Summary Of Accounting Policies

3 Months Ended

Jul. 01, 2011

2. SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or "GAAP") for interim financial information and in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2011 contained in the Company's Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ended July 1, 2011 are not necessarily indicative of the results that may be expected for the fiscal year ended March 31, 2012.

The first fiscal quarters ended on July 1, 2011 and July 2, 2010, respectively. The second fiscal quarter for the current year ends on September 30, 2011 and the second fiscal quarter of the prior year ended on October 1, 2010. The Company's third fiscal quarter ends on December 31, and the fourth fiscal quarter and year ends on March 31 of each year.

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following:


	As of	As of
	July 1, 2011	March 31, 2011
	(In thousands)
Cash and bank balances	$ 1,038,992	$ 1,372,711
Money market funds and time deposits	518,816	375,760
	$ 1,557,808	$ 1,748,471

Inventories

The components of inventories, net of applicable lower of cost or market write-downs, were as follows

	As of	As of
	July 1, 2011	March 31, 2011
	(In thousands)
Raw materials	$ 2,385,712	$ 2,271,944
Work-in-progress	630,092	579,047
Finished goods	722,494	699,295
	$ 3,738,298	$ 3,550,286

Property and Equipment

Depreciation expense associated with property and equipment was approximately $102.7 million and $93.5 million for the three-month periods ended July 1, 2011 and July 2, 2010, respectively.

Goodwill and Other Intangibles

The following table summarizes the activity in the Company's goodwill account during the three-month period ended July 1, 2011:

	Amount
	(In thousands)
Balance, beginning of the year	$ 93,207
Acquisition (1)	3,535
Purchase accounting adjustment (2)	280
Foreign currency translation adjustments	355
Balance, end of the quarter	$ 97,377

(1)

The amount is attributable to one acquisition during the three-month period ended July 1, 2011 that was not significant to the Company. The aggregate cash paid for this acquisition was approximately $6.2 million, net of cash acquired.

(2)

The amount is attributable to purchase accounting adjustments for a historical acquisition that was not significant to the Company, resulting from management's review of the valuation of assets and liabilities completed in a period subsequent to the respective acquisition, based on management's estimates. The effects of the adjustments, had they been made at time of acquisition, would not have had a significant impact on the balance sheet, statement of operations, or statement of cash flows for the periods subsequent to that date.

The components of acquired intangible assets are as follows:


	As of July 1, 2011						As of March 31, 2011
	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	$	375,028	$	(295,515)	$	79,513	$	378,412	$	(283,732)	$	94,680
Licenses and other intangibles...		48,404		(21,271)		27,133		44,915		(19,719)		25,196
Total	$	423,432	$	(316,786)	$	106,646	$	423,327	$	(303,451)	$	119,876

The gross carrying amounts of intangible assets are removed when the recorded amounts have been fully amortized. Total intangible amortization expense was $13.3 million and $18.0 million during the three-month periods ended July 1, 2011 and July 2, 2010, respectively. The estimated future annual amortization expense for acquired intangible assets is as follows:

Fiscal Year Ending March 31,		Amount
		(In thousands)
2012 (1)		$ 31,684
2013		31,234
2014		21,173
2015		11,400
2016		5,669
Thereafter		5,486
Total amortization expense		$ 106,646

(1)	Represents estimated amortization for the nine-month period ending March 31, 2012.

Other Current Assets

Other current assets includes approximately $681.3 million and $460.0 million as of July 1, 2011 and March 31, 2011, respectively, for the deferred purchase price receivable from our Global and North American Asset-Backed Securitization programs (see Note 8).

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (FASB) issued a new accounting standard which revises the manner in which entities present comprehensive income in their financial statements. The new guidance removes the presentation options in ASC 220 and requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. For the Company, this new guidance is effective as of April 1, 2012.

In May 2011, the FASB amended fair value measurement and disclosure guidance to achieve convergence with IFRS. The amended guidance modifies the measurement of fair value, clarifies verbiage, and changes disclosure or other requirements in US GAAP and IFRS. The guidance is effective for the Company as of January 1, 2012. The Company is currently evaluating the potential impact, if any, of the adoption of this guidance on its consolidated financial statements.

In October 2009, the FASB issued amendments to the accounting and disclosure for revenue recognition. These amendments modify the criteria for recognizing revenue in multiple element arrangements. The Company adopted the provisions of this guidance prospectively to new or materially modified arrangements beginning April 1, 2011. The adoption of this new guidance did not have a material impact on the Company's consolidated financial position and results of operations.