highly flexible supply and manufacturing system. FAS is comprised of the following end markets that represent reporting units:
•Communications, Enterprise and Cloud, including data infrastructure, edge infrastructure and communications infrastructure;
•Lifestyle, including appliances, consumer packaging, floorcare, micro mobility and audio; and
•Consumer Devices, including mobile and high velocity consumer devices.
The FRS segment is optimized for longer product lifecycles requiring complex ramps with specialized production models and critical environments. FRS is comprised of the following end markets that represent reporting units:
•Automotive, including next generation mobility, autonomous, connectivity, electrification, and smart technologies;
•Health Solutions, including medical devices, medical equipment, and drug delivery; and
•Industrial, including capital equipment, industrial devices, and renewables and grid edge.
The Nextracker segment provides solar tracker technologies that optimize and increase energy production while reducing costs for significant plant return on investment.
•Nextracker, the leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Nextracker's products enable solar panels to follow the sun’s movement across the sky and optimize plant performance.
The determination of the separate operating and reporting segments is based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics.
An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, customer related asset impairments (recoveries), restructuring charges, legal and other. A portion of depreciation is allocated to the respective segments, together with other general corporate research and development and administrative expenses.
Selected financial information by segment is in the table below. Fiscal year 2021 and 2020 historical information has been recast to reflect the new operating and reportable segments, in the table below and in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."
Fiscal Year Ended March 31,
202220212020
(In millions)
Net sales:
Flex Agility Solutions$14,027 $13,493 $14,053 
Flex Reliability Solutions10,603 9,495 9,053 
Nextracker1,458 1,195 1,171 
Intersegment eliminations(47)(59)(67)
$26,041 $24,124 $24,210 
Segment income and reconciliation of operating income:
Flex Agility Solutions$605 $449 $369 
Flex Reliability Solutions546 484 474 
Nextracker90 178 168 
Corporate and Other(72)(80)(113)
Total segment income1,169 1,031 898 
Reconciling items:
Intangible amortization68 62 64 
Stock-based compensation91 79 71 
Customer related asset impairments (recoveries) (1)— (7)106 
Restructuring charges (Note 16)15 101 216 
Legal and other (2)23 1 26 
Operating income$972 $795 $415 

(1)Customer related asset impairments (recoveries) for fiscal years 2022 and 2021 were not material.

Customer related asset impairments for fiscal year 2020 primarily relate to non-cash impairments of certain property and equipment for customers from whom we have disengaged or were in the process of disengaging, additional provision for doubtful accounts receivable, charges for other asset impairments, and reserves for excess and obsolete inventory for certain customers experiencing financial difficulties and/or related to inventory that will not be recovered due to significant reductions in future customer demand.

(2)Legal and other consists of costs not directly related to core business results and may include matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other issues on a global basis as well as acquisition related costs and customer related asset recoveries. During the fourth quarter of fiscal year 2022, the Company accrued for certain loss contingencies where losses are considered probable and estimable offset by a gain upon successful settlement of certain supplier claims.
Legal and other during fiscal year 2021 primarily consists of costs accrued for certain loss contingencies where losses are considered probable and estimable, offset by a gain on the sale of real estate in the fourth quarter of fiscal year 2021 exited as a result of the disengagement of a certain customer in fiscal year 2020.

Legal and other during fiscal year 2020 primarily consists of direct and incremental costs associated with certain wind-down activities related to the disengagement of a certain customer primarily in China and India, offset by certain gains resulting from the recognition of prior year expenses paid to a government now considered probable of recovery and reasonably estimable due to a favorable tax ruling.
Corporate and other primarily includes corporate services costs that are not included in the CODM's assessment of the performance of each of the identified reporting segments.
The Company provides an overall platform of assets and services, which the segments utilize for the benefit of their various customers. The shared assets and services are contained within the Company's global manufacturing and design operations and include manufacturing and design facilities. Most of the underlying manufacturing and design assets are co-mingled in the operating campuses and are compatible to operate across segments and highly interchangeable throughout the platform. Given the highly interchangeable nature of the assets, they are not separately identified by segment nor reported by segment to the Company's CODM.
Property and equipment on a segment basis is not disclosed as it is not separately identified and is not internally reported by segment to the Company's CODM as described above. During fiscal years 2022, 2021 and 2020, depreciation expense included in the segments' measure of operating performance above is as follows.
Fiscal Year Ended March 31,
202220212020
(In millions)
Depreciation expense:
Flex Agility Solutions$184 $185 $218 
Flex Reliability Solutions204 210 170 
Nextracker3 2 3 
Corporate and Other18 25 31 
Total depreciation expense$409 $422 $422 

Geographic information of net sales is as follows:
Fiscal Year Ended March 31,
202220212020
(In millions)
Net sales by region:
Americas$10,839 42 %$9,672 40 %$10,066 42 %
Asia9,601 37 %9,326 39 %9,362 39 %
Europe5,601 21 %5,126 21 %4,782 19 %
$26,041 $24,124 $24,210 

Revenues are attributable to the country in which the product is manufactured, or service is provided.
During fiscal years 2022, 2021 and 2020, net sales generated from Singapore, the country of domicile, were approximately $518.9 million, $507.0 million and $574.6 million, respectively.
The following table summarizes the countries that accounted for more than 10% of net sales in fiscal years 2022, 2021, and 2020:
 Fiscal Year Ended March 31,
202220212020
 (In millions)
Net sales by country:
China$6,146 24 %$6,147 25 %$5,665 23 %
Mexico5,059 19 %4,413 18 %4,449 18 %
U.S.3,690 14 %3,648 15 %3,719 15 %

No other country accounted for more than 10% of net sales for the fiscal periods presented in the table above.
Geographic information of property and equipment, net is as follows:
As of March 31,
20222021
(In millions)
Property and equipment, net:
Americas$1,075 51 %$1,015 48 %
Asia561 26 %627 30 %
Europe489 23 %455 22 %
$2,125 $2,097 

As of March 31, 2022 and 2021, property and equipment, net held in Singapore were approximately $5.0 million and $5.9 million, respectively.
The following table summarizes the countries that accounted for more than 10% of property and equipment, net in fiscal year 2022 and 2021:
Fiscal Year Ended March 31,
20222021
(In millions)
Property and equipment, net:
Mexico$626 29 %$553 26 %
U.S.354 17 %361 17 %
China299 14 %331 16 %
No other country accounted for more than 10% of property and equipment, net for the fiscal periods presented in the table above.