10-Q 1 flex-20211001.htm 10-Q flex-20211001
0000866374falseMarch 312022Q2P2Y00P2Y00008663742021-04-012021-10-01xbrli:shares00008663742021-10-25iso4217:USD00008663742021-10-0100008663742021-03-31iso4217:USDxbrli:shares00008663742021-07-032021-10-0100008663742020-06-272020-09-2500008663742020-04-012020-09-250000866374us-gaap:CommonStockMember2021-07-020000866374us-gaap:RetainedEarningsMember2021-07-020000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-020000866374us-gaap:AccumulatedTranslationAdjustmentMember2021-07-020000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-0200008663742021-07-020000866374us-gaap:CommonStockMember2021-07-032021-10-010000866374us-gaap:RetainedEarningsMember2021-07-032021-10-010000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-032021-10-010000866374us-gaap:AccumulatedTranslationAdjustmentMember2021-07-032021-10-010000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-032021-10-010000866374us-gaap:CommonStockMember2021-10-010000866374us-gaap:RetainedEarningsMember2021-10-010000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-10-010000866374us-gaap:AccumulatedTranslationAdjustmentMember2021-10-010000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-010000866374us-gaap:CommonStockMember2021-03-310000866374us-gaap:RetainedEarningsMember2021-03-310000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-03-310000866374us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000866374us-gaap:CommonStockMember2021-04-012021-10-010000866374us-gaap:RetainedEarningsMember2021-04-012021-10-010000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-04-012021-10-010000866374us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-10-010000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-10-010000866374us-gaap:CommonStockMember2020-06-260000866374us-gaap:RetainedEarningsMember2020-06-260000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-260000866374us-gaap:AccumulatedTranslationAdjustmentMember2020-06-260000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-2600008663742020-06-260000866374us-gaap:CommonStockMember2020-06-272020-09-250000866374us-gaap:RetainedEarningsMember2020-06-272020-09-250000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-272020-09-250000866374us-gaap:AccumulatedTranslationAdjustmentMember2020-06-272020-09-250000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-272020-09-250000866374us-gaap:CommonStockMember2020-09-250000866374us-gaap:RetainedEarningsMember2020-09-250000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-250000866374us-gaap:AccumulatedTranslationAdjustmentMember2020-09-250000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-2500008663742020-09-250000866374us-gaap:CommonStockMember2020-03-310000866374us-gaap:RetainedEarningsMember2020-03-310000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-03-310000866374us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100008663742020-03-310000866374us-gaap:CommonStockMember2020-04-012020-09-250000866374us-gaap:RetainedEarningsMember2020-04-012020-09-250000866374us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-04-012020-09-250000866374us-gaap:AccumulatedTranslationAdjustmentMember2020-04-012020-09-250000866374us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-09-25flex:operating_unitflex:segment0000866374srt:RevisionOfPriorPeriodReclassificationAdjustmentMember2021-03-310000866374flex:AutomotiveMember2021-04-012021-10-010000866374flex:CustomerRelatedIntangiblesMember2021-10-010000866374flex:CustomerRelatedIntangiblesMember2021-03-310000866374flex:LicensesAndOtherIntangiblesMember2021-10-010000866374flex:LicensesAndOtherIntangiblesMember2021-03-310000866374flex:WorkingCapitalAdvancesMember2021-10-010000866374flex:WorkingCapitalAdvancesMember2021-03-310000866374flex:DeferredRevenueAndCustomerWorkingCapitalAdvancesMember2021-10-010000866374flex:DeferredRevenueAndCustomerWorkingCapitalAdvancesMember2021-03-310000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredAtPointInTimeMember2021-07-032021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredAtPointInTimeMember2020-06-272020-09-250000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredAtPointInTimeMember2021-04-012021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredAtPointInTimeMember2020-04-012020-09-250000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredOverTimeMember2021-07-032021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredOverTimeMember2020-06-272020-09-250000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredOverTimeMember2021-04-012021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:TransferredOverTimeMember2020-04-012020-09-250000866374flex:FlexAgilitySolutionsFASMember2021-07-032021-10-010000866374flex:FlexAgilitySolutionsFASMember2020-06-272020-09-250000866374flex:FlexAgilitySolutionsFASMember2021-04-012021-10-010000866374flex:FlexAgilitySolutionsFASMember2020-04-012020-09-250000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredAtPointInTimeMember2021-07-032021-10-010000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredAtPointInTimeMember2020-06-272020-09-250000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredAtPointInTimeMember2021-04-012021-10-010000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredAtPointInTimeMember2020-04-012020-09-250000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredOverTimeMember2021-07-032021-10-010000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredOverTimeMember2020-06-272020-09-250000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredOverTimeMember2021-04-012021-10-010000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:TransferredOverTimeMember2020-04-012020-09-250000866374flex:FlexReliabilitySolutionsFRSMember2021-07-032021-10-010000866374flex:FlexReliabilitySolutionsFRSMember2020-06-272020-09-250000866374flex:FlexReliabilitySolutionsFRSMember2021-04-012021-10-010000866374flex:FlexReliabilitySolutionsFRSMember2020-04-012020-09-250000866374us-gaap:TransferredAtPointInTimeMember2021-07-032021-10-010000866374us-gaap:TransferredAtPointInTimeMember2020-06-272020-09-250000866374us-gaap:TransferredAtPointInTimeMember2021-04-012021-10-010000866374us-gaap:TransferredAtPointInTimeMember2020-04-012020-09-250000866374us-gaap:TransferredOverTimeMember2021-07-032021-10-010000866374us-gaap:TransferredOverTimeMember2020-06-272020-09-250000866374us-gaap:TransferredOverTimeMember2021-04-012021-10-010000866374us-gaap:TransferredOverTimeMember2020-04-012020-09-250000866374us-gaap:CostOfSalesMember2021-07-032021-10-010000866374us-gaap:CostOfSalesMember2020-06-272020-09-250000866374us-gaap:CostOfSalesMember2021-04-012021-10-010000866374us-gaap:CostOfSalesMember2020-04-012020-09-250000866374us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-032021-10-010000866374us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-06-272020-09-250000866374us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-04-012021-10-010000866374us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012020-09-250000866374us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUWithNoPerformanceOrMarketConditionsMember2021-04-012021-10-010000866374srt:MinimumMemberflex:RestrictedStockUnitsRSUWithNoPerformanceOrMarketConditionsMember2021-04-012021-10-010000866374srt:MaximumMemberflex:RestrictedStockUnitsRSUWithNoPerformanceOrMarketConditionsMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUWithNoPerformanceOrMarketConditionsMember2021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMemberflex:KeyEmployeesMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMember2021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMembersrt:MinimumMemberflex:KeyEmployeesMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMembersrt:MaximumMemberflex:KeyEmployeesMember2021-04-012021-10-010000866374flex:KeyEmployeesMemberflex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-10-010000866374srt:MinimumMemberflex:KeyEmployeesMemberflex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-04-012021-10-010000866374srt:MaximumMemberflex:KeyEmployeesMemberflex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-04-012021-10-010000866374us-gaap:RestrictedStockUnitsRSUMember2021-10-010000866374srt:MinimumMemberflex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMembersrt:MinimumMember2021-10-010000866374srt:MinimumMemberflex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-04-012021-10-010000866374srt:MaximumMemberflex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMembersrt:MinimumMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithPerformanceConditionsMembersrt:MaximumMember2021-04-012021-10-010000866374flex:RestrictedStockUnitsRSUsShareBonusAwardsWithMarketConditionsMember2021-04-012021-10-010000866374us-gaap:RestrictedStockUnitsRSUMember2020-06-272020-09-250000866374us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-09-250000866374us-gaap:RestrictedStockUnitsRSUMember2021-07-032021-10-010000866374us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-10-010000866374us-gaap:ForeignExchangeContractMember2021-10-01iso4217:CNY0000866374us-gaap:ForeignExchangeContractMembercurrency:CNYus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:CNYus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-10-01iso4217:HUF0000866374us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:HUFus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:DesignatedAsHedgingInstrumentMembercurrency:HUFus-gaap:CashFlowHedgingMember2021-10-01iso4217:JPY0000866374us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMembercurrency:JPY2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMembercurrency:JPY2021-10-01iso4217:MXN0000866374us-gaap:ForeignExchangeContractMembercurrency:MXNus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMember2021-10-010000866374us-gaap:ForeignExchangeContractMembercurrency:MXNus-gaap:PutOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-10-01iso4217:MYR0000866374currency:MYRus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMember2021-10-010000866374currency:MYRus-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMemberflex:OtherCurrencyMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberflex:OtherCurrencyMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CallOptionMemberus-gaap:CashFlowHedgingMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-10-01iso4217:BRL0000866374us-gaap:ForeignExchangeContractMembercurrency:BRLus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:BRLus-gaap:NondesignatedMember2021-10-01iso4217:CAD0000866374us-gaap:ForeignExchangeContractMembercurrency:CADus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:CADus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMembercurrency:CNYus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:CNYus-gaap:NondesignatedMember2021-10-01iso4217:EUR0000866374us-gaap:ForeignExchangeContractMembercurrency:EURus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMembercurrency:EURus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-01iso4217:GBP0000866374us-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMembercurrency:GBPus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:GBPus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMembercurrency:HUFus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:HUFus-gaap:NondesignatedMember2021-10-01iso4217:ILS0000866374currency:ILSus-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:ILSus-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-01iso4217:INR0000866374currency:INRus-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:INRus-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:MXNus-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:MXNus-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:MYRus-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:MYRus-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-01iso4217:SEK0000866374us-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMembercurrency:SEKus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMembercurrency:SEKus-gaap:NondesignatedMember2021-10-01iso4217:SGD0000866374currency:SGDus-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374currency:SGDus-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMemberflex:OtherCurrencyMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMemberflex:OtherCurrencyMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:CallOptionMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:PutOptionMember2021-10-010000866374us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-10-010000866374us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-03-310000866374us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2021-03-310000866374us-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-10-010000866374us-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-03-310000866374us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-10-010000866374us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-03-310000866374us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2021-03-310000866374us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMember2021-10-010000866374us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMember2021-03-310000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-020000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-06-260000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-032021-10-010000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-06-272020-09-250000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-10-010000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-250000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-03-310000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-10-010000866374us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-04-012020-09-25flex:program0000866374us-gaap:AssetBackedSecuritiesMember2021-04-012021-10-010000866374flex:GlobalAssetBasedSecuritizationProgramMember2021-10-010000866374flex:NorthAmericanAssetBasedSecuritizationProgramMember2021-10-01xbrli:pure0000866374srt:MinimumMemberus-gaap:AssetBackedSecuritiesMember2021-10-010000866374us-gaap:AssetBackedSecuritiesMembersrt:MaximumMember2021-10-010000866374flex:OldABSProgramMemberflex:SalesOfReceivablesFromSpecialPurposeEntitiesMember2020-04-012020-09-250000866374flex:SaleOfReceivablesToThirdPartyBanksMember2021-10-010000866374flex:SaleOfReceivablesToThirdPartyBanksMember2021-03-310000866374flex:SaleOfReceivablesToThirdPartyBanksMember2020-09-250000866374us-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMember2021-10-010000866374us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMember2021-10-010000866374us-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMember2021-10-010000866374us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-10-010000866374us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-10-010000866374us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-10-010000866374us-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMember2021-10-010000866374us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMember2021-10-010000866374us-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMember2021-10-010000866374us-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMember2021-03-310000866374us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMember2021-03-310000866374us-gaap:FairValueMeasurementsRecurringMemberflex:MoneyMarketFundsAndTimeDepositsMember2021-03-310000866374us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-03-310000866374us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-03-310000866374us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2021-03-310000866374us-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMember2021-03-310000866374us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMember2021-03-310000866374us-gaap:FairValueMeasurementsRecurringMemberflex:EquitySecuritiesFixedIncomeSecuritiesAndMutualFundsMember2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentyThreeMember2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentyThreeMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentyThreeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentyThreeMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentyThreeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughAprilTwoThousandTwentyFourMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughAprilTwoThousandTwentyFourMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughAprilTwoThousandTwentyFourMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughAprilTwoThousandTwentyFourMember2021-03-310000866374us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughAprilTwoThousandTwentyFourMember2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyFiveMember2021-10-010000866374us-gaap:CarryingReportedAmountFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyFiveMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyFiveMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:CarryingReportedAmountFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyFiveMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyFiveMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentySixMember2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentySixMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentySixMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentySixMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughFebruaryTwoThousandTwentySixMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyNineMember2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyNineMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyNineMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyNineMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughJuneTwoThousandTwentyNineMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughMayTwoThousandThirtyMember2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughMayTwoThousandThirtyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374us-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughMayTwoThousandThirtyMemberus-gaap:FairValueInputsLevel1Member2021-10-010000866374flex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughMayTwoThousandThirtyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:TermLoanAgreementIncludingCurrentPortionDueInInstallmentsThroughMayTwoThousandThirtyMemberus-gaap:FairValueInputsLevel1Member2021-03-310000866374us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberflex:EuroTermLoanDueSeptemberTwoThousandTwentyMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:EuroTermLoanDueSeptemberTwoThousandTwentyMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberflex:EuroTermLoanDueSeptemberTwoThousandTwentyMember2021-03-310000866374us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberflex:EuroTermLoanDueSeptemberTwoThousandTwentyMember2021-03-310000866374us-gaap:FairValueInputsLevel2Memberflex:IndiaTermLoanAgreementDueThroughSeptemberTwoThousandTwentyThreeMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberflex:IndiaTermLoanAgreementDueThroughSeptemberTwoThousandTwentyThreeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-10-010000866374us-gaap:FairValueInputsLevel2Memberflex:IndiaTermLoanAgreementDueThroughSeptemberTwoThousandTwentyThreeMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310000866374us-gaap:FairValueInputsLevel2Memberflex:IndiaTermLoanAgreementDueThroughSeptemberTwoThousandTwentyThreeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310000866374flex:SunEdisonIncMember2016-04-212016-04-210000866374flex:SunEdisonIncFiledChapter11Memberus-gaap:PendingLitigationMemberus-gaap:CollectibilityOfReceivablesMember2016-04-212016-04-21flex:tax_assessment0000866374flex:AssessmentofSalesandImportTaxesMemberus-gaap:ForeignCountryMembercountry:BR2021-04-012021-10-010000866374flex:AssessmentofSalesandImportTaxesMemberus-gaap:ForeignCountryMemberus-gaap:PendingLitigationMembercountry:BR2021-04-012021-10-010000866374flex:AssessmentofSalesandImportTaxesMemberus-gaap:ForeignCountryMemberus-gaap:PendingLitigationMembercountry:BR2020-03-232020-03-230000866374flex:IntercompanyPaymentDeductibilityMemberus-gaap:ForeignCountryMember2021-04-012021-10-010000866374flex:IntercompanyPaymentDeductibilityMemberus-gaap:ForeignCountryMembercountry:MY2021-04-012021-10-010000866374flex:AssessmentofSalesandImportTaxesMemberus-gaap:ForeignCountryMemberus-gaap:PendingLitigationMembercountry:BR2021-06-300000866374flex:AssessmentofSalesandImportTaxesMemberus-gaap:ForeignCountryMembercountry:BRus-gaap:SettledLitigationMember2021-09-300000866374us-gaap:OtherCurrentAssetsMember2021-10-010000866374us-gaap:OtherAssetsMember2021-10-010000866374srt:MinimumMember2021-10-010000866374srt:MaximumMember2021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:OperatingSegmentsMember2021-07-032021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:OperatingSegmentsMember2020-06-272020-09-250000866374flex:FlexAgilitySolutionsFASMemberus-gaap:OperatingSegmentsMember2021-04-012021-10-010000866374flex:FlexAgilitySolutionsFASMemberus-gaap:OperatingSegmentsMember2020-04-012020-09-250000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:OperatingSegmentsMember2021-07-032021-10-010000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:OperatingSegmentsMember2020-06-272020-09-250000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:OperatingSegmentsMember2021-04-012021-10-010000866374flex:FlexReliabilitySolutionsFRSMemberus-gaap:OperatingSegmentsMember2020-04-012020-09-250000866374us-gaap:OperatingSegmentsMember2021-07-032021-10-010000866374us-gaap:OperatingSegmentsMember2020-06-272020-09-250000866374us-gaap:OperatingSegmentsMember2021-04-012021-10-010000866374us-gaap:OperatingSegmentsMember2020-04-012020-09-250000866374us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMember2021-07-032021-10-010000866374us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMember2020-06-272020-09-250000866374us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMember2021-04-012021-10-010000866374us-gaap:CorporateAndOtherMemberus-gaap:OperatingSegmentsMember2020-04-012020-09-250000866374us-gaap:MaterialReconcilingItemsMember2021-07-032021-10-010000866374us-gaap:MaterialReconcilingItemsMember2020-06-272020-09-250000866374us-gaap:MaterialReconcilingItemsMember2021-04-012021-10-010000866374us-gaap:MaterialReconcilingItemsMember2020-04-012020-09-250000866374us-gaap:SubsequentEventMemberflex:AnordMardixMember2021-10-290000866374us-gaap:SubsequentEventMemberflex:AnordMardixMember2021-10-022021-10-29
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
Form 10-Q
(Mark One)
 
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 1, 2021
 
Or
 
         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                   to                  
 
Commission file number 0-23354
 
FLEX LTD.
(Exact name of registrant as specified in its charter)
Singapore Not Applicable
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2 Changi South Lane,  
Singapore 486123
(Address of registrant’s principal executive offices) (Zip Code)
 Registrant’s telephone number, including area code
(656876-9899
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Ordinary Shares, No Par ValueFLEXThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.:
Large Accelerated FilerAccelerated filerNon-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 
 
The number of shares of the registrant’s ordinary shares outstanding as of October 25, 2021 was 470,623,389.


FLEX LTD.
 
INDEX
 
  Page
   
 
 
 
 
 
 
   
   
 

2

PART I. FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Board of Directors and Shareholders of Flex Ltd., Singapore

Results of Review of Interim Financial Information
 
We have reviewed the accompanying condensed consolidated balance sheet of Flex Ltd. and its subsidiaries (the “Company”) as of October 1, 2021, and the related condensed consolidated statements of operations, comprehensive income, shareholders equity for the three-month and six-month periods ended October 1, 2021 and September 25, 2020, and the condensed consolidated statements of cash flows for the six-month periods ended October 1, 2021 and September 25, 2020, and the related notes (collectively referred to as the “interim financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of Flex Ltd. and subsidiaries as of March 31, 2021 and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated May 19, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of March 31, 2021 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

The interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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

/s/ DELOITTE & TOUCHE LLP 
San Jose, California 
October 29, 2021 

3

FLEX LTD.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
As of October 1, 2021As of March 31, 2021
(In millions, except share amounts)
(Unaudited)
ASSETS
Current assets:  
Cash and cash equivalents$2,458 $2,637 
Accounts receivable, net of allowance of $58 and $61, respectively
3,505 3,959 
Contract assets392 282 
Inventories5,168 3,895 
Other current assets660 590 
Total current assets12,183 11,363 
Property and equipment, net2,100 2,097 
Operating lease right-of-use assets, net612 642 
Goodwill1,085 1,090 
Other intangible assets, net182 213 
Other assets549 431 
Total assets$16,711 $15,836 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:  
Bank borrowings and current portion of long-term debt$284 $268 
Accounts payable5,848 5,247 
Accrued payroll450 473 
Deferred revenue and customer working capital advances 1,146 848 
Other current liabilities960 998 
Total current liabilities8,688 7,834 
Long-term debt, net of current portion3,501 3,515 
Operating lease liabilities, non-current534 562 
Other liabilities474 489 
Shareholders’ equity  
Ordinary shares, no par value; 521,713,696 and 542,807,200 issued, and 471,474,341 and 492,567,845 outstanding, respectively
5,786 6,232 
Treasury stock, at cost; 50,239,355 shares as of October 1, 2021 and March 31, 2021
(388)(388)
Accumulated deficit(1,747)(2,289)
Accumulated other comprehensive loss(137)(119)
Total shareholders’ equity3,514 3,436 
Total liabilities and shareholders’ equity$16,711 $15,836 

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

4

FLEX LTD.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 Three-Month Periods EndedSix-Month Periods Ended
 October 1, 2021September 25, 2020October 1, 2021September 25, 2020
(In millions, except per share amounts)
(Unaudited)
Net sales$6,229 $5,985 $12,571 $11,138 
Cost of sales5,755 5,566 11,625 10,406 
Restructuring charges9 24 9 34 
Gross profit465 395 937 698 
Selling, general and administrative expenses213 193 414 384 
Restructuring charges 11  11 
Intangible amortization15 16 30 31 
Operating income237 175 493 272 
Interest and other, net(134)22 (111)51 
Income before income taxes371 153 604 221 
Provision for income taxes35 40 62 56 
Net income$336 $113 $542 $165 
Earnings per share:    
Basic$0.70 $0.23 $1.11 $0.33 
Diluted$0.69 $0.22 $1.10 $0.33 
Weighted-average shares used in computing per share amounts:    
Basic482 501 487 499 
Diluted487 504 493 503 

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

5


FLEX LTD.
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 Three-Month Periods EndedSix-Month Periods Ended
 October 1, 2021September 25, 2020October 1, 2021September 25, 2020
(In millions)
(Unaudited)
Net income$336 $113 $542 $165 
Other comprehensive income (loss):    
Foreign currency translation adjustments, net of zero tax
(16)31 (11)45 
Unrealized gain (loss) on derivative instruments and other, net of tax(10)7 (7)37 
Comprehensive income$310 $151 $524 $247 

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

6

FLEX LTD.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Ordinary SharesAccumulated Other Comprehensive LossTotal
Three Months Ended October 1, 2021Shares
Outstanding
AmountAccumulated
Deficit
Unrealized
Loss on
Derivative
Instruments
and Other
Foreign
Currency
Translation
Adjustments
Total
Accumulated
Other
Comprehensive
Loss
Shareholders'
Equity
(In millions)
Unaudited
BALANCE AT JULY 2, 2021489 $5,702 $(2,083)$(39)$(72)$(111)$3,508 
Repurchase of Flex Ltd. ordinary shares at cost(18)(328)— — — — (328)
Net income— — 336 — — — 336 
Stock-based compensation— 24 — — — — 24 
Total other comprehensive loss— — — (10)(16)(26)(26)
BALANCE AT OCTOBER 1, 2021471 $5,398 $(1,747)$(49)$(88)$(137)$3,514 

Ordinary SharesAccumulated Other Comprehensive LossTotal
Six Months Ended October 1, 2021Shares
Outstanding
AmountAccumulated
Deficit
Unrealized
Loss on
Derivative
Instruments
and Other
Foreign
Currency
Translation
Adjustments
Total
Accumulated
Other
Comprehensive
Loss
Shareholders'
Equity
(In millions)
Unaudited
BALANCE AT MARCH 31, 2021492 $5,844 $(2,289)$(42)$(77)$(119)$3,436 
Repurchase of Flex Ltd. ordinary shares at cost(27)(490)— — — — (490)
Exercise of stock options1 — — — — —  
Issuance of Flex Ltd. vested shares under restricted share unit awards5 — — — — — — 
Net income— — 542 — — — 542 
Stock-based compensation— 44 — — — — 44 
Total other comprehensive loss— — — (7)(11)(18)(18)
BALANCE AT OCTOBER 1, 2021471 $5,398 $(1,747)$(49)$(88)$(137)$3,514 




7

Ordinary SharesAccumulated Other Comprehensive LossTotal
Three Months Ended September 25, 2020Shares
Outstanding
AmountAccumulated
Deficit
Unrealized
Gain (Loss) on
Derivative
Instruments
and Other
Foreign
Currency
Translation
Adjustments
Total
Accumulated
Other
Comprehensive
Loss
Shareholders'
Equity
(In millions)
Unaudited
BALANCE AT JUNE 26, 2020500 $5,961 $(2,850)$(52)$(119)$(171)$2,940 
Issuance of Flex Ltd. vested shares under restricted share unit awards1 — — — — — — 
Net income— — 113 — — — 113 
Stock-based compensation— 24 — — — — 24 
Total other comprehensive income— — — 7 31 38 38 
BALANCE AT SEPTEMBER 25, 2020501 $5,985 $(2,737)$(45)$(88)$(133)$3,115 
Ordinary SharesAccumulated Other Comprehensive LossTotal
Six Months Ended September 25, 2020Shares
Outstanding
AmountAccumulated
Deficit
Unrealized
Gain (Loss) on
Derivative
Instruments
and Other
Foreign
Currency
Translation
Adjustments
Total
Accumulated
Other
Comprehensive
Loss
Shareholders'
Equity
(In millions)
Unaudited
BALANCE AT MARCH 31, 2020497 $5,948 $(2,902)$(82)$(133)$(215)$2,831 
Issuance of Flex Ltd. vested shares under restricted share unit awards4 — — — — — — 
Net income— — 165 — — — 165 
Stock-based compensation— 37 — — — — 37 
Total other comprehensive income— — — 37 45 82 82 
BALANCE AT SEPTEMBER 25, 2020501 $5,985 $(2,737)$(45)$(88)$(133)$3,115 

The accompanying notes are an integral part of these condensed consolidated financial statements.
8

FLEX LTD.
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 Six-Month Periods Ended
 October 1, 2021September 25, 2020
(In millions)
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income$542 $165 
Depreciation, amortization and other impairment charges236 283 
Changes in working capital and other, net(264)(813)
Net cash provided by (used in) operating activities514 (365)
CASH FLOWS FROM INVESTING ACTIVITIES:  
Purchases of property and equipment(210)(185)
Proceeds from the disposition of property and equipment5 14 
Other investing activities, net2 13 
Net cash used in investing activities(203)(158)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Proceeds from bank borrowings and long-term debt20 1,943 
Repayments of bank borrowings and long-term debt(9)(1,005)
Payments for repurchases of ordinary shares(490) 
Other financing activities, net(8)2 
Net cash provided by (used in) financing activities(487)940 
Effect of exchange rates on cash and cash equivalents(3)19 
Net increase (decrease) in cash and cash equivalents(179)436 
Cash and cash equivalents, beginning of period2,637 1,923 
Cash and cash equivalents, end of period$2,458 $2,359 
Non-cash investing activities:  
Unpaid purchases of property and equipment$122 $54 
Right-of-use assets obtained in exchange of operating lease liabilities28 72 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
1.  ORGANIZATION OF THE COMPANY AND BASIS OF PRESENTATION
Organization of the Company
Flex Ltd. ("Flex" or the "Company") was incorporated in the Republic of Singapore in May 1990. The Company's operations have expanded over the years through a combination of organic growth and acquisitions. The Company is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across approximately 30 countries and responsible, sustainable operations, the Company delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets. In order to drive efficiency and productivity, the Company is organized around two focused and complementary delivery models, which also represent its operating and reportable segments:
Flex Agility Solutions ("FAS"), which is comprised of the following end markets:
Communications, Enterprise and Cloud ("CEC"), including data infrastructure, edge infrastructure and communications infrastructure;
Lifestyle, including appliances, consumer packaging, floorcare, micro mobility and audio; and
Consumer Devices, including mobile and high velocity consumer devices.
Flex Reliability Solutions ("FRS"), which is comprised of the following end markets:
Automotive, including autonomous, connectivity, electrification, and smart technologies;
Health Solutions, including medical devices, medical equipment and drug delivery; and
Industrial, including capital equipment, industrial devices, renewable including our Nextracker business, grid edge, and power systems.
The Company's service offerings include a comprehensive range of value-added design and engineering services that are tailored to the various markets and needs of its customers. Other focused service offerings relate to manufacturing (including enclosures, metals, plastic injection molding, precision plastics, machining, and mechanicals), system integration and assembly and test services, materials procurement, inventory management, logistics and after-sales services (including product repair, warranty services, re-manufacturing and maintenance), supply chain management software solutions, and component product offerings (including flexible printed circuit boards and power adapters and chargers).
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, 2021 contained in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Operating results for the three and six-month periods ended October 1, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2022. Certain prior period amounts in the condensed consolidated financial statements, as well as in the Notes thereto, have been reclassified to conform to the current presentation. Beginning in the second quarter of fiscal year 2022, the Company elected to include operating income as a subtotal in the condensed consolidated statements of operations. In addition, deferred revenue and customer working capital advances, previously included within other current liabilities, have been separately presented as deferred revenue and customer working capital advances in the current liabilities section of the condensed consolidated balance sheets. Further, certain unbilled receivables previously presented as part of accounts receivable, net of allowance for doubtful accounts are now being presented as contract assets on the condensed consolidated balance sheets as billing is to occur subsequent to revenue recognition and is conditional upon other than the passage of time. The Company reclassified $146.8 million of unbilled receivables from account receivable, net of allowance for doubtful accounts to contract assets for the period ended March 31, 2021 in order to align with the current year presentation. These presentation changes were applied to all periods presented in the condensed consolidated statements of operations and balance sheets. The foregoing changes in presentation had no impact on the Company's results of operations or cash flows.
The first quarters for fiscal years 2022 and 2021 ended on July 2, 2021, which is comprised of 93 days in the period, and June 26, 2020, which is comprised of 87 days in the period, respectively. The second quarters for fiscal years 2022 and 2021 ended on October 1, 2021 and September 25, 2020, which are comprised of 91 days in both periods.
10

The accompanying unaudited condensed consolidated financial statements include the accounts of Flex and its majority-owned subsidiaries, after elimination of intercompany accounts and transactions. The Company consolidates its majority-owned subsidiaries and investments in entities in which the Company has a controlling interest. For the consolidated majority-owned subsidiaries in which the Company owns less than 100%, the Company recognizes a noncontrolling interest for the ownership of the noncontrolling owners. The associated noncontrolling owners' interest in the income or losses of these companies is not material to the Company's results of operations for all periods presented, and is classified as a component of interest and other, net, in the condensed consolidated statements of operations.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things: allowances for doubtful accounts; inventory write-downs; valuation allowances for deferred tax assets; uncertain tax positions; valuation and useful lives of long-lived assets including property, equipment, and intangible assets; valuation of goodwill; valuation of investments in privately-held companies; asset impairments; fair values of financial instruments, notes receivable and derivative instruments; restructuring charges; contingencies; warranty provisions; incremental borrowing rates in determining the present value of lease payments; accruals for potential price adjustments arising from customer contracts; fair values of assets obtained and liabilities assumed in business combinations; and the fair values of stock options and restricted share unit awards granted under the Company's stock-based compensation plans. Due to the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to COVID-19. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences may be material to the condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur.
Recently Adopted Accounting Pronouncement
In October 2020, the FASB issued ASU 2020-10 "Codification Improvements", which improves consistency by amending the Codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The Company adopted the guidance during the first quarter of fiscal year 2022 with an immaterial impact on its condensed consolidated financial statements.
In January 2020, the FASB issued ASU 2020-01 "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 — a consensus of the FASB Emerging Issues Task Force", which makes improvements related to the following two topics: (1) accounting for certain equity securities when the equity method of accounting is applied or discontinued, and (2) scope considerations related to forward contracts and purchased options on certain securities. The Company adopted the guidance during the first quarter of fiscal year 2022 with an immaterial impact on its condensed consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted the guidance during the first quarter of fiscal year 2022 with an immaterial impact on its condensed consolidated financial statements.
Recently Issued Accounting Pronouncements
In July 2021, the FASB issued ASU 2021-05 "Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments", which requires a lessor to classify a lease with variable lease payments that don’t depend on an index or a rate as an operating lease on the commencement date of the lease if specified criteria are met. The guidance is effective for the Company beginning in the first quarter of fiscal year 2023 with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its condensed consolidated financial statements, and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2023.
11

2.  BALANCE SHEET ITEMS 
Inventories 
The components of inventories, net of applicable lower of cost and net realizable value write-downs, were as follows: 
As of October 1, 2021As of March 31, 2021
 (In millions)
Raw materials$4,106 $2,831 
Work-in-progress466 459 
Finished goods596 605 
 $5,168 $3,895 
Goodwill and Other Intangible Assets 
During the six-month period ended October 1, 2021, there was no activity in the Company's goodwill account for each of its reporting units, other than foreign currency translation adjustments of $5.5 million, which primarily impacted its Automotive reporting unit. 
The components of acquired intangible assets are as follows:
 As of October 1, 2021As of March 31, 2021
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
 (In millions)
Intangible assets:      
Customer-related intangibles$245 $(139)$106 $276 $(154)$122 
Licenses and other intangibles202 (126)76 250 (159)91 
Total$447 $(265)$182 $526 $(313)$213 

The gross carrying amounts of intangible assets are removed when fully amortized. The estimated future annual amortization expense for intangible assets is as follows:
Fiscal Year Ending March 31,Amount
 (In millions)
2022 (1)$24 
202346 
202444 
202539 
202618 
Thereafter11 
Total amortization expense$182 
____________________________________________________________
(1)Represents estimated amortization for the remaining fiscal six-month period ending March 31, 2022. 
Customer Working Capital Advances
Customer working capital advances was $666.4 million and $471.5 million, as of October 1, 2021 and March 31, 2021, respectively. The customer working capital advances are not interest-bearing, do not have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production.
3.  REVENUE 
Revenue Recognition
The Company provides a comprehensive suite of services for its customers that range from advanced product design to manufacturing and logistics to after-sales services. The first step in its process for revenue recognition is to identify a contract with a customer. A contract is defined as an agreement between two parties that creates enforceable rights and obligations and
12

can be written, verbal, or implied. The Company generally enters into master supply agreements (“MSAs”) with its customers that provide the framework under which business will be conducted. This includes matters such as warranty, indemnification, transfer of title and risk of loss, liability for excess and obsolete inventory, pricing formulas, payment terms, etc., and the level of business under those agreements may not be guaranteed. In those instances, the Company bids on a program-by-program basis and typically receives customer purchase orders for specific quantities and timing of products. As a result, the Company considers its contract with a customer to be the combination of the MSA and the purchase order, or any other similar documents such as a statement of work, product addendum, emails or other communications that embody the commitment by the customer.
In determining the appropriate amount of revenue to recognize, the Company applies the following steps: (i) identifies the contracts with the customers; (ii) identifies performance obligations in the contracts; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations per the contracts; and (v) recognizes revenue when (or as) the Company satisfies a performance obligation. Further, the Company assesses whether control of the products or services promised under the contract is transferred to the customer at a point in time (PIT) or over time (OT). The Company is first required to evaluate whether its contracts meet the criteria for OT recognition. The Company has determined that for a portion of its contracts the Company is manufacturing products for which there is no alternative use (due to the unique nature of the customer-specific product and intellectual property restrictions) and the Company has an enforceable right to payment including a reasonable profit for work-in-progress inventory with respect to these contracts. For certain other contracts, the Company’s performance creates and enhances an asset that the customer controls as the Company performs under the contract. As a result, revenue is recognized under these contracts OT based on the cost-to-cost method as it best depicts the transfer of control to the customer measured based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation. For all other contracts that do not meet these criteria, the Company recognizes revenue when it has transferred control of the related manufactured products which generally occurs upon delivery and passage of title to the customer.
Customer Contracts and Related Obligations
Certain of the Company’s customer agreements include potential price adjustments which may result in variable consideration. These price adjustments include, but are not limited to, sharing of cost savings, committed price reductions, material margins earned over the period that are contractually required to be paid to the customers, rebates, refunds tied to performance metrics such as on-time delivery, and other periodic pricing resets that may be refundable to customers. The Company estimates the variable consideration related to these price adjustments as part of the total transaction price and recognizes revenue in accordance with the pattern applicable to the performance obligation, subject to a constraint. The Company constrains the amount of revenues recognized for these contractual provisions based on its best estimate of the amount which will not result in a significant reversal of revenue in a future period. The Company determines the amounts to be recognized based on the amount of potential refunds required by the contract, historical experience and other surrounding facts and circumstances. Often these obligations are settled with the customer in a period after shipment through various methods which include reduction of prices for future purchases, issuance of a payment to the customer, or issuance of a credit note applied against the customer’s accounts receivable balance. In many instances, the agreement is silent on the settlement mechanism. Any difference between the amount accrued for potential refunds and the actual amount agreed to with the customer is recorded as an increase or decrease in revenue. These potential price adjustments are included as part of other current liabilities on the consolidated balance sheet.
Performance Obligations
The Company derives its revenues primarily from manufacturing services, and to a lesser extent, from innovative design, engineering, and supply chain services and solutions.
A performance obligation is an implicitly or explicitly promised good or service that is material in the context of the contract and is both capable of being distinct (customer can benefit from the good or service on its own or together with other readily available resources) and distinct within the context of the contract (separately identifiable from other promises). The Company considers all activities typically included in its contracts, and identifies those activities representing a promise to transfer goods or services to a customer. These include, but are not limited to, design and engineering services, prototype products, tooling, etc. Each promised good or service with regards to these identified activities is accounted for as a separate performance obligation only if it is distinct - i.e., the customer can benefit from it on its own or together with other resources that are readily available to the customer. Certain activities on the other hand are determined not to constitute a promise to transfer goods or service, and therefore do not represent separate performance obligations for revenue recognition (e.g., procurement of materials and standard workmanship warranty).
A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's contracts have a single performance obligation as the promise to transfer the individual good or service is not separately identifiable from other promises in the contract and is, therefore, not distinct. Promised goods or services that are immaterial in the context of the contract are not separately assessed
13

as performance obligations. In the event that more than one performance obligation is identified in a contract, the Company is required to allocate the transaction price between the performance obligations. The allocation would generally be performed on the basis of a relative standalone price for each distinct good or service. This standalone price most often represents the price that the Company would sell similar goods or services separately.
Contract Balances
A contract asset is recognized when the Company has recognized revenue, but not issued an invoice for payment. Contract assets are classified separately on the condensed consolidated balance sheets and transferred to receivables when rights to payment become unconditional.
A contract liability is recognized when the Company receives payments in advance of the satisfaction of performance. Contract liabilities, identified as deferred revenue, were $545.4 million and $435.4 million as of October 1, 2021 and March 31, 2021, respectively, of which $480.1 million and $376.5 million, respectively, is included in deferred revenue and customer working capital advances.
Disaggregation of Revenue
The following table presents the Company’s revenue disaggregated based on timing of transfer - point in time and over time - for the three and six-month periods ended October 1, 2021 and September 25, 2020, respectively.

Three-Month Periods EndedSix-Month Periods Ended
October 1, 2021September 25, 2020October 1, 2021September 25, 2020
Timing of Transfer(In millions)
FAS
Point in time$3,250 $2,823 $6,498 $5,269 
Over time187 495 371 961 
Total 3,437 3,318 6,869 6,230 
FRS
Point in time2,308 1,779 4,711 3,103 
Over time484 888 991 1,805 
Total 2,792 2,667 5,702 4,908 
Flex
Point in time5,558 4,602 11,209 8,372 
Over time671 1,383 1,362 2,766 
Total $6,229 $5,985 $12,571 $11,138 

4.  SHARE-BASED COMPENSATION
The Company's primary plan used for granting equity compensation awards is the 2017 Equity Incentive Plan (the "2017 Plan").
The following table summarizes the Company’s share-based compensation expense:
 Three-Month Periods EndedSix-Month Periods Ended
 October 1, 2021September 25, 2020October 1, 2021September 25, 2020
 (In millions)
Cost of sales$6 $6 $11 $10 
Selling, general and administrative expenses18 18 33 27 
Total share-based compensation expense$24 $24 $44 $37 
Total number of options outstanding and exercisable were immaterial as of October 1, 2021. All options have been fully expensed as of October 1, 2021.
During the six-month period ended October 1, 2021, the Company granted 5.8 million unvested restricted share unit ("RSU") awards. Of this amount, approximately 5.0 million are plain-vanilla unvested RSU awards that vest over a period of two to three years, with no performance or market conditions, and with an average grant date price of $18.25 per award. In
14

addition, approximately 0.4 million unvested shares represent the target amount of grants made to certain key employees whereby vesting is contingent on certain performance conditions, and with an average grant date price of $18.22 per award. The number of shares contingent on performance conditions that ultimately will vest will range from zero up to a maximum of 0.8 million based on a measurement of the Company's earnings per share growth over a certain specified period, and will cliff vest after a period of three years, to the extent such performance conditions have been met. Further, approximately 0.4 million unvested shares represent the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions. The average grant date fair value of these awards contingent on certain market conditions was estimated to be $25.86 per award and was calculated using a Monte Carlo simulation. The number of shares contingent on market conditions that ultimately will vest will range from zero up to a maximum of 0.8 million based on a measurement of the percentile rank of the Company’s total shareholder return over a certain specified period against the Company's peer companies, and will cliff vest after a period of three years, to the extent such market conditions have been met.  
As of October 1, 2021, approximately 15.9 million unvested RSU awards under all plans were outstanding, of which vesting for a targeted amount of 2.9 million shares is contingent on meeting certain market conditions, and vesting for a targeted amount of 0.4 million shares is contingent on meeting certain performance conditions. The number of shares tied to market condition that will ultimately be issued can range from zero to 5.8 million based on the achievement levels. The number of shares tied to performance conditions that will ultimately be issued can range from zero to 0.8 million based on the achievement levels. During the six-month period ended October 1, 2021, no shares vested in connection with the awards with market conditions granted in fiscal year 2019.
As of October 1, 2021, total unrecognized compensation expense related to unvested RSU awards under all plans was approximately $175.6 million, and will be recognized over a weighted-average remaining vesting period of 2.2 years.

5.  EARNINGS PER SHARE 
The following table reflects basic weighted-average ordinary shares outstanding and diluted weighted-average ordinary share equivalents used to calculate basic and diluted earnings per share attributable to the shareholders of Flex: 
 Three-Month Periods EndedSix-Month Periods Ended
 October 1, 2021September 25, 2020October 1, 2021September 25, 2020
 (In millions, except per share amounts)
Basic earnings per share:
Net income$336 $113 $542 $165 
Shares used in computation:  
Weighted-average ordinary shares outstanding482 501 487 499 
Basic earnings per share$0.70 $0.23 $1.11 $0.33 
Diluted earnings per share:    
Net income$336 $113 $542 $165 
Shares used in computation:    
Weighted-average ordinary shares outstanding482 501 487 499 
Weighted-average ordinary share equivalents from RSU awards (1)5 3 6 4 
Weighted-average ordinary shares and ordinary share equivalents outstanding487 504 493 503 
Diluted earnings per share$0.69 $0.22 $1.10 $0.33 
____________________________________________________________
(1)Immaterial RSU awards for the three and six-month periods ended October 1, 2021, and 3.5 million and 3.6 million RSU awards for the three and six-month periods ended September 25, 2020, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents.

15

6.  INTEREST AND OTHER, NET 
Interest and other, net for the three and six-month periods ended October 1, 2021 and September 25, 2020 are primarily composed of the following:
 Three-Month Periods EndedSix-Month Periods Ended
 October 1, 2021September 25, 2020October 1, 2021September 25, 2020
 (In millions)
Interest expenses on debt obligations$37 $38 $75 $71 
Interest income(4)(3)(8)(6)
Brazil tax credit (1)$(149) (149)$ 
____________________________________________________________
(1)In the second quarter of fiscal year 2022, the Company recognized a $149 million gain related to a certain tax credit upon approval of a "Credit Habilitation" request by the relevant Brazil tax authorities. Refer to note 11 to the condensed consolidated financial statements for further information.

7.  FINANCIAL INSTRUMENTS
Foreign Currency Contracts
The Company enters into short-term and long-term foreign currency derivatives contracts, including forward, swap, and options contracts to hedge only those currency exposures associated with certain assets and liabilities, primarily accounts receivable and accounts payable, and cash flows denominated in non-functional currencies. Gains and losses on the Company's derivative contracts are designed to offset losses and gains on the assets, liabilities and transactions hedged, and accordingly, generally do not subject the Company to risk of significant accounting losses. The Company hedges committed exposures and does not engage in speculative transactions. The credit risk of these derivative contracts is minimized since the contracts are with large financial institutions and accordingly, fair value adjustments related to the credit risk of the counterparty financial institution were not material.
As of October 1, 2021, the aggregate notional amount of the Company’s outstanding foreign currency derivative contracts was $9.4 billion as summarized below: 
16

 Foreign Currency AmountNotional Contract Value in USD
CurrencyBuySellBuySell
 (In millions)
Cash Flow Hedges   
CNY4,008  $620 $ 
HUF38,453  124  
JPY33,525  300  
MXN6,533  320  
MYR482 210 115 50 
OtherN/AN/A227 68 
   1,706 118 
Other Foreign Currency Contracts
BRL11 717 2 132 
CAD106 65 83 51 
CNY3,468  535  
EUR1,851 1,989 2,153 2,319 
GBP60 83 81 112 
HUF73,443 60,446 237 195 
ILS582 95 181 30 
INR