10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 1, 2016

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to                  

Commission file number 0-23354

FLEXTRONICS INTERNATIONAL LTD.

(Exact name of registrant as specified in its charter)

Singapore	Not Applicable
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

2 Changi South Lane,
Singapore	486123
(Address of registrant’s principal executive offices)	(Zip Code)

 Registrant’s telephone number, including area code

(65) 6876-9899

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Class	Outstanding at June 22, 2016
Ordinary Shares, No Par Value	545,468,473

FLEXTRONICS INTERNATIONAL LTD.

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Report of Independent Registered Public Accounting Firm	3
	Condensed Consolidated Balance Sheets (unaudited) — July 1, 2016 and March 31, 2016	4
	Condensed Consolidated Statements of Operations (unaudited) — Three-Month Periods Ended July 1, 2016 and June 26, 2015	5
	Condensed Consolidated Statements of Comprehensive Income (unaudited) — Three-Month Periods Ended July 1, 2016 and June 26, 2015	6
	Condensed Consolidated Statements of Cash Flows (unaudited) — Three-Month Periods Ended July 1, 2016 and June 26, 2015	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	37
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	39
Signatures		40

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

Flextronics International Ltd.

Singapore

We have reviewed the accompanying condensed consolidated balance sheet of Flextronics International Ltd. and subsidiaries (the “Company”) as of July 1, 2016, and the related condensed consolidated statements of operations, comprehensive income and cash flows for the three-month periods ended July 1, 2016 and June 26, 2015. These interim financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to such condensed consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Flextronics International Ltd. and subsidiaries as of March 31, 2016, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated May 20, 2016, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of March 31, 2016 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ DELOITTE & TOUCHE LLP

San Jose, California

July 27, 2016

3

FLEXTRONICS INTERNATIONAL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of July 1, 2016			As of March 31, 2016
	(In thousands, except share amounts) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,679,335		$	1,607,570
Accounts receivable, net of allowance for doubtful accounts of $66,385 and $64,608 as of July 1, 2016 and March 31, 2016, respectively	2,057,943			2,044,757
Inventories	3,594,837			3,491,656
Other current assets	1,088,844			1,171,143
Total current assets	8,420,959			8,315,126
Property and equipment, net	2,296,445			2,257,633
Goodwill and other intangible assets, net	1,324,614			1,345,820
Other assets	466,506			466,402
Total assets	$	12,508,524		$	12,384,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	66,020		$	65,166
Accounts payable	4,317,571			4,248,292
Accrued payroll	377,527			353,547
Other current liabilities	1,866,585			1,905,200
Total current liabilities	6,627,703			6,572,205
Long-term debt, net of current portion	2,692,596			2,709,389
Other liabilities	521,631			497,857
Commitments and contingencies (Note 11)
Shareholders’ equity
Flextronics International Ltd. shareholders’ equity
Ordinary shares, no par value; 596,396,914 and 595,062,966 issued, and 546,157,559 and 544,823,611 outstanding as of July 1, 2016 and March 31, 2016, respectively	6,922,811			6,987,214
Treasury stock, at cost; 50,239,355 shares as of July 1, 2016 and March 31, 2016	(388,215		)	(388,215		)
Accumulated deficit	(3,786,483		)	(3,892,212		)
Accumulated other comprehensive loss	(124,706		)	(135,915		)
Total Flextronics International Ltd. shareholders’ equity	2,623,407			2,570,872
Noncontrolling interests	43,187			34,658
Total shareholders’ equity	2,666,594			2,605,530
Total liabilities and shareholders’ equity	$	12,508,524		$	12,384,981

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

FLEXTRONICS INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands, except per share amounts) (Unaudited)
Net sales	$	5,876,813	$	5,566,248
Cost of sales	5,470,818		5,213,907
Gross profit	405,995		352,341
Selling, general and administrative expenses	239,546		209,385
Intangible amortization	21,598		7,671
Interest and other, net	24,399		16,505
Other charges, net	3,529		164
Income before income taxes	116,923		118,616
Provision for income taxes	11,194		7,766
Net income	$	105,729	$	110,850
Earnings per share
Basic	$	0.19	$	0.20
Diluted	$	0.19	$	0.19
Weighted-average shares used in computing per share amounts:
Basic	544,631		565,545
Diluted	551,029		577,997

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

FLEXTRONICS INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands) (Unaudited)
Net income	$	105,729	$	110,850
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861		2,783
Unrealized gain on derivative instruments and other, net of zero tax	1,348		12,829
Comprehensive income	$	116,938	$	126,462

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

FLEXTRONICS INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	105,729		$	110,850
Depreciation, amortization and other impairment charges	129,500			110,119
Changes in working capital and other	28,703			141,307
Net cash provided by operating activities	263,932			362,276
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(159,103		)	(138,348		)
Proceeds from the disposition of property and equipment	15,722			1,512
Acquisition of businesses, net of cash acquired	(9,492		)	(18,580		)
Proceeds from divestiture of business, net of cash held in divested business	14,828			1,000
Other investing activities, net	26,261			(7,580		)
Net cash used in investing activities	(111,784		)	(161,996		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings and long-term debt	75,018			595,548
Repayments of bank borrowings and long-term debt	(92,222		)	(8,457		)
Payments for repurchases of ordinary shares	(94,715		)	(99,995		)
Net proceeds from issuance of ordinary shares	3,966			44,602
Other financing activities, net	12,901			(25,252		)
Net cash (used in) provided by financing activities	(95,052		)	506,446
Effect of exchange rates on cash and cash equivalents	14,669			(3,723		)
Net increase in cash and cash equivalents	71,765			703,003
Cash and cash equivalents, beginning of period	1,607,570			1,628,408
Cash and cash equivalents, end of period	$	1,679,335		$	2,331,411
Non-cash investing activity:
Unpaid purchases of property and equipment	$	85,571		$	122,601

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.  ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION

Organization of the Company

Flextronics International Ltd. ("Flex", or the "Company") was incorporated in the Republic of Singapore in May 1990. The Company's operations have expanded over the years through a combination of organic growth and acquisitions. The Company is a globally-recognized leading provider of innovative design, engineering, manufacturing, and supply chain services and solutions that span from sketch to scale^tm; from conceptual sketch to full-scale production. The Company designs, builds, ships and services complete packaged consumer electronics and industrial products for original equipment manufacturers ("OEMs"), through its activities in the following segments: High Reliability Solutions ("HRS"), which is comprised of medical business including consumer health, digital health, disposables, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electronics, connectivity, and clean technologies; and defense and aerospace businesses, focused on commercial aviation, defense and military; Consumer Technologies Group ("CTG"), which includes mobile devices business, including smart phones; consumer electronics business, including connected living, wearable electronics including digital sport, game consoles, and connectivity devices; and high-volume computing business, including various supply chain solutions for notebook personal computers ("PC"), tablets, and printers; in addition, CTG group is expanding its business relationships to include supply chain optimization for non-electronics products such as shoes and clothing; Industrial and Emerging Industries ("IEI"), which is comprised of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting; and Communications & Enterprise Compute ("CEC"), includes radio access base stations, remote radio heads, and small cells for wireless infrastructure; optical, routing, broadcasting, and switching products for the data and video networks; server and storage platforms for both enterprise and cloud-based deployments; next generation storage and security appliance products; and rack level solutions, converged infrastructure and software-defined product solutions. The Company's strategy is to provide customers with a full range of cost competitive, vertically integrated global supply chain solutions through which the Company can design, build, ship and service a complete packaged product for its OEM customers. This enables the Company's OEM customers to leverage the Company's supply chain solutions to meet their product requirements throughout the entire product life cycle.

The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance) and supply chain management software solutions and component product offerings (including rigid and flexible printed circuit boards and power adapters and chargers).

Basis of Presentation

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, 2016 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 endedJuly 1, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017.

The first quarters for fiscal year 2017 and fiscal year 2016 ended on July 1, 2016, which is comprised of 92 days in the period, and June 26, 2015, which is comprised of 87 days in the period, respectively.

The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. Noncontrolling interests are presented as a separate component of total shareholders' equity in the condensed consolidated balance sheets. The associated noncontrolling owners' interests are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations.

8

The Company has certain non-majority-owned equity investments in non-publicly traded companies that are accounted for using the equity method of accounting. The equity method of accounting is used when the Company has the ability to significantly influence the operating decisions of the issuer, or if the Company has an ownership percentage of a corporation equal to or generally greater than 20% but less than 50%, and for non-majority-owned investments in partnerships when generally greater than 5%. The equity in earnings (losses) of equity method investees are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations.

Recently Adopted Accounting Pronouncement

In March 2016, the Financial Accounting Standards Board ("FASB") issued new guidance intended to reduce the cost and complexity of the accounting for share-based payments. The new guidance simplifies various aspects of the accounting for share-based payments including income tax effects, withholding requirements and forfeitures. The Company elected to early adopt this new guidance during the three-month period endedJuly 1, 2016. The guidance eliminates additional paid in capital ("APIC") pools and requires companies to recognize all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. It also addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. Prior to adoption, the Company elected to not deduct tax benefits for stock-based compensation awards on its tax returns, and accordingly, did not have any excess tax benefits or tax deficiencies upon adoption. The Company therefore determined that adoption of the new guidance had no impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. After assessment, it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did not record a retrospective adjustment. The Company finally determined that the adoption of this guidance did not have a significant impact on the consolidated financial position, results of operations and cash flows of the Company.

2.  BALANCE SHEET ITEMS

Inventories

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

	As of July 1, 2016		As of March 31, 2016
	(In thousands)
Raw materials	$	2,347,860	$	2,234,512
Work-in-progress	493,056		561,282
Finished goods	753,921		695,862
	$	3,594,837	$	3,491,656

Goodwill and Other Intangible Assets

The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the three-month period endedJuly 1, 2016:

9

		HRS			CTG		IEI		CEC		Amount
	(In thousands)
Balance, beginning of the year		$	439,336		$	68,234	$	322,803	$	111,693	$	942,066
Additions (1) (2)		(1,787		)	—		9,544		—		7,757
Purchase accounting adjustments (3)		794			—		—		—		794
Foreign currency translation adjustments		(5,852		)	—		—		—		(5,852		)
Balance, end of the period		$	432,491		$	68,234	$	332,347	$	111,693	$	944,765

(1) The goodwill generated from the Company’s business combination completed during the three-month period endedJuly 1, 2016 is primarily related to value placed on the acquired employee workforce, service offerings and capabilities of an acquired business. The goodwill is not deductible for income tax purposes. See note 10 for additional information.

(2) During the three-month period endedJuly 1, 2016, the Company disposed of a non-strategic business within the HRS segment, and recorded a reduction of goodwill of $1.8 million accordingly, which is included in the loss on sale in other expense on the condensed consolidated statement of operations.

(3) Includes adjustments to estimates resulting from the finalization of management's review of the valuation of assets acquired and liabilities assumed through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company.

The components of acquired intangible assets are as follows:

	As of July 1, 2016							As of March 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Intangible assets:
Customer-related intangibles	$	221,466	$	(77,693	)	$	143,773	$	223,046	$	(66,473	)	$	156,573
Licenses and other intangibles	283,743		(47,667		)	236,076		285,053		(37,872		)	247,181
Total	$	505,209	$	(125,360	)	$	379,849	$	508,099	$	(104,345	)	$	403,754

The gross carrying amounts of intangible assets are removed when fully amortized. During the three-month period endedJuly 1, 2016, the total value of intangible assets decreased primarily as a result of additional amortization and foreign currency translation adjustments. The estimated future annual amortization expense for intangible assets is as follows:

Fiscal Year Ending March 31,	Amount
	(In thousands)
2017 (1)	$	55,390
2018	62,414
2019	55,825
2020	47,288
2021	43,025
Thereafter	115,907
Total amortization expense	$	379,849

____________________________________________________________

(1) Represents estimated amortization for the remaining nine-month period ending March 31, 2017.

Other Current Assets

10

Other current assets include approximately $460.3 million and $501.1 million as of July 1, 2016 and March 31, 2016, respectively, for the deferred purchase price receivable from the Company's Global and North American Asset-Backed Securitization programs. See note 8 for additional information.

Also included in other current assets is the value of certain assets purchased on behalf of a customer and financed by a third party banking institution in the amounts of $83.8 million and $83.6 million as of July 1, 2016 and March 31, 2016, respectively.

Other Current Liabilities

Other current liabilities include customer working capital advances of $219.3 million and $253.7 million, customer-related accruals of $498.5 million and $479.5 million, and deferred revenue of $330.0 million and $332.3 million as of July 1, 2016 and March 31, 2016, respectively. The customer working capital advances are not interest-bearing, do not have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production. Other current liabilities also include the outstanding balance due to the third party banking institution related to the financed equipment discussed above of $96.9 million and $122.0 million as of July 1, 2016 and March 31, 2016, respectively.

3.  SHARE-BASED COMPENSATION

The Company's primary plan used for granting equity compensation awards is the 2010 Equity Incentive Plan (the "2010 Plan").

During fiscal year 2016, in conjunction with the acquisition of NEXTracker Inc. ("NEXTracker"), the Company assumed all of the outstanding, unvested share bonus awards and outstanding, unvested options to purchase shares of common stock of NEXTracker, and converted all of these shares into Flex awards. As a result, the Company now offers the 2014 NEXTracker Equity Incentive Plan (the "NEXTracker Plan").

Further, during the first quarter of fiscal year 2017, in conjunction with an immaterial acquisition, the Company assumed all of the outstanding, unvested options to purchase shares of common stock of the acquiree, and converted all of these shares into Flex awards. As a result, the Company now offers an additional equity compensation plan, the BrightBox Technologies 2013 Plan (the "BrightBox Plan").

The Company early adopted new guidance intended to reduce cost and complexity of the accounting for share-based payments, as discussed further in note 1.

The following table summarizes the Company’s share-based compensation expense:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands)
Cost of sales	$	2,433	$	2,018
Selling, general and administrative expenses	21,364		14,108
Total share-based compensation expense	$	23,797	$	16,126

The 2010 Equity Incentive Plan

Total unrecognized compensation expense related to share options under the 2010 Plan is not significant. As of July 1, 2016, the number of options outstanding and exercisable under the 2010 Plan was 1.2 million at a weighted-average exercise price of $8.49 per share, for both.

During the three-month period endedJuly 1, 2016, the Company granted 5.6 million unvested share bonus awards under the 2010 Plan. Of this amount, approximately 4.7 million unvested share bonus awards have an average grant date price of $12.80 per share. Further, approximately 0.7 million of these unvested shares represents the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions. The average grant date fair value of these awards contingent on certain market conditions was estimated to be $17.57 per award and was calculated using a Monte Carlo simulation. The remaining 0.2 million of unvested shares bonus awards under the 2010 Plan have an average grant date price of $12.82 per share and represents the target amount of grants made to certain executive officers whereby vesting is contingent on meeting certain free cash flow targets. The number of shares under the 2010 Plan, contingent on market conditions that

11

ultimately will vest range from zero up to a maximum of 1.4 million based on a measurement of the percentile rank of the Company’s total shareholder return over a certain specified period against the Standard and Poor’s (“S&P”) 500 Composite Index and will cliff vest after a period of three years, if such market conditions have been met. The number of shares under the 2010 Plan, contingent on free cash flow targets that ultimately will vest range from zero up to a maximum of 0.4 million of the target payment based on a measurement of cumulative three-year increase of free cash flow from operations of the Company, and will cliff vest after a period of three years.

As of July 1, 2016, approximately 16.4 million unvested share bonus awards under the 2010 Plan were outstanding, of which vesting for a targeted amount of 2.3 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 4.6 million based on the achievement levels of the respective conditions. During the three-month period ended July 1, 2016, 3.5 million shares under the 2010 Plan vested in connection with the share bonus awards with market conditions granted in fiscal year 2014.

As of July 1, 2016, total unrecognized compensation expense related to unvested share bonus awards under the 2010 Plan is $177.4 million, and will be recognized over a weighted-average remaining vesting period of 3.0 years. Approximately $30.1 million of the total unrecognized compensation cost, is related to awards under the 2010 Plan whereby vesting is contingent on meeting certain market conditions.

The 2014 NEXTracker Equity Incentive Plan

All shares previously granted under the NEXTracker plan are the result of the Company's conversion of all outstanding, unvested shares of NEXTracker into unvested shares of the Company, as part of the acquisition. Therefore, no additional share options or share bonus awards were granted by the Company during the three-month period endedJuly 1, 2016.

As of July 1, 2016, total unrecognized compensation expense related to share options under the NEXTracker Plan is $14.0 million, and will be recognized over a weighted-average remaining vesting period of 2.6 years. As of July 1, 2016, the number of options outstanding and exercisable was 2.4 million and 0.3 million, respectively, at a weighted-average exercise price of $3.79 per share and $5.35 per share, respectively.

As of July 1, 2016, approximately 2.3 million unvested share bonus awards were outstanding.  The total unrecognized compensation expense related to these unvested share bonus awards under the NEXTracker Plan is $16.5 million, and will be recognized over a weighted-average remaining vesting period of 2.1 years.

The BrightBox Technologies 2013 Plan

During the three-month period endedJuly 1, 2016, the Company granted 0.2 million share options under the BrightBox Plan, at an average grant date fair value price of $11.99 per share, and with a vesting period of three years from the vesting commencement date. All shares granted under the BrightBox plan are the result of the Company's conversion of all outstanding, unvested shares of BrightBox into unvested shares of the Company, as part of the acquisition. No additional grants will be made out of this plan in the future.

As of July 1, 2016, total unrecognized compensation expense related to share options under the BrightBox Plan is $1.8 million, and will be recognized over a weighted-average remaining vesting period of 2.9 years. As of July 1, 2016, the number of options outstanding was 0.2 million, at a weighted-average exercise price of $0.51 per share. No options under this plan were exercisable as of July 1, 2016.

12

4.  EARNINGS PER SHARE

The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flextronics International Ltd.:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands, except per share amounts)
Net income	$	105,729	$	110,850
Shares used in computation:
Weighted-average ordinary shares outstanding	544,631		565,545
Basic earnings per share	0.19		0.20
Diluted earnings per share:
Net income	$	105,729	$	110,850
Shares used in computation:
Weighted-average ordinary shares outstanding	544,631		565,545
Weighted-average ordinary share equivalents from stock options and awards (1)	6,398		12,452
Weighted-average ordinary shares and ordinary share equivalents outstanding	551,029		577,997
Diluted earnings per share	0.19		0.19

____________________________________________________________

(1)  Options to purchase ordinary shares of 1.0 million and 2.0 million during the three-month periods ended July 1, 2016 and June 26, 2015, respectively, and share bonus awards of 0.8 million for the three-month period ended July 1, 2016, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No anti-dilutive share bonus awards were excluded for the three-month period ended June 26, 2015.

5.  INTEREST AND OTHER, NET

During the three-month periods endedJuly 1, 2016 and June 26, 2015, the Company recognized interest expense of $26.9 million and $20.1 million, respectively, on its debt obligations outstanding.

13

6.  FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company primarily enters into forward contracts and foreign currency swap contracts to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of July 1, 2016, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.1 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	912,000	—	$	137,283	$	—
EUR	38,380	131,471	42,616		149,493
HUF	15,656,000	—	54,854		—
ILS	101,600	—	26,359		—
INR	1,200,326	—	17,300		—
MXN	1,596,000	—	86,154		—
MYR	184,000	10,000	45,590		2,478
RON	71,600	—	17,567		—
Other	N/A	N/A	35,075		—
			462,798		151,971
Other Foreign Currency Contracts
BRL	—	387,000	—		119,618
CHF	7,341	24,799	7,493		25,317
CNY	889,314	—	133,700		—
DKK	198,100	157,200	29,573		23,468
EUR	827,266	1,019,015	919,695		1,133,079
GBP	33,926	59,056	46,021		80,247
HUF	44,240,000	40,598,000	155,005		142,244
ILS	128,800	124,420	33,416		32,280
INR	5,510,229	13,599	81,695		200
MXN	1,578,370	353,640	85,202		19,090
MYR	348,847	33,900	86,434		8,399
PLN	107,804	59,773	27,076		15,013
RON	102,172	85,811	25,068		21,054
SEK	450,235	817,956	53,085		96,704
Other	N/A	N/A	57,985		26,215
			1,741,448		1,742,928
Total Notional Contract Value in USD			$	2,204,246	$	1,894,899

As of July 1, 2016, the fair value of the Company’s short-term foreign currency contracts was not material and is included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of July 1, 2016 and March 31, 2016, the Company also has included net deferred gains and losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed

14

consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred gains were $1.6 million as of July 1, 2016, and are expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of interest and other, net in the condensed consolidated statements of operations.

The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	July 1, 2016		March 31, 2016		Balance Sheet Location	July 1, 2016		March 31, 2016
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	6,645	$	5,510	Other current liabilities	$	4,424	$	2,446
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,744	$	17,138	Other current liabilities	$	7,434	$	18,645

The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented.

7.  ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in accumulated other comprehensive loss by component, net of tax, are as follows:

15

	Three-Month Periods Ended
	July 1, 2016									June 26, 2015
	Unrealized gain (loss) on derivative instruments and other			Foreign currency translation adjustments			Total			Unrealized gain (loss) on derivative instruments and other			Foreign currency translation adjustments			Total
	(In thousands)
Beginning balance	$	(41,522	)	$	(94,393	)	$	(135,915	)	$	(68,266	)	$	(112,239	)	$	(180,505	)
Other comprehensive gain (loss) before reclassifications	1,493			10,086			11,579			(601		)	2,631			2,030
Net (gains) losses reclassified from accumulated other comprehensive loss	(145		)	(225		)	(370		)	13,430			152			13,582
Net current-period other comprehensive gain	1,348			9,861			11,209			12,829			2,783			15,612
Ending balance	$	(40,174	)	$	(84,532	)	$	(124,706	)	$	(55,437	)	$	(109,456	)	$	(164,893	)

Net gains reclassified from accumulated other comprehensive loss during the three-month period ended July 1, 2016 relating to derivative instruments and other includes $0.6 million attributable to the Company’s cash flow hedge instruments which were recognized as a component of cost of sales in the condensed consolidated statement of operations.

Substantially all unrealized losses relating to derivative instruments and other, reclassified from accumulated other comprehensive loss for the three-month periods endedJune 26, 2015, was recognized as a component of cost of sales in the condensed consolidated statement of operations, which primarily relate to the Company’s foreign currency contracts accounted for as cash flow hedges. 

8.  TRADE RECEIVABLES SECURITIZATION

The Company sells trade receivables under two asset-backed securitization programs and under an accounts receivable factoring program.

Asset-Backed Securitization Programs

The Company continuously sells designated pools of trade receivables under its Global Asset-Backed Securitization Agreement (the “Global Program”) and its North American Asset-Backed Securitization Agreement (the “North American Program,” collectively, the “ABS Programs”) to affiliated special purpose entities, each of which in turn sells 100% of the receivables to unaffiliated financial institutions. These programs allow the operating subsidiaries to receive a cash payment and a deferred purchase price receivable for sold receivables. Following the transfer of the receivables to the special purpose entities, the transferred receivables are isolated from the Company and its affiliates, and upon the sale of the receivables from the special purpose entities to the unaffiliated financial institutions, effective control of the transferred receivables is passed to the unaffiliated financial institutions, which has the right to pledge or sell the receivables. Although the special purpose entities are consolidated by the Company, they are separate corporate entities and their assets are available first to satisfy the claims of their creditors. The investment limits set by the financial institutions are $700.0 million for the Global Program, of which $600.0 million is committed and $100.0 million is uncommitted, and $265.0 million for the North American Program, of which $225.0 million is committed and $40.0 million is uncommitted. Both programs require a minimum level of deferred purchase price receivable to be retained by the Company in connection with the sales.

The Company services, administers and collects the receivables on behalf of the special purpose entities and receives a servicing fee of 0.1% to 0.5% of serviced receivables per annum. Servicing fees recognized during the three-month periods endedJuly 1, 2016 and June 26, 2015 were not material and are included in interest and other, net within the condensed consolidated statements of operations. As the Company estimates the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets and liabilities are recognized.

16

As of July 1, 2016, approximately $1.3 billion of accounts receivable had been sold to the special purpose entities under the ABS Programs for which the Company had received net cash proceeds of approximately $885.0 million and deferred purchase price receivables of approximately $460.3 million. As of March 31, 2016, approximately $1.4 billion of accounts receivable had been sold to the special purpose entities for which the Company had received net cash proceeds of $880.8 million and deferred purchase price receivables of approximately $501.1 million. The portion of the purchase price for the receivables which is not paid by the unaffiliated financial institutions in cash is a deferred purchase price receivable, which is paid to the special purpose entity as payments on the receivables are collected from account debtors. The deferred purchase price receivable represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The deferred purchase price receivables are included in other current assets as of July 1, 2016 and March 31, 2016, and were carried at the expected recovery amount of the related receivables. The difference between the carrying amount of the receivables sold under these programs and the sum of the cash and fair value of the deferred purchase price receivables received at time of transfer is recognized as a loss on sale of the related receivables and recorded in interest and other, net in the condensed consolidated statements of operations and were immaterial for all periods presented.

As of July 1, 2016 and March 31, 2016, the accounts receivable balances that were sold under the ABS Programs were removed from the condensed consolidated balance sheets and the net cash proceeds received by the Company were included as cash provided by operating activities in the condensed consolidated statements of cash flows.

For the three-month periods endedJuly 1, 2016 and June 26, 2015, cash flows from sales of receivables under the ABS Programs consisted of approximately $1.4 billion and $1.1 billion, for transfers of receivables, respectively (of which approximately $59.5 million and $162.7 million, respectively, represented new transfers and the remainder proceeds from collections reinvested in revolving-period transfers).

The following table summarizes the activity in the deferred purchase price receivables account:

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Beginning balance	$	501,097		$	600,672
Transfers of receivables	762,184			767,048
Collections	(802,947		)	(851,433		)
Ending balance	$	460,334		$	516,287

Trade Accounts Receivable Sale Programs

The Company also sold accounts receivables to certain third-party banking institutions. The outstanding balance of receivables sold and not yet collected was approximately $348.4 million and $339.4 million as of July 1, 2016 and March 31, 2016, respectively. For the three-month periods endedJuly 1, 2016 and June 26, 2015, total accounts receivable sold to certain third party banking institutions was approximately $453.0 million and $637.9 million, respectively. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows.

9.  FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1 - Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

The Company has deferred compensation plans for its officers and certain other employees. Amounts deferred under the plans are invested in hypothetical investments selected by the participant or the participant’s investment manager. The

17

Company’s deferred compensation plan assets are for the most part included in other noncurrent assets on the condensed consolidated balance sheets and primarily include investments in equity securities that are valued using active market prices.

Level 2 - Applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets) such as cash and cash equivalents and money market funds; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

The Company values foreign exchange forward contracts using level 2 observable inputs which primarily consist of an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount.

The Company’s cash equivalents are comprised of bank deposits and money market funds, which are valued using level 2 inputs, such as interest rates and maturity periods. Due to their short-term nature, their carrying amount approximates fair value.

The Company’s deferred compensation plan assets also include money market funds, mutual funds, corporate and government bonds and certain convertible securities that are valued using prices obtained from various pricing sources. These sources price these investments using certain market indices and the performance of these investments in relation to these indices. As a result, the Company has classified these investments as level 2 in the fair value hierarchy.

Level 3 - Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. 

The Company has accrued for contingent consideration in connection with its business acquisitions, which is measured at fair value based on certain internal models and unobservable inputs.

The fair value of the liability was estimated using a simulation-based measurement technique with significant inputs that are not observable in the market and thus represents a level 3 fair value measurement. The significant inputs in the fair value measurement not supported by market activity included the Company's probability assessments of expected future revenue during the earn-out period and associated volatility, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the merger agreement. Significant decreases in expected revenue during the earn-out period, or significant increases in the discount rate or volatility in isolation would result in lower fair value estimates. The interrelationship between these inputs is not considered significant.

The following table summarizes the activities related to contingent consideration:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands)
Beginning balance	$	73,423	$	4,500
Additions to accrual	—		—
Payments	—		—
Fair value adjustments	1,835		—
Ending balance	$	75,258	$	4,500

The Company values deferred purchase price receivables relating to its asset-backed securitization program based on a discounted cash flow analysis using unobservable inputs (i.e., level 3 inputs), which are primarily risk free interest rates adjusted for the credit quality of the underlying creditor. Due to its high credit quality and short term maturity, the fair value approximates carrying value. Significant increases in either of the major unobservable inputs (credit spread, risk free interest rate) in isolation would result in lower fair value estimates, however the impact is not meaningful. The interrelationship between these inputs is also insignificant. Refer to note 8 for a reconciliation of the change in the deferred purchase price receivable during the three-month periods endedJuly 1, 2016 and June 26, 2015.

18

There were no transfers between levels in the fair value hierarchy during the three-month periods endedJuly 1, 2016 and June 26, 2015.

Financial Instruments Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of July 1, 2016
	Level 1		Level 2			Level 3			Total
	(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	896,031		$	—		$	896,031
Deferred purchase price receivable (Note 8)	—		—			460,334			460,334
Foreign exchange contracts (Note 6)	—		17,389			—			17,389
Deferred compensation plan assets:									0
Mutual funds, money market accounts and equity securities	8,504		41,455			—			49,959
Liabilities:									0
Foreign exchange contracts (Note 6)	$	—	$	(11,858	)	$	—		$	(11,858	)
Contingent consideration in connection with business acquisitions	—		—			(75,258		)	(75,258		)
	Fair Value Measurements as of March 31, 2016
	Level 1		Level 2			Level 3			Total
	(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	1,074,132		$	—		$	1,074,132
Deferred purchase price receivable (Note 8)	—		—			501,097			501,097
Foreign exchange contracts (Note 6)	—		22,648			—			22,648
Deferred compensation plan assets:									0
Mutual funds, money market accounts and equity securities	9,228		40,556			—			49,784
Liabilities:									0
Foreign exchange contracts (Note 6)	$	—	$	(21,091	)	$	—		$	(21,091	)
Contingent consideration in connection with business acquisitions	—		—			(73,423		)	(73,423		)

Other financial instruments

The following table presents the Company’s debt not carried at fair value:

19

	As of July 1, 2016				As of March 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In thousands)
Term Loan, including current portion, due in installments through August 2018	$	573,750	$	567,295	$	577,500	$	573,533	Level 1
Term Loan, including current portion, due in installments through March 2019	536,250		527,536		547,500		542,709		Level 1
4.625% Notes due February 2020	500,000		523,650		500,000		524,735		Level 1
5.000% Notes due February 2023	500,000		524,296		500,000		507,500		Level 1
4.750% Notes due June 2025	595,684		613,950		595,589		604,926		Level 1
Total	$	2,705,684	$	2,756,727	$	2,720,589	$	2,753,403

The term loans and Notes due February 2020, February 2023 and June 2025 are valued based on broker trading prices in active markets. 

The Company values its €50 million (approximately $55.5 million as of July 1, 2016), 5-year, unsecured, term-loan due September 30, 2020 based on the current market rate, and as of July 1, 2016, the carrying amount approximates fair value.

10. BUSINESS AND ASSETS ACQUISITIONS & DIVESTITURES

On May 16, 2016, the Company acquired 100% of the outstanding share capital of a software architecture and data science solutions company, which strengthens the Company's capabilities in the energy market within the IEI segment. The Company paid $8.9 million, net of $0.2 million of cash acquired. The property and equipment acquired and liabilities assumed were not material to the Company's consolidated financial results. The Company also recorded $9.5 million of goodwill and intangibles of $1.7 million, and assumed the equity incentive plan of the acquiree. Results of operations were included in the Company’s condensed consolidated financial results beginning on the date of acquisition, and was not material to the Company’s consolidated financial results for the three-month period endedJuly 1, 2016.

During the three-month period endedJuly 1, 2016, the Company disposed of a non-strategic business within the HRS segment. The Company received $12.5 million of proceeds, net of an immaterial amount of cash held in the divested business. The property and equipment sold and liabilities transferred were not material to the Company's consolidated financial results. The loss on disposition was not material to the Company’s consolidated financial results, and is included in other charges, net in the condensed consolidated statements of operations for the three-month period endedJuly 1, 2016.

Pro-forma results of operations for the acquisition have not been presented, because the effects were immaterial to the Company’s financial results for all periods presented.

The Company is in the process of evaluating the fair value of the assets and liabilities related to business combinations completed during the recent periods. Additional information, which existed as of the acquisition date, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the date of acquisition. Changes to amounts recorded as assets and liabilities may result in a corresponding adjustment to goodwill during the respective measurement periods.

20

11.  COMMITMENTS AND CONTINGENCIES

During the third quarter of fiscal 2014, one of the Company's Brazilian subsidiaries received an assessment for certain sales and import taxes. The tax assessment notice was for nine months of calendar year 2010 for an alleged amount of 52 million Brazilian reals (approximately USD $16 million based on the exchange rate as of July 1, 2016) plus interest. This assessment is in the second stage of the review process at the administrative level. During the fourth quarter of fiscal year 2016, the same Brazilian subsidiary received a further assessment related to the same import taxes of an additional 57 million Brazilian reals (approximately USD $18 million based on the exchange rate as of July 1, 2016) plus interest. This assessment is in the first stage of the review process at the administrative level. The Company plans to continue to vigorously oppose both of these assessments, as well as any future assessments. The Company is, however, unable to determine the likelihood of an unfavorable outcome of these assessments against our Brazilian subsidiary. While the Company believes there is no legal basis for the alleged liabilities, due to the complexities and uncertainty surrounding the administrative-review and judicial processes in Brazil and the nature of the claims, it is unable to reasonably estimate a range of loss for this assessment or any future assessments that are reasonably possible. The Company does not expect final judicial determination on either of these claims for several years.

During fiscal year 2015, one of the Company's non-operating Brazilian subsidiaries received an assessment of an approximately USD $100 million related to income and social contribution taxes, interest and penalties. During the first quarter of fiscal year 2017, the Company received a final favorable judgment in the judicial process reversing the assessment and the case is now closed. As the Company had previously determined there was no legal basis for the assessment, no adjustment was required to be recorded during the first quarter of fiscal year 2017.

In addition, from time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of these matters, which are in excess of amounts already accrued in the Company’s condensed consolidated balance sheets, would not be material to the financial statements as a whole.

12.  SHARE REPURCHASES

During the three-month period endedJuly 1, 2016, the Company repurchased 7.3 million shares at an aggregate purchase price of $91.0 million, and retired all of these shares.

Under the Company’s current share repurchase program, the Board of Directors authorized repurchases of its outstanding ordinary shares for up to $500 million in accordance with the share repurchase mandate approved by the Company’s shareholders at the date of the most recent Extraordinary General Meeting held on August 20, 2015. As of July 1, 2016, shares in the aggregate amount of $151.1 million were available to be repurchased under the current plan.

13.  SEGMENT REPORTING

The Company has four reportable segments: HRS, CTG, IEI, and CEC. These segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 for a description of the various product categories manufactured under each of these segments.

An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, other charges (income), net and interest and other, net.

Selected financial information by segment is as follows:

21

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Net sales:
Communications & Enterprise Compute	$	2,195,990		$	1,966,562
Consumer Technology Group	1,313,782			1,564,964
Industrial & Emerging Industries	1,289,015			1,130,138
High Reliability Solutions	1,078,026			904,584
	$	5,876,813		$	5,566,248
Segment income and reconciliation of income before tax:
Communications & Enterprise Compute	$	61,899		$	57,065
Consumer Technology Group	24,634			38,843
Industrial & Emerging Industries	49,977			28,999
High Reliability Solutions	88,536			59,886
Corporate and Other	(34,800		)	(25,711		)
Total segment income	190,246			159,082
Reconciling items:
Intangible amortization	21,598			7,671
Stock-based compensation	23,797			16,126
Other charges, net	3,529			164
Interest and other, net	24,399			16,505
Income before income taxes	$	116,923		$	118,616

Corporate and other primarily includes corporate services costs that are not included in the Chief Operating Decision Maker's ("CODM") assessment of the performance of each of the identified reporting segments.

Property and equipment on a segment basis is not disclosed as it is not separately identified and is not internally reported by segment to the Company's CODM.

14.  SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Flextronics International Ltd. (“Parent”) has three tranches of Notes of $500 million, $500 million, and $600 million, respectively, each outstanding, which mature on February 15, 2020, February 15, 2023 and June 15, 2025, respectively. These Notes are senior unsecured obligations, and are guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company’s 100% owned subsidiaries (the “guarantor subsidiaries”). These subsidiary guarantees will terminate upon 1) a sale or other disposition of the guarantor or the sale or disposition of all or substantially all the assets of the guarantor (other than to the Parent or a subsidiary); 2) such guarantor ceasing to be a guarantor or a borrower under the Company’s Term Loan Agreement and the Revolving Line of Credit; 3) defeasance or discharge of the Notes, as provided in the Notes indenture; or 4) if at any time the Notes are rated investment grade, provided that each rating agency confirms that the Notes will continue to be rated investment grade after the Note Guaranties are terminated.

In lieu of providing separate financial statements for the guarantor subsidiaries, the Company has included the accompanying condensed consolidating financial statements, which are presented using the equity method of accounting. The principal elimination entries relate to investment in subsidiaries and intercompany balances and transactions, including transactions with the Company’s non-guarantor subsidiaries.

22

Condensed Consolidating Balance Sheets as of July 1, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	431,588	$	118,892		$	1,128,855	$	—		$	1,679,335
Accounts receivable	—		819,169			1,238,774		—			2,057,943
Inventories	—		1,536,360			2,058,477		—			3,594,837
Inter company receivable	9,624,074		5,918,488			12,736,490		(28,279,052		)	—
Other current assets	1,740		182,510			904,594		—			1,088,844
Total current assets	10,057,402		8,575,419			18,067,190		(28,279,052		)	8,420,959
Property and equipment, net	—		561,046			1,735,399		—			2,296,445
Goodwill and other intangible assets, net	100		60,173			1,264,341		—			1,324,614
Other assets	2,232,494		269,927			2,001,920		(4,037,835		)	466,506
Investment in subsidiaries	2,675,293		3,174,268			18,214,271		(24,063,832		)	—
Total assets	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	6,238	$	—		$	66,020
Accounts payable	—		1,477,964			2,839,607		—			4,317,571
Accrued payroll	—		136,897			240,630		—			377,527
Inter company payable	9,557,901		8,546,945			10,174,206		(28,279,052		)	—
Other current liabilities	26,524		809,796			1,030,265		—			1,866,585
Total current liabilities	9,643,261		10,972,548			14,290,946		(28,279,052		)	6,627,703
Long term liabilities	2,698,621		2,059,725			2,493,716		(4,037,835		)	3,214,227
Flextronics International Ltd. shareholders’ equity (deficit)	2,623,407		(391,440		)	24,455,272		(24,063,832		)	2,623,407
Noncontrolling interests	—		—			43,187		—			43,187
Total shareholders’ equity (deficit)	2,623,407		(391,440		)	24,498,459		(24,063,832		)	2,666,594
Total liabilities and shareholders’ equity	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524

23

Condensed Consolidating Balance Sheets as of March 31, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	734,869	$	148,201		$	724,500	$	—		$	1,607,570
Accounts receivable	—		729,331			1,315,426		—			2,044,757
Inventories	—		1,482,410			2,009,246		—			3,491,656
Inter company receivable	9,105,728		5,568,392			12,404,722		(27,078,842		)	—
Other current assets	2,951		180,842			987,350		—			1,171,143
Total current assets	9,843,548		8,109,176			17,441,244		(27,078,842		)	8,315,126
Property and equipment, net	—		553,072			1,704,561		—			2,257,633
Goodwill and other intangible assets, net	175		60,895			1,284,750		—			1,345,820
Other assets	2,249,145		267,034			2,004,437		(4,054,214		)	466,402
Investment in subsidiaries	2,815,426		3,010,111			18,175,348		(24,000,885		)	—
Total assets	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	5,384	$	—		$	65,166
Accounts payable	—		1,401,835			2,846,457		—			4,248,292
Accrued payroll	—		114,509			239,038		—			353,547
Inter company payable	9,562,405		7,999,335			9,517,102		(27,078,842		)	—
Other current liabilities	33,008		869,470			1,002,722		—			1,905,200
Total current liabilities	9,654,249		10,386,095			13,610,703		(27,078,842		)	6,572,205
Long term liabilities	2,683,173		2,063,988			2,514,299		(4,054,214		)	3,207,246
Flextronics International Ltd. shareholders’ equity (deficit)	2,570,872		(449,795		)	24,450,680		(24,000,885		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders’ equity (deficit)	2,570,872		(449,795		)	24,485,338		(24,000,885		)	2,605,530
Total liabilities and shareholders’ equity	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981

24

Condensed Consolidating Statements of Operations for the Three-Month Period Ended July 1, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,830,352		$	4,336,646		$	(2,290,185	)	$	5,876,813
Cost of sales	—			3,413,282			4,347,721			(2,290,185		)	5,470,818
Gross profit (loss)	—			417,070			(11,075		)	—			405,995
Selling, general and administrative expenses	—			69,969			169,577			—			239,546
Intangible amortization	75			717			20,806			—			21,598
Interest and other, net	(316,390		)	416,317			(71,999		)	—			27,928
Income (loss) from continuing operations before income taxes	316,315			(69,933		)	(129,459		)	—			116,923
Provision for income taxes	—			595			10,599			—			11,194
Equity in earnings in subsidiaries	(210,586		)	(727		)	(22,105		)	233,418			—
Net income (loss)	$	105,729		$	(71,255	)	$	(162,163	)	$	233,418		$	105,729

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 26, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,046,385		$	3,935,515		$	(2,415,652	)	$	5,566,248
Cost of sales	—			3,644,059			3,985,500			(2,415,652		)	5,213,907
Gross profit (loss)	—			402,326			(49,985		)	—			352,341
Selling, general and administrative expenses	—			63,559			145,826			—			209,385
Intangible amortization	75			960			6,636			—			7,671
Interest and other, net	(267,052		)	336,992			(53,271		)	—			16,669
Income (loss) from continuing operations before income taxes	266,977			815			(149,176		)	—			118,616
Provision for (benefit from) income taxes	—			9,099			(1,333		)	—			7,766
Equity in earnings in subsidiaries	(156,127		)	(17,826		)	37,047			136,906			—
Net income (loss)	$	110,850		$	(26,110	)	$	(110,796	)	$	136,906		$	110,850

25

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended July 1, 2016

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	105,729	$	(71,255	)	$	(162,163	)	$	233,418		$	105,729
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861		17,709			24,763			(42,472		)	9,861
Unrealized gain on derivative instruments and other, net of zero tax	1,348		2,449			1,348			(3,797		)	1,348
Comprehensive income (loss)	$	116,938	$	(51,097	)	$	(136,052	)	$	187,149		$	116,938

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended June 26, 2015

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	110,850	$	(26,110	)	$	(110,796	)	$	136,906		$	110,850
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	2,783		(23,490		)	(20,897		)	44,387			2,783
Unrealized gain on derivative instruments and other, net of zero tax	12,829		4,624			12,829			(17,453		)	12,829
Comprehensive income (loss)	$	126,462	$	(44,976	)	$	(118,864	)	$	163,840		$	126,462

26

Condensed Consolidating Statements of Cash Flows for the Three-Month Period EndedJuly 1, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	300,435		$	(217,862	)	$	181,392		$	(33	)	$	263,932
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(39,399		)	(103,976		)	(6		)	(143,381		)
Acquisition of businesses, net of cash acquired	—			(8,888		)	(604		)	—			(9,492		)
Proceeds from divesture of business, net of cash held in divested business	—			—			14,828			—			14,828
Investing cash flows to affiliates	(481,875		)	(816,210		)	(653,366		)	1,951,451			—
Other investing activities, net	1			(1,260		)	27,520			—			26,261
Net cash used in investing activities	(481,874		)	(865,757		)	(715,598		)	1,951,445			(111,784		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	74,972			—			46			—			75,018
Repayments of bank borrowings, long-term debt and capital lease obligations	(90,000		)	(1,152		)	(1,070		)				(92,222		)
Payments for repurchases of ordinary shares	(94,715		)	—			—			—			(94,715		)
Net proceeds from issuance of ordinary shares	3,966			—			—			—			3,966
Financing cash flows (to) from affiliates	(30,704		)	1,056,584			925,532			(1,951,412		)	—
Other financing activities, net	30,000			—			(17,099		)	—			12,901
Net cash (used in) provided by financing activities	(106,481		)	1,055,432			907,409			(1,951,412		)	(95,052		)
Effect of exchange rates on cash and cash equivalents	(15,361		)	(1,122		)	31,152			—			14,669
Net increase (decrease) in cash and cash equivalents	(303,281		)	(29,309		)	404,355			—			71,765
Cash and cash equivalents, beginning of period	734,869			148,201			724,500			—			1,607,570
Cash and cash equivalents, end of period	$	431,588		$	118,892		$	1,128,855		$	—		$	1,679,335

27

Condensed Consolidating Statements of Cash Flows for the Three-Month Period EndedJune 26, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	280,844		$	(4,684	)	$	86,116		$	—		$	362,276
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(47,108		)	(89,728		)	—			(136,836		)
Acquisition of businesses, net of cash acquired	—			(2,785		)	(15,795		)	—			(18,580		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			1,000			—			1,000
Investing cash flows to affiliates	(720,048		)	(162,774		)	(1,176,220		)	2,059,042			—
Other investing activities, net	—			(14,787		)	7,207			—			(7,580		)
Net cash used in investing activities	(720,048		)	(227,454		)	(1,273,536		)	2,059,042			(161,996		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	595,309			221			18			—			595,548
Repayments of bank borrowings, long-term debt and capital lease obligations	(6,604		)	(493		)	(1,360		)	—			(8,457		)
Payments for repurchases of ordinary shares	(99,995		)	—			—			—			(99,995		)
Net proceeds from issuance of ordinary shares	44,602			—			—			—			44,602
Financing cash flows from affiliates	619,970			274,540			1,164,532			(2,059,042		)	—
Other financing activities, net	—			—			(25,252		)	—			(25,252		)
Net cash provided by financing activities	1,153,282			274,268			1,137,938			(2,059,042		)	506,446
Effect of exchange rates on cash and cash equivalents	24,362			(961		)	(27,124		)	—			(3,723		)
Net increase (decrease) in cash and cash equivalents	738,440			41,169			(76,606		)	—			703,003
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	1,347,411		$	209,441		$	774,559		$	—		$	2,331,411

28

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless otherwise specifically stated, references in this report to “Flex,” “the Company,” “we,” “us,” “our” and similar terms mean Flextronics International Ltd. and its subsidiaries.

This report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. The words “expects,” “anticipates,” “believes,” “intends,” “plans” and similar expressions identify forward-looking statements. In addition, any statements which refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. We undertake no obligation to publicly disclose any revisions to these forward-looking statements to reflect events or circumstances occurring subsequent to filing this Form 10-Q with the Securities and Exchange Commission. These forward-looking statements are subject to risks and uncertainties, including, without limitation, those risks and uncertainties discussed in this section, as well as any risks and uncertainties discussed in Part II, Item 1A, “Risk Factors” of this report on Form 10-Q, and in Part I, Item 1A, “Risk Factors” and in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended March 31, 2016. In addition, new risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business. Accordingly, our future results may differ materially from historical results or from those discussed or implied by these forward-looking statements. Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements.

OVERVIEW

We are a globally-recognized, leading provider of innovative design, engineering, manufacturing, and supply chain services and solutions that span from sketch to scale^tm; from conceptual sketch to full-scale production. We design, build, ship and service complete packaged consumer electronics and industrial products for original equipment manufacturers ("OEMs"), through our activities in the following segments: High Reliability Solutions ("HRS"), which is comprised of our medical business including consumer health, digital health, disposables, drug delivery, diagnostics, life sciences and imaging equipment; our automotive business, including vehicle electronics, connectivity, and clean technologies; and our defense and aerospace businesses, focused on commercial aviation, defense and military; Consumer Technologies Group ("CTG"), which includes our mobile devices business, including smart phones; our consumer electronics business, including connected living, wearable electronics including digital sport, game consoles, and connectivity devices; and our high-volume computing business, including various supply chain solutions for notebook personal computers ("PC"), tablets, and printers; in addition, our CTG group is expanding its business relationships to include supply chain optimization for non-electronics products such as shoes and clothing; Industrial and Emerging Industries ("IEI"), which is comprised of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting; and Communications & Enterprise Compute ("CEC"), which includes radio access base stations, remote radio heads, and small cells for wireless infrastructure; optical, routing, broadcasting, and switching products for the data and video networks; server and storage platforms for both enterprise and cloud-based deployments; next generation storage and security appliance products; and rack level solutions, converged infrastructure and software-defined product solutions.

Our strategy is to provide customers with a full range of cost competitive, vertically-integrated global supply chain solutions through which we can design, build, ship, and service a complete packaged product for our OEM customers. This enables our OEM customers to leverage our supply chain solutions to meet their product requirements throughout the entire product life cycle.

Over the past few years, we have seen an increased level of diversification by many companies, primarily in the technology sector. Some companies that have historically identified themselves as software providers, Internet service providers or e-commerce retailers have entered the highly competitive and rapidly evolving technology hardware markets, such as mobile devices, home entertainment and wearable devices. This trend has resulted in a significant change in the manufacturing and supply chain solutions requirements of such companies. While the products have become more complex, the supply chain solutions required by such companies have become more customized and demanding, and it has changed the manufacturing and supply chain landscape significantly.

We use a portfolio approach to manage our extensive service offerings. As our OEM customers change the way they go to market, we are able to reorganize and rebalance our business portfolio in order to align with our customers' needs and requirements in an effort to optimize operating results. The objective of our business model is to allow us to be flexible and redeploy and reposition our assets and resources as necessary to meet a specific customer's supply chain solutions needs across all of the markets we serve and earn a return on our invested capital above the weighted-average cost of that capital.

29

During the past few years, we have made significant efforts to evolve our long-term portfolio towards a higher mix of businesses which possess longer product life cycles and higher segment operating margins such as reflected in our IEI and HRS businesses. During the last two fiscal years we launched several programs broadly across our portfolio of services and in some instances we deployed certain new technologies. Some of these programs have started to yield better results, as demonstrated by our segment operating margin improvement while our sales decreased compared to the prior year. We continue to invest in innovation and we have expanded our design and engineering relationships through our product innovation centers.

We believe that our business transformation has strategically positioned us to take advantage of the long-term, future growth prospects for outsourcing of advanced manufacturing capabilities, design and engineering services and after-market services, which remain strong.

We are one of the world's largest providers of global supply chain solutions, with revenues of $5.9 billion for the three-month period ended July 1, 2016 and $24.4 billion in fiscal year 2016. The following tables set forth the relative percentages and dollar amounts of net sales and net property and equipment, by country, based on the location of our manufacturing sites:

	Three-Month Periods Ended
Net sales:	July 1, 2016				June 26, 2015
	(In thousands)
China	$	1,840,853	31	%	$	1,836,188	33	%
Mexico	915,345		16	%	906,879		16	%
U.S.	708,410		12	%	642,589		11	%
Malaysia	572,763		10	%	545,370		10	%
Brazil	371,672		6	%	484,130		9	%
Other	1,467,770		25	%	1,151,092		21	%
	$	5,876,813			$	5,566,248

	As of				As of
Property and equipment, net:	July 1, 2016				March 31, 2016
	(In thousands)
China	$	793,893	35	%	$	789,571	35	%
Mexico	447,250		19	%	429,989		19	%
U.S.	319,202		14	%	330,778		15	%
Malaysia	161,414		7	%	159,787		7	%
Brazil	123,720		5	%	121,949		5	%
Other	450,966		20	%	425,559		19	%
	$	2,296,445			$	2,257,633

We believe that the combination of our extensive open innovation platform solutions, design and engineering services, advanced supply chain management solutions and services, significant scale and global presence, and industrial campuses in low-cost geographic areas provide us with a competitive advantage and strong differentiation in the market for designing, manufacturing and servicing consumer electronics and industrial products for leading multinational and regional OEMs. Specifically, we have launched multiple product innovation centers ("PIC") focused exclusively on offering our customers the ability to simplify their global product development, manufacturing process, and after sales services, and enable them to meaningfully accelerate their time to market and cost savings.

Our operating results are affected by a number of factors, including the following:

• changes in the macro-economic environment and related changes in consumer demand;

• the mix of the manufacturing services we are providing, the number and size of new manufacturing programs, the degree to which we utilize our manufacturing capacity, seasonal demand, shortages of components and other factors;

30

• the effects on our business when our customers are not successful in marketing their products, or when their products do not gain widespread commercial acceptance;

• our ability to achieve commercially viable production yields and to manufacture components in commercial quantities to the performance specifications demanded by our OEM customers;

• the effects on our business due to our customers’ products having short product life cycles;

• our customers’ ability to cancel or delay orders or change production quantities;

• our customers’ decision to choose internal manufacturing instead of outsourcing for their product requirements;

• our exposure to financially troubled customers;

• integration of acquired businesses and facilities;

• increased labor costs due to adverse labor conditions in the markets we operate; and

• changes in tax legislation.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions.

Refer to the accounting policies under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016, where we discuss our more significant judgments and estimates used in the preparation of the condensed consolidated financial statements.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, certain statements of operations data expressed as a percentage of net sales. The financial information and the discussion below should be read in conjunction with the condensed consolidated financial statements and notes thereto included in this document. In addition, reference should be made to our audited consolidated financial statements and notes thereto and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2016 Annual Report on Form 10-K.

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
Net sales	100.0	%	100.0	%
Cost of sales	93.1		93.7
Gross profit	6.9		6.3
Selling, general and administrative expenses	4.1		3.8
Intangible amortization	0.4		0.1
Interest and other, net	0.4		0.3
Other charges, net	0.1		0.0
Income before income taxes	1.9		2.1
Provision for income taxes	0.2		0.1
Net income	1.7	%	2.0	%

31

Net sales

The following table sets forth our net sales by segment and their relative percentages. Historical information has been recast to reflect realignment of customers and/or products between segments to ensure comparability:

	Three-Month Periods Ended
Segments:	July 1, 2016				June 26, 2015
	(In thousands)
Communications & Enterprise Compute	$	2,195,990	38	%	$	1,966,562	35	%
Consumer Technologies Group	1,313,782		22	%	1,564,964		28	%
Industrial & Emerging Industries	1,289,015		22	%	1,130,138		21	%
High Reliability Solutions	1,078,026		18	%	904,584		16	%
	$	5,876,813			$	5,566,248

Net sales during the three-month period ended July 1, 2016 totaled $5.9 billion, representing an increase of approximately $310.6 million, or 5.6% from $5.6 billion during the three-month period ended June 26, 2015. The overall increase in sales was driven by modest increases in three of our segments, with a $229.4 million increase in our CEC segment, primarily due to higher sales within our telecom and networking businesses, a $173.4 million increase in our HRS segment primarily attributable to successful new program ramps in our automotive and medical businesses, along with an increase in sales within our automotive business as a result of our Mirror Controls International ("MCi") acquisition, and a $158.9 million increase in our IEI segment, driven by contribution from our NEXTracker acquisition and expansion within our capital equipment business, and our household industrial and lifestyle business. These increases were offset by a decrease of revenue in our CTG segment of $251.2 million, largely due to a decline in demand from our largest customer in our smart phone business offset by expansion across our wearables and connected home markets. Net sales increased$245.1 million to $1.1 billion in Europe and $99.9 million to $2.7 billion in Asia, respectively. These increases were offset by a modest decrease of $34.4 million to $2.0 billion in the Americas.

Our ten largest customers, during the three-month period ended July 1, 2016, accounted for approximately 43% of net sales. No customer accounted for more than 10% of net sales during the three-month period endedJuly 1, 2016.

Our ten largest customers accounted for approximately 45% of net sales for the three-month period ended June 26, 2015. Lenovo/Motorola accounted for more than 10% of net sales during the three-month period endedJune 26, 2015.

Gross profit

Gross profit is affected by a number of factors, including the number and size of new manufacturing programs, product mix, component costs and availability, product life cycles, unit volumes, pricing, competition, new product introductions, capacity utilization and the expansion and consolidation of manufacturing facilities. The flexible design of our manufacturing processes allows us to build a broad range of products in our facilities and better utilize our manufacturing capacity. In the cases of new programs, profitability normally lags revenue growth due to product start-up costs, lower manufacturing program volumes in the start-up phase, operational inefficiencies, and under-absorbed overhead. Gross margin for these programs often improves over time as manufacturing volumes increase, as our utilization rates and overhead absorption improve, and as we increase the level of manufacturing services content. As a result of these various factors, our gross margin varies from period to period.

Gross profit during the three-month period ended July 1, 2016increased$53.7 million to $406.0 million, or 6.9% of net sales, from $352.3 million, or 6.3% of net sales, during the three-month period ended June 26, 2015. Gross margins improved60 basis points in the three-month period ended July 1, 2016, compared to that of the three-month period ended June 26, 2015, led by a richer business mix due to a greater concentration of our higher margin HRS and IEI businesses coupled with improved operational efficiencies.

Segment Income

An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock‑based compensation, other charges (income), net and interest and other, net. A portion of

32

amortization and depreciation is allocated to the respective segment together with other general corporate research and development and administrative expenses.

The following table sets forth segment income and margins. Historical information has been recast to reflect realignment of customers and/or products between segments:

	Three-Month Periods Ended
	July 1, 2016					June 26, 2015
	(In thousands)
Segment income & margin:
Communications & Enterprise Compute	$	61,899		2.8	%	$	57,065		2.9	%
Consumer Technologies Group	24,634			1.9	%	38,843			2.5	%
Industrial & Emerging Industries	49,977			3.9	%	28,999			2.6	%
High Reliability Solutions	88,536			8.2	%	59,886			6.6	%
Corporate and Other	(34,800		)			(25,711		)
Total segment income	190,246			3.2	%	159,082			2.9	%
Reconciling items:
Intangible amortization	21,598					7,671
Stock-based compensation	23,797					16,126
Other charges, net	3,529					164
Interest and other, net	24,399					16,505
Income before income taxes	$	116,923				$	118,616

CEC segment margin decreased10 basis points to 2.8% for the three-month periods ended July 1, 2016, from 2.9% during the three-month period ended June 26, 2015, mostly reflective of incremental costs associated with our proactive repositioning of certain programs and actions to better align CEC's cost structure.

CTG segment margin decreased60 basis points to 1.9% for the three-month period ended July 1, 2016, from 2.5% during the three-month period ended June 26, 2015, which reflects an under absorption of costs for the wind-down of production for our Lenovo/Motorola smartphone operations in China, and the overall decrease of revenue in our CTG segment.

IEI segment margin increased130 basis points to 3.9% for the three-month period endedJuly 1, 2016, from 2.6% during the three-month period endedJune 26, 2015, primarily due to contribution from our NEXTracker acquisition and additional flow through from revenue increases in our core IEI business, coupled with operational improvements for some of our previously under-performing programs.

HRS segment margin increased160 basis points to 8.2% for the three-month period endedJuly 1, 2016, from 6.6% during the three-month period endedJune 26, 2015, primarily due to new program launches and richer mix with greater value-added business engagements as a result of greater design and engineering solutions as part of our sketch to scale^tm offering in our core HRS business, and contribution from our MCi acquisition.

Selling, general and administrative expenses

Selling, general and administrative expenses (“SG&A”) was $239.5 million, or 4.1% of net sales, during the three-month period ended July 1, 2016, increasing$30.1 million from $209.4 million, or 3.8% of net sales, during the three-month period ended June 26, 2015. The increase in SG&A in dollars and as a percentage of net sales was primarily due to increases in stock-based compensation expense, incremental costs associated with our acquisitions of MCi and NEXTracker both of which drive a higher proportional SG&A level and further investments in design and engineering resources by the Company.

Intangible amortization

Amortization of intangible assets increased by $13.9 million during the three-month period ended July 1, 2016 to $21.6 million from $7.7 million for the three-month period ended June 26, 2015. The increase is primarily due to incremental

33

amortization expense on intangible assets relating to our acquisitions completed during fiscal year 2016, primarily MCi and NEXTracker.

Interest and other, net

Interest and other, net was $24.4 million during the three-month period ended July 1, 2016 compared to $16.5 million during the three-month period ended June 26, 2015. The increase in interest and other, net of $7.9 million was primarily due to $7.2 million of interest expense from the 4.750% Notes due June 15, 2025 issued during the first quarter of fiscal year 2016.

Income taxes

Certain of our subsidiaries have, at various times, been granted tax relief in their respective countries, resulting in lower income taxes than would otherwise be the case under ordinary tax rates. Refer to note 13, “Income Taxes” of the notes to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016 for further discussion.

Our policy is to provide a valuation allowance against deferred tax assets that in our estimation are not more likely than not to be realized.

The consolidated effective tax rate was 9.6% for the three-month period ended July 1, 2016, and 6.5% for the three-month period ended June 26, 2015, and varies from the Singapore statutory rate of 17.0% as a result of recognition of earnings in different jurisdictions, operating loss carryforwards, income tax credits, release of previously established valuation allowances for deferred tax assets, liabilities for uncertain tax positions, as well as the effect of certain tax holidays and incentives granted to our subsidiaries primarily in China, Malaysia and Israel. We generate most of our revenues and profits from operations outside of Singapore. The effective tax rate for the three-month period ended July 1, 2016 is higher than the effective tax rate for the three-month period ended June 26, 2015 primarily due to a favorable audit settlement which resulted in the release of an accrual for uncertain tax positions in the first quarter of fiscal year 2016.

LIQUIDITY AND CAPITAL RESOURCES

As of July 1, 2016, we had cash and cash equivalents of approximately $1.7 billion and bank and other borrowings of approximately $2.8 billion. We have a $1.5 billion revolving credit facility that expires in March 2019, under which there were no borrowings outstanding as of the end of the quarter. As of July 1, 2016, we were in compliance with the covenants under each of our existing credit facilities and indentures.

Cash provided by operating activities was $263.9 million during the three-month period ended July 1, 2016. This resulted from $105.7 million of net income for the period plus adjustments for $129.5 million of non-cash charges such as depreciation, amortization, and other impairment charges, and $28.7 million from changes in our operating assets and liabilities. These changes were mainly related to an increase in accounts payable due to timing of payments to suppliers, offset by an increase in inventory due to the ramping up of many new programs in our automotive, medical, and energy businesses.

For the quarterly periods indicated, certain key liquidity metrics were as follows:

	Three-Month Periods Ended
	July 1, 2016	June 26, 2015
Days in trade accounts receivable	39 days	46 days
Days in inventory	59 days	60 days
Days in accounts payable	71 days	78 days
Cash conversion cycle	27 days	28 days

Days in trade accounts receivable was calculated as average accounts receivable, net of allowance for doubtful accounts, for the current and prior quarters, adding back the reduction in accounts receivable resulting from non-cash accounts receivable sales, divided by annualized sales for the current quarter by day. During the three-month period ended July 1, 2016, days in trade accounts receivable decreased by 7 days compared to the three-month period ended June 26, 2015 largely due to an improvement in our collection efforts and timing of invoicing customers during the current period. Non-cash accounts receivable sales or deferred purchase price receivables included for the purposes of the calculation were $460.3 million and

34

$516.3 million for the quarters ended July 1, 2016 and June 26, 2015, respectively. Deferred purchase price receivables are recorded in other current assets in the condensed consolidated balance sheets. For further information regarding deferred purchase price receivables see note 8 to the condensed consolidated financial statements.

Days in inventory was calculated as the average inventory for the current and prior quarters divided by annualized cost of sales for the respective quarter by day. Days in inventory decreased by 1 day during the three-month period ended July 1, 2016, compared to the three-month period ended June 26, 2015, primarily as a result of higher sales activity in the current quarter.

Days in accounts payable was calculated as the average accounts payable for the current and prior quarters divided by annualized cost of sales for the respective quarter by day. Days in accounts payable decreased by 7 days during the three-month period ended July 1, 2016, compared to the three-month period ended June 26, 2015, primarily due to timing of payments, combined with higher cost of sales.

Our cash conversion cycle was calculated as the sum of days of inventory and days of account receivables outstanding less days payable outstanding. Our cash conversion cycle declined 1 day during the three-month period ended July 1, 2016, compared to the three-month period ended June 26, 2015, due to the factors for each of the components in the calculation discussed above.

Cash used in investing activities was $111.8 million during the three-month period ended July 1, 2016. This resulted primarily from $143.4 million of net capital expenditures for property and equipment, reflecting focused investments to expand capability and capacity in support of our automotive and medical businesses and further investments in both automation and expanding technologies to support our innovation services. Offsets in other investing activities include $12.5 million received for the sale of a non-strategic business, and $26.8 million of proceeds from the sale of certain assets that were purchased on behalf of a customer and financed by a third party banking institution.

We believe free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions, repurchase company shares and for certain other activities. Our free cash flow is calculated as cash from operations less net purchases of property and equipment. Our free cash flow for the three-month period ended July 1, 2016 was $120.6 million compared to $225.4 million for the three-month period ended June 26, 2015. Free cash flow is not a measure of liquidity under U.S. GAAP, and may not be defined and calculated by other companies in the same manner. Free cash flow should not be considered in isolation or as an alternative to net cash provided by operating activities. Free cash flows reconcile to the most directly comparable GAAP financial measure of cash flows from operations as follows:

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Net cash provided by operating activities	$	263,932		$	362,276
Purchases of property and equipment	(159,103		)	(138,348		)
Proceeds from the disposition of property and equipment	15,722			1,512
Free cash flow	$	120,551		$	225,440

Cash used in financing activities was $95.1 million during the three-month period ended July 1, 2016, which was primarily for the repurchase of our ordinary shares in the amount of $94.7 million, and $92.2 million for repayment of bank borrowings and long-term debt. These cash outflows were partially offset by $75.0 million of net proceeds from bank borrowings and long-term debt.

Our cash balances are held in numerous locations throughout the world. Liquidity is affected by many factors, some of which are based on normal ongoing operations of the business and some of which arise from fluctuations related to global economics and markets. Local government regulations may restrict our ability to move cash balances to meet cash needs under certain circumstances; however, any current restrictions are not material. We do not currently expect such regulations and restrictions to impact our ability to pay vendors and conduct operations throughout the global organization. We believe that our existing cash balances, together with anticipated cash flows from operations and borrowings available under our credit facilities, will be sufficient to fund our operations through at least the next twelve months. As of July 1, 2016 and March 31, 2016, over half of our cash and cash equivalents was held by foreign subsidiaries outside of Singapore. Although substantially all of the amounts held outside of Singapore could be repatriated, under current laws, a significant amount could be subject to

35

income tax withholdings. We provide for tax liabilities on these amounts for financial statement purposes, except for certain of our foreign earnings that are considered indefinitely reinvested outside of Singapore (approximately $916.0 million as of March 31, 2016). Repatriation could result in an additional income tax payment, however, our intent is to permanently reinvest these funds outside of Singapore and our current plans do not demonstrate a need to repatriate them to fund our operations in jurisdictions outside of where they are held. Where local restrictions prevent an efficient intercompany transfer of funds, our intent is that cash balances would remain outside of Singapore and we would meet our liquidity needs through ongoing cash flows, external borrowings, or both.

Future liquidity needs will depend on fluctuations in levels of inventory, accounts receivable and accounts payable, the timing of capital expenditures for new equipment, the extent to which we utilize operating leases for new facilities and equipment, the levels of shipments and changes in the volumes of customer orders, and our targeted business and asset acquisitions.

Historically, we have funded operations from cash and cash equivalents generated from operations, proceeds from public offerings of equity and debt securities, bank debt and lease financings. We also sell a designated pool of trade receivables under asset-backed securitization programs and sell certain trade receivables, which are in addition to the trade receivables sold in connection with these securitization agreements.

We anticipate that we will enter into debt and equity financings, sales of accounts receivable and lease transactions to fund acquisitions and growth. The sale or issuance of equity or convertible debt securities could result in dilution to current shareholders. Further, we may issue debt securities that have rights and privileges senior to those of holders of ordinary shares, and the terms of this debt could impose restrictions on operations and could increase debt service obligations. This increased indebtedness could limit our flexibility as a result of debt service requirements and restrictive covenants, potentially affect our credit ratings, and may limit our ability to access additional capital or execute our business strategy. Any downgrades in credit ratings could adversely affect our ability to borrow as a result of more restrictive borrowing terms. We continue to assess our capital structure and evaluate the merits of redeploying available cash to reduce existing debt or repurchase ordinary shares.

Under our current share repurchase program, our Board of Directors authorized repurchases of our outstanding ordinary shares for up to $500 million in accordance with the share purchase mandate approved by our shareholders at the date of the most recent Extraordinary General Meeting which was held on August 20, 2015. During the three-month period ended July 1, 2016, we paid $94.7 million to repurchase shares at an average price of $12.44 per share. As of July 1, 2016, shares in the aggregate amount of $151.1 million were available to be repurchased under the current plan.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Information regarding our long-term debt payments, operating lease payments, capital lease payments and other commitments is provided in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on our Form 10-K for the fiscal year ended March 31, 2016. There have been no material changes in our contractual obligations and commitments since March 31, 2016.

OFF-BALANCE SHEET ARRANGEMENTS

We sell designated pools of trade receivables to unaffiliated financial institutions under our ABS programs, and in addition to cash, we receive a deferred purchase price receivable for each pool of the receivables sold. Each of these deferred purchase price receivables serves as additional credit support to the financial institutions and is recorded at its estimated fair value. As of July 1, 2016 and March 31, 2016, the fair values of our deferred purchase price receivable were approximately $460.3 million and $501.1 million, respectively. As of July 1, 2016 and March 31, 2016, the outstanding balances on receivables sold for cash were $1.2 billion, respectively, under all our accounts receivable sales programs, which are not included in our condensed consolidated balance sheets. For further information see note 8 to the condensed consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There were no material changes in our exposure to market risks for changes in interest and foreign currency exchange rates for the three-month period ended July 1, 2016 as compared to the fiscal year ended March 31, 2016.

36

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of July 1, 2016, the end of the quarterly fiscal period covered by this quarterly report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of July 1, 2016 such disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended, is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in our internal controls over financial reporting that occurred during our first quarter of fiscal year 2017 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a description of our material legal proceedings, see note 11 “Commitments and Contingencies” in the notes to the condensed consolidated financial statements, which is incorporated herein by reference.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the risks and uncertainties discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended March 31, 2016, which could materially affect our business, financial condition or future results.  The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be not material also may materially and adversely affect our business, financial condition and/or operating results.

37

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table provides information regarding purchases of our ordinary shares made by us for the period from April 1, 2016 through July 1, 2016:

Period (2)	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 1 - May 6, 2016	1,870,917	$	12.17	1,870,917	$	219,312,874
May 7 - June 3, 2016	2,835,700	$	12.40	2,835,700	$	184,164,117
June 4 - July 1, 2016	2,591,490	$	12.75	2,591,490	$	151,114,466
Total	7,298,107			7,298,107

____________________________________________________________

(1) During the period from April 1, 2016 through July 1, 2016, all purchases were made pursuant to the programs discussed below in open market transactions.  All purchases were made in accordance with Rule 10b-18 under the Securities Exchange Act of 1934.

(2) On August 20, 2015, our Board of Directors authorized the repurchase of our outstanding ordinary shares for up to $500 million.  This is in accordance with the share purchase mandate whereby our shareholders approved a repurchase limit of 20% of our issued ordinary shares outstanding at the Extraordinary General Meeting held on the same date as the Board authorization. As of July 1, 2016, shares in the aggregate amount of $151.1 million were available to be repurchased under the current plan.

38

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Exhibits— See Index to Exhibits below.

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		FLEXTRONICS INTERNATIONAL LTD.
		(Registrant)
		/s/ Michael M. McNamara
		Michael M. McNamara
		Chief Executive Officer
		(Principal Executive Officer)
Date:	July 27, 2016
		/s/ Christopher Collier
		Christopher Collier
		Chief Financial Officer
		(Principal Financial Officer)
Date:	July 27, 2016

40

EXHIBIT INDEX

			Incorporated by Reference			Filed
Exhibit No.	Exhibit	Form	File No.	Filing Date	Exhibit No.	Herewith
10.01	BrightBox Technologies, Inc. 2013 Equity Incentive Plan	S-8	333- 212267	6/27/2016	99.01
10.02	Description of Annual Bonus Incentive Plan for Fiscal 2017.					X
10.03	Description of Performance Long Term Incentive Plan for Fiscal 2017.					X
10.04	Mutual Separation Agreement and Release of Claims dated June 20, 2016, by and between Flextronics International USA, Inc., a wholly-owned subsidiary of Flextronics International Ltd. and Jon S. Hoak.					X
15.01	Letter in lieu of consent of Deloitte & Touche LLP.					X
31.01	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.02	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.01	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

* This exhibit is furnished with this Quarterly Report on Form 10-Q, is not deemed filed with the Securities and Exchange Commission, and is not incorporated by reference into any filing of Flextronics International Ltd. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filing.

41

EX-10.02

EXHIBIT 10.02

DESCRIPTION OF ANNUAL INCENTIVE BONUS PLAN FOR FISCAL 2017

On June 14, 2016, the Board approved the Company’s Annual Incentive Bonus Plan for fiscal year 2017. The plan provides its executive officers with the opportunity to earn annual cash bonuses based upon the achievement of pre-established performance goals. Total bonus opportunities will be based on achievement of annual targets. The plan provides for 50% of the bonus to be based on the achievement of quarterly objectives and 50% to be based on the achievement of annual objectives. Performance goals under the plan will be: revenue growth, earnings per share, operating profit, and return on invested capital targets at the Company level; and, additionally for certain executives, total sales, operating profit and new business wins and other business-specific business unit targets at the business unit level. The plan allows awards to provide for different metrics, target levels and weightings for different executives.

Under the Annual Incentive Bonus Plan, target award opportunities are set at various percentages of base salary, which will be: 200% of base salary in the case of the Chief Executive Officer; 110% of base salary in the case of the Chief Financial Officer; and between 80% and 110% of base salary in the cases of other officers. Actual payout opportunities for each bonus component will range from a threshold of 50% of target to a maximum of 200% of target for the quarterly payouts and 300% of target for the annual bonuses, in each case based on achievement of the performance measures. If the Company or business unit fails to achieve the threshold level for any performance measure, no payout is awarded for that measure. For purposes of determining achievement of award opportunities, the incentive bonus plan uses adjusted, non-GAAP measures.

EX-10.03

EXHIBIT 10.03

DESCRIPTION OF PERFORMANCE LONG TERM INCENTIVE PLAN FOR FISCAL 2017

On June 14, 2016, the Board approved the Company’s Performance Long Term Cash Incentive Plan for fiscal year 2017. The plan provides the Company’s executive officers (other than the Chief Executive Officer) with the opportunity to earn long term cash bonuses based upon the achievement of pre-established long term performance goals.  The plan provides for 100% of the bonus to be based on the achievement of a cumulative three-year objective. For fiscal year 2017 grants, the performance goals under the plan are based on increases to the free cash flow of the Company.  Actual payout opportunities will range from a threshold of 50% of target to a maximum of 200% of target based on achievement of the performance goals.  Cash payments under the Performance Long Term Cash Incentive Plan will occur on the third anniversary of the initial grant date if the performance targets are met or exceeded. For purposes of determining achievement of award opportunities, the Performance Long Term Cash Incentive Plan uses free cash flow an adjusted, non-GAAP measure.  For purposes of this Plan, the Company defines free cash flow as net cash flows from operating activities less purchases of property and equipment, net of dispositions.

EX-10.04

EXHIBIT 10.04

MUTUAL SEPARATION AGREEMENT

AND RELEASE OF CLAIMS

This Separation Agreement is entered into between Flextronics International USA, Inc., a wholly owned subsidiary of Flextronics International Ltd., and any predecessor, successor, or affiliated companies (collectively, the “Company”) and Jon Hoak (“Hoak” or “Employee”). In consideration of the mutual promises set forth below, the Company and Hoak have agreed as follows:

1. Separation.

a. Date of Separation/Garden Leave. If Hoak signs and does not revoke this Separation Agreement, Hoak’s employment relationship with the Company will end on June 30, 2017 (the “Separation Date”). Hoak’s last day at work will be on June 30, 2016. Under this Agreement, Hoak will be on unpaid “Garden Leave” from July 1, 2016, through June 30, 2017. If Hoak does not timely sign this Agreement or timely signs and then subsequently revokes this Agreement, his employment termination date will be July 1, 2016.

b. Termination Prior to Separation Date. While employed with the Company, Hoak will not engage in misconduct and will comply with Company policy, the provisions of this Separation Agreement, and the provisions of any other written agreements between Hoak and the Company. If Hoak violates Company policy, the provisions of this Separation Agreement, or the provisions of any other written agreement with the Company, the Company may terminate Hoak’s employment immediately provided the Company shall afford Hoak a period of ten (10) business days after providing Hoak written notice detailing a violation to cure such violation. In the event that Hoak’s employment is terminated pursuant to Section 1(b), or based on Hoak’s resignation of his position prior to the Separation Date, or if Hoak does not sign this Agreement or signs but then revokes this Agreement, Hoak would then only be entitled to compensation for accrued and/or vested compensation and benefits up to the date of termination and would not be entitled to the garden leave, separation payment and lump sum in lieu of Company paid COBRA coverage as set forth in Section 2 of this Separation Agreement.

c. Garden Leave. For the time period between July 1, 2016, and the Separation Date, Hoak will become a Special Consultant and will carry out knowledge transfer and transition duties as may be requested by the Company up to the Separation Date. While on Special Consulting Duty, Employee will receive no salary, but will continue to be eligible for health benefits for him and his dependents, so long as he continues paying the employee responsibility portion of said benefits. However, should Employee be required to expend a significant amount of time providing services during the Garden Leave, such time will be compensated at a reasonable hourly rate. During the unpaid Garden Leave, Employee will not accrue equity or bonuses of any kind other than as set forth in Sections 2, 3 and 4 of this Separation Agreement, and then, only if Employee complies with his obligations under this Separation Agreement. While on Special Consultant Duty, Employee will have no access to company property or resources but will retain access to Company E-

June 15, 2016	PAGE 1 of 9
	INITIALS: /s/MM/s/JH

mail (Outlook). Said access to Company E-mail will be subject to Company rules and control. While on Special Consultant Duty, Employee shall owe the Company all obligations due to an employer and all obligations created by this Separation Agreement as well as any prior agreements which created obligations intended to extend beyond his employment. Employee is not prohibited from maintaining other employment while acting as a Special Consultant, so long as it is not adverse to the Company and so long as he does not breach the duties set forth in this Agreement.

d. Payment of Vested Compensation Upon Rejection of Agreement or Early Separation. In accordance with its standard practices, whether or not Hoak agrees to this Separation Agreement, on the earlier of either the actual date of the termination of his employment with the Company or the Separation Date, the Company will issue a payment to Hoak in a gross amount, less applicable taxes and withholdings, to compensate him for any accrued and vested compensation and/or accrued but unused PTO (if any) to which he is entitled as of that date.

e. Within thirty (30) days following the Separation Date, Hoakwill submit his final documented expense reimbursement statement reflecting all unreimbursed business expenses incurred through the Separation Date, if any, for which he seeks reimbursement. The Company will reimburse his properly documented expenses pursuant to the Company’s policy and regular business practice.

2.Separation Pay.Provided Hoak signs and does not revoke this Separation Agreement, complies with his obligations under this Separation Agreement, remains employed with the Company through the Separation Date, and diligently continues to carry out transition duties as may be reasonably requested by the Company, the Company will, in addition to accrued and vested compensation:

a. On March 15, 2017, issue a payment to Hoak in a gross amount equal to $1,050,000.00 (One Million and Fifty Thousand Dollars) minus applicable taxes and withholdings, representing 2 years of base salary (the “Separation Payment”);

b. Hoak will be paid the quarterly bonus minus applicable taxes and withholdings for the FY2017Q1 (April-June 2016) based on the actual results of the Flextronics Corporate Standard Plan. FY2017Q1 Bonus, if any, to be paid in the third calendar quarter of 2016 but not later than August 15, 2016; and

c. Hoak will be paid the Free Cash Flow Cash Incentive for FY 2017 (valued at $274,063 if targets are met), minus applicable taxes and withholdings, based on the actual results per Hoak’s compensation letter dated July 8, 2014 and per the components established by the Company for said incentive. FCF distribution, if any, to be paid in the second calendar quarter of 2017 but not later than June 30, 2017.

d. On December 30, 2016, issue a payment to Hoak in the gross amount of $24,065.64. (Twenty-Four Thousand and Sixty Five Dollars with Sixty Four Cents) minus applicable taxes and withholdings, in lieu of 18 months of premiums for continuation of Company

June 15, 2016	PAGE 2 of 9
	INITIALS: /s/MM/s/JH

provided medical, dental and vision benefits for Hoak and his eligible dependents under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”); and

e. Provide Hoak with garden leave from July 1, 2016 to June 30, 2017, during which Hoak will continue to receive Company provided medical, dental and vision benefits for himself and his eligible dependents, so long as Hoak continues to pay the employee contribution portion of said benefits.

UPON SEPARATION OF EMPLOYMENT, IT SHALL BE HOAK’S RESPONSIBILITY TO SIGN UP FOR AND MAKE APPROPRIATE PAYMENTS TO ENSURE COBRA COVERAGE. FAILURE TO SIGN UP FOR AND MAKE PAYMENTS FOR COBRA COVERAGE COULD RESULT IN LOSS OF HEALTH BENEFITS FOR HOAK AND HIS FAMILY AS WELL AS DIFFICULTY IN OBTAINING FUTURE COVERAGE.

Nothing in this Separation Agreement is intended to extend the length or scope of Hoak’s COBRA rights beyond those provided by statute. Hoak will be provided with a separate notice of his COBRA rights and obligations. Hoak will be responsible for any and all tax liability, if any, for any COBRA payments made by the Company or health benefit or other payment or benefits received by Hoak pursuant to this Separation Agreement.

Hoak acknowledges and agrees that the foregoing Separation Pay set forth in Section 2 of the Separation Agreement is more than Hoak is otherwise legally entitled to receive and constitutes good and valuable consideration for the claims being released in this Agreement.

Each severance payment and each bonus payment shall, for purposes of Section 409A, be deemed a separate payment under this Separation Agreement. Notwithstanding any other provision in this Separation Agreement, no payments shall be paid after the end of the second year following the year of the separation from service date.

In the event that any of the payments and taxable benefits due within the six month period following the separation from service date are determined to constitute deferred compensation subject to Section 409A and to the extent that such deferred compensation is subject to the “six-month delay” required by Section 409A(a)(2)(B)(i), as determined in good faith by the Company, any such payments otherwise due within such six month period shall, notwithstanding such other specified payment date, be delayed such that the payments are paid in a lump sum immediately following the end of such six month period (or the date of Hoak’s death if earlier), and any payments due after the six month period shall be paid as set forth in this Separation Agreement.

3.Equity Compensation. Hoak has been granted time based and performance based share bonus awards as provided in the applicable option grant forms issued to Hoak during his employment with the Company. The plans governing such options and awards control and are incorporated herein by reference. Hoak’s share bonus awards that will be vested as of the Separation Date are listed on the Closing Statement labeled Exhibit A, which is attached hereto and incorporated herein by reference.

June 15, 2016	PAGE 3 of 9
	INITIALS: /s/MM/s/JH

Hoak acknowledges that he is not entitled to any additional grants of stock options or share bonus awards other than those set forth in Exhibit A.

Hoak acknowledges and agrees that by their terms, the options will no longer be exercisable after the last date to exercise as indicated in document plans, which is February 28, 2018 in Hoak’s case. Hoak further acknowledges and agrees that upon release of the share bonus awards as provided in this Section 3, unless Flextronics withholds payroll taxes, Hoak will be responsible for payroll taxes, which will be due and payable to Flextronics by Hoak within three (3) business days of the vesting occurrence.

Hoak understands and agrees that he will not receive any grants of stock, restricted stock, stock units, stock options, or other forms of equity from the Company in the future unless mutually agreed to by the parties in writing and that any current stock, restricted stock, stock units, stock options, or other forms of equity will expire, be canceled, or be exercisable in accordance with the terms and provisions of the applicable agreement(s) and plan(s).

4.Deferred Compensation. Hoak is a participant in the Company’s Amended and Restated Senior Management Deferred Compensation Plan in return for services to be performed in the future and subject to the terms and conditions outlined in the plan documents. Company contributions in the Deferred Compensation plans were credited to a brokerage account, and have been invested in various funds based on Hoak’s elections. As of June 30, 2017, zero percent of Hoak’s Deferred Compensation account will be vested. Payouts on this plan, if any, will be per plan documents, but none are anticipated.

Hoak is also a participant in the Company’s Non-Qualified Deferred Compensation Plan (NQDC) in which all of his voluntary contributions are 100% vested (approximate total of $910,931.35). Payouts on this plan will be per plan documents.

Hoak acknowledges that he is not a participant in any other deferred compensation plan with the Company and that he is not entitled to any additional deferred compensation other than as stated in this Agreement.

5.Complete Release.In consideration for the Severance Payment,Hoak hereby releases the Company, together with the employees, partners, agents, directors, officers, contractors, insurers and attorneys of any of them, (the “Releasees”) from any and all claims or demands, whether known or unknown, and whether asserted on an individual or class basis, which Hoak has, may have, or may claim to have against any of them. This complete release of all claims includes but is not limited to a complete release of any claims (including claims for attorneys’ fees) Hoak has, may have, or may claim to have based on Hoak’s employment with Company or separation from that employment, as well as any claims arising out of any contract, express or implied, any covenant of good faith and fair dealing, express or implied, any tort (including negligence by the Company or anyone else), and any federal, state or other governmental statute, regulation or ordinance relating to employment, employment discrimination, or the payment of wages or benefits including, but not limited to, those relating to qui tam, employment discrimination, termination of employment, payment of wages or provision of benefits, housing costs, costs relating to relocation and the purchase or sale of housing, Title VII of the Civil Rights Act of 1964 as amended, the Civil Rights Act of 1991, the Americans with Disabilities

June 15, 2016	PAGE 4 of 9
	INITIALS: /s/MM/s/JH

Act, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act (“OWBPA”), the Worker Adjustment and Retraining Notification Act, the Consolidated Omnibus Budget Reconciliation Act, and the Occupational Safety and Health Act and/or their state law or local law equivalents. Hoak specifically waives any entitlement to any bonus, equity plan or other compensation not specifically set forth in this Separation Agreement. Hoak represents that he has not assigned to any other person any of such claims and that Hoak has the full right to grant this release. Notwithstanding any other provision herein, Hoak is not waiving any claims that may arise under the Age Discrimination in Employment Act after this Separation Agreement is executed or any future claims based on the provisions set forth in this Separation Agreement.

Excluded from this release are a) any claims arising under the terms of this Agreement; and b) any claims that may not be waived by law, such as claims for workers’ compensation benefits, unemployment insurance benefits, challenges to the validity of Hoak’s release of claims under the Age Discrimination in Employment Act of 1967, as amended, as set forth in this Agreement, and the right to file a charge of discrimination with, or participate in an investigation conducted by, an administrative agency. Hoak is waiving, however, the right to any monetary recovery or other relief in connection with such a charge.

6.California Release. Hoak acknowledges that he has read Section 1542 of the Civil Code of the State of California, which states in full:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

Despite the language of Section 1542, Hoak waives any rights Hoak has or may have under Section 1542 (or any similar provision of the laws of any other jurisdiction) and affirms that Hoak is releasing all known and unknown claims that he has or may have against the Releasees.

7.Instituting Arbitration or Suit. Hoak agrees not to institute any arbitration proceeding or lawsuit based on any claim stated to be released by Hoak in this Separation Agreement. If Hoak or anyone on Hoak’s behalf institutes any arbitration proceeding or lawsuit based on any claim stated to be released by Hoak in this Separation Agreement, Hoak will: (a) immediately take any and all actions necessary to effectuate the immediate dismissal of the lawsuit or arbitration proceeding; and (b) pay Company and the other Releasees for any and all reasonable attorney’s fees and costs incurred as a result of or in connection with the lawsuit or arbitration proceeding.

8.Warranties.Apart from payments due hereunder, Hoak warrants and agrees that the Company has paid Hoak all wages, forms of compensation, and other monies due to Hoak as of the date of execution of this Agreement. Hoak further warrants and agrees that all forms of compensation, wages, and other monies paid to Hoak by the Company through the date of Hoak’s execution of this Agreement have been accurately calculated, have represented the proper amounts due to Hoak, and have been based on the Company’s merit-based compensation system. If Hoak or someone on Hoak’s behalf claims any entitlement to further compensation from the Company for any reason, Hoak agrees that the Company is entitled to full offset of the amounts paid to Hoak under this Agreement.

June 15, 2016	PAGE 5 of 9
	INITIALS: /s/MM/s/JH

9.Non-Disparagement and Third Party Assistance. In consideration for the Separation Payment,Hoak agrees that Hoak will not make any statement, oral or written, or perform any act or omission which is detrimental in any material respect to the reputation or goodwill of the Company. Hoak agrees that Hoak will not voluntarily counsel, assist, participate in, or encourage any persons in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against the Company without first providing written notice to the Company’s General Counsel at Flextronics, 6201 America Centre Drive, San Jose, California, 95002. Hoak and the Company agree that Hoak’s compliance with a subpoena or other legally compulsive process, disclosure required pursuant to the Company’s Code of Business Conduct and Ethics, or participation as a witness in a lawsuit shall not violate the terms of this paragraph but further agree Hoak will nevertheless provide the Company’s General Counsel written notice of such subpoena, other legally compulsive process, disclosure pursuant to the Company’s Code of Business Conduct and Ethics, or potential participation as a witness promptly after receiving notice of same.

10.Cooperation. Hoak will make himself reasonably available to the Company in connection with any claim, lawsuit, or proceeding that relates to Hoak’s conduct or duties at the Company or that are based on facts about which Hoak obtained personal knowledge while employed at the Company. In return, the Company agrees to reimburse Hoak for direct and reasonable out of pocket expenses incurred in connection with cooperation provided by Hoak pursuant to this Section. Should Hoak be required to expend a significant amount of time providing such cooperation, such time will be compensated at a reasonable hourly rate.

11.Return of Property. Hoak agrees that, upon the Separation Date, Hoak will return to the Company any and all documents relating to the Company or its business operations (and any and all copies thereof, whether in paper form or electronic form), computer equipment, badges, credit cards, and any other Company property in Hoak’s possession, care, custody, or control. Hoak represents and agrees that Hoak will not take any such documents or property from the control or premises of Company. If Hoak should come into possession of any Company documents or property at any time in the future, Hoak agrees to return such documents or property to the Company immediately. Notwithstanding the above, Hoak may retain his laptop computer upon following this procedure: Hoak will remove his personal information from the laptop, the Company will copy and retain the remaining Company related information from the laptop and then delete all Company information from the laptop and return the clean laptop to Hoak for his personal use. Hoak may also retain his company provided cellular phone, if any, (at his own cost going forward) after following procedures with IT to remove Company information from the phone.

12.Confidentiality. Hoak agrees that he will not disclose the terms of, or any other information regarding this Separation Agreement to anyone other than, his attorneys, financial/tax advisors or immediate family members, provided that such attorneys, tax advisors and immediate family members first agree to be bound by the foregoing confidentiality obligation prior to any such disclosure. The Parties understand and agree that the Company will make such disclosures as are required by law, rule, policy or regulations. Nothing in this provision is intended to prevent the Parties from complying with a subpoena or other compulsory legal process, responding truthfully to any inquiry by a government agency, or providing truthful testimony in a court of law or other formal legal proceeding.

June 15, 2016	PAGE 6 of 9
	INITIALS: /s/MM/s/JH

13.Non-Disclosure. Hoak acknowledges and agrees the Company has provided Hoak with valuable confidential information relating to the Company’s business, technology, plans, customers, potential customers, relationships, and personnel. Hoak acknowledges and agrees that he will remain bound by the confidentiality obligations set forth below (the “Confidentiality Agreement”). Hoak agrees that any original works of authorship, products, software, or applications that Hoak created or developed while employed by the Company is the sole property of the Company. Hoak further acknowledges and agrees that Hoak shall not disclose or use for any purpose any Confidential Information. Confidential Information shall mean any and all proprietary or confidential information of the Company or any of its vendors, customers, or partners, including without limitation the following: (i) any and all technical information, including, without limitation, product data and specifications, know-how, formulae, source code, or other software information, test results, processes, inventions, research projects or product development; (ii) any and all business information, including, without limitation, cost information, profits, profit margins, sales information, costs, overhead, accounting and unpublished financial information, business plans, markets, marketing methods, vendor or customer lists, including without limitation, a vendor’s or customer’s specific needs, advertising and operating strategies; and (iii) any and all employee information, including, without limitation, salaries, and specific strengths, weaknesses and skills of Company employees.

14.If Hoak is subject to any subpoena or other form of legally compulsive process seeking to require Hoak to disclose any information protected by this Separation Agreement, any other written agreement between Hoak and the Company, any statute, or the common law, Hoak will immediately provide written notice of same to the Company’s General Counsel at Flextronics, 6201 America Centre Drive, San Jose, California, 95002.

15.Binding Agreement.This Agreement will be binding upon Hoak and Company and their respective heirs, administrators, trustees, representatives, executors, successors, and assigns.

16.Review. Hoak understands that Hoak has twenty-one (21) days in which to review and consider this Agreement before signing it. Hoak understands Hoak may use as much or as little of this 21-day period as Hoak wishes. Hoak is encouraged and advised to consult an attorney before signing this Agreement. Hoak agrees that any changes Hoak and the Company agree to make to this Agreement, whether material or not, do not restart or extend this 21-day review period. By executing this Agreement, Hoak acknowledges Hoak was afforded a period of at least 21 days in which to review and consider this Agreement.

17.Revocation. If Hoak decides to accept and sign this Separation Agreement, Hoak will have seven (7) days from the date of execution in which to revoke his acceptance. Hoak understands any such revocation will not be effective unless Hoak delivers a written notice of such revocation to Flextronics, c/o General Counsel, 6201 America Centre Drive, San Jose, California, 95002, prior to the expiration of seven days after Hoak executes this Agreement. Hoak understands this Agreement will not become effective or enforceable until the seven days have elapsed without Hoak having revoked Hoak’s acceptance of this Separation Agreement.

18.Entirety. This is the entire agreement between the Hoak and the Company regarding Hoak’s separation from the Company and the other matters addressed herein and supersedes all prior agreements between them regarding same, other than those agreements referenced herein. In executing

June 15, 2016	PAGE 7 of 9
	INITIALS: /s/MM/s/JH

this Separation Agreement, Hoak is not relying on any representations or promises not explicitly contained in this Separation Agreement. However, this Agreement does not release Hoak of his continuing obligations under contract or law to preserve the confidentiality of the confidential and proprietary information of the Company and its customers.

19.Arbitration. Hoak and Company agree that any and all disputes between them, including but not limited to any disputes arising out of or relating to this Agreement, the claims purported to be released by Hoak in this Agreement, Hoak’s employment with Company, or the termination of any such employment shall be settled by binding arbitration in San Jose, California administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes, and that judgment upon the award rendered by the arbitrator(s) may be entered in any court with jurisdiction. The arbitrator will have the authority to award attorney’s fees to the prevailing party, if the arbitrator finds that the non-prevailing party has acted in bad faith. Notwithstanding any of the foregoing, any other provision of this Agreement, or any provision of any other agreement:

a. A court of competent jurisdiction shall have the power to maintain the status quo pending the arbitration of any dispute, and neither this Section nor any other agreement shall require the arbitration of an application for emergency or temporary injunctive relief by either party pending arbitration; provided, however, that the remainder of any such dispute beyond the resolution of any application for emergency or application for temporary injunctive relief, if such applications are made, shall be subject to arbitration; and

b. This Section shall not require the arbitration of: (i) claims by Hoak for workers’ compensation or unemployment insurance (an exclusive government-created remedy exists for these claims); or (ii) claims which could not have been litigated in court or before any administrative proceeding under applicable federal, state, or local law (e.g., claims barred by limitations).

20.Choice of Law, Venue, Modification, and Execution. This Separation Agreement will be construed in accordance with and governed by the laws of the State of California. Hoak and Company agree that the exclusive venue for resolving any dispute not submitted to arbitration for any reason shall be the state and federal courts located in San Jose, California, unless a different venue is required by applicable law. Hoak understands that once this Agreement is executed, only Mike McNamara, CEO of Flex, or his successor will have the authority to modify this Agreement on behalf of the Company, and that the CEO will have such authority only when acting in writing. In this connection, the parties agree this Agreement will not be modified or amended except by a written instrument(s), signed by both parties, with the CEO signing for the Company. This Agreement may be executed in multiple counterparts.

This portion intentionally left blank.

June 15, 2016	PAGE 8 of 9
	INITIALS: /s/MM/s/JH

21.Non-Admission of Liability.By entering into this Agreement, neither party admits they have done anything wrong.

Accepted and Agreed:

Flextronics International USA, Inc.

/s/ Michael M. McNamara

Michael M. McNamara

CEO Flex

June 20, 2016

Date

I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE FOREGOING AGREEMENT, THAT I UNDERSTAND ALL OF ITS TERMS, THAT I UNDERSTAND THAT IT CONTAINS A COMPLETE RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AND AN ARBITRATION AGREEMENT, AND THAT I AM ENTERING INTO IT VOLUNTARILY. I HAVE BEEN ADVISED TO CONSULT AN ATTORNEY, BEEN GIVEN 21 DAYS TO CONSIDER THE AGREEMENT AND BEEN INFORMED THAT I MAY REVOKE THIS AGREEMENT WITHIN 7 DAYS OF SIGNING IT.

/s/ Jon Hoak

Jon Hoak

June 20, 2016

Date

June 15, 2016	PAGE 9 of 9
	INITIALS: /s/MM/s/JH

EXHIBIT A - CLOSING STATEMENT

Exhibit A
Closing Statement
JONATHAN HOAK
										Closing Statement as of:			6/30/2017
										Estimated Stock Price:			$13.00
	Options
	Grant ID	Grant Date	Plan	Type	Price		Granted	Exercised	Exercisable	Cancelled	Value		Expiry
	34497	2/28/2011	2010	NQ	$	8.09	150,000	—	150,000	—	$	736,500	2/28/2018
					TOTALS:		150,000	—	150,000	—	$	736,500
	Restricted Stock
	Grant ID	Grant Date	Plan	Type	Price		Granted	Vested	Will Vest	Cancelled	Value
	RS0521130005	5/21/2013	2010	RSU	$	—	75,000	56,250	18,750	—	$	243,750
	RS0626140005	6/26/2014	2010	RSU	$	—	50,057	12,514	25,028	12,515	$	325,364
	RS0610150005	6/10/2015	2010	RSU	$	—	53,719	13,429	13,430	26,860	$	174,590
				TOTALS:			178,776	82,193	57,208	39,375	743,704
	Market and Performance Awards
	Grant ID	Grant Date	Plan	Type	Price		Granted	Vested	Eligible to Vest	Likely to Vest	Cancelled		Value
	MRS062614005	6/26/2014	2010	RSU	$	—	25,029	—	25,029	25,029	—		$	325,377
	MRS061015005	6/10/2015	2010	RSU	$	—	26,859	—	—	—	26,859		$	—
				TOTALS:			51,888	—	25,029	25,029	26,859		$	325,377
								TOTAL INTRINSIC VALUE:					$	1,805,581

EX-15.01

Exhibit 15.01

LETTER IN LIEU OF CONSENT OF DELOITTE & TOUCHE LLP

July 27, 2016

Flextronics International Ltd.

2 Changi South Lane

Singapore 486123

We have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the unaudited interim financial information of Flextronics International Ltd. and subsidiaries for the periods ended July 1, 2016 and June 26, 2015, as indicated in our report dated July 27, 2016; because we did not perform an audit, we expressed no opinion on that information.

We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended July 1, 2016, is incorporated by reference in Registration Statement Nos. 333-207067 and 333-189496 on Form S-4, and 333-212267, 333-207035, 333-170710, 333-157210, 333-146549, 333-146548, 333-143331, 333-143330, 333-126419, 333-121302, 333-120056, 333-119387, 333-103189, and 333-75526 on Form S-8.

We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act.

/s/ DELOITTE & TOUCHE LLP

San Jose, California

EX-31.01

EXHIBIT 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Michael M. McNamara, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Flextronics International Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  July 27, 2016

/s/ Michael M. McNamara

Michael M. McNamara

Chief Executive Officer

EX-31.02

EXHIBIT 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher Collier, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Flextronics International Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  July 27, 2016

/s/ Christopher Collier

Christopher Collier

Chief Financial Officer

EX-32.01

EXHIBIT 32.01

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

We, Michael M. McNamara and Christopher Collier, Chief Executive Officer and Chief Financial Officer, respectively, of Flextronics International Ltd. (the “Company”), hereby certify, to the best of our knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

• the Quarterly Report on Form 10-Q of the Company for the period ended July 1, 2016, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to Flextronics International Ltd. and will be retained by it and furnished to the Securities and Exchange Commission or its staff upon request.

Date:	July 27, 2016	/s/ Michael M. McNamara
		Michael M. McNamara
		Chief Executive Officer
		(Principal Executive Officer)
Date:	July 27, 2016	/s/ Christopher Collier
		Christopher Collier
		Chief Financial Officer
		(Principal Financial Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Jul. 01, 2016	Jul. 22, 2016
Document and Entity Information
Entity Registrant Name	FLEXTRONICS INTERNATIONAL LTD.
Entity Central Index Key	0000866374
Document Type	10-Q
Document Period End Date	Jul. 01, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (shares)		545,468,473
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,679,335	$ 1,607,570
Accounts receivable, net of allowance for doubtful accounts of $66,385 and $64,608 as of July 1, 2016 and March 31, 2016, respectively	2,057,943	2,044,757
Inventories	3,594,837	3,491,656
Other current assets	1,088,844	1,171,143
Total current assets	8,420,959	8,315,126
Property and equipment, net	2,296,445	2,257,633
Goodwill and other intangible assets, net	1,324,614	1,345,820
Other assets	466,506	466,402
Total assets	12,508,524	12,384,981
Current liabilities:
Bank borrowings and current portion of long-term debt	66,020	65,166
Accounts payable	4,317,571	4,248,292
Accrued payroll	377,527	353,547
Other current liabilities	1,866,585	1,905,200
Total current liabilities	6,627,703	6,572,205
Long-term debt, net of current portion	2,692,596	2,709,389
Other liabilities	521,631	497,857
Commitments and contingencies (Note 11)
Flextronics International Ltd. shareholders’ equity
Ordinary shares, no par value; 596,396,914 and 595,062,966 issued, and 546,157,559 and 544,823,611 outstanding as of July 1, 2016 and March 31, 2016, respectively	6,922,811	6,987,214
Treasury stock, at cost; 50,239,355 shares as of July 1, 2016 and March 31, 2016	(388,215)	(388,215)
Accumulated deficit	(3,786,483)	(3,892,212)
Accumulated other comprehensive loss	(124,706)	(135,915)
Total Flextronics International Ltd. shareholders’ equity	2,623,407	2,570,872
Noncontrolling interests	43,187	34,658
Total shareholders’ equity	2,666,594	2,605,530
Total liabilities and shareholders’ equity	$ 12,508,524	$ 12,384,981

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 66,385	$ 64,608
Ordinary shares, par value (in dollars per share)	$ 0	$ 0
Ordinary shares, issued (shares)	596,396,914	595,062,966
Ordinary shares, outstanding (shares)	546,157,559	544,823,611
Treasury stock, shares (shares)	50,239,355	50,239,355

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Income Statement [Abstract]
Net sales	$ 5,876,813	$ 5,566,248
Cost of sales	5,470,818	5,213,907
Gross profit	405,995	352,341
Selling, general and administrative expenses	239,546	209,385
Intangible amortization	21,598	7,671
Interest and other, net	24,399	16,505
Other charges, net	3,529	164
Income before income taxes	116,923	118,616
Provision for income taxes	11,194	7,766
Net income	$ 105,729	$ 110,850
Earnings per share
Basic (in dollars per share)	$ 0.19	$ 0.20
Diluted (in dollars per share)	$ 0.19	$ 0.19
Weighted-average shares used in computing per share amounts:
Basic (shares)	544,631	565,545
Diluted (shares)	551,029	577,997

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 105,729	$ 110,850
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861	2,783
Unrealized gain on derivative instruments and other, net of zero tax	1,348	12,829
Comprehensive income	$ 116,938	$ 126,462

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 0
Unrealized gain (loss) on derivative instruments and other, tax	$ 0	$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 105,729	$ 110,850
Depreciation, amortization and other impairment charges	129,500	110,119
Changes in working capital and other	28,703	141,307
Net cash provided by operating activities	263,932	362,276
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(159,103)	(138,348)
Proceeds from the disposition of property and equipment	15,722	1,512
Acquisition of businesses, net of cash acquired	(9,492)	(18,580)
Proceeds from divestiture of business, net of cash held in divested business	14,828	1,000
Other investing activities, net	26,261	(7,580)
Net cash used in investing activities	(111,784)	(161,996)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings and long-term debt	75,018	595,548
Repayments of bank borrowings and long-term debt	(92,222)	(8,457)
Payments for repurchases of ordinary shares	(94,715)	(99,995)
Net proceeds from issuance of ordinary shares	3,966	44,602
Other financing activities, net	12,901	(25,252)
Net cash (used in) provided by financing activities	(95,052)	506,446
Effect of exchange rates on cash and cash equivalents	14,669	(3,723)
Net increase in cash and cash equivalents	71,765	703,003
Cash and cash equivalents, beginning of period	1,607,570	1,628,408
Cash and cash equivalents, end of period	1,679,335	2,331,411
Non-cash investing activity:
Unpaid purchases of property and equipment	$ 85,571	$ 122,601

XML

ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION

3 Months Ended

Jul. 01, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION

ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION

Organization of the Company

Flextronics International Ltd. ("Flex", or the "Company") was incorporated in the Republic of Singapore in May 1990. The Company's operations have expanded over the years through a combination of organic growth and acquisitions. The Company is a globally-recognized leading provider of innovative design, engineering, manufacturing, and supply chain services and solutions that span from sketch to scale^tm; from conceptual sketch to full-scale production. The Company designs, builds, ships and services complete packaged consumer electronics and industrial products for original equipment manufacturers ("OEMs"), through its activities in the following segments: High Reliability Solutions ("HRS"), which is comprised of medical business including consumer health, digital health, disposables, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electronics, connectivity, and clean technologies; and defense and aerospace businesses, focused on commercial aviation, defense and military; Consumer Technologies Group ("CTG"), which includes mobile devices business, including smart phones; consumer electronics business, including connected living, wearable electronics including digital sport, game consoles, and connectivity devices; and high-volume computing business, including various supply chain solutions for notebook personal computers ("PC"), tablets, and printers; in addition, CTG group is expanding its business relationships to include supply chain optimization for non-electronics products such as shoes and clothing; Industrial and Emerging Industries ("IEI"), which is comprised of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting; and Communications & Enterprise Compute ("CEC"), includes radio access base stations, remote radio heads, and small cells for wireless infrastructure; optical, routing, broadcasting, and switching products for the data and video networks; server and storage platforms for both enterprise and cloud-based deployments; next generation storage and security appliance products; and rack level solutions, converged infrastructure and software-defined product solutions. The Company's strategy is to provide customers with a full range of cost competitive, vertically integrated global supply chain solutions through which the Company can design, build, ship and service a complete packaged product for its OEM customers. This enables the Company's OEM customers to leverage the Company's supply chain solutions to meet their product requirements throughout the entire product life cycle.

The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance) and supply chain management software solutions and component product offerings (including rigid and flexible printed circuit boards and power adapters and chargers).

Basis of Presentation

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, 2016 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 endedJuly 1, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017.

The first quarters for fiscal year 2017 and fiscal year 2016 ended on July 1, 2016, which is comprised of 92 days in the period, and June 26, 2015, which is comprised of 87 days in the period, respectively.

The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. Noncontrolling interests are presented as a separate component of total shareholders' equity in the condensed consolidated balance sheets. The associated noncontrolling owners' interests are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations.

The Company has certain non-majority-owned equity investments in non-publicly traded companies that are accounted for using the equity method of accounting. The equity method of accounting is used when the Company has the ability to significantly influence the operating decisions of the issuer, or if the Company has an ownership percentage of a corporation equal to or generally greater than 20% but less than 50%, and for non-majority-owned investments in partnerships when generally greater than 5%. The equity in earnings (losses) of equity method investees are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations.

Recently Adopted Accounting Pronouncement

In March 2016, the Financial Accounting Standards Board ("FASB") issued new guidance intended to reduce the cost and complexity of the accounting for share-based payments. The new guidance simplifies various aspects of the accounting for share-based payments including income tax effects, withholding requirements and forfeitures. The Company elected to early adopt this new guidance during the three-month period endedJuly 1, 2016. The guidance eliminates additional paid in capital ("APIC") pools and requires companies to recognize all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. It also addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. Prior to adoption, the Company elected to not deduct tax benefits for stock-based compensation awards on its tax returns, and accordingly, did not have any excess tax benefits or tax deficiencies upon adoption. The Company therefore determined that adoption of the new guidance had no impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. After assessment, it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did not record a retrospective adjustment. The Company finally determined that the adoption of this guidance did not have a significant impact on the consolidated financial position, results of operations and cash flows of the Company.

XML

BALANCE SHEET ITEMS

3 Months Ended

Jul. 01, 2016

Balance Sheet Related Disclosures [Abstract]

BALANCE SHEET ITEMS

BALANCE SHEET ITEMS

Inventories

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

	As of July 1, 2016		As of March 31, 2016
	(In thousands)
Raw materials	$	2,347,860	$	2,234,512
Work-in-progress	493,056		561,282
Finished goods	753,921		695,862
	$	3,594,837	$	3,491,656

Goodwill and Other Intangible Assets

The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the three-month period endedJuly 1, 2016:

		HRS			CTG		IEI		CEC		Amount
	(In thousands)
Balance, beginning of the year		$	439,336		$	68,234	$	322,803	$	111,693	$	942,066
Additions (1) (2)		(1,787		)	—		9,544		—		7,757
Purchase accounting adjustments (3)		794			—		—		—		794
Foreign currency translation adjustments		(5,852		)	—		—		—		(5,852		)
Balance, end of the period		$	432,491		$	68,234	$	332,347	$	111,693	$	944,765

(1) The goodwill generated from the Company’s business combination completed during the three-month period endedJuly 1, 2016 is primarily related to value placed on the acquired employee workforce, service offerings and capabilities of an acquired business. The goodwill is not deductible for income tax purposes. See note 10 for additional information.

(2) During the three-month period endedJuly 1, 2016, the Company disposed of a non-strategic business within the HRS segment, and recorded a reduction of goodwill of $1.8 million accordingly, which is included in the loss on sale in other expense on the condensed consolidated statement of operations.

(3) Includes adjustments to estimates resulting from the finalization of management's review of the valuation of assets acquired and liabilities assumed through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company.

The components of acquired intangible assets are as follows:

	As of July 1, 2016							As of March 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Intangible assets:
Customer-related intangibles	$	221,466	$	(77,693	)	$	143,773	$	223,046	$	(66,473	)	$	156,573
Licenses and other intangibles	283,743		(47,667		)	236,076		285,053		(37,872		)	247,181
Total	$	505,209	$	(125,360	)	$	379,849	$	508,099	$	(104,345	)	$	403,754

The gross carrying amounts of intangible assets are removed when fully amortized. During the three-month period endedJuly 1, 2016, the total value of intangible assets decreased primarily as a result of additional amortization and foreign currency translation adjustments. The estimated future annual amortization expense for intangible assets is as follows:

Fiscal Year Ending March 31,	Amount
	(In thousands)
2017 (1)	$	55,390
2018	62,414
2019	55,825
2020	47,288
2021	43,025
Thereafter	115,907
Total amortization expense	$	379,849

____________________________________________________________

(1) Represents estimated amortization for the remaining nine-month period ending March 31, 2017.

Other Current Assets

Other current assets include approximately $460.3 million and $501.1 million as of July 1, 2016 and March 31, 2016, respectively, for the deferred purchase price receivable from the Company's Global and North American Asset-Backed Securitization programs. See note 8 for additional information.

Also included in other current assets is the value of certain assets purchased on behalf of a customer and financed by a third party banking institution in the amounts of $83.8 million and $83.6 million as of July 1, 2016 and March 31, 2016, respectively.

Other Current Liabilities

Other current liabilities include customer working capital advances of $219.3 million and $253.7 million, customer-related accruals of $498.5 million and $479.5 million, and deferred revenue of $330.0 million and $332.3 million as of July 1, 2016 and March 31, 2016, respectively. The customer working capital advances are not interest-bearing, do not have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production. Other current liabilities also include the outstanding balance due to the third party banking institution related to the financed equipment discussed above of $96.9 million and $122.0 million as of July 1, 2016 and March 31, 2016, respectively.

XML

SHARE-BASED COMPENSATION

3 Months Ended

Jul. 01, 2016

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

The Company's primary plan used for granting equity compensation awards is the 2010 Equity Incentive Plan (the "2010 Plan").

During fiscal year 2016, in conjunction with the acquisition of NEXTracker Inc. ("NEXTracker"), the Company assumed all of the outstanding, unvested share bonus awards and outstanding, unvested options to purchase shares of common stock of NEXTracker, and converted all of these shares into Flex awards. As a result, the Company now offers the 2014 NEXTracker Equity Incentive Plan (the "NEXTracker Plan").

Further, during the first quarter of fiscal year 2017, in conjunction with an immaterial acquisition, the Company assumed all of the outstanding, unvested options to purchase shares of common stock of the acquiree, and converted all of these shares into Flex awards. As a result, the Company now offers an additional equity compensation plan, the BrightBox Technologies 2013 Plan (the "BrightBox Plan").

The Company early adopted new guidance intended to reduce cost and complexity of the accounting for share-based payments, as discussed further in note 1.

The following table summarizes the Company’s share-based compensation expense:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands)
Cost of sales	$	2,433	$	2,018
Selling, general and administrative expenses	21,364		14,108
Total share-based compensation expense	$	23,797	$	16,126

The 2010 Equity Incentive Plan

Total unrecognized compensation expense related to share options under the 2010 Plan is not significant. As of July 1, 2016, the number of options outstanding and exercisable under the 2010 Plan was 1.2 million at a weighted-average exercise price of $8.49 per share, for both.

During the three-month period endedJuly 1, 2016, the Company granted 5.6 million unvested share bonus awards under the 2010 Plan. Of this amount, approximately 4.7 million unvested share bonus awards have an average grant date price of $12.80 per share. Further, approximately 0.7 million of these unvested shares represents the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions. The average grant date fair value of these awards contingent on certain market conditions was estimated to be $17.57 per award and was calculated using a Monte Carlo simulation. The remaining 0.2 million of unvested shares bonus awards under the 2010 Plan have an average grant date price of $12.82 per share and represents the target amount of grants made to certain executive officers whereby vesting is contingent on meeting certain free cash flow targets. The number of shares under the 2010 Plan, contingent on market conditions that ultimately will vest range from zero up to a maximum of 1.4 million based on a measurement of the percentile rank of the Company’s total shareholder return over a certain specified period against the Standard and Poor’s (“S&P”) 500 Composite Index and will cliff vest after a period of three years, if such market conditions have been met. The number of shares under the 2010 Plan, contingent on free cash flow targets that ultimately will vest range from zero up to a maximum of 0.4 million of the target payment based on a measurement of cumulative three-year increase of free cash flow from operations of the Company, and will cliff vest after a period of three years.

As of July 1, 2016, approximately 16.4 million unvested share bonus awards under the 2010 Plan were outstanding, of which vesting for a targeted amount of 2.3 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 4.6 million based on the achievement levels of the respective conditions. During the three-month period ended July 1, 2016, 3.5 million shares under the 2010 Plan vested in connection with the share bonus awards with market conditions granted in fiscal year 2014.

As of July 1, 2016, total unrecognized compensation expense related to unvested share bonus awards under the 2010 Plan is $177.4 million, and will be recognized over a weighted-average remaining vesting period of 3.0 years. Approximately $30.1 million of the total unrecognized compensation cost, is related to awards under the 2010 Plan whereby vesting is contingent on meeting certain market conditions.

The 2014 NEXTracker Equity Incentive Plan

All shares previously granted under the NEXTracker plan are the result of the Company's conversion of all outstanding, unvested shares of NEXTracker into unvested shares of the Company, as part of the acquisition. Therefore, no additional share options or share bonus awards were granted by the Company during the three-month period endedJuly 1, 2016.

As of July 1, 2016, total unrecognized compensation expense related to share options under the NEXTracker Plan is $14.0 million, and will be recognized over a weighted-average remaining vesting period of 2.6 years. As of July 1, 2016, the number of options outstanding and exercisable was 2.4 million and 0.3 million, respectively, at a weighted-average exercise price of $3.79 per share and $5.35 per share, respectively.

As of July 1, 2016, approximately 2.3 million unvested share bonus awards were outstanding.  The total unrecognized compensation expense related to these unvested share bonus awards under the NEXTracker Plan is $16.5 million, and will be recognized over a weighted-average remaining vesting period of 2.1 years.

The BrightBox Technologies 2013 Plan

During the three-month period endedJuly 1, 2016, the Company granted 0.2 million share options under the BrightBox Plan, at an average grant date fair value price of $11.99 per share, and with a vesting period of three years from the vesting commencement date. All shares granted under the BrightBox plan are the result of the Company's conversion of all outstanding, unvested shares of BrightBox into unvested shares of the Company, as part of the acquisition. No additional grants will be made out of this plan in the future.

As of July 1, 2016, total unrecognized compensation expense related to share options under the BrightBox Plan is $1.8 million, and will be recognized over a weighted-average remaining vesting period of 2.9 years. As of July 1, 2016, the number of options outstanding was 0.2 million, at a weighted-average exercise price of $0.51 per share. No options under this plan were exercisable as of July 1, 2016.

XML

EARNINGS PER SHARE

3 Months Ended

Jul. 01, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flextronics International Ltd.:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands, except per share amounts)
Net income	$	105,729	$	110,850
Shares used in computation:
Weighted-average ordinary shares outstanding	544,631		565,545
Basic earnings per share	0.19		0.20
Diluted earnings per share:
Net income	$	105,729	$	110,850
Shares used in computation:
Weighted-average ordinary shares outstanding	544,631		565,545
Weighted-average ordinary share equivalents from stock options and awards (1)	6,398		12,452
Weighted-average ordinary shares and ordinary share equivalents outstanding	551,029		577,997
Diluted earnings per share	0.19		0.19

____________________________________________________________

(1)  Options to purchase ordinary shares of 1.0 million and 2.0 million during the three-month periods ended July 1, 2016 and June 26, 2015, respectively, and share bonus awards of 0.8 million for the three-month period ended July 1, 2016, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No anti-dilutive share bonus awards were excluded for the three-month period ended June 26, 2015.

XML

INTEREST AND OTHER, NET

3 Months Ended

Jul. 01, 2016

Other Nonoperating Income (Expense) [Abstract]

INTEREST AND OTHER, NET

INTEREST AND OTHER, NET

During the three-month periods endedJuly 1, 2016 and June 26, 2015, the Company recognized interest expense of $26.9 million and $20.1 million, respectively, on its debt obligations outstanding.

XML

FINANCIAL INSTRUMENTS

3 Months Ended

Jul. 01, 2016

Derivative Instruments and Hedges, Assets [Abstract]

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

Foreign Currency Contracts

The Company primarily enters into forward contracts and foreign currency swap contracts to manage the foreign currency risk associated with monetary accounts and anticipated foreign currency denominated transactions. The Company hedges committed exposures and does not engage in speculative transactions. As of July 1, 2016, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.1 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	912,000	—	$	137,283	$	—
EUR	38,380	131,471	42,616		149,493
HUF	15,656,000	—	54,854		—
ILS	101,600	—	26,359		—
INR	1,200,326	—	17,300		—
MXN	1,596,000	—	86,154		—
MYR	184,000	10,000	45,590		2,478
RON	71,600	—	17,567		—
Other	N/A	N/A	35,075		—
			462,798		151,971
Other Foreign Currency Contracts
BRL	—	387,000	—		119,618
CHF	7,341	24,799	7,493		25,317
CNY	889,314	—	133,700		—
DKK	198,100	157,200	29,573		23,468
EUR	827,266	1,019,015	919,695		1,133,079
GBP	33,926	59,056	46,021		80,247
HUF	44,240,000	40,598,000	155,005		142,244
ILS	128,800	124,420	33,416		32,280
INR	5,510,229	13,599	81,695		200
MXN	1,578,370	353,640	85,202		19,090
MYR	348,847	33,900	86,434		8,399
PLN	107,804	59,773	27,076		15,013
RON	102,172	85,811	25,068		21,054
SEK	450,235	817,956	53,085		96,704
Other	N/A	N/A	57,985		26,215
			1,741,448		1,742,928
Total Notional Contract Value in USD			$	2,204,246	$	1,894,899

As of July 1, 2016, the fair value of the Company’s short-term foreign currency contracts was not material and is included in other current assets or other current liabilities, as applicable, in the condensed consolidated balance sheets. Certain of these contracts are designed to economically hedge the Company’s exposure to monetary assets and liabilities denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of interest and other, net in the condensed consolidated statements of operations. As of July 1, 2016 and March 31, 2016, the Company also has included net deferred gains and losses in accumulated other comprehensive loss, a component of shareholders’ equity in the condensed consolidated balance sheets, relating to changes in fair value of its foreign currency contracts that are accounted for as cash flow hedges. These deferred gains were $1.6 million as of July 1, 2016, and are expected to be recognized primarily as a component of cost of sales in the condensed consolidated statements of operations primarily over the next twelve-month period. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for all fiscal periods presented and are included as a component of interest and other, net in the condensed consolidated statements of operations.

The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	July 1, 2016		March 31, 2016		Balance Sheet Location	July 1, 2016		March 31, 2016
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	6,645	$	5,510	Other current liabilities	$	4,424	$	2,446
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,744	$	17,138	Other current liabilities	$	7,434	$	18,645

The Company has financial instruments subject to master netting arrangements, which provides for the net settlement of all contracts with a single counterparty. The Company does not offset fair value amounts for assets and liabilities recognized for derivative instruments under these arrangements, and as such, the asset and liability balances presented in the table above reflect the gross amounts of derivatives in the condensed consolidated balance sheets. The impact of netting derivative assets and liabilities is not material to the Company’s financial position for any of the periods presented.

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Jul. 01, 2016

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in accumulated other comprehensive loss by component, net of tax, are as follows:

	Three-Month Periods Ended
	July 1, 2016									June 26, 2015
	Unrealized gain (loss) on derivative instruments and other			Foreign currency translation adjustments			Total			Unrealized gain (loss) on derivative instruments and other			Foreign currency translation adjustments			Total
	(In thousands)
Beginning balance	$	(41,522	)	$	(94,393	)	$	(135,915	)	$	(68,266	)	$	(112,239	)	$	(180,505	)
Other comprehensive gain (loss) before reclassifications	1,493			10,086			11,579			(601		)	2,631			2,030
Net (gains) losses reclassified from accumulated other comprehensive loss	(145		)	(225		)	(370		)	13,430			152			13,582
Net current-period other comprehensive gain	1,348			9,861			11,209			12,829			2,783			15,612
Ending balance	$	(40,174	)	$	(84,532	)	$	(124,706	)	$	(55,437	)	$	(109,456	)	$	(164,893	)

Net gains reclassified from accumulated other comprehensive loss during the three-month period ended July 1, 2016 relating to derivative instruments and other includes $0.6 million attributable to the Company’s cash flow hedge instruments which were recognized as a component of cost of sales in the condensed consolidated statement of operations.

Substantially all unrealized losses relating to derivative instruments and other, reclassified from accumulated other comprehensive loss for the three-month periods endedJune 26, 2015, was recognized as a component of cost of sales in the condensed consolidated statement of operations, which primarily relate to the Company’s foreign currency contracts accounted for as cash flow hedges.

XML

TRADE RECEIVABLES SECURITIZATION

3 Months Ended

Jul. 01, 2016

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

TRADE RECEIVABLES SECURITIZATION

TRADE RECEIVABLES SECURITIZATION

The Company sells trade receivables under two asset-backed securitization programs and under an accounts receivable factoring program.

Asset-Backed Securitization Programs

The Company continuously sells designated pools of trade receivables under its Global Asset-Backed Securitization Agreement (the “Global Program”) and its North American Asset-Backed Securitization Agreement (the “North American Program,” collectively, the “ABS Programs”) to affiliated special purpose entities, each of which in turn sells 100% of the receivables to unaffiliated financial institutions. These programs allow the operating subsidiaries to receive a cash payment and a deferred purchase price receivable for sold receivables. Following the transfer of the receivables to the special purpose entities, the transferred receivables are isolated from the Company and its affiliates, and upon the sale of the receivables from the special purpose entities to the unaffiliated financial institutions, effective control of the transferred receivables is passed to the unaffiliated financial institutions, which has the right to pledge or sell the receivables. Although the special purpose entities are consolidated by the Company, they are separate corporate entities and their assets are available first to satisfy the claims of their creditors. The investment limits set by the financial institutions are $700.0 million for the Global Program, of which $600.0 million is committed and $100.0 million is uncommitted, and $265.0 million for the North American Program, of which $225.0 million is committed and $40.0 million is uncommitted. Both programs require a minimum level of deferred purchase price receivable to be retained by the Company in connection with the sales.

The Company services, administers and collects the receivables on behalf of the special purpose entities and receives a servicing fee of 0.1% to 0.5% of serviced receivables per annum. Servicing fees recognized during the three-month periods endedJuly 1, 2016 and June 26, 2015 were not material and are included in interest and other, net within the condensed consolidated statements of operations. As the Company estimates the fee it receives in return for its obligation to service these receivables is at fair value, no servicing assets and liabilities are recognized.

As of July 1, 2016, approximately $1.3 billion of accounts receivable had been sold to the special purpose entities under the ABS Programs for which the Company had received net cash proceeds of approximately $885.0 million and deferred purchase price receivables of approximately $460.3 million. As of March 31, 2016, approximately $1.4 billion of accounts receivable had been sold to the special purpose entities for which the Company had received net cash proceeds of $880.8 million and deferred purchase price receivables of approximately $501.1 million. The portion of the purchase price for the receivables which is not paid by the unaffiliated financial institutions in cash is a deferred purchase price receivable, which is paid to the special purpose entity as payments on the receivables are collected from account debtors. The deferred purchase price receivable represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The deferred purchase price receivables are included in other current assets as of July 1, 2016 and March 31, 2016, and were carried at the expected recovery amount of the related receivables. The difference between the carrying amount of the receivables sold under these programs and the sum of the cash and fair value of the deferred purchase price receivables received at time of transfer is recognized as a loss on sale of the related receivables and recorded in interest and other, net in the condensed consolidated statements of operations and were immaterial for all periods presented.

As of July 1, 2016 and March 31, 2016, the accounts receivable balances that were sold under the ABS Programs were removed from the condensed consolidated balance sheets and the net cash proceeds received by the Company were included as cash provided by operating activities in the condensed consolidated statements of cash flows.

For the three-month periods endedJuly 1, 2016 and June 26, 2015, cash flows from sales of receivables under the ABS Programs consisted of approximately $1.4 billion and $1.1 billion, for transfers of receivables, respectively (of which approximately $59.5 million and $162.7 million, respectively, represented new transfers and the remainder proceeds from collections reinvested in revolving-period transfers).

The following table summarizes the activity in the deferred purchase price receivables account:

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Beginning balance	$	501,097		$	600,672
Transfers of receivables	762,184			767,048
Collections	(802,947		)	(851,433		)
Ending balance	$	460,334		$	516,287

Trade Accounts Receivable Sale Programs

The Company also sold accounts receivables to certain third-party banking institutions. The outstanding balance of receivables sold and not yet collected was approximately $348.4 million and $339.4 million as of July 1, 2016 and March 31, 2016, respectively. For the three-month periods endedJuly 1, 2016 and June 26, 2015, total accounts receivable sold to certain third party banking institutions was approximately $453.0 million and $637.9 million, respectively. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows.

XML

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

3 Months Ended

Jul. 01, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1 - Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

The Company has deferred compensation plans for its officers and certain other employees. Amounts deferred under the plans are invested in hypothetical investments selected by the participant or the participant’s investment manager. The Company’s deferred compensation plan assets are for the most part included in other noncurrent assets on the condensed consolidated balance sheets and primarily include investments in equity securities that are valued using active market prices.

Level 2 - Applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets) such as cash and cash equivalents and money market funds; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

The Company values foreign exchange forward contracts using level 2 observable inputs which primarily consist of an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount.

The Company’s cash equivalents are comprised of bank deposits and money market funds, which are valued using level 2 inputs, such as interest rates and maturity periods. Due to their short-term nature, their carrying amount approximates fair value.

The Company’s deferred compensation plan assets also include money market funds, mutual funds, corporate and government bonds and certain convertible securities that are valued using prices obtained from various pricing sources. These sources price these investments using certain market indices and the performance of these investments in relation to these indices. As a result, the Company has classified these investments as level 2 in the fair value hierarchy.

Level 3 - Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. 

The Company has accrued for contingent consideration in connection with its business acquisitions, which is measured at fair value based on certain internal models and unobservable inputs.

The fair value of the liability was estimated using a simulation-based measurement technique with significant inputs that are not observable in the market and thus represents a level 3 fair value measurement. The significant inputs in the fair value measurement not supported by market activity included the Company's probability assessments of expected future revenue during the earn-out period and associated volatility, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the merger agreement. Significant decreases in expected revenue during the earn-out period, or significant increases in the discount rate or volatility in isolation would result in lower fair value estimates. The interrelationship between these inputs is not considered significant.

The following table summarizes the activities related to contingent consideration:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands)
Beginning balance	$	73,423	$	4,500
Additions to accrual	—		—
Payments	—		—
Fair value adjustments	1,835		—
Ending balance	$	75,258	$	4,500

The Company values deferred purchase price receivables relating to its asset-backed securitization program based on a discounted cash flow analysis using unobservable inputs (i.e., level 3 inputs), which are primarily risk free interest rates adjusted for the credit quality of the underlying creditor. Due to its high credit quality and short term maturity, the fair value approximates carrying value. Significant increases in either of the major unobservable inputs (credit spread, risk free interest rate) in isolation would result in lower fair value estimates, however the impact is not meaningful. The interrelationship between these inputs is also insignificant. Refer to note 8 for a reconciliation of the change in the deferred purchase price receivable during the three-month periods endedJuly 1, 2016 and June 26, 2015.

There were no transfers between levels in the fair value hierarchy during the three-month periods endedJuly 1, 2016 and June 26, 2015.

Financial Instruments Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of July 1, 2016
	Level 1		Level 2			Level 3			Total
	(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	896,031		$	—		$	896,031
Deferred purchase price receivable (Note 8)	—		—			460,334			460,334
Foreign exchange contracts (Note 6)	—		17,389			—			17,389
Deferred compensation plan assets:									0
Mutual funds, money market accounts and equity securities	8,504		41,455			—			49,959
Liabilities:									0
Foreign exchange contracts (Note 6)	$	—	$	(11,858	)	$	—		$	(11,858	)
Contingent consideration in connection with business acquisitions	—		—			(75,258		)	(75,258		)
	Fair Value Measurements as of March 31, 2016
	Level 1		Level 2			Level 3			Total
	(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	1,074,132		$	—		$	1,074,132
Deferred purchase price receivable (Note 8)	—		—			501,097			501,097
Foreign exchange contracts (Note 6)	—		22,648			—			22,648
Deferred compensation plan assets:									0
Mutual funds, money market accounts and equity securities	9,228		40,556			—			49,784
Liabilities:									0
Foreign exchange contracts (Note 6)	$	—	$	(21,091	)	$	—		$	(21,091	)
Contingent consideration in connection with business acquisitions	—		—			(73,423		)	(73,423		)

Other financial instruments

The following table presents the Company’s debt not carried at fair value:

	As of July 1, 2016				As of March 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In thousands)
Term Loan, including current portion, due in installments through August 2018	$	573,750	$	567,295	$	577,500	$	573,533	Level 1
Term Loan, including current portion, due in installments through March 2019	536,250		527,536		547,500		542,709		Level 1
4.625% Notes due February 2020	500,000		523,650		500,000		524,735		Level 1
5.000% Notes due February 2023	500,000		524,296		500,000		507,500		Level 1
4.750% Notes due June 2025	595,684		613,950		595,589		604,926		Level 1
Total	$	2,705,684	$	2,756,727	$	2,720,589	$	2,753,403

The term loans and Notes due February 2020, February 2023 and June 2025 are valued based on broker trading prices in active markets. 

The Company values its €50 million (approximately $55.5 million as of July 1, 2016), 5-year, unsecured, term-loan due September 30, 2020 based on the current market rate, and as of July 1, 2016, the carrying amount approximates fair value.

XML

BUSINESS AND ASSETS ACQUISITIONS & DIVESTITIURES

3 Months Ended

Jul. 01, 2016

Business Combinations [Abstract]

BUSINESS AND ASSETS ACQUISITIONS & DIVESTITURES

BUSINESS AND ASSETS ACQUISITIONS & DIVESTITURES

On May 16, 2016, the Company acquired 100% of the outstanding share capital of a software architecture and data science solutions company, which strengthens the Company's capabilities in the energy market within the IEI segment. The Company paid $8.9 million, net of $0.2 million of cash acquired. The property and equipment acquired and liabilities assumed were not material to the Company's consolidated financial results. The Company also recorded $9.5 million of goodwill and intangibles of $1.7 million, and assumed the equity incentive plan of the acquiree. Results of operations were included in the Company’s condensed consolidated financial results beginning on the date of acquisition, and was not material to the Company’s consolidated financial results for the three-month period endedJuly 1, 2016.

During the three-month period endedJuly 1, 2016, the Company disposed of a non-strategic business within the HRS segment. The Company received $12.5 million of proceeds, net of an immaterial amount of cash held in the divested business. The property and equipment sold and liabilities transferred were not material to the Company's consolidated financial results. The loss on disposition was not material to the Company’s consolidated financial results, and is included in other charges, net in the condensed consolidated statements of operations for the three-month period endedJuly 1, 2016.

Pro-forma results of operations for the acquisition have not been presented, because the effects were immaterial to the Company’s financial results for all periods presented.

The Company is in the process of evaluating the fair value of the assets and liabilities related to business combinations completed during the recent periods. Additional information, which existed as of the acquisition date, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the date of acquisition. Changes to amounts recorded as assets and liabilities may result in a corresponding adjustment to goodwill during the respective measurement periods.

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Jul. 01, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

During the third quarter of fiscal 2014, one of the Company's Brazilian subsidiaries received an assessment for certain sales and import taxes. The tax assessment notice was for nine months of calendar year 2010 for an alleged amount of 52 million Brazilian reals (approximately USD $16 million based on the exchange rate as of July 1, 2016) plus interest. This assessment is in the second stage of the review process at the administrative level. During the fourth quarter of fiscal year 2016, the same Brazilian subsidiary received a further assessment related to the same import taxes of an additional 57 million Brazilian reals (approximately USD $18 million based on the exchange rate as of July 1, 2016) plus interest. This assessment is in the first stage of the review process at the administrative level. The Company plans to continue to vigorously oppose both of these assessments, as well as any future assessments. The Company is, however, unable to determine the likelihood of an unfavorable outcome of these assessments against our Brazilian subsidiary. While the Company believes there is no legal basis for the alleged liabilities, due to the complexities and uncertainty surrounding the administrative-review and judicial processes in Brazil and the nature of the claims, it is unable to reasonably estimate a range of loss for this assessment or any future assessments that are reasonably possible. The Company does not expect final judicial determination on either of these claims for several years.

During fiscal year 2015, one of the Company's non-operating Brazilian subsidiaries received an assessment of an approximately USD $100 million related to income and social contribution taxes, interest and penalties. During the first quarter of fiscal year 2017, the Company received a final favorable judgment in the judicial process reversing the assessment and the case is now closed. As the Company had previously determined there was no legal basis for the assessment, no adjustment was required to be recorded during the first quarter of fiscal year 2017.

In addition, from time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of these matters, which are in excess of amounts already accrued in the Company’s condensed consolidated balance sheets, would not be material to the financial statements as a whole.

XML

SHARE REPURCHASES

3 Months Ended

Jul. 01, 2016

Treasury Stock, Number of Shares and Restriction Disclosures [Abstract]

SHARE REPURCHASES

SHARE REPURCHASES

During the three-month period endedJuly 1, 2016, the Company repurchased 7.3 million shares at an aggregate purchase price of $91.0 million, and retired all of these shares.

Under the Company’s current share repurchase program, the Board of Directors authorized repurchases of its outstanding ordinary shares for up to $500 million in accordance with the share repurchase mandate approved by the Company’s shareholders at the date of the most recent Extraordinary General Meeting held on August 20, 2015. As of July 1, 2016, shares in the aggregate amount of $151.1 million were available to be repurchased under the current plan.

XML

SEGMENT REPORTING

3 Months Ended

Jul. 01, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company has four reportable segments: HRS, CTG, IEI, and CEC. These segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics. Refer to note 1 for a description of the various product categories manufactured under each of these segments.

An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, other charges (income), net and interest and other, net.

Selected financial information by segment is as follows:

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Net sales:
Communications & Enterprise Compute	$	2,195,990		$	1,966,562
Consumer Technology Group	1,313,782			1,564,964
Industrial & Emerging Industries	1,289,015			1,130,138
High Reliability Solutions	1,078,026			904,584
	$	5,876,813		$	5,566,248
Segment income and reconciliation of income before tax:
Communications & Enterprise Compute	$	61,899		$	57,065
Consumer Technology Group	24,634			38,843
Industrial & Emerging Industries	49,977			28,999
High Reliability Solutions	88,536			59,886
Corporate and Other	(34,800		)	(25,711		)
Total segment income	190,246			159,082
Reconciling items:
Intangible amortization	21,598			7,671
Stock-based compensation	23,797			16,126
Other charges, net	3,529			164
Interest and other, net	24,399			16,505
Income before income taxes	$	116,923		$	118,616

Corporate and other primarily includes corporate services costs that are not included in the Chief Operating Decision Maker's ("CODM") assessment of the performance of each of the identified reporting segments.

Property and equipment on a segment basis is not disclosed as it is not separately identified and is not internally reported by segment to the Company's CODM.

XML

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

3 Months Ended

Jul. 01, 2016

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Flextronics International Ltd. (“Parent”) has three tranches of Notes of $500 million, $500 million, and $600 million, respectively, each outstanding, which mature on February 15, 2020, February 15, 2023 and June 15, 2025, respectively. These Notes are senior unsecured obligations, and are guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company’s 100% owned subsidiaries (the “guarantor subsidiaries”). These subsidiary guarantees will terminate upon 1) a sale or other disposition of the guarantor or the sale or disposition of all or substantially all the assets of the guarantor (other than to the Parent or a subsidiary); 2) such guarantor ceasing to be a guarantor or a borrower under the Company’s Term Loan Agreement and the Revolving Line of Credit; 3) defeasance or discharge of the Notes, as provided in the Notes indenture; or 4) if at any time the Notes are rated investment grade, provided that each rating agency confirms that the Notes will continue to be rated investment grade after the Note Guaranties are terminated.

In lieu of providing separate financial statements for the guarantor subsidiaries, the Company has included the accompanying condensed consolidating financial statements, which are presented using the equity method of accounting. The principal elimination entries relate to investment in subsidiaries and intercompany balances and transactions, including transactions with the Company’s non-guarantor subsidiaries.

Condensed Consolidating Balance Sheets as of July 1, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	431,588	$	118,892		$	1,128,855	$	—		$	1,679,335
Accounts receivable	—		819,169			1,238,774		—			2,057,943
Inventories	—		1,536,360			2,058,477		—			3,594,837
Inter company receivable	9,624,074		5,918,488			12,736,490		(28,279,052		)	—
Other current assets	1,740		182,510			904,594		—			1,088,844
Total current assets	10,057,402		8,575,419			18,067,190		(28,279,052		)	8,420,959
Property and equipment, net	—		561,046			1,735,399		—			2,296,445
Goodwill and other intangible assets, net	100		60,173			1,264,341		—			1,324,614
Other assets	2,232,494		269,927			2,001,920		(4,037,835		)	466,506
Investment in subsidiaries	2,675,293		3,174,268			18,214,271		(24,063,832		)	—
Total assets	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	6,238	$	—		$	66,020
Accounts payable	—		1,477,964			2,839,607		—			4,317,571
Accrued payroll	—		136,897			240,630		—			377,527
Inter company payable	9,557,901		8,546,945			10,174,206		(28,279,052		)	—
Other current liabilities	26,524		809,796			1,030,265		—			1,866,585
Total current liabilities	9,643,261		10,972,548			14,290,946		(28,279,052		)	6,627,703
Long term liabilities	2,698,621		2,059,725			2,493,716		(4,037,835		)	3,214,227
Flextronics International Ltd. shareholders’ equity (deficit)	2,623,407		(391,440		)	24,455,272		(24,063,832		)	2,623,407
Noncontrolling interests	—		—			43,187		—			43,187
Total shareholders’ equity (deficit)	2,623,407		(391,440		)	24,498,459		(24,063,832		)	2,666,594
Total liabilities and shareholders’ equity	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524

Condensed Consolidating Balance Sheets as of March 31, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	734,869	$	148,201		$	724,500	$	—		$	1,607,570
Accounts receivable	—		729,331			1,315,426		—			2,044,757
Inventories	—		1,482,410			2,009,246		—			3,491,656
Inter company receivable	9,105,728		5,568,392			12,404,722		(27,078,842		)	—
Other current assets	2,951		180,842			987,350		—			1,171,143
Total current assets	9,843,548		8,109,176			17,441,244		(27,078,842		)	8,315,126
Property and equipment, net	—		553,072			1,704,561		—			2,257,633
Goodwill and other intangible assets, net	175		60,895			1,284,750		—			1,345,820
Other assets	2,249,145		267,034			2,004,437		(4,054,214		)	466,402
Investment in subsidiaries	2,815,426		3,010,111			18,175,348		(24,000,885		)	—
Total assets	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	5,384	$	—		$	65,166
Accounts payable	—		1,401,835			2,846,457		—			4,248,292
Accrued payroll	—		114,509			239,038		—			353,547
Inter company payable	9,562,405		7,999,335			9,517,102		(27,078,842		)	—
Other current liabilities	33,008		869,470			1,002,722		—			1,905,200
Total current liabilities	9,654,249		10,386,095			13,610,703		(27,078,842		)	6,572,205
Long term liabilities	2,683,173		2,063,988			2,514,299		(4,054,214		)	3,207,246
Flextronics International Ltd. shareholders’ equity (deficit)	2,570,872		(449,795		)	24,450,680		(24,000,885		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders’ equity (deficit)	2,570,872		(449,795		)	24,485,338		(24,000,885		)	2,605,530
Total liabilities and shareholders’ equity	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981

Condensed Consolidating Statements of Operations for the Three-Month Period Ended July 1, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,830,352		$	4,336,646		$	(2,290,185	)	$	5,876,813
Cost of sales	—			3,413,282			4,347,721			(2,290,185		)	5,470,818
Gross profit (loss)	—			417,070			(11,075		)	—			405,995
Selling, general and administrative expenses	—			69,969			169,577			—			239,546
Intangible amortization	75			717			20,806			—			21,598
Interest and other, net	(316,390		)	416,317			(71,999		)	—			27,928
Income (loss) from continuing operations before income taxes	316,315			(69,933		)	(129,459		)	—			116,923
Provision for income taxes	—			595			10,599			—			11,194
Equity in earnings in subsidiaries	(210,586		)	(727		)	(22,105		)	233,418			—
Net income (loss)	$	105,729		$	(71,255	)	$	(162,163	)	$	233,418		$	105,729

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 26, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,046,385		$	3,935,515		$	(2,415,652	)	$	5,566,248
Cost of sales	—			3,644,059			3,985,500			(2,415,652		)	5,213,907
Gross profit (loss)	—			402,326			(49,985		)	—			352,341
Selling, general and administrative expenses	—			63,559			145,826			—			209,385
Intangible amortization	75			960			6,636			—			7,671
Interest and other, net	(267,052		)	336,992			(53,271		)	—			16,669
Income (loss) from continuing operations before income taxes	266,977			815			(149,176		)	—			118,616
Provision for (benefit from) income taxes	—			9,099			(1,333		)	—			7,766
Equity in earnings in subsidiaries	(156,127		)	(17,826		)	37,047			136,906			—
Net income (loss)	$	110,850		$	(26,110	)	$	(110,796	)	$	136,906		$	110,850

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended July 1, 2016

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	105,729	$	(71,255	)	$	(162,163	)	$	233,418		$	105,729
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861		17,709			24,763			(42,472		)	9,861
Unrealized gain on derivative instruments and other, net of zero tax	1,348		2,449			1,348			(3,797		)	1,348
Comprehensive income (loss)	$	116,938	$	(51,097	)	$	(136,052	)	$	187,149		$	116,938

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended June 26, 2015

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	110,850	$	(26,110	)	$	(110,796	)	$	136,906		$	110,850
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	2,783		(23,490		)	(20,897		)	44,387			2,783
Unrealized gain on derivative instruments and other, net of zero tax	12,829		4,624			12,829			(17,453		)	12,829
Comprehensive income (loss)	$	126,462	$	(44,976	)	$	(118,864	)	$	163,840		$	126,462

Condensed Consolidating Statements of Cash Flows for the Three-Month Period EndedJuly 1, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	300,435		$	(217,862	)	$	181,392		$	(33	)	$	263,932
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(39,399		)	(103,976		)	(6		)	(143,381		)
Acquisition of businesses, net of cash acquired	—			(8,888		)	(604		)	—			(9,492		)
Proceeds from divesture of business, net of cash held in divested business	—			—			14,828			—			14,828
Investing cash flows to affiliates	(481,875		)	(816,210		)	(653,366		)	1,951,451			—
Other investing activities, net	1			(1,260		)	27,520			—			26,261
Net cash used in investing activities	(481,874		)	(865,757		)	(715,598		)	1,951,445			(111,784		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	74,972			—			46			—			75,018
Repayments of bank borrowings, long-term debt and capital lease obligations	(90,000		)	(1,152		)	(1,070		)				(92,222		)
Payments for repurchases of ordinary shares	(94,715		)	—			—			—			(94,715		)
Net proceeds from issuance of ordinary shares	3,966			—			—			—			3,966
Financing cash flows (to) from affiliates	(30,704		)	1,056,584			925,532			(1,951,412		)	—
Other financing activities, net	30,000			—			(17,099		)	—			12,901
Net cash (used in) provided by financing activities	(106,481		)	1,055,432			907,409			(1,951,412		)	(95,052		)
Effect of exchange rates on cash and cash equivalents	(15,361		)	(1,122		)	31,152			—			14,669
Net increase (decrease) in cash and cash equivalents	(303,281		)	(29,309		)	404,355			—			71,765
Cash and cash equivalents, beginning of period	734,869			148,201			724,500			—			1,607,570
Cash and cash equivalents, end of period	$	431,588		$	118,892		$	1,128,855		$	—		$	1,679,335

Condensed Consolidating Statements of Cash Flows for the Three-Month Period EndedJune 26, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	280,844		$	(4,684	)	$	86,116		$	—		$	362,276
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(47,108		)	(89,728		)	—			(136,836		)
Acquisition of businesses, net of cash acquired	—			(2,785		)	(15,795		)	—			(18,580		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			1,000			—			1,000
Investing cash flows to affiliates	(720,048		)	(162,774		)	(1,176,220		)	2,059,042			—
Other investing activities, net	—			(14,787		)	7,207			—			(7,580		)
Net cash used in investing activities	(720,048		)	(227,454		)	(1,273,536		)	2,059,042			(161,996		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	595,309			221			18			—			595,548
Repayments of bank borrowings, long-term debt and capital lease obligations	(6,604		)	(493		)	(1,360		)	—			(8,457		)
Payments for repurchases of ordinary shares	(99,995		)	—			—			—			(99,995		)
Net proceeds from issuance of ordinary shares	44,602			—			—			—			44,602
Financing cash flows from affiliates	619,970			274,540			1,164,532			(2,059,042		)	—
Other financing activities, net	—			—			(25,252		)	—			(25,252		)
Net cash provided by financing activities	1,153,282			274,268			1,137,938			(2,059,042		)	506,446
Effect of exchange rates on cash and cash equivalents	24,362			(961		)	(27,124		)	—			(3,723		)
Net increase (decrease) in cash and cash equivalents	738,440			41,169			(76,606		)	—			703,003
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	1,347,411		$	209,441		$	774,559		$	—		$	2,331,411

XML

ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Policies)

3 Months Ended

Jul. 01, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

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, 2016 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 endedJuly 1, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017.

The first quarters for fiscal year 2017 and fiscal year 2016 ended on July 1, 2016, which is comprised of 92 days in the period, and June 26, 2015, which is comprised of 87 days in the period, respectively.

The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. Noncontrolling interests are presented as a separate component of total shareholders' equity in the condensed consolidated balance sheets. The associated noncontrolling owners' interests are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations.

The Company has certain non-majority-owned equity investments in non-publicly traded companies that are accounted for using the equity method of accounting. The equity method of accounting is used when the Company has the ability to significantly influence the operating decisions of the issuer, or if the Company has an ownership percentage of a corporation equal to or generally greater than 20% but less than 50%, and for non-majority-owned investments in partnerships when generally greater than 5%. The equity in earnings (losses) of equity method investees are immaterial for all of the periods presented, and are included in interest and other, net in the condensed consolidated statements of operations.

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncement

In March 2016, the Financial Accounting Standards Board ("FASB") issued new guidance intended to reduce the cost and complexity of the accounting for share-based payments. The new guidance simplifies various aspects of the accounting for share-based payments including income tax effects, withholding requirements and forfeitures. The Company elected to early adopt this new guidance during the three-month period endedJuly 1, 2016. The guidance eliminates additional paid in capital ("APIC") pools and requires companies to recognize all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. It also addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. Prior to adoption, the Company elected to not deduct tax benefits for stock-based compensation awards on its tax returns, and accordingly, did not have any excess tax benefits or tax deficiencies upon adoption. The Company therefore determined that adoption of the new guidance had no impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. After assessment, it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did not record a retrospective adjustment. The Company finally determined that the adoption of this guidance did not have a significant impact on the consolidated financial position, results of operations and cash flows of the Company.

XML

BALANCE SHEET ITEMS (Tables)

3 Months Ended

Jul. 01, 2016

Balance Sheet Related Disclosures [Abstract]

Schedule of components of inventories

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

	As of July 1, 2016		As of March 31, 2016
	(In thousands)
Raw materials	$	2,347,860	$	2,234,512
Work-in-progress	493,056		561,282
Finished goods	753,921		695,862
	$	3,594,837	$	3,491,656

Schedule of goodwill

The following table summarizes the activity in the Company’s goodwill account for each of its four segments during the three-month period endedJuly 1, 2016:

		HRS			CTG		IEI		CEC		Amount
	(In thousands)
Balance, beginning of the year		$	439,336		$	68,234	$	322,803	$	111,693	$	942,066
Additions (1) (2)		(1,787		)	—		9,544		—		7,757
Purchase accounting adjustments (3)		794			—		—		—		794
Foreign currency translation adjustments		(5,852		)	—		—		—		(5,852		)
Balance, end of the period		$	432,491		$	68,234	$	332,347	$	111,693	$	944,765

(1) The goodwill generated from the Company’s business combination completed during the three-month period endedJuly 1, 2016 is primarily related to value placed on the acquired employee workforce, service offerings and capabilities of an acquired business. The goodwill is not deductible for income tax purposes. See note 10 for additional information.

(2) During the three-month period endedJuly 1, 2016, the Company disposed of a non-strategic business within the HRS segment, and recorded a reduction of goodwill of $1.8 million accordingly, which is included in the loss on sale in other expense on the condensed consolidated statement of operations.

(3) Includes adjustments to estimates resulting from the finalization of management's review of the valuation of assets acquired and liabilities assumed through certain business combinations completed in a period subsequent to the respective acquisition. These adjustments were not individually, nor in the aggregate, significant to the Company.

Schedule of components of acquired intangible assets

The components of acquired intangible assets are as follows:

	As of July 1, 2016							As of March 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Intangible assets:
Customer-related intangibles	$	221,466	$	(77,693	)	$	143,773	$	223,046	$	(66,473	)	$	156,573
Licenses and other intangibles	283,743		(47,667		)	236,076		285,053		(37,872		)	247,181
Total	$	505,209	$	(125,360	)	$	379,849	$	508,099	$	(104,345	)	$	403,754

Schedule of estimated future annual amortization expense for intangible assets

The estimated future annual amortization expense for intangible assets is as follows:

Fiscal Year Ending March 31,	Amount
	(In thousands)
2017 (1)	$	55,390
2018	62,414
2019	55,825
2020	47,288
2021	43,025
Thereafter	115,907
Total amortization expense	$	379,849

____________________________________________________________

(1) Represents estimated amortization for the remaining nine-month period ending March 31, 2017.

XML

SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Jul. 01, 2016

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

Schedule of share-based compensation expense

The following table summarizes the Company’s share-based compensation expense:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands)
Cost of sales	$	2,433	$	2,018
Selling, general and administrative expenses	21,364		14,108
Total share-based compensation expense	$	23,797	$	16,126

XML

EARNINGS PER SHARE (Tables)

3 Months Ended

Jul. 01, 2016

Earnings Per Share [Abstract]

Schedule of basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share

The following table reflects the basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flextronics International Ltd.:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands, except per share amounts)
Net income	$	105,729	$	110,850
Shares used in computation:
Weighted-average ordinary shares outstanding	544,631		565,545
Basic earnings per share	0.19		0.20
Diluted earnings per share:
Net income	$	105,729	$	110,850
Shares used in computation:
Weighted-average ordinary shares outstanding	544,631		565,545
Weighted-average ordinary share equivalents from stock options and awards (1)	6,398		12,452
Weighted-average ordinary shares and ordinary share equivalents outstanding	551,029		577,997
Diluted earnings per share	0.19		0.19

____________________________________________________________

(1)  Options to purchase ordinary shares of 1.0 million and 2.0 million during the three-month periods ended July 1, 2016 and June 26, 2015, respectively, and share bonus awards of 0.8 million for the three-month period ended July 1, 2016, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. No anti-dilutive share bonus awards were excluded for the three-month period ended June 26, 2015.

XML

FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Jul. 01, 2016

Derivative Instruments and Hedges, Assets [Abstract]

Summary of aggregate notional amount of the Company's outstanding foreign currency forward and swap contracts

As of July 1, 2016, the aggregate notional amount of the Company’s outstanding foreign currency contracts was $4.1 billion as summarized below:

	Foreign Currency Amount		Notional Contract Value in USD
Currency	Buy	Sell	Buy		Sell
	(In thousands)
Cash Flow Hedges
CNY	912,000	—	$	137,283	$	—
EUR	38,380	131,471	42,616		149,493
HUF	15,656,000	—	54,854		—
ILS	101,600	—	26,359		—
INR	1,200,326	—	17,300		—
MXN	1,596,000	—	86,154		—
MYR	184,000	10,000	45,590		2,478
RON	71,600	—	17,567		—
Other	N/A	N/A	35,075		—
			462,798		151,971
Other Foreign Currency Contracts
BRL	—	387,000	—		119,618
CHF	7,341	24,799	7,493		25,317
CNY	889,314	—	133,700		—
DKK	198,100	157,200	29,573		23,468
EUR	827,266	1,019,015	919,695		1,133,079
GBP	33,926	59,056	46,021		80,247
HUF	44,240,000	40,598,000	155,005		142,244
ILS	128,800	124,420	33,416		32,280
INR	5,510,229	13,599	81,695		200
MXN	1,578,370	353,640	85,202		19,090
MYR	348,847	33,900	86,434		8,399
PLN	107,804	59,773	27,076		15,013
RON	102,172	85,811	25,068		21,054
SEK	450,235	817,956	53,085		96,704
Other	N/A	N/A	57,985		26,215
			1,741,448		1,742,928
Total Notional Contract Value in USD			$	2,204,246	$	1,894,899

Schedule of fair value of the derivative instruments utilized for foreign currency risk management purposes

The following table presents the fair value of the Company’s derivative instruments utilized for foreign currency risk management purposes:

	Fair Values of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	July 1, 2016		March 31, 2016		Balance Sheet Location	July 1, 2016		March 31, 2016
	(In thousands)
Derivatives designated as hedging instruments
Foreign currency contracts	Other current assets	$	6,645	$	5,510	Other current liabilities	$	4,424	$	2,446
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current assets	$	10,744	$	17,138	Other current liabilities	$	7,434	$	18,645

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Jul. 01, 2016

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of changes in accumulated other comprehensive loss by component, net of tax

The changes in accumulated other comprehensive loss by component, net of tax, are as follows:

	Three-Month Periods Ended
	July 1, 2016									June 26, 2015
	Unrealized gain (loss) on derivative instruments and other			Foreign currency translation adjustments			Total			Unrealized gain (loss) on derivative instruments and other			Foreign currency translation adjustments			Total
	(In thousands)
Beginning balance	$	(41,522	)	$	(94,393	)	$	(135,915	)	$	(68,266	)	$	(112,239	)	$	(180,505	)
Other comprehensive gain (loss) before reclassifications	1,493			10,086			11,579			(601		)	2,631			2,030
Net (gains) losses reclassified from accumulated other comprehensive loss	(145		)	(225		)	(370		)	13,430			152			13,582
Net current-period other comprehensive gain	1,348			9,861			11,209			12,829			2,783			15,612
Ending balance	$	(40,174	)	$	(84,532	)	$	(124,706	)	$	(55,437	)	$	(109,456	)	$	(164,893	)

XML

TRADE RECEIVABLES SECURITIZATION (Tables)

3 Months Ended

Jul. 01, 2016

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Summary of deferred purchase price receivables

The following table summarizes the activity in the deferred purchase price receivables account:

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Beginning balance	$	501,097		$	600,672
Transfers of receivables	762,184			767,048
Collections	(802,947		)	(851,433		)
Ending balance	$	460,334		$	516,287

XML

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables)

3 Months Ended

Jul. 01, 2016

Fair Value Disclosures [Abstract]

Schedule of business acquisitions by acquisition, contingent consideration

The following table summarizes the activities related to contingent consideration:

	Three-Month Periods Ended
	July 1, 2016		June 26, 2015
	(In thousands)
Beginning balance	$	73,423	$	4,500
Additions to accrual	—		—
Payments	—		—
Fair value adjustments	1,835		—
Ending balance	$	75,258	$	4,500

Schedule of financial assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of July 1, 2016
	Level 1		Level 2			Level 3			Total
	(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	896,031		$	—		$	896,031
Deferred purchase price receivable (Note 8)	—		—			460,334			460,334
Foreign exchange contracts (Note 6)	—		17,389			—			17,389
Deferred compensation plan assets:									0
Mutual funds, money market accounts and equity securities	8,504		41,455			—			49,959
Liabilities:									0
Foreign exchange contracts (Note 6)	$	—	$	(11,858	)	$	—		$	(11,858	)
Contingent consideration in connection with business acquisitions	—		—			(75,258		)	(75,258		)
	Fair Value Measurements as of March 31, 2016
	Level 1		Level 2			Level 3			Total
	(In thousands)
Assets:
Money market funds and time deposits (included in cash and cash equivalents of the condensed consolidated balance sheet)	$	—	$	1,074,132		$	—		$	1,074,132
Deferred purchase price receivable (Note 8)	—		—			501,097			501,097
Foreign exchange contracts (Note 6)	—		22,648			—			22,648
Deferred compensation plan assets:									0
Mutual funds, money market accounts and equity securities	9,228		40,556			—			49,784
Liabilities:									0
Foreign exchange contracts (Note 6)	$	—	$	(21,091	)	$	—		$	(21,091	)
Contingent consideration in connection with business acquisitions	—		—			(73,423		)	(73,423		)

Schedule of debt not carried at fair value

The following table presents the Company’s debt not carried at fair value:

	As of July 1, 2016				As of March 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In thousands)
Term Loan, including current portion, due in installments through August 2018	$	573,750	$	567,295	$	577,500	$	573,533	Level 1
Term Loan, including current portion, due in installments through March 2019	536,250		527,536		547,500		542,709		Level 1
4.625% Notes due February 2020	500,000		523,650		500,000		524,735		Level 1
5.000% Notes due February 2023	500,000		524,296		500,000		507,500		Level 1
4.750% Notes due June 2025	595,684		613,950		595,589		604,926		Level 1
Total	$	2,705,684	$	2,756,727	$	2,720,589	$	2,753,403

XML

SEGMENT REPORTING (Tables)

3 Months Ended

Jul. 01, 2016

Segment Reporting [Abstract]

Schedule of segment reporting information by operating segment

Selected financial information by segment is as follows:

	Three-Month Periods Ended
	July 1, 2016			June 26, 2015
	(In thousands)
Net sales:
Communications & Enterprise Compute	$	2,195,990		$	1,966,562
Consumer Technology Group	1,313,782			1,564,964
Industrial & Emerging Industries	1,289,015			1,130,138
High Reliability Solutions	1,078,026			904,584
	$	5,876,813		$	5,566,248
Segment income and reconciliation of income before tax:
Communications & Enterprise Compute	$	61,899		$	57,065
Consumer Technology Group	24,634			38,843
Industrial & Emerging Industries	49,977			28,999
High Reliability Solutions	88,536			59,886
Corporate and Other	(34,800		)	(25,711		)
Total segment income	190,246			159,082
Reconciling items:
Intangible amortization	21,598			7,671
Stock-based compensation	23,797			16,126
Other charges, net	3,529			164
Interest and other, net	24,399			16,505
Income before income taxes	$	116,923		$	118,616

XML

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

3 Months Ended

Jul. 01, 2016

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets as of July 1, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	431,588	$	118,892		$	1,128,855	$	—		$	1,679,335
Accounts receivable	—		819,169			1,238,774		—			2,057,943
Inventories	—		1,536,360			2,058,477		—			3,594,837
Inter company receivable	9,624,074		5,918,488			12,736,490		(28,279,052		)	—
Other current assets	1,740		182,510			904,594		—			1,088,844
Total current assets	10,057,402		8,575,419			18,067,190		(28,279,052		)	8,420,959
Property and equipment, net	—		561,046			1,735,399		—			2,296,445
Goodwill and other intangible assets, net	100		60,173			1,264,341		—			1,324,614
Other assets	2,232,494		269,927			2,001,920		(4,037,835		)	466,506
Investment in subsidiaries	2,675,293		3,174,268			18,214,271		(24,063,832		)	—
Total assets	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	6,238	$	—		$	66,020
Accounts payable	—		1,477,964			2,839,607		—			4,317,571
Accrued payroll	—		136,897			240,630		—			377,527
Inter company payable	9,557,901		8,546,945			10,174,206		(28,279,052		)	—
Other current liabilities	26,524		809,796			1,030,265		—			1,866,585
Total current liabilities	9,643,261		10,972,548			14,290,946		(28,279,052		)	6,627,703
Long term liabilities	2,698,621		2,059,725			2,493,716		(4,037,835		)	3,214,227
Flextronics International Ltd. shareholders’ equity (deficit)	2,623,407		(391,440		)	24,455,272		(24,063,832		)	2,623,407
Noncontrolling interests	—		—			43,187		—			43,187
Total shareholders’ equity (deficit)	2,623,407		(391,440		)	24,498,459		(24,063,832		)	2,666,594
Total liabilities and shareholders’ equity	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524

Condensed Consolidating Balance Sheets as of March 31, 2016

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	734,869	$	148,201		$	724,500	$	—		$	1,607,570
Accounts receivable	—		729,331			1,315,426		—			2,044,757
Inventories	—		1,482,410			2,009,246		—			3,491,656
Inter company receivable	9,105,728		5,568,392			12,404,722		(27,078,842		)	—
Other current assets	2,951		180,842			987,350		—			1,171,143
Total current assets	9,843,548		8,109,176			17,441,244		(27,078,842		)	8,315,126
Property and equipment, net	—		553,072			1,704,561		—			2,257,633
Goodwill and other intangible assets, net	175		60,895			1,284,750		—			1,345,820
Other assets	2,249,145		267,034			2,004,437		(4,054,214		)	466,402
Investment in subsidiaries	2,815,426		3,010,111			18,175,348		(24,000,885		)	—
Total assets	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	5,384	$	—		$	65,166
Accounts payable	—		1,401,835			2,846,457		—			4,248,292
Accrued payroll	—		114,509			239,038		—			353,547
Inter company payable	9,562,405		7,999,335			9,517,102		(27,078,842		)	—
Other current liabilities	33,008		869,470			1,002,722		—			1,905,200
Total current liabilities	9,654,249		10,386,095			13,610,703		(27,078,842		)	6,572,205
Long term liabilities	2,683,173		2,063,988			2,514,299		(4,054,214		)	3,207,246
Flextronics International Ltd. shareholders’ equity (deficit)	2,570,872		(449,795		)	24,450,680		(24,000,885		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders’ equity (deficit)	2,570,872		(449,795		)	24,485,338		(24,000,885		)	2,605,530
Total liabilities and shareholders’ equity	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations for the Three-Month Period Ended July 1, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,830,352		$	4,336,646		$	(2,290,185	)	$	5,876,813
Cost of sales	—			3,413,282			4,347,721			(2,290,185		)	5,470,818
Gross profit (loss)	—			417,070			(11,075		)	—			405,995
Selling, general and administrative expenses	—			69,969			169,577			—			239,546
Intangible amortization	75			717			20,806			—			21,598
Interest and other, net	(316,390		)	416,317			(71,999		)	—			27,928
Income (loss) from continuing operations before income taxes	316,315			(69,933		)	(129,459		)	—			116,923
Provision for income taxes	—			595			10,599			—			11,194
Equity in earnings in subsidiaries	(210,586		)	(727		)	(22,105		)	233,418			—
Net income (loss)	$	105,729		$	(71,255	)	$	(162,163	)	$	233,418		$	105,729

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 26, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,046,385		$	3,935,515		$	(2,415,652	)	$	5,566,248
Cost of sales	—			3,644,059			3,985,500			(2,415,652		)	5,213,907
Gross profit (loss)	—			402,326			(49,985		)	—			352,341
Selling, general and administrative expenses	—			63,559			145,826			—			209,385
Intangible amortization	75			960			6,636			—			7,671
Interest and other, net	(267,052		)	336,992			(53,271		)	—			16,669
Income (loss) from continuing operations before income taxes	266,977			815			(149,176		)	—			118,616
Provision for (benefit from) income taxes	—			9,099			(1,333		)	—			7,766
Equity in earnings in subsidiaries	(156,127		)	(17,826		)	37,047			136,906			—
Net income (loss)	$	110,850		$	(26,110	)	$	(110,796	)	$	136,906		$	110,850

Schedule of condensed consolidating statements of comprehensive income (loss)

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended July 1, 2016

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	105,729	$	(71,255	)	$	(162,163	)	$	233,418		$	105,729
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861		17,709			24,763			(42,472		)	9,861
Unrealized gain on derivative instruments and other, net of zero tax	1,348		2,449			1,348			(3,797		)	1,348
Comprehensive income (loss)	$	116,938	$	(51,097	)	$	(136,052	)	$	187,149		$	116,938

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended June 26, 2015

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	110,850	$	(26,110	)	$	(110,796	)	$	136,906		$	110,850
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	2,783		(23,490		)	(20,897		)	44,387			2,783
Unrealized gain on derivative instruments and other, net of zero tax	12,829		4,624			12,829			(17,453		)	12,829
Comprehensive income (loss)	$	126,462	$	(44,976	)	$	(118,864	)	$	163,840		$	126,462

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows for the Three-Month Period EndedJuly 1, 2016

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	300,435		$	(217,862	)	$	181,392		$	(33	)	$	263,932
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(39,399		)	(103,976		)	(6		)	(143,381		)
Acquisition of businesses, net of cash acquired	—			(8,888		)	(604		)	—			(9,492		)
Proceeds from divesture of business, net of cash held in divested business	—			—			14,828			—			14,828
Investing cash flows to affiliates	(481,875		)	(816,210		)	(653,366		)	1,951,451			—
Other investing activities, net	1			(1,260		)	27,520			—			26,261
Net cash used in investing activities	(481,874		)	(865,757		)	(715,598		)	1,951,445			(111,784		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	74,972			—			46			—			75,018
Repayments of bank borrowings, long-term debt and capital lease obligations	(90,000		)	(1,152		)	(1,070		)				(92,222		)
Payments for repurchases of ordinary shares	(94,715		)	—			—			—			(94,715		)
Net proceeds from issuance of ordinary shares	3,966			—			—			—			3,966
Financing cash flows (to) from affiliates	(30,704		)	1,056,584			925,532			(1,951,412		)	—
Other financing activities, net	30,000			—			(17,099		)	—			12,901
Net cash (used in) provided by financing activities	(106,481		)	1,055,432			907,409			(1,951,412		)	(95,052		)
Effect of exchange rates on cash and cash equivalents	(15,361		)	(1,122		)	31,152			—			14,669
Net increase (decrease) in cash and cash equivalents	(303,281		)	(29,309		)	404,355			—			71,765
Cash and cash equivalents, beginning of period	734,869			148,201			724,500			—			1,607,570
Cash and cash equivalents, end of period	$	431,588		$	118,892		$	1,128,855		$	—		$	1,679,335

Condensed Consolidating Statements of Cash Flows for the Three-Month Period EndedJune 26, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	280,844		$	(4,684	)	$	86,116		$	—		$	362,276
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(47,108		)	(89,728		)	—			(136,836		)
Acquisition of businesses, net of cash acquired	—			(2,785		)	(15,795		)	—			(18,580		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			1,000			—			1,000
Investing cash flows to affiliates	(720,048		)	(162,774		)	(1,176,220		)	2,059,042			—
Other investing activities, net	—			(14,787		)	7,207			—			(7,580		)
Net cash used in investing activities	(720,048		)	(227,454		)	(1,273,536		)	2,059,042			(161,996		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	595,309			221			18			—			595,548
Repayments of bank borrowings, long-term debt and capital lease obligations	(6,604		)	(493		)	(1,360		)	—			(8,457		)
Payments for repurchases of ordinary shares	(99,995		)	—			—			—			(99,995		)
Net proceeds from issuance of ordinary shares	44,602			—			—			—			44,602
Financing cash flows from affiliates	619,970			274,540			1,164,532			(2,059,042		)	—
Other financing activities, net	—			—			(25,252		)	—			(25,252		)
Net cash provided by financing activities	1,153,282			274,268			1,137,938			(2,059,042		)	506,446
Effect of exchange rates on cash and cash equivalents	24,362			(961		)	(27,124		)	—			(3,723		)
Net increase (decrease) in cash and cash equivalents	738,440			41,169			(76,606		)	—			703,003
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	1,347,411		$	209,441		$	774,559		$	—		$	2,331,411

XML

ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION (Details)	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal period duration	92 days	87 days

XML

BALANCE SHEET ITEMS - Components of Inventory (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016
Inventories
Raw materials	$ 2,347,860	$ 2,234,512
Work-in-progress	493,056	561,282
Finished goods	753,921	695,862
Inventories, total	$ 3,594,837	$ 3,491,656

XML

BALANCE SHEET ITEMS - Goodwill and Intangible Assets (Details) $ in Thousands	3 Months Ended
	Jul. 01, 2016 USD ($) segment	Mar. 31, 2016 USD ($)
Goodwill [Line Items]
Number of operating segments | segment	4
Activity in goodwill account
Balance, beginning of the year	$ 942,066
Additions	7,757
Purchase accounting adjustments	794
Foreign currency translation adjustments	(5,852)
Balance, end of the period	944,765
Intangible assets, net (excluding goodwill)
Gross carrying amount	505,209	$ 508,099
Accumulated Amortization	(125,360)	(104,345)
Net Carrying Amount	379,849	403,754
Customer-related intangibles
Intangible assets, net (excluding goodwill)
Gross carrying amount	221,466	223,046
Accumulated Amortization	(77,693)	(66,473)
Net Carrying Amount	143,773	156,573
Licenses and other intangibles
Intangible assets, net (excluding goodwill)
Gross carrying amount	283,743	285,053
Accumulated Amortization	(47,667)	(37,872)
Net Carrying Amount	236,076	$ 247,181
Operating Segments | High Reliability Solutions (HRS)
Activity in goodwill account
Balance, beginning of the year	439,336
Additions	(1,787)
Purchase accounting adjustments	794
Foreign currency translation adjustments	(5,852)
Balance, end of the period	432,491
Goodwill, written off related to sale of business Unit	1,800
Operating Segments | Consumer Technology Group (CTG)
Activity in goodwill account
Balance, beginning of the year	68,234
Additions	0
Purchase accounting adjustments	0
Foreign currency translation adjustments	0
Balance, end of the period	68,234
Operating Segments | Industrial & Emerging Industries (IEI)
Activity in goodwill account
Balance, beginning of the year	322,803
Additions	9,544
Purchase accounting adjustments	0
Foreign currency translation adjustments	0
Balance, end of the period	332,347
Operating Segments | Communications & Enterprise Compute (CEC)
Activity in goodwill account
Balance, beginning of the year	111,693
Additions	0
Purchase accounting adjustments	0
Foreign currency translation adjustments	0
Balance, end of the period	$ 111,693

XML

BALANCE SHEET ITEMS - Future Amortization and Other Current Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016	Jun. 26, 2015	Mar. 31, 2015
Estimated future annual amortization expense for acquired intangible assets
2017	$ 55,390
2018	62,414
2019	55,825
2020	47,288
2021	43,025
Thereafter	115,907
Net Carrying Amount	379,849	$ 403,754
Other current assets related to purchase of assets on behalf of customer financed by a third party banking institution	83,800	83,600
Customer working capital advances	219,300	253,700
Customer related accruals	498,500	479,500
Deferred revenue	330,000	332,300
Other current liability for purchase of assets on behalf of customer financed by a third party banking institution	96,900	122,000
Asset-Backed Securitization Programs
Estimated future annual amortization expense for acquired intangible assets
Transferor's interests in transferred financial assets, fair value	$ 460,334	$ 501,097	$ 516,287	$ 600,672

XML

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Share-based compensation
Share-based compensation expense	$ 23,797	$ 16,126
Cost of sales
Share-based compensation
Share-based compensation expense	2,433	2,018
Selling, general and administrative expenses
Share-based compensation
Share-based compensation expense	$ 21,364	$ 14,108

XML

SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Jul. 01, 2016 USD ($) $ / shares shares
Share options
Share-based compensation
Weighted average exercise price of exercisable shares (in dollars per share) | $ / shares	$ 0.00
Options exercisable (shares)	0
2010 Equity Incentive Plan | Share options
Share-based compensation
Share options outstanding (shares)	1,200,000
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 8.49
Weighted average exercise price of exercisable shares (in dollars per share) | $ / shares	$ 8.49
2010 Equity Incentive Plan | Restricted Stock Units, Share Bonus Awards with Market Conditions, and Share Bonus Awards With Free Cash Flow Targets
Share-based compensation
Unvested share bonus awards granted (shares)	5,600,000
Number of shares outstanding (shares)	16,400,000
Unrecognized compensation expense | $	$ 177.4
Share weighted-average remaining vesting period	2 years 11 months 16 days
2010 Equity Incentive Plan | Restricted Stock Units
Share-based compensation
Unvested share bonus awards granted (shares)	4,700,000
Average grant date price of unvested share bonus awards (in dollars per share) | $ / shares	$ 12.80
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions
Share-based compensation
Number of shares outstanding (shares)	2,300,000
Unrecognized compensation expense | $	$ 30.1
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Fiscal 2013
Share-based compensation
Shares vested (shares)	3,500,000
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Minimum
Share-based compensation
Number of shares that may be issued (shares)	0
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Maximum
Share-based compensation
Number of shares that may be issued (shares)	4,600,000
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Key employees
Share-based compensation
Unvested share bonus awards granted (shares)	700,000
Average grant date price of unvested share bonus awards (in dollars per share) | $ / shares	$ 17.57
Vesting period	3 years
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Key employees | Minimum
Share-based compensation
Unvested share bonus awards granted (shares)	0
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Key employees | Maximum
Share-based compensation
Unvested share bonus awards granted (shares)	1,400,000.0
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Certain executive officers
Share-based compensation
Measurement period	3 years
Vesting period	3 years
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Certain executive officers | Minimum
Share-based compensation
Unvested share bonus awards granted (shares)	0
2010 Equity Incentive Plan | Share Bonus Awards with Market Conditions | Certain executive officers | Maximum
Share-based compensation
Unvested share bonus awards granted (shares)	400,000
2010 Equity Incentive Plan | Share Bonus Awards With Free Cash Flow Targets | Certain executive officers
Share-based compensation
Unvested share bonus awards granted (shares)	200,000
Nonvested average grant date price (in dollars per share) | $ / shares	$ 12.82
2014 NEXTracker Equity Incentive Plan
Share-based compensation
Unvested share bonus awards granted (shares)	0
Number of shares outstanding (shares)	2,300,000
Unrecognized compensation expense | $	$ 16.5
Share weighted-average remaining vesting period	2 years 1 month 18 days
2014 NEXTracker Equity Incentive Plan | Share options
Share-based compensation
Share options outstanding (shares)	2,400,000
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 3.79
Weighted average exercise price of exercisable shares (in dollars per share) | $ / shares	$ 5.35
Compensation not yet recognized | $	$ 14.0
Share weighted-average remaining vesting period	2 years 6 months 26 days
Options exercisable (shares)	300,000
BrightBox Equity Incentive Plan | Share options
Share-based compensation
Share options outstanding (shares)	200,000
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 0.51
Compensation not yet recognized | $	$ 1.8
Share weighted-average remaining vesting period	2 years 10 months 17 days
Options granted in period (shares)	200,000
Options granted, weighted average exercise price (in dollars per share) | $ / shares	$ 11.99
Options exercisable (shares)	0
Vesting period	3 years

XML

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Basic earnings per share:
Net income	$ 105,729	$ 110,850
Shares used in computation:
Weighted-average ordinary shares outstanding (shares)	544,631	565,545
Basic earnings per share (in dollars per share)	$ 0.19	$ 0.20
Diluted earnings per share:
Net income	$ 105,729	$ 110,850
Shares used in computation:
Weighted-average ordinary shares outstanding (shares)	544,631	565,545
Weighted-average ordinary share equivalents from stock options and awards (shares)	6,398	12,452
Weighted-average ordinary shares and ordinary share equivalents outstanding (shares)	551,029	577,997
Diluted earnings per share (in dollars per share)	$ 0.19	$ 0.19

XML

EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Options
Anti-diluted securities excluded from the computation of diluted earnings per share
Ordinary shares excluded from the computation of diluted earnings per share (shares)	1,000,000	2,000,000
Restricted Stock Units
Anti-diluted securities excluded from the computation of diluted earnings per share
Ordinary shares excluded from the computation of diluted earnings per share (shares)	800,000	0

XML

INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Other Nonoperating Income (Expense) [Abstract]
Interest expense	$ 26.9	$ 20.1

XML

FINANCIAL INSTRUMENTS - Foreign Currency Contracts (Details) - Jul. 01, 2016 - Forward and Swap Contracts € in Thousands, ₪ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, SEK in Thousands, MYR in Thousands, MXN in Thousands, HUF in Thousands, DKK in Thousands, CAD in Thousands, BRL in Thousands, $ in Thousands	ILS (₪)	CHF (SFr)	MYR	BRL	HUF	CAD	EUR (€)	USD ($)	GBP (£)	SEK	JPY (¥)	MXN	CNY (¥)	DKK
Notional amount
Notional Contract Value								$ 4,100,000
Buy
Notional amount
Notional Contract Value								2,204,246
Sell
Notional amount
Notional Contract Value								1,894,899
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy
Notional amount
Notional Contract Value								462,798
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | CNY
Notional amount
Notional Contract Value								137,283					¥ 912,000
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | EUR
Notional amount
Notional Contract Value								42,616					38,380
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | HUF
Notional amount
Notional Contract Value					HUF 15,656,000			54,854
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | ILS
Notional amount
Notional Contract Value	₪ 101,600							26,359
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | INR
Notional amount
Notional Contract Value	1,200,326							17,300
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MXN
Notional amount
Notional Contract Value								86,154				MXN 1,596,000
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | MYR
Notional amount
Notional Contract Value			MYR 184,000					45,590
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | RON
Notional amount
Notional Contract Value	71,600							17,567
Derivatives designated as hedging instruments | Cash Flow Hedges | Buy | Other
Notional amount
Notional Contract Value								35,075
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell
Notional amount
Notional Contract Value								151,971
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | CNY
Notional amount
Notional Contract Value								0					0
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | EUR
Notional amount
Notional Contract Value								149,493					131,471
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | HUF
Notional amount
Notional Contract Value					0			0
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | ILS
Notional amount
Notional Contract Value	0							0
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | INR
Notional amount
Notional Contract Value	0							0
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MXN
Notional amount
Notional Contract Value								0				0
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | MYR
Notional amount
Notional Contract Value			10,000					2,478
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | RON
Notional amount
Notional Contract Value	0							0
Derivatives designated as hedging instruments | Cash Flow Hedges | Sell | Other
Notional amount
Notional Contract Value								0
Economic hedges | Buy
Notional amount
Notional Contract Value								1,741,448
Economic hedges | Buy | BRL
Notional amount
Notional Contract Value				BRL 0				0
Economic hedges | Buy | CHF
Notional amount
Notional Contract Value						CAD 7,341		7,493
Economic hedges | Buy | CNY
Notional amount
Notional Contract Value		SFr 889,314						133,700
Economic hedges | Buy | DKK
Notional amount
Notional Contract Value								29,573					198,100
Economic hedges | Buy | EUR
Notional amount
Notional Contract Value								919,695						DKK 827,266
Economic hedges | Buy | GBP
Notional amount
Notional Contract Value							€ 33,926	46,021
Economic hedges | Buy | HUF
Notional amount
Notional Contract Value								155,005	£ 44,240,000
Economic hedges | Buy | ILS
Notional amount
Notional Contract Value								33,416	128,800
Economic hedges | Buy | INR
Notional amount
Notional Contract Value					5,510,229			81,695
Economic hedges | Buy | MXN
Notional amount
Notional Contract Value	1,578,370							85,202
Economic hedges | Buy | MYR
Notional amount
Notional Contract Value								86,434			¥ 348,847
Economic hedges | Buy | RON
Notional amount
Notional Contract Value			102,172					25,068
Economic hedges | Buy | PLN
Notional amount
Notional Contract Value								27,076				107,804
Economic hedges | Buy | SEK
Notional amount
Notional Contract Value								53,085		SEK 450,235
Economic hedges | Buy | Other
Notional amount
Notional Contract Value								57,985
Economic hedges | Sell
Notional amount
Notional Contract Value								1,742,928
Economic hedges | Sell | BRL
Notional amount
Notional Contract Value				BRL 387,000				119,618
Economic hedges | Sell | CHF
Notional amount
Notional Contract Value						CAD 24,799		25,317
Economic hedges | Sell | CNY
Notional amount
Notional Contract Value		SFr 0						0
Economic hedges | Sell | DKK
Notional amount
Notional Contract Value								23,468					¥ 157,200
Economic hedges | Sell | EUR
Notional amount
Notional Contract Value								1,133,079						DKK 1,019,015
Economic hedges | Sell | GBP
Notional amount
Notional Contract Value							€ 59,056	80,247
Economic hedges | Sell | HUF
Notional amount
Notional Contract Value								142,244	40,598,000
Economic hedges | Sell | ILS
Notional amount
Notional Contract Value								32,280	£ 124,420
Economic hedges | Sell | INR
Notional amount
Notional Contract Value					HUF 13,599			200
Economic hedges | Sell | MXN
Notional amount
Notional Contract Value	₪ 353,640							19,090
Economic hedges | Sell | MYR
Notional amount
Notional Contract Value								8,399			¥ 33,900
Economic hedges | Sell | RON
Notional amount
Notional Contract Value			MYR 85,811					21,054
Economic hedges | Sell | PLN
Notional amount
Notional Contract Value								15,013				MXN 59,773
Economic hedges | Sell | SEK
Notional amount
Notional Contract Value								96,704		SEK 817,956
Economic hedges | Sell | Other
Notional amount
Notional Contract Value								$ 26,215

XML

FINANCIAL INSTRUMENTS - Derivatives (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016
Fair Values of Derivative Instruments
Deferred losses in AOCI	$ 1,600
Foreign currency contracts | Other current assets | Derivatives designated as hedging instruments
Fair Values of Derivative Instruments
Asset Derivatives	6,645	$ 5,510
Foreign currency contracts | Other current assets | Economic hedges
Fair Values of Derivative Instruments
Asset Derivatives	10,744	17,138
Foreign currency contracts | Other current liabilities | Derivatives designated as hedging instruments
Fair Values of Derivative Instruments
Liability Derivatives	4,424	2,446
Foreign currency contracts | Other current liabilities | Economic hedges
Fair Values of Derivative Instruments
Liability Derivatives	$ 7,434	$ 18,645

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes by component (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 2,570,872
Ending balance	2,623,407
Unrealized gain (loss) on derivative instruments and other
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(41,522)	$ (68,266)
Other comprehensive gain (loss) before reclassifications	1,493	(601)
Net (gains) losses reclassified from accumulated other comprehensive loss	(145)	13,430
Net current-period other comprehensive gain (loss)	1,348	12,829
Ending balance	(40,174)	(55,437)
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(94,393)	(112,239)
Other comprehensive gain (loss) before reclassifications	10,086	2,631
Net (gains) losses reclassified from accumulated other comprehensive loss	(225)	152
Net current-period other comprehensive gain (loss)	9,861	2,783
Ending balance	(84,532)	(109,456)
AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(135,915)	(180,505)
Other comprehensive gain (loss) before reclassifications	11,579	2,030
Net (gains) losses reclassified from accumulated other comprehensive loss	(370)	13,582
Net current-period other comprehensive gain (loss)	11,209	15,612
Ending balance	$ (124,706)	$ (164,893)

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) $ in Millions	3 Months Ended
	Jul. 01, 2016 USD ($)
Unrealized gain (loss) on derivative instruments and other | Reclassification out of accumulated other comprehensive income
Reclassification
Cost of sales	$ 0.6

XML

TRADE RECEIVABLES SECURITIZATION (Details)	3 Months Ended
	Jul. 01, 2016 USD ($) program	Jun. 26, 2015 USD ($)	Mar. 31, 2016 USD ($)
Trade Receivables Securitization disclosures
Servicing assets	$ 0	$ 0
Servicing liability	$ 0	0
Asset-Backed Securitization Programs
Trade Receivables Securitization disclosures
Number of asset-backed securitization programs | program	2
Percentage of receivables sold to unaffiliated institutions	100.00%
Company's accounts receivables sold to third-party	$ 1,300,000,000		$ 1,400,000,000
Amount received from accounts receivable sold to third-party	885,000,000		880,800,000
Cash proceeds from sale of accounts receivable	1,400,000,000	1,100,000,000
Cash flows from new transfers of receivables	59,500,000	162,700,000
Activity in the deferred purchase price receivables account
Beginning balance	501,097,000	600,672,000
Transfers of receivables	762,184,000	767,048,000
Collections	(802,947,000)	(851,433,000)
Ending balance	$ 460,334,000	516,287,000
Asset-Backed Securitization Programs | Minimum
Trade Receivables Securitization disclosures
Service fee received, percent	0.10%
Asset-Backed Securitization Programs | Maximum
Trade Receivables Securitization disclosures
Service fee received, percent	0.50%
Global Program
Trade Receivables Securitization disclosures
Investment limits with financial institution	$ 700,000,000
Global Program | Committed
Trade Receivables Securitization disclosures
Investment limits with financial institution	600,000,000
Global Program | Uncommitted
Trade Receivables Securitization disclosures
Investment limits with financial institution	100,000,000
North American Program
Trade Receivables Securitization disclosures
Investment limits with financial institution	265,000,000
North American Program | Committed
Trade Receivables Securitization disclosures
Investment limits with financial institution	225,000,000
North American Program | Uncommitted
Trade Receivables Securitization disclosures
Investment limits with financial institution	40,000,000
Sales of Receivables to Third Party Banks
Trade Receivables Securitization disclosures
Company's accounts receivables sold to third-party	453,000,000	$ 637,900,000
Activity in the deferred purchase price receivables account
Receivables sold but not yet collected from banking institutions	$ 348,400,000		$ 339,400,000

XML

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Narrative (Details)	Oct. 01, 2015 EUR (€)	Jul. 01, 2016 USD ($)	Jun. 26, 2015 USD ($)
Business Acquisition [Line Items]
Transfers out of Level 1 and into Level 2 related to assets and liabilities measured on a recurring and nonrecurring basis		$ 0	$ 0
Transfers out of Level 2 and into Level 1 related to assets and liabilities measured on a recurring and nonrecurring basis		0	0
Transfers out of Level 1 and into Level 2 related to liabilities measured on a recurring and nonrecurring basis		0	0
Transfers out of Level 2 and into Level 1 related to liabilities measured on a recurring and nonrecurring basis		0	$ 0
Mirror Controls International
Business Acquisition [Line Items]
Debt instrument, face amount	€ 50,000,000	$ 55,500,000
Term of debt instrument	5 years

XML

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Contingent Consideration Liability [Roll Forward]
Beginning balance	$ 73,423	$ 4,500
Additions to accrual	0	0
Payments	0	0
Fair value adjustments	1,835	0
Ending balance	$ 75,258	$ 4,500

XML

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016
Money market funds and time deposits
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	$ 896,031	$ 1,074,132
Deferred purchase price receivable
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	460,334	501,097
Foreign exchange contracts
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	17,389	22,648
Total Liabilities	(11,858)	(21,091)
Deferred compensation plan assets: Mutual funds, money market accounts and equity securities
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	49,959	49,784
Contingent consideration in connection with business acquisitions
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Liabilities	(75,258)	(73,423)
Level 1 | Money market funds and time deposits
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Level 1 | Deferred purchase price receivable
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Level 1 | Foreign exchange contracts
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Total Liabilities	0	0
Level 1 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	8,504	9,228
Level 1 | Contingent consideration in connection with business acquisitions
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Liabilities	0	0
Level 2 | Money market funds and time deposits
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	896,031	1,074,132
Level 2 | Deferred purchase price receivable
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Level 2 | Foreign exchange contracts
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	17,389	22,648
Total Liabilities	(11,858)	(21,091)
Level 2 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	41,455	40,556
Level 2 | Contingent consideration in connection with business acquisitions
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Liabilities	0	0
Level 3 | Money market funds and time deposits
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Level 3 | Deferred purchase price receivable
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	460,334	501,097
Level 3 | Foreign exchange contracts
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Total Liabilities	0	0
Level 3 | Deferred compensation plan assets: Mutual funds, money market accounts and equity securities
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Assets	0	0
Level 3 | Contingent consideration in connection with business acquisitions
Financial Instruments Measured at Fair Value on a Recurring Basis and Nonrecurring Basis
Total Liabilities	$ (75,258)	$ (73,423)

XML

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Debt Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016
Level 1 | 4.625% Notes due February 2020
Other financial instruments
Debt instrument interest rate (as a percent)	4.625%	4.625%
Level 1 | 5.000% Notes due February 2023
Other financial instruments
Debt instrument interest rate (as a percent)	5.00%	5.00%
Level 1 | 4.750% Notes due June 2025
Other financial instruments
Debt instrument interest rate (as a percent)	4.75%	4.75%
Carrying Amount
Other financial instruments
Fair Value	$ 2,705,684	$ 2,720,589
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through August 2018
Other financial instruments
Fair Value	573,750	577,500
Carrying Amount | Level 1 | Term Loan, including current portion, due in installments through March 2019
Other financial instruments
Fair Value	536,250	547,500
Carrying Amount | Level 1 | 4.625% Notes due February 2020
Other financial instruments
Fair Value	500,000	500,000
Carrying Amount | Level 1 | 5.000% Notes due February 2023
Other financial instruments
Fair Value	500,000	500,000
Carrying Amount | Level 1 | 4.750% Notes due June 2025
Other financial instruments
Fair Value	595,684	595,589
Fair Value
Other financial instruments
Fair Value	2,756,727	2,753,403
Fair Value | Level 1 | Term Loan, including current portion, due in installments through August 2018
Other financial instruments
Fair Value	567,295	573,533
Fair Value | Level 1 | Term Loan, including current portion, due in installments through March 2019
Other financial instruments
Fair Value	527,536	542,709
Fair Value | Level 1 | 4.625% Notes due February 2020
Other financial instruments
Fair Value	523,650	524,735
Fair Value | Level 1 | 5.000% Notes due February 2023
Other financial instruments
Fair Value	524,296	507,500
Fair Value | Level 1 | 4.750% Notes due June 2025
Other financial instruments
Fair Value	$ 613,950	$ 604,926

XML

BUSINESS AND ASSETS ACQUISITIONS & DIVESTITURES - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	May 16, 2016	Jul. 01, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Goodwill and intangibles		$ 1,324,614	$ 1,345,820
Maximum time to complete final allocation of purchase price		12 months
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Purchase consideration net cash	$ 8,900
Cash acquired from acquisitions	200
Assumed liabilities	9,500
Goodwill and intangibles	$ 1,700
Operating Segments | High Reliability Solutions (HRS)
Business Acquisition [Line Items]
Proceeds from divestiture of businesses		$ 12,500

XML

COMMITMENTS AND CONTINGENCIES (Details) - Brazil BRL in Millions, $ in Millions	3 Months Ended				12 Months Ended
	Mar. 31, 2016 BRL	Mar. 31, 2016 USD ($)	Dec. 31, 2013 BRL	Dec. 31, 2013 USD ($)	Mar. 31, 2015 USD ($)
Assessment of Sales and Import Taxes
Loss Contingencies [Line Items]
Income tax examination, estimate of possible loss			BRL 52	$ 16	$ 100
Proposed Additional Assessment of Sales and Import Taxes
Loss Contingencies [Line Items]
Income tax examination, estimate of possible loss	BRL 57	$ 18

XML

SHARE REPURCHASES (Details) - USD ($) shares in Millions	3 Months Ended
	Jul. 01, 2016	Aug. 20, 2015
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract]
Aggregate shares repurchased (shares)	7.3
Aggregate purchase value of shares repurchased	$ 91,000,000
Authorized amount of stock repurchase program		$ 500,000,000
Amount remaining to be repurchased under the plans	$ 151,100,000

XML

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended
	Jul. 01, 2016 USD ($) segment	Jun. 26, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	4
Net sales	$ 5,876,813	$ 5,566,248
Intangible amortization	21,598	7,671
Stock-based compensation	23,797	16,126
Other charges, net	3,529	164
Interest and other, net	24,399	16,505
Income before income taxes	116,923	118,616
Operating Segments
Segment Reporting Information [Line Items]
Net sales	5,876,813	5,566,248
Total segment income	190,246	159,082
Operating Segments | Communications & Enterprise Compute
Segment Reporting Information [Line Items]
Net sales	2,195,990	1,966,562
Total segment income	61,899	57,065
Operating Segments | Consumer Technology Group
Segment Reporting Information [Line Items]
Net sales	1,313,782	1,564,964
Total segment income	24,634	38,843
Operating Segments | Industrial & Emerging Industries
Segment Reporting Information [Line Items]
Net sales	1,289,015	1,130,138
Total segment income	49,977	28,999
Operating Segments | High Reliability Solutions
Segment Reporting Information [Line Items]
Net sales	1,078,026	904,584
Total segment income	88,536	59,886
Operating Segments | Corporate and Other
Segment Reporting Information [Line Items]
Total segment income	$ (34,800)	$ (25,711)

XML

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) $ in Millions	3 Months Ended
	Jul. 01, 2016 USD ($) tranche
Bank borrowings and long-term debt
Number of tranches | tranche	3
Percentage of ownership interest owned in subsidiaries that guarantees indebtedness	100.00%
4.625% Notes due February 2020
Bank borrowings and long-term debt
Maximum borrowing capacity	$ 500
5.000% Notes due February 2023
Bank borrowings and long-term debt
Maximum borrowing capacity	500
4.750% Notes due June 2025
Bank borrowings and long-term debt
Maximum borrowing capacity	$ 600

XML

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2016	Jun. 26, 2015	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 1,679,335	$ 1,607,570	$ 2,331,411	$ 1,628,408
Accounts receivable	2,057,943	2,044,757
Inventories	3,594,837	3,491,656
Inter company receivable	0	0
Other current assets	1,088,844	1,171,143
Total current assets	8,420,959	8,315,126
Property and equipment, net	2,296,445	2,257,633
Goodwill and other intangible assets, net	1,324,614	1,345,820
Other assets	466,506	466,402
Investment in subsidiaries	0	0
Total assets	12,508,524	12,384,981
Current liabilities:
Bank borrowings and current portion of long-term debt	66,020	65,166
Accounts payable	4,317,571	4,248,292
Accrued payroll	377,527	353,547
Inter company payable	0	0
Other current liabilities	1,866,585	1,905,200
Total current liabilities	6,627,703	6,572,205
Long term liabilities	3,214,227	3,207,246
Flextronics International Ltd. shareholders’ equity (deficit)	2,623,407	2,570,872
Noncontrolling interests	43,187	34,658
Total shareholders’ equity	2,666,594	2,605,530
Total liabilities and shareholders’ equity	12,508,524	12,384,981
Reportable legal entities | Parent
Current assets:
Cash and cash equivalents	431,588	734,869	1,347,411	608,971
Accounts receivable	0	0
Inventories	0	0
Inter company receivable	9,624,074	9,105,728
Other current assets	1,740	2,951
Total current assets	10,057,402	9,843,548
Property and equipment, net	0	0
Goodwill and other intangible assets, net	100	175
Other assets	2,232,494	2,249,145
Investment in subsidiaries	2,675,293	2,815,426
Total assets	14,965,289	14,908,294
Current liabilities:
Bank borrowings and current portion of long-term debt	58,836	58,836
Accounts payable	0	0
Accrued payroll	0	0
Inter company payable	9,557,901	9,562,405
Other current liabilities	26,524	33,008
Total current liabilities	9,643,261	9,654,249
Long term liabilities	2,698,621	2,683,173
Flextronics International Ltd. shareholders’ equity (deficit)	2,623,407	2,570,872
Noncontrolling interests	0	0
Total shareholders’ equity	2,623,407	2,570,872
Total liabilities and shareholders’ equity	14,965,289	14,908,294
Reportable legal entities | Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	118,892	148,201	209,441	168,272
Accounts receivable	819,169	729,331
Inventories	1,536,360	1,482,410
Inter company receivable	5,918,488	5,568,392
Other current assets	182,510	180,842
Total current assets	8,575,419	8,109,176
Property and equipment, net	561,046	553,072
Goodwill and other intangible assets, net	60,173	60,895
Other assets	269,927	267,034
Investment in subsidiaries	3,174,268	3,010,111
Total assets	12,640,833	12,000,288
Current liabilities:
Bank borrowings and current portion of long-term debt	946	946
Accounts payable	1,477,964	1,401,835
Accrued payroll	136,897	114,509
Inter company payable	8,546,945	7,999,335
Other current liabilities	809,796	869,470
Total current liabilities	10,972,548	10,386,095
Long term liabilities	2,059,725	2,063,988
Flextronics International Ltd. shareholders’ equity (deficit)	(391,440)	(449,795)
Noncontrolling interests	0	0
Total shareholders’ equity	(391,440)	(449,795)
Total liabilities and shareholders’ equity	12,640,833	12,000,288
Reportable legal entities | Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	1,128,855	724,500	774,559	851,165
Accounts receivable	1,238,774	1,315,426
Inventories	2,058,477	2,009,246
Inter company receivable	12,736,490	12,404,722
Other current assets	904,594	987,350
Total current assets	18,067,190	17,441,244
Property and equipment, net	1,735,399	1,704,561
Goodwill and other intangible assets, net	1,264,341	1,284,750
Other assets	2,001,920	2,004,437
Investment in subsidiaries	18,214,271	18,175,348
Total assets	41,283,121	40,610,340
Current liabilities:
Bank borrowings and current portion of long-term debt	6,238	5,384
Accounts payable	2,839,607	2,846,457
Accrued payroll	240,630	239,038
Inter company payable	10,174,206	9,517,102
Other current liabilities	1,030,265	1,002,722
Total current liabilities	14,290,946	13,610,703
Long term liabilities	2,493,716	2,514,299
Flextronics International Ltd. shareholders’ equity (deficit)	24,455,272	24,450,680
Noncontrolling interests	43,187	34,658
Total shareholders’ equity	24,498,459	24,485,338
Total liabilities and shareholders’ equity	41,283,121	40,610,340
Eliminations
Current assets:
Cash and cash equivalents	0	0	$ 0	$ 0
Accounts receivable	0	0
Inventories	0	0
Inter company receivable	(28,279,052)	(27,078,842)
Other current assets	0	0
Total current assets	(28,279,052)	(27,078,842)
Property and equipment, net	0	0
Goodwill and other intangible assets, net	0	0
Other assets	(4,037,835)	(4,054,214)
Investment in subsidiaries	(24,063,832)	(24,000,885)
Total assets	(56,380,719)	(55,133,941)
Current liabilities:
Bank borrowings and current portion of long-term debt	0	0
Accounts payable	0	0
Accrued payroll	0	0
Inter company payable	(28,279,052)	(27,078,842)
Other current liabilities	0	0
Total current liabilities	(28,279,052)	(27,078,842)
Long term liabilities	(4,037,835)	(4,054,214)
Flextronics International Ltd. shareholders’ equity (deficit)	(24,063,832)	(24,000,885)
Noncontrolling interests	0	0
Total shareholders’ equity	(24,063,832)	(24,000,885)
Total liabilities and shareholders’ equity	$ (56,380,719)	$ (55,133,941)

XML

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Condensed consolidating statements of operations
Net sales	$ 5,876,813	$ 5,566,248
Cost of sales	5,470,818	5,213,907
Gross profit	405,995	352,341
Selling, general and administrative expenses	239,546	209,385
Intangible amortization	21,598	7,671
Interest and other, net	27,928	16,669
Income before income taxes	116,923	118,616
Provision for income taxes	11,194	7,766
Equity in earnings in subsidiaries	0	0
Net income	105,729	110,850
Reportable legal entities | Parent
Condensed consolidating statements of operations
Net sales	0	0
Cost of sales	0	0
Gross profit	0	0
Selling, general and administrative expenses	0	0
Intangible amortization	75	75
Interest and other, net	(316,390)	(267,052)
Income before income taxes	316,315	266,977
Provision for income taxes	0	0
Equity in earnings in subsidiaries	(210,586)	(156,127)
Net income	105,729	110,850
Reportable legal entities | Guarantor Subsidiaries
Condensed consolidating statements of operations
Net sales	3,830,352	4,046,385
Cost of sales	3,413,282	3,644,059
Gross profit	417,070	402,326
Selling, general and administrative expenses	69,969	63,559
Intangible amortization	717	960
Interest and other, net	416,317	336,992
Income before income taxes	(69,933)	815
Provision for income taxes	595	9,099
Equity in earnings in subsidiaries	(727)	(17,826)
Net income	(71,255)	(26,110)
Reportable legal entities | Non-Guarantor Subsidiaries
Condensed consolidating statements of operations
Net sales	4,336,646	3,935,515
Cost of sales	4,347,721	3,985,500
Gross profit	(11,075)	(49,985)
Selling, general and administrative expenses	169,577	145,826
Intangible amortization	20,806	6,636
Interest and other, net	(71,999)	(53,271)
Income before income taxes	(129,459)	(149,176)
Provision for income taxes	10,599	(1,333)
Equity in earnings in subsidiaries	(22,105)	37,047
Net income	(162,163)	(110,796)
Eliminations
Condensed consolidating statements of operations
Net sales	(2,290,185)	(2,415,652)
Cost of sales	(2,290,185)	(2,415,652)
Gross profit	0	0
Selling, general and administrative expenses	0	0
Intangible amortization	0	0
Interest and other, net	0	0
Income before income taxes	0	0
Provision for income taxes	0	0
Equity in earnings in subsidiaries	233,418	136,906
Net income	$ 233,418	$ 136,906

XML

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Comprehensive Income (Details) - USD ($)	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Condensed consolidating statements of comprehensive income (loss)
Net income (loss)	$ 105,729,000	$ 110,850,000
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861,000	2,783,000
Unrealized gain on derivative instruments and other, net of zero tax	1,348,000	12,829,000
Comprehensive income	116,938,000	126,462,000
Foreign currency translation adjustments, tax	0	0
Unrealized gain (loss) on derivative instruments and other, tax	0	0
Reportable legal entities | Parent
Condensed consolidating statements of comprehensive income (loss)
Net income (loss)	105,729,000	110,850,000
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861,000	2,783,000
Unrealized gain on derivative instruments and other, net of zero tax	1,348,000	12,829,000
Comprehensive income	116,938,000	126,462,000
Foreign currency translation adjustments, tax	0	0
Unrealized gain (loss) on derivative instruments and other, tax	0	0
Reportable legal entities | Guarantor Subsidiaries
Condensed consolidating statements of comprehensive income (loss)
Net income (loss)	(71,255,000)	(26,110,000)
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	17,709,000	(23,490,000)
Unrealized gain on derivative instruments and other, net of zero tax	2,449,000	4,624,000
Comprehensive income	(51,097,000)	(44,976,000)
Foreign currency translation adjustments, tax	0	0
Unrealized gain (loss) on derivative instruments and other, tax	0	0
Reportable legal entities | Non-Guarantor Subsidiaries
Condensed consolidating statements of comprehensive income (loss)
Net income (loss)	(162,163,000)	(110,796,000)
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	24,763,000	(20,897,000)
Unrealized gain on derivative instruments and other, net of zero tax	1,348,000	12,829,000
Comprehensive income	(136,052,000)	(118,864,000)
Foreign currency translation adjustments, tax	0	0
Unrealized gain (loss) on derivative instruments and other, tax	0	0
Eliminations
Condensed consolidating statements of comprehensive income (loss)
Net income (loss)	233,418,000	136,906,000
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	(42,472,000)	44,387,000
Unrealized gain on derivative instruments and other, net of zero tax	(3,797,000)	(17,453,000)
Comprehensive income	187,149,000	163,840,000
Foreign currency translation adjustments, tax	0	0
Unrealized gain (loss) on derivative instruments and other, tax	$ 0	$ 0

XML

SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 01, 2016	Jun. 26, 2015
Condensed consolidating statements of cash flows
Net cash provided by (used in) operating activities	$ 263,932	$ 362,276
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	(143,381)	(136,836)
Acquisition of businesses, net of cash acquired	(9,492)	(18,580)
Proceeds from divestiture of business, net of cash held in divested business	14,828	1,000
Investing cash flows to affiliates	0	0
Other investing activities, net	26,261	(7,580)
Net cash used in investing activities	(111,784)	(161,996)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	75,018	595,548
Repayments of bank borrowings and long-term debt	(92,222)	(8,457)
Payments for repurchases of ordinary shares	(94,715)	(99,995)
Net proceeds from issuance of ordinary shares	3,966	44,602
Financing cash flows from affiliates	0	0
Other financing activities, net	12,901	(25,252)
Net cash (used in) provided by financing activities	(95,052)	506,446
Effect of exchange rates on cash and cash equivalents	14,669	(3,723)
Net increase in cash and cash equivalents	71,765	703,003
Cash and cash equivalents, beginning of period	1,607,570	1,628,408
Cash and cash equivalents, end of period	1,679,335	2,331,411
Reportable legal entities | Parent
Condensed consolidating statements of cash flows
Net cash provided by (used in) operating activities	300,435	280,844
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	0	0
Acquisition of businesses, net of cash acquired	0	0
Proceeds from divestiture of business, net of cash held in divested business	0	0
Investing cash flows to affiliates	(481,875)	(720,048)
Other investing activities, net	1	0
Net cash used in investing activities	(481,874)	(720,048)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	74,972	595,309
Repayments of bank borrowings and long-term debt	(90,000)	(6,604)
Payments for repurchases of ordinary shares	(94,715)	(99,995)
Net proceeds from issuance of ordinary shares	3,966	44,602
Financing cash flows from affiliates	(30,704)	619,970
Other financing activities, net	30,000	0
Net cash (used in) provided by financing activities	(106,481)	1,153,282
Effect of exchange rates on cash and cash equivalents	(15,361)	24,362
Net increase in cash and cash equivalents	(303,281)	738,440
Cash and cash equivalents, beginning of period	734,869	608,971
Cash and cash equivalents, end of period	431,588	1,347,411
Reportable legal entities | Guarantor Subsidiaries
Condensed consolidating statements of cash flows
Net cash provided by (used in) operating activities	(217,862)	(4,684)
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	(39,399)	(47,108)
Acquisition of businesses, net of cash acquired	(8,888)	(2,785)
Proceeds from divestiture of business, net of cash held in divested business	0	0
Investing cash flows to affiliates	(816,210)	(162,774)
Other investing activities, net	(1,260)	(14,787)
Net cash used in investing activities	(865,757)	(227,454)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	0	221
Repayments of bank borrowings and long-term debt	(1,152)	(493)
Payments for repurchases of ordinary shares	0	0
Net proceeds from issuance of ordinary shares	0	0
Financing cash flows from affiliates	1,056,584	274,540
Other financing activities, net	0	0
Net cash (used in) provided by financing activities	1,055,432	274,268
Effect of exchange rates on cash and cash equivalents	(1,122)	(961)
Net increase in cash and cash equivalents	(29,309)	41,169
Cash and cash equivalents, beginning of period	148,201	168,272
Cash and cash equivalents, end of period	118,892	209,441
Reportable legal entities | Non-Guarantor Subsidiaries
Condensed consolidating statements of cash flows
Net cash provided by (used in) operating activities	181,392	86,116
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	(103,976)	(89,728)
Acquisition of businesses, net of cash acquired	(604)	(15,795)
Proceeds from divestiture of business, net of cash held in divested business	14,828	1,000
Investing cash flows to affiliates	(653,366)	(1,176,220)
Other investing activities, net	27,520	7,207
Net cash used in investing activities	(715,598)	(1,273,536)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	46	18
Repayments of bank borrowings and long-term debt	(1,070)	(1,360)
Payments for repurchases of ordinary shares	0	0
Net proceeds from issuance of ordinary shares	0	0
Financing cash flows from affiliates	925,532	1,164,532
Other financing activities, net	(17,099)	(25,252)
Net cash (used in) provided by financing activities	907,409	1,137,938
Effect of exchange rates on cash and cash equivalents	31,152	(27,124)
Net increase in cash and cash equivalents	404,355	(76,606)
Cash and cash equivalents, beginning of period	724,500	851,165
Cash and cash equivalents, end of period	1,128,855	774,559
Eliminations
Condensed consolidating statements of cash flows
Net cash provided by (used in) operating activities	(33)	0
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	(6)	0
Acquisition of businesses, net of cash acquired	0	0
Proceeds from divestiture of business, net of cash held in divested business	0	0
Investing cash flows to affiliates	1,951,451	2,059,042
Other investing activities, net	0	0
Net cash used in investing activities	1,951,445	2,059,042
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	0	0
Repayments of bank borrowings and long-term debt		0
Payments for repurchases of ordinary shares	0	0
Net proceeds from issuance of ordinary shares	0	0
Financing cash flows from affiliates	(1,951,412)	(2,059,042)
Other financing activities, net	0	0
Net cash (used in) provided by financing activities	(1,951,412)	(2,059,042)
Effect of exchange rates on cash and cash equivalents	0	0
Net increase in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	$ 0	$ 0