| Restatement of Previously Issued Condensed Consolidated Financial Statements | Restatement of Previously Issued Condensed Consolidated Financial Statements In August 2017, prior to the issuance of the Company’s consolidated financial statements for the fiscal year ended June 30, 2017, the audit committee (the “Audit Committee”) of the Company’s Board of Directors (the “Board”) commenced an investigation (the “Investigation”) into certain accounting and internal control matters at the Company, principally focused on certain revenue recognition matters. The Investigation was conducted with the assistance of outside counsel, which retained forensic accountants to assist them in their work. Following the conclusion of the Investigation, the Audit Committee directed its outside counsel and its forensic accountants to conduct additional procedures on an expanded scope of revenue recognition matters. Concurrent with these additional procedures, new members of the Company’s management, under the direction of the Audit Committee, performed a thorough analysis of the Company’s historical financial statements, accounting policies and financial reporting, as well as the Company’s disclosure controls and procedures and its internal control over financial reporting. During the course of the Investigation, the further procedures by outside counsel and the management analysis (collectively, the “Investigation, Procedures and Analysis”), the Audit Committee and management determined certain employees had violated the Company’s Code of Business Conduct and Ethics and discovered accounting and financial reporting errors and certain irregularities. On November 14, 2018, the Board, upon the recommendation, and with the concurrence, of the Audit Committee and new members of management, concluded that certain previously filed consolidated financial statements and related financial information should no longer be relied upon. As a result, within these condensed consolidated financial statements, the Company has included the restated condensed consolidated financial statements as of December 31, 2016 and June 30, 2016 and for the three and six months ended December 31, 2016 and December 31, 2015, which is referred to as the "Restatement". The Restatement corrects errors and certain irregularities which are discussed in detail within this footnote. The errors and certain irregularities primarily related to the timing of recognition of (i) revenue, (ii) expenses related to certain inventory used for engineering and marketing purposes and (iii) expenses related to defective products under warranty not returned by customers. Additionally, errors were identified whereby the Company had derecognized inventory while control over such inventory was retained because the Company was obligated to buy it back. Restatement The following is a discussion of the restatement adjustments that were made to the Company’s previously issued condensed consolidated financial statements. (a) Product revenue During the three and six months ended December 31, 2016 and 2015, product revenue was recognized prematurely. As a result of the information gathered in the Investigation, Procedures and Analysis, it was determined that there was an aggressive focus on quarterly revenue without sufficient focus on compliance by an appropriate number of competent resources, and all relevant information was not communicated among the Company’s internal functions as well as the management to both the Audit Committee and the independent auditors that resulted in the inappropriate recording of revenue with insufficient documentation or rigorous assessment of revenue transactions. The Company found instances where (i) title and risk of loss had not transferred to the customer, (ii) persuasive evidence of an arrangement with the customer consistent with the Company’s customary business practices was not present, (iii) the distributor’s price was not fixed or determinable, or (iv) collectibility was not reasonably assured, all of which resulted in premature recognition of revenue. Also, during the three and six months ended December 31, 2016 and 2015, revenue was misstated as it was determined from the information gathered in the Investigation, Procedures and Analysis there was a misapplication of accounting principles related to the classification of consideration paid to customers under the Company’s cooperative marketing arrangements for which the Company did not receive an identifiable benefit. To correct the errors and certain irregularities related to premature revenue recognition, the related revenue and cost of sales were reversed in the period in which the accounting errors took place and have been recognized in subsequent periods when all of the revenue recognition criteria were met. The correction of these errors resulted in net sales for the three and six months ended December 31, 2016 being increased by $10.9 million and $10.3 million , respectively, and net sales for the three and six months ended December 31, 2015 being increased by $5.9 million and $19.6 million , respectively, and cost of sales for the three and six months ended December 31, 2016 being increased by $8.4 million and $7.3 million , respectively, and cost of sales for the three and six months ended December 31, 2015 being increased by $6.2 million and $19.7 million , respectively from amounts previously reported. Additionally, certain related adjustments to reverse accounts receivable, net of $52.5 million and to recognize inventories of $42.8 million were made to amounts previously reported as of December 31, 2016. The Company made similar adjustments to reverse accounts receivable, net, of $60.6 million and to recognize inventories of $48.7 million to amounts previously reported as of June 30, 2016. Additionally, certain related adjustments to accounts payable and accrued liabilities, which also impacted cost of sales and sales and marketing expense, were made to the condensed consolidated financial statements in which the accounting errors and certain irregularities occurred. The Company corrected errors related to consideration paid to customers under the Company’s cooperative marketing arrangements for which the Company did not receive an identifiable benefit, as well as the value of free samples provided to customers. These transactions were incorrectly recorded as sales and marketing expense and have now been corrected and recorded as a reduction of revenue. The correction of these errors resulted in net sales and sales and marketing expense for the three and six months ended December 31, 2016 being reduced by $1.0 million and $2.1 million , respectively, net sales and sales and marketing expense for the three and six months ended December 31, 2015 being reduced by $0.8 million and $1.6 million , respectively, from amounts previously reported. (b) Services revenue During the three and six months ended December 31, 2016 and 2015, services revenue was misstated as it was determined that as a result of the information gathered in the Investigation, Procedures and Analysis there were errors related to inaccurate allocation of contract consideration for multiple element arrangements resulting from (a) lack of proper identification or accounting for contractual service obligations, (b) incorrect allocation of discounts to service related deliverables, and (c) lack of a robust process resulting in inaccurate determination of BESP. Additionally, there were misalignments of the revenue recognition period and the contractual requisite service period. Consequently, certain contracts for extended warranties on products or on-site services in multiple element arrangements were incorrectly recorded as revenue at the time of sale of the product instead of being deferred and amortized over the contractual warranty or service period. The Company had previously identified a portion of these errors in the amount of $9.0 million related to extended warranty in a prior period and had adjusted the condensed consolidated financial statements for the fiscal quarter ended September 30, 2015 for their cumulative effect with an out-of-period correction to revenues. To correct these errors, the Company reversed the revenue and the out-of-period correction to revenues in the period in which the accounting errors or out-of-period adjustment took place, quantified an amount for these services by determining a best estimated selling price for these services based on a percentage of the separately priced product deliverables in the arrangement, and deferred and amortized the quantified amount of revenue over the contractual warranty or service period. Additionally, certain related adjustments to deferred revenues, which are included in accrued liabilities and other long-term liabilities, were made to the condensed consolidated balance sheet at the end of the period in which the errors occurred. The correction of these errors resulted in net sales for the three and six months ended December 31, 2016 being increased by $1.6 million and $3.3 million , respectively, net sales for the three months ended December 31, 2015 being decreased by $2.6 million , and net sales for the six months ended December 31, 2015 being increased by $4.3 million . The effect of the correction also resulted in accrued liabilities being increased by $6.4 million , and other long-term liabilities being increased by $4.2 million as of December 31, 2016 from amounts previously reported. Accrued liabilities were increased by $9.3 million and other long-term liabilities by $4.6 million as of June 30, 2016 from amounts previously reported. (c) Inventory As of December 31, 2016 and June 30, 2016, inventories were overstated due to misapplication of accounting principles, whereby materials issued from inventory to research and development projects and marketing with no alternative use were included as inventory and expensed upon completion of a project rather than being expensed upon consumption. Also as of December 31, 2016 and June 30, 2016, inventories were understated due to misapplication of accounting principles, whereby (i) inventory of materials transferred to certain contract manufacturers was improperly derecognized upon transfer that the Company retained control over the materials because it was obligated to buy them back; and (ii) in-transit inventory was not being recorded in the appropriate period due to improper cut-off procedures. To correct the errors related to inventory overstatement, the Company has recorded the materials as a research and development expense, or a marketing expense, in the period that inventory was consumed. The correction of the overstatement of errors resulted in a $4.8 million decrease in inventories as of December 31, 2016 from amounts previously reported. The Company made similar adjustments to decrease inventories by $2.1 million as of June 30, 2016 from amounts previously reported. To correct the errors related to inventory understatement, the Company has adjusted the carrying value of inventory in the periods in which the accounting errors took place. The correction of these understatement errors resulted in a $30.4 million increase in inventories, as well as $25.6 million increase in accrued liabilities as of December 31, 2016 from amounts previously reported. Additionally, certain related adjustments to cost of sales, inventories, accounts payable and accrued liabilities were made to the condensed consolidated financial statements in the period in which the errors occurred. The Company made similar adjustments to increase inventories and accrued liabilities by $20.8 million and $16.1 million as of June 30, 2016, respectively, from amounts previously reported. (d) Other The Company corrected the following errors impacting the condensed consolidated financial statements: • The Company did not correctly record receivables from suppliers as prepaid expenses and other current assets. The correction of this error resulted in a $65.1 million decrease in accounts receivable, net, a $83.3 million increase in prepaid expenses and other current assets, and an increase to accounts payable of $18.2 million as of December 31, 2016 from amounts previously reported. The Company made similar adjustments as of June 30, 2016 from amounts previously reported which resulted in a $56.3 million decrease in accounts receivable, net, a $63.6 million increase in prepaid expenses and other current assets, and an increase to accounts payable of $7.3 million . • The Company did not record the payments for certain payroll tax related liabilities, as well as did not accrue certain withholding tax liabilities, in the appropriate periods. The correction of the error resulted in a $2.1 million decrease in cash and cash equivalents, and a corresponding decrease in accrued liabilities as of December 31, 2016 from amounts previously reported. The Company made similar adjustments as of June 30, 2016 from amounts previously reported which resulted in a $2.1 million decrease in cash and cash equivalents, and a corresponding decrease in accrued liabilities. The Company corrected other immaterial misstatements relating to (i) sales taxes, (ii) stock-based compensation expense, (iii) accounts receivable and related allowances, (iv) other assets, (v) accounts payable, and (vi) prepaid expenses and other current assets. Additionally, the Company changed the presentation of foreign exchange gains and (losses) of $0.6 million and $0.1 million for the three and six months ended December 31, 2016 and $(0.5) million and $1.4 million for the three and six months ended December 31, 2015, respectively, from general and administrative expenses, as previously reported, to other income (expense), net in the condensed consolidated statement of operations. (e) Income taxes The Company has recorded tax adjustments to reflect the impacts of the Restatement and other income tax related error corrections. Impact on Condensed Consolidated Statements of Operations The effect of the Restatement described above on the accompanying condensed consolidated statements of operations for the three and six months ended December 31, 2016 and 2015 is as follows (in thousands, except per share amounts): Three Months Ended December 31, 2016 As Previously Reported Product Revenue Services Revenue Inventories Other Income Taxes As Restated Net sales (1) $ 651,954 $ 9,609 $ 1,637 $ — $ — $ — $ 663,200 Cost of sales (1) 558,576 8,099 — 274 115 — 567,064 Gross profit 93,378 1,510 1,637 (274 ) (115 ) — 96,136 Operating expenses: Research and development 34,033 — — 1,506 (81 ) — 35,458 Sales and marketing 18,153 (991 ) — (366 ) (20 ) — 16,776 General and administrative 9,429 — — — 952 — 10,381 Total operating expenses 61,615 (991 ) — 1,140 851 — 62,615 Income from operations 31,763 2,501 1,637 (1,414 ) (966 ) — 33,521 Other income (expense), net 45 — — — 645 — 690 Interest expense (497 ) — — — — — (497 ) Income before income tax provision 31,311 2,501 1,637 (1,414 ) (321 ) — 33,714 Income tax provision 9,315 — — — — 1,523 10,838 Net income $ 21,996 $ 2,501 $ 1,637 $ (1,414 ) $ (321 ) $ (1,523 ) $ 22,876 Net income per common share: Basic $ 0.46 $ 0.48 Diluted $ 0.43 $ 0.44 Weighted-average shares used in calculation of net income per common share: Basic 48,124 48,124 Diluted 51,521 51,521 __________________________ (1) Transactions with related parties are included in the line items above as follows: Three Months Ended December 31, 2016 2016 As Previously Reported Adjustments As Restated Net sales $ 7,003 $ (593 ) $ 6,410 Cost of sales* 64,930 69 64,999 * Represents purchases from related parties. Six Months Ended December 31, 2016 As Previously Reported Product Revenue Services Revenue Inventories Other Income Taxes As Restated Net sales (1) $ 1,180,922 $ 7,706 $ 3,335 $ — $ — $ — $ 1,191,963 Cost of sales (1) 1,007,480 6,725 — (1,132 ) 202 — 1,013,275 Gross profit 173,442 981 3,335 1,132 (202 ) — 178,688 Operating expenses: Research and development 67,224 — — 2,700 (316 ) — 69,608 Sales and marketing 34,069 (2,041 ) — (81 ) (8 ) — 31,939 General and administrative 20,184 — — — 1,013 — 21,197 Total operating expenses 121,477 (2,041 ) — 2,619 689 — 122,744 Income from operations 51,965 3,022 3,335 (1,487 ) (891 ) — 55,944 Other income (expense), net 74 — — — 167 — 241 Interest expense (827 ) — — — — — (827 ) Income before income tax provision 51,212 3,022 3,335 (1,487 ) (724 ) — 55,358 Income tax provision 15,684 — — — — 1,425 17,109 Net income $ 35,528 $ 3,022 $ 3,335 $ (1,487 ) $ (724 ) $ (1,425 ) $ 38,249 Net income per common share: Basic $ 0.74 $ 0.79 Diluted $ 0.69 $ 0.74 Weighted-average shares used in calculation of net income per common share: Basic 48,144 48,144 Diluted 51,352 51,352 __________________________ (1) Transactions with related parties are included in the line items above as follows: Six Months Ended December 31, 2016 2016 As Previously Reported Adjustments As Restated Net sales $ 10,345 $ (371 ) $ 9,974 Cost of sales* 115,135 85 115,220 * Represents purchases from related parties. Three Months Ended December 31, 2015 As Previously Reported Product Revenue Services Revenue Inventories Other Income Taxes As Restated Net sales (1) $ 638,964 $ 4,833 $ (2,562 ) $ — $ — $ — $ 641,235 Cost of sales (1) 532,602 5,806 — (364 ) 4 — 538,048 Gross profit 106,362 (973 ) (2,562 ) 364 (4 ) — 103,187 Operating expenses: Research and development 30,264 — — 438 (43 ) — 30,659 Sales and marketing 16,461 (1,432 ) — 23 9 — 15,061 General and administrative 10,511 — — — (658 ) — 9,853 Total operating expenses 57,236 (1,432 ) — 461 (692 ) — 55,573 Income from operations 49,126 459 (2,562 ) (97 ) 688 — 47,614 Other income (expense), net 24 — — — (666 ) — (642 ) Interest expense (400 ) — — — — — (400 ) Income before income tax provision 48,750 459 (2,562 ) (97 ) 22 — 46,572 Income tax provision 14,061 — — — — (693 ) 13,368 Net income $ 34,689 $ 459 $ (2,562 ) $ (97 ) $ 22 $ 693 $ 33,204 Net income per common share: Basic $ 0.73 $ 0.70 Diluted $ 0.67 $ 0.64 Weighted-average shares used in calculation of net income per common share: Basic 47,651 47,651 Diluted 51,489 51,489 __________________________ (1) Transactions with related parties are included in the line items above as follows: Three Months Ended December 31, 2015 2015 As Previously Reported Adjustments As Restated Net sales $ 2,492 $ 3,406 $ 5,898 Six Months Ended December 31, 2015 As Previously Reported Product Revenue Services Revenue Inventories Other Income Taxes As Restated Net sales (1) $ 1,158,582 $ 17,449 $ 4,308 $ — $ — $ — $ 1,180,339 Cost of sales (1) 980,005 19,075 — 649 (52 ) — 999,677 Gross profit 178,577 (1,626 ) 4,308 (649 ) 52 — 180,662 Operating expenses: — Research and development 58,590 — — 445 (229 ) — 58,806 Sales and marketing 30,710 (2,224 ) — 128 24 — 28,638 General and administrative 18,711 — — — 1,688 — 20,399 Total operating expenses 108,011 (2,224 ) — 573 1,483 — 107,843 Income from operations 70,566 598 4,308 (1,222 ) (1,431 ) — 72,819 Other income (expense), net 111 — — — 1,315 — 1,426 Interest expense (724 ) — — — — — (724 ) Income before income tax provision 69,953 598 4,308 (1,222 ) (116 ) — 73,521 Income tax provision 21,565 — — — — 1,401 22,966 Net income $ 48,388 $ 598 $ 4,308 $ (1,222 ) $ (116 ) $ (1,401 ) $ 50,555 Net income per common share: Basic $ 1.02 $ 1.06 Diluted $ 0.94 $ 0.98 Weighted-average shares used in calculation of net income per common share: Basic 47,584 47,584 Diluted 51,405 51,405 __________________________ (1) Transactions with related parties are included in the line items above as follows: Six Months Ended December 31, 2015 2015 As Previously Reported Adjustments As Restated Net sales $ 7,712 $ 8,950 $ 16,662 Cost of sales* 130,712 693 131,405 * Represents purchases from related parties. Impact on Condensed Consolidated Balance Sheets The effect of the Restatement described above on the accompanying condensed consolidated balance sheets as of December 31, 2016 and June 30, 2016 is as follows (in thousands) As of December 31, 2016 As Previously Reported Product Revenue Services Revenue Inventories Other Income Taxes As Restated ASSETS Current assets: Cash and cash equivalents $ 128,752 $ — $ — $ — $ (2,144 ) $ — $ 126,608 Accounts receivable, net (1)* 366,885 (52,477 ) — — (64,794 ) — 249,614 Inventories 599,269 42,773 — 25,542 (364 ) — 667,220 Prepaid income taxes 5,164 — — — — — 5,164 Prepaid expenses and other current assets (1) 13,738 — — — 92,599 — 106,337 Total current assets 1,113,808 (9,704 ) — 25,542 25,297 — 1,154,943 Long-term investments 2,643 — — — — — 2,643 Property, plant, and equipment, net 193,670 — — — — — 193,670 Deferred income taxes, net 32,255 — — — — 3,856 36,111 Other assets 7,480 — — — 3,214 — 10,694 Total assets $ 1,349,856 $ (9,704 ) $ — $ 25,542 $ 28,511 $ 3,856 $ 1,398,061 Liabilities and Stockholders' Equity Current liabilities: Accounts payable (1) $ 341,940 $ (867 ) $ — $ 2,218 $ 29,961 $ — $ 373,252 Accrued liabilities (1) 74,331 (106 ) 6,350 25,836 1,090 — 107,501 Income taxes payable 1,048 — — — — 1,285 2,333 Short-term debt and current portion of long-term debt 92,443 — — — — — 92,443 Total current liabilities 509,762 (973 ) 6,350 28,054 31,051 1,285 575,529 Long-term debt 34,732 — — — — — 34,732 Other long-term liabilities 53,001 — 4,227 — — — 57,228 Total liabilities 597,495 (973 ) 10,577 28,054 31,051 1,285 667,489 Stockholders' equity: Common stock and additional paid-in capital 291,275 — — — 2,283 59 293,617 Treasury stock (20,491 ) — — — — — (20,491 ) Accumulated other comprehensive loss (83 ) — — — — — (83 ) Retained earnings 481,499 (8,731 ) (10,577 ) (2,512 ) (4,823 ) 2,512 457,368 Total Super Micro Computer, Inc. stockholders' equity 752,200 (8,731 ) (10,577 ) (2,512 ) (2,540 ) 2,571 730,411 Noncontrolling interest 161 — — — — — 161 Total stockholders’ equity 752,361 (8,731 ) (10,577 ) (2,512 ) (2,540 ) 2,571 730,572 Total liabilities and stockholders' equity $ 1,349,856 $ (9,704 ) $ — $ 25,542 $ 28,511 $ 3,856 $ 1,398,061 __________________________ * Previously reported allowances for accounts receivable as of December 31, 2016 were $2,771 , now corrected and restated to $2,969 . (1) Transactions with related parties are included in the line items above as follows: As of December 31, 2016 2016 As Reported Adjustments As Restated Accounts receivable, net $ 12,378 $ (12,285 ) $ 93 Prepaid expenses and other current assets — 23,507 23,507 Accounts payable 54,278 11,287 65,565 Accrued liabilities — 12,601 12,601 As of June 30, 2016 As Previously Reported Product Revenue Services Revenue Inventories Other Income Taxes As Restated ASSETS Current assets: Cash and cash equivalents $ 180,964 $ — $ — $ — $ (2,144 ) $ — $ 178,820 Accounts receivable, net (1)* 288,941 (60,590 ) — — (53,418 ) — 174,933 Inventories 448,980 48,714 — 18,205 908 — 516,807 Prepaid income taxes 5,682 — — — — (1,341 ) 4,341 Prepaid expenses and other current assets (1) 13,435 — — — 65,992 — 79,427 Total current assets 938,002 (11,876 ) — 18,205 11,338 (1,341 ) 954,328 Long-term investments 2,643 — — — — — 2,643 Property, plant, and equipment, net 187,949 — — — — — 187,949 Deferred income taxes, net 28,460 — — — — 5,218 33,678 Other assets 8,546 — — — 4,339 — 12,885 Total assets $ 1,165,600 $ (11,876 ) $ — $ 18,205 $ 15,677 $ 3,877 $ 1,191,483 Liabilities and Stockholders' Equity Current liabilities: Accounts payable (1) $ 249,239 $ 5 $ — $ 2,981 $ 15,166 $ — $ 267,391 Accrued liabilities (1) 55,618 (128 ) 9,313 16,251 2,542 — 83,596 Income taxes payable 5,172 — — — — (118 ) 5,054 Short-term debt and current portion of long-term debt 53,589 — — — — — 53,589 Total current liabilities 363,618 (123 ) 9,313 19,232 17,708 (118 ) 409,630 Long-term debt 40,000 — — — — — 40,000 Other long-term liabilities 40,603 — 4,597 — — — 45,200 Total liabilities 444,221 (123 ) 13,910 19,232 17,708 (118 ) 494,830 Stockholders' equity: — Common stock and additional paid-in capital 277,339 — — — 2,067 59 279,465 Treasury stock (2,030 ) — — — — — (2,030 ) Accumulated other comprehensive loss (85 ) — — — — — (85 ) Retained earnings 445,971 (11,753 ) (13,910 ) (1,027 ) (4,098 ) 3,936 419,119 Total Super Micro Computer, Inc. stockholders' equity 721,195 (11,753 ) (13,910 ) (1,027 ) (2,031 ) 3,995 696,469 Noncontrolling interest 184 — — — — — 184 Total stockholders’ equity 721,379 (11,753 ) (13,910 ) (1,027 ) (2,031 ) 3,995 696,653 Total liabilities and stockholders' equity $ 1,165,600 $ (11,876 ) $ — $ 18,205 $ 15,677 $ 3,877 $ 1,191,483 __________________________ * Previously reported allowances for accounts receivable as of June 30, 2016 were $2,721 , now corrected and restated to $2,413 . (1) Transactions with related parties are included in the line items above as follows: As of June 30, 2016 As Reported Adjustments As Restated Accounts receivable, net $ 4,678 $ (4,629 ) $ 49 Prepaid expenses and other current assets — 9,622 9,622 Accounts payable 39,152 5,789 44,941 Accrued liabilities — 5,354 5,354 Impact on Condensed Consolidated Statements of Cash Flows The effect of the Restatement described above on the accompanying condensed consolidated statements of cash flows for the six months ended December 31, 2016 and 2015 is as follows (in thousands): Six Months Ended December 31, 2016 As Previously Reported Adjustments As Restated OPERATING ACTIVITIES: Net income $ 35,528 $ 2,721 $ 38,249 Reconciliation of net income to net cash used in operating activities: Depreciation and amortization 7,711 — 7,711 Stock-based compensation expense 9,213 216 9,429 Excess tax benefits from stock-based compensation (745 ) — (745 ) Allowance for doubtful accounts 356 606 962 Provision for excess and obsolete inventories 6,391 34 6,425 Foreign currency exchange loss (gain) 232 (315 ) (83 ) Deferred income taxes, net (3,791 ) 1,358 (2,433 ) Changes in operating assets and liabilities: — Accounts receivable, net (1) (78,300 ) 2,816 (75,484 ) Inventories (156,680 ) (158 ) (156,838 ) Prepaid expenses and other assets (1) 941 (26,221 ) (25,280 ) Accounts payable (1) 96,774 13,263 110,037 Income taxes payable (3,176 ) 847 (2,329 ) Accrued liabilities (1) 18,234 4,875 23,109 Other long-term liabilities 12,442 (373 ) 12,069 Net cash used in operating activities (54,870 ) (331 ) (55,201 ) INVESTING ACTIVITIES: Purchases of property, plant and equipment (1) (17,372 ) — (17,372 ) Change in restricted cash (287 ) — (287 ) Net cash used in investing activities (17,659 ) — (17,659 ) FINANCING ACTIVITIES: Proceeds from debt, net of debt issuance costs 130,116 — 130,116 Repayment of debt (96,552 ) — (96,552 ) Payments to acquire treasury stock (18,461 ) — (18,461 ) Proceeds from exercise of stock options 5,873 — 5,873 Excess tax benefits from stock-based compensation 745 — 745 Payment of withholding tax on vesting of restricted stock units (1,542 ) — (1,542 ) Payments of obligations under capital leases (118 ) — (118 ) Advances under receivable financing arrangements 787 — 787 Net cash provided by financing activities 20,848 — 20,848 Effect of exchange rate fluctuations on cash (531 ) 331 (200 ) Net decrease in cash and cash equivalents (52,212 ) — (52,212 ) Cash and cash equivalents at beginning of period 180,964 (2,144 ) 178,820 Cash and cash equivalents at end of period $ 128,752 $ (2,144 ) $ 126,608 Supplemental disclosure of cash flow information: Cash paid for interest $ 749 $ — $ 749 Cash paid for taxes, net of refunds $ 20,004 $ — $ 20,004 Non-cash investing and financing activities: Equipment purchased under capital leases $ 86 $ — $ 86 Unpaid property, plant and equipment purchases (1) $ 5,325 $ 1,459 $ 6,784 __________________________ (1) Transactions with related parties are included in the line items above as follows: Six months ended December 31, 2016 2016 As Reported Adjustments As Restated OPERATING ACTIVITIES: Changes in operating assets and liabilities: Accounts receivable, net $ (7,700 ) $ 7,656 $ (44 ) Prepaid expenses and other assets — (13,885 ) (13,885 ) Accounts payable 15,126 5,498 20,624 Accrued liabilities — 7,247 7,247 INVESTING ACTIVITIES: Purchases of property, plant and equipment — (2,902 ) (2,902 ) NON-CASH INVESTING AND FINANCING ACTIVITIES: Unpaid property, plant and equipment purchases — 617 617 Six Months Ended December 31, 2015 As Previously Reported Adjustments As Restated OPERATING ACTIVITIES: Net income $ 48,388 $ 2,167 $ 50,555 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 5,953 — 5,953 Stock-based compensation expense 7,882 240 8,122 Excess tax benefits from stock-based compensation (355 ) — (355 ) Allowance for doubtful accounts 805 227 1,032 Provision for excess and obsolete inventories 3,780 (23 ) 3,757 Foreign currency exchange loss (gain) (1,539 ) 226 (1,313 ) Deferred income taxes, net (4,380 ) 1,022 (3,358 ) Changes in operating assets and liabilities: — Accounts receivable, net (1) 7,613 (28 ) 7,585 Inventories (26,818 ) 13,220 (13,598 ) Prepaid expenses and other assets (1) (4,259 ) (24,028 ) (28,287 ) Accounts payable (1) 20,738 2,563 23,301 Income taxes payable 650 960 1,610 Accrued liabilities (1) 9,715 8,566 18,281 Other long-term liabilities 18,749 (4,426 ) 14,323 Net cash provided by operating activities 86,922 686 87,608 INVESTING ACTIVITIES: Purchases of property, plant and equipment (1) (15,235 ) — (15,235 ) Change in restricted cash (404 ) — (404 ) Net cash used in investing activities (15,639 ) — (15,639 ) FINANCING ACTIVITIES: Proceeds from debt, net of debt issuance costs 14,400 — 14,400 Repayment of debt (13,300 ) — (13,300 ) Proceeds from exercise of stock options 2,439 — 2,439 Excess tax benefits from stock-based compensation 355 — 355 Payment of withholding tax on vesting of restricted stock units (504 ) — (504 ) Payments of obligations under capital leases (86 ) — (86 ) Payments under receivable financing arrangements (18 ) — (18 ) Net cash provided by financing activities 3,286 — 3,286 Effect of exchange rate fluctuations on cash (119 ) (208 ) (327 ) Net increase in cash and cash equivalents 74,450 478 74,928 Cash and cash equivalents at beginning of period 95,442 (2,522 ) 92,920 Cash and cash equivalents at end of period $ 169,892 $ (2,044 ) $ 167,848 Supplemental disclosure of cash flow information: Cash paid for interest $ 693 $ — $ 693 Cash paid for taxes, net of refunds $ 19,636 $ — $ 19,636 Non-cash investing and financing activities: Equipment purchased under capital leases $ 127 $ — $ 127 Unpaid property, plant and equipment purchases (1) $ 5,366 $ 2,441 $ 7,807 __________________________ (1) Transactions with related parties are included in the line items above as follows: Six months ended December 31, 2015 2015 As Reported Adjustments As Restated OPERATING ACTIVITIES: Changes in operating assets and liabilities: Accounts receivable, net $ 6,702 $ (6,675 ) $ 27 Prepaid expenses and other assets — (4,179 ) (4,179 ) Accounts payable 202 (922 ) (720 ) Accrued liabilities — 3,126 3,126 INVESTING ACTIVITIES: Purchases of property, plant and equipment — (1,436 ) (1,436 ) NON-CASH INVESTING AND FINANCING ACTIVITIES: Unpaid property, plant and equipment purchases — 998 998 |
