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

3 Months Ended

Jun. 27, 2014

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets as of June 27, 2014

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	265,273	$	25,164		$	1,057,253	$	—		$	1,347,690
Accounts receivable	—		806,735			2,087,887		—			2,894,622
Inventories	—		1,238,539			2,271,624		—			3,510,163
Inter company receivable	10,127,115		7,656,660			9,710,239		(27,494,014		)	—
Other current assets	389		145,098			1,091,461		—			1,236,948
Total current assets	10,392,777		9,872,196			16,218,464		(27,494,014		)	8,989,423
Property and equipment, net	—		438,870			1,815,794		—			2,254,664
Goodwill and other intangible assets, net	700		38,451			350,218		—			389,369
Other assets	2,573,176		98,214			2,126,471		(4,363,493		)	434,368
Investment in subsidiaries	1,013,070		858,751			16,602,017		(18,473,838		)	—
Total assets	$	13,979,723	$	11,306,482		$	37,112,964	$	(50,331,345	)	$	12,067,824
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	36,250	$	45		$	19,043	$	—		$	55,338
Accounts payable	—		1,265,284			3,476,749		—			4,742,033
Accrued payroll	—		95,635			281,498		—			377,133
Inter company payable	9,539,121		9,978,361			7,976,532		(27,494,014		)	—
Other current liabilities	38,491		696,874			1,323,343		—			2,058,708
Total current liabilities	9,613,862		12,036,199			13,077,165		(27,494,014		)	7,233,212
Long term liabilities	2,103,601		2,007,345			2,786,291		(4,363,493		)	2,533,744
Flextronics International Ltd. shareholders’ equity	2,262,260		(2,737,062		)	21,210,900		(18,473,838		)	2,262,260
Noncontrolling interests	—		—			38,608		—			38,608
Total shareholders’ equity	2,262,260		(2,737,062		)	21,249,508		(18,473,838		)	2,300,868
Total liabilities and shareholders’ equity	$	13,979,723	$	11,306,482		$	37,112,964	$	(50,331,345	)	$	12,067,824

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	$	30,500		$	924,514	$	—		$	1,593,728
Accounts receivable	—		766,110			1,931,875		—			2,697,985
Inventories	—		1,387,510			2,211,498		—			3,599,008
Inter company receivable	8,867,520		6,968,138			9,149,244		(24,984,902		)	—
Other current assets	246		277,035			1,232,324		—			1,509,605
Total current assets	9,506,480		9,429,293			15,449,455		(24,984,902		)	9,400,326
Property and equipment, net	—		427,390			1,861,266		—			2,288,656
Goodwill and other intangible assets, net	775		39,074			337,369		—			377,218
Other assets	2,585,169		103,335			4,628,970		(6,883,524		)	433,950
Investment in subsidiaries	3,350,690		522,489			16,392,541		(20,265,720		)	—
Total assets	$	15,443,114	$	10,521,581		$	38,669,601	$	(52,134,146	)	$	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	—		1,256,204			3,491,575		—			4,747,779
Accrued payroll	—		83,288			271,601		—			354,889
Inter company payable	8,607,486		9,422,179			6,955,237		(24,984,902		)	—
Other current liabilities	24,868		626,550			1,870,026		—			2,521,444
Total current liabilities	8,664,854		11,388,281			12,588,454		(24,984,902		)	7,656,687
Long term liabilities	4,615,210		2,050,460			2,859,638		(6,883,524		)	2,641,784
Flextronics International Ltd. shareholders’ equity	2,163,050		(2,917,160		)	23,182,880		(20,265,720		)	2,163,050
Noncontrolling interest	—		—			38,629		—			38,629
Total shareholders’ equity	2,163,050		(2,917,160		)	23,221,509		(20,265,720		)	2,201,679
Total liabilities and shareholders’ equity	$	15,443,114	$	10,521,581		$	38,669,601	$	(52,134,146	)	$	12,500,150

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 27, 2014

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,915,326	$	5,312,077		$	(2,584,658	)	$	6,642,745
Cost of sales	—			3,580,578		5,266,040			(2,584,658		)	6,261,960
Gross profit	—			334,748		46,037			—			380,785
Selling, general and administrative expenses	—			44,626		164,651			—			209,277
Intangible amortization	75			623		6,253			—			6,951
Interest and other, net	16,531			259,748		(301,651		)	—			(25,372		)
Income (loss) from continuing operations before income taxes	(16,606		)	29,751		176,784			—			189,929
Provision for income taxes	—			1,482		14,560			—			16,042
Equity in earnings in subsidiaries	190,493			67,301		33,179			(290,973		)	—
Net income (loss)	$	173,887		$	95,570	$	195,403		$	(290,973	)	$	173,887

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 28, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,484,434		$	4,595,431		$	(2,288,740	)	$	5,791,125
Cost of sales	—			3,140,837			4,627,993			(2,288,740		)	5,480,090
Gross profit (loss)	—			343,597			(32,562		)	—			311,035
Selling, general and administrative expenses	800			51,224			171,595			—			223,619
Intangible amortization	75			1,081			7,046			—			8,202
Interest and other, net	(49,280		)	267,202			(198,238		)	—			19,684
Income (loss) from continuing operations before income taxes	48,405			24,090			(12,965		)	—			59,530
Provision for (benefit from) income taxes	10			1,251			(988		)	—			273
Equity in earnings in subsidiaries	10,862			(11,551		)	2,772			(2,083		)	—
Net income (loss)	$	59,257		$	11,288		$	(9,205	)	$	(2,083	)	$	59,257

Schedule of condensed consolidating statements of comprehensive income (loss)

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended June 27, 2014

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	173,887		$	95,570		$	195,403		$	(290,973	)	$	173,887
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(4,145		)	(77,152		)	(271,529		)	348,681			(4,145		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	10,725			(21,989		)	(22,124		)	44,113			10,725
Comprehensive income (loss)	$	180,467		$	(3,571	)	$	(98,250	)	$	101,821		$	180,467

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended June 28, 2013

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	59,257		$	11,288		$	(9,205	)	$	(2,083	)	$	59,257
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(17,509		)	(13,644		)	(27,281		)	40,925			(17,509		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(10,134		)	2			(10,135		)	10,133			(10,134		)
Comprehensive income (loss)	$	31,614		$	(2,354	)	$	(46,621	)	$	48,975		$	31,614

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows for the Three-Month Period Ended June 27, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(13,025	)	$	248,848		$	(316,992	)	$	—		(81,169		)
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(35,401		)	(37,516		)	—			(72,917		)
Proceeds from divesture of business, net of cash held in divested business	—			—			(5,493		)	—			(5,493		)
Investing cash flows from (to) affiliates	(1,185,671		)	(538,017		)	572,278			1,151,410			—
Other investing activities, net	—			(959		)	(20,503		)	—			(21,462		)
Net cash provided by (used in) investing activities	(1,185,671		)	(574,377		)	508,766			1,151,410			(99,872		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	—			—			26,615			—			26,615
Repayments of bank borrowings, long-term debt and capital lease obligations	—			(393		)	(466		)	—			(859		)
Payments for repurchases of ordinary shares	(105,568		)	—			—			—			(105,568		)
Net proceeds from issuance of ordinary shares	9,329			—			—			—			9,329
Financing cash flows from (to) affiliates	931,635			321,342			(101,567		)	(1,151,410		)	—
Other financing activities, net	—			—			300			—			300
Net cash provided by (used in) financing activities	835,396			320,949			(75,118		)	(1,151,410		)	(70,183		)
Effect of exchange rates on cash and cash equivalents	(10,141		)	(756		)	16,083			—			5,186
Net increase (decrease) in cash and cash equivalents	(373,441		)	(5,336		)	132,739			—			(246,038		)
Cash and cash equivalents, beginning of period	638,714			30,500			924,514			—			1,593,728
Cash and cash equivalents, end of period	$	265,273		$	25,164		$	1,057,253		$	—		$	1,347,690

Condensed Consolidating Statements of Cash Flows for the Three-Month Period Ended June 28, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	51,963		$	(568,028	)	$	713,609		$	1,032		$	198,576
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(105,657		)	(35,165		)	(551		)	(141,373		)
Acquisition of businesses, net of cash acquired	—			(1,026		)	(186,517		)	—			(187,543		)
Investing cash flows from (to) affiliates	(438,186		)	354,871			(589,921		)	673,236			—
Other investing activities, net	—			890			29,289			—			30,179
Net cash provided by (used in) investing activities	(438,186		)	249,078			(782,314		)	672,685			(298,737		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	—			133			25			—			158
Repayments of bank borrowings, long-term debt and capital lease obligations	(8,636		)	(414		)	(101		)	—			(9,151		)
Payments for repurchases of ordinary shares	(215,210		)	—			—			—			(215,210		)
Net proceeds from issuance of ordinary shares	10,909			—			—			—			10,909
Financing cash flows from (to) affiliates	371,446			311,306			(9,035		)	(673,717		)	—
Other financing activities, net	—			—			15,652			—			15,652
Net cash provided by (used in) financing activities	158,509			311,025			6,541			(673,717		)	(197,642		)
Effect of exchange rates on cash and cash equivalents	10,211			369			(20,290		)	—			(9,710		)
Net decrease in cash and cash equivalents	(217,503		)	(7,556		)	(82,454		)	—			(307,513		)
Cash and cash equivalents, beginning of period	740,515			82,900			763,672			—			1,587,087
Cash and cash equivalents, end of period	$	523,012		$	75,344		$	681,218		$	—		$	1,279,574