DISCONTINUED OPERATIONS

3 Months Ended

Jun. 28, 2024

Discontinued Operations and Disposal Groups [Abstract]

On January 2, 2024, the Company completed the Spin-off of its remaining interests in Nextracker. For additional details on the Spin-off, refer to Part I, Item 1, “Business” and note 1, "Organization of The Company" and note 7, “Discontinued Operations” of the notes to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. Nextracker's financial results for periods prior to the Spin-off have been reflected in our condensed consolidated statement of operations, retrospectively, as discontinued operations.

The key components of net income from discontinued operations for the three-month period ended June 30, 2023 were as follows:


	June 30, 2023
	(In millions)
Net sales (1)	$	444
Cost of sales (1)	333
Gross Profit	111
Selling, general and administrative expenses	35

Operating income	76
Interest, net	1
Income before income taxes	75
Provision for income taxes	11
Net income from discontinued operations	64
Net income from discontinued operations attributable to noncontrolling interest (2)	25
Net income from discontinued operations attributable to Flex Ltd.	$	39

(1) Both net sales and cost of sales from discontinued operations includes the effect of intercompany transactions that were eliminated from Flex's condensed consolidated statements of operations of approximately $36 million for the three-month period ended June 30, 2023.

(2) Net income from discontinued operations attributable to noncontrolling interest represented a share of pre-tax income of $29 million and of income tax expense of $4 million for the three-month period ended June 30, 2023. As such, pre-tax income attributable to Flex Ltd. from discontinued operations was $46 million for the same period.

Details of cash flows from discontinued operations for the three-month period ended June 30, 2023 were as follows:


	June 30, 2023
	(In millions)
Net cash provided by discontinued operations operating activities (1)	$	226
Net cash used in discontinued operations investing activities	(1)

(1) Cash flows from discontinued operations operating activities includes an inflow from intercompany transactions that were eliminated from Flex's consolidated operations of $10 million for the three-month period ended June 30, 2023.