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Summary of Accounting Policies (Tables)
12 Months Ended
Mar. 31, 2011
Summary of Accounting Policies  
Allowance for Doubtful Accounts
 

 

Balance at

 

Charged to

 

 

 

Balance at

 

 

Beginning

 

Costs and

 

Deductions/

 

End of

 

 

of Year

 

Expenses

 

Write-Offs

 

Year

 

 

(In thousands)

Allowance for doubtful accounts:

 

 

 

 

 

 

 

 

Year ended March 31, 2009

 

 $    16,732

 

 $     73,845

 

 $    (61,557)

 

 $      29,020

Year ended March 31, 2010

 

 $    29,020

 

 $     44,066

 

 $    (59,923)

 

 $      13,163

Year ended March 31, 2011

 

 $    13,163

 

 $       4,043

 

 $      (3,818)

 

 $      13,388

Cash and Cash Equivalents

 

 

 

 

 

As of March 31,

 

2011

 

2010

 

(In thousands)

      Cash and bank balances

 $     1,372,711

 

 $       715,146

      Money market funds and time deposits

           375,760

 

       1,212,410

 

 $     1,748,471

 

 $    1,927,556

Components of Inventories
       

 

 

 

As of March 31,

 

2011

 

2010

 

(In thousands)

Raw materials

 $       2,271,944

 

 $    1,874,244

Work-in-progress

             579,047

 

          480,216

Finished goods

             699,295

 

          521,359

 

 $       3,550,286

 

 $    2,875,819

Property and Equipment
           

 

Depreciable

 

 

 

Life

 

As of March 31,

 

(In Years)

 

2011

 

2010

 

 

 

(In thousands)

Machinery and equipment

3-10

 

 $        2,515,669

 

 $        2,286,988

Buildings

 

           1,019,970

 

              963,460

Leasehold improvements

up to 30

 

              279,981

 

              250,373

Furniture, fixtures, computer equipment and software

3-7

 

              389,853

 

              367,206

Land

 —

 

              134,187

 

              137,959

Construction-in-progress

 —

 

              102,016

 

              145,925

 

 

 

           4,441,676

 

           4,151,911

Accumulated depreciation and amortization

 

 

         (2,300,613)

 

         (2,033,335)

Property and equipment, net

 

 

 $        2,141,063

 

 $        2,118,576

Schedule of Goodwill
Intangible Assets Disclosure
                                   

 

 

 

As of March 31, 2011

 

As of March 31, 2010

 

Gross

 

 

 

 

Net

 

Gross

 

 

 

 

Net

 

Carrying

 

Accumulated

 

Carrying

 

Carrying

 

Accumulated

 

Carrying

 

Amount

 

Amortization

 

Amount

 

Amount

 

Amortization

 

Amount

 

(In thousands)

 

(In thousands)

Intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer-related intangibles

$

   378,412

 

$

 (283,732)

 

$

     94,680

 

$

   506,595

 

$

 (355,409)

 

$

   151,186

Licenses and other intangibles...

 

     44,915

 

 

   (19,719)

 

 

     25,196

 

 

     54,792

 

 

   (35,621)

 

 

     19,171

Total

$

   423,327

 

 $

 (303,451)

 

 $

   119,876

 

$

   561,387

 

 $

 (391,030)

 

 $

   170,357

Intangible Assets Future Amortization Expense
       

Fiscal Year Ending March 31,

 

Amount

 

 

(In thousands)

 2012

$

            44,986

 2013

 

            31,234

 2014

 

            21,173

 2015

 

            11,400

 2016

 

              5,669

 Thereafter

 

              5,414

   Total amortization expense

$

          119,876

Stock-Based Compensation Expense
           

 

Fiscal Year Ended March 31,

 

2011

 

2010

 

2009

 

(In thousands)

Cost of sales

 $         10,249

 

 $         10,847

 

 $         9,283

Selling, general and administrative expenses

            44,988

 

            45,627

 

          47,631

Total stock-based compensation expense

 $         55,237

 

 $         56,474

 

 $       56,914

Stock Options Granted Estimated Using Weighted Average Assumptions
                       

 

Fiscal Year Ended March 31,

 

2011

 

2010

 

2009

Expected term

4.1 years

 

4.5 years

 

4.2 years

Expected volatility

 

 46.9

 %

 

 

 53.8

 %

 

 

 51.0

 %

Expected dividends

 

 0.0

 %

 

 

 0.0

 %

 

 

 0.0

 %

Risk-free interest rate

 

   1.6

 %

 

 

   1.3

 %

 

 

   2.2

 %

Weighted-average fair value

$

 2.80

 

 

$

 2.75

 

 

$

 2.22

 

Stock Option Activity for Equity Compensation Plans
                       

 

Fiscal Year Ended March 31,

 

2011

 

 2010

 

 2009

 

Options

 

Price

 

Options

 

Price

 

Options

 

Price

Outstanding, beginning of fiscal year

      62,868,569

 

 $            7.16

 

       81,927,879

 

 $             9.13

 

     52,541,413

 

 $        11.67

Granted

        2,063,748

 

               7.21

 

            869,600

 

                6.17

 

     43,586,251

 

             6.21

Granted under option exchange program

 —

 

 —

 

       16,867,452

 

                5.57

 

 —

 

 —

Exercised

       (6,215,867)

 

               7.44

 

       (2,496,254)

 

                6.54

 

     (2,242,639)

 

             6.13

Forfeited

       (4,773,992)

 

               6.55

 

       (6,376,879)

 

                9.50

 

   (11,957,146)

 

           10.16

Cancelled under option exchange program

 —

 

 —

 

     (27,923,229)

 

              11.85

 

 —

 

 —

Outstanding, end of fiscal year

      53,942,458

 

 $            7.61

 

       62,868,569

 

 $             7.16

 

     81,927,879

 

 $          9.13

Options exercisable, end of fiscal year

      34,237,404

 

 $            9.23

 

       24,989,665

 

 $           10.71

 

     34,329,956

 

 $        12.51

Composition of Options Outstanding and Exercisable
                   
 

Options Outstanding

 

Options Exercisable

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

Remaining

 

Weighted

 

 

 

Weighted

 

Number of

 

Contractual

 

Average

 

Number of

 

Average

 

Shares

 

Life

 

Exercise

 

Shares

 

Exercise

Range of Exercise Prices

Outstanding

 

(In Years)

 

Price

 

Exercisable

 

Price

$  1.94 – $2.26

     14,120,595

 

4.72

$

2.21

 

         4,933,133

$

2.19

$  3.39 – $5.75

     12,506,064

 

5.36

 

5.55

 

         6,506,154

 

5.56

$  5.87 – $7.07

       1,481,659

 

3.86

 

6.31

 

            756,198

 

5.92

$  7.08 – $10.59

     12,623,012

 

3.85

 

9.64

 

         8,855,491

 

9.69

$  10.67 – $11.41

       1,517,458

 

4.84

 

11.13

 

         1,496,925

 

11.13

$  11.53 – $13.98

       8,094,953

 

3.44

 

12.42

 

         8,090,786

 

12.42

$  14.34 – $23.02

       3,598,717

 

2.32

 

17.09

 

         3,598,717

 

17.09

$  1.94 – $23.02

     53,942,458

 

4.29

$

7.61

 

       34,237,404

$

9.23

 

 

 

 

 

 

 

 

 

 

Options vested and expected to vest

     52,893,459

 

4.27

$

7.66

 

 

 

 

Share Bonus Award Activity
                       

 

Fiscal Year Ended March 31,

 

2011

 

2010

 

 2009

 

Shares

 

Price

 

Shares

 

Price

 

Shares

 

Price

Unvested share bonus awards outstanding,

 

 

 

 

 

 

 

 

 

 

 

    beginning of fiscal year

      8,801,609

 

 $10.31

 

    10,456,905

 

 $10.31

 

      8,866,364

 

 $10.70

      Granted

      9,739,375

 

     7.01

 

         523,229

 

     7.08

 

      4,364,194

 

     9.30

      Vested

    (2,758,593)

 

   10.37

 

    (1,299,357)

 

     8.98

 

    (1,825,252)

 

     9.41

      Forfeited

    (1,980,449)

 

     9.74

 

       (879,168)

 

   10.40

 

       (948,401)

 

   11.08

Unvested share bonus awards outstanding,

 

 

 

 

 

 

 

 

 

 

 

    end of fiscal year

    13,801,942

 

 $  8.04

 

      8,801,609

 

 $10.31

 

    10,456,905

 

 $10.31

Weighted-Average Number of Shares Used to Calculate Basic and Diluted Income Per Share

Fiscal Year Ended March 31,   
  2011   2010   2009  
  (In thousands, except per share amounts)  
Basic earnings (loss) per share:                  
Net income (loss) $          596,219    $          18,594    $   (6,135,518)  
Shares used in computation:                  
Weighted-average ordinary shares outstanding            777,315           811,677           820,955  
Basic earnings (loss) per share $                0.77   $             0.02   $           (7.47)  
             
Diluted earnings (loss) per share:                  
Net income (loss) $          596,219    $          18,594    $   (6,135,518)  
Shares used in computation:                  
Weighted-average ordinary shares outstanding            777,315           811,677           820,955  
Weighted-average ordinary share equivalents from                  
     stock options and awards (1)              12,877               9,435      —   
Weighted-average ordinary share equivalents from                  
     convertible notes (2)    —       —       —   
Weighted-average ordinary shares and ordinary share                   
     equivalents outstanding            790,192           821,112           820,955  
Diluted earnings (loss) per share $                0.75   $             0.02   $           (7.47)  
                   
__________

 

(1)

As a result of the Company's net loss, ordinary share equivalents from approximately 1.6 million options and share bonus awards were excluded from the calculation of diluted earnings (loss) per share during the twelve-month period ended March 31, 2009.  Additionally, ordinary share equivalents from stock options to purchase approximately 25.5 million, 38.1 million and 61.5 million shares during fiscal years 2011, 2010 and 2009, respectively, were excluded from the computation of diluted earnings per share primarily because the exercise price of these options was greater than the average market price of the Company's ordinary shares during the respective periods.

 

 

(2)

During fiscal year 2011 the Company redeemed its 1% Convertible Subordinated Notes upon maturity.  The notes carried conversion provisions to issue shares to settle any conversion spread (excess of the conversion value over the conversion price) in stock.  The conversion price was $15.525 per share (subject to certain adjustments).  On the maturity date, the Company's stock price was less than the conversion spread, and therefore no shares were issued.  During fiscal years 2011, 2010 and 2009, the conversion obligation was less than the principal portion of these notes and accordingly, no additional shares were included as ordinary share equivalents

 

On July 31, 2009, the principal amount of the Company's Zero Coupon Convertible Junior Subordinated Notes was settled in cash upon maturity. These notes carried conversion provisions to issue shares to settle any conversion spread (excess of the conversion value over the conversion price) in stock.  The conversion price was $10.50 per share. On the maturity date the Company's stock price was less than the conversion price, and therefore no shares were issued.