DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 39,722,750 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 631,042 | $ 390,661 |
Short-term investments | 14,147 | 269,313 |
Accounts receivable, net | 161,529 | 152,888 |
Inventory, net | 68,138 | 68,276 |
Other current assets | 55,265 | 18,588 |
Total current assets | 930,121 | |
Property, plant, and equipment, net | 139,577 | 142,129 |
Goodwill and purchased intangibles, net | 15,498 | 15,498 |
Deferred tax and other assets | 14,712 | |
Total assets | 1,099,908 | |
Current liabilities: | ||
Accounts payable | 50,349 | 45,417 |
Accrued liabilities | 75,278 | 80,097 |
Total current liabilities | 125,627 | |
Long term debt, net of issuance costs | 492,871 | 492,509 |
Long-term income taxes payable | 87,495 | 87,328 |
Other long-term liabilities | 19,382 | 18,566 |
Total liabilities | 725,375 | |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock | 819 | 816 |
Additional paid-in capital | 895,350 | 876,645 |
Accumulated other comprehensive income | 6,585 | 2,870 |
Retained earnings | 311,241 | |
Total stockholders' equity before treasury stock | 1,213,995 | |
Less: Treasury stock, at cost | (839,462) | $ (826,427) |
Total stockholders' equity | 374,533 | |
Total liabilities and stockholders' equity | $ 1,099,908 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Net revenues | $ 221,309 | $ 203,926 |
Cost of revenues | 111,466 | 100,643 |
Gross profit | 109,843 | 103,283 |
Operating expenses: | ||
Research, development, and engineering | 23,701 | 21,213 |
Selling, general, and administrative | 64,203 | 56,233 |
(Gain) loss, net from litigation settlements | (30) | (176) |
Restructuring and other related charges | 1,320 | 2,573 |
Total operating expenses | 89,194 | 79,843 |
Operating income | 20,649 | 23,440 |
Interest expense | (7,327) | (7,303) |
Other non-operating income and (expense), net | 1,996 | 914 |
Income before income taxes | 15,318 | 17,051 |
Income tax expense (benefit) | 847 | (1,777) |
Net income | $ 14,471 | $ 18,828 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.43 | $ 0.58 |
Diluted (in dollars per share) | $ 0.42 | $ 0.57 |
Shares used in computing earnings per common share: | ||
Basic (in shares) | 32,594 | 32,506 |
Diluted (in shares) | 33,534 | 33,211 |
Cash dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14,471 | $ 18,828 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 0 | 200 |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized cash flow hedge gains (losses) arising during the period | 3,956 | (2,345) |
Net (gains) losses reclassified into income for revenue hedges | (249) | 18 |
Net (gains) losses reclassified into income for cost of revenue hedges | (79) | 42 |
Net unrealized gains (losses) on cash flow hedges | 3,628 | (2,285) |
Unrealized holding gains during the period | 198 | 76 |
Aggregate income tax benefit (expense) of the above items | (110) | 20 |
Other comprehensive income (loss) | 3,716 | (1,989) |
Comprehensive income | $ 18,187 | $ 16,839 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 14,471 | $ 18,828 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,248 | 5,382 |
Amortization of debt issuance costs | 362 | 362 |
Stock-based compensation | 8,150 | 9,256 |
Deferred income taxes | 4,632 | 6,606 |
Provision for excess and obsolete inventories | 612 | 529 |
Restructuring and related charges | 1,320 | 2,573 |
Cash payments for restructuring charges | (835) | (1,905) |
Other operating activities | (274) | 503 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 5,302 | 6,465 |
Inventory, net | (400) | (2,241) |
Current and other assets | 2,981 | (2,704) |
Accounts payable | 5,688 | 989 |
Accrued liabilities | (7,300) | (18,467) |
Income taxes | (7,875) | (13,291) |
Cash provided by operating activities | 32,082 | 12,885 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales of investments | 124,640 | 21,571 |
Proceeds from maturities of investments | 131,017 | 58,298 |
Purchase of investments | (394) | (83,279) |
Prepaid Acquisition consideration | (33,550) | 0 |
Capital expenditures | (3,868) | (3,047) |
Cash provided by (used in) for investing activities | 217,845 | (6,457) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of common stock | 0 | (13,492) |
Employees' tax withheld and paid for restricted stock and restricted stock units | (13,035) | (10,485) |
Proceeds from issuances under stock-based compensation plans | 10,558 | 9,204 |
Payment of cash dividends | (5,014) | (5,014) |
Cash used for financing activities | (7,491) | (19,787) |
Effect of exchange rate changes on cash and cash equivalents | (2,055) | 1,873 |
Net increase (decrease) in cash and cash equivalents | 240,381 | (11,486) |
Cash and cash equivalents at beginning of period | 390,661 | 301,970 |
Cash and cash equivalents at end of period | $ 631,042 | $ 290,484 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2018 | |
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 materially consistent with the Company's March 31, 2018 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, 2018 , which was filed with the SEC on May 9, 2018 . The results of operations for the interim period ended June 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year or any future period. The Company's operating results for the reported periods do not include Polycom as the Acquisition was completed subsequent to the quarter ended June 30, 2018, refer to Note 16. Subsequent Events for details. 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 and prior fiscal years end on March 31, 2019 and April 1, 2018 , respectively, and both consist of 52 weeks. The Company’s results of operations for the three months ended June 30, 2018 and July 2, 2017 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. Refer to Note 2, Recent Accounting Pronouncements , for details regarding reclassifications made in the Company's condensed consolidated financial statements pursuant to the adoption of the contracts with customers (Topic 606) accounting guidance in the first quarter of Fiscal Year 2019. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Pronouncements In February 2016, the FASB issued guidance regarding both operating and financing leases, requiring lessees to recognize on their balance sheets "right-of-use assets" and corresponding lease liabilities, measured on a discounted basis over the lease term. Virtually all leases will be subject to this treatment except leases that meet the definition of a "short-term lease". For expense recognition, the dual model requiring leases to be classified as either operating or finance leases has been retained from the prior standard. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. Classification will use criteria very similar to those applied in current lease accounting, but without explicit bright lines. Extensive additional quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of expense recognized and expected to be recognized. The new lease guidance will essentially eliminate off-balance sheet financing. The guidance is effective for the Company's fiscal year ending March 31, 2020. The new standard must be adopted using a modified retrospective transition that provides for certain practical expedients and requires the new guidance to be applied at the beginning of the earliest comparative period presented. The Company expects adoption of this guidance will materially increase the assets and liabilities recorded on its consolidated balance sheets, but is still evaluating the impact on its consolidated financial statements and related disclosures. In June 2016, the FASB issued guidance regarding the measurement of credit losses on financial instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. The guidance is effective for the Company's fiscal year ending March 31, 2021 with early adoption permitted beginning in the first quarter of Fiscal Year 2020. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued guidance that simplifies the process required to test goodwill for impairment. The guidance is effective for the Company's fiscal year ending March 31, 2021, and is not expected to have a material impact on the Company's consolidated financial statements or related disclosures. In March 2017, the FASB issued guidance related to the amortization of premiums on purchased callable debt securities. This guidance shortens the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date instead of the maturity date. This guidance is effective for the Company's fiscal year ending March 31, 2020, including interim periods within that year. The Company does not expect the adoption of this guidance to have any impact to its consolidated financial statements. In August 2017, the FASB issued guidance that eliminates the requirement to separately measure and report hedge ineffectiveness and that generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements, and modifies certain disclosure requirements. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. This guidance is effective for the Company's fiscal year ending March 31, 2020, including interim periods within that year. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures, but expects the impact to be immaterial. Recently Adopted Pronouncement Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these consolidated financial statements. The Company adopted Topic 606 Revenue from Contracts with Customers to all contracts not completed as of the initial application date of April 1, 2018. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the modified retrospective method - i.e. by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings at April 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported in accordance with its historic accounting under Topic 605. The details of the significant changes and quantitative impact of the changes are set out below. • Software Revenue: The Company historically deferred revenue for the value of software where vendor specific objective evidence ("VSOE") of fair value had not been established for undelivered items. Under Topic 606, revenue for such licenses is recognized at the time of delivery, rather than ratably, as the VSOE requirement no longer applies and the value of the remaining services are not material in the context of the contract. All deferred revenue pertaining to such licenses was eliminated as a cumulative effect adjustment of implementing the new standard. • Marketing Development Funds: The Company frequently provides marketing development funds to its distributor and retail customers. Historically, its marketing development funds were recognized as a reduction of revenue at the later of when the related revenue is recognized or when the program is offered to the channel partner. Applying the criteria of Topic 606, these marketing development programs qualify as variable consideration, and are assigned as a reduction of the transaction price of the contract. This results in a timing difference such that all or some of the funds related to a program may be recognized in different periods than under Topic 605, depending on the circumstances. • Discount, Rebates and Pricing Reserves: The Company establishes reserves for Discounts and Rebates at the end of each fiscal period. These reserves are estimated based on current relevant and historical data, but there can be some variability associated with unforeseen changes in customer claim patterns. Under Topic 606, in cases where there is uncertainty around the variable consideration amount, a constraint on that consideration must be considered. The impact of this constraint may result in slightly higher reserves than were recorded under the legacy methodology. The Company has historically recorded reserves for customer-related pricing protection which is based on contractual terms and the legal interpretation thereof. Topic 606 prescribes an “expected value” method to estimating variable consideration which involves the sum of probability-weighted amounts for a range of possible outcomes. Applying this method may result in a slightly lower reserve than the reserves under legacy methodology. Additionally, the balance sheet presentation of certain reserve balances previously shown net within accounts receivable are now presented as refund liabilities within current liabilities. The cumulative effect of the changes made to the Company's consolidated April 1, 2018 balance sheet for the adoption of Topic 606 was as follows (in thousands): March 31, Adjustments due to Topic 606 (increase/(decrease)) April 1, ASSETS Current assets: Accounts receivable, net $ 152,888 $ 14,221 $ 167,109 Total Current assets 899,726 14,221 913,947 Deferred tax and other assets 19,534 (493 ) 19,041 Total assets $ 1,076,887 $ 13,728 $ 1,090,615 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 80,097 $ 11,133 $ 91,230 Total current liabilities 125,514 11,133 136,647 Total liabilities $ 723,917 $ 11,133 $ 735,050 Commitments and contingencies (Note 6) Stockholders' equity: Retained earnings $ 299,066 $ 2,595 $ 301,661 Total stockholders' equity before treasury stock 1,179,397 2,595 1,181,992 Total stockholders' equity 352,970 2,595 355,565 Total liabilities and stockholders' equity $ 1,076,887 $ 13,728 $ 1,090,615 The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated financial statements for the quarter ended June 30, 2018: June 30, 2018 As Reported Adjustments due to Topic 606 (increase/(decrease)) June 30, 2018 Without Adoption of Topic 606 ASSETS Current assets: Accounts receivable, net $ 161,529 $ (15,463 ) $ 146,066 Total Current assets 930,121 (15,463 ) 914,658 Deferred tax and other assets 14,712 493 15,205 Total assets $ 1,099,908 $ (14,970 ) $ 1,084,938 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 75,278 $ (12,224 ) $ 63,054 Total current liabilities 125,627 (12,224 ) 113,403 Total liabilities $ 725,375 $ (12,224 ) $ 713,151 Commitments and contingencies (Note 6) Stockholders' equity: Retained earnings $ 311,241 $ (2,746 ) $ 308,495 Total stockholders' equity before treasury stock 1,213,995 (2,746 ) 1,211,249 Total stockholders' equity 374,533 (2,746 ) 371,787 Total liabilities and stockholders' equity $ 1,099,908 $ (14,970 ) $ 1,084,938 CONSOLIDATED STATEMENTS OF OPERATIONS June 30, Adjustments due to Topic 606 (increase/(decrease)) June 30, Net revenues $ 221,309 $ (152 ) $ 221,157 Gross profit $ 109,843 $ (152 ) $ 109,691 Operating expenses Operating income $ 20,649 $ (152 ) $ 20,497 Income before income taxes $ 15,318 $ (152 ) $ 15,166 Net income $ 14,471 $ (152 ) $ 14,319 Earnings per common share: Basic $ 0.43 $ — $ 0.43 Diluted $ 0.42 $ — $ 0.42 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Selected Line Items (in thousands) (Unaudited) June 30, Adjustments due to Topic 606 June 30, Net income $ 14,471 $ (152 ) $ 14,319 Comprehensive income $ 18,187 $ (152 ) $ 18,035 Adoption of the standards related to revenue recognition had no impact to cash from or used in operating, financing, or investing on the Company's consolidated cash flows statements . In January 2016, the FASB issued guidance regarding the recognition and measurement of financial assets and liabilities. Changes to the current U.S. GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The Company adopted the standard in the first quarter of its fiscal year ending March 31, 2019. The adoption of this standard had no material impact on the Company's consolidated financial statements and related disclosures. In May 2017, the FASB issued guidance that clarifies the scope of modification accounting with respect to changes to the terms or conditions of a share-based payment award. This guidance is effective for the Company's fiscal year ending March 31, 2019, including interim periods within that year. The Company adopted the standard in the first quarter of its fiscal year ending March 31, 2019. The adoption of this standard had no impact on the Company's consolidated financial statements and related disclosures as there were no modifications to awards during the quarter ended June 30, 2018. |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 3 Months Ended |
Jun. 30, 2018 | |
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’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents or short-term investments as of June 30, 2018 and March 31, 2018 (in thousands): June 30, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 631,042 $ — $ — $ 631,042 $ 631,042 $ — Level 1: Mutual Funds 13,813 376 (42 ) 14,147 — 14,147 US Treasury Notes — — — — — — Money Market Funds — — — — — — Subtotal 13,813 376 (42 ) 14,147 — 14,147 Total cash, cash equivalents $ 644,855 $ 376 $ (42 ) $ 645,189 $ 631,042 $ 14,147 March 31, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 308,734 $ — $ — $ 308,734 $ 308,734 $ — Level 1: Mutual Funds 13,336 186 (67 ) 13,455 — 13,455 US Treasury Notes 129,373 7 (60 ) 129,320 30,178 99,142 Money Market Funds 344 — — 344 344 — Subtotal 143,053 193 (127 ) 143,119 30,522 112,597 Level 2: Government Agency Securities 46,354 — (56 ) 46,298 6,978 39,320 Municipal Bonds 3,591 — — 3,591 3,591 — Commercial Paper 84,512 — — 84,512 40,836 43,676 Corporate Bonds 54,701 — (212 ) 54,489 — 54,489 Certificates of Deposits ("CDs") 19,231 — — 19,231 — 19,231 Subtotal 208,389 — (268 ) 208,121 51,405 156,716 Total cash, cash equivalents $ 660,176 $ 193 $ (395 ) $ 659,974 $ 390,661 $ 269,313 As of June 30, 2018 and March 31, 2018 , 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. For more information regarding the Company's deferred compensation plan, refer to Note 4 , Deferred Compensation . The Company did not incur any material realized or unrealized gains or losses in the three months ended June 30, 2017 and 2018 . There were no transfers between fair value measurement levels during the three months ended June 30, 2017 and 2018 . 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 US Treasury Notes. 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, Certificates of Deposits ("CDs"), 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 12 , Foreign Currency Derivatives . 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 5.50% Senior Notes, refer to Note 7 , Debt. Level 3 The Company's unsecured revolving credit facility falls under the Level 3 hierarchy. The fair value of the Company’s line of credit approximates its carrying value because the interest rate is variable and approximates rates currently available to the Company. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 3 Months Ended |
Jun. 30, 2018 | |
Compensation Related Costs [Abstract] | |
DEFERRED COMPENSATION | DEFERRED COMPENSATION As of June 30, 2018 , the Company held investments in mutual funds totaling $14.1 million , all of which related to debt and equity securities that are held in rabbi trusts under non-qualified deferred compensation plans. The total related deferred compensation liability was $14.8 million at June 30, 2018 . As of March 31, 2018 , the Company held investments in mutual funds totaling $13.5 million . The total related deferred compensation liability at March 31, 2018 was $14.1 million . The bank deposits are recorded on the condensed consolidated balance sheets under "cash and cash equivalents". The securities are classified as trading securities and are recorded on the condensed consolidated balance sheets under "short-term investments". The liability is recorded on the condensed consolidated balance sheets under "other long-term liabilities" and "accrued liabilities". |
DETAILS OF CERTAIN BALANCE SHEE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 3 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net: March 31, June 30, (in thousands) 2018 2018 Accounts receivable $ 202,270 $ 201,590 Provisions for returns (10,225 ) — 1 Provisions for promotions, rebates, and other (38,284 ) (38,910 ) 1 Provisions for doubtful accounts and sales allowances (873 ) (1,151 ) Accounts receivable, net $ 152,888 $ 161,529 (1) Upon adoption of ASC 606, the provision for returns and certain provisions for promotions, rebates and other were reclassified to accrued liabilities as these reserve balances are considered refund liabilities. Refer to Note 2, Recent Accounting Pronouncements, for additional information on the adoption impact. Inventory, net: March 31, June 30, (in thousands) 2018 2018 Raw materials $ 28,789 $ 30,554 Work in process 450 138 Finished goods 39,037 37,446 Inventory, net $ 68,276 $ 68,138 Accrued Liabilities: March 31, June 30, (in thousands) 2018 2018 Employee compensation and benefits $ 28,599 $ 23,326 Accrued interest on 5.50% Senior Notes 10,331 3,437 Warranty obligation 7,550 7,652 Provisions for returns — 11,526 1 Provisions for promotions, rebates, and other 1,750 6,279 1 VAT/Sales tax payable 5,353 5,709 Derivative liabilities 2,947 228 Accrued other 23,567 17,121 Accrued liabilities $ 80,097 $ 75,278 (1) Upon adoption of ASC 606, the provision for returns and certain provisions for promotions, rebates and other were reclassified to accrued liabilities as these reserve balances are considered refund liabilities. Refer to Note 2, Recent Accounting Pronouncements, for additional information on the adoption impact. 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, 2017 and 2018 were as follows: Three Months Ended (in thousands) 2017 2018 Warranty obligation at beginning of period $ 8,697 $ 9,604 Warranty provision related to products shipped 2,210 2,562 Deductions for warranty claims processed (2,424 ) (2,634 ) Adjustments related to preexisting warranties 44 200 Warranty obligation at end of period (1) $ 8,527 $ 9,732 (1) Includes both short-term and long-term portion of warranty obligation; the prior table shows only the short-term portion included in accrued liabilities on the Company's condensed consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2018 | |
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, 2018 , the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $201.0 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 indemnification to customers against claims related to undiscovered liabilities, additional product liability, or environmental obligations. The Company has also entered into indemnification agreements with its directors, officers and certain other personnel 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 or certain of its affiliated entities. The Company maintains director and officer liability insurance, which may cover certain liabilities arising from its obligation to indemnify its directors, officers and certain other personnel 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") filed a complaint against the Company in the United States District Court for the District of Delaware (“Court”), alleging violations of Sections 1 and 2 of the Sherman Act, Section 3 of the Clayton Act, and tortious interference with business relations in connection with the Company’s distribution of corded and wireless headsets. The case was assigned to Judge Leonard P. Stark. GN sought injunctive relief, total damages in an unspecified amount, plus attorneys’ fees and costs, as well as unspecified legal and equitable relief. GN generally alleged that the Company’s alleged exclusive dealing arrangements with certain distributors stifled competition in the relevant market. In July 2016, the Court issued a sanctions order against Plantronics in the amount of approximately $4.9 million for allegations of spoliation of evidence. The case was tried to a jury in October 2017, resulting in a verdict in favor of the Company. GN filed a motion for new trial in November 2017, and that motion was denied by the Court in January 2018. The Company filed a motion for attorneys’ fees in November 2017, and that motion was denied by the Court in January 2018. The Company also filed a motion for certain recoverable costs, and the parties stipulated to an amount of approximately $0.2 million which GN paid the Company. If the jury verdict were to be appealed and later overturned on appeal, the Company would have to repay that amount to GN. On February 12, 2018, GN filed a notice of intent to appeal both the denial of the new trial motion and the Court’s July 2016 spoliation order. The Court set a briefing schedule for the parties to file their appellate briefs with GN’s Appeal Brief due on July 6, 2018, the Company’s Responsive Brief due on August 6, 2018, and GN’s Reply Brief due on August 20, 2018. The U.S. Securities and Exchange Commission and the U.S. Department of Justice are conducting investigations into possible violations of the U.S. Foreign Corrupt Practices Act by Polycom, relating to conduct prior to its July 2, 2018 acquisition by Plantronics. Polycom is cooperating with these agencies regarding these matters. Plantronics is unable to estimate the duration, scope or outcome of these investigations or the probability or range of any potential loss. Any potential liability would be expected to be reimbursed through funds retained in escrow 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, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT 5.50% Senior Notes In May 2015, the Company issued $500.0 million aggregate principal amount of 5.50% senior notes (the “5.50% Senior Notes”). The 5.50% Senior 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, commencing on November 15, 2015. The Company received net proceeds of $488.4 million from the issuance of the 5.50% Senior Notes, net of issuance costs of $11.6 million which are being amortized to interest expense over the term of the 5.50% Senior Notes using the effective interest method. A portion of the proceeds was used to repay all then-outstanding amounts under the Company's revolving line of credit agreement with Wells Fargo Bank and the remaining proceeds were used primarily for share repurchases. 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 5.50% Senior Notes when available (Level 2). The estimated fair value and carrying value of the 5.50% Senior Notes were as follows: March 31, 2018 June 30, 2018 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 497,095 $ 492,509 $ 500,650 $ 492,871 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 105.50% (1) If the Company redeems the notes prior to the applicable date, the redemption 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 the Company's ability to create certain liens and enter into sale and leaseback transactions; create, assume, incur, or guarantee additional indebtedness of its subsidiaries without such subsidiary guaranteeing the 5.50% Senior Notes on an unsecured unsubordinated basis; and consolidate or merge with, or convey, transfer or lease all or substantially all of the assets of the Company and its subsidiaries to another person. As of June 30, 2018 , the Company was in compliance with all covenants. Revolving 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 April 28, 2017 (as amended, the "Amended Credit Agreement") to extend the term of the May 2011 Credit Agreement by one year to May 9, 2020 , and to amend certain of the covenants, which are defined below. The Amended Credit Agreement provides for a $100.0 million unsecured revolving credit facility. Revolving loans under the Amended 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 of April, July, October and January. Principal, together with all accrued and unpaid interest, on the revolving loans is due and payable on May 9, 2020 . 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 of April, July, October and January. The Company may prepay the loans and terminate the commitments under the Amended Credit Agreement at any time, without premium or penalty, subject to the reimbursement of certain costs. As of March 31, 2018 and June 30, 2018 , the Company had no outstanding borrowings on the line of credit. The Amended 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 Amended Credit Agreement also requires the Company to comply with certain financial covenants, including (i) a maximum ratio of funded debt to EBITDA of 3.25 :1 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 Amended Credit Agreement at the end of each fiscal quarter of at least $300.0 million . The Amended 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 Amended Credit Agreement. As of March 31, 2017 and June 30, 2018 , the Company was in compliance with all covenants. In connection with the Acquisition on July 2, 2018, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (the “Credit Agreement”). The Credit Agreement replaced the Company’s existing revolving credit facility in its entirety. Refer to Note16, Subsequent Events , for details regarding the new Credit Agreement. |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | 3 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) As of June 30, 2018 , the remaining obligation related to severance amounts due is immaterial and will be settled within 12 months. During the quarter ended June 30, 2018 , the Company executed a restructuring plan aimed at realigning its sales organization structure as part of a broader strategic objective to improve sales management and ensure proper investment across its geographic regions. The associated charges are recorded in restructuring and other related charges expense in the condensed consolidated statements of operations, as follows (in millions): Three Months Ended (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General, and Administrative Severance benefits from reduction-in-force $ 1.3 $ 1.3 $ — $ — During the first quarter of Fiscal Year 2018 and as part of its ongoing effort to reduce costs, improve profitability, and focus on its key strategic initiatives, the Company executed an asset sale agreement to dispose of substantially all assets of its Clarity division, primarily inventories and tooling fixed assets, for an immaterial sales price. The buyer in this arrangement was a former employee of Plantronics, who acted as Clarity's President but who was not an executive officer or director of the Company. As part of the buyer's separation from Plantronics, the Company accelerated vesting on his outstanding restricted stock, resulting in an immaterial stock-compensation modification charge. In connection with the sale, the Company leased the facility it owns in Chattanooga, Tennessee, to the buyer. The Company also entered into a transition services agreement with the buyer to provide customer support services on a cost-recovery basis, which are not expected to be material. The Company also recorded immaterial impairment charges on assets previously used in Clarity operations that have no further value to the Company. In addition to the sale of the Clarity division and the related restructuring actions, the Company reduced headcount in certain divisions and terminated a lease in the Netherlands before the end of its contractual term, resulting in a charge equal to the present value of the remaining future minimum lease payments. In connection with this exit, the Company wrote off certain fixed assets that will no longer be used. Finally, the Company reorganized its Brazilian operations and as a result, wrote off an unrecoverable indirect tax asset. As of June 30, 2017, the remaining obligation related to severance amounts due was immaterial and settled within 12 months. The associated charges were recorded in restructuring and other related charges (credits), cost of revenues, and selling, general, and administrative expense in the condensed consolidated statements of operations, as follows (in millions): Three Months Ended Description Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General, and Administrative Severance benefits from reduction-in-force $ 1.5 $ 1.5 $ — $ — Lease exit charge and asset impairments in Netherlands 0.7 0.7 — — Write-off of unrecoverable indirect tax asset in Brazil 0.7 — 0.7 Asset impairments related to previous Clarity operations 0.4 0.4 — — Loss on Clarity asset sale 0.9 — 0.9 — Accelerated vesting of restricted stock 0.2 — — 0.2 Totals $ 4.4 $ 2.6 $ 1.6 $ 0.2 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2018 | |
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) 2017 2018 Cost of revenues $ 902 $ 963 Research, development, and engineering 2,101 2,222 Selling, general, and administrative 6,253 4,965 Stock-based compensation included in operating expenses 8,354 7,187 Total stock-based compensation 9,256 8,150 Income tax expense (benefit) (4,849 ) (3,754 ) Total stock-based compensation, net of tax $ 4,407 $ 4,396 |
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES | 3 Months Ended |
Jun. 30, 2018 | |
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, 2017 and 2018 are discussed below. As of June 30, 2018 , there remained 730,105 shares authorized for repurchase under the repurchase program approved by the Board on July 27, 2017 . There were no remaining shares authorized under previously approved programs. In the three months ended June 30, 2018 , the Company did not repurchase any shares. In the three months ended June 30, 2017 the Company repurchased 252,707 shares of its common stock in the open market for a total cost of $13.5 million , and at an average price per share of $53.39 . In addition, the Company withheld shares valued at $10.5 million and $13.0 million in the three months ended June 30, 2017 and 2018 , 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, 2018 | |
Equity [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) March 31, 2018 June 30, 2018 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (1,663 ) $ 1,900 Accumulated foreign currency translation adjustments 4,685 4,685 Accumulated unrealized gain (loss) on investments (152 ) — Accumulated other comprehensive income $ 2,870 $ 6,585 (1) Refer to Note 12 , Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and June 30, 2018 . |
FOREIGN CURRENCY DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 3 Months Ended |
Jun. 30, 2018 | |
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 Company does not purchase derivative financial instruments for speculative trading purposes. 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, 2018 . 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, 2018 , the Company had International Swaps and Derivatives Association (ISDA) agreements with four applicable banks and financial institutions which contained 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 March 31, 2018 and June 30, 2018 , no cash collateral had been received or pledged related to these derivative instruments. The gross fair value of the Company's outstanding derivative contracts at the end of each period was as follows: (in thousands) March 31, 2018 June 30, 2018 Derivative Assets (1) Non-designated hedges $ 218 $ 474 Cash flow hedges 554 2,980 Total Derivative Assets $ 772 $ 3,454 Derivative Liabilities (2) Non-designated hedges $ 34 $ 20 Cash flow hedges 3,003 297 Total Derivative Liabilities $ 3,037 $ 317 (1) Short-term derivative assets are recorded in "other current assets" and long-term derivative assets are recorded in "deferred tax and other assets". As of June 30, 2018 the portion of derivative assets classified as long-term was immaterial. (2) Short-term derivative liabilities are recorded in "accrued liabilities" and long-term derivative liabilities are recorded in "other long-term liabilities". As of June 30, 2018 the portion of derivative liabilities classified as long-term was immaterial. Non-Designated Hedges As of June 30, 2018 , 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, 2018 : (in thousands) Local Currency USD Equivalent Position Maturity EUR € 38,000 $ 44,439 Sell EUR 1 month GBP £ 9,760 $ 12,895 Sell GBP 1 month AUD A$ 15,800 $ 11,680 Sell AUD 1 month CAD C$ 2,100 $ 1,596 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 other non-operating income and (expense), net in the condensed consolidated statements of operations was as follows: Three Months Ended (in thousands) 2017 2018 Gain (loss) on foreign exchange contracts $ (3,133 ) $ (4,152 ) 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 six 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. The Company also enters into cash flow forwards with a three month term. 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 notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: March 31, 2018 June 30, 2018 (in millions) EUR GBP EUR GBP Option contracts €77.8 £23.7 €77.9 £25.6 Forward contracts €16.7 £3.7 €18.0 £6.1 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. As of March 31, 2018 and June 30, 2018 , the Company had foreign currency swap contracts of approximately MXN 31.8 million and MXN 0.0 million , respectively. The Company had no outstanding MXN cross-currency swaps as at June 30, 2018 . 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, 2017 and 2018 : Three Months Ended (in thousands) 2017 2018 Gain (loss) included in AOCI as of beginning of period $ 541 $ (1,693 ) Amount of gain (loss) recognized in other comprehensive income (“OCI”) (effective portion) (2,345 ) 3,956 Amount of gain (loss) reclassified from OCI into net revenues (effective portion) 18 (249 ) Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) 42 (79 ) Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) 60 (328 ) Gain (loss) included in AOCI as of end of period $ (1,744 ) $ 1,935 During the three months ended June 30, 2017 and 2018 the Company recognized an immaterial gain and immaterial loss on the ineffective portion of its cash flow hedges, respectively, which is reported in other non-operating income and (expense), net in the condensed consolidated statements of operations. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2018 | |
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 rates for the three months ended June 30, 2017 and 2018 were (10.4)% and 5.5% , respectively. On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) (the “Act”) was signed into law in the United States. The Act includes several changes to existing tax law, including, among other things, a permanent reduction in the corporate income tax rate from 35% to 21% and applying new taxes on certain foreign source earnings. Although the Company benefited from the lower 21% applied to certain earnings for the three months ended June 30, 2018, income tax expense increased due to lower discrete excess tax benefits from stock based compensation for the three months ended June 30, 2018 and a one-time tax benefit recognized in the three months ended June 30, 2017 for an out-of-period correction. As a result of the Act, the Company was also subject to a one-time deemed repatriation of accumulated foreign subsidiary unremitted earnings (hereafter, the "toll charge"), which the Company will elect to pay over an eight-year period as permitted under the Act. The Company recorded a $79.7 million toll charge as part of income tax expense for the Fiscal year ended March 31, 2018, representing a provisional estimate based on a 15.5% tax applied to foreign unremitted cash and cash equivalents and an 8% tax applied to excess unremitted foreign subsidiary earnings. In accordance with SAB 118, the provisional estimate for the toll charge will be finalized when the Company completes its substantive review of unremitted foreign earnings through examination of statutory filings and tax returns of the Company's foreign subsidiaries and fiscal branches that span a 30 -year period. The Company must also analyze the impact of foreign exchange rates and inflation on the historical information to support foreign tax credits available to offset the toll charge. In addition, the Company's estimate of the toll charge obligation may change due to legislative technical corrections, the IRS' promulgation of regulations to interpret the Act, and changes in accounting standards for income taxes or related interpretations in response to the Act. This review and finalization of the toll charge provisional estimate will be completed within a twelve month measurement period from the date of enactment. Income tax expense for the three months ended June 30, 2018, reflected a $4.3 million annual estimate for the tax on global intangible low-taxed income enacted by the Act. For the global intangible low-taxed income provisions of the Act, the Company has not yet elected an accounting policy with respect to either recognize deferred taxes for basis differences expected to reverse as global intangible low-taxed income, or to record such as period costs if and when incurred. The Company will continue to assess forthcoming guidance and accounting interpretations on the effects of the Tax Act and expects to complete its analysis within the measurement period in accordance with the SEC guidance. Included in long-term income taxes payable in the condensed consolidated balance sheets as of March 31, 2018 and June 30, 2018 were unrecognized tax benefits of $12.6 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 $1.4 million and $1.5 million as of March 31, 2018 and June 30, 2018 , respectively. No penalties have been accrued. The Company and its subsidiaries are subject to taxation in the U.S. federal and various foreign and state jurisdictions. The Company’s Fiscal Year 2016 federal income tax return is currently under examination by the Internal Revenue Service. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2013. 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 (LOSS)
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE | COMPUTATION OF EARNINGS PER COMMON SHARE Basic and diluted earnings per share are computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each period. 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. Prior to the second quarter of Fiscal Year 2018, the impact of the two-class method was not considered material and therefore, earnings per share was reported as calculated under the treasury stock method. Had the Company reported earnings per share under the two-class method, basic and diluted earnings per share would have been $0.56 and $0.55 , respectively, for the three months ended June 30, 2017 instead of the reported amounts of $0.58 and $0.57 , respectively. The following table sets forth the computation of basic and diluted earnings per common share for the three months ended June 30, 2017 and 2018 : Three Months Ended June 30, (in thousands, except per share data) 2017 2018 Basic earnings per common share: Numerator: Net income $ 18,828 $ 14,471 Income allocated to participating securities, basic n/a (325 ) Net income attributable to common shareholders, basic $ 18,828 $ 14,146 Denominator: Weighted average common shares, basic 32,506 32,594 Basic earnings per common share $ 0.58 $ 0.43 Diluted earnings per common share: Numerator: Net income attributable to common shareholders, basic $ 18,828 $ 14,146 Net effect of reallocating undistributed earnings of unvested shareholders n/a 6 Net income attributable to common shareholders, diluted $ 18,828 $ 14,152 Denominator: Weighted average common shares-basic 32,506 32,594 Dilutive effect of employee equity incentive plans 705 940 Weighted average common shares, diluted 33,211 33,534 Diluted earnings per common share $ 0.57 $ 0.42 Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive 457 202 |
REVENUE AND MAJOR CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 3 Months Ended |
Jun. 30, 2018 | |
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. With respect to headsets, it makes products for use in offices and contact centers, with mobile devices, cordless phones, and with computers and gaming consoles. Major product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems; and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer ("PC") and gaming headsets. The Company operates as a single operating segment and the following table disaggregates revenues by major product category for the three months ended June 30, 2017 and 2018 : Three Months Ended (in thousands) 2017 2018 Net revenues from unaffiliated customers: Enterprise $ 154,605 $ 167,642 Consumer 49,321 53,667 Total net revenues $ 203,926 $ 221,309 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, 2017 and 2018 . The following table presents net revenues by geography: Three Months Ended (in thousands) 2017 2018 Net revenues from unaffiliated customers: U.S. $ 108,810 $ 113,986 Europe and Africa 54,816 63,590 Asia Pacific 23,884 26,871 Americas, excluding U.S. 16,416 16,862 Total international net revenues 95,116 107,323 Total net revenues $ 203,926 $ 221,309 One customer, Ingram Micro Group, accounted for 11.9% of net revenues for the three months ended June 30, 2017 . One customer, D&H Distributors, accounted for 9.5% of net revenues for the three months ended June 30, 2018 . Two customers, D&H Distributors and Ingram Micro Group, accounted for 13.0% and 12.4% , respectively, of total net accounts receivable at March 31, 2018 . One customer, D&H Distributors, accounted for 12.2% of total net accounts receivable at June 30, 2018 . Revenue is recognized when obligations under the terms of a contract with the Company's customer are satisfied; generally this occurs with the transfer of control of its products or services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The majority of its business relates to physical product shipments representing a single performance obligation, for which revenue is generally recognized once title and risk of loss of the product are transferred to the customer. The Company believes that transfer of title and risk of loss best represent the moment at which the customer’s ability to direct the use of and obtain substantially all the benefits of an asset have been achieved. The Company has elected to recognize the cost for freight and shipping when control over products have transferred to the customer as an expense in Cost of Revenues. The Company's cloud-based and hosted subscription services, which currently represent a smaller portion of its business, are recognized on a pro-rata basis over the respective subscription terms which are on average one year in length. The Company believes this recognition period faithfully depicts the pattern of transfer of control for these services as they are provided in even increments on a constant and daily basis. On occasion, the Company will fulfill only part of a purchase order due to lack of current availability for one or more items requested on an order. Its practice is to ship what is on hand, with the remaining goods shipped once the product is in stock which is generally less than one year from the date of the order. Depending on the terms of the contract, undelivered or backordered items may be canceled by either party at their discretion. For contracts with performance obligations with an expected duration of one year or less, the Company has elected the practical expedient allowed under Topic 606 to exclude disclosure of the transaction price allocated to unfulfilled partial orders and undelivered cloud-based and hosted subscription services at the end of the period, including any estimates of return, rebates, discounts or similar incentives applicable to any undelivered items. The value of contracts with performance obligations with an expected duration exceeding one year are not considered significant. Upon establishment of creditworthiness, the Company may extend credit terms to its customers which typically ranges between 30 and 90 days from the date of invoice depending on geographic region and type of customer. The Company bills upon product shipment or activation of service. None of its contracts are deemed to have significant financing components. Sales, value add, and other taxes collected concurrent with revenue producing activities are excluded from revenue. Commercial distributors and retailers represent the Company's largest sources of net revenues. Sales through its distribution and retail channels are made primarily under agreements allowing for rights of return and include various sales incentive programs, such as back end rebates, discounts, marketing development funds, price protection, and other sales incentives. The Company has an established sales history for these arrangements and we record the estimated reserves at the inception of the contract as a reflection of the reduced transaction price. Customer sales returns are estimated based on historical data, relevant current data, and the monitoring of inventory build-up in the distribution channel. Revenue reserves represent a reasonable estimation made by management, but may differ from actual returns or incentives provided, due to unforeseen customer return or claim patterns or changes in circumstances. For certain customer contracts which have historically demonstrated variability, we have considered the likelihood of being under-reserved and have increased its reserves accordingly. Provisions for Sales Returns are presented within Accrued Liabilities in the Company's Consolidated Balance Sheets. Provisions for promotions, rebates, and other sales incentives are presented as a reduction of Accounts Receivable unless there is no identifiable right offset, in which case they are presented within Accrued Liabilities on its Consolidated Balance Sheets. Refer to Note 5, Details of Certain Balance Sheet Accounts for additional details . For certain arrangements, the Company pays commission and bonuses associated with obtaining the contracts. Given the short-term nature of these commissions and the amortization period, the Company has elected to use the practical expedient to record these incremental costs as an expense when incurred. Incremental costs of obtaining contracts with an amortization period of greater than one year are considered insignificant. As of June 30, 2018, the Company had no material contract assets and contract liabilities recorded on the Consolidated Balance Sheet. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Polycom Acquisition On July 2, 2018, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of Polycom. The Acquisition was consummated in accordance with the terms and conditions of the previously announced Purchase Agreement, dated March 28, 2018, among the Company, Triangle and Polycom. Prior to closing, the Company paid cash of $33.6 million which is recognized as a prepaid asset within Other Current Assets on the condensed consolidated Balance Sheet at June 30, 2018, this amount was subsequently applied to the Acquisition on July 2, 2018. At the closing of the Acquisition, Plantronics acquired Polycom for $2.0 billion with the total consideration consisting of (1) approximately 6.4 million shares of the Company's common stock (the "Stock Consideration") and (2) approximately $1.6 billion in cash (the "Cash Consideration"), resulting in Triangle, which was Polycom’s sole shareholder, owning approximately 16.0% of Plantronics following the acquisition. The consideration paid at closing is also subject to a working capital adjustment. The Company financed the Cash Consideration by using available cash-on-hand and funds drawn from the Company's new term loan facility which is described further below. Portions of the Stock Consideration and Cash Considerations were each deposited into separate escrow accounts to secure certain indemnification obligations of Triangle pursuant to the Purchase Agreement. In connection with the Acquisition, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (the “Credit Agreement”). The Credit Agreement replaced the Company’s existing revolving credit facility in its entirety. The Credit Agreement provides for (i) a revolving credit facility with an initial maximum aggregate amount of availability of $100 million that matures in July 2023 and (ii) a 1.275 billion term loan facility priced at LIBOR plus 250bps due in quarterly principal installments commencing on December 28, 2018 for the aggregate principal amount funded on the Closing Date multiplied by 0.25% (subject to prepayments outlined in the Credit Agreement) and all remaining outstanding principal due at maturity in July 2025. On July 2, 2018, the Company borrowed the full amount available under the term loan facility of $1.245 billion , net of approximately $30 million of discounts and issuance costs. Proceeds from the initial borrowing under the Credit Agreement were used to finance the acquisition of Polycom, to refinance certain debt of the Company and Polycom, to pay related fees, commissions, transaction costs and expenses and for general corporate purposes. The Company has additional borrowing capacity under the Credit Agreement through the revolving credit facility which could be used to provide ongoing working capital and capital for other general corporate purposes of the Company and its subsidiaries. The Company’s obligations under the Credit Agreement are currently guaranteed by Polycom and will from time to time be guaranteed by, subject to certain exceptions, any domestic subsidiaries that may become material in the future. The Credit Agreement contains various restrictions and covenants, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions on the ability of the Company and certain of its subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions, make investments and pay dividends and other distributions. The Credit Agreement also includes certain financial covenants applicable to the revolving credit facility only. The purchase price allocation for the Acquisition is not yet complete as of the time of this filing. Therefore, the fair value of assets acquired and liabilities assumed are still being appraised by a third-party and have not yet been finalized. The Company is unable to provide pro-forma revenues and earnings of the combined entity as of the time of this filing. This information will be included in the Company's Quarterly Report on Form 10-Q for the quarter ending September 29, 2018. Interest Rate Swap On July 30, 2018, the Company entered into a 4 -year amortizing interest rate swap agreement with Bank of America, NA. The swap has an initial notional amount of $831 million and matures on July 31, 2022. The purpose of this swap is to manage the Company's interest rate risk by managing its mix of fixed-rate and floating-rate debt. The swap involves the receipt of floating-rate amounts for fixed interest rate payments over the life of the agreement. The Company is currently evaluating the impact of this agreement on its financial statements. Dividends On August 6, 2018 , the Company announced that its Audit Committee had declared and approved the payment of a dividend of $0.15 per share on September 10, 2018 to holders of record on August 20, 2018 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 materially consistent with the Company's March 31, 2018 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, 2018 , which was filed with the SEC on May 9, 2018 . The results of operations for the interim period ended June 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year or any future period. The Company's operating results for the reported periods do not include Polycom as the Acquisition was completed subsequent to the quarter ended June 30, 2018, refer to Note 16. Subsequent Events for details. The financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Fiscal period | The Company’s fiscal year ends on the Saturday closest to the last day of March. The Company’s current and prior fiscal years end on March 31, 2019 and April 1, 2018 , respectively, and both consist of 52 weeks. The Company’s results of operations for the three months ended June 30, 2018 and July 2, 2017 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 PRONOUNCEME23
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of the changes made to the Company's consolidated April 1, 2018 balance sheet for the adoption of Topic 606 was as follows (in thousands): March 31, Adjustments due to Topic 606 (increase/(decrease)) April 1, ASSETS Current assets: Accounts receivable, net $ 152,888 $ 14,221 $ 167,109 Total Current assets 899,726 14,221 913,947 Deferred tax and other assets 19,534 (493 ) 19,041 Total assets $ 1,076,887 $ 13,728 $ 1,090,615 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 80,097 $ 11,133 $ 91,230 Total current liabilities 125,514 11,133 136,647 Total liabilities $ 723,917 $ 11,133 $ 735,050 Commitments and contingencies (Note 6) Stockholders' equity: Retained earnings $ 299,066 $ 2,595 $ 301,661 Total stockholders' equity before treasury stock 1,179,397 2,595 1,181,992 Total stockholders' equity 352,970 2,595 355,565 Total liabilities and stockholders' equity $ 1,076,887 $ 13,728 $ 1,090,615 The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated financial statements for the quarter ended June 30, 2018: June 30, 2018 As Reported Adjustments due to Topic 606 (increase/(decrease)) June 30, 2018 Without Adoption of Topic 606 ASSETS Current assets: Accounts receivable, net $ 161,529 $ (15,463 ) $ 146,066 Total Current assets 930,121 (15,463 ) 914,658 Deferred tax and other assets 14,712 493 15,205 Total assets $ 1,099,908 $ (14,970 ) $ 1,084,938 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 75,278 $ (12,224 ) $ 63,054 Total current liabilities 125,627 (12,224 ) 113,403 Total liabilities $ 725,375 $ (12,224 ) $ 713,151 Commitments and contingencies (Note 6) Stockholders' equity: Retained earnings $ 311,241 $ (2,746 ) $ 308,495 Total stockholders' equity before treasury stock 1,213,995 (2,746 ) 1,211,249 Total stockholders' equity 374,533 (2,746 ) 371,787 Total liabilities and stockholders' equity $ 1,099,908 $ (14,970 ) $ 1,084,938 CONSOLIDATED STATEMENTS OF OPERATIONS June 30, Adjustments due to Topic 606 (increase/(decrease)) June 30, Net revenues $ 221,309 $ (152 ) $ 221,157 Gross profit $ 109,843 $ (152 ) $ 109,691 Operating expenses Operating income $ 20,649 $ (152 ) $ 20,497 Income before income taxes $ 15,318 $ (152 ) $ 15,166 Net income $ 14,471 $ (152 ) $ 14,319 Earnings per common share: Basic $ 0.43 $ — $ 0.43 Diluted $ 0.42 $ — $ 0.42 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Selected Line Items (in thousands) (Unaudited) June 30, Adjustments due to Topic 606 June 30, Net income $ 14,471 $ (152 ) $ 14,319 Comprehensive income $ 18,187 $ (152 ) $ 18,035 |
CASH, CASH EQUIVALENTS, AND I24
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Cash, Cash Equivalents, and Investments | The following tables summarize the Company’s cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents or short-term investments as of June 30, 2018 and March 31, 2018 (in thousands): June 30, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 631,042 $ — $ — $ 631,042 $ 631,042 $ — Level 1: Mutual Funds 13,813 376 (42 ) 14,147 — 14,147 US Treasury Notes — — — — — — Money Market Funds — — — — — — Subtotal 13,813 376 (42 ) 14,147 — 14,147 Total cash, cash equivalents $ 644,855 $ 376 $ (42 ) $ 645,189 $ 631,042 $ 14,147 March 31, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 308,734 $ — $ — $ 308,734 $ 308,734 $ — Level 1: Mutual Funds 13,336 186 (67 ) 13,455 — 13,455 US Treasury Notes 129,373 7 (60 ) 129,320 30,178 99,142 Money Market Funds 344 — — 344 344 — Subtotal 143,053 193 (127 ) 143,119 30,522 112,597 Level 2: Government Agency Securities 46,354 — (56 ) 46,298 6,978 39,320 Municipal Bonds 3,591 — — 3,591 3,591 — Commercial Paper 84,512 — — 84,512 40,836 43,676 Corporate Bonds 54,701 — (212 ) 54,489 — 54,489 Certificates of Deposits ("CDs") 19,231 — — 19,231 — 19,231 Subtotal 208,389 — (268 ) 208,121 51,405 156,716 Total cash, cash equivalents $ 660,176 $ 193 $ (395 ) $ 659,974 $ 390,661 $ 269,313 |
DETAILS OF CERTAIN BALANCE SH25
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net: March 31, June 30, (in thousands) 2018 2018 Accounts receivable $ 202,270 $ 201,590 Provisions for returns (10,225 ) — 1 Provisions for promotions, rebates, and other (38,284 ) (38,910 ) 1 Provisions for doubtful accounts and sales allowances (873 ) (1,151 ) Accounts receivable, net $ 152,888 $ 161,529 (1) Upon adoption of ASC 606, the provision for returns and certain provisions for promotions, rebates and other were reclassified to accrued liabilities as these reserve balances are considered refund liabilities. Refer to Note 2, Recent Accounting Pronouncements, for additional information on the adoption impact. |
Inventory, net | Inventory, net: March 31, June 30, (in thousands) 2018 2018 Raw materials $ 28,789 $ 30,554 Work in process 450 138 Finished goods 39,037 37,446 Inventory, net $ 68,276 $ 68,138 |
Accrued liabilities | Accrued Liabilities: March 31, June 30, (in thousands) 2018 2018 Employee compensation and benefits $ 28,599 $ 23,326 Accrued interest on 5.50% Senior Notes 10,331 3,437 Warranty obligation 7,550 7,652 Provisions for returns — 11,526 1 Provisions for promotions, rebates, and other 1,750 6,279 1 VAT/Sales tax payable 5,353 5,709 Derivative liabilities 2,947 228 Accrued other 23,567 17,121 Accrued liabilities $ 80,097 $ 75,278 (1) Upon adoption of ASC 606, the provision for returns and certain provisions for promotions, rebates and other were reclassified to accrued liabilities as these reserve balances are considered refund liabilities. Refer to Note 2, Recent Accounting Pronouncements, for additional information on the adoption impact. |
Changes in the warranty obligation | Changes in the warranty obligation during the three months ended June 30, 2017 and 2018 were as follows: Three Months Ended (in thousands) 2017 2018 Warranty obligation at beginning of period $ 8,697 $ 9,604 Warranty provision related to products shipped 2,210 2,562 Deductions for warranty claims processed (2,424 ) (2,634 ) Adjustments related to preexisting warranties 44 200 Warranty obligation at end of period (1) $ 8,527 $ 9,732 (1) Includes both short-term and long-term portion of warranty obligation; the prior table shows only the short-term portion included in accrued liabilities on the Company's condensed consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt at 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 5.50% Senior Notes when available (Level 2). The estimated fair value and carrying value of the 5.50% Senior Notes were as follows: March 31, 2018 June 30, 2018 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 497,095 $ 492,509 $ 500,650 $ 492,871 |
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 105.50% (1) If the Company redeems the notes prior to the applicable date, the redemption 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. |
RESTRUCTURING AND OTHER RELAT27
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Three Months Ended (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General, and Administrative Severance benefits from reduction-in-force $ 1.3 $ 1.3 $ — $ — The associated charges were recorded in restructuring and other related charges (credits), cost of revenues, and selling, general, and administrative expense in the condensed consolidated statements of operations, as follows (in millions): Three Months Ended Description Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General, and Administrative Severance benefits from reduction-in-force $ 1.5 $ 1.5 $ — $ — Lease exit charge and asset impairments in Netherlands 0.7 0.7 — — Write-off of unrecoverable indirect tax asset in Brazil 0.7 — 0.7 Asset impairments related to previous Clarity operations 0.4 0.4 — — Loss on Clarity asset sale 0.9 — 0.9 — Accelerated vesting of restricted stock 0.2 — — 0.2 Totals $ 4.4 $ 2.6 $ 1.6 $ 0.2 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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) 2017 2018 Cost of revenues $ 902 $ 963 Research, development, and engineering 2,101 2,222 Selling, general, and administrative 6,253 4,965 Stock-based compensation included in operating expenses 8,354 7,187 Total stock-based compensation 9,256 8,150 Income tax expense (benefit) (4,849 ) (3,754 ) Total stock-based compensation, net of tax $ 4,407 $ 4,396 |
ACCUMULATED OTHER COMPREHENSI29
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Equity [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) March 31, 2018 June 30, 2018 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (1,663 ) $ 1,900 Accumulated foreign currency translation adjustments 4,685 4,685 Accumulated unrealized gain (loss) on investments (152 ) — Accumulated other comprehensive income $ 2,870 $ 6,585 (1) Refer to Note 12 , Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and June 30, 2018 . |
FOREIGN CURRENCY DERIVATIVES (T
FOREIGN CURRENCY DERIVATIVES (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Contracts | The gross fair value of the Company's outstanding derivative contracts at the end of each period was as follows: (in thousands) March 31, 2018 June 30, 2018 Derivative Assets (1) Non-designated hedges $ 218 $ 474 Cash flow hedges 554 2,980 Total Derivative Assets $ 772 $ 3,454 Derivative Liabilities (2) Non-designated hedges $ 34 $ 20 Cash flow hedges 3,003 297 Total Derivative Liabilities $ 3,037 $ 317 (1) Short-term derivative assets are recorded in "other current assets" and long-term derivative assets are recorded in "deferred tax and other assets". As of June 30, 2018 the portion of derivative assets classified as long-term was immaterial. (2) Short-term derivative liabilities are recorded in "accrued liabilities" and long-term derivative liabilities are recorded in "other long-term liabilities". As of June 30, 2018 the portion of derivative liabilities classified as long-term was immaterial. |
Notional Value of Outstanding Foreign Exchange Currency Contracts | The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: March 31, 2018 June 30, 2018 (in millions) EUR GBP EUR GBP Option contracts €77.8 £23.7 €77.9 £25.6 Forward contracts €16.7 £3.7 €18.0 £6.1 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, 2018 : (in thousands) Local Currency USD Equivalent Position Maturity EUR € 38,000 $ 44,439 Sell EUR 1 month GBP £ 9,760 $ 12,895 Sell GBP 1 month AUD A$ 15,800 $ 11,680 Sell AUD 1 month CAD C$ 2,100 $ 1,596 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 other non-operating income and (expense), net in the condensed consolidated statements of operations was as follows: Three Months Ended (in thousands) 2017 2018 Gain (loss) on foreign exchange contracts $ (3,133 ) $ (4,152 ) |
Notional Value of Outstanding Cross-Currency Swaps | The Company had no outstanding MXN cross-currency swaps as at June 30, 2018 . |
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, 2017 and 2018 : Three Months Ended (in thousands) 2017 2018 Gain (loss) included in AOCI as of beginning of period $ 541 $ (1,693 ) Amount of gain (loss) recognized in other comprehensive income (“OCI”) (effective portion) (2,345 ) 3,956 Amount of gain (loss) reclassified from OCI into net revenues (effective portion) 18 (249 ) Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) 42 (79 ) Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) 60 (328 ) Gain (loss) included in AOCI as of end of period $ (1,744 ) $ 1,935 |
COMPUTATION OF EARNINGS (LOSS31
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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, 2017 and 2018 : Three Months Ended June 30, (in thousands, except per share data) 2017 2018 Basic earnings per common share: Numerator: Net income $ 18,828 $ 14,471 Income allocated to participating securities, basic n/a (325 ) Net income attributable to common shareholders, basic $ 18,828 $ 14,146 Denominator: Weighted average common shares, basic 32,506 32,594 Basic earnings per common share $ 0.58 $ 0.43 Diluted earnings per common share: Numerator: Net income attributable to common shareholders, basic $ 18,828 $ 14,146 Net effect of reallocating undistributed earnings of unvested shareholders n/a 6 Net income attributable to common shareholders, diluted $ 18,828 $ 14,152 Denominator: Weighted average common shares-basic 32,506 32,594 Dilutive effect of employee equity incentive plans 705 940 Weighted average common shares, diluted 33,211 33,534 Diluted earnings per common share $ 0.57 $ 0.42 Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive 457 202 |
REVENUE AND MAJOR CUSTOMERS (Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
REVENUE AND MAJOR CUSTOMERS [Abstract] | |
Net Revenues by Product Group | operates as a single operating segment and the following table disaggregates revenues by major product category for the three months ended June 30, 2017 and 2018 : Three Months Ended (in thousands) 2017 2018 Net revenues from unaffiliated customers: Enterprise $ 154,605 $ 167,642 Consumer 49,321 53,667 Total net revenues $ 203,926 $ 221,309 |
Net Revenues by Geography | The following table presents net revenues by geography: Three Months Ended (in thousands) 2017 2018 Net revenues from unaffiliated customers: U.S. $ 108,810 $ 113,986 Europe and Africa 54,816 63,590 Asia Pacific 23,884 26,871 Americas, excluding U.S. 16,416 16,862 Total international net revenues 95,116 107,323 Total net revenues $ 203,926 $ 221,309 |
RECENT ACCOUNTING PRONOUNCEME33
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Amount reclassified out of financing activities | $ 7,491 | $ 19,787 |
Amount reclassified into operating activities | $ 32,082 | 12,885 |
Accounting Standards Update 2016-09 [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Amount reclassified out of financing activities | $ 1,000 |
RECENT ACCOUNTING PRONOUNCEME34
RECENT ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of Adoption of Topic 606 on Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 161,529 | $ 167,109 | $ 152,888 |
Total current assets | 930,121 | 913,947 | |
Deferred tax and other assets | 14,712 | 19,041 | |
Total assets | 1,099,908 | 1,090,615 | |
Accrued liabilities | 75,278 | 91,230 | 80,097 |
Total current liabilities | 125,627 | 136,647 | |
Total liabilities | 725,375 | 735,050 | |
Retained earnings | 311,241 | 301,661 | |
Total stockholders' equity before treasury stock | 1,213,995 | 1,181,992 | |
Total stockholders' equity | 374,533 | 355,565 | |
Total liabilities and stockholders' equity | 1,099,908 | 1,090,615 | |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 146,066 | 152,888 | |
Total current assets | 914,658 | 899,726 | |
Deferred tax and other assets | 15,205 | 19,534 | |
Total assets | 1,084,938 | 1,076,887 | |
Accrued liabilities | 63,054 | 80,097 | |
Total current liabilities | 113,403 | 125,514 | |
Total liabilities | 713,151 | 723,917 | |
Retained earnings | 308,495 | 299,066 | |
Total stockholders' equity before treasury stock | 1,211,249 | 1,179,397 | |
Total stockholders' equity | 371,787 | 352,970 | |
Total liabilities and stockholders' equity | 1,084,938 | $ 1,076,887 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | (15,463) | 14,221 | |
Total current assets | (15,463) | 14,221 | |
Deferred tax and other assets | 493 | (493) | |
Total assets | (14,970) | 13,728 | |
Accrued liabilities | (12,224) | 11,133 | |
Total current liabilities | (12,224) | 11,133 | |
Total liabilities | (12,224) | 11,133 | |
Retained earnings | (2,746) | 2,595 | |
Total stockholders' equity before treasury stock | (2,746) | 2,595 | |
Total stockholders' equity | (2,746) | 2,595 | |
Total liabilities and stockholders' equity | $ (14,970) | $ 13,728 |
RECENT ACCOUNTING PRONOUNCEME35
RECENT ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of Adoption of Topic 606 on Statements Of Operations and Statements Of Comprehensive Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net revenues | $ 221,309 | $ 203,926 |
Gross profit | 109,843 | 103,283 |
Operating income | 20,649 | 23,440 |
Income before income taxes | 15,318 | 17,051 |
Net income | $ 14,471 | $ 18,828 |
Basic (in dollars per share) | $ 0.43 | $ 0.58 |
Diluted (in dollars per share) | $ 0.42 | $ 0.57 |
Comprehensive income | $ 18,187 | $ 16,839 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net revenues | 221,157 | |
Gross profit | 109,691 | |
Operating income | 20,497 | |
Income before income taxes | 15,166 | |
Net income | $ 14,319 | |
Basic (in dollars per share) | $ 0.43 | |
Diluted (in dollars per share) | $ 0.42 | |
Comprehensive income | $ 18,035 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net revenues | (152) | |
Gross profit | (152) | |
Operating income | (152) | |
Income before income taxes | (152) | |
Net income | $ (152) | |
Basic (in dollars per share) | $ 0 | |
Diluted (in dollars per share) | $ 0 | |
Comprehensive income | $ (152) |
CASH, CASH EQUIVALENTS, AND I36
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | $ 631,042 | $ 390,661 | $ 290,484 | $ 301,970 |
Short-term investments (due in 1 year or less) | 14,147 | 269,313 | ||
Total cash, cash equivalents and investments measured at fair value, amortized cost | 644,855 | 660,176 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized gains | 376 | 193 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized losses | (42) | (395) | ||
Total cash, cash equivalents and investments measured at fair value, fair value | 645,189 | 659,974 | ||
Cash [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 631,042 | 308,734 | ||
Level 1 [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 30,522 | ||
Available-for-sale Securities, amortized cost basis | 13,813 | 143,053 | ||
Available-for-sale Securities, gross unrealized gains | 376 | 193 | ||
Available-for-sale Securities, gross unrealized losses | (42) | (127) | ||
Available-for-sale Securities, fair value | 14,147 | 143,119 | ||
Short-term investments (due in 1 year or less) | 14,147 | 112,597 | ||
Level 1 [Member] | Mutual Funds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale Securities, amortized cost basis | 13,813 | 13,336 | ||
Available-for-sale Securities, gross unrealized gains | 376 | 186 | ||
Available-for-sale Securities, gross unrealized losses | (42) | (67) | ||
Available-for-sale Securities, fair value | 14,147 | 13,455 | ||
Short-term investments (due in 1 year or less) | 14,147 | 13,455 | ||
Level 1 [Member] | US Treasury Notes [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 30,178 | ||
Available-for-sale Securities, amortized cost basis | 0 | 129,373 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 7 | ||
Available-for-sale Securities, gross unrealized losses | 0 | (60) | ||
Available-for-sale Securities, fair value | 0 | 129,320 | ||
Short-term investments (due in 1 year or less) | 0 | 99,142 | ||
Level 1 [Member] | Money Market Funds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Short-term investments (due in 1 year or less) | 0 | |||
Level 1 [Member] | Money Market Funds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 344 | ||
Available-for-sale Securities, amortized cost basis | 0 | 344 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 0 | ||
Available-for-sale Securities, gross unrealized losses | 0 | 0 | ||
Available-for-sale Securities, fair value | $ 0 | 344 | ||
Level 2 [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 51,405 | |||
Available-for-sale Securities, amortized cost basis | 208,389 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | (268) | |||
Available-for-sale Securities, fair value | 208,121 | |||
Short-term investments (due in 1 year or less) | 156,716 | |||
Level 2 [Member] | Government Agency Securities [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 6,978 | |||
Available-for-sale Securities, amortized cost basis | 46,354 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | (56) | |||
Available-for-sale Securities, fair value | 46,298 | |||
Short-term investments (due in 1 year or less) | 39,320 | |||
Level 2 [Member] | Municipal Bonds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 3,591 | |||
Available-for-sale Securities, amortized cost basis | 3,591 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 3,591 | |||
Short-term investments (due in 1 year or less) | 0 | |||
Level 2 [Member] | Commercial Paper [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 40,836 | |||
Available-for-sale Securities, amortized cost basis | 84,512 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 84,512 | |||
Short-term investments (due in 1 year or less) | 43,676 | |||
Level 2 [Member] | Corporate Bonds [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Available-for-sale Securities, amortized cost basis | 54,701 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | (212) | |||
Available-for-sale Securities, fair value | 54,489 | |||
Short-term investments (due in 1 year or less) | 54,489 | |||
Level 2 [Member] | Certificates of Deposit [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Available-for-sale Securities, amortized cost basis | 19,231 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 19,231 | |||
Short-term investments (due in 1 year or less) | $ 19,231 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 |
Short-term investments [Member] | Mutual funds [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Investments | $ 14.1 | $ 13.5 |
Other long-term liabilities [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation liability, noncurrent | $ 14.8 | $ 14.1 |
DETAILS OF CERTAIN BALANCE SH38
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Accounts receivable, net [Line Items] | |||
Accounts receivable | $ 201,590 | $ 202,270 | |
Accounts receivable, net | 161,529 | $ 167,109 | 152,888 |
Provision for returns [Member] | |||
Accounts receivable, net [Line Items] | |||
Accounts receivable, reserves | 0 | (10,225) | |
Provision for promotions, rebates and other [Member] | |||
Accounts receivable, net [Line Items] | |||
Accounts receivable, reserves | (38,910) | (38,284) | |
Provisions for doubtful accounts and sales allowances [Member] | |||
Accounts receivable, net [Line Items] | |||
Accounts receivable, reserves | $ (1,151) | $ (873) |
DETAILS OF CERTAIN BALANCE SH39
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 30,554 | $ 28,789 |
Work in process | 138 | 450 |
Finished goods | 37,446 | 39,037 |
Inventory, net | $ 68,138 | $ 68,276 |
DETAILS OF CERTAIN BALANCE SH40
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 | May 31, 2015 |
Accrued Liabilities [Abstract] | ||||
Employee compensation and benefits | $ 23,326 | $ 28,599 | ||
Accrued interest on 5.50% Senior Notes | 3,437 | 10,331 | ||
Warranty obligation | 7,652 | 7,550 | ||
Provisions for returns | 11,526 | 0 | ||
Provisions for promotions, rebates, and other | 6,279 | 1,750 | ||
VAT/Sales tax payable | 5,709 | 5,353 | ||
Derivative liabilities | 228 | 2,947 | ||
Accrued other | 17,121 | 23,567 | ||
Accrued liabilities | $ 75,278 | $ 91,230 | $ 80,097 | |
5.50% Senior Notes [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of debt instrument | 5.50% | 5.50% |
DETAILS OF CERTAIN BALANCE SH41
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Warranty Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in the Warranty Obligation [Roll Forward] | ||
Warranty obligation at beginning of period | $ 9,604 | $ 8,697 |
Warranty provision related to products shipped | 2,562 | 2,210 |
Deductions for warranty claims processed | (2,634) | (2,424) |
Adjustments related to preexisting warranties | 200 | 44 |
Warranty obligation at end of period | $ 9,732 | $ 8,527 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jul. 31, 2016 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | ||
Unconditional purchase obligations | $ 201 | |
GN Netcom, Inc. vs. Plantronics, Inc. [Member] | Punitive Sanctions [Member] | ||
Loss Contingencies [Line Items] | ||
Sanctions order against the Company | $ 4.9 | |
Recoverable costs awarded to the Company | $ 0.2 |
DEBT (Details)
DEBT (Details) | May 02, 2016 | May 09, 2011 | May 31, 2015USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017 | Mar. 31, 2018USD ($) | Apr. 28, 2017USD ($) |
Debt Disclosure [Line Items] | |||||||
Initiation date of credit agreement | May 9, 2011 | ||||||
Amendment date of Credit Agreement | Apr. 28, 2017 | ||||||
Credit facility expiration date | May 9, 2020 | ||||||
Commitment fee percentage | 0.37% | ||||||
Outstanding borrowings under line of credit | $ 0 | $ 0 | |||||
Maximum ratio of funded debt to EBITDA | 3.25 | ||||||
Minimum required liquid funds | $ 300,000,000 | ||||||
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% | 5.50% | |||||
Proceeds from issuance of senior notes, net of issuance costs | $ 488,400,000 | ||||||
Debt issuance costs | $ 11,600,000 | ||||||
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] | Senior Notes [Member] | 5.50% Senior Notes [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Long-term debt, 5.50% Senior Notes | $ 500,650,000 | 497,095,000 | |||||
Level 2 [Member] | Carrying Value [Member] | Senior Notes [Member] | 5.50% Senior Notes [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Long-term debt, 5.50% Senior Notes | $ 492,871,000 | $ 492,509,000 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Maximum borrowing capacity of unsecured revolving credit facility | $ 100,000,000 |
RESTRUCTURING AND OTHER RELAT44
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 1,320 | $ 2,573 |
Totals | 4,400 | |
Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 2,600 | |
Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 1,600 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 200 | |
Severance Benefits from Reduction-In-Force [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 1,300 | 1,500 |
Severance Benefits from Reduction-In-Force [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 1,300 | 1,500 |
Severance Benefits from Reduction-In-Force [Member] | Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | 0 |
Severance Benefits from Reduction-In-Force [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 0 | 0 |
Lease Exit Charge and Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 700 | |
Lease Exit Charge and Asset Impairment [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 700 | |
Lease Exit Charge and Asset Impairment [Member] | Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Lease Exit Charge and Asset Impairment [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Write-off of Unrecoverable Indirect Tax Asset in Brazil [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 700 | |
Write-off of Unrecoverable Indirect Tax Asset in Brazil [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Write-off of Unrecoverable Indirect Tax Asset in Brazil [Member] | Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 700 | |
Asset Impairments Related to Previous Clarity Operations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 400 | |
Asset Impairments Related to Previous Clarity Operations [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 400 | |
Asset Impairments Related to Previous Clarity Operations [Member] | Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Asset Impairments Related to Previous Clarity Operations [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Loss on Clarity Asset Sale [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 900 | |
Loss on Clarity Asset Sale [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Loss on Clarity Asset Sale [Member] | Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 900 | |
Loss on Clarity Asset Sale [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Accelerated Vesting of Restricted Stock [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 200 | |
Accelerated Vesting of Restricted Stock [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Accelerated Vesting of Restricted Stock [Member] | Cost of Revenues [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | |
Accelerated Vesting of Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 200 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 8,150 | $ 9,256 |
Income tax expense (benefit) | (3,754) | (4,849) |
Total stock-based compensation, net of tax | 4,396 | 4,407 |
Cost of revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 963 | 902 |
Research, development, and engineering [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 2,222 | 2,101 |
Selling, general, and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 4,965 | 6,253 |
Stock-based compensation expense included in operating expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 7,187 | $ 8,354 |
COMMON STOCK REPURCHASES (Detai
COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||
Remaining shares authorized for repurchase under program | 730,105 | |
Shares repurchased | 252,707 | |
Total cost of shares repurchased | $ 0 | $ 13,492 |
Average cost per share of shares repurchased (in dollars per share) | $ 53.39 | |
Value of shares withheld in satisfaction of employee tax withholding obligations | $ 13,035 | $ 10,485 |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Accumulated unrealized gain (loss) on cash flow hedges | [1] | $ 1,900 | $ (1,663) |
Accumulated foreign currency translation adjustments | 4,685 | 4,685 | |
Accumulated unrealized gain (loss) on investments | 0 | (152) | |
Accumulated other comprehensive income | $ 6,585 | $ 2,870 | |
[1] | Refer to Note 12, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and June 30, 2018. |
FOREIGN CURRENCY DERIVATIVES (D
FOREIGN CURRENCY DERIVATIVES (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018MXN ($)financial_institution | Mar. 31, 2018MXN ($) | |
Derivative [Line Items] | ||
Number of financial institutions company has International Swap and Derivatives Association agreements | financial_institution | 4 | |
Foreign currency swap contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of contracts | $ | $ 0 | $ 31,800 |
Cash flow hedges [Member] | Options [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Term of derivative contract | 6 months | |
Cash flow hedges [Member] | Options [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Term of derivative contract | 11 months | |
Cash flow hedges [Member] | Forwards [Member] | ||
Derivative [Line Items] | ||
Term of derivative contract | 3 months |
FOREIGN CURRENCY DERIVATIVES 49
FOREIGN CURRENCY DERIVATIVES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Derivative [Line Items] | ||
Total Derivative Liabilities | $ 228 | $ 2,947 |
Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Total Derivative Assets | 3,454 | 772 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total Derivative Assets | 474 | 218 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Total Derivative Liabilities | 317 | 3,037 |
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total Derivative Liabilities | 20 | 34 |
Cash flow hedges [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total Derivative Assets | 2,980 | 554 |
Cash flow hedges [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total Derivative Liabilities | $ 297 | $ 3,003 |
FOREIGN CURRENCY DERIVATIVES 50
FOREIGN CURRENCY DERIVATIVES (Details 2) - 3 months ended Jun. 30, 2018 € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | EUR (€) | CAD ($) | GBP (£) | AUD ($) | USD ($) |
Foreign Exchange Forward, EURO [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | € 38,000 | $ 44,439 | |||
Position | Sell EUR | ||||
Maturity | 1 month | ||||
Foreign Exchange Forward, GBP [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | £ 9,760 | 12,895 | |||
Position | Sell GBP | ||||
Maturity | 1 month | ||||
Foreign Exchange Forward, AUD [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | $ 15,800 | 11,680 | |||
Position | Sell AUD | ||||
Maturity | 1 month | ||||
Foreign Exchange Forward, CAD [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | $ 2,100 | $ 1,596 | |||
Position | Sell CAD | ||||
Maturity | 1 month |
FOREIGN CURRENCY DERIVATIVES 51
FOREIGN CURRENCY DERIVATIVES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Gain (loss) on foreign exchange contracts | $ (4,152) | $ (3,133) |
FOREIGN CURRENCY DERIVATIVES 52
FOREIGN CURRENCY DERIVATIVES (Details 4) | Jun. 30, 2018EUR (€) | Jun. 30, 2018GBP (£) | Mar. 31, 2018EUR (€) | Mar. 31, 2018GBP (£) |
Option contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of contracts | € 77,900,000 | £ 25,600,000 | € 77,800,000 | £ 23,700,000 |
Forward contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of contracts | € 18,000,000 | £ 6,100,000 | € 16,700,000 | £ 3,700,000 |
FOREIGN CURRENCY DERIVATIVES 53
FOREIGN CURRENCY DERIVATIVES (Details 5) - MXN ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Foreign currency swap contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of contracts | $ 0 | $ 31,800 |
FOREIGN CURRENCY DERIVATIVES 54
FOREIGN CURRENCY DERIVATIVES (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ||
Gain (loss) included in AOCI as of beginning of period | $ (1,693) | $ 541 |
Amount of gain (loss) recognized in other comprehensive income (“OCI”) (effective portion) | 3,956 | (2,345) |
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | 221,309 | 203,926 |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (111,466) | (100,643) |
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | (328) | 60 |
Gain (loss) included in AOCI as of end of period | 1,935 | (1,744) |
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) | (249) | 18 |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | $ (79) | $ 42 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 5.50% | (10.40%) | |
Toll charge | $ 79,700,000 | ||
Period under review | 30 years | ||
Tax expense on global intangible low-taxed income | $ 4,300,000 | ||
Unrecognized tax benefits | 12,800,000 | 12,600,000 | |
Accrued interest related to unrecognized tax benefits | 1,500,000 | 1,400,000 | |
Accrued penalties | $ 0 | $ 0 |
COMPUTATION OF EARNINGS (LOSS56
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per common share: | ||
Net income | $ 14,471 | $ 18,828 |
Income allocated to participating securities, basic | (325) | |
Net income attributable to common shareholders, basic | $ 14,146 | $ 18,828 |
Weighted average common shares, basic (in shares) | 32,594 | 32,506 |
Basic earnings per common share (in dollars per share) | $ 0.43 | $ 0.58 |
Diluted earnings per common share: | ||
Net effect of reallocating undistributed earnings of unvested shareholders | $ 6 | |
Net income attributable to common shareholders, diluted | $ 14,152 | $ 18,828 |
Dilutive effect of employee equity incentive plans (in shares) | 940 | 705 |
Weighted average common shares-diluted (in shares) | 33,534 | 33,211 |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.42 | $ 0.57 |
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 202 | 457 |
Pro Forma [Member] | ||
Basic earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.56 | |
Diluted earnings per common share: | ||
Diluted earnings (loss) per common share (in dollars per share) | $ 0.55 |
REVENUE AND MAJOR CUSTOMERS (De
REVENUE AND MAJOR CUSTOMERS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($)Customer | Jun. 30, 2017USD ($)Customer | Mar. 31, 2018Customer | |
Revenue from External Customer [Line Items] | |||
Net revenues | $ 221,309 | $ 203,926 | |
US [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 113,986 | 108,810 | |
Europe and Africa [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 63,590 | 54,816 | |
Asia Pacific [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 26,871 | 23,884 | |
Americas, excluding U.S. [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 16,862 | 16,416 | |
Total international net revenues [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 107,323 | 95,116 | |
Enterprise [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | 167,642 | 154,605 | |
Consumer [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenues | $ 53,667 | $ 49,321 | |
Net Revenues [Member] | Customer Concentration Risk [Member] | Ingram Micro [Member] | |||
Revenue from External Customer [Line Items] | |||
Number of major customers, ten percent or greater, net revenues | Customer | 1 | 1 | |
Concentration risk percentage | 11.90% | ||
Net Revenues [Member] | Customer Concentration Risk [Member] | D&H Distributors [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk percentage | 9.50% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Ingram Micro [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk percentage | 12.40% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | D&H Distributors And Ingram Micro [Member] | |||
Revenue from External Customer [Line Items] | |||
Number of major customers, ten percent or greater, net accounts receivable | Customer | 2 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | D&H Distributors [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk percentage | 12.20% | 13.00% | |
Number of major customers, ten percent or greater, net accounts receivable | Customer | 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, shares in Millions | Jul. 30, 2018 | Jul. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 28, 2017 |
Subsequent Event [Line Items] | |||||
Cash portion of acquisition consideration | $ 33,550,000 | $ 0 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends declared date | Aug. 6, 2018 | ||||
Cash dividend payable per share (in dollars per share) | $ 0.15 | ||||
Dividend payable date | Sep. 10, 2018 | ||||
Date of stockholders on record for dividends declared | Aug. 20, 2018 | ||||
Polycom [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash portion of acquisition consideration | $ 33,600,000 | ||||
Polycom [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash portion of acquisition consideration | $ 1,600,000,000 | ||||
Consideration transferred | $ 2,000,000,000 | ||||
Shares issued for acquisition | 6.4 | ||||
Triangle [Member] | Polycom [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Ownership percentage | 16.00% | ||||
Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Notes Payable to Banks [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Principal amount of debt issued | $ 1,275,000,000 | ||||
Debt instrument, principal periodic payment (as a percent) | 0.25% | ||||
Long-term debt outstanding | $ 1,245,000,000 | ||||
Discounts and issuance costs | $ 30,000,000 | ||||
Interest Rate Swap [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Term of derivative contract | 4 years | ||||
Notional amount of contracts | $ 831,000,000 |