SAN JOSE, Calif., Oct. 27, 2021 /PRNewswire/ -- Flex (NASDAQ:
FLEX) today announced results for its second quarter ended
October 1, 2021.
Second Quarter Fiscal Year 2022 Highlights:
- Net Sales: $6.2 billion
- GAAP Operating Income: $237
million
- Adjusted Operating Income: $286
million
- GAAP Net Income: $336
million
- Adjusted Net Income: $233
million
- GAAP Earnings Per Share: $0.69
which includes $0.30 non-cash income
related to a favorable operational tax ruling
- Adjusted Earnings Per Share: $0.48
An explanation and reconciliation of non-GAAP financial measures
to GAAP financial measures is presented in Schedules II and V
attached to this press release.
"Our fiscal second quarter was another strong result for Flex,
achieving year over year revenue growth in our Agility and
Reliability segments, as well as EPS and margin expansion. I would
like to thank our team for their exceptional execution, managing
through the supply chain challenges," said Revathi Advaithi, Flex
Chief Executive Officer. "We remain focused on driving profitable
growth and margin expansion through organic and inorganic
investments."
Third Quarter Fiscal 2022 Guidance
- Revenue: $6.1 billion to
$6.5 billion
- GAAP Operating Income: $210
million to $250 million
- Adjusted Operating Income: $250
million to $290 million
- GAAP EPS: $0.30 to $0.36 which includes $0.05 for stock-based compensation expense and
$0.03 for net intangible
amortization
- Adjusted EPS: $0.38 to
$0.44
Fiscal Year 2022 Guidance Updated
- Revenue: $24.8 billion to
$25.8 billion
- GAAP EPS: $1.71 to $1.86 which includes $0.19 for stock-based compensation expense and
$0.11 for net intangible amortization
offset by ($0.31) for restructuring
and other gains primarily related to $0.30 non-cash income from a favorable
operational tax ruling recorded in Q2FY22
- Adjusted EPS: $1.70 to
$1.85
Webcast and Conference Call
The Flex management team will host a conference call today at
1:30 PM (PT) / 4:30 PM (ET), to review second quarter fiscal
2022 results. A live webcast of the event and slides will be
available on the Flex Investor Relations website at
http://investors.flex.com. An audio replay and transcript will also
be available after the event on the Flex Investor Relations
website.
About Flex
Flex (Reg. No. 199002645H) 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 30 countries and responsible, sustainable
operations, Flex delivers technology innovation, supply chain, and
manufacturing solutions to diverse industries and end markets.
Contacts
Investors & Analysts
David Rubin
Vice President, Investor Relations
(408) 577-4632
David.Rubin@flex.com
Media & Press
Mark Plungy
Director, Corporate Integrated Communications
(408) 442-1691
Mark.Plungy@flex.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. securities laws, including: statements related
to future expected revenues and earnings per share; our planned
acquisition of Anord Mardix, the expected timing for the closing of
the acquisition, expected benefits of the acquisition and Anord
Mardix's expected impact on our financial results; and our
consideration of alternatives relating to our Nextracker business.
These forward-looking statements involve risks and uncertainties
that could cause the actual results to differ materially from those
anticipated by these forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking
statements. These risks include: the effects of the COVID-19
pandemic on our business, results of operations and financial
condition; that we may not achieve our expected future revenues and
earnings; the effects that the current macroeconomic environment
could have on our business and demand for our products; the impact
of component shortages and logistical constraints, including their
impact on our revenues; uncertainties and risks relating to our
ability to successfully complete a transaction for our Nextracker
business, including the potential initial public offering of our
Nextracker business, including the possibility that we may not be
able to consummate the transaction on the expected timeline or at
all, or that we will achieve the anticipated benefits of the
transaction; the possibility that regulatory and other approvals
and conditions to our acquisition of Anord Mardix are not received
or satisfied on a timely basis or at all; the possibility that we
may not fully realize the projected benefits of the acquisition;
the possibility that Anord Mardix's revenue may not meet
expectations; changes in the anticipated timing for closing the
acquisition; business disruption during the pendency of or
following the acquisition; diversion of management time on
acquisition-related issues; the reaction of customers and other
persons to the acquisition; other events that could adversely
impact the completion of the acquisition or the expected benefits
of the acquisition, including the ongoing COVID-19 pandemic and
other industry or economic conditions outside of our control; the
effects that current credit and market conditions could have on the
liquidity and financial condition of our customers and suppliers,
including any impact on their ability to meet their contractual
obligations to us; the challenges of effectively managing our
operations, including our ability to control costs and manage
changes in our operations; litigation and regulatory investigations
and proceedings; our compliance with legal and regulatory
requirements; the possibility that benefits of the Company's
restructuring actions may not materialize as expected; that the
expected revenue and margins from recently launched programs may
not be realized; our dependence on industries that continually
produce technologically advanced products with short product life
cycles; the short-term nature of our customers' commitments and
rapid changes in demand may cause supply chain and other issues
which adversely affect our operating results; our dependence on a
small number of customers; our industry is extremely competitive;
we may be exposed to financially troubled customers or suppliers;
geopolitical risk, including the termination and renegotiation of
international trade agreements and trade policies, including the
impact of tariffs and related regulatory actions; the success of
certain of our activities depends on our ability to protect our
intellectual property rights and we may be exposed to claims of
infringement or breach of license agreements; a breach of our IT or
physical security systems, or violation of data privacy laws, may
cause us to incur significant legal and financial exposure; we may
be exposed to product liability and product warranty liability; and
that recently proposed changes or future changes in tax laws in
certain jurisdictions where we operate could materially impact our
tax expense. In addition, the COVID-19 pandemic increases the
likelihood and potential severity of many of the foregoing
risks.
Additional information concerning these, and other risks is
described under "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
annual report on Form 10-K for the fiscal year ended March 31, 2021 and in subsequent quarterly
reports on Form 10-Q. The forward-looking statements in this press
release are based on current expectations and Flex assumes no
obligation to update these forward-looking statements. Our share
repurchase program does not obligate the Company to repurchase a
specific number of shares and may be suspended or terminated at any
time without prior notice.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities. Any
securities to be offered in any offering may not be sold nor may
offers to buy be accepted prior to the time a registration
statement becomes effective.
SCHEDULE
I
|
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(2)
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Three-Month
Periods Ended
|
|
|
October 1,
2021
|
|
September 25,
2020
|
GAAP:
|
|
|
|
|
Net sales
|
$
|
6,229
|
|
|
$
|
5,985
|
|
|
Cost of
sales
|
5,755
|
|
|
5,566
|
|
|
Restructuring
charges
|
9
|
|
|
24
|
|
|
Gross
profit
|
465
|
|
|
395
|
|
|
Selling, general and
administrative expenses
|
213
|
|
|
193
|
|
|
Restructuring
charges
|
—
|
|
|
11
|
|
|
Intangible
amortization
|
15
|
|
|
16
|
|
|
Operating
income
|
237
|
|
|
175
|
|
|
Interest and other,
net
|
(134)
|
|
|
22
|
|
|
Income before income
taxes
|
371
|
|
|
153
|
|
|
Provision for income
taxes
|
35
|
|
|
40
|
|
|
Net income
|
$
|
336
|
|
|
$
|
113
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
GAAP
|
$
|
0.69
|
|
|
$
|
0.22
|
|
|
Non-GAAP
|
$
|
0.48
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
Diluted shares used
in computing per share amounts
|
487
|
|
|
504
|
|
|
|
|
|
|
|
See Schedule II for
the reconciliation of GAAP to non-GAAP financial measures. See the
accompanying notes on Schedule V attached to this press
release.
|
|
|
|
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(2)
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Six-Month Periods
Ended
|
|
|
October 1,
2021
|
|
September 25,
2020
|
GAAP:
|
|
|
|
|
Net sales
|
$
|
12,571
|
|
|
$
|
11,138
|
|
|
Cost of
sales
|
11,625
|
|
|
10,406
|
|
|
Restructuring
charges
|
9
|
|
|
34
|
|
|
Gross
profit
|
937
|
|
|
698
|
|
|
Selling, general and
administrative expenses
|
414
|
|
|
384
|
|
|
Restructuring
charges
|
—
|
|
|
11
|
|
|
Intangible
amortization
|
30
|
|
|
31
|
|
|
Operating
income
|
493
|
|
|
272
|
|
|
Interest and other,
net
|
(111)
|
|
|
51
|
|
|
Income before income
taxes
|
604
|
|
|
221
|
|
|
Provision for income
taxes
|
62
|
|
|
56
|
|
|
Net income
|
$
|
542
|
|
|
$
|
165
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
GAAP
|
$
|
1.10
|
|
|
$
|
0.33
|
|
|
Non-GAAP
|
$
|
0.94
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
Diluted shares used
in computing per share amounts
|
493
|
|
|
503
|
|
|
|
|
|
|
|
See Schedule II for
the reconciliation of GAAP to non-GAAP financial measures. See the
accompanying notes on Schedule V attached to this press
release.
|
|
|
|
|
|
SCHEDULE
II
|
|
FLEX
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(1)(2)
|
(In millions,
except per share amounts) *
|
|
|
|
|
|
|
|
Three-Month
Periods Ended
|
|
|
October 1,
2021
|
|
September 25,
2020
|
|
|
|
|
|
GAAP operating
income
|
$
237
|
|
|
$
175
|
|
|
Intangible
amortization
|
15
|
|
|
16
|
|
|
Stock-based
compensation expense
|
24
|
|
|
24
|
|
|
Restructuring
charges
|
9
|
|
|
35
|
|
|
Legal and
other
|
1
|
|
|
(3)
|
|
Non-GAAP operating
income
|
$
|
286
|
|
|
$
|
247
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
35
|
|
|
$
|
40
|
|
|
Intangible
amortization benefit
|
2
|
|
|
2
|
|
|
Other tax related
adjustments
|
(3)
|
|
|
(2)
|
|
|
Tax benefit on
restructuring and other
|
—
|
|
|
2
|
|
Non-GAAP provision
for income taxes
|
$
|
34
|
|
|
$
|
42
|
|
|
|
|
|
|
GAAP net
income
|
$
|
336
|
|
|
$
|
113
|
|
|
Intangible
amortization
|
15
|
|
|
16
|
|
|
Stock-based
compensation expense
|
24
|
|
|
24
|
|
|
Restructuring
charges
|
9
|
|
|
35
|
|
|
Legal and
other
|
1
|
|
|
(3)
|
|
|
Interest and other,
net
|
(152)
|
|
|
(3)
|
|
|
Adjustments for
taxes
|
1
|
|
|
(2)
|
|
Non-GAAP net
income
|
$
|
233
|
|
|
$
|
180
|
|
Diluted earnings
per share:
|
|
GAAP
|
$
|
0.69
|
|
|
$
|
0.22
|
|
|
Non-GAAP
|
$
|
0.48
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
See the accompanying
notes on Schedule V attached to this press release.
|
|
*Amounts may not sum
due to rounding
|
|
|
|
|
|
|
|
|
FLEX
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(1)(2)
|
(In millions,
except per share amounts) *
|
|
|
|
|
|
|
|
Six-Month Periods
Ended
|
|
|
October 1,
2021
|
|
September 25,
2020
|
|
|
|
|
|
GAAP operating
income
|
$
493
|
|
|
$
272
|
|
|
Intangible
amortization
|
30
|
|
|
31
|
|
|
Stock-based
compensation expense
|
44
|
|
|
37
|
|
|
Restructuring
charges
|
9
|
|
|
45
|
|
|
Legal and
other
|
—
|
|
|
25
|
|
Non-GAAP operating
income
|
$
|
576
|
|
|
$
|
410
|
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
62
|
|
|
$
|
56
|
|
|
Intangible
amortization benefit
|
4
|
|
|
4
|
|
|
Other tax related
adjustments
|
3
|
|
|
(3)
|
|
|
Tax benefit on
restructuring and other
|
—
|
|
|
4
|
|
Non-GAAP provision
for income taxes
|
$
|
70
|
|
|
$
|
60
|
|
|
|
|
|
|
GAAP net
income
|
$
|
542
|
|
|
$
|
165
|
|
|
Intangible
amortization
|
30
|
|
|
31
|
|
|
Stock-based
compensation expense
|
44
|
|
|
37
|
|
|
Restructuring
charges
|
9
|
|
|
45
|
|
|
Legal and
other
|
—
|
|
|
25
|
|
|
Interest and other,
net
|
(155)
|
|
|
(2)
|
|
|
Adjustments for
taxes
|
(7)
|
|
|
(5)
|
|
Non-GAAP net
income
|
$
|
462
|
|
|
$
|
296
|
|
Diluted earnings
per share:
|
|
GAAP
|
$
|
1.10
|
|
|
$
|
0.33
|
|
|
Non-GAAP
|
$
|
0.94
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
See the accompanying
notes on Schedule V attached to this press release.
|
|
*Amounts may not sum
due to rounding
|
|
|
|
|
|
|
|
|
SCHEDULE
III
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS (2)
|
(In
millions)
|
|
|
|
|
|
|
|
As of October 1,
2021
|
|
As of March 31,
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,458
|
|
|
$
|
2,637
|
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
3,505
|
|
|
3,959
|
|
|
Contract
assets
|
392
|
|
|
282
|
|
|
Inventories
|
5,168
|
|
|
3,895
|
|
|
Other current
assets
|
660
|
|
|
590
|
|
Total current
assets
|
12,183
|
|
|
11,363
|
|
|
|
|
|
Property and
equipment, net
|
2,100
|
|
|
2,097
|
|
Operating lease
right-of-use assets, net
|
612
|
|
|
642
|
|
Goodwill
|
1,085
|
|
|
1,090
|
|
Other intangible
assets, net
|
182
|
|
|
213
|
|
Other
assets
|
549
|
|
|
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
payable
|
5,848
|
|
|
5,247
|
|
|
Accrued
payroll
|
450
|
|
|
473
|
|
|
Deferred revenue and
customer working capital advances
|
1,146
|
|
|
848
|
|
|
Other current
liabilities
|
960
|
|
|
998
|
|
Total current
liabilities
|
8,688
|
|
|
7,834
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
3,501
|
|
|
3,515
|
|
Operating lease
liabilities, non-current
|
534
|
|
|
562
|
|
Other
liabilities
|
474
|
|
|
489
|
|
|
|
|
|
|
Total shareholders'
equity
|
3,514
|
|
|
3,436
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
16,711
|
|
|
$
|
15,836
|
|
|
|
|
|
|
|
See the accompanying
notes on Schedule V attached to this press release.
|
SCHEDULE
IV
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
|
|
|
|
|
|
|
Six-Month Periods
Ended
|
|
|
October 1,
2021
|
|
September 25,
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
$
|
542
|
|
|
$
|
165
|
|
|
Depreciation,
amortization and other impairment charges
|
236
|
|
|
283
|
|
|
Changes in working
capital and other, net
|
(264)
|
|
|
(813)
|
|
|
Net cash provided by
(used in) operating activities
|
514
|
|
|
(365)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchases of property
and equipment
|
(210)
|
|
|
(185)
|
|
|
Proceeds from the
disposition of property and equipment
|
5
|
|
|
14
|
|
|
Other investing
activities, net
|
2
|
|
|
13
|
|
|
Net cash used in
investing activities
|
(203)
|
|
|
(158)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from bank
borrowings and long-term debt
|
20
|
|
|
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 period
|
2,637
|
|
|
1,923
|
|
|
Cash and cash
equivalents, end of period
|
$
|
2,458
|
|
|
$
|
2,359
|
|
|
|
|
|
|
SCHEDULE V
FLEX AND SUBSIDIARIES
NOTES TO
SCHEDULES I, II, and III
(1) To supplement Flex's unaudited selected financial data
presented consistent with Generally Accepted Accounting Principles
("GAAP"), the Company discloses certain non-GAAP financial measures
that exclude certain charges and gains, including non-GAAP
operating income, non-GAAP net income and non-GAAP net income per
diluted share. These supplemental measures exclude
restructuring charges, customer-related asset impairments
(recoveries), stock-based compensation expense, intangible
amortization, other discrete events as applicable and the related
tax effects. These non-GAAP measures are not in accordance with or
an alternative for GAAP and may be different from non-GAAP measures
used by other companies. We believe that these non-GAAP measures
have limitations in that they do not reflect all of the amounts
associated with Flex's results of operations as determined in
accordance with GAAP and that these measures should only be used to
evaluate Flex's results of operations in conjunction with the
corresponding GAAP measures. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for the most directly comparable GAAP
measures. We compensate for the limitations of non-GAAP
financial measures by relying upon GAAP results to gain a complete
picture of the Company's performance.
In calculating non-GAAP financial measures, we exclude certain
items to facilitate a review of the comparability of the Company's
operating performance on a period-to-period basis because such
items are not, in our view, related to the Company's ongoing
operational performance. We use non-GAAP measures to evaluate the
operating performance of our business, for comparison with
forecasts and strategic plans, for calculating return on
investment, and for benchmarking performance externally against
competitors. In addition, management's incentive compensation is
determined using certain non-GAAP measures. Also, when
evaluating potential acquisitions, we exclude certain of the items
described below from consideration of the target's performance and
valuation. Since we find these measures to be useful, we
believe that investors benefit from seeing results "through the
eyes" of management in addition to seeing GAAP results. We
believe that these non-GAAP measures, when read in conjunction with
the Company's GAAP financials, provide useful information to
investors by offering:
- the ability to make more meaningful period-to-period
comparisons of the Company's on-going operating results;
- the ability to better identify trends in the Company's
underlying business and perform related trend analyses;
- a better understanding of how management plans and measures the
Company's underlying business; and
- an easier way to compare the Company's operating results
against analyst financial models and operating results of
competitors that supplement their GAAP results with non-GAAP
financial measures.
The following are explanations of each of the adjustments that
we incorporate into non-GAAP measures, as well as the reasons for
excluding each of these individual items in the reconciliations of
these non-GAAP financial measures:
Stock-based compensation
expense consists of non-cash charges for the estimated
fair value of stock options and unvested restricted share unit
awards granted to employees and assumed in business acquisitions.
The Company believes that the exclusion of these charges provides
for more accurate comparisons of its operating results to peer
companies due to the varying available valuation methodologies,
subjective assumptions and the variety of award types. In addition,
the Company believes it is useful to investors to understand the
specific impact stock-based compensation expense has on its
operating results.
Intangible
amortization consists primarily of non-cash charges that
can be impacted by, among other things, the timing and magnitude of
acquisitions. The Company considers its operating results without
these charges when evaluating its ongoing performance and
forecasting its earnings trends, and therefore excludes such
charges when presenting non-GAAP financial measures. The Company
believes that the assessment of its operations excluding these
costs is relevant to its assessment of internal operations and
comparisons to the performance of its competitors.
Restructuring charges
include severance for rationalization at existing sites and
corporate SG&A functions as well as asset impairment, and other
charges related to the closures and consolidations of certain
operating sites and targeted activities to restructure the
business. These costs may vary in size based on the Company's
initiatives and are not directly related to ongoing or core
business results, and do not reflect expected future operating
expenses. These costs are excluded by the Company's management in
assessing current operating performance and forecasting its
earnings trends and are therefore excluded by the Company from its
non-GAAP measures.
In order to support the Company's
strategy and build a sustainable organization, and after
considering that the economic recovery from the pandemic would be
slower than anticipated, the Company identified certain structural
changes to restructuring the business in fiscal year 2021. These
restructuring actions eliminated non-core activities primarily
within the Company's corporate function, aligned the Company's cost
structure with its reorganizing and optimizing of its operations
model along its two reporting segments, and further sharpened its
focus to winning business in end markets where it had competitive
advantages and deep domain expertise. During the three and
six-month periods ended September 25,
2020, the Company recognized approximately $35 million and $45
million of restructuring charges respectively, most of which
related to employee severance.
Legal and other consist
primarily of costs not directly related to core business results
and may include matters relating to commercial disputes, government
regulatory and compliance, intellectual property, antitrust, tax,
employment or shareholder issues, product liability claims and
other issues on a global basis as well as customer related asset
recoveries. During the first quarter of fiscal year 2021, the
Company accrued for certain loss contingencies where losses are
considered probable and estimable. These costs are excluded by the
Company's management in assessing current operating performance and
forecasting its earnings trends and are therefore excluded by the
Company from its non-GAAP measures.
Interest and other,
net consists of various other types of items that are not
directly related to ongoing or core business results, such as the
gain or losses related to certain divestitures, debt extinguishment
costs and impairment charges or gains associated with certain
non-core investments. The Company excludes these items because they
are not related to the Company's ongoing operating performance or
do not affect core operations. Excluding these amounts provides
investors with a basis to compare Company performance against the
performance of other companies without this variability.
In September 2021, the Company received approval
from the relevant tax authorities in Brazil of the Credit Habilitation request
related to certain federal operational tax credit and the Company
recorded a total gain of 809.6 million Brazilian reals
(approximately USD $149.3 million based on the exchange rate as
of October 1, 2021) under interest
and other, net in the condensed statements of operations for the
three and six-month periods ended October 1,
2021. The total gain recorded included credits from
February 2003 to September 2021, net of additional taxes, as the
Credit Habilitation received covering the period from February 2003 to December
2019 resolved any uncertainty regarding the Company's
ability to claim such credits. This gain is non-cash and can only
be used to offset certain current and future tax obligations.
Adjustment for
taxes relates to the tax effects of the various
adjustments that we incorporate into non-GAAP measures in order to
provide a more meaningful measure on non-GAAP net income and
certain adjustments related to non-recurring settlements of tax
contingencies or other non-recurring tax charges, when
applicable.
(2) 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 statement of
operations and balance sheets. The foregoing changes in
presentation had no impact on the Company's results of operations
or cash flows.
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SOURCE Flex