Discontinued Operations

12 Months Ended

Mar. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

18. DISCONTINUED OPERATIONS

     Consistent with its strategy to evaluate the strategic and financial contributions of each of its operations and to focus on the primary growth objectives in the Company's core vertically-integrated manufacturing business activities, on March 2, 2012, the Company entered into a definitive agreement with Tessera Technologies, Inc., and DigitalOptics Corporation (DOC), a wholly-owned subsidiary of Tessera Technologies. Under the terms of the definitive agreement DOC will acquire certain assets of Flextronics' Vista Point Technologies camera module business, including intellectual property and the China-based manufacturing operations. This transaction is expected to close in the first quarter of fiscal 2013 subject to certain closing conditions.

     In accordance with the accounting guidance, the camera modules business represent a separate asset group and the divestiture qualifies as discontinued operations, and accordingly, the Company has reported the results of operations and financial position of this business in discontinued operations within the statements of operations and the balance sheets for all periods presented.

     The Company recognized an impairment charge of $17.0 million in relation to the fixed assets of the Vista Point Technologies camera modules business based on expected proceeds from the sale amounting to approximately $23.0 million, which has been included in the loss from discontinued operations on the consolidated statement of operations for the fiscal year 2012.

The results from discontinued operations were as follows:

		Fiscal Year Ended March 31,
		2012			2011			2010
				(In thousands)
Net sales	$	82,632		$	190,907		$	100,949
Cost of sales		100,167			191,950			94,959
Restructuring charges		-			-			33
Gross profit (loss)		(17,535	)		(1,043	)		5,957
Selling, general and administrative expenses		5,859			11,459			12,037
Interest and other expense (income), net		32			422			(51	)
Loss before income taxes		(23,426	)		(12,924	)		(6,029	)
Provision for (benefit from) income taxes		(1,546	)		(2,798	)		379
Net loss of discontinued operations	$	(21,880	)	$	(10,126	)	$	(6,408	)

The current and non-current assets and liabilities of discontinued operations were as follows:

	As of March 31,
	2012		2011
	(In thousands)
Account receivable, net	$	892	$	57,720
Inventories		3,723		33,260
Other current assets		471		5,921
Total current assets of discontinued operations	$	5,086	$	96,901
Property and equipment, net	$	22,671	$	57,032
Total non-current assets of discontinued operations	$	22,671	$	57,032
Accounts payable	$	3,593	$	78,713
Other current liabilities		4,651		8,566
Total current liabilities of discontinued operations	$	8,244	$	87,279