Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SCANSOURCE INC | ' |
Entity Central Index Key | '0000918965 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 28,518,432 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $183,562 | $148,164 |
Accounts receivable, less allowance of $26,825 at March 31, 2014 and $25,479 at June 30, 2013 | 419,889 | 435,028 |
Inventories | 479,871 | 402,307 |
Prepaid expenses and other current assets | 41,947 | 40,105 |
Deferred income taxes | 15,876 | 16,456 |
Total current assets | 1,141,145 | 1,042,060 |
Property and equipment, net | 25,674 | 20,203 |
Goodwill | 32,143 | 31,795 |
Other non-current assets, including net identifiable intangible assets | 53,412 | 70,125 |
Total assets | 1,252,374 | 1,164,183 |
Liabilities and Shareholders’ Equity | ' | ' |
Accounts payable | 375,892 | 362,271 |
Accrued expenses and other current liabilities | 62,756 | 59,983 |
Current portion of contingent consideration | 5,718 | 3,732 |
Income taxes payable | 2,289 | 1,696 |
Total current liabilities | 446,655 | 427,682 |
Deferred income taxes | 192 | 205 |
Long-term debt | 5,429 | 5,429 |
Long-term portion of contingent consideration | 5,018 | 8,813 |
Other long-term liabilities | 22,294 | 26,098 |
Total liabilities | 479,588 | 468,227 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Preferred stock, no par value; 3,000,000 shares authorized, none issued | 0 | 0 |
Common stock, no par value; 45,000,000 shares authorized, 28,513,120 and 27,971,809 shares issued and outstanding at March 31, 2014 and June 30, 2013, respectively | 166,509 | 149,821 |
Retained earnings | 623,791 | 569,107 |
Accumulated other comprehensive income (loss) | -17,514 | -22,972 |
Total shareholders’ equity | 772,786 | 695,956 |
Total liabilities and shareholders’ equity | $1,252,374 | $1,164,183 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for accounts receivable | $26,825 | $25,479 |
Shareholders’ equity: | ' | ' |
Preferred stock, par value | $0 | $0 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common Stock, Shares, Issued | 28,513,120 | 27,971,809 |
Common stock, shares outstanding | 28,513,120 | 27,971,809 |
Condensed_Consolidated_Income_
Condensed Consolidated Income Statements (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $682,998 | $682,965 | $2,155,520 | $2,164,286 |
Cost of goods sold | 609,647 | 614,133 | 1,928,414 | 1,947,063 |
Gross profit | 73,351 | 68,832 | 227,106 | 217,223 |
Selling, general and administrative expenses | 46,705 | 47,937 | 143,541 | 144,392 |
Change in fair value of contingent consideration | 981 | 100 | 2,218 | 1,396 |
Operating income | 25,665 | 20,795 | 81,347 | 71,435 |
Interest expense | 217 | 102 | 698 | 356 |
Interest income | -545 | -483 | -1,644 | -1,648 |
Other (income) expense, net | 13 | -4 | 65 | 34 |
Income before income taxes | 25,980 | 21,180 | 82,228 | 72,693 |
Provision for income taxes | 9,031 | 7,202 | 27,544 | 24,716 |
Net income | $16,949 | $13,978 | $54,684 | $47,977 |
Per share data: | ' | ' | ' | ' |
Weighted-average shares outstanding, basic (in shares) | 28,502 | 27,847 | 28,275 | 27,725 |
Net income per common share, basic (in dollars per share) | $0.59 | $0.50 | $1.93 | $1.73 |
Weighted-average shares outstanding, diluted (in shares) | 28,730 | 28,024 | 28,548 | 27,960 |
Net income per common share, diluted (in dollars per share) | $0.59 | $0.50 | $1.92 | $1.72 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ' | ' | ' |
Net income | $16,949 | $13,978 | $54,684 | $47,977 |
Foreign currency translation adjustment | 1,562 | -3,107 | 5,458 | 2,206 |
Comprehensive income | $18,511 | $10,871 | $60,142 | $50,183 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $54,684 | $47,977 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 5,391 | 6,604 |
Amortization of debt issuance costs | 238 | 259 |
Provision for doubtful accounts | 5,469 | 8,312 |
Share-based compensation and restricted stock | 3,807 | 4,565 |
Deferred income taxes | 10,981 | -4,028 |
Excess tax benefits from share-based payment arrangements | -982 | -849 |
Change in fair value of contingent consideration | 2,218 | 1,396 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | 13,340 | 32,061 |
Inventories | -74,461 | 72,170 |
Prepaid expenses and other assets | -2,924 | -303 |
Other non-current assets | 3,790 | 3,658 |
Accounts payable | 12,404 | -94,951 |
Accrued expenses and other liabilities | -2,817 | -2,696 |
Income taxes payable | 1,532 | 1,831 |
Net cash provided by (used in) operating activities | 32,670 | 76,006 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -6,785 | -4,463 |
Net cash provided by (used in) investing activities | -6,785 | -4,463 |
Cash flows from financing activities: | ' | ' |
Borrowings (repayments) on short-term borrowings, net | 0 | -4,459 |
Borrowings on revolving credit | 0 | 515,262 |
Repayments on revolving credit | 0 | -515,877 |
Debt issuance costs | -468 | 0 |
Contingent consideration payments | -3,793 | -4,777 |
Exercise of stock options | 12,152 | 2,231 |
Excess tax benefits from share-based payment arrangements | 982 | 849 |
Net cash provided by (used in) financing activities | 8,873 | -6,771 |
Effect of exchange rate changes on cash and cash equivalents | 640 | -40 |
Increase (decrease) in cash and cash equivalents | 35,398 | 64,732 |
Cash and cash equivalents at beginning of period | 148,164 | 29,173 |
Cash and cash equivalents at end of period | $183,562 | $93,905 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Business and Summary of Significant Accounting Policies | ' |
Business and Summary of Significant Accounting Policies | |
Business Description | |
ScanSource, Inc. is a leading international wholesale distributor of specialty technology products. ScanSource, Inc. and its subsidiaries ("the Company") provide value-added distribution services for technology manufacturers and sell to resellers in the following specialty technology markets: POS Barcode and Security through its Worldwide Barcode & Security segment and Communications through its Worldwide Communications & Services segment. | |
The Company operates in the United States, Canada, Latin America and Europe and uses centralized distribution centers for major geographic regions. The Company distributes to the United States and Canada from its Southaven, Mississippi distribution center; to Latin America principally from distribution centers located in Florida, Mexico and Brazil; and to Europe from its distribution center in Belgium. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of ScanSource, Inc. have been prepared by the Company’s management in accordance with United States generally accepted accounting principles ("US GAAP") for interim financial information and applicable rules and regulations of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. The unaudited condensed consolidated financial statements included herein contain all adjustments (consisting of normal recurring and non-recurring adjustments) which are, in the opinion of management, necessary to present fairly the financial position as of March 31, 2014 and June 30, 2013, the results of operations for the quarters and nine months ended March 31, 2014 and 2013, the statements of comprehensive income for the quarters and nine months ended March 31, 2014 and 2013 and the statements of cash flows for the nine months ended March 31, 2014 and 2013. The results of operations for the quarters and nine months ended March 31, 2014 and 2013 are not necessarily indicative of the results to be expected for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation in the accompanying Condensed Consolidated Statements of Cash Flows. Such reclassifications have no effect on the cash flow from operating, investing and financing activities as previously reported. | |
Summary of Significant Accounting Policies | |
Except as described below, there have been no material changes to the Company’s significant accounting policies for the quarter and nine months ended March 31, 2014 from the information included in the notes to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2013. For a discussion of the Company’s significant accounting policies, please see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | |
During the third quarter of fiscal 2014, the Company changed its annual goodwill impairment testing date from June 30 to April 30. This voluntary change is considered preferable as it better aligns the timing of the impairment test with management’s financial planning and budgeting process, and ensures the completion of the test prior to the end of the annual reporting period. This change does not accelerate, delay or avoid a potential impairment charge. The Company will complete its annual goodwill impairment test during the fourth quarter of fiscal 2014. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains some zero-balance, disbursement accounts at various financial institutions in which the Company does not maintain significant depository relationships. Due to the nature of the Company’s banking relationships with these institutions, the Company does not have the right to offset most if not all outstanding checks written from these accounts against cash on hand, and the respective institutions are not legally obligated to honor the checks until sufficient funds are transferred to fund the checks. Checks released but not yet cleared from these accounts in the amounts of $53.2 million and $65.9 million are included in accounts payable as of March 31, 2014 and June 30, 2013, respectively. | |
Recent Accounting Pronouncements | |
There are currently no new accounting pronouncements that are expected to have a significant impact on the Company's financial position, results of operations and cash flows. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share are computed by dividing net income by the weighted-average number of common and potential common shares outstanding. | ||||||||||||||||
Quarter ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net Income | $ | 16,949 | $ | 13,978 | $ | 54,684 | $ | 47,977 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares, basic | 28,502 | 27,847 | 28,275 | 27,725 | ||||||||||||
Dilutive effect of share-based payments | 228 | 177 | 273 | 235 | ||||||||||||
Weighted-average shares, diluted | 28,730 | 28,024 | 28,548 | 27,960 | ||||||||||||
Net income per common share, basic | $ | 0.59 | $ | 0.5 | $ | 1.93 | $ | 1.73 | ||||||||
Net income per common share, diluted | $ | 0.59 | $ | 0.5 | $ | 1.92 | $ | 1.72 | ||||||||
For the quarter and nine months ended March 31, 2014, weighted average shares outstanding excluded from the computation of diluted earnings per share because their effect would be anti-dilutive were 275,635 and 203,384, respectively. For the quarter and nine months ended March 31, 2013, there were 1,119,940 and 1,097,610 weighted average shares outstanding excluded from the computation of diluted earnings per share because their effect would be anti-dilutive. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated other comprehensive income (loss) consists of the following: | ||||||||
March 31, | June 30, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Foreign currency translation adjustment | $ | (17,514 | ) | $ | (22,972 | ) | ||
Accumulated other comprehensive income (loss) | $ | (17,514 | ) | $ | (22,972 | ) | ||
For the quarter and nine months ended March 31, 2014, the tax effect of amounts in comprehensive income reflect a tax benefit of $0.2 million. For the quarter and nine months ended March 31, 2013, the tax effect of amounts in comprehensive income reflect a tax expense of $0.3 million and a tax benefit of $0.1 million, respectively. |
Goodwill_and_Other_Identifiabl
Goodwill and Other Identifiable Intangible Assets | 9 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Other Identifiable Intangible Assets | ' | |||||||||||
Goodwill and Other Identifiable Intangible Assets | ||||||||||||
The changes in the carrying amount of goodwill for the nine months ended March 31, 2014, by reporting segment, are as follows: | ||||||||||||
Barcode & Security Segment | Communications & Services Segment | Total | ||||||||||
(in thousands) | ||||||||||||
Balance as of June 30, 2013 | $ | 16,329 | $ | 15,466 | $ | 31,795 | ||||||
Foreign currency translation adjustment | 348 | — | 348 | |||||||||
Balance as of March 31, 2014 | $ | 16,677 | $ | 15,466 | $ | 32,143 | ||||||
Included within other non-current assets in the Condensed Consolidated Balance Sheets are net identifiable intangible assets of $16.9 million and $19.8 million at March 31, 2014 and June 30, 2013, respectively. These amounts relate primarily to acquired intangible assets including customer relationships, non-compete agreements, and distributor agreements. |
ShortTerm_Borrowings_and_LongT
Short-Term Borrowings and Long-Term Debt | 9 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Short Term Borrowings and Long Term Debt | ' |
Short-Term Borrowings and Long-Term Debt | |
Short-Term Borrowings | |
A subsidiary of the Company has a €6.0 million line of credit, which is secured by the assets of our European operations and is guaranteed by ScanSource, Inc. This agreement can be withdrawn by the lender with minimal notice. The subsidiary line of credit bears interest at the 30-day Euro Interbank Offered Rate ("EURIBOR") plus a spread ranging from 1.25% to 2.00% per annum. The spread in effect for the period ended March 31, 2014 was 1.25%. Additionally, the Company is assessed commitment fees ranging from 0.10% to 0.275% on non-utilized borrowing availability if outstanding balances are below €3.0 million. The interest rate spread and commitment fee rates are based on the Company's Leverage Ratio for its revolving credit facility, as defined below. There were no outstanding balances at March 31, 2014 and June 30, 2013. | |
Revolving Credit Facility | |
The Company has a $300 million multi-currency senior secured revolving credit facility that was scheduled to mature on October 11, 2016. On November 6, 2013, the Company entered into an amendment of this credit facility ("Amended Credit Agreement") with JPMorgan Chase Bank N.A., as administrative agent, and a syndicate of banks to extend its maturity to November 6, 2018. The Amended Credit Agreement allows for the issuance of up to $50 million for letters of credit and has a $150 million accordion feature that allows the Company to increase the availability to $450 million, subject to obtaining additional credit commitments for the lenders participating in the increase. The Company incurred debt issuance costs of $0.5 million in connection with the Amended Credit Agreement, which were capitalized to other assets on the Condensed Consolidated Balance Sheets and added to the unamortized debt issuance costs from the previous credit facility. | |
At the Company's option, loans denominated in U.S. dollars under the Amended Credit Agreement, other than swingline loans, bear interest at a rate equal to a spread over the London Interbank Offered Rate ("LIBOR") or alternate base rate depending upon the Company's ratio of total debt (excluding accounts payable and accrued liabilities), measured as of the end of the most recent quarter, to adjusted earnings before interest expense, taxes, depreciation and amortization ("EBITDA") for the most recently completed four quarters (the "Leverage Ratio"). The Leverage Ratio calculation excludes the Company's subsidiary in Brazil. This spread ranges from 1.00% to 2.25% for LIBOR-based loans and 0.00% to 1.25% for alternate base rate loans. The spread in effect for the period ended March 31, 2014 was 1.00% for LIBOR-based loans and 0.00% for alternate base rate loans. Additionally, the Company is assessed commitment fees ranging from 0.175% to 0.40%, depending upon the Leverage Ratio, on non-utilized borrowing availability, excluding swingline loans. Borrowings are guaranteed by substantially all of the domestic assets of the Company as well as certain foreign subsidiaries determined to be material under the Amended Credit Agreement and a pledge of up to 65% of capital stock or other equity interest in each Guarantor as defined in the Amended Credit Agreement. The Company was in compliance with all covenants under the credit facility as of March 31, 2014. There were no outstanding balances at March 31, 2014 and June 30, 2013. | |
The average daily balance during the nine month period ended March 31, 2014 and 2013 was $0.0 million and $12.5 million, respectively. | |
Long-Term Debt | |
On August 1, 2007, the Company entered into an agreement with the State of Mississippi to provide financing for the acquisition and installation of certain equipment to be utilized at the Company’s Southaven, Mississippi distribution facility, through the issuance of an industrial development revenue bond. The bond matures on September 1, 2032 and accrues interest at the 30-day LIBOR rate plus a spread of 0.85%. The terms of the bond allow for payment of interest only for the first 10 years of the agreement, and then, starting on September 1, 2018 through 2032, principal and interest payments are due until the maturity date or the redemption of the bond. The agreement also provides the bondholder with a put option, exercisable only within 180 days of each fifth anniversary of the agreement, requiring the Company to pay back the bonds at 100% of the principal amount outstanding. As of March 31, 2014, the Company was in compliance with all covenants under this bond. The balance on the bond was $5.4 million as of March 31, 2014 and June 30, 2013 and is included in long-term debt. The interest rate at March 31, 2014 and June 30, 2013 was 1.01% and 1.04%, respectively. | |
Debt Issuance Costs | |
As of March 31, 2014, net debt issuance costs associated with the credit facility and bonds totaled $1.4 million and are being amortized on a straight-line basis through the maturity date of each respective debt instrument. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ' | |||||||||||||||
Derivatives and Hedging Activities | ' | |||||||||||||||
Derivatives and Hedging Activities | ||||||||||||||||
The Company’s results of operations could be materially impacted by significant changes in foreign currency exchange rates and interest rates. These risks and the management of these risks are discussed in greater detail below. In an effort to manage the exposure to these risks, the Company periodically enters into various derivative instruments. The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments in accordance with US GAAP. The Company records all derivatives on the balance sheet at fair value. Derivatives that are not designated as hedging instruments or the ineffective portions of cash flow hedges are adjusted to fair value through earnings in other income and expense. | ||||||||||||||||
Foreign Currency – The Company conducts a portion of its business internationally in a variety of foreign currencies. The exposure to market risk for changes in foreign currency exchange rates arises from foreign currency-denominated assets and liabilities, and transactions arising from non-functional currency financing or trading activities. The Company’s objective is to preserve the economic value of non-functional currency-denominated cash flows. The Company attempts to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through forward contracts or other hedging instruments with third parties. These contracts will periodically hedge the exchange of various currencies, including the U.S. dollar, euro, British pound, Canadian dollar, Mexican peso and Brazilian real. While the Company utilizes foreign exchange contracts to hedge foreign currency exposure, the Company's foreign exchange policy prohibits the use of derivative financial instruments for speculative purposes. | ||||||||||||||||
The Company had contracts outstanding with notional amounts of $62.5 million and $81.3 million for the exchange of foreign currencies as of March 31, 2014 and June 30, 2013, respectively. To date, the Company has chosen not to designate these derivatives as hedging instruments, and accordingly, these instruments are adjusted to fair value through earnings in other income and expense. Summarized financial information related to these derivative contracts and changes in the underlying value of the foreign currency exposures are as follows: | ||||||||||||||||
Quarter ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Net foreign exchange derivative contract (gains) losses | $ | 114 | $ | (2,092 | ) | $ | 2,511 | $ | (759 | ) | ||||||
Net foreign currency transactional and re-measurement (gains) losses | (57 | ) | 2,237 | (2,185 | ) | 1,087 | ||||||||||
Net foreign currency (gains) losses | $ | 57 | $ | 145 | $ | 326 | $ | 328 | ||||||||
Net foreign exchange gains and losses consist of foreign currency transactional and functional currency re-measurements, offset by net foreign currency exchange contract gains and losses and are included in other income and expense. Foreign exchange gains and losses are generated as the result of fluctuations in the value of the British pound versus the euro, the U.S. dollar versus the euro, the U.S. dollar versus the Brazilian real and other currencies versus the U.S. dollar. | ||||||||||||||||
The Company used the following derivative instruments, located on its Condensed Consolidated Balance Sheets, for the risk management purposes detailed above: | ||||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Fair Value of | Fair Value of | |||||||||||||||
Derivatives | Derivatives | |||||||||||||||
Designated as Hedge | Not Designated as Hedge | |||||||||||||||
Instruments | Instruments | |||||||||||||||
(in thousands) | ||||||||||||||||
Derivative assets:(a) | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 23 | ||||||||||||
Derivative liabilities:(b) | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 61 | ||||||||||||
(a) | All derivative assets are recorded as prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. | |||||||||||||||
(b) | All derivative liabilities are recorded as accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
Accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Under this guidance, the Company is required to classify certain assets and liabilities based on the fair value hierarchy, which groups fair value measured assets and liabilities based upon the following levels of inputs: | ||||||||||||||||
• | Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |||||||||||||||
• | Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | |||||||||||||||
• | Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). | |||||||||||||||
The assets and liabilities maintained by the Company that are required to be measured at fair value on a recurring basis include the Company’s various debt instruments, deferred compensation plan investments, outstanding foreign exchange forward contracts and contingent consideration owed to the previous owners of Brasil Distribuidora de Tecnologias Especiais LTDA ("CDC" or "ScanSource Brasil"). The carrying value of debt is considered to approximate fair value, as the Company’s debt instruments are indexed to LIBOR or the alternate base rate using the market approach (Level 2 criteria). | ||||||||||||||||
The following table summarizes the valuation of the Company’s remaining assets and liabilities measured at fair value on a recurring basis as of March 31, 2014: | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | ||||||||||||||
active | observable | inputs | ||||||||||||||
markets | inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 15,403 | $ | 15,403 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 23 | — | 23 | — | ||||||||||||
Total assets at fair value | $ | 15,426 | $ | 15,403 | $ | 23 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 15,403 | $ | 15,403 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 61 | — | 61 | — | ||||||||||||
Liability for contingent consideration, current and non-current portion | 10,736 | — | — | 10,736 | ||||||||||||
Total liabilities at fair value | $ | 26,200 | $ | 15,403 | $ | 61 | $ | 10,736 | ||||||||
The following table summarizes the valuation of the Company’s remaining assets and liabilities measured at fair value on a recurring basis as of June 30, 2013: | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | ||||||||||||||
active | observable | inputs | ||||||||||||||
markets | inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 13,752 | $ | 13,752 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 308 | — | 308 | — | ||||||||||||
Total assets at fair value | $ | 14,060 | $ | 13,752 | $ | 308 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 13,752 | $ | 13,752 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 34 | — | 34 | — | ||||||||||||
Liability for contingent consideration, current and non-current portion | 12,545 | — | — | 12,545 | ||||||||||||
Total liabilities at fair value | $ | 26,331 | $ | 13,752 | $ | 34 | $ | 12,545 | ||||||||
The investments in the deferred compensation plan are held in a rabbi trust and include mutual funds and cash equivalents for payment of non-qualified benefits for certain retired, terminated or active employees. These investments are recorded to prepaid expenses and other current assets or other non-current assets depending on their corresponding, anticipated distributions to recipients, which are reported in accrued expenses and other current liabilities or other long-term non-current liabilities, respectively. | ||||||||||||||||
Foreign currency forward contracts are measured using the market approach on a recurring basis considering foreign currency spot rates and forward rates quoted by banks or foreign currency dealers (Level 2). See Note 6 - Derivatives and Hedging Activities. Foreign currency contracts are classified in the consolidated balance sheet in prepaid expenses and other current assets or accrued expenses and other current liabilities, depending on the respective contracts' favorable or unfavorable positions. | ||||||||||||||||
The Company recorded a contingent consideration liability at the acquisition date of CDC representing the amounts payable to former CDC shareholders, as outlined under the terms of the Share Purchase and Sale Agreement, based upon the achievement of projected earnings, net of specific pro forma adjustments. The current and non-current portions of this obligation are reported separately on the Condensed Consolidated Balance Sheets. The fair value of contingent consideration (Level 3) is determined using a discounted cash flow model. Subsequent changes in the fair value of the contingent consideration liability are recorded to the change in fair value of contingent consideration line item in the Condensed Consolidated Income Statements. Fluctuations due to foreign currency translation are captured in other comprehensive income through the changes in foreign currency translation adjustments line item as seen in Note 3 - Accumulated Other Comprehensive Income. | ||||||||||||||||
The table below provides a summary of the changes in fair value of the Company’s contingent consideration (Level 3) for the CDC earnout for the quarters and nine months ended March 31, 2014 and 2013: | ||||||||||||||||
Contingent consideration for the | Contingent consideration for the nine months ended | |||||||||||||||
quarter ended | ||||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Fair value at beginning of period | $ | 9,547 | $ | 13,090 | $ | 12,545 | $ | 16,653 | ||||||||
Payments | (147 | ) | (61 | ) | (3,793 | ) | (4,777 | ) | ||||||||
Change in fair value of contingent consideration | 981 | 100 | 2,218 | 1,396 | ||||||||||||
Foreign currency translation adjustment | 355 | 192 | (234 | ) | 49 | |||||||||||
Fair value at end of period | $ | 10,736 | $ | 13,321 | $ | 10,736 | $ | 13,321 | ||||||||
The fair value of the liability for the contingent consideration recognized at March 31, 2014 was $10.7 million of which $5.7 million is classified as current. The fair values of amounts owed are recorded in current portion of contingent consideration and long-term portion of contingent consideration in the Company’s Condensed Consolidated Balance Sheets. The U.S. dollar amounts of actual disbursements made in connection with future earnout payments are subject to change as the liability is denominated in Brazilian reais and subject to foreign exchange fluctuation risk. The Company will revalue the contingent consideration liability at each reporting date through the last payment, with changes in the fair value of the contingent consideration reflected in the change in fair value of contingent consideration line item on the Company’s Condensed Consolidated Income Statements that is included in the calculation of operating income. The fair value of the contingent consideration liability associated with future earnout payments is based on several factors, including: | ||||||||||||||||
• | estimated future results, net of pro forma adjustments set forth in the Share Purchase and Sale Agreement; | |||||||||||||||
• | the probability of achieving these results; and | |||||||||||||||
• | a discount rate reflective of the Company’s creditworthiness and market risk premium associated with the Brazilian market. | |||||||||||||||
A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration. The change in fair value of the contingent consideration recognized in the Condensed Consolidated Income Statements contributed losses of $1.0 million and $2.2 million for the quarter and nine months ended March 31, 2014, respectively. The change this quarter and year to date is largely driven by the recurring amortization of the unrecognized fair value discount and better than expected operating results. In addition, volatility in the foreign exchange between the Brazilian real and the U.S. dollar has driven changes in the translation of this Brazilian real denominated liability. Although there is no contractual limit, total future undiscounted contingent consideration payments are anticipated to range up to $13.2 million, based on the Company’s best estimate as the earnout is based on a multiple of adjusted earnings. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company is a leading distributor of specialty technology products, providing value-added distribution sales to resellers in specialty technology markets. The Company has two reportable segments, based on product and service type. | ||||||||||||||||
Historically, the Company's reporting units coincided with its geographic operating segments of North America and International. In the fourth quarter of fiscal 2013, the Company reorganized its management structure and reporting segments to globally leverage the Company's leadership in specific technology markets, changing from a geographic to a technology focus. As part of this new structure, the Company formed two operating segments with a global technology focus: Worldwide Barcode & Security ("Barcode/Security") and Worldwide Communications & Services ("Communications/Services"). Each operating segment is managed around its global technology focus and is supported by its centralized infrastructure, including distribution centers and back office operations. Each operating segment has its own management team led by a president and includes regional presidents within the operating group who manage the various functions within each segment. Decisions and planning for the Company as a whole are made at the corporate level by analyzing results from the operating segments. The principal measure of segment performance is considered to be operating income. These technology business segments replace the geographic segments previously used, and the Company has retrospectively reclassified the condensed consolidated financial statements to conform to the new presentation. | ||||||||||||||||
Worldwide Barcode & Security Segment | ||||||||||||||||
The Barcode/Security distribution segment focuses on automatic identification and data capture ("AIDC"), point-of-sale ("POS"), and electronic physical security technologies. We have business units within this segment for sales and merchandising functions, including ScanSource POS and Barcode business units in North America, Latin America, and Europe and the ScanSource Security business unit in North America. We see adjacencies among these technologies in helping our resellers develop solutions, such as with networking products. AIDC and POS products interface with computer systems used to automate the collection, processing and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management and health care applications. Electronic physical security products include identification, access control, video surveillance, intrusion-related and wireless infrastructure products. | ||||||||||||||||
Worldwide Communications & Services Segment | ||||||||||||||||
The Communications/Services distribution segment focuses on communications technologies and services. We have business units within this segment for sales and merchandising functions, including the ScanSource Catalyst business unit in North America, ScanSource Communications business units in North America and Europe, and the ScanSource Services Group business unit in North America. ScanSource Catalyst and ScanSource Communications business units market voice, video conferencing, data networking and converged communications solutions. The ScanSource Services Group business unit delivers value-added support programs and services, including education and training, network assessments, custom configuration, implementation and marketing. | ||||||||||||||||
Quarter ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Sales: | ||||||||||||||||
Worldwide Barcode & Security | $ | 455,822 | $ | 438,191 | $ | 1,382,672 | $ | 1,383,453 | ||||||||
Worldwide Communications & Services | 227,176 | 244,774 | 772,848 | 780,833 | ||||||||||||
$ | 682,998 | $ | 682,965 | $ | 2,155,520 | $ | 2,164,286 | |||||||||
Depreciation and amortization: | ||||||||||||||||
Worldwide Barcode & Security | $ | 1,024 | $ | 1,415 | $ | 3,159 | $ | 4,274 | ||||||||
Worldwide Communications & Services | 719 | 773 | 2,232 | 2,330 | ||||||||||||
$ | 1,743 | $ | 2,188 | $ | 5,391 | $ | 6,604 | |||||||||
Operating income: | ||||||||||||||||
Worldwide Barcode & Security | $ | 13,820 | $ | 10,413 | $ | 38,734 | $ | 36,326 | ||||||||
Worldwide Communications & Services | 11,845 | 10,382 | 42,613 | 35,109 | ||||||||||||
$ | 25,665 | $ | 20,795 | $ | 81,347 | $ | 71,435 | |||||||||
Capital expenditures: | ||||||||||||||||
Worldwide Barcode & Security | $ | 204 | $ | 181 | $ | 507 | $ | 324 | ||||||||
Worldwide Communications & Services | 130 | 211 | 249 | 877 | ||||||||||||
Corporate | 6,029 | 868 | 6,029 | 3,262 | ||||||||||||
$ | 6,363 | $ | 1,260 | $ | 6,785 | $ | 4,463 | |||||||||
Sales by Geography Category: | ||||||||||||||||
North America | $ | 508,751 | $ | 519,502 | $ | 1,637,308 | $ | 1,647,115 | ||||||||
International | 184,225 | 174,571 | 553,318 | 562,093 | ||||||||||||
Less intercompany sales | (9,978 | ) | (11,108 | ) | (35,106 | ) | (44,922 | ) | ||||||||
$ | 682,998 | $ | 682,965 | $ | 2,155,520 | $ | 2,164,286 | |||||||||
March 31, 2014 | June 30, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Worldwide Barcode & Security | $ | 663,135 | $ | 609,939 | ||||||||||||
Worldwide Communications & Services | 399,030 | 387,097 | ||||||||||||||
Corporate | 190,209 | 167,147 | ||||||||||||||
$ | 1,252,374 | $ | 1,164,183 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
The Company and its subsidiaries are, from time to time, parties to lawsuits arising out of operations. Although there can be no assurance, based upon information known to the Company, the Company believes that any liability resulting from an adverse determination of such lawsuits would not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. | ||||||||
During the Company's due diligence for the CDC acquisition, several pre-acquisition contingencies were identified regarding various Brazilian federal and state tax exposures. The Company is able to record indemnification receivables that are reported gross of the pre-acquisition contingency liabilities as they were escrowed in the Share Purchase and Sale Agreement. However, indemnity claims can be made up to the entire purchase price, which includes the initial payment and all future earnout payments. The table below summarizes the balances and line item presentation of these pre-acquisition contingencies and corresponding indemnification receivables in the Company's Condensed Consolidated Balance Sheets: | ||||||||
March 31, 2014 | 30-Jun-13 | |||||||
(in thousands) | ||||||||
Assets | ||||||||
Prepaid expenses and other current assets | $ | 4,889 | $ | 5,061 | ||||
Other non-current assets | $ | 1,189 | $ | 2,905 | ||||
Liabilities | ||||||||
Accrued expenses and other current liabilities | $ | 4,889 | $ | 5,061 | ||||
Other long-term liabilities | $ | 1,189 | $ | 2,905 | ||||
Changes in these contingent liabilities and receivables from June 30, 2013, are primarily driven by foreign currency translation and the lapse of the statute of limitations on a portion of the contingencies. |
Income_Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company had approximately $1.2 million and $1.0 million of total gross unrecognized tax benefits as of March 31, 2014 and June 30, 2013. Of this total at March 31, 2014, approximately $0.7 million represents the amount of unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate. The Company does not believe that the total amount of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. | |
The Company conducts business globally and, as a result, one or more of its subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in countries and states in which it operates. With certain exceptions, the Company is no longer subject to state and local, or non-U.S. income tax examinations by tax authorities for the years before June 30, 2009. | |
The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of March 31, 2014, the Company had approximately $0.9 million accrued for interest and penalties. | |
Income taxes for the interim period presented have been included in the accompanying condensed consolidated financial statements on the basis of an estimated annual effective tax rate. In addition to the amount of tax resulting from applying the estimated annual effective tax rate to pre-tax income, the Company includes certain items treated as discrete events to arrive at an estimated overall tax provision. As a result of a change in our effective state tax rate, an adjustment to deferred tax assets was accounted for discretely, resulting in a net tax benefit of $0.7 million for the quarter ended September 30, 2013. During the quarter ended March 31, 2014, $0.1 million of tax expense was recognized discretely as the result of an increase in unrecognized tax benefits. | |
The Company’s effective tax rate differs from the federal statutory rate of 35% primarily as a result of income derived from tax jurisdictions with varying income tax rates and state income taxes. | |
The Company has provided for U.S. income taxes for the current earnings of its Canadian subsidiary. Earnings from all other geographies will continue to be considered retained indefinitely for reinvestment. | |
Financial results in prior quarters have generated pre-tax losses in Europe, which were primarily the result of our European Communications business, and could affect the valuation of certain deferred tax assets. Year to date, the European business has fluctuated, generating a pre-tax profit in the first and third quarters, resulting in a pre-tax profit for all combined European operating segments. In the judgment of management, it is more likely than not that the deferred tax asset will be realized. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Business Description | ' |
Business Description | |
ScanSource, Inc. is a leading international wholesale distributor of specialty technology products. ScanSource, Inc. and its subsidiaries ("the Company") provide value-added distribution services for technology manufacturers and sell to resellers in the following specialty technology markets: POS Barcode and Security through its Worldwide Barcode & Security segment and Communications through its Worldwide Communications & Services segment. | |
The Company operates in the United States, Canada, Latin America and Europe and uses centralized distribution centers for major geographic regions. The Company distributes to the United States and Canada from its Southaven, Mississippi distribution center; to Latin America principally from distribution centers located in Florida, Mexico and Brazil; and to Europe from its distribution center in Belgium. | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of ScanSource, Inc. have been prepared by the Company’s management in accordance with United States generally accepted accounting principles ("US GAAP") for interim financial information and applicable rules and regulations of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. The unaudited condensed consolidated financial statements included herein contain all adjustments (consisting of normal recurring and non-recurring adjustments) which are, in the opinion of management, necessary to present fairly the financial position as of March 31, 2014 and June 30, 2013, the results of operations for the quarters and nine months ended March 31, 2014 and 2013, the statements of comprehensive income for the quarters and nine months ended March 31, 2014 and 2013 and the statements of cash flows for the nine months ended March 31, 2014 and 2013. The results of operations for the quarters and nine months ended March 31, 2014 and 2013 are not necessarily indicative of the results to be expected for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | |
Reclassifications | ' |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation in the accompanying Condensed Consolidated Statements of Cash Flows. Such reclassifications have no effect on the cash flow from operating, investing and financing activities as previously reported. | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Except as described below, there have been no material changes to the Company’s significant accounting policies for the quarter and nine months ended March 31, 2014 from the information included in the notes to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2013. For a discussion of the Company’s significant accounting policies, please see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | |
During the third quarter of fiscal 2014, the Company changed its annual goodwill impairment testing date from June 30 to April 30. This voluntary change is considered preferable as it better aligns the timing of the impairment test with management’s financial planning and budgeting process, and ensures the completion of the test prior to the end of the annual reporting period. This change does not accelerate, delay or avoid a potential impairment charge. The Company will complete its annual goodwill impairment test during the fourth quarter of fiscal 2014. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains some zero-balance, disbursement accounts at various financial institutions in which the Company does not maintain significant depository relationships. Due to the nature of the Company’s banking relationships with these institutions, the Company does not have the right to offset most if not all outstanding checks written from these accounts against cash on hand, and the respective institutions are not legally obligated to honor the checks until sufficient funds are transferred to fund the checks. Checks released but not yet cleared from these accounts in the amounts of $53.2 million and $65.9 million are included in accounts payable as of March 31, 2014 and June 30, 2013, respectively. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
There are currently no new accounting pronouncements that are expected to have a significant impact on the Company's financial position, results of operations and cash flows. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings per Share | ' | |||||||||||||||
Quarter ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net Income | $ | 16,949 | $ | 13,978 | $ | 54,684 | $ | 47,977 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares, basic | 28,502 | 27,847 | 28,275 | 27,725 | ||||||||||||
Dilutive effect of share-based payments | 228 | 177 | 273 | 235 | ||||||||||||
Weighted-average shares, diluted | 28,730 | 28,024 | 28,548 | 27,960 | ||||||||||||
Net income per common share, basic | $ | 0.59 | $ | 0.5 | $ | 1.93 | $ | 1.73 | ||||||||
Net income per common share, diluted | $ | 0.59 | $ | 0.5 | $ | 1.92 | $ | 1.72 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Components Of Accumulated Other Comprehensive Income, Net Of Tax | ' | |||||||
Accumulated other comprehensive income (loss) consists of the following: | ||||||||
March 31, | June 30, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Foreign currency translation adjustment | $ | (17,514 | ) | $ | (22,972 | ) | ||
Accumulated other comprehensive income (loss) | $ | (17,514 | ) | $ | (22,972 | ) | ||
Goodwill_and_Other_Identifiabl1
Goodwill and Other Identifiable Intangible Assets (Tables) | 9 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Changes in the Carrying Amount of Goodwill | ' | |||||||||||
The changes in the carrying amount of goodwill for the nine months ended March 31, 2014, by reporting segment, are as follows: | ||||||||||||
Barcode & Security Segment | Communications & Services Segment | Total | ||||||||||
(in thousands) | ||||||||||||
Balance as of June 30, 2013 | $ | 16,329 | $ | 15,466 | $ | 31,795 | ||||||
Foreign currency translation adjustment | 348 | — | 348 | |||||||||
Balance as of March 31, 2014 | $ | 16,677 | $ | 15,466 | $ | 32,143 | ||||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ' | |||||||||||||||
Derivative Contracts and Changes in Underlying Value of the Foreign Currency Exposures | ' | |||||||||||||||
Quarter ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Net foreign exchange derivative contract (gains) losses | $ | 114 | $ | (2,092 | ) | $ | 2,511 | $ | (759 | ) | ||||||
Net foreign currency transactional and re-measurement (gains) losses | (57 | ) | 2,237 | (2,185 | ) | 1,087 | ||||||||||
Net foreign currency (gains) losses | $ | 57 | $ | 145 | $ | 326 | $ | 328 | ||||||||
Derivative Instruments | ' | |||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Fair Value of | Fair Value of | |||||||||||||||
Derivatives | Derivatives | |||||||||||||||
Designated as Hedge | Not Designated as Hedge | |||||||||||||||
Instruments | Instruments | |||||||||||||||
(in thousands) | ||||||||||||||||
Derivative assets:(a) | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 23 | ||||||||||||
Derivative liabilities:(b) | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 61 | ||||||||||||
(a) | All derivative assets are recorded as prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. | |||||||||||||||
(b) | All derivative liabilities are recorded as accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Short-term Investments and Financial Instruments | ' | |||||||||||||||
March 31, 2014: | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | ||||||||||||||
active | observable | inputs | ||||||||||||||
markets | inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 15,403 | $ | 15,403 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 23 | — | 23 | — | ||||||||||||
Total assets at fair value | $ | 15,426 | $ | 15,403 | $ | 23 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 15,403 | $ | 15,403 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 61 | — | 61 | — | ||||||||||||
Liability for contingent consideration, current and non-current portion | 10,736 | — | — | 10,736 | ||||||||||||
Total liabilities at fair value | $ | 26,200 | $ | 15,403 | $ | 61 | $ | 10,736 | ||||||||
The following table summarizes the valuation of the Company’s remaining assets and liabilities measured at fair value on a recurring basis as of June 30, 2013: | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | ||||||||||||||
active | observable | inputs | ||||||||||||||
markets | inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 13,752 | $ | 13,752 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 308 | — | 308 | — | ||||||||||||
Total assets at fair value | $ | 14,060 | $ | 13,752 | $ | 308 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 13,752 | $ | 13,752 | $ | — | $ | — | ||||||||
Forward foreign currency exchange contracts | 34 | — | 34 | — | ||||||||||||
Liability for contingent consideration, current and non-current portion | 12,545 | — | — | 12,545 | ||||||||||||
Total liabilities at fair value | $ | 26,331 | $ | 13,752 | $ | 34 | $ | 12,545 | ||||||||
Fair Value, Business Acquisition, Liability for Contingent Consideration | ' | |||||||||||||||
March 31, 2014 and 2013: | ||||||||||||||||
Contingent consideration for the | Contingent consideration for the nine months ended | |||||||||||||||
quarter ended | ||||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Fair value at beginning of period | $ | 9,547 | $ | 13,090 | $ | 12,545 | $ | 16,653 | ||||||||
Payments | (147 | ) | (61 | ) | (3,793 | ) | (4,777 | ) | ||||||||
Change in fair value of contingent consideration | 981 | 100 | 2,218 | 1,396 | ||||||||||||
Foreign currency translation adjustment | 355 | 192 | (234 | ) | 49 | |||||||||||
Fair value at end of period | $ | 10,736 | $ | 13,321 | $ | 10,736 | $ | 13,321 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | ' | |||||||||||||||
Financial Information by Segment | ' | |||||||||||||||
Quarter ended | Nine months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Sales: | ||||||||||||||||
Worldwide Barcode & Security | $ | 455,822 | $ | 438,191 | $ | 1,382,672 | $ | 1,383,453 | ||||||||
Worldwide Communications & Services | 227,176 | 244,774 | 772,848 | 780,833 | ||||||||||||
$ | 682,998 | $ | 682,965 | $ | 2,155,520 | $ | 2,164,286 | |||||||||
Depreciation and amortization: | ||||||||||||||||
Worldwide Barcode & Security | $ | 1,024 | $ | 1,415 | $ | 3,159 | $ | 4,274 | ||||||||
Worldwide Communications & Services | 719 | 773 | 2,232 | 2,330 | ||||||||||||
$ | 1,743 | $ | 2,188 | $ | 5,391 | $ | 6,604 | |||||||||
Operating income: | ||||||||||||||||
Worldwide Barcode & Security | $ | 13,820 | $ | 10,413 | $ | 38,734 | $ | 36,326 | ||||||||
Worldwide Communications & Services | 11,845 | 10,382 | 42,613 | 35,109 | ||||||||||||
$ | 25,665 | $ | 20,795 | $ | 81,347 | $ | 71,435 | |||||||||
Capital expenditures: | ||||||||||||||||
Worldwide Barcode & Security | $ | 204 | $ | 181 | $ | 507 | $ | 324 | ||||||||
Worldwide Communications & Services | 130 | 211 | 249 | 877 | ||||||||||||
Corporate | 6,029 | 868 | 6,029 | 3,262 | ||||||||||||
$ | 6,363 | $ | 1,260 | $ | 6,785 | $ | 4,463 | |||||||||
Sales by Geography Category: | ||||||||||||||||
North America | $ | 508,751 | $ | 519,502 | $ | 1,637,308 | $ | 1,647,115 | ||||||||
International | 184,225 | 174,571 | 553,318 | 562,093 | ||||||||||||
Less intercompany sales | (9,978 | ) | (11,108 | ) | (35,106 | ) | (44,922 | ) | ||||||||
$ | 682,998 | $ | 682,965 | $ | 2,155,520 | $ | 2,164,286 | |||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | |||||||||||||||
March 31, 2014 | June 30, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Worldwide Barcode & Security | $ | 663,135 | $ | 609,939 | ||||||||||||
Worldwide Communications & Services | 399,030 | 387,097 | ||||||||||||||
Corporate | 190,209 | 167,147 | ||||||||||||||
$ | 1,252,374 | $ | 1,164,183 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Pre-acquisition contingencies and corresponding indemnification receivables | ' | |||||||
March 31, 2014 | 30-Jun-13 | |||||||
(in thousands) | ||||||||
Assets | ||||||||
Prepaid expenses and other current assets | $ | 4,889 | $ | 5,061 | ||||
Other non-current assets | $ | 1,189 | $ | 2,905 | ||||
Liabilities | ||||||||
Accrued expenses and other current liabilities | $ | 4,889 | $ | 5,061 | ||||
Other long-term liabilities | $ | 1,189 | $ | 2,905 | ||||
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Outstanding Checks | $53.20 | $65.90 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Numerator: Net income | $16,949 | $13,978 | $54,684 | $47,977 |
Weighted-average shares outstanding, basic (in shares) | 28,502,000 | 27,847,000 | 28,275,000 | 27,725,000 |
Dilutive effect of share-based payments | 228,000 | 177,000 | 273,000 | 235,000 |
Weighted-average shares outstanding, diluted (in shares) | 28,730,000 | 28,024,000 | 28,548,000 | 27,960,000 |
Net income per common share, basic (in dollars per share) | $0.59 | $0.50 | $1.93 | $1.73 |
Net income per common share, diluted (in dollars per share) | $0.59 | $0.50 | $1.92 | $1.72 |
Weighted average shares excluded from the computation of diluted earnings per share | 275,635 | 1,119,940 | 203,384 | 1,097,610 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | ($17,514,000) | ' | ($17,514,000) | ' | ($22,972,000) |
Accumulated other comprehensive income (loss) | -17,514,000 | ' | -17,514,000 | ' | -22,972,000 |
Other Comprehensive Income (Loss), Tax | ($200,000) | $300,000 | ($200,000) | ($100,000) | ' |
Goodwill_and_Other_Identifiabl2
Goodwill and Other Identifiable Intangible Assets (Narrative) (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Finite-Lived Intangible Assets, Net | $16.90 | $19.80 |
Goodwill_and_Other_Identifiabl3
Goodwill and Other Identifiable Intangible Assets (Changes in the Carrying Amount of Goodwill) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | $31,795 |
Foreign currency translation adjustment | 348 |
Goodwill, ending balance | 32,143 |
Barcode & Security Segment [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 16,329 |
Foreign currency translation adjustment | 348 |
Goodwill, ending balance | 16,677 |
Communications & Services Segment [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 15,466 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | $15,466 |
ShortTerm_Borrowings_and_LongT1
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | Industrial Development Revenue Bond [Member] | Industrial Development Revenue Bond [Member] | Foreign Line of Credit [Member] | Foreign Line of Credit [Member] | Foreign Line of Credit [Member] | Multi-Currency Revolving Credit Facility, Combined with Accordion Feature [Member] | Multi-Currency Revolving Credit Facility, Accordion Feature [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Letter of Credit [Member] | Alternate Base Rate Loans [Member] | Alternate Base Rate Loans [Member] | Alternate Base Rate Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
USD ($) | USD ($) | EUR (€) | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Amended Credit Agreement [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Revolving Credit Facility [Member] | ||
EUR (€) | quarter | USD ($) | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | 1.01% | 1.04% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under credit facility | ' | ' | ' | € 6,000,000 | ' | ' | $450,000,000 | $150,000,000 | ' | $300,000,000 | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' |
Debt issuance costs incurred | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage spread points on variable rate debt instrument | ' | 0.85% | ' | 1.25% | 1.25% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 1.25% | 1.00% | 1.00% | 2.25% |
Line of credit facility, unused capacity, commitment fee percentage | ' | ' | ' | ' | 0.10% | 0.28% | ' | ' | ' | ' | ' | ' | 0.18% | 0.40% | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused capacity, threshold for commitment fees | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11-Oct-16 | ' | 6-Nov-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amendment date of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-Nov-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of quarters in measurement period (in number of quarters) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of capital stock or other equity interest pledged per credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average daily balance on revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of debt instrument | ' | 1-Sep-32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum time period of interest (in years) | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal due on exercise of put option | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Put option, redemption percentage | ' | $5,400,000 | $5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Put option, exercisable period limitation | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Put option, anniversary period | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Narrative) (Details) (Foreign Exchange Contract [Member], USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contract [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount of foreign currency contracts outstanding | $62.50 | $81.30 |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Derivative Contracts and Changes in Underlying Value of the Foreign Currency Exposures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ' | ' | ' | ' |
Net foreign exchange derivative contract (gains) losses | $114 | ($2,092) | $2,511 | ($759) |
Net foreign currency transactional and re-measurement (gains) losses | -57 | 2,237 | -2,185 | 1,087 |
Net foreign currency (gains) losses | $57 | $145 | $326 | $328 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Derivative Instruments) (Details) (Foreign Exchange Contract [Member], USD $) | Mar. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Designated as Hedge Instruments [Member] | ' | |
Derivative assets: foreign exchange contracts | $0 | [1] |
Derivative liabilities: foreign exchange contracts | 0 | [2] |
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedge Instruments [Member] | ' | |
Derivative assets: foreign exchange contracts | 23 | [1] |
Derivative liabilities: foreign exchange contracts | $61 | [2] |
[1] | All derivative assets are recorded as prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. | |
[2] | All derivative liabilities are recorded as accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Short-term Investments and Financial Instruments at Fair Value) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | ||||||
Assets | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | $15,403 | ' | $13,752 | ' | ' | ' |
Forward foreign currency exchange contracts | 23 | ' | 308 | ' | ' | ' |
Total asset at fair value | 15,426 | ' | 14,060 | ' | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 15,403 | ' | 13,752 | ' | ' | ' |
Forward foreign currency exchange contracts | 61 | ' | 34 | ' | ' | ' |
Liability for contingent consideration, current and non-current portion | 10,736 | ' | 12,545 | ' | ' | ' |
Total liabilities at fair value | 26,200 | ' | 26,331 | ' | ' | ' |
Quoted Prices in Active Markets (Level 1) [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 15,403 | ' | 13,752 | ' | ' | ' |
Forward foreign currency exchange contracts | 0 | ' | 0 | ' | ' | ' |
Total asset at fair value | 15,403 | ' | 13,752 | ' | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 15,403 | ' | 13,752 | ' | ' | ' |
Forward foreign currency exchange contracts | 0 | ' | 0 | ' | ' | ' |
Liability for contingent consideration, current and non-current portion | 0 | ' | 0 | ' | ' | ' |
Total liabilities at fair value | 15,403 | ' | 13,752 | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 0 | ' | 0 | ' | ' | ' |
Forward foreign currency exchange contracts | 23 | ' | 308 | ' | ' | ' |
Total asset at fair value | 23 | ' | 308 | ' | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 0 | ' | 0 | ' | ' | ' |
Forward foreign currency exchange contracts | 61 | ' | 34 | ' | ' | ' |
Liability for contingent consideration, current and non-current portion | 0 | ' | 0 | ' | ' | ' |
Total liabilities at fair value | 61 | ' | 34 | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 0 | ' | 0 | ' | ' | ' |
Forward foreign currency exchange contracts | 0 | ' | 0 | ' | ' | ' |
Total asset at fair value | 0 | ' | 0 | ' | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' | ' | ' |
Deferred compensation plan investments, current and non-current portion | 0 | ' | 0 | ' | ' | ' |
Forward foreign currency exchange contracts | 0 | ' | 0 | ' | ' | ' |
Liability for contingent consideration, current and non-current portion | 10,736 | 9,547 | 12,545 | 13,321 | 13,090 | 16,653 |
Total liabilities at fair value | $10,736 | ' | $12,545 | ' | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Fair Value, Business Acquisition, Liability for Contingent Consideration) (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' |
Fair value at beginning of period | $10,736,000 | $12,545,000 | $9,547,000 | $13,090,000 | $12,545,000 | $16,653,000 |
Payments | ' | ' | -147,000 | -61,000 | -3,793,000 | -4,777,000 |
Change in fair value of contingent consideration | ' | ' | 981,000 | 100,000 | 2,218,000 | 1,396,000 |
Foreign currency translation adjustment | ' | ' | 355,000 | 192,000 | -234,000 | 49,000 |
Fair value at end of period | 10,736,000 | 12,545,000 | 10,736,000 | 13,321,000 | 10,736,000 | 13,321,000 |
Current portion of contingent consideration | 5,718,000 | 3,732,000 | ' | ' | ' | ' |
Contingent consideration arrangements, maximum range of outcome | $13,200,000 | ' | ' | ' | ' | ' |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 9 Months Ended |
Mar. 31, 2014 | |
segment | |
Segment Reporting, Measurement Disclosures [Abstract] | ' |
Number of reportable segments | 2 |
Segment_Information_Financial_
Segment Information (Financial Information by Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | $682,998 | $682,965 | $2,155,520 | $2,164,286 |
Depreciation and amortization | 1,743 | 2,188 | 5,391 | 6,604 |
Operating Income | 25,665 | 20,795 | 81,347 | 71,435 |
Capital expenditures | 6,363 | 1,260 | 6,785 | 4,463 |
Worldwide Barcode & Security [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 455,822 | 438,191 | 1,382,672 | 1,383,453 |
Depreciation and amortization | 1,024 | 1,415 | 3,159 | 4,274 |
Operating Income | 13,820 | 10,413 | 38,734 | 36,326 |
Capital expenditures | 204 | 181 | 507 | 324 |
North American Distribution [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 508,751 | 519,502 | 1,637,308 | 1,647,115 |
Worldwide Communications & Services [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 227,176 | 244,774 | 772,848 | 780,833 |
Depreciation and amortization | 719 | 773 | 2,232 | 2,330 |
Operating Income | 11,845 | 10,382 | 42,613 | 35,109 |
Capital expenditures | 130 | 211 | 249 | 877 |
International Distribution [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 184,225 | 174,571 | 553,318 | 562,093 |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Capital expenditures | 6,029 | 868 | 6,029 | 3,262 |
Less intercompany sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | ($9,978) | ($11,108) | ($35,106) | ($44,922) |
Segment_Information_Assets_By_
Segment Information (Assets By Segment) (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets | $1,252,374 | $1,164,183 |
Worldwide Barcode & Security [Member] | ' | ' |
Assets | 663,135 | 609,939 |
Worldwide Communications & Services [Member] | ' | ' |
Assets | 399,030 | 387,097 |
Corporate [Member] | ' | ' |
Assets | $190,209 | $167,147 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (CDC Brasil S A [Member], USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
CDC Brasil S A [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Prepaid expenses and other current assets | $4,889 | $5,061 |
Other non-current assets | 1,189 | 2,905 |
Accrued expenses and other current liabilities | 4,889 | 5,061 |
Other long-term liabilities | $1,189 | $2,905 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 |
Scenario, Adjustment [Member] | Scenario, Adjustment [Member] | Minimum [Member] | |||
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Gross unrecognized tax benefits | $1.20 | $1 | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate if recognized | 0.7 | ' | ' | ' | ' |
Open year subject to income tax examinations | ' | ' | ' | ' | '2009 |
Income tax penalties and interest accrued | 0.9 | ' | ' | ' | ' |
Current state and local tax benefit | ' | ' | $0.10 | ($0.70) | ' |
Federal statutory income tax rate | 35.00% | ' | ' | ' | ' |