21. SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONSOLIDATED FINANCIAL STATEMENTS

Flextronics International Ltd. ("Parent") has two tranches of Notes of $500 million each outstanding, which mature on February 15, 2020 and February 15, 2023, respectively. These notes are senior unsecured obligations, and are guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company's 100% owned subsidiaries (the "guarantor subsidiaries"). These subsidiary guarantees will terminate upon 1) a sale or other disposition of the guarantor or the sale or disposition of all or substantially all the assets of the guarantor (other than to the Parent or a subsidiary); 2) such guarantor ceasing to be a guarantor or a borrower under the Company's Credit Facility and the Company's Term Loan due 2018; 3) defeasance or discharge of the Notes, as provided in the Notes indenture; or 4) if at any time the notes are rated investment grade.

In lieu of providing separate financial statements for the guarantor subsidiaries, the Company has included the accompanying condensed consolidating financial statements, which are presented using the equity method of accounting. The principal elimination entries relate to investment in subsidiaries and intercompany balances and transactions, including transactions with the Company's non-guarantor subsidiaries.

Condensed Consolidating Balance Sheets as of March 31, 2015

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	608,971	$	168,272		$	851,165	$	—		$	1,628,408
Accounts receivable		—		1,193,491			1,144,024		—			2,337,515
Inventories		—		1,729,593			1,759,159		—			3,488,752
Inter company receivable		6,417,410		4,774,526			10,218,788		(21,410,724	)		—
Other current assets		8,143		200,476			1,077,606		—			1,286,225

Total current assets		7,034,524		8,066,358			15,050,742		(21,410,724	)		8,740,900
Property and equipment, net		—		471,052			1,621,115		—			2,092,167
Goodwill and other intangible assets, net		475		60,782			353,918		—			415,175
Other assets		2,223,402		155,172			2,131,523		(4,092,715	)		417,382
Investment in subsidiaries		1,799,956		1,666,759			16,652,951		(20,119,666	)		—

Total assets	$	11,058,357	$	10,420,123		$	35,810,249	$	(45,623,105	)	$	11,665,624


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	40,000	$	917		$	5,245	$	—		$	46,162
Accounts payable		—		1,772,695			2,788,499		—			4,561,194
Accrued payroll		—		112,692			227,047		—			339,739
Inter company payable		6,559,569		7,309,944			7,541,211		(21,410,724	)		—
Other current liabilities		30,553		772,015			1,006,560		—			1,809,128

Total current liabilities		6,630,122		9,968,263			11,568,562		(21,410,724	)		6,756,223
Long term liabilities		2,067,421		2,102,483			2,435,962		(4,092,715	)		2,513,151
Flextronics International Ltd. shareholders' equity		2,360,814		(1,650,623	)		21,770,289		(20,119,666	)		2,360,814
Noncontrolling interests		—		—			35,436		—			35,436

Total shareholders' equity		2,360,814		(1,650,623	)		21,805,725		(20,119,666	)		2,396,250

Total liabilities and shareholders' equity	$	11,058,357	$	10,420,123		$	35,810,249	$	(45,623,105	)	$	11,665,624

Condensed Consolidating Balance Sheets as of March 31, 2014

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	638,714	$	210,462		$	744,552	$	—		$	1,593,728
Accounts receivable		—		1,229,242			1,468,743		—			2,697,985
Inventories		—		1,705,872			1,893,136		—			3,599,008
Inter company receivable		8,867,520		6,963,002			9,528,158		(25,358,680	)		—
Other current assets		246		383,590			1,125,769		—			1,509,605

Total current assets		9,506,480		10,492,168			14,760,358		(25,358,680	)		9,400,326
Property and equipment, net		—		490,166			1,798,490		—			2,288,656
Goodwill and other intangible assets, net		775		46,917			329,526		—			377,218
Other assets		2,585,169		120,738			4,692,157		(6,964,114	)		433,950
Investment in subsidiaries		3,350,690		758,612			15,995,623		(20,104,925	)		—

Total assets	$	15,443,114	$	11,908,601		$	37,576,154	$	(52,427,719	)	$	12,500,150


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	32,500	$	60		$	15	$	—		$	32,575
Accounts payable		—		1,614,383			3,133,396		—			4,747,779
Accrued payroll		—		106,046			248,843		—			354,889
Inter company payable		8,607,486		10,126,691			6,624,503		(25,358,680	)		—
Other current liabilities		24,868		756,767			1,739,809		—			2,521,444

Total current liabilities		8,664,854		12,603,947			11,746,566		(25,358,680	)		7,656,687
Long term liabilities		4,615,210		2,140,985			2,849,703		(6,964,114	)		2,641,784
Flextronics International Ltd. shareholders' equity		2,163,050		(2,836,331	)		22,941,256		(20,104,925	)		2,163,050
Noncontrolling interests		—		—			38,629		—			38,629

Total shareholders' equity		2,163,050		(2,836,331	)		22,979,885		(20,104,925	)		2,201,679

Total liabilities and shareholders' equity	$	15,443,114	$	11,908,601		$	37,576,154	$	(52,427,719	)	$	12,500,150

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

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	17,620,300		$	19,669,882		$	(11,142,266	)	$	26,147,916
Cost of sales		—			16,133,224			19,611,618			(11,142,266	)		24,602,576
Gross profit		—			1,487,076			58,264			—			1,545,340
Selling, general and administrative expenses		—			233,767			610,706			—			844,473
Intangible amortization		300			2,891			28,844			—			32,035
Interest and other, net		10,086			850,886			(862,795	)		—			(1,823	)

Income (loss) before income taxes		(10,386	)		399,532			281,509			—			670,655
Provision for income taxes		—			14,143			55,711			—			69,854
Equity in earnings in subsidiaries		611,187			(142,451	)		467,940			(936,676	)		—

Net income	$	600,801		$	242,938		$	693,738		$	(936,676	)	$	600,801

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	17,648,879		$	21,600,240		$	(13,140,512	)	$	26,108,607
Cost of sales		—			16,225,232			21,525,018			(13,140,512	)		24,609,738
Restructuring charges		—			9,609			49,039			—			58,648

Gross profit		—			1,414,038			26,183			—			1,440,221
Selling, general and administrative expenses		—			230,041			644,755			—			874,796
Intangible amortization		300			4,124			24,468			—			28,892
Restructuring charges		800			(271	)		16,134			—			16,663
Interest and other, net		(502,028	)		864,095			(242,651	)		—			119,416

Income (loss) before income taxes		500,928			316,049			(416,523	)		—			400,454
Provision for income taxes		52			42,944			(8,136	)		—			34,860
Equity in earnings in subsidiaries		(135,282	)		(255,941	)		369,429			21,794			—

Net income (loss)	$	365,594		$	17,164		$	(38,958	)	$	21,794		$	365,594

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	15,379,151		$	17,033,974		$	(8,843,650	)	$	23,569,475
Cost of sales		—			13,886,798			17,144,245			(8,843,650	)		22,187,393
Restructuring charges		—			26,295			189,539			—			215,834

Gross profit		—			1,466,058			(299,810	)		—			1,166,248
Selling, general and administrative expenses		—			195,560			609,675			—			805,235
Intangible amortization		300			7,840			21,389			—			29,529
Restructuring charges		—			1,646			9,954			—			11,600
Interest and other, net		(880,051	)		702,305			168,815			—			(8,931	)

Income (loss) from continuing operations before income taxes		879,751			558,707			(1,109,643	)		—			328,815
Provision for income taxes		—			15,396			10,917			—			26,313
Equity in earnings in subsidiaries		(602,700	)		(391,748	)		591,825			402,623			—

Income from continuing operations		277,051			151,563			(528,735	)		402,623			302,502
Loss from discontinued operations, net of tax		—			—			(25,451	)		—			(25,451	)

Net income (loss)	$	277,051		$	151,563		$	(554,186	)	$	402,623		$	277,051

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		$	242,938		$	693,738		$	(936,676	)	$	600,801
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax		(18,932	)		256,652			221,418			(478,070	)		(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		$	465,821		$	879,739		$	(1,345,560	)	$	546,452

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
	(in thousands)
Net income (loss)	$	365,594		$	17,164		$	(38,958	)	$	21,794	$	365,594
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax		(34,683	)		(89,282	)		(89,635	)		178,917		(34,683	)
Unrealized loss on derivative instruments and other, net of zero tax		(13,992	)		(5,221	)		(13,993	)		19,214		(13,992	)

Comprehensive income (loss)	$	316,919		$	(77,339	)	$	(142,586	)	$	219,925	$	316,919

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	277,051		$	151,563		$	(554,186	)	$	402,623		$	277,051
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax		(16,289	)		5,207			10,377			(15,584	)		(16,289	)
Unrealized loss on derivative instruments and other, net of zero tax		(20,755	)		(15,910	)		(20,755	)		36,665			(20,755	)

Comprehensive income (loss)	$	240,007		$	140,860		$	(564,564	)	$	423,704		$	240,007

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	)	$	448,685		$	418,705		$	—		$	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 of businesses, net of cash acquired		—			(20,589	)		(40,772	)		—			(61,361	)
Proceeds from divestitures of business, net of cash held in divested business		—			—			(5,493	)		—			(5,493	)
Investing cash flows from (to) affiliates		(1,703,983	)		(2,284,175	)		1,178,606			2,809,552			—
Other investing activities, net		(1,500	)		(13,821	)		79,683			—			64,362

Net cash provided by (used in) investing activities		(1,705,483	)		(2,404,461	)		1,058,191			2,809,537			(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 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			1,914,619			(1,526,034	)		(2,809,537	)		—
Other financing activities, net		—			—			(98,966	)		—			(98,966	)

Net cash provided by (used in) financing activities		1,996,004			1,916,229			(1,618,713	)		(2,809,537	)		(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

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	459,748		$	(543,426	)	$	1,299,587		$	551			1,216,460

Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal		—			(222,197	)		(292,221	)		(585	)		(515,003	)
Acquisition of businesses, net of cash acquired		—			(61,587	)		(176,444	)		—			(238,031	)
Proceeds from divestitures of business, net of cash held in divested business		—			—			4,599			—			4,599
Investing cash flows from (to) affiliates		35,262			(510,168	)		(1,790,609	)		2,265,515			—
Other investing activities, net		—			(5,342	)		(30,155	)		—			(35,497	)

Net cash provided by (used in) investing activities		35,262			(799,294	)		(2,284,830	)		2,264,930			(783,932	)

Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt		1,066,359			277			17			—			1,066,653
Repayments of bank borrowings and long-term debt and capital lease obligations		(492,034	)		(525	)		(45,021	)		—			(537,580	)
Payments for early repurchase of long-term debt		(503,423	)		(41,417	)		—			—			(544,840	)
Payments for repurchases of ordinary shares		(475,314	)		—			—			—			(475,314	)
Proceeds from exercise of stock options		28,140			—			—			—			28,140
Financing cash flows from (to) affiliates		(277,594	)		1,365,834			1,177,241			(2,265,481	)		—
Other financing activities, net		—			—			52,149			—			52,149

Net cash provided by (used in) financing activities		(653,866	)		1,324,169			1,184,386			(2,265,481	)		(410,792	)

Effect of exchange rates on cash and cash equivalents		57,055			2,641			(74,791	)		—			(15,095	)

Net increase (decrease) in cash and cash equivalents		(101,801	)		(15,910	)		124,352			—			6,641

Cash and cash equivalents, beginning of period		740,515			226,372			620,200			—			1,587,087

Cash and cash equivalents, end of period	$	638,714		$	210,462		$	744,552		$	—		$	1,593,728

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	836,830		$	695,596		$	(416,280	)	$	(716	)		1,115,430

Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal		—			(137,921	)		(297,937	)		530			(435,328	)
Acquisition of businesses, net of cash acquired		—			(20,150	)		(163,947	)		—			(184,097	)
Proceeds from divestitures of business, net of cash held in divested business		—			—			22,585			—			22,585
Investing cash flows from (to) affiliates		(1,228,773	)		965,298			1,166,809			(903,334	)		—
Other investing activities, net		—			6,412			(106,771	)		—			(100,359	)

Net cash provided by (used in) investing activities		(1,228,773	)		813,639			620,739			(902,804	)		(697,199	)

Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt		1,250,000			150			63			—			1,250,213
Repayments of bank borrowings and long-term debt and capital lease obligations		(379,399	)		(3,875	)		(8,585	)					(391,859	)
Payments for early repurchase of long-term debt		(756,855	)		(243,145	)		—						(1,000,000	)
Payments for repurchases of ordinary shares		(322,040	)		—			—			—			(322,040	)
Proceeds from exercise of stock options		22,257			—			—			—			22,257
Financing cash flows from (to) affiliates		693,185			(1,213,350	)		(383,355	)		903,520			—
Other financing activities, net		—			—			101,851			—			101,851

Net cash provided by (used in) financing activities		507,148			(1,460,220	)		(290,026	)		903,520			(339,578	)

Effect of exchange rates on cash and cash equivalents		(23,942	)		(1,801	)		15,848			—			(9,895	)

Net increase (decrease) in cash and cash equivalents		91,263			47,214			(69,719	)		—			68,758

Cash and cash equivalents, beginning of period		649,252			179,158			689,919			—			1,518,329

Cash and cash equivalents, end of period	$	740,515		$	226,372		$	620,200		$	—		$	1,587,087