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

INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2015

INCOME TAXES

Components of income from continuing operations before income taxes

		Fiscal Year Ended March 31,
		2015			2014			2013
		(In thousands)
Domestic		$	67,482		$	314,639		$	170,071
Foreign			603,173			85,815			158,744

Total		$	670,655		$	400,454		$	328,815

Schedule of provision for income taxes

		Fiscal Year Ended March 31,
		2015			2014			2013
		(In thousands)
Current:
Domestic		$	87		$	(681	)	$	680
Foreign			129,863			73,992			60,466

			129,950			73,311			61,146
Deferred:
Domestic			(4,734	)		9			(1,187	)
Foreign			(55,362	)		(38,460	)		(33,646	)

			(60,096	)		(38,451	)		(34,833	)

Provision for income taxes		$	69,854		$	34,860		$	26,313

Schedule of reconciliation of the income tax expense from continuing operations expected based on domestic statutory income tax rates to the expense for income taxes

		Fiscal Year Ended March 31,
		2015			2014			2013
		(In thousands)
Income taxes based on domestic statutory rates		$	114,011		$	68,077		$	55,899
Effect of tax rate differential			(80,842	)		(68,654	)		(120,785	)
Intangible amortization			5,143			4,750			4,881
Change in liability for uncertain tax positions			29,729			(2,178	)		15,268
Change in valuation allowance			2,495			26,838			68,596
Other			(682	)		6,027			2,454

Provision for income taxes		$	69,854		$	34,860		$	26,313

Components of deferred income taxes

		As of March 31,
		2015			2014
		(In thousands)
Deferred tax liabilities:
Fixed assets		$	(73,327	)	$	(76,524	)
Others			(44,603	)		(54,900	)

Total deferred tax liabilities			(117,930	)		(131,424	)

Deferred tax assets:
Fixed assets			80,370			80,801
Intangible assets			28,954			62,951
Deferred compensation			13,618			10,263
Inventory valuation			11,864			9,255
Provision for doubtful accounts			3,149			3,558
Net operating loss and other carryforwards			2,394,456			2,613,095
Others			264,781			201,906

			2,797,192			2,981,829
Valuation allowances			(2,521,763	)		(2,749,040	)

Net deferred tax assets, net of valuation allowance			275,429			232,789

Net deferred tax asset		$	157,499		$	101,365


The net deferred tax asset is classified as follows:
Current asset (classified as other current assets)		$	63,910		$	13,522
Long-term asset (classified as other assets)			211,519			219,267
Long-term liability (classified as other liabilities)			(117,930	)		(131,424	)

Total		$	157,499		$	101,365

Schedule of tax losses and other carryforwards on a tax return basis, which will expire at various dates

Expiration dates of deferred tax assets related to operating losses and other carryforwards
		(In thousands)
2016 - 2021		$	344,790
2022 - 2027			939,453
2028 and post			660,072
Indefinite			482,527

		$	2,426,842

Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits

		Fiscal Year Ended March 31,
		2015			2014
		(In thousands)
Balance, beginning of fiscal year		$	243,864		$	230,018
Additions based on tax position related to the current year			27,048			16,823
Additions for tax positions of prior years			24,354			36,689
Reductions for tax positions of prior years			(16,388	)		(19,755	)
Reductions related to lapse of applicable statute of limitations			(11,891	)		(10,261	)
Settlements			(24,049	)		(8,964	)
Impact from foreign exchange rates fluctuation			(20,565	)		(686	)

Balance, end of fiscal year		$	222,373		$	243,864