(Mark One)
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ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended March 31, 2018
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Or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Singapore
(State or other jurisdiction of
incorporation or organization)
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Not Applicable
(I.R.S. Employer Identification No.)
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2 Changi South Lane,
Singapore
(Address of registrant's principal executive offices)
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486123
(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Ordinary Shares, No Par Value
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The Nasdaq Global Select Market
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Large accelerated filer
ý
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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Class
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Outstanding at June 8, 2018
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Ordinary Shares, No Par Value
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528,282,247
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Document
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Parts into Which Incorporated
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Proxy Statement to be delivered to shareholders in connection with the Registrant's 2018 Annual General Meeting of Shareholders
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Part III
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Page
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•
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Communications & Enterprise Compute ("CEC"), which includes our telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; our networking business which includes optical, routing, broadcasting, and switching products for the data and video networks; our 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;
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•
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Consumer Technologies Group ("CTG"), which includes our consumer-related businesses in connected living, wearables, gaming, augmented and virtual reality, fashion and apparel, and mobile devices; and including various supply chain solutions for notebook personal computers, tablets, and printers;
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•
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Industrial and Emerging Industries ("IEI"), which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, electric vehicle infrastructure, smart solar energy, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation, and kiosks; and
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•
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High Reliability Solutions ("HRS"), which is comprised of our health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; our automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies.
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•
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Improved efficiency and reduced production costs;
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•
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Reduced design and development costs and lead time;
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•
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Accelerated time-to-market and time-to-volume production;
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•
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Reduced capital investment requirements and fixed costs;
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•
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Improved inventory management and purchasing power;
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•
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Access to worldwide design, engineering, manufacturing, and after-market service capabilities; and
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•
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Ability to focus on core branding and R&D initiatives.
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•
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Speed:
Our sophisticated supply chain management tools and expertise allow us to provide customers with access to real-time information that increases visibility throughout the entire product lifecycle, reducing risk while accelerating execution.
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•
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Scope:
Our end-to-end services,
from Sketch-to-Scale
tm
, include design and innovation services, engineering, logistics, and supply chain management. Our deep industry knowledge and multi-domain expertise accelerates the entire process of producing increasingly complex products for increasingly interconnected industries.
|
•
|
Scale:
Our physical infrastructure includes over
100
facilities in approximately
35
countries, staffed by approximately
200,000
employees, providing our customers with truly global scale and strategic geographic distribution capabilities.
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•
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Innovations Labs.
Innovation Labs is a design and engineering organization that specializes in supporting customer design and product development services from early concept stages, with the ability to accommodate highly ambiguous requirements. Customers gain access to our design and engineering facilities, technical subject matter expertise, and rapid prototyping resources such as metal and plastic 3D printers and soft tooling capabilities.
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•
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Collective Innovation Platform.
The Collective Innovation Platform is an ecosystem of qualified technology solutions that helps customers reduce time-to-market and enhance product functionality by leveraging technology building blocks that have been qualified by Flex as part our technology Centers of Excellence. By joining the Flex Collective Innovation Program, technology providers can capitalize on their investments and gain access to our large, global customer base. Program members include technology suppliers, startups, software/application providers, research labs/institutes and universities.
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•
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Lab IX.
A startup accelerator program that invests in the next generation of disruptive technologies, giving startups a competitive advantage by providing them the necessary resources and connections to grow their business. By bringing together startups, OEMs and technology partners, we provide Lab IX portfolio companies with access to our global end-to-end supply chain solutions, our wealth of experience in hardware design, our manufacturing services and logistics across a wide range of markets, and additional benefits from our specialized partners.
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•
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Centers of Excellence.
Centers of Excellence provide strategic technology capabilities developed by Flex in critical solutions areas which are leveraged across multiple industries, for integration into our customers' products. Centers of Excellence include Human Machine Interface, Wireless and Connectivity, Semiconductors, Sensors and Actuators, Power and Battery Management, Smart Software, Flexible Technology, Computing, and Mechanicals and Plastics.
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•
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Interconnect Technology Center.
The Interconnect Technology Center provides expertise in both rigid and flexible circuits for next generation printed circuits technology, testing methods, and designs. The Center's state-of-the-art labs are specifically designed for printed circuit innovation, with a focus on embedded components, integration and transfer, wearable and stretchable design, thermal management, system integration and simulation.
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•
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CloudLabs.
The CloudLabs initiative provides cloud infrastructure companies with engineering and design services to optimize rack-level solutions, especially in the case of multi-vendor equipment integration. CloudLabs enables customers to accelerate a spectrum of cloud, converged infrastructure, and datacenter strategies.
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•
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Contract Design Services, where customers purchase engineering and development services on a time and materials basis; or
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•
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Joint Development Manufacturing Services, where our engineering and development teams work jointly with our customers' teams to ensure product development integrity, seamless manufacturing handoffs, and faster time to market.
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•
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System Architecture, User Interface and Industrial Design.
We help our customers design and develop innovative and cost-effective products that address the needs of the user and the market. These services include product definition, analysis and optimization of performance and functional requirements, 2-D sketch level drawings, 3-D mock-ups and proofs of concept, interaction and interface models, detailed hard models, and product packaging.
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•
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Mechanical Engineering, Technology, Enclosure Systems, Thermal and Tooling Design.
We offer detailed mechanical, structural, and thermal design solutions for enclosures that encompass a wide range of plastic, metal and other material technologies. These capabilities and technologies are increasingly important to our customers' product differentiation goals and are increasingly required to be successful in today's competitive marketplace. Additionally, we provide design and development services for prototype and production tooling equipment used in manufacturing.
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•
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Electronic System Design.
We provide complete electrical and hardware design for products ranging in size from small handheld consumer devices to large, high-speed, carrier-grade, telecommunications equipment, including embedded microprocessors, memory, digital signal processing design, high-speed digital interfaces, analog circuit design, power management solutions, wired and wireless communication protocols, display imaging, audio/video, and radio frequency systems and antenna design.
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•
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Reliability and Failure Analysis.
We provide comprehensive design for manufacturing, test, and reliability services leveraging robust, internally-developed tools and databases. These services leverage our core manufacturing competencies to help our customers achieve their time-to-revenue goals.
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•
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Component Level Development Engineering.
We have developed substantial engineering competencies for product development and lifecycle management of various component technologies, such as power solutions, and printed circuit board and interconnection technologies, both rigid and flexible.
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•
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Enclosures.
We offer a comprehensive set of custom electronics enclosures and related products and services. Our services include the design, manufacture and integration of electronics packaging systems, including custom enclosure systems, power and thermal subsystems, interconnect subsystems, cabling, and cases. In addition to standard sheet metal and plastic fabrication services, we assist in the design of electronics packaging systems that protect sensitive electronics and enhance functionality. Our enclosure design services focus on functionality, manufacturability and testing. These services are integrated with our other assembly and manufacturing services to provide our customers with improved overall supply chain management.
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•
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Testing Services.
We offer computer-aided testing services for assembled printed circuit boards, systems and subsystems. These services significantly improve our ability to deliver high-quality products on a consistent basis. Our test services include management defect analysis, in-circuit testing and functional testing as well as environmental stress tests of board and system assemblies. We also offer design for test, manufacturing, and environmental services to jointly improve customer product design and manufacturing.
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•
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Materials Procurement and Inventory Management.
Our manufacturing and assembly operations capitalize on our materials inventory management expertise and volume procurement capabilities. As a result, we believe that we are able to achieve highly competitive cost reductions and reduce total manufacturing cycle time for our OEM customers. Materials procurement and management consist of the planning, purchasing, expediting, and warehousing of components and materials used in the manufacturing process. In addition, our strategy includes having third-party suppliers of custom components located in our industrial parks to reduce material and transportation costs, simplify logistics and facilitate inventory management. We also use a sophisticated automated manufacturing resource planning system and enhanced electronic data interchange capabilities to ensure inventory control and optimization. Through our manufacturing resources planning system, we have real-time visibility of material availability and are able to track work in process. We utilize electronic data interchange with our customers and suppliers to implement a variety of supply chain management programs. Electronic data interchange allows customers to share demand and product forecasts, deliver purchase orders and assists suppliers with satisfying just-in-time delivery and supplier-managed inventory requirements. This also enables us to implement vendor-managed inventory solutions to increase flexibility and reduce overall capital allocation in the supply chain. We procure a wide assortment of materials, including electronic components, plastics and metals. There are a number of sources for these materials, including customers for whom we are providing systems assembly and manufacturing services. On some occasions, there have been shortages in certain electronic components, most recently with regard to connectors, capacitors, LCD panels and memory (both DRAM and Flash). However, such shortages have not had a material impact on our operating results for any periods presented. See "Risk Factors—
We may be adversely affected by shortages of required electronic components
."
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•
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Rigid and Flexible Printed Circuit Board ("PCB") Fabrication.
Printed circuit boards are composed of laminated materials that provide the interconnection for integrated circuits, passive and other electronic components and thus are at the heart of almost every electrical system. They are formed out of multi-layered epoxy resin and glass cloth systems with very fine traces, spaces, and plated holes (called vias) which interconnect the different layers into an extremely dense circuit network that carries the electrical signals between components. As semiconductor designs
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•
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Power Supplies.
We have a full-service power supply business ("Flex Power") that is a key player in the mobile revolution, with expertise in high efficiency and high density switching power supplies ranging from 1 to 3,000 watts. Our product portfolio includes chargers for smartphones and tablets, adapters for notebooks and gaming, and power supplies for server, storage, and networking markets. We pride ourselves on our ability to service the needs of industry leaders in these markets through valuable technology, design expertise, collaborative development, and efficient execution. Our products are fully compliant with the environmental and Energy Star requirements that drive efficiency specifications in our industry. Customers who engage with Flex Power gain access to compelling innovations and intellectual property in digital control and smart power.
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•
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CEC
, which includes our telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; our networking business which includes optical, routing, broadcasting, and switching products for the data and video networks; our server and storage platforms for both enterprise and cloud-based deployments;
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•
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CTG, which includes our consumer-related businesses in connected living, wearables, gaming, augmented and virtual reality, fashion and apparel, and mobile devices; and including various supply chain solutions for notebook personal computers, tablets, and printers;
|
•
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IEI, which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, electric vehicle infrastructure, smart solar energy, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation, and kiosks; and
|
•
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HRS, which is comprised of our health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; our automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies.
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•
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rapid changes in technology, evolving industry standards, and requirements for continuous improvement in products and services that result in short product life cycles;
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•
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demand for our customers' products may be seasonal;
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•
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our customers may fail to successfully market their products, and our customers' products may fail to gain widespread commercial acceptance;
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•
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our customers' products may have supply chain issues;
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•
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our customers may experience dramatic market share shifts in demand which may cause them to lose market share or exit businesses; and
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•
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there may be recessionary periods in our customers' markets.
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•
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fluctuations in the value of local currencies;
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•
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labor unrest, difficulties in staffing and geographic labor shortages;
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•
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longer payment cycles;
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•
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cultural differences;
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•
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increases in duties, tariffs, and taxation levied on our products including anti-dumping and countervailing duties;
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•
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trade restrcitions and/or potential trade wars;
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•
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increased scrutiny by the media and other third parties of labor practices within our industry (including but not limited to working conditions) which may result in allegations of violations, more stringent and burdensome labor laws and regulations and inconsistency in the enforcement and interpretation of such laws and regulations, higher labor costs, and/or loss of revenues if our customers become dissatisfied with our labor practices and diminish or terminate their relationship with us;
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•
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imposition of restrictions on currency conversion or the transfer of funds;
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•
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limitations on imports or exports of components or assembled products, or other trade sanctions;
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•
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expropriation of private enterprises;
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•
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ineffective legal protection of our intellectual property rights in certain countries;
|
•
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natural disasters;
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•
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exposure to infectious disease and epidemics;
|
•
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inability of international customers and suppliers to obtain financing resulting from tightening of credit in international financial markets;
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•
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political unrest; and
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•
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a potential reversal of current favorable policies encouraging foreign investment or foreign trade by our host countries.
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•
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we may need to pay a purchase price to the divesting customers that exceeds the value we ultimately may realize from the future business of the customer;
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•
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the integration of the acquired assets and facilities into our business may be time-consuming and costly, including the incurrence of restructuring charges;
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•
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we, rather than the divesting customer, bear the risk of excess capacity at the facility;
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•
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we may not achieve anticipated cost reductions and efficiencies at the facility;
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•
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we may be unable to meet the expectations of the customer as to volume, product quality, timeliness and cost reductions;
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•
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our supply agreements with the customers generally do not require any minimum volumes of purchase by the customers, and the actual volume of purchases may be less than anticipated; and
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•
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if demand for the customers' products declines, the customer may reduce its volume of purchases, and we may not be able to sufficiently reduce the expenses of operating the facility or use the facility to provide services to other customers.
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•
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diversion of management's attention from the normal operation of our business;
|
•
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potential loss of key employees and customers of the acquired companies;
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•
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difficulties managing and integrating operations in geographically dispersed locations;
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•
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the potential for deficiencies in internal controls at acquired companies;
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•
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increases in our expenses and working capital requirements, which reduce our return on invested capital;
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•
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lack of experience operating in the geographic market or industry sector of the acquired business;
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•
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cybersecurity and compliance related issues;
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•
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initial dependence on unfamiliar supply chain or relatively small supply chain partners; and
|
•
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exposure to unanticipated liabilities of acquired companies.
|
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Americas
|
|
Asia
|
|
Europe
|
|
Total
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||||
|
(in million square feet)
|
||||||||||
|
Manufacturing Square Footage Space
|
||||||||||
Manufacturing - Leased
|
3.8
|
|
|
6.7
|
|
|
1.4
|
|
|
11.9
|
|
Manufacturing - Owned
|
5.4
|
|
|
7.7
|
|
|
3.0
|
|
|
16.1
|
|
Total
|
9.2
|
|
|
14.4
|
|
|
4.4
|
|
|
28.0
|
|
|
|
|
|
|
|
|
|
||||
|
Total Square Footage Space
|
||||||||||
Manufacturing
|
9.2
|
|
|
14.4
|
|
|
4.4
|
|
|
28.0
|
|
Non-manufacturing
|
10.5
|
|
|
8.7
|
|
|
5.2
|
|
|
24.4
|
|
Total
|
19.7
|
|
|
23.1
|
|
|
9.6
|
|
|
52.4
|
|
|
High
|
|
Low
|
||||
Fiscal Year Ended March 31, 2018
|
|
|
|
|
|
||
Fourth Quarter
|
$
|
19.61
|
|
|
$
|
16.31
|
|
Third Quarter
|
19.09
|
|
|
16.75
|
|
||
Second Quarter
|
17.09
|
|
|
15.52
|
|
||
First Quarter
|
17.62
|
|
|
15.15
|
|
||
Fiscal Year Ended March 31, 2017
|
|
|
|
|
|
||
Fourth Quarter
|
$
|
16.88
|
|
|
$
|
14.33
|
|
Third Quarter
|
14.84
|
|
|
13.54
|
|
||
Second Quarter
|
13.69
|
|
|
11.66
|
|
||
First Quarter
|
13.19
|
|
|
11.69
|
|
|
3/13
|
|
3/14
|
|
3/15
|
|
3/16
|
|
3/17
|
|
3/18
|
||||||
Flex Ltd.
|
100.00
|
|
|
136.69
|
|
|
187.57
|
|
|
178.40
|
|
|
248.52
|
|
|
241.57
|
|
S&P 500 Index
|
100.00
|
|
|
121.86
|
|
|
137.37
|
|
|
139.82
|
|
|
163.83
|
|
|
186.75
|
|
Peer Group
|
100.00
|
|
|
116.99
|
|
|
144.33
|
|
|
130.91
|
|
|
198.24
|
|
|
169.22
|
|
|
Fiscal Year Ended March 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(In millions, except per share amounts)
|
||||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
$
|
25,441
|
|
|
$
|
23,863
|
|
|
$
|
24,419
|
|
|
$
|
26,148
|
|
|
$
|
26,109
|
|
Cost of sales
|
23,778
|
|
|
22,303
|
|
|
22,811
|
|
|
24,603
|
|
|
24,610
|
|
|||||
Restructuring charges (3)
|
67
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||
Gross profit
|
1,596
|
|
|
1,521
|
|
|
1,608
|
|
|
1,545
|
|
|
1,440
|
|
|||||
Selling, general and administrative expenses
|
1,019
|
|
|
937
|
|
|
955
|
|
|
844
|
|
|
875
|
|
|||||
Intangible amortization
|
79
|
|
|
81
|
|
|
66
|
|
|
32
|
|
|
29
|
|
|||||
Restructuring charges (3)
|
24
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Other charges (income), net (1)
|
(170
|
)
|
|
21
|
|
|
48
|
|
|
(53
|
)
|
|
57
|
|
|||||
Interest and other, net
|
123
|
|
|
100
|
|
|
84
|
|
|
51
|
|
|
62
|
|
|||||
Income before income taxes
|
521
|
|
|
371
|
|
|
455
|
|
|
671
|
|
|
400
|
|
|||||
Provision for income taxes
|
92
|
|
|
51
|
|
|
11
|
|
|
70
|
|
|
35
|
|
|||||
Net income
|
$
|
429
|
|
|
$
|
320
|
|
|
$
|
444
|
|
|
$
|
601
|
|
|
$
|
365
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
$
|
0.80
|
|
|
$
|
0.59
|
|
|
$
|
0.79
|
|
|
$
|
1.02
|
|
|
$
|
0.59
|
|
|
As of March 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(In millions)
|
||||||||||||||||||
CONSOLIDATED BALANCE SHEET DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Working capital (2)
|
$
|
1,902
|
|
|
$
|
1,883
|
|
|
$
|
1,743
|
|
|
$
|
1,986
|
|
|
$
|
1,745
|
|
Total assets
|
13,716
|
|
|
12,593
|
|
|
12,385
|
|
|
11,653
|
|
|
12,485
|
|
|||||
Total long-term debt, excluding current portion
|
2,898
|
|
|
2,891
|
|
|
2,709
|
|
|
2,026
|
|
|
2,056
|
|
|||||
Shareholders' equity
|
3,019
|
|
|
2,678
|
|
|
2,606
|
|
|
2,396
|
|
|
2,202
|
|
(1)
|
For fiscal years
2018
,
2017
and
2016
, refer to note 16 to the consolidated financial statements in Item 8, "Financial Statements and Supplementary Data" for further discussion.
|
(2)
|
Working capital is defined as current assets less current liabilities.
|
(3)
|
The Company initiated restructuring plans during fiscal years
2018
,
2017
and
2014
. For the restructuring plans initiated during fiscal year 2018 and 2017, please refer to note 15 to the consolidated financial statements in Item 8, "Financial Statements and Supplementary Data" for further discussion.
|
•
|
Communications & Enterprise Compute ("CEC"), which includes our telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; our networking business which includes optical, routing, broadcasting, and switching products for the data and video networks; our 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;
|
•
|
Consumer Technologies Group ("CTG"), which includes our consumer-related businesses in connected living, wearables, gaming, augmented and virtual reality, fashion and apparel, and mobile devices; and including various supply chain solutions for notebook personal computers, tablets, and printers;
|
•
|
Industrial and Emerging Industries ("IEI"), which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, electric vehicle infrastructure, smart solar energy, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation, and kiosks; and
|
•
|
High Reliability Solutions ("HRS"), which is comprised of our health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; our automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies.
|
|
Fiscal Year Ended March 31,
|
||||||||||||
Property and equipment, net:
|
2018
|
|
2017
|
||||||||||
|
(In millions)
|
||||||||||||
Mexico
|
$
|
587
|
|
|
26
|
%
|
|
$
|
525
|
|
|
23
|
%
|
China
|
492
|
|
|
22
|
%
|
|
720
|
|
|
31
|
%
|
||
U.S.
|
305
|
|
|
14
|
%
|
|
291
|
|
|
13
|
%
|
||
Malaysia
|
153
|
|
|
7
|
%
|
|
173
|
|
|
7
|
%
|
||
Hungary
|
150
|
|
|
7
|
%
|
|
133
|
|
|
6
|
%
|
||
Other
|
553
|
|
|
24
|
%
|
|
475
|
|
|
21
|
%
|
||
|
$
|
2,240
|
|
|
|
|
$
|
2,317
|
|
|
|
•
|
changes in the macro-economic environment and related changes in consumer demand;
|
•
|
the mix of the manufacturing services we are providing, the number, size, and complexity of new manufacturing programs, the degree to which we utilize our manufacturing capacity, seasonal demand, shortages of components and other factors;
|
•
|
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 customers;
|
•
|
the effects on our business due to certain customers' products having short product life cycles;
|
•
|
our customers' ability to cancel or delay orders or change production quantities;
|
•
|
our customers' decisions 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;
|
•
|
changes in tax legislation; and
|
•
|
changes in trade regulations and treaties.
|
|
Fiscal Year Ended
March 31, |
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of sales
|
93.5
|
|
|
93.5
|
|
|
93.4
|
|
Restructuring charges
|
0.3
|
|
|
0.2
|
|
|
—
|
|
Gross profit
|
6.2
|
|
|
6.3
|
|
|
6.6
|
|
Selling, general and administrative expenses
|
4.0
|
|
|
3.9
|
|
|
3.9
|
|
Intangible amortization
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
Restructuring charges
|
0.1
|
|
|
—
|
|
|
—
|
|
Other charges (income), net
|
(0.7
|
)
|
|
0.1
|
|
|
0.2
|
|
Interest and other, net
|
0.5
|
|
|
0.4
|
|
|
0.3
|
|
Income before income taxes
|
2.0
|
|
|
1.6
|
|
|
1.9
|
|
Provision for income taxes
|
0.4
|
|
|
0.2
|
|
|
—
|
|
Net Income
|
1.6
|
%
|
|
1.4
|
%
|
|
1.9
|
%
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
Segments:
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
Communications & Enterprise Compute
|
$
|
7,729
|
|
|
30
|
%
|
|
$
|
8,384
|
|
|
35
|
%
|
|
$
|
8,842
|
|
|
36
|
%
|
Consumer Technologies Group
|
6,970
|
|
|
27
|
%
|
|
6,362
|
|
|
27
|
%
|
|
6,997
|
|
|
29
|
%
|
|||
Industrial & Emerging Industries
|
5,972
|
|
|
24
|
%
|
|
4,968
|
|
|
21
|
%
|
|
4,681
|
|
|
19
|
%
|
|||
High Reliability Solutions
|
4,769
|
|
|
19
|
%
|
|
4,149
|
|
|
17
|
%
|
|
3,899
|
|
|
16
|
%
|
|||
|
$
|
25,441
|
|
|
|
|
|
$
|
23,863
|
|
|
|
|
|
$
|
24,419
|
|
|
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
Segment income & margin:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Communications & Enterprise Compute
|
$
|
186
|
|
|
2.4
|
%
|
|
$
|
229
|
|
|
2.7
|
%
|
|
$
|
265
|
|
|
3.0
|
%
|
Consumer Technologies Group
|
112
|
|
|
1.6
|
%
|
|
180
|
|
|
2.8
|
%
|
|
164
|
|
|
2.3
|
%
|
|||
Industrial & Emerging Industries
|
235
|
|
|
3.9
|
%
|
|
180
|
|
|
3.6
|
%
|
|
157
|
|
|
3.4
|
%
|
|||
High Reliability Solutions
|
381
|
|
|
8.0
|
%
|
|
334
|
|
|
8.1
|
%
|
|
295
|
|
|
7.6
|
%
|
|||
Corporate and Other
|
(128
|
)
|
|
|
|
(108
|
)
|
|
|
|
(89
|
)
|
|
|
||||||
Total segment income
|
786
|
|
|
3.1
|
%
|
|
815
|
|
|
3.4
|
%
|
|
792
|
|
|
3.2
|
%
|
|||
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Intangible amortization
|
79
|
|
|
|
|
81
|
|
|
|
|
66
|
|
|
|
||||||
Stock-based compensation
|
85
|
|
|
|
|
82
|
|
|
|
|
77
|
|
|
|
||||||
Distressed customers asset impairments (1)
|
6
|
|
|
|
|
93
|
|
|
|
|
61
|
|
|
|
||||||
Restructuring charges (2)
|
91
|
|
|
|
|
49
|
|
|
|
|
—
|
|
|
|
||||||
Contingencies and other (3)
|
51
|
|
|
|
|
18
|
|
|
|
|
—
|
|
|
|
||||||
Other charges (income), net
|
(170
|
)
|
|
|
|
21
|
|
|
|
|
48
|
|
|
|
||||||
Interest and other, net
|
123
|
|
|
|
|
100
|
|
|
|
|
85
|
|
|
|
||||||
Income before income taxes
|
$
|
521
|
|
|
|
|
$
|
371
|
|
|
|
|
$
|
455
|
|
|
|
(1)
|
During fiscal year 2016, we accepted return of previously shipped inventory from a former customer, SunEdison, Inc. ("SunEdison"), of approximately $90 million. On April 21, 2016, SunEdison filed a petition for reorganization under bankruptcy law, and as a result, we recognized a bad debt reserve of $61 million as of March 31, 2016, associated with our outstanding SunEdison receivables.
|
(2)
|
The Company initiated restructuring plans in fiscal years 2018 and 2017 and incurred charges primarily for employee terminations costs, as well as other asset impairments. These charges are split between cost of sales and selling, general and administration expenses on the Company's consolidated statement of operations, and are excluded from the measurement of the Company's operating segment's performance. Refer to note 15 to the consolidated financial statements in Item 8, "Financial Statements and Supplementary Data".
|
(3)
|
During fiscal year 2018, we incurred charges in connection with the matters described in note 13 to the consolidated financial statements in Item 8, "Financial Statements and Supplementary Data," for certain loss contingencies where we believe that losses are probable and estimable, coupled with various other charges predominately related to damages incurred from a typhoon that impacted one of our China facilities. Additionally, certain assets impairments were recorded during both fiscal years 2018 and 2017.
|
|
Fiscal Year Ended March 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Income taxes based on domestic statutory rates
|
17.0
|
%
|
|
17.0
|
%
|
|
17.0
|
%
|
Effect of tax rate differential
|
(46.9
|
)
|
|
(23.0
|
)
|
|
(13.7
|
)
|
Change in liability for uncertain tax positions
|
4.3
|
|
|
0.2
|
|
|
(3.0
|
)
|
Change in valuation allowance
|
57.1
|
|
|
21.2
|
|
|
0.2
|
|
Recognition of prior year taxes recoverable
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
Other
|
(3.5
|
)
|
|
(1.6
|
)
|
|
1.8
|
|
Provision for income taxes
|
17.7
|
%
|
|
13.8
|
%
|
|
2.3
|
%
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In millions)
|
||||||||||
Net cash provided by operating activities
|
$
|
754
|
|
|
$
|
1,150
|
|
|
$
|
1,136
|
|
Purchases of property and equipment
|
(562
|
)
|
|
(525
|
)
|
|
(511
|
)
|
|||
Proceeds from the disposition of property and equipment
|
44
|
|
|
36
|
|
|
14
|
|
|||
Free cash flow
|
$
|
236
|
|
|
$
|
660
|
|
|
$
|
639
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In millions)
|
||||||
4.625% Notes due February 2020
|
$
|
500
|
|
|
$
|
500
|
|
Term Loan, including current portion, due in installments through November 2021
|
688
|
|
|
700
|
|
||
Term Loan, including current portion, due in installments through June 2022
|
484
|
|
|
503
|
|
||
5.000% Notes due February 2023
|
500
|
|
|
500
|
|
||
4.750% Notes due June 2025
|
596
|
|
|
596
|
|
||
Other
|
187
|
|
|
170
|
|
||
Debt issuance costs
|
(14
|
)
|
|
(16
|
)
|
||
|
2,941
|
|
|
2,952
|
|
||
Current portion, net of debt issuance costs
|
(43
|
)
|
|
(62
|
)
|
||
Non-current portion
|
$
|
2,898
|
|
|
$
|
2,891
|
|
|
Total
|
|
Less Than
1 Year |
|
1 - 3 Years
|
|
4 - 5 Years
|
|
Greater Than
5 Years |
||||||||||
|
(In millions)
|
||||||||||||||||||
Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchase obligations
|
$
|
3,478
|
|
|
$
|
3,478
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt and capital lease obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt
|
2,954
|
|
|
44
|
|
|
659
|
|
|
1,652
|
|
|
599
|
|
|||||
Capital leases
|
14
|
|
|
5
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|||||
Interest on long-term debt obligations
|
544
|
|
|
119
|
|
|
219
|
|
|
142
|
|
|
64
|
|
|||||
Operating leases, net of subleases
|
562
|
|
|
119
|
|
|
164
|
|
|
101
|
|
|
178
|
|
|||||
Restructuring costs
|
61
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
7,613
|
|
|
$
|
3,826
|
|
|
$
|
1,051
|
|
|
$
|
1,895
|
|
|
$
|
841
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands, except
share amounts)
|
||||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
1,472,424
|
|
|
$
|
1,830,675
|
|
Accounts receivable, net of allowance for doubtful accounts (Note 2)
|
2,517,695
|
|
|
2,192,704
|
|
||
Inventories
|
3,799,829
|
|
|
3,396,462
|
|
||
Other current assets
|
1,380,466
|
|
|
967,935
|
|
||
Total current assets
|
9,170,414
|
|
|
8,387,776
|
|
||
Property and equipment, net
|
2,239,506
|
|
|
2,317,026
|
|
||
Goodwill
|
1,121,170
|
|
|
984,867
|
|
||
Other intangible assets, net
|
424,433
|
|
|
362,181
|
|
||
Other assets
|
760,332
|
|
|
541,513
|
|
||
Total assets
|
$
|
13,715,855
|
|
|
$
|
12,593,363
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Bank borrowings and current portion of long-term debt
|
$
|
43,011
|
|
|
$
|
61,534
|
|
Accounts payable
|
5,122,303
|
|
|
4,484,908
|
|
||
Accrued payroll
|
383,332
|
|
|
344,245
|
|
||
Other current liabilities
|
1,719,418
|
|
|
1,613,940
|
|
||
Total current liabilities
|
7,268,064
|
|
|
6,504,627
|
|
||
Long-term debt, net of current portion
|
2,897,631
|
|
|
2,890,609
|
|
||
Other liabilities
|
531,587
|
|
|
519,851
|
|
||
Commitments and contingencies (Note 13)
|
|
|
|
|
|
||
Shareholders' equity
|
|
|
|
|
|
||
Flex Ltd. Shareholders' equity
|
|
|
|
|
|
||
Ordinary shares, no par value; 578,317,848 and 581,534,129 issued, and 528,078,493 and 531,294,774 outstanding as of March 31, 2018 and 2017, respectively
|
6,636,747
|
|
|
6,733,539
|
|
||
Treasury stock, at cost; 50,239,355 shares as of March 31, 2018 and 2017, respectively
|
(388,215
|
)
|
|
(388,215
|
)
|
||
Accumulated deficit
|
(3,144,114
|
)
|
|
(3,572,648
|
)
|
||
Accumulated other comprehensive loss
|
(85,845
|
)
|
|
(128,143
|
)
|
||
Total Flex Ltd. shareholders' equity
|
3,018,573
|
|
|
2,644,533
|
|
||
Noncontrolling interests
|
—
|
|
|
33,743
|
|
||
Total shareholders' equity
|
3,018,573
|
|
|
2,678,276
|
|
||
Total liabilities and shareholders' equity
|
$
|
13,715,855
|
|
|
$
|
12,593,363
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands, except per share amounts)
|
||||||||||
Net sales
|
$
|
25,441,131
|
|
|
$
|
23,862,934
|
|
|
$
|
24,418,885
|
|
Cost of sales
|
23,778,404
|
|
|
22,303,231
|
|
|
22,810,824
|
|
|||
Restructuring charges
|
66,845
|
|
|
38,758
|
|
|
—
|
|
|||
Gross profit
|
1,595,882
|
|
|
1,520,945
|
|
|
1,608,061
|
|
|||
Selling, general and administrative expenses
|
1,019,399
|
|
|
937,339
|
|
|
954,890
|
|
|||
Intangible amortization
|
78,640
|
|
|
81,396
|
|
|
65,965
|
|
|||
Restructuring charges
|
23,846
|
|
|
10,637
|
|
|
—
|
|
|||
Other charges (income), net
|
(169,719
|
)
|
|
21,193
|
|
|
47,738
|
|
|||
Interest and other, net
|
122,823
|
|
|
99,532
|
|
|
84,793
|
|
|||
Income before income taxes
|
520,893
|
|
|
370,848
|
|
|
454,675
|
|
|||
Provision for income taxes
|
92,359
|
|
|
51,284
|
|
|
10,594
|
|
|||
Net income
|
$
|
428,534
|
|
|
$
|
319,564
|
|
|
$
|
444,081
|
|
|
|
|
|
|
|
|
|
|
|||
Earnings per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
0.81
|
|
|
$
|
0.59
|
|
|
$
|
0.80
|
|
Diluted
|
$
|
0.80
|
|
|
$
|
0.59
|
|
|
$
|
0.79
|
|
Weighted-average shares used in computing per share amounts:
|
|
|
|
|
|
||||||
Basic
|
529,782
|
|
|
540,503
|
|
|
557,667
|
|
|||
Diluted
|
536,598
|
|
|
546,220
|
|
|
564,869
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
428,534
|
|
|
$
|
319,564
|
|
|
$
|
444,081
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustments, net of zero tax
|
45,618
|
|
|
(1,324
|
)
|
|
17,846
|
|
|||
Unrealized gain (loss) on derivative instruments and other, net of zero tax
|
(3,320
|
)
|
|
9,096
|
|
|
26,744
|
|
|||
Comprehensive income
|
$
|
470,832
|
|
|
$
|
327,336
|
|
|
$
|
488,671
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive
Loss
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Ordinary Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|||||||||||||||||||
|
Shares
Outstanding |
|
Amount
|
|
Accumulated
deficit |
|
Unrealized gain
(loss) on derivative instruments and other |
|
Foreign
currency translation adjustments |
|
Total
accumulated other comprehensive loss |
|
Total Flex Ltd.
Shareholders' Equity |
|
Noncontrolling
Interests |
|
Shareholders'
Equity |
|||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||||
BALANCE AT MARCH 31, 2015
|
563,323
|
|
|
$
|
6,877,612
|
|
|
$
|
(4,336,293
|
)
|
|
$
|
(68,266
|
)
|
|
$
|
(112,239
|
)
|
|
$
|
(180,505
|
)
|
|
$
|
2,360,814
|
|
|
$
|
35,436
|
|
|
$
|
2,396,250
|
|
Repurchase of Flex Ltd. ordinary shares at cost
|
(37,314
|
)
|
|
(412,819
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(412,819
|
)
|
|
—
|
|
|
(412,819
|
)
|
||||||||
Exercise of stock options
|
10,244
|
|
|
61,278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,278
|
|
|
486
|
|
|
61,764
|
|
||||||||
Issuance of Flex Ltd. vested shares under share bonus awards
|
8,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Premium on acquired equity plan
|
—
|
|
|
799
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
799
|
|
|
—
|
|
|
799
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
444,081
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
444,081
|
|
|
(6,715
|
)
|
|
437,366
|
|
||||||||
Stock-based compensation, net of tax
|
—
|
|
|
72,129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
72,129
|
|
|
5,451
|
|
|
77,580
|
|
||||||||
Total other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
26,744
|
|
|
17,846
|
|
|
44,590
|
|
|
44,590
|
|
|
—
|
|
|
44,590
|
|
||||||||
BALANCE AT MARCH 31, 2016
|
544,823
|
|
|
6,598,999
|
|
|
(3,892,212
|
)
|
|
(41,522
|
)
|
|
(94,393
|
)
|
|
(135,915
|
)
|
|
2,570,872
|
|
|
34,658
|
|
|
2,605,530
|
|
||||||||
Repurchase of Flex Ltd. ordinary shares at cost
|
(25,125
|
)
|
|
(345,782
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(345,782
|
)
|
|
—
|
|
|
(345,782
|
)
|
||||||||
Exercise of stock options
|
2,283
|
|
|
12,438
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,438
|
|
|
610
|
|
|
13,048
|
|
||||||||
Issuance of Flex Ltd. vested shares under share bonus awards
|
9,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of subsidiary shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,306
|
|
|
9,306
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
319,564
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319,564
|
|
|
(8,492
|
)
|
|
311,072
|
|
||||||||
Stock-based compensation, net of tax
|
—
|
|
|
79,669
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79,669
|
|
|
(2,339
|
)
|
|
77,330
|
|
||||||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
9,096
|
|
|
(1,324
|
)
|
|
7,772
|
|
|
7,772
|
|
|
—
|
|
|
7,772
|
|
||||||||
BALANCE AT MARCH 31, 2017
|
531,294
|
|
|
6,345,324
|
|
|
(3,572,648
|
)
|
|
(32,426
|
)
|
|
(95,717
|
)
|
|
(128,143
|
)
|
|
2,644,533
|
|
|
33,743
|
|
|
2,678,276
|
|
||||||||
Repurchase of Flex Ltd. ordinary shares at cost
|
(10,829
|
)
|
|
(180,050
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180,050
|
)
|
|
—
|
|
|
(180,050
|
)
|
||||||||
Exercise of stock options
|
667
|
|
|
2,774
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,774
|
|
|
256
|
|
|
3,030
|
|
||||||||
Issuance of Flex Ltd. vested shares under share bonus awards
|
6,946
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of subsidiary shares, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,363
|
|
|
63,363
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
428,534
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
428,534
|
|
|
(7,573
|
)
|
|
420,961
|
|
||||||||
Stock-based compensation, net of tax
|
—
|
|
|
80,484
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,484
|
|
|
849
|
|
|
81,333
|
|
||||||||
Deconsolidation of subsidiary entity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90,638
|
)
|
|
(90,638
|
)
|
||||||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,320
|
)
|
|
45,618
|
|
|
42,298
|
|
|
42,298
|
|
|
—
|
|
|
42,298
|
|
||||||||
BALANCE AT MARCH 31, 2018
|
528,078
|
|
|
$
|
6,248,532
|
|
|
$
|
(3,144,114
|
)
|
|
$
|
(35,746
|
)
|
|
$
|
(50,099
|
)
|
|
$
|
(85,845
|
)
|
|
$
|
3,018,573
|
|
|
$
|
—
|
|
|
$
|
3,018,573
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
428,534
|
|
|
$
|
319,564
|
|
|
$
|
444,081
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation, amortization and other impairment charges
|
555,364
|
|
|
609,660
|
|
|
515,367
|
|
|||
Provision for doubtful accounts (Note 2)
|
8,225
|
|
|
(184
|
)
|
|
72,295
|
|
|||
Non-cash other loss (income)
|
(58,223
|
)
|
|
6,858
|
|
|
24,521
|
|
|||
Stock-based compensation
|
81,346
|
|
|
77,330
|
|
|
77,580
|
|
|||
Gain from deconsolidation of subsidiary entity (Note 6)
|
(151,574
|
)
|
|
—
|
|
|
—
|
|
|||
Income taxes
|
43,187
|
|
|
(20,041
|
)
|
|
(64,346
|
)
|
|||
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|||
Accounts receivable
|
(296,910
|
)
|
|
(164,239
|
)
|
|
317,946
|
|
|||
Inventories
|
(354,319
|
)
|
|
85,047
|
|
|
84,790
|
|
|||
Other current and noncurrent assets
|
(138,184
|
)
|
|
84,949
|
|
|
(2,704
|
)
|
|||
Accounts payable
|
623,148
|
|
|
268,686
|
|
|
(365,051
|
)
|
|||
Other current and noncurrent liabilities
|
13,004
|
|
|
(117,721
|
)
|
|
31,966
|
|
|||
Net cash provided by operating activities
|
753,598
|
|
|
1,149,909
|
|
|
1,136,445
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Purchases of property and equipment
|
(561,997
|
)
|
|
(525,111
|
)
|
|
(510,634
|
)
|
|||
Proceeds from the disposition of property and equipment
|
44,780
|
|
|
35,606
|
|
|
13,676
|
|
|||
Acquisition of businesses, net of cash acquired
|
(268,377
|
)
|
|
(189,084
|
)
|
|
(916,527
|
)
|
|||
Divestitures of businesses, net of cash held in divested businesses
|
(2,949
|
)
|
|
36,731
|
|
|
5,740
|
|
|||
Other investing activities, net
|
(120,442
|
)
|
|
(60,329
|
)
|
|
11,369
|
|
|||
Net cash used in investing activities
|
(908,985
|
)
|
|
(702,187
|
)
|
|
(1,396,376
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from bank borrowings and long-term debt
|
1,366,000
|
|
|
312,741
|
|
|
884,702
|
|
|||
Repayments of bank borrowings and long-term debt
|
(1,420,977
|
)
|
|
(141,730
|
)
|
|
(190,221
|
)
|
|||
Payments for repurchases of ordinary shares
|
(180,050
|
)
|
|
(349,532
|
)
|
|
(420,317
|
)
|
|||
Proceeds from exercise of stock options
|
2,774
|
|
|
12,438
|
|
|
61,278
|
|
|||
Other financing activities, net
|
44,468
|
|
|
(76,024
|
)
|
|
(85,800
|
)
|
|||
Net cash provided by (used in) financing activities
|
(187,785
|
)
|
|
(242,107
|
)
|
|
249,642
|
|
|||
Effect of exchange rates on cash
|
(15,079
|
)
|
|
17,490
|
|
|
(10,549
|
)
|
|||
Net change in cash and cash equivalents
|
(358,251
|
)
|
|
223,105
|
|
|
(20,838
|
)
|
|||
Cash and cash equivalents, beginning of year
|
1,830,675
|
|
|
1,607,570
|
|
|
1,628,408
|
|
|||
Cash and cash equivalents, end of year
|
$
|
1,472,424
|
|
|
$
|
1,830,675
|
|
|
$
|
1,607,570
|
|
•
|
Communications & Enterprise Compute ("CEC"), which includes telecom business of radio access base stations, remote radio heads, and small cells for wireless infrastructure; networking business which includes 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;
|
•
|
Consumer Technologies Group ("CTG"), which includes consumer-related businesses in connected living, wearables, gaming, augmented and virtual reality, fashion and apparel, and mobile devices; and including various supply chain solutions for notebook personal computers, tablets, and printers;
|
•
|
Industrial and Emerging Industries ("IEI"), which is comprised of energy including advanced metering infrastructure, energy storage, smart lighting, electric vehicle infrastructure, smart solar energy, semiconductor and capital equipment, office solutions, industrial, home and lifestyle, industrial automation, and kiosks; and
|
•
|
High Reliability Solutions ("HRS"), which is comprised of health solutions business, including consumer health, digital health, disposables, precision plastics, drug delivery, diagnostics, life sciences and imaging equipment; automotive business, including vehicle electrification, connectivity, autonomous vehicles, and clean technologies.
|
|
Balance at
Beginning of Year |
|
Charged to
Costs and Expenses |
|
Deductions/
Write-Offs |
|
Balance at
End of Year |
||||||||
|
(In thousands)
|
||||||||||||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
||||||||
Year ended March 31, 2016
|
$
|
4,534
|
|
|
$
|
72,295
|
|
|
$
|
(12,221
|
)
|
|
$
|
64,608
|
|
Year ended March 31, 2017
|
$
|
64,608
|
|
|
$
|
(184
|
)
|
|
$
|
(7,122
|
)
|
|
$
|
57,302
|
|
Year ended March 31, 2018
|
$
|
57,302
|
|
|
$
|
8,225
|
|
|
$
|
(5,476
|
)
|
|
$
|
60,051
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Cash and bank balances
|
$
|
1,019,802
|
|
|
$
|
763,834
|
|
Money market funds and time deposits
|
452,622
|
|
|
1,066,841
|
|
||
|
$
|
1,472,424
|
|
|
$
|
1,830,675
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Raw materials
|
$
|
2,760,410
|
|
|
$
|
2,537,623
|
|
Work-in-progress
|
450,569
|
|
|
279,493
|
|
||
Finished goods
|
588,850
|
|
|
579,346
|
|
||
|
$
|
3,799,829
|
|
|
$
|
3,396,462
|
|
|
Depreciable
Life (In Years) |
|
As of March 31,
|
||||||
|
|
2018
|
|
2017
|
|||||
|
|
|
(In thousands)
|
||||||
Machinery and equipment
|
3 - 10
|
|
$
|
3,004,707
|
|
|
$
|
3,233,392
|
|
Buildings
|
30
|
|
1,154,881
|
|
|
1,237,739
|
|
||
Leasehold improvements
|
up to 30
|
|
414,917
|
|
|
395,663
|
|
||
Furniture, fixtures, computer equipment and software
|
3 - 7
|
|
482,248
|
|
|
502,223
|
|
||
Land
|
—
|
|
152,992
|
|
|
145,663
|
|
||
Construction-in-progress
|
—
|
|
287,724
|
|
|
212,326
|
|
||
|
|
|
5,497,469
|
|
|
5,727,006
|
|
||
Accumulated depreciation and amortization
|
|
|
(3,257,963
|
)
|
|
(3,409,980
|
)
|
||
Property and equipment, net
|
|
|
$
|
2,239,506
|
|
|
$
|
2,317,026
|
|
|
HRS
|
|
CTG
|
|
IEI
|
|
CEC
|
|
Total
|
||||||||||
Balance, as of March 31, 2016
|
439,336
|
|
|
68,234
|
|
|
322,803
|
|
|
111,693
|
|
|
942,066
|
|
|||||
Additions (1)
|
—
|
|
|
42,989
|
|
|
17,544
|
|
|
3,309
|
|
|
63,842
|
|
|||||
Divestitures (2)
|
(1,787
|
)
|
|
—
|
|
|
(2,640
|
)
|
|
—
|
|
|
(4,427
|
)
|
|||||
Purchase accounting adjustments (3)
|
794
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
794
|
|
|||||
Foreign currency translation adjustments (4)
|
(17,408
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,408
|
)
|
|||||
Balance, as of March 31, 2017
|
$
|
420,935
|
|
|
$
|
111,223
|
|
|
$
|
337,707
|
|
|
$
|
115,002
|
|
|
$
|
984,867
|
|
Additions (1)
|
75,280
|
|
|
—
|
|
|
—
|
|
|
9,744
|
|
|
85,024
|
|
|||||
Divestitures (2)
|
—
|
|
|
(3,475
|
)
|
|
—
|
|
|
—
|
|
|
(3,475
|
)
|
|||||
Purchase accounting adjustments (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
|||||
Foreign currency translation adjustments (4)
|
54,768
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,768
|
|
|||||
Balance, as of March 31, 2018
|
$
|
550,983
|
|
|
$
|
107,748
|
|
|
$
|
337,707
|
|
|
$
|
124,732
|
|
|
$
|
1,121,170
|
|
(1)
|
The goodwill generated from the Company's business combinations completed during the fiscal years
2018
and
2017
are primarily related to value placed on the employee workforce, service offerings and capabilities and expected synergies. The goodwill is not deductible for income tax purposes. Refer to the discussion of the Company's business acquisitions in note 18.
|
(2)
|
During the fiscal year ended March 31, 2018, the Company disposed of Wink Labs Inc. ("Wink"), a business within the CTG segment, and recorded an aggregate reduction of goodwill of
$3.5 million
, which is included in the gain on sale recorded in other charges, net on the consolidated statement of operations. During the fiscal year ended March 31, 2017, the Company disposed of
two
non-strategic businesses within the IEI and HRS segments, and recorded an aggregate reduction of goodwill of
$4.4 million
, which is included in the loss on sale recorded in other charges, net on the consolidated statement of operations.
|
(3)
|
Includes adjustments based on management's estimates resulting from its review and finalization of the valuation of assets and liabilities acquired 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.
|
(4)
|
During the fiscal years ended March 31, 2018 and 2017, the Company recorded
$54.8 million
and
$17.4 million
, respectively, of foreign currency translation adjustments primarily related to the goodwill associated with the acquisition of AGM Automotive ("AGM") in fiscal year 2018 and Mirror Controls International ("MCi") in fiscal year 2016, as the U.S. Dollar fluctuated against foreign currencies.
|
|
As of March 31, 2018
|
|
As of March 31, 2017
|
||||||||||||||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Amount |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Amount |
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer-related intangibles
|
$
|
306,943
|
|
|
$
|
(79,051
|
)
|
|
$
|
227,892
|
|
|
$
|
260,704
|
|
|
$
|
(105,912
|
)
|
|
$
|
154,792
|
|
Licenses and other intangibles
|
304,007
|
|
|
(107,466
|
)
|
|
196,541
|
|
|
283,897
|
|
|
(76,508
|
)
|
|
207,389
|
|
||||||
Total
|
$
|
610,950
|
|
|
$
|
(186,517
|
)
|
|
$
|
424,433
|
|
|
$
|
544,601
|
|
|
$
|
(182,420
|
)
|
|
$
|
362,181
|
|
Fiscal Year Ending March 31,
|
Amount
|
||
|
(In thousands)
|
||
2019
|
$
|
75,319
|
|
2020
|
68,981
|
|
|
2021
|
64,440
|
|
|
2022
|
55,301
|
|
|
2023
|
46,762
|
|
|
Thereafter
|
113,630
|
|
|
Total amortization expense
|
$
|
424,433
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Cost of sales
|
$
|
19,102
|
|
|
$
|
10,023
|
|
|
$
|
8,986
|
|
Selling, general and administrative expenses
|
66,142
|
|
|
72,243
|
|
|
68,594
|
|
|||
Total share-based compensation expense
|
$
|
85,244
|
|
|
$
|
82,266
|
|
|
$
|
77,580
|
|
|
Fiscal Year Ended March 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Expected volatility
|
25.1
|
%
|
|
25.8
|
%
|
|
26.0
|
%
|
Average peer volatility
|
28.7
|
%
|
|
25.1
|
%
|
|
23.0
|
%
|
Average peer correlation
|
0.6
|
|
|
0.6
|
|
|
0.6
|
|
Expected dividends
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
Risk-free interest rate
|
1.5
|
%
|
|
0.9
|
%
|
|
1.2
|
%
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
2018
|
2017
|
2016
|
|||||||||||||||||
|
Options
|
|
Price
|
|
Options
|
|
Price
|
|
Options
|
|
Price
|
|||||||||
Outstanding, beginning of fiscal year
|
142,327
|
|
|
$
|
8.97
|
|
|
2,369,636
|
|
|
$
|
8.31
|
|
|
15,992,894
|
|
|
$
|
7.81
|
|
Granted
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Exercised
|
(125,949
|
)
|
|
8.63
|
|
|
(1,573,356
|
)
|
|
6.89
|
|
|
(10,006,774
|
)
|
|
6.10
|
|
|||
Forfeited
|
(9,500
|
)
|
|
11.55
|
|
|
(653,953
|
)
|
|
12.39
|
|
|
(3,616,484
|
)
|
|
12.23
|
|
|||
Outstanding, end of fiscal year
|
6,878
|
|
|
$
|
9.78
|
|
|
142,327
|
|
|
$
|
8.97
|
|
|
2,369,636
|
|
|
$
|
8.31
|
|
Options exercisable, end of fiscal year
|
5,751
|
|
|
$
|
9.52
|
|
|
138,950
|
|
|
$
|
8.93
|
|
|
2,359,527
|
|
|
$
|
8.30
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
2018
|
2017
|
2016
|
|||||||||||||||||
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|||||||||
Unvested share bonus awards outstanding, beginning of fiscal year
|
15,698,582
|
|
|
$
|
12.44
|
|
|
17,000,076
|
|
|
$
|
10.77
|
|
|
18,993,252
|
|
|
$
|
9.01
|
|
Granted (1)
|
6,155,761
|
|
|
16.99
|
|
|
8,261,666
|
|
|
13.46
|
|
|
7,619,722
|
|
|
12.23
|
|
|||
Vested (1)
|
(6,473,562
|
)
|
|
12.17
|
|
|
(8,606,246
|
)
|
|
9.44
|
|
|
(8,529,378
|
)
|
|
7.93
|
|
|||
Forfeited
|
(1,488,739
|
)
|
|
13.38
|
|
|
(956,914
|
)
|
|
11.20
|
|
|
(1,083,520
|
)
|
|
9.67
|
|
|||
Unvested share bonus awards outstanding, end of fiscal year
|
13,892,042
|
|
|
$
|
14.52
|
|
|
15,698,582
|
|
|
$
|
12.44
|
|
|
17,000,076
|
|
|
$
|
10.77
|
|
|
|
Targeted
number of awards as of March 31, 2018 (in shares) |
|
|
|
Range of shares
that may be issued (1) |
|
|
|||||||
|
|
Average
grant date fair value (per share) |
|
|
|||||||||||
|
|
|
Assessment dates
|
||||||||||||
Year of grant
|
|
|
Minimum
|
|
Maximum
|
|
|||||||||
Fiscal 2018
|
|
623,620
|
|
|
$
|
20.25
|
|
|
—
|
|
|
1,247,240
|
|
|
June 2020
|
Fiscal 2017
|
|
677,523
|
|
|
$
|
17.57
|
|
|
—
|
|
|
1,355,046
|
|
|
June 2019
|
Fiscal 2016
|
|
648,929
|
|
|
$
|
14.96
|
|
|
—
|
|
|
1,297,858
|
|
|
June 2018
|
Totals
|
|
1,950,072
|
|
|
|
|
|
—
|
|
|
3,900,144
|
|
|
|
|
Fiscal Year Ended
March 31, 2018 |
Fiscal Year Ended
March 31, 2016 |
Expected term
|
6.5 years
|
2.9 years
|
Expected volatility
|
28.8%
|
28.8%
|
Expected dividends
|
0.0%
|
0.0%
|
Risk-free interest rate
|
2.1%
|
0.9%
|
Weighted-average fair value
|
$16.29
|
$7.76
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Options
|
|
Price
|
|
Options
|
|
Price
|
|
Options
|
|
Price
|
|||||||||
Outstanding, beginning of fiscal year
|
1,636,016
|
|
|
$
|
3.61
|
|
|
2,741,854
|
|
|
$
|
3.44
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
288,386
|
|
|
0.54
|
|
|
—
|
|
|
—
|
|
|
3,205,806
|
|
|
3.28
|
|
|||
Exercised
|
(510,322
|
)
|
|
3.27
|
|
|
(709,845
|
)
|
|
2.24
|
|
|
(237,380
|
)
|
|
0.99
|
|
|||
Forfeited
|
(352,820
|
)
|
|
5.69
|
|
|
(395,993
|
)
|
|
4.64
|
|
|
(226,572
|
)
|
|
3.75
|
|
|||
Outstanding, end of fiscal year
|
1,061,260
|
|
|
$
|
3.55
|
|
|
1,636,016
|
|
|
$
|
3.61
|
|
|
2,741,854
|
|
|
$
|
3.44
|
|
Options exercisable, end of fiscal year
|
352,829
|
|
|
$
|
5.11
|
|
|
369,015
|
|
|
$
|
5.00
|
|
|
223,869
|
|
|
$
|
4.95
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|||||||||
Unvested share bonus awards outstanding, beginning of fiscal year
|
1,543,437
|
|
|
$
|
10.23
|
|
|
2,309,096
|
|
|
$
|
10.27
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
524,978
|
|
|
16.73
|
|
|
—
|
|
|
—
|
|
|
2,393,195
|
|
|
10.27
|
|
|||
Vested
|
(471,831
|
)
|
|
7.63
|
|
|
(705,738
|
)
|
|
10.19
|
|
|
(31,925
|
)
|
|
10.27
|
|
|||
Forfeited
|
(868,934
|
)
|
|
10.18
|
|
|
(59,921
|
)
|
|
10.27
|
|
|
(52,174
|
)
|
|
10.27
|
|
|||
Unvested share bonus awards outstanding, end of fiscal year
|
727,650
|
|
|
$
|
11.85
|
|
|
1,543,437
|
|
|
$
|
10.23
|
|
|
2,309,096
|
|
|
$
|
10.27
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands, except
per share amounts)
|
||||||||||
Basic earnings per share:
|
|
|
|
|
|
||||||
Net income
|
$
|
428,534
|
|
|
$
|
319,564
|
|
|
$
|
444,081
|
|
Shares used in computation:
|
|
|
|
|
|
||||||
Weighted-average ordinary shares outstanding
|
529,782
|
|
|
540,503
|
|
|
557,667
|
|
|||
Basic earnings per share
|
$
|
0.81
|
|
|
$
|
0.59
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share:
|
|
|
|
|
|
||||||
Net income
|
$
|
428,534
|
|
|
$
|
319,564
|
|
|
$
|
444,081
|
|
Shares used in computation:
|
|
|
|
|
|
||||||
Weighted-average ordinary shares outstanding
|
529,782
|
|
|
540,503
|
|
|
557,667
|
|
|||
Weighted-average ordinary share equivalents from stock options and awards (1)
|
6,816
|
|
|
5,717
|
|
|
7,202
|
|
|||
Weighted-average ordinary shares and ordinary share equivalents outstanding
|
536,598
|
|
|
546,220
|
|
|
564,869
|
|
|||
Diluted earnings per share
|
$
|
0.80
|
|
|
$
|
0.59
|
|
|
$
|
0.79
|
|
(1)
|
An immaterial amount of options to purchase ordinary shares during fiscal year 2018 were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted average ordinary shares equivalents. Options to purchase ordinary shares of
0.5 million
and
2.0 million
during fiscal years
2017
and
2016
, respectively, were excluded from the computation of diluted earnings per share.
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Net cash paid for:
|
|
|
|
|
|
||||||
Interest
|
$
|
152,750
|
|
|
$
|
127,346
|
|
|
$
|
114,578
|
|
Income taxes
|
91,846
|
|
|
86,651
|
|
|
105,453
|
|
|||
Non-cash investing and financing activity:
|
|
|
|
|
|
||||||
Unpaid purchases of property and equipment
|
$
|
128,044
|
|
|
$
|
84,375
|
|
|
$
|
93,310
|
|
Customer-related third party banking institution equipment financing net settlement
|
—
|
|
|
90,576
|
|
|
—
|
|
|||
Non-cash investment in Elementum (Note 6)
|
132,679
|
|
|
—
|
|
|
—
|
|
|||
Non-cash proceeds from sales of Wink (Note 2)
|
59,000
|
|
|
—
|
|
|
—
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
4.625% Notes due February 2020
|
$
|
500,000
|
|
|
$
|
500,000
|
|
Term Loan, including current portion, due in installments through November 2021
|
687,813
|
|
|
700,000
|
|
||
Term Loan, including current portion, due in installments through June 2022
|
483,656
|
|
|
502,500
|
|
||
5.000% Notes due February 2023
|
500,000
|
|
|
500,000
|
|
||
4.750% Notes due June 2025
|
596,387
|
|
|
595,979
|
|
||
Other
|
186,601
|
|
|
169,671
|
|
||
Debt issuance costs
|
(13,815
|
)
|
|
(16,007
|
)
|
||
|
2,940,642
|
|
|
2,952,143
|
|
||
Current portion, net of debt issuance costs
|
(43,011
|
)
|
|
(61,534
|
)
|
||
Non-current portion
|
$
|
2,897,631
|
|
|
$
|
2,890,609
|
|
Fiscal Year Ending March 31,
|
Amount
|
||
|
(In thousands)
|
||
2019
|
$
|
44,015
|
|
2020
|
542,915
|
|
|
2021
|
116,423
|
|
|
2022
|
812,500
|
|
|
2023
|
839,188
|
|
|
Thereafter
|
599,416
|
|
|
Total
|
$
|
2,954,457
|
|
|
Foreign Currency
Amount |
|
Notional Contract
Value in USD |
||||||||||
Currency
|
Buy
|
|
Sell
|
|
Buy
|
|
Sell
|
||||||
|
(In thousands)
|
||||||||||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
||||||
CNY
|
2,472,000
|
|
|
—
|
|
|
$
|
392,493
|
|
|
$
|
—
|
|
EUR
|
74,696
|
|
|
102,508
|
|
|
92,292
|
|
|
123,347
|
|
||
HUF
|
20,482,360
|
|
|
—
|
|
|
80,961
|
|
|
—
|
|
||
ILS
|
104,570
|
|
|
17,325
|
|
|
29,853
|
|
|
4,946
|
|
||
MXN
|
3,820,600
|
|
|
—
|
|
|
208,688
|
|
|
—
|
|
||
MYR
|
235,400
|
|
|
78,000
|
|
|
60,277
|
|
|
19,973
|
|
||
RON
|
125,190
|
|
|
—
|
|
|
33,224
|
|
|
—
|
|
||
SGD
|
35,250
|
|
|
—
|
|
|
26,908
|
|
|
—
|
|
||
Other
|
N/A
|
|
|
N/A
|
|
|
49,734
|
|
|
3,225
|
|
||
|
|
|
|
|
974,430
|
|
|
151,491
|
|
||||
Other Foreign Currency Contracts
|
|
|
|
|
|
|
|
||||||
AUD
|
29,887
|
|
|
39,839
|
|
|
22,925
|
|
|
30,834
|
|
||
BRL
|
—
|
|
|
706,000
|
|
|
—
|
|
|
211,580
|
|
||
CAD
|
306,196
|
|
|
336,629
|
|
|
237,601
|
|
|
261,216
|
|
||
CHF
|
13,122
|
|
|
26,611
|
|
|
13,763
|
|
|
27,912
|
|
||
CNY
|
2,238,583
|
|
|
—
|
|
|
347,121
|
|
|
—
|
|
||
EUR
|
1,190,730
|
|
|
1,442,218
|
|
|
1,469,945
|
|
|
1,780,517
|
|
||
GBP
|
38,445
|
|
|
65,222
|
|
|
54,179
|
|
|
91,794
|
|
||
HUF
|
106,548,846
|
|
|
116,231,762
|
|
|
421,158
|
|
|
459,432
|
|
||
INR
|
4,052,331
|
|
|
747,986
|
|
|
61,992
|
|
|
11,476
|
|
||
MXN
|
2,342,814
|
|
|
2,109,080
|
|
|
127,969
|
|
|
115,202
|
|
||
MYR
|
844,010
|
|
|
627,500
|
|
|
216,119
|
|
|
160,679
|
|
||
PLN
|
99,330
|
|
|
54,465
|
|
|
29,180
|
|
|
16,000
|
|
||
SEK
|
144,590
|
|
|
267,169
|
|
|
17,492
|
|
|
32,172
|
|
||
SGD
|
73,918
|
|
|
40,994
|
|
|
56,426
|
|
|
31,293
|
|
||
Other
|
N/A
|
|
|
N/A
|
|
|
89,386
|
|
|
45,739
|
|
||
|
|
|
|
|
3,165,256
|
|
|
3,275,846
|
|
||||
Total Notional Contract Value in USD
|
|
|
|
|
$
|
4,139,686
|
|
|
$
|
3,427,337
|
|
|
Fair Values of Derivative Instruments
|
||||||||||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||
|
Balance Sheet
Location |
|
March 31,
2018 |
|
March 31,
2017 |
|
Balance Sheet
Location |
|
March 31,
2018 |
|
March 31,
2017 |
||||||||
|
(In thousands)
|
||||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
Other current assets
|
|
$
|
19,422
|
|
|
$
|
11,936
|
|
|
Other current liabilities
|
|
$
|
7,065
|
|
|
$
|
1,814
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
Other current assets
|
|
$
|
23,912
|
|
|
$
|
10,086
|
|
|
Other current liabilities
|
|
$
|
18,246
|
|
|
$
|
9,928
|
|
|
Fiscal Year Ended March 31, 2018
|
||||||||||
|
Unrealized loss on
derivative instruments and other |
|
Foreign currency
translation adjustments |
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance
|
$
|
(32,426
|
)
|
|
$
|
(95,717
|
)
|
|
$
|
(128,143
|
)
|
Other comprehensive gain before reclassifications
|
15,667
|
|
|
46,022
|
|
|
61,689
|
|
|||
Net gains reclassified from accumulated other comprehensive loss
|
(18,987
|
)
|
|
(404
|
)
|
|
(19,391
|
)
|
|||
Net current-period other comprehensive gain (loss)
|
(3,320
|
)
|
|
45,618
|
|
|
42,298
|
|
|||
Ending balance
|
$
|
(35,746
|
)
|
|
$
|
(50,099
|
)
|
|
$
|
(85,845
|
)
|
|
Fiscal Year Ended March 31, 2017
|
||||||||||
|
Unrealized loss on
derivative instruments and other |
|
Foreign currency
translation adjustments |
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance
|
$
|
(41,522
|
)
|
|
$
|
(94,393
|
)
|
|
$
|
(135,915
|
)
|
Other comprehensive gain (loss) before reclassifications
|
6,925
|
|
|
(1,198
|
)
|
|
5,727
|
|
|||
Net (gains) losses reclassified from accumulated other comprehensive loss
|
2,171
|
|
|
(126
|
)
|
|
2,045
|
|
|||
Net current-period other comprehensive gain (loss)
|
9,096
|
|
|
(1,324
|
)
|
|
7,772
|
|
|||
Ending balance
|
$
|
(32,426
|
)
|
|
$
|
(95,717
|
)
|
|
$
|
(128,143
|
)
|
|
Fiscal Year Ended March 31, 2016
|
||||||||||
|
Unrealized loss on
derivative instruments and other |
|
Foreign currency
translation adjustments |
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Beginning balance
|
$
|
(68,266
|
)
|
|
$
|
(112,239
|
)
|
|
$
|
(180,505
|
)
|
Other comprehensive loss before reclassifications
|
(2,199
|
)
|
|
(3,145
|
)
|
|
(5,344
|
)
|
|||
Net (gains) losses reclassified from accumulated other comprehensive loss
|
28,943
|
|
|
20,991
|
|
|
49,934
|
|
|||
Net current-period other comprehensive gain
|
26,744
|
|
|
17,846
|
|
|
44,590
|
|
|||
Ending balance
|
$
|
(41,522
|
)
|
|
$
|
(94,393
|
)
|
|
$
|
(135,915
|
)
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Beginning balance
|
$
|
22,426
|
|
|
$
|
73,423
|
|
Additions to accrual
|
—
|
|
|
—
|
|
||
Payments and settlements
|
(17,109
|
)
|
|
(44,912
|
)
|
||
Fair value adjustments
|
(5,317
|
)
|
|
(6,085
|
)
|
||
Ending balance
|
$
|
—
|
|
|
$
|
22,426
|
|
|
Fair Value Measurements as of March 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds and time deposits (Note 2)
|
$
|
—
|
|
|
$
|
452,622
|
|
|
$
|
—
|
|
|
$
|
452,622
|
|
Foreign exchange forward contracts (Note 9)
|
—
|
|
|
43,334
|
|
|
—
|
|
|
43,334
|
|
||||
Deferred compensation plan assets:
|
|
|
|
|
|
|
|
||||||||
Mutual funds, money market accounts and equity securities
|
7,196
|
|
|
67,532
|
|
|
—
|
|
|
74,728
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts (Note 9)
|
$
|
—
|
|
|
$
|
(25,311
|
)
|
|
$
|
—
|
|
|
$
|
(25,311
|
)
|
|
Fair Value Measurements as of March 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market funds and time deposits (Note 2)
|
$
|
—
|
|
|
$
|
1,066,841
|
|
|
$
|
—
|
|
|
$
|
1,066,841
|
|
Foreign exchange forward contracts (Note 9)
|
—
|
|
|
22,022
|
|
|
—
|
|
|
22,022
|
|
||||
Deferred compensation plan assets:
|
|
|
|
|
|
|
|
||||||||
Mutual funds, money market accounts and equity securities
|
7,062
|
|
|
52,680
|
|
|
—
|
|
|
59,742
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts (Note 9)
|
$
|
—
|
|
|
$
|
(11,742
|
)
|
|
$
|
—
|
|
|
$
|
(11,742
|
)
|
Contingent consideration in connection with acquisitions
|
—
|
|
|
—
|
|
|
(22,426
|
)
|
|
(22,426
|
)
|
|
As of March 31, 2018
|
|
As of March 31, 2017
|
|
|
||||||||||||
|
Carrying
Amount |
|
Fair
Value |
|
Carrying
Amount |
|
Fair
Value |
|
Fair Value
Hierarchy |
||||||||
|
(In thousands)
|
|
(In thousands)
|
|
|
||||||||||||
4.625% Notes due February 2020
|
$
|
500,000
|
|
|
$
|
513,596
|
|
|
$
|
500,000
|
|
|
$
|
526,255
|
|
|
Level 1
|
Term Loan, including current portion, due in installments through November 2021
|
687,813
|
|
|
689,966
|
|
|
700,000
|
|
|
699,566
|
|
|
Level 1
|
||||
Term Loan, including current portion, due in installments through June 2022 (1)
|
483,656
|
|
|
485,470
|
|
|
502,500
|
|
|
503,756
|
|
|
Level 1
|
||||
5.000% Notes due February 2023
|
500,000
|
|
|
525,292
|
|
|
500,000
|
|
|
534,820
|
|
|
Level 1
|
||||
4.750% Notes due June 2025
|
596,387
|
|
|
627,407
|
|
|
595,979
|
|
|
633,114
|
|
|
Level 1
|
||||
Euro Term Loan due September 2020
|
59,443
|
|
|
59,443
|
|
|
53,075
|
|
|
53,075
|
|
|
Level 1
|
||||
Euro Term Loan due January 2022
|
123,518
|
|
|
123,518
|
|
|
107,357
|
|
|
107,357
|
|
|
Level 1
|
||||
Total
|
$
|
2,950,817
|
|
|
$
|
3,024,692
|
|
|
$
|
2,958,911
|
|
|
$
|
3,057,943
|
|
|
|
Fiscal Year Ending March 31,
|
Operating Lease
|
||
|
(In thousands)
|
||
2019
|
$
|
119,008
|
|
2020
|
97,476
|
|
|
2021
|
66,713
|
|
|
2022
|
54,497
|
|
|
2023
|
46,861
|
|
|
Thereafter
|
178,089
|
|
|
Total minimum lease payments
|
$
|
562,644
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
||||||
Domestic
|
$
|
2,894
|
|
|
$
|
1,037
|
|
|
$
|
56
|
|
Foreign
|
50,889
|
|
|
71,773
|
|
|
74,706
|
|
|||
|
53,783
|
|
|
72,810
|
|
|
74,762
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Domestic
|
422
|
|
|
350
|
|
|
3,779
|
|
|||
Foreign
|
38,154
|
|
|
(21,876
|
)
|
|
(67,947
|
)
|
|||
|
38,576
|
|
|
(21,526
|
)
|
|
(64,168
|
)
|
|||
Provision for income taxes
|
$
|
92,359
|
|
|
$
|
51,284
|
|
|
$
|
10,594
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Income taxes based on domestic statutory rates
|
$
|
88,552
|
|
|
$
|
63,044
|
|
|
$
|
77,295
|
|
Effect of tax rate differential
|
(244,128
|
)
|
|
(85,132
|
)
|
|
(62,072
|
)
|
|||
Change in liability for uncertain tax positions
|
22,180
|
|
|
684
|
|
|
(13,724
|
)
|
|||
Change in valuation allowance
|
297,330
|
|
|
78,728
|
|
|
1,049
|
|
|||
Recognition of prior year taxes recoverable
|
(53,757
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
(17,818
|
)
|
|
(6,040
|
)
|
|
8,046
|
|
|||
Provision for income taxes
|
$
|
92,359
|
|
|
$
|
51,284
|
|
|
$
|
10,594
|
|
|
As of March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Deferred tax liabilities:
|
|
|
|
||||
Fixed assets
|
$
|
(33,056
|
)
|
|
$
|
(40,324
|
)
|
Intangible assets
|
(80,565
|
)
|
|
(76,432
|
)
|
||
Others
|
(12,544
|
)
|
|
(20,702
|
)
|
||
Total deferred tax liabilities
|
(126,165
|
)
|
|
(137,458
|
)
|
||
Deferred tax assets:
|
|
|
|
||||
Fixed assets
|
65,155
|
|
|
57,869
|
|
||
Intangible assets
|
11,237
|
|
|
3,153
|
|
||
Deferred compensation
|
13,475
|
|
|
19,335
|
|
||
Inventory valuation
|
6,952
|
|
|
8,489
|
|
||
Provision for doubtful accounts
|
3,073
|
|
|
2,911
|
|
||
Net operating loss and other carryforwards
|
2,133,097
|
|
|
2,369,405
|
|
||
Others
|
236,916
|
|
|
266,367
|
|
||
Total deferred tax assets
|
2,469,905
|
|
|
2,727,529
|
|
||
Valuation allowances
|
(2,259,956
|
)
|
|
(2,442,105
|
)
|
||
Total deferred tax assets, net of valuation allowances
|
209,949
|
|
|
285,424
|
|
||
Net deferred tax asset
|
$
|
83,784
|
|
|
$
|
147,966
|
|
The net deferred tax asset is classified as follows:
|
|
|
|
||||
Long-term asset
|
$
|
165,319
|
|
|
$
|
223,285
|
|
Long-term liability
|
(81,535
|
)
|
|
(75,319
|
)
|
||
Total
|
$
|
83,784
|
|
|
$
|
147,966
|
|
Expiration dates of deferred tax assets related to operating losses and other carryforwards
|
|
||
|
(In thousands)
|
||
2019 - 2024
|
$
|
513,828
|
|
2025 - 2030
|
614,307
|
|
|
2031 and post
|
178,484
|
|
|
Indefinite
|
852,455
|
|
|
|
$
|
2,159,074
|
|
|
Fiscal Year Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Balance, beginning of fiscal year
|
$
|
203,323
|
|
|
$
|
212,326
|
|
Additions based on tax position related to the current year
|
24,415
|
|
|
29,007
|
|
||
Additions for tax positions of prior years
|
5,926
|
|
|
9,728
|
|
||
Reductions for tax positions of prior years
|
(11,936
|
)
|
|
(22,065
|
)
|
||
Reductions related to lapse of applicable statute of limitations
|
(9,029
|
)
|
|
(13,390
|
)
|
||
Settlements
|
—
|
|
|
(3,684
|
)
|
||
Impact from foreign exchange rates fluctuation
|
14,891
|
|
|
(8,599
|
)
|
||
Balance, end of fiscal year
|
$
|
227,590
|
|
|
$
|
203,323
|
|
|
Second Quarter
|
|
Fourth Quarter
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Americas:
|
|
|
|
|
|
||||||
Severance
|
$
|
6,031
|
|
|
$
|
36,973
|
|
|
$
|
43,004
|
|
Long-Lived Asset Impairment
|
—
|
|
|
9,417
|
|
|
9,417
|
|
|||
Other Exit Costs
|
—
|
|
|
11,835
|
|
|
11,835
|
|
|||
Total
|
6,031
|
|
|
58,225
|
|
|
64,256
|
|
|||
Asia:
|
|
|
|
|
|
||||||
Severance
|
1,950
|
|
|
14,590
|
|
|
16,540
|
|
|||
Long-Lived Asset Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other Exit Costs
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
1,950
|
|
|
14,590
|
|
|
16,540
|
|
|||
Europe:
|
|
|
|
|
|
||||||
Severance
|
—
|
|
|
9,895
|
|
|
9,895
|
|
|||
Long-Lived Asset Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other Exit Costs
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
—
|
|
|
9,895
|
|
|
9,895
|
|
|||
Total
|
|
|
|
|
|
||||||
Severance
|
7,981
|
|
|
61,458
|
|
|
69,439
|
|
|||
Long-Lived Asset Impairment
|
—
|
|
|
9,417
|
|
|
9,417
|
|
|||
Other Exit Costs
|
—
|
|
|
11,835
|
|
|
11,835
|
|
|||
Total restructuring charges
|
$
|
7,981
|
|
|
$
|
82,710
|
|
|
$
|
90,691
|
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Americas:
|
|
|
|
|
|
|
|
||||||||
Severance
|
$
|
10,822
|
|
|
$
|
6,263
|
|
|
$
|
7,623
|
|
|
$
|
24,708
|
|
Contractual obligations
|
—
|
|
|
489
|
|
|
3,353
|
|
|
3,842
|
|
||||
Total
|
10,822
|
|
|
6,752
|
|
|
10,976
|
|
|
28,550
|
|
||||
Asia:
|
|
|
|
|
|
|
|
||||||||
Severance
|
263
|
|
|
9,701
|
|
|
5,110
|
|
|
15,074
|
|
||||
Contractual obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
263
|
|
|
9,701
|
|
|
5,110
|
|
|
15,074
|
|
||||
Europe:
|
|
|
|
|
|
|
|
||||||||
Severance
|
454
|
|
|
968
|
|
|
1,049
|
|
|
2,471
|
|
||||
Contractual obligations
|
—
|
|
|
—
|
|
|
3,300
|
|
|
3,300
|
|
||||
Total
|
454
|
|
|
968
|
|
|
4,349
|
|
|
5,771
|
|
||||
Total
|
|
|
|
|
|
|
|
||||||||
Severance
|
11,539
|
|
|
16,932
|
|
|
13,782
|
|
|
42,253
|
|
||||
Contractual obligations
|
—
|
|
|
489
|
|
|
6,653
|
|
|
7,142
|
|
||||
Total restructuring charges
|
$
|
11,539
|
|
|
$
|
17,421
|
|
|
$
|
20,435
|
|
|
$
|
49,395
|
|
|
Severance
|
|
Long-Lived
Asset Impairment |
|
Other
Exit Costs |
|
Total
|
||||||||
|
|
||||||||||||||
Balance as of April 1, 2015
|
13,363
|
|
|
—
|
|
|
1,694
|
|
|
15,057
|
|
||||
Cash payments for charges incurred in fiscal year 2016 and prior
|
(1,458
|
)
|
|
—
|
|
|
(359
|
)
|
|
(1,817
|
)
|
||||
Balance as of March 31, 2016
|
11,905
|
|
|
—
|
|
|
1,335
|
|
|
13,240
|
|
||||
Provision for charges incurred in fiscal year 2017
|
42,253
|
|
|
—
|
|
|
7,142
|
|
|
49,395
|
|
||||
Cash payments for charges incurred in fiscal year 2017
|
(25,894
|
)
|
|
—
|
|
|
—
|
|
|
(25,894
|
)
|
||||
Cash payments for charges incurred in fiscal year 2016 and prior
|
(11,905
|
)
|
|
—
|
|
|
(1,335
|
)
|
|
(13,240
|
)
|
||||
Balance as of March 31, 2017
|
16,359
|
|
|
—
|
|
|
7,142
|
|
|
23,501
|
|
||||
Provision for charges incurred in fiscal year 2018
|
69,439
|
|
|
9,417
|
|
|
11,835
|
|
|
90,691
|
|
||||
Cash payments for charges incurred in fiscal year 2017 and prior
|
(13,237
|
)
|
|
—
|
|
|
(3,671
|
)
|
|
(16,908
|
)
|
||||
Cash payments for charges incurred in fiscal year 2018
|
(24,555
|
)
|
|
—
|
|
|
—
|
|
|
(24,555
|
)
|
||||
Non-cash charges incurred in fiscal year 2018
|
—
|
|
|
(9,417
|
)
|
|
(1,968
|
)
|
|
(11,385
|
)
|
||||
Balance as of March 31, 2018
|
48,006
|
|
|
—
|
|
|
13,338
|
|
|
61,344
|
|
||||
Less: Current portion (classified as other current liabilities)
|
48,006
|
|
|
—
|
|
|
13,338
|
|
|
61,344
|
|
||||
Accrued restructuring costs, net of current portion (classified as other liabilities)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Purchase Consideration
|
|
Net Tangible Assets Acquired
|
|
Purchased Intangible Assets
|
|
Goodwill
|
||||||||
AGM
|
|
$
|
213,718
|
|
|
$
|
56,438
|
|
|
$
|
82,000
|
|
|
$
|
75,280
|
|
Power Modules Business
|
|
54,659
|
|
|
11,615
|
|
|
33,300
|
|
|
9,744
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Net sales:
|
|
|
|
|
|
||||||
Communications & Enterprise Compute
|
$
|
7,729,350
|
|
|
$
|
8,383,420
|
|
|
$
|
8,841,642
|
|
Consumer Technologies Group
|
6,969,821
|
|
|
6,362,338
|
|
|
6,997,526
|
|
|||
Industrial & Emerging Industries
|
5,972,496
|
|
|
4,967,738
|
|
|
4,680,718
|
|
|||
High Reliability Solutions
|
4,769,464
|
|
|
4,149,438
|
|
|
3,898,999
|
|
|||
|
$
|
25,441,131
|
|
|
$
|
23,862,934
|
|
|
$
|
24,418,885
|
|
Segment income and reconciliation of income before tax:
|
|
|
|
|
|
||||||
Communications & Enterprise Compute
|
$
|
186,335
|
|
|
$
|
229,332
|
|
|
$
|
265,076
|
|
Consumer Technologies Group
|
111,629
|
|
|
179,910
|
|
|
163,677
|
|
|||
Industrial & Emerging Industries
|
235,422
|
|
|
179,749
|
|
|
157,588
|
|
|||
High Reliability Solutions
|
380,878
|
|
|
334,108
|
|
|
294,635
|
|
|||
Corporate and Other
|
(127,810
|
)
|
|
(107,850
|
)
|
|
(89,219
|
)
|
|||
Total income
|
786,454
|
|
|
815,249
|
|
|
791,757
|
|
|||
Reconciling items:
|
|
|
|
|
|
||||||
Intangible amortization
|
78,640
|
|
|
81,396
|
|
|
65,965
|
|
|||
Stock-based compensation
|
85,244
|
|
|
82,266
|
|
|
77,580
|
|
|||
Distressed customers asset impairments (1)
|
6,251
|
|
|
92,915
|
|
|
61,006
|
|
|||
Restructuring charges (2)
|
90,691
|
|
|
49,395
|
|
|
—
|
|
|||
Contingencies and other (3)
|
51,631
|
|
|
17,704
|
|
|
—
|
|
|||
Other charges (income), net
|
(169,719
|
)
|
|
21,193
|
|
|
47,738
|
|
|||
Interest and other, net
|
122,823
|
|
|
99,532
|
|
|
84,793
|
|
|||
Income before income taxes
|
$
|
520,893
|
|
|
$
|
370,848
|
|
|
$
|
454,675
|
|
(1)
|
During fiscal year 2016, the Company accepted return of previously shipped inventory from a former customer, SunEdison, Inc. ("SunEdison"), of approximately
$90 million
. On April 21, 2016, SunEdison filed a petition for reorganization under bankruptcy law, and as a result, the Company recognized a bad debt reserve of
$61 million
as of March 31, 2016, associated with its outstanding SunEdison receivables.
|
(2)
|
The Company initiated restructuring plans in fiscal years 2018 and 2017 and incurred charges primarily for employee terminations costs, as well as other asset impairments. These charges are split between cost of sales and selling, general and administration expenses on the Company's consolidated statement of operations, and are excluded from the measurement of the Company's operating segment's performance. Refer to note 15 for more details about our restructuring charges.
|
(3)
|
During fiscal year 2018, the Company incurred charges in connection with the matters described in note 13 for certain loss contingencies where it believes that losses are probable and estimable; coupled with various other charges predominately related to damages incurred from a typhoon that impacted one of its China facilities. Additionally, certain assets impairments were recorded during both fiscal years 2018 and 2017.
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In thousands)
|
||||||||||
Depreciation expense
|
|
|
|
|
|
||||||
Communications & Enterprise Compute
|
$
|
118,150
|
|
|
$
|
133,057
|
|
|
$
|
117,710
|
|
Consumer Technologies Group
|
110,276
|
|
|
110,379
|
|
|
123,139
|
|
|||
Industrial & Emerging Industries
|
75,366
|
|
|
70,814
|
|
|
72,415
|
|
|||
High Reliability Solutions
|
105,065
|
|
|
88,604
|
|
|
80,935
|
|
|||
Corporate and Other
|
25,575
|
|
|
29,384
|
|
|
31,530
|
|
|||
Total depreciation expense
|
$
|
434,432
|
|
|
$
|
432,238
|
|
|
$
|
425,729
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
(In thousands)
|
|||||||||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Asia
|
$
|
11,210,793
|
|
|
44
|
%
|
|
$
|
10,962,075
|
|
|
46
|
%
|
|
$
|
11,788,992
|
|
|
48
|
%
|
Americas
|
9,880,626
|
|
|
39
|
%
|
|
8,582,849
|
|
|
36
|
%
|
|
8,347,514
|
|
|
34
|
%
|
|||
Europe
|
4,349,712
|
|
|
17
|
%
|
|
4,318,010
|
|
|
18
|
%
|
|
4,282,379
|
|
|
18
|
%
|
|||
|
$
|
25,441,131
|
|
|
|
|
$
|
23,862,934
|
|
|
|
|
$
|
24,418,885
|
|
|
|
|
As of March 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
(In thousands)
|
||||||||||||
Property and equipment, net:
|
|
|
|
|
|
|
|
||||||
Asia
|
$
|
747,314
|
|
|
33
|
%
|
|
$
|
960,290
|
|
|
41
|
%
|
Americas
|
1,012,188
|
|
|
45
|
%
|
|
939,888
|
|
|
41
|
%
|
||
Europe
|
480,004
|
|
|
22
|
%
|
|
416,848
|
|
|
18
|
%
|
||
|
$
|
2,239,506
|
|
|
|
|
$
|
2,317,026
|
|
|
|
|
Fiscal Year Ended March 31, 2018
|
|
Fiscal Year Ended March 31, 2017
|
||||||||||||||||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth (2)
|
|
First
|
|
Second (3)
|
|
Third
|
|
Fourth
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net sales
|
$
|
6,008,272
|
|
|
$
|
6,270,420
|
|
|
$
|
6,751,552
|
|
|
$
|
6,410,887
|
|
|
$
|
5,876,813
|
|
|
$
|
6,008,525
|
|
|
$
|
6,114,999
|
|
|
$
|
5,862,597
|
|
Gross profit
|
406,932
|
|
|
393,325
|
|
|
446,328
|
|
|
349,297
|
|
|
405,995
|
|
|
313,691
|
|
|
416,455
|
|
|
384,804
|
|
||||||||
Net income (loss) (1)
|
124,710
|
|
|
205,086
|
|
|
118,333
|
|
|
(19,595
|
)
|
|
105,729
|
|
|
(2,508
|
)
|
|
129,469
|
|
|
86,874
|
|
||||||||
Earnings (losses) per share (4):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
0.24
|
|
|
$
|
0.39
|
|
|
$
|
0.22
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.19
|
|
|
$
|
0.00
|
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
0.38
|
|
|
$
|
0.22
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.19
|
|
|
$
|
0.00
|
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
(1)
|
Net income for the first quarter of fiscal year 2018 was affected by a
$38.7 million
gain recognized for the disposition of Wink. Refer to note 2 for additional information. Net income for the second quarter of fiscal year 2018 was affected by
$151.6 million
non-cash gain as a result of the deconsolidation of our investment in Elementum. Refer to note 6 for further details on the deconsolidation.
|
(2)
|
The Company recorded restructuring charges during the fourth quarter of fiscal year 2018. The Company classified approximately
$58.9 million
of these charges as a component of cost of sales and approximately
$23.8 million
of these charges as a component of selling, general and administrative expenses. Refer to note 15 for additional information on these charges.
|
(3)
|
Gross profit and net income for the second quarter of fiscal year 2017 was affected by
$92.9 million
of SunEdison bankruptcy related charges, as further described in note 2.
|
(4)
|
Earnings per share are computed independently for each quarter presented; therefore, the sum of the quarterly earnings per share may not equal the total earnings per share amounts for the fiscal year.
|
(a)
|
Evaluation of Disclosure Controls and Procedures
|
(b)
|
Management's Annual Report on Internal Control over Financial Reporting
|
(c)
|
Material Weaknesses Identified
|
•
|
Design and implement additional site level controls related to accounting for customer contractual obligations including criteria for effective contract reviews and approvals and documentation to evidence judgements and estimates.
|
•
|
Designing and implementing a centralized Contract Management Office to determine the appropriate accounting and provide evidence of review for each material contract.
|
•
|
Designing and implementing systematic centralized reporting controls that provide enhanced visibility to the accounting for customer contracts, which improve monitoring controls that are designed to prevent or detect material errors and help ensure that proper oversight is being provided related to certain decentralized activities.
|
•
|
Enhancing the quality and frequency of training across all levels to improve awareness of Company policies and knowledge of the expected standards of conduct.
|
(a)
|
Documents filed as part of this annual report on Form 10-K:
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|
Incorporated by Reference
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||
Exhibit No.
|
|
Exhibit
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|
Form
|
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File No.
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|
Filing Date
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|
Exhibit No.
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|
Filed Herewith
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Constitution of the Registrant
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10-Q
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000-23354
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10/31/2016
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3.01
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|
|
Indenture, dated as of February 20, 2013, by and between the Registrant, the Guarantors party thereto and U.S. Bank National Association, as Trustee, related to the Registrant's 4.625% Notes due 2020 and 5.000% Notes due 2023
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8-K
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000-23354
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2/22/2013
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4.1
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Form of 4.625% Note due 2020
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8-K
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000-23354
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2/22/2013
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4.1
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Form of 5.000% Note due 2023
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8-K
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000-23354
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2/22/2013
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4.1
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First Supplemental Indenture, dated as of March 28, 2013, among the Registrant, the Guarantor party thereto and U.S. Bank National Association, as Trustee, to the Indenture, dated as of February 20, 2013, by and between the Registrant, the Guarantors party thereto and U.S. Bank National Association, as Trustee, related to the Registrant's 4.625% Notes due 2020 and 5.000% Notes due 2023
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10-K
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|
000-23354
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5/28/2013
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4.11
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Second Supplemental Indenture, dated as of August 25, 2014, among the Registrant, the Guarantor party thereto and U.S. Bank National Association, as Trustee, to the Indenture, dated as of February 20, 2013, by and between the Registrant, the Guarantors party thereto and U.S. Bank National Association, as Trustee, related to the Registrant's 4.625% Notes due 2020 and 5.000% Notes due 2023
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10-Q
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000-23354
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|
10/30/2014
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|
4.01
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Incorporated by Reference
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||
Exhibit No.
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|
Exhibit
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Form
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File No.
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|
Filing Date
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Exhibit No.
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|
Filed Herewith
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Third Supplemental Indenture, dated as of September 11, 2015, among the Registrant, the Guarantor party thereto and U.S. Bank National Association, as Trustee, related to the Registrant’s 4.625% Notes due 2020 and 5.000% Notes due 2023
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S-4
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333-207067
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9/22/2015
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4.11
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Indenture, dated as of June 8, 2015, by and between the Registrant, the Guarantors party thereto and U.S. Bank National Association, as Trustee
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8-K
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000-23354
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6/8/2015
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4.1
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Form of 4.750% Note due 2025
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8-K
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000-23354
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6/8/2015
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4.1
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First Supplemental Indenture, dated as of September 11, 2015, among the Registrant, the Guarantor party thereto and U.S. Bank National Association, as Trustee, related to the Registrant’s 4.750% Notes due 2025
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S-4
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333-207067
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9/22/2015
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4.04
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Credit Agreement, dated as of June 30, 2017, among Flex Ltd. and certain of its subsidiaries, from time to time party thereto, as borrowers, Bank of America, N.A., as Administrative Agent and Swing Line Lender, and the other Lenders party thereto
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8-K
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000-23354
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6/30/2017
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10.01
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Term Loan Agreement, dated as of November 30, 2016, among Flex Ltd., as borrower, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent, and the other Lenders party thereto
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8-K
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000-23354
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12/1/2016
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10.01
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|
Amendment No. 1, dated as of July 25, 2017, to Term Loan Agreement, dated as of November 30, 2016, among Flex Ltd., as borrower, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent, and the other Lenders party thereto
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10-Q
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000-23354
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|
10/30/2017
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10.01
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|
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|
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Form of Indemnification Agreement between the Registrant and its Directors and certain officers†
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10-K
|
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000-23354
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5/20/2009
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10.01
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|
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Form of Indemnification Agreement between Flextronics Corporation and Directors and certain officers of the Registrant†
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10-K
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000-23354
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5/20/2009
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10.02
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Flex Ltd. 2010 Equity Incentive Plan†
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8-K
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000-23354
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7/28/2010
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10.01
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|
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Form of Share Option Award Agreement under 2010 Equity Incentive Plan†
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10-Q
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000-23354
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|
8/5/2010
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10.02
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Form of Restricted Share Unit Award Agreement under 2010 Equity Incentive Plan†
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10-Q
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000-23354
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8/5/2010
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10.03
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Flex Ltd. 2017 Equity Incentive Plan†
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DEF 14A
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000-23354
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7/5/2017
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|
Annex A
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Form of Restricted Share Unit Award Agreement under the 2017 Equity Incentive Plan for time-based vesting awards†
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10-Q
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000-23354
|
|
10/30/2017
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10.05
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Form of Restricted Share Unit Award Agreement under the 2017 Equity Incentive Plan for performance-based vesting awards†
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10-Q
|
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000-23354
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|
10/30/2017
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10.06
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|
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Incorporated by Reference
|
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|
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|
||
Exhibit No.
|
|
Exhibit
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Form
|
|
File No.
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|
Filing Date
|
|
Exhibit No.
|
|
Filed Herewith
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Flextronics International USA, Inc. Third Amended and Restated 2005 Senior Management Deferred Compensation Plan†
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10-Q
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000-23354
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2/6/2009
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10.02
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Flextronics International USA, Inc. Third Amended and Restated Senior Executive Deferred Compensation Plan†
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10-Q
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000-23354
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2/6/2009
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10.01
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|
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|
|
Summary of Directors' Compensation†
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10-Q
|
|
000.23354
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|
10/30/2017
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10.02
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|
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Executive Incentive Compensation Recoupment Policy†
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10-Q
|
|
000-23354
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|
8/5/2010
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10.06
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|
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Francois Barbier Offer Letter, dated as of July 1, 2010†
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8-K
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000-23354
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9/3/2010
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10.01
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|
Francois Barbier Relocation Expenses Addendum, dated as of March 5, 2013†
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10-K
|
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000-23354
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5/28/2013
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10.27
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|
Francois Barbier Confirmation Date Letter, dated as of August 30, 2010†
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8-K
|
|
000-23354
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|
9/3/2010
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10.03
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|
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|
|
Scott Offer Offer Letter dated June 14, 2016†
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10-Q
|
|
000-23354
|
|
8/1/2017
|
|
10.02
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|
|
|
|
2010 Flextronics International USA, Inc. Deferred Compensation Plan†
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10-Q
|
|
000-23354
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|
11/3/2010
|
|
10.04
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|
|
|
|
Form of Amendment to certain senior executive Restricted Share Unit Agreements under the 2010 Equity Incentive Plan†
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|
10-Q
|
|
000-23354
|
|
2/4/2013
|
|
10.02
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|
|
|
|
Form of Award Agreement under 2010 Deferred Compensation Plan†
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|
10-Q
|
|
000-23354
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|
7/30/2012
|
|
10.01
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|
|
|
|
Summary of Compensation Arrangements of Certain Executive Officers of Flex Ltd.†
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|
10-Q
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000-23354
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|
10/30/2017
|
|
10.03
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|
|
|
|
Form of Restricted Share Unit Award Agreement under the 2010 Equity Incentive Plan for time-based vesting awards†
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|
10-Q
|
|
000-23354
|
|
11/1/2013
|
|
10.02
|
|
|
|
|
Form of 2010 Deferred Compensation Plan Award Agreement (performance targets, cliff vesting)†
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|
10-Q
|
|
000-23354
|
|
8/2/2013
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10.02
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|
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|
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Form of 2010 Deferred Compensation Plan Award Agreement (non-performance, periodic vesting, continuing Participant)†
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10-Q
|
|
000-23354
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8/2/2013
|
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10.03
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|
|
|
|
Award Agreement under the 2010 Deferred Compensation Plan†
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10-Q
|
|
000-23354
|
|
7/28/2014
|
|
10.01
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|
|
|
|
Form of Restricted Share Unit Award Agreement under the 2010 Equity Incentive Plan for certain executive fiscal year 2015 performance-based awards†
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10-Q
|
|
000-23354
|
|
10/30/2014
|
|
10.01
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|
|
|
|
Description of Annual Incentive Bonus Plan for Fiscal 2018†
|
|
10-Q
|
|
000-23354
|
|
8/1/2017
|
|
10.03
|
|
|
|
|
Description of Performance Long Term Incentive Plan for Fiscal 2018†
|
|
10-Q
|
|
000-23354
|
|
8/1/2017
|
|
10.04
|
|
|
|
|
NEXTracker Inc. 2014 Equity Incentive Plan†
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|
S-8
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333-207325
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|
10/7/2015
|
|
99.01
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|
|
|
|
Form of Elementum Holding Ltd. Restricted Share Purchase Agreement†
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|
10-Q
|
|
000-23354
|
|
10/26/2015
|
|
10.02
|
|
|
|
|
BrightBox Technologies, Inc. 2013 Stock Incentive Plan†
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S-8
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333-212267
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|
6/27/2016
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99.01
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Subsidiaries of Registrant
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X
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Consent of Deloitte & Touche LLP
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X
|
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|
Incorporated by Reference
|
|
|
|
|
||
Exhibit No.
|
|
Exhibit
|
|
Form
|
|
File No.
|
|
Filing Date
|
|
Exhibit No.
|
|
Filed Herewith
|
|
Power of Attorney (included on the signature page to this Form 10-K)
|
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|
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X
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Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act
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X
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Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
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X
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|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350*
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X
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101.INS
|
|
XBRL Instance Document
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|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Scheme Document
|
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|
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|
|
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|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
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|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
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|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
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|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
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|
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|
X
|
*
|
This exhibit is furnished with this Annual Report on Form 10-K, is not deemed filed with the Securities and Exchange Commission, and is not incorporated by reference into any filing of Flex 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.
|
†
|
Management contract, compensatory plan or arrangement.
|
|
Flex Ltd.
|
||
|
By:
|
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/s/ MICHAEL M. MCNAMARA
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|
|
Michael M. McNamara
Chief Executive Officer
|
Signature
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Title
|
|
Date
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|
|
|
|
|
/s/ MICHAEL M. MCNAMARA
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|
Chief Executive Officer and Director (Principal Executive Officer)
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|
June 14, 2018
|
Michael M. McNamara
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|
|
/s/ CHRISTOPHER E. COLLIER
|
|
Chief Financial Officer (Principal Financial Officer)
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|
June 14, 2018
|
Christopher E. Collier
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/s/ DAVID P. BENNETT
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|
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)
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|
June 14, 2018
|
David P. Bennett
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/s/ MICHAEL D. CAPELLAS
|
|
Chairman of the Board
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|
June 14, 2018
|
Michael D. Capellas
|
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/s/ JENNIFER LI
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Director
|
|
June 14, 2018
|
Jennifer Li
|
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|
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/s/ MARC A. ONETTO
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|
Director
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|
June 14, 2018
|
Marc A. Onetto
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/s/ DANIEL H. SCHULMAN
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Director
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June 14, 2018
|
Daniel H. Schulman
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|
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|
/s/ WILLY C. SHIH, PH.D.
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Director
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|
June 14, 2018
|
Willy C. Shih, Ph.D.
|
|
|
|
|
|
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|
|
/s/ LAY KOON TAN
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|
Director
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|
June 14, 2018
|
Lay Koon Tan
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|
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/s/ WILLIAM D. WATKINS
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Director
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June 14, 2018
|
William D. Watkins
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|
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/s/ LAWRENCE A. ZIMMERMAN
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Director
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|
June 14, 2018
|
Lawrence A. Zimmerman
|
|
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|
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
Advance Mold & Manufacturing, Inc.
|
|
United States – Connecticut
|
AGM Automotive Costa Rica S.A.
|
|
Costa Rica
|
AGM Automotive Mexico, LLC
|
|
United States – Delaware
|
AGM Automotive, LLC
|
|
United States – Delaware
|
AGM Durmont Austria GmbH
|
|
Austria
|
AGM Durmont Mexico International, S. de R.L. de C.V.
|
|
Mexico
|
AGM Durmont Mexico, S. de R.L. de C.V.
|
|
Mexico
|
AGM Holding GmbH
|
|
Austria
|
Astron Group Limited
|
|
Hong Kong
|
Autolabs AI Israel Ltd.
|
|
Israel
|
Avail Medical Products, Inc.
|
|
United States – Delaware
|
Availmed, S.A. de C.V.
|
|
Mexico
|
BISSELL Asia Development Center (Shenzhen) Limited
|
|
China
|
Chatham International Holdings B.V.
|
|
Netherlands
|
Ciii Ltd.
|
|
Federal Territory of Labuan
|
Ciii USA, Inc.
|
|
United States – Delaware
|
Commercial Company in the form of a limited liability company factory “Flextronics LLC”
|
|
Ukraine
|
Dii International Holdings C.V.
|
|
Netherlands
|
Dongguan Flextronics Precision Metal Co., Ltd.
|
|
China
|
Elementum Holding Ltd
|
|
Cayman Islands
|
Elementum SCM (Cayman) Ltd
|
|
Cayman Islands
|
Express Cargo Forwarding Limited
|
|
United Kingdom
|
Farm Design, Inc.
|
|
United States – New Hampshire
|
Finchley Trading Limited
|
|
Hong Kong
|
FIT INSTITUTO DE TECNOLOGIA DA AMAZÔNIA
|
|
Brazil
|
Flex Asia Investment Limited
|
|
Mauritius
|
Flex Automation Corp.
|
|
United States – Delaware
|
Flex Automation Holdings LLC
|
|
United States – Delaware
|
Flex Automotive GmbH
|
|
Germany
|
Flex Digital Health, Inc.
|
|
United States – Delaware
|
Flex Electronics (Shanghai) Co., Ltd.
|
|
China
|
Flex Home Product Co Ltd
|
|
China
|
Flex Home Products (M) Sdn. Bhd.
|
|
Malaysia
|
Flex Intelligent Technology Solutions Limited
|
|
Ireland
|
Flex International s.r.o.
|
|
Czech Republic
|
Flex Lighting Solutions, Inc.
|
|
United States – Delaware
|
Flex Luxembourg Holdings S.a r.l.
|
|
Luxembourg
|
Flex Precision Plastics Solutions (Switzerland) AG
|
|
Switzerland
|
Flex Solutions Nordic AB
|
|
Sweden
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
Flex Solutions Poland sp. z o. o.
|
|
Poland
|
Flex Technology (Changsha) Co., Ltd.
|
|
China
|
Flextronics (China) Electronics Technology Co., Ltd.
|
|
China
|
Flextronics (Israel) Ltd.
|
|
Israel
|
Flextronics (Malaysia) Sdn. Bhd.
|
|
Malaysia
|
Flextronics (Shanghai) Co., Ltd
|
|
China
|
Flextronics Aerospace & Defense Services Inc
|
|
United States – Colorado
|
Flextronics America, LLC
|
|
United States – Delaware
|
Flextronics AP, LLC
|
|
United States – Colorado
|
FLEXTRONICS AUSTRALIA PTY LTD
|
|
Australia
|
Flextronics Automotive (Suzhou) Co., Ltd.
|
|
China
|
Flextronics Automotive de Juarez, S.A. de C.V.
|
|
Mexico
|
Flextronics Automotive Sales and Marketing, Ltd.
|
|
Mauritius
|
Flextronics Automotive USA (Texas), LLC
|
|
United States – Texas
|
Flextronics Automotive USA Design and Development Corporation
|
|
Philippines
|
Flextronics Automotive USA Manufacturing Co.
|
|
United States – Ohio
|
Flextronics Automotive USA, Inc.
|
|
United States – Michigan
|
Flextronics Beerse N.V.
|
|
Belgium
|
Flextronics Bermuda Ltd.
|
|
Bermuda
|
Flextronics Canada Design Services, Inc.
|
|
Canada
|
Flextronics Cayman (SLR) Limited
|
|
Cayman Islands
|
Flextronics Central Europe B.V.
|
|
Netherlands
|
Flextronics Chateaudun S.N.C.
|
|
France
|
Flextronics China (Mauritius) Electronics Technology Co., Ltd.
|
|
Mauritius
|
Flextronics China Holding (Singapore) Pte. Ltd.
|
|
Singapore
|
Flextronics Computing (Suzhou) Co., Ltd
|
|
China
|
Flextronics Computing Mauritius Limited
|
|
Mauritius
|
Flextronics Computing Sales and Marketing (L) Ltd.
|
|
Federal Territory of Labuan
|
Flextronics Corporation
|
|
United States – Delaware
|
Flextronics Design Asia Pte. Ltd.
|
|
Singapore
|
Flextronics Design Korea Ltd.
|
|
Korea
|
Flextronics Design S.r.l.
|
|
Italy
|
Flextronics Design, s.r.o.
|
|
Czech Republic
|
Flextronics Electronics (Mauritius) Limited
|
|
Mauritius
|
Flextronics Electronics Technology (Shenzhen) Co., Ltd.
|
|
China
|
Flextronics Electronics Technology (Suzhou) Co., Ltd.
|
|
China
|
Flextronics Enclosure (Zhuhai) Co., Ltd
|
|
China
|
Flextronics Enclosure Zhuhai (Mauritius) Co., Ltd.
|
|
Mauritius
|
Flextronics Enclosures (Hong Kong) Limited
|
|
Hong Kong
|
Flextronics Europe Holdings C.V.
|
|
Netherlands
|
Flextronics Europe Holdings LLC
|
|
United States – Delaware
|
Flextronics Europe Limited
|
|
United Kingdom
|
Flextronics Funding LLC
|
|
United States – Delaware
|
Flextronics Global Enclosures (Shanghai) Co., Ltd.
|
|
China
|
Flextronics Global Enclosures (Singapore) Pte. Ltd.
|
|
Singapore
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
Flextronics Global Enclosures Shanghai (Mauritius) Co., Ltd
|
|
Mauritius
|
Flextronics Global Holdings II Ltd.
|
|
Cayman Islands
|
Flextronics Global Holdings L.P.
|
|
Cayman Islands
|
Flextronics Global Procurement Ltd.
|
|
Bermuda
|
Flextronics Global Services (Manchester) Limited
|
|
United Kingdom
|
Flextronics Global Services Canada Inc. Services Globaux Flextronics Canada Inc.
|
|
Canada
|
Flextronics Global Services Lojistik Hizmetleri Limited Şirketi
|
|
Turkey
|
Flextronics Guadalajara Group, S. de R.L. de C.V.
|
|
Mexico
|
Flextronics Holding (Singapore) Pte. Ltd.
|
|
Singapore
|
Flextronics Holding do Brasil Ltda.
|
|
Brazil
|
Flextronics Holding Finland Oy
|
|
Finland
|
Flextronics Holding France S.A.
|
|
France
|
Flextronics Holding GmbH
|
|
Austria
|
Flextronics Holding USA, Inc.
|
|
United States – Delaware
|
Flextronics Holdings Mexico Dos, S.A. de C.V.
|
|
Mexico
|
Flextronics Holdings Mexico, S.A. de C.V.
|
|
Mexico
|
Flextronics Holdings Spain, S.L.
|
|
Spain
|
Flextronics Ind. (Malaysia) Sdn. Bhd.
|
|
Malaysia
|
Flextronics Industrial (Shenzhen) Co Ltd
|
|
China
|
Flextronics Industrial (Suzhou) Co., Ltd.
|
|
China
|
Flextronics Industrial (Zhuhai) Co., Ltd.
|
|
China
|
Flextronics Industrial Ltd.
|
|
Mauritius
|
Flextronics Industrial Shenzhen (Mauritius) Co Ltd.
|
|
Mauritius
|
Flextronics Industrial Zhuhai (Mauritius) Co., Ltd.
|
|
Mauritius
|
Flextronics Industries Marketing (L) Ltd.
|
|
Federal Territory of Labuan
|
Flextronics Industries Singapore Ltd.
|
|
Singapore
|
Flextronics Information Technology (Shen Zhen) Co., Ltd
|
|
China
|
Flextronics Information Technology Shen Zhen (Mauritius) Co., Ltd.
|
|
Mauritius
|
Flextronics Instituto de Tecnologia – FIT
|
|
Brazil
|
Flextronics Integrated Services Mex, S. de R.L. de C.V.
|
|
Mexico
|
Flextronics International (Singapore Group) Pte. Ltd.
|
|
Singapore
|
Flextronics International (Taiwan) Ltd.
|
|
Taiwan
|
Flextronics International Asia-Pacific Ltd
|
|
Mauritius
|
Flextronics International Componentes Ltda.
|
|
Brazil
|
Flextronics International Cork B.V.
|
|
Netherlands
|
Flextronics International Europe B.V.
|
|
Netherlands
|
Flextronics International Gesellschaft m.b.H.
|
|
Austria
|
Flextronics International Holding LLC
|
|
United States – Delaware
|
Flextronics International Holdings Pte. Ltd.
|
|
Singapore
|
Flextronics International Ireland Limited
|
|
Ireland
|
Flextronics International Japan Co., Ltd
|
|
Japan
|
Flextronics International Lojıstık Hızmetler Tıcaret Lımıted Şırketı
|
|
Turkey
|
Flextronics International Management Services Ltd.
|
|
Mauritius
|
Flextronics International N.V.
|
|
Curacao
|
Flextronics International Ostersund AB
|
|
Sweden
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
Flextronics International Poland Sp. z o.o.
|
|
Poland
|
Flextronics International Sweden AB
|
|
Sweden
|
Flextronics International Tecnologia Ltda
|
|
Brazil
|
Flextronics International Termelő és Szolgáltató Vámszabadterületi Korlátolt Felelősségű Társaság
|
|
Hungary
|
Flextronics International USA, Inc.
|
|
United States – California
|
Flextronics Investment Holding (Singapore) Pte. Ltd.
|
|
Singapore
|
Flextronics Italy S.p.A.
|
|
Italy
|
Flextronics Laval S.N.C.
|
|
France
|
Flextronics Logistics (Hong Kong) Limited
|
|
Hong Kong
|
Flextronics Logistics B.V.
|
|
Netherlands
|
Flextronics Logistics Poland Sp. z o.o.
|
|
Poland
|
Flextronics Logistics USA, Inc.
|
|
United States – California
|
Flextronics Logistics Zhuhai (Mauritius) Co., Limited
|
|
Mauritius
|
Flextronics Manufacturing (H.K.) Limited
|
|
Hong Kong
|
Flextronics Manufacturing (Singapore) Pte. Ltd.
|
|
Singapore
|
Flextronics Manufacturing (Tianjin) Co., Ltd.
|
|
China
|
Flextronics Manufacturing (Zhuhai) Co., Ltd.
|
|
China
|
Flextronics Manufacturing Aguascalientes, S.A. de C.V.
|
|
Mexico
|
Flextronics Manufacturing Europe B.V.
|
|
Netherlands
|
Flextronics Manufacturing Juarez, S. de R.L. de C.V.
|
|
Mexico
|
Flextronics Manufacturing Mex, S.A. de C.V.
|
|
Mexico
|
Flextronics Manufacturing S.r.l.
|
|
Italy
|
Flextronics Manufacturing Zhuhai (Mauritius) Co., Ltd.
|
|
Mauritius
|
Flextronics Marketing (L) Ltd.
|
|
Federal Territory of Labuan
|
Flextronics Mauritius Holdings Limited
|
|
Mauritius
|
Flextronics Mauritius Limited
|
|
Mauritius
|
Flextronics Mechanicals Marketing (L) Ltd.
|
|
Federal Territory of Labuan
|
Flextronics Mechanicals Singapore Pte. Ltd.
|
|
Singapore
|
Flextronics Medical Sales and Marketing, Ltd
|
|
Mauritius
|
Flextronics Mexico Holdings II LLC
|
|
United States – Delaware
|
FLEXTRONICS NEW ZEALAND PTY LIMITED
|
|
New Zealand
|
Flextronics ODM Luxembourg S.A.
|
|
Luxembourg
|
Flextronics Ostersund AB
|
|
Sweden
|
Flextronics Photonics PPT, Inc.
|
|
United States – Oregon
|
Flextronics Plastic (Asia Pacific) Limited
|
|
Hong Kong
|
Flextronics Plastic Technology (Chengdu) Co., Ltd.
|
|
China
|
Flextronics Plastic Technology (ShenZhen) Ltd.
|
|
China
|
Flextronics Plastic Technology ShenZhen (Mauritius) Ltd.
|
|
Mauritius
|
Flextronics Plastics (Shenzhen) Co., Ltd
|
|
China
|
Flextronics Plastics (Singapore) Pte. Ltd.
|
|
Singapore
|
Flextronics Plastics Gushu (Mauritius) Co., Ltd
|
|
Mauritius
|
Flextronics Plastics, S.A. de C.V.
|
|
Mexico
|
Flextronics Power Systems (Dongguan) Co., Ltd.
|
|
China
|
Flextronics Precision Metal (Hong Kong) Limited
|
|
Hong Kong
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
Flextronics Precision Plastics, Inc.
|
|
United States – Delaware
|
Flextronics Puerto Rico Limited
|
|
Cayman Islands
|
Flextronics R&D (Shenzhen) Co., Ltd
|
|
China
|
Flextronics R&D Shenzhen (Mauritius) Co., Ltd
|
|
Mauritius
|
Flextronics Romania S.R.L.
|
|
Romania
|
Flextronics S.R.L.
|
|
Italy
|
Flextronics Sales & Marketing (A-P) Ltd.
|
|
Mauritius
|
Flextronics Sales & Marketing North Asia (L) Ltd.
|
|
Federal Territory of Labuan
|
Flextronics Sales and Marketing Consumer Digital Ltd.
|
|
Mauritius
|
Flextronics Sárvár Logistics Korlátolt Felelősségű Társaság
|
|
Hungary
|
Flextronics Scotland Limited
|
|
United Kingdom
|
Flextronics Shah Alam Sdn. Bhd.
|
|
Malaysia
|
Flextronics Shanghai (Mauritius) Co., Ltd.
|
|
Mauritius
|
Flextronics SMI (China) Ltd
|
|
Mauritius
|
Flextronics Systems (Penang) Sdn. Bhd.
|
|
Malaysia
|
Flextronics Technologies (India) Private Limited
|
|
India
|
Flextronics Technologies Luxembourg LLC
|
|
United States – Nevada
|
Flextronics Technologies Luxembourg S.a r.l.
|
|
Luxembourg
|
Flextronics Technologies Mexico, S. de R.L. de C.V.
|
|
Mexico
|
Flextronics Technologies San Luis, S.A. de C.V.
|
|
Mexico
|
Flextronics Technology (Malaysia) Sdn. Bhd.
|
|
Malaysia
|
Flextronics Technology (Nanjing) Co., Ltd
|
|
China
|
Flextronics Technology (Penang) Sdn. Bhd.
|
|
Malaysia
|
Flextronics Technology (Shah Alam) Sdn. Bhd.
|
|
Malaysia
|
Flextronics Technology (Shanghai) Co., Ltd.
|
|
China
|
Flextronics Technology (ShenZhen) Co., Ltd
|
|
China
|
Flextronics Technology (Singapore) Pte. Ltd.
|
|
Singapore
|
Flextronics Technology (Zhuhai) Co. Ltd.
|
|
China
|
Flextronics Technology Nanjing (Mauritius) Co., Ltd
|
|
Mauritius
|
Flextronics Technology Shanghai (Mauritius) Co., Ltd.
|
|
Mauritius
|
Flextronics Technology ShenZhen (Mauritius) Co., Ltd
|
|
Mauritius
|
Flextronics Technology Wujiang (Mauritius) Ltd
|
|
Mauritius
|
Flextronics Technology Zhuhai (Mauritius) Co., Ltd
|
|
Mauritius
|
Flextronics Tecnologia Do Brasil Ltd.
|
|
Cayman Islands
|
Flextronics Telecom Systems Ltd
|
|
Mauritius
|
Flextronics UK Limited
|
|
United Kingdom
|
Flextronics Vagyonkezelő és Befektetési Korlátolt Felelősségű Társaság
|
|
Hungary
|
Flextronics Verwaltungs GmbH
|
|
Germany
|
FTIP Manufacturing Solutions Private Limited
|
|
India
|
Glouple Ventures 2000-II, LLC
|
|
United States – Delaware
|
I E C Holdings Limited
|
|
Ireland
|
IDE8 Cayman
|
|
Cayman Islands
|
IDE8 Mauritius Limited
|
|
Mauritius
|
IDE8 Technology (Shanghai) Co., Ltd.
|
|
China
|
International Manufacturing Synergies, Ltd.
|
|
British Virgin Islands
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
Irish Express Cargo Limited
|
|
Ireland
|
Irumold Servicios, S.L.U.
|
|
Spain
|
Irumold, S.L.U.
|
|
Spain
|
Kunshan AGM Automotive Components Co., Ltd.
|
|
China
|
Kunshan AGM Trading Company Ltd.
|
|
China
|
Lab IX
|
|
Cayman Islands
|
Lighting Acquisition LLC
|
|
United States – Delaware
|
Masa da Amazônia Ltda.
|
|
Brazil
|
MCi (Mirror Controls International) Asia B.V.
|
|
Netherlands
|
MCi (Mirror Controls International) B.V.
|
|
Netherlands
|
MCi (Mirror Controls International) Inc.
|
|
United States – Delaware
|
MCi (Mirror Controls International) Ireland Limited
|
|
Ireland
|
MCi (Mirror Controls International) Ireland Operations Limited
|
|
Ireland
|
MCi (Mirror Controls International) Ltd.
|
|
Republic of Korea
|
MCi (Mirror Controls International) Netherlands B.V.
|
|
Netherlands
|
MCi (Mirror Controls International) S. de R.L. de C.V.
|
|
Mexico
|
MCi Ireland Pension Plan Trustee Limited
|
|
Ireland
|
MCi Mirror Controls (Suzhou) Co., Ltd.
|
|
China
|
MICOH B.V.
|
|
Netherlands
|
Multek China Limited
|
|
China
|
Multek Display Cayman Ltd.
|
|
Cayman Islands
|
Multek Electronics Limited
|
|
China
|
Multek Flexible Circuits, Inc.
|
|
United States – Delaware
|
Multek Hong Kong Limited
|
|
Hong Kong
|
Multek Industries Limited
|
|
China
|
Multek Technologies Limited
|
|
Mauritius
|
Multek Technology (Zhuhai) Co Limited
|
|
China
|
Multek Zhuhai Limited
|
|
China
|
Multilayer Technology Geschäftsführungs GmbH
|
|
Germany
|
Multilayer Technology GmbH & Co. KG
|
|
Germany
|
Nanjing Flextronics Panda Mobile Terminals Co., Ltd
|
|
China
|
NEXTracker Argentina, S.A.
|
|
Argentina
|
NEXTracker Australia Pty. Ltd.
|
|
Australia
|
NEXTracker Chile SpA
|
|
Chile
|
NEXTracker Inc.
|
|
United States – Delaware
|
NEXTRACKER MÉXICO, S. DE R.L. DE C.V.
|
|
Mexico
|
Pacific Device, Inc.
|
|
United States – Delaware
|
Parque de Tecnologia Electronica, S.A. de C.V.
|
|
Mexico
|
Power Systems R&D (Singapore) Pte. Ltd.
|
|
Singapore
|
Power Systems R&D Philippines, Inc.
|
|
Philippines
|
Power Systems Technologies (Beijing) Company Limited
|
|
China
|
Power Systems Technologies Far East Limited
|
|
Hong Kong
|
Power Systems Technologies GmbH
|
|
Germany
|
Power Systems Technologies Ltd.
|
|
Mauritius
|
Private Joint Stock Company “Flextronics Service UA”
|
|
Ukraine
|
Name of Subsidiary
|
|
Country/State of
Incorporation/Organization
|
PT. Flextronics Technology Indonesia
|
|
Indonesia
|
SHIANT RESOURCE SERVICE CO., LTD
|
|
China
|
Solectron France SAS
|
|
France
|
Solectron Phillipines Inc.
|
|
Philippines
|
Sønderborg Værktøjsfabrik A/S
|
|
Denmark
|
Suzhou AGM Durmont Automotive Components Co., Ltd.
|
|
China
|
Swedform Enclosure Systems AB
|
|
Sweden
|
The DII Group (BVI) Co. Limited
|
|
British Virgin Islands
|
The DII Group Asia Limited
|
|
Hong Kong
|
ThermoMend B.V.
|
|
The Netherlands
|
ThermoMend International Ltd.
|
|
Mauritius
|
Vastbright PCB (Holding) Limited
|
|
Hong Kong
|
Vim Technologies Ltd
|
|
Mauritius
|
Z124
|
|
Cayman Islands
|
Subsidiary
|
|
dba
|
Advance Mold & Manufacturing, Inc.
|
|
Vision Technical Molding, LLC
|
Advance Mold & Manufacturing, Inc.
|
|
Vision Technical Molding
|
Subsidiary
|
|
dba
|
Avail Medical Products, Inc.
|
|
Avail Medical Products, Inc. Southwest Division
|
Subsidiary
|
|
dba
|
Flextronics America, LLC
|
|
ConFocus, A Flextronics Company
|
Subsidiary
|
|
dba
|
Flextronics Logistics USA, Inc.
|
|
Multek Distribution, Inc.
|
Flextronics Logistics USA, Inc.
|
|
Multek, Inc.
|
Subsidiary
|
|
dba
|
Multek Flexible Circuits, Inc.
|
|
Sheldahl
|
Subsidiary
|
|
dba
|
Pacific Device, Inc.
|
|
Avail Medical Products, Inc.
|
1.
|
I have reviewed this Annual Report on Form 10-K of Flex 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: June 14, 2018
|
|
|
|
|
|
|
|
/s/ MICHAEL M. MCNAMARA
|
|
|
|
Michael M. McNamara
Chief Executive Officer |
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Flex 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: June 14, 2018
|
|
|
|
|
|
|
|
/s/ CHRISTOPHER E. COLLIER
|
|
|
|
Christopher E. Collier
Chief Financial Officer
|
|
|
•
|
the Annual Report on Form 10-K of the Company for the fiscal year ended
March 31, 2018
, 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; and
|
•
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: June 14, 2018
|
/s/ Michael M. McNamara
|
|
|
|
Michael M. McNamara
|
|
|
Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
Date: June 14, 2018
|
/s/ Christopher E. Collier
|
|
|
|
Christopher E. Collier
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|