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 December 31, 2009
 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
(State or other jurisdiction of 
incorporation or organization)
    
    36-2369491
(I.R.S. Employer
Identification No.)
 2222 Wellington Court, Lisle, Illinois 60532
 
 þ o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller reporting company o
 o o
 o þ
  Common Stock
    
    95,560,076Class A Common Stock
    
    78,148,338Class B Common Stock
    
    94,255




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##### 



Molex Incorporated
 INDEX
  Item 1. Financial Statements
    
    PageCondensed Consolidated Balance Sheets as of
December 31, 2009 and June 30, 2009
    
    
    3Condensed Consolidated Statements of Operations for the
three and six months ended December 31, 2009 and 2008
    
    
    4Condensed Consolidated Statements of Cash Flows for the
six months ended December 31, 2009 and 2008
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results
of Operations
    
    
    14Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    26Item 4.
    
    Controls and Procedures
    
    
    27PART II  OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    
    27Item 1A.
    
    Risk Factors
    
    
    27Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    28Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    28Item 6.
    
    Exhibits
    
    
    29SIGNATURES

    
    
    
    30
     2




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##### 



PART I
 Item 1.
    
    Financial Statements
 Molex Incorporated
Condensed Consolidated Balance Sheets
 Dec. 31,
    
    
    June 30,2009
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    486,318
    
    
    $
    424,707Marketable securities
    
    
    9,645
    
    
    
    43,234Accounts receivable, less allowances of $40,679 and $32,593, respectively
    
    
    626,449
    
    
    
    528,907Inventories
    
    
    372,166
    
    
    
    354,337Deferred income taxes
    
    
    25,068
    
    
    
    27,939Other current assets
    
    
    63,091
    
    
    
    68,449Total current assets
    
    
    1,582,737
    
    
    
    1,447,573Property, plant and equipment, net
    
    
    1,064,197
    
    
    
    1,080,417Goodwill
    
    
    129,306
    
    
    
    128,494Non-current deferred income taxes
    
    
    79,396
    
    
    
    89,332Other assets
    
    
    190,564
    
    
    
    196,341Total assets
    
    $
    3,046,200
    
    
    $
    2,942,157LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Current portion of long-term debt and short-term loans
    
    $
    3,821
    
    
    $
    224,340Accounts payable
    
    
    285,904
    
    
    
    266,633Accrued expenses
    
    
    239,355
    
    
    
    218,429Income taxes payable
    
    
    17,492
    
    
    
    4,750Total current liabilities
    
    
    546,572
    
    
    
    714,152Other non-current liabilities
    
    
    20,353
    
    
    
    21,862Accrued pension and postretirement benefits
    
    
    116,342
    
    
    
    113,268Long-term debt
    
    
    287,232
    
    
    
    30,311Total liabilities
    
    
    970,499
    
    
    
    879,593Commitments and contingenciesStockholders equity:Common stock
    
    
    11,170
    
    
    
    11,138Paid-in capital
    
    
    620,092
    
    
    
    601,459Retained earnings
    
    
    2,315,918
    
    
    
    2,355,991Treasury stock
    
    
    (1,092,414
    )
    
    
    (1,089,322
    )Accumulated other comprehensive income
    
    
    220,935
    
    
    
    183,298Total stockholders equity
    
    
    2,075,701
    
    
    
    2,062,564Total liabilities and stockholders equity
    
    $
    3,046,200
    
    
    $
    2,942,157
  3




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##### 



Molex Incorporated
Condensed Consolidated Statements of Operations
 Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Net revenue
    
    $
    729,576
    
    
    $
    666,728
    
    
    $
    1,403,609
    
    
    $
    1,505,713Cost of sales
    
    
    517,040
    
    
    
    490,656
    
    
    
    999,654
    
    
    
    1,080,169Gross profit
    
    
    212,536
    
    
    
    176,072
    
    
    
    403,955
    
    
    
    425,544Selling, general and administrative
    
    
    150,105
    
    
    
    144,612
    
    
    
    295,734
    
    
    
    310,963Restructuring costs and asset impairments
    
    
    25,635
    
    
    
    39,782
    
    
    
    81,528
    
    
    
    61,560Goodwill impairment
    
    
    
    
    
    
    93,140
    
    
    
    
    
    
    
    93,140Total operating expenses
    
    
    175,740
    
    
    
    277,534
    
    
    
    377,262
    
    
    
    465,663Income (loss) from operations
    
    
    36,796
    
    
    
    (101,462
    )
    
    
    26,693
    
    
    
    (40,119
    )Interest (expense) income, net
    
    
    (1,286
    )
    
    
    843
    
    
    
    (2,286
    )
    
    
    2,036Other (expense) income
    
    
    (701
    )
    
    
    18,386
    
    
    
    2,783
    
    
    
    20,993Total other (expense) income
    
    
    (1,987
    )
    
    
    19,229
    
    
    
    497
    
    
    
    23,029Income (loss) before income taxes
    
    
    34,809
    
    
    
    (82,233
    )
    
    
    27,190
    
    
    
    (17,090
    )Income taxes
    
    
    15,523
    
    
    
    5,011
    
    
    
    19,499
    
    
    
    25,857Net income (loss)
    
    $
    19,286
    
    
    $
    (87,244
    )
    
    $
    7,691
    
    
    $
    (42,947
    )Earnings (loss) per share:Basic
    
    $
    0.11
    
    
    $
    (0.50
    )
    
    $
    0.04
    
    
    $
    (0.24
    )Diluted
    
    $
    0.11
    
    
    $
    (0.50
    )
    
    $
    0.04
    
    
    $
    (0.24
    )Dividends declared per share
    
    $
    0.1525
    
    
    $
    0.1525
    
    
    $
    0.3050
    
    
    $
    0.3050Average common shares outstanding:Basic
    
    
    173,743
    
    
    
    174,636
    
    
    
    173,605
    
    
    
    175,736Diluted
    
    
    174,575
    
    
    
    174,636
    
    
    
    174,356
    
    
    
    175,736
  4




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##### 



Molex Incorporated
Condensed Consolidated Statements of Cash Flows
 Six Months EndedDecember 31,2009
    
    
    2008Operating activities:Net income (loss)
    
    $
    7,691
    
    
    $
    (42,947
    )Add non-cash items included in net income (loss):Depreciation and amortization
    
    
    121,263
    
    
    
    126,349Share-based compensation
    
    
    15,127
    
    
    
    13,075Goodwill impairment
    
    
    
    
    
    
    93,140Non-cash restructuring and other costs, net
    
    
    19,922
    
    
    
    7,092Other non-cash items
    
    
    27,428
    
    
    
    (7,326
    )Changes in assets and liabilities:Accounts receivable
    
    
    (58,715
    )
    
    
    141,592Inventories
    
    
    (18,589
    )
    
    
    2,637Accounts payable
    
    
    9,128
    
    
    
    (110,047
    )Other current assets and liabilities
    
    
    9,511
    
    
    
    10,822Other assets and liabilities
    
    
    9,072
    
    
    
    (44,144
    )Cash provided from operating activities
    
    
    141,838
    
    
    
    190,243Investing activities:Capital expenditures
    
    
    (93,320
    )
    
    
    (96,637
    )Proceeds from sales of property, plant and equipment
    
    
    6,554
    
    
    
    2,324Proceeds from sales or maturities of marketable securities
    
    
    35,319
    
    
    
    7,230Purchases of marketable securities
    
    
    (1,485
    )
    
    
    (15,111
    )Acquisitions
    
    
    (10,090
    )
    
    
    (73,447
    )Other investing activities
    
    
    222
    
    
    
    (188
    )Cash used for investing activities
    
    
    (62,800
    )
    
    
    (175,829
    )Financing activities:Proceeds from revolving credit facility and short term loans
    
    
    110,000
    
    
    
    115,000Payments on revolving credit facility
    
    
    (70,000
    )
    
    
    (50,000
    )Payments on long-term debt
    
    
    (15,336
    )
    
    
    (197
    )Cash dividends paid
    
    
    (52,919
    )
    
    
    (46,807
    )Exercise of stock options
    
    
    991
    
    
    
    1,187Purchase of treasury stock
    
    
    
    
    
    
    (76,342
    )Other financing activities
    
    
    (1,183
    )
    
    
    (960
    )Cash used for financing activities
    
    
    (28,447
    )
    
    
    (58,119
    )Effect of exchange rate changes on cash
    
    
    11,020
    
    
    
    (13,229
    )Net increase (decrease) in cash and cash equivalents
    
    
    61,611
    
    
    
    (56,934
    )Cash and cash equivalents, beginning of period
    
    
    424,707
    
    
    
    475,507Cash and cash equivalents, end of period
    
    $
    486,318
    
    
    $
    418,573
  5




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##### 



Molex Incorporated
 Notes to Condensed Consolidated Financial Statements
 1. Basis of Presentation
    2. Restructuring Costs and Asset Impairments
   6




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##### 



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
    
    
    $
    279,428
  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
    
    $
    84,014
  3. Goodwill Impairment
  4. Acquisitions
  7




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##### 



5. Earnings (Loss) Per Share
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Basic average common shares outstanding
    
    
    173,743
    
    
    
    174,636
    
    
    
    173,605
    
    
    
    175,736Effect of dilutive stock options
    
    
    832
    
    
    
    
    
    
    
    751
    
    
    
    Diluted average common shares outstanding
    
    
    174,575
    
    
    
    174,636
    
    
    
    174,356
    
    
    
    175,736
  6. Comprehensive Income (Loss)
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Net income (loss)
    
    $
    19,286
    
    
    $
    (87,244
    )
    
    $
    7,691
    
    
    $
    (42,947
    )Translation adjustments
    
    
    (2,306
    )
    
    
    (19,176
    )
    
    
    40,530
    
    
    
    (92,289
    )Accumulated actuarial loss
    
    
    
    
    
    
    
    
    
    
    (5,831
    )
    
    
    Unrealized investment gain (loss)
    
    
    2,584
    
    
    
    (5,985
    )
    
    
    (2,893
    )
    
    
    (11,516
    )Total comprehensive income (loss)
    
    $
    19,564
    
    
    $
    (112,405
    )
    
    $
    39,497
    
    
    $
    (146,752
    )
  7. Inventories
  Dec. 31,
    
    
    June 30,2009
    
    
    2009Raw materials
    
    $
    73,903
    
    
    $
    58,720Work in process
    
    
    118,161
    
    
    
    113,782Finished goods
    
    
    180,102
    
    
    
    181,835Total inventories
    
    $
    372,166
    
    
    $
    354,337
 8. Pensions and Other Postretirement Benefits
  8




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##### 



Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Service cost
    
    $
    1,990
    
    
    $
    2,066
    
    
    $
    3,980
    
    
    $
    4,132Interest cost
    
    
    2,041
    
    
    
    2,064
    
    
    
    4,082
    
    
    
    4,128Expected return on plan assets
    
    
    (1,696
    )
    
    
    (2,180
    )
    
    
    (3,392
    )
    
    
    (4,360
    )Amortization of prior service cost
    
    
    10
    
    
    
    11
    
    
    
    20
    
    
    
    22Recognized actuarial losses
    
    
    57
    
    
    
    62
    
    
    
    114
    
    
    
    124Amortization of transition obligation
    
    
    624
    
    
    
    106
    
    
    
    1,248
    
    
    
    212Curtailment adjustment
    
    
    
    
    
    
    
    
    
    
    (3,849
    )
    
    
    Benefit cost
    
    $
    3,026
    
    
    $
    2,129
    
    
    $
    2,203
    
    
    $
    4,258
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Service cost
    
    $
    271
    
    
    $
    611
    
    
    $
    542
    
    
    $
    1,222Interest cost
    
    
    621
    
    
    
    796
    
    
    
    1,242
    
    
    
    1,592Amortization of prior service cost
    
    
    (516
    )
    
    
    (160
    )
    
    
    (1,032
    )
    
    
    (320
    )Recognized actuarial losses
    
    
    175
    
    
    
    157
    
    
    
    350
    
    
    
    314Curtailment adjustment
    
    
    
    
    
    
    (4,000
    )
    
    
    
    
    
    
    (4,000
    )Benefit (credit) cost
    
    $
    551
    
    
    $
    (2,596
    )
    
    $
    1,102
    
    
    $
    (1,192
    )
   2009
    
    
    2008Non-U.S.
    
    
    
    
    
    
    Non-U.S.U.S. Plan
    
    
    Plan
    
    
    U.S. Plan
    
    
    PlanAssets
    
    
    Assets
    
    
    Assets
    
    
    AssetsFair value of plan assets at June 30
    
    $
    48,565
    
    
    $
    46,577
    
    
    $
    58,840
    
    
    $
    66,463Asset category:Equity
    
    
    65
    %
    
    
    58
    %
    
    
    65
    %
    
    
    64
    %Bonds
    
    
    35
    %
    
    
    29
    %
    
    
    35
    %
    
    
    19
    %Other
    
    
    
    
    
    
    13
    %
    
    
    
    
    
    
    17
    %
 9. Debt
  9




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##### 



10. Income Taxes
      11. Fair Value Measurement
  Quoted Pricesin Active
    
    
    SignificantTotal
    
    
    Markets for
    
    
    Other
    
    
    SignificantMeasured
    
    
    Identical
    
    
    Observable
    
    
    Unobservableat Fair
    
    
    Assets
    
    
    Inputs
    
    
    InputsValue
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Available-for-sale securities
    
    $
    19,216
    
    
    $
    19,216
    
    
    $
    
    
    
    $
    Derivative financial instruments, net
    
    
    7,182
    
    
    
    
    
    
    
    7,182
    
    
    
    Total
    
    $
    26,398
    
    
    $
    19,216
    
    
    $
    7,182
    
    
    $
    
   10




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##### 



12. New Accounting Pronouncements
       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.
 11




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##### 



Custom &
    
    CorporateConnector
    
    Electrical
    
    & Other
    
    TotalFor the three months ended:December 31, 2009:Revenues from external customers
    
    $
    534,997
    
    
    $
    194,137
    
    
    $
    442
    
    
    $
    729,576Income (loss) from operations (1)
    
    
    45,388
    
    
    
    19,728
    
    
    
    (28,320
    )
    
    
    36,796Depreciation & amortization
    
    
    48,709
    
    
    
    8,315
    
    
    
    3,650
    
    
    
    60,674Capital expenditures
    
    
    38,487
    
    
    
    4,909
    
    
    
    4,290
    
    
    
    47,686December 31, 2008:Revenues from external customers
    
    $
    451,606
    
    
    $
    214,194
    
    
    $
    928
    
    
    $
    666,728Income (loss) from operations (1)
    
    
    (119,389
    )
    
    
    13,633
    
    
    
    4,294
    
    
    
    (101,462
    )Depreciation & amortization
    
    
    50,110
    
    
    
    8,535
    
    
    
    4,191
    
    
    
    62,836Capital expenditures
    
    
    37,357
    
    
    
    6,487
    
    
    
    7,501
    
    
    
    51,345For the six months ended:December 31, 2009:Revenues from external customers
    
    $
    1,024,138
    
    
    $
    378,908
    
    
    $
    563
    
    
    $
    1,403,609Income (loss) from operations (1)
    
    
    50,063
    
    
    
    30,879
    
    
    
    (54,249
    )
    
    
    26,693Depreciation & amortization
    
    
    97,222
    
    
    
    16,698
    
    
    
    7,343
    
    
    
    121,263Capital expenditures
    
    
    79,078
    
    
    
    7,508
    
    
    
    6,734
    
    
    
    93,320December 31, 2008:Revenues from external customers
    
    $
    1,032,716
    
    
    $
    471,528
    
    
    $
    1,469
    
    
    $
    1,505,713Income (loss) from operations (1)
    
    
    (60,885
    )
    
    
    36,163
    
    
    
    (15,397
    )
    
    
    (40,119
    )Depreciation & amortization
    
    
    100,447
    
    
    
    17,149
    
    
    
    8,753
    
    
    
    126,349Capital expenditures
    
    
    74,678
    
    
    
    12,628
    
    
    
    9,331
    
    
    
    96,637
 
 (1)
    
    Operating results include the following restructuring costs and asset impairments (in
thousands): Custom &
    
    CorporateConnector
    
    Electrical
    
    & Other
    
    TotalThree months ended:December 31, 2009
    
    $
    18,328
    
    
    $
    3,648
    
    
    $
    3,659
    
    
    $
    25,635December 31, 2008
    
    
    26,841
    
    
    
    6,324
    
    
    
    6,617
    
    
    
    39,782Six months ended:December 31, 2009
    
    $
    68,988
    
    
    $
    8,287
    
    
    $
    4,253
    
    
    $
    81,528December 31, 2008
    
    
    42,112
    
    
    
    10,103
    
    
    
    9,345
    
    
    
    61,560
  12




---



##### 



Custom &
    
    CorporateConnector
    
    Electrical
    
    & Other
    
    TotalDecember 31, 2009
    
    $
    1,551,593
    
    
    $
    407,400
    
    
    $
    103,819
    
    
    $
    2,062,812June 30, 2009
    
    
    1,388,110
    
    
    
    390,906
    
    
    
    184,645
    
    
    
    1,963,661
  Dec. 31,
    
    
    June 30,2009
    
    
    2009Segment net assets
    
    $
    2,062,812
    
    
    $
    1,963,661Other current assets
    
    
    584,122
    
    
    
    564,329Other non-current assets
    
    
    399,266
    
    
    
    414,167Consolidated total assets
    
    $
    3,046,200
    
    
    $
    2,942,157
 13




---



##### 



Molex Incorporated
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
   Overview
   
    
    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.
   14




---



##### 



Critical Accounting Policies and Estimates
   15




---



##### 



Results of Operations
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueNet revenue
    
    $
    729,576
    
    
    
    100.0
    %
    
    $
    666,728
    
    
    
    100.0
    %Cost of sales
    
    
    517,040
    
    
    
    70.9
    %
    
    
    490,656
    
    
    
    73.6
    %Gross profit
    
    
    212,536
    
    
    
    29.1
    %
    
    
    176,072
    
    
    
    26.4
    %Selling, general & administrative
    
    
    150,105
    
    
    
    20.6
    %
    
    
    144,612
    
    
    
    21.7
    %Restructuring costs and asset impairments
    
    
    25,635
    
    
    
    3.5
    %
    
    
    39,782
    
    
    
    5.9
    %Goodwill impairment
    
    
    
    
    
    
    0.0
    %
    
    
    93,140
    
    
    
    14.0
    %Income (loss) from operations
    
    
    36,796
    
    
    
    5.0
    %
    
    
    (101,462
    )
    
    
    (15.2
    )%Other (expense) income, net
    
    
    (1,987
    )
    
    
    (0.3
    )%
    
    
    19,229
    
    
    
    2.9
    %Income (loss) before income taxes
    
    
    34,809
    
    
    
    4.7
    %
    
    
    (82,233
    )
    
    
    (12.3
    )%Income taxes
    
    
    15,523
    
    
    
    2.1
    %
    
    
    5,011
    
    
    
    0.8
    %Net income (loss)
    
    $
    19,286
    
    
    
    2.6
    %
    
    $
    (87,244
    )
    
    
    (13.1
    )%
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueNet revenue
    
    $
    1,403,609
    
    
    
    100.0
    %
    
    $
    1,505,713
    
    
    
    100.0
    %Cost of sales
    
    
    999,654
    
    
    
    71.2
    %
    
    
    1,080,169
    
    
    
    71.7
    %Gross profit
    
    
    403,955
    
    
    
    28.8
    %
    
    
    425,544
    
    
    
    28.3
    %Selling, general & administrative
    
    
    295,734
    
    
    
    21.1
    %
    
    
    310,963
    
    
    
    20.7
    %Restructuring costs and asset impairments
    
    
    81,528
    
    
    
    5.8
    %
    
    
    61,560
    
    
    
    4.1
    %Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    93,140
    
    
    
    6.2
    %Income (loss) from operations
    
    
    26,693
    
    
    
    1.9
    %
    
    
    (40,119
    )
    
    
    (2.7
    )%Other income, net
    
    
    497
    
    
    
    
    
    
    
    23,029
    
    
    
    1.6
    %Income (loss) before income taxes
    
    
    27,190
    
    
    
    1.9
    %
    
    
    (17,090
    )
    
    
    (1.1
    )%Income taxes
    
    
    19,499
    
    
    
    1.4
    %
    
    
    25,857
    
    
    
    1.7
    %Net income (loss)
    
    $
    7,691
    
    
    
    0.5
    %
    
    $
    (42,947
    )
    
    
    (2.8
    )%
 Net Revenue
  16




---



##### 



Comparable
    
    
    SequentialQuarter
    
    
    QuarterTelecommunications
    
    
    (2.8
    )%
    
    
    6.0
    %Consumer
    
    
    13.1
    
    
    
    0.2Data
    
    
    23.8
    
    
    
    14.5Industrial
    
    
    0.1
    
    
    
    6.1Automotive
    
    
    29.8
    
    
    
    14.3
       Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Americas
    
    
    23
    %
    
    
    29
    %
    
    
    23
    %
    
    
    28
    %Asia Pacific
    
    
    61
    
    
    
    54
    
    
    
    61
    
    
    
    54Europe
    
    
    16
    
    
    
    17
    
    
    
    16
    
    
    
    18Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
 17




---



##### 



Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2009
    
    
    Dec. 31, 2009Net revenue for prior year period
    
    $
    666,728
    
    
    $
    1,505,713Components of net revenue change:Organic net revenue change
    
    
    24,168
    
    
    
    (139,733
    )Currency translation
    
    
    31,923
    
    
    
    26,137Acquisitions
    
    
    6,757
    
    
    
    11,492Total change in net revenue from prior year period
    
    
    62,848
    
    
    
    (102,104
    )Net revenue for current year period
    
    $
    729,576
    
    
    $
    1,403,609Organic net revenue change as a percentage of net revenue from prior year period
    
    
    3.6
    %
    
    
    (9.3
    )%
   Three Months Ended December 31, 2009
    
    
    Six Months Ended December 31, 2009Local
    
    
    Currency
    
    
    Net
    
    
    Local
    
    
    Currency
    
    
    NetCurrency
    
    
    Translation
    
    
    Change
    
    
    Currency
    
    
    Translation
    
    
    ChangeAmericas
    
    $
    (20,854
    )
    
    $
    339
    
    
    $
    (20,515
    )
    
    $
    (86,531
    )
    
    $
    41
    
    
    $
    (86,490
    )Asia Pacific
    
    
    65,549
    
    
    
    22,487
    
    
    
    88,036
    
    
    
    16,367
    
    
    
    27,654
    
    
    
    44,021Europe
    
    
    (8,756
    )
    
    
    9,097
    
    
    
    341
    
    
    
    (47,791
    )
    
    
    (1,558
    )
    
    
    (49,349
    )Corporate & other
    
    
    (5,014
    )
    
    
    
    
    
    
    (5,014
    )
    
    
    (10,286
    )
    
    
    
    
    
    
    (10,286
    )Net change
    
    $
    30,925
    
    
    $
    31,923
    
    
    $
    62,848
    
    
    $
    (128,241
    )
    
    $
    26,137
    
    
    $
    (102,104
    )
  Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2009
    
    
    Dec. 31, 2009Americas
    
    
    (10.9
    )%
    
    
    (20.9
    )%Asia Pacific
    
    
    18.4
    
    
    
    2.0Europe
    
    
    (7.6
    )
    
    
    (17.5
    )Total
    
    
    4.6
    %
    
    
    (8.5
    )%
 18




---



##### 



Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    

    
    of RevenueConnector
    
    $
    534,997
    
    
    
    73.3
    %
    
    $
    451,606
    
    
    
    67.7
    %Custom & Electrical
    
    
    194,137
    
    
    
    26.6
    
    
    
    214,194
    
    
    
    32.1Corporate & Other
    
    
    442
    
    
    
    0.1
    
    
    
    928
    
    
    
    0.2Total
    
    $
    729,576
    
    
    
    100.0
    %
    
    $
    666,728
    
    
    
    100.0
    %
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueConnector
    
    $
    1,024,138
    
    
    
    72.9
    %
    
    $
    1,032,716
    
    
    
    68.6
    %Custom & Electrical
    
    
    378,908
    
    
    
    27.0
    
    
    
    471,528
    
    
    
    31.3Corporate & Other
    
    
    563
    
    
    
    0.1
    
    
    
    1,469
    
    
    
    0.1Total
    
    $
    1,403,609
    
    
    
    100.0
    %
    
    $
    1,505,713
    
    
    
    100.0
    %
 Gross Profit
  Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2009
    
    2008
    
    2009
    
    2008Gross profit
    
    $
    212,536
    
    
    $
    176,072
    
    
    $
    403,955
    
    
    $
    425,544Gross margin
    
    
    29.1
    %
    
    
    26.4
    %
    
    
    28.8
    %
    
    
    28.3
    %
   Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2009
    
    2008
    
    2009
    
    2008Copper (price per pound)
    
    $
    3.01
    
    
    $
    2.66
    
    
    $
    2.83
    
    
    $
    3.20Gold (price per troy ounce)
    
    
    1,099
    
    
    
    795
    
    
    
    1,030
    
    
    
    834
  19




---



##### 



Three Months
    
    Six MonthsEnded
    
    EndedDec. 31, 2009
    
    Dec. 31, 2009Price erosion
    
    $
    (36,163
    )
    
    $
    (72,502
    )Currency translation
    
    
    7,857
    
    
    
    7,351Currency transaction
    
    
    (8,621
    )
    
    
    (10,947
    )
    Operating Expenses
  Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2009
    
    2008
    

    2009

    

    2008Selling, general and administrative
    
    $
    150,105
    
    
    $
    144,612
    
    
    $
    295,734
    
    
    $
    310,963Selling, general and administrative
as a percentage of revenue
    
    
    20.6
    %
    
    
    21.7
    %
    
    
    21.1
    %
    
    
    20.7
    %Restructuring costs and asset impairments
    
    $
    25,635
    
    
    $
    39,782
    
    
    $
    81,528
    
    
    $
    61,560Goodwill impairment
    
    
    
    
    
    
    93,140
    
    
    
    
    
    
    
    93,140
    20




---



##### 



Other Income
  Effective Tax Rate
   Backlog
  21




---



##### 



Segments
 Connector
  Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2009
    
    
    Dec. 31, 2009Net revenue for prior year period
    
    $
    451,606
    
    
    $
    1,032,716Components of net revenue change:Organic net revenue change
    
    
    51,348
    
    
    
    (46,564
    )Currency translation
    
    
    26,819
    
    
    
    28,027Acquisitions
    
    
    5,224
    
    
    
    9,959Total change in net revenue from prior year period
    
    
    83,391
    
    
    
    (8,578
    )Net revenue for current year period
    
    $
    534,997
    
    
    $
    1,024,138Organic net revenue change as a percentage of
net revenue for prior year period
    
    
    11.4
    %
    
    
    (4.5
    )%
   Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2009
    
    2008
    
    2009
    
    2008Income from operations
    
    $
    45,388
    
    
    $
    (119,389
    )
    
    $
    50,063
    
    
    $
    (60,885
    )Operating margin
    
    
    8.5
    %
    
    
    (26.4
    )%
    
    
    4.9
    %
    
    
    (5.9
    )%
  22




---



##### 



Custom & Electrical
  Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2009
    
    
    Dec. 31, 2009Net revenue for prior year period
    
    $
    214,194
    
    
    $
    471,528Components of net revenue change:Organic net revenue decline
    
    
    (26,692
    )
    
    
    (92,281
    )Currency translation
    
    
    5,102
    
    
    
    (1,872
    )Acquisitions
    
    
    1,533
    
    
    
    1,533Total change in net revenue from prior year period
    
    
    (20,057
    )
    
    
    (92,620
    )Net revenue for current year period
    
    $
    194,137
    
    
    $
    378,908Organic net revenue decline as a percentage of
net revenue for prior year period
    
    
    (12.5
    )%
    
    
    (19.6
    )%
   Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2009
    
    2008
    
    2009
    
    2008Income from operations
    
    $
    19,728
    
    
    $
    13,633
    
    
    $
    30,879
    
    
    $
    36,163Operating margin
    
    
    10.2
    %
    
    
    6.4
    %
    
    
    8.1
    %
    
    
    7.7
    %
  Non-GAAP Financial Measures
   23




---



##### 



Financial Condition and Liquidity
   Cash Flows
   Six Months EndedDecember 31,2009
    
    
    2008Cash provided from operating activities
    
    $
    141,838
    
    
    $
    190,243Cash used for investing activities
    
    
    (62,800
    )
    
    
    (175,829
    )Cash used for financing activities
    
    
    (28,447
    )
    
    
    (58,119
    )Effect of exchange rate changes on cash
    
    
    11,020
    
    
    
    (13,229
    )Net increase (decrease) increase in cash
    
    $
    61,611
    
    
    $
    (56,934
    )
 24




---



##### 



Operating Activities
  Investing Activities
  Financing Activities
    Contractual Obligations and Commercial Commitments
  Cautionary Statement Regarding Forward-Looking Information
  25




---



##### 



Item 3. Quantitative and Qualitative Disclosures About Market Risk
          26




---



##### 



Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  Internal Control Over Financial Reporting
  PART II
 Item 1. Legal Proceedings
  Item 1A. Risk Factors
  27




---



##### 



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 PlanOctober 1  October 31Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    26
    
    
    $
    17.32
    
    
    
    November 1  November 30Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    8
    
    
    $
    16.55
    
    
    
    December 1  December 31Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    4
    
    
    $
    17.59
    
    
    
    Total
    
    
    38
    
    
    $
    17.19
    
    
    
    
  Item 4.
    
    Submission of Matters to a Vote of Security Holders
   Director
    
    For
    
    WithheldMichelle L. Collins
    
    82,239,854
    
    1,504,001Fred L. Krehbiel
    
    80,621,840
    
    3,122,015David L. Landsittel
    
    81,980,642
    
    1,763,213Joe W. Laymon
    
    76,862,730
    
    6,881,125James S. Metcalf
    
    82,468,793
    
    1,275,062
  Michael J. Birck
    
    John H. Krehbiel, Jr.Anirudh Dhebar
    
    Donald G. LubinEdgar D. Jannotta
    
    Robert J. PotterFrederick A. Krehbiel
    
    Martin P. Slark
  
 28




---



##### 



Item 6.
    
    Exhibits
 Number
    
    Description10
    
    
    Amendment No. 1 to Credit Agreement dated June 24, 2009 among Molex
Incorporated, the Lenders named therein, J.P.Morgan Chase Bank, N.A., as
Administrative Agent, Standard Charter Bank as Syndication Agent, The Northern
Trust Company as Documentation Agent31
    
    
    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
 29




---



##### 



SIGNATURES
  MOLEX INCORPORATED

(Registrant)Date: January 29, 2010
    
    /s/ DAVID D. JOHNSONDavid D. JohnsonExecutive Vice President, Treasurer and
Chief Financial Officer
(Principal Financial Officer) 30