COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Oct. 02, 2021 | Oct. 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-12696 | |
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 | 420-3002 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | POLY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,731,559 | |
Entity Central Index Key | 0000914025 | |
Current Fiscal Year End Date | --04-02 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Current assets | ||
Cash and cash equivalents | $ 191,877 | $ 202,560 |
Restricted cash | 0 | 493,908 |
Short-term investments | 16,137 | 14,559 |
Accounts receivable, net | 249,491 | 267,464 |
Inventory, net | 207,620 | 194,405 |
Other current assets | 63,665 | 65,214 |
Total current assets | 728,790 | 1,238,110 |
Property, plant, and equipment, net | 128,347 | 140,875 |
Goodwill | 796,216 | 796,216 |
Purchased intangibles, net | 283,372 | 341,614 |
Deferred tax assets | 206,988 | 95,800 |
Other non-current assets | 56,093 | 51,654 |
Total assets | 2,199,806 | 2,664,269 |
Current liabilities | ||
Accounts payable | 154,855 | 151,244 |
Accrued liabilities | 331,813 | 394,084 |
Long-term Debt, Current Maturities | 0 | 478,807 |
Total current liabilities | 486,668 | 1,024,135 |
Long-term debt, net | 1,498,173 | 1,496,064 |
Long-term income taxes payable | 79,520 | 86,227 |
Other non-current liabilities | 133,212 | 138,609 |
Total liabilities | 2,197,573 | 2,745,035 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity (deficit) | ||
Common stock | 926 | 912 |
Additional paid-in capital | 1,584,088 | 1,556,272 |
Accumulated other comprehensive income (loss) | 3,284 | (3,221) |
Accumulated deficit | (705,259) | (765,233) |
Total stockholders' equity before treasury stock | 883,039 | 788,730 |
Less: Treasury stock, at cost | (880,806) | (869,496) |
Total stockholders' equity (deficit) | 2,233 | (80,766) |
Total liabilities and stockholders' equity (deficit) | $ 2,199,806 | $ 2,664,269 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Net revenues | $ 419,024 | $ 410,969 | $ 850,196 | $ 766,689 |
Cost of revenues | 239,331 | 230,223 | 495,313 | 429,611 |
Gross profit | 179,693 | 180,746 | 354,883 | 337,078 |
Operating expenses | ||||
Research, development, and engineering | 44,407 | 52,148 | 89,873 | 102,177 |
Selling, general, and administrative | 122,297 | 115,605 | 243,031 | 232,250 |
Loss, net from litigation settlements | 0 | 0 | 0 | 17,561 |
Restructuring and other related charges | 2,607 | 6,170 | 31,579 | 35,500 |
Total operating expenses | 169,311 | 173,923 | 364,483 | 387,488 |
Operating income (loss) | 10,382 | 6,823 | (9,600) | (50,410) |
Interest expense | 16,141 | 18,581 | 37,923 | 39,765 |
Other non-operating expense (income), net | 23 | (1,366) | (668) | (1,592) |
Loss before income taxes | (5,782) | (10,392) | (46,855) | (88,583) |
Income tax (benefit) expense | (102,567) | 3,013 | (106,829) | (163) |
Net income (loss) | $ 96,785 | $ (13,405) | $ 59,974 | $ (88,420) |
Per share data | ||||
Basic (in dollars per share) | $ 2.27 | $ (0.33) | $ 1.42 | $ (2.17) |
Diluted (in dollars per share) | $ 2.21 | $ (0.33) | $ 1.37 | $ (2.17) |
Basic (in shares) | 42,543 | 40,970 | 42,302 | 40,715 |
Diluted (in shares) | 43,705 | 40,970 | 43,863 | 40,715 |
Product | ||||
Net revenues | $ 361,383 | $ 347,677 | $ 732,585 | $ 639,135 |
Cost of revenues | 220,169 | 209,261 | 455,365 | 385,876 |
Service | ||||
Net revenues | 57,641 | 63,292 | 117,611 | 127,554 |
Cost of revenues | $ 19,162 | $ 20,962 | $ 39,948 | $ 43,735 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 96,785 | $ (13,405) | $ 59,974 | $ (88,420) |
Unrealized gains on cash flow hedges | ||||
Unrealized cash flow hedge gains (losses) | 234 | (3,006) | 674 | (4,585) |
Net (gains) losses reclassified into net revenues | (639) | 1,652 | 1,133 | 743 |
Net gains reclassified into cost of revenues | (243) | 0 | (479) | 0 |
Net losses reclassified into interest expense | 2,393 | 3,528 | 5,482 | 7,251 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 1,745 | 2,174 | 6,810 | 3,409 |
Income tax (expense) benefit in other comprehensive income | (63) | 259 | (305) | 523 |
Other comprehensive income | 1,682 | 2,433 | 6,505 | 3,932 |
Comprehensive income (loss) | $ 98,467 | $ (10,972) | $ 66,479 | $ (84,488) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 59,974 | $ (88,420) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 76,125 | 84,371 |
Amortization of debt issuance costs | 3,991 | 2,660 |
Stock-based compensation | 21,989 | 19,618 |
Deferred income taxes | (111,167) | (4,056) |
Provision for excess and obsolete inventories | 6,904 | 9,158 |
Restructuring and other related charges | 31,579 | 35,500 |
Cash payments for restructuring charges | (22,782) | (24,459) |
Other operating activities | 17 | (3,162) |
Changes in assets and liabilities | ||
Accounts receivable, net | 17,587 | 7,627 |
Inventory, net | (14,826) | (27,550) |
Current and other assets | 2,408 | (5,945) |
Accounts payable | 3,577 | 32,892 |
Accrued liabilities | (62,022) | 23,025 |
Income taxes | (13,551) | (21,002) |
Net cash (used in) provided by operating activities | (197) | 40,257 |
Cash flows from investing activities | ||
Purchases of short-term investments | (575) | (238) |
Capital expenditures | (12,797) | (10,881) |
Proceeds from sale of property and equipment | 0 | 1,900 |
Other investing activities | (4,000) | 0 |
Net cash used in investing activities | (17,372) | (9,219) |
Cash flows from financing activities | ||
Employees' tax withheld and paid for restricted stock and restricted stock units | (11,310) | (3,049) |
Proceeds from issuances under stock-based compensation plans | 5,841 | 5,731 |
Proceeds from revolving line of credit | 0 | 50,000 |
Repayments of revolving line of credit | 0 | 50,000 |
Repayments of long-term debt | (480,689) | (35,563) |
Net cash used in financing activities | (486,158) | (32,881) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (864) | 1,865 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (504,591) | 22 |
Cash and cash equivalents and restricted cash at beginning of period | 696,468 | 213,879 |
Cash and cash equivalents and restricted cash at end of period | 191,877 | 213,901 |
Cash and cash equivalents | 191,877 | |
Restricted cash | 0 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 191,877 | $ 213,901 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Impact of new accounting standards adoption | $ (82,816) | $ 896 | $ 1,501,340 | $ (13,582) | $ (707,904) | $ (863,566) |
Beginning balance (in shares) at Mar. 28, 2020 | 40,406 | |||||
Stockholders' equity, beginning balance at Mar. 28, 2020 | (82,816) | $ 896 | 1,501,340 | (13,582) | (707,904) | (863,566) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (88,420) | (88,420) | ||||
Net unrealized gains on cash flow hedges, net of tax | 3,932 | 3,932 | ||||
Proceeds from issuances under stock-based compensation plans (in shares) | 648 | |||||
Proceeds from issuances under stock-based compensation plans | 6 | $ 6 | 0 | |||
Repurchase of restricted common stock (in shares) | (10) | |||||
Stock-based compensation | 19,618 | 19,618 | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units (in shares) | 255 | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (3,049) | (3,049) | ||||
Proceeds from ESPP (in shares) | 457 | |||||
Ending balance (in shares) at Sep. 26, 2020 | 41,246 | |||||
Stockholders' equity, ending balance at Sep. 26, 2020 | (145,005) | $ 907 | 1,526,677 | (9,650) | (796,324) | (866,615) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from ESPP | 5,724 | 5 | 5,719 | |||
Impact of new accounting standards adoption | (149,711) | $ 901 | 1,510,695 | (12,083) | (782,919) | (866,305) |
Beginning balance (in shares) at Jun. 27, 2020 | 40,682 | |||||
Stockholders' equity, beginning balance at Jun. 27, 2020 | (149,711) | $ 901 | 1,510,695 | (12,083) | (782,919) | (866,305) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (13,405) | (13,405) | ||||
Net unrealized gains on cash flow hedges, net of tax | 2,433 | 2,433 | ||||
Proceeds from issuances under stock-based compensation plans (in shares) | 129 | |||||
Proceeds from issuances under stock-based compensation plans | 1 | $ 1 | ||||
Stock-based compensation | 10,263 | 10,263 | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units (in shares) | 22 | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (310) | (310) | ||||
Proceeds from ESPP (in shares) | 457 | |||||
Ending balance (in shares) at Sep. 26, 2020 | 41,246 | |||||
Stockholders' equity, ending balance at Sep. 26, 2020 | (145,005) | $ 907 | 1,526,677 | (9,650) | (796,324) | (866,615) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from ESPP | 5,724 | 5 | 5,719 | |||
Impact of new accounting standards adoption | (145,005) | 907 | 1,526,677 | (9,650) | (796,324) | (866,615) |
Impact of new accounting standards adoption | (80,766) | $ 912 | 1,556,272 | (3,221) | (765,233) | (869,496) |
Beginning balance (in shares) at Apr. 03, 2021 | 41,751 | |||||
Stockholders' equity, beginning balance at Apr. 03, 2021 | (80,766) | $ 912 | 1,556,272 | (3,221) | (765,233) | (869,496) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 59,974 | 59,974 | ||||
Net unrealized gains on cash flow hedges, net of tax | 6,505 | 6,505 | ||||
Proceeds from issuances under stock-based compensation plans (in shares) | 742 | |||||
Proceeds from issuances under stock-based compensation plans | 11 | $ 11 | ||||
Stock-based compensation | 21,989 | 21,989 | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units (in shares) | 0 | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | $ (11,310) | (11,310) | ||||
Proceeds from ESPP (in shares) | 228 | |||||
Ending balance (in shares) at Oct. 02, 2021 | 42,721 | 42,721 | ||||
Stockholders' equity, ending balance at Oct. 02, 2021 | $ 2,233 | $ 926 | 1,584,088 | 3,284 | (705,259) | (880,806) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from ESPP | 5,830 | 3 | 5,827 | |||
Impact of new accounting standards adoption | (112,554) | $ 921 | 1,566,688 | 1,602 | (802,044) | (879,721) |
Beginning balance (in shares) at Jul. 03, 2021 | 42,320 | |||||
Stockholders' equity, beginning balance at Jul. 03, 2021 | (112,554) | $ 921 | 1,566,688 | 1,602 | (802,044) | (879,721) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 96,785 | 96,785 | ||||
Net unrealized gains on cash flow hedges, net of tax | 1,682 | 1,682 | ||||
Proceeds from issuances under stock-based compensation plans (in shares) | 173 | |||||
Proceeds from issuances under stock-based compensation plans | 2 | $ 2 | ||||
Stock-based compensation | 11,573 | 11,573 | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units (in shares) | 0 | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | $ (1,085) | (1,085) | ||||
Proceeds from ESPP (in shares) | 228 | |||||
Ending balance (in shares) at Oct. 02, 2021 | 42,721 | 42,721 | ||||
Stockholders' equity, ending balance at Oct. 02, 2021 | $ 2,233 | $ 926 | 1,584,088 | 3,284 | (705,259) | (880,806) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from ESPP | 5,830 | 3 | 5,827 | |||
Impact of new accounting standards adoption | $ 2,233 | $ 926 | $ 1,584,088 | $ 3,284 | $ (705,259) | $ (880,806) |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 6 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION 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 and reportable 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 "POLY." The accompanying unaudited condensed consolidated financial statements of the Company have been prepared on a basis materially consistent with, and should be reviewed in conjunction with, the Company's audited consolidated financial statements as of and for the year ended April 3, 2021 and notes thereto included in the Company's Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission ("SEC") on May 18, 2021 and include all adjustments necessary to fairly state the information set forth herein. Certain information and footnote disclosures normally included in financial statements prepared pursuant to the rules and regulations of the SEC applicable to interim financial information and in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company’s consolidated financial position and the consolidated results of operations and cash flows as of the dates and for the periods presented and are normal and recurring in nature. The Company's reporting currency is United States Dollars ("USD"). The interim period results are subject to variation and are not necessarily indicative of the results of operations to be expected for the full fiscal year. The financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated. The Company’s fiscal year ends on the Saturday closest to the last day of March. The Company’s current fiscal year ends on April 2, 2022 and consists of 52 weeks. The Company's prior fiscal year ended on April 3, 2021 and consisted of 53 weeks. The three and six months ended October 2, 2021 and September 26, 2020 each contain 13 and 26 weeks, respectively. Risks and uncertainties 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 due to the ongoing COVID-19 pandemic. The Company has assessed accounting estimates and other matters, including those using prospective financial information, using information that is reasonably available as of the issuance date of the condensed consolidated financial statements. The accounting estimates and other matters the Company has assessed included, but were not limited to, impairment of goodwill and other long-lived assets, provisions for doubtful accounts, valuation allowances for deferred tax assets, inventory and related reserves, and revenue recognition and related reserves. The Company may make changes to these estimates and judgments, which could result in material impacts to the condensed consolidated 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. The Company relies on contract manufacturers and sourcing of materials from the Asia Pacific region, as well as its owned manufacturing facility in Mexico. The Company has experienced disruptions in both its own supply chain as well as those of its contract manufacturers and suppliers 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 source critical component parts, complete production of its products, fulfill customer orders and adversely affect the ability to meet customer demands as companies utilize work-from-home and hybrid work models. 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 issuance date of these condensed 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. Reclassifications Certain prior year amounts have been reclassified for consistency with current year presentation. Each of the reclassifications was immaterial and had no effect on the Company's results of operations or cash flows. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Oct. 02, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTSRecent accounting pronouncements issued by the Financial Accounting Standards Board ("FASB") did not and are not expected to have a material impact on the Company's financial position, results of operations, or cash flows. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 6 Months Ended |
Oct. 02, 2021 | |
Compensation Related Costs [Abstract] | |
DEFERRED COMPENSATION | DEFERRED COMPENSATION As of October 2, 2021, the Company held investments in mutual funds with a fair value totaling $16.1 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 $16.1 million as of October 2, 2021. As of April 3, 2021, the Company held investments in mutual funds with a fair value totaling $14.6 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 as of April 3, 2021 was $14.6 million. The investments are recorded at fair value in short-term investments in the condensed consolidated balance sheets. The liability is recorded in accrued liabilities and other non-current liabilities in the condensed consolidated balance sheets. |
DETAILS OF CERTAIN BALANCE SHEE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 6 Months Ended |
Oct. 02, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net (in thousands) October 2, 2021 April 3, 2021 Accounts receivable $ 331,906 $ 352,108 Provisions for promotions, rebates, and other (80,448) (82,315) Provisions for doubtful accounts and sales allowances (1,967) (2,329) Accounts receivable, net $ 249,491 $ 267,464 The Company maintains a provision for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company regularly performs credit evaluations of its customers’ financial conditions and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks, and economic conditions that may affect a customer's ability to pay. Inventory, net (in thousands) October 2, 2021 April 3, 2021 Raw materials $ 83,785 $ 87,050 Work in process 4,321 9,511 Finished goods 119,514 97,844 Inventory, net $ 207,620 $ 194,405 Accrued Liabilities (in thousands) October 2, 2021 April 3, 2021 Short-term deferred revenue $ 135,015 $ 141,375 Employee compensation and benefits 59,800 84,318 Operating lease liabilities, current 16,624 21,701 Warranty obligation 15,933 14,774 Provision for returns 15,754 25,133 Accrued other 88,687 106,783 Accrued liabilities $ 331,813 $ 394,084 The Company's warranty obligation is recorded in accrued liabilities and other non-current liabilities in the condensed consolidated balance sheets. Changes in the warranty obligation during the six months ended October 2, 2021 and September 26, 2020 were as follows: Six Months Ended (in thousands) October 2, 2021 September 26, 2020 Warranty obligation at beginning of period $ 17,384 $ 15,261 Warranty provision related to products shipped 8,566 13,488 Deductions for warranty claims processed (13,198) (7,981) Adjustments related to preexisting warranties 6,272 (2,365) Warranty obligation at end of period $ 19,024 $ 18,403 |
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PURCHASED INTANGIBLE ASSETS | PURCHASED INTANGIBLE ASSETS As of October 2, 2021 and April 3, 2021, the carrying value of purchased intangibles, excluding fully amortized assets and goodwill, is as follows: October 2, 2021 April 3, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets Existing technology $ 427,123 $ (309,548) $ 117,575 1.8 years $ 427,123 $ (277,071) $ 150,052 Customer relationships 240,024 (148,082) 91,942 2.8 years 240,024 (128,740) 111,284 Trade name/Trademarks 115,600 (41,745) 73,855 5.8 years 115,600 (35,322) 80,278 Total intangible assets $ 782,747 $ (499,375) $ 283,372 3.2 years $ 782,747 $ (441,133) $ 341,614 During the three and six months ended October 2, 2021, the Company recognized amortization expense of $27.8 million and $58.2 million, respectively. During the three and six months ended September 26, 2020, the Company recognized amortization expense of $31.4 million and $63.8 million, respectively. Expected amortization expense attributable to purchased intangibles for each of the next five years and thereafter as of October 2, 2021 is as follows: (in thousands) Amount 2022 (remaining six months) $ 55,616 2023 111,232 2024 65,936 2025 21,688 2026 12,844 Thereafter 16,056 Total $ 283,372 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 were as follows: (in thousands) Operating Leases (1) 2022 (remaining six months) $ 11,976 2023 10,710 2024 8,834 2025 6,910 2026 5,753 Thereafter 16,093 Total lease payments 60,276 Less: Imputed interest (2) (7,491) Present value of lease liabilities $ 52,785 (1) The weighted average remaining lease term was 4.9 years as of October 2, 2021. (2) The weighted average discount rate was 4.7% as of October 2, 2021. 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, the Company may enter into firm, non-cancelable, and unconditional purchase obligations for inventory, including electronic components, such as semiconductor chips, in addition to service, capital expenditure, and general and administrative activities, for which amounts are not recorded on the condensed consolidated balance sheets. As of October 2, 2021, the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $617.1 million. Other Guarantees and Obligations In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, purchasers of assets or subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of agreements or representations and warranties made by the Company, services to be provided by the Company, intellectual property infringement claims made by third parties or, with respect to the sale of assets of a subsidiary, matters related to the Company's conduct of business and tax matters prior to the sale. From time to time, the Company indemnifies customers against combinations of loss, expense, or liability arising from various triggering events relating to the sale and use of its products and services. In addition, the Company also provides indemnification to customers against claims related to undiscovered liabilities, additional product liability, or environmental obligations. The Company has also entered into indemnification agreements with its directors, officers, and certain other personnel that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers of the Company or certain of its affiliated entities. The Company maintains director and officer liability insurance, which may cover certain liabilities arising from its obligation to indemnify its directors, officers, and certain other personnel in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these agreements due to the limited history of prior claims and the unique facts and circumstances involved in each particular claim. Such indemnification obligations might not be subject to maximum loss clauses. Historically, the Company has not incurred material costs as a result of obligations under these agreements and it has not accrued any liabilities related to such indemnification obligations in the condensed consolidated financial statements. Claims and Litigation On January 23, 2018, FullView, Inc. filed a complaint in the United States District Court of the Northern District of California against Polycom, Inc. alleging infringement of two patents and thereafter filed a similar complaint in connection with the same patents in Canada. Polycom thereafter filed an inter partes reexamination ("IPR") of one of the patents, which was then appealed to Federal Circuit Court and denied. Litigation in both matters in the United States and Canada, respectively, were stayed pending the results of that appeal. Polycom also filed an IPR of the second patent and the U.S. Patent Trial and Appeal Board (“PTAB”) denied institution of the IPR petition. FullView had also initiated arbitration proceedings under a terminated license agreement with Polycom alleging that Polycom had failed to pay certain royalties due under that agreement. The arbitration panel awarded an immaterial amount to FullView. FullView filed a First and Second Amended Complaint and Polycom filed a motion to dismiss. The Court granted Polycom's partial motion to dismiss without prejudice and invalidated one of the patents in suit. Litigation on the remaining patent is ongoing. On June 21, 2018, directPacket Research Inc. filed a complaint alleging patent infringement by Polycom, Inc. in the United States District Court for the Eastern District of Virginia, Norfolk Division. The Court granted Polycom’s Motion to Transfer Venue to the Northern District of California. Polycom filed petitions for Inter Partes Review of the asserted patents which were granted by the PTAB. The District Court matter was stayed pending resolution of the IPRs. Oral argument was heard on the IPRs on October 20, 2020. On January 11, 2021, the PTAB issued final written decisions invalidating two of the asserted patents. The remaining claims of the third patent were unasserted against the Company. On February 12, 2021, directPacket filed a notice of appeal to the United States Court of Appeals for the Federal Circuit with respect to the PTAB’s final written decision regarding the ’588 patent. On March 15, 2021, Polycom filed a notice of appeal to the United States Court of Appeals for the Federal Circuit with respect to the PTAB’s final written decision regarding the ’978 patent. Both parties have filed their respective appellate briefs and litigation is ongoing. On November 15, 2019, Felice Bassuk, individually and on behalf of others similarly situated, filed a complaint against the Company, its former CEO, Joseph Burton, its CFO, Charles Boynton, and its former CFO, Pamela Strayer, alleging various securities law violations. The Company disputes the allegations. The Court appointed lead plaintiff and lead counsel and renamed the action “In re Plantronics, Inc. Securities Litigation” on February 13, 2020. Plaintiffs filed the amended complaint on June 5, 2020 and the Company’s Motion to Dismiss the Amended Complaint on August 7, 2020. Plaintiffs filed their opposition on October 2, 2020 and the Company replied on November 16, 2020. The hearing scheduled for January 13, 2021 was vacated and on March 29, 2021, the Court issued its order granting the Company’s motion to dismiss, but allowing the Plaintiffs leave to amend their complaint. On April 13, 2021, pursuant to the parties’ mutual agreement, the Court issued its order granting a stipulation and scheduling order which provides the plaintiffs until June 15, 2021 (subsequently extended to June 22, 2021) to consider whether or not to file a second amended complaint, and if filed, allowing defendants until August 16, 2021 to file a motion to dismiss, with plaintiffs’ opposition to such motion due on or before September 30, 2021, and with defendants’ reply to be filed on or before November 1, 2021. The Plaintiff filed its second amended complaint on June 22, 2021 and the Company filed its Motion to Dismiss on September 7, 2021. The parties are awaiting the court's ruling. On December 17, 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 disputes the allegations. The Company filed a Motion to Dismiss and the Court granted the such Motion with leave to amend as to defendants He, Chung and Williams, granted the Motion to Compel Arbitration for defendant Williams and granted in part and denied in part the Motion to Dismiss by defendants Puorro and the Company. Cisco filed an Amended Complaint and the defendants moved to dismiss or strike portions of the Amended Complaint. The Court granted in part and denied in part the Motion to Dismiss. On September 10, 2020, the Company filed a Motion for Protective Order and a Motion to Strike and Challenge the Sufficiency of Cisco’s Trade Secret Disclosure. On December 21, 2020, the Court granted in part and denied in part such Motions. On December 30, 2020, Cisco filed a motion for leave to file a Motion for Reconsideration. On January 11, 2021 the Company filed its opposition. The Court issued its Case Management and Pretrial order setting a settlement conference which occurred on April 1, 2021. During such mediation conference, the parties agreed to stay the District Court case for 30 days to pursue settlement of pending claims. This 30 day period has run, and the parties were unable to reach settlement. The Texas arbitration proceeding and the district court litigation is on-going and discovery continues, with depositions due in the latter by early December. On August 13, 2021, Mr. He settled with Cisco pursuant to which he will be permanently enjoined and forever prohibited from receiving, using, and/or distributing Cisco Confidential Business Information except in limited circumstances. The arbitration proceeding in Texas is currently scheduled to occur on or about November 1, 2021. On July 22, 2020, Koss Corporation filed a complaint alleging patent infringement by the Company and Polycom, Inc. in the United States District Court for the Western District of Texas, Waco Division. The Company answered the Complaint on October 1, 2020 disputing the claims. On December 18, 2020, the Company filed a Motion to Transfer Venue to the Northern District of California. On January 29, 2021, the plaintiff amended its infringement contentions to add new accused products. On February 12, 2021, the plaintiff filed its opposition to the Motion to Transfer. On May 20, 2021, the judge granted the Company’s Motion to Transfer Venue to the Northern District of California. A claim construction hearing is scheduled for April 25, 2022. Discovery and litigation is ongoing. 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 | 6 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The carrying value of the Company's outstanding debt as of October 2, 2021 and April 3, 2021 was as follows: (in thousands) October 2, 2021 April 3, 2021 4.75% Senior Notes $ 494,361 $ 493,985 5.50% Senior Notes — 478,807 Term loan facility 1,003,812 1,002,079 As of October 2, 2021 and April 3, 2021, the net unamortized discount, premium, and debt issuance costs on the Company's outstanding debt were $18.6 million and $22.6 million, respectively. 4.75% Senior Notes On March 4, 2021, the Company issued $500.0 million aggregate principal amount of 4.75% Senior Notes. The 4.75% Senior Notes mature on March 1, 2029 and bear interest at a rate of 4.75% per annum, payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2021. The Company received proceeds of $493.9 million from issuance of the 4.75% Senior Notes, net of issuance costs of $6.1 million, which are presented in the condensed consolidated balance sheets as a reduction to the outstanding amount payable and are being amortized to interest expense using the straight-line method, which approximates the effective interest method for this debt, over the term of the 4.75% Senior Notes. A portion of the proceeds was used to repay the outstanding principal of the 5.50% Senior Notes on May 17, 2021. The Company may redeem all or part of the 4.75% Senior Notes, upon not less than a 15-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 40% Using Cash Proceeds From An Equity Offering (3) Make-Whole (1) Premium (2) Date Specific Price 4.75% Senior Notes Prior to March 1, 2024 On or after March 1, 2024 Prior to March 1, 2024 104.75% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium, which means, the greater of (i) 1.0% of the principal or (ii) the excess of the present value of the redemption price at March 1, 2024 plus interest through March 1, 2024 over the principal amount. (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 40% of the aggregate principal amount of the respective note being redeemed and at least 50% of the aggregate principal amount remains outstanding immediately after any such redemption (unless the notes are redeemed or repurchased substantially concurrently). In addition, upon the occurrence of certain change of control triggering events, the Company may be required to repurchase the 4.75% Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The 4.75% Senior Notes contain restrictive covenants that, among other things, limit the ability of the Company and its restricted subsidiaries to incur or guarantee additional indebtedness, make certain investments and other restricted payments, transfer and sell assets, create liens, enter into transactions with affiliates, and engage in mergers, consolidations, or sales of assets. 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 being amortized to interest expense over the term of the 5.50% Senior Notes using the straight-line method, which approximates the effective interest method for this debt. 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. On May 17, 2021, the Company used a portion of the proceeds from the 4.75% Senior Notes to redeem the outstanding principal and accrued interest of the 5.50% Senior Notes of $493.9 million. Term Loan Facility In connection with the acquisition of Polycom 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 has paid the full amount of term debt principal due prior to maturity. 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 lien 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. 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 condensed consolidated balance sheets 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 also 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 October 2, 2021, the Company was in compliance with all 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 consolidated financial statements for any annual period in which the Company generates Excess Cash (as defined in the Credit Agreement). In accordance with the terms of the Credit Agreem ent, the Company did not generate Excess Cash during Fiscal Year 2021 and therefore is not required to make any debt repayments in Fiscal Year 2022. D uring the three and six months ended October 2, 2021, the Compa ny d id not prepay any aggregate principal amount of the term loan facility. As of October 2, 2021, the Company had five letters of credit outstanding under the revolving credit facility for a total of $1.4 million. |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES | 6 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES | RESTRUCTURING AND OTHER RELATED CHARGES Summary of Restructuring Plans Fiscal Year 2022 Restructuring Plan During the six months ended October 2, 2021, the Company committed to actions to reduce expenses to enable strategic investments in revenue growth. The costs incurred to date under this plan include severance benefits related to headcount reductions in the Company's global workforce and facility related charges due to the closure or consolidation of offices. Fiscal Year 2021 Restructuring Plan During Fiscal Year 2021, the Company committed to additional actions to reduce expenses and align its overall cost structure to better align with projected revenue levels as well as reorganize its executive management to align to its new Chief Executive Officer's management structure. The costs incurred to date under this plan include severance benefits related to headcount reductions in the Company's global workforce and facility related charges due to the closure or consolidation of leased offices. Legacy Restructuring Plans In connection with the Polycom acquisition, in Fiscal Years 2019 and 2020 the Company initiated actions to rationalize post-acquisition operations and realign its cost structure. These actions included streamlining the global workforce, closure or consolidation of leased offices and distribution centers, consumer product portfolio optimization efforts, and legal entity rationalization. The following table summarizes the restructuring and other related charges recognized in the Company's condensed consolidated statements of operations: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Severance $ 101 $ 881 $ 19,401 $ 23,192 Facility (32) (156) (503) 1,642 Other (1) 808 867 4,911 2,308 Total cash charges 877 1,592 23,809 27,142 Non-cash charges (2) 1,730 4,578 7,770 8,358 Total restructuring and other related charges $ 2,607 $ 6,170 $ 31,579 $ 35,500 (1) Other costs primarily represent associated legal and advisory services. (2) Non-cash charges primarily represent accelerated depreciation due to the closure or consolidation of facilities. The Company's restructuring liabilities as of October 2, 2021 are as follows: (in thousands) As of April 3, 2021 Accruals (1) Cash Payments As of October 2, 2021 FY 2022 Plan Severance $ — $ 20,458 $ (12,854) $ 7,604 Facility — — — — Other — 4,939 (4,508) 431 Total FY 2022 Plan $ — $ 25,397 $ (17,362) $ 8,035 FY 2021 Plans Severance $ 6,039 $ (1,082) $ (3,246) $ 1,711 Facility 913 83 (351) 645 Other 186 (28) (150) 8 Total FY 2021 Plans $ 7,138 $ (1,027) $ (3,747) $ 2,364 Legacy Plans Severance $ 1,222 $ 25 $ (545) $ 702 Facility 3,281 (586) (1,128) 1,567 Other — — — — Total Legacy Plans $ 4,503 $ (561) $ (1,673) $ 2,269 Total Severance $ 7,261 $ 19,401 $ (16,645) $ 10,017 Facility 4,194 (503) (1,479) 2,212 Other 186 4,911 (4,658) 439 Grand Total $ 11,641 $ 23,809 $ (22,782) $ 12,668 (1) Excludes non-cash charges of $7.8 million recorded in restructuring and other related charges in the condensed consolidated statements of operations for the six months ended October 2, 2021. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss), net of tax, are as follows: (in thousands) October 2, 2021 April 3, 2021 Accumulated unrealized loss on cash flow hedges $ (1,331) $ (7,836) Accumulated foreign currency translation adjustments 4,615 4,615 Accumulated other comprehensive income (loss) $ 3,284 $ (3,221) |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Foreign Currency Derivatives The Company's foreign currency derivatives consist primarily of foreign currency forward 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 as a result of credit risk was equal to the carrying value of the Company's derivative assets as of October 2, 2021 and April 3, 2021. 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 to mitigate credit risk in derivative transactions, when possible. 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 October 2, 2021, the Company had International Swaps and Derivatives Association ("ISDA") agreements with five applicable banks and financial institutions which contained netting provisions. The Company has elected to present the fair value of derivative assets and liabilities within the Company's condensed consolidated balance sheets on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. Derivatives not subject to master netting agreements are not eligible for net presentation. As of October 2, 2021 and April 3, 2021, 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 October 2, 2021 Gross Amount of Derivative Assets Presented in the Condensed 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 $ 6,119 $ (3,253) $ — $ 2,866 Derivatives not subject to master netting agreements — — Total $ 6,119 $ 2,866 Gross Amount of Derivative Liabilities Presented in the Condensed 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 $ (7,235) $ 3,253 $ — $ (3,982) Derivatives not subject to master netting agreements — — Total $ (7,235) $ (3,982) As of April 3, 2021 Gross Amount of Derivative Assets Presented in the Condensed 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 $ 5,106 $ (5,106) $ — $ — Derivatives not subject to master netting agreements — — Total $ 5,106 $ — Gross Amount of Derivative Liabilities Presented in the Condensed 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 $ (11,700) $ 5,106 $ — $ (6,594) Derivatives not subject to master netting agreements — — Total $ (11,700) $ (6,594) The gross fair value of the Company's outstanding derivative contracts at October 2, 2021 and April 3, 2021 was as follows: (in thousands) October 2, 2021 April 3, 2021 Derivative assets (1) Non-designated hedges $ 644 $ 2,864 Cash flow hedges 3,147 2,242 Interest rate swap 2,328 — Total derivative assets $ 6,119 $ 5,106 Derivative liabilities (2) Non-designated hedges $ 26 $ 18 Cash flow hedges 636 1,819 Interest rate swap 6,573 9,863 Accrued interest 46 102 Total derivative liabilities $ 7,281 $ 11,802 (1) Short-term derivative assets are recorded in other current assets and long-term derivative assets are recorded in other non-current assets on the condensed consolidated balance sheets. As of October 2, 2021 , the portion of derivative assets classified as long-term was $2.4 million. As of April 3, 2021 , the portion of derivative assets classified as long-term was $0.1 million. (2) Short-term derivative liabilities are recorded in accrued liabilities and long-term derivative liabilities are recorded in other non-current liabilities on the condensed consolidated balance sheets. As of October 2, 2021, the portion of derivative liabilities classified as long-term was $0.1 million. As of April 3, 2021, the portion of derivative liabilities classified as long-term was $2.0 million. Non-Designated Hedges As of October 2, 2021, the Company had foreign currency forward contracts denominated in Euro ("EUR") and Great Britain 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, accounts receivables, and accounts payables. The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate USD equivalent at October 2, 2021: (in thousands) Local Currency USD Equivalent Position Maturity EUR € 20,600 $ 23,889 Sell EUR 1 month GBP £ 9,000 $ 12,197 Sell GBP 1 month Effect of Non-Designated Derivative Contracts on the Condensed Consolidated Statements of Operations The effect of non-designated derivative contracts on results of operations recognized in other non-operating expense (income), net in the condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Gain (loss) on foreign exchange contracts $ 1,676 $ (1,815) $ 1,190 $ (2,733) Cash Flow Hedges Costless Collars The Company hedges a portion of the forecast ed EUR and GBP denominated revenues with costless collars. On a monthly basis, the Company enters into option contracts with a six The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: October 2, 2021 April 3, 2021 (in millions) EUR GBP EUR GBP Option contracts €92.5 £19.7 €91.4 £18.1 Forward contracts €91.9 £18.5 €76.0 £15.6 The Company will reclassify all related amounts in accumulated 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 October 2, 2021, and April 3, 2021, the Company had foreign currency swap contracts of approximately MXN 640.2 million an d MXN 564.3 million, respectively. The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at October 2, 2021: (in thousands) Local Currency USD Equivalent Position Maturity MXN $ 640,243 $ 30,613 Buy MXN Monthly over a twelve month period The Company will reclassify all related amounts in accumulated other comprehensive income into earnings within the next twelve months. Interest Rate Swap On June 15, 2021, the Company entered into a three-year amortizing interest rate swap agreement with Bank of America, N.A. The swap has an initial notional amount of $680 million and matures on July 31, 2024. The swap involves the receipt of floating-rate interest payments for fixed interest rate payments at a rate of 0.39% over the life of the agreement. Additionally, on July 30, 2018, the Company entered into a four-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 the interest rate swaps as cash flow hedges. The purpose of the swaps is to hedge against changes in cash flows (interest payments) attributable to fluctuations in the Company's variable rate debt. The swaps are 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 swaps. Changes in the fair value of the interest rate swaps are recorded to other comprehensiv e income an d are reclassified to interest expense over the life of the underlying debt as interest is accrued. During the six months ended October 2, 2021, the Company reclassified into interest expense $5.5 million and had a $4.2 million unrealized loss on its interest rate swap derivatives designated as cash flow hedges. The Company will reclassify approximately $6.6 million in accumulated other comprehensive income into earnings within the next twelve months. Effect of Designated Derivative Contracts on Accumulated Other Comprehensive Income (Loss) and Condensed Consolidated Statements of Operations The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and six months ended October 2, 2021 and September 26, 2020: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Loss included in accumulated other comprehensive income (loss), as of beginning of period $ (4,997) $ (18,921) $ (10,062) $ (20,156) Gain (loss) recognized in other comprehensive income (loss) 234 (3,006) 674 (4,585) Amount of (gain)/loss reclassified from accumulated other comprehensive income (loss) into net revenues (639) 1,652 1,133 743 Amount of gain reclassified from accumulated other comprehensive income (loss) into cost of revenues (243) — (479) — Amount of loss reclassified from accumulated other comprehensive income (loss) into interest expense 2,393 3,528 5,482 7,251 Total amount of loss reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations 1,511 5,180 6,136 7,994 Loss included in accumulated other comprehensive income (loss), as of end of period $ (3,252) $ (16,747) $ (3,252) $ (16,747) |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENTS Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. In determining fair value, we use various valuation approaches. The hierarchy of those valuation approaches is in three levels based on the reliability of inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following is a summary of the hierarchy levels: • Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. • Level 3: Inputs are unobservable for the asset or liability. Carrying Value at Fair Value at October 2, 2021 (in thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 191,877 $ 191,877 $ — $ — Short-term investments 16,137 16,137 — — Derivative instruments 6,119 — 6,119 — Liabilities: Derivative instruments $ 7,281 $ — $ 7,281 $ — Long-term debt 1,498,173 — 1,464,626 — Carrying Value at Fair Value at April 3, 2021 (in thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 202,560 $ 202,560 $ — $ — Restricted cash 493,908 493,908 — — Short-term investments 14,559 14,559 — — Derivative instruments 5,106 — 5,106 — Liabilities: Derivative instruments $ 11,802 $ — $ 11,802 $ — Current portion of long-term debt 478,807 — 482,669 — Long-term debt 1,496,064 — 1,497,323 — Valuation Techniques • Cash and cash equivalents, short-term investments, and restricted cash are classified within Level 1 of the fair value hierarchy. Financial instruments classified as Level 1 are based on quoted market prices in active markets. The types of financial instruments the Company classifies within Level 1 include bank deposits, money market securities, and publicly traded mutual funds. Restricted cash represents the cash held in trust and restricted for use to redeem the 5.50% Senior Notes. Refer to Note 7, Debt . • The Company estimates the fair value of derivatives using pricing models that use observable market inputs. The significant Level 2 inputs used in the valuation of derivatives include spot rates and forward rates. These inputs were obtained from pricing services, broker quotes, and other sources. • The fair value of long-term debt was determined based on inputs that were observable in the market, including the trading price, when available. As of October 2, 2021 and April 3, 2021, the Company's short-term investments consisted of assets related to its deferred compensation plans. 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, see Note 3, Deferred Compensation . The Company did not incur any material realized or unrealized gains or losses in the three months ended October 2, 2021 or September 26, 2020 or the six months ended October 2, 2021. The Company recognized an unrealized gain of $1.8 million during the six months ended September 26, 2020. There were no transfers between fair value measurement levels during the three and six months ended October 2, 2021 or September 26, 2020. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company and its subsidiaries are subject to taxation in the U.S. and in various foreign and state jurisdictions. The Company's income tax benefit is determined using an estimated annual effective tax rate, adjusted for discrete items arising during the period. The effective tax rates for the three and six months ended October 2, 2021 were 1,773.9% and 228.0%, respectively. The effective tax rates for the three and six months ended September 26, 2020 were (29.0)% and 0.2%, respectively. Income tax benefit for the three and six months ended October 2, 2021 was $(102.6) million and $(106.8) million, respectively. Income tax expense (benefit) for the three and six months ended September 26, 2020 was $3.0 million and $(0.2) million, respectively. During the three months ended October 2, 2021, the Company transferred certain non-Americas intellectual property (“IP”) rights between our wholly-owned subsidiaries ("IP transfer") to align with our evolving business operations, resulting in the derecognition of a deferred tax asset of $91.1 million and the recognition of a new deferred tax asset of $204.3 million, which represents the book and tax basis difference in the IP and was based on the fair value of the IP, in the respective subsidiaries. This results in a net discrete deferred tax benefit of $113.2 million. The impact of the IP transfer to net cash flows on the condensed consolidated statements of cash flows during the six months ended October 2, 2021 was not material. The difference between the effective tax rate and the U.S. federal statutory rate primarily relates to the changes in uncertain tax positions, U.S. and foreign income mix, and the valuation allowance on the U.S. federal and state deferred tax assets (DTAs) that continues to be maintained as of October 2, 2021, offset by the discrete tax benefit associated with the IP transfer between wholly-owned subsidiaries. A significant portion of the Company's DTAs relate to the aforementioned IP transfer between wholly-owned subsidiaries. At this time, based on evidence currently available, the Company considers it more likely than not that it will have sufficient taxable income in the future that will allow the Company to realize the DTAs; however, failure to generate sufficient future taxable income could result in some or all DTAs not being utilized in the future. If the Company is unable to generate sufficient future taxable income, a substantial valuation allowance to reduce the Company's DTAs may be required. The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. Significant judgment is required in evaluating our uncertain tax positions and determining the Company's provision for income taxes. During the three months ended October 2, 2021, the amount of gross unrecognized tax benefits decreased by $127.9 million. As of October 2, 2021, the Company has $21.5 million of unrecognized tax benefits, all of which could result in a reduction of the Company’s effective tax rate if recognized. |
COMPUTATION OF EARNINGS (LOSS)
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE | 6 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE | COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share is calculated by dividing net income (loss) 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. The potentially dilutive effect of outstanding stock options and restricted stock has been excluded from the computation of diluted loss per share in periods where the Company had a net loss, as their effect is anti-dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and six months ended October 2, 2021 and September 26, 2020: Three Months Ended Six Months Ended (in thousands, except per share data) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Numerator: Net income (loss) $ 96,785 $ (13,405) $ 59,974 $ (88,420) Denominator: Weighted-average basic shares outstanding 42,543 40,970 42,302 40,715 Weighted-average diluted shares outstanding 43,705 40,970 43,863 40,715 Basic earnings (loss) per common share $ 2.27 $ (0.33) $ 1.42 $ (2.17) Diluted earnings (loss) per common share $ 2.21 $ (0.33) $ 1.37 $ (2.17) Potentially dilutive securities excluded from diluted earnings (loss) per common share because their effect is anti-dilutive 752 1,153 330 1,337 |
REVENUE AND MAJOR CUSTOMERS
REVENUE AND MAJOR CUSTOMERS | 6 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND MAJOR CUSTOMERS | REVENUE AND MAJOR CUSTOMERS The Company designs, builds, and markets collaboration solutions which combine legendary audio expertise and powerful video and conferencing capabilities to create endpoints that power meaningful human connections and provide solutions that make life easier when they work together and with our partners' services. The Company’s major product categories are Headsets, Video, Voice, and Services. Headsets include wired and wireless communication headsets; Voice includes open SIP and native ecosystem desktop phones as well as conference room phones; Video includes video conferencing solutions and peripherals, such as cameras, speakers, and microphones. The broad portfolio of Services include video interoperability, hardware and support for our solutions and hardware devices, as well as professional, hosted, and managed services that are grounded in our deep expertise aimed at helping customers achieve their goals for collaboration. The Company's cloud management and analytics software enables IT administrators to configure and update firmware, monitor device usage, troubleshoot, and gain a deep understanding of user behavior. All of the Company's solutions are designed to integrate seamlessly with the platform and services of our customers choice 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. 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 computers. 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 three and six months ended October 2, 2021 and September 26, 2020: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net revenues Headsets $ 185,780 $ 202,840 $ 357,973 $ 377,590 Voice 59,705 43,785 121,003 89,606 Video 115,898 101,052 253,609 171,939 Services 57,641 63,292 117,611 127,554 Total net revenues $ 419,024 $ 410,969 $ 850,196 $ 766,689 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 total net revenues for the three and six months ended October 2, 2021 and September 26, 2020. The following table presents total net revenues by geography: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net product revenues U.S. $ 186,068 $ 159,532 $ 362,039 $ 303,821 Europe, Middle East, and Africa 97,341 114,875 208,801 192,493 Asia Pacific 57,294 52,548 115,564 97,979 Americas, excluding U.S. 20,680 20,722 46,181 44,842 Total international net product revenues 175,315 188,145 370,546 335,314 Total net product revenues $ 361,383 $ 347,677 $ 732,585 $ 639,135 Net service revenues U.S. $ 22,092 $ 24,245 $ 44,850 $ 48,237 Europe, Middle East, and Africa 14,420 15,524 29,081 32,012 Asia Pacific 17,015 19,021 35,502 37,854 Americas, excluding U.S. 4,114 4,502 8,178 9,451 Total international net service revenues 35,549 39,047 72,761 79,317 Total net service revenues $ 57,641 $ 63,292 $ 117,611 $ 127,554 Total net revenues $ 419,024 $ 410,969 $ 850,196 $ 766,689 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. As of October 2, 2021 and April 3, 2021, the Company's deferred revenue balance was $202.4 million and $213.8 million, respectively. During the three months ended October 2, 2021, the Company recognized $50.7 million in total net revenues that were recorded 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 October 2, 2021: (in thousands) Current Non-Current Total Unsatisfied (or partially unsatisfied) performance obligations $ 135,182 $ 67,195 $ 202,377 Sales, value add, and other taxes collected concurrently 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 has considered a constraint accordingly. Provisions for sales returns are presented within accrued liabilities in the condensed 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 to offset, in which case they are presented within accrued liabilities on the condensed consolidated balance sheets. See Note 4, 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 selling, general, and administrative expense on a straight-line basis. The capitalized amount of incremental and recoverable costs of obtaining contracts and related amortization was not material as of and for the three and six months ended October 2, 2021. |
SEGMENT REPORTING AND GEOGRAPHI
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | 6 Months Ended |
Oct. 02, 2021 | |
Segments, Geographical Areas [Abstract] | |
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | SEGMENT REPORTING AND GEOGRAPHIC INFORMATION The Company's Chief Executive Officer is 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. The Products reportable segment includes the Headsets, Voice and Video product lines. The Services reportable 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. Purchase accounting amortization: Represents the amortization of purchased intangible assets 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. Stock compensation expense: Represents the non-cash expense associated with the Company's issuance of common stock and stock-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 condensed consolidated GAAP results: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Segment revenues, as reviewed by CODM Products $ 361,530 $ 347,970 $ 732,909 $ 639,756 Services 58,548 67,236 119,601 136,252 Total segment revenues, as reviewed by CODM $ 420,078 $ 415,206 $ 852,510 $ 776,008 Segment gross profit, as reviewed by CODM Products $ 158,759 $ 156,627 $ 312,307 $ 290,869 Services 39,386 46,274 79,653 92,517 Total segment gross profit, as reviewed by CODM $ 198,145 $ 202,901 $ 391,960 $ 383,386 Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Total segment revenues, as reviewed by CODM $ 420,078 $ 415,206 $ 852,510 $ 776,008 Deferred revenue purchase accounting (1,054) (4,237) (2,314) (9,319) GAAP net revenues $ 419,024 $ 410,969 $ 850,196 $ 766,689 Total segment gross profit, as reviewed by CODM (1) $ 198,145 $ 202,901 $ 391,960 $ 383,386 Purchase accounting amortization (16,238) (17,176) (32,477) (35,414) Deferred revenue purchase accounting (1,054) (4,237) (2,314) (9,319) Stock-based compensation (1,160) (742) (2,286) (1,575) GAAP gross profit $ 179,693 $ 180,746 $ 354,883 $ 337,078 (1) Includes depreciation expense of $4.0 million and $3.6 million for the three months ended October 2, 2021 and September 26, 2020, respectively. Includes depreciation expense of $7.6 million and $6.9 million for the six months ended October 2, 2021 and September 26, 2020, respectively. |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The accompanying unaudited condensed consolidated financial statements of the Company have been prepared on a basis materially consistent with, and should be reviewed in conjunction with, the Company's audited consolidated financial statements as of and for the year ended April 3, 2021 and notes thereto included in the Company's Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission ("SEC") on May 18, 2021 and include all adjustments necessary to fairly state the information set forth herein. Certain information and footnote disclosures normally included in financial statements prepared pursuant to the rules and regulations of the SEC applicable to interim financial information and in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company’s consolidated financial position and the consolidated results of operations and cash flows as of the dates and for the periods presented and are normal and recurring in nature. The Company's reporting currency is United States Dollars ("USD"). The interim period results are subject to variation and are not necessarily indicative of the results of operations to be expected for the full fiscal year. The financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated. |
Fiscal period | The Company’s fiscal year ends on the Saturday closest to the last day of March. The Company’s current fiscal year ends on April 2, 2022 and consists of 52 weeks. The Company's prior fiscal year ended on April 3, 2021 and consisted of 53 weeks. The three and six months ended October 2, 2021 and September 26, 2020 each contain 13 and 26 weeks, respectively. |
Concentration Risk, Credit Risk, Policy | Risks and uncertainties 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 due to the ongoing COVID-19 pandemic. The Company has assessed accounting estimates and other matters, including those using prospective financial information, using information that is reasonably available as of the issuance date of the condensed consolidated financial statements. The accounting estimates and other matters the Company has assessed included, but were not limited to, impairment of goodwill and other long-lived assets, provisions for doubtful accounts, valuation allowances for deferred tax assets, inventory and related reserves, and revenue recognition and related reserves. The Company may make changes to these estimates and judgments, which could result in material impacts to the condensed consolidated 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. The Company relies on contract manufacturers and sourcing of materials from the Asia Pacific region, as well as its owned manufacturing facility in Mexico. The Company has experienced disruptions in both its own supply chain as well as those of its contract manufacturers and suppliers 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 source critical component parts, complete production of its products, fulfill customer orders and adversely affect the ability to meet customer demands as companies utilize work-from-home and hybrid work models. 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 issuance date of these condensed 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. Reclassifications Certain prior year amounts have been reclassified for consistency with current year presentation. Each of the reclassifications was immaterial and had no effect on the Company's results of operations or cash flows. |
Fair Value Measurement | Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. In determining fair value, we use various valuation approaches. The hierarchy of those valuation approaches is in three levels based on the reliability of inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following is a summary of the hierarchy levels: • Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. • Level 3: Inputs are unobservable for the asset or liability. |
DETAILS OF CERTAIN BALANCE SH_2
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net (in thousands) October 2, 2021 April 3, 2021 Accounts receivable $ 331,906 $ 352,108 Provisions for promotions, rebates, and other (80,448) (82,315) Provisions for doubtful accounts and sales allowances (1,967) (2,329) Accounts receivable, net $ 249,491 $ 267,464 |
Inventory, net | Inventory, net (in thousands) October 2, 2021 April 3, 2021 Raw materials $ 83,785 $ 87,050 Work in process 4,321 9,511 Finished goods 119,514 97,844 Inventory, net $ 207,620 $ 194,405 |
Accrued liabilities | Accrued Liabilities (in thousands) October 2, 2021 April 3, 2021 Short-term deferred revenue $ 135,015 $ 141,375 Employee compensation and benefits 59,800 84,318 Operating lease liabilities, current 16,624 21,701 Warranty obligation 15,933 14,774 Provision for returns 15,754 25,133 Accrued other 88,687 106,783 Accrued liabilities $ 331,813 $ 394,084 |
Changes in the warranty obligation | Changes in the warranty obligation during the six months ended October 2, 2021 and September 26, 2020 were as follows: Six Months Ended (in thousands) October 2, 2021 September 26, 2020 Warranty obligation at beginning of period $ 17,384 $ 15,261 Warranty provision related to products shipped 8,566 13,488 Deductions for warranty claims processed (13,198) (7,981) Adjustments related to preexisting warranties 6,272 (2,365) Warranty obligation at end of period $ 19,024 $ 18,403 |
PURCHASED INTANGIBLE ASSETS (Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | As of October 2, 2021 and April 3, 2021, the carrying value of purchased intangibles, excluding fully amortized assets and goodwill, is as follows: October 2, 2021 April 3, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets Existing technology $ 427,123 $ (309,548) $ 117,575 1.8 years $ 427,123 $ (277,071) $ 150,052 Customer relationships 240,024 (148,082) 91,942 2.8 years 240,024 (128,740) 111,284 Trade name/Trademarks 115,600 (41,745) 73,855 5.8 years 115,600 (35,322) 80,278 Total intangible assets $ 782,747 $ (499,375) $ 283,372 3.2 years $ 782,747 $ (441,133) $ 341,614 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | xpected amortization expense attributable to purchased intangibles for each of the next five years and thereafter as of October 2, 2021 is as follows: (in thousands) Amount 2022 (remaining six months) $ 55,616 2023 111,232 2024 65,936 2025 21,688 2026 12,844 Thereafter 16,056 Total $ 283,372 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 were as follows: (in thousands) Operating Leases (1) 2022 (remaining six months) $ 11,976 2023 10,710 2024 8,834 2025 6,910 2026 5,753 Thereafter 16,093 Total lease payments 60,276 Less: Imputed interest (2) (7,491) Present value of lease liabilities $ 52,785 (1) The weighted average remaining lease term was 4.9 years as of October 2, 2021. (2) The weighted average discount rate was 4.7% as of October 2, 2021. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt at Fair Value | The carrying value of the Company's outstanding debt as of October 2, 2021 and April 3, 2021 was as follows: (in thousands) October 2, 2021 April 3, 2021 4.75% Senior Notes $ 494,361 $ 493,985 5.50% Senior Notes — 478,807 Term loan facility 1,003,812 1,002,079 |
Summary of Debt Redemption | The Company may redeem all or part of the 4.75% Senior Notes, upon not less than a 15-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 40% Using Cash Proceeds From An Equity Offering (3) Make-Whole (1) Premium (2) Date Specific Price 4.75% Senior Notes Prior to March 1, 2024 On or after March 1, 2024 Prior to March 1, 2024 104.75% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium, which means, the greater of (i) 1.0% of the principal or (ii) the excess of the present value of the redemption price at March 1, 2024 plus interest through March 1, 2024 over the principal amount. (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. |
RESTRUCTURING AND OTHER RELAT_2
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the restructuring and other related charges recognized in the Company's condensed consolidated statements of operations: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Severance $ 101 $ 881 $ 19,401 $ 23,192 Facility (32) (156) (503) 1,642 Other (1) 808 867 4,911 2,308 Total cash charges 877 1,592 23,809 27,142 Non-cash charges (2) 1,730 4,578 7,770 8,358 Total restructuring and other related charges $ 2,607 $ 6,170 $ 31,579 $ 35,500 (1) Other costs primarily represent associated legal and advisory services. (2) Non-cash charges primarily represent accelerated depreciation due to the closure or consolidation of facilities. The Company's restructuring liabilities as of October 2, 2021 are as follows: (in thousands) As of April 3, 2021 Accruals (1) Cash Payments As of October 2, 2021 FY 2022 Plan Severance $ — $ 20,458 $ (12,854) $ 7,604 Facility — — — — Other — 4,939 (4,508) 431 Total FY 2022 Plan $ — $ 25,397 $ (17,362) $ 8,035 FY 2021 Plans Severance $ 6,039 $ (1,082) $ (3,246) $ 1,711 Facility 913 83 (351) 645 Other 186 (28) (150) 8 Total FY 2021 Plans $ 7,138 $ (1,027) $ (3,747) $ 2,364 Legacy Plans Severance $ 1,222 $ 25 $ (545) $ 702 Facility 3,281 (586) (1,128) 1,567 Other — — — — Total Legacy Plans $ 4,503 $ (561) $ (1,673) $ 2,269 Total Severance $ 7,261 $ 19,401 $ (16,645) $ 10,017 Facility 4,194 (503) (1,479) 2,212 Other 186 4,911 (4,658) 439 Grand Total $ 11,641 $ 23,809 $ (22,782) $ 12,668 (1) Excludes non-cash charges of $7.8 million recorded in restructuring and other related charges in the condensed consolidated statements of operations for the six months ended October 2, 2021. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss), net of tax, are as follows: (in thousands) October 2, 2021 April 3, 2021 Accumulated unrealized loss on cash flow hedges $ (1,331) $ (7,836) Accumulated foreign currency translation adjustments 4,615 4,615 Accumulated other comprehensive income (loss) $ 3,284 $ (3,221) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Contracts | The gross fair value of the Company's outstanding derivative contracts at October 2, 2021 and April 3, 2021 was as follows: (in thousands) October 2, 2021 April 3, 2021 Derivative assets (1) Non-designated hedges $ 644 $ 2,864 Cash flow hedges 3,147 2,242 Interest rate swap 2,328 — Total derivative assets $ 6,119 $ 5,106 Derivative liabilities (2) Non-designated hedges $ 26 $ 18 Cash flow hedges 636 1,819 Interest rate swap 6,573 9,863 Accrued interest 46 102 Total derivative liabilities $ 7,281 $ 11,802 (1) Short-term derivative assets are recorded in other current assets and long-term derivative assets are recorded in other non-current assets on the condensed consolidated balance sheets. As of October 2, 2021 , the portion of derivative assets classified as long-term was $2.4 million. As of April 3, 2021 , the portion of derivative assets classified as long-term was $0.1 million. (2) Short-term derivative liabilities are recorded in accrued liabilities and long-term derivative liabilities are recorded in other non-current liabilities on the condensed consolidated balance sheets. As of October 2, 2021, the portion of derivative liabilities classified as long-term was $0.1 million. As of April 3, 2021, the portion of derivative liabilities classified as long-term was $2.0 million. |
Notional Value of Outstanding Foreign Exchange Currency Contracts | The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate USD equivalent at October 2, 2021: (in thousands) Local Currency USD Equivalent Position Maturity EUR € 20,600 $ 23,889 Sell EUR 1 month GBP £ 9,000 $ 12,197 Sell GBP 1 month The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: October 2, 2021 April 3, 2021 (in millions) EUR GBP EUR GBP Option contracts €92.5 £19.7 €91.4 £18.1 Forward contracts €91.9 £18.5 €76.0 £15.6 The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at October 2, 2021: (in thousands) Local Currency USD Equivalent Position Maturity MXN $ 640,243 $ 30,613 Buy MXN Monthly over a twelve month period |
Effect of Non-Designated Derivative Contracts Recognized in Interest and Other Income, Net | The effect of non-designated derivative contracts on results of operations recognized in other non-operating expense (income), net in the condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Gain (loss) on foreign exchange contracts $ 1,676 $ (1,815) $ 1,190 $ (2,733) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and six months ended October 2, 2021 and September 26, 2020: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Loss included in accumulated other comprehensive income (loss), as of beginning of period $ (4,997) $ (18,921) $ (10,062) $ (20,156) Gain (loss) recognized in other comprehensive income (loss) 234 (3,006) 674 (4,585) Amount of (gain)/loss reclassified from accumulated other comprehensive income (loss) into net revenues (639) 1,652 1,133 743 Amount of gain reclassified from accumulated other comprehensive income (loss) into cost of revenues (243) — (479) — Amount of loss reclassified from accumulated other comprehensive income (loss) into interest expense 2,393 3,528 5,482 7,251 Total amount of loss reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations 1,511 5,180 6,136 7,994 Loss included in accumulated other comprehensive income (loss), as of end of period $ (3,252) $ (16,747) $ (3,252) $ (16,747) |
Offsetting Financial Assets Under Master Netting Agreements | Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties As of October 2, 2021 Gross Amount of Derivative Assets Presented in the Condensed 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 $ 6,119 $ (3,253) $ — $ 2,866 Derivatives not subject to master netting agreements — — Total $ 6,119 $ 2,866 Gross Amount of Derivative Liabilities Presented in the Condensed 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 $ (7,235) $ 3,253 $ — $ (3,982) Derivatives not subject to master netting agreements — — Total $ (7,235) $ (3,982) As of April 3, 2021 Gross Amount of Derivative Assets Presented in the Condensed 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 $ 5,106 $ (5,106) $ — $ — Derivatives not subject to master netting agreements — — Total $ 5,106 $ — Gross Amount of Derivative Liabilities Presented in the Condensed 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 $ (11,700) $ 5,106 $ — $ (6,594) Derivatives not subject to master netting agreements — — Total $ (11,700) $ (6,594) |
Offsetting Financial Liabilities Under Master Netting Agreements | Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties As of October 2, 2021 Gross Amount of Derivative Assets Presented in the Condensed 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 $ 6,119 $ (3,253) $ — $ 2,866 Derivatives not subject to master netting agreements — — Total $ 6,119 $ 2,866 Gross Amount of Derivative Liabilities Presented in the Condensed 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 $ (7,235) $ 3,253 $ — $ (3,982) Derivatives not subject to master netting agreements — — Total $ (7,235) $ (3,982) As of April 3, 2021 Gross Amount of Derivative Assets Presented in the Condensed 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 $ 5,106 $ (5,106) $ — $ — Derivatives not subject to master netting agreements — — Total $ 5,106 $ — Gross Amount of Derivative Liabilities Presented in the Condensed 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 $ (11,700) $ 5,106 $ — $ (6,594) Derivatives not subject to master netting agreements — — Total $ (11,700) $ (6,594) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | Carrying Value at Fair Value at October 2, 2021 (in thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 191,877 $ 191,877 $ — $ — Short-term investments 16,137 16,137 — — Derivative instruments 6,119 — 6,119 — Liabilities: Derivative instruments $ 7,281 $ — $ 7,281 $ — Long-term debt 1,498,173 — 1,464,626 — Carrying Value at Fair Value at April 3, 2021 (in thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 202,560 $ 202,560 $ — $ — Restricted cash 493,908 493,908 — — Short-term investments 14,559 14,559 — — Derivative instruments 5,106 — 5,106 — Liabilities: Derivative instruments $ 11,802 $ — $ 11,802 $ — Current portion of long-term debt 478,807 — 482,669 — Long-term debt 1,496,064 — 1,497,323 — |
COMPUTATION OF EARNINGS (LOSS_2
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and six months ended October 2, 2021 and September 26, 2020: Three Months Ended Six Months Ended (in thousands, except per share data) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Numerator: Net income (loss) $ 96,785 $ (13,405) $ 59,974 $ (88,420) Denominator: Weighted-average basic shares outstanding 42,543 40,970 42,302 40,715 Weighted-average diluted shares outstanding 43,705 40,970 43,863 40,715 Basic earnings (loss) per common share $ 2.27 $ (0.33) $ 1.42 $ (2.17) Diluted earnings (loss) per common share $ 2.21 $ (0.33) $ 1.37 $ (2.17) Potentially dilutive securities excluded from diluted earnings (loss) per common share because their effect is anti-dilutive 752 1,153 330 1,337 |
REVENUE AND MAJOR CUSTOMERS (Ta
REVENUE AND MAJOR CUSTOMERS (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenues by Product Group | The following table disaggregates revenues by major product category for the three and six months ended October 2, 2021 and September 26, 2020: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net revenues Headsets $ 185,780 $ 202,840 $ 357,973 $ 377,590 Voice 59,705 43,785 121,003 89,606 Video 115,898 101,052 253,609 171,939 Services 57,641 63,292 117,611 127,554 Total net revenues $ 419,024 $ 410,969 $ 850,196 $ 766,689 |
Net Revenues by Geography | The following table presents total net revenues by geography: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net product revenues U.S. $ 186,068 $ 159,532 $ 362,039 $ 303,821 Europe, Middle East, and Africa 97,341 114,875 208,801 192,493 Asia Pacific 57,294 52,548 115,564 97,979 Americas, excluding U.S. 20,680 20,722 46,181 44,842 Total international net product revenues 175,315 188,145 370,546 335,314 Total net product revenues $ 361,383 $ 347,677 $ 732,585 $ 639,135 Net service revenues U.S. $ 22,092 $ 24,245 $ 44,850 $ 48,237 Europe, Middle East, and Africa 14,420 15,524 29,081 32,012 Asia Pacific 17,015 19,021 35,502 37,854 Americas, excluding U.S. 4,114 4,502 8,178 9,451 Total international net service revenues 35,549 39,047 72,761 79,317 Total net service revenues $ 57,641 $ 63,292 $ 117,611 $ 127,554 Total net revenues $ 419,024 $ 410,969 $ 850,196 $ 766,689 |
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 October 2, 2021: (in thousands) Current Non-Current Total Unsatisfied (or partially unsatisfied) performance obligations $ 135,182 $ 67,195 $ 202,377 |
SEGMENT REPORTING AND GEOGRAP_2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables) | 6 Months Ended |
Oct. 02, 2021 | |
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 condensed consolidated GAAP results: Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Segment revenues, as reviewed by CODM Products $ 361,530 $ 347,970 $ 732,909 $ 639,756 Services 58,548 67,236 119,601 136,252 Total segment revenues, as reviewed by CODM $ 420,078 $ 415,206 $ 852,510 $ 776,008 Segment gross profit, as reviewed by CODM Products $ 158,759 $ 156,627 $ 312,307 $ 290,869 Services 39,386 46,274 79,653 92,517 Total segment gross profit, as reviewed by CODM $ 198,145 $ 202,901 $ 391,960 $ 383,386 Three Months Ended Six Months Ended (in thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Total segment revenues, as reviewed by CODM $ 420,078 $ 415,206 $ 852,510 $ 776,008 Deferred revenue purchase accounting (1,054) (4,237) (2,314) (9,319) GAAP net revenues $ 419,024 $ 410,969 $ 850,196 $ 766,689 Total segment gross profit, as reviewed by CODM (1) $ 198,145 $ 202,901 $ 391,960 $ 383,386 Purchase accounting amortization (16,238) (17,176) (32,477) (35,414) Deferred revenue purchase accounting (1,054) (4,237) (2,314) (9,319) Stock-based compensation (1,160) (742) (2,286) (1,575) GAAP gross profit $ 179,693 $ 180,746 $ 354,883 $ 337,078 (1) Includes depreciation expense of $4.0 million and $3.6 million for the three months ended October 2, 2021 and September 26, 2020, respectively. Includes depreciation expense of $7.6 million and $6.9 million for the six months ended October 2, 2021 and September 26, 2020, respectively. |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Apr. 03, 2021 |
Short-term investments | Mutual Funds | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Investments | $ 16.1 | |
Other long-term liabilities | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation liability, noncurrent | $ 16.1 | $ 14.6 |
Level 1 | Mutual Funds | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Available-for-sale Securities, fair value | $ 14.6 |
DETAILS OF CERTAIN BALANCE SH_3
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, net (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Accounts receivable, net [Line Items] | ||
Accounts receivable | $ 331,906 | $ 352,108 |
Accounts receivable, net | 249,491 | 267,464 |
Provisions for promotions, rebates, and other | ||
Accounts receivable, net [Line Items] | ||
Accounts receivable, reserves | (80,448) | (82,315) |
Provisions for doubtful accounts and sales allowances | ||
Accounts receivable, net [Line Items] | ||
Accounts receivable, reserves | $ (1,967) | $ (2,329) |
DETAILS OF CERTAIN BALANCE SH_4
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Inventory, Net [Abstract] | ||
Raw materials | $ 83,785 | $ 87,050 |
Work in process | 4,321 | 9,511 |
Finished goods | 119,514 | 97,844 |
Inventory, net | $ 207,620 | $ 194,405 |
DETAILS OF CERTAIN BALANCE SH_5
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Accrued Liabilities [Abstract] | ||
Short-term deferred revenue | $ 135,015 | $ 141,375 |
Employee compensation and benefits | 59,800 | 84,318 |
Operating lease liabilities, current | 16,624 | 21,701 |
Warranty obligation | 15,933 | 14,774 |
Provision for returns | 15,754 | 25,133 |
Accrued other | 88,687 | 106,783 |
Accrued liabilities | $ 331,813 | $ 394,084 |
DETAILS OF CERTAIN BALANCE SH_6
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Warranty Obligation (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Changes in the Warranty Obligation [Roll Forward] | ||
Warranty obligation at beginning of period | $ 17,384 | $ 15,261 |
Warranty provision related to products shipped | 8,566 | 13,488 |
Deductions for warranty claims processed | (13,198) | (7,981) |
Adjustments related to preexisting warranties | 6,272 | (2,365) |
Warranty obligation at end of period | $ 19,024 | $ 18,403 |
PURCHASED INTANGIBLE ASSETS - C
PURCHASED INTANGIBLE ASSETS - Carrying Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 02, 2021 | Apr. 03, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 782,747 | $ 782,747 |
Accumulated Amortization | (499,375) | (441,133) |
Net Carrying Amount | $ 283,372 | 341,614 |
Weighted Average Remaining Useful Life | 3 years 2 months 12 days | |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 427,123 | 427,123 |
Accumulated Amortization | (309,548) | (277,071) |
Net Carrying Amount | $ 117,575 | 150,052 |
Weighted Average Remaining Useful Life | 1 year 9 months 18 days | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 240,024 | 240,024 |
Accumulated Amortization | (148,082) | (128,740) |
Net Carrying Amount | $ 91,942 | 111,284 |
Weighted Average Remaining Useful Life | 2 years 9 months 18 days | |
Trade name/Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 115,600 | 115,600 |
Accumulated Amortization | (41,745) | (35,322) |
Net Carrying Amount | $ 73,855 | $ 80,278 |
Weighted Average Remaining Useful Life | 5 years 9 months 18 days |
PURCHASED INTANGIBLE ASSETS - N
PURCHASED INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 27.8 | $ 31.4 | $ 58.2 | $ 63.8 |
PURCHASED INTANGIBLE ASSETS - A
PURCHASED INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining nine months) | $ 55,616 | |
2023 | 111,232 | |
2024 | 65,936 | |
2025 | 21,688 | |
2026 | 12,844 | |
Thereafter | 16,056 | |
Net Carrying Amount | $ 283,372 | $ 341,614 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Loss Contingencies [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% |
Unconditional purchase obligations | $ 617,100 |
Liability | |
Loss Contingencies [Line Items] | |
2022 (remaining six months) | 11,976 |
2023 | 10,710 |
2024 | 8,834 |
2025 | 6,910 |
2026 | 5,753 |
Thereafter | 16,093 |
Total lease payments | 60,276 |
Less: imputed interest | (7,491) |
Operating lease, liability | $ 52,785 |
DEBT (Details)
DEBT (Details) | May 17, 2021USD ($) | Mar. 04, 2021USD ($) | Dec. 26, 2020 | Feb. 20, 2020USD ($) | Jul. 02, 2018USD ($) | Mar. 31, 2021USD ($) | May 31, 2015USD ($) | Dec. 26, 2020 | Oct. 02, 2021USD ($)letter_of_credit | Apr. 03, 2021USD ($) |
Debt Disclosure [Line Items] | ||||||||||
Unamortized discount (premium) and debt issuance costs, net | $ 18,600,000 | $ 22,600,000 | ||||||||
Percentage multiplied by funded amount | 0.25% | |||||||||
Interest rate in excess of applicable rate | 2.00% | |||||||||
Number of letters of credit | letter_of_credit | 5 | |||||||||
5.50% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Principal amount repurchased | $ 493,900,000 | |||||||||
Senior Notes | 5.50% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Stated interest rate of debt instrument | 5.50% | |||||||||
Principal amount of debt issued | $ 500,000,000 | |||||||||
Proceeds from issuance of senior notes, net of issuance costs | 488,400,000 | |||||||||
Debt issuance costs | $ 11,600,000 | |||||||||
Senior Notes | 4.75% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Stated interest rate of debt instrument | 4.75% | |||||||||
Principal amount of debt issued | $ 500,000,000 | |||||||||
Proceeds from issuance of senior notes, net of issuance costs | $ 493,900,000 | |||||||||
Debt issuance costs | $ 6,100,000 | |||||||||
Repurchase price, percentage of principal amount | 101.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 104.75% | |||||||||
Secured Debt | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Unamortized discount (premium) and debt issuance costs, net | $ 30,000,000 | |||||||||
Principal amount of debt issued | 1,275,000,000 | |||||||||
Long-term debt | 1,245,000,000 | |||||||||
Minimum | Senior Notes | 4.75% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt redemption notice period | 15 days | |||||||||
Debt Instrument, Redemption Price, Percentage | 50.00% | |||||||||
Maximum | Senior Notes | 4.75% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt redemption notice period | 60 days | |||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 40.00% | |||||||||
Level 2 | Carrying Value | Senior Notes | 5.50% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Long-term debt | $ 0 | 478,807,000 | ||||||||
Level 2 | Carrying Value | Senior Notes | 4.75% Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Long-term debt | 494,361,000 | 493,985,000 | ||||||||
Revolving Credit Facility | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Maximum borrowing capacity of unsecured revolving credit facility | $ 100,000,000 | |||||||||
Percentage over LIBOR multiplied by daily amount available under facility | 50.00% | |||||||||
Depreciation and amortization, amount | $ 150,000,000 | |||||||||
Depreciation and amortization, percent | 20.00% | |||||||||
Letters of credit outstanding, amount | 1,400,000 | |||||||||
Revolving Credit Facility | Minimum | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Commitment fee percentage | 0.20% | |||||||||
Revolving Credit Facility | Maximum | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Commitment fee percentage | 0.30% | |||||||||
Revolving Credit Facility | Level 2 | Carrying Value | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Long-term debt | $ 1,003,812,000 | $ 1,002,079,000 | ||||||||
Federal Funds Rate | Secured Debt | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Spread for interest rate | 0.50% | |||||||||
London Interbank Offered Rate (LIBOR) | Secured Debt | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Spread for interest rate | 1.00% | |||||||||
Debt Instrument, Period, February 20, 2020 Through December 26, 2020 | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Leverage ratio, maximum | 3.75 | |||||||||
Interest coverage ratio, minimum | 2.25 | |||||||||
Debt Instrument, Period, December 26, 2020 and Thereafter | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Leverage ratio, maximum | 3 | |||||||||
Interest coverage ratio, minimum | 2.75 | |||||||||
Debt Instrument, Period, December 29, 2019 Through March 28, 2020 | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Depreciation and amortization, amount | $ 121,000,000 | |||||||||
Debt Instrument Period, March 29, 2020 Through June 27, 2020 | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Depreciation and amortization, amount | 107,000,000 | |||||||||
Debt Instrument, Period, June 28, 2020 Through December 26, 2020 | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Depreciation and amortization, amount | $ 88,000,000 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES - Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Severance | $ 101 | $ 881 | $ 19,401 | $ 23,192 |
Facility | (32) | (156) | (503) | 1,642 |
Other | 808 | 867 | 4,911 | 2,308 |
Total cash charges | 877 | 1,592 | 23,809 | 27,142 |
Non-cash charges | 1,730 | 4,578 | 7,770 | 8,358 |
Restructuring and other related charges | $ 2,607 | $ 6,170 | $ 31,579 | $ 35,500 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | $ 11,641 | |||
Accruals | 23,809 | |||
Cash Payments | (22,782) | |||
Restructuring reserve ending balance | $ 12,668 | 12,668 | ||
Restructuring and other related charges | 2,607 | $ 6,170 | 31,579 | $ 35,500 |
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 7,261 | |||
Accruals | 19,401 | |||
Cash Payments | (16,645) | |||
Restructuring reserve ending balance | 10,017 | 10,017 | ||
Facility | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 4,194 | |||
Accruals | (503) | |||
Cash Payments | (1,479) | |||
Restructuring reserve ending balance | 2,212 | 2,212 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 186 | |||
Accruals | 4,911 | |||
Cash Payments | (4,658) | |||
Restructuring reserve ending balance | 439 | 439 | ||
FY 2021 Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 7,138 | |||
Accruals | (1,027) | |||
Cash Payments | (3,747) | |||
Restructuring reserve ending balance | 2,364 | 2,364 | ||
FY 2021 Plans | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 6,039 | |||
Accruals | (1,082) | |||
Cash Payments | (3,246) | |||
Restructuring reserve ending balance | 1,711 | 1,711 | ||
FY 2021 Plans | Facility | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 913 | |||
Accruals | 83 | |||
Cash Payments | (351) | |||
Restructuring reserve ending balance | 645 | 645 | ||
FY 2021 Plans | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 186 | |||
Accruals | (28) | |||
Cash Payments | (150) | |||
Restructuring reserve ending balance | 8 | 8 | ||
Legacy Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 4,503 | |||
Accruals | (561) | |||
Cash Payments | (1,673) | |||
Restructuring reserve ending balance | 2,269 | 2,269 | ||
Legacy Plans | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 1,222 | |||
Accruals | 25 | |||
Cash Payments | (545) | |||
Restructuring reserve ending balance | 702 | 702 | ||
Legacy Plans | Facility | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 3,281 | |||
Accruals | (586) | |||
Cash Payments | (1,128) | |||
Restructuring reserve ending balance | 1,567 | 1,567 | ||
Legacy Plans | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 0 | |||
Accruals | 0 | |||
Cash Payments | 0 | |||
Restructuring reserve ending balance | 0 | 0 | ||
FY 2022 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 0 | |||
Accruals | 25,397 | |||
Cash Payments | (17,362) | |||
Restructuring reserve ending balance | 8,035 | 8,035 | ||
FY 2022 Plan | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 0 | |||
Accruals | 20,458 | |||
Cash Payments | (12,854) | |||
Restructuring reserve ending balance | 7,604 | 7,604 | ||
FY 2022 Plan | Facility | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 0 | |||
Accruals | 0 | |||
Cash Payments | 0 | |||
Restructuring reserve ending balance | 0 | 0 | ||
FY 2022 Plan | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 0 | |||
Accruals | 4,939 | |||
Cash Payments | (4,508) | |||
Restructuring reserve ending balance | $ 431 | $ 431 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $ 3,284 | $ (3,221) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated unrealized gain (loss) on cash flow hedges | (1,331) | (7,836) |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated foreign currency translation adjustments | 4,615 | 4,615 |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss) | $ 3,284 | $ (3,221) |
DERIVATIVES (Details)
DERIVATIVES (Details) $ in Thousands | Jun. 15, 2021USD ($) | Jul. 30, 2018USD ($) | Oct. 02, 2021USD ($)financial_institution | Sep. 26, 2020USD ($) | Oct. 02, 2021USD ($)financial_institution | Sep. 26, 2020USD ($) | Apr. 03, 2021USD ($) |
Derivative [Line Items] | |||||||
Number of financial institutions company has International Swap and Derivatives Association agreements | financial_institution | 5 | 5 | |||||
Net losses reclassified into interest expense | $ 2,393 | $ 3,528 | $ 5,482 | $ 7,251 | |||
Unrealized cash flow hedge gains (losses) | 234 | $ (3,006) | 674 | $ (4,585) | |||
Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Notional amount of contracts | $ 680,000 | $ 831,000 | |||||
Term of derivative contract | 3 years | 4 years | |||||
Fixed interest rate | 0.39% | 2.78% | |||||
Unrealized gain (loss) on derivatives | 4,200 | ||||||
Unrealized cash flow hedge gains (losses) | $ 6,600 | ||||||
Cash flow hedges | Options Held | Minimum | |||||||
Derivative [Line Items] | |||||||
Term of derivative contract | 6 months | ||||||
Cash flow hedges | Options Held | Maximum | |||||||
Derivative [Line Items] | |||||||
Term of derivative contract | 12 months | ||||||
Cash flow hedges | Forward Contracts | |||||||
Derivative [Line Items] | |||||||
Term of derivative contract | 3 months | ||||||
Other Liabilities | |||||||
Derivative [Line Items] | |||||||
Total derivative liabilities | 7,281 | $ 7,281 | $ 11,802 | ||||
Other Liabilities | Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Total derivative liabilities | $ 6,573 | $ 6,573 | $ 9,863 |
DERIVATIVES (Details 1)
DERIVATIVES (Details 1) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Derivative [Line Items] | ||
Long-term derivative liabilities | $ 100 | $ 2,000 |
Derivative Asset, Noncurrent | 2,400 | 100 |
Other Current Assets | ||
Derivative [Line Items] | ||
Total derivative assets | 6,119 | 5,106 |
Other Current Assets | Non-designated hedges | ||
Derivative [Line Items] | ||
Total derivative assets | 644 | 2,864 |
Other Liabilities | ||
Derivative [Line Items] | ||
Total derivative liabilities | 7,281 | 11,802 |
Other Liabilities | Non-designated hedges | ||
Derivative [Line Items] | ||
Total derivative liabilities | 26 | 18 |
Cash flow hedges | Other Current Assets | Cash flow hedges | ||
Derivative [Line Items] | ||
Total derivative assets | 3,147 | 2,242 |
Cash flow hedges | Other Liabilities | Cash flow hedges | ||
Derivative [Line Items] | ||
Total derivative liabilities | 636 | 1,819 |
Interest Rate Swap | Other Current Assets | ||
Derivative [Line Items] | ||
Total derivative assets | 2,328 | 0 |
Interest Rate Swap | Other Liabilities | ||
Derivative [Line Items] | ||
Total derivative liabilities | 6,573 | 9,863 |
Accrued interest | $ 46 | $ 102 |
DERIVATIVES (Details 2)
DERIVATIVES (Details 2) - 6 months ended Oct. 02, 2021 € in Thousands, £ in Thousands, $ in Thousands | EUR (€) | USD ($) | GBP (£) |
EUR | |||
Derivative [Line Items] | |||
Notional amount of contracts | € 20,600 | $ 23,889 | |
Position | Sell EUR | ||
Maturity | 1 month | ||
GBP | |||
Derivative [Line Items] | |||
Notional amount of contracts | $ 12,197 | £ 9,000 | |
Position | Sell GBP | ||
Maturity | 1 month |
DERIVATIVES (Details 3)
DERIVATIVES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Gain (loss) on foreign exchange contracts | $ 1,676 | $ (1,815) | $ 1,190 | $ (2,733) |
DERIVATIVES (Details 4)
DERIVATIVES (Details 4) € in Millions, £ in Millions | Oct. 02, 2021EUR (€) | Oct. 02, 2021GBP (£) | Apr. 03, 2021EUR (€) | Apr. 03, 2021GBP (£) |
Option contracts | ||||
Derivative [Line Items] | ||||
Notional amount of contracts | € 92.5 | £ 19.7 | € 91.4 | £ 18.1 |
Forward contracts | ||||
Derivative [Line Items] | ||||
Notional amount of contracts | € 91.9 | £ 18.5 | € 76 | £ 15.6 |
DERIVATIVES (Details 5)
DERIVATIVES (Details 5) $ in Thousands, $ in Thousands | Oct. 02, 2021USD ($) | Oct. 02, 2021MXN ($) | Apr. 03, 2021MXN ($) |
Foreign currency swap contract | |||
Derivative [Line Items] | |||
Notional amount of contracts | $ 30,613 | $ 640,243 | $ 564,300 |
DERIVATIVES (Details 6)
DERIVATIVES (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Loss included in accumulated other comprehensive income (loss), as of beginning of period | $ (4,997) | $ (18,921) | $ (10,062) | $ (20,156) |
Gain (loss) recognized in other comprehensive income (loss) | 234 | (3,006) | 674 | (4,585) |
Amount of (gain)/loss reclassified from accumulated other comprehensive income (loss) into net revenues | 419,024 | 410,969 | 850,196 | 766,689 |
Amount of gain reclassified from accumulated other comprehensive income (loss) into cost of revenues | (239,331) | (230,223) | (495,313) | (429,611) |
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest expense | (16,141) | (18,581) | (37,923) | (39,765) |
Loss included in accumulated other comprehensive income (loss), as of end of period | (3,252) | (16,747) | (3,252) | (16,747) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Gain (Loss) Included in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Amount of (gain)/loss reclassified from accumulated other comprehensive income (loss) into net revenues | (639) | 1,652 | 1,133 | 743 |
Amount of gain reclassified from accumulated other comprehensive income (loss) into cost of revenues | (243) | 0 | (479) | 0 |
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest expense | 2,393 | 3,528 | 5,482 | 7,251 |
Total amount of loss reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statements of operations | $ 1,511 | $ 5,180 | $ 6,136 | $ 7,994 |
DERIVATIVES (Details) 7
DERIVATIVES (Details) 7 - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | $ 6,119 | $ 5,106 |
Derivative Liability, Fair Value, Gross Liability | (7,235) | (11,700) |
Derivative Asset [Abstract] | ||
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 6,119 | 5,106 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2,866 | 0 |
Derivative Asset | 2,866 | 0 |
Derivative Liability [Abstract] | ||
Derivative Asset, Fair Value, Gross Liability | (3,253) | (5,106) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset | 3,253 | 5,106 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (3,982) | (6,594) |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | (7,235) | (11,700) |
Derivative Liability | $ (3,982) | $ (6,594) |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Measurement, Recurring (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Apr. 03, 2021 |
Assets: | ||
Derivative instruments | $ 2,866 | $ 0 |
Liabilities: | ||
Derivative instruments | 3,982 | 6,594 |
Fair Value, Recurring | ||
Assets: | ||
Cash and cash equivalents | 191,877 | 202,560 |
Restricted cash | 493,908 | |
Short-term investments | 16,137 | 14,559 |
Derivative instruments | 6,119 | 5,106 |
Liabilities: | ||
Derivative instruments | 7,281 | 11,802 |
Short-term Debt, Fair Value | 478,807 | |
Long-term debt | 1,498,173 | 1,496,064 |
Level 1 | Fair Value, Recurring | ||
Assets: | ||
Cash and cash equivalents | 191,877 | 202,560 |
Restricted cash | 493,908 | |
Short-term investments | 16,137 | 14,559 |
Derivative instruments | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Short-term Debt, Fair Value | 0 | |
Long-term debt | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Short-term investments | 0 | 0 |
Derivative instruments | 6,119 | 5,106 |
Liabilities: | ||
Derivative instruments | 7,281 | 11,802 |
Short-term Debt, Fair Value | 482,669 | |
Long-term debt | 1,464,626 | 1,497,323 |
Level 3 | Fair Value, Recurring | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Short-term Debt, Fair Value | 0 | |
Long-term debt | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Oct. 02, 2021 | Oct. 02, 2021 | Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |||
Unrealized gain (loss) | $ 0 | $ 0 | $ 1.8 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 1773.90% | (29.00%) | 228.00% | 0.20% |
Income tax (benefit) expense | $ (102,567) | $ 3,013 | $ (106,829) | $ (163) |
Unrecognized tax benefits | 21,500 | 21,500 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 127,900 | |||
Deferred income tax expense (benefit) | 113,200 | 111,167 | $ 4,056 | |
Net deferred tax assets | 204,300 | $ 204,300 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 91,100 |
COMPUTATION OF EARNINGS (LOSS_3
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Numerator: | ||||
Net income (loss) | $ 96,785 | $ (13,405) | $ 59,974 | $ (88,420) |
Denominator: | ||||
Weighted average common shares-basic (in shares) | 42,543 | 40,970 | 42,302 | 40,715 |
Weighted average common shares-diluted (in shares) | 43,705 | 40,970 | 43,863 | 40,715 |
Basic earnings (loss) per common share (in dollars per share) | $ 2.27 | $ (0.33) | $ 1.42 | $ (2.17) |
Diluted earnings (loss) per common share (in dollars per share) | $ 2.21 | $ (0.33) | $ 1.37 | $ (2.17) |
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive | 752 | 1,153 | 330 | 1,337 |
REVENUE AND MAJOR CUSTOMERS (De
REVENUE AND MAJOR CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Apr. 03, 2021 | |
Revenue from External Customer [Line Items] | |||||
Remaining performance obligation, current | $ 135,182 | $ 135,182 | |||
Net revenues | 419,024 | $ 410,969 | 850,196 | $ 766,689 | |
Contract with customer, liability | 202,400 | 202,400 | $ 213,800 | ||
Remaining performance obligation, noncurrent | 67,195 | 67,195 | |||
Remaining performance obligation | 202,377 | 202,377 | |||
Revenue recognized | 50,700 | ||||
Headset | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 185,780 | 202,840 | 357,973 | 377,590 | |
Product | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 361,383 | 347,677 | 732,585 | 639,135 | |
Product | U.S. | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 186,068 | 159,532 | 362,039 | 303,821 | |
Product | Europe, Middle East, and Africa | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 97,341 | 114,875 | 208,801 | 192,493 | |
Product | Asia Pacific | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 57,294 | 52,548 | 115,564 | 97,979 | |
Product | Americas, excluding U.S. | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 20,680 | 20,722 | 46,181 | 44,842 | |
Product | Total international net product revenues | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 175,315 | 188,145 | 370,546 | 335,314 | |
Voice | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 59,705 | 43,785 | 121,003 | 89,606 | |
Video | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 115,898 | 101,052 | 253,609 | 171,939 | |
Service | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 57,641 | 63,292 | 117,611 | 127,554 | |
Service | U.S. | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 22,092 | 24,245 | 44,850 | 48,237 | |
Service | Europe, Middle East, and Africa | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 14,420 | 15,524 | 29,081 | 32,012 | |
Service | Asia Pacific | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 17,015 | 19,021 | 35,502 | 37,854 | |
Service | Americas, excluding U.S. | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | 4,114 | 4,502 | 8,178 | 9,451 | |
Service | Total international net product revenues | |||||
Revenue from External Customer [Line Items] | |||||
Net revenues | $ 35,549 | $ 39,047 | $ 72,761 | $ 79,317 |
SEGMENT REPORTING AND GEOGRAP_3
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Narrative (Details) | 6 Months Ended |
Oct. 02, 2021segment | |
Segments, Geographical Areas [Abstract] | |
Number of operating segments | 2 |
SEGMENT REPORTING AND GEOGRAP_4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Segments Results for Revenue and Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total segment gross profit as reviewed by CODM | $ 179,693 | $ 180,746 | $ 354,883 | $ 337,078 |
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total segment revenues as reviewed by CODM | 420,078 | 415,206 | 852,510 | 776,008 |
Total segment gross profit as reviewed by CODM | 198,145 | 202,901 | 391,960 | 383,386 |
Operating Segments | Products Reportable Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total segment revenues as reviewed by CODM | 361,530 | 347,970 | 732,909 | 639,756 |
Total segment gross profit as reviewed by CODM | 158,759 | 156,627 | 312,307 | 290,869 |
Operating Segments | Services Reportable Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total segment revenues as reviewed by CODM | 58,548 | 67,236 | 119,601 | 136,252 |
Total segment gross profit as reviewed by CODM | $ 39,386 | $ 46,274 | $ 79,653 | $ 92,517 |
SEGMENT REPORTING AND GEOGRAP_5
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Segment Revenue and Gross Margin Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Provision for excess and obsolete inventories | $ 6,904 | $ 9,158 | ||
Net revenues | $ 419,024 | $ 410,969 | 850,196 | 766,689 |
Gross profit | 179,693 | 180,746 | 354,883 | 337,078 |
Depreciation, as reviewed by CODM | 4,000 | 3,600 | 7,600 | 6,900 |
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total segment revenues as reviewed by CODM | 420,078 | 415,206 | 852,510 | 776,008 |
Gross profit | 198,145 | 202,901 | 391,960 | 383,386 |
Purchase accounting amortization | (16,238) | (17,176) | (32,477) | (35,414) |
Segment Reconciling Items | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Deferred revenue purchase accounting | (1,054) | (4,237) | (2,314) | (9,319) |
Stock-based compensation | $ (1,160) | $ (742) | $ (2,286) | $ (1,575) |