COVER PAGE
COVER PAGE - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 28, 2020 | May 28, 2020 | Sep. 27, 2019 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Mar. 28, 2020 | |||
Document Transition Report | false | |||
Entity File Number | 1-12696 | |||
Entity Registrant Name | Plantronics, Inc. | |||
Entity Incorporation, State or Country Code | DE | |||
Entity Tax Identification Number | 77-0207692 | |||
Entity Address, Address Line One | 345 Encinal Street | |||
Entity Address, City or Town | Santa Cruz | |||
Entity Address, State or Province | CA | |||
Entity Address, Postal Zip Code | 95060 | |||
City Area Code | 831 | |||
Local Phone Number | 426-5858 | |||
Title of 12(b) Security | COMMON STOCK, $0.01 PAR VALUE | |||
Trading Symbol | PLT | |||
Security Exchange Name | NYSE | |||
Entity Well-known Seasoned Issuer | Yes | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Large Accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 1,494,433,881 | |||
Entity Common Stock, Shares Outstanding | 40,683,561 | |||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended March 28, 2020 . | |||
Current Fiscal Year End Date | --03-28 | |||
Document Fiscal Year Focus | 2020 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | false | |||
Entity Central Index Key | 0000914025 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 213,879 | $ 202,509 |
Short-term investments | 11,841 | 13,332 |
Accounts receivable, net | 246,835 | 337,671 |
Inventory, net | 164,527 | 177,146 |
Other current assets | 47,946 | 50,488 |
Total current assets | 685,028 | 781,146 |
Property, plant, and equipment, net | 165,858 | 204,826 |
Purchased intangibles, net | 466,915 | 825,675 |
Goodwill | 796,216 | 1,278,380 |
Deferred tax assets | 82,496 | 5,567 |
Other assets | 60,661 | 20,941 |
Total assets | 2,257,174 | 3,116,535 |
Current liabilities: | ||
Accounts payable | 102,159 | 129,514 |
Accrued liabilities | 373,666 | 398,715 |
Total current liabilities | 475,825 | 528,229 |
Long term debt, net of issuance costs | 1,621,694 | 1,640,801 |
Long-term income taxes payable | 98,319 | 83,121 |
Other long-term liabilities | 144,152 | 142,697 |
Total liabilities | 2,339,990 | 2,394,848 |
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, 57,237 shares and 56,113 shares issued at 2020 and 2019, respectively | 896 | 884 |
Additional paid-in capital | 1,501,340 | 1,431,607 |
Accumulated other comprehensive loss | (13,582) | (475) |
(Accumulated deficit) retained earnings | (707,904) | 143,344 |
Total stockholders' equity before treasury stock | 780,750 | 1,575,360 |
Less: Treasury stock (common: 16,829 shares and 16,595 shares at 2020 and 2019, respectively) at cost | (863,566) | (853,673) |
Total stockholders' equity | (82,816) | 721,687 |
Total liabilities and stockholders' equity | $ 2,257,174 | $ 3,116,535 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 28, 2020 | Mar. 30, 2019 |
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 | 57,237,000 | 56,113,000 |
Treasury stock, common shares | 16,829,000 | 16,595,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Net revenues | $ 1,696,990 | $ 1,674,535 | $ 856,903 |
Cost of revenues | 1,144,755 | 980,396 | 417,788 |
Gross profit | 552,235 | 694,139 | 439,115 |
Operating expenses: | |||
Research, development, and engineering | 218,277 | 201,886 | 84,193 |
Selling, general, and administrative | 595,463 | 567,879 | 229,390 |
impairment of goodwill and long-lived assets sg&a | 489,094 | 0 | 0 |
(Gain) loss, net from litigation settlements | (721) | 975 | (420) |
Restructuring and other related charges | 54,177 | 32,694 | 2,451 |
Total operating expenses | 1,356,290 | 803,434 | 315,614 |
Operating income (loss) | (804,055) | (109,295) | 123,501 |
Interest expense | (92,640) | (83,000) | (29,297) |
Other non-operating income and (expense), net | 112 | 6,603 | 6,023 |
Income (loss) before income taxes | (896,583) | (185,692) | 100,227 |
Income tax expense (benefit) | (69,401) | (50,131) | 101,096 |
Net loss | $ (827,182) | $ (135,561) | $ (869) |
Loss per common share: | |||
Basic (in dollars per share) | $ (20.86) | $ (3.61) | $ (0.03) |
Diluted (in dollars per share) | $ (20.86) | $ (3.61) | $ (0.03) |
Shares used in computing loss per common share: | |||
Basic (in shares) | 39,658 | 37,569 | 32,345 |
Diluted (in shares) | 39,658 | 37,569 | 32,345 |
Cash dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.60 | $ 0.60 |
Product | |||
Net revenues | $ 1,432,736 | $ 1,510,770 | $ 856,903 |
Cost of revenues | 1,049,826 | 902,625 | |
Service | |||
Net revenues | 264,254 | 163,765 | 0 |
Cost of revenues | $ 94,929 | $ 77,771 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (827,182) | $ (135,561) | $ (869) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (220) | 150 | 257 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized cash flow hedge gains (losses) arising during the year | (13,172) | (4,176) | (6,741) |
Net (gains) losses reclassified into net revenues for revenue hedges (effective portion) | (4,270) | (4,034) | 4,715 |
Net (gains) losses reclassified into cost of revenues for cost of revenues hedges (effective portion) | (238) | (177) | (208) |
Net (gains) losses reclassified into income for interest rate swap hedges | 5,004 | 2,600 | 0 |
Net unrealized gains (losses) on cash flow hedges | (12,676) | (5,787) | (2,234) |
Unrealized holding gains (losses) during the year | 0 | 198 | 48 |
Aggregate income tax benefit (expense) of the above items | (211) | 2,095 | 105 |
Other comprehensive loss | (13,107) | (3,344) | (1,824) |
Comprehensive loss | $ (840,289) | $ (138,905) | $ (2,693) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (827,182) | $ (135,561) | $ (869) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 230,262 | 201,369 | 21,178 |
Amortization of debt issuance costs | 5,402 | 4,593 | 1,450 |
Stock-based compensation | 57,095 | 41,934 | 33,959 |
impairment of goodwill and long-lived assets | 663,329 | ||
Deferred income taxes | (97,031) | (49,932) | 7,464 |
Provision for excess and obsolete inventories | 24,115 | 7,386 | 3,456 |
Restructuring and other related charges (credits) | 54,177 | 32,694 | 2,451 |
Cash payments for restructuring charges | (37,269) | (29,463) | (2,942) |
Other operating activities | 6,580 | 9,640 | (305) |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | 33,499 | (10,307) | (12,238) |
Inventory | (6,709) | (7,182) | (13,309) |
Current and other assets | 31,720 | 30,747 | (2,480) |
Accounts payable | (31,768) | 3,658 | 2,884 |
Accrued liabilities | (49,275) | 61,593 | (4,164) |
Income taxes | 21,074 | (45,122) | 84,613 |
Cash provided by operating activities | 78,019 | 116,047 | 121,148 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of investments | 2,173 | 131,300 | 197,575 |
Proceeds from maturities of investments | 0 | 131,017 | 211,663 |
Purchase of investments | (1,067) | (822) | (373,281) |
Acquisition, net of cash acquired | 0 | (1,642,241) | 0 |
Capital expenditures | (22,880) | (26,797) | (12,468) |
Proceeds from sale of property, plant and equipment and assets held for sale | 4,692 | 0 | 0 |
Cash provided from (used for) investing activities | (17,082) | (1,407,543) | 23,489 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repurchase of common stock | 0 | (13,177) | (52,948) |
Employees' tax withheld and paid for restricted stock and restricted stock units | (9,891) | (14,070) | (11,429) |
Proceeds from issuances under stock-based compensation plans | 12,486 | 15,730 | 23,927 |
Payment of cash dividends | (23,970) | (22,880) | (19,996) |
Proceeds from revolving line of credit | 0 | 0 | 8,000 |
Repayments of revolving line of credit | 0 | 0 | (8,000) |
Repayments of long-term debt | (25,000) | (103,188) | 0 |
Proceeds from debt issuance, net of issuance costs | 0 | 1,244,713 | 0 |
Cash provided from (used for) financing activities | (46,375) | 1,107,128 | (60,446) |
Effect of exchange rate changes on cash and cash equivalents | (3,192) | (3,784) | 4,500 |
Net increase (decrease) in cash and cash equivalents | 11,370 | (188,152) | 88,691 |
Cash and cash equivalents at beginning of year | 202,509 | 390,661 | 301,970 |
Cash and cash equivalents at end of year | 213,879 | 202,509 | 390,661 |
SUPPLEMENTAL DISCLOSURES | |||
Cash paid for income taxes | 3,550 | 44,917 | 9,757 |
Cash paid for interest | $ 82,059 | $ 75,684 | $ 27,899 |
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, 2017 | 33,416,000 | |||||
Stockholders' equity, beginning 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 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 | |||||
Cash dividends | (19,996) | (19,996) | ||||
Stock-based compensation | 33,959 | 33,959 | ||||
Repurchase of common stock, shares | (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) | (11,429) | ||||
Shares issued under the ESPP | 156,355 | |||||
Other equity changes related to compensation | $ (6) | (6) | ||||
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 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 | |||||
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) | (14,070) | ||||
Shares issued under the ESPP | 138,133 | |||||
Other equity changes related to compensation | $ 112 | 112 | ||||
Common stock, shares, end of period at Mar. 30, 2019 | 39,518,000 | |||||
Stockholders' equity, end of period at Mar. 30, 2019 | 721,687 | $ 884 | 1,431,608 | (475) | 143,344 | (853,674) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (827,182) | (827,182) | ||||
Foreign currency translation adjustments | (220) | (220) | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | (12,887) | (12,887) | ||||
Proceeds from issuances under stock-based compensation plans, shares | 426,000 | |||||
Proceeds from issuances under stock-based compensation plans | 757 | $ 6 | 751 | |||
Repurchase of restricted common stock, shares | (40,000) | |||||
Repurchase of restricted common stock | 0 | |||||
Cash dividends | (23,970) | (23,970) | ||||
Stock-based compensation | $ 57,094 | 57,094 | ||||
Repurchase of common stock, shares | 0 | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | 234,000 | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | $ (9,892) | (9,892) | ||||
Shares issued under the ESPP | 736,184 | 736,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 11,893 | $ 6 | 11,887 | |||
Other equity changes related to compensation | (7) | (7) | ||||
Common stock, shares, end of period at Mar. 28, 2020 | 40,406,000 | |||||
Stockholders' equity, end of period at Mar. 28, 2020 | $ (82,816) | $ 896 | $ 1,501,340 | $ (13,582) | $ (707,904) | $ (863,566) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 28, 2020 | |
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 its 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. Risks and Uncertainties The Company has a history of generating positive cash flows. Subsequent to the Acquisition of Polycom in July 2018 the level of operating cash flows has been negatively impacted by integration, restructuring activities, and increased interest payments on long-term debt. In connection with the Acquisition, the Company entered into a $1.245 billion term loan facility due in May 2025, and a $100 million revolving credit facility due in May 2023 which includes certain financial covenants. In addition, the Company has $500.0 million of 5.50% Senior Notes which are due upon maturity in May 2023. Refer to Note 10 , Debt , of the accompanying Notes to Consolidated Financial Statements Due to the COVID-19 pandemic, the Company is subject to a greater degree of uncertainty than normal in making the judgments and estimates needed to apply its significant accounting policies. The Company has assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, in context to the unknown future impacts of COVID-19 using information that is reasonably available as of the issuance date of the consolidated financial statements. The accounting estimates and other matters the Company has assessed include, but were not limited to, impairment of goodwill and other long-lived assets, allowance for doubtful accounts, valuation allowances for deferred tax assets, inventory and related reserves, and revenue recognition and related reserves. As the impact of COVID-19 continues to develop, the Company may make changes to these estimates and judgments, which could result in material impacts to the financial statements in future periods. The extent and duration of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic is in its incipient stages and information is rapidly evolving. The Company relies on contract manufacturers and sourcing of materials from the Asia Pacific region as well as its own manufacturing facility in Mexico. The Company has experienced disruptions in both its own supply chain as well as those of its contract manufacturers as a result of COVID-19 and as this virus has impacted various regions differently, the Company may in the future experience further business operation disruptions. Such disruptions have had, and may continue to have, a material impact on the Company's ability to fulfill customer orders and adversely affect the ability to meet customer demands as more companies move to remote working. Additionally, if a significant number of the Company's workforce employed in any of these manufacturing facilities or in the Company's offices were to contract the virus, the Company may experience delays or the inability to develop, produce and deliver the Company's products on a timely basis. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on its customers and suppliers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, including potential write-offs due to financial weakness and/or bankruptcy of its customers, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers and suppliers. As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. The Company has considered multiple scenarios in its operating forecast to assess the range of potential impacts on its financial position and liquidity. These scenarios include a base case scenario and stress test scenarios that consider the potential negative impacts of the varying risks associated with COVID-19 and the current economic environment as well as the mitigating actions that are within the control of the Company. In evaluating potential scenarios, the Company performed a comprehensive analysis of recent industry forecasts, revenue impacts of past major crises, and types and associated probabilities of potential economic impacts and recoveries. 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 2020 , 2019 , and 2018 each had 52 weeks and ended on March 28, 2020 , March 30, 2019 , and March 31, 2018 , respectively. 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 2020 . As of March 28, 2020 , 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, recognizes 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. Production 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. As of March 28, 2020 , and March 30, 2019 , the off-balance sheet consigned inventory balances were $21.7 million and $47.1 million , respectively. 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 28, 2020 , the Company’s aggregate purchase commitments to its suppliers for parts used in the manufacture of the Company’s products, including the off-balance sheet consigned inventory discussed above, was $220.4 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. 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. During the fourth quarter of Fiscal Year 2020, the Company made key changes to its executive management, which ultimately resulted in a change to the composition of its reportable segments and consequently a change from one to four reporting units – Headsets, Voice, Video, and Services. 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, a quantitative impairment test must be performed by estimating the fair value of the reporting unit and comparing it with its carrying value, including goodwill. If the carrying amount of a reporting unit is greater than its estimated fair value, goodwill is written down by the excess amount, limited to the total amount of goodwill allocated to that reporting unit. In the fourth quarter of Fiscal Year 2020, the Company performed a quantitative assessment and determined that the carrying amount of its reporting units were greater than its estimated fair value and therefore recorded an impairment charge. Refer to Note 8 , Goodwill and Purchased Intangible Assets , of the accompanying Notes to Consolidated Financial Statements. 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. Such conditions may include an economic downturn or a change in the assessment of future operations. The Company performs a recoverability test to assess the recoverability of intangible assets at an asset group level. 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. Leases The Company’s lease portfolio consists primarily of real estate facilities under operating leases. The Company determines if an arrangement is or contains a lease at inception. ROU assets and lease liabilities are recognized at commencement based on the present value of the future minimum lease payments over the lease term. The Company applies its incremental borrowing rate, which approximates the rate at which the Company would borrow, on a secured basis, in the country where the lease was executed, to determine the present value of the future minimum lease payments when the respective lease does not provide an implicit rate. Certain of the Company’s lease agreements include options to extend or renew the lease terms. Such options are excluded from the minimum lease obligation unless they are reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company elected to exclude leases with terms of one year or less from its balance sheet and continue to separately account for lease and non-lease components. 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 the 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, of the accompanying Notes to Consolidated financial Statements. 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, of the accompanying Notes to 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 90% 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 recognizes 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. 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 28, 2020 , March 30, 2019 , and March 31, 2018 was $0.8 million , $1.2 million , and $0.9 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. The Company accounts for Global Intangible Low-Taxed Income (“GILTI”) as period costs when incurred. 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 entities. Assets and liabilities denominated in currencies other than the USD 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 estimates expected forfeitures at the time of grant and they are determined based on historical activity, which the Company believes is indicative of expected future forfeitures. The Company accounts for 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. 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 Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-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 28, 2020 , and March 30, 2019 , the Company's investments were composed solely of mutual funds. Concentrations of credit risk with respect to trade receivables are limited due to the large numb |
THE COMPANY
THE COMPANY | 12 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | THE COMPANY Plantronics, Inc. (“Poly,” the “Company”) is a leading global communications company that designs, manufactures, and markets integrated communications and collaboration solutions that span headsets, open Session Initiation Protocol ("SIP") and native ecosystem desktop phones, conference room phones, video conferencing solutions and peripherals, including cameras , speakers, and microphones, cloud management and analytics software solutions, and services. The Company has two operating segments, Products and Services, and offers its products under the , Plantronics and Polycom brands. 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. The Company is listed on the New York Stock Exchange ("NYSE") under the ticker symbol PLT. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Mar. 28, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Pronouncement In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") 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 adoption of ASU 2016-13 is not expected to have a material impact on the Company's financial position and the results of operations. Recently Adopted Pronouncements In February 2016, the FASB issued guidance on the recognition and measurement of leases (“ASC 842”). Under the new guidance lessees are required to recognize a lease liability and a corresponding right-of-use (“ROU”) asset on the balance sheet for virtually all leases, essentially eliminating off-balance sheet financing. On March 31, 2019, the Company adopted ASC 842 using the modified retrospective approach and recognized $57.3 million in ROU assets within Other assets and $68.5 million in lease liabilities, of which $25.7 million and $42.8 million were included within Accrued liabilities and Other long-term liabilities, respectively, on its consolidated balance sheet. The initial ROU assets recognized were adjusted for accrued rent and facility-related restructuring liabilities as of the adoption date. The adoption of ASC 842 did not have a material impact on the Company's consolidated statement of operations. As permitted by the new standard, the Company elected the package of practical expedients which allows it to carry forward its historical lease evaluation and classification. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU No. 2017-04”). ASU No. 2017-04 eliminates Step 2 as part of the goodwill impairment test. The amount of the impairment charge to be recognized would now be the amount by which the carrying value exceeds the reporting unit’s fair value. The loss to be recognized cannot exceed the amount of goodwill allocated to that reporting unit. The amendments in ASU No. 2017-04 are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period when the entity initially adopts the amendments in this update. The Company elected to early adopt ASU No. 2017-04 beginning in the fourth quarter of Fiscal Year 2020 and determined and disclosed the goodwill impairment charge |
ACQUISITION
ACQUISITION | 12 Months Ended |
Mar. 28, 2020 | |
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 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. During the quarter ended June 29, 2019, the Company finalized its allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed. Since the Acquisition, the Company has 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 $45.2 million , a working capital adjustment of $8.0 million , and various other immaterial adjustments of $ 1.4 million , resulting in a decrease to goodwill of approximately $54.6 million . The 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 165,798 Inventories 109,074 Prepaid expenses and other current assets 68,558 Property and equipment, net 79,497 Intangible assets 985,400 Other assets 27,237 Total assets acquired $ 1,515,703 LIABILITIES Accounts payable $ 80,653 Accrued payroll and related liabilities 44,538 Accrued expenses 147,167 Income tax payable 27,044 Deferred revenue 115,061 Deferred income taxes 94,618 Other liabilities 54,394 Total liabilities assumed $ 563,475 Total identifiable net assets acquired 952,228 Goodwill 1,264,417 Total Purchase Price $ 2,216,645 The estimate of fair value and purchase price allocation were based on information available at the time of closing the Acquisition. The Acquisition resulted in $1,264 million of goodwill, which represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. 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. As of March 28, 2020 , the Company has reclassified $58.0 million of completed in-process research and development into existing technology and began amortizing over the estimated useful life. 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. As of the Acquisition date, goodwill was primarily attributable to the assembled workforce, market expansion, and anticipated synergies and economies of scale expected from the integration of the Polycom business. The synergies include certain cost savings, operating efficiencies, and other strategic benefits projected to be achieved. Goodwill is not expected to be deductible for tax purposes. The following 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 30, 2019 and March 31, 2018, 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) (in thousands) Fiscal Year Ended Fiscal Year Ended Total net revenues $ 2,008,245 $ 1,892,971 Operating income (loss) 18,929 (208,234 ) Net loss $ (38,516 ) $ (379,032 ) |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Mar. 28, 2020 | |
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 28, 2020 and March 30, 2019 (in thousands): March 28, 2020 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 213,879 $ — $ — $ 213,879 $ 213,879 $ — Level 1: Mutual Funds 12,938 31 (1,128 ) 11,841 — 11,841 Total cash, cash equivalents $ 226,817 $ 31 $ (1,128 ) $ 225,720 $ 213,879 $ 11,841 March 30, 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 Total cash, cash equivalents $ 215,929 $ 197 $ (285 ) $ 215,841 $ 202,509 $ 13,332 As of March 28, 2020 , and March 30, 2019 , all of the Company's investments consisted of assets related to its deferred compensation plan and are classified as trading securities. The assets are reported at fair value, with unrealized gains and losses included in current period earnings. 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 Years 2020 and 2019 . There were no transfers between fair value measurement levels during Fiscal Years 2020 and 2019 . |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Mar. 28, 2020 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | DEFERRED COMPENSATION As of March 28, 2020 , the Company held investments in mutual funds with a fair value totaling $11.8 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 $11.7 million at March 28, 2020 . As of March 30, 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 at March 30, 2019 was $13.5 million . The securities are classified as trading securities and are recorded on the consolidated balance sheets under "short-term investments". The liability is recorded on the consolidated balance sheets under "accrued liabilities" and "other long-term liabilities". |
DETAILS OF CERTAIN BALANCE SHEE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 12 Months Ended |
Mar. 28, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Details of Certain Balance Sheet Accounts | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net: (in thousands) March 28, 2020 March 30, 2019 Accounts receivable $ 350,642 $ 393,416 Provisions for promotions and rebates (101,666 ) 1 (50,789 ) Provisions for doubtful accounts and sales allowances (2,141 ) (4,956 ) Accounts receivable, net $ 246,835 $ 337,671 (1) In the third quarter of fiscal year 2020, certain provisions for promotions, rebates and other were reclassified to contra-assets within Accounts Receivable, net due to changes to distribution contracts, which resulted in the incorporation of the "right-of offset" into the Company's standard contract template. Inventory, net: (in thousands) March 28, 2020 March 30, 2019 Raw materials $ 97,371 $ 34,054 Work in process 459 274 Finished goods 66,697 142,818 Inventory, net $ 164,527 $ 177,146 Property, plant, and equipment, net: (in thousands) March 28, 2020 March 30, 2019 Land $ 15,112 $ 16,418 Buildings and improvements (useful life: 7-30 years) 132,153 138,000 Machinery and equipment (useful life: 2-10 years) 170,756 158,326 Software (useful life: 5-6 years) 60,552 68,985 Construction in progress 6,934 13,100 Property, plant, and equipment, gross 385,507 394,829 Accumulated depreciation and amortization (219,649 ) (190,003 ) Property, plant, and equipment, net $ 165,858 $ 204,826 Depreciation and amortization expense for Fiscal Years 2020 , 2019 , and 2018 was $46.1 million , $40.6 million , and $21.1 million , respectively. Included in software are unamortized capitalized software costs relating to both purchased and internally developed software of $19.1 million and $30.6 million at March 28, 2020 and March 30, 2019 , respectively. Amortization expense related to capitalized software costs in Fiscal Years 2020 , 2019 , and 2018 was $10.1 million , $11.0 million , and $4.9 million , respectively. Included in construction in progress at March 28, 2020 was machinery and equipment, tooling for new products, building improvements, and IT-related expenditures. None of the items were individually material. Accrued Liabilities: (in thousands) March 28, 2020 March 30, 2019 Short term deferred revenue $ 144,040 $ 133,200 Employee compensation and benefits 48,153 68,882 Operating lease liabilities, current 22,517 — Income tax payable 20,725 5,692 Provision for returns 20,146 24,632 Accrued interest 14,617 10,425 Derivative liabilities 12,840 3,275 Warranty obligation 12,772 15,736 Marketing incentives liabilities 9,708 25,369 VAT/Sales tax payable 9,673 11,804 Discounts reserve — 1 46,894 Accrued other 58,475 52,806 Accrued liabilities $ 373,666 $ 398,715 (1) In the third quarter of fiscal year 2020, certain provisions for promotions, rebates and other were reclassified to contra-assets within Accounts Receivable, net due to changes to distribution contracts, which resulted in the incorporation of the "right-of offset" into the Company's standard contract template. Changes in the warranty obligation, which are included as a component of accrued liabilities in the consolidated balance sheets, are as follows: (in thousands) March 28, 2020 March 30, 2019 Warranty obligation at beginning of year $ 17,984 $ 9,604 Polycom warranty obligation (1) — 9,095 Warranty provision related to products shipped 18,736 19,884 Deductions for warranty claims processed (21,333 ) (20,638 ) Adjustments related to preexisting warranties (126 ) 39 Warranty obligation at end of year (2) $ 15,261 $ 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; the prior table shows only the short-term portion included in accrued liabilities on the Company's consolidated balance sheet. The long-term portion is included in other long-term liabilities. Operating Leases: Balance Sheet (in thousands) Classification March 28, 2020 March 30, 2019 ASSETS Operating right-of-use assets (1) Other assets $ 44,226 $ — LIABILITIES Operating lease liabilities, current (2) Accrued liabilities $ 22,517 $ — Operating lease liabilities, long-term Other liabilities $ 35,144 $ — (1) During Fiscal Year 2020 , the Company made $24.2 million in payments for operating leases included within cash provided by operating activities in its consolidated statements of cash flows. (2) During Fiscal Year 2020 , the Company recognized $17.7 million in operating lease expense, net of $5.6 million in sublease income within its consolidated statement of operations. |
GOODWILL AND PURCHASED INTANGIB
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 12 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED INTANGIBLE ASSETS | GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill During the fourth quarter of Fiscal Year 2020, the Company experienced a sustained decrease in its stock price and determined that it was more likely than not that the carrying value of the Company's reporting units exceeded their fair value. During the fourth quarter of Fiscal Year 2020, the Company made key changes to its executive management, which ultimately resulted in a change to the composition of its reportable segments and consequently a change from one to four reporting units – Headsets, Voice, Video, and Services (see Note 20). As a result of the quantitative impairment test performed on a one reporting unit basis, the Company recorded a goodwill impairment loss of $323.1 million due to changes in the estimate of its long-term future financial performance to reflect lower expectations for growth in revenue and earnings than previously estimated. Additionally, after the reallocation of goodwill to its four reporting units, the Company recorded an additional goodwill impairment loss of $47.8 million and $112.8 million to its Voice and Video reporting units, respectively. The fair value of the Company's reporting units was estimated using a discounted cash flow model (income approach) which used Level 3 inputs. The income approach included assumptions for, among others, forecasted revenue, operating income, and discount rates, all of which require significant judgment by management. These assumptions also consider the current industry environment and outlook, and the resulting impact on the Company's expectations for the performance of its business. The changes in the carrying amount of goodwill allocated to the Company's reporting segments for the year ended March 28, 2020 are as follows: (in thousands) Poly Reportable Segment Products Reportable Segment Services Reportable Segment Total Consolidated Balance as of March 30, 2019 $ 1,278,380 $ — $ — $ 1,278,380 Adjustments (1) 1,517 1,517 Impairment prior to re-segmentation (323,088 ) — — (323,088 ) Allocation due to re-segmentation (956,809 ) 789,561 167,248 — Impairment after re-segmentation — (160,593 ) (160,593 ) Balance as of March 28, 2020 $ — $ 628,968 $ 167,248 $ 796,216 (1) Represents measurement period adjustments recorded to reflect the facts and circumstances in existence as of the Acquisition date (see Note 4). Other Intangible Assets Other intangible assets consist primarily of existing technology, customer relationships, and trade name acquired in business combinations. During Fiscal Year 2020, all of the remaining in-process research and development was completed and reclassified to existing technology. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The fair value of the Company's Voice products asset group was estimated using a discounted cash flow model (income approach) which used Level 3 inputs. The income approach included assumptions for, among others, forecasted revenue, operating income, and discount rates, all of which require significant judgment by management. The Company compared the fair value of the Voice products asset group to its carrying value and determined the existing technology and customer relationships intangible assets and certain machinery and equipment to be completely impaired. As a result, the Company recorded an impairment of long-lived assets totaling $179.6 million in the fourth quarter of Fiscal Year 2020 within its Product segment, of which $174.2 million and $5.4 million was classified as cost of revenues and operating expenses, respectively, on its consolidated statements of operations. Impairment of long-lived assets was comprised of $175.0 million of intangible assets and $4.6 million of machinery and equipment. As of March 28, 2020 and March 30, 2019, the carrying value of other intangible assets, excluding fully amortized assets, is as follows: As of March 28, 2020 March 30, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 427,123 $ (208,848 ) $ 218,275 $ 566,881 $ (86,301 ) $ 480,580 3.3 years Customer relationships 240,024 (84,506 ) 155,518 245,481 (36,245 ) 209,236 4.0 years Trade name/Trademarks 115,600 (22,478 ) 93,122 115,600 (9,633 ) 105,967 7.3 years Non-amortizing assets In-process R&D — — — 29,892 — 29,892 N/A Total intangible assets $ 782,747 $ (315,832 ) $ 466,915 $ 957,854 $ (132,179 ) $ 825,675 4.3 years 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 Company recognized $183.7 million and $160.2 million of amortization expense in Fiscal Year 2020 and Fiscal Year 2019 , respectively. As of March 28, 2020 , expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: in thousands Amount 2021 $ 124,893 2022 113,858 2023 111,232 2024 65,936 2025 21,688 Thereafter 29,308 $ 466,915 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Future Minimum Lease Payments Future minimum lease payments under non-cancelable operating leases as of March 28, 2020 were as follows: (in thousands) Operating Leases (1) 2021 $ 24,845 2022 21,468 2023 9,256 2024 4,020 2025 2,356 Thereafter 1,651 Total lease payments $ 63,596 Less: Imputed interest (2) (5,935 ) Present value of lease liabilities $ 57,661 (1) The weighted average remaining lease term was 3.0 years as of March 28, 2020. (2) The weighted average discount rate was 4.7% as of March 28, 2020. Future minimum lease payments under non-cancelable operating leases as of March 30, 2019 were as follows (1) : (in thousands) 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 (1) Amounts are based on ASC 840, Leases, and were superseded upon the adoption of ASC 842, Leases, on March 31, 2019 (See Note 3). Unconditional Purchase Obligations The Company purchases materials and services from a variety of suppliers and manufacturers. During the normal course of business and to manage manufacturing operations and general and administrative activities, the Company may enter into firm, non-cancelable, and unconditional purchase obligations for which amounts are not recorded on the consolidated balance sheets. As of March 28, 2020 , the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $344.5 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. GN sought injunctive relief, total damages in an unspecified amount. 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. Plantronics paid that award shortly thereafter. 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. GN filed a notice of intent to appeal both the denial of the new trial motion and the Court’s July 2016 spoliation order. In July 2019, the appellate court denied GN’s request for default judgment but granted a new trial to include certain excluded testimony of one witness. The retrial is scheduled for September 2020. The claims are the same as those tried in the original trial of this matter in October 2017. In September 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. In January 2020, the Court approved settlement of the matter. In January 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. In April 2019, the Federal Circuit rendered its opinion affirming the Patent Trial and Appeal Board (“PTAB”) opinion denying inter partes reexamination filed by Polycom. In July, 2019, the PTAB denied institution of the IPR of the second patent. FullView filed its First Amended Complaint in November 2019. The Company Answered and filed a Motion to Dismiss and Strike Plaintiff’s Fraudulent Concealment and Tolling. In March 2020, FullView filed its Motion for Leave to File a Second Amended Complaint and the Company an opposition. In June 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. In July 2019, the Court granted Polycom’s Motion to Transfer Venue to Northern District of California. Petitions for Inter Partes Review of the asserted patents were filed by Polycom in June 2019. The U.S. Patent Trial and Appeal Board granted institution of proceedings on all three patents in January 2020. That same month, the District Court stayed the case pending resolution of the IPRs. In November 2019, Felice Bassuk, individually and on behalf of others similarly situated, filed a complaint against Plantronics, its CEO Joseph Burton, its CFO Charles Boynton and its former CFO Pamela Strayer alleging various securities law violations. The Court appointed lead plaintiff and lead counsel and renamed the action “ In re Plantronics, Inc. Securities Litigation ” in February 2020. Plaintiffs filed the amended complaint on June 5, 2020. In December 2019, Cisco Systems, Inc. filed a First Amended Complaint for Trade Secret Misappropriation against Plantronics, Inc. and certain individuals which amends a previously filed complaint against certain other individuals. The Company filed a Motion to Dismiss which was granted with leave to amend for defendants He and Chung, granted as to defendant Williams and granted in part and denied in part as to defendants Puorro and Plantronics. In January 2020, Castlemorton Wireless, LLC filed a Complaint alleging patent infringement by Plantronics and Polycom in the United States District Court for the Western District of Texas, Waco Division. The Company filed its Answer and a Motion to Dismiss in March 2020 which Castlemorton opposed. The hearing is pending. 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. 28, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The estimated fair value and carrying value of the Company's outstanding debt as of March 28, 2020 and March 30, 2019 were as follows: March 28, 2020 March 30, 2019 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 359,140 $ 495,409 $ 503,410 $ 493,959 Term loan facility $ 852,942 $ 1,126,285 $ 1,152,044 $ 1,146,842 As of March 28, 2020 , and March 30, 2019 , the net unamortized discount, premium and debt issuance costs on the Company's outstanding debt were $25.1 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 its 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 the Company's revolving line of credit agreement with Wells Fargo Bank and the remaining proceeds were used primarily for share repurchases. The fair value of the 5.50% Senior Notes was determined based on inputs that were observable in the market, including the trading price of the 5.50% Senior Notes when available (Level 2). The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than a 30 -day 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 lease-back transactions; create, assume, incur, or guarantee additional indebtedness of its subsidiaries without such subsidiary guaranteeing the 5.50% Senior Notes on an unsecured unsubordinated basis; and consolidate or merge with, or convey, transfer or lease all or substantially all of the assets of the Company and its subsidiaries to, another person. Credit Facility Agreement In connection with the Polycom Acquisition completed on July 2, 2018, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (the “Credit Agreement”). The Credit Agreement replaced the Company’s prior revolving credit facility in its entirety. The Credit Agreement provides for (i) a revolving credit facility with an initial maximum aggregate amount of availability of $100 million that matures in July 2023 and (ii) a $1.275 billion term loan facility priced at LIBOR plus 2.50% 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 under the Credit Agreement for the aggregate principal amount funded on the closing date under the Credit Agreement 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 Credit 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 and 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 on, 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 under such letter of credit. On February 20, 2020, the Company entered into an Amendment No. 2 to Credit Agreement (the “Amendment”) by and among the Company, the financial institutions party thereto as lenders and Wells Fargo Bank, National Association, as administrative agent (in such capacity, the “Agent”). The Amendment amended the Credit Agreement, as previously amended to (i) increase the maximum Secured Net Leverage Ratio (as defined in the Credit Agreement) permitted under the Credit Agreement to 3.75 to 1.00 through December 26, 2020 and 3.00 to 1.00 thereafter and (ii) decrease the minimum Interest Coverage Ratio (as defined in the Credit Agreement) required under the Credit Agreement to 2.25 to 1.00 through December 26, 2020 and 2.75 to 1.00 thereafter. Additionally, the Amendment modified the calculation of the Secured Net Leverage Ratio and the Interest Coverage Ratio solely for purposes of compliance with Sections 7.11(a) and 7.11(b) of the Credit Agreement to (i) calculate the Secured Net Leverage Ratio net of the aggregate amount of unrestricted cash and Cash Equivalents (as defined in the Credit Agreement) on the balance sheet of the Company and its Restricted Subsidiaries (as defined in the Credit Agreement) as of the date of calculation up to an amount equal to $150,000,000 and (ii) solely for purposes of any fiscal quarter ending from December 29, 2019 through December 26, 2020, increase the cap on Expected Cost Savings (as defined in the Credit Agreement) in determining Consolidated EBITDA (as defined in the Credit Agreement) to the greater of (A) 20% of Consolidated EBITDA for such Measurement Period (as defined in the Credit Agreement) (calculated before giving effect to any such Expected Cost Savings to be added back pursuant to clause (a)(ix) of the definition of Consolidated EBITDA) and (B)(x) for the period from December 29, 2019 through March 28, 2020, $121,000,000 , (y) for the period from March 29, 2020 through June 27, 2020, $107,000,000 and (z) for the period from June 28, 2020 through December 26, 2020, $88,000,000 . The financial covenants under the Credit Agreement described above are for the benefit of the revolving credit lenders only and do not apply to any other debt of the Company. The Credit Agreement aslo contains various other restrictions and covenants, some of which have become more stringent over time, including restrictions on our, and certain of our subsidiaries, ability to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions, make investments and pay dividends and other distributions. The Company has the unilateral ability to terminate the revolving line of credit such that the financial covenants described above are no longer applicable. 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. As of March 28, 2020 , the Company was in compliance with the financial covenants. The Company may prepay the loans and terminate the commitments under the Credit Agreement at any time without penalty. Additionally, the Company is subject to mandatory debt repayments five business days after the filing of its financial statements for any annual period in which the Company generates excess cash as defined by the Credit Agreement. In accordance with the terms of the Credit Agreement, the Company did not generate excess cash during Fiscal Year 2020 and therefore is not required to make any debt repayments in Fiscal Year 2021. During Fiscal Year 2020, the Company prepaid $25 million aggregate principal amount of the term loan facility and did not incur any prepayment penalties. The Company recorded an immaterial loss of extinguishment on the prepayment, which is included in Interest Expense of the Company's Consolidated Statements of Operations. As of March 28, 2020 , the Company had five letters of credit outstanding under the revolving credit facility for a total of $1.0 |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | 12 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) | RESTRUCTURING AND OTHER RELATED CHARGES Summary of Restructuring Plans Fiscal Year 2020 restructuring plans During the Fiscal Year 2020, the Company committed to additional actions to rationalize post-Acquisition operations and costs to align the Company's cost structure to current revenue expectations. The costs incurred to date under these plans include severance benefits related to headcount reductions in the Company's global workforce, facility related charges due to consolidation of the Company's leased offices, asset impairments associated with consumer product portfolio optimization efforts, and other costs associated with legal entity rationalization. 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. 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. The following table summarizes the restructuring and other related charges recognized in the Company's consolidated statements of operations: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Severance $ 29,777 $ 25,033 $ 1,972 Facility 3,247 2,241 37 Other (1) 10,207 5,420 16 Non-cash asset impairment and (gain)/loss on sale of assets 10,946 — 426 Total restructuring and other related charges $54,177 $32,694 $2,451 (1) Other costs primarily represent associated legal and advisory services. The following table summarizes the Company's restructuring liabilities during the year ended March 28, 2020 : As of March 30, 2019 Adoption of ASC 842 (1) Charges Payments As of March 28, 2020 FY 2020 Plans Severance $ — $ — $ 29,621 $ (22,146 ) $ 7,475 Facility — — 3,247 (746 ) 2,501 Other — — 10,100 (8,479 ) 1,621 Total FY 2020 Plans — — 42,968 (31,371 ) 11,597 FY2019 Plans Severance 5,889 — 156 (5,898 ) 147 Facility 7,376 (7,376 ) — — — Other 10 — 107 — 117 Total FY 2019 Plans 13,275 (7,376 ) 263 (5,898 ) 264 Severance 5,889 — 29,777 (28,044 ) 7,622 Facility 7,376 (7,376 ) 3,247 (746 ) 2,501 Other 10 — 10,207 (8,479 ) 1,738 Grand Total $ 13,275 $ (7,376 ) $ 43,231 $ (37,269 ) $ 11,861 (1) Includes adjustments to facilities-related liabilities upon adoption of ASC 842, Leases. |
STOCK PLANS AND STOCK-BASED COM
STOCK PLANS AND STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [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 28, 2020 , there have been 18,400,000 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 the Company's 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 generally vest over a three -year period to non-employee directors over a one -year period. Performance-based restricted stock units ("PSUs") are granted to vice presidents and 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 the Company's 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 its 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. Awards granted prior to May 6, 2019 may equal from zero percent (0%) to one hundred fifty percent (150%) of the target award, and awards granted subsequent to May 6, 2019 may equal from zero percent (0%) to two hundred percent (200%) 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 28, 2020 , options to purchase 351,695 shares of common stock and 2,332,440 shares of unvested restricted stock and restricted stock units were outstanding. There were 2,751,827 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 736,184 , 138,133 , and 156,355 , shares issued under the ESPP in Fiscal Years 2020 , 2019 , and 2018 , respectively. At March 28, 2020 , there were 6 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 2020 was $11.9 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 (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Cost of revenues $ 3,992 $ 4,176 $ 3,622 Research, development and engineering 16,785 11,699 8,071 Selling, general and administrative 36,318 26,059 22,266 Stock-based compensation expense included in operating expenses 53,103 37,758 30,337 Total stock-based compensation 57,095 41,934 33,959 Income tax benefit (7,369 ) (9,891 ) (7,880 ) Total stock-based compensation expense, net of tax $ 49,726 $ 32,043 $ 26,079 Stock Plan Activity Stock Options The following is a summary of the Company’s stock option activity during Fiscal Year 2020 : 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 30, 2019 627 $ 48.66 Options granted — $ — Options exercised (19 ) $ 39.91 Options forfeited or expired (256 ) $ 51.04 Outstanding at March 28, 2020 352 $ 47.39 2.3 $ — Vested or expected to vest at March 28, 2020 352 $ 47.39 2.3 $ — Exercisable at March 28, 2020 351 $ 47.38 2.3 $ — The total intrinsic value of options exercised during Fiscal Years 2020 was immaterial. The total intrinsic values of options exercised during Fiscal Years 2019 , and 2018 were $5.8 million , and $9.4 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 2020 was $0.8 million , net of taxes. There was an immaterial amount of total net tax benefit attributable to stock options exercised during the year ended March 28, 2020 . As of March 28, 2020 , the total unrecognized compensation cost related to unvested stock options was immaterial and is expected to be recognized over a weighted average period of 0.1 years. Restricted Stock Restricted stock consists of restricted stock awards ("RSAs"), restricted stock units ("RSUs"), and performance-based RSUs ("PSUs"). The following table summarizes the changes in unvested restricted stock and RSUs, for Fiscal Year 2020 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 30, 2019 1,473 $ 61.64 Granted 1,376 $ 33.77 Vested (648 ) $ 58.95 Forfeited (290 ) $ 53.54 Non-vested at March 28, 2020 1,911 $ 43.71 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 2020 , 2019 , and 2018 were $33.77 , $68.00 , and $52.79 , respectively. The total grant-date fair values of restricted stock that vested during Fiscal Years 2020 , 2019 , and 2018 were $38.2 million , $27.8 million , and $27.8 million , respectively. As of March 28, 2020 , the total unrecognized compensation cost related to non-vested restricted stock awards was $47.3 million and is expected to be recognized over a weighted average period of 1.7 years. Performance-based Restricted Stock The following table summarizes the changes in unvested PSUs, for Fiscal Year 2020 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 30, 2019 143 $ 70.53 Granted 384 $ 57.16 Vested (20 ) $ 36.76 Forfeited (86 ) $ 65.09 Non-vested at March 28, 2020 421 $ 61.09 The fair value of a PSU 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. The weighted average grant-date fair values of PSUs granted during Fiscal Years 2020 , 2019 , and 2018 were $57.16 , $75.43 , and $63.28 , respectively. The total grant-date fair values of PSUs that vested during Fiscal Years 2020 and 2019 were immaterial. The Company did not have PSUs vested in 2018 . As of March 28, 2020 , the total unrecognized compensation cost related to non-vested PSU awards was $12.2 million and is expected to be recognized over a weighted average period of 1.1 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, 2020 2019 2018 2020 2019 2018 Expected volatility n/a n/a 29.1 % 67.0 % 40.8 % 30.5 % Risk-free interest rate n/a n/a 1.7 % 1.7 % 2.4 % 1.5 % Expected dividends n/a n/a 1.2 % 3.1 % 1.1 % 1.2 % Expected life (in years) n/a n/a 4.6 0.5 0.5 0.5 Weighted-average grant date fair value n/a n/a $ 12.58 $ 6.64 $ 14.44 $ 11.78 The expected stock price volatility for the years ended March 28, 2020 , March 30, 2019 , and March 31, 2018 |
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES | 12 Months Ended |
Mar. 28, 2020 | |
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 Board approved a 1 million shares repurchase program expanding its capacity to repurchase shares to approximately 1.7 million shares. As of March 28, 2020 , 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) March 28, 2020 March 30, 2019 Shares of common stock repurchased in the open market — 361,091 Value of common stock repurchased in the open market $ — $ 13,177 Average price per share $ — $ 36.49 Value of shares withheld in satisfaction of employee tax obligations $ 9,891 $ 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 2020 , 2019 , and 2018 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Mar. 28, 2020 | |
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: (in thousands) March 28, 2020 March 30, 2019 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (18,197 ) $ (5,310 ) Accumulated foreign currency translation adjustments 4,615 4,835 Accumulated other comprehensive income (loss) $ (13,582 ) $ (475 ) (1) Refer to Note 16 , Derivatives , which discloses the nature of the Company's derivative assets and liabilities as of March 28, 2020 and March 30, 2019 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 28, 2020 | |
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 employees on U.S. payroll. Eligible employees may contribute both pre-tax and Roth after-tax amounts to the plan through payroll withholdings, subject to certain annual limitations. Under the plan, the Company matches 100% of the first 3% of employees' compensation contributed to the plan, then 50% of the next 3% of the employees' eligible compensation, contributed to the plan. All matching contributions are currently 100% vested immediately. The Company reserves the right to modify its plan at any time, including increasing, decreasing, or eliminating contribution matching and vesting requirements. Total Company contributions in Fiscal Years 2020 , 2019 , and 2018 were $10.4 million , $7.1 million , and $4.5 million , respectively. |
FOREIGN CURRENCY DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 12 Months Ended |
Mar. 28, 2020 | |
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 28, 2020 . 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 28, 2020 , 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 28, 2020 , and March 30, 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 28, 2020 : 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 $ 3,550 $ (3,550 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 3,550 $ — 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 $ (22,890 ) $ 3,550 $ — $ (19,340 ) Derivatives not subject to master netting agreements — — Total $ (22,890 ) $ (19,340 ) As of March 30, 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 28, 2020 , the Company had foreign currency forward contracts denominated in Euros ("EUR") and British Pound Sterling ("GBP"). 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 28, 2020 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) EUR € 33,200 $ 36,755 Sell EUR 1 month GBP £ 5,300 $ 6,584 Sell GBP 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 28, Fiscal Year Ended March 30, Fiscal Year Ended March 31, (in thousands) 2020 2019 2018 Gain (loss) on foreign exchange contracts $ 2,665 $ 7,340 $ (7,405 ) 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 28, 2020 March 30, 2019 EUR GBP EUR GBP Option contracts €67.0 €18.4 €76.8 £25.8 Forward contracts €50.2 €18.5 €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 28, 2020 , and March 30, 2019 , the Company had foreign currency swap contracts of approximately MXN 0.0 million and MXN 149.7 million , respectively. Interest Rate Swap On July 30, 2018, the Company entered into a 4 -year amortizing interest rate swap agreement with Bank of America, N.A. 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, recognizes 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 28, 2020 . During the fiscal year ended March 28, 2020 , the Company recorded a loss of $5.0 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 28, 2020 , March 30, 2019 , and March 31, 2018 : (in thousands) 2020 2019 2018 Gain (loss) included in AOCI as of beginning of period $ (7,480 ) $ (1,693 ) $ 541 Amount of gain (loss) recognized in OCI (effective portion) (13,172 ) (4,176 ) (6,741 ) Amount of (gain) loss reclassified from OCI into net revenues (effective portion) (4,270 ) (4,034 ) 4,715 Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) (238 ) (177 ) (208 ) Amount of (gain) loss reclassified from OCI into interest expense (effective portion) 5,004 2,600 — Total amount of (gain) loss reclassified from AOCI to consolidated statements of operations (effective portion) 496 (1,611 ) 4,507 Gain (loss) included in AOCI as of end of period $ (20,156 ) $ (7,480 ) $ (1,693 ) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) for Fiscal Years 2020 , 2019 , and 2018 consisted of the following: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Current: Federal $ 15,794 $ (1,199 ) $ 82,523 State 2,310 2,550 4,274 Foreign 9,526 (1,550 ) 6,860 Total current provision for (benefit from) income taxes 27,630 (199 ) 93,657 Deferred: Federal (15,606 ) (37,577 ) 9,002 State 1,939 (4,160 ) (1,585 ) Foreign (83,364 ) (8,195 ) 22 Total deferred income tax expense (benefit) (97,031 ) (49,932 ) 7,439 Income tax expense (benefit) $ (69,401 ) $ (50,131 ) $ 101,096 The components of income (loss) before income taxes for Fiscal Years 2020 , 2019 , and 2018 are as follows: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 United States $ (756,095 ) $ (179,387 ) $ 17,654 Foreign (140,488 ) (6,305 ) 82,573 Income (loss) before income taxes $ (896,583 ) $ (185,692 ) $ 100,227 The following is a reconciliation between statutory federal income taxes and the income tax expense (benefit) for Fiscal Years 2020 , 2019 , and 2018 : Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Tax expense at statutory rate $ (188,282 ) $ (38,995 ) $ 31,631 Foreign operations taxed at different rates 2,497 (4,965 ) (17,970 ) State taxes, net of federal benefit (14,326 ) (1,610 ) 2,689 Research and development credit (6,498 ) (4,288 ) (2,023 ) US tax on foreign earnings 10,889 4,398 — Impact of Tax Act — (3,728 ) 87,790 Goodwill impairment 101,604 — — Stock based compensation 7,369 (1,196 ) (1,771 ) Internal restructuring related benefit (65,069 ) — — Withholding tax 2,657 — — Deferred tax valuation allowance 68,486 — — Altera accrual 9,467 — — Other, net 1,805 253 750 Income tax expense (benefit) $ (69,401 ) $ (50,131 ) $ 101,096 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 28, 2020 and March 30, 2019 and are as follows: (in thousands) March 28, 2020 March 30, 2019 Accruals and other reserves $ 29,788 $ 24,167 Deferred compensation 277 2,980 Net operating loss carry forward 11,810 16,921 Stock compensation 10,867 9,484 Interest expense 10,676 11,550 Tax credits 12,437 7,072 Engineering costs 41,123 31,015 Intangible assets 94,809 — Other deferred tax assets 3,826 635 Valuation allowance (1) (81,436 ) (15,787 ) Total deferred tax assets 134,177 88,037 Deferred gains on sales of properties (1,128 ) (1,155 ) Purchased intangibles (55,586 ) (92,544 ) Unearned revenue 6,521 (5,054 ) Unremitted earnings of certain subsidiaries (7,123 ) (17,879 ) Fixed asset depreciation 818 (7,881 ) Right of use assets (5,316 ) — Total deferred tax liabilities (61,814 ) (124,513 ) Net deferred tax assets (2) $ 72,363 $ (36,476 ) (1) Valuation allowance on federal and state deferred tax assets are net of federal tax impact. (2) The Company's deferred tax assets for the Fiscal Year ended March 28, 2020 and March 30, 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. Based on the Company’s results for Fiscal Year 2019 and 2020 together with the Fiscal Year 2021 forecast, the Company recorded a 100% valuation allowance against its US Federal and State deferred tax assets of $71.6 million . In the period ended March 28, 2020, the Company completed the reorganization of its foreign businesses in conjunction with the Polycom Acquisition in Fiscal Year 2018 and recognized a deferred tax asset relating to the book and tax basis difference of certain intangible assets of $76.5 million 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 28, 2020 , March 30, 2019 , and March 31, 2018 , the Company had $152.3 million , $26.5 million , and $12.6 million , respectively, of unrecognized tax benefits. The increase of uncertain tax positions when compared to the prior year is predominantly due to uncertain tax benefits related to the reorganization of its foreign business and uncertain tax position related to Altera Corp. v. Commissioner IRC Section 482 requiring related-party participants in a cost sharing arrangement to share stock-based compensation costs. The unrecognized tax benefits as of March 28, 2020 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: (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Balance at beginning of period $ 26,458 $ 12,612 $ 12,854 Increase (decrease) of unrecognized tax benefits related to prior fiscal years 11,226 254 (1,310 ) Increase of unrecognized tax benefits related to business combinations 89 13,329 — Increase of unrecognized tax benefits related to current year income statement 115,824 2,069 3,085 Reductions to unrecognized tax benefits related to settlements with taxing authorities (995 ) — (115 ) Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations (295 ) (1,806 ) (1,902 ) Balance at end of period $ 152,307 $ 26,458 $ 12,612 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 $4.0 million and $2.0 million as of March 28, 2020 and March 30, 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 2017. The Company anticipates a reduction in liabilities for uncertain tax positions that may impact the statement of operations in the next 12 months of approximately $7.3 million relating to the Altera Corp. v. Commissioner IRS assessment and research and development tax credit. All federal tax matters have been concluded for tax years prior to Fiscal Year 2016. Foreign and State income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2013. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. As of March 28, 2020, after applying Internal Revenue Code (“IRC”) Section 382 limitations, we had $11.8 million of federal and state operating loss carryforwards, with which to offset our future taxable income. The federal and state net operating loss carryforwards will begin to expire in the year 2021. We experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code of 1986, as amended, during the second quarter of Fiscal Year 2019. This ownership change has and will continue to subject our net operating loss carryforwards to an annual limitation, which will significantly restrict our ability to use them to offset our taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of our stock at the time of the ownership change multiplied by a specified tax-exempt interest rate. As of March 28, 2020, the Company had $12.4 million |
COMPUTATION OF EARNINGS PER COM
COMPUTATION OF EARNINGS PER COMMON SHARE | 12 Months Ended |
Mar. 28, 2020 | |
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 28, 2020 , March 30, 2019 , and March 31, 2018 : Fiscal Year Ended (in thousands, except earnings per share data) March 28, 2020 March 30, 2019 March 31, 2018 Numerator: Net loss $ (827,182 ) $ (135,561 ) $ (869 ) Denominator: Weighted average common shares-basic 39,658 37,569 32,345 Weighted average shares-diluted 39,658 37,569 32,345 Basic loss per common share $ (20.86 ) $ (3.61 ) $ (0.03 ) Diluted loss per common share $ (20.86 ) $ (3.61 ) $ (0.03 ) Potentially dilutive securities excluded from diluted loss per share because their effect is anti-dilutive 1,740 616 543 |
REVENUE AND MAJOR CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 12 Months Ended |
Mar. 28, 2020 | |
REVENUE AND MAJOR CUSTOMERS [Abstract] | |
REVENUE AND MAJOR CUSTOMERS | EVENUE 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 are Headsets, which includes corded and cordless communication headsets; 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 Company's 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. The Company's RealPresence collaboration solutions range from infrastructure to endpoints and allow people to connect and collaborate globally, naturally and seamlessly. In addition, the Company offers comprehensive Support Services including support for its solutions and hardware devices, as well as professional, hosted, and managed services. As announced on February 4, 2020, the Company entered into a definitive agreement with Nacon S.A. and closed the transaction on March 19, 2020, completing the sale of the Company's Consumer Gaming assets for a net amount and resulting pre-tax gain on sale that are not material to the Company's consolidated financial statements. 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 28, 2020 , March 30, 2019 , and March 31, 2018 : Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Net revenues from unaffiliated customers: Headsets 1 $ 773,186 $ 910,699 $ 856,903 Voice 2 377,059 344,586 — Video 2 282,491 255,485 — Services 2 264,254 163,765 — Total net revenues $ 1,696,990 $ 1,674,535 $ 856,903 1 As announced on February 4, 2020, the Company entered into a definitive agreement with Nacon S.A. and closed the transaction on March 19, 2020, completing the sale of the Company's Consumer Gaming assets for a net amount that is not material to the Company's consolidated financial statements. The remaining consumer headsets are included in the Company's Enterprise products and all prior periods have been reclassified to conform to current presentation. 2 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 accompanying Notes of 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 28, 2020 , March 30, 2019 , and March 31, 2018 . The following table presents net revenues by geography: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Products Net revenues from unaffiliated customers: U.S. $ 708,566 $ 729,930 $ 434,053 Europe and Africa 398,721 432,899 250,762 Asia Pacific 221,912 245,499 99,779 Americas, excluding U.S. 103,537 102,442 72,309 Total International net revenues 724,170 780,840 422,850 Product net revenues 1,432,736 1,510,770 856,903 Services Net revenues from unaffiliated customers: U.S. $ 102,103 $ 59,615 $ — Europe and Africa 66,900 43,991 — Asia Pacific 73,424 43,382 — Americas, excluding U.S. 21,827 16,777 — Total International net revenues 162,151 104,150 — Service net revenues $ 264,254 $ 163,765 $ — Total net revenues $ 1,696,990 $ 1,674,535 $ 856,903 Two customers, ScanSource and Ingram Micro Group, accounted for 19.8% and 17.3% , respectively, of net revenues for the Fiscal Year ended March 28, 2020 . Two customers, ScanSource and Ingram Micro Group, accounted for 16.0% and 11.4% , respectively, of net revenues for the Fiscal Year ended March 30, 2019 . One customer, Ingram Micro Group, accounted for 10.9% of net revenues in Fiscal Year ended March 31, 2018 . Net revenues from ScanSource and Ingram Micro Group was comprised of both Product and Service revenue for the Fiscal Years ended March 28, 2020 and March 30, 2019. Three customers, Ingram Micro Group, ScanSource, and Synnex Group accounted for 22.2% , 17.3% , and 15.6% respectively, of total net accounts receivable at March 28, 2020 . 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 . Deferred revenue is primarily comprised of non-cancelable maintenance support performance obligations on hardware devices which are typically billed in advance and recognized ratably over the contract term as the services are delivered. In Fiscal Year 2020 , the Company's deferred revenue balance was $208.5 million , which represents 12.3% of total net revenues. 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 , the Company’s deferred revenue balance was $3.0 million , 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. In Fiscal Year 2020 , the Company recognized $133.2 million in revenues that were reflected in deferred revenue at the beginning of the period. The table below represents aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of March 28, 2020 : As of March 28, 2020 (in millions) Current Noncurrent Total Performance obligations $ 148.7 $ 64.5 $ 213.2 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. The balance of contract assets as of March 28, 2020 was $3.7 million and not considered material in prior years. 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 $2.7 million as of March 28, 2020 . Amortization of capitalized contract costs for the Fiscal Year ended March 28, 2020 was immaterial. |
SEGMENT REPORTING AND GEOGRAPHI
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Mar. 28, 2020 | |
Segments, Geographical Areas [Abstract] | |
Segment Reporting and Geographic Information | EGMENT REPORTING AND GEOGRAPHIC INFORMATION In the fourth quarter of Fiscal Year 2020, the Company hired a new interim Chief Executive Officer who was identified as its Chief Operating Decision Maker ("CODM"). The CODM has organized the Company, manages resource allocations and measures performance among its two operating segments — Products and Services. Prior to this change in executive management, the Company operated as one operating segment. Based on this change, prior comparative periods have been recast to conform to current period segment presentation. The Products segment includes the Company's Headsets, Voice and Video product lines. The Services segment includes maintenance support on hardware devices as well as professional, managed and cloud services and solutions. In managing the two operating segments the CODM uses information about their revenue and gross margin after adjustments to exclude certain non-cash transactions and activities that are not reflective of the Company's ongoing or core operations as further described below. The CODM does not review asset information by segment. Asset impairment: During the fourth quarter of fiscal 2020, the Company determined certain of its long-lived assets, primarily related to purchased intangibles recorded in connection with the Acquisition of Polycom, were not recoverable and as a result recorded impairment charges representing the excess carrying amount over the estimated fair value (see Note 8). Purchase accounting amortization: Represents the amortization of purchased intangible assets recorded in connection with the Acquisition of Polycom. Inventory valuation adjustment: Represents the amortization of the inventory step-up associated with the impact of inventory fair value purchase accounting adjustments recorded in connection with the Acquisition of Polycom. Deferred revenue purchase accounting: Represents the impact of fair value purchase accounting adjustments related to deferred revenue recorded in connection with the Acquisition of Polycom. The Company's deferred revenue primarily relates to Service revenue associated with non-cancelable maintenance support on hardware devices which are typically billed in advance and recognized ratably over the contract term as those services are delivered. This adjustment represents the amount of additional revenue that would have been recognized during the period absent the write-down to fair value required under purchase accounting guidelines. Consumer optimization: Represents charges related to inventory reserves and supplier liabilities for excess and obsolete inventory incurred in connection with the Company's strategic actions to optimize its Consumer product portfolio. Acquisition and integration fees: Represents charges incurred in connection with the Acquisition and integration of Polycom such as system implementations, legal and accounting fees. Stock compensation expense: Represents the non-cash expense associated with the Company's issuance of common stock and share-based awards to employees and non-employee directors. The following table presents segments results for revenue and gross margin, as reviewed by the CODM, and their reconciliation to the Company's consolidated GAAP results: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Segment revenues as reviewed by CODM Products $ 1,434,635 1,518,687 $ 856,903 Services 296,308 240,672 — Total segment revenues as reviewed by CODM $ 1,730,943 $ 1,759,359 $ 856,903 Segment gross profit as reviewed by CODM Products $ 697,212 $ 766,068 $ 444,322 Services 201,382 162,884 — Total segment gross profit as reviewed by CODM $ 898,594 $ 928,952 $ 444,322 Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Total segment revenues as reviewed by CODM $ 1,730,943 $ 1,759,359 $ 856,903 Deferred revenue purchase accounting (33,953 ) (84,824 ) — Consolidated GAAP net revenues $ 1,696,990 $ 1,674,535 $ 856,903 Total segment gross profit as reviewed by CODM (1) $ 898,594 $ 928,952 $ 444,322 Asset impairment (174,235 ) — — Purchase accounting amortization (122,553 ) (114,361 ) — Inventory valuation adjustment — (30,395 ) — Deferred revenue purchase accounting (33,953 ) (84,824 ) — Consumer optimization (10,415 ) — — Integration and rebranding costs (1,211 ) (1,057 ) — Stock-based compensation (3,992 ) (4,176 ) (3,622 ) Other adjustments — — (1,585 ) Consolidated GAAP gross profit $ 552,235 $ 694,139 $ 439,115 (1) Includes depreciation expense of $15.2 million , $11.0 million , and $7.6 million in Fiscal Years 2020, 2019, and 2018, respectively. The following table presents long-lived assets by geographic area on a consolidated basis: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 United States $ 76,633 $ 101,637 Netherlands 17,670 19,052 Mexico 39,053 40,821 United Kingdom $ 699 $ 9,074 China $ 15,089 $ 15,738 Other countries 21,315 18,504 Total long-lived assets $ 170,459 $ 204,826 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | UBSEQUENT EVENTS Restructuring On May 27, 2020, the Company announced its plan of restructuring to reduce expenses and right size its overall cost structure to better align with projected revenue levels. These actions are expected to result in approximately $25 million to $35 million |
SUPPLEMENTARY QUARTERLY FINANCI
SUPPLEMENTARY QUARTERLY FINANCIAL DATA | 12 Months Ended |
Mar. 28, 2020 | |
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 2020 and Fiscal Year 2019 consisted of 52 weeks. Our interim fiscal quarters for the first, second, third, and fourth quarter of Fiscal Year 2020 ended on June 29, 2019 , September 28, 2019 , December 28, 2019 , and March 28, 2020 , respectively, and 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. All interim fiscal quarters presented below consisted of 13 weeks. (in thousands, except per share data) Quarter Ended March 28, 2020 1 December 28, 2019 September 28, June 29, Net revenues $ 403,043 $ 384,471 $ 461,709 $ 447,767 Gross profit $ (10,328 ) $ 143,846 $ 206,071 $ 212,646 Net income (loss) $ (677,918 ) $ (78,483 ) $ (25,910 ) $ (44,871 ) Basic net income (loss) per common share $ (16.94 ) $ (1.97 ) $ (0.65 ) $ (1.14 ) Diluted net income (loss) per common share $ (16.94 ) $ (1.97 ) $ (0.65 ) $ (1.14 ) Cash dividends declared per common share $ — $ 0.15 $ 0.15 $ 0.15 (in thousands, except per share data) Quarter Ended March 30, December 29, September 29, June 30, 2018 2 Net revenues $ 468,488 $ 501,669 $ 483,069 $ 221,309 Gross profit $ 216,530 $ 215,137 $ 152,629 $ 109,843 Net income (loss) $ (21,589 ) $ (41,734 ) $ (86,709 ) $ 14,471 Basic net income (loss) per common share $ (0.55 ) $ (1.06 ) $ (2.21 ) $ 0.43 Diluted net income (loss) per common share $ (0.55 ) $ (1.06 ) $ (2.21 ) $ 0.42 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 (1) The Company's consolidated financial results for the fourth quarter Fiscal Year 2020 includes a non-cash impairment charge of $179.6 million to intangible assets and property, plant, and equipment related to long-lived assets in the voice asset group, as well as a non-cash impairment charge of $483.7 million to goodwill related to an overall decline in the Company’s earnings and a sustained decrease in its share price. The Company also completed its internal intangible property restructuring between its wholly-owned subsidiaries to align the IP structure to its operations, resulting in a deferred tax asset and partially offset by a valuation allowance recorded against its U.S. deferred tax assets. (2) The Company's consolidated financial results for the first quarter Fiscal Year 2019 exclude the results of Polycom for the three months ended June 30, 2018. The Company completed the Acquisition of Polycom on July 2, 2018 and results are included in the remaining three quarters of Fiscal Year 2019. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 28, 2020 | |
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, 2018 $ 603 — $ 784 $ (514 ) $ 873 Year ended March 30, 2019 873 3,928 4,332 (4,176 ) 4,956 Year ended March 28, 2020 4,956 — (2,297 ) (518 ) 2,141 Provision for returns: (2) Year ended March 31, 2018 $ 10,541 — $ 30,472 $ (30,788 ) $ 10,225 Year ended March 30, 2019 10,225 (10,225 ) — — — Year ended March 28, 2020 — — — — — Provision for promotions and rebates: (2) Year ended March 31, 2018 $ 31,747 — $ 183,929 $ (177,392 ) $ 38,284 Year ended March 30, 2019 (5) 38,284 44,136 417,422 (376,789 ) 123,053 Year ended March 28, 2020 123,053 (224 ) 441,250 (452,705 ) 111,374 Valuation allowance for deferred tax assets: (3) Year ended March 31, 2018 $ 2,209 $ 981 $ (676 ) $ 2,514 Year ended March 30, 2019 2,514 8,068 7,469 (2,264 ) 15,787 Year ended March 28, 2020 15,787 — 71,561 (5,912 ) 81,436 (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 primarily 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. 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. 28, 2020 | |
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 its 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 2020 , 2019 , and 2018 each had 52 weeks and ended on March 28, 2020 , March 30, 2019 , and March 31, 2018 , respectively. |
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 2020 . As of March 28, 2020 , 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, recognizes 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 |
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. As of March 28, 2020 , and March 30, 2019 , the off-balance sheet consigned inventory balances were $21.7 million and $47.1 million , respectively. 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 28, 2020 , the Company’s aggregate purchase commitments to its suppliers for parts used in the manufacture of the Company’s products, including the off-balance sheet consigned inventory discussed above, was $220.4 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. |
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. During the fourth quarter of Fiscal Year 2020, the Company made key changes to its executive management, which ultimately resulted in a change to the composition of its reportable segments and consequently a change from one to four reporting units – Headsets, Voice, Video, and Services. 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, a quantitative impairment test must be performed by estimating the fair value of the reporting unit and comparing it with its carrying value, including goodwill. If the carrying amount of a reporting unit is greater than its estimated fair value, goodwill is written down by the excess amount, limited to the total amount of goodwill allocated to that reporting unit. In the fourth quarter of Fiscal Year 2020, the Company performed a quantitative assessment and determined that the carrying amount of its reporting units were greater than its estimated fair value and therefore recorded an impairment charge. Refer to Note 8 , Goodwill and Purchased Intangible Assets , of the accompanying Notes to Consolidated Financial Statements. 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. Such conditions may include an economic downturn or a change in the assessment of future operations. The Company performs a recoverability test to assess the recoverability of intangible assets at an asset group level. 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. |
Lessee, Leases [Policy Text Block] | Leases The Company’s lease portfolio consists primarily of real estate facilities under operating leases. The Company determines if an arrangement is or contains a lease at inception. ROU assets and lease liabilities are recognized at commencement based on the present value of the future minimum lease payments over the lease term. The Company applies its incremental borrowing rate, which approximates the rate at which the Company would borrow, on a secured basis, in the country where the lease was executed, to determine the present value of the future minimum lease payments when the respective lease does not provide an implicit rate. Certain of the Company’s lease agreements include options to extend or renew the lease terms. Such options are excluded from the minimum lease obligation unless they are reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. |
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 the 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, of the accompanying Notes to Consolidated financial Statements. 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, of the accompanying Notes to 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 90% 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 recognizes 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. 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 |
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. The Company accounts for Global Intangible Low-Taxed Income (“GILTI”) as period costs when incurred. |
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 entities. Assets and liabilities denominated in currencies other than the USD 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 estimates expected forfeitures at the time of grant and they are determined based on historical activity, which the Company believes is indicative of expected future forfeitures. The Company accounts for 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. 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 |
Concentration of Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-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 28, 2020 , and March 30, 2019 , the Company's investments were composed solely of mutual funds. 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. Three customers, Ingram Micro Group, ScanSource, and Synnex Group, accounted for 22.2% , 17.3% , and 15.6% , respectively, of total net accounts receivable as of March 28, 2020 . 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 30, 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 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 17.8% 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 years ended March 28, 2020 , and March 30, 2019 . Accounts Receivable Financing The Company holds 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 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 2020 , total transactions entered pursuant to the terms of the Financing Agreement were approximately $197.1 million , of which $105.3 million was related to the transfer of a 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 28, 2020 was approximately $22.5 million due from the financing company, of which $16.5 million was related to accounts receivable transferred. Total fees incurred pursuant to the Financing Agreement was $3.4 million for the year ended March 28, 2020 . These fees are recorded as a reduction of net revenues in the Company's consolidated statement of operations. Reclassifications |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Risks and Uncertainties The Company has a history of generating positive cash flows. Subsequent to the Acquisition of Polycom in July 2018 the level of operating cash flows has been negatively impacted by integration, restructuring activities, and increased interest payments on long-term debt. In connection with the Acquisition, the Company entered into a $1.245 billion term loan facility due in May 2025, and a $100 million revolving credit facility due in May 2023 which includes certain financial covenants. In addition, the Company has $500.0 million of 5.50% Senior Notes which are due upon maturity in May 2023. Refer to Note 10 , Debt , of the accompanying Notes to Consolidated Financial Statements Due to the COVID-19 pandemic, the Company is subject to a greater degree of uncertainty than normal in making the judgments and estimates needed to apply its significant accounting policies. The Company has assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, in context to the unknown future impacts of COVID-19 using information that is reasonably available as of the issuance date of the consolidated financial statements. The accounting estimates and other matters the Company has assessed include, but were not limited to, impairment of goodwill and other long-lived assets, allowance for doubtful accounts, valuation allowances for deferred tax assets, inventory and related reserves, and revenue recognition and related reserves. As the impact of COVID-19 continues to develop, the Company may make changes to these estimates and judgments, which could result in material impacts to the financial statements in future periods. The extent and duration of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic is in its incipient stages and information is rapidly evolving. The Company relies on contract manufacturers and sourcing of materials from the Asia Pacific region as well as its own manufacturing facility in Mexico. The Company has experienced disruptions in both its own supply chain as well as those of its contract manufacturers as a result of COVID-19 and as this virus has impacted various regions differently, the Company may in the future experience further business operation disruptions. Such disruptions have had, and may continue to have, a material impact on the Company's ability to fulfill customer orders and adversely affect the ability to meet customer demands as more companies move to remote working. Additionally, if a significant number of the Company's workforce employed in any of these manufacturing facilities or in the Company's offices were to contract the virus, the Company may experience delays or the inability to develop, produce and deliver the Company's products on a timely basis. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on its customers and suppliers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, including potential write-offs due to financial weakness and/or bankruptcy of its customers, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers and suppliers. As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. The Company has considered multiple scenarios in its operating forecast to assess the range of potential impacts on its financial position and liquidity. These scenarios include a base case scenario and stress test scenarios that consider the potential negative impacts of the varying risks associated with COVID-19 and the current economic environment as well as the mitigating actions that are within the control of the Company. In evaluating potential scenarios, the Company performed a comprehensive analysis of recent industry forecasts, revenue impacts of past major crises, and types and associated probabilities of potential economic impacts and recoveries. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Business Combinations [Abstract] | |
Schedule of preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed | The 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 165,798 Inventories 109,074 Prepaid expenses and other current assets 68,558 Property and equipment, net 79,497 Intangible assets 985,400 Other assets 27,237 Total assets acquired $ 1,515,703 LIABILITIES Accounts payable $ 80,653 Accrued payroll and related liabilities 44,538 Accrued expenses 147,167 Income tax payable 27,044 Deferred revenue 115,061 Deferred income taxes 94,618 Other liabilities 54,394 Total liabilities assumed $ 563,475 Total identifiable net assets acquired 952,228 Goodwill 1,264,417 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 As of March 28, 2020 and March 30, 2019, the carrying value of other intangible assets, excluding fully amortized assets, is as follows: As of March 28, 2020 March 30, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 427,123 $ (208,848 ) $ 218,275 $ 566,881 $ (86,301 ) $ 480,580 3.3 years Customer relationships 240,024 (84,506 ) 155,518 245,481 (36,245 ) 209,236 4.0 years Trade name/Trademarks 115,600 (22,478 ) 93,122 115,600 (9,633 ) 105,967 7.3 years Non-amortizing assets In-process R&D — — — 29,892 — 29,892 N/A Total intangible assets $ 782,747 $ (315,832 ) $ 466,915 $ 957,854 $ (132,179 ) $ 825,675 4.3 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 As of March 28, 2020 and March 30, 2019, the carrying value of other intangible assets, excluding fully amortized assets, is as follows: As of March 28, 2020 March 30, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 427,123 $ (208,848 ) $ 218,275 $ 566,881 $ (86,301 ) $ 480,580 3.3 years Customer relationships 240,024 (84,506 ) 155,518 245,481 (36,245 ) 209,236 4.0 years Trade name/Trademarks 115,600 (22,478 ) 93,122 115,600 (9,633 ) 105,967 7.3 years Non-amortizing assets In-process R&D — — — 29,892 — 29,892 N/A Total intangible assets $ 782,747 $ (315,832 ) $ 466,915 $ 957,854 $ (132,179 ) $ 825,675 4.3 years |
Pro forma information | Pro Forma (unaudited) (in thousands) Fiscal Year Ended Fiscal Year Ended Total net revenues $ 2,008,245 $ 1,892,971 Operating income (loss) 18,929 (208,234 ) Net loss $ (38,516 ) $ (379,032 ) |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
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 28, 2020 and March 30, 2019 (in thousands): March 28, 2020 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Cash $ 213,879 $ — $ — $ 213,879 $ 213,879 $ — Level 1: Mutual Funds 12,938 31 (1,128 ) 11,841 — 11,841 Total cash, cash equivalents $ 226,817 $ 31 $ (1,128 ) $ 225,720 $ 213,879 $ 11,841 March 30, 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 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. 28, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net: (in thousands) March 28, 2020 March 30, 2019 Accounts receivable $ 350,642 $ 393,416 Provisions for promotions and rebates (101,666 ) 1 (50,789 ) Provisions for doubtful accounts and sales allowances (2,141 ) (4,956 ) Accounts receivable, net $ 246,835 $ 337,671 |
Inventory, net | Inventory, net: (in thousands) March 28, 2020 March 30, 2019 Raw materials $ 97,371 $ 34,054 Work in process 459 274 Finished goods 66,697 142,818 Inventory, net $ 164,527 $ 177,146 |
Property, Plant and Equipment | Property, plant, and equipment, net: (in thousands) March 28, 2020 March 30, 2019 Land $ 15,112 $ 16,418 Buildings and improvements (useful life: 7-30 years) 132,153 138,000 Machinery and equipment (useful life: 2-10 years) 170,756 158,326 Software (useful life: 5-6 years) 60,552 68,985 Construction in progress 6,934 13,100 Property, plant, and equipment, gross 385,507 394,829 Accumulated depreciation and amortization (219,649 ) (190,003 ) Property, plant, and equipment, net $ 165,858 $ 204,826 |
Accrued Liabilities | Accrued Liabilities: (in thousands) March 28, 2020 March 30, 2019 Short term deferred revenue $ 144,040 $ 133,200 Employee compensation and benefits 48,153 68,882 Operating lease liabilities, current 22,517 — Income tax payable 20,725 5,692 Provision for returns 20,146 24,632 Accrued interest 14,617 10,425 Derivative liabilities 12,840 3,275 Warranty obligation 12,772 15,736 Marketing incentives liabilities 9,708 25,369 VAT/Sales tax payable 9,673 11,804 Discounts reserve — 1 46,894 Accrued other 58,475 52,806 Accrued liabilities $ 373,666 $ 398,715 (1) In the third quarter of fiscal year 2020, certain provisions for promotions, rebates and other were reclassified to contra-assets within Accounts Receivable, net due to changes to distribution contracts, which resulted in the incorporation of the "right-of offset" into the Company's standard contract template. |
Changes in the warranty obligation accrual | Changes in the warranty obligation, which are included as a component of accrued liabilities in the consolidated balance sheets, are as follows: (in thousands) March 28, 2020 March 30, 2019 Warranty obligation at beginning of year $ 17,984 $ 9,604 Polycom warranty obligation (1) — 9,095 Warranty provision related to products shipped 18,736 19,884 Deductions for warranty claims processed (21,333 ) (20,638 ) Adjustments related to preexisting warranties (126 ) 39 Warranty obligation at end of year (2) $ 15,261 $ 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; the prior table shows only the short-term portion included in accrued liabilities on the Company's consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
Assets And Liabilities, Operating Leases [Table Text Block] | Operating Leases: Balance Sheet (in thousands) Classification March 28, 2020 March 30, 2019 ASSETS Operating right-of-use assets (1) Other assets $ 44,226 $ — LIABILITIES Operating lease liabilities, current (2) Accrued liabilities $ 22,517 $ — Operating lease liabilities, long-term Other liabilities $ 35,144 $ — (1) During Fiscal Year 2020 , the Company made $24.2 million in payments for operating leases included within cash provided by operating activities in its consolidated statements of cash flows. (2) During Fiscal Year 2020 , the Company recognized $17.7 million in operating lease expense, net of $5.6 million in sublease income within its consolidated statement of operations. |
GOODWILL AND PURCHASED INTANG_2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill by segment | The changes in the carrying amount of goodwill allocated to the Company's reporting segments for the year ended March 28, 2020 are as follows: (in thousands) Poly Reportable Segment Products Reportable Segment Services Reportable Segment Total Consolidated Balance as of March 30, 2019 $ 1,278,380 $ — $ — $ 1,278,380 Adjustments (1) 1,517 1,517 Impairment prior to re-segmentation (323,088 ) — — (323,088 ) Allocation due to re-segmentation (956,809 ) 789,561 167,248 — Impairment after re-segmentation — (160,593 ) (160,593 ) Balance as of March 28, 2020 $ — $ 628,968 $ 167,248 $ 796,216 |
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 As of March 28, 2020 and March 30, 2019, the carrying value of other intangible assets, excluding fully amortized assets, is as follows: As of March 28, 2020 March 30, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 427,123 $ (208,848 ) $ 218,275 $ 566,881 $ (86,301 ) $ 480,580 3.3 years Customer relationships 240,024 (84,506 ) 155,518 245,481 (36,245 ) 209,236 4.0 years Trade name/Trademarks 115,600 (22,478 ) 93,122 115,600 (9,633 ) 105,967 7.3 years Non-amortizing assets In-process R&D — — — 29,892 — 29,892 N/A Total intangible assets $ 782,747 $ (315,832 ) $ 466,915 $ 957,854 $ (132,179 ) $ 825,675 4.3 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 As of March 28, 2020 and March 30, 2019, the carrying value of other intangible assets, excluding fully amortized assets, is as follows: As of March 28, 2020 March 30, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Amortizing Assets Existing technology $ 427,123 $ (208,848 ) $ 218,275 $ 566,881 $ (86,301 ) $ 480,580 3.3 years Customer relationships 240,024 (84,506 ) 155,518 245,481 (36,245 ) 209,236 4.0 years Trade name/Trademarks 115,600 (22,478 ) 93,122 115,600 (9,633 ) 105,967 7.3 years Non-amortizing assets In-process R&D — — — 29,892 — 29,892 N/A Total intangible assets $ 782,747 $ (315,832 ) $ 466,915 $ 957,854 $ (132,179 ) $ 825,675 4.3 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 28, 2020 , expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: in thousands Amount 2021 $ 124,893 2022 113,858 2023 111,232 2024 65,936 2025 21,688 Thereafter 29,308 $ 466,915 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable operating leases as of March 28, 2020 were as follows: (in thousands) Operating Leases (1) 2021 $ 24,845 2022 21,468 2023 9,256 2024 4,020 2025 2,356 Thereafter 1,651 Total lease payments $ 63,596 Less: Imputed interest (2) (5,935 ) Present value of lease liabilities $ 57,661 (1) The weighted average remaining lease term was 3.0 years as of March 28, 2020. (2) The weighted average discount rate was 4.7% as of March 28, 2020. Future minimum lease payments under non-cancelable operating leases as of March 30, 2019 were as follows (1) : (in thousands) 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 (1) Amounts are based on ASC 840, Leases, and were superseded upon the adoption of ASC 842, Leases, on March 31, 2019 (See Note 3). |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Summary of debt, fair value | The estimated fair value and carrying value of the Company's outstanding debt as of March 28, 2020 and March 30, 2019 were as follows: March 28, 2020 March 30, 2019 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 359,140 $ 495,409 $ 503,410 $ 493,959 Term loan facility $ 852,942 $ 1,126,285 $ 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 a 30 -day 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. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the Company's restructuring liabilities during the year ended March 28, 2020 : As of March 30, 2019 Adoption of ASC 842 (1) Charges Payments As of March 28, 2020 FY 2020 Plans Severance $ — $ — $ 29,621 $ (22,146 ) $ 7,475 Facility — — 3,247 (746 ) 2,501 Other — — 10,100 (8,479 ) 1,621 Total FY 2020 Plans — — 42,968 (31,371 ) 11,597 FY2019 Plans Severance 5,889 — 156 (5,898 ) 147 Facility 7,376 (7,376 ) — — — Other 10 — 107 — 117 Total FY 2019 Plans 13,275 (7,376 ) 263 (5,898 ) 264 Severance 5,889 — 29,777 (28,044 ) 7,622 Facility 7,376 (7,376 ) 3,247 (746 ) 2,501 Other 10 — 10,207 (8,479 ) 1,738 Grand Total $ 13,275 $ (7,376 ) $ 43,231 $ (37,269 ) $ 11,861 (1) Includes adjustments to facilities-related liabilities upon adoption of ASC 842, Leases. |
STOCK PLANS AND STOCK-BASED C_2
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Performance Shares, Activity [Table Text Block] | The following table summarizes the changes in unvested PSUs, for Fiscal Year 2020 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 30, 2019 143 $ 70.53 Granted 384 $ 57.16 Vested (20 ) $ 36.76 Forfeited (86 ) $ 65.09 Non-vested at March 28, 2020 421 $ 61.09 |
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 (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Cost of revenues $ 3,992 $ 4,176 $ 3,622 Research, development and engineering 16,785 11,699 8,071 Selling, general and administrative 36,318 26,059 22,266 Stock-based compensation expense included in operating expenses 53,103 37,758 30,337 Total stock-based compensation 57,095 41,934 33,959 Income tax benefit (7,369 ) (9,891 ) (7,880 ) Total stock-based compensation expense, net of tax $ 49,726 $ 32,043 $ 26,079 |
Summary of Stock Option Activity | The following is a summary of the Company’s stock option activity during Fiscal Year 2020 : 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 30, 2019 627 $ 48.66 Options granted — $ — Options exercised (19 ) $ 39.91 Options forfeited or expired (256 ) $ 51.04 Outstanding at March 28, 2020 352 $ 47.39 2.3 $ — Vested or expected to vest at March 28, 2020 352 $ 47.39 2.3 $ — Exercisable at March 28, 2020 351 $ 47.38 2.3 $ — |
Summary of Restricted Stock Activity | The following table summarizes the changes in unvested restricted stock and RSUs, for Fiscal Year 2020 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 30, 2019 1,473 $ 61.64 Granted 1,376 $ 33.77 Vested (648 ) $ 58.95 Forfeited (290 ) $ 53.54 Non-vested at March 28, 2020 1,911 $ 43.71 |
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, 2020 2019 2018 2020 2019 2018 Expected volatility n/a n/a 29.1 % 67.0 % 40.8 % 30.5 % Risk-free interest rate n/a n/a 1.7 % 1.7 % 2.4 % 1.5 % Expected dividends n/a n/a 1.2 % 3.1 % 1.1 % 1.2 % Expected life (in years) n/a n/a 4.6 0.5 0.5 0.5 Weighted-average grant date fair value n/a n/a $ 12.58 $ 6.64 $ 14.44 $ 11.78 |
COMMON STOCK REPURCHASES (Table
COMMON STOCK REPURCHASES (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
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) March 28, 2020 March 30, 2019 Shares of common stock repurchased in the open market — 361,091 Value of common stock repurchased in the open market $ — $ 13,177 Average price per share $ — $ 36.49 Value of shares withheld in satisfaction of employee tax obligations $ 9,891 $ 14,070 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
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: (in thousands) March 28, 2020 March 30, 2019 Accumulated unrealized gain (loss) on cash flow hedges (1) $ (18,197 ) $ (5,310 ) Accumulated foreign currency translation adjustments 4,615 4,835 Accumulated other comprehensive income (loss) $ (13,582 ) $ (475 ) (1) Refer to Note 16 , Derivatives , which discloses the nature of the Company's derivative assets and liabilities as of March 28, 2020 and March 30, 2019 . |
FOREIGN CURRENCY DERIVATIVES (T
FOREIGN CURRENCY DERIVATIVES (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
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 28, 2020 : 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 $ 3,550 $ (3,550 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 3,550 $ — 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 $ (22,890 ) $ 3,550 $ — $ (19,340 ) Derivatives not subject to master netting agreements — — Total $ (22,890 ) $ (19,340 ) As of March 30, 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 28, 2020 : 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 $ 3,550 $ (3,550 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 3,550 $ — 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 $ (22,890 ) $ 3,550 $ — $ (19,340 ) Derivatives not subject to master netting agreements — — Total $ (22,890 ) $ (19,340 ) As of March 30, 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 28, 2020 March 30, 2019 EUR GBP EUR GBP Option contracts €67.0 €18.4 €76.8 £25.8 Forward contracts €50.2 €18.5 €55.4 £18.0 March 28, 2020 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) EUR € 33,200 $ 36,755 Sell EUR 1 month GBP £ 5,300 $ 6,584 Sell GBP 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 28, Fiscal Year Ended March 30, Fiscal Year Ended March 31, (in thousands) 2020 2019 2018 Gain (loss) on foreign exchange contracts $ 2,665 $ 7,340 $ (7,405 ) |
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 28, 2020 , March 30, 2019 , and March 31, 2018 : (in thousands) 2020 2019 2018 Gain (loss) included in AOCI as of beginning of period $ (7,480 ) $ (1,693 ) $ 541 Amount of gain (loss) recognized in OCI (effective portion) (13,172 ) (4,176 ) (6,741 ) Amount of (gain) loss reclassified from OCI into net revenues (effective portion) (4,270 ) (4,034 ) 4,715 Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) (238 ) (177 ) (208 ) Amount of (gain) loss reclassified from OCI into interest expense (effective portion) 5,004 2,600 — Total amount of (gain) loss reclassified from AOCI to consolidated statements of operations (effective portion) 496 (1,611 ) 4,507 Gain (loss) included in AOCI as of end of period $ (20,156 ) $ (7,480 ) $ (1,693 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for Fiscal Years 2020 , 2019 , and 2018 consisted of the following: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Current: Federal $ 15,794 $ (1,199 ) $ 82,523 State 2,310 2,550 4,274 Foreign 9,526 (1,550 ) 6,860 Total current provision for (benefit from) income taxes 27,630 (199 ) 93,657 Deferred: Federal (15,606 ) (37,577 ) 9,002 State 1,939 (4,160 ) (1,585 ) Foreign (83,364 ) (8,195 ) 22 Total deferred income tax expense (benefit) (97,031 ) (49,932 ) 7,439 Income tax expense (benefit) $ (69,401 ) $ (50,131 ) $ 101,096 |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income (loss) before income taxes for Fiscal Years 2020 , 2019 , and 2018 are as follows: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 United States $ (756,095 ) $ (179,387 ) $ 17,654 Foreign (140,488 ) (6,305 ) 82,573 Income (loss) before income taxes $ (896,583 ) $ (185,692 ) $ 100,227 |
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 2020 , 2019 , and 2018 : Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Tax expense at statutory rate $ (188,282 ) $ (38,995 ) $ 31,631 Foreign operations taxed at different rates 2,497 (4,965 ) (17,970 ) State taxes, net of federal benefit (14,326 ) (1,610 ) 2,689 Research and development credit (6,498 ) (4,288 ) (2,023 ) US tax on foreign earnings 10,889 4,398 — Impact of Tax Act — (3,728 ) 87,790 Goodwill impairment 101,604 — — Stock based compensation 7,369 (1,196 ) (1,771 ) Internal restructuring related benefit (65,069 ) — — Withholding tax 2,657 — — Deferred tax valuation allowance 68,486 — — Altera accrual 9,467 — — Other, net 1,805 253 750 Income tax expense (benefit) $ (69,401 ) $ (50,131 ) $ 101,096 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities as of March 28, 2020 and March 30, 2019 and are as follows: (in thousands) March 28, 2020 March 30, 2019 Accruals and other reserves $ 29,788 $ 24,167 Deferred compensation 277 2,980 Net operating loss carry forward 11,810 16,921 Stock compensation 10,867 9,484 Interest expense 10,676 11,550 Tax credits 12,437 7,072 Engineering costs 41,123 31,015 Intangible assets 94,809 — Other deferred tax assets 3,826 635 Valuation allowance (1) (81,436 ) (15,787 ) Total deferred tax assets 134,177 88,037 Deferred gains on sales of properties (1,128 ) (1,155 ) Purchased intangibles (55,586 ) (92,544 ) Unearned revenue 6,521 (5,054 ) Unremitted earnings of certain subsidiaries (7,123 ) (17,879 ) Fixed asset depreciation 818 (7,881 ) Right of use assets (5,316 ) — Total deferred tax liabilities (61,814 ) (124,513 ) Net deferred tax assets (2) $ 72,363 $ (36,476 ) (1) Valuation allowance on federal and state deferred tax assets are net of federal tax impact. (2) The Company's deferred tax assets for the Fiscal Year ended March 28, 2020 and March 30, 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: (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Balance at beginning of period $ 26,458 $ 12,612 $ 12,854 Increase (decrease) of unrecognized tax benefits related to prior fiscal years 11,226 254 (1,310 ) Increase of unrecognized tax benefits related to business combinations 89 13,329 — Increase of unrecognized tax benefits related to current year income statement 115,824 2,069 3,085 Reductions to unrecognized tax benefits related to settlements with taxing authorities (995 ) — (115 ) Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations (295 ) (1,806 ) (1,902 ) Balance at end of period $ 152,307 $ 26,458 $ 12,612 |
COMPUTATION OF EARNINGS PER C_2
COMPUTATION OF EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings (loss) per common share for the years ended March 28, 2020 , March 30, 2019 , and March 31, 2018 : Fiscal Year Ended (in thousands, except earnings per share data) March 28, 2020 March 30, 2019 March 31, 2018 Numerator: Net loss $ (827,182 ) $ (135,561 ) $ (869 ) Denominator: Weighted average common shares-basic 39,658 37,569 32,345 Weighted average shares-diluted 39,658 37,569 32,345 Basic loss per common share $ (20.86 ) $ (3.61 ) $ (0.03 ) Diluted loss per common share $ (20.86 ) $ (3.61 ) $ (0.03 ) Potentially dilutive securities excluded from diluted loss per share because their effect is anti-dilutive 1,740 616 543 |
REVENUE AND MAJOR CUSTOMERS (Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
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 28, 2020 , March 30, 2019 , and March 31, 2018 : Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Net revenues from unaffiliated customers: Headsets 1 $ 773,186 $ 910,699 $ 856,903 Voice 2 377,059 344,586 — Video 2 282,491 255,485 — Services 2 264,254 163,765 — Total net revenues $ 1,696,990 $ 1,674,535 $ 856,903 1 As announced on February 4, 2020, the Company entered into a definitive agreement with Nacon S.A. and closed the transaction on March 19, 2020, completing the sale of the Company's Consumer Gaming assets for a net amount that is not material to the Company's consolidated financial statements. The remaining consumer headsets are included in the Company's Enterprise products and all prior periods have been reclassified to conform to current presentation. 2 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 accompanying Notes of Consolidated Financial Statements for additional information regarding this acquisition. |
Net Revenues by Geography | The following table presents net revenues by geography: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Products Net revenues from unaffiliated customers: U.S. $ 708,566 $ 729,930 $ 434,053 Europe and Africa 398,721 432,899 250,762 Asia Pacific 221,912 245,499 99,779 Americas, excluding U.S. 103,537 102,442 72,309 Total International net revenues 724,170 780,840 422,850 Product net revenues 1,432,736 1,510,770 856,903 Services Net revenues from unaffiliated customers: U.S. $ 102,103 $ 59,615 $ — Europe and Africa 66,900 43,991 — Asia Pacific 73,424 43,382 — Americas, excluding U.S. 21,827 16,777 — Total International net revenues 162,151 104,150 — Service net revenues $ 264,254 $ 163,765 $ — Total net revenues $ 1,696,990 $ 1,674,535 $ 856,903 |
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 28, 2020 : As of March 28, 2020 (in millions) Current Noncurrent Total Performance obligations $ 148.7 $ 64.5 $ 213.2 |
SEGMENT REPORTING AND GEOGRAP_2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Segments, Geographical Areas [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table presents segments results for revenue and gross margin, as reviewed by the CODM, and their reconciliation to the Company's consolidated GAAP results: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Segment revenues as reviewed by CODM Products $ 1,434,635 1,518,687 $ 856,903 Services 296,308 240,672 — Total segment revenues as reviewed by CODM $ 1,730,943 $ 1,759,359 $ 856,903 Segment gross profit as reviewed by CODM Products $ 697,212 $ 766,068 $ 444,322 Services 201,382 162,884 — Total segment gross profit as reviewed by CODM $ 898,594 $ 928,952 $ 444,322 Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Total segment revenues as reviewed by CODM $ 1,730,943 $ 1,759,359 $ 856,903 Deferred revenue purchase accounting (33,953 ) (84,824 ) — Consolidated GAAP net revenues $ 1,696,990 $ 1,674,535 $ 856,903 Total segment gross profit as reviewed by CODM (1) $ 898,594 $ 928,952 $ 444,322 Asset impairment (174,235 ) — — Purchase accounting amortization (122,553 ) (114,361 ) — Inventory valuation adjustment — (30,395 ) — Deferred revenue purchase accounting (33,953 ) (84,824 ) — Consumer optimization (10,415 ) — — Integration and rebranding costs (1,211 ) (1,057 ) — Stock-based compensation (3,992 ) (4,176 ) (3,622 ) Other adjustments — — (1,585 ) Consolidated GAAP gross profit $ 552,235 $ 694,139 $ 439,115 (1) Includes depreciation expense of $15.2 million , $11.0 million , and $7.6 million in Fiscal Years 2020, 2019, and 2018, respectively. |
Net Revenues by Product Group | The following table disaggregates revenues by major product category for the Fiscal Years ended March 28, 2020 , March 30, 2019 , and March 31, 2018 : Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Net revenues from unaffiliated customers: Headsets 1 $ 773,186 $ 910,699 $ 856,903 Voice 2 377,059 344,586 — Video 2 282,491 255,485 — Services 2 264,254 163,765 — Total net revenues $ 1,696,990 $ 1,674,535 $ 856,903 1 As announced on February 4, 2020, the Company entered into a definitive agreement with Nacon S.A. and closed the transaction on March 19, 2020, completing the sale of the Company's Consumer Gaming assets for a net amount that is not material to the Company's consolidated financial statements. The remaining consumer headsets are included in the Company's Enterprise products and all prior periods have been reclassified to conform to current presentation. 2 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 accompanying Notes of Consolidated Financial Statements for additional information regarding this acquisition. |
Net Revenues by Geography | The following table presents net revenues by geography: Fiscal Year Ended (in thousands) March 28, 2020 March 30, 2019 March 31, 2018 Products Net revenues from unaffiliated customers: U.S. $ 708,566 $ 729,930 $ 434,053 Europe and Africa 398,721 432,899 250,762 Asia Pacific 221,912 245,499 99,779 Americas, excluding U.S. 103,537 102,442 72,309 Total International net revenues 724,170 780,840 422,850 Product net revenues 1,432,736 1,510,770 856,903 Services Net revenues from unaffiliated customers: U.S. $ 102,103 $ 59,615 $ — Europe and Africa 66,900 43,991 — Asia Pacific 73,424 43,382 — Americas, excluding U.S. 21,827 16,777 — Total International net revenues 162,151 104,150 — Service net revenues $ 264,254 $ 163,765 $ — Total net revenues $ 1,696,990 $ 1,674,535 $ 856,903 |
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 (in thousands) March 28, 2020 March 30, 2019 United States $ 76,633 $ 101,637 Netherlands 17,670 19,052 Mexico 39,053 40,821 United Kingdom $ 699 $ 9,074 China $ 15,089 $ 15,738 Other countries 21,315 18,504 Total long-lived assets $ 170,459 $ 204,826 |
SUPPLEMENTARY QUARTERLY FINAN_2
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Mar. 28, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (in thousands, except per share data) Quarter Ended March 28, 2020 1 December 28, 2019 September 28, June 29, Net revenues $ 403,043 $ 384,471 $ 461,709 $ 447,767 Gross profit $ (10,328 ) $ 143,846 $ 206,071 $ 212,646 Net income (loss) $ (677,918 ) $ (78,483 ) $ (25,910 ) $ (44,871 ) Basic net income (loss) per common share $ (16.94 ) $ (1.97 ) $ (0.65 ) $ (1.14 ) Diluted net income (loss) per common share $ (16.94 ) $ (1.97 ) $ (0.65 ) $ (1.14 ) Cash dividends declared per common share $ — $ 0.15 $ 0.15 $ 0.15 (in thousands, except per share data) Quarter Ended March 30, December 29, September 29, June 30, 2018 2 Net revenues $ 468,488 $ 501,669 $ 483,069 $ 221,309 Gross profit $ 216,530 $ 215,137 $ 152,629 $ 109,843 Net income (loss) $ (21,589 ) $ (41,734 ) $ (86,709 ) $ 14,471 Basic net income (loss) per common share $ (0.55 ) $ (1.06 ) $ (2.21 ) $ 0.43 Diluted net income (loss) per common share $ (0.55 ) $ (1.06 ) $ (2.21 ) $ 0.42 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 (1) The Company's consolidated financial results for the fourth quarter Fiscal Year 2020 includes a non-cash impairment charge of $179.6 million to intangible assets and property, plant, and equipment related to long-lived assets in the voice asset group, as well as a non-cash impairment charge of $483.7 million to goodwill related to an overall decline in the Company’s earnings and a sustained decrease in its share price. The Company also completed its internal intangible property restructuring between its wholly-owned subsidiaries to align the IP structure to its operations, resulting in a deferred tax asset and partially offset by a valuation allowance recorded against its U.S. deferred tax assets. (2) The Company's consolidated financial results for the first quarter Fiscal Year 2019 exclude the results of Polycom for the three months ended June 30, 2018. The Company completed the Acquisition of Polycom on July 2, 2018 and results are included in the remaining three quarters of Fiscal Year 2019. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||||
Mar. 28, 2020USD ($)Customer | Mar. 30, 2019USD ($)Customer | Mar. 31, 2018USD ($)Customer | Jul. 02, 2018 | May 31, 2015USD ($) | |
Product Information [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation | $ 220.4 | ||||
Revenue From Contracts With Customers, Percentage Associated With Non-cancellable Maintenance And Support Contracts | 90.00% | ||||
Duration of fiscal year | 364 days | 371 days | 364 days | ||
Advertising expense | $ 0.8 | $ 1.2 | $ 0.9 | ||
Number of customers accounting for 10% or more of net accounts receivable | Customer | 1 | ||||
Accounts Receivable Financing, Gross | 197.1 | ||||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 105.3 | ||||
Accounts Receivable Financing, Current | 22.5 | ||||
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | 16.5 | ||||
Financing Agreement, Fees | 3.4 | ||||
Inventory Off Balance Sheet | $ 21.7 | $ 47.1 | |||
Minimum | |||||
Product Information [Line Items] | |||||
Product warranty terms | 1 year | ||||
Maximum | |||||
Product Information [Line Items] | |||||
Product warranty terms | 2 years | ||||
Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Number of customers accounting for 10% or more of net accounts receivable | Customer | 3 | ||||
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 | ||||
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 | 22.20% | 21.30% | |||
ScanSource [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 17.30% | 19.20% | |||
Synnex Corp. [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 15.60% | ||||
D&H Distributors [Member] | Customer concentration risk | Accounts receivable | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 10.90% | 10.90% | |||
Triangle [Member] | |||||
Product Information [Line Items] | |||||
Ownership percentage | 17.80% | 16.00% | |||
5.50% Senior Notes | Senior notes | |||||
Product Information [Line Items] | |||||
Debt Instrument, Face Amount | $ 500 | ||||
Stated interest rate | 5.50% | 5.50% |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 31, 2019 |
Other Assets [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 44,226 | $ 57,300 |
Liability [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Present value of lease liabilities | $ 57,661 | 68,500 |
Accrued Liabilities [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Present value of lease liabilities | 25,700 | |
Other Long-Term Liabilities [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Present value of lease liabilities | $ 42,800 |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 | Jul. 02, 2018 |
Accounts payable | |||
Goodwill | $ 796,216 | $ 1,278,380 | |
Polycom | |||
ASSETS | |||
Cash and cash equivalents | $ 80,139 | ||
Trade receivables, net | 165,798 | ||
Inventories | 109,074 | ||
Prepaid expenses and other current assets | 68,558 | ||
Property and equipment, net | 79,497 | ||
Intangible assets | 985,400 | ||
Other assets | 27,237 | ||
Total assets acquired | 1,515,703 | ||
Accounts payable | |||
Accounts payable | 80,653 | ||
Accrued payroll and related liabilities | 44,538 | ||
Accrued expenses | 147,167 | ||
Income tax payable | 27,044 | ||
Deferred revenue | 115,061 | ||
Deferred income taxes | 94,618 | ||
Other liabilities | 54,394 | ||
Total liabilities assumed | 563,475 | ||
Total identifiable net assets acquired | 952,228 | ||
Goodwill | 1,264,417 | ||
Total Purchase Price | $ 2,216,645 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 02, 2018 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 796,216 | $ 1,278,380 | ||
Triangle [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 16.00% | 17.80% | ||
Polycom | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,264,417 | |||
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, Adjustment, Deferred Tax And Tax Liabilities | $ 45,200 | |||
Business Combination, Adjustment, Working Capital Adjustment | 8,000 | |||
Business Combination, Adjustment, Other | 1,400 | |||
Goodwill, Purchase Accounting Adjustments | (54,600) | |||
Deferred Revenue Adjustment [Member] | Polycom | ||||
Business Acquisition [Line Items] | ||||
Revenues | (84,800) | $ (84,800) | ||
Fair Value Adjustment to Inventory [Member] | Polycom | ||||
Business Acquisition [Line Items] | ||||
Revenues | 30,400 | 30,400 | ||
Acquisition-related Costs [Member] | Polycom | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 19,200 | $ 19,200 | ||
In Process Research and Development [Member] | Polycom | ||||
Business Acquisition [Line Items] | ||||
Indefinite-lived Intangible Assets Acquired | $ 58,000 | $ 58,000 |
ACQUISITION - Acquired Intangib
ACQUISITION - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Mar. 28, 2020 | Mar. 30, 2019 |
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 782,747 | $ 957,854 | |
Polycom | |||
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, Remaining Amortization Period | 3 years 3 months 18 days | ||
Technology-Based Intangible Assets [Member] | Polycom | |||
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, Remaining Amortization Period | 4 years | ||
Customer Relationships [Member] | Polycom | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | 245,100 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 5 months 15 days | ||
Order or Production Backlog [Member] | Polycom | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | 28,100 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 days | ||
Trademarks and Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 3 months 18 days | ||
Trademarks and Trade Names [Member] | Polycom | |||
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] | Polycom | |||
Business Acquisition [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | $ 58,000 | $ 58,000 | |
In Process Research and Development [Member] | |||
Business Acquisition [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 29,892 |
ACQUISITION - Goodwill (Details
ACQUISITION - Goodwill (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 | Jul. 02, 2018 |
Goodwill [Line Items] | |||
Goodwill | $ 796,216 | $ 1,278,380 | |
Polycom | |||
Goodwill [Line Items] | |||
Goodwill | $ 1,264,417 |
ACQUISITION - Pro Forma Informa
ACQUISITION - Pro Forma Information (Details) - Polycom - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 30, 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 | Mar. 28, 2020 | Mar. 30, 2019 |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | $ 213,879 | $ 202,509 |
Short-term investments (due in 1 year or less) | 11,841 | 13,332 |
Total cash, cash equivalents and investments measured at fair value, amortized cost | 226,817 | 215,929 |
Total cash, cash equivalents and investments measured at fair value, gross unrealized gain | 31 | 197 |
Total cash, cash equivalents and investments measured at fair value, gross unrealized loss | (1,128) | (285) |
Total cash, cash equivalents and investments measured at fair value, fair value | 225,720 | 215,841 |
Cash | ||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | 213,879 | 202,509 |
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) | 11,841 | 13,332 |
Debt Securities, Available-for-sale, Amortized Cost | 12,938 | 13,420 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 31 | 197 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,128) | (285) |
Debt Securities, Available-for-sale | $ 11,841 | $ 13,332 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Other long-term liabilities | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation liability, noncurrent | $ 11,700 | $ 13,500 |
Mutual Funds | Short-term investments | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Investments | 11,800 | |
Level 1 | Mutual Funds | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Securities held in a rabbi trust | $ 11,841 | $ 13,332 |
DETAILS OF CERTAIN BALANCE SH_3
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 350,642 | $ 393,416 |
Accounts receivable, net | 246,835 | 337,671 |
Provision for promotions and rebates | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable reserves | (101,666) | (50,789) |
Provision for doubtful accounts and sales allowances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable reserves | $ (2,141) | $ (4,956) |
DETAILS OF CERTAIN BALANCE SH_4
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 97,371 | $ 34,054 |
Work in process | 459 | 274 |
Finished goods | 66,697 | 142,818 |
Inventory, net | $ 164,527 | $ 177,146 |
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. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 46,100 | $ 40,600 | $ 21,100 |
Property, Plant and Equipment, Net [Abstract] | |||
Land | 15,112 | 16,418 | |
Buildings and improvements (useful life: 7-30 years) | 132,153 | 138,000 | |
Machinery and equipment (useful life: 2-10 years) | 170,756 | 158,326 | |
Software (useful life: 5-10 years) | 60,552 | 68,985 | |
Construction in progress | 6,934 | 13,100 | |
Property, plant, and equipment, gross | 385,507 | 394,829 | |
Accumulated depreciation and amortization | (219,649) | (190,003) | |
Property, plant, and equipment, net | 165,858 | 204,826 | |
Unamortized capitalized software costs | 19,100 | 30,600 | |
Amortization expense related to capitalized software costs | $ 10,100 | $ 11,000 | $ 4,900 |
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 | 6 years |
DETAILS OF CERTAIN BALANCE SH_6
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | May 31, 2015 |
Accrued Liabilities [Abstract] | ||||
Employee compensation and benefits | $ 48,153 | $ 68,882 | ||
Accrued interest on 5.50% Senior Notes | 14,617 | 10,425 | ||
Warranty obligation, short-term portion | 12,772 | 15,736 | ||
VAT/Sales Tax Payable | 9,673 | 11,804 | ||
Derivative Liability, Current | 12,840 | 3,275 | ||
Accrued Income Taxes | 20,725 | 5,692 | ||
Discounts Reserve | 0 | 46,894 | ||
Accrued Provision For Returns, Current | 20,146 | 24,632 | ||
Accrued Marketing Costs, Current | 9,708 | 25,369 | ||
Accrued other | 58,475 | 52,806 | ||
Accrued Deferred Revenue, Current | 144,040 | 133,200 | ||
Accrued liabilities | 373,666 | $ 398,715 | ||
5.50% Senior Notes | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.50% | 5.50% | ||
Accrued Liabilities [Member] | ||||
Accrued Liabilities [Abstract] | ||||
Operating Lease, Liability, Current | $ 22,517 |
DETAILS OF CERTAIN BALANCE SH_7
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty obligation at beginning of year | $ 17,984 | $ 9,604 |
Polycom warranty obligation | 0 | 9,095 |
Warranty provision related to products shipped | 18,736 | 19,884 |
Deductions for warranty claims processed | (21,333) | (20,638) |
Adjustments related to preexisting warranties | (126) | 39 |
Warranty obligation at end of year | $ 15,261 | $ 17,984 |
DETAILS OF CERTAIN BALANCE SH_8
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 28, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Payments for operating lease payments | $ 24,200 | |
Operating lease expense | 17,700 | |
Unconditional purchase obligations | 344,500 | |
Sublease income | 5,600 | |
Other Assets [Member] | ||
Debt Instrument [Line Items] | ||
Operating lease, ROU asset | 44,226 | $ 57,300 |
Accrued Liabilities [Member] | ||
Debt Instrument [Line Items] | ||
Operating lease liabilities, current | 22,517 | |
Other Liabilities [Member] | ||
Debt Instrument [Line Items] | ||
Operating lease liabilities, long-term | $ 35,144 |
GOODWILL AND PURCHASED INTANG_3
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment prior to re-segmentation | $ 323,100 | $ 323,088 | ||
Cost of revenues | 1,144,755 | $ 980,396 | $ 417,788 | |
Operating Expenses | 1,356,290 | 803,434 | $ 315,614 | |
Polycom | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | 183,700 | 160,200 | ||
Product | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Long-Lived Assets to be Disposed of | 179,600 | |||
Cost of revenues | 174,200 | $ 1,049,826 | $ 902,625 | |
Operating Expenses | 5,400 | |||
Product | Voice | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment prior to re-segmentation | 47,800 | |||
Product | Video | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment prior to re-segmentation | 112,800 | |||
Other Intangible Assets [Member] | Product | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Long-Lived Assets to be Disposed of | 175,000 | |||
Machinery and equipment | Product | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 4,600 |
GOODWILL AND PURCHASED INTANG_4
GOODWILL AND PURCHASED INTANGIBLE ASSETS GOODWILL AND PURCHASED INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 28, 2020 | Mar. 28, 2020 | |
Segment Reporting Information [Line Items] | ||
Goodwill, measurement period adjustment | $ 1,517 | |
Goodwill, beginning balance | 1,278,380 | |
Impairment prior to re-segmentation | $ (323,100) | (323,088) |
Allocation due to re-segmentation | 0 | |
Impairment after re-segmentation | (323,100) | (323,088) |
Goodwill, ending balance | 796,216 | 796,216 |
Poly Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill, measurement period adjustment | 1,517 | |
Goodwill, beginning balance | 1,278,380 | |
Impairment prior to re-segmentation | (323,088) | |
Allocation due to re-segmentation | (956,809) | |
Impairment after re-segmentation | (323,088) | |
Goodwill, ending balance | 0 | 0 |
Products Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill, beginning balance | 0 | |
Impairment prior to re-segmentation | 0 | |
Allocation due to re-segmentation | 789,561 | |
Impairment after re-segmentation | 0 | |
Goodwill, ending balance | 628,968 | 628,968 |
Services Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill, beginning balance | 0 | |
Impairment prior to re-segmentation | 0 | |
Allocation due to re-segmentation | 167,248 | |
Impairment after re-segmentation | 0 | |
Goodwill, ending balance | $ 167,248 | 167,248 |
Voice And Video | ||
Segment Reporting Information [Line Items] | ||
Impairment prior to re-segmentation | (160,593) | |
Impairment after re-segmentation | (160,593) | |
Voice And Video | Poly Segment | ||
Segment Reporting Information [Line Items] | ||
Impairment prior to re-segmentation | 0 | |
Impairment after re-segmentation | 0 | |
Voice And Video | Products Segment | ||
Segment Reporting Information [Line Items] | ||
Impairment prior to re-segmentation | (160,593) | |
Impairment after re-segmentation | $ (160,593) |
GOODWILL AND PURCHASED INTANG_5
GOODWILL AND PURCHASED INTANGIBLE ASSETS GOODWILL AND PURCHASED INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 315,832 | $ 132,179 |
Purchased intangibles, net | 466,915 | 825,675 |
Finite-Lived Intangible Assets, Net | 466,915 | |
Finite-lived Intangible Assets Acquired | $ 782,747 | 957,854 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 3 months 18 days | |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 427,123 | 566,881 |
Finite-Lived Intangible Assets, Accumulated Amortization | 208,848 | 86,301 |
Finite-Lived Intangible Assets, Net | $ 218,275 | 480,580 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years 3 months 18 days | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 240,024 | 245,481 |
Finite-Lived Intangible Assets, Accumulated Amortization | 84,506 | 36,245 |
Finite-Lived Intangible Assets, Net | $ 155,518 | 209,236 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 115,600 | 115,600 |
Finite-Lived Intangible Assets, Accumulated Amortization | 22,478 | 9,633 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | $ 93,122 | 105,967 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 3 months 18 days | |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 29,892 |
GOODWILL AND PURCHASED INTANG_6
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Future Amortization Expense (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 124,893 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 113,858 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 111,232 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 65,936 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 21,688 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 29,308 |
Finite-Lived Intangible Assets, Net | $ 466,915 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jul. 31, 2016 | Mar. 28, 2020 | Mar. 31, 2019 | Mar. 30, 2019 | |
Loss Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 18,882 | |||
Operating Leases, Future Minimum Payments Receivable, Current | (5,238) | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months, Net | 13,644 | |||
Operating Lease, Weighted Average Remaining Lease Term | 3 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% | |||
Unconditional purchase obligations | $ 344,500 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 17,883 | |||
Operating Leases, Future Minimum Payments Receivable, in Two Years | (5,481) | |||
Operating Leases, Future Minimum Payments, Due in Two Years, Net | 12,402 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 15,239 | |||
Operating Leases, Future Minimum Payments Receivable, in Three Years | (5,645) | |||
Operating Leases, Future Minimum Payments, Due in Three Years, Net | 9,594 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 5,800 | |||
Operating Leases, Future Minimum Payments Receivable, in Four Years | (1,160) | |||
Operating Leases, Future Minimum Payments, Due in Four Years, Net | 4,640 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 1,281 | |||
Operating Leases, Future Minimum Payments Receivable, in Five Years | 0 | |||
Operating Leases, Future Minimum Payments, Due in Five Years, Net | 1,281 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 601 | |||
Operating Leases, Future Minimum Payments Receivable, Thereafter | 0 | |||
Operating Leases, Future Minimum Payments, Due Thereafter, Net | 601 | |||
Operating Leases, Future Minimum Payments Due | 59,686 | |||
Operating Leases, Future Minimum Payments Receivable | (17,524) | |||
Operating Leases, Future Minimum Payments Due, Net | $ 42,162 | |||
GN Netcom, Inc. vs. Plantronics, Inc. | Punitive Sanctions | ||||
Loss Contingencies [Line Items] | ||||
Punitive sanctions awarded against Plantronics, Inc. | $ 4,900 | |||
Liability [Member] | ||||
Loss Contingencies [Line Items] | ||||
2021 | 24,845 | |||
2022 | 21,468 | |||
2023 | 9,256 | |||
2024 | 4,020 | |||
2025 | 2,356 | |||
Thereafter | 1,651 | |||
Total lease payments | 63,596 | |||
Less: Imputed interest | 5,935 | |||
Present value of lease liabilities | $ 57,661 | $ 68,500 |
DEBT (Details)
DEBT (Details) | Feb. 20, 2020USD ($) | Jul. 02, 2018USD ($) | May 31, 2015USD ($) | Mar. 28, 2020USD ($)letter_of_credit | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) |
Debt Disclosure [Line Items] | ||||||
Extinguishment of Debt, Amount | $ 25,000,000 | |||||
Debt Instrument, Number Of Letters Of Credit | letter_of_credit | 5 | |||||
Proceeds from issuance of senior notes, net of issuance costs | $ 0 | $ 1,244,713,000 | $ 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 | $ 25,100,000 | 31,000,000 | ||||
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 | |||||
EBITDA, covenant, amount | $ 150,000,000 | |||||
EBITDA, covenant, percent | 20.00% | |||||
Line Of Credit Facility, Unused Capacity, Percentage Over LIBOR Multiplied By Daily Amount Available Under Facility | 50.00% | |||||
Letters of Credit Outstanding, Amount | $ 1,000,000 | |||||
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% | |||||
Level 2 | Fair Value | Senior notes | 5.50% Senior Notes | ||||||
Debt Disclosure [Line Items] | ||||||
Long term debt, 5.50% Senior Notes | $ 359,140,000 | 503,410,000 | ||||
Level 2 | Carrying Value | Senior notes | 5.50% Senior Notes | ||||||
Debt Disclosure [Line Items] | ||||||
Long term debt, 5.50% Senior Notes | 495,409,000 | 493,959,000 | ||||
Level 2 | Revolving Credit Facility [Member] | Fair Value | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Long term debt, 5.50% Senior Notes | 852,942,000 | 1,152,044,000 | ||||
Level 2 | Revolving Credit Facility [Member] | Carrying Value | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Long term debt, 5.50% Senior Notes | $ 1,126,285,000 | $ 1,146,842,000 | ||||
Debt Instrument, Period, February 20, 2020 through December 26, 2020 [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
EBITDA, covenant, leverage ratio maximum | 3.75 | |||||
EBITDA, covenant, leverage ratio minimum | 2.25 | |||||
Debt Instrument, Period, December 26, 2020 and Thereafter [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
EBITDA, covenant, leverage ratio maximum | 3 | |||||
EBITDA, covenant, leverage ratio minimum | 2.75 | |||||
Debt Instrument, Period, December 29, 2019 through March 28, 2020 [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
EBITDA, covenant, amount | $ 121,000,000 | |||||
Debt Instrument Period, March 29, 2020 through June 27, 2020 [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
EBITDA, covenant, amount | 107,000,000 | |||||
Debt Instrument, Period, June 28, 2020 through December 26, 2020 [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
EBITDA, covenant, amount | $ 88,000,000 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES - Restructuring Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | $ 29,777 | $ 25,033 | $ 1,972 |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 13,275 | ||
Additions | 54,177 | 32,694 | 2,451 |
Payments | (37,269) | (29,463) | (2,942) |
Adjustments | 43,231 | ||
Restructuring Reserve | 11,861 | 13,275 | |
Business Exit Costs | 3,247 | 2,241 | 37 |
Other Restructuring Costs | 10,207 | 5,420 | 16 |
Restructuring Costs and Asset Impairment Charges | 10,946 | 0 | $ 426 |
Employee severance and related benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 5,889 | ||
Adjustments | 29,777 | ||
Restructuring Reserve | $ 7,622 | $ 5,889 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) - Restructuring Liabilities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 11,861 | $ 13,275 |
Plantronics Legacy Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 11,597 | $ 0 |
RESTRUCTURING AND OTHER RELAT_5
RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) (Details) $ in Thousands | 12 Months Ended |
Mar. 28, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 13,275 |
Assumed Liability | (7,376) |
Accruals | 43,231 |
Cash Payments | (37,269) |
Restructuring Reserve | 11,861 |
Employee severance and related benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 5,889 |
Assumed Liability | 0 |
Accruals | 29,777 |
Cash Payments | (28,044) |
Restructuring Reserve | 7,622 |
Facility Closing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 7,376 |
Assumed Liability | (7,376) |
Accruals | 3,247 |
Cash Payments | (746) |
Restructuring Reserve | 2,501 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 10 |
Assumed Liability | 0 |
Accruals | 10,207 |
Cash Payments | (8,479) |
Restructuring Reserve | 1,738 |
Plantronics Legacy Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 42,968 |
Cash Payments | (31,371) |
Restructuring Reserve | 11,597 |
Plantronics Legacy Plan [Member] | Employee severance and related benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 29,621 |
Cash Payments | (22,146) |
Restructuring Reserve | 7,475 |
Plantronics Legacy Plan [Member] | Facility Closing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 3,247 |
Cash Payments | (746) |
Restructuring Reserve | 2,501 |
Plantronics Legacy Plan [Member] | Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 0 |
Assumed Liability | 0 |
Accruals | 10,100 |
Cash Payments | (8,479) |
Restructuring Reserve | 1,621 |
Fiscal Year 2019 Plans [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 13,275 |
Assumed Liability | (7,376) |
Accruals | 263 |
Cash Payments | (5,898) |
Restructuring Reserve | 264 |
Fiscal Year 2019 Plans [Member] | Employee severance and related benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 5,889 |
Assumed Liability | 0 |
Accruals | 156 |
Cash Payments | (5,898) |
Restructuring Reserve | 147 |
Fiscal Year 2019 Plans [Member] | Facility Closing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 7,376 |
Assumed Liability | (7,376) |
Accruals | 0 |
Cash Payments | 0 |
Restructuring Reserve | 0 |
Fiscal Year 2019 Plans [Member] | Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 10 |
Assumed Liability | 0 |
Accruals | 107 |
Cash Payments | 0 |
Restructuring Reserve | $ 117 |
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. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee compensation and benefits | $ 48,153 | $ 68,882 | |
Number of shares reserved under plan (shares) | 18,400,000 | ||
Percent of estimated fair market value at the date of grant (percentage) | 100.00% | ||
Options to purchase shares of common stock (shares) | 351,695 | ||
Unvested restricted stock and restricted stock units (shares) | 2,332,440 | ||
Shares available for future grant (shares) | 2,751,827 | ||
Percentage of fair market value at date of grant (percentage) | 85.00% | ||
Shares issued under the ESPP | 736,184 | 138,133 | 156,355 |
Total intrinsic value | $ 5,800 | $ 9,400 | |
Total cash received from employees as a result of exercises, net of taxes | $ 800 | ||
2002 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved under plan (shares) | 6 | ||
Total cash received from employees as a result of stock issuances under the ESPP, net of taxes | $ 11,900 | ||
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) | 352,000 | 627,000 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted stock and restricted stock units (shares) | 1,911,000 | 1,473,000 | |
Total unrecognized compensation cost | $ 47,300 | ||
Period for recognition for unrecognized compensation cost | 1 year 8 months 12 days | ||
Weighted average grant date fair value (in dollars per share) | $ (33.77) | $ (68) | $ (52.79) |
Total grant date fair value | $ 38,200 | $ 27,800 | $ 27,800 |
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 |
STOCK PLANS AND STOCK-BASED C_4
STOCK PLANS AND STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 57,095 | $ 41,934 | $ 33,959 |
Income tax benefit | (7,369) | (9,891) | (7,880) |
Total stock-based compensation expense, net of tax | 49,726 | 32,043 | 26,079 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,992 | 4,176 | 3,622 |
Research, development and engineering | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 16,785 | 11,699 | 8,071 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 36,318 | 26,059 | 22,266 |
Stock-based compensation expense included in operating expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 53,103 | $ 37,758 | $ 30,337 |
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. 28, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, March 31, 2017 (shares) | 351,695 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, March 31, 2016 (shares) | 627,000 |
Options granted (shares) | 0 |
Options exercised (shares) | (19,000) |
Options forfeited or expired (shares) | (256,000) |
Options outstanding, March 31, 2017 (shares) | 352,000 |
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 | $ 48.66 |
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 | 39.91 |
Weighted average exercise price of options forfeited or expired (in dollars per share) | $ / shares | 51.04 |
Weighted average exercise price of options outstanding at March 31, 2017 (in dollars per share) | $ / shares | $ 47.39 |
Weighted average remaining contractual life of options outstanding at March 31, 2016 (in years) | 2 years 3 months 18 days |
Aggregate intrinsic value of options outstanding at March 31, 2017 | $ | $ 0 |
Vested or expected to vest at March 31, 2017 (in shares) | 352,000 |
Weighted average exercise price of options vested or expected to vest at March 31, 2017 (in dollars per share) | $ / shares | $ 47.39 |
Weighted average remaining contractual life of options vested or expected to vest at March 31, 2017 (in years) | 2 years 3 months 18 days |
Aggregate intrinsic value of options vested or expected to vest at March 31, 2017 | $ | $ 0 |
Exercisable at March 31, 2017 (in shares) | 351,000 |
Weighted average exercise price of options exercisable at March 31, 2017 (in dollars per share) | $ / shares | $ 47.38 |
Weighted average remaining contractual life of options exercisable at March 31, 2017 (in years) | 2 years 3 months 18 days |
Aggregate intrinsic value of options exercisable at March 31, 2017 | $ | $ 0 |
STOCK PLANS AND STOCK-BASED C_6
STOCK PLANS AND STOCK-BASED COMPENSATION Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
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) | 2,332,440 | ||
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) | 1,473,000 | ||
Restricted stock granted (shares) | 1,376,000 | ||
Restricted stock vested (shares) | 648,000 | ||
Restricted stock forfeited (shares) | (290,000) | ||
Non-vested Restricted Stock at March 31, 2017 (shares) | 1,911,000 | 1,473,000 | |
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) | $ 61.64 | ||
Weighted average grant date fair value of restricted stock granted (in dollars per share) | 33.77 | $ 68 | $ 52.79 |
Weighted average grant date fair value of restricted stock vested (in dollars per share) | 58.95 | ||
Weighted average grant date fair value of restricted stock forfeited (in dollars per share) | 53.54 | ||
Weighted average grant date fair value or restricted stock, March 31, 2017 (in dollars per share) | $ 43.71 | $ 61.64 |
STOCK PLANS AND STOCK-BASED C_7
STOCK PLANS AND STOCK-BASED COMPENSATION Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.10% | ||
Risk-free interest rate | 1.70% | ||
Expected dividends | 1.20% | ||
Expected life (in years) | 4 years 7 months 6 days | ||
Weighted-average grant date fair value (in dollars per share) | $ 12.58 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 67.00% | 40.80% | 30.50% |
Risk-free interest rate | 1.70% | 2.40% | 1.50% |
Expected dividends | 3.10% | 1.10% | 1.20% |
Expected life (in years) | 15 days | 15 days | 15 days |
Weighted-average grant date fair value (in dollars per share) | $ 6.64 | $ 14.44 | $ 11.78 |
STOCK PLANS AND STOCK-BASED C_8
STOCK PLANS AND STOCK-BASED COMPENSATION Performance Shares Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,332,440 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 421,000 | 143,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 61.09 | $ 70.53 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 384,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 57.16 | $ 75.43 | $ 63.28 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (20,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 36.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 86,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 65.09 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 12.2 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 1 month 6 days |
COMMON STOCK REPURCHASES (Detai
COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | 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 | 0 | 361,091 | ||
Repurchase of common stock | $ 0 | $ 13,177 | $ 52,948 | |
Repurchase of common stock, average price per share (in dollars per share) | $ 0 | $ 36.49 | ||
Value of shares withheld in satisfaction of employee tax withholding obligations | $ 9,891 | $ 14,070 | $ 11,429 | |
Treasury stock retired (shares) | 0 | 0 | 0 | |
Remaining shares authorized for repurchase under program | 1,369,014 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (13,582) | $ (475) |
Accumulated unrealized gain (loss) on cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated unrealized gain (loss) on cash flow hedges | (18,197) | (5,310) |
Accumulated foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated foreign currency translation adjustments | 4,615 | 4,835 |
Accumulated other comprehensive income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (13,582) | $ (475) |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 |
EMPLOYEE BENEFIT PLANS [Abstract] | ||||
Vesting of matching contributions | 100.00% | |||
Non-elective company contribution as percentage of employee salary | 3.00% | |||
Company match | 50.00% | |||
Company contributions | $ 10.4 | $ 7.1 | $ 4.5 |
FOREIGN CURRENCY DERIVATIVES (D
FOREIGN CURRENCY DERIVATIVES (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Mar. 28, 2020USD ($) | Mar. 28, 2020EUR (€) | Mar. 28, 2020MXN ($) | Mar. 28, 2020GBP (£) | Mar. 30, 2019USD ($) | Mar. 30, 2019EUR (€) | Mar. 30, 2019GBP (£) | Mar. 31, 2018financial_institution | |
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 | $ 36,755 | € 33,200 | ||||||
Derivative, Currency Sold | Sell EUR | |||||||
Derivative, Remaining Maturity | 1 month | |||||||
Foreign Exchange Forward, GBP | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of non-designated hedge | $ 6,584 | £ 5,300 | ||||||
Derivative, Currency Sold | Sell GBP | |||||||
Derivative, Remaining Maturity | 1 month | |||||||
Option contracts | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of non-designated hedge | 67,000 | 18,400 | € 76,800 | £ 25,800 | ||||
Forward contracts | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of non-designated hedge | € 50,200 | £ 18,500 | € 55,400 | £ 18,000 | ||||
Foreign currency swap contract | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of non-designated hedge | $ 0 | $ 149,700 | ||||||
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. 28, 2020 | Mar. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liability, Fair Value, Gross Liability | $ (22,890) | $ (9,483) |
Derivative Asset, Fair Value, Gross Asset | 3,550 | 3,183 |
Derivative Asset [Abstract] | ||
Derivative asset not subject to master netting agreements | 0 | 0 |
Gross Amount of Derivative Assets | 3,550 | 3,183 |
Net Amount of Derivative Assets, subject to master netting agreements | 0 | 2,300 |
Net Amount of Derivative Assets | 0 | 2,300 |
Derivative Liability [Abstract] | ||
Derivative liability not subject to master netting agreements | 0 | 0 |
Gross Amount of Derivative Liabilities | (22,890) | (9,483) |
Net Amount of Derivative Liabilities, subject to master netting agreements | (19,340) | (8,600) |
Net Amount of Derivative Liabilities | (19,340) | (8,600) |
Derivative Asset, Fair Value, Gross Liability | (3,550) | (883) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset | 3,550 | 883 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 |
FOREIGN CURRENCY DERIVATIVES _3
FOREIGN CURRENCY DERIVATIVES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain on foreign exchange contracts | $ 2,665 | $ 7,340 | $ (7,405) |
FOREIGN CURRENCY DERIVATIVES FO
FOREIGN CURRENCY DERIVATIVES FOREIGN CURRENCY DERIVATIVES (Details 3) $ in Thousands, $ in Thousands, € in Millions, £ in Millions | Jul. 30, 2018USD ($) | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 28, 2020EUR (€) | Mar. 28, 2020MXN ($) | Mar. 28, 2020GBP (£) | Mar. 30, 2019EUR (€) | Mar. 30, 2019GBP (£) |
Derivative [Line Items] | |||||||||
Net (gains) losses reclassified into income for interest rate swap | $ (5,004) | $ (2,600) | $ 0 | ||||||
Foreign currency swap contract | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | $ 149,700 | $ 0 | |||||||
Option contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | € 67 | £ 18.4 | € 76.8 | £ 25.8 | |||||
Forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | € 50.2 | £ 18.5 | € 55.4 | £ 18 | |||||
Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | $ 831,000 | ||||||||
Term of contract | 4 years | ||||||||
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. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
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 | $ (7,480) | $ (1,693) | $ (7,480) | $ (1,693) | $ 541 | |||||||
Amount of gain (loss) recognized in OCI (effective portion) | (13,172) | (4,176) | (6,741) | |||||||||
Net revenues | $ 403,043 | $ 384,471 | $ 461,709 | $ 447,767 | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | 1,696,990 | $ 1,696,990 | 1,674,535 | 856,903 |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (1,144,755) | (980,396) | (417,788) | |||||||||
Interest expense | (92,640) | (83,000) | (29,297) | |||||||||
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | 496 | (1,611) | 4,507 | |||||||||
Gain (loss) included in AOCI as of end of period | $ (20,156) | $ (7,480) | (20,156) | $ (20,156) | (7,480) | (1,693) | ||||||
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 | (4,270) | (4,034) | 4,715 | |||||||||
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (238) | (177) | (208) | |||||||||
Interest expense | $ 5,004 | $ (2,600) | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||||||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | ||
Current: | |||||||
Federal | $ 15,794,000 | $ (1,199,000) | $ 82,523,000 | ||||
State | 2,310,000 | 2,550,000 | 4,274,000 | ||||
Foreign | 9,526,000 | (1,550,000) | 6,860,000 | ||||
Total current provision for income taxes | 27,630,000 | (199,000) | 93,657,000 | ||||
Deferred: | |||||||
Federal | (15,606,000) | (37,577,000) | 9,002,000 | ||||
State | 1,939,000 | (4,160,000) | (1,585,000) | ||||
Foreign | (83,364,000) | (8,195,000) | 22,000 | ||||
Total deferred benefit for income taxes | (97,031,000) | (49,932,000) | 7,439,000 | ||||
Income tax expense (benefit) | (69,401,000) | (50,131,000) | 101,096,000 | ||||
Components of income before income taxes | |||||||
United States | (756,095,000) | (179,387,000) | 17,654,000 | ||||
Foreign | (140,488,000) | (6,305,000) | 82,573,000 | ||||
Income (loss) before income taxes | (896,583,000) | (185,692,000) | 100,227,000 | ||||
Reconciliation between statutory federal income taxes and income tax expense | |||||||
Tax expense at statutory rate | (188,282,000) | (38,995,000) | 31,631,000 | ||||
Foreign operations taxed at different rates | 2,497,000 | (4,965,000) | (17,970,000) | ||||
State taxes, net of federal benefit | (14,326,000) | (1,610,000) | 2,689,000 | ||||
Research and development credit | (6,498,000) | (4,288,000) | (2,023,000) | ||||
US tax on foreign earnings | 10,889,000 | 4,398,000 | 0 | ||||
Impact of Tax Act | 0 | (3,728,000) | 87,790,000 | ||||
Goodwill impairment | 101,604,000 | 0 | 0 | ||||
Stock based compensation | 7,369,000 | (1,196,000) | (1,771,000) | ||||
Internal restructuring related benefit | (65,069,000) | 0 | 0 | ||||
Withholding tax | 2,657,000 | 0 | 0 | ||||
Deferred tax valuation allowance | 68,486,000 | 0 | 0 | ||||
Altera accrual | 9,467,000 | 0 | 0 | ||||
Other, net | 1,805,000 | 253,000 | 750,000 | ||||
Income tax expense (benefit) | (69,401,000) | (50,131,000) | 101,096,000 | ||||
Components of Deferred Tax Assets | |||||||
Accruals and other reserves | $ 29,788,000 | $ 24,167,000 | |||||
Deferred compensation | 277,000 | 2,980,000 | |||||
Net operating loss carry forward | 11,810,000 | 16,921,000 | |||||
Stock compensation | 10,867,000 | 9,484,000 | |||||
Interest expense | 10,676,000 | 11,550,000 | |||||
Tax credits | 12,437,000 | 7,072,000 | |||||
Engineering costs | 41,123,000 | 31,015,000 | |||||
Intangible assets | 94,809,000 | 0 | |||||
Other deferred tax assets | 3,826,000 | 635,000 | |||||
Deferred Tax Assets, Valuation Allowance | 81,436,000 | 15,787,000 | |||||
Total deferred tax assets | 134,177,000 | 88,037,000 | |||||
Components of Deferred Tax Liabilities | |||||||
Deferred gains on sales of properties | (1,128,000) | (1,155,000) | |||||
Deferred Tax Liabilities, Intangible Assets | (55,586,000) | (92,544,000) | |||||
Deferred Tax Liabilities, Unearned Revenue | 6,521,000 | (5,054,000) | |||||
Unremitted earnings of certain subsidiaries | (7,123,000) | (17,879,000) | |||||
Fixed asset depreciation | 818,000 | ||||||
Fixed asset depreciation | (7,881,000) | ||||||
Right of use assets | (5,316,000) | 0 | |||||
Total deferred tax liabilities | 61,814,000 | 124,513,000 | |||||
Net deferred tax assets | [1] | $ 72,363,000 | |||||
Deferred Tax Liabilities, Net | [1] | 36,476,000 | |||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||
Balance at beginning of period | 26,458,000 | 12,612,000 | 12,854,000 | ||||
Increase (decrease) of unrecognized tax benefits related to prior fiscal years | 11,226,000 | 254,000 | (1,310,000) | ||||
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 89,000 | 13,329,000 | 0 | ||||
Increase of unrecognized tax benefits related to the current year | 115,824,000 | 2,069,000 | 3,085,000 | ||||
Reductions to unrecognized tax benefits related to settlements with taxing authorities | (995,000) | 0 | (115,000) | ||||
Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations | (295,000) | (1,806,000) | (1,902,000) | ||||
Balance at end of period | 152,307,000 | 26,458,000 | 12,612,000 | ||||
Deferred Tax Assets, Valuation Allowance, Percent | 100.00% | ||||||
Valuation allowance | $ 71,600,000 | ||||||
Deferred Tax Liabilities, Intangible Assets | (55,586,000) | (92,544,000) | |||||
Intangible assets | 94,809,000 | 0 | |||||
Tax penalties accrued | 0 | $ 0 | |||||
Unrecognized tax benefits | 26,458,000 | $ 26,458,000 | $ 12,854,000 | 152,307,000 | 26,458,000 | $ 12,612,000 | |
Interest related to unrecognized tax benefits | 4,000,000 | 2,000,000 | |||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 7,300,000 | ||||||
Net operating loss carry forward | 11,810,000 | 16,921,000 | |||||
Tax credits | 12,437,000 | $ 7,072,000 | |||||
Polycom | |||||||
Components of Deferred Tax Assets | |||||||
Intangible assets | 76,500,000 | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||
Intangible assets | $ 76,500,000 | ||||||
[1] | The Company's deferred tax assets for the Fiscal Year ended March 28, 2020 and March 30, 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. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (677,918) | $ (78,483) | $ (25,910) | $ (44,871) | $ (21,589) | $ (41,734) | $ (86,709) | $ 14,471 | $ (827,182) | $ (135,561) | $ (869) |
Earnings Per Share, Basic and Diluted | |||||||||||
Weighted average common shares-basic | 39,658 | 37,569 | 32,345 | ||||||||
Weighted average common shares-diluted | 39,658 | 37,569 | 32,345 | ||||||||
Basic (in dollars per share) | $ (16.94) | $ (1.97) | $ (0.65) | $ (1.14) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.43 | $ (20.86) | $ (3.61) | $ (0.03) |
Diluted (in dollars per share) | $ (16.94) | $ (1.97) | $ (0.65) | $ (1.14) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.42 | $ (20.86) | $ (3.61) | $ (0.03) |
Potentially dilutive securities excluded from diluted loss per share because their effect is anti-dilutive | 1,740 | 616 | 543 |
REVENUE AND MAJOR CUSTOMERS (De
REVENUE AND MAJOR CUSTOMERS (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 28, 2020USD ($)Customer | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($)Customer | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 28, 2020USD ($)Customer | Mar. 28, 2020USD ($)Customer | Mar. 30, 2019USD ($)Customer | Mar. 31, 2018USD ($)Customer | |
Revenue from External Customer [Line Items] | ||||||||||||
Contract with Customer, Asset, Gross, Current | $ 3,700,000 | $ 3,700,000 | $ 3,700,000 | |||||||||
Revenue, Remaining Performance Obligation, Current | 148,700 | 148,700 | 148,700 | |||||||||
Net revenues | 403,043,000 | $ 384,471,000 | $ 461,709,000 | $ 447,767,000 | $ 468,488,000 | $ 501,669,000 | $ 483,069,000 | $ 221,309,000 | 1,696,990,000 | 1,696,990,000 | $ 1,674,535,000 | $ 856,903,000 |
Contract with Customer, Liability | 208,500,000 | $ 193,900,000 | $ 208,500,000 | 208,500,000 | 193,900,000 | $ 3,000,000 | ||||||
Contract with Customer, Liability, Percentage Of Revenue | 11.60% | 12.30% | 1.00% | |||||||||
Number of major customers, ten percent or greater, net accounts receivable | Customer | 1 | |||||||||||
Capitalized Contract Cost, Gross | 2,700,000 | $ 2,700,000 | 2,700,000 | |||||||||
Revenue, Remaining Performance Obligation, Noncurrent | 64,500 | 64,500 | 64,500 | |||||||||
Revenue, Remaining Performance Obligation, Amount | $ 213,200 | 213,200 | 213,200 | |||||||||
Contract with Customer, Liability, Revenue Recognized | 133,200,000 | |||||||||||
Product | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 1,432,736,000 | 1,510,770,000 | $ 856,903,000 | |||||||||
Product | U.S. | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 708,566,000 | 729,930,000 | 434,053,000 | |||||||||
Product | Europe and Africa | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 398,721,000 | 432,899,000 | 250,762,000 | |||||||||
Product | Asia Pacific | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 221,912,000 | 245,499,000 | 99,779,000 | |||||||||
Product | Americas, excluding U.S. | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 103,537,000 | 102,442,000 | 72,309,000 | |||||||||
Product | Total international net revenues [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 724,170,000 | 780,840,000 | 422,850,000 | |||||||||
Enterprise Headset [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 773,186,000 | 910,699,000 | 856,903,000 | |||||||||
Voice | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 377,059,000 | 344,586,000 | 0 | |||||||||
Video | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 282,491,000 | 255,485,000 | 0 | |||||||||
Service | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 264,254,000 | $ 264,254,000 | 163,765,000 | 0 | ||||||||
Service | U.S. | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 102,103,000 | 59,615,000 | ||||||||||
Service | Europe and Africa | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 66,900,000 | 43,991,000 | ||||||||||
Service | Asia Pacific | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 73,424,000 | 43,382,000 | ||||||||||
Service | Americas, excluding U.S. | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 21,827,000 | 16,777,000 | ||||||||||
Service | Total international net revenues [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | $ 162,151,000 | $ 104,150,000 | $ 0 | |||||||||
Net Revenues [Member] | Customer concentration risk | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Number of major customers, ten percent or greater, net revenues | Customer | 2 | 2 | 1 | |||||||||
Net Revenues [Member] | Customer concentration risk | Ingram Micro [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Concentration risk percentage | 17.30% | 11.40% | 10.90% | |||||||||
Net Revenues [Member] | Customer concentration risk | ScanSource [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Concentration risk percentage | 19.80% | 16.00% | ||||||||||
Accounts receivable | Customer concentration risk | ||||||||||||
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 | Ingram Micro [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Concentration risk percentage | 22.20% | 21.30% | ||||||||||
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 | 3 | |||||||||
Accounts receivable | Customer concentration risk | D&H Distributors [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Concentration risk percentage | 10.90% | 10.90% | ||||||||||
Accounts receivable | Customer concentration risk | ScanSource [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Concentration risk percentage | 17.30% | 19.20% | ||||||||||
Accounts receivable | Customer concentration risk | Synnex Corp. [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Concentration risk percentage | 15.60% | |||||||||||
Minimum | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Revenue From Contracts With Customers, Credit Term | 30 years | |||||||||||
Maximum | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Revenue From Contracts With Customers, Credit Term | 90 years |
SEGMENT REPORTING AND GEOGRAP_3
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Narrative (Details) | 12 Months Ended |
Mar. 28, 2020segment | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Number of operating segments | 2 |
SEGMENT REPORTING AND GEOGRAP_4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Segments Results for Revenue and Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Total segment gross profit as reviewed by CODM | $ (10,328) | $ 143,846 | $ 206,071 | $ 212,646 | $ 216,530 | $ 215,137 | $ 152,629 | $ 109,843 | $ 552,235 | $ 694,139 | $ 439,115 |
Operating Segments | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Total segment revenues as reviewed by CODM | 1,730,943 | 1,759,359 | 856,903 | ||||||||
Total segment gross profit as reviewed by CODM | 898,594 | 928,952 | 444,322 | ||||||||
Operating Segments | Products Segment | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Total segment revenues as reviewed by CODM | 1,434,635 | 1,518,687 | 856,903 | ||||||||
Total segment gross profit as reviewed by CODM | 697,212 | 766,068 | 444,322 | ||||||||
Operating Segments | Services Segment | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Total segment revenues as reviewed by CODM | 296,308 | 240,672 | 0 | ||||||||
Total segment gross profit as reviewed by CODM | $ 201,382 | $ 162,884 | $ 0 |
SEGMENT REPORTING AND GEOGRAP_5
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Segment Revenue and Gross Margin Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||
Depreciation, as reviewed by CODM | $ 15,200 | $ 11,000 | $ 7,600 | |||||||||
Net revenues | $ 403,043 | $ 384,471 | $ 461,709 | $ 447,767 | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | 1,696,990 | $ 1,696,990 | 1,674,535 | 856,903 |
Gross profit | $ (10,328) | $ 143,846 | $ 206,071 | $ 212,646 | $ 216,530 | $ 215,137 | $ 152,629 | $ 109,843 | 552,235 | 694,139 | 439,115 | |
Consumer optimization | (24,115) | (7,386) | (3,456) | |||||||||
Operating Segments | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||
Total segment revenues as reviewed by CODM | 1,730,943 | 1,759,359 | 856,903 | |||||||||
Gross profit | 898,594 | 928,952 | 444,322 | |||||||||
Segment Reconciling Items | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||
Deferred revenue purchase accounting | (33,953) | (84,824) | 0 | |||||||||
Asset impairment | (174,235) | 0 | 0 | |||||||||
Purchase accounting amortization | (122,553) | (114,361) | 0 | |||||||||
Inventory valuation adjustment | 0 | (30,395) | 0 | |||||||||
Consumer optimization | (10,415) | 0 | 0 | |||||||||
Integration and rebranding costs | (1,211) | (1,057) | 0 | |||||||||
Stock-based compensation | (3,992) | (4,176) | (3,622) | |||||||||
Other adjustments | $ 0 | $ 0 | $ (1,585) |
SEGMENT REPORTING AND GEOGRAP_6
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Net Revenues by Major Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | $ 403,043 | $ 384,471 | $ 461,709 | $ 447,767 | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | $ 1,696,990 | $ 1,696,990 | $ 1,674,535 | $ 856,903 |
Voice | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 377,059 | 344,586 | 0 | |||||||||
Video | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | 282,491 | 255,485 | 0 | |||||||||
Service | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | $ 264,254 | $ 264,254 | $ 163,765 | $ 0 |
SEGMENT REPORTING AND GEOGRAP_7
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - External Customers by Major Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||||||||||
Net revenues | $ 403,043 | $ 384,471 | $ 461,709 | $ 447,767 | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | $ 1,696,990 | $ 1,696,990 | $ 1,674,535 | $ 856,903 |
SEGMENT REPORTING AND GEOGRAP_8
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Mar. 30, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 170,459 | $ 204,826 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 76,633 | 101,637 |
Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 17,670 | 19,052 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 39,053 | 40,821 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 699 | 9,074 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 15,089 | 15,738 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 21,315 | $ 18,504 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Scenario, Plan [Member] - Employee severance and related benefits $ in Millions | May 27, 2020USD ($) |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 25 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 35 |
SUPPLEMENTARY QUARTERLY FINAN_3
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Duration of fiscal year | 364 days | 371 days | 364 days | |||||||||
Net revenues | $ 403,043 | $ 384,471 | $ 461,709 | $ 447,767 | $ 468,488 | $ 501,669 | $ 483,069 | $ 221,309 | $ 1,696,990 | $ 1,696,990 | $ 1,674,535 | $ 856,903 |
Gross profit | (10,328) | 143,846 | 206,071 | 212,646 | 216,530 | 215,137 | 152,629 | 109,843 | 552,235 | 694,139 | 439,115 | |
Net loss | $ (677,918) | $ (78,483) | $ (25,910) | $ (44,871) | $ (21,589) | $ (41,734) | $ (86,709) | $ 14,471 | $ (827,182) | $ (135,561) | $ (869) | |
Basic (in dollars per share) | $ (16.94) | $ (1.97) | $ (0.65) | $ (1.14) | $ (0.55) | $ (1.06) | $ (2.21) | $ 0.43 | $ (20.86) | $ (3.61) | $ (0.03) | |
Diluted (in dollars per share) | (16.94) | (1.97) | (0.65) | (1.14) | (0.55) | (1.06) | (2.21) | 0.42 | (20.86) | (3.61) | (0.03) | |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.60 | $ 0.60 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Provision for doubtful accounts and sales allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4,956 | $ 873 | $ 603 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 0 | 3,928 | 0 |
Charged to Expenses or Other Accounts | (2,297) | 4,332 | 784 |
Deductions | (518) | (4,176) | (514) |
Balance at End of Year | 2,141 | 4,956 | 873 |
Provision for returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 0 | 10,225 | 10,541 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 0 | (10,225) | 0 |
Charged to Expenses or Other Accounts | 0 | 0 | 30,472 |
Deductions | 0 | 0 | (30,788) |
Balance at End of Year | 0 | 0 | 10,225 |
Provision for promotions and rebates | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 123,053 | 38,284 | 31,747 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | (224) | 44,136 | 0 |
Charged to Expenses or Other Accounts | 441,250 | 417,422 | 183,929 |
Deductions | (452,705) | (376,789) | (177,392) |
Balance at End of Year | 111,374 | 123,053 | 38,284 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 15,787 | 2,514 | 2,209 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 0 | 8,068 | |
Charged to Expenses or Other Accounts | 71,561 | 7,469 | 981 |
Deductions | (5,912) | (2,264) | (676) |
Balance at End of Year | $ 81,436 | $ 15,787 | $ 2,514 |
Uncategorized Items - form10kfy
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,595,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (89,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (124,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,719,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (89,000) |