DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | May 08, 2019 | Sep. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PLANTRONICS INC /CA/ | ||
Entity Central Index Key | 0000914025 | ||
Current Fiscal Year End Date | --03-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 39,519,584 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,383,431,017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 202,509 | $ 390,661 |
Short-term investments | 13,332 | 269,313 |
Accounts receivable, net | 337,671 | 152,888 |
Inventory, net | 177,146 | 68,276 |
Other current assets | 50,488 | 18,588 |
Total current assets | 781,146 | 899,726 |
Property, plant, and equipment, net | 204,826 | 142,129 |
Purchased intangibles, net | 825,675 | 0 |
Goodwill | 1,278,380 | 15,498 |
Deferred tax and other assets | 26,508 | 19,534 |
Total assets | 3,116,535 | 1,076,887 |
Current liabilities: | ||
Accounts payable | 129,514 | 45,417 |
Accrued liabilities | 398,715 | 80,097 |
Total current liabilities | 528,229 | 125,514 |
Long term debt, net of issuance costs | 1,640,801 | 492,509 |
Long-term income taxes payable | 83,121 | 87,328 |
Other long-term liabilities | 142,697 | 18,566 |
Total liabilities | 2,394,848 | 723,917 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value per share; 1,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock, $0.01 par value per share; 100,000 shares authorized, 49,278 shares and 56,113 shares issued at 2018 and 2019, respectively | 884 | 816 |
Additional paid-in capital | 1,431,607 | 876,645 |
Accumulated other comprehensive income (loss) | (475) | 2,870 |
Retained earnings | 143,344 | 299,066 |
Total stockholders' equity before treasury stock | 1,575,360 | 1,179,397 |
Less: Treasury stock (common: 16,027 shares and 16,595 shares at 2018 and 2019, respectively) at cost | (853,673) | (826,427) |
Total stockholders' equity | 721,687 | 352,970 |
Total liabilities and stockholders' equity | $ 3,116,535 | $ 1,076,887 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 56,113,000 | 49,278,000 |
Treasury stock, common shares | 16,595,000 | 16,027,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net revenues | $ 1,674,535 | $ 856,903 | $ 881,176 |
Cost of revenues | 980,396 | 417,788 | 439,806 |
Gross profit | 694,139 | 439,115 | 441,370 |
Operating expenses: | |||
Research, development, and engineering | 201,886 | 84,193 | 88,318 |
Selling, general, and administrative | 567,879 | 229,390 | 223,830 |
(Gain) loss, net from litigation settlements | 975 | (420) | 4,255 |
Restructuring and other related charges (credits) | 32,694 | 2,451 | (109) |
Total operating expenses | 803,434 | 315,614 | 316,294 |
Operating income (loss) | (109,295) | 123,501 | 125,076 |
Interest expense | (83,000) | (29,297) | (29,230) |
Other non-operating income and (expense), net | 6,603 | 6,023 | 5,819 |
Income (loss) before income taxes | (185,692) | 100,227 | 101,665 |
Income tax expense (benefit) | (50,131) | 101,096 | 19,066 |
Net income (loss) | $ (135,561) | $ (869) | $ 82,599 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (3.61) | $ (0.03) | $ 2.56 |
Diluted (in dollars per share) | $ (3.61) | $ (0.03) | $ 2.51 |
Shares used in computing earnings (loss) per common share: | |||
Basic (in shares) | 37,569 | 32,345 | 32,279 |
Diluted (in shares) | 37,569 | 32,345 | 32,963 |
Cash dividends declared per common share (in dollars per share) | $ 0.6 | $ 0.6 | $ 0.6 |
Product [Member] | |||
Net revenues | $ 1,510,770 | ||
Cost of revenues | 902,625 | ||
Service [Member] | |||
Net revenues | 163,765 | $ 0 | $ 0 |
Cost of revenues | $ 77,771 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (135,561) | $ (869) | $ 82,599 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 150 | 257 | (311) |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized cash flow hedge gains (losses) arising during the year | (4,176) | (6,741) | 3,095 |
Net (gains) losses reclassified into net revenues for revenue hedges (effective portion) | (4,034) | 4,715 | (4,111) |
Net (gains) losses reclassified into cost of revenues for cost of revenues hedges (effective portion) | (177) | (208) | 2,663 |
Net (gains) losses reclassified into income for interest rate swap hedges | 2,600 | 0 | 0 |
Net unrealized gains (losses) on cash flow hedges | (5,787) | (2,234) | 1,647 |
Unrealized holding gains (losses) during the year | 198 | 48 | (516) |
Aggregate income tax benefit of the above items | 2,095 | 105 | 115 |
Other comprehensive income (loss) | (3,344) | (1,824) | 935 |
Comprehensive income (loss) | $ (138,905) | $ (2,693) | $ 83,534 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (135,561) | $ (869) | $ 82,599 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 201,369 | 21,178 | 20,977 |
Amortization of debt issuance costs | 4,593 | 1,450 | 1,450 |
Stock-based compensation | 41,934 | 33,959 | 33,539 |
Deferred income taxes | (49,932) | 7,464 | (657) |
Provision for excess and obsolete inventories | 7,386 | 3,456 | 1,960 |
Restructuring and other related charges (credits) | 32,694 | 2,451 | (109) |
Cash payments for restructuring charges | (29,463) | (2,942) | (4,001) |
Other operating activities | 9,640 | (305) | 2,948 |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | (10,307) | (12,238) | (13,894) |
Inventory | (7,182) | (13,309) | (3,791) |
Current and other assets | 30,747 | (2,480) | 1,386 |
Accounts payable | 3,658 | 2,884 | 4,377 |
Accrued liabilities | 61,593 | (4,164) | 13,260 |
Income taxes | (45,122) | 84,613 | (657) |
Cash provided by operating activities | 116,047 | 121,148 | 139,387 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of investments | 131,300 | 197,575 | 157,066 |
Proceeds from maturities of investments | 131,017 | 211,663 | 144,092 |
Purchase of investments | (822) | (373,281) | (300,434) |
Acquisition, net of cash acquired | (1,642,241) | 0 | |
Capital expenditures | (26,797) | (12,468) | (23,176) |
Cash provided from (used for) investing activities | (1,407,543) | 23,489 | (22,452) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repurchase of common stock | (13,177) | (52,948) | (34,236) |
Employees' tax withheld and paid for restricted stock and restricted stock units | (14,070) | (11,429) | (9,736) |
Proceeds from issuances under stock-based compensation plans | 15,730 | 23,927 | 15,202 |
Payment of cash dividends | (22,880) | (19,996) | (19,959) |
Proceeds from revolving line of credit | 0 | 8,000 | 0 |
Repayments of revolving line of credit | 0 | (8,000) | 0 |
Repayments of Long-term Debt | (103,188) | 0 | 0 |
Proceeds from debt issuance, net of issuance costs | 1,244,713 | 0 | 0 |
Other financing activity | 0 | 0 | 761 |
Cash provided from (used for) financing activities | 1,107,128 | (60,446) | (47,968) |
Effect of exchange rate changes on cash and cash equivalents | (3,784) | 4,500 | (2,263) |
Net increase (decrease) in cash and cash equivalents | (188,152) | 88,691 | 66,704 |
Cash and cash equivalents at beginning of year | 390,661 | 301,970 | 235,266 |
Cash and cash equivalents at end of year | 202,509 | 390,661 | 301,970 |
SUPPLEMENTAL DISCLOSURES | |||
Cash paid for income taxes | 44,917 | 9,757 | 20,948 |
Cash paid for interest | $ 75,684 | $ 27,899 | $ 27,783 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
Common stock, shares, beginning of period at Mar. 31, 2016 | 33,320,000 | |||||
Stockholders' equity, beginning of period at Mar. 31, 2016 | $ 312,399 | $ 793 | $ 769,489 | $ 3,759 | $ 257,291 | $ (718,933) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 82,599 | 82,599 | ||||
Foreign currency translation adjustments | (311) | (311) | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | 1,616 | 1,616 | ||||
Net unrealized gains (losses) on investments, net of tax | (370) | (370) | ||||
Proceeds from issuances under stock-based compensation plans, shares | 1,125,000 | |||||
Proceeds from issuances under stock-based compensation plans | 15,204 | $ 11 | 15,193 | |||
Repurchase of restricted common stock, shares | (47,000) | |||||
Repurchase of restricted common stock | 0 | $ 0 | ||||
Cash dividends | (19,959) | (19,959) | ||||
Stock-based compensation | 33,539 | 33,539 | ||||
Tax benefit from stock-based awards | 546 | 546 | ||||
Repurchase of common stock, shares | (764,000) | |||||
Repurchase of common stock | (34,236) | (34,236) | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | (218,000) | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (9,736) | $ 0 | (9,736) | |||
Other equity changes related to compensation | 865 | 10 | 855 | |||
Common stock, shares, end of period at Mar. 31, 2017 | 33,416,000 | |||||
Stockholders' equity, end of period at Mar. 31, 2017 | 382,156 | $ 804 | 818,777 | 4,694 | 319,931 | (762,050) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (869) | (869) | ||||
Foreign currency translation adjustments | 257 | 257 | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | (2,190) | (2,190) | ||||
Net unrealized gains (losses) on investments, net of tax | 109 | 109 | ||||
Proceeds from issuances under stock-based compensation plans, shares | 1,288,000 | |||||
Proceeds from issuances under stock-based compensation plans | 23,927 | $ 12 | 23,915 | |||
Repurchase of restricted common stock, shares | (98,000) | |||||
Repurchase of restricted common stock | 0 | $ 0 | ||||
Cash dividends | (19,996) | (19,996) | ||||
Stock-based compensation | $ 33,959 | 33,959 | ||||
Repurchase of common stock, shares | (1,139,548) | (1,140,000) | ||||
Repurchase of common stock | $ (52,948) | (52,948) | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | (215,000) | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (11,429) | $ 0 | (11,429) | |||
Other equity changes related to compensation | (6) | (6) | 0 | |||
Common stock, shares, end of period at Mar. 31, 2018 | 33,251,000 | |||||
Stockholders' equity, end of period at Mar. 31, 2018 | 352,970 | $ 816 | 876,645 | 2,870 | 299,066 | (826,427) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (135,561) | (135,561) | ||||
Foreign currency translation adjustments | 150 | 150 | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | (3,371) | (3,371) | ||||
Proceeds from issuances under stock-based compensation plans, shares | 576,000 | |||||
Proceeds from issuances under stock-based compensation plans | 18,720 | $ 4 | 18,716 | |||
Repurchase of restricted common stock, shares | (93,000) | |||||
Repurchase of restricted common stock | 0 | $ 0 | ||||
Issuance of common stock for acquisition, shares | 6,352,000 | |||||
Issuance of common stock for acquisition | 494,265 | $ 64 | 494,201 | |||
Cash dividends | (22,880) | (22,880) | ||||
Stock-based compensation | $ 41,934 | 41,934 | ||||
Repurchase of common stock, shares | (361,091) | 361,000 | ||||
Repurchase of common stock | $ (13,177) | (13,177) | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | (207,000) | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (14,070) | $ 0 | (14,070) | |||
Other equity changes related to compensation | 112 | 112 | 0 | |||
Common stock, shares, end of period at Mar. 31, 2019 | 39,518,000 | |||||
Stockholders' equity, end of period at Mar. 31, 2019 | $ 721,687 | $ 884 | $ 1,431,608 | $ (475) | $ 143,344 | $ (853,674) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Management's Use of Estimates and Assumptions The Company's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In connection with the preparation of our financial statements, the Company is required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, net revenues, expenses, and the related disclosures. The Company bases its assumptions, estimates, and judgments on historical experience, current trends, future expectations, and other factors that management believes to be relevant at the time the consolidated financial statements are prepared. On an ongoing basis, the Company reviews its accounting policies, assumptions, estimates, and judgments, including those related to revenue and related reserves and allowances, inventory valuation, product warranty obligations, the useful lives of long-lived assets including property, plant and equipment, investment fair values, stock-based compensation, the valuation of and assessment of recoverability of intangible assets and their useful lives, income taxes, contingencies, and restructuring charges, to ensure that the consolidated financial statements are presented fairly and in accordance with U.S. GAAP. Because future events and their effects cannot be determined with certainty, actual results could differ from the Company's assumptions and estimates. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has included the results of operations of acquired companies from the date of acquisition. All intercompany balances and transactions have been eliminated. Fiscal Year The Company’s fiscal year ends on the Saturday closest to the last day of March. Fiscal Years 2019 , 2018 , and 2017 each had 52 weeks and ended on March 30, 2019 , March 31, 2018 , and April 1, 2017 , respectively. For purposes of presentation, the Company has indicated its accounting fiscal year as ending on March 31. Financial Instruments Cash, Cash Equivalents and Investments All highly liquid investments with initial stated maturities of three months or less at the date of purchase are classified as cash equivalents. The Company classifies its investments as either short-term or long-term based on each instrument's underlying effective maturity date and reasonable expectations with regard to sales and redemptions of the instruments. All short-term investments have effective maturities less than 12 months, while all long-term investments have effective maturities greater than 12 months. The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. The Company did not incur any material realized or unrealized gains or losses during Fiscal Year 2019 . As of March 31, 2019 , with the exception of assets related to the Company's deferred compensation plan and classified as trading securities, all investments were classified as available-for-sale, with unrealized gains and losses recorded as a separate component of accumulated other comprehensive income (loss) ("AOCI") in stockholders’ equity. The specific identification method is used to determine the cost of disposed securities, with realized gains and losses reflected in other non-operating income and (expense), net. Foreign Currency Derivatives The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative foreign currency contracts are valued using pricing models that use observable inputs. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Company enters into foreign exchange forward contracts to reduce the impact of foreign currency fluctuations on assets and liabilities denominated in currencies other than the functional currency of the reporting entity. The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts are carried at fair value with changes in the fair value recorded within other non-operating income and (expense), net in the consolidated statements of operations. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes on the underlying foreign currency denominated assets and liabilities, and therefore, do not subject the Company to material balance sheet risk. The Company has significant international revenues and costs denominated in foreign currencies, subjecting it to foreign currency risk. The Company purchases foreign currency option contracts and cross-currency swaps that qualify as cash flow hedges, with maturities of up to 24 months, to reduce the volatility of cash flows related primarily to forecasted revenue and expenses. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of AOCI and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. The Company entered into a 4-year amortizing interest rate swap in order to hedge against changes in cash flows (interest payments) attributable to fluctuations in the Company's variable rate debt. 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 the Company's floating rate debt is accrued. The Company reviews the effectiveness of this instrument on a quarterly basis, recognize current period hedge ineffectiveness immediately in earnings and will discontinue hedge accounting if the Company no longer considers hedging to be highly effective. The Company does not hold or issue derivative financial instruments for speculative trading purposes. The Company enters into derivatives only with counterparties that are among the largest United States ("U.S.") banks, ranked by assets, in order to minimize its credit risk and to date, no such counterparty has failed to meet its financial obligations under such contracts. Provision for Doubtful Accounts The Company maintains a provision for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company regularly performs credit evaluations of its customers’ financial conditions and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks, and economic conditions that may affect a customer’s ability to pay. Inventory and Related Reserves Inventories are valued at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. The Company writes down inventories that have become obsolete or are in excess of anticipated demand or net realizable value. The Company's estimate of write downs for excess and obsolete inventory is based on a detailed analysis of on-hand inventory and purchase commitments in excess of forecasted demand. A substantial portion of the raw materials, components and subassemblies (together, “parts”) used in the Company's products are provided by its suppliers on a consignment basis. These consigned inventories are not recorded on the Company's consolidated balance sheet until it takes title to the parts, which occurs when they are consumed in the production process. The Company provides forecasts to its suppliers covering up to thirteen weeks of demand and places purchase orders when the parts are consumed in the production process, at which time all rights, title, and interest in and to the parts transfers to the Company. Prior to consumption in the production process, the Company's suppliers bear the risk of loss and retain title to the consigned inventory. The terms of the agreements allow the Company to return parts in excess of maximum order quantities to the suppliers at the supplier’s expense. Returns for other reasons are negotiated with the suppliers on a case-by-case basis and to date have been immaterial. As of March 31, 2019 , the Company’s aggregate commitment to suppliers for parts used in the manufacture of the Company’s products was $287.5 million , which the Company expects to utilize in the normal course of business, net of an immaterial purchase commitments reserve. The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to use in normal ongoing operations within the next twelve months. As of March 31, 2019 , and 2018 , the off-balance sheet consigned inventory balances were $47.1 million and $48.8 million , respectively. Product Warranty Obligations The Company records a liability for the estimated costs of warranties at the time the related revenue is recognized. The specific warranty terms and conditions range from one to two years starting from the delivery date to the end user and vary depending upon the product sold and the country in which the Company does business. Factors that affect the warranty obligations include product failure rates, estimated return rates, the amount of time lapsed from the date of sale to the date of return, material usage, service related costs incurred in correcting product failure claims, and knowledge of specific product failures that are outside of the Company’s typical experience. Goodwill and Purchased Intangibles Goodwill has been measured as the excess of the cost of acquisition over the amount assigned to tangible and identifiable intangible assets acquired less liabilities assumed. At least annually, in the fourth quarter of each fiscal year or more frequently if indicators of impairment exist, management performs a review to determine if the carrying value of goodwill is impaired. The identification and measurement of goodwill impairment involves the estimation of fair value at the Company’s reporting unit level. The Company determines its reporting units by assessing whether discrete financial information is available and if segment management regularly reviews the results of that component. The Company has determined it has one reporting unit. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, the first step of the two-step impairment test must be performed by estimating the fair value of the reporting unit and comparing it with its carrying value, including goodwill. Intangible assets other than goodwill are carried at cost and amortized on a straight-line basis over their estimated useful lives. The Company reviews identifiable finite-lived intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The Company performs a recoverability test to assess the recoverability of an asset group. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset group and its ultimate disposition. Measurement of any impairment loss is based on the amount by which the carrying value of the asset exceeds its fair market value. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which range from two to thirty years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the assets. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company recognizes an impairment charge in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to the asset group. No material impairment losses were incurred in the periods presented. Fair Value Measurements All financial assets and liabilities are recognized or disclosed at fair value in the financial statements. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 The Company's Level 1 financial assets consist of Mutual Funds. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities. Level 2 The Company's Level 2 financial assets and liabilities consist of derivative foreign currency contracts, an interest rate swap, a term loan facility, and 5.50% Senior Notes. The fair value of Level 2 derivative foreign currency contracts and the 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 16 , Derivatives . The fair value of Level 2 5.50% Senior Notes 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 10 , 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 10 , Debt in the accompanying notes to the consolidated financial statements. Revenue Recognition 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 the Company's 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 is recognized either over-time or at a point-in-time depending on the nature of the offering. Revenues associated with non-cancelable maintenance and support contracts comprise approximately 85% of the Company's 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, the Company allocates 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. The Company's 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. The Company allocates 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. The Company derives SSP for its performance obligations through a stratification methodology and consider a number of characteristics including consideration related to different service types, customer and geography characteristics. The Company uses 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 the Company does not sell the product or service separately, the Company determines 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. The Company's 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. The distributor contracts are made under agreements that allow for rights of return and include various sales incentive programs, such as back end rebates, discounts, marketing development funds, and other sales incentives. The Company can reasonably estimate the sales incentives due to an established sales history with customers and records the estimated reserves and allowances at the time the related revenue is recognized. Advertising Costs The Company expenses all advertising costs as incurred. Advertising expense for the years ended March 31, 2017 , 2018 , and 2019 was $1.8 million , $0.9 million , and $1.2 million , respectively. Income Taxes Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company's current tax liability and changes in deferred income tax assets and liabilities. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for (benefit from) income taxes. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. The Company is subject to income taxes in the U.S. and foreign jurisdictions. At any one-time, multiple tax years are subject to audit by various tax authorities. Earnings (Loss) Per Share The Company has a share-based compensation plan under which employees, non-employee directors, and consultants may be granted share-based payment awards, including shares of restricted stock on which non-forfeitable dividends are paid on unvested shares. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share. Historically, the two-class method of calculating earnings per share did not have a material impact on the Company's earnings per share calculation under the treasury stock method. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. For further details refer to Note 18 , Computation of Earnings Per Common Share . Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income and other comprehensive income. Other comprehensive income refers to income, expenses, gains, and losses that under U.S. GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Accumulated other comprehensive income, as presented in the accompanying consolidated balance sheets, consists of foreign currency translation adjustments, unrealized gains and losses on derivatives designated as cash flow hedges, net of tax, and unrealized gains and losses on marketable securities classified as available-for-sale, net of tax. Foreign Operations and Currency Translation 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. Foreign currency transaction gains and losses are recognized in other non-operating income and (expense), net, and have not been material for all periods presented. Stock-Based Compensation Expense The Company applies the provisions of the Compensation - Stock Compensation Topic of the FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee directors based on estimated fair values. 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 Company adopted the new stock-based compensation accounting guidance effective in Fiscal Year 2018. This new guidance requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were recorded as part of additional paid-in capital. The adoption of this guidance had an immaterial impact on the Company's effective tax rate for the year ended March 31, 2018. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP. For further details refer to Note 17 , Income Taxes . Treasury Shares From time to time, the Company repurchases shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions, in accordance with programs authorized by the Board of Directors. Repurchased shares are held as treasury stock until such time as they are retired or re-issued. Retirements of treasury stock are non-cash equity transactions in which the reacquired shares are returned to the status of authorized but unissued shares and the cost is recorded as a reduction to both retained earnings and treasury stock. The stock repurchase programs are intended to offset the impact of dilution resulting from the Company's stock-based compensation programs. Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term and long-term investments, and trade accounts receivable. The Company’s investment policy limits investments to highly-rated securities. In addition, the Company limits the amount of credit exposure to any one issuer and restricts placement of these investments to issuers evaluated as creditworthy. As of March 31, 2019 , the Company's investments were composed solely of Mutual Funds. As of March 31, 2018 , the Company's investments were composed of Mutual Funds, US Treasury Notes, Government Agency Securities, Commercial Paper, Corporate Bonds, and Certificates of Deposits ("CDs") . Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers that comprise the Company’s customer base and their dispersion across different geographies and markets. Two customers, D & H Distributing Company and Ingram Micro Group, accounted for 13.0% and 12.4% , respectively, of total net accounts receivable as of March 31, 2018 . Three customers, Ingram Micro Group, ScanSource, and D&H Distributors, accounted for 21.3% , 19.2% , and 10.9% , respectively, of total net accounts receivable as of March 31, 2019 . The Company does not believe other significant concentrations of credit risk exist. The Company performs ongoing credit evaluations of its customers' financial condition and requires no collateral from its customers. The Company maintains a provision for doubtful accounts based upon expected collectability of all accounts receivable. Certain inventory components required by the Company are only available from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short lifecycles may intensify these risks. The inability to obtain components as required, or to develop alternative sources, as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. 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") for e-commerce services, 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 year ended March 31, 2019 . Accounts Receivable Financing As a result of 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 the Company's 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. In Fiscal Year 2019 , total transactions entered pursuant to the terms of the Financing Agreement were approximately $158.7 million , of which $81.8 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 consolidated balance sheet as of March 31, 2019 was approximately $40.5 million due from the financing company, of which $21.5 million was related to accounts receivable transferred. Total fees incurred pursuant to the Financing Agreement was $3 million for the year ended March 31, 2019 . These fees are recorded as a reduction of net revenues in the Company's consolidated statement of operations. Reclassifications Certain prior year amounts have been reclassified for consistency with current year presentation. Each of the reclassifications was immaterial and had no effect on the Company's results of operations. |
THE COMPANY
THE COMPANY | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | THE COMPANY Plantronics, Inc. (“Poly,” “the Company”) is a leading global designer, manufacturer, and marketer of integrated communications and collaboration solutions that span headsets, software, Open SIP desktop phones, audio and video conferencing, cloud management and analytics, and services. The Company offers its products under the Plantronics and Polycom brands, and in the upcoming year will begin to also offer select products under the brand Poly. The Company's Chief Executive Officer is the Company's Chief Operating Decision Maker ("CODM"). The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment. Founded in 1961, the Company is incorporated in the state of Delaware under the name Plantronics, Inc. and in March 2019, the Company changed the name under which it markets itself to Poly. Poly is listed on the New York Stock Exchange ("NYSE") under the ticker symbol PLT. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Mar. 31, 2019 | |
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. Lease 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 Company adopted the new standard on March 31, 2019 using a modified retrospective approach. Under the modified retrospective approach, the Company will not adjust the comparative period financial information or make the new required lease disclosures for periods before the effective date. The Company will elect the short-term lease recognition exemption and will not recognize Right of Use (ROU) assets or lease liabilities for leases with a term less than 12 months. While the Company continues to assess all of the effects of adoption, the Company believes the most significant effects relate to (i) the recognition of new ROU assets and lease liabilities on the consolidated balance sheet and (ii) providing significant new disclosures about the Company's leasing activities. The new ROU assets and lease liabilities, which will be recognized on the consolidated balance sheet, consist primarily of real estate facilities. We are continuing to analyze and evaluate the ROU assets and lease liability using the Company's incremental borrowing rate at March 31, 2019. Upon adoption of ASC 842, all existing leases will be classified as either operating leases or finance leases. The Company plans to modify its business processes and controls to support the adoption of the new standard, including expanded review of new contracts. After the adoption of Topic 842, we will first report the ROU assets and lease liabilities as of June 30, 2019 in our Quarterly Report on Form 10-Q based on our lease portfolio as of that date. 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. 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 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 the Company acquired Polycom, a privately held Company who had not yet adopted Topic 606. In addition to increasing the magnitude of certain of the 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 it 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 and other assets 19,534 (493 ) 19,041 Total assets $ 1,076,887 $ 13,728 $ 1,090,615 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 80,097 $ 11,133 $ 91,230 Total current liabilities 125,514 11,133 136,647 Total liabilities 723,917 11,133 735,050 Commitments and contingencies (Note 9) 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 consolidated balance sheet as of March 31, 2019: March 31, 2019 As Reported Adjustments due to Topic 606* (increase/(decrease)) March 31, 2019 Without Adoption of Topic 606 ASSETS Current assets: Accounts receivable, net $ 337,671 $ (96,023 ) $ 241,648 Other current assets 50,488 (813 ) 49,675 Total current assets 781,146 (96,836 ) 684,310 Deferred tax and other assets 26,508 (2,597 ) 23,911 Total assets $ 3,116,535 $ (99,433 ) $ 3,017,102 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 398,715 $ (84,562 ) $ 314,153 Total current liabilities 528,229 (84,562 ) 443,667 Other long-term liabilities 142,697 (803 ) 141,894 Total liabilities 2,394,848 (85,365 ) 2,309,483 Commitments and contingencies (Note 7) Stockholders' equity: Retained earnings 143,344 (14,068 ) 129,276 Total stockholders' equity before treasury stock 1,575,360 (14,068 ) 1,561,292 Total stockholders' equity 721,687 (14,068 ) 707,619 Total liabilities and stockholders' equity $ 3,116,535 $ (99,433 ) $ 3,017,102 * The ASC 606 related adjustments include the impact of purchase accounting. The following tables summarize the impacts of adopting Topic 606 on the Company’s the consolidated financial statements for the year ended March 31, 2019: CONSOLIDATED STATEMENTS OF OPERATIONS March 31, 2019 As Reported Adjustments due to Topic 606 March 31, 2019 Without Adoption of Topic 606 Net revenues Net product revenues $ 1,510,770 $ (1,347 ) $ 1,509,423 Net service revenues 163,765 1,598 165,363 Total net revenues 1,674,535 251 1,674,786 Gross profit 694,139 251 694,390 Operating expenses Selling, general, and administrative 567,879 3,070 570,949 Total operating expenses 803,434 3,070 806,504 Operating loss (109,295 ) (2,819 ) (112,114 ) Loss before income taxes (185,692 ) (2,819 ) (188,511 ) Income tax expense (benefit) (50,131 ) (309 ) (50,440 ) Net loss $ (135,561 ) $ (2,510 ) $ (138,071 ) Loss per common share: Basic $ (3.61 ) $ (0.07 ) $ (3.68 ) Diluted $ (3.61 ) $ (0.07 ) $ (3.68 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated statement of comprehensive loss for the Fiscal Year ended March 31, 2019: CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Selected Line Items (in thousands) (Unaudited) March 31, 2019 as Reported Adjustments due to Topic 606 March 31, 2019 Without Adoption of Topic 606 Net loss $ (135,561 ) $ (2,510 ) $ (138,071 ) Comprehensive loss $ (138,905 ) $ (2,510 ) $ (141,415 ) Adoption of the standards related to revenue recognition had no impact to cash from or used in operating, financing, or investing in the Company's the Consolidated Cash Flows Statements . |
ACQUISITION
ACQUISITION | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION Polycom Acquisition On July 2, 2018 ("Acquisition Date"), 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 its channel partners, customers, and strategic alliance partners by allowing the Company 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, the Company 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 the Company immediately following the acquisition. The consideration paid at closing was subject to a working capital, tax and other adjustments. This transaction was accounted for as a business combination and the Company has included the financial results of Polycom in the 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 165,449 Inventories 109,074 Prepaid expenses and other current assets 68,451 Property and equipment, net 79,497 Intangible assets 985,400 Other assets 27,237 Total assets acquired $ 1,515,247 LIABILITIES Accounts payable $ 80,653 Accrued payroll and related liabilities 44,538 Accrued expenses 144,051 Income tax payable 27,044 Deferred revenue 115,061 Deferred income taxes 98,342 Other liabilities 51,796 Total liabilities assumed $ 561,485 Total identifiable net assets acquired 953,762 Goodwill 1,262,883 Total Purchase Price $ 2,216,645 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. 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 $1,263 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 potential tax obligations related to unsettled intercompany transactions and potential resolution of certain contingent liabilities. Since the acquisition date, we have recorded measurement period adjustments to reflect facts and circumstances in existence as of the acquisition date. These adjustments included deferred tax and tax liabilities of $44.0 million , a working capital adjustment of $8.0 million and various other immaterial adjustments of $4.2 million , resulting in a decrease to goodwill of approximately $56.2 million . The Company incurred approximately $19.2 million in acquisition related expenses which are recorded in selling, general, and administrative expenses in its the consolidated statement of operations for the year ended March 31, 2019 . The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: (in thousands, except for remaining life) Fair Value Weighted-Average Amortization Period Existing technology $ 538,600 4.95 Customer relationships 245,100 5.46 Trade name/Trademarks 115,600 9.00 Backlog 28,100 0.25 Total amortizable intangible assets acquired 927,400 5.45 In-process research and development 58,000 Total acquired intangible assets $ 985,400 Existing technology relates to products for voice, video and platform products. The Company 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 at the time of the acquisition. 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. In Fiscal Year 2019, the Company reclassified approximately $28.1 million of completed in-process research and development into existing technology and began amortizing over the estimated useful life. The Company expects the remaining in-process research and development to be completed, transferred to existing technology, and begin amortizing in Fiscal Year 2020. The Company believes 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. 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 actual total net revenues and net loss of Polycom included in the Company's consolidated statement of operations for the period July 2, 2018 to March 31, 2019 are as follows: (in thousands) July 2, 2018 to March 31, 2019 Total net revenues $ 763,837 Net loss $ (130,340 ) 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 year ended March 31, 2018 and 2019, non-recurring pro forma adjustments directly attributable to the Polycom acquisition included (i) the purchase accounting effect of deferred revenue assumed of $84.8 million , (ii) the purchase accounting effect of inventory acquired of $30.4 million , and (iii) acquisition costs of $19.2 million . The unaudited pro forma information presented below is for informational purposes only and is not necessarily indicative of the Company's 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 its future operations of the combined business. Pro Forma (unaudited) Fiscal Year Ended March 31, (in thousands) 2018 2019 Total net revenues $ 1,892,971 $ 2,008,245 Operating income (loss) (208,234 ) 18,929 Net loss $ (379,032 ) $ (38,516 ) |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Mar. 31, 2019 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Cash, Cash Equivalents and Investments | CASH, CASH EQUIVALENTS, AND INVESTMENTS The following tables summarize the Company’s cash, cash equivalents, and investments’ adjusted cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents, short-term, or long-term investments as of March 31, 2018 and 2019 (in thousands): 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 March 31, 2019 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 202,509 $ — $ — $ 202,509 $ 202,509 $ — Level 1: Mutual Funds 13,420 197 (285 ) 13,332 — 13,332 US Treasury Notes — — — — — — Money Market Funds — — — — — Subtotal 13,420 197 (285 ) 13,332 — 13,332 Total cash, cash equivalents $ 215,929 $ 197 $ (285 ) $ 215,841 $ 202,509 $ 13,332 As of March 31, 2018 , and 2019 , 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 6 , Deferred Compensation . The Company did not incur any material realized or unrealized gains or losses during Fiscal Year 2019 . The Company recognized a loss of approximately $1.2 million during Fiscal Year 2018 . There were no transfers between fair value measurement levels during Fiscal Years 2018 and 2019 . |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Mar. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | DEFERRED COMPENSATION As of March 31, 2019 , the Company held investments in mutual funds with a fair value totaling $13.3 million , all of which related to debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans. The total related deferred compensation liability was $13.5 million at March 31, 2019 . As of March 31, 2018, the Company held investments in mutual funds with a fair value totaling $13.5 million , all of which related to debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans. The total related deferred compensation liability at March 31, 2018 was $14.1 million . The securities are classified as trading securities and are recorded on the consolidated balance sheets under "short-term investments". The liability is recorded on the consolidated balance sheets under "other long-term liabilities" and "accrued liabilities". |
DETAILS OF CERTAIN BALANCE SHEE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 12 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Details of Certain Balance Sheet Accounts | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net: March 31, (in thousands) 2018 2019 Accounts receivable $ 202,270 $ 393,415 Provisions for returns (10,225 ) — 1 Provisions for promotions and rebates (38,284 ) (50,789 ) 1 Provisions for doubtful accounts and sales allowances (873 ) (4,956 ) Accounts receivable, net $ 152,888 $ 337,671 (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 3 , Recent Accounting Pronouncements, for additional information on the adoption impact. Inventory, net: March 31, (in thousands) 2018 2019 Raw materials $ 28,789 $ 34,054 Work in process 450 274 Finished goods 39,037 142,818 Inventory, net $ 68,276 $ 177,146 Property, plant, and equipment, net: March 31, (in thousands) 2018 2019 Land $ 16,564 $ 16,418 Buildings and improvements (useful life: 7-30 years) 115,401 138,000 Machinery and equipment (useful life: 2-10 years) 112,719 158,326 Software (useful life: 5-6 years) 50,631 68,985 Construction in progress 5,428 13,099 Property, plant, and equipment, gross 300,743 394,829 Accumulated depreciation and amortization (158,614 ) (190,002 ) Property, plant, and equipment, net $ 142,129 $ 204,826 Depreciation and amortization expense for Fiscal Years 2017 , 2018 and 2019 was $20.7 million , $21.1 million , and $40.6 million , respectively. Included in software are unamortized capitalized software costs relating to both purchased and internally developed software of $23.6 million and $30.6 million at March 31, 2018 and 2019 , respectively. Amortization expense related to capitalized software costs in Fiscal Years 2017 , 2018 , and 2019 was $4.4 million , $4.9 million , and $11.0 million , respectively. Included in construction in progress at March 31, 2019 was tooling for new products, machinery and equipment, building improvements at our U.S. headquarters, and IT-related expenditures. None of the items were individually material. Accrued Liabilities: March 31, March 31, (in thousands) 2018 2019 Short term deferred revenue $ 2,986 $ 133,200 Employee compensation and benefits 28,599 68,882 Income tax payable 5,583 5,692 Provision for returns — 24,632 1 Marketing incentives liabilities — 25,369 1 Discounts reserve — 46,894 1 Accrued interest 10,424 10,425 Warranty obligation 7,550 15,736 VAT/Sales tax payable 5,353 11,804 Derivative liabilities 2,947 3,275 Accrued other 16,655 52,806 Accrued liabilities $ 80,097 $ 398,715 (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 3 , Recent Accounting Pronouncements , for additional information on the adoption impact. Changes in the warranty obligation, which are included as a component of accrued liabilities in the consolidated balance sheets, are as follows: Year ended March 31, (in thousands) 2018 2019 Warranty obligation at beginning of year $ 8,697 $ 9,604 Polycom warranty obligation (1) — 9,095 Warranty provision related to products shipped 9,923 19,884 Deductions for warranty claims processed (10,193 ) (20,638 ) Adjustments related to preexisting warranties 1,177 39 Warranty obligation at end of year (2) $ 9,604 $ 17,984 (1) Represents warranty obligation assumed upon completion of the Acquisition on July 2, 2018. (2) Includes both short-term and long-term portion of warranty obligation. |
GOODWILL AND PURCHASED INTANGIB
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED INTANGIBLE ASSETS | GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill Goodwill as of March 31, 2018, and 2019, was $15.5 million and $1.3 billion , respectively. The increase in goodwill in the fiscal year ended March 31, 2019 is due to the Acquisition of Polycom on July 2, 2018. Refer to Note 4, Acquisition in the Notes to the Consolidated Financial Statements for more details. In Fiscal Years 2018 and 2019 , for purposes of the annual goodwill impairment test, the Company determined there to be no reporting units below its single operating segment; therefore, the annual goodwill impairment analysis was performed at the segment level in both of these years. In the fourth quarter of Fiscal Years 2018 and 2019 , the Company evaluated qualitative factors that may affect the fair value of the reporting unit and concluded there to be no indication of goodwill impairment. Other Intangible Assets Other intangible assets consist primarily of existing technology customer relationships, and trade name acquired in business combinations. During Fiscal Year 2019, approximately $28.1 million of in-process research and development was completed and reclassified to existing technology. Intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to cost of sales and operating expenses in the Consolidated Statement of Operations. The carrying value of other intangible assets, excluding fully amortized intangible assets as of March 31, 2019, is set forth in the following table: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 566,881 $ 86,301 $ 480,580 4.2 years Customer relationships 245,481 36,245 209,236 4.8 years Trade name 115,600 9,633 105,967 8.3 years Non-amortizing assets In-process R&D 29,892 — 29,892 N/A Total intangible assets $ 957,854 $ 132,179 $ 825,675 4.9 years There were no unamortized intangible assets as of March 31, 2018. In Fiscal Years 2017 and 2018 the Company recognized immaterial amortization expense. In Fiscal Year 2019, the Company recognized $160.3 million of amortization expense. As of March 31, 2019, expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: in thousands Amount 2020 $ 179,253 2021 174,411 2022 160,128 2023 156,419 2024 75,012 Thereafter 50,103 $ 795,326 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Minimum Future Rental Payments Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of March 31, 2019 are as follows: (in thousands) Fiscal Year Ending March 31, Gross Minimum Lease Payments Sublease Receipts Net Minimum Lease Payments 2020 18,882 (5,238 ) 13,644 2021 17,883 (5,481 ) 12,402 2022 15,239 (5,645 ) 9,594 2023 5,800 (1,160 ) 4,640 2024 1,281 — 1,281 Thereafter 601 — 601 Total minimum future rental payments 59,686 (17,524 ) 42,162 Total rent expense for operating leases was approximately $2.8 million , $2.6 million , and $17.8 million in Fiscal Years 2017 , 2018 , and 2019 , respectively. Unconditional Purchase Obligations The Company purchases services and components 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 March 31, 2019 , the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $399.0 million . Other Guarantees and Obligations In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, purchasers of assets or subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of agreements or representations and warranties made by the Company, services to be provided by the Company, intellectual property infringement claims made by third parties or, with respect to the sale of assets of a subsidiary, matters related to the Company's conduct of business and tax matters prior to the sale. From time to time, the Company indemnifies customers against combinations of loss, expense, or liability arising from various triggering events relating to the sale and use of its products and services. In addition, the Company also provides indemnification to customers against claims related to undiscovered liabilities, additional product liability, or environmental obligations. The Company has also entered into indemnification agreements with its directors, officers and certain other personnel that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers of the Company or certain of its affiliated entities. The Company maintains director and officer liability insurance, which may cover certain liabilities arising from its obligation to indemnify its directors, officers and certain other personnel in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these agreements due to the limited history of prior claims and the unique facts and circumstances involved in each particular claim. Such indemnification obligations might not be subject to maximum loss clauses. Historically, the Company has not incurred material costs as a result of obligations under these agreements and it has not accrued any liabilities related to such indemnification obligations in the 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 appellate court heard argument on the matter on December 11, 2018 and its decision is pending. The U.S. Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) have concluded their 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 the Company. Polycom and the Company cooperated fully with these agencies regarding these matters. In December 2018, the DOJ issued a declination to prosecute the matter. Polycom also agreed to settle the matter with the SEC and DOJ upon payment of $38.1 million comprised of $31.0 million for disgorgement, $1.8 million for prejudgment interest, and $3.8 million for civil money penalties. The Company was reimbursed for the entire settlement amount as well as an additional $1.4 million for legal fees and expenses through funds retained in escrow under the Stock Purchase Agreement between Plantronics, Polycom and Triangle Private Holdings II, LLP. This matter is now concluded. 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 and filed a motion to dismiss the Complaint in November 2018. Plaintiff filed a First Amended Complaint on December 14, 2018. The matter has now been resolved. 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 one of the patents, which was then appealed to the Federal Circuit Court. Oral argument occurred on March 6, 2019. Litigation in both matters in the United States and Canada, respectively, has been stayed pending the results of that appeal. Polycom also filed an inter partes review of the second patent on January 31, 2019, which is now pending institution. FullView had also initiated arbitration proceedings under a terminated license agreement with Polycom alleging that Polycom had failed to pay certain royalties due under that agreement. An arbitration hearing occurred on December 10, 2018, and the arbitration panel awarded $374,475 to FullView. On April 29, 2019 the Federal Circuit rendered its opinion affirming the Patent Trial and Appeal Board opinion regarding the inter partes reexamination. 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 responded to Ashton Bentley’s Reply in November 2018. This matter has now been resolved. 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. Polycom filed a motion to change venue which was denied in October 2018. Polycom filed its Answer to the Complaint on October 18, 2018. Discovery is ongoing. On March 21, 2019, Performance Design Products filed a complaint against Plantronics alleging trademark infringement. Plantronics filed a motion to dismiss the complaint on April 12, 2019. In addition to the specific matters discussed above, the Company is involved in various legal proceedings and investigations 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 | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The estimated fair value and carrying value of the Company's outstanding debt as of March 31, 2018 and March 31, 2019 were as follows: March 31, 2018 March 31, 2019 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 497,095 $ 492,509 $ 503,410 $ 493,959 Term loan facility $ — $ — $ 1,152,044 $ 1,146,842 As of March 31, 2018 , and March 31, 2019 , the net unamortized discount, premium and debt issuance costs on the Company's outstanding debt were $7.5 million and $31.0 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 mature on May 31, 2023, and bear interest at a rate of 5.50% per annum, payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2015. The Company received net proceeds of $488.4 million from issuance of the 5.50% Senior Notes, net of issuance costs of $11.6 million , which are presented in our consolidated balance sheet as a reduction to the outstanding amount payable and are being amortized to interest expense, using the effective interest method, over the term of the 5.50% Senior Notes. 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 105.50% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium equal to the present value of the remaining scheduled interest payments as described in the applicable indenture, together with accrued and unpaid interest. (2) If the Company redeems the notes on or after the applicable date, the price is principal plus a premium which declines over time as specified in the applicable indenture, together with accrued and unpaid interest. (3) If the Company redeems the notes prior to the applicable date with net cash proceeds of one or more equity offerings, the price is equal to the amount specified above, together with accrued and unpaid interest, subject to a maximum redemption of 35% of the aggregate principal amount of the respective note being redeemed. In addition, upon the occurrence of certain change of control triggering events, the Company may be required to repurchase the 5.50% Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The 5.50% Senior Notes contain restrictive covenants that, among other things, limit the Company's ability to create certain liens and enter into sale and leaseback transactions; create, assume, incur, or guarantee additional indebtedness of its subsidiaries without such subsidiary guaranteeing the 5.50% Senior Notes on an unsecured unsubordinated basis; and consolidate or merge with, or convey, transfer or lease all or substantially all of the assets of the Company and its subsidiaries to another person. As of March 31, 2019 , the Company was in compliance with all covenants. 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 the last business day of March, June, September and December beginning with the first full fiscal quarter ending after the Closing Date 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 due on a quarterly basis 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 refinances within 6 months of entering into this credit agreement. During Fiscal Year 2019, the Company prepaid $100 million aggregate principal amount of the term loan facility and did not incur any prepayment penalties. The Company recorded a loss on the prepayment of approximately $2.2 million , which is included in Interest Expense of the Company's Consolidated Statements of Operations. As of March 31, 2019 , the Company has four outstanding letters of credit on the revolving credit facility for a total of $0.8 million. |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) Summary of Restructuring Plans Fiscal Year 2019 restructuring plans During the Fiscal Year 2019, the Company initiated post-acquisition restructuring plans to realign the Company's cost structure, including streamlining the global workforce, consolidation of certain distribution centers in North America, and reduction of redundant legal entities, in order to take advantage of operational efficiencies following the acquisition of Polycom. The costs incurred to date under these plans have primarily comprised of severance benefits from reduction in force actions, facilities related actions initiated by management, and legal entity rationalization. Legacy Plans The Company currently has a liability balance as of March 31, 2019 related to various restructuring actions undertaken in prior periods under these plans: • 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 its acquisition on July 2, 2018. As of March 31, 2019, the restructuring reserve was approximately $7.0 million and primarily comprised of facilities-related liabilities which will expire over a period of 2018 to 2023. • During the fiscal 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. The Company's restructuring liabilities as of March 31, 2019 are as follows (amounts in thousands): As of March 31, 2018 Assumed Liability Accruals Cash Payments Adjustments As of March 31, 2019 Legacy Plans Severance $ 114 $ 921 $ 1,101 $ (1,747 ) $ (197 ) $ 192 Facility 325 8,574 99 (2,368 ) 205 $ 6,835 Total Legacy Plans 439 9,495 1,200 (4,115 ) 8 7,027 FY2019 Plans Severance — — 23,932 (18,150 ) 164 5,946 Facility — — 2,142 (1,778 ) 35 399 Other — — 5,420 (5,420 ) — — Total FY2019 Plans — — 31,494 (25,348 ) 199 6,345 Severance 114 921 25,033 (19,897 ) (33 ) 6,138 Facility 325 8,574 2,241 (4,146 ) 240 7,234 Other — — 5,420 (5,420 ) — — Grand Total $ 439 $ 9,495 $ 32,694 $ (29,463 ) $ 207 $ 13,372 |
STOCK PLANS AND STOCK-BASED COM
STOCK PLANS AND STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans and Stock-Based Compensation | COMPENSATION 2003 Stock Plan On May 5, 2003, the Board of Directors ("Board") adopted the Plantronics, Inc. 2003 Stock Plan ("2003 Stock Plan") which was approved by the stockholders in June 27, 2003. The 2003 Stock Plan, which will continue in effect until terminated by the Board, allows for the issuance of the Company's common stock through the granting of non-qualified stock options, restricted stock, restricted stock units, and performance shares with performance-based conditions on vesting. As of March 31, 2019 , there have been 17,400,000 shares of common stock (which number is subject to adjustment in the event of stock splits, reverse stock splits, recapitalization or certain corporate reorganizations) cumulatively reserved since inception of the 2003 Stock Plan for issuance to employees, non-employee directors, and consultants of the Company. The Company settles stock option exercises, grants of restricted stock, and releases of vested restricted stock units with newly issued common shares. The exercise price of stock options may not be less than 100% of the fair market value of the Company's common stock on the date of grant. The term of an option may not exceed 7 years from the date it is granted. Stock options granted to employees vest over a three -year period, and stock options granted to non-employee directors vest over a four -year period. Restricted stock and restricted stock units under our share-based plans are granted to directors, executives, and employees. The estimated fair value of the restricted stock and restricted stock unit grants is determined based on the market price of Plantronics common stock on the date of grant. Restricted stock and restricted stock units granted to employees vest over a three -year period to non-employee directors over a one -year period. Performance-based restricted stock units ("PSUs") are granted to executives of the Company and contain a market condition based on Total Shareholder Return ("TSR"). The Compensation Committee sets a target and maximum value that each Executive could earn based on an annual comparison of the total stockholder return on our common stock against the iShares S&P North American Tech-Multimedia Networking Index ("Index"), an index the Committee determined appropriate to compare to the total stockholder return on our stock. Performance shares will be delivered in common stock over the vesting period of three-years based on the Company’s actual performance compared to the target performance criteria and may equal from zero percent (0%) to one hundred fifty percent (150%) of the target award. The fair value of a performance share with a market condition is estimated on the date of award, using a Monte Carlo simulation model to estimate the total return ranking of the Company’s stock among the Index companies over each performance period. At March 31, 2019 , options to purchase 627,321 shares of common stock and 1,617,118 shares of unvested restricted stock and restricted stock units were outstanding. There were 2,879,253 shares available for future grant under the 2003 Stock Plan. 2002 ESPP On June 10, 2002, the Board adopted the 2002 Employee Stock Purchase Plan ("ESPP"), which was approved by the stockholders on July 17, 2002, to provide eligible employees with an opportunity to purchase the Company's common stock through payroll deductions. The ESPP qualifies under Section 423 of the Internal Revenue Code. Under the ESPP, which is effective until terminated by the Board, the purchase price of the Company's common stock is equal to 85% of the lesser of the closing price of the common stock on (i) the first day of the offering period or (ii) the last day of the offering period. Each offering period is six months long. There were 151,648 , 156,355 , and 138,133 shares issued under the ESPP in Fiscal Years 2017 , 2018 , and 2019 respectively. At March 31, 2019 , there were 436,190 shares reserved for future issuance under the ESPP. The total cash received from employees as a result of stock issuances under the ESPP during Fiscal Year 2019 was $6.2 million , net of taxes. Stock-based Compensation The following table summarizes the amount of stock-based compensation expense included in the consolidated statements of operations for the periods presented: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Cost of revenues $ 3,244 $ 3,622 $ 4,176 Research, development and engineering 8,616 8,071 11,699 Selling, general and administrative 21,679 22,266 26,059 Stock-based compensation expense included in operating expenses 30,295 30,337 37,758 Total stock-based compensation 33,539 33,959 41,934 Income tax benefit (10,768 ) (7,880 ) (9,891 ) Total stock-based compensation expense, net of tax $ 22,771 $ 26,079 $ 32,043 Stock Plan Activity Stock Options The following is a summary of the Company’s stock option activity during Fiscal Year 2019 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at March 31, 2018 923 $ 47.53 Options granted — $ — Options exercised (277 ) $ 45.07 Options forfeited or expired (18 ) $ 46.06 Outstanding at March 31, 2019 627 $ 48.66 2.4 $ 670 Vested or expected to vest at March 31, 2019 627 $ 48.66 2.4 $ 670 Exercisable at March 31, 2019 594 $ 48.80 2.2 $ 640 The total intrinsic values of options exercised during Fiscal Years 2017 , 2018 , and 2019 were $5.5 million , $9.4 million , and $5.8 million respectively. Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price at the time of option exercise. The total cash received from employees as a result of employee stock option exercises during Fiscal Year 2019 was $12.5 million , net of taxes. The total net tax benefit attributable to stock options exercised during the year ended March 31, 2019 was $1.4 million . As of March 31, 2019 , the total unrecognized compensation cost related to unvested stock options was $0.3 million and is expected to be recognized over a weighted average period of 0.6 years. Restricted Stock Restricted stock consists of awards of restricted stock, restricted stock units ("RSUs"), and performance-based RSUs ("PSUs"). The following table summarizes the changes in unvested restricted stock, RSUs, and PSUs, for Fiscal Year 2019 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 31, 2018 1,254 $ 51.09 Granted 1,171 $ 68.68 Vested (572 ) $ 50.24 Forfeited (235 ) $ 60.44 Non-vested at March 31, 2019 1,618 $ 62.77 The weighted average grant-date fair value of restricted stock is based on the quoted market price of the Company's common stock on the date of grant. The weighted average grant-date fair values of restricted stock granted during Fiscal Years 2017 , 2018 , and 2019 were $44.82 , $53.62 , and $68.68 , respectively. The total grant-date fair values of restricted stock that vested during Fiscal Years 2017 , 2018 , and 2019 were $28.9 million , $27.8 million , and $28.7 million , respectively. As of March 31, 2019 , the total unrecognized compensation cost related to non-vested restricted stock awards was $60.0 million and is expected to be recognized over a weighted average period of 1.7 years. Valuation Assumptions The Company estimates the fair value of stock options and ESPP shares using a Black-Scholes option valuation model. At the date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP Fiscal Year Ended March 31, 2017 2018 2019 2017 2018 2019 Expected volatility 31.1 % 29.1 % n/a 28.8 % 30.5 % 40.8 % Risk-free interest rate 1.1 % 1.7 % n/a 0.6 % 1.5 % 2.4 % Expected dividends 1.4 % 1.2 % n/a 1.1 % 1.2 % 1.1 % Expected life (in years) 4.4 4.6 n/a 0.5 0.5 0.5 Weighted-average grant date fair value $ 10.39 $ 12.58 n/a $ 12.03 $ 11.78 $ 14.44 The expected stock price volatility for the years ended March 31, 2017 , 2018 , and 2019 was determined based on an equally weighted average of historical and implied volatility. Implied volatility is based on the volatility of the Company’s publicly traded options on its common stock with terms of six months or less. The Company determined that a blend of implied volatility and historical volatility is more reflective of market conditions and a better indicator of expected volatility than using exclusively historical volatility. The expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules, and expectations of future employee behavior. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. The dividend yield assumption is based on our current dividend and the market price of our common stock at the date of grant. Long Term Incentive Plan (LTIP) Prior to the Company's 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 fiscal year ended March 31, 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. Plantronics is indemnified for any obligations in excess of the reduction to purchase price. |
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES | 12 Months Ended |
Mar. 31, 2019 | |
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. On November 28, 2018, the Company's Board of Directors approved a 1 million shares repurchase program expanding its capacity to repurchase shares to approximately 1.7 million shares. As of March 31, 2019 , there remained 1,369,014 shares authorized for repurchase under the repurchase program approved by the Board. Repurchases by the Company pursuant to Board-authorized programs are shown in the following table: Fiscal Year Ended (in thousands, except $ per share data) 2018 2019 Shares of common stock repurchased in the open market 1,139,548 361,091 Value of common stock repurchased in the open market $ 52,948 $ 13,177 Average price per share $ 46.46 $ 36.49 Value of shares withheld in satisfaction of employee tax obligations $ 11,429 $ 14,070 The amounts withheld were equivalent to the employees' minimum statutory tax withholding requirements and are reflected as a financing activity within the Company's consolidated statement 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. There were no retirements of treasury stock during Fiscal Years 2017 , 2018 , and 2019 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss), net of associated tax impacts, were as follows: March 31, (in thousands) 2018 2019 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (1,663 ) $ (5,310 ) Accumulated foreign currency translation adjustments 4,685 4,835 Accumulated unrealized loss on investments (152 ) — Accumulated other comprehensive income (loss) $ 2,870 $ (475 ) (1) Refer to Note 16 , Derivatives , which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and March 31, 2019 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2019 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has a defined contribution benefit plan under Section 401(k) of the Internal Revenue Code, which covers substantially all U.S. employees. Eligible employees may contribute pre-tax amounts to the plan through payroll withholdings, subject to certain limitations. Under the plan, the Company matches 50% of the first 6% of employees' compensation and provides a non-elective Company contribution equal to 3% of base salary. All matching contributions are currently 100% vested immediately. Effective January 1, 2019, the policy was modified, whereby the Company matches 100% of the first 3% of employees' compensation and matches 50% of the second 3% of employee compensation. There is no longer any non-elective Company contribution. The Company reserves the right to modify its policies at any time, including increasing, decreasing, or eliminating contribution matching and vesting requirements. Total Company contributions in Fiscal Years 2017 , 2018 , and 2019 were $4.2 million , $4.5 million , and $7.1 million , respectively. |
FOREIGN CURRENCY DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 12 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 . 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 March 31, 2019 , the Company has International Swaps and Derivatives Association (ISDA) agreements with four applicable banks and financial institutions which contain netting provisions. The Company has elected to present the fair value of derivative assets and liabilities within the Company's consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period. Derivatives not subject to master netting agreements are not eligible for net presentation. As of March 31, 2018 , and March 31, 2019 , no cash collateral had been received or pledged related to these derivative instruments. Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties As of March 31, 2018 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 772 $ (772 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 772 $ — Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (3,037 ) $ 772 $ — $ (2,265 ) Derivatives not subject to master netting agreements — — Total $ (3,037 ) $ (2,265 ) As of March 31, 2019 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 3,183 $ (883 ) $ — $ 2,300 Derivatives not subject to master netting agreements — — Total $ 3,183 $ 2,300 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (9,483 ) $ 883 $ — $ (8,600 ) Derivatives not subject to master netting agreements — — Total $ (9,483 ) $ (8,600 ) The Company's derivative instruments are measured using Level 2 fair value inputs. Non-Designated Hedges As of March 31, 2019 , the Company had foreign currency forward contracts denominated in Euros ("EUR"), British Pound Sterling ("GBP"), and Australian Dollars ("AUD"). The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts hedge against a portion of the Company’s foreign currency-denominated cash balances, receivables, and payables. The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at March 31, 2019 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) EUR € 34,000 $ 38,239 Sell EUR 1 month GBP £ 11,600 $ 15,091 Sell GBP 1 month AUD A$ 15,200 $ 10,775 Sell AUD 1 month Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations The effect of non-designated derivative contracts on results of operations recognized in other non-operating income and (expense), net in the consolidated statements of operations was as follows: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Gain (loss) on foreign exchange contracts $ 4,599 $ (7,405 ) $ 7,340 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 6 to 12 -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: (in millions) March 31, 2018 March 31, 2019 EUR GBP EUR GBP Option contracts €50.8 £15.6 €76.8 £25.8 Forward contracts €35.0 £10.7 €55.4 £18.0 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 March 31, 2019 , the Company had foreign currency swap contracts of approximately MXN 31.8 million and MXN 149.7 million , respectively. The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at March 31, 2019 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) MX$ 149,700 $ 7,537 Buy MXN Monthly over 9 months 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. The Company has 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 the Company's 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 the Company's floating rate debt is accrued. The Company reviews the effectiveness of this instrument on a quarterly basis, recognize current period hedge ineffectiveness immediately in earnings and will discontinue hedge accounting if the Company no longer considers hedging to be highly effective. This hedge was fully effective at inception on July 30, 2018 and as of fiscal year ended March 31, 2019 . During the fiscal year ended March 31, 2019 , the Company recorded a loss of $2.6 million on its interest rate swap derivative designated as a cash flow hedge. Effect of Designated Derivative Contracts on AOCI and Consolidated Statements of Operations The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges in AOCI and the consolidated statements of operations for Fiscal Years ended March 31, 2017 , 2018 , and 2019 : (in thousands) 2017 2018 2019 Gain (loss) included in AOCI as of beginning of period $ (1,106 ) $ 541 $ (1,693 ) Amount of gain (loss) recognized in OCI (effective portion) 3,095 (6,741 ) (4,176 ) Amount of (gain) loss reclassified from OCI into net revenues (effective portion) (4,111 ) 4,715 (4,034 ) Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) 2,663 (208 ) (177 ) Amount of (gain) loss reclassified from OCI into interest expense (effective portion) — — 2,600 Total amount of (gain) loss reclassified from AOCI to consolidated statements of operations (effective portion) (1,448 ) 4,507 (1,611 ) Gain (loss) included in AOCI as of end of period $ 541 $ (1,693 ) $ (7,480 ) The Company recognized immaterial gains in the consolidated statement of operations relating to the ineffective portion of the cash flow hedges reported in other non-operating income and (expense), net during the years ended March 31, 2019 , and 2017 compared to an immaterial loss in Fiscal Year 2018 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) for Fiscal Years 2017 , 2018 , and 2019 consisted of the following: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Current: Federal $ 10,591 $ 82,523 $ (1,199 ) State 457 4,274 2,550 Foreign 7,731 6,860 (1,550 ) Total current provision for (benefit from) income taxes 18,779 93,657 (199 ) Deferred: Federal 1,022 9,002 (37,577 ) State (117 ) (1,585 ) (4,160 ) Foreign (618 ) 22 (8,195 ) Total deferred income tax expense (benefit) 287 7,439 (49,932 ) Income tax expense (benefit) $ 19,066 $ 101,096 $ (50,131 ) The components of income (loss) before income taxes for Fiscal Years 2017 , 2018 , and 2019 are as follows: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 United States $ 43,377 $ 17,654 $ (179,387 ) Foreign 58,288 82,573 (6,305 ) Income (loss) before income taxes $ 101,665 $ 100,227 $ (185,692 ) The following is a reconciliation between statutory federal income taxes and the income tax expense (benefit) for Fiscal Years 2017 , 2018 , and 2019 : Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Tax expense at statutory rate $ 35,583 $ 31,631 $ (38,995 ) Foreign operations taxed at different rates (13,183 ) (17,970 ) (4,965 ) State taxes, net of federal benefit 340 2,689 (1,610 ) Research and development credit (3,119 ) (2,023 ) (4,288 ) Net GILTI Inclusion — — 4,398 Impact of Tax Act — 87,790 (3,728 ) Stock based compensation (365 ) (1,771 ) (1,196 ) Other, net (190 ) 750 253 Income tax expense (benefit) $ 19,066 $ 101,096 $ (50,131 ) Deferred tax assets and liabilities represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of March 31, 2018 and 2019 are as follows: March 31, (in thousands) 2018 2019 Accruals and other reserves $ 4,809 $ 24,167 Deferred compensation 3,467 2,980 Net operating loss carry forward 1,540 16,921 Stock compensation 8,384 9,484 Interest expense — 11,550 Tax credits 6,504 7,072 Engineering costs — 31,015 Other deferred tax assets 1,070 635 Valuation allowance (1) (2,514 ) (15,787 ) Total deferred tax assets 23,260 88,037 Deferred gains on sales of properties (1,160 ) (1,155 ) Purchased intangibles — (92,544 ) Unearned revenue — (5,054 ) Unremitted earnings of certain subsidiaries (1,976 ) (17,879 ) Fixed asset depreciation (4,150 ) (7,881 ) Total deferred tax liabilities (7,286 ) (124,513 ) Net deferred tax assets (2) $ 15,974 $ (36,476 ) (1) Valuation allowance on state deferred tax assets are net of federal tax impact. (2) The Company's deferred tax assets for the Fiscal Year ended March 31, 2018 and March 31, 2019 , are included as a component of other assets on the consolidated balance sheets. The Company evaluates its deferred tax assets, including a determination of whether a valuation allowance is necessary, based upon its ability to utilize the assets using a more likely than not analysis. Deferred tax assets are only recorded to the extent that they are realizable based upon past and future income. The Company has a long-established earnings history with taxable income in its carryback years and forecasted future earnings. The Company has concluded that no valuation allowance is required, except for the specific items discussed below. The valuation allowance of $15.8 million as of March 31, 2019 included (1) $9.8 million related to the net operating losses of a foreign subsidiary which can be carried forward indefinitely, but are not anticipated to be utilized as a result of an insufficient recent history of earnings coupled with changes to the company’s anticipated operating structure abroad; (2) $5.7 million for deferred tax assets related to state net operating losses in the current year as a result of changes to the company’s operating structure in the United States, after applying state tax rates and federal tax benefit; and (3) $0.3 million related to China net operating losses, which begin to expire in Fiscal Year 2021. The valuation allowance of $2.5 million as of March 31, 2018 was related to the net operating losses of a foreign subsidiary with an insufficient recent history of earnings to support the realization of their deferred tax assets, as well as to excess California research credit carryforwards. During the second quarter of Fiscal Year 2019, the Company released its partial valuation allowance against California Research and Development credits. This release was a direct result of the Acquisition, as fewer credits are expected to be generated in California as a percentage of worldwide taxable income in future periods. The Company has California research and development credit carryforwards for income tax purposes of $11.7 million that can be carried forward indefinitely as well as $3.9 million of U.S federal net operating losses that have limited use under US Internal Revenue Code section 382. These losses begin to expire in fiscal year 2024. The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more likely than not to be sustained. An uncertain income tax position will not be recognized unless it has a greater than 50% likelihood of being sustained. As of March 31, 2017 , 2018 , and 2019 , the Company had $12.9 million , $12.6 million , and $26.5 million , respectively, of unrecognized tax benefits. The increase of uncertain tax positions when compared to the prior year is predominantly due to acquired uncertain tax benefits of Polycom. The unrecognized tax benefits as of March 31, 2019 would favorably impact the effective tax rate in future periods if recognized. A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows: March 31, (in thousands) 2017 2018 2019 Balance at beginning of period $ 12,692 $ 12,854 $ 12,612 Increase (decrease) of unrecognized tax benefits related to prior fiscal years (2 ) (1,310 ) 254 Increase of unrecognized tax benefits related to business combinations — — 13,329 Increase of unrecognized tax benefits related to current year income statement 2,195 3,085 2,069 Reductions to unrecognized tax benefits related to settlements with taxing authorities — (115 ) — Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations (2,031 ) (1,902 ) (1,806 ) Balance at end of period $ 12,854 $ 12,612 $ 26,458 The Company's continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The interest related to unrecognized tax benefits was $1.4 million and $2.0 million as of March 31, 2018 and 2019 , respectively. No penalties have been accrued. The Company and its subsidiaries are subject to taxation in various foreign and state jurisdictions, including the U.S. The Company is currently being audited by the Internal Revenue Service for fiscal year 2016. All federal tax matters have been concluded for tax years prior to Fiscal Year 2014. Foreign and State income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2012 and Fiscal Year 2014, respectively. 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 possible reduction in liabilities for uncertain tax that may impact the statements of operations in the next 12 months is approximately $1.2 million . During Fiscal 2019 , the Company completed its computation of the tax act in accordance with Staff Accounting Bulletin SAB 118 (“SAB 118”), which addressed concerns about reporting entities’ ability to timely comply with the requirements to recognize the effects of the Tax Cuts and Jobs Act. During the fiscal year ended March 31, 2018, the Company recorded a provisional toll charge of $79.7 million . During fiscal year 2019, the toll charge was completed resulting in a tax benefit of $0.8 million . The Company has paid $21.5 million of the toll charge and the remaining toll charge liability of $57.3 million will be paid over the next six years. The Company also paid a $6.9 million toll charge in October 2018 related to Polycom’s pre-acquisition period. During the fiscal year ended March 31, 2018, the Company recorded a provisional expense of $5.0 million related to state income taxes and foreign withholding taxes for unrepatriated foreign earnings through the Tax Act’s enactment date, as the Company no longer intends to indefinitely reinvest foreign earnings abroad. During fiscal year 2019, the toll charge computation of state and foreign withholding taxes was completed resulting in the recognition of a tax benefit of $3.2 million . The effect of the SAB 118 measurement period adjustments on the effective tax rate for Fiscal Year 2019 was (2.1)% , Polycom recorded a toll charge which was paid in October 2018 with the filing of its 2017 tax return. For the global intangible low-taxed income provisions of the Tax Act, the Company has selected an accounting policy to record related period costs if and when incurred. |
COMPUTATION OF EARNINGS PER COM
COMPUTATION OF EARNINGS PER COMMON SHARE | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Common Share | COMPUTATION OF EARNINGS 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 2, Significant Accounting Policies , 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 years ended March 31, 2019 , 2018 , and 2017 : (in thousands, except earnings per share data) Fiscal Year Ended March 31, 2017 2018 2019 Numerator: Net income (loss) $ 82,599 $ (869 ) $ (135,561 ) Denominator: Weighted average common shares-basic 32,279 32,345 37,569 Dilutive effect of employee equity incentive plans 684 — — Weighted average shares-diluted 32,963 32,345 37,569 Basic earnings (loss) per common share $ 2.56 $ (0.03 ) $ (3.61 ) Diluted earnings (loss) per common share $ 2.51 $ (0.03 ) $ (3.61 ) Potentially dilutive securities excluded from diluted earnings (loss) per share because their effect is anti-dilutive 574 543 616 |
REVENUE AND MAJOR CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 12 Months Ended |
Mar. 31, 2019 | |
REVENUE AND MAJOR CUSTOMERS [Abstract] | |
REVENUE AND MAJOR CUSTOMERS | REVENUE AND MAJOR CUSTOMERS The Company designs, manufactures, markets, and sells integrated communications and collaboration solutions that span headsets, Open SIP desktop phones, audio and video conferencing, cloud management and analytics software solutions, and services. Major product categories include Enterprise Headsets, which includes corded and cordless communication headsets; Consumer Headsets, which includes Bluetooth and corded products for mobile device applications, personal computer ("PC") and gaming; Voice, Video, and Content Sharing Solutions, which includes Open SIP desktop phones, conference room phones, and video endpoints, including cameras, speakers, and microphones. All of our solutions are designed to work in a wide range of Unified Communications & Collaboration ("UC&C"), Unified Communication as a Service ("UCaaS"), and Video as a Service ("VaaS") environments. Our RealPresence collaboration solutions range from infrastructure to endpoints and allow people to connect and collaborate globally and naturally. In addition, the Company has comprehensive Support Services including support on our solutions and hardware devices, as well as professional, hosted, and managed services. 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 the Company's customers. The following table disaggregates revenues by major product category for the Fiscal Years ended March 31, 2017 , 2018 , and 2019 : Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Net revenues from unaffiliated customers: Enterprise Headsets $ 628,654 $ 649,739 $ 680,881 Consumer Headsets 252,522 207,164 229,817 Voice* — — 344,586 Video* — — 255,485 Services* — — 163,765 Total net revenues $ 881,176 $ 856,903 $ 1,674,535 * Categories were introduced with the acquisition of Polycom on July 2, 2018, and amounts are presented net of purchase accounting adjustments. Refer to Note 4 , Acquisition , of the 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 Fiscal Years ended March 31, 2017 , 2018 , and 2019 . The following table presents net revenues by geography: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Net revenues from unaffiliated customers: U.S. $ 482,215 $ 434,053 $ 789,545 Europe and Africa 226,620 250,763 476,891 Asia Pacific 106,295 99,779 288,880 Americas, excluding U.S. 66,046 72,308 119,219 Total International net revenues 398,961 422,850 884,990 Total net revenues $ 881,176 $ 856,903 $ 1,674,535 Two customers, ScanSource and Ingram Micro Group, accounted for 16.0% and 11.4% , respectively, of net revenues for the Fiscal Year ended March 31, 2019 . One customer, Ingram Micro Group, accounted for 10.9% of net revenues in Fiscal Years 2018 and 2017. Three customers, Ingram Micro Group, ScanSource, and D&H Distributors accounted for 21.3% , 19.2% , and 10.9% respectively, of total net accounts receivable at March 31, 2019 . 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 . In Fiscal Year 2019 , the Company's deferred revenue balance was $193.9 million , which represents 11.6% of total net revenues. In Fiscal 2018 and 2017 , the Company’s deferred revenue balance was $3.0 million and $2.0 million respectively, which represents less than 1% of total net revenues. The increase is the result of 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 March 31, 2019 : As of March 31, 2019 (in millions) Current Noncurrent Total Performance obligations $ 142.1 $ 60.7 $ 202.8 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 material. None of the Company's contracts are deemed to have significant financing components. Sales, value add, and other taxes collected concurrent with revenue producing activities are excluded from revenue. The Company's indirect channel model includes both a two-tiered distribution structure, where the Company sells to distributors that subsequently sell to resellers, and a one-tiered structure where the Company sells directly to resellers. For these arrangements, transfer of control begins at the time access to the Company's services is made available to the end customer and entitlements have been contractually established, provided all other criteria for revenue recognition are met. 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 the Company records 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, the Company has 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 7 , 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. The Company has 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 $3.1 million as of March 31, 2019 . Amortization of capitalized contract costs for the Fiscal Year ended March 31, 2019 was immaterial. |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Mar. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | GEOGRAPHIC INFORMATION The following table presents long-lived assets by geographic area on a consolidated basis: Fiscal Year Ended March 31, (in thousands) 2018 2019 United States $ 64,975 $ 101,637 Netherlands 41,036 19,052 Mexico 20,752 40,821 United Kingdom $ 6,452 $ 9,074 China $ 1,088 $ 15,738 Other countries 7,826 18,504 Total long-lived assets $ 142,129 $ 204,826 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividends On May 7, 2019 , the Audit Committee approved the payment of a dividend of 0.15 per share on June 10, 2019 to holders of record on May 20, 2019 . Restructuring On May 7, 2019, the Company committed to a plan of restructuring to continue streamlining the global workforce of the combined company. These actions are expected to result in approximately $14 million of aggregate charges for employee termination costs and other costs associated with the plan. |
SUPPLEMENTARY QUARTERLY FINANCI
SUPPLEMENTARY QUARTERLY FINANCIAL DATA | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data | SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited) Each of the Company's fiscal years ends on the Saturday closest to the last day of March. The Company's Fiscal Year 2019 and Fiscal Year 2018 consisted of 52 weeks. Our interim fiscal quarters for the first, second, third, and fourth quarter of Fiscal Year 2019 ended on June 30, 2018 , September 29, 2018 , December 29, 2018 , and March 30, 2019 , respectively, and our interim fiscal quarters for the first, second, third, and fourth quarter of Fiscal Year 2018 ended on June 30, 2017 , September 30, 2017 , December 30, 2017 , and March 31, 2018 , respectively. All interim fiscal quarters presented below consisted of 13 weeks. For purposes of presentation, the Company has indicated its accounting fiscal year as ending on March 31 and our interim quarterly periods as ending on the last calendar day of the applicable month end. (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2018 March 31, 2019 Net revenues $ 221,309 $ 483,069 $ 501,669 $ 468,488 Gross profit $ 109,843 $ 152,629 $ 215,137 $ 216,530 Net income (loss) $ 14,471 $ (86,709 ) $ (41,734 ) $ (21,589 ) Basic net income (loss) per common share $ 0.43 $ (2.21 ) $ (1.06 ) $ (0.55 ) Diluted net income (loss) per common share $ 0.42 $ (2.21 ) $ (1.06 ) $ (0.55 ) Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2017 March 31, 2018 Net revenues $ 203,926 $ 210,300 $ 226,534 $ 216,143 Gross profit $ 103,283 $ 107,632 $ 114,125 $ 114,075 Net income (loss) $ 18,828 $ 19,953 $ (49,504 ) $ 9,854 Basic net income (loss) per common share $ 0.58 $ 0.59 $ (1.54 ) $ 0.30 Diluted net income (loss) per common share $ 0.57 $ 0.59 $ (1.54 ) $ 0.29 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II: VALUATION AND QUALITYING ACCOUNTS AND RESERVES | PLANTRONICS, INC. SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Year Other (4) Charged to Expenses or Other Accounts Deductions Balance at End of Year Provision for doubtful accounts and sales allowances: (1) Year ended March 31, 2017 $ 564 — $ 621 $ (582 ) $ 603 Year ended March 31, 2018 603 — 784 (514 ) 873 Year ended March 31, 2019 873 3,928 4,332 (4,176 ) 4,956 Provision for returns: (2) Year ended March 31, 2017 $ 7,314 — $ 35,485 $ (32,258 ) $ 10,541 Year ended March 31, 2018 10,541 — 30,472 (30,788 ) 10,225 Year ended March 31, 2019 (5) 10,225 (10,225 ) — — — Provision for promotions and rebates: (2) Year ended March 31, 2017 $ 27,737 — $ 150,085 $ (146,075 ) $ 31,747 Year ended March 31, 2018 31,747 — 183,929 (177,392 ) 38,284 Year ended March 31, 2019 (5) 38,284 44,136 417,422 (376,789 ) 123,053 Valuation allowance for deferred tax assets: (3) Year ended March 31, 2017 $ 1,962 $ 1,130 $ (883 ) $ 2,209 Year ended March 31, 2018 2,209 981 (676 ) 2,514 Year ended March 31, 2019 2,514 8,068 7,469 (2,264 ) 15,787 (1) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as part of selling, general, and administrative expenses for doubtful accounts and as a reduction to net revenues for sales allowances. (2) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as a reduction to net revenues. (3) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as a component of income tax expense. (4) Amounts represent changes in the accounts due to acquisition of Polycom on July 2, 2018 and impact from adoption of ASC 606. (5) Upon adoption of ASC 606, provision for returns and a portion of promotions and rebates were reclassified to current liabilities as these reserve balances are considered refund liabilities. Refer to Note 3 Recent Accounting Pronouncements , for additional information on the adoption impact. We continue to present all activity and provision related to promotions and rebates in this schedule to reflect all related activity regardless of classification. All other schedules have been omitted because the required information is either not present or not present in the amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Management's Use of Estimates and Assumptions | Management's Use of Estimates and Assumptions The Company's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In connection with the preparation of our financial statements, the Company is required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, net revenues, expenses, and the related disclosures. The Company bases its assumptions, estimates, and judgments on historical experience, current trends, future expectations, and other factors that management believes to be relevant at the time the consolidated financial statements are prepared. On an ongoing basis, the Company reviews its accounting policies, assumptions, estimates, and judgments, including those related to revenue and related reserves and allowances, inventory valuation, product warranty obligations, the useful lives of long-lived assets including property, plant and equipment, investment fair values, stock-based compensation, the valuation of and assessment of recoverability of intangible assets and their useful lives, income taxes, contingencies, and restructuring charges, to ensure that the consolidated financial statements are presented fairly and in accordance with U.S. GAAP. Because future events and their effects cannot be determined with certainty, actual results could differ from the Company's assumptions and estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has included the results of operations of acquired companies from the date of acquisition. All intercompany balances and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday closest to the last day of March. Fiscal Years 2019 , 2018 , and 2017 each had 52 weeks and ended on March 30, 2019 , March 31, 2018 , and April 1, 2017 , respectively. For purposes of presentation, the Company has indicated its accounting fiscal year as ending on March 31. |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Investments All highly liquid investments with initial stated maturities of three months or less at the date of purchase are classified as cash equivalents. The Company classifies its investments as either short-term or long-term based on each instrument's underlying effective maturity date and reasonable expectations with regard to sales and redemptions of the instruments. All short-term investments have effective maturities less than 12 months, while all long-term investments have effective maturities greater than 12 months. The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. The Company did not incur any material realized or unrealized gains or losses during Fiscal Year 2019 . As of March 31, 2019 , with the exception of assets related to the Company's deferred compensation plan and classified as trading securities, all investments were classified as available-for-sale, with unrealized gains and losses recorded as a separate component of accumulated other comprehensive income (loss) ("AOCI") in stockholders’ equity. The specific identification method is used to determine the cost of disposed securities, with realized gains and losses reflected in other non-operating income and (expense), net. Foreign Currency Derivatives The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative foreign currency contracts are valued using pricing models that use observable inputs. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Company enters into foreign exchange forward contracts to reduce the impact of foreign currency fluctuations on assets and liabilities denominated in currencies other than the functional currency of the reporting entity. The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts are carried at fair value with changes in the fair value recorded within other non-operating income and (expense), net in the consolidated statements of operations. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes on the underlying foreign currency denominated assets and liabilities, and therefore, do not subject the Company to material balance sheet risk. The Company has significant international revenues and costs denominated in foreign currencies, subjecting it to foreign currency risk. The Company purchases foreign currency option contracts and cross-currency swaps that qualify as cash flow hedges, with maturities of up to 24 months, to reduce the volatility of cash flows related primarily to forecasted revenue and expenses. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of AOCI and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. The Company entered into a 4-year amortizing interest rate swap in order to hedge against changes in cash flows (interest payments) attributable to fluctuations in the Company's variable rate debt. 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 the Company's floating rate debt is accrued. The Company reviews the effectiveness of this instrument on a quarterly basis, recognize current period hedge ineffectiveness immediately in earnings and will discontinue hedge accounting if the Company no longer considers hedging to be highly effective. The Company does not hold or issue derivative financial instruments for speculative trading purposes. The Company enters into derivatives only with counterparties that are among the largest United States ("U.S.") banks, ranked by assets, in order to minimize its credit risk and to date, no such counterparty has failed to meet its financial obligations under such contracts. |
Provision for Doubtful Accounts | Provision for Doubtful Accounts The Company maintains a provision for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company regularly performs credit evaluations of its customers’ financial conditions and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks, and economic conditions that may affect a customer’s ability to pay. |
Inventory and Related Reserves | Inventory and Related Reserves Inventories are valued at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. The Company writes down inventories that have become obsolete or are in excess of anticipated demand or net realizable value. The Company's estimate of write downs for excess and obsolete inventory is based on a detailed analysis of on-hand inventory and purchase commitments in excess of forecasted demand. A substantial portion of the raw materials, components and subassemblies (together, “parts”) used in the Company's products are provided by its suppliers on a consignment basis. These consigned inventories are not recorded on the Company's consolidated balance sheet until it takes title to the parts, which occurs when they are consumed in the production process. The Company provides forecasts to its suppliers covering up to thirteen weeks of demand and places purchase orders when the parts are consumed in the production process, at which time all rights, title, and interest in and to the parts transfers to the Company. Prior to consumption in the production process, the Company's suppliers bear the risk of loss and retain title to the consigned inventory. The terms of the agreements allow the Company to return parts in excess of maximum order quantities to the suppliers at the supplier’s expense. Returns for other reasons are negotiated with the suppliers on a case-by-case basis and to date have been immaterial. As of March 31, 2019 , the Company’s aggregate commitment to suppliers for parts used in the manufacture of the Company’s products was $287.5 million , which the Company expects to utilize in the normal course of business, net of an immaterial purchase commitments reserve. The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to use in normal ongoing operations within the next twelve months. As of March 31, 2019 , and 2018 , the off-balance sheet consigned inventory balances were $47.1 million and $48.8 million , respectively. |
Product Warranty Obligations | Product Warranty Obligations The Company records a liability for the estimated costs of warranties at the time the related revenue is recognized. The specific warranty terms and conditions range from one to two years starting from the delivery date to the end user and vary depending upon the product sold and the country in which the Company does business. Factors that affect the warranty obligations include product failure rates, estimated return rates, the amount of time lapsed from the date of sale to the date of return, material usage, service related costs incurred in correcting product failure claims, and knowledge of specific product failures that are outside of the Company’s typical experience. |
Goodwill and Purchased Intangibles | Goodwill and Purchased Intangibles Goodwill has been measured as the excess of the cost of acquisition over the amount assigned to tangible and identifiable intangible assets acquired less liabilities assumed. At least annually, in the fourth quarter of each fiscal year or more frequently if indicators of impairment exist, management performs a review to determine if the carrying value of goodwill is impaired. The identification and measurement of goodwill impairment involves the estimation of fair value at the Company’s reporting unit level. The Company determines its reporting units by assessing whether discrete financial information is available and if segment management regularly reviews the results of that component. The Company has determined it has one reporting unit. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, the first step of the two-step impairment test must be performed by estimating the fair value of the reporting unit and comparing it with its carrying value, including goodwill. Intangible assets other than goodwill are carried at cost and amortized on a straight-line basis over their estimated useful lives. The Company reviews identifiable finite-lived intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The Company performs a recoverability test to assess the recoverability of an asset group. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset group and its ultimate disposition. Measurement of any impairment loss is based on the amount by which the carrying value of the asset exceeds its fair market value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which range from two to thirty years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the assets. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company recognizes an impairment charge in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to the asset group. No material impairment losses were incurred in the periods presented. |
Fair Value Measurements | Fair Value Measurements All financial assets and liabilities are recognized or disclosed at fair value in the financial statements. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 The Company's Level 1 financial assets consist of Mutual Funds. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities. Level 2 The Company's Level 2 financial assets and liabilities consist of derivative foreign currency contracts, an interest rate swap, a term loan facility, and 5.50% Senior Notes. The fair value of Level 2 derivative foreign currency contracts and the 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 16 , Derivatives . The fair value of Level 2 5.50% Senior Notes 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 10 , 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 10 , Debt in the accompanying notes to the consolidated financial statements. |
Revenue Recognition | Revenue Recognition 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 the Company's 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 is recognized either over-time or at a point-in-time depending on the nature of the offering. Revenues associated with non-cancelable maintenance and support contracts comprise approximately 85% of the Company's 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, the Company allocates 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. The Company's 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. The Company allocates 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. The Company derives SSP for its performance obligations through a stratification methodology and consider a number of characteristics including consideration related to different service types, customer and geography characteristics. The Company uses 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 the Company does not sell the product or service separately, the Company determines 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. The Company's 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. The distributor contracts are made under agreements that allow for rights of return and include various sales incentive programs, such as back end rebates, discounts, marketing development funds, and other sales incentives. The Company can reasonably estimate the sales incentives due to an established sales history with customers and records the estimated reserves and allowances at the time the related revenue is recognized. |
Advertising Costs | Advertising Costs The Company expenses all advertising costs as incurred. |
Income Taxes | Income Taxes Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company's current tax liability and changes in deferred income tax assets and liabilities. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for (benefit from) income taxes. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. The Company is subject to income taxes in the U.S. and foreign jurisdictions. At any one-time, multiple tax years are subject to audit by various tax authorities. |
Earnings Per Share | Earnings (Loss) Per Share The Company has a share-based compensation plan under which employees, non-employee directors, and consultants may be granted share-based payment awards, including shares of restricted stock on which non-forfeitable dividends are paid on unvested shares. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share. Historically, the two-class method of calculating earnings per share did not have a material impact on the Company's earnings per share calculation under the treasury stock method. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. For further details refer to Note 18 , Computation of Earnings Per Common Share . |
Comprehensive Income | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income and other comprehensive income. Other comprehensive income refers to income, expenses, gains, and losses that under U.S. GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Accumulated other comprehensive income, as presented in the accompanying consolidated balance sheets, consists of foreign currency translation adjustments, unrealized gains and losses on derivatives designated as cash flow hedges, net of tax, and unrealized gains and losses on marketable securities classified as available-for-sale, net of tax. |
Foreign Operations and Currency Translation | Foreign Operations and Currency Translation 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. Foreign currency transaction gains and losses are recognized in other non-operating income and (expense), net, and have not been material for all periods presented. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company applies the provisions of the Compensation - Stock Compensation Topic of the FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee directors based on estimated fair values. 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 Company adopted the new stock-based compensation accounting guidance effective in Fiscal Year 2018. This new guidance requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were recorded as part of additional paid-in capital. The adoption of this guidance had an immaterial impact on the Company's effective tax rate for the year ended March 31, 2018. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP. For further details refer to Note 17 , Income Taxes . |
Treasury Shares | Treasury Shares From time to time, the Company repurchases shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions, in accordance with programs authorized by the Board of Directors. Repurchased shares are held as treasury stock until such time as they are retired or re-issued. Retirements of treasury stock are non-cash equity transactions in which the reacquired shares are returned to the status of authorized but unissued shares and the cost is recorded as a reduction to both retained earnings and treasury stock. The stock repurchase programs are intended to offset the impact of dilution resulting from the Company's stock-based compensation programs. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term and long-term investments, and trade accounts receivable. The Company’s investment policy limits investments to highly-rated securities. In addition, the Company limits the amount of credit exposure to any one issuer and restricts placement of these investments to issuers evaluated as creditworthy. As of March 31, 2019 , the Company's investments were composed solely of Mutual Funds. As of March 31, 2018 , the Company's investments were composed of Mutual Funds, US Treasury Notes, Government Agency Securities, Commercial Paper, Corporate Bonds, and Certificates of Deposits ("CDs") . Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers that comprise the Company’s customer base and their dispersion across different geographies and markets. Two customers, D & H Distributing Company and Ingram Micro Group, accounted for 13.0% and 12.4% , respectively, of total net accounts receivable as of March 31, 2018 . Three customers, Ingram Micro Group, ScanSource, and D&H Distributors, accounted for 21.3% , 19.2% , and 10.9% , respectively, of total net accounts receivable as of March 31, 2019 . The Company does not believe other significant concentrations of credit risk exist. The Company performs ongoing credit evaluations of its customers' financial condition and requires no collateral from its customers. The Company maintains a provision for doubtful accounts based upon expected collectability of all accounts receivable. Certain inventory components required by the Company are only available from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short lifecycles may intensify these risks. The inability to obtain components as required, or to develop alternative sources, as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. 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") for e-commerce services, 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 year ended March 31, 2019 . Accounts Receivable Financing As a result of 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 the Company's 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. In Fiscal Year 2019 , total transactions entered pursuant to the terms of the Financing Agreement were approximately $158.7 million , of which $81.8 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 consolidated balance sheet as of March 31, 2019 was approximately $40.5 million due from the financing company, of which $21.5 million was related to accounts receivable transferred. Total fees incurred pursuant to the Financing Agreement was $3 million for the year ended March 31, 2019 . These fees are recorded as a reduction of net revenues in the Company's consolidated statement of operations. Reclassifications Certain prior year amounts have been reclassified for consistency with current year presentation. Each of the reclassifications was immaterial and had no effect on the Company's results of operations. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 and other assets 19,534 (493 ) 19,041 Total assets $ 1,076,887 $ 13,728 $ 1,090,615 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 80,097 $ 11,133 $ 91,230 Total current liabilities 125,514 11,133 136,647 Total liabilities 723,917 11,133 735,050 Commitments and contingencies (Note 9) 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 consolidated balance sheet as of March 31, 2019: March 31, 2019 As Reported Adjustments due to Topic 606* (increase/(decrease)) March 31, 2019 Without Adoption of Topic 606 ASSETS Current assets: Accounts receivable, net $ 337,671 $ (96,023 ) $ 241,648 Other current assets 50,488 (813 ) 49,675 Total current assets 781,146 (96,836 ) 684,310 Deferred tax and other assets 26,508 (2,597 ) 23,911 Total assets $ 3,116,535 $ (99,433 ) $ 3,017,102 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued liabilities $ 398,715 $ (84,562 ) $ 314,153 Total current liabilities 528,229 (84,562 ) 443,667 Other long-term liabilities 142,697 (803 ) 141,894 Total liabilities 2,394,848 (85,365 ) 2,309,483 Commitments and contingencies (Note 7) Stockholders' equity: Retained earnings 143,344 (14,068 ) 129,276 Total stockholders' equity before treasury stock 1,575,360 (14,068 ) 1,561,292 Total stockholders' equity 721,687 (14,068 ) 707,619 Total liabilities and stockholders' equity $ 3,116,535 $ (99,433 ) $ 3,017,102 * The ASC 606 related adjustments include the impact of purchase accounting. The following tables summarize the impacts of adopting Topic 606 on the Company’s the consolidated financial statements for the year ended March 31, 2019: CONSOLIDATED STATEMENTS OF OPERATIONS March 31, 2019 As Reported Adjustments due to Topic 606 March 31, 2019 Without Adoption of Topic 606 Net revenues Net product revenues $ 1,510,770 $ (1,347 ) $ 1,509,423 Net service revenues 163,765 1,598 165,363 Total net revenues 1,674,535 251 1,674,786 Gross profit 694,139 251 694,390 Operating expenses Selling, general, and administrative 567,879 3,070 570,949 Total operating expenses 803,434 3,070 806,504 Operating loss (109,295 ) (2,819 ) (112,114 ) Loss before income taxes (185,692 ) (2,819 ) (188,511 ) Income tax expense (benefit) (50,131 ) (309 ) (50,440 ) Net loss $ (135,561 ) $ (2,510 ) $ (138,071 ) Loss per common share: Basic $ (3.61 ) $ (0.07 ) $ (3.68 ) Diluted $ (3.61 ) $ (0.07 ) $ (3.68 ) The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated statement of comprehensive loss for the Fiscal Year ended March 31, 2019: CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS Selected Line Items (in thousands) (Unaudited) March 31, 2019 as Reported Adjustments due to Topic 606 March 31, 2019 Without Adoption of Topic 606 Net loss $ (135,561 ) $ (2,510 ) $ (138,071 ) Comprehensive loss $ (138,905 ) $ (2,510 ) $ (141,415 ) |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 165,449 Inventories 109,074 Prepaid expenses and other current assets 68,451 Property and equipment, net 79,497 Intangible assets 985,400 Other assets 27,237 Total assets acquired $ 1,515,247 LIABILITIES Accounts payable $ 80,653 Accrued payroll and related liabilities 44,538 Accrued expenses 144,051 Income tax payable 27,044 Deferred revenue 115,061 Deferred income taxes 98,342 Other liabilities 51,796 Total liabilities assumed $ 561,485 Total identifiable net assets acquired 953,762 Goodwill 1,262,883 Total Purchase Price $ 2,216,645 |
Details of acquired intangible assets | The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: (in thousands, except for remaining life) Fair Value Weighted-Average Amortization Period Existing technology $ 538,600 4.95 Customer relationships 245,100 5.46 Trade name/Trademarks 115,600 9.00 Backlog 28,100 0.25 Total amortizable intangible assets acquired 927,400 5.45 In-process research and development 58,000 Total acquired intangible assets $ 985,400 The carrying value of other intangible assets, excluding fully amortized intangible assets as of March 31, 2019, is set forth in the following table: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 566,881 $ 86,301 $ 480,580 4.2 years Customer relationships 245,481 36,245 209,236 4.8 years Trade name 115,600 9,633 105,967 8.3 years Non-amortizing assets In-process R&D 29,892 — 29,892 N/A Total intangible assets $ 957,854 $ 132,179 $ 825,675 4.9 years |
Details of acquired intangible assets | The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: (in thousands, except for remaining life) Fair Value Weighted-Average Amortization Period Existing technology $ 538,600 4.95 Customer relationships 245,100 5.46 Trade name/Trademarks 115,600 9.00 Backlog 28,100 0.25 Total amortizable intangible assets acquired 927,400 5.45 In-process research and development 58,000 Total acquired intangible assets $ 985,400 The carrying value of other intangible assets, excluding fully amortized intangible assets as of March 31, 2019, is set forth in the following table: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 566,881 $ 86,301 $ 480,580 4.2 years Customer relationships 245,481 36,245 209,236 4.8 years Trade name 115,600 9,633 105,967 8.3 years Non-amortizing assets In-process R&D 29,892 — 29,892 N/A Total intangible assets $ 957,854 $ 132,179 $ 825,675 4.9 years |
Pro forma information | Pro Forma (unaudited) Fiscal Year Ended March 31, (in thousands) 2018 2019 Total net revenues $ 1,892,971 $ 2,008,245 Operating income (loss) (208,234 ) 18,929 Net loss $ (379,032 ) $ (38,516 ) |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Cash, Cash Equivalents and Investments | The following tables summarize the Company’s cash, cash equivalents, and investments’ adjusted cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents, short-term, or long-term investments as of March 31, 2018 and 2019 (in thousands): 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 March 31, 2019 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 202,509 $ — $ — $ 202,509 $ 202,509 $ — Level 1: Mutual Funds 13,420 197 (285 ) 13,332 — 13,332 US Treasury Notes — — — — — — Money Market Funds — — — — — Subtotal 13,420 197 (285 ) 13,332 — 13,332 Total cash, cash equivalents $ 215,929 $ 197 $ (285 ) $ 215,841 $ 202,509 $ 13,332 |
DETAILS OF CERTAIN BALANCE SH_2
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net: March 31, (in thousands) 2018 2019 Accounts receivable $ 202,270 $ 393,415 Provisions for returns (10,225 ) — 1 Provisions for promotions and rebates (38,284 ) (50,789 ) 1 Provisions for doubtful accounts and sales allowances (873 ) (4,956 ) Accounts receivable, net $ 152,888 $ 337,671 (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 3 , Recent Accounting Pronouncements, for additional information on the adoption impact. |
Inventory, net | Inventory, net: March 31, (in thousands) 2018 2019 Raw materials $ 28,789 $ 34,054 Work in process 450 274 Finished goods 39,037 142,818 Inventory, net $ 68,276 $ 177,146 |
Property, Plant and Equipment | Property, plant, and equipment, net: March 31, (in thousands) 2018 2019 Land $ 16,564 $ 16,418 Buildings and improvements (useful life: 7-30 years) 115,401 138,000 Machinery and equipment (useful life: 2-10 years) 112,719 158,326 Software (useful life: 5-6 years) 50,631 68,985 Construction in progress 5,428 13,099 Property, plant, and equipment, gross 300,743 394,829 Accumulated depreciation and amortization (158,614 ) (190,002 ) Property, plant, and equipment, net $ 142,129 $ 204,826 |
Accrued Liabilities | Accrued Liabilities: March 31, March 31, (in thousands) 2018 2019 Short term deferred revenue $ 2,986 $ 133,200 Employee compensation and benefits 28,599 68,882 Income tax payable 5,583 5,692 Provision for returns — 24,632 1 Marketing incentives liabilities — 25,369 1 Discounts reserve — 46,894 1 Accrued interest 10,424 10,425 Warranty obligation 7,550 15,736 VAT/Sales tax payable 5,353 11,804 Derivative liabilities 2,947 3,275 Accrued other 16,655 52,806 Accrued liabilities $ 80,097 $ 398,715 (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 3 , Recent Accounting Pronouncements , for additional information on the adoption impact. |
Changes in the warranty obligation accrual | Year ended March 31, (in thousands) 2018 2019 Warranty obligation at beginning of year $ 8,697 $ 9,604 Polycom warranty obligation (1) — 9,095 Warranty provision related to products shipped 9,923 19,884 Deductions for warranty claims processed (10,193 ) (20,638 ) Adjustments related to preexisting warranties 1,177 39 Warranty obligation at end of year (2) $ 9,604 $ 17,984 (1) Represents warranty obligation assumed upon completion of the Acquisition on July 2, 2018. (2) Includes both short-term and long-term portion of warranty obligation. |
GOODWILL AND PURCHASED INTANG_2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of acquired intangible assets | The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: (in thousands, except for remaining life) Fair Value Weighted-Average Amortization Period Existing technology $ 538,600 4.95 Customer relationships 245,100 5.46 Trade name/Trademarks 115,600 9.00 Backlog 28,100 0.25 Total amortizable intangible assets acquired 927,400 5.45 In-process research and development 58,000 Total acquired intangible assets $ 985,400 The carrying value of other intangible assets, excluding fully amortized intangible assets as of March 31, 2019, is set forth in the following table: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 566,881 $ 86,301 $ 480,580 4.2 years Customer relationships 245,481 36,245 209,236 4.8 years Trade name 115,600 9,633 105,967 8.3 years Non-amortizing assets In-process R&D 29,892 — 29,892 N/A Total intangible assets $ 957,854 $ 132,179 $ 825,675 4.9 years |
Details of acquired intangible assets | The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: (in thousands, except for remaining life) Fair Value Weighted-Average Amortization Period Existing technology $ 538,600 4.95 Customer relationships 245,100 5.46 Trade name/Trademarks 115,600 9.00 Backlog 28,100 0.25 Total amortizable intangible assets acquired 927,400 5.45 In-process research and development 58,000 Total acquired intangible assets $ 985,400 The carrying value of other intangible assets, excluding fully amortized intangible assets as of March 31, 2019, is set forth in the following table: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 566,881 $ 86,301 $ 480,580 4.2 years Customer relationships 245,481 36,245 209,236 4.8 years Trade name 115,600 9,633 105,967 8.3 years Non-amortizing assets In-process R&D 29,892 — 29,892 N/A Total intangible assets $ 957,854 $ 132,179 $ 825,675 4.9 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2019, expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: in thousands Amount 2020 $ 179,253 2021 174,411 2022 160,128 2023 156,419 2024 75,012 Thereafter 50,103 $ 795,326 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of March 31, 2019 are as follows: (in thousands) Fiscal Year Ending March 31, Gross Minimum Lease Payments Sublease Receipts Net Minimum Lease Payments 2020 18,882 (5,238 ) 13,644 2021 17,883 (5,481 ) 12,402 2022 15,239 (5,645 ) 9,594 2023 5,800 (1,160 ) 4,640 2024 1,281 — 1,281 Thereafter 601 — 601 Total minimum future rental payments 59,686 (17,524 ) 42,162 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of debt, fair value | The estimated fair value and carrying value of the Company's outstanding debt as of March 31, 2018 and March 31, 2019 were as follows: March 31, 2018 March 31, 2019 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 497,095 $ 492,509 $ 503,410 $ 493,959 Term loan facility $ — $ — $ 1,152,044 $ 1,146,842 |
Summary of debt redemption | The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 -day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.50% (1) If the Company redeems the notes prior to the applicable date, the 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) | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The Company's restructuring liabilities as of March 31, 2019 are as follows (amounts in thousands): As of March 31, 2018 Assumed Liability Accruals Cash Payments Adjustments As of March 31, 2019 Legacy Plans Severance $ 114 $ 921 $ 1,101 $ (1,747 ) $ (197 ) $ 192 Facility 325 8,574 99 (2,368 ) 205 $ 6,835 Total Legacy Plans 439 9,495 1,200 (4,115 ) 8 7,027 FY2019 Plans Severance — — 23,932 (18,150 ) 164 5,946 Facility — — 2,142 (1,778 ) 35 399 Other — — 5,420 (5,420 ) — — Total FY2019 Plans — — 31,494 (25,348 ) 199 6,345 Severance 114 921 25,033 (19,897 ) (33 ) 6,138 Facility 325 8,574 2,241 (4,146 ) 240 7,234 Other — — 5,420 (5,420 ) — — Grand Total $ 439 $ 9,495 $ 32,694 $ (29,463 ) $ 207 $ 13,372 |
STOCK PLANS AND STOCK-BASED C_2
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 expense included in the consolidated statements of operations for the periods presented: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Cost of revenues $ 3,244 $ 3,622 $ 4,176 Research, development and engineering 8,616 8,071 11,699 Selling, general and administrative 21,679 22,266 26,059 Stock-based compensation expense included in operating expenses 30,295 30,337 37,758 Total stock-based compensation 33,539 33,959 41,934 Income tax benefit (10,768 ) (7,880 ) (9,891 ) Total stock-based compensation expense, net of tax $ 22,771 $ 26,079 $ 32,043 |
Summary of Stock Option Activity | The following is a summary of the Company’s stock option activity during Fiscal Year 2019 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at March 31, 2018 923 $ 47.53 Options granted — $ — Options exercised (277 ) $ 45.07 Options forfeited or expired (18 ) $ 46.06 Outstanding at March 31, 2019 627 $ 48.66 2.4 $ 670 Vested or expected to vest at March 31, 2019 627 $ 48.66 2.4 $ 670 Exercisable at March 31, 2019 594 $ 48.80 2.2 $ 640 |
Summary of Restricted Stock Activity | The following table summarizes the changes in unvested restricted stock, RSUs, and PSUs, for Fiscal Year 2019 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 31, 2018 1,254 $ 51.09 Granted 1,171 $ 68.68 Vested (572 ) $ 50.24 Forfeited (235 ) $ 60.44 Non-vested at March 31, 2019 1,618 $ 62.77 |
Valuation Assumptions | The Company estimates the fair value of stock options and ESPP shares using a Black-Scholes option valuation model. At the date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP Fiscal Year Ended March 31, 2017 2018 2019 2017 2018 2019 Expected volatility 31.1 % 29.1 % n/a 28.8 % 30.5 % 40.8 % Risk-free interest rate 1.1 % 1.7 % n/a 0.6 % 1.5 % 2.4 % Expected dividends 1.4 % 1.2 % n/a 1.1 % 1.2 % 1.1 % Expected life (in years) 4.4 4.6 n/a 0.5 0.5 0.5 Weighted-average grant date fair value $ 10.39 $ 12.58 n/a $ 12.03 $ 11.78 $ 14.44 |
COMMON STOCK REPURCHASES (Table
COMMON STOCK REPURCHASES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Repurchases by the Company pursuant to Board-authorized programs are shown in the following table: Fiscal Year Ended (in thousands, except $ per share data) 2018 2019 Shares of common stock repurchased in the open market 1,139,548 361,091 Value of common stock repurchased in the open market $ 52,948 $ 13,177 Average price per share $ 46.46 $ 36.49 Value of shares withheld in satisfaction of employee tax obligations $ 11,429 $ 14,070 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss), net of associated tax impacts, were as follows: March 31, (in thousands) 2018 2019 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (1,663 ) $ (5,310 ) Accumulated foreign currency translation adjustments 4,685 4,835 Accumulated unrealized loss on investments (152 ) — Accumulated other comprehensive income (loss) $ 2,870 $ (475 ) (1) Refer to Note 16 , Derivatives , which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2018 and March 31, 2019 . |
FOREIGN CURRENCY DERIVATIVES (T
FOREIGN CURRENCY DERIVATIVES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Financial Assets Under Master Netting Agreements | Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties As of March 31, 2018 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 772 $ (772 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 772 $ — Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (3,037 ) $ 772 $ — $ (2,265 ) Derivatives not subject to master netting agreements — — Total $ (3,037 ) $ (2,265 ) As of March 31, 2019 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 3,183 $ (883 ) $ — $ 2,300 Derivatives not subject to master netting agreements — — Total $ 3,183 $ 2,300 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (9,483 ) $ 883 $ — $ (8,600 ) Derivatives not subject to master netting agreements — — Total $ (9,483 ) $ (8,600 ) |
Offsetting Financial Liabilities Under Master Netting Agreements | Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties As of March 31, 2018 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 772 $ (772 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 772 $ — Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (3,037 ) $ 772 $ — $ (2,265 ) Derivatives not subject to master netting agreements — — Total $ (3,037 ) $ (2,265 ) As of March 31, 2019 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 3,183 $ (883 ) $ — $ 2,300 Derivatives not subject to master netting agreements — — Total $ 3,183 $ 2,300 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (9,483 ) $ 883 $ — $ (8,600 ) Derivatives not subject to master netting agreements — — Total $ (9,483 ) $ (8,600 ) |
Notional Amounts of Outstanding Foreign Exchange Contracts and Approximate U.S. Dollar Equivalent | The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: (in millions) March 31, 2018 March 31, 2019 EUR GBP EUR GBP Option contracts €50.8 £15.6 €76.8 £25.8 Forward contracts €35.0 £10.7 €55.4 £18.0 The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at March 31, 2019 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) EUR € 34,000 $ 38,239 Sell EUR 1 month GBP £ 11,600 $ 15,091 Sell GBP 1 month AUD A$ 15,200 $ 10,775 Sell AUD 1 month |
Effect of Non-Designated Derivative Contracts On Results of Operations Recognized in Interest and Other Income (Expense), Net in Statements of Operations | The effect of non-designated derivative contracts on results of operations recognized in other non-operating income and (expense), net in the consolidated statements of operations was as follows: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Gain (loss) on foreign exchange contracts $ 4,599 $ (7,405 ) $ 7,340 |
Notional Value of Outstanding Currency Swaps and Approximate U.S. Dollar Equivalent | The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at March 31, 2019 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) MX$ 149,700 $ 7,537 Buy MXN Monthly over 9 months |
Balance of Designated Derivative Contracts and the Pre-Tax Impact on Accumulated Other Comprehensive Income | The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges in AOCI and the consolidated statements of operations for Fiscal Years ended March 31, 2017 , 2018 , and 2019 : (in thousands) 2017 2018 2019 Gain (loss) included in AOCI as of beginning of period $ (1,106 ) $ 541 $ (1,693 ) Amount of gain (loss) recognized in OCI (effective portion) 3,095 (6,741 ) (4,176 ) Amount of (gain) loss reclassified from OCI into net revenues (effective portion) (4,111 ) 4,715 (4,034 ) Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) 2,663 (208 ) (177 ) Amount of (gain) loss reclassified from OCI into interest expense (effective portion) — — 2,600 Total amount of (gain) loss reclassified from AOCI to consolidated statements of operations (effective portion) (1,448 ) 4,507 (1,611 ) Gain (loss) included in AOCI as of end of period $ 541 $ (1,693 ) $ (7,480 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for Fiscal Years 2017 , 2018 , and 2019 consisted of the following: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Current: Federal $ 10,591 $ 82,523 $ (1,199 ) State 457 4,274 2,550 Foreign 7,731 6,860 (1,550 ) Total current provision for (benefit from) income taxes 18,779 93,657 (199 ) Deferred: Federal 1,022 9,002 (37,577 ) State (117 ) (1,585 ) (4,160 ) Foreign (618 ) 22 (8,195 ) Total deferred income tax expense (benefit) 287 7,439 (49,932 ) Income tax expense (benefit) $ 19,066 $ 101,096 $ (50,131 ) |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income (loss) before income taxes for Fiscal Years 2017 , 2018 , and 2019 are as follows: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 United States $ 43,377 $ 17,654 $ (179,387 ) Foreign 58,288 82,573 (6,305 ) Income (loss) before income taxes $ 101,665 $ 100,227 $ (185,692 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation between statutory federal income taxes and the income tax expense (benefit) for Fiscal Years 2017 , 2018 , and 2019 : Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Tax expense at statutory rate $ 35,583 $ 31,631 $ (38,995 ) Foreign operations taxed at different rates (13,183 ) (17,970 ) (4,965 ) State taxes, net of federal benefit 340 2,689 (1,610 ) Research and development credit (3,119 ) (2,023 ) (4,288 ) Net GILTI Inclusion — — 4,398 Impact of Tax Act — 87,790 (3,728 ) Stock based compensation (365 ) (1,771 ) (1,196 ) Other, net (190 ) 750 253 Income tax expense (benefit) $ 19,066 $ 101,096 $ (50,131 ) |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities as of March 31, 2018 and 2019 are as follows: March 31, (in thousands) 2018 2019 Accruals and other reserves $ 4,809 $ 24,167 Deferred compensation 3,467 2,980 Net operating loss carry forward 1,540 16,921 Stock compensation 8,384 9,484 Interest expense — 11,550 Tax credits 6,504 7,072 Engineering costs — 31,015 Other deferred tax assets 1,070 635 Valuation allowance (1) (2,514 ) (15,787 ) Total deferred tax assets 23,260 88,037 Deferred gains on sales of properties (1,160 ) (1,155 ) Purchased intangibles — (92,544 ) Unearned revenue — (5,054 ) Unremitted earnings of certain subsidiaries (1,976 ) (17,879 ) Fixed asset depreciation (4,150 ) (7,881 ) Total deferred tax liabilities (7,286 ) (124,513 ) Net deferred tax assets (2) $ 15,974 $ (36,476 ) (1) Valuation allowance on state deferred tax assets are net of federal tax impact. (2) The Company's deferred tax assets for the Fiscal Year ended March 31, 2018 and March 31, 2019 , are included as a component of other assets on the consolidated balance sheets. |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows: March 31, (in thousands) 2017 2018 2019 Balance at beginning of period $ 12,692 $ 12,854 $ 12,612 Increase (decrease) of unrecognized tax benefits related to prior fiscal years (2 ) (1,310 ) 254 Increase of unrecognized tax benefits related to business combinations — — 13,329 Increase of unrecognized tax benefits related to current year income statement 2,195 3,085 2,069 Reductions to unrecognized tax benefits related to settlements with taxing authorities — (115 ) — Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations (2,031 ) (1,902 ) (1,806 ) Balance at end of period $ 12,854 $ 12,612 $ 26,458 |
COMPUTATION OF EARNINGS PER C_2
COMPUTATION OF EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | (in thousands, except earnings per share data) Fiscal Year Ended March 31, 2017 2018 2019 Numerator: Net income (loss) $ 82,599 $ (869 ) $ (135,561 ) Denominator: Weighted average common shares-basic 32,279 32,345 37,569 Dilutive effect of employee equity incentive plans 684 — — Weighted average shares-diluted 32,963 32,345 37,569 Basic earnings (loss) per common share $ 2.56 $ (0.03 ) $ (3.61 ) Diluted earnings (loss) per common share $ 2.51 $ (0.03 ) $ (3.61 ) Potentially dilutive securities excluded from diluted earnings (loss) per share because their effect is anti-dilutive 574 543 616 |
REVENUE AND MAJOR CUSTOMERS (Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
REVENUE AND MAJOR CUSTOMERS [Abstract] | |
Net Revenues by Product Group | The following table disaggregates revenues by major product category for the Fiscal Years ended March 31, 2017 , 2018 , and 2019 : Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Net revenues from unaffiliated customers: Enterprise Headsets $ 628,654 $ 649,739 $ 680,881 Consumer Headsets 252,522 207,164 229,817 Voice* — — 344,586 Video* — — 255,485 Services* — — 163,765 Total net revenues $ 881,176 $ 856,903 $ 1,674,535 * Categories were introduced with the acquisition of Polycom on July 2, 2018, and amounts are presented net of purchase accounting adjustments. Refer to Note 4 , Acquisition , of the Consolidated Financial Statements for additional information regarding this acquisition. |
Net Revenues by Geography | The following table presents net revenues by geography: Fiscal Year Ended March 31, (in thousands) 2017 2018 2019 Net revenues from unaffiliated customers: U.S. $ 482,215 $ 434,053 $ 789,545 Europe and Africa 226,620 250,763 476,891 Asia Pacific 106,295 99,779 288,880 Americas, excluding U.S. 66,046 72,308 119,219 Total International net revenues 398,961 422,850 884,990 Total net revenues $ 881,176 $ 856,903 $ 1,674,535 |
Schedule Of Revenue Performance Obligations | The table below represents aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2019 : As of March 31, 2019 (in millions) Current Noncurrent Total Performance obligations $ 142.1 $ 60.7 $ 202.8 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Long-Lived Assets, by Geographic Areas | The following table presents long-lived assets by geographic area on a consolidated basis: Fiscal Year Ended March 31, (in thousands) 2018 2019 United States $ 64,975 $ 101,637 Netherlands 41,036 19,052 Mexico 20,752 40,821 United Kingdom $ 6,452 $ 9,074 China $ 1,088 $ 15,738 Other countries 7,826 18,504 Total long-lived assets $ 142,129 $ 204,826 |
SUPPLEMENTARY QUARTERLY FINAN_2
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2018 March 31, 2019 Net revenues $ 221,309 $ 483,069 $ 501,669 $ 468,488 Gross profit $ 109,843 $ 152,629 $ 215,137 $ 216,530 Net income (loss) $ 14,471 $ (86,709 ) $ (41,734 ) $ (21,589 ) Basic net income (loss) per common share $ 0.43 $ (2.21 ) $ (1.06 ) $ (0.55 ) Diluted net income (loss) per common share $ 0.42 $ (2.21 ) $ (1.06 ) $ (0.55 ) Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2017 March 31, 2018 Net revenues $ 203,926 $ 210,300 $ 226,534 $ 216,143 Gross profit $ 103,283 $ 107,632 $ 114,125 $ 114,075 Net income (loss) $ 18,828 $ 19,953 $ (49,504 ) $ 9,854 Basic net income (loss) per common share $ 0.58 $ 0.59 $ (1.54 ) $ 0.30 Diluted net income (loss) per common share $ 0.57 $ 0.59 $ (1.54 ) $ 0.29 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019USD ($)Customer | Mar. 31, 2018USD ($)Customer | Mar. 31, 2017USD ($)Customer | Jul. 02, 2018 | May 31, 2015 | |
Product Information [Line Items] | |||||
Revenue From Contracts With Customers, Percentage Associated With Non-cancellable Maintenance And Support Contracts | 85.00% | ||||
Duration of fiscal year | 364 days | 371 days | 364 days | ||
Advertising expense | $ 1.2 | $ 0.9 | $ 1.8 | ||
Number of customers accounting for 10% or more of net accounts receivable | Customer | 1 | ||||
Accounts Receivable Financing, Gross | 158.7 | ||||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 81.8 | ||||
Accounts Receivable Financing, Current | 40.5 | ||||
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | 21.5 | ||||
Financing Agreement, Fees | $ 3 | ||||
Minimum | |||||
Product Information [Line Items] | |||||
Product warranty terms | 1 year | ||||
Maximum | |||||
Product Information [Line Items] | |||||
Product warranty terms | 2 years | ||||
D&H Distributors And Ingram Micro [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Number of customers accounting for 10% or more of net accounts receivable | Customer | 2 | ||||
Scansource, D&H Distributors And Ingram Micro [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Number of customers accounting for 10% or more of net accounts receivable | Customer | 3 | ||||
Ingram Micro [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 21.30% | 12.40% | |||
ScanSource [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 19.20% | ||||
D&H Distributors [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 10.90% | 13.00% | |||
Triangle [Member] | |||||
Product Information [Line Items] | |||||
Ownership percentage | 16.00% | ||||
5.50% Senior Notes | Senior notes | |||||
Product Information [Line Items] | |||||
Stated interest rate | 5.50% | 5.50% |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of Adoption of Topic 606 on Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Accounts receivable, net | $ 337,671 | $ 167,109 | $ 152,888 | ||
Other current assets | 50,488 | 18,588 | |||
Total current assets | 781,146 | 913,947 | 899,726 | ||
Deferred tax assets | 26,508 | 19,041 | 17,950 | ||
Total assets | 3,116,535 | 1,090,615 | 1,076,887 | ||
Accrued liabilities | 398,715 | 91,230 | 80,097 | ||
Total current liabilities | 528,229 | 136,647 | 125,514 | ||
Other long-term liabilities | 142,697 | 18,566 | |||
Total liabilities | 2,394,848 | 735,050 | 723,917 | ||
Retained earnings | 143,344 | 301,661 | 299,066 | ||
Total stockholders' equity before treasury stock | 1,575,360 | 1,181,992 | 1,179,397 | ||
Total stockholders' equity | 721,687 | 355,565 | 352,970 | $ 382,156 | $ 312,399 |
Total liabilities and stockholders' equity | 3,116,535 | $ 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 | 241,648 | ||||
Other current assets | 49,675 | ||||
Total current assets | 684,310 | ||||
Deferred tax assets | 23,911 | ||||
Total assets | 3,017,102 | ||||
Accrued liabilities | 314,153 | ||||
Total current liabilities | 443,667 | ||||
Other long-term liabilities | 141,894 | ||||
Total liabilities | 2,309,483 | ||||
Retained earnings | 129,276 | ||||
Total stockholders' equity before treasury stock | 1,561,292 | ||||
Total stockholders' equity | 707,619 | ||||
Total liabilities and stockholders' equity | 3,017,102 | ||||
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 | (96,023) | 14,221 | |||
Other current assets | (813) | ||||
Total current assets | (96,836) | 14,221 | |||
Deferred tax assets | (2,597) | (493) | |||
Total assets | (99,433) | 13,728 | |||
Accrued liabilities | (84,562) | 11,133 | |||
Total current liabilities | (84,562) | 11,133 | |||
Other long-term liabilities | (803) | ||||
Total liabilities | (85,365) | 11,133 | |||
Retained earnings | (14,068) | 2,595 | |||
Total stockholders' equity before treasury stock | (14,068) | 2,595 | |||
Total stockholders' equity | (14,068) | 2,595 | |||
Total liabilities and stockholders' equity | $ (99,433) | $ 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 | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | $ 216,143 | $ 226,534 | $ 210,300 | $ 203,926 | $ 1,674,535 | $ 856,903 | $ 881,176 |
Gross profit | 216,530 | 215,137 | 152,629 | 109,843 | 114,075 | 114,125 | 107,632 | 103,283 | 694,139 | 439,115 | 441,370 |
Selling, general, and administrative | 567,879 | 229,390 | 223,830 | ||||||||
Total operating expenses | 803,434 | 315,614 | 316,294 | ||||||||
Operating income (loss) | (109,295) | 123,501 | 125,076 | ||||||||
Income (loss) before income taxes | (185,692) | 100,227 | 101,665 | ||||||||
Income tax expense (benefit) | (50,131) | 101,096 | 19,066 | ||||||||
Net income (loss) | $ (21,589) | $ (41,734) | $ (86,709) | $ 14,471 | $ 9,854 | $ (49,504) | $ 19,953 | $ 18,828 | $ (135,561) | $ (869) | $ 82,599 |
Basic earnings (loss) per common share (in dollars per share) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.43 | $ 0.30 | $ (1.54) | $ 0.59 | $ 0.58 | $ (3.61) | $ (0.03) | $ 2.56 |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.42 | $ 0.29 | $ (1.54) | $ 0.59 | $ 0.57 | $ (3.61) | $ (0.03) | $ 2.51 |
Comprehensive income (loss) | $ (138,905) | $ (2,693) | $ 83,534 | ||||||||
Product [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 1,510,770 | ||||||||||
Service [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 163,765 | $ 0 | $ 0 | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 1,674,786 | ||||||||||
Gross profit | 694,390 | ||||||||||
Selling, general, and administrative | 570,949 | ||||||||||
Total operating expenses | 806,504 | ||||||||||
Operating income (loss) | (112,114) | ||||||||||
Income (loss) before income taxes | (188,511) | ||||||||||
Income tax expense (benefit) | (50,440) | ||||||||||
Net income (loss) | $ (138,071) | ||||||||||
Basic earnings (loss) per common share (in dollars per share) | $ (3.68) | ||||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ (3.68) | ||||||||||
Comprehensive income (loss) | $ (141,415) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Product [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 1,509,423 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Service [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | 165,363 | ||||||||||
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 | 251 | ||||||||||
Gross profit | 251 | ||||||||||
Selling, general, and administrative | 3,070 | ||||||||||
Total operating expenses | 3,070 | ||||||||||
Operating income (loss) | (2,819) | ||||||||||
Income (loss) before income taxes | (2,819) | ||||||||||
Income tax expense (benefit) | (309) | ||||||||||
Net income (loss) | $ (2,510) | ||||||||||
Basic earnings (loss) per common share (in dollars per share) | $ (0.07) | ||||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ (0.07) | ||||||||||
Comprehensive income (loss) | $ (2,510) | ||||||||||
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 | (1,347) | ||||||||||
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 | $ 1,598 |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jul. 02, 2018 | Mar. 31, 2018 |
Accounts payable | |||
Goodwill | $ 1,278,380 | $ 15,498 | |
Polycom [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 80,139 | ||
Trade receivables, net | 165,449 | ||
Inventories | 109,074 | ||
Prepaid expenses and other current assets | 68,451 | ||
Property and equipment, net | 79,497 | ||
Intangible assets | 985,400 | ||
Other assets | 27,237 | ||
Total assets acquired | 1,515,247 | ||
Accounts payable | |||
Accounts payable | 80,653 | ||
Accrued payroll and related liabilities | 44,538 | ||
Accrued expenses | 144,051 | ||
Income tax payable | 27,044 | ||
Deferred revenue | 115,061 | ||
Deferred income taxes | 98,342 | ||
Other liabilities | 51,796 | ||
Total liabilities assumed | 561,485 | ||
Total identifiable net assets acquired | 953,762 | ||
Goodwill | 1,262,883 | ||
Total Purchase Price | $ 2,216,645 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,278,380 | $ 1,278,380 | $ 15,498 | |
Triangle [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 16.00% | |||
Polycom [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Tax And Tax Liabilities | 44,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Working Capital Adjustment | 8,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other | 4,200 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 765,144 | |||
Goodwill | $ 1,262,883 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | $ 56,200 | |||
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 | |||
Payments to Acquire Businesses, Gross | 1,700,000 | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (129,032) | |||
Deferred Revenue Adjustment [Member] | Polycom [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 84,800 | |||
Fair Value Adjustment to Inventory [Member] | Polycom [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 30,400 | |||
Acquisition-related Costs [Member] | Polycom [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 19,200 |
ACQUISITION - Acquired Intangib
ACQUISITION - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 957,854 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 10 months 19 days | |
Polycom [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 927,400 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 5 months 12 days | |
Intangible Assets Acquired | $ 985,400 | |
Technology-Based Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 566,881 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 2 months 12 days | |
Technology-Based Intangible Assets [Member] | Polycom [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 538,600 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 11 months 12 days | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 245,481 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 9 months 9 days | |
Customer Relationships [Member] | Polycom [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 245,100 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 5 months 16 days | |
Order or Production Backlog [Member] | Polycom [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 28,100 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 months | |
Trademarks and Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 115,600 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 8 years 3 months | |
Trademarks and Trade Names [Member] | Polycom [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 115,600 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 9 years | |
In Process Research and Development [Member] | ||
Business Acquisition [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 29,892 | |
In Process Research and Development [Member] | Polycom [Member] | ||
Business Acquisition [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 58,000 |
ACQUISITION - Goodwill (Details
ACQUISITION - Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jul. 02, 2018 | Mar. 31, 2018 |
Goodwill [Line Items] | |||
Goodwill | $ 1,278,380 | $ 15,498 | |
Goodwill | $ 1,278,380 | ||
Polycom [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 1,262,883 | ||
Goodwill | $ 1,262,883 |
ACQUISITION - Pro Forma Informa
ACQUISITION - Pro Forma Information (Details) - Polycom [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 2,008,245 | $ 1,892,971 |
Business Acquisition, Pro Forma Operating Income (Loss) | 18,929 | (208,234) |
Business Acquisition, Pro Forma Net Income (Loss) | $ (38,516) | $ (379,032) |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 1,200 | |||
Cash and cash equivalents | 390,661 | $ 202,509 | $ 301,970 | $ 235,266 |
Short-term investments (due in 1 year or less) | 269,313 | 13,332 | ||
Total cash, cash equivalents and investments measured at fair value, amortized cost | 660,176 | 215,929 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized gain | 193 | 197 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized loss | (395) | (285) | ||
Total cash, cash equivalents and investments measured at fair value, fair value | 659,974 | 215,841 | ||
Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 30,522 | 0 | ||
Short-term investments (due in 1 year or less) | 112,597 | 13,332 | ||
Debt Securities, Available-for-sale, Amortized Cost | 143,053 | 13,420 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 193 | 197 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (127) | (285) | ||
Debt Securities, Available-for-sale | 143,119 | 13,332 | ||
Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 51,405 | |||
Short-term investments (due in 1 year or less) | 156,716 | |||
Total cash, cash equivalents and investments measured at fair value, amortized cost | 208,389 | |||
Total cash, cash equivalents and investments measured at fair value, gross unrealized gain | 0 | |||
Total cash, cash equivalents and investments measured at fair value, gross unrealized loss | (268) | |||
Total cash, cash equivalents and investments measured at fair value, fair value | 208,121 | |||
Cash | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 308,734 | 202,509 | ||
Money Market Funds [Member] | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 344 | |||
Available-for-sale Securities, fair value | 0 | |||
Short-term investments (due in 1 year or less) | 0 | |||
Debt Securities, Available-for-sale, Amortized Cost | 344 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Debt Securities, Available-for-sale | 344 | |||
Mutual Funds | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments (due in 1 year or less) | 13,455 | 13,332 | ||
Debt Securities, Available-for-sale, Amortized Cost | 13,336 | 13,420 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 186 | 197 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (67) | (285) | ||
Debt Securities, Available-for-sale | 13,455 | 13,332 | ||
US Treasury Notes | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 30,178 | 0 | ||
Available-for-sale Securities, amortized cost basis | 0 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 0 | |||
Short-term investments (due in 1 year or less) | 99,142 | $ 0 | ||
Debt Securities, Available-for-sale, Amortized Cost | 129,373 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 7 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (60) | |||
Debt Securities, Available-for-sale | 129,320 | |||
Commercial Paper-not included in Cash and Cash Equivalents | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 6,978 | |||
Short-term investments (due in 1 year or less) | 39,320 | |||
Debt Securities, Available-for-sale, Amortized Cost | 46,354 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (56) | |||
Debt Securities, Available-for-sale | 46,298 | |||
Municipal Bonds | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 3,591 | |||
Short-term investments (due in 1 year or less) | 0 | |||
Debt Securities, Available-for-sale, Amortized Cost | 3,591 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Debt Securities, Available-for-sale | 3,591 | |||
Corporate Bonds | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Short-term investments (due in 1 year or less) | 54,489 | |||
Debt Securities, Available-for-sale, Amortized Cost | 54,701 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (212) | |||
Debt Securities, Available-for-sale | 54,489 | |||
Commercial Paper | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 40,836 | |||
Short-term investments (due in 1 year or less) | 43,676 | |||
Debt Securities, Available-for-sale, Amortized Cost | 84,512 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Debt Securities, Available-for-sale | 84,512 | |||
Certificates of Deposits (CDs) | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Short-term investments (due in 1 year or less) | 19,231 | |||
Debt Securities, Available-for-sale, Amortized Cost | 19,231 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Debt Securities, Available-for-sale | $ 19,231 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Other long-term liabilities | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation liability, noncurrent | $ 13,500 | $ 14,100 |
Mutual Funds | Short-term investments | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Investments | 13,300 | |
Level 1 | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Securities held in a rabbi trust | 13,332 | 143,119 |
Level 1 | Mutual Funds | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Securities held in a rabbi trust | $ 13,332 | $ 13,455 |
DETAILS OF CERTAIN BALANCE SH_3
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 393,415 | $ 202,270 | |
Accounts receivable, net | 337,671 | $ 167,109 | 152,888 |
Provision For Returns | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable reserves | 0 | (10,225) | |
Provision for promotions and rebates | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable reserves | (50,789) | (38,284) | |
Provision for doubtful accounts and sales allowances | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable reserves | $ (4,956) | $ (873) |
DETAILS OF CERTAIN BALANCE SH_4
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 34,054 | $ 28,789 |
Work in process | 274 | 450 |
Finished goods | 142,818 | 39,037 |
Inventory, net | $ 177,146 | $ 68,276 |
DETAILS OF CERTAIN BALANCE SH_5
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |||
Land | $ 16,418 | $ 16,564 | |
Buildings and improvements (useful life: 7-30 years) | 138,000 | 115,401 | |
Machinery and equipment (useful life: 2-10 years) | 158,326 | 112,719 | |
Software (useful life: 5-10 years) | 68,985 | 50,631 | |
Construction in progress | 13,099 | 5,428 | |
Property, plant, and equipment, gross | 394,829 | 300,743 | |
Accumulated depreciation and amortization | (190,002) | (158,614) | |
Property, plant, and equipment, net | 204,826 | 142,129 | |
Depreciation and amortization expense | 40,600 | 21,100 | $ 20,700 |
Unamortized capitalized software costs | 30,600 | 23,600 | |
Amortization expense related to capitalized software costs | $ 11,000 | $ 4,900 | $ 4,400 |
Building and improvements | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 7 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 30 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 2 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 10 years | ||
Software | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 5 years | ||
Software | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 10 years |
DETAILS OF CERTAIN BALANCE SH_6
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | May 31, 2015 |
Accrued Liabilities [Abstract] | |||||
Employee compensation and benefits | $ 68,882 | $ 28,599 | |||
Accrued interest on 5.50% Senior Notes | 10,425 | 10,424 | |||
Warranty obligation, short-term portion | 15,736 | 7,550 | |||
VAT/Sales Tax Payable | 11,804 | 5,353 | |||
Derivative Liability, Current | 3,275 | 2,947 | |||
Accrued Income Taxes | 5,692 | 5,583 | |||
Marketing Incentives | 25,369 | 0 | |||
Discounts Reserve | 46,894 | 0 | |||
Accrued Provision For Returns, Current | 24,632 | 0 | |||
Accrued other | 52,806 | 16,655 | |||
Accrued Deferred Revenue, Current | 133,200 | 2,986 | |||
Accrued liabilities | $ 398,715 | $ 91,230 | $ 80,097 | ||
5.50% Senior Notes | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.50% | 5.50% |
DETAILS OF CERTAIN BALANCE SH_7
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty obligation at beginning of year | $ 9,604 | $ 8,697 |
Polycom warranty obligation | 9,095 | 0 |
Warranty provision related to products shipped | 19,884 | 9,923 |
Deductions for warranty claims processed | (20,638) | (10,193) |
Adjustments related to preexisting warranties | 39 | 1,177 |
Warranty obligation at end of year | $ 17,984 | $ 9,604 |
GOODWILL AND PURCHASED INTANG_3
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 132,179 | ||
Intangible assets, net | 825,675 | $ 0 | |
Finite-Lived Intangible Assets, Net | $ 795,326 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 10 months 19 days | ||
Goodwill | $ 1,278,380 | $ 15,498 | |
Finite-lived Intangible Assets Acquired | 957,854 | ||
Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 86,301 | ||
Finite-Lived Intangible Assets, Net | $ 480,580 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 2 months 12 days | ||
Finite-lived Intangible Assets Acquired | $ 566,881 | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 36,245 | ||
Finite-Lived Intangible Assets, Net | $ 209,236 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 9 months 9 days | ||
Finite-lived Intangible Assets Acquired | $ 245,481 | ||
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 9,633 | ||
Finite-Lived Intangible Assets, Net | $ 105,967 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 8 years 3 months | ||
Finite-lived Intangible Assets Acquired | $ 115,600 | ||
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 29,892 | ||
Polycom [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 5 months 12 days | ||
Goodwill | $ 1,262,883 | ||
Amortization of Intangible Assets | 160,300 | ||
Finite-lived Intangible Assets Acquired | $ 927,400 | ||
Polycom [Member] | Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 11 months 12 days | ||
Finite-lived Intangible Assets Acquired | 538,600 | ||
Polycom [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 5 months 16 days | ||
Finite-lived Intangible Assets Acquired | 245,100 | ||
Polycom [Member] | Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 9 years | ||
Finite-lived Intangible Assets Acquired | 115,600 | ||
Polycom [Member] | In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 58,000 |
GOODWILL AND PURCHASED INTANG_4
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 179,253 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 174,411 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 160,128 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 156,419 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 75,012 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 50,103 |
Finite-Lived Intangible Assets, Net | $ 795,326 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Dec. 10, 2018 | Jul. 31, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 |
Operating Leases, Future Minimum Payments Due [Abstract] | ||||||
2020 | $ 18,882,000 | |||||
2021 | 17,883,000 | |||||
2022 | 15,239,000 | |||||
2023 | 5,800,000 | |||||
2024 | $ 1,281,000 | |||||
Thereafter | $ 601,000 | |||||
Total minimum future rental payments | 59,686,000 | |||||
2020 | (5,238,000) | |||||
2021 | (5,481,000) | |||||
2022 | (5,645,000) | |||||
2023 | (1,160,000) | |||||
2024 | 0 | |||||
Thereafter | 0 | |||||
Total minimum future rental payments | 17,524,000 | |||||
2020 | 13,644,000 | |||||
2021 | 12,402,000 | |||||
2022 | 9,594,000 | |||||
2023 | 4,640,000 | |||||
2024 | 1,281,000 | |||||
Thereafter | 601,000 | |||||
Total minimum future rental payments | 42,162,000 | |||||
Unconditional purchase obligations | 399,000,000 | |||||
Loss Contingencies [Line Items] | ||||||
Operating Leases, Rent Expense | 17,800,000 | $ 2,600,000 | $ 2,800,000 | |||
Litigation Settlement, Amount Awarded to Other Party | $ 374,475 | 38,100,000 | ||||
Litigation Settlement, Disgorgement, Amount Awarded to Other Party | 31,000,000 | |||||
Litigation Settlement, Prejudgement Interest, Amount Awarded to Other Party | 1,800,000 | |||||
Litigation Settlement, Civil Penalties, Amount Awarded to Other Party | 3,800,000 | |||||
Litigation Settlement, Reimbursement Of Legal Fees | 1,400,000 | |||||
GN Netcom, Inc. vs. Plantronics, Inc. | Punitive Sanctions | ||||||
Loss Contingencies [Line Items] | ||||||
Punitive sanctions awarded against Plantronics, Inc. | $ 4,900,000 | |||||
Litigation Settlement, Amount Awarded from Other Party | $ 200,000 |
DEBT (Details)
DEBT (Details) | Apr. 04, 2021 | Jul. 02, 2018USD ($) | May 31, 2015USD ($) | Jun. 29, 2019 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 31, 2019USD ($)letter_of_credit | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Debt Disclosure [Line Items] | |||||||||
Extinguishment of Debt, Amount | $ 100,000,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | $ 2,200,000 | ||||||||
Debt Instrument, Number Of Letters Of Credit | letter_of_credit | 4 | ||||||||
Proceeds from issuance of senior notes, net of issuance costs | $ 1,244,713,000 | $ 0 | $ 0 | ||||||
Line Of Credit Facility, Periodic Payment, Principal, Percentage Multiplied By Funded Amount | 0.25% | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 31,000,000 | 7,500,000 | |||||||
Debt Instrument, Debt Default, Interest Rate In Excess Of Applicable Rate | 2.00% | ||||||||
Senior notes | 5.50% Senior Notes | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 105.50% | ||||||||
Principal amount of debt issued | $ 500,000,000 | ||||||||
Stated interest rate | 5.50% | 5.50% | |||||||
Proceeds from issuance of senior notes, net of issuance costs | $ 488,400,000 | ||||||||
Debt issuance costs | $ 11,600,000 | ||||||||
Repurchase price, percentage of principal amount | 101.00% | ||||||||
Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Principal amount of debt issued | $ 1,275,000,000 | ||||||||
Long-term Debt | 1,245,000,000 | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 30,000,000 | ||||||||
Minimum | Senior notes | 5.50% Senior Notes | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt redemption notice period | 30 days | ||||||||
Maximum | Senior notes | 5.50% Senior Notes | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt redemption notice period | 60 days | ||||||||
Percentage of debt redeemed | 35.00% | ||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | ||||||||
Line Of Credit Facility, Unused Capacity, Percentage Over LIBOR Multiplied By Daily Amount Available Under Facility | 50.00% | ||||||||
Debt Instrument, Prepayment Penalty, Percent | 1.00% | ||||||||
Letters of Credit Outstanding, Amount | $ 800,000 | ||||||||
Revolving Credit Facility [Member] | Minimum | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||||||||
Revolving Credit Facility [Member] | Maximum | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||||||||
Federal Funds Rate [Member] | Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Basis spread of variable rate | 0.50% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Basis spread of variable rate | 1.00% | ||||||||
Scenario, Forecast [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
EBITDA | 2.75 | 3.50 | 3.25 | 3 | |||||
Level 2 | Fair Value | Senior notes | 5.50% Senior Notes | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long term debt, 5.50% Senior Notes | $ 503,410,000 | 497,095,000 | |||||||
Level 2 | Carrying Value | Senior notes | 5.50% Senior Notes | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long term debt, 5.50% Senior Notes | 493,959,000 | 492,509,000 | |||||||
Level 2 | Revolving Credit Facility [Member] | Fair Value | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long term debt, 5.50% Senior Notes | 1,152,044,000 | 0 | |||||||
Level 2 | Revolving Credit Facility [Member] | Carrying Value | Line of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long term debt, 5.50% Senior Notes | $ 1,146,842,000 | $ 0 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) - Restructuring Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 13,372 | $ 439 |
Plantronics Legacy Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 7,027 | $ 439 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 439 |
Assumed Liability | 9,495 |
Accruals | 32,694 |
Cash Payments | (29,463) |
Adjustments | 207 |
Restructuring Reserve | 13,372 |
Employee severance and related benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 114 |
Assumed Liability | 921 |
Accruals | 25,033 |
Cash Payments | (19,897) |
Adjustments | (33) |
Restructuring Reserve | 6,138 |
Facility Closing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 325 |
Assumed Liability | 8,574 |
Accruals | 2,241 |
Cash Payments | (4,146) |
Adjustments | 240 |
Restructuring Reserve | 7,234 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 5,420 |
Cash Payments | (5,420) |
Adjustments | 0 |
Restructuring Reserve | 0 |
Plantronics Legacy Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 439 |
Assumed Liability | 9,495 |
Accruals | 1,200 |
Cash Payments | (4,115) |
Adjustments | 8 |
Restructuring Reserve | 7,027 |
Plantronics Legacy Plan [Member] | Employee severance and related benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 114 |
Assumed Liability | 921 |
Accruals | 1,101 |
Cash Payments | (1,747) |
Adjustments | (197) |
Restructuring Reserve | 192 |
Plantronics Legacy Plan [Member] | Facility Closing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 325 |
Assumed Liability | 8,574 |
Accruals | 99 |
Cash Payments | (2,368) |
Adjustments | 205 |
Restructuring Reserve | 6,835 |
Fiscal Year 2019 Plans [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 31,494 |
Cash Payments | (25,348) |
Adjustments | 199 |
Restructuring Reserve | 6,345 |
Fiscal Year 2019 Plans [Member] | Employee severance and related benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 23,932 |
Cash Payments | (18,150) |
Adjustments | 164 |
Restructuring Reserve | 5,946 |
Fiscal Year 2019 Plans [Member] | Facility Closing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 2,142 |
Cash Payments | (1,778) |
Adjustments | 35 |
Restructuring Reserve | 399 |
Fiscal Year 2019 Plans [Member] | Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 5,420 |
Cash Payments | (5,420) |
Adjustments | 0 |
Restructuring Reserve | $ 0 |
STOCK PLANS AND STOCK-BASED C_3
STOCK PLANS AND STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Jul. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee compensation and benefits | $ 68,882 | $ 28,599 | ||
Number of shares reserved under plan (shares) | 17,400,000 | |||
Percent of estimated fair market value at the date of grant (percentage) | 100.00% | |||
Options to purchase shares of common stock (shares) | 627,321 | |||
Unvested restricted stock and restricted stock units (shares) | 1,617,118 | |||
Shares available for future grant (shares) | 2,879,253 | |||
Percentage of fair market value at date of grant (percentage) | 85.00% | |||
Shares issued under the ESPP | 138,133 | 156,355 | 151,648 | |
Total intrinsic value | $ 5,800 | $ 9,400 | $ 5,500 | |
Total cash received from employees as a result of exercises, net of taxes | 12,500 | |||
Total net tax benefit attributable to stock options exercised | $ 1,400 | |||
2002 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved under plan (shares) | 436,190 | |||
Total cash received from employees as a result of stock issuances under the ESPP, net of taxes | $ 6,200 | |||
Offering period | 6 months | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of option | 7 years | |||
Options to purchase shares of common stock (shares) | 627,000 | 923,000 | ||
Total unrecognized compensation cost | $ 300 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted stock and restricted stock units (shares) | 1,618,000 | 1,254,000 | ||
Total unrecognized compensation cost | $ 60,000 | |||
Period for recognition for unrecognized compensation cost | 1 year 8 months 12 days | |||
Weighted average grant date fair value (in dollars per share) | $ 68.68 | $ 53.62 | $ 44.82 | |
Total grant date fair value | $ 28,700 | $ 27,800 | $ 28,900 | |
Employee | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period (years) | 3 years | |||
Employee | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period (years) | 3 years | |||
Director | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period (years) | 4 years | |||
Director | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period (years) | 1 year | |||
Polycom [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee compensation and benefits | $ 7,900 | |||
Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement By Share-based Payment Award, Accelerated Vesting, Percentage | 75.00% | |||
Share-based Compensation Award, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement By Share-based Payment Award, Accelerated Vesting, Percentage | 25.00% |
STOCK PLANS AND STOCK-BASED C_4
STOCK PLANS AND STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 41,934 | $ 33,959 | $ 33,539 |
Income tax benefit | (9,891) | (7,880) | (10,768) |
Total stock-based compensation expense, net of tax | 32,043 | 26,079 | 22,771 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,176 | 3,622 | 3,244 |
Research, development and engineering | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 11,699 | 8,071 | 8,616 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 26,059 | 22,266 | 21,679 |
Stock-based compensation expense included in operating expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 37,758 | $ 30,337 | $ 30,295 |
STOCK PLANS AND STOCK-BASED C_5
STOCK PLANS AND STOCK-BASED COMPENSATION Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, March 31, 2017 (shares) | 627,321 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, March 31, 2016 (shares) | 923,000 |
Options granted (shares) | 0 |
Options exercised (shares) | (277,000) |
Options forfeited or expired (shares) | (18,000) |
Options outstanding, March 31, 2017 (shares) | 627,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price of options outstanding at March 31, 2016 (in dollars per share) | $ / shares | $ 47.53 |
Weighted average exercise price of options granted (in dollars per share) | $ / shares | 0 |
Weighted average exercise price of options exercised (in dollars per share) | $ / shares | 45.07 |
Weighted average exercise price of options forfeited or expired (in dollars per share) | $ / shares | 46.06 |
Weighted average exercise price of options outstanding at March 31, 2017 (in dollars per share) | $ / shares | $ 48.66 |
Weighted average remaining contractual life of options outstanding at March 31, 2016 (in years) | 2 years 128 days |
Aggregate intrinsic value of options outstanding at March 31, 2017 | $ | $ 670 |
Vested or expected to vest at March 31, 2017 (in shares) | 627,000 |
Weighted average exercise price of options vested or expected to vest at March 31, 2017 (in dollars per share) | $ / shares | $ 48.66 |
Weighted average remaining contractual life of options vested or expected to vest at March 31, 2017 (in years) | 2 years 128 days |
Aggregate intrinsic value of options vested or expected to vest at March 31, 2017 | $ | $ 670 |
Exercisable at March 31, 2017 (in shares) | 594,000 |
Weighted average exercise price of options exercisable at March 31, 2017 (in dollars per share) | $ / shares | $ 48.80 |
Weighted average remaining contractual life of options exercisable at March 31, 2017 (in years) | 2 years 73 days |
Aggregate intrinsic value of options exercisable at March 31, 2017 | $ | $ 640 |
STOCK PLANS AND STOCK-BASED C_6
STOCK PLANS AND STOCK-BASED COMPENSATION Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Non-vested Restricted Stock at March 31, 2017 (shares) | 1,617,118 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Non-vested Restricted Stock at March 31, 2016 (shares) | 1,254,000 | ||
Restricted stock granted (shares) | 1,171,000 | ||
Restricted stock vested (shares) | (572,000) | ||
Restricted stock forfeited (shares) | (235,000) | ||
Non-vested Restricted Stock at March 31, 2017 (shares) | 1,618,000 | 1,254,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value or restricted stock, March 31, 2016 (in dollars per share) | $ 51.09 | ||
Weighted average grant date fair value of restricted stock granted (in dollars per share) | 68.68 | $ 53.62 | $ 44.82 |
Weighted average grant date fair value of restricted stock vested (in dollars per share) | 50.24 | ||
Weighted average grant date fair value of restricted stock forfeited (in dollars per share) | 60.44 | ||
Weighted average grant date fair value or restricted stock, March 31, 2017 (in dollars per share) | $ 62.77 | $ 51.09 |
STOCK PLANS AND STOCK-BASED C_7
STOCK PLANS AND STOCK-BASED COMPENSATION Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.10% | 31.10% | |
Risk-free interest rate | 1.70% | 1.10% | |
Expected dividends | 1.20% | 1.40% | |
Expected life (in years) | 4 years 7 months 6 days | 4 years 146 days | |
Weighted-average grant date fair value (in dollars per share) | $ 12.58 | $ 10.39 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 40.80% | 30.50% | 28.80% |
Risk-free interest rate | 2.40% | 1.50% | 0.60% |
Expected dividends | 1.10% | 1.20% | 1.10% |
Expected life (in years) | 6 months | 6 months | 183 days |
Weighted-average grant date fair value (in dollars per share) | $ 14.44 | $ 11.78 | $ 12.03 |
COMMON STOCK REPURCHASES (Detai
COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Nov. 28, 2018 | |
Equity [Abstract] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,700,000 | 1,000,000 | ||
Repurchase of common stock, shares | 361,091 | 1,139,548 | ||
Repurchase of common stock | $ 13,177 | $ 52,948 | $ 34,236 | |
Repurchase of common stock, average price per share (in dollars per share) | $ 36.49 | $ 46.46 | ||
Value of shares withheld in satisfaction of employee tax withholding obligations | $ 14,070 | $ 11,429 | $ 9,736 | |
Treasury stock retired (shares) | 0 | 0 | 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (475) | $ 2,870 |
Accumulated unrealized gain (loss) on cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated unrealized gain (loss) on cash flow hedges | (5,310) | (1,663) |
Accumulated foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated foreign currency translation adjustments | 4,835 | 4,685 |
Accumulated unrealized gain on investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated unrealized loss on investments | 0 | (152) |
Accumulated other comprehensive income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (475) | $ 2,870 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
EMPLOYEE BENEFIT PLANS [Abstract] | ||||
Company match | 50.00% | 50.00% | ||
Portion of employee compensation matched under 401(k) | 6.00% | |||
Non-elective company contribution as percentage of employee salary | 3.00% | 3.00% | ||
Vesting of matching contributions | 100.00% | 100.00% | ||
Company contributions | $ 7.1 | $ 4.5 | $ 4.2 |
FOREIGN CURRENCY DERIVATIVES (D
FOREIGN CURRENCY DERIVATIVES (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2017financial_institution | Mar. 31, 2019EUR (€) | Mar. 31, 2019MXN ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019AUD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018MXN ($) | Mar. 31, 2018GBP (£) | |
Derivative [Line Items] | |||||||||
Number of financial institutions the company has International Swap and Derivatives Association agreements | 4 | ||||||||
Foreign Exchange Forward, EURO | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 38,239 | € 34,000 | |||||||
Derivative, Currency Sold | Sell EUR | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Foreign Exchange Forward, GBP | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 15,091 | £ 11,600 | |||||||
Derivative, Currency Sold | Sell GBP | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Foreign Exchange Forward, AUD | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 10,775 | $ 15,200 | |||||||
Derivative, Currency Sold | Sell AUD | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Option contracts | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | 76,800 | 25,800 | € 50,800 | £ 15,600 | |||||
Forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | € 55,400 | £ 18,000 | € 35,000 | £ 10,700 | |||||
Foreign currency swap contract | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 7,537 | $ 149,700 | $ 31,800 | ||||||
Derivative, Currency Bought | Buy MXN | ||||||||
Derivative, Remaining Maturity | 9 months | ||||||||
Minimum | Options | |||||||||
Derivative [Line Items] | |||||||||
Term of contract | 6 months | ||||||||
Maximum | Options | |||||||||
Derivative [Line Items] | |||||||||
Term of contract | 12 months | ||||||||
Cash flow hedge | Forwards | |||||||||
Derivative [Line Items] | |||||||||
Term of contract | 3 months |
FOREIGN CURRENCY DERIVATIVES _2
FOREIGN CURRENCY DERIVATIVES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Derivative Asset [Abstract] | ||
Derivative asset not subject to master netting agreements | $ 0 | |
Gross Amount of Derivative Assets | 3,183 | $ 772 |
Net Amount of Derivative Assets, subject to master netting agreements | 2,300 | |
Net Amount of Derivative Assets | 2,300 | 0 |
Derivative Liability [Abstract] | ||
Derivative liability not subject to master netting agreements | 0 | |
Gross Amount of Derivative Liabilities | (9,483) | (3,037) |
Net Amount of Derivative Liabilities, subject to master netting agreements | (8,600) | |
Net Amount of Derivative Liabilities | $ (8,600) | $ (2,265) |
FOREIGN CURRENCY DERIVATIVES _3
FOREIGN CURRENCY DERIVATIVES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain on foreign exchange contracts | $ 7,340 | $ (7,405) | $ 4,599 |
FOREIGN CURRENCY DERIVATIVES FO
FOREIGN CURRENCY DERIVATIVES FOREIGN CURRENCY DERIVATIVES (Details 3) $ in Thousands, $ in Thousands, € in Millions, £ in Millions | Jul. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2019EUR (€) | Mar. 31, 2019MXN ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2018EUR (€) | Mar. 31, 2018MXN ($) | Mar. 31, 2018GBP (£) |
Derivative [Line Items] | ||||||||||
Net (gains) losses reclassified into income for interest rate swap | $ (2,600) | $ 0 | $ 0 | |||||||
Foreign currency swap contract | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of cash flow hedge | $ 7,537 | $ 149,700 | $ 31,800 | |||||||
Option contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of cash flow hedge | € 76.8 | £ 25.8 | € 50.8 | £ 15.6 | ||||||
Forward contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of cash flow hedge | € 55.4 | £ 18 | € 35 | £ 10.7 | ||||||
Interest Rate Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Term of contract | 4 years | |||||||||
Notional amount of cash flow hedge | $ 831,000 | |||||||||
Derivative, Fixed Interest Rate | 2.78% |
FOREIGN CURRENCY DERIVATIVES _4
FOREIGN CURRENCY DERIVATIVES (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Effect of Derivative Contracts on Accumulated Other Comprehensive Income and Statements of Operations [Roll Forward] | |||||||||||
Gain (loss) included in AOCI as of beginning of period | $ (1,693) | $ 541 | $ (1,693) | $ 541 | $ (1,106) | ||||||
Amount of gain (loss) recognized in OCI (effective portion) | (4,176) | (6,741) | 3,095 | ||||||||
Net revenues | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | $ 216,143 | $ 226,534 | $ 210,300 | $ 203,926 | 1,674,535 | 856,903 | 881,176 |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (980,396) | (417,788) | (439,806) | ||||||||
Interest expense | (83,000) | (29,297) | (29,230) | ||||||||
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | (1,611) | 4,507 | (1,448) | ||||||||
Gain (loss) included in AOCI as of end of period | $ (7,480) | $ (1,693) | (7,480) | (1,693) | 541 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Effect of Derivative Contracts on Accumulated Other Comprehensive Income and Statements of Operations [Roll Forward] | |||||||||||
Net revenues | (4,034) | 4,715 | (4,111) | ||||||||
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (177) | (208) | 2,663 | ||||||||
Interest expense | $ 2,600 | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Current: | ||||
Federal | $ (1,199,000) | $ 82,523,000 | $ 10,591,000 | |
State | 2,550,000 | 4,274,000 | 457,000 | |
Foreign | (1,550,000) | 6,860,000 | 7,731,000 | |
Total current provision for income taxes | (199,000) | 93,657,000 | 18,779,000 | |
Deferred: | ||||
Federal | (37,577,000) | 9,002,000 | 1,022,000 | |
State | (4,160,000) | (1,585,000) | (117,000) | |
Foreign | (8,195,000) | 22,000 | (618,000) | |
Total deferred benefit for income taxes | (49,932,000) | 7,439,000 | 287,000 | |
Income tax expense (benefit) | (50,131,000) | 101,096,000 | 19,066,000 | |
Components of income before income taxes | ||||
United States | (179,387,000) | 17,654,000 | 43,377,000 | |
Foreign | (6,305,000) | 82,573,000 | 58,288,000 | |
Income (loss) before income taxes | (185,692,000) | 100,227,000 | 101,665,000 | |
Reconciliation between statutory federal income taxes and income tax expense | ||||
Tax expense at statutory rate | (38,995,000) | 31,631,000 | 35,583,000 | |
Foreign operations taxed at different rates | (4,965,000) | (17,970,000) | (13,183,000) | |
State taxes, net of federal benefit | (1,610,000) | 2,689,000 | 340,000 | |
Research and development credit | (4,288,000) | (2,023,000) | (3,119,000) | |
Net GILTI Inclusion | 4,398,000 | 0 | 0 | |
Net GILTI Inclusion | (1,196,000) | (1,771,000) | (365,000) | |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Amount | (3,728,000) | 87,790,000 | 0 | |
Other, net | 253,000 | 750,000 | (190,000) | |
Income tax expense (benefit) | (50,131,000) | 101,096,000 | 19,066,000 | |
Components of Deferred Tax Assets | ||||
Accruals and other reserves | 24,167,000 | 4,809,000 | ||
Deferred compensation | 2,980,000 | 3,467,000 | ||
Net operating loss carry forward | 16,921,000 | 1,540,000 | ||
Stock compensation | 9,484,000 | 8,384,000 | ||
Interest expense | 11,550,000 | 0 | ||
Tax credits | 7,072,000 | 6,504,000 | ||
Deferred Tax Assets, Engineering Costs | 31,015,000 | 0 | ||
Other deferred tax assets | 635,000 | 1,070,000 | ||
Valuation allowance | (15,787,000) | (2,514,000) | ||
Total deferred tax assets | 88,037,000 | 23,260,000 | ||
Components of Deferred Tax Liabilities | ||||
Deferred gains on sales of properties | (1,155,000) | (1,160,000) | ||
Deferred Tax Liabilities, Intangible Assets | (92,544,000) | 0 | ||
Deferred Tax Liabilities, Unearned Revenue | (5,054,000) | 0 | ||
Unremitted earnings of certain subsidiaries | (17,879,000) | (1,976,000) | ||
Fixed asset depreciation | (7,881,000) | (4,150,000) | ||
Total deferred tax liabilities | [1] | (36,476,000) | ||
Deferred Tax Assets, Gross | 124,513,000 | 7,286,000 | ||
Net deferred tax assets | [1] | 15,974,000 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of period | 12,612,000 | 12,854,000 | 12,692,000 | |
Increase (decrease) of unrecognized tax benefits related to prior fiscal years | 254,000 | (1,310,000) | (2,000) | |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 13,329,000 | 0 | 0 | |
Increase of unrecognized tax benefits related to the current year | 2,069,000 | 3,085,000 | 2,195,000 | |
Reductions to unrecognized tax benefits related to settlements with taxing authorities | 0 | (115,000) | 0 | |
Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations | (1,806,000) | (1,902,000) | (2,031,000) | |
Balance at end of period | 26,458,000 | 12,612,000 | 12,854,000 | |
Tax penalties accrued | 0 | $ 0 | ||
Interest related to unrecognized tax benefits | 2,000,000 | 1,400,000 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 1,200,000 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 79,700,000 | |||
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Transition Tax on Accumulated Foreign Earnings, Amount | (800,000) | |||
Payment For Repatriation Tax | 21,500,000 | |||
Tax Cuts And Jobs Act, Transition Tax For Accumulated Foreign Earnings, Liability | 57,300,000 | |||
Tax Cuts And Jobs Act, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 5,000,000 | |||
Tax Cuts And Jobs Act, Transition Tax For Accumulated Foreign Earnings, Income Tax Expense | $ (3,200,000) | |||
Effective Income Tax Rate Reconciliation, Change In Enacted Tax Rate, Increase (Decrease) In Global Tax Rate, Percent | (2.10%) | |||
California Franchise Tax Board [Member] | ||||
Components of Deferred Tax Liabilities | ||||
Research and development credit carryforwards | $ 11,700,000 | |||
State Administration of Taxation, China [Member] | ||||
Components of Deferred Tax Assets | ||||
Net operating loss carry forward | 300,000 | |||
Foreign Tax Authority [Member] | ||||
Components of Deferred Tax Assets | ||||
Net operating loss carry forward | 9,800,000 | |||
State and Local Jurisdiction [Member] | ||||
Components of Deferred Tax Assets | ||||
Net operating loss carry forward | 5,700,000 | |||
Domestic Tax Authority [Member] | ||||
Components of Deferred Tax Assets | ||||
Net operating loss carry forward | $ 3,900,000 | |||
[1] | The Company's deferred tax assets for the Fiscal Year ended March 31, 2018 and March 31, 2019, are included as a component of other assets on the consolidated balance sheets. |
COMPUTATION OF EARNINGS PER C_3
COMPUTATION OF EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (21,589) | $ (41,734) | $ (86,709) | $ 14,471 | $ 9,854 | $ (49,504) | $ 19,953 | $ 18,828 | $ (135,561) | $ (869) | $ 82,599 |
Earnings Per Share, Basic and Diluted | |||||||||||
Weighted average common shares-basic | 37,569 | 32,345 | 32,279 | ||||||||
Dilutive effect of employee equity incentive plans | 0 | 0 | 684 | ||||||||
Weighted average common shares-diluted | 37,569 | 32,345 | 32,963 | ||||||||
Basic (in dollars per share) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.43 | $ 0.30 | $ (1.54) | $ 0.59 | $ 0.58 | $ (3.61) | $ (0.03) | $ 2.56 |
Diluted (in dollars per share) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.42 | $ 0.29 | $ (1.54) | $ 0.59 | $ 0.57 | $ (3.61) | $ (0.03) | $ 2.51 |
Potentially dilutive securities excluded from diluted earnings (loss) per share because their effect is anti-dilutive | 616 | 543 | 574 |
REVENUE AND MAJOR CUSTOMERS (De
REVENUE AND MAJOR CUSTOMERS (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2019USD ($)Customer | Mar. 31, 2018USD ($)Customer | Mar. 31, 2017USD ($)Customer | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue, Remaining Performance Obligation, Current | $ 142,100 | $ 142,100 | |||||||||
Net revenues | 468,488,000 | $ 501,669,000 | $ 483,069,000 | $ 221,309,000 | $ 216,143,000 | $ 226,534,000 | $ 210,300,000 | $ 203,926,000 | 1,674,535,000 | $ 856,903,000 | $ 881,176,000 |
Contract with Customer, Liability | 193,900,000 | $ 3,000,000 | $ 193,900,000 | $ 3,000,000 | $ 2,000,000 | ||||||
Contract with Customer, Liability, Percentage Of Revenue | 11.60% | 1.00% | |||||||||
Number of major customers, ten percent or greater, net accounts receivable | Customer | 1 | ||||||||||
Capitalized Contract Cost, Gross | 3,100,000 | $ 3,100,000 | |||||||||
Revenue, Remaining Performance Obligation, Noncurrent | 60,700 | 60,700 | |||||||||
Revenue, Remaining Performance Obligation, Amount | $ 202,800 | 202,800 | |||||||||
U.S. | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 789,545,000 | $ 434,053,000 | $ 482,215,000 | ||||||||
Europe and Africa [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 476,891,000 | 250,763,000 | 226,620,000 | ||||||||
Asia Pacific | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 288,880,000 | 99,779,000 | 106,295,000 | ||||||||
Americas, excluding U.S. | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 119,219,000 | 72,308,000 | 66,046,000 | ||||||||
Total international net revenues [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 884,990,000 | 422,850,000 | 398,961,000 | ||||||||
Enterprise Headset [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 680,881,000 | 649,739,000 | 628,654,000 | ||||||||
Consumer Headset [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 229,817,000 | 207,164,000 | 252,522,000 | ||||||||
Voice [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 344,586,000 | 0 | 0 | ||||||||
Video [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 255,485,000 | 0 | 0 | ||||||||
Service [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 163,765,000 | $ 0 | $ 0 | ||||||||
Net Revenues [Member] | Customer concentration risk | Ingram Micro [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Number of major customers, ten percent or greater, net revenues | Customer | 1 | ||||||||||
Concentration risk percentage | 11.40% | 10.90% | |||||||||
Net Revenues [Member] | Customer concentration risk | ScanSource [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk percentage | 16.00% | ||||||||||
Accounts receivable | Customer concentration risk | Ingram Micro [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk percentage | 21.30% | 12.40% | |||||||||
Accounts receivable | Customer concentration risk | Scansource, 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 | 3 | 3 | |||||||||
Accounts receivable | Customer concentration risk | 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 | 2 | |||||||||
Accounts receivable | Customer concentration risk | D&H Distributors [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk percentage | 10.90% | 13.00% | |||||||||
Accounts receivable | Customer concentration risk | ScanSource [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Concentration risk percentage | 19.20% |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 204,826 | $ 142,129 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 101,637 | 64,975 |
The Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 19,052 | 41,036 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 40,821 | 20,752 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 9,074 | 6,452 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 15,738 | 1,088 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 18,504 | $ 7,826 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event $ / shares in Units, $ in Millions | May 07, 2019USD ($)$ / shares |
Subsequent Event [Line Items] | |
Cash dividend payable per share | $ / shares | $ 0.15 |
Employee severance and related benefits | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ | $ 14 |
SUPPLEMENTARY QUARTERLY FINAN_3
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Duration of fiscal year | 364 days | 371 days | 364 days | ||||||||
Net revenues | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | $ 216,143 | $ 226,534 | $ 210,300 | $ 203,926 | $ 1,674,535 | $ 856,903 | $ 881,176 |
Gross Profit | 216,530 | 215,137 | 152,629 | 109,843 | 114,075 | 114,125 | 107,632 | 103,283 | 694,139 | 439,115 | 441,370 |
Net income (loss) | $ (21,589) | $ (41,734) | $ (86,709) | $ 14,471 | $ 9,854 | $ (49,504) | $ 19,953 | $ 18,828 | $ (135,561) | $ (869) | $ 82,599 |
Basic (in dollars per share) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.43 | $ 0.30 | $ (1.54) | $ 0.59 | $ 0.58 | $ (3.61) | $ (0.03) | $ 2.56 |
Diluted (in dollars per share) | (0.55) | (1.06) | (2.21) | 0.42 | 0.29 | (1.54) | 0.59 | 0.57 | (3.61) | (0.03) | 2.51 |
Cash dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.6 | $ 0.6 | $ 0.6 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Provision for doubtful accounts and sales allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 873 | $ 603 | $ 564 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 3,928 | 0 | 0 |
Charged to Expenses or Other Accounts | 4,332 | 784 | 621 |
Deductions | (4,176) | (514) | (582) |
Balance at End of Year | 4,956 | 873 | 603 |
Provision for returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 10,225 | 10,541 | 7,314 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | (10,225) | 0 | 0 |
Charged to Expenses or Other Accounts | 0 | 30,472 | 35,485 |
Deductions | 0 | (30,788) | (32,258) |
Balance at End of Year | 0 | 10,225 | 10,541 |
Provision for promotions and rebates | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 38,284 | 31,747 | 27,737 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 44,136 | 0 | 0 |
Charged to Expenses or Other Accounts | 417,422 | 183,929 | 150,085 |
Deductions | (376,789) | (177,392) | (146,075) |
Balance at End of Year | 123,053 | 38,284 | 31,747 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 2,514 | 2,209 | 1,962 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 8,068 | ||
Charged to Expenses or Other Accounts | 7,469 | 981 | 1,130 |
Deductions | (2,264) | (676) | (883) |
Balance at End of Year | $ 15,787 | $ 2,514 | $ 2,209 |
Uncategorized Items - plt-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,595,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,719,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (124,000) |