DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 07, 2018 | Sep. 29, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PLANTRONICS INC /CA/ | ||
Entity Central Index Key | 914,025 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K/A | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Entity Common Stock, Shares Outstanding | 33,261,047 | ||
Amendment Description | This Amendment is being filed solely to correct an administrative error on the cover page of the Original Report with respect to the number of shares outstanding of the Company’s common stock as of May 7, 2018. The correct number of shares of the Company’s common stock outstanding as of May 7, 2018 was 33,261,047. | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,459,034,920 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 390,661 | $ 301,970 |
Short-term investments | 269,313 | 178,179 |
Accounts receivable, net | 152,888 | 141,177 |
Inventory, net | 68,276 | 55,456 |
Other current assets | 18,588 | 22,195 |
Total current assets | 899,726 | 698,977 |
Long-term investments | 0 | 127,176 |
Property, plant, and equipment, net | 142,129 | 150,307 |
Goodwill and purchased intangibles, net | 15,498 | 15,577 |
Deferred tax and other assets | 19,534 | 25,122 |
Total assets | 1,076,887 | 1,017,159 |
Current liabilities: | ||
Accounts payable | 45,417 | 42,885 |
Accrued liabilities | 80,097 | 74,285 |
Total current liabilities | 125,514 | 117,170 |
Long term debt, net of issuance costs | 492,509 | 491,059 |
Long-term income taxes payable | 87,328 | 11,729 |
Other long-term liabilities | 18,566 | 15,045 |
Total liabilities | 723,917 | 635,003 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value per share; 1,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock, $0.01 par value per share; 100,000 shares authorized, 48,088 shares and 49,278 shares issued at 2017 and 2018, respectively | 816 | 804 |
Additional paid-in capital | 876,645 | 818,777 |
Accumulated other comprehensive income | 2,870 | 4,694 |
Retained earnings | 299,066 | 319,931 |
Total stockholders' equity before treasury stock | 1,179,397 | 1,144,206 |
Less: Treasury stock (common: 14,672 shares and 16,027 shares at 2017 and 2018, respectively) at cost | (826,427) | (762,050) |
Total stockholders' equity | 352,970 | 382,156 |
Total liabilities and stockholders' equity | $ 1,076,887 | $ 1,017,159 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 49,278,000 | 48,088,000 |
Treasury stock, common shares | 16,027,000 | 14,672,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | |||
Net revenues | $ 856,903 | $ 881,176 | $ 856,907 |
Cost of revenues | 417,788 | 439,806 | 422,233 |
Gross profit | 439,115 | 441,370 | 434,674 |
Operating expenses: | |||
Research, development, and engineering | 84,193 | 88,318 | 90,408 |
Selling, general, and administrative | 229,390 | 223,830 | 221,299 |
(Gain) loss, net from litigation settlements | (420) | 4,255 | (1,234) |
Restructuring and other related charges (credits) | 2,451 | (109) | 16,160 |
Total operating expenses | 315,614 | 316,294 | 326,633 |
Operating income | 123,501 | 125,076 | 108,041 |
Interest expense | (29,297) | (29,230) | (25,149) |
Other non-operating income and (expense), net | 6,023 | 5,819 | (716) |
Income before income taxes | 100,227 | 101,665 | 82,176 |
Income tax expense | 101,096 | 19,066 | 13,784 |
Net income | $ (869) | $ 82,599 | $ 68,392 |
Earnings per common share: | |||
Basic (in dollars per share) | $ (0.03) | $ 2.56 | $ 2 |
Diluted (in dollars per share) | $ (0.03) | $ 2.51 | $ 1.96 |
Shares used in computing earnings per common share: | |||
Basic (in shares) | 32,345 | 32,279 | 34,127 |
Diluted (in shares) | 32,345 | 32,963 | 34,938 |
Cash dividends declared per common share (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.60 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ (869) | $ 82,599 | $ 68,392 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 257 | (311) | 376 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized cash flow hedge gains (losses) arising during the year | (6,741) | 3,095 | (3,786) |
Net (gains) losses reclassified into net revenues for revenue hedges (effective portion) | 4,715 | (4,111) | (7,826) |
Net (gains) losses reclassified into cost of revenues for cost of revenues hedges (effective portion) | (208) | 2,663 | 4,801 |
Net unrealized gains (losses) on cash flow hedges | (2,234) | 1,647 | (6,811) |
Unrealized holding gains (losses) during the year | 48 | (516) | (67) |
Aggregate income tax benefit (expense) of the above items | 105 | 115 | 141 |
Other comprehensive income (loss) | (1,824) | 935 | (6,361) |
Comprehensive income (loss) | $ (2,693) | $ 83,534 | $ 62,031 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ (869) | $ 82,599 | $ 68,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,178 | 20,977 | 20,142 |
Amortization of debt issuance costs | 1,450 | 1,450 | 1,208 |
Stock-based compensation | 33,959 | 33,539 | 33,265 |
Deferred income taxes | 7,464 | (657) | (8,291) |
Provision for excess and obsolete inventories | 3,456 | 1,960 | 2,430 |
Restructuring charges | 2,451 | (109) | 16,160 |
Cash payments for restructuring charges | (2,942) | (4,001) | (10,385) |
Other operating activities | (305) | 2,948 | 7,680 |
Changes in assets and liabilities: | |||
Accounts receivable | (12,238) | (13,894) | 8,445 |
Inventory | (13,309) | (3,791) | 1,357 |
Current and other assets | (2,480) | 1,386 | (605) |
Accounts payable | 2,884 | 4,377 | 5,407 |
Accrued liabilities | (4,164) | 13,260 | 4,998 |
Income taxes | 84,613 | (657) | 206 |
Cash provided by operating activities | 121,148 | 139,387 | 150,409 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of investments | 197,575 | 157,066 | 102,517 |
Proceeds from maturities of investments | 211,663 | 144,092 | 97,164 |
Purchase of investments | (373,281) | (300,434) | (300,620) |
Capital expenditures | (12,468) | (23,176) | (30,661) |
Cash used for investing activities | 23,489 | (22,452) | (131,600) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repurchase of common stock | (52,948) | (34,236) | (497,393) |
Employees' tax withheld and paid for restricted stock and restricted stock units | (11,429) | (9,736) | (11,068) |
Proceeds from issuances under stock-based compensation plans | 23,927 | 15,202 | 15,384 |
Payment of cash dividends | (19,996) | (19,959) | (21,061) |
Proceeds from revolving line of credit | 8,000 | 0 | 155,749 |
Repayments of revolving line of credit | (8,000) | 0 | (190,249) |
Proceeds from bonds issuance, net of issuance costs | 0 | 0 | 488,401 |
Other financing activity | 0 | 761 | 0 |
Cash used for financing activities | (60,446) | (47,968) | (60,237) |
Effect of exchange rate changes on cash and cash equivalents | 4,500 | (2,263) | (156) |
Net increase (decrease) in cash and cash equivalents | 88,691 | 66,704 | (41,584) |
Cash and cash equivalents at beginning of year | 301,970 | 235,266 | 276,850 |
Cash and cash equivalents at end of year | 390,661 | 301,970 | 235,266 |
SUPPLEMENTAL DISCLOSURES | |||
Cash paid for income taxes | 9,757 | 20,948 | 25,517 |
Cash paid for interest | $ 27,899 | $ 27,783 | $ 12,833 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
Common stock, shares, beginning of period at Mar. 31, 2015 | 41,601,000 | |||||
Stockholders' equity, beginning of period at Mar. 31, 2015 | $ 727,397 | $ 783 | $ 717,848 | $ 10,120 | $ 209,960 | $ (211,314) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 68,392 | 68,392 | ||||
Foreign currency translation adjustments | 376 | 376 | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | (6,680) | (6,680) | ||||
Net unrealized gains (losses) on investments, net of tax | (57) | (57) | ||||
Proceeds from issuances under stock-based compensation plans, shares | 1,155,000 | |||||
Proceeds from issuances under stock-based compensation plans | 15,384 | $ 10 | 15,374 | |||
Repurchase of restricted common stock, shares | (158,000) | |||||
Repurchase of restricted common stock | 0 | $ 0 | ||||
Cash dividends | (21,061) | (21,061) | ||||
Stock-based compensation | 33,265 | 33,265 | ||||
Tax benefit from stock-based awards | 3,515 | 3,515 | ||||
Repurchase of common stock, shares | (9,077,000) | |||||
Repurchase of common stock | (497,393) | (497,393) | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | (201,000) | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (11,068) | $ 0 | (11,068) | |||
Other equity changes related to compensation | 329 | (513) | 842 | |||
Common stock, shares, end of period at Mar. 31, 2016 | 33,320,000 | |||||
Stockholders' equity, end of period at Mar. 31, 2016 | 312,399 | $ 793 | 769,489 | 3,759 | 257,291 | (718,933) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 82,599 | 82,599 | ||||
Foreign currency translation adjustments | (311) | (311) | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | 1,616 | 1,616 | ||||
Net unrealized gains (losses) on investments, net of tax | (370) | (370) | ||||
Proceeds from issuances under stock-based compensation plans, shares | 1,125,000 | |||||
Proceeds from issuances under stock-based compensation plans | 15,204 | $ 11 | 15,193 | |||
Repurchase of restricted common stock, shares | (47,000) | |||||
Repurchase of restricted common stock | 0 | $ 0 | ||||
Cash dividends | (19,959) | (19,959) | ||||
Stock-based compensation | 33,539 | 33,539 | ||||
Tax benefit from stock-based awards | 546 | 546 | ||||
Repurchase of common stock, shares | (764,000) | |||||
Repurchase of common stock | (34,236) | (34,236) | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | (218,000) | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (9,736) | $ 0 | (9,736) | |||
Other equity changes related to compensation | 865 | 10 | 855 | |||
Common stock, shares, end of period at Mar. 31, 2017 | 33,416,000 | |||||
Stockholders' equity, end of period at Mar. 31, 2017 | 382,156 | $ 804 | 818,777 | 4,694 | 319,931 | (762,050) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (869) | (869) | ||||
Foreign currency translation adjustments | 257 | 257 | ||||
Net unrealized gains (losses) on cash flow hedges, net of tax | (2,190) | (2,190) | ||||
Net unrealized gains (losses) on investments, net of tax | 109 | 109 | ||||
Proceeds from issuances under stock-based compensation plans, shares | 1,288,000 | |||||
Proceeds from issuances under stock-based compensation plans | 23,927 | $ 12 | 23,915 | |||
Repurchase of restricted common stock, shares | (98,000) | |||||
Repurchase of restricted common stock | 0 | $ 0 | ||||
Cash dividends | (19,996) | (19,996) | ||||
Stock-based compensation | 33,959 | 33,959 | ||||
Tax benefit from stock-based awards | $ 0 | |||||
Repurchase of common stock, shares | (1,139,548) | (1,140,000) | ||||
Repurchase of common stock | $ (52,948) | (52,948) | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units, shares | (215,000) | |||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (11,429) | $ 0 | (11,429) | |||
Other equity changes related to compensation | (6) | (6) | ||||
Common stock, shares, end of period at Mar. 31, 2018 | 33,251,000 | |||||
Stockholders' equity, end of period at Mar. 31, 2018 | $ 352,970 | $ 816 | $ 876,645 | $ 2,870 | $ 299,066 | $ (826,427) |
THE COMPANY
THE COMPANY | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | THE COMPANY Plantronics, Inc. (“Plantronics” or “the Company”) is a leading worldwide designer, manufacturer, and marketer of lightweight communications headsets, telephone headset systems, and accessories for the business and consumer markets under the Plantronics brand. The Company operates its business as one segment. Founded in 1961, Plantronics is incorporated in the state of Delaware and trades on the New York Stock Exchange under the ticker symbol “PLT”. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Management's Use of Estimates and Assumptions The Company's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In connection with the preparation of our financial statements, the Company is required to make assumptions and estimates about future events, and apply judgments that affect the reported amounts of assets, liabilities, net revenues, expenses, and the related disclosures. The Company bases its assumptions, estimates, and judgments on historical experience, current trends, future expectations, and other factors that management believes to be relevant at the time the consolidated financial statements are prepared. On an ongoing basis, the Company reviews its accounting policies, assumptions, estimates, and judgments, including those related to revenue and related reserves and allowances, inventory valuation, product warranty obligations, the useful lives of long-lived assets including property, plant and equipment and intangible assets, investment fair values, stock-based compensation, goodwill, income taxes, contingencies, and restructuring charges, to ensure that the consolidated financial statements are presented fairly and in accordance with U.S. GAAP. Because future events and their effects cannot be determined with certainty, actual results could differ from the Company's assumptions and estimates. Principles of Consolidation The consolidated financial statements include the accounts of Plantronics and its wholly owned subsidiaries. The Company has included the results of operations of acquired companies from the date of acquisition. All intercompany balances and transactions have been eliminated. Fiscal Year The Company’s fiscal year ends on the Saturday closest to the last day of March. Fiscal Years 2018 and 2017 each had 52 weeks and ended on March 31, 2018 and April 1, 2017 , respectively. Fiscal Year 2016 had 53 weeks and ended on April 2, 2016 . For purposes of presentation, the Company has indicated its accounting fiscal year as ending on March 31. Financial Instruments Cash, Cash Equivalents and Investments All highly liquid investments with initial stated maturities of three months or less at the date of purchase are classified as cash equivalents. The Company classifies its investments as either short-term or long-term based on each instrument's underlying effective maturity date and reasonable expectations with regard to sales and redemptions of the instruments. All short-term investments have effective maturities less than 12 months, while all long-term investments have effective maturities greater than 12 months. The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. During the year ended March, 31, 2018, we sold our long-term investments and recognized a loss on sale of approximately $1.2 million . As of March 31, 2018 , with the exception of assets related to the Company's deferred compensation plan and classified as trading securities, all investments were classified as available-for-sale, with unrealized gains and losses recorded as a separate component of accumulated other comprehensive income ("AOCI") in stockholders’ equity. The specific identification method is used to determine the cost of disposed securities, with realized gains and losses reflected in other non-operating income and (expense), net. For investments with an unrealized loss, the factors considered in the review include the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, severity of impairment, reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, and whether the Company would be required to sell an investment due to liquidity or contractual reasons before its anticipated recovery. Foreign Currency Derivatives The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative foreign currency contracts are valued using pricing models that use observable inputs. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Company enters into foreign exchange forward contracts to reduce the impact of foreign currency fluctuations on assets and liabilities denominated in currencies other than the functional currency of the reporting entity. The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts are carried at fair value with changes in the fair value recorded within other non-operating income and (expense), net in the consolidated statements of operations. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes on the underlying foreign currency denominated assets and liabilities, and therefore, do not subject the Company to material balance sheet risk. The Company has significant international revenues and costs denominated in foreign currencies, subjecting it to foreign currency risk. The Company purchases foreign currency option contracts and cross-currency swaps that qualify as cash flow hedges, with maturities of up to 24 months, to reduce the volatility of cash flows related primarily to forecasted revenue and expenses. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of AOCI and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. The Company does not hold or issue derivative financial instruments for speculative trading purposes. The Company enters into derivatives only with counterparties that are among the largest United States ("U.S.") banks, ranked by assets, in order to minimize its credit risk and to date, no such counterparty has failed to meet its financial obligations under such contracts. Provision for Doubtful Accounts The Company maintains a provision for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Plantronics regularly performs credit evaluations of its customers’ financial conditions and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks, and economic conditions that may affect a customer’s ability to pay. Inventory and Related Reserves Inventories are valued at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. The Company writes down inventories that have become obsolete or are in excess of anticipated demand or net realizable value. Our estimate of write downs for excess and obsolete inventory is based on a detailed analysis of on-hand inventory and purchase commitments in excess of forecasted demand. A substantial portion of the raw materials, components and subassemblies (together, “parts”) used in the Company's products are provided by its suppliers on a consignment basis. These consigned inventories are not recorded on the Company's consolidated balance sheet until it takes title to the parts, which occurs when they are consumed in the production process. The Company provides forecasts to its suppliers covering up to thirteen weeks of demand and places purchase orders when the parts are consumed in the production process, at which time all right, title, and interest in and to the parts transfers to the Company. Prior to consumption in the production process, the Company's suppliers bear the risk of loss and retain title to the consigned inventory. The terms of the agreements allow the Company to return parts in excess of maximum order quantities to the suppliers at the supplier’s expense. Returns for other reasons are negotiated with the suppliers on a case-by-case basis and to date have been immaterial. As of March 31, 2018 , the Company’s aggregate commitment to suppliers for parts used in the manufacture of the Company’s products was $190.0 million , which the Company expects to utilize in the normal course of business, net of an immaterial purchase commitments reserve. The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to use in normal ongoing operations within the next twelve months. As of March 31, 2018 and 2017 , the off-balance sheet consigned inventory balances were $48.8 million and $52.3 million , respectively. Product Warranty Obligations The Company records a liability for the estimated costs of warranties at the time the related revenue is recognized. The specific warranty terms and conditions range from one to two years starting from the delivery date to the end user and vary depending upon the product sold and the country in which the Company does business. Factors that affect the warranty obligations include product failure rates, estimated return rates, the amount of time lapsed from the date of sale to the date of return, material usage, service related costs incurred in correcting product failure claims, and knowledge of specific product failures that are outside of the Company’s typical experience. Goodwill and Purchased Intangibles Goodwill has been measured as the excess of the cost of acquisition over the amount assigned to tangible and identifiable intangible assets acquired less liabilities assumed. At least annually, in the fourth quarter of each fiscal year or more frequently if indicators of impairment exist, management performs a review to determine if the carrying value of goodwill is impaired. The identification and measurement of goodwill impairment involves the estimation of fair value at the Company’s reporting unit level. The Company determines its reporting units by assessing whether discrete financial information is available and if segment management regularly reviews the results of that component. The Company has determined it has one reporting unit. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, the first step of the two-step impairment test must be performed by estimating the fair value of the reporting unit and comparing it with its carrying value, including goodwill. Intangible assets other than goodwill are carried at cost and amortized over their estimated useful lives. The Company reviews identifiable finite-lived intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its ultimate disposition. Measurement of any impairment loss is based on the amount by which the carrying value of the asset exceeds its fair market value. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which range from two to thirty years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the assets. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company recognizes an impairment charge in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to the asset group. No material impairment losses were incurred in the periods presented. Fair Value Measurements All financial assets and liabilities are recognized or disclosed at fair value in the financial statements. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 The Company's Level 1 financial assets consist of Mutual Funds and US Treasury Notes. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities. Level 2 The Company's Level 2 financial assets and liabilities consist of derivative foreign currency contracts, Government Agency Securities, Commercial Paper, Corporate Bonds, Certificates of Deposits ("CDs"), and 5.50% senior notes (the " 5.50% Senior Notes"). The fair value of Level 2 investment securities is determined based on other observable inputs, including multiple non-binding quotes from independent pricing services. Non-binding quotes are based on proprietary valuation models that are prepared by the independent pricing services and use algorithms based on inputs such as observable market data, quoted market prices for similar securities, issuer spreads, and internal assumptions of the broker. The Company corroborates the reasonableness of non-binding quotes received from the independent pricing services using a variety of techniques depending on the underlying instrument, including: (i) comparing them to actual experience gained from the purchases and maturities of investment securities, (ii) comparing them to internally developed cash flow models based on observable inputs, and (iii) monitoring changes in ratings of similar securities and the related impact on fair value. The fair value of Level 2 derivative foreign currency contracts is determined using pricing models that use observable market inputs. The fair value of Level 2 long-term debt is determined based on inputs that were observable in the market, including the trading price of the notes when available. The fair value of the Company's 5.50% Senior Notes is determined based on observable market inputs, including the trading price of the 5.50% Senior Notes. Level 3 The Company's unsecured revolving credit facility falls under the Level 3 hierarchy. The fair value of the Company’s line of credit approximates its carrying value because the interest rate is a variable rate that approximates rates currently available to the Company. Revenue Recognition The Company sells substantially all of its products to end users through distributors, retailers, and carriers. The Company's revenue is derived from the sale of headsets, telephone headset systems, and accessories for the business and consumer markets and is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. These criteria are usually met at the time of product shipment; however, the Company defers revenue when any significant obligations remain and for Fiscal Years 2016 , 2017 , and 2018 this accounted for less than 1% of the Company's net revenues. Customer contracts and/or purchase orders are used to determine the existence of an arrangement. Product is considered delivered once it has been shipped and title and risk of loss have been transferred to the customer. The Company assesses whether a price is fixed or determinable based upon the selling terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company assesses collectability based on a customer's credit quality, historical experience, and geographic or country-specific risks and economic conditions that may affect a customer's ability to pay. Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Shipping and handling costs incurred in connection with the sale of products are included in cost of revenues. Sales through retail and distribution channels are made primarily under agreements or commitments 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 can reasonably estimate back end rebates, discounts and similar incentives due to an established sales history with its customers and records the estimated reserves and allowances at the time the related revenue is recognized. The Company recognizes marketing development funds at the later of when the related revenue is recognized or the program is offered to the channel partner. The nature of the sales incentive programs offered to channel partners is such that the Company cannot identify a benefit that is sufficiently separable from the channel partners’ purchase of products, nor does it have the infrastructure to establish fair value for the multitude of activities supported by these programs. As a result, substantially all sales incentives to our channel partners in the form of cash consideration, are recorded as a reduction to revenue. Sales return reserves are estimated based on historical data, relevant current data, and the monitoring of inventory build-up in the distribution channel. When a sales arrangement contains multiple elements, such as hardware and software products and/or services, the Company allocates revenue to each element based on relative selling prices. The selling price for a deliverable is based on its vendor specific objective evidence ("VSOE"), if available, third party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. In multiple element arrangements where more-than-incidental software deliverables are included, the Company allocates revenue to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Advertising Costs The Company expenses all advertising costs as incurred. Advertising expense for the years ended March 31, 2016 , 2017 , and 2018 was $2.0 million , $1.8 million , and $0.9 million , respectively. Income Taxes Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company's current tax liability and changes in deferred income tax assets and liabilities. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. The Company follows the tax law ordering to determine when excess tax benefits have been realized. The Company is subject to income taxes in the U.S. and foreign jurisdictions. At any one time, multiple tax years are subject to audit by various tax authorities. Earnings Per Share The Company has a share-based compensation plan under which employees, non-employee directors, and consultants may be granted share-based payment awards, including shares of restricted stock on which non-forfeitable dividends are paid on unvested shares. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share. Historically, the two-class method of calculating earnings per share did not have a material impact on the Company's earnings per share calculation under the treasury stock method. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. For further details refer to Note 17, Computation of Earnings Per Common Share . Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to income, expenses, gains, and losses that under U.S. GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Accumulated other comprehensive income, as presented in the accompanying consolidated balance sheets, consists of foreign currency translation adjustments, unrealized gains and losses on derivatives designated as cash flow hedges, net of tax, and unrealized gains and losses on marketable securities classified as available-for-sale, net of tax. Foreign Operations and Currency Translation The Company's functional currency is the U.S. Dollar (“USD") . Assets and liabilities denominated in currencies other than the USD, are re-measured at the period-end rates for monetary assets and liabilities and at historical rates for non-monetary assets and liabilities. Revenues and expenses are re-measured at average monthly rates, which approximate actual rates. Currency transaction gains and losses are recognized in other non-operating income and (expense), net. Stock-Based Compensation Expense The Company applies the provisions of the Compensation - Stock Compensation Topic of the FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee directors based on estimated fair values. The Company recognizes the grant-date fair value of stock-based compensation as compensation expense using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest. The Company adopted the new stock-based compensation accounting guidance effective in Fiscal Year 2018. This new guidance requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were recorded as part of additional paid-in capital. The adoption of this guidance had an immaterial impact on the Company's effective tax rate for the year ended March 31, 2018. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP. For further details refer to Note 16, Income Taxes . Treasury Shares From time to time, the Company repurchases shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions, in accordance with programs authorized by the Board of Directors. Repurchased shares are held as treasury stock until such time as they are retired or re-issued. Retirements of treasury stock are non-cash equity transactions in which the reacquired shares are returned to the status of authorized but unissued shares and the cost is recorded as a reduction to both retained earnings and treasury stock. The stock repurchase programs are intended to offset the impact of dilution resulting from the Company's stock-based compensation programs. Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term and long-term investments, and trade accounts receivable. Plantronics’ investment policy limits investments to highly-rated securities. In addition, the Company limits the amount of credit exposure to any one issuer and restricts placement of these investments to issuers evaluated as creditworthy. As of March 31, 2017 and 2018 the Company's investments were composed of Mutual Funds, US Treasury Notes, Government Agency Securities, Commercial Paper, Corporate Bonds, and Certificates of Deposits ("CDs") . Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers that comprise the Company’s customer base and their dispersion across different geographies and markets. One customer Ingram Micro Group accounted for 17.6% of total net accounts receivable as of March 31, 2017 . Two customers, D & H Distributing Company and Ingram Micro Group, accounted for 13.0% and 12.4% , respectively, of total net accounts receivable as of March 31, 2018 . The Company does not believe other significant concentrations of credit risk exist. Plantronics performs ongoing credit evaluations of its customers' financial condition and requires no collateral from its customers. The Company maintains a provision for doubtful accounts based upon expected collectibility of all accounts receivable. Certain inventory components required by the Company are only available from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short lifecycles may intensify these risks. The inability to obtain components as required, or to develop alternative sources, as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. Immaterial Out-of-Period Correction: During the first quarter of Fiscal Year 2018, the Company recognized an out-of-period correction to its Fiscal Year 2017 geographic mix of taxable income, which resulted in an overstatement of Fiscal Year 2017 income tax expense by $2.8 million . The Company's correction, recognized in the quarter ended June 30, 2017, resulted in a $2.8 million benefit to income tax expense. The Company assessed the materiality of this error and concluded it was not material to Fiscal Years 2017 and 2018. Reclassifications Certain prior year amounts have been reclassified for consistency with current year presentation. Each of the reclassifications was immaterial and had no effect on the Company's results of operations. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance regarding revenue from contracts with customers. While the standard supersedes existing revenue recognition guidance, it closely aligns with current U.S. GAAP. Under the new standard, revenue will be recognized at the time control of a good or service is transferred to a customer for the amount of consideration received or to be received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. In March 2016, the FASB issued additional guidance concerning "Principal versus Agent" considerations (reporting revenue gross versus net); in April 2016, the FASB issued additional guidance on identifying performance obligations and licensing; and in May 2016, the FASB issued additional guidance on collectability, non-cash consideration, presentation of sales tax, and transition. These updates are intended to improve the operability and understandability of the implementation guidance and have the same effective date and transition requirements as the greater "contracts with customers" standard. The Company will adopt the standard, as amended, in the first quarter of its fiscal year ending March 31, 2019, utilizing the modified retrospective method of adoption. The Company has substantially completed its review of the impact of this guidance, and does not anticipate a material impact on its revenue recognition policies. The Company will continue to assess all potential impacts of the standard, and currently believes the most significantly impacted areas are the following: • Software Revenue: The Company currently defers revenue for the value of software where vendor specific objective evidence ("VSOE") of fair value has not been established for undelivered items. Under Topic 606, revenue for such licenses will be recognized at the transfer of control, rather than ratably, as the VSOE requirement no longer applies and the value of the remaining services are not material in the context of the contract. At March 31, 2018, deferred revenue under Topic 605 for these licenses was $ 2.3 million . The Company expects the remaining balance of such deferred revenue will be eliminated as a cumulative effect adjustment to opening retained earnings upon implementing Topic 606 in the first quarter of its fiscal year ending March 31, 2019. • Marketing Development Funds: The Company frequently provides marketing development funds to its channel partners. Under topic 605, our marketing development funds are recognized as a reduction of revenue at the later of when the related revenue is recognized or when the program is offered to the channel partner. Applying the criteria of Topic 606, these marketing development programs qualify as variable consideration, and are assigned as a reduction of the transaction price of the contract. This results in a timing difference such that all or some of the funds related to a program may be recognized in different periods than under Topic 605, depending on the circumstances. Based on analysis of prior periods, we anticipate that this timing difference impacts revenue by immaterial amounts in a given period. • Revenue Reserves: The Company establishes reserves for Discounts and Rebates and Sales Returns at the end of each fiscal period. These reserves are estimated based on current relevant and historical data, but there can be some variability associated with unforeseen changes in customer claim and return patterns. Under Topic 606, an entity shall estimate an amount of variable consideration by using a prescribed method that best depicts the amount of consideration to which it will be entitled and is required to consider whether appropriate groupings with similar characteristics have been applied when leveraging the portfolio practical expedient. In cases where there is uncertainty around the variable consideration amount, a constraint, or an adjustment to ensure that a significant revenue reversal will not occur, on that consideration must be considered. Based on analysis of prior periods, we anticipate that impact of estimating variable consideration using one of the prescribed methods and introducing a constraint will not materially impact revenue. The standard also requires new, expanded disclosures regarding revenue recognition. The Company will continue to monitor additional changes, modifications, clarifications or interpretations being undertaken by the FASB, which may impact its current conclusions. In January 2016, the FASB issued guidance regarding the recognition and measurement of financial assets and liabilities. Changes to the current U.S. GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The Company is required to adopt the standard in the first quarter of its fiscal year ending March 31, 2019. The Company is currently evaluating what impact, if any, the adoption of this standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued guidance regarding both operating and financing leases, requiring lessees to recognize on their balance sheets "right-of-use assets" and corresponding lease liabilities, measured on a discounted basis over the lease term. Virtually all leases will be subject to this treatment except leases that meet the definition of a "short-term lease". For expense recognition, the dual model requiring leases to be classified as either operating or finance leases has been retained from the prior standard. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. Classification will use criteria very similar to those applied in current lease accounting, but without explicit bright lines. Extensive additional quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of expense recognized and expected to be recognized. The new lease guidance will essentially eliminate off-balance sheet financing. The guidance is effective for the Company's fiscal year ending March 31, 2020. The new standard must be adopted using a modified retrospective transition that provides for certain practical expedients and requires the new guidance to be applied at the beginning of the earliest comparative period presented. The Company expects adoption of this guidance will materially increase the assets and liabilities recorded on its consolidated balance sheets, but is still evaluating the impact on its consolidated financial statements and related disclosures. In June 2016, the FASB issued guidance regarding the measurement of credit losses on financial instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. The guidance is effective for the Company's fiscal year ending March 31, 2021 with early adoption permitted beginning in the first quarter of Fiscal Year 2020. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued guidance that revises the definition of a business, providing a more robust framework for determining when a set of assets and activities is deemed a business. The guidance is effective for the Company's fiscal year ending March 31, 2019, including interim periods within that year, and is not expected to have a material impact on the Company's consolidated financial statements or related disclosures. In January 2017, the FASB issued guidance that simplifies the process required to test goodwill for impairment. The guidance is effective for the Company's fiscal year ending March 31, 2021, and is not expected to have a material impact on the Company's consolidated financial statements or related disclosures. In March 2017, the FASB issued guidance related to the amortization of premiums on purchased callable debt securities. This guidance shortens the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date instead of the maturity date. This guidance is effective for the Company's fiscal year ending March 31, 2020, including interim periods within that year. The Company expects the impact to be immaterial. In May 2017, the FASB issued guidance that clarifies the scope of modification accounting with respect to changes to the terms or conditions of a share-based payment award. This guidance is effective for the Company's fiscal year ending March 31, 2019, including interim periods within that year. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures, but expects the impact to be immaterial. In August 2017, the FASB issued guidance that eliminates the requirement to separately measure and report hedge ineffectiveness and that generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements, and modifies certain disclosure requirements. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. This guidance is effective for the Company's fiscal year ending March 31, 2020, including interim periods within that year. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures, but expects the impact to be immaterial. Recently Adopted Pronouncement Beginning Fiscal Year 2018, the Company adopted the FASB's new guidance, Improvements to Employee Share-Based Payment Accounting , which changes among other things, how the tax effects of share-based awards are recognized. This new guidance requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were recorded as part of additional paid-in capital. The provision for income taxes for the year ended March 31, 2018 included excess tax benefits that did not materially reduce the Company's effective tax rate. The provision for income taxes for the year ended March 31, 2018 included excess tax benefits of $2.7 million . The recognized excess tax benefits resulted from share-based compensation awards that vested or settled in Fiscal Year 2018. This guidance also eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the consolidated statements of cash flows. The Company adopted this provision retrospectively by reclassifying $3.5 million and $1.4 million of excess tax benefits from financing activities to operating activities in the consolidated statement of cash flows for the years ended March 31, 2016 and 2017. The Company also excluded the related tax benefits when computing diluted shares outstanding on a prospective basis as required by this guidance. In addition, the Company elected to continue its current practice of estimating expected forfeitures. The Company made no changes to its presentation of withholding taxes on the settlement of share-based payment awards, which were already presented as financing activities. The amount of excess tax benefits and deficiencies recognized in the provision for income taxes will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to share-based instruments under U.S. GAAP. Refer to additional discussion in Note 13, Income Taxes . |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Mar. 31, 2018 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Cash, Cash Equivalents and Investments | CASH, CASH EQUIVALENTS, AND INVESTMENTS The following tables summarize the Company’s cash, cash equivalents, and investments’ adjusted cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents, short-term, or long-term investments as of March 31, 2017 and 2018 (in thousands): March 31, 2017 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 295,877 $ — $ — $ 295,877 $ 295,877 $ — $ — Level 1: Mutual Funds 12,079 352 (32 ) 12,399 — 12,399 — US Treasury Notes 35,960 — (68 ) 35,892 — 17,560 18,332 Subtotal 48,039 352 (100 ) 48,291 — 29,959 18,332 Level 2: Government Agency Securities 54,415 20 (164 ) 54,271 — 15,309 38,962 Commercial Paper 47,152 — — 47,152 6,093 41,059 — Corporate Bonds 141,508 64 (224 ) 141,348 — 73,676 67,672 Certificates of Deposits ("CDs") 20,383 3 — 20,386 — 18,176 2,210 Subtotal 263,458 87 (388 ) 263,157 6,093 148,220 108,844 Total cash, cash equivalents $ 607,374 $ 439 $ (488 ) $ 607,325 $ 301,970 $ 178,179 $ 127,176 March 31, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 308,734 $ — $ — $ 308,734 $ 308,734 $ — $ — Level 1: Mutual Funds 13,336 186 (67 ) 13,455 — 13,455 — US Treasury Notes 129,373 7 (60 ) 129,320 30,178 99,142 — Money Market Funds 344 — — 344 344 — — Subtotal 143,053 193 (127 ) 143,119 30,522 112,597 — Level 2: Government Agency Securities 46,354 — (56 ) 46,298 6,978 39,320 — Municipal Bonds 3,591 — — 3,591 3,591 — — Commercial Paper 84,512 — — 84,512 40,836 43,676 — Corporate Bonds 54,701 — (212 ) 54,489 — 54,489 — Certificates of Deposits ("CDs") 19,231 — — 19,231 — 19,231 — Subtotal 208,389 — (268 ) 208,121 51,405 156,716 — Total cash, cash equivalents $ 660,176 $ 193 $ (395 ) $ 659,974 $ 390,661 $ 269,313 $ — As of March 31, 2017 and 2018 , with the exception of assets related to the Company's deferred compensation plan, all of the Company's investments are classified as available-for-sale securities. The carrying value of available-for-sale securities included in cash equivalents approximates fair value because of the short maturity of those instruments. During the year ended March, 31, 2018, we sold our long-term investments and recognized a loss on sale of approximately $1.2 million . The Company did not incur any material realized or unrealized gains or losses during Fiscal Year 2017 . There were no transfers between fair value measurement levels during Fiscal Years 2017 and 2018 . |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Mar. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | DEFERRED COMPENSATION As of March 31, 2018 , the Company held investments in mutual funds totaling $13.5 million , all of which related to debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans. The total related deferred compensation liability was $14.1 million at March 31, 2018 . As of March 31, 2017 the Company held bank deposits of $0.8 million and investments in mutual funds totaling $12.4 million , all of which related to debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans. The total related deferred compensation liability at March 31, 2017 was $13.7 million . The bank deposits are recorded on the consolidated balance sheets under "cash and cash equivalents". The securities are classified as trading securities and are recorded on the consolidated balance sheets under "short-term investments". The liability is recorded on the consolidated balance sheets under "other long-term liabilities" and "accrued liabilities". |
DETAILS OF CERTAIN BALANCE SHEE
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS | 12 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Details of Certain Balance Sheet Accounts | DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable, net: March 31, (in thousands) 2017 2018 Accounts receivable $ 184,068 $ 202,270 Provisions for returns (10,541 ) (10,225 ) Provisions for promotions and rebates (31,747 ) (38,284 ) Provisions for doubtful accounts and sales allowances (603 ) (873 ) Accounts receivable, net $ 141,177 $ 152,888 Inventory, net: March 31, (in thousands) 2017 2018 Raw materials $ 20,260 $ 28,789 Work in process 215 450 Finished goods 34,981 39,037 Inventory, net $ 55,456 $ 68,276 Property, plant, and equipment, net: March 31, (in thousands) 2017 2018 Land $ 16,418 $ 16,564 Buildings and improvements (useful life: 7-30 years) 115,909 115,401 Machinery and equipment (useful life: 2-10 years) 108,477 112,719 Software (useful life: 5-10 years) 46,806 50,631 Construction in progress 6,899 5,428 Property, plant, and equipment, gross 294,509 300,743 Accumulated depreciation and amortization (144,202 ) (158,614 ) Property, plant, and equipment, net $ 150,307 $ 142,129 Depreciation and amortization expense for Fiscal Years 2016 , 2017 , and 2018 was $19.9 million , $20.7 million , and $21.1 million , respectively. Included in software are unamortized capitalized software costs relating to both purchased and internally developed software of $24.4 million and $23.6 million at March 31, 2017 and 2018 , respectively. Amortization expense related to capitalized software costs in Fiscal Years 2016 , 2017 , and 2018 was $4.1 million , $4.4 million , and $4.9 million , respectively. Included in construction in progress at March 31, 2018 was tooling for new products, machinery and equipment, building improvements at our U.S. headquarters, and IT-related expenditures. None of the items were individually material. Accrued liabilities: March 31, (in thousands) 2017 2018 Employee compensation and benefits $ 36,415 $ 28,599 Accrued interest on 5.50% Senior Notes 10,407 10,331 Warranty obligation, short-term portion 6,863 7,550 VAT/Sales Tax Payable 5,433 5,353 Derivative liabilities 1,323 2,947 Accrued other 13,844 25,317 Accrued liabilities $ 74,285 $ 80,097 Changes in the warranty obligation, which are included as a component of accrued liabilities in the consolidated balance sheets, are as follows: Year ended March 31, (in thousands) 2017 2018 Warranty obligation at beginning of year $ 8,537 $ 8,697 Warranty provision related to products shipped 9,451 9,923 Deductions for warranty claims processed (9,824 ) (10,193 ) Adjustments related to preexisting warranties 533 1,177 Warranty obligation at end of year 1 $ 8,697 $ 9,604 1 Includes both short-term and long-term portion of warranty obligation; the prior table shows only the short-term portion included in accrued liabilities on our consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
GOODWILL
GOODWILL | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL March 31, 2017 and 2018 was $15.5 million , net of accumulated impairment of $54.6 million . In Fiscal Years 2017 and 2018 , for purposes of the annual goodwill impairment test, the Company determined there to be no reporting units below its operating segment; therefore, the annual goodwill impairment analysis was performed at the segment level in both of these years. In the fourth quarter of Fiscal Years 2017 and 2018 , the Company evaluated qualitative factors that may affect the fair value of the reporting unit and concluded there to be no indication of goodwill impairment. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Minimum Future Rental Payments Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of March 31, 2018 are as follows: Fiscal Year Ending March 31, 2018 (in thousands) 2019 $ 2,556 2020 2,142 2021 1,823 2022 1,322 2023 823 Thereafter 1,304 Total minimum future rental payments $ 9,970 Total rent expense for operating leases was approximately $2.9 million , $2.8 million , and $2.6 million in Fiscal Years 2016 , 2017 , and 2018 , respectively. Unconditional Purchase Obligations The Company purchases services and components from a variety of suppliers and manufacturers. During the normal course of business and to manage manufacturing operations and general and administrative activities, the Company may enter into firm, non-cancelable, and unconditional purchase obligations for which amounts are not recorded on the consolidated balance sheets. As of March 31, 2018 , the Company had outstanding off-balance sheet third-party manufacturing, component purchase, and other general and administrative commitments of $190.0 million . Other Guarantees and Obligations In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, purchasers of assets or subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of agreements or representations and warranties made by the Company, services to be provided by the Company, intellectual property infringement claims made by third parties or, with respect to the sale of assets of a subsidiary, matters related to the Company's conduct of business and tax matters prior to the sale. From time to time, the Company indemnifies customers against combinations of loss, expense, or liability arising from various triggering events relating to the sale and use of its products and services. In addition, the Company also provides indemnification to customers against claims related to undiscovered liabilities, additional product liability, or environmental obligations. The Company has also entered into indemnification agreements with its directors, officers and certain other personnel that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers of the Company or certain of its affiliated entities. The Company maintains director and officer liability insurance, which may cover certain liabilities arising from its obligation to indemnify its directors, officers and certain other personnel in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these agreements due to the limited history of prior claims and the unique facts and circumstances involved in each particular claim. Such indemnification obligations might not be subject to maximum loss clauses. Historically, the Company has not incurred material costs as a result of obligations under these agreements and it has not accrued any liabilities related to such indemnification obligations in the condensed consolidated financial statements. Claims and Litigation On October 12, 2012, GN Netcom, Inc. ("GN") filed a complaint against the Company in the United States District Court for the District of Delaware (“Court”), alleging violations of Sections 1 and 2 of the Sherman Act, Section 3 of the Clayton Act, and tortious interference with business relations in connection with the Company’s distribution of corded and wireless headsets. The case was assigned to Judge Leonard P. Stark. GN sought injunctive relief, total damages in an unspecified amount, plus attorneys’ fees and costs, as well as unspecified legal and equitable relief. GN generally alleged that the Company’s exclusive dealing arrangements with certain distributors stifled competition in the relevant market. In July 2016, the Court issued a sanctions order against Plantronics in the amount of approximately $4.9 million for allegations of spoliation of evidence. The case was tried to a jury in October 2017, resulting in a verdict in favor of the Company. GN filed a motion for new trial in November 2017, and that motion was denied by the Court in January 2018. The Company filed a motion for attorneys’ fees in November 2017, and that motion was denied by the Court in January 2018. The Company also filed a motion for certain recoverable costs, and the parties stipulated to an amount of approximately $0.2 million which GN paid the Company. If the jury verdict were to be appealed and later overturned on appeal, the Company would have to repay that amount to GN. On February 12, 2018, GN filed a notice of intent to appeal both the denial of the new trial motion and the Court’s July 2016 spoliation order. The Court has set a briefing schedule for the parties to file their appellate briefs. In a letter dated May 1, 2017, the Company received a Notice of Proposed Debarment from the General Services Administration ("GSA") informing the Company that the GSA has proposed that the Company be debarred from participation in Federal procurement and non-procurement programs based on a spoliation order issued in the GN litigation matter. The Company submitted a response to the GSA demonstrating that it is a responsible contractor and that a suspension or debarment is neither necessary to protect the government nor warranted. The GSA found “no cause” for debarment of Plantronics and terminated the proceeding against the Company in August 2017. The GSA required a letter of assurances be filed if additional issues arose, and that requirement was terminated following the successful jury verdict in October 2017. In addition to the specific matter discussed above, the Company is involved in various legal proceedings arising in the normal course of conducting business. For such legal proceedings, where applicable, the Company has not accrued any amount because none have been deemed probable and estimable. The Company is not able to estimate an amount or range of any reasonably possible additional losses 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. Polycom Acquisition On March 28, 2018, we entered into the Purchase Agreement to acquire Polycom for $2.0 billion . The Polycom Transaction has been unanimously approved by the boards of directors of both companies, is subject to regulatory approvals and other customary closing conditions, and is expected to close by the end of the third calendar quarter of 2018. |
DEBT
DEBT | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT 5.50% Notes In May 2015, Plantronics issued $500.0 million aggregate principal amount of 5.50% Senior Notes. The 5.50% Senior Notes mature on May 31, 2023, and bear interest at a rate of 5.50% per annum, payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2015. The Company received net proceeds of $488.4 million from issuance of the 5.50% Senior Notes, net of issuance costs of $11.6 million , which are presented in our consolidated balance sheet as a reduction to the outstanding amount payable and are being amortized to interest expense, using the effective interest method, over the term of the 5.50% Senior Notes. A portion of the proceeds was used to repay all then-outstanding amounts under our revolving line of credit agreement with Wells Fargo Bank and the remaining proceeds were used primarily for share repurchases. The fair value of the 5.50% Senior Notes was determined based on inputs that were observable in the market, including the trading price of the 5.50% Senior Notes when available (Level 2). The estimated fair value and carrying value of the 5.50% Senior Notes were as follows: March 31, 2017 March 31, 2018 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 505,150 $ 491,059 $ 497,095 $ 492,509 The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.50% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium equal to the present value of the remaining scheduled interest payments as described in the applicable indenture, together with accrued and unpaid interest. (2) If the Company redeems the notes on or after the applicable date, the price is principal plus a premium which declines over time as specified in the applicable indenture, together with accrued and unpaid interest. (3) If the Company redeems the notes prior to the applicable date with net cash proceeds of one or more equity offerings, the price is equal to the amount specified above, together with accrued and unpaid interest, subject to a maximum redemption of 35% of the aggregate principal amount of the respective note being redeemed. In addition, upon the occurrence of certain change of control triggering events, the Company may be required to repurchase the 5.50% Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The 5.50% Senior Notes contain restrictive covenants that, among other things, limit Plantronics' ability to create certain liens and enter into sale and leaseback transactions; create, assume, incur, or guarantee additional indebtedness of Plantronics’ subsidiaries without such subsidiary guaranteeing the 5.50% Senior Notes on an unsecured unsubordinated basis; and consolidate or merge with, or convey, transfer or lease all or substantially all of the assets of Plantronics and its subsidiaries to another person. As of March 31, 2018 , the Company was in compliance with all covenants. Revolving Credit Agreement On May 9, 2011, the Company entered into a credit agreement with Wells Fargo Bank, National Association ("the Bank"), which was most recently amended on April 28, 2017 (as amended, the "Amended Credit Agreement") to extend the term of the Credit Agreement by one year to May 9, 2020, and to amend certain of the covenants, which are defined below. The Amended Credit Agreement provides for a $100.0 million unsecured revolving credit facility. Revolving loans under the Amended Credit Agreement will bear interest, at the Company’s election, at (i) the Bank’s announced prime rate less 1.20% per annum or (ii) a daily one-month LIBOR rate plus 1.40% per annum. Interest is payable quarterly in arrears on the first day of each April, July, October, and January, commencing July 1, 2015. Principal, together with all accrued and unpaid interest, on the revolving loans is due and payable on May 9, 2020 . The Company is also obligated to pay a commitment fee of 0.37% per annum on the average daily unused amount of the revolving line of credit, which fee shall be payable quarterly in arrears on the first day of each April, July, October, and January, commencing July 1, 2015. The Company may prepay the loans and terminate the commitments under the Amended Credit Agreement at any time, without premium or penalty, subject to the reimbursement of certain costs. As of March 31, 2018 , the Company had no outstanding borrowings under the line of credit. The Amended Credit Agreement contains customary affirmative and negative covenants, including, among other things, covenants limiting the ability of the Company to incur debt, make capital expenditures, grant liens, merge or consolidate, and make investments. The Amended Credit Agreement also requires the Company to comply with certain financial covenants, including (i) a maximum ratio of funded debt to EBITDA of 3.25 :1 and (ii) a minimum EBITDA coverage ratio, in each case, tested as of each fiscal quarter and determined on a rolling four-quarter basis. In addition, the Company and its subsidiaries are required to maintain unrestricted cash, cash equivalents and marketable securities plus availability under the Amended Credit Agreement at the end of each fiscal quarter of at least $300.0 million . The Amended Credit Agreement contains customary events of default that include, among other things, payment defaults, covenant defaults, cross-defaults with certain other indebtedness, bankruptcy and insolvency defaults, and judgment defaults. The occurrence of an event of default could result in the acceleration of the obligations under the Amended Credit Agreement. As of March 31, 2018, the Company was in compliance with all covenants. |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS) During Fiscal Year 2018 and as part of its ongoing effort to reduce costs, improve profitability, and focus on its key strategic initiatives, the Company executed an asset sale agreement to dispose of substantially all assets of its Clarity division, primarily inventories and tooling fixed assets, for an immaterial sales price. The buyer in this arrangement was a former employee of the Company, who acted as Clarity's President but who was not an executive officer or director of the Company. As part of the buyer's separation from Plantronics, the Company accelerated vesting on his outstanding restricted stock, resulting in an immaterial stock-compensation modification charge. In connection with the sale, the Company is leasing the facility it owns in Chattanooga, Tennessee, to the buyer for a period of twelve months. The Company also entered into a transition services agreement with the buyer to provide customer support services on a cost-recovery basis, which are not expected to be material, for a period of one year. The Company also recorded immaterial impairment charges on assets previously used in Clarity operations that have no further value to the Company. In addition to the sale of the Clarity division and the related restructuring actions, the Company reduced headcount in certain divisions and terminated a lease in the Netherlands before the end of its contractual term, resulting in a charge equal to the present value of the remaining future minimum lease payments. In connection with this exit, the Company wrote off certain fixed assets that will no longer be used. Finally, the Company reorganized its Brazilian operations and as a result, wrote off an unrecoverable indirect tax asset. As of March 31, 2018 , the remaining obligation related to accrued severance is immaterial and is expected to be settled within 12 months. The associated charges for year ended March 31, 2018 are recorded in restructuring and other related charges (credits), cost of revenues, and selling, general, and administrative expense in the condensed consolidated statements of operations, as follows: Year ended March 31, 2018 (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General, and Administrative Severance benefits from reduction-in-force $ 1.4 $ 1.4 $ — $ — Lease exit charges and asset impairments in Netherlands 0.7 0.7 — — Write-off of unrecoverable indirect tax asset in Brazil 0.7 — 0.7 — Asset impairments related to previous Clarity operations 0.4 0.4 — — Loss on Clarity asset sale 0.9 — 0.9 — Accelerated vesting of restricted stock 0.2 — — 0.2 Totals $ 4.3 $ 2.5 $ 1.6 $ 0.2 |
STOCK PLANS AND STOCK-BASED COM
STOCK PLANS AND STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans and Stock-Based Compensation | STOCK PLANS AND STOCK-BASED COMPENSATION 2003 Stock Plan On May 5, 2003, the Board of Directors ("Board") adopted the Plantronics, Inc. 2003 Stock Plan ("2003 Stock Plan") which was approved by the stockholders in June 27, 2003. The 2003 Stock Plan, which will continue in effect until terminated by the Board, allows for the issuance of the Company's common stock through the granting of non-qualified stock options, restricted stock, and restricted stock units. As of March 31, 2018 , there have been 15,900,000 shares of common stock (which number is subject to adjustment in the event of stock splits, reverse stock splits, recapitalization or certain corporate reorganizations) cumulatively reserved since inception of the 2003 Stock Plan for issuance to employees, non-employee directors, and consultants of Plantronics. The Company settles stock option exercises, grants of restricted stock, and releases of vested restricted stock units with newly issued common shares. The exercise price of stock options may not be less than 100% of the fair market value of the Company's common stock on the date of grant. The term of an option may not exceed 7 years from the date it is granted. Stock options granted to employees vest over a three -year period, and stock options granted to non-employee directors vest over a four -year period. No participant shall receive restricted stock or restricted stock units in any fiscal year having an aggregate initial value greater than $ 2.0 million . Restricted stock and restricted stock units granted to employees subsequent to May 2013 vest over a three -year period, and restricted stock and restricted stock units granted from May 2011 to April 2013 vest over a four -year period. Restricted stock granted to non-employee directors subsequent to August 2014 vests over a one -year period, and restricted stock granted from August 2001 to August 2013 vests over a four -year period. At March 31, 2018 , options to purchase 922,975 shares of common stock and 1,253,561 shares of unvested restricted stock and restricted stock units were outstanding. There were 2,297,174 shares available for future grant under the 2003 Stock Plan. 2002 ESPP On June 10, 2002, the Board adopted the 2002 Employee Stock Purchase Plan ("ESPP"), which was approved by the stockholders on July 17, 2002, to provide eligible employees with an opportunity to purchase the Company's common stock through payroll deductions. The ESPP qualifies under Section 423 of the Internal Revenue Code. Under the ESPP, which is effective until terminated by the Board, the purchase price of the Company's common stock is equal to 85% of the lesser of the closing price of the common stock on (i) the first day of the offering period or (ii) the last day of the offering period. Each offering period is six months long. There were 168,948 , 151,648 , and 156,355 shares issued under the ESPP in Fiscal Years 2016 , 2017 , and 2018 respectively. At March 31, 2018 , there were 274,323 shares reserved for future issuance under the ESPP. The total cash received from employees as a result of stock issuances under the ESPP during Fiscal Year 2018 was $ 5.7 million , net of taxes. Stock-based Compensation The following table summarizes the amount of stock-based compensation expense included in the consolidated statements of operations for the periods presented: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Cost of revenues $ 3,306 $ 3,244 $ 3,622 Research, development and engineering 9,908 8,616 8,071 Selling, general and administrative 20,051 21,679 22,266 Stock-based compensation expense included in operating expenses 29,959 30,295 30,337 Total stock-based compensation 33,265 33,539 33,959 Income tax benefit (10,950 ) (10,768 ) (7,880 ) Total stock-based compensation expense, net of tax $ 22,315 $ 22,771 $ 26,079 Stock Plan Activity Stock Options The following is a summary of the Company’s stock option activity during Fiscal Year 2018 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at March 31, 2017 1,417 $ 43.41 Options granted 15 $ 52.11 Options exercised (505 ) $ 36.04 Options forfeited or expired (4 ) $ 53.23 Outstanding at March 31, 2018 923 $ 47.53 3.8 $ 11,853 Vested or expected to vest at March 31, 2018 918 $ 47.54 3.8 $ 11,781 Exercisable at March 31, 2018 758 $ 47.69 3.5 $ 9,612 The total intrinsic values of options exercised during Fiscal Years 2016 , 2017 , and 2018 were $6.9 million , $5.5 million , and $9.4 million respectively. Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price at the time of option exercise. The total cash received from employees as a result of employee stock option exercises during Fiscal Year 2018 was $18.2 million , net of taxes. The total net tax benefit attributable to stock options exercised during the year ended March 31, 2018 was $3.3 million . As of March 31, 2018 , the total unrecognized compensation cost related to unvested stock options was $1.6 million and is expected to be recognized over a weighted average period of 1.3 years. Restricted Stock Restricted stock consists of awards of restricted stock and restricted stock units ("RSUs"). The following is a summary of the Company’s restricted stock activity during Fiscal Year 2018 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 31, 2017 1,172 $ 47.86 Restricted stock granted 784 $ 53.62 Restricted stock vested (577 ) $ 48.12 Restricted stock forfeited (125 ) $ 50.30 Non-vested at March 31, 2018 1,254 $ 51.09 The weighted average grant-date fair value of restricted stock is based on the quoted market price of the Company's common stock on the date of grant. The weighted average grant-date fair values of restricted stock granted during Fiscal Years 2016 , 2017 , and 2018 were $54.66 , $44.82 , and 53.62 , respectively. The total grant-date fair values of restricted stock that vested during Fiscal Years 2016 , 2017 , and 2018 were $24.2 million , $28.9 million , and $ 27.8 million , respectively. As of March 31, 2018 , the total unrecognized compensation cost related to non-vested restricted stock awards was $36.7 million and is expected to be recognized over a weighted average period of 1.6 years. Valuation Assumptions The Company estimates the fair value of stock options and ESPP shares using a Black-Scholes option valuation model. At the date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP Fiscal Year Ended March 31, 2016 2017 2018 2016 2017 2018 Expected volatility 27.0 % 31.1 % 29.1 % 33.5 % 28.8 % 30.5 % Risk-free interest rate 1.4 % 1.1 % 1.7 % 0.3 % 0.6 % 1.5 % Expected dividends 1.1 % 1.4 % 1.2 % 1.4 % 1.1 % 1.2 % Expected life (in years) 4.2 4.4 4.6 0.5 0.5 0.5 Weighted-average grant date fair value $ 11.39 $ 10.39 $ 12.58 $ 10.33 $ 12.03 $ 11.78 The expected stock price volatility for the years ended March 31, 2016 , 2017 , and 2018 was determined based on an equally weighted average of historical and implied volatility. Implied volatility is based on the volatility of the Company’s publicly traded options on its common stock with terms of six months or less. The Company determined that a blend of implied volatility and historical volatility is more reflective of market conditions and a better indicator of expected volatility than using exclusively historical volatility. The expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules, and expectations of future employee behavior. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. The dividend yield assumption is based on our current dividend and the market price of our common stock at the date of grant. |
COMMON STOCK REPURCHASES
COMMON STOCK REPURCHASES | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Common Stock Repurchases | COMMON STOCK REPURCHASES From time to time, the Board authorizes programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Repurchased shares are held as treasury stock until such time they are retired or re-issued. During the years ended March 31, 2016 , 2017 , and 2018 , the Company repurchased 9,077,223 , 764,176 , and 1,139,548 shares of its common stock, respectively, for a total cost of $497.4 million , $34.2 million , and $52.9 million respectively, at an average price per share of $54.80 , $44.80 , and $46.46 , respectively. The Company financed the repurchases using a combination of funds generated from operations and borrowings under its revolving line of credit. All repurchases in Fiscal Years 2016 , 2017 , and 2018 were made in the open market. As of March 31, 2018 , there remained 730,105 shares authorized for repurchase under the program approved by the Board on July 27, 2017 . During the years ended March 31, 2016 , 2017 , and 2018 , the Company withheld shares valued at $11.1 million , $9.7 million , and $11.4 million , respectively, in satisfaction of employee tax withholding obligations upon the vesting of restricted stock granted under the Company's stock plans. The amounts withheld were equivalent to the employees' minimum statutory tax withholding requirements and are reflected as a financing activity within the Company's consolidated statements of cash flows. These share withholdings have the effect of share repurchases by the Company because they reduce the number of shares outstanding as a result of the vesting. There were no retirements of treasury stock during Fiscal Years 2016 , 2017 , and 2018 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income, net of associated tax impacts, were as follows: March 31, (in thousands) 2017 2018 Accumulated unrealized gain (loss) on cash flow hedges (1) $ 529 $ (1,663 ) Accumulated foreign currency translation adjustments 4,428 4,685 Accumulated unrealized gain on investments (263 ) (152 ) Accumulated other comprehensive income $ 4,694 $ 2,870 (1) Refer to Note 15 , Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2017 and March 31, 2018 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2018 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has a defined contribution benefit plan under Section 401(k) of the Internal Revenue Code, which covers substantially all U.S. employees. Eligible employees may contribute pre-tax amounts to the plan through payroll withholdings, subject to certain limitations. Under the plan, the Company currently matches 50% of the first 6% of employees' compensation and provides a non-elective Company contribution equal to 3% of base salary. All matching contributions are currently 100% vested immediately. The Company reserves the right to modify its policies at any time, including increasing, decreasing, or eliminating contribution matching and vesting requirements. Total Company contributions in Fiscal Years 2016 , 2017 , and 2018 were $4.7 million , $4.2 million , and $4.5 million , respectively. |
FOREIGN CURRENCY DERIVATIVES
FOREIGN CURRENCY DERIVATIVES | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Derivatives | FOREIGN CURRENCY DERIVATIVES The Company's foreign currency derivatives consist primarily of foreign currency forward exchange contracts, option contracts, and cross-currency swaps. 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 due to credit risk that it would incur if parties to derivative contracts failed completely to perform according to the terms of the Company's agreements was equal to the net asset value of the Company's derivatives as of March 31, 2018 . The Company seeks to mitigate such risk by limiting its counterparties to several large financial institutions. In addition, the Company monitors the potential risk of loss with any single counterparty resulting from this type of credit risk on an ongoing basis. The Company enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between Plantronics and the counterparty as a result of multiple, separate derivative transactions. As of March 31, 2018 , the Company has International Swaps and Derivatives Association (ISDA) agreements with four applicable banks and financial institutions which contain netting provisions. Plantronics has elected to present the fair value of derivative assets and liabilities within the Company's consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. However, the following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period. Derivatives not subject to master netting agreements are not eligible for net presentation. As of March 31, 2017 and March 31, 2018 , no cash collateral had been received or pledged related to these derivative instruments. Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties As of March 31, 2017 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 2,120 $ (1,395 ) $ — $ 725 Derivatives not subject to master netting agreements — — Total $ 2,120 $ 725 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (1,395 ) $ 1,395 $ — $ — Derivatives not subject to master netting agreements — — Total $ (1,395 ) $ — As of March 31, 2018 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 772 $ (772 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 772 $ — Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (3,037 ) $ 772 $ — $ (2,265 ) Derivatives not subject to master netting agreements — — Total $ (3,037 ) $ (2,265 ) The Company's derivative instruments are measured using Level 2 fair value inputs. Non-Designated Hedges As of March 31, 2018 , the Company had foreign currency forward contracts denominated in Euros ("EUR"), British Pound Sterling ("GBP"), Australian Dollars ("AUD"), and Canadian Dollars ("CAD"). The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts hedge against a portion of the Company’s foreign currency-denominated cash balances, receivables, and payables. The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at March 31, 2018 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) EUR € 32,050 $ 39,557 Sell EUR 1 month GBP £ 10,900 $ 15,313 Sell GBP 1 month AUD A$ 13,600 $ 10,456 Sell AUD 1 month CAD C$ 2,500 $ 1,939 Sell CAD 1 month Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations The effect of non-designated derivative contracts on results of operations recognized in other non-operating income and (expense), net in the consolidated statements of operations was as follows: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Gain on foreign exchange contracts $ 494 $ 4,599 $ 7,405 Cash Flow Hedges Costless Collars The Company hedges a portion of the forecasted EUR and GBP denominated revenues with costless collars. On a monthly basis, the Company enters into option contracts with a 6 to 12 month term. Collar contracts are scheduled to mature at the beginning of each fiscal quarter, at which time the instruments convert to forward contracts. The Company also enters into cash flow forwards with a three month term. Once the hedged revenues are recognized, the forward contracts become non-designated hedges to protect the resulting foreign monetary asset position for the Company. The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: (in millions) March 31, 2017 March 31, 2018 EUR GBP EUR GBP Option contracts €73.5 £23.9 €77.8 £23.7 Forward contracts €11.2 £3.3 €16.7 £3.7 There were no material gains or losses in AOCI as of March 31, 2018 to be recognized during the next 12 months due to the recognition of the hedged forecasted revenue. Cross-currency Swaps The Company hedges a portion of the forecasted Mexican Peso (“MXN”) denominated expenditures with a cross-currency swap. There were no material gains or losses in AOCI as of March 31, 2018 to be recognized during the next 12 months due to the recognition of the hedged forecasted expenses. As of March 31, 2017 and 2018 , the Company had foreign currency swap contracts of approximately MXN 287.2 million and MXN 31.8 million , respectively. The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at March 31, 2018 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) MX$ 31,830 $ 1,599 Buy MXN Monthly over 3 months Effect of Designated Derivative Contracts on AOCI and Consolidated Statements of Operations The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on AOCI and the consolidated statements of operations for fiscal years ended March 31, 2016 , 2017 , and 2018 : (in thousands) 2016 2017 2018 Gain (loss) included in AOCI as of beginning of period $ 5,705 $ (1,106 ) $ 541 Amount of gain (loss) recognized in OCI (effective portion) (3,786 ) 3,095 (6,741 ) Amount of (gain) loss reclassified from OCI into net revenues (effective portion) (7,826 ) (4,111 ) 4,715 Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) 4,801 2,663 (208 ) Total amount of (gain) loss reclassified from AOCI to consolidated statements of operations (effective portion) (3,025 ) (1,448 ) 4,507 Gain (loss) included in AOCI as of end of period $ (1,106 ) $ 541 $ (1,693 ) The Company recognized immaterial loss in the consolidated statements of operations on the ineffective portion of the cash flow hedges reported in other non-operating income and (expense), net during the year ended March 31, 2018 and 2016 compared to an immaterial gain in Fiscal Year 2017. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for Fiscal Years 2016 , 2017 , and 2018 consisted of the following: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Current: Federal $ 15,702 $ 10,591 $ 82,523 State 1,934 457 4,274 Foreign 4,644 7,731 6,860 Total current provision for income taxes 22,280 18,779 93,657 Deferred: Federal (7,767 ) 1,022 9,002 State (1,103 ) (117 ) (1,585 ) Foreign 374 (618 ) 22 Total deferred income tax expense (benefit) (8,496 ) 287 7,439 Income tax expense $ 13,784 $ 19,066 $ 101,096 The components of income before income taxes for Fiscal Years 2016 , 2017 , and 2018 are as follows: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 United States $ 42,184 $ 43,377 $ 17,654 Foreign 39,992 58,288 82,573 Income before income taxes $ 82,176 $ 101,665 $ 100,227 The following is a reconciliation between statutory federal income taxes and the income tax expense for Fiscal Years 2016 , 2017 , and 2018 : Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Tax expense at statutory rate $ 28,762 $ 35,583 $ 31,631 Foreign operations taxed at different rates (9,478 ) (13,183 ) (17,970 ) State taxes, net of federal benefit 831 340 2,689 Research and development credit (3,133 ) (3,119 ) (2,023 ) Unwind of stock based compensation cost sharing (2,855 ) — — Impact of Tax Act — — 87,790 Stock based compensation (487 ) (365 ) (1,771 ) Other, net 144 (190 ) 750 Income tax expense $ 13,784 $ 19,066 $ 101,096 Deferred tax assets and liabilities represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of March 31, 2017 and 2018 are as follows: March 31, (in thousands) 2017 2018 Accruals and other reserves $ 8,526 $ 4,809 Deferred Compensation 4,859 3,467 Net operating loss carry forward 2,221 1,540 Stock compensation 12,821 8,384 Tax credits 4,530 6,504 Other deferred tax assets 1,711 1,070 Valuation allowance (2,209 ) (2,514 ) Total deferred tax assets 32,459 23,260 Deferred gains on sales of properties (1,771 ) (1,160 ) Unremitted earnings of certain subsidiaries — (1,976 ) Fixed asset depreciation (7,351 ) (4,150 ) Total deferred tax liabilities (9,122 ) (7,286 ) Net deferred tax assets (1) $ 23,337 $ 15,974 (1) The Company's deferred tax assets for the fiscal year ending March 31, 2017 and March 31, 2018 , are included as a component of other assets on the consolidated balance sheets. The Company has California research and development credit carryforwards for income tax purposes of $10.4 million that can be carried forward indefinitely. The Company has Chinese net operating losses of $4.3 million that expire in different periods through Fiscal Year 2024. The Company evaluates its deferred tax assets, including a determination of whether a valuation allowance is necessary, based upon its ability to utilize the assets using a more likely than not analysis. Deferred tax assets are only recorded to the extent that they are realizable based upon past and future income. The Company has a long-established earnings history with taxable income in its carryback years and forecasted future earnings. The Company has concluded that no valuation allowance is required, except for the specific items discussed below. The valuation allowance of $2.5 million as of March 31, 2018 was related to the net operating losses of a foreign subsidiary with an insufficient recent history of earnings to support the realization of their deferred tax assets, as well as to excess California research credit carryforwards. The valuation allowance of $2.2 million as of March 31, 2017 was related to the net operating losses of foreign subsidiaries with an insufficient history of recent earnings to support the realization of their deferred tax assets, as well as to excess California research credit carryforwards. During the year ending March 31, 2018, the valuation allowance increased by $0.3 million , which was mostly related to California research credit carryforwards that were generated during the year ending March 31, 2018 and for which it is more likely than not these deferred tax assets will not be realized. The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more likely than not to be sustained. An uncertain income tax position will not be recognized unless it has a greater than 50% likelihood of being sustained. As of March 31, 2016 , 2017 , and 2018 , the Company had $12.7 million , $12.9 million , and $12.6 million , respectively, of unrecognized tax benefits. The unrecognized tax benefits as of March 31, 2018 would favorably impact the effective tax rate in future periods if recognized. A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows: March 31, (in thousands) 2016 2017 2018 Balance at beginning of period $ 12,821 $ 12,692 $ 12,854 Increase (decrease) of unrecognized tax benefits related to prior fiscal years (598 ) (2 ) (1,310 ) Increase of unrecognized tax benefits related to the current year 2,252 2,195 3,085 Reductions to unrecognized tax benefits related to settlements with taxing authorities (149 ) — (115 ) Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations (1,634 ) (2,031 ) (1,902 ) Balance at end of period $ 12,692 $ 12,854 $ 12,612 The Company's continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The interest related to unrecognized tax benefits was $1.7 million and $1.4 million as of March 31, 2017 and 2018 , respectively. No penalties have been accrued. The Company and its subsidiaries are subject to taxation in various foreign and state jurisdictions, including the U.S. All federal tax matters have been concluded for tax years prior to Fiscal Year 2014. Foreign and State income tax matters for material tax jurisdictions have been concluded for tax years prior to Fiscal Year 2011 and Fiscal Year 2013, respectively. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. The timing of any resolution and/or closure of tax examinations is not certain. On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) (the “Act”) was signed into law in the United States. The Act includes several changes to existing tax law, including, among other things, a permanent reduction in the corporate income tax rate from 35% to 21% and applying new taxes on certain foreign source earnings. In addition, we were subject to a one-time deemed repatriation of accumulated foreign subsidiary unremitted earnings (hereafter, the "toll charge"), which the Company will elect to pay over an eight-year period as permitted under the Act. The Company recorded a 79.7 million toll charge as part of income tax expense for the Fiscal year ended March 31, 2018, representing a provisional estimate based on a 15.5% tax applied to foreign unremitted cash and cash equivalents and an 8% tax applied to permanently reinvested foreign assets. As part of the Act, the Company also completed its re-measurement of deferred tax assets as of March 31, 2018 to the new future federal tax rate of 21%, thereby reducing the Company’s deferred tax assets by $4.6 million . The Company expects to repatriate substantially all of its unremitted foreign subsidiary earnings and has recorded income tax expenses of $5.0 million related to state income taxes and foreign withholding taxes that will become due over the repatriation period. Finally, the Company files its federal tax return on a fiscal year-end and is therefore required to pro-rate the new and old tax rates during Fiscal Year 2018. The blended, annualized tax rate applied to Fiscal Year 2018 income is 31.56% . In accordance with SAB 118, the provisional estimate for the toll charge will be finalized when the Company completes its substantive review of unremitted foreign earnings through examination of statutory filings and tax returns of the Company's foreign subsidiaries and fiscal branches that span a 30 -year period. The Company must also analyze the impact of foreign exchange rates and inflation on the historical information to support foreign tax credits available to offset the toll charge. In addition, the Company's estimate of the toll charge obligation may change due to legislative technical corrections, the IRS' promulgation of regulations to interpret the Act, and changes in accounting standards for income taxes or related interpretations in response to the Act. This review and finalization of the toll charge provisional estimate will be completed within a twelve month measurement period from the date of enactment. The Company recorded a correction to the geographic mix of income during the three months ended June 30, 2017 related to Fiscal Year 2017, which reduced income in a high tax jurisdiction and increased income in a low tax jurisdiction. This correction resulted in a reduction of $2.8 million to the Company’s income tax expense for the year ended March 31, 2018 as compared to the prior fiscal year end. For additional details regarding this correction refer to Note 2, Significant accounting Policies . The Company adopted new stock-based compensation accounting guidance effective the beginning of Fiscal Year 2018. Excess tax benefits associated with employee equity plans were previously recorded in additional paid-in capital and the adoption of this guidance had an immaterial impact on the Company's effective tax rate for the three months ended December 31, 2017, but resulted in a $2.7 million reduction to income tax expense for the twelve months ended March 31, 2018. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP. |
COMPUTATION OF EARNINGS PER COM
COMPUTATION OF EARNINGS PER COMMON SHARE | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Common Share | COMPUTATION OF EARNINGS PER COMMON SHARE The Company has a share-based compensation plan under which employees, non-employee directors, and consultants may be granted share-based awards, including shares of restricted stock on which non-forfeitable dividends are paid on unvested shares. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share. Prior to the second quarter of Fiscal Year 2018, the impact of the two-class method was not considered material and therefore, earnings per share was reported as calculated under the treasury stock method. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 31, 2018, 2017 and 2016: (in thousands, except earnings per share data) Fiscal Year Ended March 31, 2016 2017 2018 Numerator: Net income $ 68,392 $ 82,599 $ (869 ) Denominator: Weighted average common shares-basic 34,127 32,279 32,345 Dilutive effect of employee equity incentive plans 811 684 — Weighted average shares-diluted 34,938 32,963 32,345 Basic earnings per common share $ 2.00 $ 2.56 $ (0.03 ) Diluted earnings per common share $ 1.96 $ 2.51 $ (0.03 ) Potentially dilutive securities excluded from diluted earnings per share because their effect is anti-dilutive 326 574 543 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Mar. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | GEOGRAPHIC INFORMATION The Company designs, manufactures, markets, and sells headsets for business and consumer applications. With respect to headsets, it makes products for use in offices and contact centers, with mobile devices, cordless phones, and with computers and gaming consoles. Major product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems; and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer ("PC") and gaming headsets. The following table presents net revenues by product group: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Net revenues from unaffiliated customers: Enterprise $ 626,666 $ 628,654 $ 649,739 Consumer 230,241 252,522 207,164 Total net revenues $ 856,907 $ 881,176 $ 856,903 For reporting purposes, revenue is attributed to each geographic region based on the location of the customer. Other than the U.S., no country accounted for 10% or more of the Company's net revenues for the years ended March 31, 2016 , 2017 , and 2018 . The following table presents net revenues by geography: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Net revenues from unaffiliated customers: U.S. $ 482,622 $ 482,215 $ 434,053 Europe and Africa 217,633 226,620 250,763 Asia Pacific 105,687 106,295 99,779 Americas, excluding U.S. 50,965 66,046 72,308 Total International net revenues 374,285 398,961 422,850 Total net revenues $ 856,907 $ 881,176 $ 856,903 One customer, Ingram Micro Group, accounted for 10.9% of total net revenues in Fiscal Year 2018 and 2017. No customer accounted for 10% or more of total net revenues in Fiscal Years 2016 The following table presents long-lived assets by geographic area on a consolidated basis: Fiscal Year Ended March 31, (in thousands) 2017 2018 U.S. $ 69,085 $ 64,975 Mexico 42,923 41,036 The Netherlands 22,637 20,752 Other countries 15,662 15,366 Total long-lived assets $ 150,307 $ 142,129 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On May 1, 2018 , the Audit Committee approved the payment of a dividend of $0.15 per share on June 8, 2018 to holders of record on May 18, 2018 . |
SUPPLEMENTARY QUARTERLY FINANCI
SUPPLEMENTARY QUARTERLY FINANCIAL DATA | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data | SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited) Each of the Company's fiscal years ends on the Saturday closest to the last day of March. The Company's Fiscal Year 2018 and Fiscal Year 2017 consisted of 52 weeks. Our interim fiscal quarters for the first, second, third, and fourth quarter of Fiscal Year 2018 ended on July 1 2017, September 30, 2017, December 30, 2017, and March 31, 2018 , respectively, and our interim fiscal quarters for the first, second, third, and fourth quarter of Fiscal Year 2017 ended on July 2, 2016, October 1, 2016, December 31, 2016, and April 1, 2017 , respectively. All interim fiscal quarters presented below consisted of 13 weeks. For purposes of presentation, the Company has indicated its accounting fiscal year as ending on March 31 and our interim quarterly periods as ending on the last calendar day of the applicable month end. (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2017 March 31, 2018 Net revenues $ 203,926 $ 210,300 $ 226,534 $ 216,143 Gross profit $ 103,283 $ 107,632 $ 114,125 $ 114,075 Net income $ 18,828 $ 19,953 $ (49,504 ) $ 9,854 Basic net income per common share $ 0.58 $ 0.59 $ (1.54 ) $ 0.30 Diluted net income per common share $ 0.57 $ 0.59 $ (1.54 ) $ 0.29 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2016 March 31, 2017 Net revenues $ 223,106 $ 216,183 $ 232,933 $ 208,954 Gross profit $ 113,073 $ 110,446 $ 110,180 $ 107,671 Net income $ 20,387 $ 20,474 $ 22,221 $ 19,517 Basic net income per common share $ 0.63 $ 0.63 $ 0.69 $ 0.60 Diluted net income per common share $ 0.62 $ 0.63 $ 0.68 $ 0.59 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II: VALUATION AND QUALITYING ACCOUNTS AND RESERVES | PLANTRONICS, INC. SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Year Charged to Expenses or Other Accounts Deductions Balance at End of Year Provision for doubtful accounts and sales allowances: (1) Year ended March 31, 2016 $ 1,221 $ 719 $ (1,376 ) $ 564 Year ended March 31, 2017 564 621 (582 ) 603 Year ended March 31, 2018 $ 603 $ 784 $ (514 ) $ 873 Provision for returns: (2) Year ended March 31, 2016 $ 6,194 $ 27,635 $ (26,515 ) $ 7,314 Year ended March 31, 2017 7,314 35,485 (32,258 ) 10,541 Year ended March 31, 2018 $ 10,541 $ 30,472 $ (30,788 ) $ 10,225 Provision for promotions and rebates: (3) Year ended March 31, 2016 $ 15,401 $ 111,244 $ (98,908 ) $ 27,737 Year ended March 31, 2017 27,737 150,085 (146,075 ) 31,747 Year ended March 31, 2018 $ 31,747 $ 183,929 $ (177,392 ) $ 38,284 Valuation allowance for deferred tax assets: (4) Year ended March 31, 2016 $ 1,940 $ 1,962 $ (1,940 ) $ 1,962 Year ended March 31, 2017 1,962 1,130 (883 ) 2,209 Year ended March 31, 2018 $ 2,209 $ 981 $ (676 ) $ 2,514 (1) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as part of selling, general, and administrative expenses for doubtful accounts and as a reduction to net revenues for sales allowances. (2) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as a reduction to net revenues. (3) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as a reduction to net revenues. (4) Amounts charged to expenses or other accounts are reflected in the consolidated statements of operations as a component of income tax expense. All other schedules have been omitted because the required information is either not present or not present in the amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto. |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Management's Use of Estimates and Assumptions | Management's Use of Estimates and Assumptions The Company's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). In connection with the preparation of our financial statements, the Company is required to make assumptions and estimates about future events, and apply judgments that affect the reported amounts of assets, liabilities, net revenues, expenses, and the related disclosures. The Company bases its assumptions, estimates, and judgments on historical experience, current trends, future expectations, and other factors that management believes to be relevant at the time the consolidated financial statements are prepared. On an ongoing basis, the Company reviews its accounting policies, assumptions, estimates, and judgments, including those related to revenue and related reserves and allowances, inventory valuation, product warranty obligations, the useful lives of long-lived assets including property, plant and equipment and intangible assets, investment fair values, stock-based compensation, goodwill, income taxes, contingencies, and restructuring charges, to ensure that the consolidated financial statements are presented fairly and in accordance with U.S. GAAP. Because future events and their effects cannot be determined with certainty, actual results could differ from the Company's assumptions and estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Plantronics and its wholly owned subsidiaries. The Company has included the results of operations of acquired companies from the date of acquisition. All intercompany balances and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday closest to the last day of March. Fiscal Years 2018 and 2017 each had 52 weeks and ended on March 31, 2018 and April 1, 2017 , respectively. Fiscal Year 2016 had 53 weeks and ended on April 2, 2016 . For purposes of presentation, the Company has indicated its accounting fiscal year as ending on March 31. |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Investments All highly liquid investments with initial stated maturities of three months or less at the date of purchase are classified as cash equivalents. The Company classifies its investments as either short-term or long-term based on each instrument's underlying effective maturity date and reasonable expectations with regard to sales and redemptions of the instruments. All short-term investments have effective maturities less than 12 months, while all long-term investments have effective maturities greater than 12 months. The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. During the year ended March, 31, 2018, we sold our long-term investments and recognized a loss on sale of approximately $1.2 million . As of March 31, 2018 , with the exception of assets related to the Company's deferred compensation plan and classified as trading securities, all investments were classified as available-for-sale, with unrealized gains and losses recorded as a separate component of accumulated other comprehensive income ("AOCI") in stockholders’ equity. The specific identification method is used to determine the cost of disposed securities, with realized gains and losses reflected in other non-operating income and (expense), net. For investments with an unrealized loss, the factors considered in the review include the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, severity of impairment, reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, and whether the Company would be required to sell an investment due to liquidity or contractual reasons before its anticipated recovery. Foreign Currency Derivatives The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative foreign currency contracts are valued using pricing models that use observable inputs. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Company enters into foreign exchange forward contracts to reduce the impact of foreign currency fluctuations on assets and liabilities denominated in currencies other than the functional currency of the reporting entity. The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts are carried at fair value with changes in the fair value recorded within other non-operating income and (expense), net in the consolidated statements of operations. Gains and losses on these contracts are intended to offset the impact of foreign exchange rate changes on the underlying foreign currency denominated assets and liabilities, and therefore, do not subject the Company to material balance sheet risk. The Company has significant international revenues and costs denominated in foreign currencies, subjecting it to foreign currency risk. The Company purchases foreign currency option contracts and cross-currency swaps that qualify as cash flow hedges, with maturities of up to 24 months, to reduce the volatility of cash flows related primarily to forecasted revenue and expenses. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of AOCI and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. The Company does not hold or issue derivative financial instruments for speculative trading purposes. The Company enters into derivatives only with counterparties that are among the largest United States ("U.S.") banks, ranked by assets, in order to minimize its credit risk and to date, no such counterparty has failed to meet its financial obligations under such contracts. |
Provision for Doubtful Accounts | Provision for Doubtful Accounts The Company maintains a provision for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Plantronics regularly performs credit evaluations of its customers’ financial conditions and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks, and economic conditions that may affect a customer’s ability to pay. |
Inventory and Related Reserves | Inventory and Related Reserves Inventories are valued at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. The Company writes down inventories that have become obsolete or are in excess of anticipated demand or net realizable value. Our estimate of write downs for excess and obsolete inventory is based on a detailed analysis of on-hand inventory and purchase commitments in excess of forecasted demand. A substantial portion of the raw materials, components and subassemblies (together, “parts”) used in the Company's products are provided by its suppliers on a consignment basis. These consigned inventories are not recorded on the Company's consolidated balance sheet until it takes title to the parts, which occurs when they are consumed in the production process. The Company provides forecasts to its suppliers covering up to thirteen weeks of demand and places purchase orders when the parts are consumed in the production process, at which time all right, title, and interest in and to the parts transfers to the Company. Prior to consumption in the production process, the Company's suppliers bear the risk of loss and retain title to the consigned inventory. The terms of the agreements allow the Company to return parts in excess of maximum order quantities to the suppliers at the supplier’s expense. Returns for other reasons are negotiated with the suppliers on a case-by-case basis and to date have been immaterial. As of March 31, 2018 , the Company’s aggregate commitment to suppliers for parts used in the manufacture of the Company’s products was $190.0 million , which the Company expects to utilize in the normal course of business, net of an immaterial purchase commitments reserve. The Company’s purchase commitments reserve reflects the Company’s estimate of purchase commitments it does not expect to use in normal ongoing operations within the next twelve months. As of March 31, 2018 and 2017 , the off-balance sheet consigned inventory balances were $48.8 million and $52.3 million , respectively. |
Product Warranty Obligations | Product Warranty Obligations The Company records a liability for the estimated costs of warranties at the time the related revenue is recognized. The specific warranty terms and conditions range from one to two years starting from the delivery date to the end user and vary depending upon the product sold and the country in which the Company does business. Factors that affect the warranty obligations include product failure rates, estimated return rates, the amount of time lapsed from the date of sale to the date of return, material usage, service related costs incurred in correcting product failure claims, and knowledge of specific product failures that are outside of the Company’s typical experience. |
Goodwill and Purchased Intangibles | Goodwill and Purchased Intangibles Goodwill has been measured as the excess of the cost of acquisition over the amount assigned to tangible and identifiable intangible assets acquired less liabilities assumed. At least annually, in the fourth quarter of each fiscal year or more frequently if indicators of impairment exist, management performs a review to determine if the carrying value of goodwill is impaired. The identification and measurement of goodwill impairment involves the estimation of fair value at the Company’s reporting unit level. The Company determines its reporting units by assessing whether discrete financial information is available and if segment management regularly reviews the results of that component. The Company has determined it has one reporting unit. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, the first step of the two-step impairment test must be performed by estimating the fair value of the reporting unit and comparing it with its carrying value, including goodwill. Intangible assets other than goodwill are carried at cost and amortized over their estimated useful lives. The Company reviews identifiable finite-lived intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its ultimate disposition. Measurement of any impairment loss is based on the amount by which the carrying value of the asset exceeds its fair market value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which range from two to thirty years. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the assets. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company recognizes an impairment charge in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to the asset group. No material impairment losses were incurred in the periods presented. |
Fair Value Measurements | Fair Value Measurements All financial assets and liabilities are recognized or disclosed at fair value in the financial statements. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 The Company's Level 1 financial assets consist of Mutual Funds and US Treasury Notes. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities. Level 2 The Company's Level 2 financial assets and liabilities consist of derivative foreign currency contracts, Government Agency Securities, Commercial Paper, Corporate Bonds, Certificates of Deposits ("CDs"), and 5.50% senior notes (the " 5.50% Senior Notes"). The fair value of Level 2 investment securities is determined based on other observable inputs, including multiple non-binding quotes from independent pricing services. Non-binding quotes are based on proprietary valuation models that are prepared by the independent pricing services and use algorithms based on inputs such as observable market data, quoted market prices for similar securities, issuer spreads, and internal assumptions of the broker. The Company corroborates the reasonableness of non-binding quotes received from the independent pricing services using a variety of techniques depending on the underlying instrument, including: (i) comparing them to actual experience gained from the purchases and maturities of investment securities, (ii) comparing them to internally developed cash flow models based on observable inputs, and (iii) monitoring changes in ratings of similar securities and the related impact on fair value. The fair value of Level 2 derivative foreign currency contracts is determined using pricing models that use observable market inputs. The fair value of Level 2 long-term debt is determined based on inputs that were observable in the market, including the trading price of the notes when available. The fair value of the Company's 5.50% Senior Notes is determined based on observable market inputs, including the trading price of the 5.50% Senior Notes. Level 3 The Company's unsecured revolving credit facility falls under the Level 3 hierarchy. The fair value of the Company’s line of credit approximates its carrying value because the interest rate is a variable rate that approximates rates currently available to the Company. |
Revenue Recognition | Revenue Recognition The Company sells substantially all of its products to end users through distributors, retailers, and carriers. The Company's revenue is derived from the sale of headsets, telephone headset systems, and accessories for the business and consumer markets and is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. These criteria are usually met at the time of product shipment; however, the Company defers revenue when any significant obligations remain and for Fiscal Years 2016 , 2017 , and 2018 this accounted for less than 1% of the Company's net revenues. Customer contracts and/or purchase orders are used to determine the existence of an arrangement. Product is considered delivered once it has been shipped and title and risk of loss have been transferred to the customer. The Company assesses whether a price is fixed or determinable based upon the selling terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company assesses collectability based on a customer's credit quality, historical experience, and geographic or country-specific risks and economic conditions that may affect a customer's ability to pay. Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Shipping and handling costs incurred in connection with the sale of products are included in cost of revenues. Sales through retail and distribution channels are made primarily under agreements or commitments 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 can reasonably estimate back end rebates, discounts and similar incentives due to an established sales history with its customers and records the estimated reserves and allowances at the time the related revenue is recognized. The Company recognizes marketing development funds at the later of when the related revenue is recognized or the program is offered to the channel partner. The nature of the sales incentive programs offered to channel partners is such that the Company cannot identify a benefit that is sufficiently separable from the channel partners’ purchase of products, nor does it have the infrastructure to establish fair value for the multitude of activities supported by these programs. As a result, substantially all sales incentives to our channel partners in the form of cash consideration, are recorded as a reduction to revenue. Sales return reserves are estimated based on historical data, relevant current data, and the monitoring of inventory build-up in the distribution channel. When a sales arrangement contains multiple elements, such as hardware and software products and/or services, the Company allocates revenue to each element based on relative selling prices. The selling price for a deliverable is based on its vendor specific objective evidence ("VSOE"), if available, third party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. In multiple element arrangements where more-than-incidental software deliverables are included, the Company allocates revenue to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. |
Advertising Costs | Advertising Costs The Company expenses all advertising costs as incurred. |
Income Taxes | Income Taxes Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company's current tax liability and changes in deferred income tax assets and liabilities. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. The Company follows the tax law ordering to determine when excess tax benefits have been realized. The Company is subject to income taxes in the U.S. and foreign jurisdictions. At any one time, multiple tax years are subject to audit by various tax authorities. |
Earnings Per Share | Earnings Per Share |
Comprehensive Income | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to income, expenses, gains, and losses that under U.S. GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Accumulated other comprehensive income, as presented in the accompanying consolidated balance sheets, consists of foreign currency translation adjustments, unrealized gains and losses on derivatives designated as cash flow hedges, net of tax, and unrealized gains and losses on marketable securities classified as available-for-sale, net of tax. |
Foreign Operations and Currency Translation | Foreign Operations and Currency Translation The Company's functional currency is the U.S. Dollar (“USD") . Assets and liabilities denominated in currencies other than the USD, are re-measured at the period-end rates for monetary assets and liabilities and at historical rates for non-monetary assets and liabilities. Revenues and expenses are re-measured at average monthly rates, which approximate actual rates. Currency transaction gains and losses are recognized in other non-operating income and (expense), net. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company applies the provisions of the Compensation - Stock Compensation Topic of the FASB ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee directors based on estimated fair values. The Company recognizes the grant-date fair value of stock-based compensation as compensation expense using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest. The Company adopted the new stock-based compensation accounting guidance effective in Fiscal Year 2018. This new guidance requires excess tax benefits and tax deficiencies to be recognized in the provision for income taxes as discrete items in the period when the awards vest or are settled, whereas previously such income tax effects were recorded as part of additional paid-in capital. The adoption of this guidance had an immaterial impact on the Company's effective tax rate for the year ended March 31, 2018. The amount of excess tax benefits or deficiencies will fluctuate from period-to-period based on the price of the Company’s stock, the volume of share-based instruments settled or vested, and the value assigned to employee equity awards under U.S. GAAP. For further details refer to Note 16, Income Taxes . |
Treasury Shares | Treasury Shares From time to time, the Company repurchases shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions, in accordance with programs authorized by the Board of Directors. Repurchased shares are held as treasury stock until such time as they are retired or re-issued. Retirements of treasury stock are non-cash equity transactions in which the reacquired shares are returned to the status of authorized but unissued shares and the cost is recorded as a reduction to both retained earnings and treasury stock. The stock repurchase programs are intended to offset the impact of dilution resulting from the Company's stock-based compensation programs. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term and long-term investments, and trade accounts receivable. Plantronics’ investment policy limits investments to highly-rated securities. In addition, the Company limits the amount of credit exposure to any one issuer and restricts placement of these investments to issuers evaluated as creditworthy. As of March 31, 2017 and 2018 the Company's investments were composed of Mutual Funds, US Treasury Notes, Government Agency Securities, Commercial Paper, Corporate Bonds, and Certificates of Deposits ("CDs") . Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers that comprise the Company’s customer base and their dispersion across different geographies and markets. One customer Ingram Micro Group accounted for 17.6% of total net accounts receivable as of March 31, 2017 . Two customers, D & H Distributing Company and Ingram Micro Group, accounted for 13.0% and 12.4% , respectively, of total net accounts receivable as of March 31, 2018 . The Company does not believe other significant concentrations of credit risk exist. Plantronics performs ongoing credit evaluations of its customers' financial condition and requires no collateral from its customers. The Company maintains a provision for doubtful accounts based upon expected collectibility of all accounts receivable. Certain inventory components required by the Company are only available from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short lifecycles may intensify these risks. The inability to obtain components as required, or to develop alternative sources, as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. Immaterial Out-of-Period Correction: During the first quarter of Fiscal Year 2018, the Company recognized an out-of-period correction to its Fiscal Year 2017 geographic mix of taxable income, which resulted in an overstatement of Fiscal Year 2017 income tax expense by $2.8 million . The Company's correction, recognized in the quarter ended June 30, 2017, resulted in a $2.8 million benefit to income tax expense. The Company assessed the materiality of this error and concluded it was not material to Fiscal Years 2017 and 2018. 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. |
CASH, CASH EQUIVALENTS AND IN30
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Cash, Cash Equivalents and Investments | The following tables summarize the Company’s cash, cash equivalents, and investments’ adjusted cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents, short-term, or long-term investments as of March 31, 2017 and 2018 (in thousands): March 31, 2017 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 295,877 $ — $ — $ 295,877 $ 295,877 $ — $ — Level 1: Mutual Funds 12,079 352 (32 ) 12,399 — 12,399 — US Treasury Notes 35,960 — (68 ) 35,892 — 17,560 18,332 Subtotal 48,039 352 (100 ) 48,291 — 29,959 18,332 Level 2: Government Agency Securities 54,415 20 (164 ) 54,271 — 15,309 38,962 Commercial Paper 47,152 — — 47,152 6,093 41,059 — Corporate Bonds 141,508 64 (224 ) 141,348 — 73,676 67,672 Certificates of Deposits ("CDs") 20,383 3 — 20,386 — 18,176 2,210 Subtotal 263,458 87 (388 ) 263,157 6,093 148,220 108,844 Total cash, cash equivalents $ 607,374 $ 439 $ (488 ) $ 607,325 $ 301,970 $ 178,179 $ 127,176 March 31, 2018 Amortized Gross Gross Fair Cash & Cash Equivalents Short-term investments (due in 1 year or less) Long-term investments (due in 1 to 3 years) Cash $ 308,734 $ — $ — $ 308,734 $ 308,734 $ — $ — Level 1: Mutual Funds 13,336 186 (67 ) 13,455 — 13,455 — US Treasury Notes 129,373 7 (60 ) 129,320 30,178 99,142 — Money Market Funds 344 — — 344 344 — — Subtotal 143,053 193 (127 ) 143,119 30,522 112,597 — Level 2: Government Agency Securities 46,354 — (56 ) 46,298 6,978 39,320 — Municipal Bonds 3,591 — — 3,591 3,591 — — Commercial Paper 84,512 — — 84,512 40,836 43,676 — Corporate Bonds 54,701 — (212 ) 54,489 — 54,489 — Certificates of Deposits ("CDs") 19,231 — — 19,231 — 19,231 — Subtotal 208,389 — (268 ) 208,121 51,405 156,716 — Total cash, cash equivalents $ 660,176 $ 193 $ (395 ) $ 659,974 $ 390,661 $ 269,313 $ — |
DETAILS OF CERTAIN BALANCE SH31
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts receivable, net | Accounts receivable, net: March 31, (in thousands) 2017 2018 Accounts receivable $ 184,068 $ 202,270 Provisions for returns (10,541 ) (10,225 ) Provisions for promotions and rebates (31,747 ) (38,284 ) Provisions for doubtful accounts and sales allowances (603 ) (873 ) Accounts receivable, net $ 141,177 $ 152,888 |
Inventory, net | Inventory, net: March 31, (in thousands) 2017 2018 Raw materials $ 20,260 $ 28,789 Work in process 215 450 Finished goods 34,981 39,037 Inventory, net $ 55,456 $ 68,276 |
Property, Plant and Equipment | Property, plant, and equipment, net: March 31, (in thousands) 2017 2018 Land $ 16,418 $ 16,564 Buildings and improvements (useful life: 7-30 years) 115,909 115,401 Machinery and equipment (useful life: 2-10 years) 108,477 112,719 Software (useful life: 5-10 years) 46,806 50,631 Construction in progress 6,899 5,428 Property, plant, and equipment, gross 294,509 300,743 Accumulated depreciation and amortization (144,202 ) (158,614 ) Property, plant, and equipment, net $ 150,307 $ 142,129 |
Accrued Liabilities | Accrued liabilities: March 31, (in thousands) 2017 2018 Employee compensation and benefits $ 36,415 $ 28,599 Accrued interest on 5.50% Senior Notes 10,407 10,331 Warranty obligation, short-term portion 6,863 7,550 VAT/Sales Tax Payable 5,433 5,353 Derivative liabilities 1,323 2,947 Accrued other 13,844 25,317 Accrued liabilities $ 74,285 $ 80,097 |
Changes in the warranty obligation accrual | Changes in the warranty obligation, which are included as a component of accrued liabilities in the consolidated balance sheets, are as follows: Year ended March 31, (in thousands) 2017 2018 Warranty obligation at beginning of year $ 8,537 $ 8,697 Warranty provision related to products shipped 9,451 9,923 Deductions for warranty claims processed (9,824 ) (10,193 ) Adjustments related to preexisting warranties 533 1,177 Warranty obligation at end of year 1 $ 8,697 $ 9,604 1 Includes both short-term and long-term portion of warranty obligation; the prior table shows only the short-term portion included in accrued liabilities on our consolidated balance sheet. The long-term portion is included in other long-term liabilities. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of March 31, 2018 are as follows: Fiscal Year Ending March 31, 2018 (in thousands) 2019 $ 2,556 2020 2,142 2021 1,823 2022 1,322 2023 823 Thereafter 1,304 Total minimum future rental payments $ 9,970 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of debt, fair value | March 31, 2017 March 31, 2018 (in thousands) Fair Value Carrying Value Fair Value Carrying Value 5.50% Senior Notes $ 505,150 $ 491,059 $ 497,095 $ 492,509 |
Summary of debt redemption | The Company may redeem all or a part of the 5.50% Senior Notes, upon not less than 30 or more than a 60 day notice; however, the applicable redemption price will be determined as follows: Redemption Period Requiring Payment of: Redemption Up To 35% Using Cash Proceeds From An Equity Offering (3) : Make-Whole (1) Premium (2) Date Specified Price 5.50% Senior Notes Prior to May 15, 2018 On or after May 15, 2018 Prior to May 15, 2018 105.50% (1) If the Company redeems the notes prior to the applicable date, the price is principal plus a make-whole premium equal to the present value of the remaining scheduled interest payments as described in the applicable indenture, together with accrued and unpaid interest. (2) If the Company redeems the notes on or after the applicable date, the price is principal plus a premium which declines over time as specified in the applicable indenture, together with accrued and unpaid interest. (3) If the Company redeems the notes prior to the applicable date with net cash proceeds of one or more equity offerings, the price is equal to the amount specified above, together with accrued and unpaid interest, subject to a maximum redemption of 35% of the aggregate principal amount of the respective note being redeemed. |
RESTRUCTURING AND OTHER RELAT34
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges (Credits) | The associated charges for year ended March 31, 2018 are recorded in restructuring and other related charges (credits), cost of revenues, and selling, general, and administrative expense in the condensed consolidated statements of operations, as follows: Year ended March 31, 2018 (in millions) Total Charges Restructuring and Other Related Charges (Credits) Cost of Revenues Selling, General, and Administrative Severance benefits from reduction-in-force $ 1.4 $ 1.4 $ — $ — Lease exit charges and asset impairments in Netherlands 0.7 0.7 — — Write-off of unrecoverable indirect tax asset in Brazil 0.7 — 0.7 — Asset impairments related to previous Clarity operations 0.4 0.4 — — Loss on Clarity asset sale 0.9 — 0.9 — Accelerated vesting of restricted stock 0.2 — — 0.2 Totals $ 4.3 $ 2.5 $ 1.6 $ 0.2 |
STOCK PLANS AND STOCK-BASED C35
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense Included in Statements of Operations | The following table summarizes the amount of stock-based compensation expense included in the consolidated statements of operations for the periods presented: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Cost of revenues $ 3,306 $ 3,244 $ 3,622 Research, development and engineering 9,908 8,616 8,071 Selling, general and administrative 20,051 21,679 22,266 Stock-based compensation expense included in operating expenses 29,959 30,295 30,337 Total stock-based compensation 33,265 33,539 33,959 Income tax benefit (10,950 ) (10,768 ) (7,880 ) Total stock-based compensation expense, net of tax $ 22,315 $ 22,771 $ 26,079 |
Summary of Stock Option Activity | The following is a summary of the Company’s stock option activity during Fiscal Year 2018 : Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at March 31, 2017 1,417 $ 43.41 Options granted 15 $ 52.11 Options exercised (505 ) $ 36.04 Options forfeited or expired (4 ) $ 53.23 Outstanding at March 31, 2018 923 $ 47.53 3.8 $ 11,853 Vested or expected to vest at March 31, 2018 918 $ 47.54 3.8 $ 11,781 Exercisable at March 31, 2018 758 $ 47.69 3.5 $ 9,612 |
Summary of Restricted Stock Activity | The following is a summary of the Company’s restricted stock activity during Fiscal Year 2018 : Number of Shares Weighted Average Grant Date Fair Value (in thousands) Unvested at March 31, 2017 1,172 $ 47.86 Restricted stock granted 784 $ 53.62 Restricted stock vested (577 ) $ 48.12 Restricted stock forfeited (125 ) $ 50.30 Non-vested at March 31, 2018 1,254 $ 51.09 |
Valuation Assumptions | The Company estimates the fair value of stock options and ESPP shares using a Black-Scholes option valuation model. At the date of grant, the Company estimated the fair value of each stock option grant and purchase right granted under the ESPP using the following weighted average assumptions: Employee Stock Options ESPP Fiscal Year Ended March 31, 2016 2017 2018 2016 2017 2018 Expected volatility 27.0 % 31.1 % 29.1 % 33.5 % 28.8 % 30.5 % Risk-free interest rate 1.4 % 1.1 % 1.7 % 0.3 % 0.6 % 1.5 % Expected dividends 1.1 % 1.4 % 1.2 % 1.4 % 1.1 % 1.2 % Expected life (in years) 4.2 4.4 4.6 0.5 0.5 0.5 Weighted-average grant date fair value $ 11.39 $ 10.39 $ 12.58 $ 10.33 $ 12.03 $ 11.78 |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income, net of associated tax impacts, were as follows: March 31, (in thousands) 2017 2018 Accumulated unrealized gain (loss) on cash flow hedges (1) $ 529 $ (1,663 ) Accumulated foreign currency translation adjustments 4,428 4,685 Accumulated unrealized gain on investments (263 ) (152 ) Accumulated other comprehensive income $ 4,694 $ 2,870 (1) Refer to Note 15 , Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of March 31, 2017 and March 31, 2018 . |
FOREIGN CURRENCY DERIVATIVES (T
FOREIGN CURRENCY DERIVATIVES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Financial Assets Under Master Netting Agreements | As of March 31, 2017 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 2,120 $ (1,395 ) $ — $ 725 Derivatives not subject to master netting agreements — — Total $ 2,120 $ 725 As of March 31, 2018 : Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets Derivatives subject to master netting agreements $ 772 $ (772 ) $ — $ — Derivatives not subject to master netting agreements — — Total $ 772 $ — |
Offsetting Financial Liabilities Under Master Netting Agreements | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (1,395 ) $ 1,395 $ — $ — Derivatives not subject to master netting agreements — — Total $ (1,395 ) $ — Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements (in thousands) Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities Derivatives subject to master netting agreements $ (3,037 ) $ 772 $ — $ (2,265 ) Derivatives not subject to master netting agreements — — Total $ (3,037 ) $ (2,265 ) |
Notional Amounts of Outstanding Foreign Exchange Contracts and Approximate U.S. Dollar Equivalent | The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows: (in millions) March 31, 2017 March 31, 2018 EUR GBP EUR GBP Option contracts €73.5 £23.9 €77.8 £23.7 Forward contracts €11.2 £3.3 €16.7 £3.7 The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate U.S. Dollar ("USD") equivalent at March 31, 2018 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) EUR € 32,050 $ 39,557 Sell EUR 1 month GBP £ 10,900 $ 15,313 Sell GBP 1 month AUD A$ 13,600 $ 10,456 Sell AUD 1 month CAD C$ 2,500 $ 1,939 Sell CAD 1 month |
Effect of Non-Designated Derivative Contracts On Results of Operations Recognized in Interest and Other Income (Expense), Net in Statements of Operations | The effect of non-designated derivative contracts on results of operations recognized in other non-operating income and (expense), net in the consolidated statements of operations was as follows: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Gain on foreign exchange contracts $ 494 $ 4,599 $ 7,405 |
Notional Value of Outstanding Currency Swaps and Approximate U.S. Dollar Equivalent | The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at March 31, 2018 : Local Currency USD Equivalent Position Maturity (in thousands) (in thousands) MX$ 31,830 $ 1,599 Buy MXN Monthly over 3 months |
Balance of Designated Derivative Contracts and the Pre-Tax Impact on Accumulated Other Comprehensive Income | The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on AOCI and the consolidated statements of operations for fiscal years ended March 31, 2016 , 2017 , and 2018 : (in thousands) 2016 2017 2018 Gain (loss) included in AOCI as of beginning of period $ 5,705 $ (1,106 ) $ 541 Amount of gain (loss) recognized in OCI (effective portion) (3,786 ) 3,095 (6,741 ) Amount of (gain) loss reclassified from OCI into net revenues (effective portion) (7,826 ) (4,111 ) 4,715 Amount of (gain) loss reclassified from OCI into cost of revenues (effective portion) 4,801 2,663 (208 ) Total amount of (gain) loss reclassified from AOCI to consolidated statements of operations (effective portion) (3,025 ) (1,448 ) 4,507 Gain (loss) included in AOCI as of end of period $ (1,106 ) $ 541 $ (1,693 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense for Fiscal Years 2016 , 2017 , and 2018 consisted of the following: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Current: Federal $ 15,702 $ 10,591 $ 82,523 State 1,934 457 4,274 Foreign 4,644 7,731 6,860 Total current provision for income taxes 22,280 18,779 93,657 Deferred: Federal (7,767 ) 1,022 9,002 State (1,103 ) (117 ) (1,585 ) Foreign 374 (618 ) 22 Total deferred income tax expense (benefit) (8,496 ) 287 7,439 Income tax expense $ 13,784 $ 19,066 $ 101,096 |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income before income taxes for Fiscal Years 2016 , 2017 , and 2018 are as follows: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 United States $ 42,184 $ 43,377 $ 17,654 Foreign 39,992 58,288 82,573 Income before income taxes $ 82,176 $ 101,665 $ 100,227 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation between statutory federal income taxes and the income tax expense for Fiscal Years 2016 , 2017 , and 2018 : Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Tax expense at statutory rate $ 28,762 $ 35,583 $ 31,631 Foreign operations taxed at different rates (9,478 ) (13,183 ) (17,970 ) State taxes, net of federal benefit 831 340 2,689 Research and development credit (3,133 ) (3,119 ) (2,023 ) Unwind of stock based compensation cost sharing (2,855 ) — — Impact of Tax Act — — 87,790 Stock based compensation (487 ) (365 ) (1,771 ) Other, net 144 (190 ) 750 Income tax expense $ 13,784 $ 19,066 $ 101,096 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities as of March 31, 2017 and 2018 are as follows: March 31, (in thousands) 2017 2018 Accruals and other reserves $ 8,526 $ 4,809 Deferred Compensation 4,859 3,467 Net operating loss carry forward 2,221 1,540 Stock compensation 12,821 8,384 Tax credits 4,530 6,504 Other deferred tax assets 1,711 1,070 Valuation allowance (2,209 ) (2,514 ) Total deferred tax assets 32,459 23,260 Deferred gains on sales of properties (1,771 ) (1,160 ) Unremitted earnings of certain subsidiaries — (1,976 ) Fixed asset depreciation (7,351 ) (4,150 ) Total deferred tax liabilities (9,122 ) (7,286 ) Net deferred tax assets (1) $ 23,337 $ 15,974 (1) The Company's deferred tax assets for the fiscal year ending March 31, 2017 and March 31, 2018 , are included as a component of other assets on the consolidated balance sheets. |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows: March 31, (in thousands) 2016 2017 2018 Balance at beginning of period $ 12,821 $ 12,692 $ 12,854 Increase (decrease) of unrecognized tax benefits related to prior fiscal years (598 ) (2 ) (1,310 ) Increase of unrecognized tax benefits related to the current year 2,252 2,195 3,085 Reductions to unrecognized tax benefits related to settlements with taxing authorities (149 ) — (115 ) Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations (1,634 ) (2,031 ) (1,902 ) Balance at end of period $ 12,692 $ 12,854 $ 12,612 |
COMPUTATION OF EARNINGS PER C39
COMPUTATION OF EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 31, 2018, 2017 and 2016: (in thousands, except earnings per share data) Fiscal Year Ended March 31, 2016 2017 2018 Numerator: Net income $ 68,392 $ 82,599 $ (869 ) Denominator: Weighted average common shares-basic 34,127 32,279 32,345 Dilutive effect of employee equity incentive plans 811 684 — Weighted average shares-diluted 34,938 32,963 32,345 Basic earnings per common share $ 2.00 $ 2.56 $ (0.03 ) Diluted earnings per common share $ 1.96 $ 2.51 $ (0.03 ) Potentially dilutive securities excluded from diluted earnings per share because their effect is anti-dilutive 326 574 543 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Revenue from External Customers by Products and Services | The following table presents net revenues by product group: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Net revenues from unaffiliated customers: Enterprise $ 626,666 $ 628,654 $ 649,739 Consumer 230,241 252,522 207,164 Total net revenues $ 856,907 $ 881,176 $ 856,903 |
Net Revenues by Geography | The following table presents net revenues by geography: Fiscal Year Ended March 31, (in thousands) 2016 2017 2018 Net revenues from unaffiliated customers: U.S. $ 482,622 $ 482,215 $ 434,053 Europe and Africa 217,633 226,620 250,763 Asia Pacific 105,687 106,295 99,779 Americas, excluding U.S. 50,965 66,046 72,308 Total International net revenues 374,285 398,961 422,850 Total net revenues $ 856,907 $ 881,176 $ 856,903 |
Schedule of Long-Lived Assets, by Geographic Areas | The following table presents long-lived assets by geographic area on a consolidated basis: Fiscal Year Ended March 31, (in thousands) 2017 2018 U.S. $ 69,085 $ 64,975 Mexico 42,923 41,036 The Netherlands 22,637 20,752 Other countries 15,662 15,366 Total long-lived assets $ 150,307 $ 142,129 |
SUPPLEMENTARY QUARTERLY FINAN41
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2017 March 31, 2018 Net revenues $ 203,926 $ 210,300 $ 226,534 $ 216,143 Gross profit $ 103,283 $ 107,632 $ 114,125 $ 114,075 Net income $ 18,828 $ 19,953 $ (49,504 ) $ 9,854 Basic net income per common share $ 0.58 $ 0.59 $ (1.54 ) $ 0.30 Diluted net income per common share $ 0.57 $ 0.59 $ (1.54 ) $ 0.29 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 (in thousands, except per share data) Quarter Ended June 30, September 30, December 31, 2016 March 31, 2017 Net revenues $ 223,106 $ 216,183 $ 232,933 $ 208,954 Gross profit $ 113,073 $ 110,446 $ 110,180 $ 107,671 Net income $ 20,387 $ 20,474 $ 22,221 $ 19,517 Basic net income per common share $ 0.63 $ 0.63 $ 0.69 $ 0.60 Diluted net income per common share $ 0.62 $ 0.63 $ 0.68 $ 0.59 Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017USD ($) | Mar. 31, 2018USD ($)Customer | Mar. 31, 2017USD ($)Customer | Mar. 31, 2016USD ($) | Mar. 31, 2015 | May 31, 2015 | |
Product Information [Line Items] | ||||||
Duration of fiscal year | 364 days | 371 days | 364 days | 364 days | ||
Loss on sale of long-term investments | $ 1,200 | |||||
Unconditional purchase obligations | 190,000 | |||||
Off-balance sheet consigned inventory | 48,800 | $ 52,300 | ||||
Advertising expense | $ 900 | $ 1,800 | $ 2,000 | |||
Number of customers accounting for 10% or more of net accounts receivable | Customer | 2 | 1 | ||||
Income tax expense | $ 101,096 | $ 19,066 | $ 13,784 | |||
Minimum | ||||||
Product Information [Line Items] | ||||||
Product warranty terms | 1 year | |||||
Maximum | ||||||
Product Information [Line Items] | ||||||
Product warranty terms | 2 years | |||||
Customer concentration risk | Accounts receivable | ||||||
Product Information [Line Items] | ||||||
Concentration risk percentage | 17.60% | |||||
5.50% Senior Notes | Senior notes | ||||||
Product Information [Line Items] | ||||||
Stated interest rate | 5.50% | 5.50% | ||||
Out-of-Period Error Resulting in Overstatement of Income Tax Expense | ||||||
Product Information [Line Items] | ||||||
Income tax expense | $ (2,800) | |||||
Out-of-Period Error Resulting in Overstatement of Income Tax Expense | Restatement Adjustment | ||||||
Product Information [Line Items] | ||||||
Income tax expense | $ 2,800 | |||||
D & H Distributing | Customer concentration risk | Accounts receivable | ||||||
Product Information [Line Items] | ||||||
Concentration risk percentage | 13.00% | |||||
Ingram Micro | Customer concentration risk | Accounts receivable | ||||||
Product Information [Line Items] | ||||||
Concentration risk percentage | 12.40% |
RECENT ACCOUNTING PRONOUNCEME43
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred revenue | $ 2,300 | ||
Excess tax benefits | 2,700 | ||
Reclassification of excess tax benefits from financing activities | 60,446 | $ 47,968 | $ 60,237 |
Reclassification of excess tax benefits into operating activities | $ 121,148 | 139,387 | 150,409 |
ASU 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of excess tax benefits from financing activities | 1,400 | 3,500 | |
Reclassification of excess tax benefits into operating activities | $ 1,400 | $ 3,500 |
CASH, CASH EQUIVALENTS AND IN44
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | $ 390,661 | $ 301,970 | $ 235,266 | $ 276,850 |
Short-term investments (due in 1 year or less) | 269,313 | 178,179 | ||
Long-term investments (due in 1 to 3 years) | 0 | 127,176 | ||
Total cash, cash equivalents and investments measured at fair value, amortized cost | 660,176 | 607,374 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized gain | 193 | 439 | ||
Total cash, cash equivalents and investments measured at fair value, gross unrealized loss | (395) | (488) | ||
Total cash, cash equivalents and investments measured at fair value, fair value | 659,974 | 607,325 | ||
Loss on sale of long-term investments | 1,200 | |||
Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 30,522 | 0 | ||
Available-for-sale Securities, amortized cost basis | 143,053 | 48,039 | ||
Available-for-sale Securities, gross unrealized gains | 193 | 352 | ||
Available-for-sale Securities, gross unrealized losses | (127) | (100) | ||
Available-for-sale Securities, fair value | 143,119 | 48,291 | ||
Short-term investments (due in 1 year or less) | 112,597 | 29,959 | ||
Long-term investments (due in 1 to 3 years) | 0 | 18,332 | ||
Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 51,405 | 6,093 | ||
Available-for-sale Securities, amortized cost basis | 208,389 | 263,458 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 87 | ||
Available-for-sale Securities, gross unrealized losses | (268) | (388) | ||
Available-for-sale Securities, fair value | 208,121 | 263,157 | ||
Short-term investments (due in 1 year or less) | 156,716 | 148,220 | ||
Long-term investments (due in 1 to 3 years) | 0 | 108,844 | ||
Cash | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 308,734 | 295,877 | ||
Money Market Funds | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 344 | |||
Available-for-sale Securities, amortized cost basis | 344 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 344 | |||
Mutual Funds | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale Securities, amortized cost basis | 13,336 | 12,079 | ||
Available-for-sale Securities, gross unrealized gains | 186 | 352 | ||
Available-for-sale Securities, gross unrealized losses | (67) | (32) | ||
Available-for-sale Securities, fair value | 13,455 | 12,399 | ||
Short-term investments (due in 1 year or less) | 13,455 | 12,399 | ||
Long-term investments (due in 1 to 3 years) | 0 | 0 | ||
US Treasury Notes | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 30,178 | 0 | ||
Available-for-sale Securities, amortized cost basis | 129,373 | 35,960 | ||
Available-for-sale Securities, gross unrealized gains | 7 | 0 | ||
Available-for-sale Securities, gross unrealized losses | (60) | (68) | ||
Available-for-sale Securities, fair value | 129,320 | 35,892 | ||
Short-term investments (due in 1 year or less) | 99,142 | 17,560 | ||
Long-term investments (due in 1 to 3 years) | 0 | 18,332 | ||
Money Market Funds | Level 1 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Short-term investments (due in 1 year or less) | 0 | |||
Long-term investments (due in 1 to 3 years) | 0 | |||
Government Agency Securities | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 6,978 | 0 | ||
Available-for-sale Securities, amortized cost basis | 46,354 | 54,415 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 20 | ||
Available-for-sale Securities, gross unrealized losses | (56) | (164) | ||
Available-for-sale Securities, fair value | 46,298 | 54,271 | ||
Short-term investments (due in 1 year or less) | 39,320 | 15,309 | ||
Long-term investments (due in 1 to 3 years) | 0 | 38,962 | ||
Municipal Bonds | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 3,591 | |||
Available-for-sale Securities, amortized cost basis | 3,591 | |||
Available-for-sale Securities, gross unrealized gains | 0 | |||
Available-for-sale Securities, gross unrealized losses | 0 | |||
Available-for-sale Securities, fair value | 3,591 | |||
Short-term investments (due in 1 year or less) | 0 | |||
Long-term investments (due in 1 to 3 years) | 0 | |||
Commercial Paper-not included in Cash and Cash Equivalents | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 40,836 | 6,093 | ||
Available-for-sale Securities, amortized cost basis | 84,512 | 47,152 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 0 | ||
Available-for-sale Securities, gross unrealized losses | 0 | 0 | ||
Available-for-sale Securities, fair value | 84,512 | 47,152 | ||
Short-term investments (due in 1 year or less) | 43,676 | 41,059 | ||
Long-term investments (due in 1 to 3 years) | 0 | 0 | ||
Corporate Bonds | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale Securities, amortized cost basis | 54,701 | 141,508 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 64 | ||
Available-for-sale Securities, gross unrealized losses | (212) | (224) | ||
Available-for-sale Securities, fair value | 54,489 | 141,348 | ||
Short-term investments (due in 1 year or less) | 54,489 | 73,676 | ||
Long-term investments (due in 1 to 3 years) | 0 | 67,672 | ||
Certificates of Deposits (CDs) | Level 2 | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale Securities, amortized cost basis | 19,231 | 20,383 | ||
Available-for-sale Securities, gross unrealized gains | 0 | 3 | ||
Available-for-sale Securities, gross unrealized losses | 0 | 0 | ||
Available-for-sale Securities, fair value | 19,231 | 20,386 | ||
Short-term investments (due in 1 year or less) | 19,231 | 18,176 | ||
Long-term investments (due in 1 to 3 years) | $ 0 | $ 2,210 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Cash and cash equivalents | $ 390,661 | $ 301,970 | $ 235,266 | $ 276,850 |
Other long-term liabilities | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Deferred compensation liability, noncurrent | 14,100 | 13,700 | ||
Mutual Funds | Short-term investments | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Investments | $ 13,500 | 12,400 | ||
Bank time deposits | Cash and cash equivalents | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Cash and cash equivalents | $ 800 |
DETAILS OF CERTAIN BALANCE SH46
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 202,270 | $ 184,068 |
Accounts receivable, net | 152,888 | 141,177 |
Provision For Returns | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable reserves | (10,225) | (10,541) |
Provision for promotions and rebates | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable reserves | (38,284) | (31,747) |
Provision for doubtful accounts and sales allowances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable reserves | $ (873) | $ (603) |
DETAILS OF CERTAIN BALANCE SH47
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Inventory, net (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 28,789 | $ 20,260 |
Work in process | 450 | 215 |
Finished goods | 39,037 | 34,981 |
Inventory, net | $ 68,276 | $ 55,456 |
DETAILS OF CERTAIN BALANCE SH48
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |||
Land | $ 16,564 | $ 16,418 | |
Buildings and improvements (useful life: 7-30 years) | 115,401 | 115,909 | |
Machinery and equipment (useful life: 2-10 years) | 112,719 | 108,477 | |
Software (useful life: 5-10 years) | 50,631 | 46,806 | |
Construction in progress | 5,428 | 6,899 | |
Property, plant, and equipment, gross | 300,743 | 294,509 | |
Accumulated depreciation and amortization | (158,614) | (144,202) | |
Property, plant, and equipment, net | 142,129 | 150,307 | |
Depreciation and amortization expense | 21,100 | 20,700 | $ 19,900 |
Unamortized capitalized software costs | 23,600 | 24,400 | |
Amortization expense related to capitalized software costs | $ 4,900 | $ 4,400 | $ 4,100 |
Building and improvements | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 7 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 30 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 2 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 10 years | ||
Software | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 5 years | ||
Software | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Useful life | 10 years |
DETAILS OF CERTAIN BALANCE SH49
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | May 31, 2015 |
Accrued Liabilities [Abstract] | |||
Employee compensation and benefits | $ 28,599 | $ 36,415 | |
Accrued interest on 5.50% Senior Notes | 10,331 | 10,407 | |
Warranty obligation, short-term portion | 7,550 | 6,863 | |
VAT/Sales Tax Payable | 5,353 | 5,433 | |
Restructuring and other related charges | 2,947 | 1,323 | |
Accrued other | 25,317 | 13,844 | |
Accrued liabilities | $ 80,097 | $ 74,285 | |
5.50% Senior Notes | Senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.50% | 5.50% |
DETAILS OF CERTAIN BALANCE SH50
DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty obligation at beginning of year | $ 8,697 | $ 8,537 |
Warranty provision related to products shipped | 9,923 | 9,451 |
Deductions for warranty claims processed | (10,193) | (9,824) |
Adjustments related to preexisting warranties | 1,177 | 533 |
Warranty obligation at end of year | $ 9,604 | $ 8,697 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 15.5 | $ 15.5 |
Accumulated impairment | $ 54.6 | $ 54.6 |
COMMITMENTS AND CONTINGENCIES52
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Jul. 31, 2016 | |
Operating Leases, Future Minimum Payments Due [Abstract] | |||||
2,019 | $ 2,556 | ||||
2,020 | 2,142 | ||||
2,021 | 1,823 | ||||
2,022 | 1,322 | ||||
2,023 | 823 | ||||
Thereafter | 1,304 | ||||
Total minimum future rental payments | 9,970 | ||||
Total rent expense for operating leases | 2,600 | $ 2,800 | $ 2,900 | ||
Unconditional purchase obligations | 190,000 | ||||
GN Netcom, Inc. vs. Plantronics, Inc. | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Amount Awarded from Other Party | $ 200 | ||||
GN Netcom, Inc. vs. Plantronics, Inc. | Punitive Sanctions | |||||
Loss Contingencies [Line Items] | |||||
Accrued amounts | $ 4,900 | ||||
Forecast | Polycom | |||||
Loss Contingencies [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 2,000,000 |
DEBT (Details)
DEBT (Details) | Apr. 28, 2017USD ($) | May 31, 2015USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Debt Disclosure [Line Items] | |||||
Proceeds from issuance of senior notes, net of issuance costs | $ 0 | $ 0 | $ 488,401,000 | ||
Credit facility expiration date | May 9, 2020 | ||||
Commitment fee percentage | 0.37% | ||||
Outstanding borrowings under line of credit | $ 0 | ||||
EBITDA | 3.25 | ||||
Minimum required liquid funds | $ 300,000,000 | ||||
Line Of Credit Facility Interest Rate Spread Below The Banks Announced Prime Rate | |||||
Debt Disclosure [Line Items] | |||||
Basis spread of variable rate | 1.20% | ||||
Line Of Credit Facility Interest Rate Spread Above A Daily One Month LIBOR Rate | |||||
Debt Disclosure [Line Items] | |||||
Basis spread of variable rate | 1.40% | ||||
Senior notes | 5.50% Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Principal amount of debt issued | $ 500,000,000 | ||||
Stated interest rate | 5.50% | 5.50% | |||
Proceeds from issuance of senior notes, net of issuance costs | $ 488,400,000 | ||||
Debt issuance costs | $ 11,600,000 | ||||
Debt redemption percentage price, Specified Price | 105.50% | ||||
Repurchase price, percentage of principal amount | 101.00% | ||||
Fair Value | Level 2 | Senior notes | 5.50% Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Long term debt, 5.50% Senior Notes | $ 497,095,000 | 505,150,000 | |||
Carrying Value | Level 2 | Senior notes | 5.50% Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Long term debt, 5.50% Senior Notes | $ 492,509,000 | $ 491,059,000 | |||
Minimum | Senior notes | 5.50% Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Debt redemption notice period | 30 days | ||||
Maximum | Senior notes | 5.50% Senior Notes | |||||
Debt Disclosure [Line Items] | |||||
Debt redemption notice period | 60 days | ||||
Percentage of debt redeemed | 35.00% | ||||
Revolving Credit Facility | |||||
Debt Disclosure [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 |
RESTRUCTURING AND OTHER RELAT54
RESTRUCTURING AND OTHER RELATED CHARGES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2,451 | $ (109) | $ 16,160 |
Restructuring costs, asset impairment charges and other | 4,300 | ||
Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,500 | ||
Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,600 | ||
Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 200 | ||
Severance benefits from reduction-in-force | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,400 | ||
Severance benefits from reduction-in-force | Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,400 | ||
Severance benefits from reduction-in-force | Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Severance benefits from reduction-in-force | Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Lease exit charges and asset impairments in Netherlands | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 700 | ||
Lease exit charges and asset impairments in Netherlands | Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 700 | ||
Lease exit charges and asset impairments in Netherlands | Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Lease exit charges and asset impairments in Netherlands | Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Write-off of unrecoverable indirect tax asset in Brazil | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 700 | ||
Write-off of unrecoverable indirect tax asset in Brazil | Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Write-off of unrecoverable indirect tax asset in Brazil | Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 700 | ||
Write-off of unrecoverable indirect tax asset in Brazil | Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Asset impairments related to previous Clarity operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 400 | ||
Asset impairments related to previous Clarity operations | Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 400 | ||
Asset impairments related to previous Clarity operations | Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Asset impairments related to previous Clarity operations | Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Loss on Clarity asset sale | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 900 | ||
Loss on Clarity asset sale | Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Loss on Clarity asset sale | Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 900 | ||
Loss on Clarity asset sale | Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Accelerated vesting of restricted stock | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 200 | ||
Accelerated vesting of restricted stock | Restructuring and Other Related Charges (Credits) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Accelerated vesting of restricted stock | Cost of Revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Accelerated vesting of restricted stock | Selling, General, and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 200 | ||
Disposal Group, Held-for-sale | Clarity | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease term | 12 months | ||
Transition services agreement term | 1 year |
STOCK PLANS AND STOCK-BASED C55
STOCK PLANS AND STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 24 Months Ended | 145 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Apr. 30, 2013 | Aug. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved under plan (shares) | 15,900,000 | ||||
Percent of estimated fair market value at the date of grant (percentage) | 100.00% | ||||
Options to purchase shares of common stock (shares) | 922,975 | ||||
Shares available for future grant (shares) | 2,297,174 | ||||
2002 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved under plan (shares) | 274,323 | ||||
Percentage of fair market value at date of grant (percentage) | 85.00% | ||||
Shares issued under the ESPP | 156,355 | 151,648 | 168,948 | ||
Total cash received from employees as a result of stock issuances under the ESPP, net of taxes | $ 5.7 | ||||
Offering period | 6 months | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of option | 7 years | ||||
Options to purchase shares of common stock (shares) | 923,000 | 1,417,000 | |||
Total intrinsic value | $ 9.4 | $ 5.5 | $ 6.9 | ||
Total cash received from employees as a result of exercises, net of taxes | 18.2 | ||||
Total net tax benefit attributable to stock options exercised | 3.3 | ||||
Total unrecognized compensation cost | $ 1.6 | ||||
Period for recognition for unrecognized compensation cost | 1 year 110 days | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial value of restricted stock and restricted stock units received (maximum) | $ 2 | ||||
Unvested restricted stock and restricted stock units (shares) | 1,253,561 | 1,172,000 | |||
Total unrecognized compensation cost | $ 36.7 | ||||
Period for recognition for unrecognized compensation cost | 1 year 219 days | ||||
Weighted average grant date fair value (in dollars per share) | $ 53.62 | $ 44.82 | $ 54.66 | ||
Total grant date fair value | $ 27.8 | $ 28.9 | $ 24.2 | ||
Employee | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option vesting period (years) | 3 years | ||||
Employee | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option vesting period (years) | 3 years | 4 years | |||
Director | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option vesting period (years) | 4 years | ||||
Director | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option vesting period (years) | 1 year | 4 years |
STOCK PLANS AND STOCK-BASED C56
STOCK PLANS AND STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 33,959 | $ 33,539 | $ 33,265 |
Income tax benefit | (7,880) | (10,768) | (10,950) |
Total stock-based compensation expense, net of tax | 26,079 | 22,771 | 22,315 |
Cost of revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,622 | 3,244 | 3,306 |
Research, development and engineering | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 8,071 | 8,616 | 9,908 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 22,266 | 21,679 | 20,051 |
Stock-based compensation expense included in operating expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 30,337 | $ 30,295 | $ 29,959 |
STOCK PLANS AND STOCK-BASED C57
STOCK PLANS AND STOCK-BASED COMPENSATION Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, March 31, 2018 (shares) | 922,975 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, March 31, 2017 (shares) | 1,417,000 |
Options granted (shares) | 15,000 |
Options exercised (shares) | (505,000) |
Options forfeited or expired (shares) | (4,000) |
Options outstanding, March 31, 2018 (shares) | 923,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price of options outstanding at March 31, 2017 (in dollars per share) | $ / shares | $ 43.41 |
Weighted average exercise price of options granted (in dollars per share) | $ / shares | 52.11 |
Weighted average exercise price of options exercised (in dollars per share) | $ / shares | 36.04 |
Weighted average exercise price of options forfeited or expired (in dollars per share) | $ / shares | 53.23 |
Weighted average exercise price of options outstanding at March 31, 2018 (in dollars per share) | $ / shares | $ 47.53 |
Weighted average remaining contractual life of options outstanding at March 31, 2018 (in years) | 3 years 292 days |
Aggregate intrinsic value of options outstanding at March 31, 2018 | $ | $ 11,853 |
Vested or expected to vest at March 31, 2018 (in shares) | 918,000 |
Weighted average exercise price of options vested or expected to vest at March 31, 2018 (in dollars per share) | $ / shares | $ 47.54 |
Weighted average remaining contractual life of options vested or expected to vest at March 31, 2018 (in years) | 3 years 292 days |
Aggregate intrinsic value of options vested or expected to vest at March 31, 2018 | $ | $ 11,781 |
Exercisable at March 31, 2018 (in shares) | 758,000 |
Weighted average exercise price of options exercisable at March 31, 2018 (in dollars per share) | $ / shares | $ 47.69 |
Weighted average remaining contractual life of options exercisable at March 31, 2018 (in years) | 3 years 183 days |
Aggregate intrinsic value of options exercisable at March 31, 2018 | $ | $ 9,612 |
STOCK PLANS AND STOCK-BASED C58
STOCK PLANS AND STOCK-BASED COMPENSATION Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Non-vested Restricted Stock at March 31, 2017 (shares) | 1,172,000 | ||
Restricted stock granted (shares) | 784,000 | ||
Restricted stock vested (shares) | (577,000) | ||
Restricted stock forfeited (shares) | (125,000) | ||
Non-vested Restricted Stock at March 31, 2018 (shares) | 1,253,561 | 1,172,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value or restricted stock, March 31, 2017 (in dollars per share) | $ 47.86 | ||
Weighted average grant date fair value of restricted stock granted (in dollars per share) | 53.62 | $ 44.82 | $ 54.66 |
Weighted average grant date fair value of restricted stock vested (in dollars per share) | 48.12 | ||
Weighted average grant date fair value of restricted stock forfeited (in dollars per share) | 50.30 | ||
Weighted average grant date fair value or restricted stock, March 31, 2018 (in dollars per share) | $ 51.09 | $ 47.86 |
STOCK PLANS AND STOCK-BASED C59
STOCK PLANS AND STOCK-BASED COMPENSATION Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.10% | 31.10% | 27.00% |
Risk-free interest rate | 1.70% | 1.10% | 1.40% |
Expected dividends | 1.20% | 1.40% | 1.10% |
Expected life (in years) | 4 years 7 months 6 days | 4 years 146 days | 4 years 73 days |
Weighted-average grant date fair value (in dollars per share) | $ 12.58 | $ 10.39 | $ 11.39 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 30.50% | 28.80% | 33.50% |
Risk-free interest rate | 1.50% | 0.60% | 0.30% |
Expected dividends | 1.20% | 1.10% | 1.40% |
Expected life (in years) | 6 months | 183 days | 183 days |
Weighted-average grant date fair value (in dollars per share) | $ 11.78 | $ 12.03 | $ 10.33 |
COMMON STOCK REPURCHASES (Detai
COMMON STOCK REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock, shares | 1,139,548 | ||
Repurchase of common stock | $ 52,948 | $ 34,236 | $ 497,393 |
Repurchase of common stock, average price per share (in dollars per share) | $ 46.46 | ||
Remaining shares authorized for repurchase under program | 730,105 | ||
Value of shares withheld in satisfaction of employee tax withholding obligations | $ 11,429 | $ 9,736 | $ 11,068 |
Treasury stock retired (shares) | 0 | 0 | 0 |
Open Market Repurchases | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common stock, shares | 764,176 | 9,077,223 | |
Repurchase of common stock | $ 34,200 | $ 497,400 | |
Repurchase of common stock, average price per share (in dollars per share) | $ 44.80 | $ 54.80 |
ACCUMULATED OTHER COMPREHENSI61
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated unrealized gain (loss) on cash flow hedges | $ (1,663) | $ 529 |
Accumulated foreign currency translation adjustments | 4,685 | 4,428 |
Accumulated unrealized gain on investments | (152) | (263) |
Accumulated other comprehensive income | $ 2,870 | $ 4,694 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |||
Company match | 50.00% | ||
Portion of employee compensation matched under 401(k) | 6.00% | ||
Non-elective company contribution as percentage of employee salary | 3.00% | ||
Vesting of matching contributions | 100.00% | ||
Company contributions | $ 4.5 | $ 4.2 | $ 4.7 |
FOREIGN CURRENCY DERIVATIVES (D
FOREIGN CURRENCY DERIVATIVES (Details) $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017 | Mar. 31, 2018USD ($)financial_institution | Mar. 31, 2018EUR (€)financial_institution | Mar. 31, 2018CAD ($)financial_institution | Mar. 31, 2018GBP (£)financial_institution | Mar. 31, 2018AUD ($)financial_institution | Mar. 31, 2018MXN ($)financial_institution | Mar. 31, 2017EUR (€) | Mar. 31, 2017GBP (£) | |
Derivative [Line Items] | |||||||||
Number of financial institutions the company has International Swap and Derivatives Association agreements | 4 | 4 | 4 | 4 | 4 | 4 | |||
Foreign Exchange Forward, EURO | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 39,557 | € 32,050,000 | |||||||
Derivative, Currency Sold | Sell EUR | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Foreign Exchange Forward, GBP | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 15,313 | £ 10,900,000 | |||||||
Derivative, Currency Sold | Sell GBP | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Foreign Exchange Forward, AUD | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 10,456 | $ 13,600 | |||||||
Derivative, Currency Sold | Sell AUD | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Foreign Exchange Forward, CAD | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 1,939 | $ 2,500 | |||||||
Derivative, Currency Sold | Sell CAD | ||||||||
Derivative, Remaining Maturity | 1 month | ||||||||
Option contracts | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | 77,800,000 | 23,700,000 | € 73,500,000 | £ 23,900,000 | |||||
Forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | € 16,700,000 | £ 3,700,000 | € 11,200,000 | £ 3,300,000 | |||||
Foreign currency swap contract | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of non-designated hedge | $ 1,599 | $ 31,830 | |||||||
Derivative, Currency Bought | Buy MXN | ||||||||
Derivative, Remaining Maturity | 3 months | ||||||||
Minimum | Options | |||||||||
Derivative [Line Items] | |||||||||
Term of contract | 6 months | ||||||||
Maximum | Options | |||||||||
Derivative [Line Items] | |||||||||
Term of contract | 12 months | ||||||||
Cash flow hedge | Forwards | |||||||||
Derivative [Line Items] | |||||||||
Term of contract | 3 months |
FOREIGN CURRENCY DERIVATIVES 64
FOREIGN CURRENCY DERIVATIVES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Derivative Asset [Abstract] | ||
Derivatives subject to master netting agreements, gross amount | $ 772 | $ 2,120 |
Derivative asset not subject to master netting agreements | 0 | 0 |
Gross Amount of Derivative Assets | 772 | 2,120 |
Gross Amounts Not Offset, Derivative Liabilities | (772) | (1,395) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets, subject to master netting agreements | 0 | 725 |
Net Amount of Derivative Assets | 0 | 725 |
Derivative Liability [Abstract] | ||
Derivatives subject to master netting agreements, gross amount | (3,037) | (1,395) |
Derivative liability not subject to master netting agreements | 0 | 0 |
Gross Amount of Derivative Liabilities | (3,037) | (1,395) |
Gross Amounts Not Offset, Derivative Assets | 772 | 1,395 |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Liabilities, subject to master netting agreements | (2,265) | 0 |
Net Amount of Derivative Liabilities | $ (2,265) | $ 0 |
FOREIGN CURRENCY DERIVATIVES 65
FOREIGN CURRENCY DERIVATIVES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain on foreign exchange contracts | $ 7,405 | $ 4,599 | $ 494 |
FOREIGN CURRENCY DERIVATIVES FO
FOREIGN CURRENCY DERIVATIVES FOREIGN CURRENCY DERIVATIVES (Details 3) $ in Thousands, $ in Thousands | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018GBP (£) | Mar. 31, 2018MXN ($) | Mar. 31, 2017EUR (€) | Mar. 31, 2017GBP (£) |
Option contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount of cash flow hedge | € 77,800,000 | £ 23,700,000 | € 73,500,000 | £ 23,900,000 | ||
Forward contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount of cash flow hedge | € 16,700,000 | £ 3,700,000 | € 11,200,000 | £ 3,300,000 | ||
Foreign currency swap contract | ||||||
Derivative [Line Items] | ||||||
Notional amount of cash flow hedge | $ 1,599 | $ 31,830 |
FOREIGN CURRENCY DERIVATIVES 67
FOREIGN CURRENCY DERIVATIVES (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Effect of Derivative Contracts on Accumulated Other Comprehensive Income and Statements of Operations [Roll Forward] | |||||||||||
Gain (loss) included in AOCI as of beginning of period | $ (1,106) | $ 5,705 | $ 541 | $ (1,106) | $ 5,705 | ||||||
Amount of gain (loss) recognized in OCI (effective portion) | (6,741) | 3,095 | (3,786) | ||||||||
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | $ 216,143 | $ 226,534 | $ 210,300 | $ 203,926 | $ 208,954 | $ 232,933 | $ 216,183 | $ 223,106 | 856,903 | 881,176 | 856,907 |
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | (417,788) | (439,806) | (422,233) | ||||||||
Total amount of gain (loss) reclassified from AOCI to income (loss) (effective portion) | 4,507 | (1,448) | (3,025) | ||||||||
Gain (loss) included in AOCI as of end of period | $ 541 | $ (1,106) | (1,693) | 541 | (1,106) | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Effect of Derivative Contracts on Accumulated Other Comprehensive Income and Statements of Operations [Roll Forward] | |||||||||||
Amount of gain (loss) reclassified from OCI into net revenues (effective portion) | 4,715 | (4,111) | (7,826) | ||||||||
Amount of gain (loss) reclassified from OCI into cost of revenues (effective portion) | $ (208) | $ 2,663 | $ 4,801 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Current: | |||||
Federal | $ 82,523,000 | $ 10,591,000 | $ 15,702,000 | ||
State | 4,274,000 | 457,000 | 1,934,000 | ||
Foreign | 6,860,000 | 7,731,000 | 4,644,000 | ||
Total current provision for income taxes | 93,657,000 | 18,779,000 | 22,280,000 | ||
Deferred: | |||||
Federal | 9,002,000 | 1,022,000 | (7,767,000) | ||
State | (1,585,000) | (117,000) | (1,103,000) | ||
Foreign | 22,000 | (618,000) | 374,000 | ||
Total deferred benefit for income taxes | 7,439,000 | 287,000 | (8,496,000) | ||
Income tax expense | 101,096,000 | 19,066,000 | 13,784,000 | ||
Components of income before income taxes | |||||
United States | 17,654,000 | 43,377,000 | 42,184,000 | ||
Foreign | 82,573,000 | 58,288,000 | 39,992,000 | ||
Income before income taxes | 100,227,000 | 101,665,000 | 82,176,000 | ||
Reconciliation between statutory federal income taxes and income tax expense | |||||
Tax expense at statutory rate | 31,631,000 | 35,583,000 | 28,762,000 | ||
Foreign operations taxed at different rates | (17,970,000) | (13,183,000) | (9,478,000) | ||
State taxes, net of federal benefit | 2,689,000 | 340,000 | 831,000 | ||
Research and development credit | (2,023,000) | (3,119,000) | (3,133,000) | ||
Unwind of stock based compensation cost sharing | 0 | 0 | (2,855,000) | ||
Impact of Tax Act | 87,790,000 | 0 | 0 | ||
Stock based compensation | (1,771,000) | (365,000) | (487,000) | ||
Other, net | 750,000 | (190,000) | 144,000 | ||
Income tax expense | 101,096,000 | 19,066,000 | 13,784,000 | ||
Components of Deferred Tax Assets | |||||
Accruals and other reserves | 4,809,000 | 8,526,000 | |||
Deferred Compensation | 3,467,000 | 4,859,000 | |||
Net operating loss carry forward | 1,540,000 | 2,221,000 | |||
Stock compensation | 8,384,000 | 12,821,000 | |||
Tax credits | 6,504,000 | 4,530,000 | |||
Other deferred tax assets | 1,070,000 | 1,711,000 | |||
Valuation allowance | (2,514,000) | (2,209,000) | |||
Total deferred tax assets | 23,260,000 | 32,459,000 | |||
Components of Deferred Tax Liabilities | |||||
Deferred gains on sales of properties | (1,160,000) | (1,771,000) | |||
Unremitted earnings of certain subsidiaries | (1,976,000) | 0 | |||
Fixed asset depreciation | (4,150,000) | (7,351,000) | |||
Total deferred tax liabilities | (7,286,000) | (9,122,000) | |||
Net deferred tax assets | [1] | 15,974,000 | 23,337,000 | ||
Increase in valuation allowance | 300,000 | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Balance at beginning of period | $ 12,854,000 | 12,854,000 | 12,692,000 | 12,821,000 | |
Increase (decrease) of unrecognized tax benefits related to prior fiscal years | (1,310,000) | (2,000) | (598,000) | ||
Increase of unrecognized tax benefits related to the current year | 3,085,000 | 2,195,000 | 2,252,000 | ||
Reductions to unrecognized tax benefits related to settlements with taxing authorities | (115,000) | 0 | (149,000) | ||
Reductions to unrecognized tax benefits related to lapse of applicable statute of limitations | (1,902,000) | (2,031,000) | (1,634,000) | ||
Balance at end of period | 12,612,000 | 12,854,000 | $ 12,692,000 | ||
Tax penalties accrued | 0 | 0 | |||
Interest related to unrecognized tax benefits | 1,400,000 | $ 1,700,000 | |||
Toll charge | 79,700,000 | ||||
Reduction in deferred tax assets | (4,600,000) | ||||
Undistributed foreign earnings | $ 5,000,000 | ||||
Blended tax rate | 31.56% | ||||
Transition tax, period under review | 30 years | ||||
Excess tax benefits | $ 2,700,000 | ||||
California Franchise Tax Board [Member] | |||||
Components of Deferred Tax Liabilities | |||||
Research and development credit carryforwards | 10,400,000 | ||||
State Administration of Taxation, China [Member] | |||||
Components of Deferred Tax Assets | |||||
Net operating loss carry forward | $ 4,300,000 | ||||
[1] | The Company's deferred tax assets for the fiscal year ending March 31, 2017 and March 31, 2018, are included as a component of other assets on the consolidated balance sheets. |
COMPUTATION OF EARNINGS PER C69
COMPUTATION OF EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 9,854 | $ (49,504) | $ 19,953 | $ 18,828 | $ 19,517 | $ 22,221 | $ 20,474 | $ 20,387 | $ (869) | $ 82,599 | $ 68,392 |
Earnings Per Share, Basic and Diluted | |||||||||||
Weighted average common shares-basic | 32,345 | 32,279 | 34,127 | ||||||||
Dilutive effect of employee equity incentive plans | 0 | 684 | 811 | ||||||||
Weighted average common shares-diluted | 32,345 | 32,963 | 34,938 | ||||||||
Basic net income per common share (in dollars per share) | $ 0.30 | $ (1.54) | $ 0.59 | $ 0.58 | $ 0.60 | $ 0.69 | $ 0.63 | $ 0.63 | $ (0.03) | $ 2.56 | $ 2 |
Diluted net income per common share (in dollars per share) | $ 0.29 | $ (1.54) | $ 0.59 | $ 0.57 | $ 0.59 | $ 0.68 | $ 0.63 | $ 0.62 | $ (0.03) | $ 2.51 | $ 1.96 |
Potentially dilutive securities excluded from diluted earnings per share because their effect is anti-dilutive | 543 | 574 | 326 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2018USD ($)Customercountry | Mar. 31, 2017USD ($)Customercountry | Mar. 31, 2016USD ($) | Mar. 31, 2015Customercountry | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | $ 216,143 | $ 226,534 | $ 210,300 | $ 203,926 | $ 208,954 | $ 232,933 | $ 216,183 | $ 223,106 | $ 856,903 | $ 881,176 | $ 856,907 | |
Number of countries, 10% or more of Net Revenues, excluding the U.S. | country | 0 | 0 | 0 | |||||||||
Number of customers representing 10% or more of Net Revenues | Customer | 1 | 1 | 0 | |||||||||
Long-Lived Assets | 150,307 | $ 142,129 | $ 150,307 | |||||||||
U.S. | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 434,053 | 482,215 | 482,622 | |||||||||
Long-Lived Assets | 69,085 | 64,975 | 69,085 | |||||||||
Mexico | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Long-Lived Assets | 42,923 | 41,036 | 42,923 | |||||||||
Europe and Africa | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 250,763 | 226,620 | 217,633 | |||||||||
Asia Pacific | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 99,779 | 106,295 | 105,687 | |||||||||
Americas, excluding U.S. | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 72,308 | 66,046 | 50,965 | |||||||||
The Netherlands | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Long-Lived Assets | 22,637 | 20,752 | 22,637 | |||||||||
Other countries | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Long-Lived Assets | $ 15,662 | 15,366 | 15,662 | |||||||||
International | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 422,850 | 398,961 | 374,285 | |||||||||
Enterprise | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | 649,739 | 628,654 | 626,666 | |||||||||
Consumer | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net revenues | $ 207,164 | $ 252,522 | $ 230,241 | |||||||||
Ingram Micro | Customer concentration risk | Revenue | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Concentration risk percentage | 10.90% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event | May 01, 2018$ / shares |
Subsequent Event [Line Items] | |
Dividend declaration date | May 1, 2018 |
Cash dividend payable per share | $ 0.15 |
Date on which dividend will be paid | Jun. 8, 2018 |
Stockholders of record date for dividend | May 18, 2018 |
SUPPLEMENTARY QUARTERLY FINAN72
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Duration of fiscal year | 364 days | 371 days | 364 days | 364 days | ||||||||
Net revenues | $ 216,143 | $ 226,534 | $ 210,300 | $ 203,926 | $ 208,954 | $ 232,933 | $ 216,183 | $ 223,106 | $ 856,903 | $ 881,176 | $ 856,907 | |
Gross Profit | 114,075 | 114,125 | 107,632 | 103,283 | 107,671 | 110,180 | 110,446 | 113,073 | 439,115 | 441,370 | 434,674 | |
Net income | $ 9,854 | $ (49,504) | $ 19,953 | $ 18,828 | $ 19,517 | $ 22,221 | $ 20,474 | $ 20,387 | $ (869) | $ 82,599 | $ 68,392 | |
Basic net income per common share (in dollars per share) | $ 0.30 | $ (1.54) | $ 0.59 | $ 0.58 | $ 0.60 | $ 0.69 | $ 0.63 | $ 0.63 | $ (0.03) | $ 2.56 | $ 2 | |
Diluted net income per common share (in dollars per share) | 0.29 | (1.54) | 0.59 | 0.57 | 0.59 | 0.68 | 0.63 | 0.62 | (0.03) | 2.51 | 1.96 | |
Cash dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.60 | $ 0.60 | $ 0.60 |
SCHEDULE II VALUATION AND QUA73
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Provision for doubtful accounts and sales allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 603 | $ 564 | $ 1,221 |
Charged to Expenses or Other Accounts | 784 | 621 | 719 |
Deductions | (514) | (582) | (1,376) |
Balance at End of Year | 873 | 603 | 564 |
Provision for returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 10,541 | 7,314 | 6,194 |
Charged to Expenses or Other Accounts | 30,472 | 35,485 | 27,635 |
Deductions | (30,788) | (32,258) | (26,515) |
Balance at End of Year | 10,225 | 10,541 | 7,314 |
Provision for promotions and rebates | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 31,747 | 27,737 | 15,401 |
Charged to Expenses or Other Accounts | 183,929 | 150,085 | 111,244 |
Deductions | (177,392) | (146,075) | (98,908) |
Balance at End of Year | 38,284 | 31,747 | 27,737 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 2,209 | 1,962 | 1,940 |
Charged to Expenses or Other Accounts | 981 | 1,130 | 1,962 |
Deductions | (676) | (883) | (1,940) |
Balance at End of Year | $ 2,514 | $ 2,209 | $ 1,962 |