DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION Document (USD $) | 9 Months Ended | ||
Dec. 31, 2013 | Jan. 25, 2014 | Sep. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'PLANTRONICS INC /CA/ | ' | ' |
Entity Central Index Key | '0000914025 | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 42,998,159 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $2,043,949,950 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $235,534 | $228,776 |
Short-term investments | 86,397 | 116,581 |
Accounts receivable, net | 133,379 | 128,209 |
Inventory, net | 66,569 | 67,435 |
Deferred tax assets | 14,351 | 10,120 |
Other current assets | 16,875 | 15,369 |
Total current assets | 553,105 | 566,490 |
Long-term investments | 106,800 | 80,261 |
Property, plant, and equipment, net | 124,933 | 99,111 |
Goodwill and purchased intangibles, net | 16,215 | 16,440 |
Other assets | 2,317 | 2,303 |
Total assets | 803,370 | 764,605 |
Current liabilities: | ' | ' |
Accounts payable | 26,728 | 37,067 |
Accrued liabilities | 66,615 | 66,419 |
Total current liabilities | 93,343 | 103,486 |
Deferred tax liabilities | 2,024 | 1,742 |
Long-term income taxes payable | 13,460 | 12,005 |
Other long-term liabilities | 2,295 | 925 |
Total liabilities | 111,122 | 118,158 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock | 768 | 757 |
Additional paid-in capital | 652,503 | 612,283 |
Accumulated other comprehensive income | 1,773 | 5,567 |
Retained earnings | 99,713 | 28,344 |
Total stockholders' equity before treasury stock | 754,757 | 646,951 |
Less: Treasury stock, at cost | -62,509 | -504 |
Total stockholders' equity | 692,248 | 646,447 |
Total liabilities and stockholders' equity | $803,370 | $764,605 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenues | $212,739 | $197,402 | $609,537 | $558,047 |
Cost of revenues | 102,412 | 95,238 | 293,964 | 260,959 |
Gross profit | 110,327 | 102,164 | 315,573 | 297,088 |
Operating expenses: | ' | ' | ' | ' |
Research, development, and engineering | 21,018 | 20,248 | 62,328 | 59,525 |
Selling, general, and administrative | 51,467 | 45,442 | 148,071 | 134,476 |
Restructuring and other related charges | 0 | 1,868 | 547 | 1,868 |
Total operating expenses | 72,485 | 67,558 | 210,946 | 195,869 |
Operating income | 37,842 | 34,606 | 104,627 | 101,219 |
Interest and other income, net | 186 | 177 | 59 | 464 |
Income before income taxes | 38,028 | 34,783 | 104,686 | 101,683 |
Income tax expense | 3,645 | 6,577 | 20,212 | 23,990 |
Net income | $34,383 | $28,206 | $84,474 | $77,693 |
Earnings per common share: | ' | ' | ' | ' |
Basic | $0.81 | $0.68 | $1.98 | $1.87 |
Diluted | $0.80 | $0.66 | $1.94 | $1.82 |
Shares used in computing basic earnings per common share | 42,441 | 41,745 | 42,647 | 41,629 |
Shares used in computing diluted earnings per common share | 43,228 | 42,618 | 43,554 | 42,579 |
Cash dividends declared per common share | $0.10 | $0.10 | $0.30 | $0.30 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $34,383 | $28,206 | $84,474 | $77,693 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -73 | 61 | -114 | -58 |
Unrealized cash flow hedge gains (losses) arising during the period | -218 | -944 | -3,794 | 590 |
Net (gains) losses reclassified into income for revenue hedges | 114 | -262 | 258 | -3,281 |
Net (gains) losses reclassified into income for cost of revenue hedges | 63 | -399 | -176 | -109 |
Net unrealized losses on cash flow hedges | -41 | -1,605 | -3,712 | -2,800 |
Unrealized holding gains (losses) during the period | -1 | -33 | 5 | 25 |
Other comprehensive loss | -115 | -1,577 | -3,821 | -2,833 |
Comprehensive income | $34,268 | $26,629 | $80,653 | $74,860 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $84,474 | $77,693 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 11,671 | 12,104 |
Stock-based compensation | 16,996 | 14,173 |
Provision for excess and obsolete inventories | 4,419 | 1,306 |
Deferred income taxes | 530 | -1,030 |
Excess tax benefit from stock-based compensation | -4,434 | -930 |
Other operating activities | 1,345 | 1,639 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable, net | -6,539 | -1,215 |
Inventory, net | -3,135 | -13,943 |
Current and other assets | 826 | -4,928 |
Accounts payable | -10,339 | 1,723 |
Accrued liabilities | 1,388 | 3,840 |
Income taxes | -5,080 | 2,822 |
Cash provided by operating activities | 92,122 | 93,254 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Proceeds from sales of investments | 89,682 | 38,078 |
Proceeds from maturities of investments | 95,210 | 117,665 |
Purchase of investments | -181,836 | -188,062 |
Acquisitions, net of cash acquired | 0 | -1,926 |
Capital expenditures | -37,657 | -29,378 |
Cash used for investing activities | -34,601 | -63,623 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Repurchase of common stock | -56,754 | -23,626 |
Proceeds from issuances under stock-based compensation plans | 19,599 | 13,091 |
Employees' tax withheld and paid for restricted stock and restricted stock units | -6,014 | -2,848 |
Proceeds from revolving line of credit | 0 | 18,000 |
Repayments of revolving line of credit | 0 | -35,000 |
Payment of cash dividends | -13,105 | -12,756 |
Excess tax benefit from stock-based compensation | 4,434 | 930 |
Cash used for financing activities | -51,840 | -42,209 |
Effect of exchange rate changes on cash and cash equivalents | 1,077 | -101 |
Net increase (decrease) in cash and cash equivalents | 6,758 | -12,679 |
Cash and cash equivalents at beginning of period | 228,776 | 209,335 |
Cash and cash equivalents at end of period | $235,534 | $196,656 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements (“financial statements”) of Plantronics, Inc. (“Plantronics” or "the Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the financial statements have been prepared on a basis consistent with the Company's March 31, 2013 audited consolidated financial statements and include all adjustments, consisting of normal recurring adjustments, necessary to fairly state the information set forth herein. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013, which was filed with the SEC on May 24, 2013. The results of operations for the interim period ended December 31, 2013 are not indicative of the results to be expected for the entire fiscal year or any future period. | |
The financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |
The Company’s fiscal year ends on the Saturday closest to the last day of March. The Company’s current fiscal year ends on March 29, 2014 and consists of 52 weeks. The Company's prior fiscal year ended on March 30, 2013 and also consisted of 52 weeks. The Company’s results of operations for the three and nine months ended December 28, 2013 and December 29, 2012 both contain 13 and 39 weeks, respectively. For purposes of presentation, the Company has indicated its accounting year as ending on March 31 and its interim quarterly periods as ending on the applicable calendar month end. | |
Out of Period Corrections of Immaterial Errors | |
During the third quarter of fiscal 2014, the Company identified immaterial out of period errors related to its estimated warranty obligation and return material authorization ("RMA") reserves, the correction of which decreased its cost of revenues by approximately $2.4 million and increased net income by approximately $2.1 million. The Company recorded these corrections in the quarter ended December 31, 2013 because the errors were not material, either individually or in the aggregate, to any of the prior reporting periods. In addition, the Company expects the cumulative amount of these adjustments, both individually and in the aggregate, will not be material for the fiscal year ending March 31, 2014. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Recently Issued Pronouncements | |
Recent accounting pronouncements issued by the Financial Accounting Standards Board ("FASB") and the SEC did not and are not expected by the Company to have a material impact on the Company's present or future consolidated financial statements. |
CASH_CASH_EQUIVALENTS_AND_INVE
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | ' | ||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND INVESTMENTS | ' | ||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND INVESTMENTS | |||||||||||||||||||||||||||||||||
The following table represents the Company’s cash, cash equivalents, and investments as of December 31, 2013 and March 31, 2013: | |||||||||||||||||||||||||||||||||
(in thousands) | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 225,310 | $ | — | $ | — | $ | 225,310 | $ | 118,881 | $ | — | $ | — | $ | 118,881 | |||||||||||||||||
Cash equivalents | 10,223 | 1 | — | 10,224 | 109,895 | — | — | 109,895 | |||||||||||||||||||||||||
Total cash and cash equivalents | $ | 235,533 | $ | 1 | $ | — | $ | 235,534 | $ | 228,776 | $ | — | $ | — | $ | 228,776 | |||||||||||||||||
Short-term investments (due in 1 year or less): | |||||||||||||||||||||||||||||||||
U.S. Treasury Bills and Government Agency Securities | $ | 19,227 | $ | 6 | $ | (1 | ) | $ | 19,232 | $ | 66,092 | $ | 18 | $ | (3 | ) | $ | 66,107 | |||||||||||||||
Commercial paper | 43,792 | 13 | — | 43,805 | 15,670 | 9 | — | 15,679 | |||||||||||||||||||||||||
Corporate bonds | 22,353 | 6 | (2 | ) | 22,357 | 34,766 | 31 | (2 | ) | 34,795 | |||||||||||||||||||||||
Certificates of deposit ("CDs") | 1,002 | 1 | — | 1,003 | — | — | — | — | |||||||||||||||||||||||||
Total short-term investments | $ | 86,374 | $ | 26 | $ | (3 | ) | $ | 86,397 | $ | 116,528 | $ | 58 | $ | (5 | ) | $ | 116,581 | |||||||||||||||
Long-term investments (due in 1 to 3 years): | |||||||||||||||||||||||||||||||||
U.S. Treasury Bills and Government Agency Securities | $ | 36,929 | $ | 23 | $ | (14 | ) | $ | 36,938 | $ | 55,317 | $ | 42 | $ | (1 | ) | $ | 55,358 | |||||||||||||||
Corporate bonds | 69,772 | 116 | (26 | ) | 69,862 | 23,878 | 23 | (3 | ) | 23,898 | |||||||||||||||||||||||
CDs | — | — | — | — | 1,002 | 3 | — | 1,005 | |||||||||||||||||||||||||
Total long-term investments | $ | 106,701 | $ | 139 | $ | (40 | ) | $ | 106,800 | $ | 80,197 | $ | 68 | $ | (4 | ) | $ | 80,261 | |||||||||||||||
Total cash, cash equivalents and investments | $ | 428,608 | $ | 166 | $ | (43 | ) | $ | 428,731 | $ | 425,501 | $ | 126 | $ | (9 | ) | $ | 425,618 | |||||||||||||||
As of December 31, 2013 and March 31, 2013, all of the Company’s investments are classified as available-for-sale securities. The carrying value of available-for-sale securities included in cash equivalents approximates fair value because of the short maturity of those instruments. | |||||||||||||||||||||||||||||||||
The Company did not incur any material realized or unrealized net gains or losses in the three and nine months ended December 31, 2013 and 2012. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||
The following tables present the Company’s cash and financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 and March 31, 2013. | |||||||||||||
Fair Values as of December 31, 2013: | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 225,310 | $ | — | $ | 225,310 | |||||||
Mutual funds | 1,227 | — | 1,227 | ||||||||||
Commercial paper | — | 8,997 | 8,997 | ||||||||||
Short-term investments: | |||||||||||||
Government Agency Securities | — | 19,232 | 19,232 | ||||||||||
Commercial paper | — | 43,805 | 43,805 | ||||||||||
Corporate bonds | — | 22,357 | 22,357 | ||||||||||
CDs | — | 1,003 | 1,003 | ||||||||||
Long-term investments: | |||||||||||||
Government Agency Securities | — | 36,938 | 36,938 | ||||||||||
Corporate bonds | — | 69,862 | 69,862 | ||||||||||
Other current assets: | |||||||||||||
Derivative assets | — | 967 | 967 | ||||||||||
Total assets measured at fair value | $ | 226,537 | $ | 203,161 | $ | 429,698 | |||||||
Accrued liabilities: | |||||||||||||
Derivative liabilities | $ | — | $ | 3,841 | $ | 3,841 | |||||||
Fair Values as of March 31, 2013: | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 118,881 | $ | — | $ | 118,881 | |||||||
U.S. Treasury Bills | 104,995 | — | 104,995 | ||||||||||
Commercial paper | — | 4,900 | 4,900 | ||||||||||
Short-term investments: | |||||||||||||
U.S. Treasury Bills and Government Agency Securities | 7,243 | 58,864 | 66,107 | ||||||||||
Commercial paper | — | 15,679 | 15,679 | ||||||||||
Corporate bonds | — | 34,795 | 34,795 | ||||||||||
Long-term investments: | |||||||||||||
U.S. Treasury Bills and Government Agency Securities | 22,904 | 32,454 | 55,358 | ||||||||||
Corporate bonds | — | 23,898 | 23,898 | ||||||||||
CDs | — | 1,005 | 1,005 | ||||||||||
Other current assets: | |||||||||||||
Derivative assets | — | 1,665 | 1,665 | ||||||||||
Total assets measured at fair value | $ | 254,023 | $ | 173,260 | $ | 427,283 | |||||||
Accrued liabilities: | |||||||||||||
Derivative liabilities | $ | 3 | $ | 291 | $ | 294 | |||||||
There were no transfers between fair value measurement levels during the three and nine months ended December 31, 2013 and 2012. | |||||||||||||
Refer to Note 12, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of December 31, 2013 and March 31, 2013. | |||||||||||||
All financial assets and liabilities are recognized or disclosed at fair value in the financial statements. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||||||||||
Level 1 | |||||||||||||
The Company's Level 1 financial assets consist of Mutual Funds. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities. | |||||||||||||
Level 2 | |||||||||||||
The Company's Level 2 financial assets and liabilities consist of Government Agency Securities, Commercial Paper, Corporate Bonds, CDs, and derivative foreign currency call and put option contracts and cross-currency swaps. The fair value of Level 2 investment securities is determined based on other observable inputs, including multiple non-binding quotes from independent pricing services. Non-binding quotes are based on proprietary valuation models that are prepared by the independent pricing services and use algorithms based on inputs such as observable market data, quoted market prices for similar securities, issuer spreads, and internal assumptions of the broker. The Company corroborates the reasonableness of non-binding quotes received from the independent pricing services using a variety of techniques depending on the underlying instrument, including: (i) comparing them to actual experience gained from the purchases and maturities of investment securities, (ii) comparing them to internally developed cash flow models based on observable inputs, and (iii) monitoring changes in ratings of similar securities and the related impact on fair value. The fair value of Level 2 derivative foreign currency contracts is determined using pricing models that use observable market inputs. |
DETAILS_OF_CERTAIN_BALANCE_SHE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | ' | ||||||||
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | |||||||||
Accounts receivable, net: | |||||||||
December 31, | March 31, | ||||||||
(in thousands) | 2013 | 2013 | |||||||
Accounts receivable | $ | 159,317 | $ | 151,250 | |||||
Provisions for returns | (8,912 | ) | (8,957 | ) | |||||
Provisions for promotions, rebates, and other | (16,814 | ) | (13,675 | ) | |||||
Provisions for doubtful accounts and sales allowances | (212 | ) | (409 | ) | |||||
Accounts receivable, net | $ | 133,379 | $ | 128,209 | |||||
Inventory, net: | |||||||||
December 31, | March 31, | ||||||||
(in thousands) | 2013 | 2013 | |||||||
Raw materials | $ | 34,258 | $ | 28,743 | |||||
Work in process | 432 | 82 | |||||||
Finished goods | 31,879 | 38,610 | |||||||
Inventory, net | $ | 66,569 | $ | 67,435 | |||||
Accrued Liabilities: | |||||||||
December 31, | March 31, | ||||||||
(in thousands) | 2013 | 2013 | |||||||
Employee compensation and benefits | $ | 31,779 | $ | 29,796 | |||||
Warranty obligation | 7,963 | 13,410 | |||||||
Accrued advertising, sales, and marketing | 4,847 | 3,735 | |||||||
Accrued other | 22,026 | 19,478 | |||||||
Accrued liabilities | $ | 66,615 | $ | 66,419 | |||||
The Company's warranty obligation is included as a component of accrued liabilities in the condensed consolidated balance sheets. Changes in the warranty obligation during the nine months ended December 31, 2013 were as follows: | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||
(in thousands) | December 31, 2013 | December 31, 2012 | |||||||
Warranty obligation at beginning of period | $ | 13,410 | $ | 13,346 | |||||
Correction of immaterial prior period error (2) | (5,042 | ) | — | ||||||
Warranty provision relating to products shipped | 6,851 | 11,856 | |||||||
Deductions for warranty claims processed | (7,256 | ) | (12,147 | ) | |||||
Warranty obligation at end of period | $ | 7,963 | $ | 13,055 | |||||
(2)Refer to Note 1, Basis of Presentation, for details about the prior period error corrected in the quarter ended December 31, 2013. |
GOODWILL_AND_PURCHASED_INTANGI
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 9 Months Ended |
Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
GOODWILL | ' |
GOODWILL | |
Goodwill as of December 31, 2013 and March 31, 2013 was $15.5 million, net of accumulated impairment of $54.6 million. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Unconditional Purchase Obligations | |
The Company contracts with several outsourcing partners to manufacture sub-assemblies for the Company’s products. These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 270 days. The Company also obtains individual components for its products from a wide variety of individual suppliers. Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information. As of December 31, 2013, the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $215.7 million. | |
Other Guarantees and Obligations | |
In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, purchasers of assets or subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of agreements or representations and warranties made by the Company, services to be provided by the Company, intellectual property infringement claims made by third parties or, with respect to the sale of assets or a subsidiary, matters related to the Company's conduct of business and tax matters prior to the sale. From time to time, the Company indemnifies customers against combinations of loss, expense, or liability arising from various triggering events relating to the sale and use of its products and services. In addition, the Company also provides protection to customers against claims related to undiscovered liabilities, additional product liability, or environmental obligations. In addition, the Company has entered into indemnification agreements with its directors and certain of its officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers of the Company. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors and officers in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, the Company has not incurred material costs as a result of obligations under these agreements and it has not accrued any liabilities related to such indemnification obligations in the condensed consolidated financial statements. | |
Claims and Litigation | |
On October 12, 2012, GN Netcom, Inc. sued Plantronics, Inc. in the U.S. District Court for the District of Delaware, alleging violations of the Sherman Act, the Clayton Act, and Delaware common law. In its complaint, GN specifically alleges four causes of action: monopolization, attempted monopolization, concerted action in restraint of trade, and tortious interference with business relations. GN claims that the Company dominates the market for headsets sold into contact centers in the United States and that a critical channel for sales of headsets to contact centers is through a limited network of specialized independent distributors (“SIDs”). GN asserts that the Company attracts SIDs through exclusive distributor agreements and alleges that the use of these agreements is illegal. The Company denies each of the allegations in the complaint and is vigorously defending itself. Given the preliminary nature of the case, the Company is unable to estimate an amount or range of any reasonably possible losses resulting from these allegations. | |
In addition, the Company is involved in various legal proceedings arising in the normal course of conducting business. For such legal proceedings, where applicable, the Company has accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to the Company's financial condition, results of operations, or cash flows. With respect to proceedings for which no accrual has been made, the Company is not able to estimate an amount or range of any reasonably possible additional losses because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings, and the difficulty of predicting the settlement value of many of these proceedings. However, based upon the Company's historical experience, the resolution of these proceedings is not expected to have a material effect on the Company's financial condition, results of operations or cash flows. The Company may incur substantial legal fees, which are expensed as incurred, in defending against these legal proceedings. |
CREDIT_AGREEMENT
CREDIT AGREEMENT | 9 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
CREDIT AGREEMENT | ' |
CREDIT AGREEMENT | |
On May 9, 2011, the Company entered into a credit agreement with Wells Fargo Bank, National Association ("the Bank"), which was most recently amended on January 27, 2014 to extend its term to May 9, 2017 (as amended, "the Credit Agreement"). The Credit Agreement provides for a $100.0 million unsecured revolving line of credit ("line of credit") and, if requested by the Company, the Bank may increase its commitment thereunder by up to $100.0 million, for a total facility size of up to $200.0 million. As of December 31, 2013 and March 31, 2013, the Company had no outstanding borrowings under the line of credit. | |
Loans under the Credit Agreement bear interest at the election of the Company (i) at the Bank's announced prime rate less 1.50% per annum, (ii) at a daily one month LIBOR rate plus 1.10% per annum or (iii) at an adjusted LIBOR rate, for a term of one, three or six months, plus 1.10% per annum. Interest on the loans is payable quarterly in arrears. In addition, the Company pays a fee equal to 0.20% per annum on the average daily unused amount of the line of credit, which is payable quarterly in arrears. | |
Principal, together with accrued and unpaid interest, is due on the amended maturity date, May 9, 2017. The Company may prepay the loans and terminate the commitments in whole at any time, without premium or penalty, subject to reimbursement of certain costs in the case of LIBOR loans. | |
The Company's obligations under the Credit Agreement are guaranteed by the Company's domestic subsidiaries, subject to certain exceptions. | |
The line of credit requires the Company to comply with a maximum ratio of funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") and a minimum EBITDA coverage ratio, in each case, at each fiscal quarter end and determined on a rolling four-quarter basis. In addition, the Company and its subsidiaries are required to maintain unrestricted cash, cash equivalents, and marketable securities plus availability under the Credit Agreement at the end of each fiscal quarter of at least $200.0 million. | |
The line of credit contains affirmative covenants, including covenants regarding the payment of taxes and other liabilities, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations. The line of credit also contains negative covenants, among other things, limiting, subject to certain monetary thresholds, the ability of the Company to incur debt, make capital expenditures, grant liens, make acquisitions, and make investments. The events of default under the line of credit include payment defaults, cross defaults with certain other indebtedness, breaches of covenants, judgment defaults, and bankruptcy and insolvency events involving the Company or any of its subsidiaries. The Company was in compliance with all covenants at December 31, 2013. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
The Company recognizes the grant-date fair value of stock-based compensation as compensation expense using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest. The following table summarizes the amount of stock-based compensation included in the condensed consolidated statements of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 686 | $ | 507 | $ | 1,859 | $ | 1,629 | |||||||||
Research, development and engineering | 1,688 | 1,336 | 4,708 | 3,715 | |||||||||||||
Selling, general and administrative | 3,669 | 2,848 | 10,429 | 8,829 | |||||||||||||
Stock-based compensation included in operating expenses | 5,357 | 4,184 | 15,137 | 12,544 | |||||||||||||
Total stock-based compensation | 6,043 | 4,691 | 16,996 | 14,173 | |||||||||||||
Income tax benefit | (1,788 | ) | (1,342 | ) | (5,063 | ) | (4,256 | ) | |||||||||
Total stock-based compensation, net of tax | $ | 4,255 | $ | 3,349 | $ | 11,933 | $ | 9,917 | |||||||||
Stock Options | |||||||||||||||||
The following is a summary of the Company’s stock option activity during the nine months ended December 31, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual Life | ||||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||
Outstanding at March 31, 2013 | 2,415 | $ | 27.96 | ||||||||||||||
Options granted | 297 | $ | 44.75 | ||||||||||||||
Options exercised | (702 | ) | $ | 24.27 | |||||||||||||
Options forfeited or expired | (13 | ) | $ | 33.28 | |||||||||||||
Outstanding at December 31, 2013 | 1,997 | $ | 31.71 | 4.2 | $ | 29,100 | |||||||||||
Vested and expected to vest at December 31, 2013 | 1,952 | $ | 31.52 | 4.1 | $ | 28,834 | |||||||||||
Exercisable at December 31, 2013 | 1,364 | $ | 28.4 | 3.4 | $ | 24,373 | |||||||||||
The total intrinsic value of options exercised during the nine months ended December 31, 2013 and 2012 was $15.1 million and $5.1 million, respectively. Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price at the time of option exercise. The total cash received as a result of stock option exercises during the nine months ended December 31, 2013 was $17.0 million, net of taxes. | |||||||||||||||||
As of December 31, 2013, total unrecognized compensation cost related to unvested stock options was $5.8 million, which is expected to be recognized over a weighted average period of 2.0 years. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
Restricted stock consists of awards of restricted stock and restricted stock units ("RSUs"). The following is a summary of the Company’s restricted stock activity during the nine months ended December 31, 2013: | |||||||||||||||||
Number of | Weighted Average Grant Date Fair Value | ||||||||||||||||
Shares | |||||||||||||||||
(in thousands) | |||||||||||||||||
Non-vested at March 31, 2013 | 1,025 | $ | 33.34 | ||||||||||||||
Restricted stock granted | 570 | $ | 46.09 | ||||||||||||||
Restricted stock vested | (373 | ) | $ | 33.09 | |||||||||||||
Restricted stock forfeited | (36 | ) | $ | 37.07 | |||||||||||||
Non-vested at December 31, 2013 | 1,186 | $ | 39.43 | ||||||||||||||
The weighted average grant-date fair value of awards of restricted stock is based on the quoted market price of the Company's common stock on the date of grant. The weighted average grant-date fair value of restricted stock granted during the nine months ended December 31, 2013 and 2012 was $46.09 and $32.13, respectively. The total fair value of restricted stock that vested during the nine months ended December 31, 2013 and 2012 was $12.3 million and $6.5 million, respectively. | |||||||||||||||||
As of December 31, 2013, total unrecognized compensation cost related to unvested restricted stock was $31.8 million, which is expected to be recognized over a weighted average period of 2.2 years. | |||||||||||||||||
Valuation Assumptions | |||||||||||||||||
The Company estimates the fair value of stock options and Employee Stock Purchase Plan (“ESPP”) shares using a Black-Scholes option valuation model. At the date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using the following weighted average assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
Employee Stock Options | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected volatility | 30.1 | % | 41.2 | % | 32.2 | % | 41.8 | % | |||||||||
Risk-free interest rate | 1.1 | % | 0.6 | % | 0.9 | % | 0.6 | % | |||||||||
Expected dividend yield | 0.9 | % | 1.2 | % | 0.9 | % | 1.2 | % | |||||||||
Expected life (in years) | 4.2 | 4.3 | 4.2 | 4.3 | |||||||||||||
Weighted-average grant date fair value | $ | 10.15 | $ | 10.1 | $ | 11.15 | $ | 10.31 | |||||||||
ESPP (1) | |||||||||||||||||
Expected volatility | 24.9 | % | 38.4 | % | |||||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | |||||||||||||
Expected dividend yield | 0.9 | % | 1.1 | % | |||||||||||||
Expected life (in years) | 0.5 | 0.5 | |||||||||||||||
Weighted-average grant date fair value | $ | 9.58 | $ | 8.95 | |||||||||||||
(1) No purchase rights were granted under the ESPP during the three months ended December 31, 2013 or 2012. |
COMMON_STOCK_REPURCHASES
COMMON STOCK REPURCHASES | 9 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
COMMON STOCK REPURCHASES | ' |
COMMON STOCK REPURCHASES | |
From time to time, the Company's Board of Directors ("Board") has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Repurchased shares are held as treasury stock until they are retired or re-issued. Repurchases by the Company pursuant to Board authorized programs during the nine months ended December 31, 2013 and 2012 are discussed below. As of December 31, 2013, there remained 600,000 shares authorized for repurchase under the program approved by the Board on November 11, 2013 and there were no remaining shares authorized under previously approved programs. | |
Open Market Repurchases | |
In the nine months ended December 31, 2013 and 2012, the Company repurchased 1,281,907 shares and 743,818 shares, respectively, of its common stock in the open market for a total cost of $56.8 million and $23.6 million, respectively, and at an average price per share of $44.27 and $31.76, respectively. | |
In addition, the Company withheld shares valued at $6.0 million and $2.8 million in the nine months ended December 31, 2013, and 2012, respectively, in satisfaction of employee tax withholding obligations upon the vesting of restricted stock granted under the Company's stock plans. The amounts withheld were equivalent to the employees' minimum statutory tax withholding requirements and are reflected as a financing activity within the Company's condensed consolidated statements of cash flows. These share withholdings have the effect of share repurchases by the Company as they reduce the number of shares that would have otherwise been issued in connection with the vesting of shares subject to the restricted stock grants and did not represent an expense to the Company. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||
The components of accumulated other comprehensive income ("AOCI"), net of immaterial tax effects, are as follows: | ||||||||||
(in thousands) | December 31, 2013 | 31-Mar-13 | ||||||||
Accumulated unrealized gain (loss) on cash flow hedges (1) | $ | (2,335 | ) | $ | 1,349 | |||||
Accumulated foreign currency translation adjustments | 4,017 | 4,131 | ||||||||
Accumulated unrealized gain on investments | 91 | 87 | ||||||||
Accumulated other comprehensive income | $ | 1,773 | $ | 5,567 | ||||||
(1)Refer to Note 12, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of December 31, 2013 and March 31, 2013. |
FOREIGN_CURRENCY_DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
FOREIGN CURRENCY DERIVATIVES | ' | ||||||||||||||||
FOREIGN CURRENCY DERIVATIVES | |||||||||||||||||
The Company's foreign currency derivatives consist primarily of foreign currency forward exchange contracts, option contracts and cross-currency swaps. The derivatives expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the derivative instrument. The Company's maximum exposure to loss due to credit risk that it would incur if parties to derivative contracts failed completely to perform according to the terms of the contracts was equal to the carrying value of the Company's derivative assets as of December 31, 2013. The Company seeks to mitigate such risk by limiting its counterparties to large financial institutions. In addition, the Company monitors the potential risk of loss with any one counterparty resulting from this type of credit risk on an ongoing basis. | |||||||||||||||||
The Company enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between Plantronics and the counterparty as a result of multiple, separate derivative transactions. As of December 31, 2013, the Company has International Swaps and Derivatives Association (ISDA) agreements with three applicable banks and financial institutions which contain netting provisions. Plantronics has elected to present the fair value of derivative assets and liabilities within the Company's consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period. Derivatives not subject to master netting agreements are not eligible for net presentation. As of December 31, 2013 and March 31, 2013, no cash collateral had been received or pledged related to these derivative instruments. | |||||||||||||||||
Refer to Note 4, Fair Value Measurements, for disclosure of the Company's fair value hierarchy for its derivative instruments and Note 11, Accumulated Other Comprehensive Income, for further discussion. | |||||||||||||||||
Non-Designated Hedges | |||||||||||||||||
As of December 31, 2013, the Company had foreign currency forward contracts denominated in Euros ("EUR"), British Pound Sterling ("GBP"), and Australian Dollars ("AUD"). The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts hedge against a portion of the Company’s foreign currency-denominated cash balances, receivables and payables. The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at December 31, 2013: | |||||||||||||||||
(in thousands) | Local Currency | USD Equivalent | Position | Maturity | |||||||||||||
EUR | € | 24,000 | $ | 33,045 | Sell EUR | 1 month | |||||||||||
GBP | £ | 1,300 | $ | 2,144 | Sell GBP | 1 month | |||||||||||
AUD | A$ | 3,350 | $ | 2,971 | Sell AUD | 1 month | |||||||||||
Effect of Non-Designated Derivative Contracts on the Condensed Consolidated Statements of Operations | |||||||||||||||||
The effect of non-designated derivative contracts on results of operations recognized in interest and other income, net in the condensed consolidated statements of operations was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Gain (loss) on foreign exchange contracts | $ | (372 | ) | $ | (618 | ) | $ | (1,564 | ) | $ | 202 | ||||||
Cash Flow Hedges | |||||||||||||||||
On a monthly basis, the Company enters into option contracts with a one-year term. The Company hedges a portion of the forecasted EUR and GBP denominated revenues with costless collars. The Company does not purchase options for trading purposes. As of December 31, 2013, the Company had foreign currency option contracts of approximately €53.4 million and £22.2 million. As of March 31, 2013, the Company had foreign currency option contracts of approximately €50.2 million and £19.9 million. A loss of $2.4 million, net of tax, in accumulated other comprehensive income ("AOCI") as of December 31, 2013 is expected to be reclassified to net revenues during the next 12 months due to the recognition of the hedged forecasted sales. | |||||||||||||||||
The Company hedges a portion of the forecasted Mexican Peso (“MXN”) denominated expenditures with a cross-currency swap. There were no material gains or losses in AOCI as of December 31, 2013 expected to be reclassified into cost of revenues during the next 12 months due to the recognition of the hedged forecasted expenditures. As of December 31, 2013 and March 31, 2013, the Company had foreign currency swap contracts of approximately MXN278.4 million and MXN325.4 million, respectively. | |||||||||||||||||
The following table summarizes the notional value of the Company’s outstanding MXN cross-currency swaps and approximate USD Equivalent at December 31, 2013: | |||||||||||||||||
(in thousands) | Local Currency | USD Equivalent | Position | Maturity | |||||||||||||
MXN | 278,350 | $ | 21,060 | Buy MXN | Monthly over | 12 months | |||||||||||
Effect of Designated Derivative Contracts on AOCI and Condensed Consolidated Statements of Operations | |||||||||||||||||
The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on the accumulated other comprehensive income and condensed consolidated statements of income for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Gain (loss) included in AOCI as of beginning of period | $ | (2,373 | ) | $ | 717 | $ | 1,371 | $ | 1,937 | ||||||||
Amount of gain (loss) recognized in OCI (effective portion) | (222 | ) | (961 | ) | (3,869 | ) | 587 | ||||||||||
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | (116 | ) | 266 | (262 | ) | 3,329 | |||||||||||
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (64 | ) | 404 | 179 | 109 | ||||||||||||
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | (180 | ) | 670 | (83 | ) | 3,438 | |||||||||||
Loss included in AOCI as of end of period | $ | (2,415 | ) | $ | (914 | ) | $ | (2,415 | ) | $ | (914 | ) |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The Company and its subsidiaries are subject to taxation in the U.S. and in various foreign and state jurisdictions. The effective tax rate for the three and nine months ended December 31, 2013 was 9.6% and 19.3%, respectively, compared to 18.9% and 23.6%, respectively, for the same periods in the prior year. The effective tax rates differ from the statutory rate due primarily to the generation of a foreign tax credit carryover, changes in Mexican tax law that resulted in the reversal of a valuation allowance, a first time tax deduction for qualifying domestic production activities that were not in the same period a year ago, and a larger proportion of income in foreign jurisdictions taxed at lower rates. | |
Included in long-term income taxes payable in the condensed consolidated balance sheets as of December 31, 2013 and March 31, 2013 were unrecognized tax benefits of $12.7 million and $11.1 million, respectively, which would favorably impact the effective tax rate in future periods if recognized. | |
The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense in the condensed consolidated statements of operations. The accrued interest related to unrecognized tax benefits is $1.8 million as of December 31, 2013 as compared to $2.0 million as of March 31, 2013. No penalties have been accrued. | |
The Company is under examination by the Internal Revenue Service for its 2010 tax year and the California Franchise Tax Board for its 2007 and 2008 tax years. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to fiscal 2007, except for the United Kingdom, which has been concluded for tax years prior to fiscal year 2012. | |
The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. |
COMPUTATION_OF_EARNINGS_PER_CO
COMPUTATION OF EARNINGS PER COMMON SHARE | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
COMPUTATION OF EARNINGS PER COMMON SHARE | ' | ||||||||||||||||
COMPUTATION OF EARNINGS PER COMMON SHARE | |||||||||||||||||
The Company has a share-based compensation plan under which employees, non-employee directors, and consultants may be granted share-based awards, including shares of restricted stock on which non-forfeitable dividends are paid on unvested shares. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share as described in the Earnings per Share Topic of the FASB ASC. The two-class method of calculating earnings per share did not have a material impact on the Company's earnings per share calculation for the three and nine month periods ending December 31, 2013 or 2012. | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 34,383 | $ | 28,206 | $ | 84,474 | $ | 77,693 | |||||||||
Denominator: | |||||||||||||||||
Weighted average common shares-basic | 42,441 | 41,745 | 42,647 | 41,629 | |||||||||||||
Dilutive effect of employee equity incentive plans | 787 | 873 | 907 | 950 | |||||||||||||
Weighted average common shares-diluted | 43,228 | 42,618 | 43,554 | 42,579 | |||||||||||||
Basic earnings per common share | $ | 0.81 | $ | 0.68 | $ | 1.98 | $ | 1.87 | |||||||||
Diluted earnings per common share | $ | 0.8 | $ | 0.66 | $ | 1.94 | $ | 1.82 | |||||||||
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 268 | 1,210 | 173 | 1,125 | |||||||||||||
REVENUE_AND_MAJOR_CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
REVENUE AND MAJOR CUSTOMERS [Abstract] | ' | ||||||||||||||||
REVENUE AND MAJOR CUSTOMERS | ' | ||||||||||||||||
REVENUE AND MAJOR CUSTOMERS | |||||||||||||||||
The Company designs, manufactures, markets, and sells headsets for business and consumer applications, and other specialty products for the hearing impaired. With respect to headsets, it makes products for use in offices and contact centers, with mobile and cordless phones, and with computers and gaming consoles. Major product categories include “Office and Contact Center”, which includes corded and cordless communication headsets, audio processors, and telephone systems; “Mobile”, which includes Bluetooth and corded products for mobile phone applications; “Gaming and Computer Audio”, which includes personal computer ("PC") and gaming headsets; and “Clarity”, which includes specialty products marketed for hearing impaired individuals. | |||||||||||||||||
The following table presents net revenues by product group for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenues from unaffiliated customers: | |||||||||||||||||
Office and Contact Center | $ | 146,636 | $ | 139,449 | $ | 437,764 | $ | 406,601 | |||||||||
Mobile | 52,804 | 44,138 | 137,113 | 113,600 | |||||||||||||
Gaming and Computer Audio | 9,360 | 9,024 | 23,967 | 23,610 | |||||||||||||
Clarity | 3,939 | 4,791 | 10,693 | 14,236 | |||||||||||||
Total net revenues | $ | 212,739 | $ | 197,402 | $ | 609,537 | $ | 558,047 | |||||||||
For reporting purposes, revenue is attributed to each geographic region based on the location of the customer. Other than the U.S., no country accounted for 10% or more of the Company's net revenues for the three and nine months ended December 31, 2013 and 2012. The following table presents net revenues by geography: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | 31-Dec-13 | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenues from unaffiliated customers: | |||||||||||||||||
U.S. | $ | 113,042 | $ | 111,847 | $ | 350,155 | $ | 323,438 | |||||||||
Europe and Africa | 58,997 | 51,095 | 146,476 | 131,622 | |||||||||||||
Asia Pacific | 25,917 | 20,637 | 73,077 | 64,055 | |||||||||||||
Americas, excluding U.S. | 14,783 | 13,823 | 39,829 | 38,932 | |||||||||||||
Total international net revenues | 99,697 | 85,555 | 259,382 | 234,609 | |||||||||||||
Total net revenues | $ | 212,739 | $ | 197,402 | $ | 609,537 | $ | 558,047 | |||||||||
No customer accounted for more than 10% of net revenues for the three and nine months ended December 31, 2013. One customer, Ingram Micro, accounted for 10% of net revenues for the three months ended December 31, 2012. No customer accounted for 10% or more of net revenues for the nine months ended December 31, 2012. | |||||||||||||||||
Ingram Micro also accounted for 10.5% and 10.3% of net accounts receivable at December 31, 2013 and March 31, 2013, respectively. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On January 27, 2014, the Company's Board of Directors declared a cash dividend of $0.10 per share of the Company's common stock, payable on March 10, 2014 to stockholders of record at the close of business on February 20, 2014. |
CASH_CASH_EQUIVALENTS_AND_INVE1
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | ' | ||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | ' | ||||||||||||||||||||||||||||||||
The following table represents the Company’s cash, cash equivalents, and investments as of December 31, 2013 and March 31, 2013: | |||||||||||||||||||||||||||||||||
(in thousands) | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 225,310 | $ | — | $ | — | $ | 225,310 | $ | 118,881 | $ | — | $ | — | $ | 118,881 | |||||||||||||||||
Cash equivalents | 10,223 | 1 | — | 10,224 | 109,895 | — | — | 109,895 | |||||||||||||||||||||||||
Total cash and cash equivalents | $ | 235,533 | $ | 1 | $ | — | $ | 235,534 | $ | 228,776 | $ | — | $ | — | $ | 228,776 | |||||||||||||||||
Short-term investments (due in 1 year or less): | |||||||||||||||||||||||||||||||||
U.S. Treasury Bills and Government Agency Securities | $ | 19,227 | $ | 6 | $ | (1 | ) | $ | 19,232 | $ | 66,092 | $ | 18 | $ | (3 | ) | $ | 66,107 | |||||||||||||||
Commercial paper | 43,792 | 13 | — | 43,805 | 15,670 | 9 | — | 15,679 | |||||||||||||||||||||||||
Corporate bonds | 22,353 | 6 | (2 | ) | 22,357 | 34,766 | 31 | (2 | ) | 34,795 | |||||||||||||||||||||||
Certificates of deposit ("CDs") | 1,002 | 1 | — | 1,003 | — | — | — | — | |||||||||||||||||||||||||
Total short-term investments | $ | 86,374 | $ | 26 | $ | (3 | ) | $ | 86,397 | $ | 116,528 | $ | 58 | $ | (5 | ) | $ | 116,581 | |||||||||||||||
Long-term investments (due in 1 to 3 years): | |||||||||||||||||||||||||||||||||
U.S. Treasury Bills and Government Agency Securities | $ | 36,929 | $ | 23 | $ | (14 | ) | $ | 36,938 | $ | 55,317 | $ | 42 | $ | (1 | ) | $ | 55,358 | |||||||||||||||
Corporate bonds | 69,772 | 116 | (26 | ) | 69,862 | 23,878 | 23 | (3 | ) | 23,898 | |||||||||||||||||||||||
CDs | — | — | — | — | 1,002 | 3 | — | 1,005 | |||||||||||||||||||||||||
Total long-term investments | $ | 106,701 | $ | 139 | $ | (40 | ) | $ | 106,800 | $ | 80,197 | $ | 68 | $ | (4 | ) | $ | 80,261 | |||||||||||||||
Total cash, cash equivalents and investments | $ | 428,608 | $ | 166 | $ | (43 | ) | $ | 428,731 | $ | 425,501 | $ | 126 | $ | (9 | ) | $ | 425,618 | |||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value Hierarchy of Financial Assets and Liabilities | ' | ||||||||||||
The following tables present the Company’s cash and financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 and March 31, 2013. | |||||||||||||
Fair Values as of December 31, 2013: | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 225,310 | $ | — | $ | 225,310 | |||||||
Mutual funds | 1,227 | — | 1,227 | ||||||||||
Commercial paper | — | 8,997 | 8,997 | ||||||||||
Short-term investments: | |||||||||||||
Government Agency Securities | — | 19,232 | 19,232 | ||||||||||
Commercial paper | — | 43,805 | 43,805 | ||||||||||
Corporate bonds | — | 22,357 | 22,357 | ||||||||||
CDs | — | 1,003 | 1,003 | ||||||||||
Long-term investments: | |||||||||||||
Government Agency Securities | — | 36,938 | 36,938 | ||||||||||
Corporate bonds | — | 69,862 | 69,862 | ||||||||||
Other current assets: | |||||||||||||
Derivative assets | — | 967 | 967 | ||||||||||
Total assets measured at fair value | $ | 226,537 | $ | 203,161 | $ | 429,698 | |||||||
Accrued liabilities: | |||||||||||||
Derivative liabilities | $ | — | $ | 3,841 | $ | 3,841 | |||||||
Fair Values as of March 31, 2013: | |||||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 118,881 | $ | — | $ | 118,881 | |||||||
U.S. Treasury Bills | 104,995 | — | 104,995 | ||||||||||
Commercial paper | — | 4,900 | 4,900 | ||||||||||
Short-term investments: | |||||||||||||
U.S. Treasury Bills and Government Agency Securities | 7,243 | 58,864 | 66,107 | ||||||||||
Commercial paper | — | 15,679 | 15,679 | ||||||||||
Corporate bonds | — | 34,795 | 34,795 | ||||||||||
Long-term investments: | |||||||||||||
U.S. Treasury Bills and Government Agency Securities | 22,904 | 32,454 | 55,358 | ||||||||||
Corporate bonds | — | 23,898 | 23,898 | ||||||||||
CDs | — | 1,005 | 1,005 | ||||||||||
Other current assets: | |||||||||||||
Derivative assets | — | 1,665 | 1,665 | ||||||||||
Total assets measured at fair value | $ | 254,023 | $ | 173,260 | $ | 427,283 | |||||||
Accrued liabilities: | |||||||||||||
Derivative liabilities | $ | 3 | $ | 291 | $ | 294 | |||||||
DETAILS_OF_CERTAIN_BALANCE_SHE1
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Accounts receivable, net | ' | ||||||||
Accounts receivable, net: | |||||||||
December 31, | March 31, | ||||||||
(in thousands) | 2013 | 2013 | |||||||
Accounts receivable | $ | 159,317 | $ | 151,250 | |||||
Provisions for returns | (8,912 | ) | (8,957 | ) | |||||
Provisions for promotions, rebates, and other | (16,814 | ) | (13,675 | ) | |||||
Provisions for doubtful accounts and sales allowances | (212 | ) | (409 | ) | |||||
Accounts receivable, net | $ | 133,379 | $ | 128,209 | |||||
Inventory, net | ' | ||||||||
Inventory, net: | |||||||||
December 31, | March 31, | ||||||||
(in thousands) | 2013 | 2013 | |||||||
Raw materials | $ | 34,258 | $ | 28,743 | |||||
Work in process | 432 | 82 | |||||||
Finished goods | 31,879 | 38,610 | |||||||
Inventory, net | $ | 66,569 | $ | 67,435 | |||||
Accrued liabilities | ' | ||||||||
Accrued Liabilities: | |||||||||
December 31, | March 31, | ||||||||
(in thousands) | 2013 | 2013 | |||||||
Employee compensation and benefits | $ | 31,779 | $ | 29,796 | |||||
Warranty obligation | 7,963 | 13,410 | |||||||
Accrued advertising, sales, and marketing | 4,847 | 3,735 | |||||||
Accrued other | 22,026 | 19,478 | |||||||
Accrued liabilities | $ | 66,615 | $ | 66,419 | |||||
Changes in the warranty obligation | ' | ||||||||
Changes in the warranty obligation during the nine months ended December 31, 2013 were as follows: | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||
(in thousands) | December 31, 2013 | December 31, 2012 | |||||||
Warranty obligation at beginning of period | $ | 13,410 | $ | 13,346 | |||||
Correction of immaterial prior period error (2) | (5,042 | ) | — | ||||||
Warranty provision relating to products shipped | 6,851 | 11,856 | |||||||
Deductions for warranty claims processed | (7,256 | ) | (12,147 | ) | |||||
Warranty obligation at end of period | $ | 7,963 | $ | 13,055 | |||||
(2)Refer to Note 1, Basis of Presentation, for details about the prior period error corrected in the quarter ended December 31, 2013. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation Expense Included in Statements of Operations | ' | ||||||||||||||||
The following table summarizes the amount of stock-based compensation included in the condensed consolidated statements of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 686 | $ | 507 | $ | 1,859 | $ | 1,629 | |||||||||
Research, development and engineering | 1,688 | 1,336 | 4,708 | 3,715 | |||||||||||||
Selling, general and administrative | 3,669 | 2,848 | 10,429 | 8,829 | |||||||||||||
Stock-based compensation included in operating expenses | 5,357 | 4,184 | 15,137 | 12,544 | |||||||||||||
Total stock-based compensation | 6,043 | 4,691 | 16,996 | 14,173 | |||||||||||||
Income tax benefit | (1,788 | ) | (1,342 | ) | (5,063 | ) | (4,256 | ) | |||||||||
Total stock-based compensation, net of tax | $ | 4,255 | $ | 3,349 | $ | 11,933 | $ | 9,917 | |||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following is a summary of the Company’s stock option activity during the nine months ended December 31, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual Life | ||||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||
Outstanding at March 31, 2013 | 2,415 | $ | 27.96 | ||||||||||||||
Options granted | 297 | $ | 44.75 | ||||||||||||||
Options exercised | (702 | ) | $ | 24.27 | |||||||||||||
Options forfeited or expired | (13 | ) | $ | 33.28 | |||||||||||||
Outstanding at December 31, 2013 | 1,997 | $ | 31.71 | 4.2 | $ | 29,100 | |||||||||||
Vested and expected to vest at December 31, 2013 | 1,952 | $ | 31.52 | 4.1 | $ | 28,834 | |||||||||||
Exercisable at December 31, 2013 | 1,364 | $ | 28.4 | 3.4 | $ | 24,373 | |||||||||||
Summary of Restricted Stock Activity | ' | ||||||||||||||||
Restricted stock consists of awards of restricted stock and restricted stock units ("RSUs"). The following is a summary of the Company’s restricted stock activity during the nine months ended December 31, 2013: | |||||||||||||||||
Number of | Weighted Average Grant Date Fair Value | ||||||||||||||||
Shares | |||||||||||||||||
(in thousands) | |||||||||||||||||
Non-vested at March 31, 2013 | 1,025 | $ | 33.34 | ||||||||||||||
Restricted stock granted | 570 | $ | 46.09 | ||||||||||||||
Restricted stock vested | (373 | ) | $ | 33.09 | |||||||||||||
Restricted stock forfeited | (36 | ) | $ | 37.07 | |||||||||||||
Non-vested at December 31, 2013 | 1,186 | $ | 39.43 | ||||||||||||||
Valuation Assumptions | ' | ||||||||||||||||
At the date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using the following weighted average assumptions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
Employee Stock Options | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected volatility | 30.1 | % | 41.2 | % | 32.2 | % | 41.8 | % | |||||||||
Risk-free interest rate | 1.1 | % | 0.6 | % | 0.9 | % | 0.6 | % | |||||||||
Expected dividend yield | 0.9 | % | 1.2 | % | 0.9 | % | 1.2 | % | |||||||||
Expected life (in years) | 4.2 | 4.3 | 4.2 | 4.3 | |||||||||||||
Weighted-average grant date fair value | $ | 10.15 | $ | 10.1 | $ | 11.15 | $ | 10.31 | |||||||||
ESPP (1) | |||||||||||||||||
Expected volatility | 24.9 | % | 38.4 | % | |||||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | |||||||||||||
Expected dividend yield | 0.9 | % | 1.1 | % | |||||||||||||
Expected life (in years) | 0.5 | 0.5 | |||||||||||||||
Weighted-average grant date fair value | $ | 9.58 | $ | 8.95 | |||||||||||||
(1) No purchase rights were granted under the ESPP during the three months ended December 31, 2013 or 2012. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||
Schedule of Accumulated Other Comprehensive Income | ' | |||||||||
The components of accumulated other comprehensive income ("AOCI"), net of immaterial tax effects, are as follows: | ||||||||||
(in thousands) | December 31, 2013 | 31-Mar-13 | ||||||||
Accumulated unrealized gain (loss) on cash flow hedges (1) | $ | (2,335 | ) | $ | 1,349 | |||||
Accumulated foreign currency translation adjustments | 4,017 | 4,131 | ||||||||
Accumulated unrealized gain on investments | 91 | 87 | ||||||||
Accumulated other comprehensive income | $ | 1,773 | $ | 5,567 | ||||||
(1)Refer to Note 12, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of December 31, 2013 and March 31, 2013. |
FOREIGN_CURRENCY_DERIVATIVES_T
FOREIGN CURRENCY DERIVATIVES (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Notional Value of Outstanding Foreign Exchange Currency Contracts | ' | ||||||||||||||||
The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at December 31, 2013: | |||||||||||||||||
(in thousands) | Local Currency | USD Equivalent | Position | Maturity | |||||||||||||
EUR | € | 24,000 | $ | 33,045 | Sell EUR | 1 month | |||||||||||
GBP | £ | 1,300 | $ | 2,144 | Sell GBP | 1 month | |||||||||||
AUD | A$ | 3,350 | $ | 2,971 | Sell AUD | 1 month | |||||||||||
Effect of Non-Designated Derivative Contracts Recognized in Interest and Other Income, Net | ' | ||||||||||||||||
The effect of non-designated derivative contracts on results of operations recognized in interest and other income, net in the condensed consolidated statements of operations was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Gain (loss) on foreign exchange contracts | $ | (372 | ) | $ | (618 | ) | $ | (1,564 | ) | $ | 202 | ||||||
Notional Value of Outstanding Cross-Currency Swaps | ' | ||||||||||||||||
The following table summarizes the notional value of the Company’s outstanding MXN cross-currency swaps and approximate USD Equivalent at December 31, 2013: | |||||||||||||||||
(in thousands) | Local Currency | USD Equivalent | Position | Maturity | |||||||||||||
MXN | 278,350 | $ | 21,060 | Buy MXN | Monthly over | 12 months | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on the accumulated other comprehensive income and condensed consolidated statements of income for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Gain (loss) included in AOCI as of beginning of period | $ | (2,373 | ) | $ | 717 | $ | 1,371 | $ | 1,937 | ||||||||
Amount of gain (loss) recognized in OCI (effective portion) | (222 | ) | (961 | ) | (3,869 | ) | 587 | ||||||||||
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | (116 | ) | 266 | (262 | ) | 3,329 | |||||||||||
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (64 | ) | 404 | 179 | 109 | ||||||||||||
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | (180 | ) | 670 | (83 | ) | 3,438 | |||||||||||
Loss included in AOCI as of end of period | $ | (2,415 | ) | $ | (914 | ) | $ | (2,415 | ) | $ | (914 | ) |
COMPUTATION_OF_EARNINGS_PER_CO1
COMPUTATION OF EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Earnings per Common Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 34,383 | $ | 28,206 | $ | 84,474 | $ | 77,693 | |||||||||
Denominator: | |||||||||||||||||
Weighted average common shares-basic | 42,441 | 41,745 | 42,647 | 41,629 | |||||||||||||
Dilutive effect of employee equity incentive plans | 787 | 873 | 907 | 950 | |||||||||||||
Weighted average common shares-diluted | 43,228 | 42,618 | 43,554 | 42,579 | |||||||||||||
Basic earnings per common share | $ | 0.81 | $ | 0.68 | $ | 1.98 | $ | 1.87 | |||||||||
Diluted earnings per common share | $ | 0.8 | $ | 0.66 | $ | 1.94 | $ | 1.82 | |||||||||
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 268 | 1,210 | 173 | 1,125 | |||||||||||||
REVENUE_AND_MAJOR_CUSTOMERS_Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
REVENUE AND MAJOR CUSTOMERS [Abstract] | ' | ||||||||||||||||
Net Revenues by Product Group | ' | ||||||||||||||||
The following table presents net revenues by product group for the three and nine months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenues from unaffiliated customers: | |||||||||||||||||
Office and Contact Center | $ | 146,636 | $ | 139,449 | $ | 437,764 | $ | 406,601 | |||||||||
Mobile | 52,804 | 44,138 | 137,113 | 113,600 | |||||||||||||
Gaming and Computer Audio | 9,360 | 9,024 | 23,967 | 23,610 | |||||||||||||
Clarity | 3,939 | 4,791 | 10,693 | 14,236 | |||||||||||||
Total net revenues | $ | 212,739 | $ | 197,402 | $ | 609,537 | $ | 558,047 | |||||||||
Net Revenues by Geography | ' | ||||||||||||||||
The following table presents net revenues by geography: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | 31-Dec-13 | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenues from unaffiliated customers: | |||||||||||||||||
U.S. | $ | 113,042 | $ | 111,847 | $ | 350,155 | $ | 323,438 | |||||||||
Europe and Africa | 58,997 | 51,095 | 146,476 | 131,622 | |||||||||||||
Asia Pacific | 25,917 | 20,637 | 73,077 | 64,055 | |||||||||||||
Americas, excluding U.S. | 14,783 | 13,823 | 39,829 | 38,932 | |||||||||||||
Total international net revenues | 99,697 | 85,555 | 259,382 | 234,609 | |||||||||||||
Total net revenues | $ | 212,739 | $ | 197,402 | $ | 609,537 | $ | 558,047 | |||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Number of weeks in fiscal year | ' | ' | 'P52W | ' | 'P52W |
Quarter to date number of weeks in fiscal quarter | 'P13W | 'P13W | ' | ' | ' |
Year to date number of weeks in fiscal quarter | ' | ' | 'P39W | 'P39W | ' |
Cost of revenues | $102,412 | $95,238 | $293,964 | $260,959 | ' |
Net income | 34,383 | 28,206 | 84,474 | 77,693 | ' |
Error Related to Estimated Warranty Obligation and Return Material Authorization [Member] | ' | ' | ' | ' | ' |
Net income | 2,100 | ' | ' | ' | ' |
Cost of revenues [Member] | Error Related to Estimated Warranty Obligation and Return Material Authorization [Member] | ' | ' | ' | ' | ' |
Cost of revenues | $2,400 | ' | ' | ' | ' |
CASH_CASH_EQUIVALENTS_AND_INVE2
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Cash and Cash Equivalents, Fair Value | $235,534 | $228,776 | $196,656 | $209,335 |
Cash, Cash Equivalents Before Unrealized Gains And Losses, and Amortized Cost Basis of Available-For-Sale Securities | 428,608 | 425,501 | ' | ' |
Cash Equivalents and Available-For-Sale Securities, Gross Unrealized Gains | 166 | 126 | ' | ' |
Cash Equivalents and Available-For-Sale Securities, Gross Unrealized Losses | -43 | -9 | ' | ' |
Cash and Fair Value of Cash Equivalents and Available-For-Sale Securities | 428,731 | 425,618 | ' | ' |
U.S. Treasury Bills and Government Agency Securities [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, gross unrealized gains | 23 | 42 | ' | ' |
Available-for-sale securities, gross unrealized losses | -14 | -1 | ' | ' |
Available-for-sale securities, Long-term investments (due in 1 to 3 years), Amortized Cost | 36,929 | 55,317 | ' | ' |
Available-for-sale securities, Long term investments (due in 1 to 3 years), Fair Value | 36,938 | 55,358 | ' | ' |
Corporate Bonds [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, gross unrealized gains | 116 | 23 | ' | ' |
Available-for-sale securities, gross unrealized losses | -26 | -3 | ' | ' |
Available-for-sale securities, Long-term investments (due in 1 to 3 years), Amortized Cost | 69,772 | 23,878 | ' | ' |
Available-for-sale securities, Long term investments (due in 1 to 3 years), Fair Value | 69,862 | 23,898 | ' | ' |
Certificates of Deposit [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, gross unrealized gains | 0 | 3 | ' | ' |
Available-for-sale securities, gross unrealized losses | 0 | 0 | ' | ' |
Available-for-sale securities, Long-term investments (due in 1 to 3 years), Amortized Cost | 0 | 1,002 | ' | ' |
Available-for-sale securities, Long term investments (due in 1 to 3 years), Fair Value | 0 | 1,005 | ' | ' |
U.S. Treasury Bills and Government Agency Securities [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Amortized Cost | 19,227 | 66,092 | ' | ' |
Available-for-sale securities, gross unrealized gains | 6 | 18 | ' | ' |
Available-for-sale securities, gross unrealized losses | -1 | -3 | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Fair Value | 19,232 | 66,107 | ' | ' |
Commercial Paper [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Amortized Cost | 43,792 | 15,670 | ' | ' |
Available-for-sale securities, gross unrealized gains | 13 | 9 | ' | ' |
Available-for-sale securities, gross unrealized losses | 0 | 0 | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Fair Value | 43,805 | 15,679 | ' | ' |
Corporate Bonds [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Amortized Cost | 22,353 | 34,766 | ' | ' |
Available-for-sale securities, gross unrealized gains | 6 | 31 | ' | ' |
Available-for-sale securities, gross unrealized losses | -2 | -2 | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Fair Value | 22,357 | 34,795 | ' | ' |
Certificates of Deposit [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Amortized Cost | 1,002 | 0 | ' | ' |
Available-for-sale securities, gross unrealized gains | 1 | 0 | ' | ' |
Available-for-sale securities, gross unrealized losses | 0 | 0 | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Fair Value | 1,003 | 0 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Cash | 225,310 | 118,881 | ' | ' |
Cash Equivalents [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Cash Equivalents Before Unrealized Gains And Losses | 10,223 | 109,895 | ' | ' |
Cash Equivalents, Gross Unrealized Gains | 1 | 0 | ' | ' |
Cash Equivalents, Gross Unrealized Losses | 0 | 0 | ' | ' |
Cash equivalents, fair value | 10,224 | 109,895 | ' | ' |
Cash and cash equivalents [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Cash and Cash Equivalents Before Unrealized Gains And Losses | 235,533 | 228,776 | ' | ' |
Cash Equivalents, Gross Unrealized Gains | 1 | 0 | ' | ' |
Cash Equivalents, Gross Unrealized Losses | 0 | 0 | ' | ' |
Cash and Cash Equivalents, Fair Value | 235,534 | 228,776 | ' | ' |
Short-term Investments [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Amortized Cost | 86,374 | 116,528 | ' | ' |
Available-for-sale securities, gross unrealized gains | 26 | 58 | ' | ' |
Available-for-sale securities, gross unrealized losses | -3 | -5 | ' | ' |
Available-for-sale securities, Short-term investments (due in 1 year or less), Fair Value | 86,397 | 116,581 | ' | ' |
Long-term investments [Member] | ' | ' | ' | ' |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ' | ' | ' | ' |
Available-for-sale securities, gross unrealized gains | 139 | 68 | ' | ' |
Available-for-sale securities, gross unrealized losses | -40 | -4 | ' | ' |
Available-for-sale securities, Long-term investments (due in 1 to 3 years), Amortized Cost | 106,701 | 80,197 | ' | ' |
Available-for-sale securities, Long term investments (due in 1 to 3 years), Fair Value | $106,800 | $80,261 | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Total assets measured at fair value | $226,537 | $254,023 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Total assets measured at fair value | 203,161 | 173,260 |
Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Total assets measured at fair value | 429,698 | 427,283 |
Cash and Cash Equivalents [Member] | Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 225,310 | 118,881 |
Cash and Cash Equivalents [Member] | Cash [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 0 | 0 |
Cash and Cash Equivalents [Member] | Cash [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 225,310 | 118,881 |
Cash and Cash Equivalents [Member] | Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 1,227 | ' |
Cash and Cash Equivalents [Member] | Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 0 | ' |
Cash and Cash Equivalents [Member] | Mutual Funds [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 1,227 | ' |
Cash and Cash Equivalents [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 0 | 0 |
Cash and Cash Equivalents [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 8,997 | 4,900 |
Cash and Cash Equivalents [Member] | Commercial Paper [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | 8,997 | 4,900 |
Cash and Cash Equivalents [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | ' | 104,995 |
Cash and Cash Equivalents [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | ' | 0 |
Cash and Cash Equivalents [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents, fair value | ' | 104,995 |
Short-term Investments [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 0 | 7,243 |
Short-term Investments [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 19,232 | 58,864 |
Short-term Investments [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 19,232 | 66,107 |
Short-term Investments [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Short-term Investments [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 43,805 | 15,679 |
Short-term Investments [Member] | Commercial Paper [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 43,805 | 15,679 |
Short-term Investments [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Short-term Investments [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 22,357 | 34,795 |
Short-term Investments [Member] | Corporate Bonds [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 22,357 | 34,795 |
Short-term Investments [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 0 | ' |
Short-term Investments [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 1,003 | ' |
Short-term Investments [Member] | Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 1,003 | ' |
Long Term Investments [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 0 | 22,904 |
Long Term Investments [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 36,938 | 32,454 |
Long Term Investments [Member] | U.S. Treasury Bills and Government Agency Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 36,938 | 55,358 |
Long Term Investments [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Long Term Investments [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 69,862 | 23,898 |
Long Term Investments [Member] | Corporate Bonds [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | 69,862 | 23,898 |
Long Term Investments [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | ' | 0 |
Long Term Investments [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | ' | 1,005 |
Long Term Investments [Member] | Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Available-for-sale securities, fair value | ' | 1,005 |
Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Derivative assets | 0 | 0 |
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Derivative assets | 967 | 1,665 |
Other Current Assets [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Derivative assets | 967 | 1,665 |
Accrued Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Derivative liabilities | 0 | 3 |
Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Derivative liabilities | 3,841 | 291 |
Accrued Liabilities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Derivative liabilities | $3,841 | $294 |
DETAILS_OF_CERTAIN_BALANCE_SHE2
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Details) (USD $) | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | ||
Accounts receivable, net [Line Items] | ' | ' | ' | ||
Accounts receivable | $159,317 | ' | $151,250 | ||
Accounts receivable, net | 133,379 | ' | 128,209 | ||
Inventory, net [Abstract] | ' | ' | ' | ||
Raw materials | 34,258 | ' | 28,743 | ||
Work in process | 432 | ' | 82 | ||
Finished goods | 31,879 | ' | 38,610 | ||
Inventory, net | 66,569 | ' | 67,435 | ||
Accrued Liabilities [Abstract] | ' | ' | ' | ||
Employee compensation and benefits | 31,779 | ' | 29,796 | ||
Warranty obligation | 7,963 | ' | 13,410 | ||
Accrued advertising, sales, and marketing | 4,847 | ' | 3,735 | ||
Accrued other | 22,026 | ' | 19,478 | ||
Accrued liabilities | 66,615 | ' | 66,419 | ||
Changes in the Warranty Obligation [Roll Forward] | ' | ' | ' | ||
Warranty obligation at beginning of period | 13,410 | 13,346 | ' | ||
Correction of immaterial prior period error (2) | -5,042 | [1] | 0 | [1] | ' |
Warranty provision relating to products shipped | 6,851 | 11,856 | ' | ||
Deductions for warranty claims processed | -7,256 | -12,147 | ' | ||
Warranty obligation at end of period | 7,963 | 13,055 | ' | ||
Provisions for returns [Member] | ' | ' | ' | ||
Accounts receivable, net [Line Items] | ' | ' | ' | ||
Accounts Receivable Reserves | -8,912 | ' | -8,957 | ||
Provisions for promotions, rebates, and other [Member] | ' | ' | ' | ||
Accounts receivable, net [Line Items] | ' | ' | ' | ||
Accounts Receivable Reserves | -16,814 | ' | -13,675 | ||
Provisions for doubtful accounts and sales allowances [Member] | ' | ' | ' | ||
Accounts receivable, net [Line Items] | ' | ' | ' | ||
Accounts Receivable Reserves | ($212) | ' | ($409) | ||
[1] | Refer to Note 1, Basis of Presentation, for details about the prior period error corrected in the quarter ended December 31, 2013. |
GOODWILL_AND_PURCHASED_INTANGI1
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill | $15.50 | $15.50 |
Accumulated impairment loss | $54.60 | $54.60 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Outstanding off balance sheet third-party manufacturing, component purchase, and other general and administrative commitments | $215.70 |
CREDIT_AGREEMENT_Details
CREDIT AGREEMENT (Details) (USD $) | 1 Months Ended | 9 Months Ended | |||
31-May-11 | Dec. 31, 2013 | Jan. 27, 2014 | 3-May-13 | Mar. 31, 2013 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Initiation date of credit agreement | 9-May-11 | ' | ' | ' | ' |
Latest amendment date of Credit Agreement | ' | ' | 'January 27, 2014 | ' | ' |
Credit facility expiration date | ' | 9-May-17 | ' | ' | ' |
Unsecured revolving line of credit | ' | ' | ' | $100,000,000 | ' |
Amount of potential increase for commitment | ' | ' | ' | 100,000,000 | ' |
Total facility size | ' | ' | ' | 200,000,000 | ' |
Outstanding borrowings under line of credit | ' | 0 | ' | ' | 0 |
One month term | ' | '1 month | ' | ' | ' |
Three month term | ' | '3 months | ' | ' | ' |
Six month term | ' | '6 months | ' | ' | ' |
Commitment fee percentage | ' | 0.20% | ' | ' | ' |
Minimum required liquid funds | ' | $200,000,000 | ' | ' | ' |
Line Of Credit Facility Interest Rate Spread Below The Banks Announced Prime Rate [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Spread for interest rate | ' | 1.50% | ' | ' | ' |
Line Of Credit Facility Interest Rate Spread Above A Daily One Month LIBOR Rate [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Spread for interest rate | ' | 1.10% | ' | ' | ' |
Line Of Credit Facility Interest Rate Spread Above Adjusted LIBOR Rate For A Term Of One Three Or Six Months [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Spread for interest rate | ' | 1.10% | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | $4,255 | $3,349 | $11,933 | $9,917 |
Cost of revenues [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 686 | 507 | 1,859 | 1,629 |
Research, development, and engineering [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 1,688 | 1,336 | 4,708 | 3,715 |
Selling, general, and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 3,669 | 2,848 | 10,429 | 8,829 |
Stock-based compensation expense included in operating expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 5,357 | 4,184 | 15,137 | 12,544 |
Total stock-based compensation [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | 6,043 | 4,691 | 16,996 | 14,173 |
Income tax benefit [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation | ($1,788) | ($1,342) | ($5,063) | ($4,256) |
STOCKBASED_COMPENSATION_Stock_
STOCK-BASED COMPENSATION Stock Option Activity (Details) (Stock Options [Member], USD $) | 9 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding at March 31, 2013 | 2,415 | ' |
Options granted | 297 | ' |
Options exercised | -702 | ' |
Options forfeited or expired | -13 | ' |
Options outstanding at December 31, 2013 | 1,997 | ' |
Weighted average exercise price of options outstanding, March 31, 2013 | $27.96 | ' |
Weighted average exercise price of options granted | $44.75 | ' |
Weighted average exercise price of options exercised | $24.27 | ' |
Weighted average exercise price of options forfeited or expired | $33.28 | ' |
Weighted average exercise price of options outstanding, December 31, 2013 | $31.71 | ' |
Weighted average remaining contractual life of options outstanding at December 31, 2013 | '4 years 73 days | ' |
Aggregate intrinsic value of options outstanding at December 31, 2013 | $29,100,000 | ' |
Vested and expected to vest at December 31, 2013 | 1,952 | ' |
Weighted average exercise price of options vested and expected to vest at December 31, 2013 | $31.52 | ' |
Weighted average remaining contractual life of options vested and expected to vest at December 31, 2013 | '4 years 37 days | ' |
Aggregate intrinsic value of options vested and expected to vest at December 31, 2013 | 28,834,000 | ' |
Exercisable at December 31, 2013 | 1,364 | ' |
Weighted average exercise price of options exercisable at December 31, 2013 | $28.40 | ' |
Weighted average remaining contractual life of options exercisable at December 31, 2013 | '3 years 146 days | ' |
Aggregate intrinsic value of options exercisable at December 31, 2013 | 24,373,000 | ' |
Total intrinsic value of options exercised | 15,100,000 | 5,100,000 |
Total cash received as a result of stock option exercises, net of taxes | 17,000,000 | ' |
Total unrecognized compensation cost related to unvested stock options | $5,800,000 | ' |
Weighted average period of recognition for unrecognized compensation cost related to unvested stock options | '2 years 0 days | ' |
STOCKBASED_COMPENSATION_Restri
STOCK-BASED COMPENSATION Restricted Stock Activity (Details) (Restricted Stock [Member], USD $) | 9 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Non-vested Restricted Stock at March 31, 2013 | 1,025 | ' |
Restricted stock granted | 570 | ' |
Restricted stock vested | -373 | ' |
Restricted stock forfeited | -36 | ' |
Non-vested Restricted Stock at December 31, 2013 | 1,186 | ' |
Weighted Average Grant Date Fair Value of Non-Vested Restricted Stock, March 31, 2013 | $33.34 | ' |
Weighted average grant date fair value of restricted stock granted | $46.09 | $32.13 |
Weighted average grant date fair value of restricted stock vested | $33.09 | ' |
Weighted average grant date fair value of restricted stock forfeited | $37.07 | ' |
Weighted Average Grant Date Fair Value of Non-Vested Restricted Stock, December 31, 2013 | $39.43 | ' |
Restricted Stock Awards Vested in Period, Total Fair Value | $12.30 | $6.50 |
Non-vested restricted stock awards, total unrecognized compensation cost | $31.80 | ' |
Weighted average number of years over which compensation cost related to non-vested restricted stock awards will be recognized | '2 years 73 days | ' |
STOCKBASED_COMPENSATION_Valuat
STOCK-BASED COMPENSATION Valuation Assumptions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Stock Options [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Expected volatility | 30.10% | 41.20% | 32.20% | 41.80% | ||
Risk-free interest rate | 1.10% | 0.60% | 0.90% | 0.60% | ||
Expected dividend yield | 0.90% | 1.20% | 0.90% | 1.20% | ||
Expected life (in years) | '4 years 73 days | '4 years 110 days | '4 years 73 days | '4 years 110 days | ||
Weighted-average grant date fair value | $10.15 | $10.10 | $11.15 | $10.31 | ||
Employee Stock [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Expected volatility | ' | ' | 24.90% | [1] | 38.40% | [1] |
Risk-free interest rate | ' | ' | 0.10% | [1] | 0.10% | [1] |
Expected dividend yield | ' | ' | 0.90% | [1] | 1.10% | [1] |
Expected life (in years) | ' | ' | '6 months | [1] | '6 months | [1] |
Weighted-average grant date fair value | ' | ' | $9.58 | [1] | $8.95 | [1] |
[1] | No purchase rights were granted under the ESPP during the three months ended December 31, 2013 or 2012. |
COMMON_STOCK_REPURCHASES_Detai
COMMON STOCK REPURCHASES (Details) (USD $) | 9 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ' | ' |
Remaining shares authorized for repurchase under program | 600,000 | ' |
Shares repurchased | 1,281,907 | 743,818 |
Total cost of shares repurchased | $56,800,000 | $23,600,000 |
Average cost per share of shares repurchased | $44.27 | $31.76 |
Value of shares withheld in satisfaction of employee tax withholding obligations | $6,014,000 | $2,848,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||
Accumulated unrealized gain (loss) on cash flow hedges (1) | ($2,335) | [1] | $1,349 | [1] |
Accumulated foreign currency translation adjustments | 4,017 | 4,131 | ||
Accumulated unrealized gain on investments | 91 | 87 | ||
Accumulated other comprehensive income | $1,773 | $5,567 | ||
[1] | Refer to Note 12, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of DecemberB 31, 2013 and MarchB 31, 2013. |
FOREIGN_CURRENCY_DERIVATIVES_D
FOREIGN CURRENCY DERIVATIVES (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 |
USD ($) | Foreign exchange option, EURO [Member] | Foreign exchange option, EURO [Member] | Foreign exchange option, GBP [Member] | Foreign exchange option, GBP [Member] | Foreign Exchange Forward, EURO [Member] | Foreign Exchange Forward, EURO [Member] | Foreign Exchange Forward, GBP [Member] | Foreign Exchange Forward, GBP [Member] | Foreign Exchange Forward, AUD [Member] | Foreign Exchange Forward, AUD [Member] | Foreign currency swap contract [Member] | Foreign currency swap contract [Member] | Foreign currency swap contract [Member] | |
EUR (€) | EUR (€) | GBP (£) | GBP (£) | USD ($) | EUR (€) | USD ($) | GBP (£) | USD ($) | AUD | USD ($) | MXN | MXN | ||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of contracts | ' | € 53,400,000 | € 50,200,000 | £ 22,200,000 | £ 19,900,000 | $33,045,000 | € 24,000,000 | $2,144,000 | £ 1,300,000 | $2,971,000 | 3,350,000 | $21,060,000 | 278,350,000 | 325,400,000 |
Position | ' | ' | ' | ' | ' | 'Sell EUR | 'Sell EUR | 'Sell GBP | 'Sell GBP | 'Sell AUD | 'Sell AUD | ' | ' | ' |
Maturity | ' | ' | ' | ' | ' | '1 month | '1 month | '1 month | '1 month | '1 month | '1 month | '12 months | '12 months | ' |
Loss, net of tax, in accumulated other comprehensive income | ($2,400,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Buy MXN | 'Buy MXN | ' |
FOREIGN_CURRENCY_DERIVATIVES_D1
FOREIGN CURRENCY DERIVATIVES (Details 1) (Not Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Gain (loss) on foreign exchange contracts | ($372) | ($618) | ($1,564) | $202 |
FOREIGN_CURRENCY_DERIVATIVES_F
FOREIGN CURRENCY DERIVATIVES FOREIGN CURRENCY DERIVATIVES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Gain (loss) included in AOCI as of beginning of period | ($2,373) | $717 | $1,371 | $1,937 |
Amount of gain (loss) recognized in OCI (effective portion) | -222 | -961 | -3,869 | 587 |
Net revenues | 212,739 | 197,402 | 609,537 | 558,047 |
Cost of revenues | -102,412 | -95,238 | -293,964 | -260,959 |
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | -180 | 670 | -83 | 3,438 |
Loss included in AOCI as of end of period | -2,415 | -914 | -2,415 | -914 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Net revenues | -116 | 266 | -262 | 3,329 |
Cost of revenues | ($64) | $404 | $179 | $109 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate | 9.60% | 18.90% | 19.30% | 23.60% | ' |
Unrecognized tax benefits | $12,700,000 | ' | $12,700,000 | ' | $11,100,000 |
Accrued interest related to unrecognized tax benefits | 1,800,000 | ' | 1,800,000 | ' | 2,000,000 |
Accrued penalties | $0 | ' | $0 | ' | $0 |
COMPUTATION_OF_EARNINGS_PER_CO2
COMPUTATION OF EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $34,383 | $28,206 | $84,474 | $77,693 |
Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' | ' |
Weighted average common shares-basic | 42,441 | 41,745 | 42,647 | 41,629 |
Dilutive effect of employee equity incentive plans | 787 | 873 | 907 | 950 |
Weighted average common shares-diluted | 43,228 | 42,618 | 43,554 | 42,579 |
Basic earnings per common share | $0.81 | $0.68 | $1.98 | $1.87 |
Diluted earnings per common share | $0.80 | $0.66 | $1.94 | $1.82 |
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 268 | 1,210 | 173 | 1,125 |
REVENUE_AND_MAJOR_CUSTOMERS_De
REVENUE AND MAJOR CUSTOMERS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Customer | Customer | Customer | Customer | Customer | |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Total net revenues | $212,739 | $197,402 | $609,537 | $558,047 | ' |
Number of major customers, ten percent or greater, net revenues | 0 | 1 | 0 | 0 | ' |
Number of major customers, ten percent or greater, net accounts receivable | 1 | ' | 1 | ' | 1 |
Concentration, accounts receivable | 10.50% | ' | 10.50% | ' | 10.30% |
Net revenues [Member] | Customer Concentration Risk [Member] | Ingram Micro [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Concentration, net revenues | ' | 10.00% | ' | ' | ' |
US [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 113,042 | 111,847 | 350,155 | 323,438 | ' |
Europe and Africa [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 58,997 | 51,095 | 146,476 | 131,622 | ' |
Asia Pacific [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 25,917 | 20,637 | 73,077 | 64,055 | ' |
Americas, excluding U.S. [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 14,783 | 13,823 | 39,829 | 38,932 | ' |
Total international net revenues | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 99,697 | 85,555 | 259,382 | 234,609 | ' |
Office and Contact Center [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 146,636 | 139,449 | 437,764 | 406,601 | ' |
Mobile [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 52,804 | 44,138 | 137,113 | 113,600 | ' |
Gaming and Computer Audio [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | 9,360 | 9,024 | 23,967 | 23,610 | ' |
Clarity [Member] | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' |
Net revenues | $3,939 | $4,791 | $10,693 | $14,236 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Jan. 27, 2014 | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Dividends declared date | 27-Jan-14 |
Cash dividend payable per share | $0.10 |
Dividend payable date | 10-Mar-14 |
Date of stockholders on record for dividends declared | 20-Feb-14 |