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SEGMENT REPORTING
 3 Months Ended
Jun. 27, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company reports its financial performance based on two operating and reportable segments, Flex Agility Solutions and Flex Reliability Solutions, and analyzes operating income as the measure of segment profitability. The determination of these segments is based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics.
An operating segment's performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, certain restructuring charges, customer related asset impairment, legal and other, interest expense, interest income, other charges (income), net, and equity in earnings of unconsolidated affiliates. A portion of depreciation is allocated to the respective segments, together with other general corporate, research and development and administrative expenses.
The Company's Chief Executive Officer is our Chief Operating Decision Maker ("CODM") who uses segment income in evaluating how we allocate resources, assess performance and make strategic and operational decisions.
Selected financial information by segment is in the table below.
Three Months Ended June 27, 2025FASFRSCorporate & OtherTotal
Net Sales$3,691 $2,884 $— $6,575 
Cost of inventory(2,732)(1,927)— (4,659)
Manufacturing expenses(634)(681)(5)(1,320)
Segment selling, general and administrative expenses(85)(104)(12)(201)
      Segment income$240 $172 $(17)$395 
Reconciling items:
Intangible amortization$21 
Stock-based compensation34 
Restructuring charges23 
Legal and other (1)6 
Interest expenses51 
Interest income13 
Other charges (income), net7 
Equity in earnings (losses) of unconsolidated affiliates(20)
Income before income taxes$246 
(1)Legal and other consists of costs not directly related to core business results and including 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 acquisition related costs and asset impairment. During the first quarter of fiscal year 2026, legal costs were primarily related to costs from acquisitions occurring in fiscal year 2025 and the first quarter of fiscal year 2026.
Three Months Ended June 28, 2024FASFRSCorporate & OtherTotal
Net Sales$3,365 $2,949 $— $6,314 
Cost of inventory(2,496)(2,003)— (4,499)
Manufacturing expenses(613)(699)(8)(1,320)
Segment selling, general and administrative expenses(77)(100)(12)(189)
      Segment income$179 $147 $(20)$306 
Reconciling items:
Intangible amortization$16 
Stock-based compensation32 
Restructuring charges25 
Interest expenses56 
Interest income16 
Other charges (income), net2 
Equity in earnings (losses) of unconsolidated affiliates1 
Income before income taxes$192 
Corporate and other primarily includes corporate service costs that are not included in the CODM's assessment of the performance of each of the identified reportable segments.
The Company provides an overall platform of assets and services, which the segments utilize for the benefit of their various customers. The shared assets and services are contained within the Company's global manufacturing and design operations and include manufacturing and design facilities. Most of the underlying manufacturing and design assets are co-mingled in the operating campuses and are compatible to operate across segments and highly interchangeable throughout the platform. Given the highly interchangeable nature of the assets, they are not separately identified by segment nor reported by segment to the Company's CODM.
Property and equipment on a segment basis is not separately identified and is not internally reported by segment to the Company's CODM as described above.
Total depreciation expense, including amounts allocated to the reportable segments and Corporate and Other for the three-month periods ended June 27, 2025 and June 28, 2024 as follows:
Three-Month Periods Ended
June 27, 2025June 28, 2024
(In millions)
Depreciation expense:
   Flex Agility Solutions$50 $44 
   Flex Reliability Solutions62 62 
   Corporate and Other3 4 
        Total depreciation expense$115 $110