DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended |
Dec. 27, 2014 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | HAEMONETICS CORP |
Entity Central Index Key | 313143 |
Current Fiscal Year End Date | -25 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 27-Dec-14 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 51,491,568 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Income Statement [Abstract] | ||||
Net revenues | $231,827 | $242,120 | $683,895 | $697,418 |
Cost of goods sold | 120,166 | 120,491 | 357,842 | 344,494 |
Gross profit | 111,661 | 121,629 | 326,053 | 352,924 |
Operating expenses: | ||||
Research and development | 10,643 | 14,209 | 36,962 | 40,364 |
Selling, general and administrative | 82,758 | 89,560 | 260,089 | 277,879 |
Total operating expenses | 93,401 | 103,769 | 297,051 | 318,243 |
Operating income | 18,260 | 17,860 | 29,002 | 34,681 |
Interest and other expense, net | -2,308 | -2,852 | -7,496 | -8,035 |
Income before provision for (benefit from) income taxes | 15,952 | 15,008 | 21,506 | 26,646 |
Provision for (benefit from) income taxes | -36 | -1,282 | 1,679 | 1,682 |
Net income | 15,988 | 16,290 | 19,827 | 24,964 |
Net income per share - basic (in dollars per share) | $0.31 | $0.31 | $0.38 | $0.48 |
Net income per share - diluted (in dollars per share) | $0.31 | $0.31 | $0.38 | $0.48 |
Weighted average shares outstanding | ||||
Basic (in shares) | 51,432 | 51,730 | 51,521 | 51,485 |
Diluted (in shares) | 51,962 | 52,511 | 52,024 | 52,300 |
Comprehensive income | $8,346 | $17,289 | $10,841 | $24,463 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $125,200 | $192,469 |
Accounts receivable, less allowance of $1,975 at December 27, 2014 and $1,676 at March 29, 2014 | 143,635 | 164,603 |
Inventories, net | 212,493 | 197,661 |
Deferred tax asset, net | 16,172 | 14,144 |
Prepaid expenses and other current assets | 52,331 | 54,099 |
Total current assets | 549,831 | 622,976 |
Net property, plant and equipment | 323,491 | 271,437 |
Intangible assets, less accumulated amortization of $125,642 at December 27, 2014 and $101,694 at March 29, 2014 | 251,221 | 271,159 |
Goodwill | 334,990 | 336,768 |
Deferred tax asset, long term | 1,031 | 1,184 |
Other long-term assets | 13,581 | 10,654 |
Total assets | 1,474,145 | 1,514,178 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 7,748 | 45,630 |
Accounts payable | 46,830 | 53,562 |
Accrued payroll and related costs | 48,028 | 54,913 |
Accrued income taxes | 2,754 | 3,113 |
Other liabilities | 58,980 | 59,710 |
Total current liabilities | 164,340 | 216,928 |
Long-term debt, net of current maturities | 421,006 | 392,057 |
Long-term deferred tax liability | 25,871 | 29,664 |
Other long-term liabilities | 29,020 | 37,641 |
Stockholders’ equity: | ||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 51,491,568 shares at December 27, 2014 and 52,041,189 shares at March 29, 2014 | 515 | 520 |
Additional paid-in capital | 417,405 | 402,611 |
Retained earnings | 423,563 | 433,347 |
Accumulated other comprehensive income | -7,575 | 1,410 |
Total stockholders’ equity | 833,908 | 837,888 |
Total liabilities and stockholders’ equity | $1,474,145 | $1,514,178 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $1,975 | $1,676 |
Intangible assets, amortization | $125,642 | $101,694 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 51,491,568 | 52,041,189 |
Common stock, shares outstanding (in shares) | 51,491,568 | 52,041,189 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Cash Flows from Operating Activities: | ||
Net income | $19,827 | $24,964 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 63,891 | 59,063 |
Amortization of financing costs | 797 | 1,170 |
Stock compensation expense | 10,219 | 9,664 |
Purchase of in-process R&D | 0 | 3,569 |
Loss on sale of property, plant and equipment | 612 | 501 |
Unrealized loss from hedging activities | 1,477 | 351 |
Contingent consideration expense | 706 | 1,182 |
Asset write-down | 1,246 | 1,711 |
Change in accounts receivable, net | 14,422 | 20,432 |
Change in inventories | -17,906 | -24,627 |
Change in prepaid income taxes | -219 | -2,124 |
Change in other assets and other liabilities | -18,834 | 5,219 |
Tax benefit of exercise of stock options | 961 | 2,906 |
Change in accounts payable and accrued expenses | -5,326 | -15,928 |
Net cash provided by operating activities | 71,873 | 88,053 |
Cash Flows from Investing Activities: | ||
Capital expenditures on property, plant and equipment | -100,530 | -43,721 |
Proceeds from sale of property, plant and equipment | 387 | 197 |
Acquisition of Hemerus | 0 | -23,124 |
Other acquisitions and investments | 0 | 8,374 |
Net cash used in investing activities | -100,143 | -75,022 |
Cash Flows from Financing Activities: | ||
Payments on long-term real estate mortgage | -778 | -715 |
Net increase in short-term loans | -357 | -4,426 |
Repayment of term loan borrowings | -8,531 | -28,531 |
Proceeds from employee stock purchase plan | 4,763 | 5,229 |
Proceeds from exercise of stock options | 7,926 | 11,699 |
Excess tax benefit on exercise of stock options | 0 | 2,076 |
Share repurchases | -38,701 | 0 |
Net cash used in financing activities | -35,678 | -14,668 |
Effect of exchange rates on cash and cash equivalents | -3,321 | 363 |
Net Change in Cash and Cash Equivalents | -67,269 | -1,274 |
Cash and Cash Equivalents at Beginning of Period | 192,469 | 179,120 |
Cash and Cash Equivalents at End of Period | 125,200 | 177,846 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 6,271 | 6,973 |
Income taxes paid | 10,727 | 4,093 |
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $5,755 | $7,967 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 27, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
Our accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of our management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. All intercompany transactions have been eliminated. Operating results for the nine months ended are not necessarily indicative of the results that may be expected for the full fiscal year ending March 28, 2015, or any other interim period. Operating results for the three and nine months ended December 27, 2014 include the correction of an overstatement of operating expenses in prior periods. Absent this correction, operating expenses would have been $1.7 million higher in the three and nine months ended December 27, 2014 than the amounts included in the accompanying Consolidated Statements of Income and Comprehensive Income. This overstatement was due to an error in the computation of the restructuring accrual for severance and employee benefits incurred in connection with the Company’s ongoing Value Creation and Capture initiatives and the cost of parts used to maintain our Haemonetics owned equipment. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended March 29, 2014. | |
We consider events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. We had no significant subsequent events. | |
Our fiscal year ends on the Saturday closest to the last day of March. Fiscal years 2015 and 2014 include 52 weeks with each quarter having 13 weeks. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 27, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU No. 2014-08 limits the requirement to report discontinued operations to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments also require expanded disclosures concerning discontinued operations and disclosures of certain financial results attributable to a disposal of a significant component of an entity that does not qualify for discontinued operations reporting. The amendments in ASU No. 2014-08 are effective prospectively for reporting periods beginning on or after December 15, 2014, with early adoption permitted. Management does not believe that the adoption of ASU No. 2014-08 will have a material effect on our Financial Statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 will be effective for the Company retrospectively beginning April 2, 2017, with early adoption not permitted. The impact of adopting ASU No. 2014-09 on our Financial Statements is being assessed by management. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. ASU No. 2014-12 is effective in our first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU No. 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. Management does not believe that the adoption of ASU No. 2014-12 will have a material effect on our Financial Statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance will be effective for all entities in the first annual period ending after December 15, 2016; however, early adoption is permitted. Management does not believe that the adoption of ASU No. 2014-15 will have a material effect on our Financial Statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates from GAAP the concept of extraordinary items. An entity will no longer be required to (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. ASU No. 2015-01 will be effective for fiscal years beginning after December 15, 2015. An entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Management does not believe that the adoption of ASU No. 2015-01 will have a material effect on our Financial Statements. |
EARNINGS_PER_SHARE_EPS
EARNINGS PER SHARE ("EPS") | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (“EPS”) | ||||||||
The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations. | |||||||||
Three Months Ended | |||||||||
(In thousands, except per share amounts) | December 27, | December 28, | |||||||
2014 | 2013 | ||||||||
Basic EPS | |||||||||
Net income | $ | 15,988 | $ | 16,290 | |||||
Weighted average shares | 51,432 | 51,730 | |||||||
Basic income per share | $ | 0.31 | $ | 0.31 | |||||
Diluted EPS | |||||||||
Net income | $ | 15,988 | $ | 16,290 | |||||
Basic weighted average shares | 51,432 | 51,730 | |||||||
Net effect of common stock equivalents | 530 | 781 | |||||||
Diluted weighted average shares | 51,962 | 52,511 | |||||||
Diluted income per share | $ | 0.31 | $ | 0.31 | |||||
Nine Months Ended | |||||||||
(In thousands, except per share amounts) | December 27, | December 28, | |||||||
2014 | 2013 | ||||||||
Basic EPS | |||||||||
Net income | $ | 19,827 | $ | 24,964 | |||||
Weighted average shares | 51,521 | 51,485 | |||||||
Basic income per share | $ | 0.38 | $ | 0.48 | |||||
Diluted EPS | |||||||||
Net income | $ | 19,827 | $ | 24,964 | |||||
Basic weighted average shares | 51,521 | 51,485 | |||||||
Net effect of common stock equivalents | 503 | 815 | |||||||
Diluted weighted average shares | 52,024 | 52,300 | |||||||
Diluted income per share | $ | 0.38 | $ | 0.48 | |||||
Weighted average shares outstanding, assuming dilution, excludes the impact of 1.7 million and 1.6 million anti-dilutive shares for the three and nine months ended December 27, 2014, respectively, as compared to 1.3 million and 0.9 million anti-dilutive shares for the three and nine months ended December 28, 2013, respectively. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | |||||||||||||
Performance Share Units | ||||||||||||||
On October 22, 2014, the Company issued a new type of equity award under its 2005 Long-Term Incentive Compensation Plan, Performance Share Units, with a target award level of 129,130 shares for 14 senior executives. | ||||||||||||||
The value of these Performance Share Units is based upon the Company’s total shareholder return for the period from October 1, 2014 to their vesting date of September 30, 2017 relative to the total shareholder return of the companies comprising the Standard & Poor's Health Care Equipment Index (the "Index"). These awards are conditioned upon the employees’ continued employment with the Company through the vesting date. If an employee is no longer employed by the Company at the vesting date as a result of a Qualifying Retirement, then the continued employment requirement shall cease to apply and prorated shares awarded will be determined as of the vesting date. | ||||||||||||||
Total shareholder return is equal to the appreciation of the share price during a performance period, plus any dividends paid on the applicable company’s common stock. Relative total shareholder return compares the company's total shareholder return to the Index. | ||||||||||||||
The actual number of shares awarded under a Performance Share Unit may range from 0% to a maximum of 200% of the target award depending upon the Company’s relative total shareholder return. If the Company’s total shareholder return for the performance period is negative, then any share payout will be capped at 100% of the target award, regardless of the Company's performance relative to the Index. | ||||||||||||||
Grant date fair values for the Performance Share Units were estimated using a Monte Carlo Simulation of the Company's and the Index's stock price correlation over three-year time horizons matching the Performance Share Units performance period with a risk free rate of 0.78%, volatility of 20% and 12 months of dividend history. | ||||||||||||||
The estimated fair value, potential shares to be awarded, recognized compensation expense and future compensation expense to be recognized, including estimated forfeitures, for Performance Share Unit awards are as follows: | ||||||||||||||
As of October 22, 2014 | For Nine Months Ended December 27, 2014 | |||||||||||||
PSU Performance Period | PSU Award Fair Value | Recognized Compensation Expense | Unrecognized Compensation Expense | Minimum Shares | Target Shares | Maximum Shares | ||||||||
(Per share) | (In thousands) | (In thousands) | ||||||||||||
Oct 1, 2014 - Sept 30, 2017 | $ | 35.09 | $ | 278 | $ | 4,253 | — | 129,130 | 258,260 | |||||
Stock-Based Compensation | ||||||||||||||
Total stock-based compensation expense of $10.2 million and $9.7 million was recognized for the nine months ended December 27, 2014 and December 28, 2013, respectively. The related income tax benefit recognized was $3.3 million and $3.2 million for the nine months ended December 27, 2014 and December 28, 2013, respectively. | ||||||||||||||
The weighted average fair value for our options granted was $7.89 and $10.17 per share for the nine months ended December 27, 2014 and December 28, 2013, respectively. The assumptions utilized for estimating the fair value of option grants during the periods presented are as follows: | ||||||||||||||
Nine Months Ended | ||||||||||||||
December 27, | December 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Stock Options Black-Scholes assumptions (weighted average): | ||||||||||||||
Volatility | 22.45 | % | 22.79 | % | ||||||||||
Expected life (years) | 4.9 | 4.9 | ||||||||||||
Risk-free interest rate | 1.75 | % | 1.3 | % | ||||||||||
Dividend yield | — | % | — | % | ||||||||||
As of December 27, 2014, there was $29.0 million of total unrecognized compensation cost related to non-vested equity based compensation, including stock options, restricted stock units, market stock units and performance share units. This cost is expected to be recognized over a weighted average period of 2.61 years. | ||||||||||||||
During the nine months ended December 27, 2014 and December 28, 2013, there were 183,808 and 156,224 shares, respectively, purchased under the Employee Stock Purchase Plan at an average price of $25.92 and $32.77 per share, respectively. |
PRODUCT_WARRANTIES
PRODUCT WARRANTIES | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | |||||||||
PRODUCT WARRANTIES | PRODUCT WARRANTIES | ||||||||
We generally provide warranty on parts and labor for one year after the sale and installation of each device. We also warrant our disposables products through their use or expiration. We estimate our potential warranty expense based on our historical warranty experience and periodically assess the adequacy of our warranty accrual, making adjustments as necessary. | |||||||||
Nine Months Ended | |||||||||
(In thousands) | December 27, | December 28, | |||||||
2014 | 2013 | ||||||||
Warranty accrual as of the beginning of the period | $ | 590 | $ | 673 | |||||
Warranty provision | 890 | 1,214 | |||||||
Warranty spending | (941 | ) | (1,178 | ) | |||||
Warranty accrual as of the end of the period | $ | 539 | $ | 709 | |||||
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
INVENTORIES | INVENTORIES | ||||||||
Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined using the first-in, first-out method. | |||||||||
(In thousands) | December 27, | March 29, | |||||||
2014 | 2014 | ||||||||
Raw materials | $ | 74,555 | $ | 72,508 | |||||
Work-in-process | 6,431 | 7,383 | |||||||
Finished goods | 131,507 | 117,770 | |||||||
$ | 212,493 | $ | 197,661 | ||||||
DERIVATIVES_AND_FAIR_VALUE_MEA
DERIVATIVES AND FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | DERIVATIVES AND FAIR VALUE MEASUREMENTS | ||||||||||||||||
We manufacture, market and sell our products globally. For the nine months ended December 27, 2014, approximately 45.9% of our sales were generated outside the US, generally in local currencies. We also incur certain manufacturing, marketing and selling costs in international markets in local currency. | |||||||||||||||||
Accordingly, our earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the US Dollar, our reporting currency. We have a program in place that is designed to mitigate our exposure to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily Japanese Yen and Euro, and to a lesser extent Swiss Francs, British Pounds, Australian Dollars, Canadian Dollars and Mexican Pesos. This does not eliminate the impact of the volatility of foreign exchange rates, but because we generally enter into forward contracts one year out, rates are fixed for a one-year period, thereby facilitating financial planning and resource allocation. | |||||||||||||||||
Designated Foreign Currency Hedge Contracts | |||||||||||||||||
Our designated foreign currency hedge contracts as of December 27, 2014 and March 29, 2014 were cash flow hedges under ASC 815, Derivatives and Hedging. We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in Other Comprehensive Income until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, we would reclassify the amount of any gain or loss on the related cash flow hedge to Retained Earnings at that time. We had designated foreign currency hedge contracts outstanding in the contract amount of $147.4 million as of December 27, 2014 and $157.9 million as of March 29, 2014. | |||||||||||||||||
During the nine months ended December 27, 2014, we recognized net gains of $2.9 million in Retained Earnings from our cash flow hedges, compared to recognized net gains of $7.1 million during the nine months ended December 28, 2013. For the nine months ended December 27, 2014, an $8.4 million gain, net of tax, was recorded in Accumulated Other Comprehensive Income to recognize the effective portion of the fair value of designated foreign currency hedge contracts, as compared to a gain of $5.0 million, net of tax, for the nine months ended December 28, 2013. At December 27, 2014, gains of $8.4 million, net of tax, may be reclassified to Retained Earnings within the next twelve months. All currency cash flow hedges outstanding as of December 27, 2014 mature within twelve months. | |||||||||||||||||
Non-Designated Foreign Currency Contracts | |||||||||||||||||
We use foreign currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These foreign currency forward contracts are entered into for periods consistent with currency transaction exposures, generally one month. They are not designated as cash flow or fair value hedges under ASC 815. These forward contracts are marked-to-market with changes in fair value recorded to Retained Earnings. We had non-designated foreign currency hedge contracts under ASC 815 outstanding in the contract amount of $60.4 million as of December 27, 2014 and $72.9 million as of March 29, 2014. | |||||||||||||||||
Interest Rate Swaps | |||||||||||||||||
On August 1, 2012, we entered into a credit agreement which provided for a $475.0 million term loan (“Credit Agreement”). Under the terms of this Credit Agreement, we may borrow at a spread to an index, including the LIBOR index of 1-month, 3-months, 6-months, etc. From the date of the Credit Agreement, we have chosen to borrow against the 1-month USD-LIBOR-BBA rounded up, if necessary, to the nearest 1/16th of 1% (“Adjusted LIBOR”). On June 30, 2014, we modified our Credit Agreement by extending the maturity date to July 1, 2019. | |||||||||||||||||
Accordingly, our earnings and cash flows are exposed to interest rate risk from changes in Adjusted LIBOR. Part of our interest rate risk management strategy includes the use of interest rate swaps to mitigate our exposure to changes in variable interest rates. Our objective in using interest rate swaps is to add stability to interest expense and to manage and reduce the risk inherent in interest rate fluctuations. We formally document our hedge relationships (including identifying the hedged instrument and hedged item) at hedge inception to ensure that our interest rate swaps qualify for hedge accounting. On a quarterly basis, we assess whether the interest rate swaps are highly effective in offsetting changes in the cash flow of the hedged item. We do not hold or issue interest rate swaps for trading purposes. We manage the credit risk of the counterparties by dealing only with institutions that we consider financially sound and consider the risk of non-performance to be remote. | |||||||||||||||||
On December 21, 2012, we entered into two interest rate swap agreements (the "Swaps"), whereby we receive Adjusted LIBOR and pay an average fixed rate of 0.68% on a total notional amount of $250.0 million of debt. The Swaps mature on August 1, 2017. We designated the Swaps as cash flow hedges of variable interest rate risk associated with $250.0 million of indebtedness. For the nine months ended December 27, 2014, a loss of $0.3 million, net of tax, was recorded in Accumulated Other Comprehensive Income to recognize the effective portion of the fair value of interest rate swaps that qualify as cash flow hedges. | |||||||||||||||||
Fair Value of Derivative Instruments | |||||||||||||||||
The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC 815 in our consolidated statements of income and comprehensive income for the nine months ended December 27, 2014: | |||||||||||||||||
Derivative Instruments | Amount of | Amount of Gain/(Loss) Reclassified | Location in | Amount of Gain/(Loss) | Location in | ||||||||||||
Gain/(Loss) | from AOCI into | Consolidated Statements of | Excluded from | Consolidated Statements of | |||||||||||||
Recognized | Retained Earnings | Income and Comprehensive Income | Effectiveness | Income and Comprehensive Income | |||||||||||||
in AOCI | Testing * | ||||||||||||||||
(In thousands) | |||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | 8,409 | $ | 2,921 | Net revenues, COGS, and SG&A | $ | 107 | Interest and other expense, net | |||||||||
Non-designated foreign currency hedge contracts | — | — | 5,477 | Interest and other expense, net | |||||||||||||
Designated interest rate swaps, net of tax | $ | (255 | ) | $ | — | Interest and other expense, net | $ | — | |||||||||
* We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. | |||||||||||||||||
We did not have fair value hedges or net investment hedges outstanding as of December 27, 2014 or March 29, 2014. | |||||||||||||||||
As of December 27, 2014, the amount recognized as a deferred tax asset for designated foreign currency hedges was $0.5 million and the amount recognized as a deferred tax liability for interest rate swap hedges was $0.3 million. | |||||||||||||||||
ASC 815 requires all derivative instruments to be recognized at their fair value as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to sell or transfer these instruments at the reporting date and by taking into account current interest rates, currency exchange rates, current interest rate curves, interest rate volatilities, the creditworthiness of the counterparty for assets and our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of December 27, 2014, we have classified our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of our derivative instruments. | |||||||||||||||||
The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of December 27, 2014 and March 29, 2014: | |||||||||||||||||
(In thousands) | Location in | December 27, 2014 | March 29, 2014 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 8,088 | $ | 2,574 | ||||||||||||
Designated interest rate swaps | Other current assets | 841 | 1,250 | ||||||||||||||
$ | 8,929 | $ | 3,824 | ||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 2,465 | $ | 1,255 | ||||||||||||
$ | 2,465 | $ | 1,255 | ||||||||||||||
Other Fair Value Measurements | |||||||||||||||||
ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in accordance with US GAAP, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In accordance with ASC 820, for the nine months ended December 27, 2014, we applied the requirements under ASC 820 to our non-financial assets and non-financial liabilities. As we did not have an impairment of any non-financial assets or non-financial liabilities, there was no disclosure required relating to our non-financial assets or non-financial liabilities. | |||||||||||||||||
Fair Value Measured on a Recurring Basis | |||||||||||||||||
On a recurring basis, we measure certain financial assets and financial liabilities at fair value, including our money market funds, foreign currency hedge contracts, and contingent consideration. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We base fair value upon quoted market prices, where available. Where quoted market prices or other observable inputs are not available, we apply valuation techniques to estimate fair value. | |||||||||||||||||
ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows: | |||||||||||||||||
• | Level 1 — Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. | ||||||||||||||||
• | Level 3 — Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. | ||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of December 27, 2014. | |||||||||||||||||
(In thousands) | Quoted Market | Significant | Significant | Total | |||||||||||||
Prices for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 72,875 | $ | — | $ | — | $ | 72,875 | |||||||||
Designated foreign currency hedge contracts | — | 8,088 | — | 8,088 | |||||||||||||
Designated interest rate swap | — | 841 | — | 841 | |||||||||||||
$ | 72,875 | $ | 8,929 | $ | — | $ | 81,804 | ||||||||||
Liabilities | |||||||||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 2,465 | $ | — | $ | 2,465 | |||||||||
Contingent consideration | — | — | 8,351 | 8,351 | |||||||||||||
$ | — | $ | 2,465 | $ | 8,351 | $ | 10,816 | ||||||||||
Our money market funds carried at fair value are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. | |||||||||||||||||
Contingent consideration liabilities are measured at fair value using projected revenues, discount rates, probabilities of payment and projected payment dates. This Level 3 fair value measurement was performed using a probability-weighted discounted cash flow over a ten year period. Increases or decreases in the fair value of our contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of revenue estimates or likelihood of earning revenue. Projected revenues are based on our most recent internal operational budgets. | |||||||||||||||||
The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the quarter ended December 27, 2014. | |||||||||||||||||
(In thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Contingent consideration as of March 29, 2014 | $ | 7,645 | |||||||||||||||
Contingent consideration interest expense | 706 | ||||||||||||||||
Ending balance | $ | 8,351 | |||||||||||||||
Interest expense recognized on contingent consideration is reflected in "Interest and other expense, net" on the | |||||||||||||||||
Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||
Other Fair Value Disclosures | |||||||||||||||||
The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
The reported income tax rate for the nine months ended December 27, 2014 was 7.8%, as compared to a reported income tax rate of 6.3% for the nine months ended December 28, 2013. Our reported income tax rate is lower than the US federal statutory tax rate primarily as a result of being subject to lower income tax rates in the foreign jurisdictions where we operate. In addition, we recorded discrete tax benefits during the three months ended December 27, 2014 associated with the release of tax reserves due to the expiration of the statute of limitations as well as the retroactive enactment of the U.S. federal research credit. During the nine months ended December 27, 2014, we recorded pre-tax losses in Scotland, Italy and Malaysia due to restructuring costs associated with our manufacturing transformation, and we did not record a corresponding tax benefit due to uncertainty around our ability to realize a tax benefit in these jurisdictions. Similarly, during the nine months ended December 28, 2013, we recorded pre-tax losses in Italy associated with restructuring costs, and we did not recognize a tax benefit due to the full valuation allowance maintained against our Italian deferred tax assets. We also recorded a tax benefit for the three months ended December 28, 2013 as the benefits from the release of previously established reserves and the intercompany financing with Italy were recorded during this period. |
DEBT
DEBT | 9 Months Ended | ||||
Dec. 27, 2014 | |||||
Debt Disclosure [Abstract] | |||||
DEBT | DEBT | ||||
In connection with the acquisition of the whole blood business, we entered into a credit agreement ("Credit Agreement") with certain lenders (together, “Lenders”) which provided for a $475.0 million Term Loan and a $50.0 million revolving loan (the “Revolving Credit Facility”), and together with the Term Loan, (the “Credit Facilities”). The Credit Facilities had a term of five years and mature on August 1, 2017. Interest was based on the Adjusted LIBOR plus a range of 1.125% to 1.500% depending on the achievement of leverage ratios and customary credit terms which included financial and negative covenants. | |||||
On June 30, 2014, we modified our existing Credit Facilities by extending the maturity date to July 1, 2019, extending the principal repayments of the Term Loan, and modifying certain restrictive covenants to allow greater operational flexibility and enhanced near term liquidity. In addition, the amended Credit Agreement provides for a $100.0 million revolving credit facility and establishes interest rates in the range of LIBOR plus 1.125% – 1.500%, depending on certain conditions. At December 27, 2014, $379.4 million was outstanding under the term loan and $50.0 million was outstanding on the Revolving Credit Facility, both with an interest rate of 1.5625%. No additional amounts were borrowed as a result of this modification. The fair value of debt approximates its current value of approximately $429.4 million as of December 27, 2014. We were in compliance with the leverage and interest coverage ratios specified in the credit agreement as well as all other bank covenants as of December 27, 2014. | |||||
The maturity profile is as follows: | |||||
Fiscal year (in thousands) | Term Loan | ||||
2015 | $ | — | |||
2016 | 21,342 | ||||
2017 | 42,683 | ||||
2018 | 45,054 | ||||
2019 and beyond | 320,327 | ||||
$ | 429,406 | ||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 27, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
We are presently engaged in various legal actions, and although the total liability cannot be determined at the present time, based on consultation with counsel, we believe that any such liability will not materially affect our consolidated financial position or our results of operations. | |
Italian Employment Litigation | |
We have received notices of claimed violations of employment related contracts from some employees of the facility in Ascoli-Piceno, Italy where we have ceased manufacturing operations. These include actions claiming (i) working conditions and minimum salaries should have been established by different national collective bargaining agreements than those used over prior years, (ii) certain solidarity agreements, which are arrangements between the Company, employees and the government to continue full pay and benefits for employees who would otherwise be terminated in times of low demand, are void, and (iii) payment of the extra time used for changing into and out of the working clothes at the beginning and end of each shift. | |
In addition, a union represented in the Ascoli plant has filed an action claiming that the Company discriminated against it in favor of three other represented unions by (i) interfering with an employee referendum, (ii) interfering with an employee petition to recall union representatives from office, and (iii) excluding the union from certain meetings. | |
As of December 27, 2014, the total amount of damages claimed by the plaintiffs in these matters is approximately $4.1 million; however, it is not possible at this point in the proceedings to accurately evaluate the likelihood or amount of any potential losses. We believe these claims are without merit, and intend to defend against them. As such, no amounts have been accrued related to these claims. We may receive other, similar claims in the future. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Dec. 27, 2014 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION |
We manage a global business which designs, manufactures and markets blood management solutions. Our solutions are marketed through operating units organized primarily on geography: North America Plasma, North America Blood Center and Hospital, Europe, Asia Pacific and Japan. | |
ASC 280, Segment Reporting, permits the aggregation of segments which are economically similar as well as similar in all of the following areas: (i) the nature of the products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, (iv) the methods used to distribute their products or provide their services, and (v) the nature of the regulatory environment. | |
Based on the criteria of ASC 280, we have one reportable segment. This conclusion is consistent with how our chief operating decision-maker views the business. Our chief operating decision maker primarily uses consolidated results to make operating and strategic decisions. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended | ||||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING | ||||||||||||||||||||
On an ongoing basis, we review the global economy, the healthcare industry and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business. | |||||||||||||||||||||
On May 1, 2013, we announced that our Board of Directors approved a plan to pursue identified Value Creation and Capture ("VCC") opportunities. These include: (i) investment in product line extensions, next generation products and growth platforms; (ii) enhancement of commercial execution capabilities by implementing go-to-market and other strategies to enable global profitable revenue growth; and (iii) transformation of the manufacturing network to best support these commercial strategies while optimizing expense levels. Collectively, these are opportunities to position us for optimal growth and increased competitiveness. | |||||||||||||||||||||
Our manufacturing network transformation plan, part of our larger VCC activities previously discussed, includes (i) discontinuing manufacturing activities at our Braintree, Massachusetts, Ascoli-Piceno, Italy and Bothwell, Scotland facilities, (ii) creating a technology center of excellence for product development in Braintree, Massachusetts, (iii) expanding of our current facility in Tijuana, Mexico, (iv) engaging Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (v) building a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. | |||||||||||||||||||||
We estimate we will incur approximately $69.0 million in restructuring and restructuring related expense and spend approximately $59.0 million on these initiatives in fiscal 2015. We estimate we will incur an additional $10.0 million to $15.0 million to complete these initiatives through fiscal 2017. | |||||||||||||||||||||
The following summarizes the restructuring costs for the nine months ended December 27, 2014 and December 28, 2013: | |||||||||||||||||||||
Nine Months Ended December 27, 2014 | |||||||||||||||||||||
(In thousands) | Restructuring Accrual Balance at March 29, 2014 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 27, 2014 | ||||||||||||||||
Severance and other employee costs | $ | 22,908 | $ | 15,633 | $ | (21,785 | ) | $ | — | $ | 16,756 | ||||||||||
Other costs | 728 | 12,044 | (12,527 | ) | — | 245 | |||||||||||||||
Accelerated depreciation | — | 1,158 | — | (1,158 | ) | — | |||||||||||||||
Asset write-down | — | 295 | — | (295 | ) | — | |||||||||||||||
Total | $ | 23,636 | $ | 29,130 | $ | (34,312 | ) | $ | (1,453 | ) | $ | 17,001 | |||||||||
Nine Months Ended December 28, 2013 | |||||||||||||||||||||
(in thousands) | Restructuring Accrual Balance at March 30, 2013 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 28, 2013 | ||||||||||||||||
Severance and other employee costs | $ | 3,089 | $ | 28,189 | $ | (9,690 | ) | $ | — | $ | 21,588 | ||||||||||
Other costs | 173 | 9,905 | (9,566 | ) | — | 512 | |||||||||||||||
Accelerated depreciation | — | 1,757 | — | (1,757 | ) | — | |||||||||||||||
Asset write-down | — | 915 | — | (915 | ) | — | |||||||||||||||
$ | 3,262 | $ | 40,766 | $ | (19,256 | ) | $ | (2,672 | ) | $ | 22,100 | ||||||||||
We deployed significant financial resources for these activities. Many of the costs necessary to complete the VCC initiatives, such as severance and other plant closing costs, qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations. We incurred $29.1 million in severance, asset write-downs and other restructuring charges during the nine months ended December 27, 2014. In addition, we also incurred $22.1 million of costs that do not constitute restructuring under ASC 420, which we refer to as "Transformation Costs". These costs consist primarily of expenditures directly related to our transformation activities including program management, product line transfer teams and related costs, infrastructure related costs, accelerated depreciation and asset disposals. | |||||||||||||||||||||
The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and interest and other expense in our Consolidated Statements of Income and Comprehensive Income for the periods presented. The majority of expenses recorded as Transformation Costs in the fiscal 2014 relate to the integration of the whole blood acquisition. Transformation Costs in fiscal 2015 are associated with our VCC initiatives. | |||||||||||||||||||||
Transformation costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 27, | December 28, | December 27, | December 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Transformation and other costs | $ | 5,892 | $ | 6,306 | $ | 20,877 | $ | 26,389 | |||||||||||||
Accelerated depreciation | 351 | 653 | 769 | 1,938 | |||||||||||||||||
Asset disposal | 471 | 36 | 471 | 796 | |||||||||||||||||
Total | $ | 6,714 | $ | 6,995 | $ | 22,117 | $ | 29,123 | |||||||||||||
Restructuring costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 27, | December 28, | December 27, | December 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Severance and other employee costs | $ | 2,887 | $ | 5,348 | $ | 15,633 | $ | 28,189 | |||||||||||||
Other costs | 2,691 | 4,588 | 12,044 | 9,905 | |||||||||||||||||
Accelerated depreciation | 418 | 569 | 1,158 | 1,757 | |||||||||||||||||
Asset disposal | 199 | — | 295 | 915 | |||||||||||||||||
Total | $ | 6,195 | $ | 10,505 | $ | 29,130 | $ | 40,766 | |||||||||||||
Total restructuring and transformation | $ | 12,909 | $ | 17,500 | $ | 51,247 | $ | 69,889 | |||||||||||||
CAPITALIZATION_OF_SOFTWARE_DEV
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | 9 Months Ended |
Dec. 27, 2014 | |
Research and Development [Abstract] | |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS |
For costs incurred related to the development of software to be sold, leased or otherwise marketed, we apply the provisions of ASC 985-20, Software - Costs of Software to be Sold, Leased or Marketed, which specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. | |
We capitalized $6.6 million and $3.4 million in software development costs for ongoing initiatives during the nine months ended December 27, 2014 and December 28, 2013, respectively. At December 27, 2014 and March 29, 2014, we have a total of $38.3 million and $31.7 million of capitalized software costs, of which $8.9 million and $15.6 million are related to in-process software development initiatives, respectively. During fiscal 2015, our next generation plasma software received 510(k) approval and $12.9 million of capitalized costs were placed into service. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. We review these assets for impairment at least annually. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The following is a roll-forward of the components of Accumulated Other Comprehensive Income, net of tax, for the nine months ended December 27, 2014: | |||||||||||||||||
(In thousands) | Foreign Currency | Defined Benefit Plans | Net Unrealized (Gain)/Loss on Derivatives | Total | |||||||||||||
Balance as of March 29, 2014 | $ | 3,198 | $ | (4,592 | ) | $ | 2,804 | $ | 1,410 | ||||||||
Other comprehensive income (loss)/income before reclassifications | (13,621 | ) | (597 | ) | 8,154 | (6,064 | ) | ||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | — | (2,921 | ) | (2,921 | ) | |||||||||||
Net current period other comprehensive (loss)/income | (13,621 | ) | (597 | ) | 5,233 | (8,985 | ) | ||||||||||
Balance as of December 27, 2014 | $ | (10,423 | ) | $ | (5,189 | ) | $ | 8,037 | $ | (7,575 | ) | ||||||
Details pertaining to the amount reclassified from Accumulated Other Comprehensive Income for the nine months ended December 27, 2014 are as follows: | |||||||||||||||||
(In thousands) | Amounts Reclassified from Other Comprehensive Income | Affected Line in the | |||||||||||||||
Statement of Income | |||||||||||||||||
Derivative instruments reclassified to income statement | |||||||||||||||||
Realized net gain on derivatives | $ | 3,041 | Revenue, cost of goods sold, income/(expense) | ||||||||||||||
Income tax effect | (120 | ) | Provision for income taxes | ||||||||||||||
Net of taxes | $ | 2,921 | |||||||||||||||
EARNINGS_PER_SHARE_EPS_Tables
EARNINGS PER SHARE ("EPS") (Tables) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share Reconciliation | The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations. | ||||||||
Three Months Ended | |||||||||
(In thousands, except per share amounts) | December 27, | December 28, | |||||||
2014 | 2013 | ||||||||
Basic EPS | |||||||||
Net income | $ | 15,988 | $ | 16,290 | |||||
Weighted average shares | 51,432 | 51,730 | |||||||
Basic income per share | $ | 0.31 | $ | 0.31 | |||||
Diluted EPS | |||||||||
Net income | $ | 15,988 | $ | 16,290 | |||||
Basic weighted average shares | 51,432 | 51,730 | |||||||
Net effect of common stock equivalents | 530 | 781 | |||||||
Diluted weighted average shares | 51,962 | 52,511 | |||||||
Diluted income per share | $ | 0.31 | $ | 0.31 | |||||
Nine Months Ended | |||||||||
(In thousands, except per share amounts) | December 27, | December 28, | |||||||
2014 | 2013 | ||||||||
Basic EPS | |||||||||
Net income | $ | 19,827 | $ | 24,964 | |||||
Weighted average shares | 51,521 | 51,485 | |||||||
Basic income per share | $ | 0.38 | $ | 0.48 | |||||
Diluted EPS | |||||||||
Net income | $ | 19,827 | $ | 24,964 | |||||
Basic weighted average shares | 51,521 | 51,485 | |||||||
Net effect of common stock equivalents | 503 | 815 | |||||||
Diluted weighted average shares | 52,024 | 52,300 | |||||||
Diluted income per share | $ | 0.38 | $ | 0.48 | |||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Performance Share Unit Awards | The estimated fair value, potential shares to be awarded, recognized compensation expense and future compensation expense to be recognized, including estimated forfeitures, for Performance Share Unit awards are as follows: | |||||||||||||
As of October 22, 2014 | For Nine Months Ended December 27, 2014 | |||||||||||||
PSU Performance Period | PSU Award Fair Value | Recognized Compensation Expense | Unrecognized Compensation Expense | Minimum Shares | Target Shares | Maximum Shares | ||||||||
(Per share) | (In thousands) | (In thousands) | ||||||||||||
Oct 1, 2014 - Sept 30, 2017 | $ | 35.09 | $ | 278 | $ | 4,253 | — | 129,130 | 258,260 | |||||
Assumptions Utilized for Estimating Fair Value of Option Grants | The assumptions utilized for estimating the fair value of option grants during the periods presented are as follows: | |||||||||||||
Nine Months Ended | ||||||||||||||
December 27, | December 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Stock Options Black-Scholes assumptions (weighted average): | ||||||||||||||
Volatility | 22.45 | % | 22.79 | % | ||||||||||
Expected life (years) | 4.9 | 4.9 | ||||||||||||
Risk-free interest rate | 1.75 | % | 1.3 | % | ||||||||||
Dividend yield | — | % | — | % |
PRODUCT_WARRANTIES_Tables
PRODUCT WARRANTIES (Tables) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | |||||||||
Schedule of Product Warranty Liability | We estimate our potential warranty expense based on our historical warranty experience and periodically assess the adequacy of our warranty accrual, making adjustments as necessary. | ||||||||
Nine Months Ended | |||||||||
(In thousands) | December 27, | December 28, | |||||||
2014 | 2013 | ||||||||
Warranty accrual as of the beginning of the period | $ | 590 | $ | 673 | |||||
Warranty provision | 890 | 1,214 | |||||||
Warranty spending | (941 | ) | (1,178 | ) | |||||
Warranty accrual as of the end of the period | $ | 539 | $ | 709 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventories | Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined using the first-in, first-out method. | ||||||||
(In thousands) | December 27, | March 29, | |||||||
2014 | 2014 | ||||||||
Raw materials | $ | 74,555 | $ | 72,508 | |||||
Work-in-process | 6,431 | 7,383 | |||||||
Finished goods | 131,507 | 117,770 | |||||||
$ | 212,493 | $ | 197,661 | ||||||
DERIVATIVES_AND_FAIR_VALUE_MEA1
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments | The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC 815 in our consolidated statements of income and comprehensive income for the nine months ended December 27, 2014: | ||||||||||||||||
Derivative Instruments | Amount of | Amount of Gain/(Loss) Reclassified | Location in | Amount of Gain/(Loss) | Location in | ||||||||||||
Gain/(Loss) | from AOCI into | Consolidated Statements of | Excluded from | Consolidated Statements of | |||||||||||||
Recognized | Retained Earnings | Income and Comprehensive Income | Effectiveness | Income and Comprehensive Income | |||||||||||||
in AOCI | Testing * | ||||||||||||||||
(In thousands) | |||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | 8,409 | $ | 2,921 | Net revenues, COGS, and SG&A | $ | 107 | Interest and other expense, net | |||||||||
Non-designated foreign currency hedge contracts | — | — | 5,477 | Interest and other expense, net | |||||||||||||
Designated interest rate swaps, net of tax | $ | (255 | ) | $ | — | Interest and other expense, net | $ | — | |||||||||
* We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. | |||||||||||||||||
Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets | The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of December 27, 2014 and March 29, 2014: | ||||||||||||||||
(In thousands) | Location in | December 27, 2014 | March 29, 2014 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 8,088 | $ | 2,574 | ||||||||||||
Designated interest rate swaps | Other current assets | 841 | 1,250 | ||||||||||||||
$ | 8,929 | $ | 3,824 | ||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 2,465 | $ | 1,255 | ||||||||||||
$ | 2,465 | $ | 1,255 | ||||||||||||||
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of December 27, 2014. | ||||||||||||||||
(In thousands) | Quoted Market | Significant | Significant | Total | |||||||||||||
Prices for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 72,875 | $ | — | $ | — | $ | 72,875 | |||||||||
Designated foreign currency hedge contracts | — | 8,088 | — | 8,088 | |||||||||||||
Designated interest rate swap | — | 841 | — | 841 | |||||||||||||
$ | 72,875 | $ | 8,929 | $ | — | $ | 81,804 | ||||||||||
Liabilities | |||||||||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 2,465 | $ | — | $ | 2,465 | |||||||||
Contingent consideration | — | — | 8,351 | 8,351 | |||||||||||||
$ | — | $ | 2,465 | $ | 8,351 | $ | 10,816 | ||||||||||
Schedule of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the quarter ended December 27, 2014. | ||||||||||||||||
(In thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Contingent consideration as of March 29, 2014 | $ | 7,645 | |||||||||||||||
Contingent consideration interest expense | 706 | ||||||||||||||||
Ending balance | $ | 8,351 | |||||||||||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | ||||
Dec. 27, 2014 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of Maturities of Long-term Debt | The maturity profile is as follows: | ||||
Fiscal year (in thousands) | Term Loan | ||||
2015 | $ | — | |||
2016 | 21,342 | ||||
2017 | 42,683 | ||||
2018 | 45,054 | ||||
2019 and beyond | 320,327 | ||||
$ | 429,406 | ||||
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 9 Months Ended | ||||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following summarizes the restructuring costs for the nine months ended December 27, 2014 and December 28, 2013: | ||||||||||||||||||||
Nine Months Ended December 27, 2014 | |||||||||||||||||||||
(In thousands) | Restructuring Accrual Balance at March 29, 2014 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 27, 2014 | ||||||||||||||||
Severance and other employee costs | $ | 22,908 | $ | 15,633 | $ | (21,785 | ) | $ | — | $ | 16,756 | ||||||||||
Other costs | 728 | 12,044 | (12,527 | ) | — | 245 | |||||||||||||||
Accelerated depreciation | — | 1,158 | — | (1,158 | ) | — | |||||||||||||||
Asset write-down | — | 295 | — | (295 | ) | — | |||||||||||||||
Total | $ | 23,636 | $ | 29,130 | $ | (34,312 | ) | $ | (1,453 | ) | $ | 17,001 | |||||||||
Nine Months Ended December 28, 2013 | |||||||||||||||||||||
(in thousands) | Restructuring Accrual Balance at March 30, 2013 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 28, 2013 | ||||||||||||||||
Severance and other employee costs | $ | 3,089 | $ | 28,189 | $ | (9,690 | ) | $ | — | $ | 21,588 | ||||||||||
Other costs | 173 | 9,905 | (9,566 | ) | — | 512 | |||||||||||||||
Accelerated depreciation | — | 1,757 | — | (1,757 | ) | — | |||||||||||||||
Asset write-down | — | 915 | — | (915 | ) | — | |||||||||||||||
$ | 3,262 | $ | 40,766 | $ | (19,256 | ) | $ | (2,672 | ) | $ | 22,100 | ||||||||||
Schedule of Restructuring and Related Costs | The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and interest and other expense in our Consolidated Statements of Income and Comprehensive Income for the periods presented. The majority of expenses recorded as Transformation Costs in the fiscal 2014 relate to the integration of the whole blood acquisition. Transformation Costs in fiscal 2015 are associated with our VCC initiatives. | ||||||||||||||||||||
Transformation costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 27, | December 28, | December 27, | December 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Transformation and other costs | $ | 5,892 | $ | 6,306 | $ | 20,877 | $ | 26,389 | |||||||||||||
Accelerated depreciation | 351 | 653 | 769 | 1,938 | |||||||||||||||||
Asset disposal | 471 | 36 | 471 | 796 | |||||||||||||||||
Total | $ | 6,714 | $ | 6,995 | $ | 22,117 | $ | 29,123 | |||||||||||||
Restructuring costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 27, | December 28, | December 27, | December 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Severance and other employee costs | $ | 2,887 | $ | 5,348 | $ | 15,633 | $ | 28,189 | |||||||||||||
Other costs | 2,691 | 4,588 | 12,044 | 9,905 | |||||||||||||||||
Accelerated depreciation | 418 | 569 | 1,158 | 1,757 | |||||||||||||||||
Asset disposal | 199 | — | 295 | 915 | |||||||||||||||||
Total | $ | 6,195 | $ | 10,505 | $ | 29,130 | $ | 40,766 | |||||||||||||
Total restructuring and transformation | $ | 12,909 | $ | 17,500 | $ | 51,247 | $ | 69,889 | |||||||||||||
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following is a roll-forward of the components of Accumulated Other Comprehensive Income, net of tax, for the nine months ended December 27, 2014: | ||||||||||||||||
(In thousands) | Foreign Currency | Defined Benefit Plans | Net Unrealized (Gain)/Loss on Derivatives | Total | |||||||||||||
Balance as of March 29, 2014 | $ | 3,198 | $ | (4,592 | ) | $ | 2,804 | $ | 1,410 | ||||||||
Other comprehensive income (loss)/income before reclassifications | (13,621 | ) | (597 | ) | 8,154 | (6,064 | ) | ||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | — | (2,921 | ) | (2,921 | ) | |||||||||||
Net current period other comprehensive (loss)/income | (13,621 | ) | (597 | ) | 5,233 | (8,985 | ) | ||||||||||
Balance as of December 27, 2014 | $ | (10,423 | ) | $ | (5,189 | ) | $ | 8,037 | $ | (7,575 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Details pertaining to the amount reclassified from Accumulated Other Comprehensive Income for the nine months ended December 27, 2014 are as follows: | ||||||||||||||||
(In thousands) | Amounts Reclassified from Other Comprehensive Income | Affected Line in the | |||||||||||||||
Statement of Income | |||||||||||||||||
Derivative instruments reclassified to income statement | |||||||||||||||||
Realized net gain on derivatives | $ | 3,041 | Revenue, cost of goods sold, income/(expense) | ||||||||||||||
Income tax effect | (120 | ) | Provision for income taxes | ||||||||||||||
Net of taxes | $ | 2,921 | |||||||||||||||
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Mar. 29, 2014 |
Term of each fiscal year | 364 days | 364 days | |||
Term of each quarter | 91 days | 91 days | |||
Total operating expenses | $93,401 | $103,769 | $297,051 | $318,243 | |
Operating Expenses Would Be Higher [Member] | |||||
Total operating expenses | $1,700 | $1,700 |
EARNINGS_PER_SHARE_EPS_Schedul
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share Reconciliation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Basic EPS | ||||
Net income | $15,988 | $16,290 | $19,827 | $24,964 |
Basic weighted average shares (in shares) | 51,432,000 | 51,730,000 | 51,521,000 | 51,485,000 |
Basic income per share (in dollars per share) | $0.31 | $0.31 | $0.38 | $0.48 |
Diluted EPS | ||||
Net income | $15,988 | $16,290 | $19,827 | $24,964 |
Basic weighted average shares (in shares) | 51,432,000 | 51,730,000 | 51,521,000 | 51,485,000 |
Net effect of common stock equivalents (in shares) | 530,000 | 781,000 | 503,000 | 815,000 |
Diluted weighted average shares (in shares) | 51,962,000 | 52,511,000 | 52,024,000 | 52,300,000 |
Diluted income per share (in dollars per share) | $0.31 | $0.31 | $0.38 | $0.48 |
Stock options excluded from computation of weighted average shares outstanding (in shares) | 1,700,000 | 1,300,000 | 1,600,000 | 900,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 9 Months Ended | 0 Months Ended | |
Dec. 27, 2014 | Dec. 28, 2013 | Oct. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $10,219,000 | $9,664,000 | |
Tax benefit from compensation expense | 3,300,000 | 3,200,000 | |
Weighted average fair value of options granted (in dollars per share) | $7.89 | $10.17 | |
Total unrecognized compensation cost | 29,000,000 | ||
Total unrecognized compensation cost related to non-vested stock options, weighted average period of recognition | 2 years 7 months 10 days | ||
Stock Options Black-Scholes assumptions (weighted average): | |||
Volatility | 22.45% | 22.79% | |
Expected life (years) | 4 years 10 months 24 days | 4 years 10 months 24 days | |
Risk-free interest rate | 1.75% | 1.30% | |
Dividend yield | 0.00% | 0.00% | |
Shares purchased under the ESPP (in shares) | 183,808 | 156,224 | |
Shares purchased under the ESPP (in dollars per share) | $25.92 | $32.77 | |
2005 Long-Term Incentive Compensation Plan [Member] | Performance Shares [Member] | Senior Executives [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 129,130 | ||
Number of individuals | 14 | ||
Performance payout percentage | 100.00% | ||
Stock price correlation period | 3 years | ||
Dividend history | 12 months | ||
Stock-based compensation expense recognized | 278,000 | ||
PSU Award Fair Value (in dollars per share) | $35.09 | ||
Total unrecognized compensation cost | $4,253,000 | ||
Stock Options Black-Scholes assumptions (weighted average): | |||
Volatility | 20.00% | ||
Risk-free interest rate | 0.78% | ||
2005 Long-Term Incentive Compensation Plan [Member] | Performance Shares [Member] | Senior Executives [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 0 | ||
Performance payout percentage | 0.00% | ||
2005 Long-Term Incentive Compensation Plan [Member] | Performance Shares [Member] | Senior Executives [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 258,260 | ||
Performance payout percentage | 200.00% |
PRODUCT_WARRANTIES_Schedule_of
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Product Warranties [Roll Forward] | ||
Warranty accrual as of the beginning of the period | $590 | $673 |
Warranty provision | 890 | 1,214 |
Warranty spending | -941 | -1,178 |
Warranty accrual as of the end of the period | $539 | $709 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $74,555 | $72,508 |
Work-in-process | 6,431 | 7,383 |
Finished goods | 131,507 | 117,770 |
Inventories, net | $212,493 | $197,661 |
DERIVATIVES_AND_FAIR_VALUE_MEA2
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | ($8,409) | ($5,000) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Net revenues, COGS, and SG&A | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 2,921 | 7,100 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount Excluded from Effectiveness Testing | 107 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 255 | |
Amount Excluded from Effectiveness Testing | 0 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 0 | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount Excluded from Effectiveness Testing | $5,477 |
DERIVATIVES_AND_FAIR_VALUE_MEA3
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets) (Details) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Assets: | ||
Derivative Assets | $8,929 | $3,824 |
Derivative Liabilities: | ||
Derivative Liabilities | 2,465 | 1,255 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 8,088 | 2,574 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 2,465 | 1,255 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | $841 | $1,250 |
DERIVATIVES_AND_FAIR_VALUE_MEA4
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Financial Liabilities Measured at Fair Value) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 27, 2014 |
Assets | |
Money market funds | $72,875 |
Designated foreign currency hedge contracts | 8,088 |
Designated interest rate swap | 841 |
Assets, Fair Value Disclosure, Total | 81,804 |
Liabilities | |
Designated foreign currency hedge contracts | 2,465 |
Contingent consideration | 8,351 |
Liabilities, Fair Value Disclosure | 10,816 |
Quoted Market Prices for Identical Assets (Level 1) | |
Assets | |
Money market funds | 72,875 |
Designated foreign currency hedge contracts | 0 |
Designated interest rate swap | 0 |
Assets, Fair Value Disclosure, Total | 72,875 |
Liabilities | |
Designated foreign currency hedge contracts | 0 |
Contingent consideration | 0 |
Liabilities, Fair Value Disclosure | 0 |
Significant Other Observable Inputs (Level 2) | |
Assets | |
Money market funds | 0 |
Designated foreign currency hedge contracts | 8,088 |
Designated interest rate swap | 841 |
Assets, Fair Value Disclosure, Total | 8,929 |
Liabilities | |
Designated foreign currency hedge contracts | 2,465 |
Contingent consideration | 0 |
Liabilities, Fair Value Disclosure | 2,465 |
Significant Unobservable Inputs (Level 3) | |
Assets | |
Money market funds | 0 |
Designated foreign currency hedge contracts | 0 |
Designated interest rate swap | 0 |
Assets, Fair Value Disclosure, Total | 0 |
Liabilities | |
Designated foreign currency hedge contracts | 0 |
Contingent consideration | 8,351 |
Liabilities, Fair Value Disclosure | 8,351 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |
Contingent consideration as of March 29, 2014 | 7,645 |
Contingent consideration interest expense | 706 |
Ending balance | $8,351 |
DERIVATIVES_AND_FAIR_VALUE_MEA5
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 21, 2012 | Mar. 29, 2014 | Jun. 28, 2014 | |
Derivative [Line Items] | |||||
Percentage of sales generated outside the US | 45.90% | ||||
Maturity period for foreign currency contracts (in years) | 1 year | ||||
Designated foreign currency hedge contracts outstanding | $147,400,000 | $157,900,000 | |||
Gains reclassified to AOCI in next 12 months | 8,400,000 | ||||
Non-designated foreign currency hedge contracts outstanding | 60,400,000 | 72,900,000 | |||
Term Loan [Member] | |||||
Derivative [Line Items] | |||||
Face amount of debt | 475,000,000 | ||||
Designated as Hedging Instrument | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Deferred income tax expense (benefit) | 500,000 | ||||
Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Deferred income tax expense (benefit) | 300,000 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 8,409,000 | 5,000,000 | |||
Designated as Hedging Instrument | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | -255,000 | ||||
Description of variable rate basis | LIBOR | ||||
Derivative, fixed interest rate | 0.68% | ||||
Notional amount of derivative | 250,000,000 | ||||
Net revenues, COGS, and SG&A | Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | $2,921,000 | $7,100,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) | 9 Months Ended | |
Dec. 27, 2014 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | ||
Reported tax rate | 7.80% | 6.30% |
DEBT_Details
DEBT (Details) (USD $) | 3 Months Ended | ||
Jun. 28, 2014 | Dec. 27, 2014 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | |||
Debt outstanding | $429,406,000 | ||
2015 | 0 | ||
2016 | 21,342,000 | ||
2017 | 42,683,000 | ||
2018 | 45,054,000 | ||
2019 and beyond | 320,327,000 | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Term of credit facilities | 5 years | ||
Debt outstanding | 429,400,000 | ||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 1.56% | ||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.13% | ||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.50% | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | 475,000,000 | ||
Debt outstanding | 379,400,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | 50,000,000 | ||
Debt outstanding | 50,000,000 | ||
Maximum borrowing capacity | 100,000,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 27, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Damages claimed | $4.10 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) | 9 Months Ended |
Dec. 27, 2014 | |
segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
RESTRUCTURING_Narrative_Detail
RESTRUCTURING (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | $69,000,000 | $69,000,000 | ||
Expected cost in cash | 59,000,000 | |||
Restructuring Costs Incurred | 6,195,000 | 10,505,000 | 29,130,000 | 40,766,000 |
Transformation costs | 6,714,000 | 6,995,000 | 22,117,000 | 29,123,000 |
Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | 10,000,000 | 10,000,000 | ||
Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | $15,000,000 | $15,000,000 |
RESTRUCTURING_Schedule_of_Rest
RESTRUCTURING (Schedule of Restructuring Reserve by Type of Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | $23,636 | $3,262 | ||
Restructuring Costs Incurred | 6,195 | 10,505 | 29,130 | 40,766 |
Less Payments | -34,312 | -19,256 | ||
Less Non-Cash Adjustments | 1,453 | 2,672 | ||
Restructuring Accrual Balance | 17,001 | 22,100 | 17,001 | 22,100 |
Severance and other employee costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 22,908 | 3,089 | ||
Restructuring Costs Incurred | 2,887 | 5,348 | 15,633 | 28,189 |
Less Payments | -21,785 | -9,690 | ||
Less Non-Cash Adjustments | 0 | 0 | ||
Restructuring Accrual Balance | 16,756 | 21,588 | 16,756 | 21,588 |
Other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 728 | 173 | ||
Restructuring Costs Incurred | 2,691 | 4,588 | 12,044 | 9,905 |
Less Payments | -12,527 | -9,566 | ||
Less Non-Cash Adjustments | 0 | 0 | ||
Restructuring Accrual Balance | 245 | 512 | 245 | 512 |
Accelerated depreciation | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 0 | 0 | ||
Restructuring Costs Incurred | 418 | 569 | 1,158 | 1,757 |
Less Payments | 0 | 0 | ||
Less Non-Cash Adjustments | -1,158 | -1,757 | ||
Restructuring Accrual Balance | 0 | 0 | 0 | 0 |
Asset write-down | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 0 | 0 | ||
Restructuring Costs Incurred | 295 | 915 | ||
Less Payments | 0 | 0 | ||
Less Non-Cash Adjustments | -295 | -915 | ||
Restructuring Accrual Balance | $0 | $0 | $0 | $0 |
RESTRUCTURING_Schedule_of_Rest1
RESTRUCTURING (Schedule of Restructuring and Related Costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | $6,714 | $6,995 | $22,117 | $29,123 |
Restructuring Costs Incurred | 6,195 | 10,505 | 29,130 | 40,766 |
Total restructuring and transformation | 12,909 | 17,500 | 51,247 | 69,889 |
Severance and other employee costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 2,887 | 5,348 | 15,633 | 28,189 |
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 2,691 | 4,588 | 12,044 | 9,905 |
Accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 418 | 569 | 1,158 | 1,757 |
Asset disposal | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 199 | 0 | 295 | 915 |
Transformation and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | 5,892 | 6,306 | 20,877 | 26,389 |
Accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | 351 | 653 | 769 | 1,938 |
Asset disposal | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | $471 | $36 | $471 | $796 |
CAPITALIZATION_OF_SOFTWARE_DEV1
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Mar. 29, 2014 |
Research and Development [Abstract] | |||
Capitalized software development costs for ongoing initiatives | ($6.60) | $3.40 | |
Software costs capitalized, net | 38.3 | 31.7 | |
Total costs capitalized related to in process software development initiatives | 8.9 | 15.6 | |
Capitalized software development costs placed into service | $12.90 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 27, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 29, 2014 | $1,410 |
Other comprehensive income (loss)/income before reclassifications | -6,064 |
Amounts reclassified from Accumulated Other Comprehensive Income | -2,921 |
Net current period other comprehensive (loss)/income | -8,985 |
Balance as of December 27, 2014 | -7,575 |
Foreign Currency | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 29, 2014 | 3,198 |
Other comprehensive income (loss)/income before reclassifications | -13,621 |
Amounts reclassified from Accumulated Other Comprehensive Income | 0 |
Net current period other comprehensive (loss)/income | -13,621 |
Balance as of December 27, 2014 | -10,423 |
Defined Benefit Plans | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 29, 2014 | -4,592 |
Other comprehensive income (loss)/income before reclassifications | -597 |
Amounts reclassified from Accumulated Other Comprehensive Income | 0 |
Net current period other comprehensive (loss)/income | -597 |
Balance as of December 27, 2014 | -5,189 |
Net Unrealized (Gain)/Loss on Derivatives | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 29, 2014 | 2,804 |
Other comprehensive income (loss)/income before reclassifications | 8,154 |
Amounts reclassified from Accumulated Other Comprehensive Income | -2,921 |
Net current period other comprehensive (loss)/income | 5,233 |
Balance as of December 27, 2014 | $8,037 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized net gain on derivatives | ($2,308) | ($2,852) | ($7,496) | ($8,035) |
Income tax effect | 36 | 1,282 | -1,679 | -1,682 |
Net income | 15,988 | 16,290 | 19,827 | 24,964 |
Net Unrealized (Gain)/Loss on Derivatives | Amounts Reclassified from Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized net gain on derivatives | 3,041 | |||
Income tax effect | -120 | |||
Net income | $2,921 |