SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

9 Months Ended

Dec. 31, 2013

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets as of December 31, 2013

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	604,128	$	45,962		$	967,155	$	—		$	1,617,245
Accounts receivable	—		899,441			1,651,589		—			2,551,030
Inventories	—		1,628,470			2,343,657		—			3,972,127
Inter company receivable	4,927,410		4,989,090			8,757,994		(18,674,494		)	—
Other current assets	518		243,060			1,308,943		—			1,552,521
Total current assets	5,532,056		7,806,023			15,029,338		(18,674,494		)	9,692,923
Property and equipment, net	—		437,412			1,943,299		—			2,380,711
Goodwill and other intangible assets, net	850		40,144			340,837		—			381,831
Other assets	2,595,312		104,605			4,569,256		(6,907,601		)	361,572
Investment in subsidiaries	3,962,146		(549,678		)	17,305,339		(20,717,807		)	—
Total assets	$	12,090,364	$	7,838,506		$	39,188,069	$	(46,299,902	)	$	12,817,037
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	40,768	$	420		$	13,763	$	—		$	54,951
Accounts payable	—		1,221,335			3,747,305		—			4,968,640
Accrued payroll	—		91,227			294,413		—			385,640
Inter company payable	5,239,573		7,985,067			5,449,854		(18,674,494		)	—
Other current liabilities	44,065		633,231			1,977,965		—			2,655,261
Total current liabilities	5,324,406		9,931,280			11,483,300		(18,674,494		)	8,064,492
Long term liabilities	4,545,211		2,067,962			2,792,421		(6,907,601		)	2,497,993
Flextronics International Ltd. shareholders’ equity	2,220,747		(4,160,736		)	24,912,348		(20,751,612		)	2,220,747
Noncontrolling interests	—		—			—		33,805			33,805
Total shareholders’ equity	2,220,747		(4,160,736		)	24,912,348		(20,717,807		)	2,254,552
Total liabilities and shareholders’ equity	$	12,090,364	$	7,838,506		$	39,188,069	$	(46,299,902	)	$	12,817,037

Condensed Consolidating Balance Sheets as of March 31, 2013

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	740,515	$	82,900		$	763,672	$	—		$	1,587,087
Accounts receivable	—		458,617			1,653,379		—			2,111,996
Inventories	—		1,063,627			1,658,873		—			2,722,500
Inter company receivable	4,440,955		4,726,673			6,490,274		(15,657,902		)	—
Other current assets	6,182		178,585			1,165,051		—			1,349,818
Total current assets	5,187,652		6,510,402			11,731,249		(15,657,902		)	7,771,401
Property and equipment, net	—		328,621			1,845,967		—			2,174,588
Goodwill and other intangible assets, net	1,075		40,626			301,851		—			343,552
Other assets	2,498,080		105,136			4,902,815		(7,204,017		)	302,014
Investment in subsidiaries	4,127,384		(954,619		)	16,920,679		(20,093,444		)	—
Total assets	$	11,814,191	$	6,030,166		$	35,702,561	$	(42,955,363	)	$	10,591,555
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	416,594	$	60		$	—	$	—		$	416,654
Accounts payable	—		1,077,723			2,627,574		—			3,705,297
Accrued payroll	—		86,073			265,610		—			351,683
Inter company payable	4,963,615		6,093,606			4,600,681		(15,657,902		)	—
Other current liabilities	32,440		424,599			1,242,112		—			1,699,151
Total current liabilities	5,412,649		7,682,061			8,735,977		(15,657,902		)	6,172,785
Long term liabilities	4,154,784		2,488,279			2,732,966		(7,204,017		)	2,172,012
Shareholders’ equity	2,246,758		(4,140,174		)	24,233,618		(20,093,444		)	2,246,758
Total liabilities and shareholders’ equity	$	11,814,191	$	6,030,166		$	35,702,561	$	(42,955,363	)	$	10,591,555

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,641,981		$	7,054,467		$	(4,513,006	)	$	7,183,442
Cost of sales	—			4,290,813			7,007,016			(4,513,006		)	6,784,823
Gross profit	—			351,168			47,451			—			398,619
Selling, general and administrative expenses	—			46,081			178,495			—			224,576
Intangible amortization	75			1,018			4,482			—			5,575
Interest and other, net	(277,297		)	353,089			(61,049		)	—			14,743
Income (loss) from continuing operations before income taxes	277,222			(49,020		)	(74,477		)	—			153,725
Provision for income taxes	26			1,834			6,708			—			8,568
Equity in earnings in subsidiaries	(132,039		)	20,020			49,314			62,705			—
Net income (loss)	$	145,157		$	(30,834	)	$	(31,871	)	$	62,705		$	145,157

Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,687,858		$	4,734,165		$	(2,298,702	)	$	6,123,321
Cost of sales	—			3,369,715			4,707,531			(2,298,702		)	5,778,544
Restructuring charges	—			4,360			93,955			—			98,315
Gross profit (loss)	—			313,783			(67,321		)	—			246,462
Selling, general and administrative expenses	—			47,150			160,074			—			207,224
Intangible amortization	75			1,859			4,203			—			6,137
Restructuring charges	—			173			4,203			—			4,376
Interest and other, net	(151,320		)	335,509			(201,278		)	—			(17,089		)
Income (loss) from continuing operations before income taxes	151,245			(70,908		)	(34,523		)	—			45,814
Provision for (benefit from) income taxes	833			2,446			(12,061		)	—			(8,782		)
Equity in earnings in subsidiaries	(103,064		)	(30,044		)	48,389			84,719			—
Income (loss) from continuing operations	47,348			(103,398		)	25,927			84,719			54,596
Loss from discontinued operations, net of tax	—			—			(7,248		)	—			(7,248		)
Net income (loss)	$	47,348		$	(103,398	)	$	18,679		$	84,719		$	47,348

Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	12,154,405		$	17,173,465		$	(9,943,197	)	$	19,384,673
Cost of sales	—			11,109,343			17,105,324			(9,943,197		)	18,271,470
Restructuring charges	—			1,293			33,833			—			35,126
Gross profit	—			1,043,769			34,308			—			1,078,077
Selling, general and administrative expenses	—			146,339			514,722			—			661,061
Intangible amortization	225			3,055			18,215			—			21,495
Restructuring charges	800			2,401			2,433			—			5,634
Interest and other, net	(489,834		)	904,039			(366,177		)	—			48,028
Income (loss) from continuing operations before income taxes	488,809			(12,065		)	(134,885		)	—			341,859
Provision for income taxes	37			4,019			15,184			—			19,240
Equity in earnings in subsidiaries	(166,153		)	(59,167		)	90,540			134,780			—
Net income (loss)	$	322,619		$	(75,251	)	$	(59,529	)	$	134,780		$	322,619

Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	11,407,584		$	13,807,774		$	(6,941,201	)	$	18,274,157
Cost of sales	$	—		$	10,316,417		$	13,830,035		$	(6,941,201	)	17,205,251
Restructuring charges	—			4,360			93,955			—			98,315
Gross profit (loss)	—			1,086,807			(116,216		)	—			970,591
Selling, general and administrative expenses	—			141,033			448,718			—			589,751
Intangible amortization	225			6,395			14,591			—			21,211
Restructuring charges	—			173			4,203			—			4,376
Interest and other, net	(581,990		)	666,887			(101,651		)	—			(16,754		)
Income (loss) from continuing operations before income taxes	581,765			272,319			(482,077		)	—			372,007
Provision for income taxes	833			4,894			14,462			—			20,189
Equity in earnings in subsidiaries	(254,565		)	(160,692		)	286,587			128,670			—
Income (loss) from continuing operations	326,367			106,733			(209,952		)	128,670			351,818
Loss from discontinued operations, net of tax	—			—			(25,451		)	—			(25,451		)
Net income (loss)	$	326,367		$	106,733		$	(235,403	)	$	128,670		$	326,367

Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	145,157		$	(30,834	)	$	(31,871	)	$	62,705		$	145,157
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(13,960		)	(3,369		)	(28,137		)	31,506			(13,960		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	1,097			(4		)	1,097			(1,093		)	1,097
Comprehensive income (loss)	$	132,294		$	(34,207	)	$	(58,911	)	$	93,118		$	132,294

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(in thousands)
Net income (loss)	$	47,348		$	(103,398	)	$	18,679		$	84,719	$	47,348
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(10,603		)	(6,075		)	(30,706		)	36,781		(10,603		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(3,088		)	1,822			(3,088		)	1,266		(3,088		)
Comprehensive income (loss)	$	33,657		$	(107,651	)	$	(15,115	)	$	122,766	$	33,657

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	322,619		$	(75,251	)	$	(59,529	)	$	134,780		$	322,619
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(43,457		)	(15,794		)	(94,550		)	110,344			(43,457		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	516			3,944			515			(4,459		)	516
Comprehensive income (loss)	$	279,678		$	(87,101	)	$	(153,564	)	$	240,665		$	279,678

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	326,367		$	106,733		$	(235,403	)	$	128,670		$	326,367
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(21,575		)	1,271			(23,143		)	21,872			(21,575		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	3,015			(1,192		)	3,015			(1,823		)	3,015
Comprehensive income (loss)	$	307,807		$	106,812		$	(255,531	)	$	148,719		$	307,807

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	477,036		$	(944,464	)	$	1,585,742		$	(7	)	1,118,307
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(168,525		)	(292,628		)	—			(461,153		)
Acquisition of businesses, net of cash acquired	—			(2,949		)	(235,082		)	—			(238,031		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			4,599			—			4,599
Investing cash flows from (to) affiliates	(306,254		)	(308,144		)	(3,506,916		)	4,121,314			—
Other investing activities, net	—			(832		)	(11,235		)	—			(12,067		)
Net cash provided by (used in) investing activities	(306,254		)	(480,450		)	(4,041,262		)	4,121,314			(706,652		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	1,003,000			277			17			—			1,003,294
Repayments of bank borrowings, long-term debt and capital lease obligations	(489,365		)	(1,068		)	(28,116		)	—			(518,549		)
Payments for early retirement of long-term debt	(503,423		)	(41,417		)	—			—			(544,840		)
Payments for repurchases of ordinary shares	(362,693		)	—			—			—			(362,693		)
Net proceeds from issuance of ordinary shares	21,106			—			—			—			21,106
Financing cash flows from (to) affiliates	(29,135		)	1,427,288			2,723,154			(4,121,307		)	—
Other financing activities, net	—			—			46,298			—			46,298
Net cash provided by (used in) financing activities	(360,510		)	1,385,080			2,741,353			(4,121,307		)	(355,384		)
Effect of exchange rates on cash and cash equivalents	53,341			2,896			(82,350		)	—			(26,113		)
Net (decrease) increase in cash and cash equivalents	(136,387		)	(36,938		)	203,483			—			30,158
Cash and cash equivalents, beginning of period	740,515			82,900			763,672			—			1,587,087
Cash and cash equivalents, end of period	$	604,128		$	45,962		$	967,155		$	—		$	1,617,245

Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	546,758		$	186,359		$	272,922		$	18		$	1,006,057
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(68,797		)	(259,079		)	(206		)	(328,082		)
Acquisition of businesses, net of cash acquired	—			—			(183,896		)	—			(183,896		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			22,585			—			22,585
Investing cash flows from (to) affiliates	(244,256		)	(99,604		)	1,113,580			(769,720		)	—
Other investing activities, net	—			6,413			(100,046		)	—			(93,633		)
Net cash provided by (used in) investing activities	(244,256		)	(161,988		)	593,144			(769,926		)	(583,026		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	160,001			151			11,521			—			171,673
Repayments of bank borrowings, long-term debt and capital lease obligations	(278,632		)	(3,461		)	(8,137		)	—			(290,230		)
Payments for repurchases of ordinary shares	(208,208		)	—			—			—			(208,208		)
Net proceeds from issuance of ordinary shares	14,632			—			—			—			14,632
Financing cash flows from (to) affiliates	122,739			82,403			(975,050		)	769,908			—
Other financing activities, net	—			—			85,590			—			85,590
Net cash provided by (used in) financing activities	(189,468		)	79,093			(886,076		)	769,908			(226,543		)
Effect of exchange rates on cash and cash equivalents	(110		)	2,164			(10,758		)	—			(8,704		)
Net (decrease) increase in cash and cash equivalents	112,924			105,628			(30,768		)	—			187,784
Cash and cash equivalents, beginning of period	649,252			47,865			821,212			—			1,518,329
Cash and cash equivalents, end of period	$	762,176		$	153,493		$	790,444		$	—		$	1,706,113