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

9 Months Ended

Dec. 31, 2014

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets as of December 31, 2014

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	606,521	$	190,162		$	910,538	$	—		$	1,707,221
Accounts receivable	—		1,234,620			1,215,153		—			2,449,773
Inventories	—		1,723,649			1,835,991		—			3,559,640
Inter company receivable	10,447,323		9,136,582			10,145,241		(29,729,146		)	—
Other current assets	3,966		179,289			1,233,331		—			1,416,586
Total current assets	11,057,810		12,464,302			15,340,254		(29,729,146		)	9,133,220
Property and equipment, net	—		476,467			1,638,214		—			2,114,681
Goodwill and other intangible assets, net	550		60,375			356,607		—			417,532
Other assets	2,205,450		115,622			2,179,574		(4,075,606		)	425,040
Investment in subsidiaries	1,435,834		1,470,104			16,170,993		(19,076,931		)	—
Total assets	$	14,699,644	$	14,586,870		$	35,685,642	$	(52,881,683	)	$	12,090,473
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	40,000	$	8		$	5,166	$	—		$	45,174
Accounts payable	—		1,835,874			3,014,641		—			4,850,515
Accrued payroll	—		102,492			243,047		—			345,539
Inter company payable	10,194,546		11,824,715			7,709,885		(29,729,146		)	—
Other current liabilities	37,346		819,820			1,110,328		—			1,967,494
Total current liabilities	10,271,892		14,582,909			12,083,067		(29,729,146		)	7,208,722
Long term liabilities	2,076,660		2,090,365			2,401,487		(4,075,606		)	2,492,906
Flextronics International Ltd. shareholders’ equity (deficit)	2,351,092		(2,086,404		)	21,163,335		(19,076,931		)	2,351,092
Noncontrolling interests	—		—			37,753		—			37,753
Total shareholders’ equity (deficit)	2,351,092		(2,086,404		)	21,201,088		(19,076,931		)	2,388,845
Total liabilities and shareholders’ equity	$	14,699,644	$	14,586,870		$	35,685,642	$	(52,881,683	)	$	12,090,473

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	—		1,229,243			1,468,742		—			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		10,492,169			14,760,357		(25,358,680		)	9,400,326
Property and equipment, net	—		487,166			1,801,490		—			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		763,780			15,994,981		(20,109,451		)	—
Total assets	$	15,443,114	$	11,910,770		$	37,578,511	$	(52,432,245	)	$	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 (deficit)	2,163,050		(2,834,163		)	22,943,614		(20,109,451		)	2,163,050
Noncontrolling interest	—		—			38,629		—			38,629
Total shareholders’ equity (deficit)	2,163,050		(2,834,163		)	22,982,243		(20,109,451		)	2,201,679
Total liabilities and shareholders’ equity	$	15,443,114	$	11,910,770		$	37,578,511	$	(52,432,245	)	$	12,500,150

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,710,233		$	5,484,088		$	(3,169,267	)	$	7,025,054
Cost of sales	—			4,317,463			5,468,201			(3,169,267		)	6,616,397
Gross profit	—			392,770			15,887			—			408,657
Selling, general and administrative expenses	—			57,644			158,349			—			215,993
Intangible amortization	75			708			7,262			—			8,045
Interest and other, net	27,876			224,280			(238,054		)	—			14,102
Income (loss) from continuing operations before income taxes	(27,951		)	110,138			88,330			—			170,517
Provision for income taxes	—			(5,737		)	23,355			—			17,618
Equity in earnings in subsidiaries	180,850			(58,855		)	60,603			(182,598		)	—
Net income (loss)	$	152,899		$	57,020		$	125,578		$	(182,598	)	$	152,899

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	$	—		$	5,023,965		$	6,735,557		$	(4,576,080	)	$	7,183,442
Cost of sales	—			4,661,230			6,699,673			(4,576,080		)	6,784,823
Gross profit	—			362,735			35,884			—			398,619
Selling, general and administrative expenses	—			52,963			171,613			—			224,576
Intangible amortization	75			1,018			4,482			—			5,575
Interest and other, net	(277,297		)	353,773			(61,733		)	—			14,743
Income (loss) from continuing operations before income taxes	277,222			(45,019		)	(78,478		)	—			153,725
Provision for income taxes	26			3,355			5,187			—			8,568
Equity in earnings in subsidiaries	(132,039		)	20,728			53,320			57,991			—
Net income (loss)	$	145,157		$	(27,646	)	$	(30,345	)	$	57,991		$	145,157

Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	13,678,457		$	15,509,537		$	(8,991,678	)	$	20,196,316
Cost of sales	—			12,615,600			15,405,871			(8,991,678		)	19,029,793
Gross profit	—			1,062,857			103,666			—			1,166,523
Selling, general and administrative expenses	—			169,663			460,197			—			629,860
Intangible amortization	225			1,936			21,067			—			23,228
Interest and other, net	(24,933		)	761,224			(737,639		)	—			(1,348		)
Income from continuing operations before income taxes	24,708			130,034			360,041			—			514,783
Provision for income taxes	—			9,053			40,041			—			49,094
Equity in earnings in subsidiaries	440,981			(47,994		)	147,182			(540,169		)	—
Net income (loss)	$	465,689		$	72,987		$	467,182		$	(540,169	)	$	465,689

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	$	—		$	13,090,309		$	16,317,600		$	(10,023,236	)	$	19,384,673
Cost of sales	—			12,025,135			16,304,697			(10,023,236		)	18,306,596
Gross profit (loss)	—			1,065,174			12,903			—			1,078,077
Selling, general and administrative expenses	800			171,411			494,484			—			666,695
Intangible amortization	225			3,055			18,215			—			21,495
Interest and other, net	(489,834		)	904,524			(366,662		)	—			48,028
Income (loss) from continuing operations before income taxes	488,809			(13,816		)	(133,134		)	—			341,859
Provision for income taxes	37			9,937			9,266			—			19,240
Equity in earnings in subsidiaries	(166,153		)	(76,225		)	84,402			157,976			—
Net income (loss)	$	322,619		$	(99,978	)	$	(57,998	)	$	157,976		$	322,619

Schedule of condensed consolidating statements of comprehensive income (loss)

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	152,899		$	57,020		$	125,578		$	(182,598	)	$	152,899
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(15,154		)	42,655			37,167			(79,822		)	(15,154		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(22,797		)	(5,936		)	(22,797		)	28,733			(22,797		)
Comprehensive income (loss)	$	114,948		$	93,739		$	139,948		$	(233,687	)	$	114,948

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		$	(27,646	)	$	(30,345	)	$	57,991		$	145,157
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(13,960		)	(23,210		)	(28,137		)	51,347			(13,960		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	1,097			1			1,097			(1,098		)	1,097
Comprehensive income (loss)	$	132,294		$	(50,855	)	$	(57,385	)	$	108,240		$	132,294

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	465,689		$	72,987		$	467,182		$	(540,169	)	$	465,689
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(24,982		)	134,273			108,504			(242,777		)	(24,982		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(14,505		)	(6,164		)	(14,505		)	20,669			(14,505		)
Comprehensive income (loss)	$	426,202		$	201,096		$	561,181		$	(762,277	)	$	426,202

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		$	(99,978	)	$	(57,998	)	$	157,976		$	322,619
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(43,457		)	(87,375		)	(94,550		)	181,925			(43,457		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	516			3,425			515			(3,940		)	516
Comprehensive income (loss)	$	279,678		$	(183,928	)	$	(152,033	)	$	335,961		$	279,678

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(4,319	)	$	369,594		$	304,149		$	—		669,424
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(76,042		)	(88,340		)	(12		)	(164,394		)
Acquisition of businesses, net of cash acquired	—			(20,092		)	(32,547		)	—			(52,639		)
Proceeds from divesture of business, net of cash held in divested business	—			—			(5,493		)	—			(5,493		)
Investing cash flows from (to) affiliates	(1,163,617		)	(2,455,910		)	805,143			2,814,384			—
Other investing activities, net	(1,500		)	(10,597		)	580			—			(11,517		)
Net cash provided by (used in) investing activities	(1,165,117		)	(2,562,641		)	679,343			2,814,372			(234,043		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	223,000			—			11,523			—			234,523
Repayments of bank borrowings, long-term debt and capital lease obligations	(245,500		)	(1,686		)	(4,151		)	—			(251,337		)
Payments for repurchases of ordinary shares	(290,752		)	—			—			—			(290,752		)
Net proceeds from issuance of ordinary shares	12,341			—			—			—			12,341
Financing cash flows from (to) affiliates	1,575,271			2,180,326			(941,225		)	(2,814,372		)	—
Other financing activities, net	—			—			(29,135		)	—			(29,135		)
Net cash provided by (used in) financing activities	1,274,360			2,178,640			(962,988		)	(2,814,372		)	(324,360		)
Effect of exchange rates on cash and cash equivalents	(137,117		)	(5,893		)	145,482			—			2,472
Net increase (decrease) in cash and cash equivalents	(32,193		)	(20,300		)	165,986			—			113,493
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	606,521		$	190,162		$	910,538		$	—		$	1,707,221

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		$	(1,062,723	)	$	1,704,001		$	(7	)	$	1,118,307
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(184,907		)	(276,246		)	—			(461,153		)
Acquisition of businesses, net of cash acquired	—			(61,587		)	(176,444		)	—			(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		)	(307,423		)	(3,512,640		)	4,126,317			—
Other investing activities, net	—			(832		)	(11,235		)	—			(12,067		)
Net cash provided by (used in) investing activities	(306,254		)	(554,749		)	(3,971,966		)	4,126,317			(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		)	1,537,804			2,617,641			(4,126,310		)	—
Other financing activities, net	—			—			46,298			—			46,298
Net cash provided by (used in) financing activities	(360,510		)	1,495,596			2,635,840			(4,126,310		)	(355,384		)
Effect of exchange rates on cash and cash equivalents	53,341			546			(80,000		)	—			(26,113		)
Net decrease (increase) in cash and cash equivalents	(136,387		)	(121,330		)	287,875			—			30,158
Cash and cash equivalents, beginning of period	740,515			226,372			620,200			—			1,587,087
Cash and cash equivalents, end of period	$	604,128		$	105,042		$	908,075		$	—		$	1,617,245