UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period Ended March 31, 2010
 o
    
    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 0-7491
 
 MOLEX INCORPORATED
  Delaware
    
    36-2369491(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 2222 Wellington Court, Lisle, Illinois 60532
 
  þ o
  o o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
  Common Stock
    95,560,076Class A Common Stock
    78,373,570Class B Common Stock
    94,225




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##### 



Molex Incorporated
 INDEX
 PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Consolidated Balance Sheets as of
March 31, 2010 and June 30, 2009
    
    
    3Condensed Consolidated Statements of Operations for the
three and nine months ended March 31, 2010 and 2009
    
    
    4Condensed Consolidated Statements of Cash Flows for the
nine months ended March 31, 2010 and 2009
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations
    
    
    15Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    27Item 4. Controls and Procedures
    
    
    28PART II  OTHER INFORMATIONItem 1A. Risk Factors
    
    
    29Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    29Item 6. Exhibits
    
    
    30SIGNATURES
    
    
    31Section 302 Certification of Chief Executive OfficerSection 302 Certification of Chief Financial OfficerSection 906 Certification of Chief Executive OfficerSection 906 Certification of Chief Financial Officer
 2




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##### 



PART I
 Item 1. Financial Statements
 Molex Incorporated
Condensed Consolidated Balance Sheets
 Mar. 31,
    
    
    June 30,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    431,754
    
    
    $
    424,707Marketable securities
    
    
    11,636
    
    
    
    43,234Accounts receivable, less allowances of $42,445 and $32,593 respectively
    
    
    657,280
    
    
    
    528,907Inventories
    
    
    419,864
    
    
    
    354,337Deferred income taxes
    
    
    42,793
    
    
    
    27,939Other current assets
    
    
    70,093
    
    
    
    68,449Total current assets
    
    
    1,633,420
    
    
    
    1,447,573Property, plant and equipment, net
    
    
    1,054,575
    
    
    
    1,080,417Goodwill
    
    
    130,099
    
    
    
    128,494Non-current deferred income taxes
    
    
    78,163
    
    
    
    89,332Other assets
    
    
    189,549
    
    
    
    196,341Total assets
    
    $
    3,085,806
    
    
    $
    2,942,157LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Current portion of long-term debt and short-term borrowings
    
    $
    103,048
    
    
    $
    224,340Accounts payable
    
    
    325,398
    
    
    
    266,633Accrued expenses
    
    
    253,121
    
    
    
    218,429Income taxes payable
    
    
    7,493
    
    
    
    4,750Total current liabilities
    
    
    689,060
    
    
    
    714,152Other non-current liabilities
    
    
    19,330
    
    
    
    21,862Accrued pension and postretirement benefits
    
    
    114,949
    
    
    
    113,268Long-term debt
    
    
    182,459
    
    
    
    30,311Total liabilities
    
    
    1,005,798
    
    
    
    879,593Commitments and contingenciesStockholders equity:Common stock
    
    
    11,193
    
    
    
    11,138Paid-in capital
    
    
    631,848
    
    
    
    601,459Retained earnings
    
    
    2,307,993
    
    
    
    2,355,991Treasury stock
    
    
    (1,097,518
    )
    
    
    (1,089,322
    )Accumulated other comprehensive income
    
    
    226,492
    
    
    
    183,298Total stockholders equity
    
    
    2,080,008
    
    
    
    2,062,564Total liabilities and stockholders equity
    
    $
    3,085,806
    
    
    $
    2,942,157
  3




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##### 



Molex Incorporated
Condensed Consolidated Statements of Operations
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Net revenue
    
    $
    756,294
    
    
    $
    505,539
    
    
    $
    2,159,903
    
    
    $
    2,011,252Cost of sales
    
    
    520,564
    
    
    
    412,143
    
    
    
    1,520,218
    
    
    
    1,492,312Gross profit
    
    
    235,730
    
    
    
    93,396
    
    
    
    639,685
    
    
    
    518,940Selling, general and administrative
    
    
    156,374
    
    
    
    139,071
    
    
    
    452,108
    
    
    
    450,034Restructuring costs and asset impairments
    
    
    9,068
    
    
    
    44,344
    
    
    
    90,596
    
    
    
    105,904Loss on unauthorized activities in Molex Japan
    
    
    30,967
    
    
    
    
    
    
    
    30,967
    
    
    
    Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    93,140Total operating expenses
    
    
    196,409
    
    
    
    183,415
    
    
    
    573,671
    
    
    
    649,078Income (loss) from operations
    
    
    39,321
    
    
    
    (90,019
    )
    
    
    66,014
    
    
    
    (130,138
    )Interest (expense) income, net
    
    
    (2,298
    )
    
    
    251
    
    
    
    (4,584
    )
    
    
    2,287Other (expense) income
    
    
    (2,721
    )
    
    
    3,259
    
    
    
    62
    
    
    
    24,252Total other (expense) income
    
    
    (5,019
    )
    
    
    3,510
    
    
    
    (4,522
    )
    
    
    26,539Income (loss) before income taxes
    
    
    34,302
    
    
    
    (86,509
    )
    
    
    61,492
    
    
    
    (103,599
    )Income taxes
    
    
    10,476
    
    
    
    (27,909
    )
    
    
    29,975
    
    
    
    (2,052
    )Net income (loss)
    
    $
    23,826
    
    
    $
    (58,600
    )
    
    $
    31,517
    
    
    $
    (101,547
    )Earnings (loss) per share:Basic
    
    $
    0.14
    
    
    $
    (0.34
    )
    
    $
    0.18
    
    
    $
    (0.58
    )Diluted
    
    $
    0.14
    
    
    $
    (0.34
    )
    
    $
    0.18
    
    
    $
    (0.58
    )Dividends declared per share
    
    $
    0.1525
    
    
    $
    0.1525
    
    
    $
    0.4575
    
    
    $
    0.4575Average common shares outstanding:Basic
    
    
    173,858
    
    
    
    173,228
    
    
    
    173,689
    
    
    
    174,985Diluted
    
    
    174,838
    
    
    
    173,228
    
    
    
    174,523
    
    
    
    174,985
  4




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##### 



Molex Incorporated
Condensed Consolidated Statements of Cash Flows
 Nine Months EndedMarch 31,2010
    
    
    2009Operating activities:Net income (loss)
    
    $
    31,517
    
    
    $
    (101,547
    )Add non-cash items included in net income (loss):Depreciation and amortization
    
    
    180,699
    
    
    
    190,085Share-based compensation
    
    
    21,024
    
    
    
    19,393Goodwill impairment
    
    
    
    
    
    
    93,140Non-cash restructuring and other costs, net
    
    
    20,041
    
    
    
    20,041Other non-cash items
    
    
    21,817
    
    
    
    (10,649
    )Changes in assets and liabilities:Accounts receivable
    
    
    (122,127
    )
    
    
    282,082Inventories
    
    
    (62,059
    )
    
    
    93,916Accounts payable
    
    
    48,808
    
    
    
    (167,781
    )Other current assets and liabilities
    
    
    31,147
    
    
    
    (50,148
    )Other assets and liabilities
    
    
    11,059
    
    
    
    (56,947
    )Cash provided from operating activities
    
    
    181,926
    
    
    
    311,585Investing activities:Capital expenditures
    
    
    (150,001
    )
    
    
    (127,688
    )Proceeds from sales of property, plant and equipment
    
    
    8,082
    
    
    
    7,561Proceeds from sales or maturities of marketable securities
    
    
    47,339
    
    
    
    11,694Purchases of marketable securities
    
    
    (15,259
    )
    
    
    (33,399
    )Acquisitions
    
    
    (10,097
    )
    
    
    (73,447
    )Other investing activities
    
    
    (5,308
    )
    
    
    655Cash used for investing activities
    
    
    (125,244
    )
    
    
    (214,624
    )Financing activities:Proceeds from revolving credit facility and short term loans
    
    
    154,000
    
    
    
    115,000Payments on revolving credit facility
    
    
    (79,000
    )
    
    
    (105,000
    )Net change in long-term debt
    
    
    (53,194
    )
    
    
    47,300Cash dividends paid
    
    
    (79,420
    )
    
    
    (73,222
    )Exercise of stock options
    
    
    2,257
    
    
    
    1,233Purchase of treasury stock
    
    
    
    
    
    
    (76,342
    )Other financing activities
    
    
    (2,056
    )
    
    
    (870
    )Cash used for financing activities
    
    
    (57,413
    )
    
    
    (91,901
    )Effect of exchange rate changes on cash
    
    
    7,778
    
    
    
    (23,019
    )Net increase (decrease) in cash and cash equivalents
    
    
    7,047
    
    
    
    (17,959
    )Cash and cash equivalents, beginning of period
    
    
    424,707
    
    
    
    475,507Cash and cash equivalents, end of period
    
    $
    431,754
    
    
    $
    457,548
  5




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##### 



Molex Incorporated
Notes to Condensed Consolidated Financial Statements
 1. Basis of Presentation
    2. Loss on Unauthorized Activities in Molex Japan
   
    
    The amount of unauthorized loans outstanding as of March 31, 2010 was ¥16.0 billion
($173.0 million). The dates, terms and amounts of the original borrowings are unclear.
These unauthorized loans were not recorded in Molexs books and records.
    
    The amount of misappropriated cash was ¥1.864 billion ($20.2 million) as of March
31, 2010. Molex Japan repaid a ¥1.0 billion ($10.8 million) unauthorized loan on April
5, 2010. As of March 31, 2010, we recognized an expense for the amount of
misappropriated cash and repayment of the unauthorized loan pending the investigation
of the unauthorized activity.
  6




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##### 



3. Restructuring Costs and Asset Impairments
    Custom &
    
    
    CorporateConnector
    
    
    Electrical
    
    
    and Other
    
    
    TotalCumulative costs at June 30, 2009
    
    $
    116,066
    
    
    $
    38,555
    
    
    $
    43,278
    
    
    $
    197,899Net restructuring costs during the first quarter:Severance costs
    
    
    37,469
    
    
    
    4,639
    
    
    
    595
    
    
    
    42,703Asset impairments
    
    
    13,191
    
    
    
    
    
    
    
    
    
    
    
    13,191Cumulative restructuring costs and asset
impairments at Sept. 30, 2009
    
    $
    166,726
    
    
    $
    43,194
    
    
    $
    43,873
    
    
    $
    253,793Net restructuring costs during the second quarter:Severance costs
    
    
    12,209
    
    
    
    3,189
    
    
    
    3,455
    
    
    
    18,853Asset impairments
    
    
    6,119
    
    
    
    459
    
    
    
    204
    
    
    
    6,782Cumulative restructuring costs and asset
impairments at Dec. 31, 2009
    
    $
    185,054
    
    
    $
    46,842
    
    
    $
    47,532
    
    
    $
    279,428Net restructuring costs during the third quarter:Severance costs
    
    
    6,459
    
    
    
    2,490
    
    
    
    
    
    
    
    8,949Asset impairments
    
    
    85
    
    
    
    
    
    
    
    34
    
    
    
    119Cumulative restructuring costs and asset
impairments at Mar. 31, 2010
    
    $
    191,598
    
    
    $
    49,332
    
    
    $
    47,566
    
    
    $
    288,496
 7




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##### 



Balance at June 30, 2009
    
    $
    69,928Cash payments
    
    
    (17,677
    )Charges to expense
    
    
    46,604Non-cash related costs
    
    
    3,598Balance at September 30, 2009
    
    $
    102,453Cash payments
    
    
    (31,754
    )Charges to expense
    
    
    18,853Non-cash related costs
    
    
    (5,538
    )Balance at December 31, 2009
    
    $
    84,014Cash payments
    
    
    (33,074
    )Charges to expense
    
    
    8,949Non-cash related costs
    
    
    (3,218
    )Balance at March 31, 2010
    
    $
    56,671
  4. Acquisitions
  5. Earnings (Loss) Per Share
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Basic weighted average common shares outstanding
    
    
    173,858
    
    
    
    173,228
    
    
    
    173,689
    
    
    
    174,985Effect of dilutive stock options
    
    
    980
    
    
    
    
    
    
    
    834
    
    
    
    Diluted weighted average common shares outstanding
    
    
    174,838
    
    
    
    173,228
    
    
    
    174,523
    
    
    
    174,985
  8




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##### 



6. Comprehensive Income (Loss)
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss)
    
    $
    23,826
    
    
    $
    (58,600
    )
    
    $
    31,517
    
    
    $
    (101,547
    )Translation adjustments
    
    
    4,849
    
    
    
    (67,650
    )
    
    
    45,379
    
    
    
    (159,939
    )Accumulated actuarial loss
    
    
    
    
    
    
    
    
    
    
    (5,831
    )
    
    
    Unrealized investment gain (loss)
    
    
    708
    
    
    
    5,564
    
    
    
    (2,185
    )
    
    
    (5,952
    )Total comprehensive income (loss)
    
    $
    29,383
    
    
    $
    (120,686
    )
    
    $
    68,880
    
    
    $
    (267,438
    )
  7. Inventories
  Mar. 31,
    
    
    June 30,2010
    
    
    2009Raw materials
    
    $
    79,524
    
    
    $
    58,720Work in process
    
    
    134,493
    
    
    
    113,782Finished goods
    
    
    205,847
    
    
    
    181,835Total inventories
    
    $
    419,864
    
    
    $
    354,337
 8. Pensions and Other Postretirement Benefits
  9




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##### 



Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    1,990
    
    
    $
    2,066
    
    
    $
    5,970
    
    
    $
    6,198Interest cost
    
    
    2,041
    
    
    
    2,064
    
    
    
    6,123
    
    
    
    6,192Expected return on plan assets
    
    
    (1,696
    )
    
    
    (2,180
    )
    
    
    (5,089
    )
    
    
    (6,540
    )Amortization of prior service cost
    
    
    10
    
    
    
    11
    
    
    
    30
    
    
    
    33Recognized actuarial losses
    
    
    57
    
    
    
    62
    
    
    
    173
    
    
    
    186Amortization of transition obligation
    
    
    624
    
    
    
    106
    
    
    
    1,871
    
    
    
    318Curtailment adjustment
    
    
    
    
    
    
    1,151
    
    
    
    (3,849
    )
    
    
    1,151Benefit cost
    
    $
    3,026
    
    
    $
    3,280
    
    
    $
    5,229
    
    
    $
    7,538
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    271
    
    
    $
    611
    
    
    $
    813
    
    
    $
    1,833Interest cost
    
    
    621
    
    
    
    796
    
    
    
    1,863
    
    
    
    2,388Amortization of prior service cost
    
    
    (516
    )
    
    
    (160
    )
    
    
    (1,548
    )
    
    
    (480
    )Recognized actuarial losses
    
    
    175
    
    
    
    157
    
    
    
    525
    
    
    
    471Curtailment adjustment
    
    
    
    
    
    
    299
    
    
    
    
    
    
    
    (3,701
    )Benefit cost
    
    $
    551
    
    
    $
    1,703
    
    
    $
    1,653
    
    
    $
    511
 9. Debt
    10




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##### 



10. Income Taxes
    11. Fair Value Measurements
  Quoted Pricesin Active
    
    
    SignificantTotal
    
    
    Markets for
    
    
    Other
    
    
    SignificantMeasured
    
    
    Identical
    
    
    Observable
    
    
    Unobservableat Fair
    
    
    Assets
    
    
    Inputs
    
    
    InputsValue
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Marketable and available for sale securities
    
    $
    25,840
    
    
    $
    25,840
    
    
    $
    
    
    
    $
    Debt
    
    
    283,602
    
    
    
    
    
    
    
    283,602
    
    
    
    Derivative financial instruments, net
    
    
    4,381
    
    
    
    
    
    
    
    4,381
    
    
    
    
   12. New Accounting Pronouncements
    11




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##### 



13. Segments and Related Information
  
    
    The Connector segment designs and manufactures products for high-speed,
high-density, high signal-integrity applications as well as fine-pitch, low-profile
connectors for the consumer and commercial markets. It also designs and
manufactures products that withstand environments such as heat, cold, dust, dirt,
liquid and vibration for automotive and other transportation applications.
    
    The Custom & Electrical segment designs and manufactures integrated and
customizable electronic components across all industries that provide original,
differentiated solutions to customer requirements. It also leverages expertise in
the use of signal, power and interface technology in industrial automation and
other harsh environment applications.
 12




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##### 



Custom &
    
    CorporateConnector
    
    Electrical
    
    & Other
    
    TotalFor the three months ended:March 31, 2010:Revenues from external customers
    
    $
    540,822
    
    
    $
    215,103
    
    
    $
    369
    
    
    $
    756,294Income (loss) from operations
    
    
    26,934
    
    
    
    34,668
    
    
    
    (22,281
    )
    
    
    39,321Depreciation & amortization
    
    
    47,304
    
    
    
    8,309
    
    
    
    3,823
    
    
    
    59,436Capital expenditures
    
    
    52,866
    
    
    
    2,235
    
    
    
    1,580
    
    
    
    56,681March 31, 2009:Revenues from external customers
    
    $
    349,834
    
    
    $
    155,178
    
    
    $
    527
    
    
    $
    505,539Income (loss) from operations
    
    
    (51,477
    )
    
    
    586
    
    
    
    (39,128
    )
    
    
    (90,019
    )Depreciation & amortization
    
    
    51,410
    
    
    
    8,111
    
    
    
    4,215
    
    
    
    63,736Capital expenditures
    
    
    24,396
    
    
    
    2,985
    
    
    
    3,671
    
    
    
    31,052For the nine months ended:March 31, 2010:Revenues from external customers
    
    $
    1,564,960
    
    
    $
    594,011
    
    
    $
    932
    
    
    $
    2,159,903Income (loss) from operations
    
    
    76,996
    
    
    
    65,548
    
    
    
    (76,530
    )
    
    
    66,014Depreciation & amortization
    
    
    144,526
    
    
    
    25,007
    
    
    
    11,166
    
    
    
    180,699Capital expenditures
    
    
    131,944
    
    
    
    9,744
    
    
    
    8,313
    
    
    
    150,001March 31, 2009:Revenues from external customers
    
    $
    1,382,550
    
    
    $
    626,706
    
    
    $
    1,996
    
    
    $
    2,011,252Income (loss) from operations
    
    
    (112,362
    )
    
    
    36,749
    
    
    
    (54,525
    )
    
    
    (130,138
    )Depreciation & amortization
    
    
    151,857
    
    
    
    25,260
    
    
    
    12,968
    
    
    
    190,085Capital expenditures
    
    
    99,074
    
    
    
    15,613
    
    
    
    13,001
    
    
    
    127,688
  13




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##### 



Custom &
    
    CorporateConnector
    
    Electrical
    
    & Other
    
    TotalMarch 31, 2010
    
    $
    1,601,239
    
    
    $
    430,932
    
    
    $
    99,548
    
    
    $
    2,131,719June 30, 2009
    
    
    1,388,110
    
    
    
    390,906
    
    
    
    184,645
    
    
    
    1,963,661
  Mar. 31,
    
    
    June 30,2010
    
    
    2009Segment net assets
    
    $
    2,131,719
    
    
    $
    1,963,661Other current assets
    
    
    556,276
    
    
    
    564,329Non current assets
    
    
    397,811
    
    
    
    414,167Consolidated total assets
    
    $
    3,085,806
    
    
    $
    2,942,157
 14




---



##### 



Molex Incorporated
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operations
   Overview
   
    
    The Connector segment manufactures and sells products for high-speed,
high-density, high signal-integrity applications as well as fine-pitch, low-profile
connectors for the consumer and commercial markets. It also designs and
manufactures products that withstand environments such as heat, cold, dust, dirt,
liquid and vibration for automotive and other transportation applicants.
    
    The Custom & Electrical segment designs and manufactures integrated and
customizable electronic components across all industries that provide original,
differentiated solutions to customer requirements. It also leverages expertise in
the use of signal, power and interface technology in industrial automation and
other harsh environment applications.
   15




---



##### 



Loss on Unauthorized Activities in Molex Japan
   
    
    The amount of unauthorized loans outstanding as of March 31, 2010 was ¥16.0 billion
($173.0 million). The dates, terms and amounts of the original borrowings are unclear.
These unauthorized loans were not recorded in Molexs books and records.
    
    The amount of misappropriated cash was ¥1.864 billion ($20.2 million) as
of March 31, 2010. Molex Japan repaid a ¥1.0 billion ($10.8 million) unauthorized loan
on April 5, 2010. As of March 31, 2010, we recognized an expense for the amount of
misappropriated cash and repayment of the unauthorized loan pending the investigation
of the unauthorized activity.
 16




---



##### 



Critical Accounting Policies and Estimates
   17




---



##### 



Results of Operations
  Percentage
    
    
    
    
    
    
    Percentage2010
    
    
    of Revenue
    
    
    2009
    
    
    of RevenueNet revenue
    
    $
    756,294
    
    
    
    100.0
    %
    
    $
    505,539
    
    
    
    100.0
    %Cost of sales
    
    
    520,564
    
    
    
    68.8
    %
    
    
    412,143
    
    
    
    81.5
    %Gross profit
    
    
    235,730
    
    
    
    31.2
    %
    
    
    93,396
    
    
    
    18.5
    %Selling, general & administrative
    
    
    156,374
    
    
    
    20.7
    %
    
    
    139,071
    
    
    
    27.5
    %Restructuring costs and asset impairments
    
    
    9,068
    
    
    
    1.2
    %
    
    
    44,344
    
    
    
    8.8
    %Loss on unauthorized activities in Molex Japan
    
    
    30,967
    
    
    
    4.1
    %
    
    
    
    
    
    
    
    %Income (loss) from operations
    
    
    39,321
    
    
    
    5.2
    %
    
    
    (90,019
    )
    
    
    (17.8
    )%Other (expense) income, net
    
    
    (5,019
    )
    
    
    (0.7
    )%
    
    
    3,510
    
    
    
    0.7
    %Income (loss) before income taxes
    
    
    34,302
    
    
    
    4.5
    %
    
    
    (86,509
    )
    
    
    (17.1
    )%Income taxes
    
    
    10,476
    
    
    
    1.4
    %
    
    
    (27,909
    )
    
    
    (5.5
    )%Net income (loss)
    
    $
    23,826
    
    
    
    3.2
    %
    
    $
    (58,600
    )
    
    
    (11.6
    )%
  Percentage
    
    
    
    
    
    
    Percentage2010
    
    
    of Revenue
    
    
    2009
    
    
    of RevenueNet revenue
    
    $
    2,159,903
    
    
    
    100.0
    %
    
    $
    2,011,252
    
    
    
    100.0
    %Cost of sales
    
    
    1,520,218
    
    
    
    70.4
    %
    
    
    1,492,312
    
    
    
    74.2
    %Gross profit
    
    
    639,685
    
    
    
    29.6
    %
    
    
    518,940
    
    
    
    25.8
    %Selling, general & administrative
    
    
    452,108
    
    
    
    20.9
    %
    
    
    450,034
    
    
    
    22.4
    %Restructuring costs and asset impairments
    
    
    90,596
    
    
    
    4.2
    %
    
    
    199,044
    
    
    
    9.9
    %Loss on unauthorized activities in Molex Japan
    
    
    30,967
    
    
    
    1.4
    %
    
    
    
    
    
    
    
    %Income (loss) from operations
    
    
    66,014
    
    
    
    3.1
    %
    
    
    (130,138
    )
    
    
    (6.5
    )%Other (expense) income, net
    
    
    (4,522
    )
    
    
    (0.2
    )%
    
    
    26,539
    
    
    
    1.3
    %Income (loss) before income taxes
    
    
    61,492
    
    
    
    2.9
    %
    
    
    (103,599
    )
    
    
    (5.2
    )%Income taxes
    
    
    29,975
    
    
    
    1.4
    %
    
    
    (2,052
    )
    
    
    (0.1
    )%Net income (loss)
    
    $
    31,517
    
    
    
    1.5
    %
    
    $
    (101,547
    )
    
    
    (5.0
    )%
 18




---



##### 



Net Revenue
  Comparable
    
    
    SequentialQuarter
    
    
    QuarterConsumer
    
    
    45.7
    %
    
    
    (2.3
    )%Telecommunications
    
    
    30.8
    
    
    
    (0.8
    )Automotive
    
    
    72.6
    
    
    
    5.9Data
    
    
    57.4
    
    
    
    (1.8
    )Industrial
    
    
    49.6
    
    
    
    17.7
      19




---



##### 



Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Americas
    
    
    26
    %
    
    
    27
    %
    
    
    24
    %
    
    
    27
    %Asia Pacific
    
    
    58
    
    
    
    54
    
    
    
    60
    
    
    
    54Europe
    
    
    16
    
    
    
    19
    
    
    
    16
    
    
    
    19Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2010
    
    
    Mar. 31, 2010Net revenue for prior year period
    
    $
    505,539
    
    
    $
    2,011,252Components of net revenue change:Organic net revenue increase
    
    
    228,427
    
    
    
    88,694Currency translation
    
    
    20,653
    
    
    
    46,790Acquisitions
    
    
    1,675
    
    
    
    13,167Total change in net revenue from prior year period
    
    
    250,755
    
    
    
    148,651Net revenue for current year period
    
    $
    756,294
    
    
    $
    2,159,903Organic net revenue increase as a percentage of net revenue from prior year period
    
    
    45.2
    %
    
    
    4.4
    %
   Three Months Ended March 31, 2010
    
    
    Nine Months Ended March 31, 2010Local
    
    
    Currency
    
    
    Net
    
    
    Local
    
    
    Currency
    
    
    NetCurrency
    
    
    Translation
    
    
    Change
    
    
    Currency
    
    
    Translation
    
    
    ChangeAmericas
    
    $
    56,098
    
    
    $
    837
    
    
    $
    56,935
    
    
    $
    (30,433
    )
    
    $
    878
    
    
    $
    (29,555
    )Asia Pacific
    
    
    155,839
    
    
    
    13,364
    
    
    
    169,203
    
    
    
    172,206
    
    
    
    41,018
    
    
    
    213,224Europe
    
    
    15,604
    
    
    
    6,452
    
    
    
    22,056
    
    
    
    (32,187
    )
    
    
    4,894
    
    
    
    (27,293
    )Corporate & other
    
    
    2,561
    
    
    
    
    
    
    
    2,561
    
    
    
    (7,725
    )
    
    
    
    
    
    
    (7,725
    )Net change
    
    $
    230,102
    
    
    $
    20,653
    
    
    $
    250,755
    
    
    $
    101,861
    
    
    $
    46,790
    
    
    $
    148,651
 20




---



##### 



Three Months
    
    Nine MonthsEnded
    
    EndedMar. 31, 2010
    
    Mar. 31, 2010Americas
    
    
    40.4
    %
    
    
    (5.5
    )%Asia Pacific
    
    
    57.8
    
    
    
    16.0Europe
    
    
    16.0
    
    
    
    (8.7
    )Total
    
    
    45.5
    %
    
    
    5.1
    %
 Gross Profit
  Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2010
    
    2009
    
    2010
    
    2009Gross profit
    
    $
    235,730
    
    
    $
    93,396
    
    
    $
    639,685
    
    
    $
    518,940Gross margin
    
    
    31.2
    %
    
    
    18.5
    %
    
    
    29.6
    %
    
    
    25.8
    %
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2010
    
    2009
    
    2010
    
    2009Copper (price per pound)
    
    $
    3.28
    
    
    $
    1.56
    
    
    $
    3.00
    
    
    $
    2.96Gold (price per troy ounce)
    
    
    1,110.10
    
    
    
    908.00
    
    
    
    1,057.30
    
    
    
    854.30
   Three Months
    
    Nine MonthsEnded
    
    EndedMar. 31, 2010
    
    Mar. 31, 2010Price erosion
    
    $
    (34,354
    )
    
    $
    (106,856
    )Currency translation
    
    
    5,834
    
    
    
    13,185Currency transaction
    
    
    (3,826
    )
    
    
    (15,451
    )
  21




---



##### 



Operating Expenses
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Selling, general and administrative
    
    $
    156,374
    
    
    $
    139,071
    
    
    $
    452,108
    
    
    $
    450,034Restructuring costs and asset impairments
    
    
    9,068
    
    
    
    44,344
    
    
    
    90,596
    
    
    
    105,904Loss on unauthorized activities in Molex Japan
    
    
    30,967
    
    
    
    
    
    
    
    30,967
    
    
    
    Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    93,140Total operating expenses
    
    $
    196,409
    
    
    $
    183,415
    
    
    $
    573,671
    
    
    $
    647,078Selling, general and administrative
as a percentage of revenue
    
    
    20.7
    %
    
    
    27.5
    %
    
    
    20.9
    %
    
    
    22.4
    %
      22




---



##### 



Other Income (Expense)
  Effective Tax Rate
   Backlog
  Segments
  Percentage
    
    
    
    
    
    
    Percentage2010
    
    
    of Revenue
    
    
    2009
    
    
    of RevenueConnector
    
    $
    540,822
    
    
    
    71.5
    %
    
    $
    349,834
    
    
    
    69.2
    %Custom & Electrical
    
    
    215,103
    
    
    
    28.4
    
    
    
    155,178
    
    
    
    30.7Corporate & Other
    
    
    369
    
    
    
    0.1
    
    
    
    527
    
    
    
    0.1Total
    
    $
    756,294
    
    
    
    100.0
    %
    
    $
    505,539
    
    
    
    100.0
    %
 23




---



##### 



Percentage
    
    
    
    
    
    
    Percentage2010
    
    
    of Revenue
    
    
    2009
    
    
    of RevenueConnector
    
    $
    1,564,960
    
    
    
    72.4
    %
    
    $
    1,382,550
    
    
    
    68.7
    %Custom & Electrical
    
    
    594,011
    
    
    
    27.5
    
    
    
    626,706
    
    
    
    31.2Corporate & Other
    
    
    932
    
    
    
    0.1
    
    
    
    1,996
    
    
    
    0.1Total
    
    $
    2,159,903
    
    
    
    100.0
    %
    
    $
    2,011,252
    
    
    
    100.0
    %
 Connector
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2010
    
    
    Mar. 31, 2010Net revenue for prior year period
    
    $
    349,834
    
    
    $
    1,382,550Components of net revenue change:Organic net revenue increase
    
    
    175,867
    
    
    
    162,172Currency translation
    
    
    15,121
    
    
    
    10,279Acquisitions
    
    
    
    
    
    
    9,959Total change in net revenue from prior year period
    
    
    190,988
    
    
    
    182,410Net revenue for current year period
    
    $
    540,822
    
    
    $
    1,564,960Organic net revenue increase as a percentage of
net revenue for prior year period
    
    
    50.3
    %
    
    
    11.7
    %
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2010
    
    2009
    
    2010
    
    2009Income (loss) from operations
    
    $
    26,934
    
    
    $
    (51,477
    )
    
    $
    76,996
    
    
    $
    (112,362
    )Operating margin
    
    
    5.0
    %
    
    
    (14.7
    )%
    
    
    5.0
    %
    
    
    (8.1
    )%
  24




---



##### 



Custom & Electrical
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2010
    
    
    Mar. 31, 2010Net revenue for prior year period
    
    $
    155,178
    
    
    $
    626,706Components of net revenue change:Organic net revenue change
    
    
    52,702
    
    
    
    (39,579
    )Currency translation
    
    
    5,548
    
    
    
    3,676Acquisitions
    
    
    1,675
    
    
    
    3,208Total change in net revenue from prior year period
    
    
    59,925
    
    
    
    (32,695
    )Net revenue for current year period
    
    $
    215,103
    
    
    $
    594,011Organic net revenue change as a percentage of
net revenue for prior year period
    
    
    34.0
    %
    
    
    (6.3
    )%
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2010
    
    2009
    
    2010
    
    2009Income from operations
    
    $
    34,668
    
    
    $
    586
    
    
    $
    65,548
    
    
    $
    36,749Operating margin
    
    
    16.1
    %
    
    
    0.4
    %
    
    
    11.0
    %
    
    
    5.9
    %
  Non-GAAP Financial Measures
   25




---



##### 



Financial Condition and Liquidity
   Cash Flows
   Nine Months EndedMarch 31,2010
    
    
    2009Cash provided from operating activities
    
    $
    181,926
    
    
    $
    311,585Cash used for investing activities
    
    
    (125,244
    )
    
    
    (214,624
    )Cash used for financing activities
    
    
    (57,413
    )
    
    
    (91,901
    )Effect of exchange rate changes on cash
    
    
    7,778
    
    
    
    (23,019
    )Net increase (decrease) in cash
    
    $
    7,047
    
    
    $
    (17,959
    )
 Operating Activities
  Investing Activities
  26




---



##### 



Financing Activities
    Contractual Obligations and Commercial Commitments
  Cautionary Statement Regarding Forward-Looking Information
   Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
  27




---



##### 



Item 4.
    
    Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  28




---



##### 



Internal Control Over Financial Reporting
  Inherent Limitations on Effectiveness of Controls
  PART II
 Item 1A. Risk Factors
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Total Numberof SharesTotal Number
    
    
    
    
    
    
    Purchased asof Shares
    
    
    Average Price
    
    
    Part of PubliclyPurchased
    
    
    Paid per Share
    
    
    Announced PlanJanuary 1  January 31Common Stock


    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    3
    
    
    $
    16.71
    
    
    
    February 1  February 28Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    274
    
    
    $
    18.16
    
    
    
    March 1  March 31Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    4
    
    
    $
    17.70
    
    
    
    Total
    
    
    281
    
    
    $
    18.14
    
    
    
    
  29




---



##### 



Item 6. Exhibits
 Number
    
    Description31
    
    Rule 13a-14(a)/15d-14(a) Certifications31.1                      Section 302 certification by Chief Executive Officer31.2                      Section 302 certification by Chief Financial Officer32
    
    Section 1350 Certifications32.1                      Section 906 certification by Chief Executive Officer32.2                      Section 906 certification by Chief Financial Officer
 30




---



##### 



SIGNATURES
  MOLEX INCORPORATED(Registrant)Date: April 27, 2010
    
    /S/ DAVID D. JOHNSONDavid D. JohnsonExecutive Vice President, Treasurer and
Chief Financial Officer

(Principal Financial Officer) 31