DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION Document - shares | 3 Months Ended | |
Jun. 30, 2015 | Jul. 25, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PLANTRONICS INC /CA/ | |
Entity Central Index Key | 914,025 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 35,237,239 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 475,379 | $ 276,850 |
Short-term investments | 114,615 | 97,859 |
Accounts receivable, net | 127,160 | 136,581 |
Inventory, net | 55,918 | 56,676 |
Deferred tax assets | 6,376 | 6,564 |
Other current assets | 25,866 | 28,124 |
Total current assets | 805,314 | 602,654 |
Long-term investments | 92,753 | 107,590 |
Property, plant, and equipment, net | 139,074 | 139,413 |
Goodwill and purchased intangibles, net | 16,015 | 16,077 |
Other assets | 6,530 | 10,308 |
Total assets | 1,059,686 | 876,042 |
Current liabilities: | ||
Accounts payable | 38,398 | 32,781 |
Accrued liabilities | 55,485 | 62,041 |
Total current liabilities | 93,883 | 94,822 |
Long term debt, net of issuance costs | 488,524 | 0 |
Long-term income taxes payable | 11,999 | 12,984 |
Revolving line of credit | 0 | 34,500 |
Other long-term liabilities | 8,832 | 6,339 |
Total liabilities | $ 603,238 | $ 148,645 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock | $ 790 | $ 783 |
Additional paid-in capital | 731,406 | 717,848 |
Accumulated other comprehensive income | 4,555 | 10,120 |
Retained earnings | 225,360 | 209,960 |
Total stockholders' equity before treasury stock | 962,111 | 938,711 |
Less: Treasury stock, at cost | (505,663) | (211,314) |
Total stockholders' equity | 456,448 | 727,397 |
Total liabilities and stockholders' equity | $ 1,059,686 | $ 876,042 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||
Net revenues | $ 206,358 | $ 216,662 |
Cost of revenues | 99,000 | 101,952 |
Gross profit | 107,358 | 114,710 |
Operating expenses: | ||
Research, development, and engineering | 23,194 | 22,520 |
Selling, general, and administrative | 55,678 | 56,429 |
Gain from litigation settlements | (876) | (2,000) |
Total operating expenses | 77,996 | 76,949 |
Operating income | 29,362 | 37,761 |
Interest expense | (2,741) | (8) |
Other non-operating income and (expense), net | (285) | 1,028 |
Income before income taxes | 26,336 | 38,781 |
Income tax expense | 5,108 | 10,109 |
Net income | $ 21,228 | $ 28,672 |
Earnings per common share: | ||
Basic | $ 0.56 | $ 0.69 |
Diluted | $ 0.55 | $ 0.68 |
Shares used in computing basic earnings per common share | 38,002 | 41,619 |
Shares used in computing diluted earnings per common share | 38,943 | 42,466 |
Cash dividends declared per common share | $ 0.15 | $ 0.15 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 21,228 | $ 28,672 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (12) | 63 |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized cash flow hedge gains (losses) arising during the period | (2,838) | 73 |
Net (gains) losses reclassified into income for revenue hedges | (3,538) | 870 |
Net (gains) losses reclassified into income for cost of revenue hedges | 773 | (108) |
Net unrealized gains (losses) on cash flow hedges | (5,603) | 835 |
Unrealized holding gains (losses) during the period | (82) | 77 |
Aggregate income tax benefit (expense) of the above items | 132 | (36) |
Other comprehensive income (loss) | (5,565) | 939 |
Comprehensive income | $ 15,663 | $ 29,611 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 21,228 | $ 28,672 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,986 | 4,624 |
Amortization of debt issuance costs | 121 | 0 |
Stock-based compensation | 8,050 | 6,305 |
Excess tax benefit from stock-based compensation | (2,391) | (992) |
Deferred income taxes | 4,146 | 2,715 |
Provision for excess and obsolete inventories | 402 | 379 |
Other operating activities | 4,537 | 581 |
Changes in assets and liabilities, net of effect of acquisition: | ||
Accounts receivable, net | 8,579 | (12,631) |
Inventory, net | 358 | (3,983) |
Current and other assets | (2,869) | (970) |
Accounts payable | 4,958 | 5,995 |
Accrued liabilities | (6,212) | (4,520) |
Income taxes | (2,419) | 3,363 |
Cash provided by operating activities | 43,474 | 29,538 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales of investments | 16,375 | 5,014 |
Proceeds from maturities of investments | 25,425 | 50,900 |
Purchase of investments | (43,834) | (54,867) |
Capital expenditures | (3,966) | (7,312) |
Cash used for investing activities | (6,000) | (6,265) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of common stock | (284,444) | (12,438) |
Employees' tax withheld and paid for restricted stock and restricted stock units | (9,903) | (5,787) |
Proceeds from issuances under stock-based compensation plans | 3,077 | 2,832 |
Proceeds from revolving line of credit | 155,749 | 0 |
Repayments of revolving line of credit | (190,249) | 0 |
Proceeds from bonds issuance, net of issuance costs | 489,670 | 0 |
Payment of cash dividends | (5,828) | (6,389) |
Excess tax benefit from stock-based compensation | 2,391 | 992 |
Cash provided by (used for) financing activities | 160,463 | (20,790) |
Effect of exchange rate changes on cash and cash equivalents | 592 | 63 |
Net increase in cash and cash equivalents | 198,529 | 2,546 |
Cash and cash equivalents at beginning of period | 276,850 | 232,704 |
Cash and cash equivalents at end of period | $ 475,379 | $ 235,250 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION In the opinion of management, the accompanying unaudited condensed consolidated financial statements ("financial statements") of Plantronics, Inc. ("Plantronics" or "the Company") have been prepared on a basis consistent with the Company's March 31, 2015 audited consolidated financial statements and include all adjustments, consisting of normal recurring adjustments, necessary to fairly state the information set forth herein. Certain information and footnote disclosures normally included in financial statements prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial information and 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. 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, 2015 , which was filed with the SEC on May 15, 2015 . The results of operations for the interim period ended June 30, 2015 are not necessarily 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 April 2, 2016 and consists of 53 weeks. The Company's prior fiscal year ended on March 28, 2015 and consisted of 52 weeks. The Company’s results of operations for the three months ended June 27, 2015 and June 28, 2014 both contain 13 weeks. 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. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016. Reporting entities may choose to early adopt the standard. The Company is required to adopt the standard in the first quarter of its fiscal year ending March 31, 2018. The adoption is not expected to have a material impact on the Company's results of operations, financial position, or cash flows. In May 2014, the FASB issued additional guidance regarding revenue from contracts with customers. While the standard supersedes existing revenue recognition guidance, it closely aligns with current GAAP. Under the new standard, revenue will be recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, the FASB decided to delay the effective date of the new revenue standard by one year. Reporting entities may choose to adopt the standard as of the original effective date of December 15, 2016. As a result, the Company is required to adopt the standard in the first quarter of its fiscal year ending March 31, 2018. Presently, the Company is not yet in a position to assess the application date. The Company is currently evaluating what impact, if any, the adoption of this standard will have on its results of operations, financial position, or cash flows. |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 3 Months Ended |
Jun. 30, 2015 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
CASH, CASH EQUIVALENTS, AND INVESTMENTS | CASH, CASH EQUIVALENTS, AND INVESTMENTS The following tables summarize the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents, short-term, or long-term investments as of June 30, 2015 and March 31, 2015 (in thousands): June 30, 2015 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 296,013 $ — $ — $ 296,013 $ 296,013 $ — $ — Level 1: Mutual Funds 7,835 206 (15 ) 8,026 — 8,026 — Money Market Funds 175,001 — — 175,001 175,001 — — Subtotal 182,836 206 (15 ) 183,027 175,001 8,026 — Level 2: Government Agency Securities 89,794 40 (21 ) 89,813 — 50,095 39,718 Commercial Paper 12,367 7 (2 ) 12,372 3,299 9,073 — Corporate Bonds 101,409 137 (24 ) 101,522 1,066 47,421 53,035 Subtotal 203,570 184 (47 ) 203,707 4,365 106,589 92,753 Total cash, cash equivalents $ 682,419 $ 390 $ (62 ) $ 682,747 $ 475,379 $ 114,615 $ 92,753 March 31, 2015 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 273,350 $ — $ — $ 273,350 $ 273,350 $ — $ — Level 1: Mutual Funds 5,398 147 (25 ) 5,520 — 5,520 — Level 2: Government Agency Securities 89,875 37 (22 ) 89,890 — 43,024 46,866 Commercial Paper 17,574 10 — 17,584 3,500 14,084 — Corporate Bonds 95,759 199 (3 ) 95,955 — 35,231 60,724 Subtotal 203,208 246 (25 ) 203,429 3,500 92,339 107,590 Total cash, cash equivalents $ 481,956 $ 393 $ (50 ) $ 482,299 $ 276,850 $ 97,859 $ 107,590 As of June 30, 2015 and March 31, 2015 , with the exception of assets related to the Company's deferred compensation plan, 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 gains or losses in the three months ended June 30, 2015 and 2014 . There were no transfers between fair value measurement levels during the three months ended June 30, 2015 and 2014 . All financial assets and liabilities are recognized or disclosed at fair value in the financial statements or the accompanying notes thereto. 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 and Money Market 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, and Corporate Bonds , derivative foreign currency contracts, and long-term debt. 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. For more information regarding the Company's derivative assets and liabilities, refer to Note 11 , Foreign Currency Derivatives , of the accompanying notes to condensed consolidated financial statements (unaudited) in this Quarterly Report on Form 10-Q. The fair value of Level 2 long-term debt is determined based on inputs that were observable in the market , including the trading price of the notes when available. For more information regarding the Company's derivative assets and liabilities, refer to Note 7 , Debt , of the accompanying notes to condensed consolidated financial statements (unaudited) in this Quarterly Report on Form 10-Q. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 3 Months Ended |
Jun. 30, 2015 | |
Compensation Related Costs [Abstract] | |
DEFERRED COMPENSATION | DEFERRED COMPENSATION As of June 30, 2015 , the Company held investments in mutual funds totaling $8.0 million , all of which related to debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans. The total related deferred compensation liability was $8.0 million at June 30, 2015 . The fair value of debt and equity securities held in the rabbi trust at March 31, 2015 was $5.5 million . The total related deferred compensation liability at March 31, 2015 was $5.5 million . The securities are classified as trading securities and are recorded on the Consolidated Balance Sheets under "Short-term investments". The liability is recorded on the Consolidated Balance Sheets under “Other long-term liabilities”. |
DETAILS OF CERTAIN BALANCE SHEE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 3 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net: June 30, March 31, (in thousands) 2015 2015 Accounts receivable $ 149,317 $ 159,397 Provisions for returns (5,821 ) (6,194 ) Provisions for promotions, rebates, and other (14,797 ) (15,401 ) Provisions for doubtful accounts and sales allowances (1,539 ) (1,221 ) Accounts receivable, net $ 127,160 $ 136,581 Inventory, net: June 30, March 31, (in thousands) 2015 2015 Raw materials $ 24,313 $ 24,263 Work in process 1,555 1,653 Finished goods 30,050 30,760 Inventory, net $ 55,918 $ 56,676 Accrued Liabilities: June 30, March 31, (in thousands) 2015 2015 Employee compensation and benefits $ 24,052 $ 31,888 Warranty obligation 8,183 7,717 VAT/Sales Tax Payable 5,496 4,749 Accrued other 17,754 17,687 Accrued liabilities $ 55,485 $ 62,041 The Company's warranty obligation is included as a component of accrued liabilities on the condensed consolidated balance sheets. Changes in the warranty obligation during the three months ended June 30, 2015 and 2014 were as follows: Three Months Ended (in thousands) 2015 2014 Warranty obligation at beginning of period $ 7,717 $ 7,965 Warranty provision related to products shipped 2,247 2,762 Deductions for warranty claims processed (2,251 ) (1,370 ) Adjustments related to preexisting warranties 470 (1,150 ) Warranty obligation at end of period $ 8,183 $ 8,207 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Unconditional Purchase Obligations The Company purchases materials and services from a variety of suppliers and manufacturers. During the normal course of business and to manage manufacturing operations and general and administrative activities, the Company may enter into firm, non-cancelable, and unconditional purchase obligations for which amounts are not recorded on the consolidated balance sheets. As of June 30, 2015 , the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $131.8 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 of 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 agreements due to the limited history of prior claims and the unique facts and circumstances involved in each particular claim. Such indemnification obligations 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. ("GN") sued Plantronics, Inc. in the United States ("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 U.S. 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 to the specific matters discussed above, 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. |
DEBT
DEBT | 3 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT 5.50% Notes In May 2015, Plantronics issued $500.0 million aggregate principal amount of 5.50% senior notes (the “5.50% Senior Notes”). The Notes mature on May 31, 2023, and bear interest at a rate of 5.50% per annum, payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2015. The Company received net proceeds of $488.5 million from issuance of the 5.50% Senior Notes, net of issuance costs of $11.5 million which are being amortized to interest expense over the term of the 5.50% Senior Notes using the effective interest method. The fair value of the 5.50% Senior Notes was determined based on inputs that were observable in the market , including the trading price of the notes when available (Level 2). The estimated fair value and carrying value of the 5.50% Senior Notes were as follows: June 30, 2015 March 31, 2015 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes 508,750 488,524 — — The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.500% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium equal to the present value of the remaining scheduled interest payments as described in the applicable indenture, together with accrued and unpaid interest. (2) If the Company redeems the notes on or after the applicable date, the price is principal plus a premium which declines over time as specified in the applicable indenture, together with accrued and unpaid interest. (3) If the Company redeems the notes prior to the applicable date with net cash proceeds of one or more equity offerings, the price is equal to the amount specified above, together with accrued and unpaid interest, subject to a maximum redemption of 35% of the aggregate principal amount of the respective note being redeemed. In addition, upon the occurrence of certain change of control triggering events, the Company may be required to repurchase the 5.50% Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The 5.50% Senior Notes contain restrictive covenants that, among other things, limit Plantronics' ability to create certain liens and enter into sale and leaseback transactions; create, assume, incur, or guarantee additional indebtedness of Plantronics’ subsidiaries without such subsidiary guaranteeing the Notes on an unsecured unsubordinated basis; and consolidate or merge with, or convey, transfer or lease all or substantially all of the assets of Plantronics and its subsidiaries to another person. As of June 30, 2015 , the Company was in compliance with all covenants. Revolving Credit Agreement On May 15, 2015 , Plantronics, Inc. (the “Company”) entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (the “Bank”). The Credit Agreement amends and restates the Company’s existing Credit Agreement, dated as of May 9, 2011 (as amended, the “Existing Credit Agreement”), by and between the Company and Bank to provide for a $100.0 million unsecured revolving credit facility. The proceeds of loans under the Credit Agreement may be used to refinance outstanding indebtedness under the Existing Credit Agreement, to finance stock repurchases, and for general corporate purposes. Revolving loans under the Credit Agreement will bear interest, at the Company’s election, at (i) the Bank’s announced prime rate less 1.20% per annum or (ii) a daily one-month LIBOR rate plus 1.40% per annum. Interest is payable quarterly in arrears on the first day of each April, July, October and January, commencing July 1, 2015. Principal, together with all accrued and unpaid interest, on the revolving loans is due and payable on May 9, 2018 . The Company is also obligated to pay a commitment fee of 0.37% per annum on the average daily unused amount of the revolving line of credit, which fee shall be payable quarterly in arrears on the first day of each April, July, October and January, commencing July 1, 2015. The Company may prepay the loans and terminate the commitments under the Credit Agreement at any time, without premium or penalty, subject to the reimbursement of certain costs. As of June 30, 2015 the Company had no outstanding borrowings under the line of credit. As of March 31, 2015 the Company had $34.5 million in outstanding borrowings under the line of credit. The Credit Agreement contains customary affirmative and negative covenants, including, among other things, covenants limiting the ability of the Company to incur debt, make capital expenditures, grant liens, merge or consolidate, and make investments. The Credit Agreement also requires the Company to comply with certain financial covenants, including (i) a maximum ratio of funded debt to EBITDA and (ii) a minimum EBITDA coverage ratio, in each case, tested as of each fiscal quarter 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 $300.0 million . The Credit Agreement contains customary events of default that include, among other things, payment defaults, covenant defaults, cross-defaults with certain other indebtedness, bankruptcy and insolvency defaults, and judgment defaults. The occurrence of an event of default could result in the acceleration of the obligations under the Credit Agreement. As of June 30, 2015 , the Company was in compliance with all ratios and covenants. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2015 | |
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 (in thousands) 2015 2014 Cost of revenues $ 779 $ 535 Research, development and engineering 2,359 1,751 Selling, general and administrative 4,912 4,019 Stock-based compensation included in operating expenses 7,271 5,770 Total stock-based compensation 8,050 6,305 Income tax benefit (2,322 ) (1,789 ) Total stock-based compensation, net of tax $ 5,728 $ 4,516 Stock Options The following is a summary of the Company’s stock option activity during the three months ended June 30, 2015 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at March 31, 2015 1,558 $ 36.59 Options granted 141 $ 53.91 Options exercised (100 ) $ 30.55 Options forfeited or expired (26 ) $ 46.67 Outstanding at June 30, 2015 1,573 $ 38.37 4.1 $ 29,532 Vested or expected to vest at June 30, 2015 1,533 $ 38.06 4.0 $ 29,248 Exercisable at June 30, 2015 1,083 $ 33.86 3.2 $ 25,215 The total intrinsic value of options exercised during the three months ended June 30, 2015 and 2014 was $2.5 million and $2.0 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 three months ended June 30, 2015 was $3.1 million , net of taxes. As of June 30, 2015 , total unrecognized compensation cost related to unvested stock options was $4.4 million , which is expected to be recognized over a weighted average period of 2.1 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 three months ended June 30, 2015 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Non-vested at March 31, 2015 1,290 $ 42.67 Restricted stock granted 613 $ 54.97 Restricted stock vested (466 ) $ 41.82 Restricted stock forfeited (27 ) $ 44.84 Non-vested at June 30, 2015 1,410 $ 48.26 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 three months ended June 30, 2015 and 2014 was $54.97 and $44.79 , respectively. The total fair value of restricted stock that vested during the three months ended June 30, 2015 and 2014 was $19.5 million and $13.1 million , respectively. As of June 30, 2015 , total unrecognized compensation cost related to unvested restricted stock was $55.1 million , which is expected to be recognized over a weighted average period of 2.1 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 Employee Stock Options 2015 2014 Expected volatility 27.3 % 28.4 % Risk-free interest rate 1.2 % 1.4 % Expected dividend yield 1.1 % 1.4 % Expected life (in years) 4.2 4.2 Weighted-average grant date fair value $ 11.48 $ 9.21 No purchase rights were granted under the ESPP during the three months ended June 30, 2015 or 2014 . |
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
COMMON STOCK REPURCHASES | COMMON STOCK REPURCHASES From time to time, the Company's Board of Directors (the "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 three months ended June 30, 2015 and 2014 are discussed below. As of June 30, 2015 , there remained 3,578,268 shares authorized for repurchase under a repurchase program approved by the Board on May 21, 2015 and there were no remaining shares authorized under previously approved programs. Open Market Repurchases In the three months ended June 30, 2015 and 2014 , the Company repurchased 5,132,784 shares and 281,583 shares, respectively, of its common stock in the open market for a total cost of $284.4 million and $12.4 million , respectively, and at an average price per share of $55.42 and $44.17 , respectively. In addition, the Company withheld shares valued at $9.9 million and $5.8 million in the three months ended June 30, 2015 , and 2014 , 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 same effect as 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Jun. 30, 2015 | |
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) June 30, 2015 March 31, 2015 Accumulated unrealized gain (loss) on cash flow hedges (1) $ 101 $ 5,593 Accumulated foreign currency translation adjustments 4,352 4,363 Accumulated unrealized gain (loss) on investments 102 164 Accumulated other comprehensive income $ 4,555 $ 10,120 (1) Refer to Note 11 , Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of June 30, 2015 and March 31, 2015 . |
FOREIGN CURRENCY DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 3 Months Ended |
Jun. 30, 2015 | |
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 that it would incur due to credit risk 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 June 30, 2015 . 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 the Company and the counterparty as a result of multiple, separate derivative transactions. As of June 30, 2015 , the Company has International Swaps and Derivatives Association (ISDA) agreements with four applicable banks and financial institutions which contain netting provisions. Plantronics has elected to present the fair value of derivative assets and liabilities on the Company's condensed 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 June 30, 2015 and March 31, 2015 , no cash collateral had been received or pledged related to these derivative instruments. The gross fair value of our outstanding derivative contracts at the end of each period was as follows: (in thousands) June 30, 2015 March 31, 2015 Derivative Assets (recorded in 'Other current assets') Non-designated hedges $ 198 $ 1,891 Cash flow hedges 4,211 11,372 Total Derivative Assets $ 4,409 $ 13,263 Derivative Liabilities (recorded in 'Other accrued liabilities') Non-designated hedges $ 460 $ 1 Cash flow hedges 4,130 3,913 Total Derivative Liabilities $ 4,590 $ 3,914 Non-Designated Hedges As of June 30, 2015 , the Company had foreign currency forward contracts denominated in Euros ("EUR"), British Pound Sterling ("GBP"), Australian Dollars ("AUD"), and Canadian Dollars ("CAD"). 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 June 30, 2015 : (in thousands) Local Currency USD Equivalent Position Maturity EUR € 29,700 $ 33,117 Sell EUR 1 month GBP £ 5,100 $ 8,024 Sell GBP 1 month AUD A$ 11,900 $ 9,087 Sell AUD 1 month CAD C$ 3,800 $ 3,074 Sell CAD 1 month Effect of Non-Designated Derivative Contracts on the Condensed Consolidated Statements of Operations The effect of non-designated derivative contracts recognized in interest and other income, net in the condensed consolidated statements of operations was as follows: Three Months Ended (in thousands) 2015 2014 Gain (loss) on foreign exchange contracts $ (1,128 ) $ 14 Cash Flow Hedges Costless Collars The Company hedges a portion of the forecasted EUR and GBP denominated revenues with costless collars. On a monthly basis, the Company enters into option contracts with a nine to eleven month term. Collar contracts are scheduled to mature at the beginning of each fiscal quarter, at which time the instruments convert to forward contracts. Once the hedged revenues are recognized, the forward contracts become non-designated hedges to protect the resulting foreign monetary asset position for the Company. The Company does not purchase options for trading purposes. As of June 30, 2015 , the Company had foreign currency option contracts of approximately €60.6 million and £24.4 million . As of March 31, 2015 , the Company had foreign currency option contracts of approximately €67.9 million and £28.6 million . The Company will reclassify all amounts accumulated in other comprehensive income into earnings within the next twelve months. Cross-currency Swaps The Company hedges a portion of the forecasted Mexican Peso (“MXN”) denominated expenditures with a cross-currency swap. A loss of $2.9 million , net of tax, in AOCI as of March 31, 2015 is expected to be reclassified to cost of revenues during the next 12 months due to the recognition of the hedged forecasted expenditures. As of June 30, 2015 and March 31, 2015 , the Company had foreign currency swap contracts of approximately MXN 449.1 million and MXN 431.9 million , respectively. The following table summarizes the notional value of the Company’s outstanding MXN cross-currency swaps and approximate USD Equivalent at June 30, 2015 : (in thousands) Local Currency USD Equivalent Position Maturity MXN 449,070 $ 31,531 Buy MXN Monthly over 17 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 accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended June 30, 2015 and 2014 : Three Months Ended (in thousands) 2015 2014 Gain (loss) included in AOCI as of beginning of period $ 5,705 $ (1,442 ) Amount of gain (loss) recognized in OCI (effective portion) (2,838 ) 73 Amount of gain (loss) reclassified from OCI into net revenues (effective portion) 3,538 (870 ) Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) (773 ) 108 Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) 2,765 (762 ) Gain (loss) included in AOCI as of end of period $ 102 $ (607 ) During the three months ended June 30, 2015 and 2014 , the Company recognized an immaterial gain and an immaterial loss, respectively, on the ineffective portion of its cash flow hedges, which is reported in interest and other income (expense), net in the condensed consolidated statements of operations. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2015 | |
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 months ended June 30, 2015 was 19.4% compared to 26.1% for the same period in the prior year. The decrease in the effective tax rate is due primarily to lower domestic earnings resulting from the interest expense on the bond issuance. The effective tax rates differ from the statutory rate due primarily to the impact of foreign operations taxed at different statutory rates, tax credits, state taxes, and other factors. Included in long-term income taxes payable in the condensed consolidated balance sheets as of June 30, 2015 and March 31, 2015 were unrecognized tax benefits of $12.3 million and $12.8 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 was $1.8 million as of June 30, 2015 and March 31, 2015 . No penalties have been accrued. The Company has effectively settled the examination by the Internal Revenue Service for its 2010 tax year. The California Franchise Tax Board completed its examination of the Company's 2007 and 2008 tax years. The Company received a Notice of Proposed Assessment and responded by filing a protest letter. The amount of the proposed assessment is not material. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to fiscal year 2011, except in the United Kingdom where tax matters have been concluded for tax years prior to fiscal year 2014. 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. The timing of any resolution and/or closure of tax examinations is not certain. |
COMPUTATION OF EARNINGS PER COM
COMPUTATION OF EARNINGS PER COMMON SHARE | 3 Months Ended |
Jun. 30, 2015 | |
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. 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 month periods ending June 30, 2015 and 2014 . The following table sets forth the computation of basic and diluted earnings per common share for the three months ended June 30, 2015 and 2014 : Three Months Ended (in thousands, except per share data) 2015 2014 Numerator: Net income $ 21,228 $ 28,672 Denominator: Weighted average common shares-basic 38,002 41,619 Dilutive effect of employee equity incentive plans 941 847 Weighted average common shares-diluted 38,943 42,466 Basic earnings per common share $ 0.56 $ 0.69 Diluted earnings per common share $ 0.55 $ 0.68 Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive 235 547 |
REVENUE AND MAJOR CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 3 Months Ended |
Jun. 30, 2015 | |
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. The following table presents net revenues by product group for the three months ended June 30, 2015 and 2014 : Three Months Ended (in thousands) 2015 2014 Net revenues from unaffiliated customers: Enterprise $ 151,757 $ 152,354 Consumer 54,601 64,308 Total net revenues $ 206,358 $ 216,662 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 months ended June 30, 2015 and 2014 . The following table presents net revenues by geography: Three Months Ended (in thousands) 2015 2014 Net revenues from unaffiliated customers: U.S. $ 117,578 $ 124,467 Europe and Africa 50,107 51,262 Asia Pacific 26,515 26,969 Americas, excluding U.S. 12,158 13,964 Total international net revenues 88,780 92,195 Total net revenues $ 206,358 $ 216,662 No customer accounted for more than 10% of net revenues for the three months ended June 30, 2015 or 2014 . No customer accounted for more than 10% of net accounts receivable at June 30, 2015 . One customer, D&H Distributing, accounted for 11.1% of total net accounts receivable at March 31, 2015 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 27, 2015 , the Company announced that the Audit Committee had declared and approved the payment of a dividend of $0.15 per share on September 10, 2015 to holders of record on August 20, 2015 . Subsequent to June 27, 2015, the Company repurchased 1.8 million shares of its common stock in the open market for a total cost of $101.8 million , and at an average price per share of $56.76 . |
CASH, CASH EQUIVALENTS, AND I21
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Cash, Cash Equivalents, and Investments | The following tables summarize the Company’s cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents, short-term, or long-term investments as of June 30, 2015 and March 31, 2015 (in thousands): June 30, 2015 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 296,013 $ — $ — $ 296,013 $ 296,013 $ — $ — Level 1: Mutual Funds 7,835 206 (15 ) 8,026 — 8,026 — Money Market Funds 175,001 — — 175,001 175,001 — — Subtotal 182,836 206 (15 ) 183,027 175,001 8,026 — Level 2: Government Agency Securities 89,794 40 (21 ) 89,813 — 50,095 39,718 Commercial Paper 12,367 7 (2 ) 12,372 3,299 9,073 — Corporate Bonds 101,409 137 (24 ) 101,522 1,066 47,421 53,035 Subtotal 203,570 184 (47 ) 203,707 4,365 106,589 92,753 Total cash, cash equivalents $ 682,419 $ 390 $ (62 ) $ 682,747 $ 475,379 $ 114,615 $ 92,753 March 31, 2015 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 273,350 $ — $ — $ 273,350 $ 273,350 $ — $ — Level 1: Mutual Funds 5,398 147 (25 ) 5,520 — 5,520 — Level 2: Government Agency Securities 89,875 37 (22 ) 89,890 — 43,024 46,866 Commercial Paper 17,574 10 — 17,584 3,500 14,084 — Corporate Bonds 95,759 199 (3 ) 95,955 — 35,231 60,724 Subtotal 203,208 246 (25 ) 203,429 3,500 92,339 107,590 Total cash, cash equivalents $ 481,956 $ 393 $ (50 ) $ 482,299 $ 276,850 $ 97,859 $ 107,590 |
DETAILS OF CERTAIN BALANCE SH22
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net: June 30, March 31, (in thousands) 2015 2015 Accounts receivable $ 149,317 $ 159,397 Provisions for returns (5,821 ) (6,194 ) Provisions for promotions, rebates, and other (14,797 ) (15,401 ) Provisions for doubtful accounts and sales allowances (1,539 ) (1,221 ) Accounts receivable, net $ 127,160 $ 136,581 |
Inventory, net | Inventory, net: June 30, March 31, (in thousands) 2015 2015 Raw materials $ 24,313 $ 24,263 Work in process 1,555 1,653 Finished goods 30,050 30,760 Inventory, net $ 55,918 $ 56,676 |
Accrued liabilities | Accrued Liabilities: June 30, March 31, (in thousands) 2015 2015 Employee compensation and benefits $ 24,052 $ 31,888 Warranty obligation 8,183 7,717 VAT/Sales Tax Payable 5,496 4,749 Accrued other 17,754 17,687 Accrued liabilities $ 55,485 $ 62,041 |
Changes in the warranty obligation | Changes in the warranty obligation during the three months ended June 30, 2015 and 2014 were as follows: Three Months Ended (in thousands) 2015 2014 Warranty obligation at beginning of period $ 7,717 $ 7,965 Warranty provision related to products shipped 2,247 2,762 Deductions for warranty claims processed (2,251 ) (1,370 ) Adjustments related to preexisting warranties 470 (1,150 ) Warranty obligation at end of period $ 8,183 $ 8,207 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of debt, fair value | The fair value of the 5.50% Senior Notes was determined based on inputs that were observable in the market , including the trading price of the notes when available (Level 2). The estimated fair value and carrying value of the 5.50% Senior Notes were as follows: June 30, 2015 March 31, 2015 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes 508,750 488,524 — — |
Summary of debt redemption | The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.500% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium equal to the present value of the remaining scheduled interest payments as described in the applicable indenture, together with accrued and unpaid interest. (2) If the Company redeems the notes on or after the applicable date, the price is principal plus a premium which declines over time as specified in the applicable indenture, together with accrued and unpaid interest. (3) If the Company redeems the notes prior to the applicable date with net cash proceeds of one or more equity offerings, the price is equal to the amount specified above, together with accrued and unpaid interest, subject to a maximum redemption of 35% of the aggregate principal amount of the respective note being redeemed. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
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 (in thousands) 2015 2014 Cost of revenues $ 779 $ 535 Research, development and engineering 2,359 1,751 Selling, general and administrative 4,912 4,019 Stock-based compensation included in operating expenses 7,271 5,770 Total stock-based compensation 8,050 6,305 Income tax benefit (2,322 ) (1,789 ) Total stock-based compensation, net of tax $ 5,728 $ 4,516 |
Summary of Stock Option Activity | The following is a summary of the Company’s stock option activity during the three months ended June 30, 2015 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at March 31, 2015 1,558 $ 36.59 Options granted 141 $ 53.91 Options exercised (100 ) $ 30.55 Options forfeited or expired (26 ) $ 46.67 Outstanding at June 30, 2015 1,573 $ 38.37 4.1 $ 29,532 Vested or expected to vest at June 30, 2015 1,533 $ 38.06 4.0 $ 29,248 Exercisable at June 30, 2015 1,083 $ 33.86 3.2 $ 25,215 |
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 three months ended June 30, 2015 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Non-vested at March 31, 2015 1,290 $ 42.67 Restricted stock granted 613 $ 54.97 Restricted stock vested (466 ) $ 41.82 Restricted stock forfeited (27 ) $ 44.84 Non-vested at June 30, 2015 1,410 $ 48.26 |
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 Employee Stock Options 2015 2014 Expected volatility 27.3 % 28.4 % Risk-free interest rate 1.2 % 1.4 % Expected dividend yield 1.1 % 1.4 % Expected life (in years) 4.2 4.2 Weighted-average grant date fair value $ 11.48 $ 9.21 |
ACCUMULATED OTHER COMPREHENSI25
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
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) June 30, 2015 March 31, 2015 Accumulated unrealized gain (loss) on cash flow hedges (1) $ 101 $ 5,593 Accumulated foreign currency translation adjustments 4,352 4,363 Accumulated unrealized gain (loss) on investments 102 164 Accumulated other comprehensive income $ 4,555 $ 10,120 (1) Refer to Note 11 , Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of June 30, 2015 and March 31, 2015 . |
FOREIGN CURRENCY DERIVATIVES (T
FOREIGN CURRENCY DERIVATIVES (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Contracts | The gross fair value of our outstanding derivative contracts at the end of each period was as follows: (in thousands) June 30, 2015 March 31, 2015 Derivative Assets (recorded in 'Other current assets') Non-designated hedges $ 198 $ 1,891 Cash flow hedges 4,211 11,372 Total Derivative Assets $ 4,409 $ 13,263 Derivative Liabilities (recorded in 'Other accrued liabilities') Non-designated hedges $ 460 $ 1 Cash flow hedges 4,130 3,913 Total Derivative Liabilities $ 4,590 $ 3,914 |
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 June 30, 2015 : (in thousands) Local Currency USD Equivalent Position Maturity EUR € 29,700 $ 33,117 Sell EUR 1 month GBP £ 5,100 $ 8,024 Sell GBP 1 month AUD A$ 11,900 $ 9,087 Sell AUD 1 month CAD C$ 3,800 $ 3,074 Sell CAD 1 month |
Effect of Non-Designated Derivative Contracts Recognized in Interest and Other Income, Net | The effect of non-designated derivative contracts recognized in interest and other income, net in the condensed consolidated statements of operations was as follows: Three Months Ended (in thousands) 2015 2014 Gain (loss) on foreign exchange contracts $ (1,128 ) $ 14 |
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 June 30, 2015 : (in thousands) Local Currency USD Equivalent Position Maturity MXN 449,070 $ 31,531 Buy MXN Monthly over 17 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 accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended June 30, 2015 and 2014 : Three Months Ended (in thousands) 2015 2014 Gain (loss) included in AOCI as of beginning of period $ 5,705 $ (1,442 ) Amount of gain (loss) recognized in OCI (effective portion) (2,838 ) 73 Amount of gain (loss) reclassified from OCI into net revenues (effective portion) 3,538 (870 ) Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) (773 ) 108 Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) 2,765 (762 ) Gain (loss) included in AOCI as of end of period $ 102 $ (607 ) |
COMPUTATION OF EARNINGS PER C27
COMPUTATION OF EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
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 months ended June 30, 2015 and 2014 : Three Months Ended (in thousands, except per share data) 2015 2014 Numerator: Net income $ 21,228 $ 28,672 Denominator: Weighted average common shares-basic 38,002 41,619 Dilutive effect of employee equity incentive plans 941 847 Weighted average common shares-diluted 38,943 42,466 Basic earnings per common share $ 0.56 $ 0.69 Diluted earnings per common share $ 0.55 $ 0.68 Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive 235 547 |
REVENUE AND MAJOR CUSTOMERS (Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
REVENUE AND MAJOR CUSTOMERS [Abstract] | |
Net Revenues by Product Group | The following table presents net revenues by product group for the three months ended June 30, 2015 and 2014 : Three Months Ended (in thousands) 2015 2014 Net revenues from unaffiliated customers: Enterprise $ 151,757 $ 152,354 Consumer 54,601 64,308 Total net revenues $ 206,358 $ 216,662 |
Net Revenues by Geography | The following table presents net revenues by geography: Three Months Ended (in thousands) 2015 2014 Net revenues from unaffiliated customers: U.S. $ 117,578 $ 124,467 Europe and Africa 50,107 51,262 Asia Pacific 26,515 26,969 Americas, excluding U.S. 12,158 13,964 Total international net revenues 88,780 92,195 Total net revenues $ 206,358 $ 216,662 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | |
Duration of fiscal year | 91 days | 91 days | 364 days | |
Forecast [Member] | ||||
Duration of fiscal year | 371 days |
CASH, CASH EQUIVALENTS, AND I30
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | $ 475,379 | $ 276,850 | $ 235,250 | $ 232,704 |
Short-term investments (due in 1 year or less) | 114,615 | 97,859 | ||
Long-term investments (due in 1 to 3 years) | 92,753 | 107,590 | ||
Total cash, cash equivalents and investments measured at fair value, amortized cost | 682,419 | 481,956 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized gains | 390 | 393 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized losses | (62) | (50) | ||
Total cash, cash equivalents and investments measured at fair value, fair value | 682,747 | 482,299 | ||
Cash [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 296,013 | 273,350 | ||
Level 1 [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 175,001 | |||
Available-for-sale Securities, amortized cost basis | 182,836 | |||
Available-for-sale Securities, gross unrealized gains | 206 | |||
Available-for-sale Securities, gross unrealized losses | (15) | |||
Available-for-sale Securities, fair value | 183,027 | |||
Short-term investments (due in 1 year or less) | 8,026 | |||
Long-term investments (due in 1 to 3 years) | 0 | |||
Level 1 [Member] | Money Market Funds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 175,001 | |||
Available-for-sale Securities, amortized cost basis | 175,001 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 175,001 | |||
Level 1 [Member] | Mutual Funds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Available-for-sale Securities, amortized cost basis | 7,835 | 5,398 | ||
Available-for-sale Securities, gross unrealized gains | 206 | 147 | ||
Available-for-sale Securities, gross unrealized losses | (15) | (25) | ||
Available-for-sale Securities, fair value | 8,026 | 5,520 | ||
Short-term investments (due in 1 year or less) | 8,026 | 5,520 | ||
Long-term investments (due in 1 to 3 years) | 0 | 0 | ||
Level 2 [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 4,365 | 3,500 | ||
Available-for-sale Securities, amortized cost basis | 203,570 | 203,208 | ||
Available-for-sale Securities, gross unrealized gains | 184 | 246 | ||
Available-for-sale Securities, gross unrealized losses | (47) | (25) | ||
Available-for-sale Securities, fair value | 203,707 | 203,429 | ||
Short-term investments (due in 1 year or less) | 106,589 | 92,339 | ||
Long-term investments (due in 1 to 3 years) | 92,753 | 107,590 | ||
Level 2 [Member] | Government Agency Securities [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Available-for-sale Securities, amortized cost basis | 89,794 | 89,875 | ||
Available-for-sale Securities, gross unrealized gains | 40 | 37 | ||
Available-for-sale Securities, gross unrealized losses | (21) | (22) | ||
Available-for-sale Securities, fair value | 89,813 | 89,890 | ||
Short-term investments (due in 1 year or less) | 50,095 | 43,024 | ||
Long-term investments (due in 1 to 3 years) | 39,718 | 46,866 | ||
Level 2 [Member] | Commercial Paper [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 3,299 | 3,500 | ||
Available-for-sale Securities, amortized cost basis | 12,367 | 17,574 | ||
Available-for-sale Securities, gross unrealized gains | 7 | 10 | ||
Available-for-sale Securities, gross unrealized losses | (2) | 0 | ||
Available-for-sale Securities, fair value | 12,372 | 17,584 | ||
Short-term investments (due in 1 year or less) | 9,073 | 14,084 | ||
Long-term investments (due in 1 to 3 years) | 0 | 0 | ||
Level 2 [Member] | Corporate Bonds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 1,066 | |||
Available-for-sale Securities, amortized cost basis | 101,409 | 95,759 | ||
Available-for-sale Securities, gross unrealized gains | 137 | 199 | ||
Available-for-sale Securities, gross unrealized losses | (24) | (3) | ||
Available-for-sale Securities, fair value | 101,522 | 95,955 | ||
Short-term investments (due in 1 year or less) | 47,421 | 35,231 | ||
Long-term investments (due in 1 to 3 years) | $ 53,035 | $ 60,724 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Short-term investments [Member] | Mutual Funds [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Investments | $ 8 | $ 5.5 |
Other long-term liabilities [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation liability, noncurrent | $ 8 | $ 5.5 |
DETAILS OF CERTAIN BALANCE SH32
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Accounts receivable, net [Line Items] | ||
Accounts receivable | $ 149,317 | $ 159,397 |
Accounts receivable, net | 127,160 | 136,581 |
Provision for returns [Member] | ||
Accounts receivable, net [Line Items] | ||
Accounts receivable, reserves | (5,821) | (6,194) |
Provision for promotions, rebates and other [Member] | ||
Accounts receivable, net [Line Items] | ||
Accounts receivable, reserves | (14,797) | (15,401) |
Provisions for doubtful accounts and sales allowances [Member] | ||
Accounts receivable, net [Line Items] | ||
Accounts receivable, reserves | $ (1,539) | $ (1,221) |
DETAILS OF CERTAIN BALANCE SH33
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory, Net [Abstract] | ||
Raw materials | $ 24,313 | $ 24,263 |
Work in process | 1,555 | 1,653 |
Finished goods | 30,050 | 30,760 |
Inventory, net | $ 55,918 | $ 56,676 |
DETAILS OF CERTAIN BALANCE SH34
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 |
Accrued Liabilities [Abstract] | ||||
Employee compensation and benefits | $ 24,052 | $ 31,888 | ||
Warranty obligation | 8,183 | 7,717 | $ 8,207 | $ 7,965 |
VAT/Sales Tax Payable | 5,496 | 4,749 | ||
Accrued other | 17,754 | 17,687 | ||
Accrued liabilities | $ 55,485 | $ 62,041 |
DETAILS OF CERTAIN BALANCE SH35
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Warranty Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in the Warranty Obligation [Roll Forward] | ||
Warranty obligation at beginning of period | $ 7,717 | $ 7,965 |
Warranty provision related to products shipped | 2,247 | 2,762 |
Deductions for warranty claims processed | (2,251) | (1,370) |
Adjustments related to preexisting warranties | 470 | (1,150) |
Warranty obligation at end of period | $ 8,183 | $ 8,207 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unconditional purchase obligations | $ 131.8 |
DEBT (Details)
DEBT (Details) - USD ($) | May. 15, 2015 | May. 09, 2011 | May. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 |
Debt Disclosure [Line Items] | ||||||
Proceeds from issuance of senior notes, net of issuance costs | $ 489,670,000 | $ 0 | ||||
Latest amendment date of Credit Agreement | May 15, 2015 | |||||
Initiation date of credit agreement | May 9, 2011 | |||||
Unsecured revolving line of credit | $ 100,000,000 | |||||
Credit facility expiration date | May 9, 2018 | |||||
Commitment fee percentage | 0.37% | |||||
Outstanding borrowings under line of credit | $ 0 | $ 34,500,000 | ||||
Minimum required liquid funds | 300,000,000 | |||||
Long term debt, net of issuance costs | $ 488,524,000 | 0 | ||||
Line Of Credit Facility Interest Rate Spread Below The Banks Announced Prime Rate [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Spread for interest rate | 1.20% | |||||
Line Of Credit Facility Interest Rate Spread Above A Daily One Month LIBOR Rate [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Spread for interest rate | 1.40% | |||||
Senior Notes [Member] | 5.50% Senior Notes [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Principal amount of debt issued | $ 500,000,000 | |||||
Stated interest rate of debt instrument | 5.50% | |||||
Proceeds from issuance of senior notes, net of issuance costs | $ 488,524,000 | |||||
Debt issuance costs | $ 11,500,000 | |||||
Debt redemption percentage price, Specified Price | 105.50% | |||||
Repurchase price, percentage of principal amount | 101.00% | |||||
Minimum [Member] | Senior Notes [Member] | 5.50% Senior Notes [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Debt redemption notice period | 30 days | |||||
Maximum [Member] | Senior Notes [Member] | 5.50% Senior Notes [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Debt redemption notice period | 60 days | |||||
Percentage of debt redeemed | 35.00% | |||||
Level 2 [Member] | Fair Value [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Long-term debt, 5.50% Senior Notes | $ 508,750,000 | 0 | ||||
Level 2 [Member] | Carrying Value [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Long-term debt, 5.50% Senior Notes | $ 488,524,000 | $ 0 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 5,728 | $ 4,516 |
Cost of revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 779 | 535 |
Research, development, and engineering [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 2,359 | 1,751 |
Selling, general, and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 4,912 | 4,019 |
Stock-based compensation expense included in operating expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 7,271 | 5,770 |
Total stock-based compensation [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 8,050 | 6,305 |
Income tax benefit [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ (2,322) | $ (1,789) |
STOCK-BASED COMPENSATION Stock
STOCK-BASED COMPENSATION Stock Option Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding at March 31, 2015 | 1,558 | |
Options granted | 141 | |
Options exercised | (100) | |
Options forfeited or expired | (26) | |
Options outstanding at June 30, 2015 | 1,573 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price of options outstanding, March 31, 2015 | $ 36.59 | |
Weighted average exercise price of options granted | 53.91 | |
Weighted average exercise price of options exercised | 30.55 | |
Weighted average exercise price of options forfeited or expired | 46.67 | |
Weighted average exercise price of options outstanding, June 30, 2015 | $ 38.37 | |
Weighted average remaining contractual life of options outstanding at June 30, 2015 | 4 years 37 days | |
Aggregate intrinsic value of options outstanding at June 30, 2015 | $ 29,532 | |
Vested and expected to vest at June 30, 2015 | 1,533 | |
Weighted average exercise price of options vested and expected to vest at June 30, 2015 | $ 38.06 | |
Weighted average remaining contractual life of options vested and expected to vest at June 30, 2015 | 4 years | |
Aggregate intrinsic value of options vested and expected to vest at June 30, 2015 | $ 29,248 | |
Exercisable at June 30, 2015 | 1,083 | |
Weighted average exercise price of options exercisable at June 30, 2015 | $ 33.86 | |
Weighted average remaining contractual life of options exercisable at June 30, 2015 | 3 years 73 days | |
Aggregate intrinsic value of options exercisable at June 30, 2015 | $ 25,215 | |
Total intrinsic value of options exercised | 2,500 | $ 2,000 |
Total cash received as a result of stock option exercises, net of taxes | 3,100 | |
Total unrecognized compensation cost related to unvested stock options | $ 4,400 | |
Weighted average period of recognition for unrecognized compensation cost related to unvested stock options | 2 years 37 days |
STOCK-BASED COMPENSATION Restri
STOCK-BASED COMPENSATION Restricted Stock Activity (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
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, 2015 | 1,290 | |
Restricted stock granted | 613 | |
Restricted stock vested | (466) | |
Restricted stock forfeited | (27) | |
Non-vested Restricted Stock at June 30, 2015 | 1,410 | |
Weighted Average Grant Date Fair Value of Non-Vested Restricted Stock, March 31, 2015 | $ 42.67 | |
Weighted average grant date fair value of restricted stock granted | 54.97 | $ 44.79 |
Weighted average grant date fair value of restricted stock vested | 41.82 | |
Weighted average grant date fair value of restricted stock forfeited | 44.84 | |
Weighted Average Grant Date Fair Value of Non-Vested Restricted Stock, June 30, 2015 | $ 48.26 | |
Restricted Stock Awards Vested in Period, Total Fair Value | $ 19.5 | $ 13.1 |
Non-vested restricted stock awards, total unrecognized compensation cost | $ 55.1 | |
Weighted average number of years over which compensation cost related to non-vested restricted stock awards will be recognized | 2 years 37 days |
STOCK-BASED COMPENSATION Valuat
STOCK-BASED COMPENSATION Valuation Assumptions (Details) - Stock Options [Member] - $ / shares | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 27.30% | 28.40% |
Risk-free interest rate | 1.20% | 1.40% |
Expected dividend yield | 1.10% | 1.40% |
Expected life (in years) | 4 years 84 days | 4 years 84 days |
Weighted-average grant date fair value | $ 11.48 | $ 9.21 |
COMMON STOCK REPURCHASES (Detai
COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | ||
Remaining shares authorized for repurchase under program | 3,578,268 | |
Shares repurchased | 5,132,784 | 281,583 |
Total cost of shares repurchased | $ 284,444 | $ 12,438 |
Average cost per share of shares repurchased | $ 55.42 | $ 44.17 |
Value of shares withheld in satisfaction of employee tax withholding obligations | $ 9,903 | $ 5,787 |
ACCUMULATED OTHER COMPREHENSI43
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated unrealized gain (loss) on cash flow hedges | [1] | $ 101 | $ 5,593 |
Accumulated foreign currency translation adjustments | 4,352 | 4,363 | |
Accumulated unrealized gain (loss) on investments | 102 | 164 | |
Accumulated other comprehensive income | $ 4,555 | $ 10,120 | |
[1] | Refer to Note 11, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of June 30, 2015 and March 31, 2015. |
FOREIGN CURRENCY DERIVATIVES (D
FOREIGN CURRENCY DERIVATIVES (Details) € in Thousands, £ in Thousands, MXN in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands | 3 Months Ended | |||||||||
Jun. 30, 2015EUR (€)financial_institution | Jun. 30, 2015CADfinancial_institution | Jun. 30, 2015GBP (£)financial_institution | Jun. 30, 2015AUDfinancial_institution | Jun. 30, 2015USD ($)financial_institution | Jun. 30, 2015MXNfinancial_institution | Mar. 31, 2015EUR (€) | Mar. 31, 2015GBP (£) | Mar. 31, 2015USD ($) | Mar. 31, 2015MXN | |
Derivative [Line Items] | ||||||||||
Number of financial institutions company has International Swap and Derivatives Association agreements | financial_institution | 4 | 4 | 4 | 4 | 4 | 4 | ||||
Foreign currency option, loss expected to be reclassified during the next 12 months | $ 2,900 | |||||||||
Foreign Exchange Forward, EURO [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | € 29,700 | $ 33,117 | ||||||||
Position | Sell EUR | |||||||||
Maturity | 1 month | |||||||||
Foreign Exchange Forward, GBP [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | £ 5,100 | 8,024 | ||||||||
Position | Sell GBP | |||||||||
Maturity | 1 month | |||||||||
Foreign Exchange Forward, AUD [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | AUD 11,900 | 9,087 | ||||||||
Position | Sell AUD | |||||||||
Maturity | 1 month | |||||||||
Foreign exchange option, EURO [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | € | € 60,600 | € 67,900 | ||||||||
Foreign exchange option, GBP [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | £ | £ 24,400 | £ 28,600 | ||||||||
Foreign currency swap contract [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | 31,531 | MXN 449,070 | MXN 431,900 | |||||||
Maturity | 17 months | |||||||||
Position | Buy MXN | |||||||||
Foreign Exchange Forward, CAD [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of contracts | CAD 3,800 | 3,074 | ||||||||
Position | Sell CAD | |||||||||
Maturity | 1 month | |||||||||
Other current assets [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative assets | 4,409 | 13,263 | ||||||||
Other current assets [Member] | Non-designated hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative assets | 198 | 1,891 | ||||||||
Other current assets [Member] | Designated as hedging instrument [Member] | Cash flow hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative assets | 4,211 | 11,372 | ||||||||
Other accrued liabilities [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative liabilities | 4,590 | 3,914 | ||||||||
Other accrued liabilities [Member] | Non-designated hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative liabilities | 460 | 1 | ||||||||
Other accrued liabilities [Member] | Designated as hedging instrument [Member] | Cash flow hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative liabilities | $ 4,130 | $ 3,913 | ||||||||
Minimum [Member] | Cash flow hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Term of Contract | 9 months | |||||||||
Maximum [Member] | Cash flow hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Term of Contract | 11 months |
FOREIGN CURRENCY DERIVATIVES 45
FOREIGN CURRENCY DERIVATIVES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Gain (loss) on foreign exchange contracts | $ (1,128) | $ 14 |
FOREIGN CURRENCY DERIVATIVES 46
FOREIGN CURRENCY DERIVATIVES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gain (loss) included in AOCI as of beginning of period | $ 5,705 | $ (1,442) |
Amount of gain (loss) recognized in OCI (effective portion) | (2,838) | 73 |
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | 206,358 | 216,662 |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (99,000) | (101,952) |
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | 2,765 | (762) |
Gain (loss) included in AOCI as of end of period | 102 | (607) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ||
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | 3,538 | (870) |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | $ (773) | $ 108 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 19.40% | 26.10% | |
Unrecognized tax benefits | $ 12,300,000 | $ 12,800,000 | |
Accrued interest related to unrecognized tax benefits | 1,800,000 | 1,800,000 | |
Accrued penalties | $ 0 | $ 0 |
COMPUTATION OF EARNINGS PER C48
COMPUTATION OF EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Net income | $ 21,228 | $ 28,672 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Weighted average common shares-basic | 38,002 | 41,619 |
Dilutive effect of employee equity incentive plans | 941 | 847 |
Weighted average common shares-diluted | 38,943 | 42,466 |
Basic earnings per common share | $ 0.56 | $ 0.69 |
Diluted earnings per common share | $ 0.55 | $ 0.68 |
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 235 | 547 |
REVENUE AND MAJOR CUSTOMERS (De
REVENUE AND MAJOR CUSTOMERS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)Customer | Jun. 30, 2014USD ($)Customer | Mar. 31, 2015Customer | |
Revenue from External Customer [Line Items] | |||
Net revenues | $ 206,358 | $ 216,662 | |
Number of major customers, ten percent or greater, net revenues | Customer | 0 | 0 | |
Number of major customers, ten percent or greater, net accounts receivable | Customer | 0 | ||
US [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | $ 117,578 | $ 124,467 | |
Europe and Africa [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 50,107 | 51,262 | |
Asia Pacific [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 26,515 | 26,969 | |
Americas, excluding U.S. [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 12,158 | 13,964 | |
Total international net revenues [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 88,780 | 92,195 | |
Enterprise [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 151,757 | 152,354 | |
Consumer [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | $ 54,601 | $ 64,308 | |
D&H Distributing [Member] | |||
Revenue from External Customer [Line Items] | |||
Number of major customers, ten percent or greater, net accounts receivable | Customer | 1 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | D&H Distributing [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 11.10% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2015 | Jul. 27, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Subsequent Event [Line Items] | ||||
Repurchase of common stock, shares | 5,132,784 | 281,583 | ||
Payments for repurchase of common stock | $ 284,444 | $ 12,438 | ||
Repurchase of common stock, average cost per share (in dollars per share) | $ 55.42 | $ 44.17 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared date | Jul. 27, 2015 | |||
Cash dividend payable per share | $ 0.15 | $ 0.15 | ||
Dividend payable date | Sep. 10, 2015 | |||
Date of stockholders on record for dividends declared | Aug. 20, 2015 | |||
Open Market Repurchases [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Repurchase of common stock, shares | 1,800,000 | |||
Payments for repurchase of common stock | $ 101,800 | |||
Repurchase of common stock, average cost per share (in dollars per share) | $ 56.76 |