DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Sep. 30, 2018 | Nov. 02, 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 | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 39,803,774 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 291,086 | $ 390,661 |
Short-term investments | 14,705 | 269,313 |
Accounts receivable, net | 354,066 | 152,888 |
Inventory, net | 156,908 | 68,276 |
Other current assets | 57,584 | 18,588 |
Total current assets | 874,349 | 899,726 |
Property, plant, and equipment, net | 216,802 | 142,129 |
Goodwill | 1,334,534 | 15,498 |
Purchased intangibles, net | 914,455 | 0 |
Deferred tax assets | 5,320 | 17,950 |
Other assets | 24,647 | 1,584 |
Total assets | 3,370,107 | 1,076,887 |
Current liabilities: | ||
Accounts payable | 149,917 | 45,417 |
Accrued liabilities | 407,777 | 80,097 |
Total current liabilities | 557,694 | 125,514 |
Long term debt, net of issuance costs | 1,726,241 | 492,509 |
Deferred tax liability | 115,887 | 1,976 |
Long-term income taxes payable | 95,228 | 87,328 |
Other long-term liabilities | 84,997 | 16,590 |
Total liabilities | 2,580,047 | 723,917 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Common stock | 884 | 816 |
Additional paid-in capital | 1,404,713 | 876,645 |
Accumulated other comprehensive income | 5,667 | 2,870 |
Retained earnings | 218,565 | 299,066 |
Total stockholders' equity before treasury stock | 1,629,829 | 1,179,397 |
Less: Treasury stock, at cost | (839,769) | (826,427) |
Total stockholders' equity | 790,060 | 352,970 |
Total liabilities and stockholders' equity | $ 3,370,107 | $ 1,076,887 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net revenues | $ 483,069 | $ 210,300 | $ 704,378 | $ 414,226 |
Cost of revenues | 330,440 | 102,668 | 441,906 | 203,311 |
Gross profit | 152,629 | 107,632 | 262,472 | 210,915 |
Operating expenses: | ||||
Research, development, and engineering | 57,047 | 19,932 | 80,748 | 41,145 |
Selling, general, and administrative | 174,297 | 57,696 | 238,500 | 113,929 |
Gain, net from litigation settlements | 0 | (104) | (30) | (280) |
Restructuring and other related charges (credits) | 7,261 | (51) | 8,581 | 2,522 |
Total operating expenses | 238,605 | 77,473 | 327,799 | 157,316 |
Operating income (loss) | (85,976) | 30,159 | (65,327) | 53,599 |
Interest expense | (23,893) | (7,260) | (31,220) | (14,563) |
Other non-operating income, net | 1,610 | 1,826 | 3,606 | 2,740 |
Income (Loss) before income taxes | (108,259) | 24,725 | (92,941) | 41,776 |
Income tax expense (benefit) | (21,550) | 4,772 | (20,703) | 2,995 |
Net income (loss) | $ (86,709) | $ 19,953 | $ (72,238) | $ 38,781 |
Earnings (Loss) per common share: | ||||
Earnings (Loss) per common share: | $ (2.21) | $ 0.59 | $ (2.01) | $ 1.16 |
Diluted (in dollars per share) | $ (2.21) | $ 0.59 | $ (2.01) | $ 1.14 |
Shares used in computing earnings (loss) per common share: | ||||
Basic (in shares) | 39,281 | 32,570 | 35,938 | 32,538 |
Diluted (in shares) | 39,281 | 32,809 | 35,938 | 33,111 |
Cash dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.3 | $ 0.3 |
Product [Member] | ||||
Net revenues | $ 435,262 | $ 210,300 | $ 656,571 | $ 414,226 |
Cost of revenues | 305,477 | 102,668 | 416,943 | 203,311 |
Service [Member] | ||||
Net revenues | 47,807 | 0 | 47,807 | 0 |
Cost of revenues | $ 24,963 | $ 0 | $ 24,963 | $ 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (86,709) | $ 19,953 | $ (72,238) | $ 38,781 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (1,815) | 57 | (1,815) | 257 |
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized cash flow hedge gains (losses) arising during the period | 813 | (2,302) | 4,769 | (4,647) |
Net (gains) losses reclassified into income for revenue hedges | (900) | 1,131 | (1,149) | 1,149 |
Net (gains) losses reclassified into income for cost of revenue hedges | 0 | (174) | (79) | (132) |
Net (gains) losses reclassified into income for interest rate swap | 977 | 0 | 977 | 0 |
Net unrealized gains (losses) on cash flow hedges | 890 | (1,345) | 4,518 | (3,630) |
Unrealized holding gains (losses) during the period | 0 | 133 | 198 | 209 |
Aggregate income tax benefit (expense) of the above items | 8 | (19) | (102) | 1 |
Other comprehensive income (loss) | (917) | (1,174) | 2,799 | (3,163) |
Comprehensive income (loss) | $ (87,626) | $ 18,779 | $ (69,439) | $ 35,618 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (72,238) | $ 38,781 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 87,646 | 10,743 |
Amortization of debt issuance costs | 1,769 | 725 |
Stock-based compensation | 18,990 | 18,018 |
Deferred income taxes | (18,056) | 4,384 |
Provision for excess and obsolete inventories | 2,808 | 900 |
Restructuring and related charges (credits) | 8,581 | 2,522 |
Cash payments for restructuring charges | (7,395) | (2,429) |
Other operating activities | 9,010 | (1,141) |
Changes in assets and liabilities, net of acquisition: | ||
Accounts receivable, net | (23,863) | 1,246 |
Inventory, net | 16,380 | (5,844) |
Current and other assets | (2,693) | (4,539) |
Accounts payable | 20,627 | 3,205 |
Accrued liabilities | 39,505 | (9,388) |
Income taxes | (8,521) | (7,890) |
Cash provided by operating activities | 72,550 | 49,293 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales of investments | 124,640 | 30,895 |
Proceeds from maturities of investments | 131,017 | 106,661 |
Purchase of investments | (536) | (133,949) |
Cash paid for acquisition, net of cash acquired | (1,650,242) | 0 |
Capital expenditures | (7,535) | (6,752) |
Cash used for investing activities | (1,402,656) | (3,145) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of common stock | 0 | (39,222) |
Employees' tax withheld and paid for restricted stock and restricted stock units | (13,342) | (10,789) |
Proceeds from issuances under stock-based compensation plans | 14,872 | 11,950 |
Proceeds from debt issuance, net | 1,244,713 | 0 |
Payment of cash dividends | (10,982) | (10,057) |
Cash (used for) provided by financing activities | 1,235,261 | (48,118) |
Effect of exchange rate changes on cash and cash equivalents | (4,730) | 3,116 |
Net increase (decrease) in cash and cash equivalents | (99,575) | 1,146 |
Cash and cash equivalents at beginning of period | 390,661 | 301,970 |
Cash and cash equivalents at end of period | 291,086 | 303,116 |
SUPPLEMENTAL NON-CASH DISCLOSURES | ||
Cash paid for income taxes | 14,047 | 6,816 |
Cash paid for interest | $ 29,244 | $ 13,936 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Sep. 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 September 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year or any future period. The financial results of Polycom have been included in our consolidated financial statements from the date of acquisition on July 2, 2018, refer to Note 3 Acquisition, Acquisition, Goodwill, and Acquired Intangible Assets 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 30, 2019 and March 31, 2018 , respectively, and both consist of 52 weeks. The Company’s results of operations for the three and six months ended September 29, 2018 and September 30, 2017 both contain 13 weeks and 26 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. Foreign Operations and Currency Translation After the Polycom acquisition, the Company's functional currency is the U.S. Dollar (“USD") for all but one of its international subsidiaries located in China. The resulting cumulative translation adjustments related to this subsidiary are immaterial and are included as a component of stockholders' equity in accumulated other comprehensive income. Assets and liabilities denominated in currencies other than the USD or for China, the Chinese Yuan Renminbi (“CNY”), are re-measured at the period-end rates for monetary assets and liabilities and at historical rates for non-monetary assets and liabilities. Revenues and expenses are re-measured at average monthly rates, which approximate actual rates. Currency transaction gains and losses are recognized in other non-operating income and (expense), net. Related Party The Company's vendor, Digital River, Inc. ("Digital River"), with whom the Company had an existing relationship prior to the acquisition of Polycom, Inc. ("Polycom"), is a wholly owned subsidiary of Siris Capital Group, LLC ("Siris"). Triangle Private Holdings II, LLC ("Triangle") is also a wholly owned subsidiary of Siris. Immediately prior to the Company's acquisition of Polycom on July 2, 2018, Triangle was Polycom’s sole shareholder and, pursuant to the Company's stock purchase agreement with Triangle, currently owns approximately 16.0% of Plantronics' issued and outstanding stock. Additionally, in connection with the acquisition of Polycom, the Company entered into a Stockholder Agreement with Triangle pursuant to which it agreed to appoint two individuals to the Company's board of directors nominated by Triangle. As a consequence of these relationships, Digital River is considered a related party under Topic 850. The Company had immaterial transactions with Digital River during the six months ended September 30, 2018. Accounts Receivable Financing After the Polycom acquisition, the Company assumed a financing agreement with an unrelated third-party financing company (the "Financing Agreement") whereby the Company offers distributors and resellers direct or indirect financing on their purchases of Polycom's products and services. In return, the Company agrees to pay the financing company a fee based on a pre-defined percentage of the transaction amount financed. In certain instances, these financing arrangements result in a transfer of our receivables, without recourse, to the financing company. If the transaction meets the applicable criteria under Topic 860 and is accounted for as a sale of financial assets, the related accounts receivable is excluded from the balance sheet upon receipt of the third-party financing company's payment remittance. In certain legal jurisdictions, the arrangements that involve maintenance services or products bundled with maintenance at one price do not qualify as sale of financial assets in accordance with the authoritative guidance. Accordingly, accounts receivable related to these arrangements are accounted for as a secured borrowing in accordance with Topic 860, and the Company records a liability for any cash received, while maintaining the associated accounts receivable balance until the distributor or reseller remits payment to the third-party financing company. During the quarter ended September 30, 2018, total transactions entered pursuant to the terms of the Financing Agreement were approximately $56.3 million of which $32.7 million was related to the transfer of the financial asset. The financing of these receivables accelerated the collection of cash and reduced the Company's credit exposure. Included in "Accounts receivables, net" in the Company's condensed consolidated balance sheet as of September 30, 2018 was approximately $41.0 million due from the financing company, of which $19.8 million was related to accounts receivable transferred. Total fees incurred pursuant to the Financing Agreement were immaterial for the quarter ended September 30, 2018. These fees are recorded as a reduction to revenue on the Company's condensed consolidated statement of operations. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Sep. 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 August 2018, the FASB issued guidance which amended the disclosure requirements on fair value measurements under Topic 820, Fair Value Measurement for recurring or nonrecurring fair value measurements. The guidance is effective for the Company's fiscal year ending March 31, 2020 and interim periods within that year, the Company is currently evaluating the impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The guidance is effective for the Company's fiscal year ending March 31, 2021, and the Company is currently evaluating the impact on its consolidated financial statements and related disclosures. 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 notable 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. On July 2, 2018 we acquired Polycom, a privately held Company who had not yet adopted Topic 606. In addition to increasing the magnitude of some items listed above, the acquisition introduced several additional areas of impact. The most notable areas of impact are: • Term Licenses: Legacy accounting standards required that revenue for term-based software licenses be recognized ratably when VSOE of fair value had not been established for undelivered items such as post-contract support. Under Topic 606, revenue for such licenses is recognized at the time of delivery, rather than ratably, as the VSOE requirement no longer applies. • Cost of Obtaining a Contract: Under legacy guidance, in certain circumstances an entity could have elected to capitalize direct and incremental contract acquisition costs, such as sales commissions. Under Topic 606 and related guidance, an entity is required to capitalize costs that are incremental to obtaining a contract if it expects to recover them, unless it elects the practical expedient for costs with amortization periods of one year or less. This new provision affects the Company as we will capitalize those costs if the anticipated amortization period is greater than one year and the criteria have been met. 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 assets 17,950 (493 ) 17,457 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 7) 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 balance sheet as of September 30, 2018: September 30, 2018 As Reported Adjustments due to Topic 606 (increase/(decrease)) September 30, 2018 Without Adoption of Topic 606 ASSETS Current assets: Accounts receivable, net $ 354,066 $ (90,906 ) $ 263,160 Other current assets 57,584 (206 ) 57,378 Total current assets 874,349 (91,112 ) 783,237 Other assets 24,647 (747 ) 23,900 Total assets $ 3,370,107 $ (91,859 ) $ 3,278,248 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 407,777 $ (85,681 ) $ 322,096 Total current liabilities 557,694 (85,681 ) 472,013 Deferred tax liability 115,887 (1,001 ) 114,886 Total liabilities 2,580,047 (86,682 ) 2,493,365 Commitments and contingencies (Note 7) Stockholders' equity: Retained earnings 218,565 (5,177 ) 213,388 Total stockholders' equity before treasury stock 1,629,829 (5,177 ) 1,624,652 Total stockholders' equity 790,060 (5,177 ) 784,883 Total liabilities and stockholders' equity $ 3,370,107 $ (91,859 ) $ 3,278,248 The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated financial statements for the three months ended September 30, 2018: CONSOLIDATED STATEMENTS OF OPERATIONS September 30, 2018 Adjustments due to Topic 606 September 30, 2018 Net revenues Net product revenues $ 435,262 $ (2,431 ) $ 432,831 Net service revenues 47,807 81 47,888 Total net revenues 483,069 (2,350 ) 480,719 Gross profit 152,629 (2,350 ) 150,279 Operating expenses: Selling, general, and administrative 174,297 870 175,167 Total operating expenses 238,605 870 239,475 Operating loss (85,976 ) (3,220 ) (89,196 ) Loss before income taxes (108,259 ) (3,220 ) (111,479 ) Income tax expense (benefit) (21,550 ) (470 ) (22,020 ) Net loss $ (86,709 ) $ (2,750 ) $ (89,459 ) Loss per common share: Basic $ (2.21 ) $ (0.07 ) $ (2.28 ) Diluted $ (2.21 ) $ (0.07 ) $ (2.28 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated financial statements for the six months ended September 30, 2018: CONSOLIDATED STATEMENTS OF OPERATIONS September 30, 2018 Adjustments due to Topic 606 September 30, 2018 Net revenues Net product revenues $ 656,571 $ (2,583 ) $ 653,988 Net service revenues 47,807 81 47,888 Total net revenues 704,378 (2,502 ) 701,876 Gross profit 262,472 (2,502 ) 259,970 Operating expenses Selling, general, and administrative 238,500 870 239,370 Total operating expenses 327,799 870 328,669 Operating loss (65,327 ) (3,372 ) (68,699 ) Loss before income taxes (92,941 ) (3,372 ) (96,313 ) Income tax expense (benefit) (20,703 ) (508 ) (21,211 ) Net loss $ (72,238 ) $ (2,864 ) $ (75,102 ) Loss per common share: Basic $ (2.01 ) $ (0.08 ) $ (2.09 ) Diluted $ (2.01 ) $ (0.08 ) $ (2.09 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated statement of comprehensive loss for the three months ended September 30, 2018: CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Selected Line Items (in thousands) (Unaudited) September 30, 2018 as Reported Adjustments due to Topic 606 September 30, 2018 Without Adoption of Topic 606 Net loss $ (86,709 ) $ (2,750 ) $ (89,459 ) Comprehensive loss $ (87,626 ) $ (2,750 ) $ (90,376 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated statement of comprehensive loss for the six months ended September 30, 2018: CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Selected Line Items (in thousands) (Unaudited) September 30, 2018 as Reported Adjustments due to Topic 606 September 30, 2018 Without Adoption of Topic 606 Net loss $ (72,238 ) $ (2,864 ) $ (75,102 ) Comprehensive loss $ (69,439 ) $ (2,864 ) $ (72,303 ) 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 condensed 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. |
ACQUISITION, GOODWILL, AND ACQU
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS | 6 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS | ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS Polycom Acquisition On July 2, 2018, the Company completed the acquisition of Polycom based upon the terms and conditions contained in the Purchase Agreement dated March 28, 2018 ("the Acquisition"). The Company believes the Acquisition will better position Plantronics with our channel partners, customers, and strategic alliance partners by allowing us to pursue additional opportunities across the Unified Communications & Collaboration "UC&C" market in both hardware end points and services. At the closing of the Acquisition, Plantronics acquired Polycom for approximately $2.2 billion with the total consideration consisting of (1) 6.4 million shares of the Company's common stock (the "Stock Consideration") valued at approximately $0.5 billion and (2) approximately $1.7 billion in cash net of cash acquired (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 subject to a working capital, tax and other adjustments. This transaction was accounted for as a business combination and we have included the financial results of Polycom in our condensed consolidated financial statements since the date of acquisition. The preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows: (in thousands) July 2, 2018 ASSETS Cash and cash equivalents $ 80,139 Trade receivables, net 168,595 Inventories 107,820 Prepaid expenses and other current assets 32,551 Property and equipment, net 80,310 Intangible assets 985,400 Other assets 28,572 Total assets acquired $ 1,483,387 LIABILITIES Accounts payable $ 81,854 Accrued payroll and related liabilities 45,317 Accrued expenses 120,167 Income tax payable 30,153 Deferred revenue 114,264 Deferred income taxes 150,112 Other liabilities 35,912 Total liabilities assumed $ 577,779 Total identifiable net assets acquired 905,608 Goodwill 1,319,036 Total Purchase Price $ 2,224,644 The Company’s purchase price allocation is preliminary and subject to revision as additional information related to the fair value of assets and liabilities are finalized. The estimate of fair value and purchase price allocation were based on information available at the time of closing the Acquisition and the Company continues to evaluate the underlying inputs and assumptions that are being used in fair value estimates. The fair values for acquired inventory, property, plant and equipment, intangible assets, and deferred revenue were determined with the input from third–party valuation specialists. The fair values of certain other assets and certain other liabilities were determined internally using historical carrying values and estimates made by management In addition, the Company is in process of finalizing the net working capital adjustment. Accordingly, these preliminary estimates are subject to retrospective adjustments during the measurement period, not to exceed one year, based upon new information obtained about facts and circumstances that existed as of the date of closing the Acquisition. The acquisition has preliminarily resulted in $1,319 million of goodwill, which represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Additionally, the purchase price is subject to change due to working capital adjustments, tax reimbursements, and other potential reimbursements from escrow. The Company incurred approximately $26.3 million in acquisition and integration related expenses which are recorded in selling, general, and administrative expenses in our condensed consolidated statement of operations for the quarter ended September 30, 2018 . The details of the acquired intangible assets are as follows: (in thousands, except for remaining life) Value as of July 2, 2018 Amortization for the Three Months Ended September 30, 2018 Value as of September 30, 2018 Weighted Remaining Life of Intangibles Existing technology $ 538,600 $ 27,568 $ 511,032 4.71 In-process technology 58,000 — 58,000 N/A Customer relationships 245,100 12,066 233,034 5.22 Backlog 28,100 28,100 — 0 Trade name/Trademarks 115,600 3,211 112,389 8.75 Total acquired intangible assets $ 985,400 $ 70,945 $ 914,455 Existing technology relates to products for voice, video and platform products. We valued the developed technology using the discounted cash flow method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The economic useful life was determined based on the technology cycle related to each developed technology, as well as the cash flows over the forecast period. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of Polycom. Customer relationships were valued using the discounted cash flow method as described above and the distributor method under the income approach. Under the distributor method, the economic profits generated by a distributor are deemed to be attributable to the customer relationships. The economic useful life was determined based on historical customer turnover rates. Order backlog was valued separately from customer relationships using the discounted cash flow method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by order backlog less costs to fulfill. The economic useful life was determined based on the period over which the order backlog is expected to be fulfilled. Trade name/trademarks relate to the “Polycom” trade name and related trademarks. The fair value was determined by applying the profit allocation method under the income approach. This valuation method estimates the value of an asset by the profit saved because the company owns the asset. The economic useful life was determined based on the expected life of the trade name and trademarks and the cash flows anticipated over the forecasted periods. The fair value of in-process technology was determined using the discounted cash flow method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by thin-process technology, less charges representing the contribution of other assets to those cash flows. We believe the amounts of purchased intangible assets recorded above represent the fair values of, and approximate the amounts a market participant would pay for, these intangible assets as of the Acquisition Date. For the three and six months ended September 30, 2018 , we recognized $70.9 million in amortization of acquired intangibles related to this acquisition. The remaining weighted-average useful life of intangible assets acquired is 5.38 years. Goodwill is primarily attributable to the assembled workforce, market expansion, and anticipated synergies and economies of scale expected from the integration of the Polycom business. The synergies include certain cost savings, operating efficiencies, and other strategic benefits projected to be achieved. Goodwill is not expected to be deductible for tax purposes. The following summarizes our goodwill activity for the six months ended September 30, 2018 : (in thousands) Amount Goodwill- March 31, 2018 $ 15,498 Polycom Acquisition 1,319,036 Goodwill- September 30, 2018 $ 1,334,534 The actual total net revenues and net loss of Polycom included in our condensed consolidated statement of operations for the period July 2, 2018 to September 30, 2018 are as follows: (in thousands) July 2, 2018 to September 30, 2018 Total net revenues $ 255,038 Net loss $ (96,469 ) The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Polycom had been acquired as of the beginning of fiscal year 2018. The unaudited pro forma information includes adjustments to amortization for intangible assets acquired, the purchase accounting effect on deferred revenue assumed and inventory acquired, restructuring charges related to the acquisition, and transaction and integration costs. For the two fiscal quarters ended September 30, 2017 and 2018, non-recurring pro forma adjustments directly attributable to the Polycom acquisition included (i) the purchase accounting effect of deferred revenue assumed of $36.6 million , (ii) the purchase accounting effect of inventory acquired of $30.4 million , and (iii) acquisition costs of $12.3 million . The unaudited pro forma information presented below is for informational purposes only and is not necessarily indicative of our consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2018 or of the results of our future operations of the combined business. Pro Forma (unaudited) Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Total net revenues $ 483,233 $ 511,639 $ 920,404 $ 1,002,524 Operating income (loss) 3,270 21,298 (117,252 ) 2,468 Net income (loss) $ 250 $ (1,026 ) $ (116,516 ) $ (30,209 ) |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 6 Months Ended |
Sep. 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, short-term, or long-term investments as of September 30, 2018 and March 31, 2018 (in thousands): September 30, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 291,086 $ — $ — $ 291,086 $ 291,086 $ — Level 1: Mutual Funds 14,129 635 (59 ) 14,705 — 14,705 Subtotal 14,129 635 (59 ) 14,705 — 14,705 Total cash, cash equivalents $ 305,215 $ 635 $ (59 ) $ 305,791 $ 291,086 $ 14,705 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 September 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 5 , Deferred Compensation . The Company did not incur any material realized or unrealized gains or losses in the three and six months ended September 30, 2017 and 2018 . There were no transfers between fair value measurement levels during the three and six months ended September 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 derivative foreign currency contracts, interest rate swap and 5.50% Senior Notes. The fair value of Level 2 derivative foreign currency contracts and interest rate swap is determined using pricing models that use observable market inputs. For more information regarding the Company's derivative assets and liabilities, refer to Note 13 , Derivatives . The fair value of Level 2 long-term debt and term loan facility are 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 and term loan facility, refer to Note 8 , Debt. Level 3 The Company's revolving credit facility falls under the Level 3 hierarchy. The fair value of Level 3 revolving credit facility is determined based on inputs that were unobservable in the market. For more information regarding the Company's debt, refer to Note 8 , Debt. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 6 Months Ended |
Sep. 30, 2018 | |
Compensation Related Costs [Abstract] | |
DEFERRED COMPENSATION | DEFERRED COMPENSATION As of September 30, 2018 , the Company held investments in mutual funds totaling $14.7 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 $15.8 million at September 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 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 | 6 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net: March 31, September 30, (in thousands) 2018 2018 Accounts receivable $ 202,270 $ 404,496 Provisions for returns (10,225 ) — 1 Provisions for promotions, rebates, and other (38,284 ) (46,025 ) 1 Provisions for doubtful accounts and sales allowances (873 ) (4,405 ) Accounts receivable, net $ 152,888 $ 354,066 (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, September 30, (in thousands) 2018 2018 Raw materials $ 28,789 $ 34,121 Work in process 450 134 Finished goods 39,037 122,653 Inventory, net $ 68,276 $ 156,908 Accrued Liabilities: March 31, September 30, (in thousands) 2018 2018 Short term deferred revenue $ 2,986 $ 101,385 Employee compensation and benefits 28,655 84,346 Income tax payable 5,583 34,897 Provision for returns — 23,911 1 Current portion long term debt — 12,750 Accrued interest 10,424 10,589 Warranty obligation 7,550 18,298 VAT/Sales tax payable 5,297 10,418 Derivative liabilities 2,947 1,718 Accrued other 16,655 109,465 Accrued liabilities $ 80,097 $ 407,777 (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 six months ended September 30, 2017 and 2018 were as follows: Six Months Ended September 30, (in thousands) 2017 2018 Warranty obligation at beginning of period $ 8,697 $ 18,851 Warranty provision related to products shipped 4,635 7,000 Deductions for warranty claims processed (5,080 ) (124 ) Adjustments related to preexisting warranties 405 (5,403 ) Warranty obligation at end of period (1) $ 8,657 $ 20,324 (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 our condensed consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Polycom Net Minimum Future Rental Payments On July 2, 2018, the Company completed the acquisition of Polycom, refer to Note 3 , Acquisition, Goodwill, and Acquired Intangible Assets , in the accompanying footnotes to the condensed consolidated financial statements. As a result of the Acquisition, in addition to the net minimum future rental payments described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2018, the Company became subject to the following minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of September 30, 2018: Fiscal Year Ending March 31, (in thousands) 2019 $ 15,336 2020 11,815 2021 9,045 2022 4,398 2023 497 Total minimum future rental payments (1) $ 41,091 (1) Included in the lease obligations acquired are Polycom’s sublease receipts, which have been netted against the gross lease payments above to arrive at our net minimum lease payments. 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 September 30, 2018 , the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $446.1 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 matter has been fully briefed, and if the Court determines that an oral argument is necessary, that argument will occur during the week of December 10, 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 under the Stock Purchase Agreement between Plantronics, Polycom and Triangle Private Holdings II, LLP. On September 13, 2018, Mr. Phil Shin filed on behalf of himself and others similarly situated, a purported Class Action Complaint in the United States District Court of the Northern District of California alleging violations of various federal and state consumer protection laws in addition to unfair competition and fraud claims in connection with the Company’s BackBeat FIT headphones. The Company disputes the allegations. The Company’s answer to the complaint is due on November 30, 2018. On January 23, 2018, Fullview, Inc. filed a complaint in the United States District Court of the Northern District of California against Polycom, Inc. alleging infringement of two patents and thereafter filed a similar complaint in connection with the same patents in Canada. Polycom thereafter filed an inter partes reexamination of the patents which is currently on appeal. Litigation in both matters in the United States and Canada, respectively, has been stayed pending the results of that appeal. Fullview has furthermore initiated arbitration proceedings under a terminated license agreement with Polycom alleging Polycom failed to pay certain royalties due under that agreement. Arbitration on the matter is currently scheduled to be held in December 2018. In February 2018, NetTalk.com filed a complaint in the United States District Court of the Northern District of California against Polycom’s wholly-owned subsidiary, Obihai Technologies, alleging infringement of two of NetTalk’s patents. The Company answered the complaint on June 11, 2018 disputing the allegations. Discovery in the matter is ongoing. In June 2018, Ashton Bentley Technology Limited filed a complaint against Polycom, Inc. in the High Court of Justice, Business and Property Court, Commercial Court (QBD), London, United Kingdom, alleging breach of contract. The Company disputes the allegations and on October 5, 2018, Ashton Bentley filed its Reply and Defence to Counterclaim to the Company’s September 6, 2018 Defence and Counterclaims. The Company’s response to Ashton Bentley’s Reply is due on November 16, 2018. On June 21, 2018, directPacket Research Inc. filed a complaint alleging patent infringement by Polycom in the United States District Court for the Eastern District of Virginia, Norfolk Division. The Company disputes the allegations and on October 18, 2018, filed its answer to the complaint. In addition to the specific matters discussed above, the Company is involved in various legal proceedings arising in the normal course of conducting business. Where applicable, in relation to the matters described above, 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. The Company is not able to estimate an amount or range of any reasonably possible loss, including in excess of any amount accrued, 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 | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The estimated fair value and carrying value of the Company's outstanding debt as of March 31, 2018 and September 30, 2018 were as follows: March 31, 2018 September 30, 2018 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 497,095 $ 492,509 $ 500,285 $ 493,234 Term loan facility $ — $ — $ 1,278,991 $ 1,245,757 As of March 31, 2018 , and September 30, 2018 , the net unamortized discount, premium and debt issuance costs on our outstanding debt were $7.5 million and $36.0 million respectively. 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 our 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 Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.500% (1) If the Company redeems the notes prior to the applicable date, the 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. Credit Facility Agreement In connection with the Polycom acquisition completed 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 prior 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. 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 which are being amortized to interest expense over the term of the agreement using the straight line method which approximates the effective interest method for this debt. The proceeds from the initial borrowing under the Credit Agreement were used to finance the acquisition of Polycom, to refinance certain debt of Polycom, to pay related fees, commissions and transaction costs. 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. Subject to certain exceptions, the Credit Agreement is secured by first-priority perfected liens and security interests in substantially all of the personal property of the Company and each subsidiary guarantor and will from time to time also be secured by certain material real property that the Company or any subsidiary guarantor may acquire. Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) LIBOR plus a specified margin, or (ii) the base rate (which is the highest of (a) the prime rate publicly announced from time to time by Wells Fargo Bank, National Association, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin. The Company must also pay (i) an unused commitment fee ranging from 0.200% to 0.300% per annum of the average daily unused portion of the aggregate revolving credit commitments under the Credit Agreement, and (ii) a per annum fee equal to (a) for each performance standby letter of credit outstanding under the Credit Agreement with respect to non-financial contractual obligations, 50% of the applicable margin over LIBOR under the revolving credit facility in effect from time to time multiplied by the daily amount available to be drawn under such letter of credit, and (b) for each other letter of credit outstanding under the Credit Agreement, the applicable margin over LIBOR under the revolving credit facility in effect from time to time multiplied by the daily amount available to be drawn for such letter of credit. 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 includes the following financial covenants applicable to the revolving credit facility only: (i) a maximum consolidated secured net leverage ratio (defined as, with certain adjustments and exclusions, the ratio of the Company’s consolidated secured indebtedness as of the end of the relevant fiscal quarter to consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (“EBITDA”) for the period of four fiscal quarters then ended) of 3.50 to 1.00 as of the last day of any fiscal quarter ending during the period from December 29, 2018 through June 29, 2019; 3.25 to 1.00 as of the last day of any fiscal quarter ending during the period from June 30, 2019 through March 28, 2020; 3.00 to 1.00 as of the last day of any fiscal quarter ending during the period from March 29, 2020 through April 3, 2021; and 2.75 to 1.00 as of the last day of any fiscal quarter ending on or after April 4, 2021; and (ii) a minimum interest coverage ratio (defined as, with certain adjustments, the ratio of the Company’s EBITDA to the Company’s consolidated interest expense to the extent paid or payable in cash) of 2.75 to 1.00 as of the last day of any fiscal quarter ending on or after December 29, 2018.The Credit Agreement also contains customary events of default. If an event of default under the Credit Agreement occurs and is continuing, then the lenders may declare any outstanding obligations under the Credit Agreement to be immediately due and payable; provided, however, that the occurrence of an event of default as a result of a breach of a financial covenant under the Credit Agreement does not constitute a default or event of default with respect to any term facility under the Credit Agreement unless and until the required revolving lenders shall have terminated their revolving commitments and declared all amounts outstanding under the revolving credit facility to be due and payable. In addition, if the Company, any subsidiary guarantor or, with certain exceptions, any other subsidiary becomes the subject of voluntary or involuntary proceedings under any bankruptcy, insolvency or similar law, then any outstanding obligations under the Credit Agreement will automatically become immediately due and payable. Loans outstanding under the Credit Agreement will bear interest at a rate of 2.00% per annum in excess of the otherwise applicable rate (i) while a payment or bankruptcy event of default exists or (ii) upon the lenders’ request, during the continuance of any other event of default. The Company may prepay the loans and terminate the commitments under the Credit Facility Agreement at any time but will incur a 1% prepayment penalty if it prepays within 6 months of entering into this credit agreement. As of September 30, 2018 , the Company has three outstanding letters of credit on the revolving credit facility for a total of $0.7 million . The fair value of the term loan facility was determined based on inputs that were unobservable in the market (Level 3). |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | 6 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) The Company's restructuring liabilities at the end of each period was as follows: As of September 30, (in thousands) 2017 2018 Accrued expenses and other current liabilities $ 438 $ 4,843 Other long-term liabilities — 5,790 Total $ 438 $ 10,633 Summary of Restructuring Plans Polycom post-acquisition plan During the quarter ended September 30, 2018, the Company initiated a post-acquisition restructuring plan to realign the Company's cost structure and resources to take advantage of operational efficiencies following the recent acquisition of Polycom. The costs incurred to date under this plan comprises of severance benefits from reduction in force actions initiated by management during the period. Polycom acquired restructuring liabilities As a result of the acquisition of Polycom, the Company assumed restructuring liabilities under restructuring plans that were initiated under plans approved by Polycom's management prior to the completion of our acquisition on July 2, 2018. As of September 30, 2018, the restructuring reserve was approximately $8.2 million and primarily comprised of facilities-related liabilities which will continue to incur charges over the life of the leases ranging from 2018 to 2023. Plantronics legacy plan 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 region. 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 the Company, 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. The associated charges for the six months ended September 30, 2018 and 2017 are recorded in restructuring and other related charges expense in the condensed consolidated statements of operations, as follows: Six Months Ended September 30, 2018 (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General and Administrative Polycom post-acquisition plan $ 7.4 $ 7.4 $ — $ — Polycom acquired restructuring liability (0.3 ) (0.3 ) — — Plantronics legacy plan 1.5 1.5 — — Totals $ 8.6 $ 8.6 $ — $ — Six Months Ended September 30, 2017 (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General and Administrative Severance benefits from reduction in-force $ 1.4 $ 1.4 $ — $ — Lease exit charge and 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 $ 4.3 $ 2.5 $ 1.6 $ 0.2 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 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 September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Cost of revenues $ 890 $ 1,073 $ 1,792 $ 2,036 Research, development, and engineering 2,008 2,768 4,109 4,990 Selling, general, and administrative 5,864 6,999 12,117 11,964 Stock-based compensation included in operating expenses 7,872 9,767 16,226 16,954 Total stock-based compensation 8,762 10,840 18,018 18,990 Income tax benefit (2,840 ) (2,227 ) (7,689 ) (5,981 ) Total stock-based compensation, net of tax $ 5,922 $ 8,613 $ 10,329 $ 13,009 Long Term Incentive Plan (LTIP) Prior to our acquisition of Polycom, certain Polycom employees were granted incentive rights under the Polycom, Inc. 2016 Long-Term Incentive Plan (“2016 LTIP”). As of the date of acquisition, Plantronics assumed the role of payer to participants of the plan through its payroll but is indemnified by Triangle for obligations under the plan. The acquisition accelerated vesting at 75% of awards held by participants in service as of that date and triggered an initial amount due to such participants. The cash purchase price of the acquisition was reduced by this initial obligation. The remaining 25% of awards will vest upon one-year anniversary of the acquisition. Any future payments above the initial obligation under the plan, provided that the vesting requirements are satisfied, require Triangle to fund Plantronics in order to pay participants for any amount in excess of the purchase price reduction. At July 2, 2018, $7.9 million was recognized in Accrued liabilities assumed from Polycom and was paid in the second quarter of fiscal 2019. The Company recognized an immaterial amount of compensation expense during the second quarter of fiscal 2019 in respect of the awards vesting on the one-year anniversary, which will be payable in the second quarter of fiscal 2020. The amount due as of the acquisition date is based on cash paid to Triangle that was distributed to its parents. Future distributions to its parents of cash made available to Triangle from the release of escrow accounts or the sale of shares issued in the transaction would trigger further compensation due to incentive rights holders under the plan. Since Plantronics is indemnified for any obligations in excess of the reduction to purchase price, and because such amounts are not probable or estimable, no further amounts have been recognized. |
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES | 6 Months Ended |
Sep. 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. As of September 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. Repurchases by the Company pursuant to Board-authorized programs are shown in the following table: Six Months Ended September 30, (in thousands, except $ per share data) 2017 2018 Shares of common stock repurchased in the open market 841,249 — Value of common stock repurchased in the open market $ 39,222 $ — Average price per share $ 46.62 $ — Value of shares withheld in satisfaction of employee tax obligations $ 10,789 $ 13,342 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 | 6 Months Ended |
Sep. 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 September 30, 2018 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (1,663 ) $ 2,798 Accumulated foreign currency translation adjustments 4,685 2,869 Accumulated unrealized loss on investments (152 ) — Accumulated other comprehensive income $ 2,870 $ 5,667 (1) Refer to Note 13 , Derivatives , which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and September 30, 2018 . |
FOREIGN CURRENCY DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 6 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FOREIGN CURRENCY DERIVATIVES | DERIVATIVES Foreign Currency Derivatives The Company's foreign currency derivatives consist primarily of foreign currency forward exchange contracts and option contracts. 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 September 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 September 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 September 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 September 30, 2018 Derivative Assets (1) Non-designated hedges $ 218 $ 317 Cash flow hedges 554 2,496 Interest rate swap — 2,691 Total derivative assets $ 772 $ 5,504 Derivative Liabilities (2) Non-designated hedges $ 34 $ 143 Cash flow hedges 3,003 465 Interest rate swap — 1,570 Accrued interest — 13 Total derivative liabilities $ 3,037 $ 2,191 (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 September 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 September 30, 2018 the portion of derivative liabilities classified as long-term was immaterial. Non-Designated Hedges As of September 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 September 30, 2018 : (in thousands) Local Currency USD Equivalent Position Maturity EUR € 31,000 $ 36,104 Sell EUR 1 month GBP £ 8,400 $ 10,968 Sell GBP 1 month AUD A$ 18,000 $ 13,026 Sell AUD 1 month CAD C$ 2,000 $ 1,549 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 September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Gain (loss) on foreign exchange contracts $ (2,102 ) $ 890 $ (5,235 ) $ 5,041 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 September 30, 2018 (in millions) EUR GBP EUR GBP Option contracts €50.8 £15.6 €49.0 £16.7 Forward contracts €35.0 £10.7 €36.4 £12.5 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 September 30, 2018 , the Company had foreign currency swap contracts of approximately MXN 31.8 million and MXN 0.0 million , respectively. 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 swap involves the receipt of floating-rate interest payments for fixed interest rate payments at a rate of 2.78% over the life of the agreement. We have designated this interest rate swap as a cash flow hedge. The purpose of this swap is to hedge against changes in cash flows (interest payments) attributable to fluctuations in our variable rate debt. The derivative is valued based on prevailing LIBOR rate curves on the date of measurement. The Company also evaluates counterparty credit risk when it calculates the fair value of the swap. The effective portion of changes in the fair value of the derivative is recorded to other comprehensive income (loss) on the accompanying balance sheets and reclassified into interest expense over the life of the underlying debt as interest on our floating rate debt is accrued. We review the effectiveness of this instrument on a quarterly basis, recognize current period hedge ineffectiveness immediately in earnings and will discontinue hedge accounting if we no longer consider hedging to be highly effective. This hedge was fully effective at inception on July 30, 2018 and as of the six months ended September 30, 2018 . During the six months ended September 30, 2018 , we recorded a loss of $0.98 million on our interest rate swap derivative designated as a cash flow hedge. 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 and six months ended September 30, 2017 and 2018 : Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Gain (loss) included in AOCI as of beginning of period $ (1,744 ) $ 1,935 $ 541 $ (1,693 ) Amount of gain (loss) recognized in other comprehensive income (“OCI”) (effective portion) (2,302 ) 813 (4,647 ) 4,769 Amount of (gain) loss reclassified from OCI into net revenues (effective portion) 1,131 (900 ) 1,149 (1,149 ) Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) (174 ) — (132 ) (79 ) Amount of (gain) loss reclassified from OCI into interest expense (effective portion) — 977 — 977 Total amount of (gain) loss reclassified from AOCI to income (loss) (effective portion) 957 77 1,017 (251 ) Gain (loss) included in AOCI as of end of period $ (3,089 ) $ 2,825 $ (3,089 ) $ 2,825 During the three and six months ended September 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 | 6 Months Ended |
Sep. 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 Company's tax provision or benefit is determined using an estimate of our annual effective tax rate and adjusted for discrete items that are taken into account in the relevant period. The effective tax rates for the three months ended September 30, 2017 and 2018 were 19.3% and 19.9% , respectively. The effective tax rates for the six months ended September 30, 2017 and 2018 were 7.2% and 22.3% , respectively. Unlike previous years, the period over period tax rate has been and may continue to be subject to variations relating to several factors including but not limited to changes from U.S. Internal Revenue Service ("IRS") rule making and interpretation of US tax legislation, including the Tax Cuts and Jobs Act (H.R. 1) (the "Act") statutory tax rates reduced 35% to 21%, adjustments to foreign tax regimes, interest expense limitations, mix of jurisdictional income and expense, cost and deductibility of acquisitions expenses (including integration), foreign currency gains (losses) and changes in deferred tax assets and liabilities and their valuation or utilization. As a result, of the current period loss before income taxes during the three and six months ended September 30, 2018, recurring permanent tax benefits increased the effective tax rate, where discrete prior year benefits reduced the effective tax rate on profits before tax generated during the three and six months ended September 30, 2017. For the three and six months ended September 30, 2018 the effective tax rate changed through a release of a valuation allowance for California R&D credits. Prior to the acquisition of Polycom, the Company had limited utilization over future periods and recognized a valuation allowance. With the acquisition of Polycom the California R&D tax credits will decrease resulting in full utilization. Other increases to the effective tax rate for the six-month period ended September 30, 2018 are attributable to the Act and the new mandatory charge on global intangible low-taxed income on previously deferred overseas income. Due to the timing of the enactment and the complexity involved in applying the provisions of the the Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. As we collect and prepare necessary data, and interpret the Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustments may materially affect our provision for income taxes and effective tax rate in the period in which the adjustments are made. The adjustments made in the second quarter of 2018 were not significant. The accounting for the tax effects of the Act will be completed later in 2018. 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. During the three months ended September 30, 2018, the Company released its partial valuation allowance against California R&D credits. This release was a direct result of the Polycom acquisition, as fewer credits are expected to be generated in California as a percentage of worldwide taxable income in future periods. Included in long-term income taxes payable in the condensed consolidated balance sheets as of March 31, 2018 and September 30, 2018 were unrecognized tax benefits of $12.6 million and $26.2 million , respectively, which would favorably impact the effective tax rate in future periods if recognized. The increase is predominantly due to acquired uncertain tax benefits of Polycom. 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 immaterial as of March 31, 2018 and September 30, 2018, respectively. No penalties have been accrued. 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 | 6 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE | COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share is calculated by dividing net income (loss) associated with common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share assumes the issuance of additional shares of common stock by the Company upon exercise of all outstanding stock options and vesting of restricted stock, if the effect is dilutive, in accordance with the treasury stock method or two-class method (whichever is more dilutive). Refer to Note 1 , Basis of Presentation , for additional information regarding the Company's computation of earnings (loss) per common share. The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and six months ended September 30, 2017 and 2018 : Three Months Ended September 30, Six Months Ended September 30, (in thousands, except per share data) 2017 2018 2017 2018 Basic earnings (loss) per common share: Numerator: Net income (loss) $ 19,953 $ (86,709 ) $ 38,781 $ (72,238 ) Denominator: Weighted average common shares, basic 32,570 39,281 32,538 35,938 Dilutive effect of employee equity incentive plans 239 — 573 — Weighted average common shares-diluted 32,809 39,281 33,111 35,938 Basic earnings (loss) per common share $ 0.59 $ (2.21 ) $ 1.16 $ (2.01 ) Diluted earnings (loss) per common share $ 0.59 $ (2.21 ) $ 1.14 $ (2.01 ) Potentially dilutive securities excluded from diluted earnings (loss) per common share because their effect is anti-dilutive 1,389 567 959 385 |
REVENUE AND MAJOR CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 6 Months Ended |
Sep. 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. As part of our recent acquisition of Polycom, the Company also markets and sells voice, video, and content sharing Unified Communications & Collaboration (“UC&C”) solutions. With respect to headsets, the Company makes products for use in offices and contact centers, with mobile devices, cordless phones, and with computers and gaming consoles. Major headset 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 voice, video, and content sharing solutions include products like group series video and immersive telepresence systems, desktop voice and video devices, and universal collaboration servers. Product revenue is largely comprised of sales of hardware devices, peripherals, and platform software licenses used in communication and collaboration in offices and contact centers, with mobile devices, cordless phones, and with computers and gaming consoles. Services revenue primarily includes support on hardware devices, professional, hosted and managed services, and solutions to our customers. The following table disaggregates revenues by major product category for the three and six months ended September 30, 2017 and 2018 : Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Net revenues from unaffiliated customers: Enterprise Headset $ 162,907 $ 169,978 $ 317,512 $ 337,620 Consumer Headset 47,393 58,053 96,714 111,720 Voice* — 121,309 — 121,309 Video* — 85,922 — 85,922 Services* — 47,807 — 47,807 Total net revenues $ 210,300 $ 483,069 $ 414,226 $ 704,378 * Categories were introduced with the acquisition of Polycom on July 2, 2018, amounts are presented net of purchase accounting adjustments. Refer to Note 3 , Acquisition, Goodwill, and Acquired Intangible Assets , of the Condensed Consolidated Financial Statements for additional information regarding this acquisition. For reporting purposes, revenue is attributed to each geographic region based on the location of the customer. Other than the U.S., no country accounted for 10% or more of the Company's net revenues for the three and six months ended September 30, 2017 and 2018 . The following table presents net revenues by geography: Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Net revenues from unaffiliated customers: U.S. $ 111,095 $ 233,629 $ 219,905 $ 347,615 Europe and Africa 56,325 128,957 111,141 192,547 Asia Pacific 24,227 87,471 48,111 114,342 Americas, excluding U.S. 18,653 33,012 35,069 49,874 Total international net revenues 99,205 249,440 194,321 356,763 Total net revenues $ 210,300 $ 483,069 $ 414,226 $ 704,378 One customer, Ingram Micro Group, accounted for 12.4% and 12.2% for the three and six months ended September 30, 2017 respectively. One customer, ScanSource, accounted for 14.4% and 14.0% of net revenues for the three and six months ended September 30, 2018 respectively. 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 . Two customers, Ingram Micro Group and ScanSource, accounted for 20% and 15% respectively, of total net accounts receivable at September 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 our business relates to physical product shipments, 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 service revenue are recognized either over-time or at a point-in-time depending on the nature of the offering. Revenues associated with non-cancellable maintenance and support contracts comprise approximately 90% of our overall service revenue and are recognized ratably over the contract term which typically ranges between one and three years. The Company believes this recognition period faithfully depicts the pattern of transfer of control for maintenance and support as the services are provided in relatively even increments and on a daily basis. For certain products, support is provided free of charge without the purchase of a separate maintenance contract. If the support is determined to rise to the level of a performance obligation, we allocate a portion of the transaction price to the implied support obligation and recognize service revenue over the estimated implied support period which can range between one month to several years, depending on the circumstances. Revenues associated with Professional Services are recognized when the Company has objectively determined that the obligation has been satisfied, which is usually upon customer acceptance. Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. We allocate the transaction price of a contract, to each identified performance obligation based on stand-alone selling price (“SSP”). A fixed discount is always subject to allocation in this manner. If the transaction price is considered variable, the Company determines if the consideration is associated with one or many, but not all of the performance obligations and allocates accordingly. Judgment is also required to determine the stand-alone selling price (“SSP") for each distinct performance obligation. We derive SSP for our performance obligations through a stratification methodology and consider a few characteristics including consideration related to different service types, customer and geography characteristics. We use a single amount to estimate SSP for items that are not sold separately, such as maintenance on term-based licenses. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. 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 or operationally, undelivered or backordered items may be canceled by either party at their discretion. As of September 30, 2018 , our deferred revenue balance was $147.1 million . As of March 31, 2018 , our deferred revenue balance was immaterial. The change is explained by the acquisition of Polycom on July 2, 2018 and the acquired deferred service revenue balances in addition to new service contracts entered into subsequent to the acquisition. The table below represents aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 : September 30, 2018 (in millions) Current Noncurrent Total Polycom performance obligations $ 136.2 $ 45.8 $ 182.0 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 typically bills upon product hardware shipment,at time of software activation or upon completion of services. Revenue is not generally recognized in advance of billing, and any resulting contract asset balances at period end are not considered significant. None of our 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 and are subject to significant judgment. Estimated reserves 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 considered a constraint 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 6 , Details of Certain Balance Sheet Accounts for additional details. For certain arrangements, the Company pays commissions, bonuses and taxes associated with obtaining the contracts. The Company capitalizes such costs if they are deemed to be incremental and recoverable. We have elected to use the practical expedient to record the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Determining the amortization period of costs related to obtaining a contract involves judgment. Capitalized commissions and related expenses, on hardware sales and services recognized at a point in time generally have an amortization period of less than one year. Maintenance-related performance obligations generally have an amortization period greater than one year when considering renewals. Capitalized commissions are amortized to Sales and Marketing Expense on a straight-line basis. The capitalized amount of incremental and recoverable costs of obtaining contracts with an amortization period of greater than one year are $0.9 million as of September 30, 2018 . Amortization of capitalized contract costs for the three and six months ended September 30, 2018 was immaterial. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividends On November 6, 2018 , the Company announced that its Audit Committee had declared and approved the payment of a dividend of $0.15 per share on December 10, 2018 to holders of record on November 20, 2018 . Restructuring On November 2, 2018, the Company committed to a plan of restructuring to begin streamlining the global workforce of the combined company and to consolidate certain distribution activities in North America. These actions are expected to result in approximately $8 million of aggregate charges for employee termination costs and other costs associated with the restructuring, the majority of which will be recognized in the third quarter of fiscal 2019. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Sep. 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 September 30, 2018 are not necessarily indicative of the results to be expected for the entire fiscal year or any future period. The financial results of Polycom have been included in our consolidated financial statements from the date of acquisition on July 2, 2018, refer to Note 3 Acquisition, Acquisition, Goodwill, and Acquired Intangible Assets 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 30, 2019 and March 31, 2018 , respectively, and both consist of 52 weeks. The Company’s results of operations for the three and six months ended September 29, 2018 and September 30, 2017 both contain 13 weeks and 26 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 PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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 assets 17,950 (493 ) 17,457 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 7) 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 balance sheet as of September 30, 2018: September 30, 2018 As Reported Adjustments due to Topic 606 (increase/(decrease)) September 30, 2018 Without Adoption of Topic 606 ASSETS Current assets: Accounts receivable, net $ 354,066 $ (90,906 ) $ 263,160 Other current assets 57,584 (206 ) 57,378 Total current assets 874,349 (91,112 ) 783,237 Other assets 24,647 (747 ) 23,900 Total assets $ 3,370,107 $ (91,859 ) $ 3,278,248 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 407,777 $ (85,681 ) $ 322,096 Total current liabilities 557,694 (85,681 ) 472,013 Deferred tax liability 115,887 (1,001 ) 114,886 Total liabilities 2,580,047 (86,682 ) 2,493,365 Commitments and contingencies (Note 7) Stockholders' equity: Retained earnings 218,565 (5,177 ) 213,388 Total stockholders' equity before treasury stock 1,629,829 (5,177 ) 1,624,652 Total stockholders' equity 790,060 (5,177 ) 784,883 Total liabilities and stockholders' equity $ 3,370,107 $ (91,859 ) $ 3,278,248 The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated financial statements for the three months ended September 30, 2018: CONSOLIDATED STATEMENTS OF OPERATIONS September 30, 2018 Adjustments due to Topic 606 September 30, 2018 Net revenues Net product revenues $ 435,262 $ (2,431 ) $ 432,831 Net service revenues 47,807 81 47,888 Total net revenues 483,069 (2,350 ) 480,719 Gross profit 152,629 (2,350 ) 150,279 Operating expenses: Selling, general, and administrative 174,297 870 175,167 Total operating expenses 238,605 870 239,475 Operating loss (85,976 ) (3,220 ) (89,196 ) Loss before income taxes (108,259 ) (3,220 ) (111,479 ) Income tax expense (benefit) (21,550 ) (470 ) (22,020 ) Net loss $ (86,709 ) $ (2,750 ) $ (89,459 ) Loss per common share: Basic $ (2.21 ) $ (0.07 ) $ (2.28 ) Diluted $ (2.21 ) $ (0.07 ) $ (2.28 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated financial statements for the six months ended September 30, 2018: CONSOLIDATED STATEMENTS OF OPERATIONS September 30, 2018 Adjustments due to Topic 606 September 30, 2018 Net revenues Net product revenues $ 656,571 $ (2,583 ) $ 653,988 Net service revenues 47,807 81 47,888 Total net revenues 704,378 (2,502 ) 701,876 Gross profit 262,472 (2,502 ) 259,970 Operating expenses Selling, general, and administrative 238,500 870 239,370 Total operating expenses 327,799 870 328,669 Operating loss (65,327 ) (3,372 ) (68,699 ) Loss before income taxes (92,941 ) (3,372 ) (96,313 ) Income tax expense (benefit) (20,703 ) (508 ) (21,211 ) Net loss $ (72,238 ) $ (2,864 ) $ (75,102 ) Loss per common share: Basic $ (2.01 ) $ (0.08 ) $ (2.09 ) Diluted $ (2.01 ) $ (0.08 ) $ (2.09 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated statement of comprehensive loss for the three months ended September 30, 2018: CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Selected Line Items (in thousands) (Unaudited) September 30, 2018 as Reported Adjustments due to Topic 606 September 30, 2018 Without Adoption of Topic 606 Net loss $ (86,709 ) $ (2,750 ) $ (89,459 ) Comprehensive loss $ (87,626 ) $ (2,750 ) $ (90,376 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s condensed consolidated statement of comprehensive loss for the six months ended September 30, 2018: CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Selected Line Items (in thousands) (Unaudited) September 30, 2018 as Reported Adjustments due to Topic 606 September 30, 2018 Without Adoption of Topic 606 Net loss $ (72,238 ) $ (2,864 ) $ (75,102 ) Comprehensive loss $ (69,439 ) $ (2,864 ) $ (72,303 ) |
ACQUISITION, GOODWILL, AND AC_2
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed | The preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows: (in thousands) July 2, 2018 ASSETS Cash and cash equivalents $ 80,139 Trade receivables, net 168,595 Inventories 107,820 Prepaid expenses and other current assets 32,551 Property and equipment, net 80,310 Intangible assets 985,400 Other assets 28,572 Total assets acquired $ 1,483,387 LIABILITIES Accounts payable $ 81,854 Accrued payroll and related liabilities 45,317 Accrued expenses 120,167 Income tax payable 30,153 Deferred revenue 114,264 Deferred income taxes 150,112 Other liabilities 35,912 Total liabilities assumed $ 577,779 Total identifiable net assets acquired 905,608 Goodwill 1,319,036 Total Purchase Price $ 2,224,644 |
Details of acquired intangible assets | The details of the acquired intangible assets are as follows: (in thousands, except for remaining life) Value as of July 2, 2018 Amortization for the Three Months Ended September 30, 2018 Value as of September 30, 2018 Weighted Remaining Life of Intangibles Existing technology $ 538,600 $ 27,568 $ 511,032 4.71 In-process technology 58,000 — 58,000 N/A Customer relationships 245,100 12,066 233,034 5.22 Backlog 28,100 28,100 — 0 Trade name/Trademarks 115,600 3,211 112,389 8.75 Total acquired intangible assets $ 985,400 $ 70,945 $ 914,455 |
Details of acquired intangible assets | The details of the acquired intangible assets are as follows: (in thousands, except for remaining life) Value as of July 2, 2018 Amortization for the Three Months Ended September 30, 2018 Value as of September 30, 2018 Weighted Remaining Life of Intangibles Existing technology $ 538,600 $ 27,568 $ 511,032 4.71 In-process technology 58,000 — 58,000 N/A Customer relationships 245,100 12,066 233,034 5.22 Backlog 28,100 28,100 — 0 Trade name/Trademarks 115,600 3,211 112,389 8.75 Total acquired intangible assets $ 985,400 $ 70,945 $ 914,455 |
Schedule of goodwill | The following summarizes our goodwill activity for the six months ended September 30, 2018 : (in thousands) Amount Goodwill- March 31, 2018 $ 15,498 Polycom Acquisition 1,319,036 Goodwill- September 30, 2018 $ 1,334,534 |
Pro forma information | Pro Forma (unaudited) Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Total net revenues $ 483,233 $ 511,639 $ 920,404 $ 1,002,524 Operating income (loss) 3,270 21,298 (117,252 ) 2,468 Net income (loss) $ 250 $ (1,026 ) $ (116,516 ) $ (30,209 ) |
CASH, CASH EQUIVALENTS, AND I_2
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 6 Months Ended |
Sep. 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, short-term, or long-term investments as of September 30, 2018 and March 31, 2018 (in thousands): September 30, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 291,086 $ — $ — $ 291,086 $ 291,086 $ — Level 1: Mutual Funds 14,129 635 (59 ) 14,705 — 14,705 Subtotal 14,129 635 (59 ) 14,705 — 14,705 Total cash, cash equivalents $ 305,215 $ 635 $ (59 ) $ 305,791 $ 291,086 $ 14,705 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 SH_2
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net: March 31, September 30, (in thousands) 2018 2018 Accounts receivable $ 202,270 $ 404,496 Provisions for returns (10,225 ) — 1 Provisions for promotions, rebates, and other (38,284 ) (46,025 ) 1 Provisions for doubtful accounts and sales allowances (873 ) (4,405 ) Accounts receivable, net $ 152,888 $ 354,066 (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, September 30, (in thousands) 2018 2018 Raw materials $ 28,789 $ 34,121 Work in process 450 134 Finished goods 39,037 122,653 Inventory, net $ 68,276 $ 156,908 |
Accrued liabilities | Accrued Liabilities: March 31, September 30, (in thousands) 2018 2018 Short term deferred revenue $ 2,986 $ 101,385 Employee compensation and benefits 28,655 84,346 Income tax payable 5,583 34,897 Provision for returns — 23,911 1 Current portion long term debt — 12,750 Accrued interest 10,424 10,589 Warranty obligation 7,550 18,298 VAT/Sales tax payable 5,297 10,418 Derivative liabilities 2,947 1,718 Accrued other 16,655 109,465 Accrued liabilities $ 80,097 $ 407,777 (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 six months ended September 30, 2017 and 2018 were as follows: Six Months Ended September 30, (in thousands) 2017 2018 Warranty obligation at beginning of period $ 8,697 $ 18,851 Warranty provision related to products shipped 4,635 7,000 Deductions for warranty claims processed (5,080 ) (124 ) Adjustments related to preexisting warranties 405 (5,403 ) Warranty obligation at end of period (1) $ 8,657 $ 20,324 (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 our condensed consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Fiscal Year Ending March 31, (in thousands) 2019 $ 15,336 2020 11,815 2021 9,045 2022 4,398 2023 497 Total minimum future rental payments (1) $ 41,091 (1) Included in the lease obligations acquired are Polycom’s sublease receipts, which have been netted against the gross lease payments above to arrive at our net minimum lease payments. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt at Fair Value | The estimated fair value and carrying value of the Company's outstanding debt as of March 31, 2018 and September 30, 2018 were as follows: March 31, 2018 September 30, 2018 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 497,095 $ 492,509 $ 500,285 $ 493,234 Term loan facility $ — $ — $ 1,278,991 $ 1,245,757 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). |
Summary of Debt Redemption | The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.500% (1) If the Company redeems the notes prior to the applicable date, the 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 RELAT_2
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The associated charges for the six months ended September 30, 2018 and 2017 are recorded in restructuring and other related charges expense in the condensed consolidated statements of operations, as follows: Six Months Ended September 30, 2018 (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General and Administrative Polycom post-acquisition plan $ 7.4 $ 7.4 $ — $ — Polycom acquired restructuring liability (0.3 ) (0.3 ) — — Plantronics legacy plan 1.5 1.5 — — Totals $ 8.6 $ 8.6 $ — $ — Six Months Ended September 30, 2017 (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General and Administrative Severance benefits from reduction in-force $ 1.4 $ 1.4 $ — $ — Lease exit charge and 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 $ 4.3 $ 2.5 $ 1.6 $ 0.2 The Company's restructuring liabilities at the end of each period was as follows: As of September 30, (in thousands) 2017 2018 Accrued expenses and other current liabilities $ 438 $ 4,843 Other long-term liabilities — 5,790 Total $ 438 $ 10,633 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 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 September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Cost of revenues $ 890 $ 1,073 $ 1,792 $ 2,036 Research, development, and engineering 2,008 2,768 4,109 4,990 Selling, general, and administrative 5,864 6,999 12,117 11,964 Stock-based compensation included in operating expenses 7,872 9,767 16,226 16,954 Total stock-based compensation 8,762 10,840 18,018 18,990 Income tax benefit (2,840 ) (2,227 ) (7,689 ) (5,981 ) Total stock-based compensation, net of tax $ 5,922 $ 8,613 $ 10,329 $ 13,009 |
COMMON STOCK REPURCHASES (Table
COMMON STOCK REPURCHASES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Share repurchases | Repurchases by the Company pursuant to Board-authorized programs are shown in the following table: Six Months Ended September 30, (in thousands, except $ per share data) 2017 2018 Shares of common stock repurchased in the open market 841,249 — Value of common stock repurchased in the open market $ 39,222 $ — Average price per share $ 46.62 $ — Value of shares withheld in satisfaction of employee tax obligations $ 10,789 $ 13,342 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Sep. 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 September 30, 2018 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (1,663 ) $ 2,798 Accumulated foreign currency translation adjustments 4,685 2,869 Accumulated unrealized loss on investments (152 ) — Accumulated other comprehensive income $ 2,870 $ 5,667 (1) Refer to Note 13 , Derivatives , which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and September 30, 2018 . |
FOREIGN CURRENCY DERIVATIVES (T
FOREIGN CURRENCY DERIVATIVES (Tables) | 6 Months Ended |
Sep. 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 September 30, 2018 Derivative Assets (1) Non-designated hedges $ 218 $ 317 Cash flow hedges 554 2,496 Interest rate swap — 2,691 Total derivative assets $ 772 $ 5,504 Derivative Liabilities (2) Non-designated hedges $ 34 $ 143 Cash flow hedges 3,003 465 Interest rate swap — 1,570 Accrued interest — 13 Total derivative liabilities $ 3,037 $ 2,191 (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 September 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 September 30, 2018 the portion of derivative liabilities classified as long-term was immaterial. |
Notional Value of Outstanding Foreign Exchange Currency Contracts | The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at September 30, 2018 : (in thousands) Local Currency USD Equivalent Position Maturity EUR € 31,000 $ 36,104 Sell EUR 1 month GBP £ 8,400 $ 10,968 Sell GBP 1 month AUD A$ 18,000 $ 13,026 Sell AUD 1 month CAD C$ 2,000 $ 1,549 Sell CAD 1 month 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 September 30, 2018 (in millions) EUR GBP EUR GBP Option contracts €50.8 £15.6 €49.0 £16.7 Forward contracts €35.0 £10.7 €36.4 £12.5 |
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 September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Gain (loss) on foreign exchange contracts $ (2,102 ) $ 890 $ (5,235 ) $ 5,041 |
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 and six months ended September 30, 2017 and 2018 : Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Gain (loss) included in AOCI as of beginning of period $ (1,744 ) $ 1,935 $ 541 $ (1,693 ) Amount of gain (loss) recognized in other comprehensive income (“OCI”) (effective portion) (2,302 ) 813 (4,647 ) 4,769 Amount of (gain) loss reclassified from OCI into net revenues (effective portion) 1,131 (900 ) 1,149 (1,149 ) Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) (174 ) — (132 ) (79 ) Amount of (gain) loss reclassified from OCI into interest expense (effective portion) — 977 — 977 Total amount of (gain) loss reclassified from AOCI to income (loss) (effective portion) 957 77 1,017 (251 ) Gain (loss) included in AOCI as of end of period $ (3,089 ) $ 2,825 $ (3,089 ) $ 2,825 |
COMPUTATION OF EARNINGS (LOSS_2
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (Tables) | 6 Months Ended |
Sep. 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 (loss) per common share for the three and six months ended September 30, 2017 and 2018 : Three Months Ended September 30, Six Months Ended September 30, (in thousands, except per share data) 2017 2018 2017 2018 Basic earnings (loss) per common share: Numerator: Net income (loss) $ 19,953 $ (86,709 ) $ 38,781 $ (72,238 ) Denominator: Weighted average common shares, basic 32,570 39,281 32,538 35,938 Dilutive effect of employee equity incentive plans 239 — 573 — Weighted average common shares-diluted 32,809 39,281 33,111 35,938 Basic earnings (loss) per common share $ 0.59 $ (2.21 ) $ 1.16 $ (2.01 ) Diluted earnings (loss) per common share $ 0.59 $ (2.21 ) $ 1.14 $ (2.01 ) Potentially dilutive securities excluded from diluted earnings (loss) per common share because their effect is anti-dilutive 1,389 567 959 385 |
REVENUE AND MAJOR CUSTOMERS (Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
REVENUE AND MAJOR CUSTOMERS [Abstract] | |
Schedule Of Revenue Performance Obligations [Table Text Block] | The table below represents aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 : September 30, 2018 (in millions) Current Noncurrent Total Polycom performance obligations $ 136.2 $ 45.8 $ 182.0 |
Net Revenues by Product Group | The following table disaggregates revenues by major product category for the three and six months ended September 30, 2017 and 2018 : Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Net revenues from unaffiliated customers: Enterprise Headset $ 162,907 $ 169,978 $ 317,512 $ 337,620 Consumer Headset 47,393 58,053 96,714 111,720 Voice* — 121,309 — 121,309 Video* — 85,922 — 85,922 Services* — 47,807 — 47,807 Total net revenues $ 210,300 $ 483,069 $ 414,226 $ 704,378 * Categories were introduced with the acquisition of Polycom on July 2, 2018, amounts are presented net of purchase accounting adjustments. Refer to Note 3 , Acquisition, Goodwill, and Acquired Intangible Assets , of the Condensed Consolidated Financial Statements for additional information regarding this acquisition. |
Net Revenues by Geography | The following table presents net revenues by geography: Three Months Ended September 30, Six Months Ended September 30, (in thousands) 2017 2018 2017 2018 Net revenues from unaffiliated customers: U.S. $ 111,095 $ 233,629 $ 219,905 $ 347,615 Europe and Africa 56,325 128,957 111,141 192,547 Asia Pacific 24,227 87,471 48,111 114,342 Americas, excluding U.S. 18,653 33,012 35,069 49,874 Total international net revenues 99,205 249,440 194,321 356,763 Total net revenues $ 210,300 $ 483,069 $ 414,226 $ 704,378 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jul. 02, 2018 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accounts Receivable Financing, Gross | $ 56.3 | |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 32.7 | |
Accounts Receivable Financing, Current | 41 | |
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | $ 19.8 | |
Triangle [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Ownership percentage | 16.00% |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of Adoption of Topic 606 on Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 354,066 | $ 167,109 | $ 152,888 |
Other current assets | 57,584 | 18,588 | |
Total current assets | 874,349 | 913,947 | 899,726 |
Deferred tax assets | 5,320 | 17,457 | 17,950 |
Other assets | 24,647 | 1,584 | |
Total assets | 3,370,107 | 1,090,615 | 1,076,887 |
Accrued liabilities | 407,777 | 91,230 | 80,097 |
Total current liabilities | 557,694 | 136,647 | 125,514 |
Deferred tax liability | 115,887 | 1,976 | |
Total liabilities | 2,580,047 | 735,050 | 723,917 |
Retained earnings | 218,565 | 301,661 | 299,066 |
Total stockholders' equity before treasury stock | 1,629,829 | 1,181,992 | 1,179,397 |
Total stockholders' equity | 790,060 | 355,565 | 352,970 |
Total liabilities and stockholders' equity | 3,370,107 | 1,090,615 | 1,076,887 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 263,160 | 152,888 | |
Other current assets | 57,378 | ||
Total current assets | 783,237 | 899,726 | |
Deferred tax assets | 17,950 | ||
Other assets | 23,900 | ||
Total assets | 3,278,248 | 1,076,887 | |
Accrued liabilities | 322,096 | 80,097 | |
Total current liabilities | 472,013 | 125,514 | |
Deferred tax liability | 114,886 | ||
Total liabilities | 2,493,365 | 723,917 | |
Retained earnings | 213,388 | 299,066 | |
Total stockholders' equity before treasury stock | 1,624,652 | 1,179,397 | |
Total stockholders' equity | 784,883 | 352,970 | |
Total liabilities and stockholders' equity | 3,278,248 | $ 1,076,887 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | (90,906) | 14,221 | |
Other current assets | (206) | ||
Total current assets | (91,112) | 14,221 | |
Deferred tax assets | (493) | ||
Other assets | (747) | ||
Total assets | (91,859) | 13,728 | |
Accrued liabilities | (85,681) | 11,133 | |
Total current liabilities | (85,681) | 11,133 | |
Deferred tax liability | (1,001) | ||
Total liabilities | (86,682) | 11,133 | |
Retained earnings | (5,177) | 2,595 | |
Total stockholders' equity before treasury stock | (5,177) | 2,595 | |
Total stockholders' equity | (5,177) | 2,595 | |
Total liabilities and stockholders' equity | $ (91,859) | $ 13,728 |
RECENT ACCOUNTING PRONOUNCEME_4
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 | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | $ 483,069 | $ 210,300 | $ 704,378 | $ 414,226 |
Gross profit | 152,629 | 107,632 | 262,472 | 210,915 |
Selling, general, and administrative | 174,297 | 57,696 | 238,500 | 113,929 |
Total operating expenses | 238,605 | 77,473 | 327,799 | 157,316 |
Operating income (loss) | (85,976) | 30,159 | (65,327) | 53,599 |
Income (Loss) before income taxes | (108,259) | 24,725 | (92,941) | 41,776 |
Income tax expense (benefit) | (21,550) | 4,772 | (20,703) | 2,995 |
Net income (loss) | $ (86,709) | $ 19,953 | $ (72,238) | $ 38,781 |
Basic earnings (loss) per common share (in dollars per share) | $ (2.21) | $ 0.59 | $ (2.01) | $ 1.16 |
Diluted earnings (loss) per common share (in dollars per share) | $ (2.21) | $ 0.59 | $ (2.01) | $ 1.14 |
Comprehensive income (loss) | $ (87,626) | $ 18,779 | $ (69,439) | $ 35,618 |
Product [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | 435,262 | 210,300 | 656,571 | 414,226 |
Service [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | 47,807 | $ 0 | 47,807 | $ 0 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | 480,719 | 701,876 | ||
Gross profit | 150,279 | 259,970 | ||
Selling, general, and administrative | 175,167 | 239,370 | ||
Total operating expenses | 239,475 | 328,669 | ||
Operating income (loss) | (89,196) | (68,699) | ||
Income (Loss) before income taxes | (111,479) | (96,313) | ||
Income tax expense (benefit) | (22,020) | (21,211) | ||
Net income (loss) | $ (89,459) | $ (75,102) | ||
Basic earnings (loss) per common share (in dollars per share) | $ (2.28) | $ (2.09) | ||
Diluted earnings (loss) per common share (in dollars per share) | $ (2.28) | $ (2.09) | ||
Comprehensive income (loss) | $ (90,376) | $ (72,303) | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Product [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | 432,831 | 653,988 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Service [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | 47,888 | 47,888 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | (2,350) | (2,502) | ||
Gross profit | (2,350) | (2,502) | ||
Selling, general, and administrative | 870 | 870 | ||
Total operating expenses | 870 | 870 | ||
Operating income (loss) | (3,220) | (3,372) | ||
Income (Loss) before income taxes | (3,220) | (3,372) | ||
Income tax expense (benefit) | (470) | (508) | ||
Net income (loss) | $ (2,750) | $ (2,864) | ||
Basic earnings (loss) per common share (in dollars per share) | $ (0.07) | $ (0.08) | ||
Diluted earnings (loss) per common share (in dollars per share) | $ (0.07) | $ (0.08) | ||
Comprehensive income (loss) | $ (2,750) | $ (2,864) | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Product [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | (2,431) | (2,583) | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Service [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net revenues | $ 81 | $ 81 |
ACQUISITION, GOODWILL, AND AC_3
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jul. 02, 2018 | Mar. 31, 2018 |
Accounts payable | |||
Goodwill | $ 1,334,534 | $ 15,498 | |
Polycom [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 80,139 | ||
Trade receivables, net | 168,595 | ||
Inventories | 107,820 | ||
Prepaid expenses and other current assets | 32,551 | ||
Property and equipment, net | 80,310 | ||
Intangible assets | 985,400 | ||
Other assets | 28,572 | ||
Total assets acquired | 1,483,387 | ||
Accounts payable | |||
Accounts payable | 81,854 | ||
Accrued payroll and related liabilities | 45,317 | ||
Accrued expenses | 120,167 | ||
Income tax payable | 30,153 | ||
Deferred revenue | 114,264 | ||
Deferred income taxes | 150,112 | ||
Other liabilities | 35,912 | ||
Total liabilities assumed | 577,779 | ||
Total identifiable net assets acquired | 905,608 | ||
Goodwill | 1,319,036 | ||
Total Purchase Price | $ 2,224,644 |
ACQUISITION, GOODWILL, AND AC_4
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,334,534 | $ 1,334,534 | $ 1,334,534 | $ 15,498 | |
Triangle [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 16.00% | ||||
Polycom [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 255,038 | ||||
Amortization of Intangible Assets | $ 70,945 | $ 70,945 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 4 months 17 days | ||||
Goodwill | $ 1,319,036 | ||||
Business Combination, Consideration Transferred | $ 2,200,000 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued And Issuable, Shares | 6.4 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 500,000 | ||||
Business Combination, Acquisition Related Costs | 26,300 | ||||
Payments to Acquire Businesses, Gross | 1,700,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (96,469) | ||||
Deferred Revenue Adjustment [Member] | |||||
Business Acquisition [Line Items] | |||||
Revenues | (36,600) | ||||
Fair Value Adjustment to Inventory [Member] | |||||
Business Acquisition [Line Items] | |||||
Revenues | 30,400 | ||||
Acquisition-related Costs [Member] | |||||
Business Acquisition [Line Items] | |||||
Revenues | $ 12,300 |
ACQUISITION, GOODWILL, AND AC_5
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS - Acquired Intangible Assets (Details) - Polycom [Member] - USD ($) $ in Thousands | Jul. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 985,400 | ||
Amortization of Intangible Assets | $ 70,945 | $ 70,945 | |
Finite-Lived Intangible Assets, Net | 914,455 | 914,455 | |
Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 538,600 | ||
Amortization of Intangible Assets | 27,568 | ||
Finite-Lived Intangible Assets, Net | 511,032 | 511,032 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 8 months 16 days | ||
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 245,100 | ||
Amortization of Intangible Assets | 12,066 | ||
Finite-Lived Intangible Assets, Net | 233,034 | 233,034 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 2 months 19 days | ||
Order or Production Backlog [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 28,100 | ||
Amortization of Intangible Assets | 28,100 | ||
Finite-Lived Intangible Assets, Net | 0 | 0 | |
Trademarks and Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 115,600 | ||
Amortization of Intangible Assets | 3,211 | ||
Finite-Lived Intangible Assets, Net | 112,389 | 112,389 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 8 years 9 months | ||
In Process Research and Development [Member] | |||
Business Acquisition [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | $ 58,000 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 58,000 | $ 58,000 |
ACQUISITION, GOODWILL, AND AC_6
ACQUISITION, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jul. 02, 2018 | Mar. 31, 2018 |
Goodwill [Line Items] | |||
Goodwill | $ 1,334,534 | $ 15,498 | |
Goodwill | $ 1,334,534 | ||
Polycom [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 1,319,036 | ||
Goodwill | $ 1,319,036 |
ACQUISITION, GOODWILL AND ACQUI
ACQUISITION, GOODWILL AND ACQUIRED INTANGIBLE ASSETS - Pro Forma Information (Details) - Polycom [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Business Acquisition, Pro Forma Revenue | $ 511,639 | $ 483,233 | $ 1,002,524 | $ 920,404 |
Business Acquisition, Pro Forma Operating Income (Loss) | 21,298 | 3,270 | 2,468 | (117,252) |
Business Acquisition, Pro Forma Net Income (Loss) | $ (1,026) | $ 250 | $ (30,209) | $ (116,516) |
CASH, CASH EQUIVALENTS, AND I_3
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | May 31, 2015 |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | |||||
Cash and cash equivalents | $ 291,086 | $ 390,661 | $ 303,116 | $ 301,970 | |
Short-term investments (due in 1 year or less) | 14,705 | 269,313 | |||
Total cash, cash equivalents and investments measured at fair value, amortized cost | 305,215 | 660,176 | |||
Total cash, cash equivalents and investments measured at fair value, gross unrealized gains | 635 | 193 | |||
Total cash, cash equivalents and investments measured at fair value, gross unrealized losses | (59) | (395) | |||
Total cash, cash equivalents and investments measured at fair value, fair value | 305,791 | 659,974 | |||
Cash [Member] | |||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | |||||
Cash and cash equivalents | 291,086 | 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 | 14,129 | 143,053 | |||
Available-for-sale Securities, gross unrealized gains | 635 | 193 | |||
Available-for-sale Securities, gross unrealized losses | (59) | (127) | |||
Available-for-sale Securities, fair value | 14,705 | 143,119 | |||
Short-term investments (due in 1 year or less) | 14,705 | 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 | 14,129 | 13,336 | |||
Available-for-sale Securities, gross unrealized gains | 635 | 186 | |||
Available-for-sale Securities, gross unrealized losses | (59) | (67) | |||
Available-for-sale Securities, fair value | 14,705 | 13,455 | |||
Short-term investments (due in 1 year or less) | $ 14,705 | 13,455 | |||
Level 1 [Member] | US Treasury Notes [Member] | |||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | |||||
Cash and cash equivalents | 30,178 | ||||
Available-for-sale Securities, amortized cost basis | 129,373 | ||||
Available-for-sale Securities, gross unrealized gains | 7 | ||||
Available-for-sale Securities, gross unrealized losses | (60) | ||||
Available-for-sale Securities, fair value | 129,320 | ||||
Short-term investments (due in 1 year or less) | 99,142 | ||||
Level 1 [Member] | Money Market Funds [Member] | |||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | |||||
Cash and cash equivalents | 344 | ||||
Available-for-sale Securities, amortized cost basis | 344 | ||||
Available-for-sale Securities, gross unrealized gains | 0 | ||||
Available-for-sale Securities, gross unrealized losses | 0 | ||||
Available-for-sale Securities, fair value | 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 | ||||
5.50% Senior Notes [Member] | Senior Notes [Member] | |||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | |||||
Stated interest rate of debt instrument | 5.50% | 5.50% |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Bank deposits held | $ 291,086 | $ 390,661 | $ 303,116 | $ 301,970 |
Short-term investments [Member] | Mutual funds [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Investments | 14,700 | |||
Other long-term liabilities [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation liability, noncurrent | $ 15,800 | $ 14,100 |
DETAILS OF CERTAIN BALANCE SH_3
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, net (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Accounts receivable, net [Line Items] | |||
Accounts receivable | $ 404,496 | $ 202,270 | |
Accounts receivable, net | 354,066 | $ 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 | (46,025) | (38,284) | |
Provisions for doubtful accounts and sales allowances [Member] | |||
Accounts receivable, net [Line Items] | |||
Accounts receivable, reserves | $ (4,405) | $ (873) |
DETAILS OF CERTAIN BALANCE SH_4
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 34,121 | $ 28,789 |
Work in process | 134 | 450 |
Finished goods | 122,653 | 39,037 |
Inventory, net | $ 156,908 | $ 68,276 |
DETAILS OF CERTAIN BALANCE SH_5
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Accrued Liabilities [Abstract] | |||
Accrued Deferred Revenue, Current | $ 101,385 | $ 2,986 | |
Employee compensation and benefits | 84,346 | 28,655 | |
Income tax payable | 34,897 | 5,583 | |
Provision for returns | 23,911 | 0 | |
Current portion long term debt | 12,750 | 0 | |
Accrued interest | 10,589 | 10,424 | |
Warranty obligation | 18,298 | 7,550 | |
VAT/Sales tax payable | 10,418 | 5,297 | |
Derivative liabilities | 1,718 | 2,947 | |
Accrued other | 109,465 | 16,655 | |
Accrued liabilities | $ 407,777 | $ 91,230 | $ 80,097 |
DETAILS OF CERTAIN BALANCE SH_6
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Warranty Obligation (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in the Warranty Obligation [Roll Forward] | ||
Warranty obligation at beginning of period | $ 18,851 | $ 8,697 |
Warranty provision related to products shipped | 7,000 | 4,635 |
Deductions for warranty claims processed | (124) | (5,080) |
Adjustments related to preexisting warranties | (5,403) | 405 |
Warranty obligation at end of period | $ 20,324 | $ 8,657 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jan. 23, 2018patent | Jul. 31, 2016USD ($) | Sep. 30, 2018USD ($) |
Loss Contingencies [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 15,336 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 11,815 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 9,045 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 4,398 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 497 | ||
Operating Leases, Future Minimum Payments Due | 41,091 | ||
Unconditional purchase obligations | 446,100 | ||
GN Netcom, Inc. vs. Plantronics, Inc. [Member] | Punitive Sanctions [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $ 4,900 | ||
Litigation Settlement, Amount Awarded from Other Party | $ 200 | ||
Polycom [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 2 | ||
Obihai Technologies [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 2 |
DEBT (Details)
DEBT (Details) | Apr. 04, 2021 | Jul. 02, 2018USD ($) | May 31, 2015USD ($) | Jun. 29, 2019 | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 31, 2018USD ($) |
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Debt Default, Interest Rate In Excess Of Applicable Rate | 2.00% | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 36,000,000 | $ 7,500,000 | |||||||
Line Of Credit Facility, Periodic Payment, Principal, Percentage Multiplied By Funded Amount | 0.25% | ||||||||
Proceeds from issuance of senior notes, net of issuance costs | $ 1,244,713,000 | $ 0 | |||||||
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% | ||||||||
Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 30,000,000 | ||||||||
Principal amount of debt issued | 1,275,000,000 | ||||||||
Long-term Debt | $ 1,245,000,000 | ||||||||
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 | $ 500,285,000 | 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 | $ 493,234,000 | 492,509,000 | |||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Prepayment Penalty, Percent | 1.00% | ||||||||
Maximum borrowing capacity of unsecured revolving credit facility | $ 100,000,000 | ||||||||
Line Of Credit Facility, Unused Capacity, Percentage Over LIBOR Multiplied By Daily Amount Available Under Facility | 50.00% | ||||||||
Debt Instrument, Debt to Earnings Before Interest, Taxes, Depreciation and Amortization Ratio, Minimum | 2.75 | ||||||||
Letters of Credit Outstanding, Amount | $ 700,000 | ||||||||
Revolving Credit Facility [Member] | Minimum [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||||||||
Revolving Credit Facility [Member] | Maximum [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||||||||
Revolving Credit Facility [Member] | Level 2 [Member] | Fair Value [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long-term debt, 5.50% Senior Notes | $ 1,278,991,000 | 0 | |||||||
Revolving Credit Facility [Member] | Level 2 [Member] | Carrying Value [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long-term debt, 5.50% Senior Notes | $ 1,245,757,000 | $ 0 | |||||||
Federal Funds Rate [Member] | Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Spread for interest rate | 0.50% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Spread for interest rate | 1.00% | ||||||||
Scenario, Forecast [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Debt to Earnings Before Interest, Taxes, Depreciation and Amortization Ratio, Minimum | 2.75 | 3.50 | 3.25 | 3 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) - Restructuring Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 10,633 | $ 438 |
Accrued Liabilities And Other Current Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 4,843 | 438 |
Other Long-Term Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 5,790 | $ 0 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 10,633 | $ 438 | $ 10,633 | $ 438 |
Restructuring and other related charges (credits) | 7,261 | $ (51) | 8,581 | 2,522 |
Totals | 4,300 | |||
Restructuring and Other Related Charges (Credits) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 8,600 | 2,500 | ||
Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | 1,600 | ||
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | 200 | ||
Severance Benefits from Reduction-In-Force [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 1,400 | |||
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 (credits) | 1,400 | |||
Severance Benefits from Reduction-In-Force [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 0 | |||
Lease Exit Charge and Asset Impairment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 700 | |||
Lease Exit Charge and Asset Impairment [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 0 | |||
Write-off of Unrecoverable Indirect Tax Asset in Brazil [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 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 (credits) | 700 | |||
Write-off of Unrecoverable Indirect Tax Asset in Brazil [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Asset Impairments Related to Previous Clarity Operations [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 400 | |||
Asset Impairments Related to Previous Clarity Operations [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 0 | |||
Loss on Clarity Asset Sale [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 0 | |||
Loss on Clarity Asset Sale [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 900 | |||
Loss on Clarity Asset Sale [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Accelerated Vesting of Restricted Stock [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 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 (credits) | 0 | |||
Accelerated Vesting of Restricted Stock [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Accelerated Vesting of Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | $ 200 | |||
Polycom Post-Acquisition Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 7,400 | |||
Polycom Post-Acquisition Plan [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 7,400 | |||
Polycom Post-Acquisition Plan [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Polycom Post-Acquisition Plan [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Polycom Acquired Restructuring Liability [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | (300) | |||
Polycom Acquired Restructuring Liability [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | (300) | |||
Polycom Acquired Restructuring Liability [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Polycom Acquired Restructuring Liability [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Plantronics Legacy Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 1,500 | |||
Plantronics Legacy Plan [Member] | Restructuring and Other Related Charges (Credits) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 1,500 | |||
Plantronics Legacy Plan [Member] | Cost of Revenues [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Plantronics Legacy Plan [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges (credits) | 0 | |||
Polycom [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 8,200 | $ 8,200 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation | $ 10,840 | $ 8,762 | $ 18,990 | $ 18,018 | ||
Income tax benefit | (2,227) | (2,840) | (5,981) | (7,689) | ||
Total stock-based compensation, net of tax | 8,613 | 5,922 | 13,009 | 10,329 | ||
Employee compensation and benefits | 84,346 | 84,346 | $ 28,655 | |||
Cost of revenues [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation | 1,073 | 890 | 2,036 | $ 1,792 | ||
Research, development, and engineering [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation | 2,768 | 2,008 | 4,990 | 4,109 | ||
Selling, general, and administrative [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Total stock-based compensation | 6,999 | 5,864 | 11,964 | $ 12,117 | ||
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 | 9,767 | $ 7,872 | 16,954 | $ 16,226 | ||
Polycom [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Employee compensation and benefits | $ 7,900 | $ 7,900 | ||||
Share-based Compensation Award, Tranche One [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement By Share-based Payment Award, Accelerated Vesting, Percentage | 75.00% | |||||
Share-based Compensation Award, Tranche Two [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement By Share-based Payment Award, Accelerated Vesting, Percentage | 25.00% |
COMMON STOCK REPURCHASES (Detai
COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Remaining shares authorized for repurchase under program | 730,105 | ||
Shares of common stock repurchased in the open market | 0 | 841,249 | |
Treasury Stock, Value, Acquired, Cost Method | $ 0 | $ 39,222 | |
Value of common stock repurchased in the open market | $ 0 | $ 39,222 | |
Average cost per share of shares repurchased (in dollars per share) | $ 0 | $ 46.62 | |
Value of shares withheld in satisfaction of employee tax obligations | $ 13,342 | $ 10,789 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Accumulated unrealized gain (loss) on cash flow hedges | [1] | $ 2,798 | $ (1,663) |
Accumulated foreign currency translation adjustments | 2,869 | 4,685 | |
Accumulated unrealized loss on investments | 0 | (152) | |
Accumulated other comprehensive income | $ 5,667 | $ 2,870 | |
[1] | Refer to Note 13, Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and September 30, 2018. |
FOREIGN CURRENCY DERIVATIVES (D
FOREIGN CURRENCY DERIVATIVES (Details) $ in Thousands, $ in Thousands | Jul. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018MXN ($) | Mar. 31, 2018MXN ($) | Dec. 31, 2017financial_institution |
Derivative [Line Items] | ||||||||
Number of financial institutions company has International Swap and Derivatives Association agreements | financial_institution | 4 | |||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (813) | $ 2,302 | $ (4,769) | $ 4,647 | ||||
Foreign currency swap contract [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of contracts | $ 0 | $ 31,800 | ||||||
Interest Rate Swap [Member] | ||||||||
Derivative [Line Items] | ||||||||
Term of derivative contract | 4 years | |||||||
Notional amount of contracts | $ 831,000 | |||||||
Derivative, Fixed Interest Rate | 2.78% | |||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 980 | |||||||
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 _2
FOREIGN CURRENCY DERIVATIVES (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Derivative [Line Items] | ||
Total derivative liabilities | $ 1,718 | $ 2,947 |
Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 5,504 | 772 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 317 | 218 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Total derivative liabilities | 2,191 | 3,037 |
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total derivative liabilities | 143 | 34 |
Cash flow hedges [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 2,496 | 554 |
Cash flow hedges [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total derivative liabilities | 465 | 3,003 |
Interest Rate Swap [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Total derivative assets | 2,691 | 0 |
Interest Rate Swap [Member] | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Total derivative liabilities | 1,570 | 0 |
Accrued Interest On Derivatives | $ 13 | $ 0 |
FOREIGN CURRENCY DERIVATIVES _3
FOREIGN CURRENCY DERIVATIVES (Details 2) - 6 months ended Sep. 30, 2018 € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | USD ($) | EUR (€) | CAD ($) | GBP (£) | AUD ($) |
Foreign Exchange Forward, EURO [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | $ 36,104 | € 31,000 | |||
Position | Sell EUR | ||||
Maturity | 1 month | ||||
Foreign Exchange Forward, GBP [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | $ 10,968 | £ 8,400 | |||
Position | Sell GBP | ||||
Maturity | 1 month | ||||
Foreign Exchange Forward, AUD [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | $ 13,026 | $ 18,000 | |||
Position | Sell AUD | ||||
Maturity | 1 month | ||||
Foreign Exchange Forward, CAD [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of contracts | $ 1,549 | $ 2,000 | |||
Position | Sell CAD | ||||
Maturity | 1 month |
FOREIGN CURRENCY DERIVATIVES _4
FOREIGN CURRENCY DERIVATIVES (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on foreign exchange contracts | $ 890,000 | $ (2,102) | $ 5,041,000 | $ (5,235,000) |
FOREIGN CURRENCY DERIVATIVES _5
FOREIGN CURRENCY DERIVATIVES (Details 4) | Sep. 30, 2018EUR (€) | Sep. 30, 2018GBP (£) | Mar. 31, 2018EUR (€) | Mar. 31, 2018GBP (£) |
Option contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of contracts | € 49,000,000 | £ 16,700,000 | € 50,800,000 | £ 15,600,000 |
Forward contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of contracts | € 36,400,000 | £ 12,500,000 | € 35,000,000 | £ 10,700,000 |
FOREIGN CURRENCY DERIVATIVES _6
FOREIGN CURRENCY DERIVATIVES (Details 5) - MXN ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Foreign currency swap contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of contracts | $ 0 | $ 31,800 |
FOREIGN CURRENCY DERIVATIVES _7
FOREIGN CURRENCY DERIVATIVES (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Gain (loss) included in AOCI as of beginning of period | $ 1,935 | $ (1,744) | $ 541 | $ (1,693) | $ 541 |
Amount of gain (loss) recognized in other comprehensive income (“OCI”) (effective portion) | 813 | (2,302) | (4,647) | 4,769 | |
Amount of (gain) loss reclassified from OCI into net revenues (effective portion) | 483,069 | 210,300 | 704,378 | 414,226 | |
Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) | (330,440) | (102,668) | (441,906) | (203,311) | |
Amount of (gain) loss reclassified from OCI into interest expense (effective portion) | (23,893) | (7,260) | (31,220) | (14,563) | |
Total amount of (gain) loss reclassified from AOCI to income (loss) (effective portion) | 77 | 957 | 1,017 | (251) | |
Gain (loss) included in AOCI as of end of period | 2,825 | (3,089) | (1,744) | 2,825 | $ (3,089) |
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) | (900) | 1,131 | 1,149 | (1,149) | |
Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) | 0 | (174) | (132) | (79) | |
Amount of (gain) loss reclassified from OCI into interest expense (effective portion) | $ 977 | $ 0 | $ 0 | $ 977 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 19.90% | 19.30% | 22.30% | 7.20% | |
Unrecognized tax benefits | $ 26,200,000 | $ 26,200,000 | $ 12,600,000 | ||
Accrued penalties | $ 0 | $ 0 | $ 0 |
COMPUTATION OF EARNINGS (LOSS_3
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) | $ (86,709) | $ 19,953 | $ (72,238) | $ 38,781 |
Denominator: | ||||
Weighted average common shares-basic (in shares) | 39,281 | 32,570 | 35,938 | 32,538 |
Dilutive effect of employee equity incentive plans (in shares) | 0 | 239 | 0 | 573 |
Weighted average common shares-diluted (in shares) | 39,281 | 32,809 | 35,938 | 33,111 |
Basic earnings (loss) per common share (in dollars per share) | $ (2.21) | $ 0.59 | $ (2.01) | $ 1.16 |
Diluted earnings (loss) per common share (in dollars per share) | $ (2.21) | $ 0.59 | $ (2.01) | $ 1.14 |
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 567 | 1,389 | 385 | 959 |
REVENUE AND MAJOR CUSTOMERS (De
REVENUE AND MAJOR CUSTOMERS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)Customer | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Customer | Sep. 30, 2017USD ($)Customer | Mar. 31, 2018Customer | |
Revenue from External Customer [Line Items] | |||||
Revenue, Remaining Performance Obligation, Current | $ 136,200 | $ 136,200 | |||
Net revenues | 483,069,000 | $ 210,300,000 | $ 704,378,000 | $ 414,226,000 | |
Revenue From Contracts With Customers, Percentage Associated With Non-cancellable Maintenance And Support Contracts | 90.00% | ||||
Contract with Customer, Liability | 147,100,000 | $ 147,100,000 | |||
Capitalized Contract Cost, Gross | 900,000 | 900,000 | |||
Revenue, Remaining Performance Obligation, Noncurrent | 45,800 | 45,800 | |||
Revenue, Remaining Performance Obligation | 182,000 | 182,000 | |||
US [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 233,629,000 | 111,095,000 | 347,615,000 | 219,905,000 | |
Europe and Africa [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 128,957,000 | 56,325,000 | 192,547,000 | 111,141,000 | |
Asia Pacific [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 87,471,000 | 24,227,000 | 114,342,000 | 48,111,000 | |
Americas, excluding U.S. [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 33,012,000 | 18,653,000 | 49,874,000 | 35,069,000 | |
Total international net revenues [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 249,440,000 | 99,205,000 | 356,763,000 | 194,321,000 | |
Enterprise Headset [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 169,978,000 | 162,907,000 | 337,620,000 | 317,512,000 | |
Consumer Headset [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 58,053,000 | 47,393,000 | 111,720,000 | 96,714,000 | |
Voice [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 121,309,000 | 0 | 121,309,000 | 0 | |
Video [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 85,922,000 | 0 | 85,922,000 | 0 | |
Service [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | $ 47,807,000 | $ 0 | $ 47,807,000 | $ 0 | |
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 | ||||
Concentration risk percentage | 14.40% | 12.40% | 14.00% | 12.20% | |
Net Revenues [Member] | Customer Concentration Risk [Member] | ScanSource [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Number of major customers, ten percent or greater, net revenues | Customer | 1 | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Ingram Micro [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk percentage | 20.00% | 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] | Ingram Micro And ScanSource [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Number of major customers, ten percent or greater, net accounts receivable | Customer | 2 | 2 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | D&H Distributors [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk percentage | 13.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ScanSource [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Concentration risk percentage | 15.00% | ||||
Minimum [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue From Contracts With Customers, Credit Term | 30 days | ||||
Maximum [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue From Contracts With Customers, Credit Term | 90 days |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | Nov. 06, 2018 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Cash dividend payable per share (in dollars per share) | $ 0.15 | |
Employee Severance [Member] | Scenario, Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Expected restructuring costs | $ 8 |