Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Jul. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Trading Symbol | CVLT | |
Entity Registrant Name | COMMVAULT SYSTEMS INC | |
Entity Central Index Key | 1,169,561 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 45,734,793 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 351,912 | $ 330,784 |
Short-term investments | 109,754 | 131,637 |
Trade accounts receivable | 151,283 | 162,119 |
Other current assets | 20,719 | 22,248 |
Total current assets | 633,668 | 646,788 |
Property and equipment, net | 128,788 | 128,612 |
Deferred commissions cost | 32,732 | 33,092 |
Other assets | 9,272 | 10,150 |
Total assets | 804,460 | 818,642 |
Current liabilities: | ||
Accounts payable | 361 | 761 |
Accrued liabilities | 79,471 | 82,299 |
Deferred revenue | 234,106 | 241,113 |
Total current liabilities | 313,938 | 324,173 |
Deferred revenue, less current portion | 88,143 | 84,661 |
Deferred tax liabilities, net | 2,481 | 2,430 |
Other liabilities | 3,183 | 3,314 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding at June 30, 2018 and March 31, 2018 | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized, 45,580 shares and 45,118 shares issued and outstanding at June 30, 2018 and March 31, 2018, respectively | 454 | 450 |
Additional paid-in capital | 811,271 | 782,764 |
Accumulated deficit | (404,369) | (373,678) |
Accumulated other comprehensive loss | (10,641) | (5,472) |
Total stockholders’ equity | 396,715 | 404,064 |
Total liabilities and stockholders’ equity | $ 804,460 | $ 818,642 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 45,580,000 | 45,118,000 |
Common stock, shares outstanding (in shares) | 45,580,000 | 45,118,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||
Total revenues | $ 176,177 | $ 165,972 |
Cost of revenues: | ||
Total cost of revenues | 27,606 | 21,661 |
Gross margin | 148,571 | 144,311 |
Operating expenses: | ||
Sales and marketing | 97,616 | 99,909 |
Research and development | 24,794 | 22,545 |
General and administrative | 22,542 | 23,851 |
Restructuring | 7,895 | 0 |
Depreciation and amortization | 2,533 | 2,367 |
Total operating expenses | 155,380 | 148,672 |
Loss from operations | (6,809) | (4,361) |
Interest income | 891 | 433 |
Interest expense | 0 | (232) |
Equity in income of affiliate | 0 | 39 |
Loss before income taxes | (5,918) | (4,121) |
Income tax expense (benefit) | 2,649 | (3,837) |
Net loss | $ (8,567) | $ (284) |
Net loss per common share: | ||
Basic (in dollars per share) | $ (0.19) | $ (0.01) |
Diluted (in dollars per share) | $ (0.19) | $ (0.01) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 45,450 | 45,128 |
Diluted (in shares) | 45,450 | 45,128 |
Software and products | ||
Revenues: | ||
Total revenues | $ 75,050 | $ 74,761 |
Cost of revenues: | ||
Total cost of revenues | 4,120 | 805 |
Services | ||
Revenues: | ||
Total revenues | 101,127 | 91,211 |
Cost of revenues: | ||
Total cost of revenues | $ 23,486 | $ 20,856 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (8,567) | $ (284) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (5,169) | 3,051 |
Comprehensive income (loss) | $ (13,736) | $ 2,767 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 3 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2018 | 45,118 | ||||
Beginning balance at Mar. 31, 2018 | $ 404,064 | $ 450 | $ 782,764 | $ (373,678) | $ (5,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 18,004 | 18,004 | |||
Share issuances related to stock-based compensation (in shares) | 828 | ||||
Share issuances related to stock-based compensation | 13,398 | $ 8 | 13,390 | ||
Repurchase of common stock (in shares) | (366) | ||||
Repurchase of common stock | (25,015) | $ (4) | (2,887) | (22,124) | |
Net loss | (8,567) | (8,567) | |||
Other comprehensive loss | (5,169) | (5,169) | |||
Ending balance (in shares) at Jun. 30, 2018 | 45,580 | ||||
Ending balance at Jun. 30, 2018 | $ 396,715 | $ 454 | $ 811,271 | $ (404,369) | $ (10,641) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (8,567) | $ (284) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,059 | 2,772 |
Noncash stock-based compensation | 18,004 | 19,564 |
Deferred income taxes | (105) | (1,330) |
Equity in income of affiliate | 0 | (39) |
Amortization of deferred commissions cost | 4,615 | 4,601 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 8,672 | 11,097 |
Other current assets and Other assets | 2,919 | (9,225) |
Deferred commissions cost | (5,042) | (3,610) |
Accounts payable | (376) | 328 |
Accrued liabilities | (1,938) | (11,076) |
Deferred revenue | 3,298 | 7,418 |
Other liabilities | 231 | (283) |
Net cash provided by operating activities | 24,770 | 19,933 |
Cash flows from investing activities | ||
Purchase of short-term investments | (11,252) | (44,072) |
Proceeds from maturity of short-term investments | 33,135 | 33,299 |
Purchase of property and equipment | (3,521) | (1,474) |
Net cash provided by (used in) investing activities | 18,362 | (12,247) |
Cash flows from financing activities | ||
Repurchase of common stock | (25,015) | 0 |
Proceeds from stock-based compensation plans | 13,398 | 5,570 |
Net cash provided by (used in) financing activities | (11,617) | 5,570 |
Effects of exchange rate — changes in cash | (10,387) | 6,775 |
Net increase in cash and cash equivalents | 21,128 | 20,031 |
Cash and cash equivalents at beginning of period | 330,784 | 329,491 |
Cash and cash equivalents at end of period | $ 351,912 | $ 349,522 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries (“Commvault” or the “Company”) is a provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with data protection solutions supporting all major operating systems, applications, and databases on virtual and physical servers, NAS shares, cloud-based infrastructures, and mobile devices; management through a single console; multiple protection methods including backup and archive, snapshot management, replication, and content indexing for eDiscovery; efficient storage management using deduplication for disk, tape and cloud; integration with the industry's top storage arrays; complete virtual infrastructure management supporting multiple hypervisors; security capabilities to limit access to critical data; policy based data management; and an end-user experience that allows them to protect, find and recover their own data using common tools such as web browsers, Microsoft Outlook and File Explorer. In fiscal 2018 the Company also started selling appliances that integrate the Company's software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. The Company also provides its customers with a broad range of professional and customer support services. The consolidated financial statements as of June 30, 2018 and for the three months ended June 30, 2018 and 2017 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2018 . The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There have been no significant changes in the Company’s accounting policies during the three months ended June 30, 2018 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2018 . Recently Issued Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, a lessee will recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The Company will adopt this ASU in fiscal 2020. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on the financial statements. Related Party Transactions During the first quarter of fiscal 2018, one of our Directors, Joseph F. Eazor, was hired as the CEO of Rackspace, Inc ("Rackspace"). Total recognized revenue related to Rackspace in the first three months of fiscal 2019 and 2018 was $480 and $4,054 , respectively. The outstanding accounts receivable from this customer as of June 30, 2018 is $4,854 . Concentration of Credit Risk The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal. Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled approximately 37% and 36% of total revenues for the three months ended June 30, 2018 and 2017 , respectively. Arrow accounted for approximately 33% of total accounts receivable as of June 30, 2018 and 38% of total accounts receivable as of March 31, 2018 . Fair Value of Financial Instruments The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. The following table summarizes the composition of the Company’s financial assets measured at fair value at June 30, 2018 and March 31, 2018 : June 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 42,552 — — $ 42,552 Short-term investments $ — 110,566 — $ 110,566 March 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 43,545 — — $ 43,545 Short-term investments $ — 132,263 — $ 132,263 |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on April 1, 2017, using the full retrospective method. The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. The Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. The Company’s typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Software and Products Revenue Software Licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Appliances When control of the appliances passes to the customer; typically upon delivery Within 90 days of delivery except for certain subscriptions which are paid for over time Residual approach Customer Support Revenue Software Updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Professional Services Other Professional Services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education Services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The geographic regions that are tracked are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa) and APAC (Australia, New Zealand, Southeast Asia, China). The Company operates in one segment. Three Months Ended June 30, 2018 Americas EMEA APAC Total Software and Products Revenue $ 42,116 $ 22,025 $ 10,909 $ 75,050 Customer Support Revenue 60,426 20,359 9,621 90,406 Professional Services 5,785 3,226 1,710 10,721 Total Revenue $ 108,327 $ 45,610 $ 22,240 $ 176,177 Three Months Ended June 30, 2017 Americas EMEA APAC Total Software and Products Revenue $ 40,011 $ 23,772 $ 10,978 $ 74,761 Customer Support Revenue 56,189 17,111 8,590 81,890 Professional Services 4,861 2,545 1,915 9,321 Total Revenue $ 101,061 $ 43,428 $ 21,483 $ 165,972 Information about Contract Balances Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. In some arrangements the Company allows customers to pay for term based software licenses and products over the term of the software license. The Company refers to these as subscription transactions. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in Other assets. The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable (current) Unbilled Receivable (long-term) Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2018 $ 152,219 $ 9,900 $ 4,380 $ 241,113 $ 84,661 Increase/(decrease), net (11,362 ) 526 (421 ) (7,007 ) 3,482 Ending Balance as of June 30, 2018 $ 140,857 $ 10,426 $ 3,959 $ 234,106 $ 88,143 The decrease in accounts receivable is primarily a result of a sequential decrease in software and products revenue relative to the fourth quarter of the prior year as well as a concentration of customer support renewals in the second half of the fiscal year. The decrease in deferred revenue is primarily the result of a strengthening of the U.S. dollar and a sequential decrease in deferred customer support revenue related to software and products revenue transactions and customer support renewals relative to the fourth quarter of fiscal 2018. The amount of revenue recognized in the period that was included in the opening deferred revenue balance was $90,237 for the three months ended June 30, 2018 . The vast majority of this revenue consists of customer support arrangements. The amount of revenue recognized from performance obligations satisfied in prior periods was not significant. Remaining Performance Obligations In addition to the amounts included in deferred revenue as of June 30, 2018 , approximately $20,867 of revenue may be recognized from remaining performance obligations, of which $469 was related to software and products. The Company expects the software and products revenue to be recognized next quarter. The majority of the services revenue is related to other professional services which may be recognized over the next twelve months but is contingent upon a number of factors, including customers’ needs and schedules. |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The diluted weighted average shares outstanding exclude outstanding stock options, restricted stock units, performance stock options, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling approximately 6,274 and 7,775 for the three months ended June 30, 2018 and 2017 , respectively, because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions. On February 27, 2017, Realtime Data LLC d/b/a/ IXO (“Realtime”), a non-practicing entity, sued the Company and Spectra Logic Corporation in the Eastern District of Texas for alleged infringement of four patents: U.S. Patent Nos. 9,054,728, 7,415,530, 9,116,908, and 8,717,204. Realtime dismissed the case in Texas and refiled this case in the District of Delaware on July 10, 2017. Realtime has sued numerous other companies for infringement of these and other patents. Realtime seeks monetary damages and an injunction. The Company responded to the complaint by filing a motion to dismiss on the grounds that the patents are directed to patent-ineligible subject matter. The Court has not yet ruled on this motion. Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter. The Company is unable at this time to determine whether the outcome of the litigation will have a material impact on its results of operations, financial condition or cash flows. The Company intends to defend itself vigorously. As of June 30, 2018 , the Company has not recorded an accrual for this matter as it has concluded that the probability of loss is remote. |
Capitalization
Capitalization | 3 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Capitalization | Capitalization During the three months ended June 30, 2018 , the company repurchased $ 25,015 of common stock ( 366 shares). As of June 30, 2018, $87,826 remained in the current stock repurchase authorization which expires on March 31, 2019. |
Stock Plans
Stock Plans | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development and General and administrative expenses and Restructuring for the three months ended June 30, 2018 and 2017 . Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended June 30, 2018 2017 Cost of services revenue $ 756 $ 751 Sales and marketing 9,524 9,440 Research and development 2,215 2,070 General and administrative 4,599 7,303 Restructuring 910 — Stock-based compensation expense $ 18,004 $ 19,564 As of June 30, 2018 , there was approximately $88,472 of unrecognized stock-based compensation expense related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted average period of 1.58 years. The Company accounts for forfeitures as they occur. To the extent that awards are forfeitured, stock-based compensation will be different from the Company’s current estimate. Stock Options Stock Option activity for the three months ended June 30, 2018 is as follows: Options Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2018 4,402 $ 48.64 Options granted — — Options exercised (446 ) 30.05 Options forfeited (1 ) 45.52 Options expired (28 ) 85.41 Outstanding as of June 30, 2018 3,927 $ 50.50 4.04 $ 78,513 Exercisable as of June 30, 2018 3,797 $ 50.70 3.96 $ 75,755 The total intrinsic value of options exercised was $16,760 for the three months ended June 30, 2018 and $7,002 for the three months ended June 30, 2017 . The Company’s policy is to issue new shares upon exercise of options as the Company does not hold shares in treasury. Restricted Stock Units Restricted stock unit activity for the three months ended June 30, 2018 is as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2018 2,166 $ 54.13 Awarded 335 71.58 Vested (382 ) 52.83 Forfeited (96 ) 55.61 Non-vested as of June 30, 2018 2,023 $ 56.78 The weighted average fair value of restricted stock units awarded was $71.58 per unit during the three months ended June 30, 2018 , and $60.19 per unit during the three months ended June 30, 2017 . The weighted average fair value of awards includes the awards with a market condition described below. Performance Based Awards In the three months ended June 30, 2018 , the Company granted 72 performance restricted stock units ("PSU") to certain executives. Vesting of these awards is contingent upon i) the Company meeting certain company-wide revenue and non-GAAP performance goals (performance-based) in fiscal 2019 and ii) the Company's customary service periods. The awards vest over three years and have a maximum potential to vest at 200% ( 144 shares) based on actual fiscal 2019 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSU’s that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table. Awards with a Market Condition In the three months ended June 30, 2018 , the Company granted 75 market performance stock units to certain executives. The vesting of these awards is contingent upon the Company meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years. The awards vest in three annual tranches and have a maximum potential to vest at 200% ( 150 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the three months ended June 30, 2018 was $81.78 . The awards are included in the restricted stock unit table. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $2,649 in the three months ended June 30, 2018 compared to a benefit of $3,837 in the three months ended June 30, 2017 . In fiscal 2018 the Company determined that it is more likely than not that it will not realize the benefits of its gross deferred tax assets and therefore recorded a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero . The tax expense for the three months ended June 30, 2018 relates primarily to current foreign taxes. Impact of U.S. Tax Reform The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. As of June 30, 2018 , the Company has not completed the accounting for the tax effects of enactment of the Act; however, it has made a reasonable estimate of the effects on existing deferred tax balances. These amounts are provisional and subject to change. The most significant impact of the legislation for the Company was the reduction of the value of the Company's net deferred tax assets (which represent future tax benefits) as a result of lowering the U.S. corporate income tax rate from 35% to 21% . The Act also includes a requirement to pay a one-time transition tax on the cumulative value of earnings and profits that were previously not repatriated for U.S. income tax purposes. Based on analysis completed to date the one-time transition tax is expected to be zero . No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. The Company also continues to evaluate the impact of the GILTI provisions under the Act which are complex and subject to continuing regulatory interpretation by the U.S. Internal Revenue Service (IRS). The Company is required to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company’s accounting policy election with respect to the new GILTI Tax rules will depend, in part, on analyzing its global income to determine whether it can reasonably estimate the tax impact. While the Company has included an estimate of GILTI in its estimated effective tax rate for fiscal 2019, it has not completed its analysis and has not determined which method to elect. Adjustments related to the amount of GILTI recorded in the financial statements may be required based on the outcome of this election. However, there is no impact on tax expense in the first quarter due to the valuation allowance recorded against deferred tax assets. The Act also requires other complex computations to be performed that were not previously required in U.S. tax law, judgments to be made in interpretation of the provisions of the Act, estimates in calculations, and the preparation and analysis of information not previously relevant or regularly produced. The U.S. Treasury Department, the IRS, and other standard-setting bodies could interpret or issue guidance on how provisions of the Act will be applied or otherwise administered that is different from our current interpretation. |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In fiscal 2019, the Company initiated a restructuring plan to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. During the quarter the Company incurred total restructuring charges of $7,895 . These restructuring charges relate primarily to severance and related costs associated with headcount reductions. These charges include $910 of stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan. The activity in the Company’s restructuring accruals for the three months ended June 30, 2018 is summarized as follows: Total Balance at March 31, 2018 $ — Restructuring charges 7,895 Payments (4,576 ) Balance at June 30, 2018 $ 3,319 As of June 30, 2018, the outstanding restructuring accruals primarily relate to future severance payments. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements as of June 30, 2018 and for the three months ended June 30, 2018 and 2017 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2018 . The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Leases In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). Under ASU 2016-02, a lessee will recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The Company will adopt this ASU in fiscal 2020. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on the financial statements. |
Concentration of Credit Risk | The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal. |
Fair Value of Financial Instruments | The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. |
Revenue | The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on April 1, 2017, using the full retrospective method. The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. The Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Financial Assets Measured at Fair Value | The following table summarizes the composition of the Company’s financial assets measured at fair value at June 30, 2018 and March 31, 2018 : June 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 42,552 — — $ 42,552 Short-term investments $ — 110,566 — $ 110,566 March 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 43,545 — — $ 43,545 Short-term investments $ — 132,263 — $ 132,263 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The Company’s typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Software and Products Revenue Software Licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Appliances When control of the appliances passes to the customer; typically upon delivery Within 90 days of delivery except for certain subscriptions which are paid for over time Residual approach Customer Support Revenue Software Updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Professional Services Other Professional Services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education Services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations |
Disaggregation of Revenue | Three Months Ended June 30, 2018 Americas EMEA APAC Total Software and Products Revenue $ 42,116 $ 22,025 $ 10,909 $ 75,050 Customer Support Revenue 60,426 20,359 9,621 90,406 Professional Services 5,785 3,226 1,710 10,721 Total Revenue $ 108,327 $ 45,610 $ 22,240 $ 176,177 Three Months Ended June 30, 2017 Americas EMEA APAC Total Software and Products Revenue $ 40,011 $ 23,772 $ 10,978 $ 74,761 Customer Support Revenue 56,189 17,111 8,590 81,890 Professional Services 4,861 2,545 1,915 9,321 Total Revenue $ 101,061 $ 43,428 $ 21,483 $ 165,972 |
Contract with Customer, Asset and Liability | The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable (current) Unbilled Receivable (long-term) Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2018 $ 152,219 $ 9,900 $ 4,380 $ 241,113 $ 84,661 Increase/(decrease), net (11,362 ) 526 (421 ) (7,007 ) 3,482 Ending Balance as of June 30, 2018 $ 140,857 $ 10,426 $ 3,959 $ 234,106 $ 88,143 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development and General and administrative expenses and Restructuring for the three months ended June 30, 2018 and 2017 . Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended June 30, 2018 2017 Cost of services revenue $ 756 $ 751 Sales and marketing 9,524 9,440 Research and development 2,215 2,070 General and administrative 4,599 7,303 Restructuring 910 — Stock-based compensation expense $ 18,004 $ 19,564 |
Schedule of Stock Option Activity | Stock Option activity for the three months ended June 30, 2018 is as follows: Options Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2018 4,402 $ 48.64 Options granted — — Options exercised (446 ) 30.05 Options forfeited (1 ) 45.52 Options expired (28 ) 85.41 Outstanding as of June 30, 2018 3,927 $ 50.50 4.04 $ 78,513 Exercisable as of June 30, 2018 3,797 $ 50.70 3.96 $ 75,755 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the three months ended June 30, 2018 is as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2018 2,166 $ 54.13 Awarded 335 71.58 Vested (382 ) 52.83 Forfeited (96 ) 55.61 Non-vested as of June 30, 2018 2,023 $ 56.78 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The activity in the Company’s restructuring accruals for the three months ended June 30, 2018 is summarized as follows: Total Balance at March 31, 2018 $ — Restructuring charges 7,895 Payments (4,576 ) Balance at June 30, 2018 $ 3,319 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Related Party Transactions (Details) - Director - Director on Company's board of directors hired as CEO of Rackspace, Inc. - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||
Revenue from related party | $ 480 | $ 4,054 |
Accounts receivable from related party | $ 4,854 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 37.00% | 36.00% | |
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 33.00% | 38.00% |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 42,552 | $ 43,545 |
Short-term investments | 110,566 | 132,263 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 42,552 | 43,545 |
Short-term investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 110,566 | 132,263 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | $ 0 | $ 0 |
Revenue - Additional Informati
Revenue - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($)revenue_sourcesegment | |
Revenue from Contract with Customer [Abstract] | |
Sources of primary revenue | revenue_source | 2 |
Customer support agreement term | 1 year |
Number of operating segments | segment | 1 |
Revenue recognized in period, included in opening deferred revenue balance | $ 90,237 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | 20,867 |
Software and Products Revenue | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 469 |
Revenue - Performance Obligati
Revenue - Performance Obligations (Details) | 3 Months Ended |
Jun. 30, 2018 | |
Software, licenses | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Software, appliances | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Professional Services, other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Professional Services, education services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Revenue - Disaggregation of Re
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 176,177 | $ 165,972 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 108,327 | 101,061 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 45,610 | 43,428 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 22,240 | 21,483 |
Software and Products Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 75,050 | 74,761 |
Software and Products Revenue | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 42,116 | 40,011 |
Software and Products Revenue | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 22,025 | 23,772 |
Software and Products Revenue | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 10,909 | 10,978 |
Customer Support Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 90,406 | 81,890 |
Customer Support Revenue | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 60,426 | 56,189 |
Customer Support Revenue | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 20,359 | 17,111 |
Customer Support Revenue | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9,621 | 8,590 |
Professional Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 10,721 | 9,321 |
Professional Services | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5,785 | 4,861 |
Professional Services | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,226 | 2,545 |
Professional Services | APAC | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 1,710 | $ 1,915 |
Revenue - Opening and Closing
Revenue - Opening and Closing Balances of Accounts Receivable, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Accounts Receivable [Roll Forward] | |
Opening Balance as of March 31, 2018 | $ 152,219 |
Increase/(decrease), net | (11,362) |
Ending Balance as of June 30, 2018 | 140,857 |
Unbilled Receivable (current) [Roll Forward] | |
Opening Balance as of March 31, 2018 | 9,900 |
Increase/(decrease), net | 526 |
Ending Balance as of June 30, 2018 | 10,426 |
Unbilled Receivable (long-term) [Roll Forward] | |
Opening Balance as of March 31, 2018 | 4,380 |
Increase/(decrease), net | (421) |
Ending Balance as of June 30, 2018 | 3,959 |
Deferred Revenue (current) [Roll Forward] | |
Opening Balance as of March 31, 2018 | 241,113 |
Increase/(decrease), net | (7,007) |
Ending Balance as of June 30, 2018 | 234,106 |
Deferred Revenue (long-term) [Roll Forward] | |
Opening Balance as of March 31, 2018 | 84,661 |
Increase/(decrease), net | 3,482 |
Ending Balance as of June 30, 2018 | $ 88,143 |
Net Income per Common Share -
Net Income per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation (in shares) | 6,274 | 7,775 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Details) | Feb. 27, 2017patent |
Realtime | Pending | |
Loss Contingencies [Line Items] | |
Number of patents involved in alleged infringement | 4 |
Capitalization - Additional In
Capitalization - Additional Information (Details) shares in Thousands, $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($)shares | |
Class of Stock [Line Items] | |
Amount of common stock repurchased | $ 25,015 |
Common stock repurchase program | |
Class of Stock [Line Items] | |
Amount of common stock repurchased | $ 25,015 |
Number of shares repurchased (in shares) | shares | 366 |
Remaining value of common stock to be repurchased under share repurchase program | $ 87,826 |
Stock Plans - Stock-Based Comp
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 18,004 | $ 19,564 |
Cost of services revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 756 | 751 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 9,524 | 9,440 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2,215 | 2,070 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 4,599 | 7,303 |
Restructuring | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 910 | $ 0 |
Stock Plans - Additional Infor
Stock Plans - Additional Information (Details) - Stock options and restricted stock units $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 88,472 |
Weighted average period awards are expected to be recognized | 1 year 6 months 29 days |
Stock Plans - Activity for Com
Stock Plans - Activity for Company's Two Stock Incentive Plans (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Number of Options | |
Outstanding (in shares) as of March 31, 2018 | shares | 4,402 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (446) |
Options forfeited (in shares) | shares | (1) |
Options expired (in shares) | shares | (28) |
Outstanding (in shares) as of June 30, 2018 | shares | 3,927 |
Exercisable (in shares) as of June 30, 2018 | shares | 3,797 |
Weighted- Average Exercise Price | |
Outstanding (in dollars per share) as of March 31, 2018 | $ / shares | $ 48.64 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 30.05 |
Options forfeited (in dollars per share) | $ / shares | 45.52 |
Options expired (in dollars per share) | $ / shares | 85.41 |
Outstanding (in dollars per share) as of June 30, 2018 | $ / shares | 50.50 |
Exercisable (in dollars per share) as of June 30, 2018 | $ / shares | $ 50.70 |
Weighted- Average Remaining Contractual Term (Years) | |
Outstanding (in years) as of June 30, 2018 | 4 years 14 days |
Exercisable (in years) as of June 30, 2018 | 3 years 11 months 15 days |
Aggregate Intrinsic Value | |
Outstanding as of June 30, 2018 | $ | $ 78,513 |
Exercisable as of June 30, 2018 | $ | $ 75,755 |
Stock Plans - Stock Options Ad
Stock Plans - Stock Options Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Total intrinsic value of options exercised | $ 16,760 | $ 7,002 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Unit Activity (Details) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Awards | ||
Non-vested (in shares) as of March 31, 2018 | 2,166 | |
Awarded (in shares) | 335 | |
Vested (in shares) | (382) | |
Forfeited (in shares) | (96) | |
Non-vested (in shares) as of June 30, 2018 | 2,023 | |
Weighted Average Grant Date Fair Value | ||
Non-vested (in dollars per share) as of March 31, 2018 | $ 54.13 | |
Awarded (in dollars per share) | 71.58 | $ 60.19 |
Vested (in dollars per share) | 52.83 | |
Forfeited (in dollars per share) | 55.61 | |
Non-vested (in dollars per share) as of June 30, 2018 | $ 56.78 |
Stock Plans - Restricted Sto37
Stock Plans - Restricted Stock Units Additional Information (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value, units awarded (in dollars per share) | $ 71.58 | $ 60.19 |
Stock Plans - Performance-base
Stock Plans - Performance-based and Market-based Awards (Details) shares in Thousands | 3 Months Ended |
Jun. 30, 2018tranche$ / sharesshares | |
PSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded (in shares) | 72 |
Service period | 3 years |
Maximum potential to vest (as a percentage) | 200.00% |
Maximum potential to vest (in shares) | 144 |
Market performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded (in shares) | 75 |
Service period | 3 years |
Number of annual tranches | tranche | 3 |
Maximum potential to vest (as a percentage) | 200.00% |
Maximum potential to vest (in shares) | 150 |
Weighted average fair value, units awarded (in dollars per share) | $ / shares | $ 81.78 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 2,649,000 | $ (3,837,000) |
Deferred tax assets | 0 | |
Tax cuts and jobs act, transition tax | $ 0 |
Restructuring - Additional Inf
Restructuring - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 7,895 | $ 0 |
Stock-Based Compensation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 910 |
Restructuring - Restructuring
Restructuring - Restructuring Accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2018 | $ 0 | |
Restructuring charges | 7,895 | $ 0 |
Payments | (4,576) | |
Balance at June 30, 2018 | $ 3,319 |