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

6 Months Ended

Sep. 26, 2014

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets as of September 26, 2014

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	470,139	$	321,665		$	722,548	$	—		$	1,514,352
Accounts receivable	—		1,189,969			1,336,911		—			2,526,880
Inventories	—		1,653,596			1,973,044		—			3,626,640
Inter company receivable	10,094,013		8,128,810			10,142,505		(28,365,328		)	—
Other current assets	6,577		202,559			1,002,052		—			1,211,188
Total current assets	10,570,729		11,496,599			15,177,060		(28,365,328		)	8,879,060
Property and equipment, net	—		504,883			1,689,083		—			2,193,966
Goodwill and other intangible assets, net	625		47,428			365,184		—			413,237
Other assets	2,495,053		108,349			2,196,815		(4,366,607		)	433,610
Investment in subsidiaries	930,357		1,372,617			16,077,482		(18,380,456		)	—
Total assets	$	13,996,764	$	13,529,876		$	35,505,624	$	(51,112,391	)	$	11,919,873
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	40,000	$	35		$	5,544	$	—		$	45,579
Accounts payable	—		1,657,866			3,035,660		—			4,693,526
Accrued payroll	—		117,170			264,096		—			381,266
Inter company payable	9,532,897		11,370,249			7,462,182		(28,365,328		)	—
Other current liabilities	26,609		825,056			1,084,239		—			1,935,904
Total current liabilities	9,599,506		13,970,376			11,851,721		(28,365,328		)	7,056,275
Long term liabilities	2,092,704		2,091,422			2,703,225		(4,366,607		)	2,520,744
Flextronics International Ltd. shareholders’ equity	2,304,554		(2,531,922		)	20,912,378		(18,380,456		)	2,304,554
Noncontrolling interests	—		—			38,300		—			38,300
Total shareholders’ equity	2,304,554		(2,531,922		)	20,950,678		(18,380,456		)	2,342,854
Total liabilities and shareholders’ equity	$	13,996,764	$	13,529,876		$	35,505,624	$	(51,112,391	)	$	11,919,873

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	—		1,203,600			1,494,385		—			2,697,985
Inventories	—		1,701,872			1,897,136		—			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		10,462,526			14,790,000		(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		46,916			329,527		—			377,218
Other assets	2,585,169		120,739			4,692,156		(6,964,114		)	433,950
Investment in subsidiaries	3,350,690		822,528			15,965,981		(20,139,199		)	—
Total assets	$	15,443,114	$	11,942,875		$	37,576,154	$	(52,461,993	)	$	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	—		1,614,384			3,133,395		—			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		12,603,948			11,746,565		(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		(2,802,058		)	22,941,257		(20,139,199		)	2,163,050
Noncontrolling interest	—		—			38,629		—			38,629
Total shareholders’ equity	2,163,050		(2,802,058		)	22,979,886		(20,139,199		)	2,201,679
Total liabilities and shareholders’ equity	$	15,443,114	$	11,942,875		$	37,576,154	$	(52,461,993	)	$	12,500,150

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations for the Three-Month Period Ended September 26, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,456,995		$	5,219,767		$	(3,148,245	)	$	6,528,517
Cost of sales	—			4,139,945			5,159,736			(3,148,245		)	6,151,436
Gross profit	—			317,050			60,031			—			377,081
Selling, general and administrative expenses	—			57,525			147,065			—			204,590
Intangible amortization	75			605			7,552			—			8,232
Interest and other, net	(68,309		)	277,193			(198,962		)	—			9,922
Income (loss) from continuing operations before income taxes	68,234			(18,273		)	104,376			—			154,337
Provision for income taxes	—			8,142			7,292			—			15,434
Equity in earnings in subsidiaries	70,669			(49,086		)	50,147			(71,730		)	—
Net income (loss)	$	138,903		$	(75,501	)	$	147,231		$	(71,730	)	$	138,903

Condensed Consolidating Statements of Operations for the Three-Month Period Ended September 27, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,325,352		$	5,239,450		$	(3,154,696	)	$	6,410,106
Cost of sales	—			3,965,291			5,231,088			(3,154,696		)	6,041,683
Gross profit	—			360,061			8,362			—			368,423
Selling, general and administrative expenses	—			57,999			160,501			—			218,500
Intangible amortization	75			955			6,688			—			7,718
Interest and other, net	(163,869		)	284,155			(106,685		)	—			13,601
Income (loss) from continuing operations before income taxes	163,794			16,952			(52,142		)	—			128,604
Provision for income taxes	—			2,188			8,211			—			10,399
Equity in earnings in subsidiaries	(45,589		)	(85,198		)	41,901			88,886			—
Net income (loss)	$	118,205		$	(70,434	)	$	(18,452	)	$	88,886		$	118,205

Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 26, 2014

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	8,968,224	$	10,025,449		$	(5,822,411	)	$	13,171,262
Cost of sales	—			8,298,137		9,937,670			(5,822,411		)	12,413,396
Gross profit	—			670,087		87,779			—			757,866
Selling, general and administrative expenses	—			112,019		301,848			—			413,867
Intangible amortization	150			1,229		13,804			—			15,183
Interest and other, net	(51,777		)	536,944		(500,617		)	—			(15,450		)
Income from continuing operations before income taxes	51,627			19,895		272,744			—			344,266
Provision for income taxes	—			14,790		16,686			—			31,476
Equity in earnings in subsidiaries	261,163			12,774		86,579			(360,516		)	—
Net income (loss)	$	312,790		$	17,879	$	342,637		$	(360,516	)	$	312,790

Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 27, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	8,066,344		$	9,582,043		$	(5,447,156	)	$	12,201,231
Cost of sales	—			7,360,905			9,608,024			(5,447,156		)	11,521,773
Gross profit (loss)	—			705,439			(25,981		)	—			679,458
Selling, general and administrative expenses	800			118,448			322,871			—			442,119
Intangible amortization	150			2,036			13,734			—			15,920
Interest and other, net	(213,203		)	550,750			(304,262		)	—			33,285
Income (loss) from continuing operations before income taxes	212,253			34,205			(58,324		)	—			188,134
Provision for income taxes	10			6,582			4,080			—			10,672
Equity in earnings in subsidiaries	(34,781		)	(95,847		)	34,748			95,880			—
Net income (loss)	$	177,462		$	(68,224	)	$	(27,656	)	$	95,880		$	177,462

Schedule of condensed consolidating statements of comprehensive income (loss)

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended September 26, 2014

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	138,903		$	(75,501	)	$	147,231		$	(71,730	)	$	138,903
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(5,683		)	75,966			65,611			(141,577		)	(5,683		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(2,433		)	(2,058		)	(2,433		)	4,491			(2,433		)
Comprehensive income (loss)	$	130,787		$	(1,593	)	$	210,409		$	(208,816	)	$	130,787

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended September 27, 2013

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	118,205		$	(70,434	)	$	(18,452	)	$	88,886		$	118,205
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(11,988		)	(38,084		)	(39,132		)	77,216			(11,988		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	9,553			4,668			9,553			(14,221		)	9,553
Comprehensive income (loss)	$	115,770		$	(103,850	)	$	(48,031	)	$	151,881		$	115,770

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 26, 2014

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	312,790		$	17,879		$	342,637	$	(360,516	)	$	312,790
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(9,828		)	91,618			71,337		(162,955		)	(9,828		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	8,292			(228		)	8,292		(8,064		)	8,292
Comprehensive income (loss)	$	311,254		$	109,269		$	422,266	$	(531,535	)	$	311,254

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 27, 2013

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	177,462		$	(68,224	)	$	(27,656	)	$	95,880		$	177,462
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(29,497		)	(64,165		)	(66,413		)	130,578			(29,497		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(581		)	3,424			(582		)	(2,842		)	(581		)
Comprehensive income (loss)	$	147,384		$	(128,965	)	$	(94,651	)	$	223,616		$	147,384

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 26, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	24,949		$	217,745		$	63,551		$	—		306,245
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(73,455		)	(64,929		)	(11		)	(138,395		)
Acquisition of businesses, net of cash acquired	—			—			(32,589		)	—			(32,589		)
Proceeds from divesture of business, net of cash held in divested business	—			—			(5,493		)	—			(5,493		)
Investing cash flows from (to) affiliates	(833,951		)	(1,064,718		)	351,146			1,547,523			—
Other investing activities, net	—			(6,134		)	(22,721		)	—			(28,855		)
Net cash provided by (used in) investing activities	(833,951		)	(1,144,307		)	225,414			1,547,512			(205,332		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	—			—			11,387			—			11,387
Repayments of bank borrowings, long-term debt and capital lease obligations	(6,250		)	(888		)	(2,047		)	—			(9,185		)
Payments for repurchases of ordinary shares	(206,771		)	—			—			—			(206,771		)
Net proceeds from issuance of ordinary shares	11,412			—			—			—			11,412
Financing cash flows from (to) affiliates	925,410			1,039,792			(417,690		)	(1,547,512		)	—
Other financing activities, net	—			—			3,382			—			3,382
Net cash provided by (used in) financing activities	723,801			1,038,904			(404,968		)	(1,547,512		)	(189,775		)
Effect of exchange rates on cash and cash equivalents	(83,374		)	(1,139		)	93,999			—			9,486
Net increase (decrease) in cash and cash equivalents	(168,575		)	111,203			(22,004		)	—			(79,376		)
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	470,139		$	321,665		$	722,548		$	—		$	1,514,352

Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 27, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	199,101		$	(729,765	)	$	884,283		$	139		$	353,758
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(175,791		)	(135,190		)	—			(310,981		)
Acquisition of businesses, net of cash acquired	—			(61,587		)	(125,956		)	—			(187,543		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			1,000			—			1,000
Investing cash flows from (to) affiliates	(345,190		)	110,985			(2,108,241		)	2,342,446			—
Other investing activities, net	—			1,165			6,271			—			7,436
Net cash provided by (used in) investing activities	(345,190		)	(125,228		)	(2,362,116		)	2,342,446			(490,088		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	933,000			278			169			—			933,447
Repayments of bank borrowings, long-term debt and capital lease obligations	(403,821		)	(979		)	(1		)	—			(404,801		)
Payments for early retirement of long-term debt	(503,422		)	(41,418		)	—			—			(544,840		)
Payments for repurchases of ordinary shares	(324,594		)	—			—			—			(324,594		)
Net proceeds from issuance of ordinary shares	19,637			—			—			—			19,637
Financing cash flows from (to) affiliates	(90,262		)	823,930			1,608,917			(2,342,585		)	—
Other financing activities, net	—			—			14,743			—			14,743
Net cash provided by (used in) financing activities	(369,462		)	781,811			1,623,828			(2,342,585		)	(306,408		)
Effect of exchange rates on cash and cash equivalents	38,541			1,502			(57,326		)	—			(17,283		)
Net decrease (increase) in cash and cash equivalents	(477,010		)	(71,680		)	88,669			—			(460,021		)
Cash and cash equivalents, beginning of period	740,515			226,372			620,200			—			1,587,087
Cash and cash equivalents, end of period	$	263,505		$	154,692		$	708,869		$	—		$	1,127,066