FLEX LTD. - 10-K filing on 2015-05-21

SUMMARY OF ACCOUNTING POLICIES (Tables)

12 Months Ended

Mar. 31, 2015

Summary of the activity in the Company's allowance for doubtful accounts

	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, 2013(1)	$	38,905	$	6,643	$	(34,671	)	$	10,877
Year ended March 31, 2014	$	10,877	$	2,029	$	(7,377	)	$	5,529
Year ended March 31, 2015	$	5,529	$	650	$	(1,645	)	$	4,534

(1)

Fiscal year 2013 includes a $28.0 million write off related to a fiscal year 2012 charge for a distressed customer and $5.8 million which was previously reserved and the underlying accounts receivable balance was reclassified to non-current assets in fiscal year 2013 and was carried net of its specific reserve.

Schedule of cash and cash equivalents

	As of March 31,
	2015		2014
	(In thousands)
Cash and bank balances	$	953,549	$	1,040,800
Money market funds and time deposits		674,859		552,928

	$	1,628,408	$	1,593,728

Schedule of components of inventories

	As of March 31,
	2015		2014
	(In thousands)
Raw materials	$	2,330,428	$	2,349,278
Work-in-progress		557,786		608,284
Finished goods		600,538		641,446

	$	3,488,752	$	3,599,008

Schedule of property and equipment, net

		As of March 31,
	Depreciable Life (In Years)	As of March 31,
	Depreciable Life (In Years)	2015			2014
		(In thousands)
Machinery and equipment	3 - 10	$	2,928,903		$	2,929,449
Buildings	30		1,067,837			1,069,376
Leasehold improvements	up to 30		459,926			470,960
Furniture, fixtures, computer equipment and software	3 - 7		440,878			427,038
Land	—		123,633			127,567
Construction-in-progress	—		140,786			88,687

			5,161,963			5,113,077
Accumulated depreciation and amortization			(3,069,796	)		(2,824,421	)

Property and equipment, net		$	2,092,167		$	2,288,656

Schedule of goodwill

	HRS			CTG		IEI		INS		Total
Balance, as of March 31, 2013	$	—		$	—	$	—	$	—	$	262,005
Additions(1)		—			—		—		—		26,270
Purchase accounting adjustments(2)		—			—		—		—		4,034
Foreign currency translation adjustments		—			—		—		—		449

Balance, as of March 31, 2014		—			—		—		—		292,758
Additions(1)		—			—		—		—		36,467
Purchase accounting adjustments(2)		—			—		—		—		8,651
Foreign currency translation adjustments		—			—		—		—		(3,393	)

Balance, as of December 31, 2014(3)		93,990			68,234		64,221		108,038		334,483
Purchase accounting adjustments(2)		(656	)		—		—		—		(656	)
Foreign currency translation adjustments		(196	)		—		—		—		(196	)

Balance, as of March 31, 2015	$	93,138		$	68,234	$	64,221	$	108,038	$	333,631

(1)	The goodwill generated from the Company's business combinations completed during the fiscal years 2015 and 2014 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 17.
(2)	Includes adjustments based on management's estimates resulting from their 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.
(3)	Goodwill is allocated to each of the reporting units based on the relative fair values assessed in conjunction with the goodwill impairment testing conducted as of January 1, 2015.

Schedule of components of acquired intangible assets

	As of March 31, 2015							As of March 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Intangible assets:
Customer-related intangibles	$	133,853	$	(80,506	)	$	53,347	$	204,369	$	(140,713	)	$	63,656
Licenses and other intangibles		39,985		(11,788	)		28,197		32,564		(11,760	)		20,804

Total	$	173,838	$	(92,294	)	$	81,544	$	236,933	$	(152,473	)	$	84,460

Schedule of estimated future annual amortization expense for intangible assets

Fiscal Year Ending March 31,	Amount
	(In thousands)
2016	$	27,449
2017		19,701
2018		14,000
2019		9,760
2020		5,224
Thereafter		5,410

Total amortization expense	$	81,544